After Virginia Democrat gubernatorial candidate Terry McAuliffe disparaged his Republican opponent Glenn Youngkin’s private equity firm, the Carlyle Group, financial disclosures show he invested nearly $700,000 into the firm before his 2021 reelection bid. Youngkin previously served as co-CEO of the company for over 25 years before stepping down last year to run for governor.
According to financial records obtained by the Associated Press (AP), “McAuliffe invested at least $690,000 in Carlyle funds between December 2007 and the end of 2016.” As the report later notes, “the actual figure is likely much higher because the disclosures require candidates to acknowledge only a broad range of investment with no upper limit in some cases.”
In 2013, the private equity firm lowered its minimum investment entry point, allowing people to make investments as small as $50,000 in its buyout fund. According to CNBC, Carlyle’s earlier minimum entry point required investments ranging from $5 million to $20 million.
While McAuliffe spokeswoman Christina Freundlich told the AP McAuliffe had made no investments into Carlyle since 2014, she appeared to backtrack, telling the Washington Post “McAuliffe is now only a ‘minimal’ investor, with a stake worth less than the $5,000 reporting threshold.” Moreover, Freundlich argued that McAuliffe was simply a “passive investor,” with no say in investment decisions.
The McAuliffe campaign and Carlyle did not respond to The Federalist’s request for comment.
The revelations about McAuliffe’s past financial investments come on the heels of the Democrat candidate’s numerous attacks against Youngkin and his role as co-CEO at Carlyle.
“Far too often, mobile home owners are victims of predatory schemes by private equity giants like Youngkin’s Carlyle Group,” McAuliffe said in a recent tweet. “Glenn’s company was responsible for raising the rent in mobile home communities like this one. My plan will protect Virginians from this predatory practice.”
Far too often, mobile home owners are victims of predatory schemes by private equity giants like Youngkin’s Carlyle Group. Glenn’s company was responsible for raising the rent in mobile home communities like this one. My plan will protect Virginians from this predatory practice.
— Terry McAuliffe (@TerryMcAuliffe) July 8, 2021
In response to the news, Youngkin’s press secretary Macaulay Porter blasted McAuliffe as a “dishonest” politician who “talks out of both sides of his mouth.”
“McAuliffe’s bogus attacks ring hollow because he is still an investor in The Carlyle Group and has invested millions of dollars in private equity companies,” she told The Federalist.
“Glenn joined The Carlyle Group when it was a small company and over the next 25 years worked his way up to the top of the company, helping to grow it into a hugely successful enterprise that turned good businesses into great businesses, created tens of thousands of jobs, and funded the retirement pensions of police officers, firefighters, and teachers.”
McAuliffe and Youngkin are set to square off in Virginia’s gubernatorial election later this year on November 2.