Permira has bought a 61% stake in drip irrigation company Netafim Ltd., Reuters reported. The firm bought the stake from Kibbutz Yiftah, Kibbutz Magal, Tene Investments and Markstone Capital. The deal valued Netafim at $900 million, Reuters said, citing a report in the Globes news website.

Add one more to the CalPERS “Oops” list. After the pension fund yesterday released the names of eight private equity firms which did not comply with its request for placement agent information, we learned that four of the firms claimed they were placed on the list in error. Today, we can add one more to [...]

Last week, we noted an Israeli press report that Markstone Capital Partners was near a settlement with New York AG Andrew Cuomo, over its role in the state’s pay-for-play scandal.

Cuomo’s office declined to comment at the time, but today announced that the report was legit. Israel-focused Markstone will pay back $18 million in fees related to a $250 million investment from the New York State Common Retirement Fund into Markstone’s debut fund. It also has signed Cuomo’s “code of conduct,” which basically promises not to use placement agents for future fundraising efforts in the U.S.

Not sure how much that last part matters, considering that: (A) I really can’t imagine Markstone raising another fund, and (B) If Markstone does try to raise, it could focus on investors in Israel, where the code of conduct has no legal bearing.

Tough day to be Markstone Capital Partners. First comes word of alleged fraud at Israeli investment house Psagot, of which Markstone holds a 24% stake (see below). Now, Israeli newspaper H’Aaretz reports that the private equity firm is near a settlement with New York AG Andrew Cuomo, over its role in the state’s pay-for-play scandal.

I’ve put in a call to Cuomo’s office for confirmation, but have not yet heard back.

The report says that Markstone has agreed to pay a fine, although no specific numbers are mentioned. Also not mentioned is anything about Markstone signing Cuomo’s “code of conduct,” but I’d be stunned if such a thing wasn’t included.

JERUSALEM (Reuters) – The Israel Securities Authority (ISA) is investigating possible fraudulent trading by two former executives at Psagot, the country’s largest investment house. The ISA said it suspected former Psagot executives David Edry and Shai Ben-David made proprietary investments designed to manipulate the value of various securities in an attempt to boost the investment [...]

Earlier this month, Markstone Capital Partners co-founder and chairman Elliott Broidy pled guilty to a felony count of rewarding official misconduct, as part of the New York pay-to-play scandal. According to New York Attorney General Andrew Cuomo, Broidy had bribed state pension officials with around $1 million worth of gifts, in order to secure a $250 million investment for Markstone. Not a bad barter, if you have no scruples and can get away with it (Broidy didn’t, and he couldn’t).

Broidy immediately resigned from Markstone, and was replaced as chairman by a former Israeli ambassador to the UN. What remains unclear, however, is if Markstone investors will pull the plug.

peHUB has obtained a copy of Markstone’s fund PPM, which includes the following passage about early termination:

SAN FRANCISCO (Reuters) – U.S. security regulators are investigating possible ties between a former chief executive of California pension fund Calpers and a former Calpers board member, and a financier who has pleaded guilty in a New York pension fund corruption case, The Sacramento Bee said on Saturday, citing court documents. The U.S. Securities and [...]

Markstone Capital announced today that the firm appointed Ambassador Dan Gillerman as Chairman following the resignation of Elliott Broidy. Today Attorney General Andrew Cuomo announced Broidy pled guilty to pled guilty to bribing officials of New York State Common Retirement Fund in exchange for a $250 million commitment to Markstone Capital’s Israel-focused venture capital fund. Markstone said the firm expects the investigation will have no effect on the value of investors’ interests in the partnerships. The firm has thus far has invested $562 million in ten companies, with an overall gross internal rate of return of 11%, the firm said.

Elliott Broidy, a founder and Chairman of Markstone Capital Group LLC, pled guilty to felony for his involvement in a pay-to-play kickback scheme at the Office of the New York State Comptroller. Broidy admitted to paying almost one million dollars in gifts to four New York officials to obtain a $250 million investment from the New York State Common Retirement Fund in Markstone Capital Partners, L.P.

This afternoon Attorney General Andrew Cuomo announced the Elliott Broidy, cofounder and chairman of Markstone Capital, pled guilty to one count of rewarding official misconduct in the second degree. Felony, in other words.

It raises the obvious questions about the future of Markstone. We saw what happened to Aldus Equity when Saul Meyer pled guilty—it’s now nonexistent. But Aldus didn’t manage millions of dollars with of buyout funds. Markstone even has up to $69 million in uncalled capital.

Markstone is around the halfway mark for its fund, an $800 million vehicle which closed in 2005. New York committed $250 million; had been deployed as of March. Investors include Israeli insurance company Clal Insurance Pensions and Finance Group and Oregon Investment Council and of course New York State Common. Investments include a stake in cleantech water company Netafim.