Along the way, Singer gained a reputation, according to Fortune, “for strong-arming his way to profit.” That is certainly what happened at Delphi.ĭelphi, once the Delco unit of General Motors, was spun off into a separate company in 1999. Other GOP presidential hopefuls chased Singer’s endorsement, but Mitt chased Singer with his own checkbook, investing at least $1 million with Elliott through Ann Romney’s blind trust (it could be far more, but the Romneys have declined to disclose exactly how much). In the process, he’s built one of the largest private equity firms in the nation, and over decades he’s racked up an unusually high average return on investments of 14 percent. This so-called “vulture investor” received $58 million on Peruvian debt that he snapped up for $11.4 million, and $90 million on Congolese debt that he bought for a mere $20 million. Singer, whom Fortune magazine calls a “passionate defender of the 1%,” has carved out a specialty investing in distressed firms and distressed nations, which he does by buying up their debt for pennies on the dollar and then demanding payment in full. And Singer is influential with the GOP presidential candidate he’s not only an informal adviser but, according to the Journal, his support was critical in helping push Representative Paul Ryan onto the ticket. His personal giving is matched by that of his colleagues at Elliott collectively, they have donated $3.4 million to help elect Republicans this season, while giving only $1,650 to Democrats. According to The Wall Street Journal, Singer has given more to support GOP candidates-$2.3 million-than anyone else on Wall Street this election season. One of the hedge funds profiting from that bailout- $1.28 billion so far-is Elliott Management, directed by Paul Singer. So, in addition to making massive loans to automakers in 2009, the federal government sent, directly or indirectly, more than $12.9 billion to Delphi-and to the hedge funds that had gained control over it. No bailout of GM-or Chrysler, for that matter-could have been successful without saving Delphi. It all starts with Delphi Automotive, a former General Motors subsidiary whose auto parts remain essential to GM’s production lines.
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