CHICAGO - Republican Bruce Rauner's campaign is leading in the polls, but it keeps getting hit with media questions concerning Rauner's companies' ties and investments. Saturday, the Sun-Times questioned investments the gubernatorial candidate has made in the Cayman Islands.
The government of Cayman Islands' primary source of income is indirect taxation: there is no income tax, capital gains tax, or corporation tax.
Rauner's spokesman defended the candidate's Cayman Islands' investments, saying Rauner's firm is incorporated in the United States. GTCR creates offshore subsidiary funds when investing in non-U.S. companies.
“Doing so helps fulfill fiduciary duties to state pension funds and other investors. GTCR investments in domestic companies are kept in the United States,” Mike Schrimpf, Rauner's campaign spokesman, said. “Bruce’s personal tax rate and state tax obligations are not impacted by where the GTCR subsidiary funds are located.”
The Sun-Times compared investments Rauner listed on a state economic disclosure form he filed with the online corporate registry maintained by the Cayman Islands government.
Their research found that three of Rauner’s Cayman Islands investments are tied to his old firm: GTCR Golder Rauner II AIV Ironshore LP, GTCR Partners IX AIV Ironshore LP, and GTCR Partners X/A&C AIV LP.
A fourth Cayman Islands-linked investment was The Overlook Partners Fund LP, from which Rauner disclosed receiving a capital gain of at least $5,000 in 2012 on his state economic-interest statement. The Overlook Partners Fund is a non-GTCR-related investment fund for which Rauner’s personal funds were used, his campaign said.