Washington, DC – Global private equity firm The Carlyle Group today issued the following statement regarding the resolution of the New York Attorney General’s pension fund inquiry.

“For the past two years, Carlyle has cooperated extensively and voluntarily with the New York Attorney General’s inquiry into the use of placement agents in regards to the New York Common Retirement Fund (NYCRF).”

“We are pleased to announce today that we have reached a successful resolution with the Attorney General and strongly support his efforts to implement reforms that usher in a new era of transparency and accountability into the pension fund investment process. Carlyle will be the first company to adopt the New York Attorney General’s Code of Conduct and set a new standard for ethics in the industry. We will also make a $20 million payment to New York State to resolve this matter.”

“Carlyle engaged Searle & Co., a registered broker-dealer with whom Hank Morris was associated, to serve as a placement agent for potential investments by NYCRF. Carlyle disclosed its retention of Searle & Co. to NYCRF and was unaware of any improper conduct by Searle & Co. or Mr. Morris. Carlyle was victimized by Hank Morris’s alleged web of deceit. Carlyle intends to file a suit seeking more than $15 million in damages against Searle & Co. and Mr. Morris for the harm their wrongful actions have caused Carlyle. This amount reflects fees paid to Searle & Co. and other damages.”

“For 22 years Carlyle has served the interests of investors the world over, seeking to provide superior returns to public and private pensioners. Maintaining our good name and the reputations of our investors has always been our highest priority.”

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