Sumary of Companies backed by private-equity firms got $5 billion in Covid relief:
- PPP loans were aimed at companies that didn’t have access to other funding, such as money potentially available in stock or bond markets or from well-heeled backers.
- Ramaco appeared to have both: Its shares are publicly traded on Nasdaq and it has backing from two prosperous private-equity firms, Yorktown Partners of New York City and Energy Capital Partners of Summit, N.
- Together, the firms hold 57 percent of Ramaco’s stock, its most recent proxy filing shows.
- During spring 2020, the federal government moved quickly to provide financial aid to individuals and businesses hammered by Covid-related shutdowns.
- Targeted business recipients included hard-hit airlines, health-care providers, hospitality concerns and Mom-and-Pop companies with no other access to funding.
- But a comprehensive new report on CARES Act funding estimates that companies like Ramaco, backed by wealthy investment firms in the private-equity industry, received at least $5 billion.
- At the time these companies received the government funding, their large private-equity owners, a group of more than 100 firms that includes Energy Capital Partners, Apollo Global Management and Ares Management Corp.
- March 30, 202101:29Some private-equity-backed companies that took federal CARES Act funding are now yielding significant profits for their investors.