Two stories this morning.
POLITICO reports that Bruce Rauner profits from a company that is working with I.C.E. detention centers, facilities that hold immigrant families with children.
His investments started in 2011 at GTCR, the private-equity company where Rauner was a partner
The “R” is the Governor.
GTCR has invested more than $15 billion through this and other funds in more than 200 companies, according to recent company statements. In this particular case, Rauner disclosed that he earned more than $5,000 from a fund in which Correct Care Solutions is an important part of its portfolio.
Investment funds 101. The fund buys a portion of the company, in this case Correct Care Solutions (CCS), for a certain price. That price today may be above or below the purchase price, but either way, it’s just a paper gain or loss until the fund actually sells.
It’s a lot like taking a check and not cashing it.
This is not the first time Rauner’s connections to GTCR have made this blog.
A blog post from December 2017: Before running for Illinois Governor Rauner ran GTCR, a private equity firm that owned, among other things, a chain of nursing homes.
GCTR had also assembled a chain of nursing homes, Trans Healthcare, Inc., for which Rauner had been making decisions four years after it was founded, the Chicago Tribune discovered—not the one year that Rauner claimed he had been involved. During those years, the nursing homes were sued and charged over $1 billion for at least six wrongful deaths. At the same time, investors, including GTCR, created a financial shell for all of the chain liabilities that was turned over to one of the residents of the nursing homes, thus protecting the assets of the investors.
Then there was yet another disquieting twist in the final weeks of the campaign. The Chicago Sun-Times, recently purchased by a group of investors including Rauner and still owned by many of his friends, pulled Dave McKinney, the paper’s long-time statehouse political reporter, off his reporting on the nursing home story and all politics on the grounds of questionable appearances because his wife works as a political consultant.
Six people died as a result of GTCR management.
Meanwhile Rahm’s poll numbers are in the toilet even before Lori Lightfoot entered the race. Lori Lightfooot, who was our guest on Hitting Left two weeks ago, is poised to take a spot in the inevitable run-off.
This latest poll was conducted roughly two weeks before Lightfoot declared her candidacy by condemning Emanuel’s autocratic, “us-vs.-them” style of government.
At the time, McCarthy’s 70 percent name recognition vaulted him into second-place, with 16 percent of the vote, followed by Circuit Court Clerk Dorothy Brown with 15 percent and former Chicago Public Schools CEO Paul Vallas with 9 percent.
Lightfoot was in the 2-to-3 percent range, just slightly above County Commissioner Bridget Gainer, who is poised to enter the race in days.
But, when Lightfoot’s background was described, simulating a “modest amount of paid communications,” she moved into second-place.
And when voters were told enough about Lightfoot to simulate a “well-funded campaign” — her status as Emanuel’s preeminent challenger was “solidified” and the former Police Board president managed to consolidate much of the anti-Emanuel sentiment in a head-to-head race, building a 50-to-40 percent lead in a potential run-off.