The Clinton Foundation selected a New York investment firm with close ties to Chelsea Clinton to manage its endowment in 2014, reports The Wall Street Journal.
Nicole Fox, a longtime friend of Ms. Clinton's and the matron of honor at her wedding, is managing director of Summit Rock Advisors. Ms. Fox's husband, Michael Fox, is a former deputy chief operating officer at a hedge fund co-founded by Ms. Clinton’s husband, Marc Mezvinsky. Ms. Fox and Nancy Donohue, Summit Rock’s co-founder, donated the maximum of $2,700 to Democratic presidential nominee Hillary Clinton’s primary campaign.
Summit Rock manages about $10.7 billion in 100 accounts, according to Securities and Exchange Commission filings. The Clinton Foundation has raised about $250 million for an endowment launched to help preserve its programs in the event that Bill and Hillary Clinton can no longer raise money for the charity.
A foundation spokesman said Summit Rock was hired because it is “one of the most respected firms” in nonprofit financial management and that Chelsea Clinton did not take part in the selection process once the firm became a finalist for the job. Philanthropy experts said the practice of nonprofits contracting with businesses that have ties to the founders’ family is legal and common but can create an appearance that such decisions are made as favors to friends.