The New Jersey State Investment Council, the agency managing that state’s public pension fund, is scheduled to meet Tuesday amid reports that it has sold its stake in a Cambridge-based venture capital fund, an investment that has sparked allegations of a potential pay-to-play violation by Massachusetts GOP gubernatorial nominee Charlie Baker.
Fortune.com reported Monday that the council, a state agency controlled by Governor Chris Christie and General Catalyst, where Baker has been listed as executive in residence and partner, reached an agreement last month for the agency to sell its original $15 million stake in one of the firm’s funds.
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The council’s investment decision came seven months after Baker donated $10,000 to the Christie-controlled New Jersey Republican Party. Christie is now chairman of the Republican Governors Association, which has funded several million dollars worth of ads supporting Baker’s candidacy.
At the request of the council last May, the New Jersey Department of the Treasury, which Christie oversees, began a legal review of the Baker donation, following news reports of the donation. It is not clear whether the council will release the review’s findings at its meeting Tuesday or disclose any sale of its stake in the General Catalyst fund.
A council spokesman would not comment on the Fortune.com report.
When the issue flared in May, Baker insisted his position at General Catalyst would not fall under federal or state security regulations that bar investment managers from making political donations to political figures who have control over public pension funds.
Both Baker and General Catalyst say Baker was not involved in making investment decisions or seeking contracts for managing public pension funds, roles that would be covered by both New Jersey and federal laws. Baker says he worked as an “executive in residence,” essentially a consultant responsible for finding and managing companies in which General Catalyst invests.
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Both Baker’s campaign and General Catalyst expressed optimism about Tuesday’s council meeting. “Charlie is pleased that this matter appears to have been resolved, but until the State of New Jersey makes an announcement, we have no further comment.” said Tim Buckley, Baker’s campaign press secretary.
General Catalyst spokeswoman Michelle Daubar said the company would have no comment on the Fortune.com report.
Baker took a leave of absence from his position at General Catalyst as of Aug. 1. He also resigned from the boards of the three companies in which General Catalyst had made investments. One of those firms, Oscar Insurance, a New York-based health care startup, received some of the $15 million that the investment firm received from the Council.