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Rauner invested in troubled fund linked to Daley’s son

Republican gubernatorial nominee Bruce Rauner  |  AP file photo

Republican gubernatorial nominee Bruce Rauner | AP file photo

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Updated: August 15, 2014 6:03AM

Cardinal Growth — the Chicago venture capital firm seized by the federal government after bankrolling companies tied to former Mayor Richard M. Daley’s son — had many wealthy investors, including Bruce Rauner, the Republican candidate for governor.

As a result, Rauner and 33 other investors found themselves in the crosshairs of federal prosecutors seeking to recover $21.4 million in government loans Cardinal Growth got from the U.S. Small Business Administration. Cardinal invested those loans in companies including Municipal Sewer Services, which was handed no-bid deals from City Hall while Daley’s son and a nephew were among its undisclosed owners.


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