CG Carlyle Group Inc

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)

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