Arcadia Investment Partners faces criticism for an investment pitch that sought to generate returns from government coronavirus programs. A pitch reportedly suggested that wealthy investors could generate 22% to 175% returns through programs designed to help Americans keep their jobs. The programs – largely announced by Congress, the President and the Fed in recent weeks – also aim to boost the economy at a time it is crashing.

Arcadia Investment Partners and Its Plan

Reuters reported that it had seen a document outlining the pitch. However, Dahlia Loeb, a managing director at the firm, said that. the company wasn’t moving forward with the plan. Loeb said that it wasn’t going forward for reasons “that include uncertainty surrounding the regulations.”

A confidential report from April 4 said the firm had a “highly time-sensitive opportunity” for “a limited number of sophisticated investors.”  The plan would have involved the raising of money to finance loans to small businesses as part of the $2.2 trillion aid package. The firm wanted to juice profits by 90% to 95% by borrowing money from Fed-supported funding markets.

Reuters says that the pitch shows how private firms are looking to cash in on government aid. Arcadia launched in 2001 and centers its investments around distressed credit, real estate, and private equity. Investors include hedge funds, family offices, and wealthy executives.

Read more about the plan, here.

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