Although the former vice presidents son Hunter Biden announced he is stepping down from the board of a Chinese-backed private equity company, he could still have millions of dollars of value in the company, according to expert analysis.
Biden announced Oct. 13 he plans to step down from the board of directors of BHR (Shanghai) Equity Investment Fund Management Co. on or before Oct. 31.
Biden, who holds an unpaid position at the company, “committed to invest” $420,000 into the company in October 2017 to acquire a 10 percent equity position which hasnt yielded any dividends, said his attorney, George Mesires.
However, an analysis by FactCheck.org estimates the value of Bidens stake in the company is worth millions.
Steven Kaplan of the University of Chicago Booth School of Business told the outlet it is hard to believe Bidens share in the investment company holds a value of less than half a million dollars.
“It is difficult to imagine, if not incomprehensible, that a 10 percent stake in those economics is worth only $420,000,” said Kaplan.
“The distinction they appear to be making is they capitalized the management company with $4.2 million even if the fund manages $2 billion. The value of that management company is likely far in excess of $4.2 million if they are managing $2 billion.”
Kaplan told FactCheck.org that over the investment lifetime, Bidens stake in BHR Equity Investment Fund Management Co. could be worth up to “hundreds of millions of dollars.”
Bidens attorney, Mesires, added that if his father is elected president next year, Biden will “readily comply with any and all guidelines or standards a president Biden may issue to address purported conflicts of interest, or the appearance of such conflicts, including any restrictions related to overseas business interests.”
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