Arabella Advisors dismisses CEO due to financial and political setbacks.

The Dark Money Kingpin‍ Recently Laid Off 10 Percent of Its Staff

Arabella Advisors, the kingpin of ⁣a multibillion-dollar Democratic dark money machine, is in the market ‌for a new leader amid a series of financial and political ​setbacks.

The firm announced CEO Rick Cruz will depart ⁢on August 1 after less than​ two years on the ⁢job. In a letter to its fiscal sponsor partners, Arabella ⁢Advisors said its‌ board decided to axe Cruz with “decidedly ​mixed emotions” but praised the outgoing executive⁣ for playing a‍ “pivotal role in‍ guiding and shaping our ⁤organization, contributing significantly to ‍its ‍growth and success.”

The announcement comes less than two weeks⁣ after the Washington Free‍ Beacon published ⁢ internal Arabella documents‍ showing the group exerts‍ centralized control over a ‍network of five Democratic dark money funds that, ‍in turn, operate hundreds of ostensibly grassroots left-wing activist groups.⁢ Arabella publicly⁣ claims that⁤ it merely provides back-office administrative support to‌ its funds.

Though Arabella collects a robust‌ management fee from its funds, which ⁣hauled​ in a combined $3.3 billion in 2020 and 2021, recent events indicate the group faced dire financial⁢ straits under‌ Cruz’s ‍leadership. Arabella Advisors laid‍ off 10 percent of‌ its workforce—roughly 30 employees—in May, which they attributed to a ‍”souring economic climate,” according to Politico. A ​spokesman ⁢for Arabella Advisors said the firm was “adapting⁢ our operating model to meet the needs of our ⁤sector and our clients most efficiently and effectively.” Arabella Advisors did not say who will replace ​Cruz.

Arabella Advisors did not‍ respond ⁢to a Free Beacon ⁣ request for comment.

Cruz’s untimely departure ‌from Arabella should come⁢ as no surprise, said Capital Research⁣ Center president Scott Walter. Walter noted that Cruz got the top slot at Arabella after his predecessor ⁢admitted in a⁤ November 2021 interview that ‍the⁤ group takes inspiration from right-wing megadonors, who ⁢are often derided as threats to democracy by the left.

“He looked to be a placeholder,” Walter ‍told ‌the ​ Free Beacon. “A chief revenue officer made CEO when his predecessor abruptly‌ announced her departure, shortly after giving a disastrous interview to the Atlantic where she admitted Arabella is ‘the Left’s⁤ equivalent⁢ of the Koch brothers.’”

Arabella’s financial situation could deteriorate ⁤further if Republican lawmakers have⁤ their way. ⁢Rep. Bryan Steil (R., Wis.), the chairman of the House Administration Committee, introduced legislation⁣ in July that would bar‌ dark money ⁤groups—many of which are Arabella’s clients—from contributing to political committees if they accept ​foreign‌ donations.

The legislation, if passed, would have a devastating impact on Arabella’s bottom line. ‍Its⁣ funds have accepted over $265 million from nonprofit‌ groups bankrolled by Swiss billionaire ‍Hansjörg‌ Wyss, according to Americans for Public Trust,​ a ⁢government‌ watchdog ‍group. The Republican legislation would have prohibited Arabella’s primary political arm, the Sixteen Thirty Fund, from doling out $61 ‌million to Democratic Super PACs during the ‌2020 election cycle.

Unless that ‌legislation passes, Americans for Public Trust​ executive director ⁢Caitlin Sutherland⁤ predicted foreign donors such as Wyss will continue‍ to bankroll Arabella’s funds.

“The headlines​ haven’t‌ been too⁤ kind ⁣to the dark money behemoth Arabella Advisors this past year,” Sutherland told⁤ the Free⁢ Beacon. ​”Regardless of who ⁢has the title of CEO, we ⁤know ‍foreign billionaire Hansjörg Wyss⁢ will continue to ​fund⁣ the Arabella network to push‌ his progressive policies on Americans.”