Atlanta investment adviser Larry Gray has locked in lucrative revenue by urging public pensions his firm advises to sink millions into its own funds. But while making his pitch, Gray has been paying off $425,000 in federal tax liens and a $1 million settlement of a lawsuit that accused him of fraud, an Atlanta Journal-Constitution investigation has found.
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Clients of Gray & Co.’s Alternative Funds
Atlanta investment adviser Larry Gray has launched two funds since 2011 that invest in private equity and other ventures. The following public pensions plans and other clients have agreed to invest $108 million so far:
GrayCo Alternative Partners II (Launched 2012), Investment
Atlanta Firefighters’ Pension Fund, $15 million
Atlanta Police Officers’ Pension Fund, $21 million
Atlanta General Employees’ Pension Fund, $28 million
MARTA/ATU Local 732 Clark Atlanta University, $18 million
Total, $82 million
GrayCo Alternative Partners I (Launched 2011), Investment
Alabama A&M University Foundation, $4 million
New Haven Policemen and Firemen’s Pension, $10 million
Pontiac General Employees Retirement System, $6 million
District 1199 New Jersey Health Care Employees, $6 million
Total, $26 million
Source: Staff research, City of Atlanta
Gray & Co.’s Clients
Atlanta-based consultant Gray & Co. is responsible for advising dozens of public pensions and other clients on the best places to invest about $9.5 billion in total assets.
Local Consulting Clients, Asset Total
Atlanta Firefighters’ Pension Fund, $567 million
Atlanta Police Officers’ Pension Fund, $836 million
Atlanta General Employees’ Pension Fund, $1.1 billion
Atlanta Defined Contribution Plan, $59 million
Athens-Clarke County Consolidated Government, $119 million
Clark Atlanta University, $54 million
Fulton County Schools Retirement Plan, $228 million
Fulton-DeKalb Hospital Authority Retirement Plan, $211 million
Fulton-DeKalb Hospital Authority Foundation, not available
MARTA/ATU Local 732 Employees pension, $482 million
MARTA Employees Defined Contribution Plan, not available
Total, $3.7 billion
Gray & Co.’s Other Consulting Clients, Location
Alabama A&M University Foundation, Huntsville, Ala.
Bay City Police and Fire Retirement System, Bay City, Mich.
Chicago Transit Authority Retirement Plan, Chicago, Ill.
Clawson Fire Department Employees’ Pension, Clawson, Mich.
Dallas Area Rapid Transit, Dallas, Texas
District 1199 New Jersey Health Care Employees, Newark, NJ
Flint Employees Retirement System, Flint, Mich.
Houston Metropolitan Transit Authority, Houston, Texas
Houston Healthcare Corporation, Warner Robins, Ga.
Greater Chicago Metropolitan Water Reclamation, Chicago, Ill.
Mobile Police and Fire, Mobile, Ala.
MSSA-ILA Pension Welfare & Vacation Plans, Mobile, Ala.
New Haven Police and Fireman’s Pension, New Haven, Conn.
Pontiac General Employees Retirement System, Pontiac, Mich.
Pontiac Police and Fire Retirement Plan, Pontiac, Mich.
Riviera Beach General Employees Retirement, Riviera Beach, Fla.
Southfield Employees Retirement System, Southfield, Mich.
Taylor Police and Fire Retirement System, Taylor, Mich.
Teamsters Union Local 237, New York, NY
Texas Southern University, Houston, Texas
Traverse City Act 345 Retirement System, Traverse City, Mich.
Source: Staff research, Gray & Co.