Lawrence (Larry) R. Goldfarb
Encyclopedia
Lawrence R. Goldfarb is an American hedge fund
manager and former CEO and founding partner of the LRG Capital Group
.
. Following high school he attended George Washington University
and earned a B.A.
in International Economics, and graduated in 1981. Thereafter he was a student at Georgetown University Law School where he regularly published articles for the Georgetown Law Journal
. He graduated with his cum laude in 1984.
and subsequently became a tax analyst with Skadden, Arps, Slate, Meagher & Flom
, where he specialized in financings, mergers and recapitalizations.
Afterwards Mr. Goldfarb moved to San Francisco, California
and joined Credit Suisse First Boston
Corporation as a Partner and Director of the Mergers and Acquisitions Group. In 1998 he formed BayStar Capital
Management, LLC, a vehicle in which he could fund growth oriented, small capitalization, and publicly traded companies. In 2005, he founded LRG Capital Group
in Larkspur, California
where he served as CEO until July 2011 when he announced his retirement from active management of the companyhttp://www.lrgcapital.com/news-article.php?id=222&keywords=LRG_Capital_Group_Founder_and_CEO_Lawrence_Goldfarb_Retires_From_the_Company_to_Focus_on_Philanthropic_Foundation_and_Other_Interests. He continues to serve as Vice Chairman of SessionEx and Chairman of the Board of Om Records
.
Mr. Goldfarb regularly speaks at both national and international private equity and hedge fund conferences and events, including the 4th Annual Global Absolute Returns Congress , the Australian Pensions and Investment Summit, and the Building Billion-Dollar Companies in the Bay State.
Mr. Goldfarb is also the co-founder of SessionEx with David Gottesman, and co-founder of LRG Capital Cascade with Lee Brockett.
Without admitting or denying the SEC’s allegations, Goldfarb and BCM consented to permanent injunctions against violations of Section 206(1), (2) and (4) of the Investment Advisers Act of 1940 and to pay disgorgement of $12,112,416 and prejudgment interest of $1,967,371, which will be distributed to the fund’s investors. Goldfarb also agreed to pay a $130,000 penalty, be barred from associating with any investment adviser or broker (with the right to reapply in five years), and be barred from participating in any offering of penny stock. U.S. Securities and Exchange Commission Litigation Release No. 21870 / March 1, 2011 Securities and Exchange Commission v. Lawrence R. Goldfarb et al., CV-11-0938-DMR (U.S. District Court for the Northern District of California, filed March 1, 2011)
Hedge fund
A hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
manager and former CEO and founding partner of the LRG Capital Group
LRG Capital Group
LRG Capital Group is a global investment, banking and advisory boutique that focuses on public and private companies in the technology, life sciences, hospitality, real estate and entertainment sectors. The firm was founded by Lawrence R...
.
Education
Mr. Goldfarb grew up in the New York City boroughs outside Manhattan and attended Forest Hills High SchoolForest Hills High School
Forest Hills High School , dedicated in 1937, is a public secondary school in Queens, New York City. It educates students in grades 9–12 and is operated by the New York City Department of Education.- Location :...
. Following high school he attended George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
and earned a B.A.
Bachelor of Arts
A Bachelor of Arts , from the Latin artium baccalaureus, is a bachelor's degree awarded for an undergraduate course or program in either the liberal arts, the sciences, or both...
in International Economics, and graduated in 1981. Thereafter he was a student at Georgetown University Law School where he regularly published articles for the Georgetown Law Journal
Georgetown Law Journal
The Georgetown Law Journal is a student-edited scholarly journal published at Georgetown University Law Center.-Overview:The Journal publishes six issues each year. It also publishes the Annual Review of Criminal Procedure, a comprehensive practitioner's guide to criminal procedure.The first volume...
. He graduated with his cum laude in 1984.
Professional life
Mr. Goldfarb began his career as a tax attorney for Milbank, Tweed, Hadley & McCloyMilbank, Tweed, Hadley & McCloy
Milbank, Tweed, Hadley & McCloy LLP is a United States law firm headquartered in New York City. It also has offices in Washington, D.C., Los Angeles, London, Frankfurt, Munich, Tokyo, Hong Kong, São Paulo, Singapore and Beijing.Milbank is a global law firm, with approximately 550 lawyers who...
and subsequently became a tax analyst with Skadden, Arps, Slate, Meagher & Flom
Skadden, Arps, Slate, Meagher & Flom
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates , founded in 1948, is a prominent law firm based in New York City. With over 2,000 attorneys, it is one of the largest and highest-grossing law firms in the world. Forbes magazine calls Skadden "Wall Street's most powerful law firm"...
, where he specialized in financings, mergers and recapitalizations.
Afterwards Mr. Goldfarb moved to San Francisco, California
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
and joined Credit Suisse First Boston
Credit Suisse First Boston
Credit Suisse First Boston was the former name of the banking firm Credit Suisse.-History:In 1978, Credit Suisse and First Boston Corporation formed a London-based 50-50 investment banking joint venture called the Financière Crédit Suisse-First Boston...
Corporation as a Partner and Director of the Mergers and Acquisitions Group. In 1998 he formed BayStar Capital
BayStar Capital
The LRG Capital Funds are managed by LRG Capital Group, LLC. Through its BayStar Capital III Investment Fund, a multi-strategy investment fund, the firm makes direct investments in small-to mid capitalization, public and late-stage private companies, primarily within the technology and life...
Management, LLC, a vehicle in which he could fund growth oriented, small capitalization, and publicly traded companies. In 2005, he founded LRG Capital Group
LRG Capital Group
LRG Capital Group is a global investment, banking and advisory boutique that focuses on public and private companies in the technology, life sciences, hospitality, real estate and entertainment sectors. The firm was founded by Lawrence R...
in Larkspur, California
Larkspur, California
Larkspur is a city in Marin County, California, United States. Larkspur is located south of San Rafael, at an elevation of . As of the 2010 Census, the city's population was 11,926. Larkspur is located north of San Francisco near Mount Tamalpais. Larkspur's Police Department is shared with that...
where he served as CEO until July 2011 when he announced his retirement from active management of the companyhttp://www.lrgcapital.com/news-article.php?id=222&keywords=LRG_Capital_Group_Founder_and_CEO_Lawrence_Goldfarb_Retires_From_the_Company_to_Focus_on_Philanthropic_Foundation_and_Other_Interests. He continues to serve as Vice Chairman of SessionEx and Chairman of the Board of Om Records
Om Records
Om Records is a US-based record label, established in 1995, which releases electronic music, dance music, and hip hop. The label was founded in San Francisco in 1995 by Chris Smith. Om Records releases both artist albums and various compilations. Some of the most notable compilations include Om...
.
Mr. Goldfarb regularly speaks at both national and international private equity and hedge fund conferences and events, including the 4th Annual Global Absolute Returns Congress , the Australian Pensions and Investment Summit, and the Building Billion-Dollar Companies in the Bay State.
Mr. Goldfarb is also the co-founder of SessionEx with David Gottesman, and co-founder of LRG Capital Cascade with Lee Brockett.
SEC Settlement
On March 1, 2011 the Securities and Exchange Commission (SEC) alleged that Goldfarb and his company diverted $12 million to other entities he controlled. According to the SEC complaint, Goldfarb concealed the cash for several years by showing that no gains had been realized in a side pocket account. This account indicated that the side pocket investments had not yet distributed any profits to the fund, and investors were unable to determine that they were entitled to distributions. The SEC also alleged that Goldfarb took steps to conceal the side pocket profits from the fund’s third party administrator.Without admitting or denying the SEC’s allegations, Goldfarb and BCM consented to permanent injunctions against violations of Section 206(1), (2) and (4) of the Investment Advisers Act of 1940 and to pay disgorgement of $12,112,416 and prejudgment interest of $1,967,371, which will be distributed to the fund’s investors. Goldfarb also agreed to pay a $130,000 penalty, be barred from associating with any investment adviser or broker (with the right to reapply in five years), and be barred from participating in any offering of penny stock. U.S. Securities and Exchange Commission Litigation Release No. 21870 / March 1, 2011 Securities and Exchange Commission v. Lawrence R. Goldfarb et al., CV-11-0938-DMR (U.S. District Court for the Northern District of California, filed March 1, 2011)