Rauner invested in troubled fund linked to Daley’s son
By TIM NOVAK Staff Reporter July 13, 2014 10:31PM
Republican gubernatorial nominee Bruce Rauner | AP file photo
Updated: July 14, 2014 12:25PM
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.