Blackstone Scoops Up Former SEC Official Months After Penalty
Blackstone is hiring Marshall Sprung, the SEC’s former top enforcement attorney, to be managing director and global head of compliance, months after the firm agreed to its first SEC penalty.
Sprung worked as co-head of the asset management unit at the SEC, which had little oversight over the private equity industry until the 2010 Dodd-Frank Act. In October, the regulator oversaw a $39M settlement with Blackstone for failing to fully inform investors about fees and business discounts that benefited the firm, Bloomberg reports.
Sprung spent more than a decade at the SEC, which announced his departure last month. Most recently, Sprung was co-running the enforcement specialized unit, which brought a case against KKR—one of Blackstone’s PERE peers—in which the firm paid $30M to settle allegations it allowed some investors to dodge costs tied to unsuccessful deals. [Bloomberg]
