Key Takeaways
- • Private equity and venture capital executives have donated more than $1.6 million to the super PAC "Advance Progress," accounting for over 40% of its total receipts and supporting Rep. Seth Moulton against incumbent Sen. Ed Markey in Massachusetts' September 1 primary.
- • Top individual donors include Richard Wells (Insight Partners) at $400,000, David Peeler and Robert Small (Berkshire Partners) at $350,000 combined, and Joshua Bekenstein and Christopher Gordon (Bain Capital) at $175,000 combined, according to FEC filings.
- • The financial industry support directly correlates with Markey's advocacy to eliminate the carried interest loophole—a tax break allowing investment managers to classify portions of compensation as capital gains. Markey is an original co-sponsor of the Senate bill to close this provision.
- • Moulton publicly stated support for closing the carried interest loophole in his 2019 presidential campaign but has not cosponsored any standalone Carried Interest Fairness Acts during his decade-plus tenure in the House, including the current House bill.
- • The super PAC also received a $180,000 transfer from MA Progress Action, a 501(c)4 nonprofit run by Todd Kanter, a managing director at Silvercrest Asset Management and strategic advisor to hedge fund CKM Partners, which does not disclose its own donors.
Summary
Private equity and venture capital executives are substantially funding the super PAC backing Rep. Seth Moulton's primary challenge to Sen. Ed Markey in Massachusetts, with over 20 donors from these industries contributing more than $1.6 million to "Advance Progress" super PAC—representing more than 40% of its total receipts. FEC filings reveal concentrated giving from major investment firms, with Richard Wells of Insight Partners leading at $400,000 across two contributions, followed by David Peeler and Robert Small of Berkshire Partners at $350,000 combined, and Bain Capital partners Joshua Bekenstein and Christopher Gordon at $175,000 combined.
The financial sector's backing of Moulton stands in stark contrast to Markey's legislative record on carried interest taxation. As an original co-sponsor of the current Senate bill to close the carried interest loophole—a tax provision allowing investment managers to classify portions of their compensation as capital gains rather than ordinary income—Markey has positioned himself as a direct threat to the financial structure benefiting private equity and venture capital fund managers. This loophole has been a persistent target for tax reform advocates seeking to increase effective tax rates on investment professionals.
Moulton's position on the issue presents a strategic inconsistency. While he declared support for closing the carried interest loophole in his 2019 presidential campaign tax plan, his legislative record demonstrates no cosponsorship of standalone Carried Interest Fairness Acts during his House tenure—including the current House bill—despite multiple such bills being introduced during his service. This disconnect between campaign rhetoric and legislative action may explain why private equity executives view him as a more favorable alternative to Markey.
Beyond direct individual contributions, the super PAC received a $180,000 transfer in July from MA Progress Action, a 501(c)4 nonprofit entity that operates without donor disclosure requirements. MA Progress Action is managed by Todd Kanter, a managing director at Boston-based investment advisory Silvercrest Asset Management and strategic advisor to hedge fund CKM Partners. The group previously ran advertising attacking Markey and other senior members of Congress for what it characterized as "chronic reelection disorder."
The September 1 primary race reflects a broader tension within Democratic politics between tax policy ambitions and financial sector influence, with private equity executives placing substantial resources behind the candidate least likely to advance carried interest reform legislation.
The financial sector's backing of Moulton stands in stark contrast to Markey's legislative record on carried interest taxation. As an original co-sponsor of the current Senate bill to close the carried interest loophole—a tax provision allowing investment managers to classify portions of their compensation as capital gains rather than ordinary income—Markey has positioned himself as a direct threat to the financial structure benefiting private equity and venture capital fund managers. This loophole has been a persistent target for tax reform advocates seeking to increase effective tax rates on investment professionals.
Moulton's position on the issue presents a strategic inconsistency. While he declared support for closing the carried interest loophole in his 2019 presidential campaign tax plan, his legislative record demonstrates no cosponsorship of standalone Carried Interest Fairness Acts during his House tenure—including the current House bill—despite multiple such bills being introduced during his service. This disconnect between campaign rhetoric and legislative action may explain why private equity executives view him as a more favorable alternative to Markey.
Beyond direct individual contributions, the super PAC received a $180,000 transfer in July from MA Progress Action, a 501(c)4 nonprofit entity that operates without donor disclosure requirements. MA Progress Action is managed by Todd Kanter, a managing director at Boston-based investment advisory Silvercrest Asset Management and strategic advisor to hedge fund CKM Partners. The group previously ran advertising attacking Markey and other senior members of Congress for what it characterized as "chronic reelection disorder."
The September 1 primary race reflects a broader tension within Democratic politics between tax policy ambitions and financial sector influence, with private equity executives placing substantial resources behind the candidate least likely to advance carried interest reform legislation.
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