Alternative Investments: Institutions Spend At Least $3 Million in COVID Lobbying

April 27, 2020 | Alternative Investments, News
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The Carlyle Group (NYSE: CG)… SoftBank… Blackstone Group (NYSE: BX)…

These institutions spent at least $3 million lobbying the White House and Congress for COVID economic relief. The firms have lobbied key Trump administration officials and fundraisers of the GOP. The three firms started lobbying back in March when Congress started debating the $2 trillion stimulus package. According to records, various Congressional Representatives and Treasury officials expressed anger at the actions of these firms.

The Carlyle Group and Others Press Trump

CNBC examined a number of records tied to lobbying efforts. Reporters suggested that the firms were not attempting to obtain capital for the private equity industry. Instead, the firms aimed to ensure participation among portfolio companies in federal loan programs. Blackstone CEO Steve Schwarzman participated in a phone call with President Trump and Vice President Mike Pence. Other established investors taking place on that call included Dan Loeb of Third Point, Intercontinental Exchange’s Jeffrey Sprecher, and Paul Tudor Jones.

Blackstone denies that the firm was pushing for participation in the loan program. Matt Anderson, the company’s spokesperson, said that the company used lobbyists as a way to keep tabs on the legislation. “Blackstone did not engage in any lobbying for the CARES Act loan programs, and was generally monitoring and analyzing the legislation,” he told CNBC. That said, the firm did hire a lobbyist who bundled more than $2 million in Q1 2020 for the Trump reelection campaign and the RNC.

Meanwhile, SoftBank responded to questions from CNBC about its efforts. The Japanese conglomerate wanted financial technologies to participate as lenders in the Paycheck Protection Program (PPP). The firm also reportedly spent $1.2 million to ensure that fintech firms could participate. Two of its portfolio companies – Kabbage and SoFi – now participate in PPP lending.

Finally, the Carlyle Group spent about $1.2 million toward lobbying on the CARES Act. Records show that the company targeted airline and airport relief provisions in the CARES Act.” The company counts Landmark Aviation and PrimeFlight Aviation as investments.

Related: Private Equity: Winners and Losers from The $2 Trillion Stimulus Package

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