"In 2010, a firm called Swift River Investments LLC put money into a software company developed by private-equity giant Blackstone Group LP. Five years later, a company Blackstone co-owned acquired the software firm, at a price that gave Swift River a fat profit.
Blackstone’s back-and-forth involving Swift River wouldn’t be notable but for one thing: Swift River invests personal wealth for Blackstone’s president and chief operating officer, Hamilton “Tony” James. A brother of his runs it.
Wall Street billionaires, their fortunes built by investing other people’s money, increasingly are putting some of their own in sideline investment ventures, while continuing to operate their hedge funds or private-equity funds for clients." (WSJ)
Read the entire article as there are other firms and employees/managers that are named.
This is not a new problem as nakedcapitalism.com identified this issue more than four years ago.
This is a potential issue for Georgetown and the Texas Municipal Retirement System as they use Blackstone as one of their investment managers. It is unknown at this point how many other investment managers have conflicts of interest between the fund managers and client investments. This whole area is very opaque and needs a large dose of sunshine!
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