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Private Equity Group Lobbied Trump Administration For $500B Coronavirus Bailout Fund: Report

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Private Equity Group Lobbied Trump Administration For $500B Coronavirus Bailout Fund: Report

The American Investment Council, which acts as a lobbyist for the private equity industry, pushed the Trump administration to include $500 billion in relief for businesses as part of a coronavirus stimulus package, CNBC reported.

The Private Equity Push

Blackstone Group Inc (NYSE: BX), Carlyle Group Inc> (NASDAQ: CG), Apollo Global Management Inc (NYSE: APO), KKR & Co Inc (NYSE: KKR) and Warburg Pincus are among the private equity giants with close ties to the American Investment Council. 

The group reportedly spoke with Republican and Democratic officials, along with members of the Treasury Department, sources told CNBC.

The lobbyists emphasized the importance of economic stabilization and the need to provide liquidity to businesses impacted by the coronavirus, the sources said. 

While the private equity firms didn't specifically request financial assistance, some are likely to benefit through some of the companies in which they invested, according to CNBC. 

Benzinga is covering every angle of how the coronavirus affects the financial world. For daily updates, sign up for our coronavirus newsletter.

Lobbying Group Responds 

The lobbyists also made their position clear that the Trump administration shouldn't block companies from receiving financial aid just because they received funding from a private equity firm, CNBC said. 

"Businesses across America are looking for support immediately in order to survive and continue to employ people," Drew Maloney, the CEO of American Investment Council, said in a statement to CNBC.

"It shouldn't matter if these companies are backed by investments from corporations, pension funds, or others." 

What's Next

Both the U.S. Congress and White House have made it clear they are considering additional rounds of stimulus packages over time, according to CNBC.

Related Links:

'Very, Very Painful Two Weeks' Ahead: Trump Expects 100,000-240,000 Coronavirus Fatalities

Trump Extends Coronavirus Social Distancing Guidelines To April 30

 

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