Billionaire David Rubenstein’s daughter quits Alaska wealth fund over cronyism claims
The daughter of private equity billionaire David Rubenstein has resigned from the board of Alaska’s $80 billion sovereign wealth funds after she was accused of using her position to benefit friends and families.
Gabrielle (Ellie) Rubenstein, 36, who runs the Colorado-based investment firm Manna Tree, announced during a board meeting of the Alaska Permanent Fund Corporation that she would be stepping down effective Aug. 1.
“The scope and pace of change necessary to fully institutionalize the fund are not compatible with the demands of leading my private equity firm,” she said Wednesday.
Her departure comes after a Financial Times reported earlier this year that managers at the APFC suspected her of attempting to steer state assets to friends and family members.
David Rubenstein, the co-founder of the Carlyle Group investment firm who recently purchased the Baltimore Orioles baseball team, manages around $800 million of the almost $80 billion in holdings controlled by APFC.
The fund manages assets accumulated from Alaska’s vast oil resources. It also provides most of the state’s funding for police, schools and roads.
A seat on the APFC’s six-member board carries with it significant influence into how the money is spent.
Chris Ullman, a spokesperson for both Rubensteins, told The Post that Ellie Rubenstein was appointed to the board with the understanding that she would set up meetings with individuals from the world of private equity who would recommend investment avenues for the fund.
During her tenure, she made nearly 20 referrals to fund staffers, though she denied setting up meetings involving her father.
According to local news site Alaska Landmine, Ellie Rubenstein used her position to attempt to arrange meetings between the fund’s chief investment officer and the head of Churchill Asset Management, which also happens to be an investor in Manna Tree.
Ken Kencel, president and CEO of Churchill Asset Management, previously served as a managing director for Carlyle Group.
“I promised you I’d make something happen! Btw all good on APFC? Steve said he sent you to Ross,” Ellie Rubenstein wrote in an email to Kencel on Oct. 3.
“But I can connect you to our cio Marcus [Frampton] if you need? He is gonna be in Miami in January with me for a week if that helps?”
Ellie Rubenstein denied to Alaska Landmine that she set up meetings between APFC staff and her father or anyone connected to other firms.
“I have made introductions but I follow the rules. I have nothing to do with investment decisions,” she said.
Ullman told The Post that none of Ellie Rubenstein’s referrals resulted in the fund investing with her contacts.
The Post has sought comment from APFC.
Leaked internal emails also showed that Ellie Rubenstein sought to have an employee at the fund fired because her father was “unimpressed” by her, according to FT.
She was also accused of trying to steer APFC funds toward investments that were deemed by some to be riskier and more unstable.
Ellie Rubenstein was appointed to the board by Alaska Gov. Mike Dunleavy in 2022.
A spokesperson for the governor told FT that Rubenstein “brought invaluable fresh perspectives and energy to the Alaska Permanent Fund, setting it up for continued success for all Alaskans.”
