Fund Middlemen as Muscle

Leo Kolivakis publishes a great blog called Pension Pulse, and recently wrote a long post about the brewing scandal involving alternative managers and the placement agents they hire to secure public pension fund capital.

It seems a middleman's work is never done: Feeder funds like Fairfield Greenwich charged investors exorbitant fees for "access" to Madoff; while placement agents like Searle & Co. did it the other way, charging funds like Quadrangle exorbitant fees for "access" to pension fund investors. I await the logical next step: the revelation that one firm played both sides.