By Chris Cumming
Private-equity executives are lining up behind their favored
presidential candidates, with support ranging from Donald Trump to
moderate Democrats, based on an analysis of campaign-finance
records.
Employees of private-equity and investment firms spent more than
$41 million on 2020 races for the White House and Congress through
Feb. 3, somewhat favoring Democrats over Republicans overall,
according to the nonpartisan Center for Responsive Politics,
located in Washington.
Most of this money has gone to House and Senate candidates,
party committees and outside groups. But many of the industry's big
names have taken sides in the presidential race.
Among Democratic presidential candidates, former Vice President
Joe Biden, former South Bend, Ind., Mayor Pete Buttigieg and
Minnesota Sen. Amy Klobuchar have received the most money from
employees of private-equity and investment firms, excluding
candidates who have dropped out, according to the CRP. Mr. Biden
received about $443,000, Mr. Buttigieg $345,000 and Ms. Klobuchar
$155,000.
President Trump ranks fourth among those still in the
presidential hunt, with about $62,000 in contributions to his
campaign, CRP data show. However, private-equity executives have
given much more to political-action committees supporting Mr.
Trump, Federal Election Commission records show.
Blackstone Group Inc. founder and Chief Executive Stephen
Schwarzman has given more than $350,000 to the Trump Victory PAC,
based on FEC records. Meanwhile, firm President Jon Gray has backed
numerous Democratic presidential aspirants, including Messrs. Biden
and Buttigieg, with donations of $2,800, the maximum an individual
can give to a candidate in each election. Mr. Gray and Blackstone
Vice Chairman Hamilton James have also contributed to Ms.
Klobuchar's campaign.
Blackstone declined to comment.
Bain Capital leads all firms in political spending by employees,
with contributions totaling about $3.6 million, CRP data show.
While widely associated with former Republican presidential nominee
Mitt Romney, who co-founded the firm, Bain Capital's employees have
almost exclusively backed Democrats in 2020.
Josh Bekenstein, the firm's co-chairman, spent more than $2
million and co-managing partner Jonathan Lavine spent about
$750,000 in support of Democrats by the end of 2019, based on FEC
records. Both have backed Mr. Biden as well as Democrats who have
dropped out, including Deval Patrick, the former Massachusetts
governor who led the firm's impact-investing arm before launching
his unsuccessful presidential run.
Bain Capital declined to comment.
Aside from Blackstone and Bain Capital, many leaders of the
largest private-equity firms have mostly stayed on the sidelines of
the presidential race.
Apollo Global Management co-founders Leon Black, Josh Harris and
Marc Rowan haven't given to any candidates still in the
presidential race, FEC records show. In total, Apollo, the
second-largest firm by assets under management, ranks 12th among
private-equity and investment firms in employee spending on the
2020 elections, CRP data show.
KKR & Co. co-chairmen and co-CEOs Henry Kravis and George
Roberts have spent more than $60,000 combined, favoring Republican
Senate and House candidates, but haven't backed any presidential
aspirants. KKR doesn't rank among the top 20 firms in employee
spending, CRP data show.
Carlyle Group co-founders William Conway, Daniel D'Aniello and
David Rubenstein haven't given to candidates for any office this
cycle, according to FEC records. However, managing director James
Attwood has given more than $500,000 to Democrats, including $2,800
contributions to Mr. Biden and to other candidates who have since
dropped out, according to FEC records.
Employees of smaller firms have in many cases outspent the
giants. Insight Partners and Centerbridge Partners are both among
the top private-equity and investment firms ranked by employee
spending on 2020 races, with each firm's employees contributing
about $1 million through Feb. 3, according to the CRP. Both firms'
employees have almost exclusively supported Democrats.
Centerbridge co-founder Mark Gallogly, who served as an adviser
to the Obama administration, has spent more than $500,000 on 2020
races in total, and has backed Mr. Biden and Ms. Klobuchar, among
other presidential aspirants.
At Insight, which manages more than $20 billion, the largest
spenders are Managing Directors Richard Wells and Jeff Horing, who
have both backed Mr. Buttigieg, according to FEC records.
Centerbridge and Insight declined to comment.
Vermont Sen. Bernie Sanders and Massachusetts Sen. Elizabeth
Warren have received very little support from employees of private
equity and investment firms: about $15,000 and $38,000,
respectively, CRP data show. Both have sharply criticized the
industry's practices.
Their candidacies have sparked worries for many private-equity
investors, said Brett Palmer, president of the Small Business
Investor Alliance, a trade group that represents investors in small
businesses.
"A whole lot of people have lost the ability to be shocked after
the last election and this election so far, and are just hoping
that whoever comes out is pro-small business," Mr. Palmer said.
Write to Chris Cumming at chris.cumming@wsj.com
(END) Dow Jones Newswires
February 27, 2020 07:14 ET (12:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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