When Hillary Clinton’s son-in-law sought funding for his new hedge fund in 2011, he found financial backing from one of the biggest names on Wall Street: Goldman Sachs chief executive Lloyd Blankfein.
The fund, called Eaglevale Partners, was founded by Chelsea Clinton’s husband, Marc Mezvinsky, and two of his partners. Blankfein not only personally invested in the fund, but allowed his association with it to be used in the fund’s marketing.
The investment did not turn out to be a savvy business decision. Earlier this month, Mezvinsky was forced to shutter one of the investment vehicles he launched under Eaglevale, called Eaglevale Hellenic Opportunity, after losing 90 percent of its money betting on the Greek recovery. The flagship Eaglevale fund has also lost money, according to the New York Times.
There has been minimal reporting on the Blankfein investment in Eaglevale Partners, which is a private fund that faces few disclosure requirements. At a campaign rally in downtown San Francisco on Thursday, I attempted to ask Hillary Clinton if she knew the amount that Blankfein invested in her son-in-law’s fund.
Watch the video:
After repeated attempts on the rope line, I asked the Clinton campaign traveling press secretary Nick Merrill, who said, “I don’t know, has it been reported?” and said he would get in touch with me over email. I sent the question but have not received a response back.
The decision for Blankfein to invest in Hillary Clinton’s son-in-law’s company is just one of many ways Goldman Sachs has used its wealth to forge a tight bond with the Clinton family. The company paid Hillary Clinton $675,000 in personal speaking fees, paid Bill Clinton $1,550,000 in personal speaking fees, and donated between $250,000 and $500,000 to the Clinton Foundation. At a time when Goldman Sachs directly lobbied Hillary Clinton’s State Department, the company routinely partnered with the Clinton Foundation for events, even convening a donor meeting for the foundation at the Goldman Sachs headquarters in Manhattan.
Mezvinsky, who married Chelsea in 2010, previously worked at Goldman Sachs and started his fund along with two other former employees of the investment bank. Securities and Exchange Commission disclosures show that Eaglevale required new investors to put down a minimum of $2 million.
Clinton has dodged questions about her relationship with Goldman Sachs throughout the campaign. In January, we were the first to ask Clinton if she would release the transcripts of her paid speeches to Goldman Sachs. She responded by laughing and turning away. Since our question, other media outlets, including the New York Times editorial board, have called on Clinton to release the transcripts.
Clinton at times tried to conflate the money she received with campaign finance donations to Barack Obama — though the issues are separate; Obama never personally profited from paid speeches before running for president.
Clinton most recently said she would only release the transcripts if Bernie Sanders and her Republican opponents also reveal transcripts of their paid speeches. Disclosures show Sanders made $1,867.42 from two paid speeches and a television appearance last year, and donated the money to a nonprofit in Vermont that assists low-income families.
[This post has been updated with more information about Eaglevale.]