Want to make half a million dollars without actually doing any work? Ring up the folks at Columbus Nova, and tell them you want the Michael Cohen special.
Bottom line: Some very smart money did something very foolish.
Columbus Nova is an 18 year-old, New York-based private equity firm that also dabbles in venture capital via a Silicon Valley affiliate. Its more notable deals have included buying a piece of Gawker in the midst of the Hulk Hogan lawsuit.
The firm this week acknowledged hiring Cohen "as a business consultant regarding potential sources of capital and potential investments in real estate and other ventures." And, apparently, he ultimately delivered exactly zero potential sources of capital or potential investments in real estate and other ventures.
Columbus Nova's statement says that Veklesberg wasn't "involved in the decision to hire Cohen or provide funding for his engagement."
Taking the former at face value, the latter is little more than PR jujitsu.
Vekselberg is the firm's primary investor, which means he's its primary source of the fees that would be used to do things like hire Cohen. Sure it might be structured via a separate LLC. Maybe even one technically funded by general partner capital (i.e., by the U.S. investment team), but that money was indirectly created via Veklesberg's investment.