Secret Network Connects Harvard Money to Payday Loans
A Bloomberg investigation has uncovered a secret financing network which connects investors including Harvard University to payday lenders. At the center of the network is Vector Capital IV, a San Francisco private-equity fund run by Alex Slusky. Slusky's fund consisted of $1.2 billion in funds raised from investors including Harvard University, who were told the fund would buy and turn around struggling software companies. But Slusky struggled to find enough companies to buy. When Harvard, fed up with delays, tried to pull out, Slusky invested the funds in Cane Bay Partners, owners of a network of payday-lending websites which uses overseas charters in Belize and the Virgin Islands to obscure ownership and circumvent U.S. usury laws.