As a newcomer to politics, Gomez is relying on the industry he is most connected to – finance – to bankroll his U.S. Senate campaign. Many of Gomez's early donors have been those with whom he has personal ties – from Harvard Business School or from his work in private equity and investment banking.
BOSTON - As a newcomer to politics, Republican Gabriel Gomez is relying on the industry he is most connected to – finance – to bankroll his campaign for U.S. Senate.
Many of Gomez's early donors have been those with whom he has personal ties - from Harvard Business School or from his work in private equity and investment banking.
As of April 10, Gomez had raised $534,400 in itemized individual donations and loaned himself $600,000, according to a fundraising report filed with the Federal Election Commission.
An analysis by The Republican and MassLive.com found about 240 donations, totaling more than $278,000, were made to the Gomez campaign by individuals working in finance. (It is difficult to pinpoint an exact figure, but this includes individuals who listed their occupations as private equity, investment banking, venture capital or other finance-related jobs, or who worked for financial services companies). Gomez’s donors listed workplaces including Morgan Stanley, Merrill Lynch, JP Morgan, Goldman Sachs, Fidelity Investments and a host of other financial and investment firms.
“He’s a hard worker, a smart guy, and he’s touched a lot of people in the financial industry,” said Drew Quartapella, managing partner at the North Carolina investment bank BlackArch Partners. Quartapella knows Gomez from Bowles Hollowell Conner, the North Carolina investment banking firm where both men started their careers after business school. “He’s been in the industry for a long time and has got a real good reputation.”
Gomez is facing U.S. Rep. Edward Markey, D-Malden, in a June 25 special election for the U.S. Senate left vacant by the appointment of John F. Kerry as U.S. secretary of state.
Related: Top names in sports, entertainment, business propel Ed Markey's fundraising
A number of donations to the Gomez campaign likely came from former colleagues of the candidate. More than $30,000 is identified as coming from employees at the private equity firm Advent International, where Gomez worked from 2004 until he left to pursue his Senate campaign. Gomez received approximately $20,000 from individuals at the private equity firm Summit Partners, where he worked for three years before moving to Advent.
Other donors also appear to have worked with Gomez in the past. Gomez got more than $12,000 from employees of Bain Capital, the investment company founded by 2012 Republican presidential nominee Mitt Romney. He got around $30,000 from employees of the Boston-based investment firm Berkshire Partners. Bain Capital managing director Stephen Zide and Berkshire Partners managing partner Michael Ascione were also major donors to a super political action committee supporting Gomez.
Gomez and Ascione served together on the board of a radiation safety company, part of a joint investment between Summit Partners and Berkshire Partners, according to a 2005 press release. Gomez and Zide served together on the board of Keystone Automotive Operations when Gomez worked at Advent, according to a Securities and Exchange Commission filing.
Staples founder Tom Stemberg, a Romney supporter who is now a managing general partner the Highland Consumer Fund in Cambridge, gave Gomez $5,200. Stemberg met Gomez when Gomez was working at Advent and they co-invested in Lululemon Athletica.
“My friends at Advent who worked with him adore and respect him,” Stemberg said in an email. Stemberg’s son, who went to Harvard Business School and was a Navy officer, knows Gomez through those circles.
Of all of Gomez’s itemized donations, individuals from Massachusetts gave $336,255, or 63 percent. (Of all donations, including smaller, non-itemized ones, the Gomez campaign said 67 percent came from Massachusetts.) Several out-of-state donors said they knew Gomez from Harvard Business School, where Gomez graduated from in 1997, or from Bowles Hollowell.
Quartapella, who gave Gomez $1,000, said Bowles Hollowell has an alumni network from which Gomez has been able to draw support.
“There are several hundred of us all over the U.S. and the world. That’s a pretty strong network,” Quartapella said. “It’s a web of folks who as soon as we heard the news, a lot of us said, ‘Sign me up. How do we help?’”
Quartapella attended a fundraiser in New York that was organized by Gomez’s campaign, which, coincidentally, was the same night as a Bowles Hollowell alumni event. Some people attended both events, and a lot of the fundraiser attendees worked in finance, Quartapella said.
Michael Sweeny, a strategy manager at HighVista Strategies in Boston, which manages endowment funds, also worked with Gomez at Bowles Hollowell. Sweeny and his colleague Brian Chu, who attended Harvard Business School with Gomez, hosted a fundraising breakfast for Gomez that was attended by 15 to 20 people. “It was purely just people in our social network. Because we work in finance, a lot of our friends work in finance,” Sweeny said.
Sweeny said Gomez has a reputation in the financial world as someone who “people enjoy working with” and who is “very practical in terms of being able to get things done.”
Sweeny’s father-in-law, Bill Oates, chairman of Northeast Investment Management in Boston, spread the world about the Gomez fundraiser to members of his office. “(Gomez) surfaced through my son-in-law; then I started to watch him,” Oates said. Oates gave Gomez $4,000.
There is little question that these connections are valuable. Gomez received $10,300 from 10 donations by employees of William Blair and Co., a Chicago investment banking and asset management firm. “Most of us are business school friends,” said William Blair managing director Brett Paschke. “It’s an individual, personal relationship, not a firm relationship. We are all big fans of his.”
Ryan Drook, an ethanol manufacturer from Indiana who gave Gomez $2,600, also attended Harvard Business School with Gomez. Though Drook has no political stake in the Massachusetts race, he said he wanted to support his friend.
“What you see is what you get. He’s a very genuine guy,” Drook said. “He was committed to serving from the get go, and always had aspirations of giving back.”
Peter Ubertaccio, associate professor of political science at Stonehill College and director of the Martin Institute, said it is typical for a first-time candidate who has not been involved in politics to get support mostly from those he knows personally.
”For someone like Gomez, who happens to be in a career path that affords him the ability to meet people who can write checks, it doesn’t surprise me that would be where his early financial support comes from,” Ubertaccio said.
Several donors said they liked Gomez’s politics, as a fiscal conservative who is moderate on social issues, and Ubertaccio also said it's not unusual for people in finance to gravitate towards such candidates.
“Folks in that industry are more old style conservative, not radical change agents,” Ubertaccio said. “They probably see in Gomez a fellow traveler…a moderate in temperament, moderate in politics, center right type of conservative.”
To combat Markey, who raised $4.75 million before the primary, Gomez will need to broaden his donor base. His victory in the Republican primary is likely to open the door to additional donations from Republicans statewide and nationally. Over the next three weeks, Gomez plans to host over 30 fundraising events across the state, including major regional events in Newton, Central Massachusetts, the North Shore, the South Shore and Boston, the Gomez campaign said.
Arizona Sen. John McCain headlined a Gomez fundraiser this week, and McCain said he will urge the National Republican Senatorial Committee to spend money supporting Gomez.
Gomez, when asked about his large number of donors from the financial industry, said he has a “very broad donor base” of people from all political persuasions who live across the state. “I’m happy that we’ve got such a broad donor base,” Gomez said. “It comes from all the industries. It comes from financial, it comes from tech, it comes from health care, it comes from teachers, it comes from police officers, it comes from almost every demographic, every profession out there.”
Ubertaccio said the June 25 election does not allow Gomez time to travel around the country to conduct fundraising. But as the only congressional election in the country right now, Gomez will naturally be able to attract donors, particularly with support from people like McCain and former Massachusetts Gov. William Weld.
“He doesn’t have to match Markey dollar for dollar,” Ubertaccio said. “He needs to be able to get his message out in a sustained way.”