Whether it is preserving favored tax loopholes or forestalling more comprehensive reform, private fund executives spend on politics for the purpose of getting richer at the expense of everyone else. — Ricardo Valadez, private equity campaign manager at Americans for Financial Reform
Whether it is preserving favored tax loopholes or forestalling more comprehensive reform, private fund executives spend on politics for the purpose of getting richer at the expense of everyone else. — Ricardo Valadez, private equity campaign manager at Americans for Financial Reform
Private equity, hedge funds accounted for over $625 million in political spending during 2020 campaign, study says
  • Private equity and hedge funds accounted for over $625 million in political spending during the runup to the 2020 election, with the lion’s share going to campaign contributions, according to new research.
  • It was the most this segment of the financial industry spent on lobbying and campaign contributions in a two-year campaign cycle, according to the study, from Americans for Financial Reform.
  • About $547 million of the total went to campaign contributions. The rest went to lobbying.
The study doesn’t include a breakdown of party affiliation or which candidates received the most money. AFR told CNBC that it hopes to craft that data set.

Democrats in Congress are aiming to ramp up regulations on these sectors. Sen. Elizabeth Warren, D-Mass., was among a group of Democratic lawmakers who recently reintroduced the Stop Wall Street Looting Act, which seeks to end the carried interest loophole that private equity firms have taken advantage of for years. The legislation also takes aim at firms’ transparency regarding fees and returns, among other information.

AFR describes itself as a nonpartisan coalition with over 200 members, including the AFL-CIO, the NAACP, the Color of Change and Common Cause. With this study, the group is looking to shed light on the influence wielded by what it calls “powerful Wall Street titans.”

“Whether it is preserving favored tax loopholes or forestalling more comprehensive reform, private fund executives spend on politics for the purpose of getting richer at the expense of everyone else,” Ricardo Valadez, private equity campaign manager at AFR, said in a statement provided to CNBC.


... Data from the Center for Responsive Politics shows that people in the investment and securities industry combined gave more than $74 million to back President Joe Biden’s 2020 run for president, a much larger sum than what Donald Trump raised from Wall Street.

Donors at Citadel, who spent $67 million, at Blackstone, $43 million, and at Susquehanna International, $30 million, accounted for the biggest spending on contributions to federal campaigns last cycle, AFR said.

The top spenders on lobbying last cycle included Cerberus Capital, Apollo Global and the Carlyle Group, the organization said.
Read the full article: https://www.cnbc.com/2021/10/25/private-equity-hedge-funds-spent-over-625-million-during-2020-election-study.html