Did you think that Bruce Rauner was an outsider when he ran for Governor in 2014?

Did you think he was going to “shake up Springfield”?

Did you think he was a successful businessman?

Did you think he was a fiscal conservative?    So did we.

Outsider?  – You decide.

GTCR is a private equity company.   The “R” in that company name is Rauner’s.  That’s how he made his mountain of money.

GTCR is the 2nd largest private equity company in Chicago (as of 2013).

Crain’s Chicago Business reported the following

… “GTCR has raised a significant portion of its money, perhaps the largest percentage, from public pension funds.  They (public pension funds) supplied half to two-thirds of the firm’s funds, by Mr. Rauner’s estimate.”

…”GTCR has managed money for years for the Illinois Teachers’ Retirement System (TRS) and the Illinois State Board of Investment (ISBI), the largest and third-largest respectively”

…”Combined, Teachers Retirement System (TRS) and the Illinois State Board of Investment (ISBI) have committed $252 million with GTCR from 1993 to 2013″.

Follow me here:

Imagine the whole pie of private equity investor money adds up to $100.   In that case,  only $29 out of that $100 would be from public pensions as a whole (see chart at bottom of post).   If a private equity firm were to get approximately one-fourth to one-third of their money from public pensions then this would be in line with the averages.

But if a private equity firm were getting half to two-thirds of their money from public pensions then some questions must be asked.

Like how can Bruce Rauner really be considered an ‘outsider to Government’ when he’s made his fortune primarily on money from public pensions?

How does a firm get double the average amount of public pension money to invest?

How do the partners make so much money off of public pension funds?

Was this the sort of ‘successful businessman’ that you thought you were electing Governor?

Also read:
Part 2: Was Bruce Rauner an outsider when he ran for Governor?
Part 3: Was Bruce Rauner an outsider when he ran for Governor?

 

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