Asset managers accredited for PPP cash
A hedge fund that might go bankrupt, the household workplace of a former fund supervisor and a enterprise capital fund launched in 2015 are among the many hundreds of corporations listed as mortgage recipients below the Paycheck Safety Program from the federal authorities.
On Monday, the Small Enterprise Administration launched an inventory of the greater than 660,000 companies which have acquired a mortgage better than $ 150,000 below this system, which goals to assist companies hold individuals employed in the course of the coronavirus pandemic.
If a enterprise meets sure eligibility requirements, half or all the mortgage will probably be forfeited. The loans additionally carry an rate of interest of 1%, relying on the SBA web site.
Nevertheless, some corporations listed within the SBA information have questioned its accuracy. Electrical scooter firm Hen stated on Twitter that it was “wrongly” listed amongst mortgage recipients. Based on Hen, the corporate has neither utilized for nor acquired a PPP mortgage. An organization contacted by Institutional investor for this story skilled the same drawback: its CEO stated through e-mail on Monday that the corporate had not acquired a PPP mortgage, regardless of being listed within the information. And three different corporations listed in an earlier model of the article that didn’t reply to a request for remark or couldn’t be reached for remark later responded to say they had been additionally listed in error. .
Based on information launched on Monday, an activist hedge fund firm Marcato Capital Administration was accredited for a mortgage of $ 150,000 to $ 350,000 below this system. Finish of December, CNBC reported that the corporate was within the means of liquidating. An organization spokesperson didn’t instantly return an e-mail requesting remark.
In the meantime, John Kleinheinz – whose hedge fund agency Kleinheinz Capital Companions closed in 2012, in accordance with Reuters – has been listed because the beneficiary of a mortgage for his household workplace, Kleinheinz Capital Companions. The mortgage quantity was between $ 150,000 and $ 350,000, in accordance with the information. Kleinheinz contacted II after the publish to say that if his firm’s financial institution ready a PPP mortgage software for him to signal, he didn’t signal it and his firm didn’t settle for a PPP mortgage.
Aegis Capital, an funding financial institution that was fined by FINRA in 2015 for allegedly improperly promoting unregistered penny shares, has been listed as receiving between $ 1 million and $ 2 million from this system, in accordance with the information. An organization spokesperson didn’t return an e-mail looking for remark.
Healthcare funding agency Altium Capital acquired between $ 150,000 and $ 350,000, in accordance with the itemizing. The corporate was based by Jacob Gottlieb, who can also be the founding father of Visium asset administration, a hedge fund firm which, in 2018, paid the charges by the Safety and Commerce Fee that it has engaged in insider buying and selling and misappropriation of property. An organization spokesperson didn’t return an e-mail looking for remark.
Hedge fund firm Marto Capital was listed as a recipient of $ 150,000 to $ 350,000 below this system. The corporate, based by ex-Bridgewater govt Katina Stefanova, has come below scrutiny for giant investor buyouts, workers turnover and the termination of its SEC registration. Marto didn’t reply to a request for remark in time for publication.
[II Deep Dive: The Untold Story of Katina Stefanova’s Marto Capital]
Information exhibits that enterprise capital agency Basis Capital’s eighth fund, which was launched in 2015, has been accredited for a mortgage value between $ 1 million and $ 2 million, though the corporate has contacted II after posting to say that she by no means utilized for or acquired a PPP mortgage. Based on an organization spokesperson, the claimant was one among its portfolio corporations and the processing financial institution indicated that the Basis was the claimant in an information entry error.
Enterprise capital corporations Andreessen Horowitz – also referred to as a16z – and Paladin Capital Administration have been listed as receiving between $ 350,000 and $ 1 million every from this system, in accordance with the itemizing. A16z spokesperson contacted II after the article was initially revealed to say that he didn’t apply for or obtain a PPP mortgage. A spokesperson for Paladin declined to touch upon Monday.
Asset administration corporations Vukota Capital Administration and Taurus Asset Administration every acquired between $ 150,000 and $ 350,000, in accordance with the itemizing. Spokesmen for every of them didn’t return an e-mail asking for remark.
Based on the listing, fairness funding agency Cardinal Capital Administration acquired between $ 350,000 and $ 1 million from this system. A spokesperson for the agency contacted II to problem his registration, claiming to have by no means utilized for or acquired PPP loans.
Editor‘sWord: An earlier model of this story said that Arex Capital Administration was accredited for a PPP mortgage, in accordance with the SBAof listing of corporations which have acquired these loans. Arex contacted II following the publication of the article to inform him that the agency had not acquired such a mortgage and that his identify was listed in error by the SBA.