Yesterday, I asked peHUB wire readers to name the placement agent (not Aldus Equity) that has effectively shut down, largely due to the pay-to-play scandal. It seems that the answer is a bit more complicated than I had originally understood.
The firm I was thinking about was Wetherly Capital Group, the Los Angeles-based shop whose ex-employee Julio Ramirez is among those who have pled guilty for cavorting with Hank Morris. Various sources had told me that Wetherly was pulling down its shingle, but I’ve since learned that Wetherly is staying in business. Seems the confusion was caused by the fact that Wetherly’s business will no longer be private equity fund placement.
Wetherly is basically entering into a cooling-off period, in part due to pending SEC regulations banning placement agents from pitching funds to public pension systems. Even if that proposal gets scrapped, I’m told that Wetherly will refocus on fund advisory work rather than placement work. Apparently that means things like helping to prepare presentation decks and creating lists of possible funding sources. Everything short of making the actual introductions.
Less lucrative, but also less PR heat.