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New AIC chief views CFIUS, tax reform implementation as top policy priorities

  • Drew Maloney comes to AIC from Treasury
  • Congress weighs changes that could affect oversight of foreign, non-control investments
  • Maloney also plans to boost AIC’s membership

Incoming American Investment Council President and CEO Drew Maloney expects the early days of his tenure to be marked by proposed changes to the Committee on Foreign Investment in the U.S. and the implementation of tax reform.

Maloney most recently served as assistant secretary for legislative affairs at the Department of the Treasury. The AIC board, chaired by New Mountain Capital Founder Steven Klinsky, approved Maloney’s hiring June 20.

Politico earlier this month reported Maloney would leave his position in President Donald Trump’s administration for the council.

The AIC is the primary lobbying organization for the U.S. private equity industry and counts Blackstone Group, Carlyle Group and KKR among its members.

Lawmakers are weighing granting more power to CFIUS, which includes nine cabinet members, two ex-officio members and other presidential appointees, to review non-control investments made by foreign entities.

The Senate passed a version of a CFIUS reform as part of a $716 billion defense bill earlier this week.

Buyouts previously reported the AIC was lobbying policymakers about CFIUS. Maloney declined to say whether the proposed changes to CFIUS would create new or significant burdens for PE firms.

“AIC will be very engaged in that process to help make sure that we don’t unduly restrict investment in U.S. companies.” he said. “I haven’t been working on it from an AIC perspective, so I don’t want to get ahead of myself there,” he added.

Maloney’s experience at the Treasury Department, where he helped guide the Republican tax bill through Congress, will likely be useful as the AIC lobbies regulators around the implementation of new rules.

He also worked on a deregulation bill that rolled back several of the reforms instituted by the Dodd-Frank act in 2010.

“In the near term, you have tax-reform implementation, that’s going to be taking place over the next year or so,” he said. He added that he expects to work closely with the House Ways and Means and Senate Finance committees

Maloney will start at the AIC in August. He succeeds Mike Sommers, who in May left to lead the American Petroleum Institute.

Prior to joining the Trump administration, Maloney led government affairs and public policy initiatives for Hess Corp, an oil-and-gas company, and was a legislative director for former Republican Majority Leader Tom DeLay. He was CEO of the lobbying firm Ogilvy Government Relations from 2002 until 2012.

“Drew’s guidance and counsel were invaluable as we worked to pass the Tax Cuts and Jobs Act, the most comprehensive tax reform legislation in over three decades,” Treasury Secretary Steven Mnuchin said in a statement.

“He skillfully helped Treasury leadership pursue many other critical legislative priorities, including financial regulatory reform issues and CFIUS reform legislation. He was a great asset to the Department, and we wish him well.”

The AIC also released statements from House Majority Leader Kevin McCarthy (R-California) and Senate Finance Committee Member Mark Warner (D-Virginia) expressing their well-wishes.

In addition to establishing policy priorities, Maloney also plans to direct significant resources toward boosting the AIC’s membership and solidifying its relationships with lawmakers and the White House.

“The first goal is to grow the organization. Then, I think, secondly, I think our goal is to expand and reinforce relationships with key policymakers in Capitol Hill and within the administration,” he said. “Third, it’s to increase our narrative and think about it in as creative ways as we can.”

Action Item: For more on the American Investment Council, visit  www.investmentcouncil.org