Insight into Arabella Advisors’ Control Over Left-Wing Advocacy Network

The Student Experience Research Network: Unveiling the Inner Workings of a Dark-Money Network

The Student Experience Research Network (SERN) may seem like an innocent organization, but its true agenda goes far beyond its stated mission. SERN claims to focus on building an education system that respects and values every student, but in reality, it funds research to promote diversity, equity, and inclusion (DEI) practices in education. It also partners with left-wing organizations to advocate for inclusive mathematics environments and the abandonment of standardized tests in universities.

Recently, SERN celebrated a victory when the University of California system announced its decision to eliminate the SAT from its admissions process. However, what many people don’t realize is that SERN and numerous other left-wing activist groups are controlled by Arabella Advisors, a for-profit consultancy with deep ties to Democratic causes and funding from billionaires like George Soros and Pierre Omidyar.

Arabella Advisors has established five tax-exempt nonprofit groups, including SERN, which pay Arabella a significant fee for back-office work. This arrangement allows Arabella to operate a vast network of left-wing advocacy groups while maintaining the illusion of grassroots political activism. The average citizen is unaware of the puppet strings being pulled behind the scenes.

A Centralized Control: Arabella’s Grip on Activist Groups

Internal documents obtained by the Washington Free Beacon shed light on the inner workings of Arabella’s dark-money network. These documents reveal the extent of centralized control exerted by Arabella over a wide range of activist organizations. Arabella’s ownership structure remains unclear, as it is owned by a Delaware business called Arabella Acquisition, LLC, which does not disclose its ownership.

When Arabella’s offshoot, the New Venture Fund (NVF), applied for tax-exempt status, the IRS raised concerns about its close ties to Arabella and the potential for illegal profits. However, the IRS ultimately granted NVF nonprofit status, believing that the arrangement with Arabella would be temporary. Yet, nearly two decades later, the arrangement continues, raising questions about the true nature of this relationship.

Arabella’s funds serve as fiscal sponsors for pop-up groups, short-lived organizations that rally support for specific political objectives. These groups operate as nonprofit entities without disclosing their board members or the sources of their revenue. Arabella’s more prominent pop-up groups, such as Demand Justice, have even broken away from the network to establish themselves as independent nonprofits.

The Hidden Control: Arabella’s Influence on New Venture Fund

Arabella’s influence over NVF and its pop-up groups is evident in the employee handbook obtained by the Free Beacon. The handbook reveals that Arabella controls NVF through a team of Arabella employees who provide staffing and management services. NVF employees are effectively contractors, hidden from IRS disclosure forms and not listed as staff members of NVF or its pop-up groups.

These pop-up groups, including SERN, do not operate within typical nonprofit parameters outlined by federal law. Instead, they function as departments of NVF, with their employees being on NVF’s payroll. This means that SERN, for example, does not have its own employees but relies on NVF employees disguised as SERN staff. The same applies to other pop-up groups under NVF’s umbrella.

Arabella’s centralized control allows for the coordination of initiatives between donors and provides access to philanthropic strategy development and support services. The network’s funds pass significant amounts of money between themselves, with a combined total of $189 million in just two years. Arabella’s funds amassed a staggering $3.3 billion in 2020 and 2021, with the Sixteen Thirty Fund alone contributing $61 million to Democratic Super PACs during the 2020 election cycle.

Despite filing for nonprofit status over a decade ago, Arabella still maintains control over NVF and its funds. The management fee for some funds has even increased to 15 percent. In 2021, NVF ended the year with assets exceeding $1.2 billion and funneled nearly $30 million in service fees to Arabella. The Sixteen Thirty Fund, with over $97 million in the bank, paid Arabella more than $5 million in the same year.

The extent of Arabella’s control over the left-wing activist landscape is astounding. Its centralized management and financial maneuvering allow it to shape the narrative and push its agenda through a vast network of organizations. The true nature of this dark-money network raises concerns about transparency and the influence of wealthy elites on grassroots activism.

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