[6] People may receive compensation for some links to products and services on this website. Cascade's sole. Michael Larson, 61, the man in charge at Gates's money-management firm, Cascade Investment, is reported to have judged women on their attractiveness and made sexually and racially. Mission: Providing a framework to improve your investing PROCESS, while collecting newsworthy information about trends in business, politics and tech areas. [1] Early life and education Larson was born in Sacramento, California in October 1959. Bill and Melinda Gates announced on May 3 that they are splitting after 27 years of marriage. Mohamed said its of little surprise that Larson has remained in his role after the allegations, given his decades-long tenure with Gates and the loyalty it has likely engendered. So he came out, and the two men hit it off. He then earned an MBA from the University of Chicago at the age of 21. Ecolab.com uses cookies to give you the best possible experience. Their combined wealth stands at more than $140 billion, according to the Bloomberg Billionaires Index. www.vbprofiles.com is now www.topionetworks.com. I thought it was the old FBI trick, chuckles Larson, you know, ask for 13 and randomly pick three. But it often instead involves simply keeping wealth steady. Source: getty. Noits Bill Gates, and could he [headhunter named Bert Early] please have the names of 13 references. ][citation needed] This number includes the Bill & Melinda Gates Foundation and Gates's personal wealth. Larson convinced St. Dennis to come out of retirement in order to act as an advisor to Larson. Larson reportedly showed nude photographs of women to members of Cascade Investments staff (there are about 100 people working for him who have been asked to sign non-disclosure agreements as a term of their employment). He assumed the role in 1994. Thank you for your continued support. Larson reportedly directs Cascade's investments through Bill and Melinda Gates Investments, a firm that also manages the portfolios of the Bill and Melinda Gates Foundation and other connected entities. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. After submitting your request, you will receive an activation email to the requested email address. Stay up to date with what you want to know. Found email list ings include: @cascademgt.com. He is the chief investment officer for the Bill & Melinda Gates Foundation, and Bill Gates' personal fortune through Cascade Investment. Hes a long-term, buy-and-hold investor. He told the guests who were asked to wear platinum or pink, Larson's favorite color that Larson had his "complete trust and faith," sources told the newspaper. Resume. jane.doe@cascadeinvestors.com), which is being used by 100.0% of Cascade Investment work email addresses. Cascade does not publicly disclose its performance results but it has been reported that because of Larsons relatively conservative strategy, Cascades losses in the 2008 financial crisis were smaller than the industry average for the full year. And second, we just had an inflow of a couple of billion dollars.. and other data for a number of reasons, such as keeping FT Sites reliable and secure, Michael Larson, manager of Gates' $170 billion who was supposed to keep Bill-Melinda divorce forces $50 billion Gates Foundation to weigh changes, Microsoft names Satya Nadella chairman, rewards him for turning around tech giant, How medieval Kashmir became centre of the world Vaishnavism, Puranas, and war, Baker who framed Sadak 2 actor on drug charges in Sharjah was told off by her mother, wanted revenge, Laws expire at UP border: In the MP/MLA courts of the ganglands, cases come to crawl. He assumed the role in 1994. Larson was a student of Professor Jerry St. Dennis while at Claremont McKenna College. So whats in the portfolios? ("Cascade"), of which I am the General Counsel. At the time, the portfolios both for the foundation and for the Gateses personal money mostly consisted of bonds, with some bets on private equity, commodities, Florida real estate and British hotels. First, it reflects my view of the markets. Cascade held investments in oil and gas companies until 2019, Gates said in his recent book about climate change. Michael Larson is an American money manager. ", https://en.wikipedia.org/w/index.php?title=Michael_Larson_(businessman)&oldid=1147949433, This page was last edited on 3 April 2023, at 05:49. Additionally, claims have come forth of sexist and racist comments that Larson made. Learn more about Michael Larson, Investment Advisor, Cascade Investment Group including contact information, career history, news and intelligence. since 1994. Representatives for Larson and Cascade Investments did not immediately respond to Insider's request for comment. OEM diesel and natural gas engine manufacturer. Michael Larson runs a tight ship with his employees as well. Mr. Bill Gates decided to hire Michael Larson after the Journal reported in 1993 that the entrepreneurs money manager at the time had previously been convicted of bank fraud. Access your favorite topics in a personalized feed while you're on the go. Director of Ecolab since 2012. If you do not wish to receive our cookies, adjust your browser settings. I think he had just fired some people, and I thought he would be difficult to work for. Of course, a hefty sum has been spent on the divorce and a large portion of wealth gets sent to the philanthropic Bill & Melinda Gates Foundation. He grew up in North Dakota and Albuquerque, New Mexico, and received an MBA from the University of Chicago, Fortune reported in 1999. Preston Gates & Ellis LLP Alumni Founded Companies, Private Greater Seattle Area Companies (Top 10K), Total number of current Advisors and Board roles the person has, Algorithmic rank assigned to the top 100,000 most active People, The organization associated to the person's primary job, Where the person is located (e.g. Please speak to a licensed financial professional, One Familys Finances: How Bill Gates Invests His Money, How Bill Gates Hired His Investment Advisor, Who manages Bill Gates $82 bn? He is the chief investment officer for Bill and Melinda Gates Investments (BMGI), and as such is in charge of managing Bills personal wealth through Cascade Investment, as well as handling the Bill & Melinda Gates Foundation Trust endowment. Other directorships held during the past five years Director of AutoNation, Inc., Republic Services, Inc., Grupo Televisa, S.A.B. To this end they are increasingly sharing their experiences with other families via specialist peer networks, events and publications, and with their advisers, says Tillotson. Unflattering details spilled out, including a report that Larson had allegedly harassed and bullied some employees. When she informed Larson that she had voted, Larson said in response: "But you live in the ghetto, and everybody knows that Black people don't vote," three sources described to The Times. and Fomento Mexicano Economico, S.A.B. He is the chief investment officer for the Bill & Melinda Gates Foundation, and Bill Gates' personal fortune through Cascade Investment. Across the world, Tillotson believes there are about 79,000 very rich individuals (those with personal wealth greater than $50m) who control roughly $19tn in assets. About 5% of Gates portfolio is farmed out to managers like McNamees Integral Capital Partners and Blue Ridge Capital, a New York hedge fund run by John Griffin, former right-hand man of Julian Robertson at Tiger Management. Bill Gates money manager: What to know about Michael Larson, Bennett inks new deal with Schaumburg Boomers, Bill Gates Says He's Fighting Climate Change. The price some of these guys are willing to pay to stay out of the news is high, said Tayyab Mohamed, co-founder of family office recruiting firm Agreus Group. But I had to meet him.. The Wall Street Journal profiled Larson in 2014, summarizing his job as to "make Bill Gates richer.". Michael Larson (born October 1959) is an American money manager. Second, there are more family offices as a result of the increase in wealth globally and greater information is available about best practice and resources. Cascade has holdings in property and non-technology companies. Micheal Larson is the money manager at a firm called Cascade Investments, a company whose only job is to manage the wealth of Gates and French Gates (Cascade is also referred to as Bill and Melinda Gates Investments, of BMGI). Vice Chair of the Finance Committee and member of the Safety, Health and Environment Committee. Thats where the real money is made.. A spokesperson for the Gates Foundation told Insider in a statement: "BMGI is a professionally run organization with oversight and governance, including regularly occurring HR reviews that have taken place for over 20 years. Copyright 2023 Market Realist. The company delivers comprehensive science-based solutions, data-driven insights and world-class service to advance food safety, maintain clean and safe environments, and optimize water and energy use. Larson farms out some 15% of the overall portfolio to bond managers at Morgan Grenfell, PIMCO, Miller Anderson & Sherrerd, and Western Asset Management. Since 1995, Michael Larson has delivered a compound annual return of 11% for the Gates Foundation and two predecessors, outperforming the S&P 500 stock index by more than one percentage point. Cascade is not a family office in the traditional sense and does not like to call itself one. A former bond-fund manager, he won Gatess loyalty by delivering consistent returns and instilling in employees the notion that their primary focus was to protect their benefactors good name, according to people familiar with Cascade, who asked not to be named speaking about the companys inner workings. This helps family offices professionalise earlier than they would have before. However, not much is known about the money managers secretive style, or even the investments that Cascade Investment LLC holds. In February of that year, Gates held a celebration at his mansion near Seattle in honor of Larson, who at that point had been working for Gates for 20 years. He was accused by multiple former employees of creating "a culture of fear" at the Gates family office,. French Gates hired a law firm to investigate the woman's claims and the culture at Cascade, and Larson was placed on leave. All Rights Reserved. Michael Larson has served as Bill Gates' money manager for decades. We use The claims that Larson made racist and sexist comments have come from former employees of his, reported The New York Times and Business Insider. Biography Chief investment officer to William H. Gates III. He means real assets, like commodities (hes been in and out of crude oil futures) and real estate, such as investments in the Reserve, a real estate and golf course development near Palm Springs, and in the Cliveden hotels in England. Gates $5 billion personal portfolio is another matter. Michael Larson is an American money manager who is the chief investment officer for the The Gates Foundation. Many of them are business-owning families or those so-called financial families, who have sold operating businesses. Bill Gates' money manager Michael Larson is accused of making racist and sexist comments. He also has served on several other public company boards providing him relevant corporate governance experience. He started digital-image company Corbis Corp. in 1989. Based in Kirkland, Wash., and run by Michael Larson, a former. 5 free lookups per month. Michael Larson leads the Investment office and manages assets for Bill Gates and the Bill and Melinda Gates Foundation Trust Board of Directors Republic Services Jan 2009 - Present14 years 4. Mr. Larson has been chief investment officer for Mr. Gates and the Business Manager of Cascade Investment, L.L.C. Buffett is one of the Gates Foundations three board members alongside Gates and French Gates, but has no involvement in investment decisions of the endowment, according to the foundation. Gates' assets and Larson's investment strategy have largely been kept under wraps, but sources told The Journal that Cascade had produced consistent gains for Gates, with a compound annual return of 11% from 1995 to 2014. Intelligent Assistance and Bots Ecosystem. Younger family members tend to, at a higher rate than before, focus on pursuing philanthropy earlier and on integrating philanthropy into a familys investment activities, he says. Even a small fraction of a percentage would be enough to make Larson a rich man. [1], He graduated from high school in two years and was recruited to West Point, the Coast Guard Academy, and the Merchant Marine Academy. The other reason we do equities is because we have some expertise in certain areas, and we make money at it.. It was long the biggest owner of Signature Aviation Plc, the worlds largest operator of private-jet bases, before joining a consortium that took the company private this year. The moniker closely resembles Cascade Investment, which historically has been the part of BMGI that manages the Gateses personal wealth. According to the Wall Street Journal, Michael Larson has all sorts of tricks for keeping Cascades and Bill Gates name from appearing on other investments. A spokesman declined to comment to The Times. His response: My investment group chose to do this.. As for the actual content of Gates $5 billion portfolio (drum roll, please), it turns out to be not that exciting. He was trying to buy a money-management firm in Chicago when the call from Bill Gates headhunter came. So far, Gates seems to be backing Larson, toothough the same cannot be said for French Gates, who sticks with the fact she was unaware of the claims against Larson and would not approve of them. Evans was involved in bank fraud and even served a stint in jail, where Gates visited him. Like Cascade, many single family investment firms are moving away from the term family office. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates' personal wealth and that of his charitable foundation. When people find out that Cascade has made an investment in something, thats not Bill Gates, he said in the Fortune interview. Copyright 2022 Printline Media Pvt. The high-profile couple announced earlier this month that they would separate after 27 years of marriage. In addition, Mr. Larson serves as director to a number of closed end funds and mutual funds within the Western Asset Management fund complex. Michael Larson, manager of Gates' $170 billion who was supposed to keep them out of the news Bill and Melinda Gates' divorce announcement cracked the curated image. In 1996, he later hired Alan Heuberger, a fellow graduate of Claremont McKenna College. Europe, Menlo Park, China), Where the person is located (e.g. First, there is the question of how much Microsoft stock Gates should own. It declined to comment on its investment strategies but it is known to invest globally and across many asset classes. The New York Times also reported that Michael Larson, Cascade's top executive and the person in charge of Gates' fortune, faced a sexual harassment complaint of his own in 2017. Right now his portfolio actually looks somewhat like a big old bond fund. In fact, a recent snapshot of Gates personal portfolio looks like this: Larson has 70%, or $3.5 billion, invested in short-term governments and corporates, with a small weighting in foreign bonds. Bill Gates hired Larson 22 years ago to take over the investment of his personal wealth, which was about $5bn at the time. Larson is the center of numerous claims, ranging from sexism to racism. Stay up to date with what you want to know. He is responsible for Mr. Gates non-Microsoft investments as well as the investment assets of the Bill & Melinda Gates Foundation Trust. The Times published a bombshell report Wednesday detailingLarson's alleged inappropriate workplace behavior at Cascade Investment, which manages Bill Gates' and Melinda French Gates' fortune. Though it may have a smattering of stocks at any given time, it too is almost entirely in bondsabout 75% short-term U.S. governments and corporates. In 1994, Larson and his wife moved to Seattle. According to Fortune, hes always been interested in science and likes to read up on the topic as well as investing in cutting-edge biotech companies. 2011-2023 VALUEWALK LLC. ALL RIGHTS RESERVED. Gates money manager had to be smart, trustworthy and as clean as a whistle. since 1994. He was also accepted at the University of Washington and Claremont McKenna College. [2] It is controlled by Bill Gates, and managed by Michael Larson. The two foundations merged to form the Bill & Melinda Gates Foundation during 2000. Michael Larson Partner at Cascade Investment Location: Duluth, Minnesota Area Biography Chief Investment Officer to William H. Gates III. The divorce and recent revelations about Cascades workplace culture, reported by the New York Times, raise questions about whats next for Larson and the fortune he oversees. Larson called the investment shop Cascade Investment because the generic name would allow him to operate in the market without drawing attention. Of the 15 stocks listed in the foundation trusts most recent filing, which discloses positions traded on U.S. exchanges, 10 of them were in the portfolio a decade ago. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. The firm also has been involved in currency and commodities trading, venture capital and the development of a property complex in downtown Tampa. Ltd. All rights reserved. Mr. Larson has been chief investment officer for Mr. Gates and the Business Manager of Cascade Investment, L.L.C. At the center of both the Gates fortune and the Gates Foundation endowment is a little-known entity called Cascade Investment. Some current and former employees say he can be brusque and controlling, even deciding the seating chart for the investment firms annual holiday party. She also runs Pivotal Ventures, an investment and incubation firm founded in 2015 that focuses on gender and racial equality and employs roughly 90 people. Formerly a director of Pan American Silver Corp. It's unclear what percentage Larson gets out of managing a fortune worth more than $100 billion. EDIT CAREER. Larson originally managed $11.5 billion of the Gates fortune and foundation but that has swelled tremendously over the years as Gates sells his Microsoft stock. The arrangement is simple: Mr. Larson makes money, and Mr. Gates gives it away. Wall Street Journal. (which is wholly owned by Mr. Gates) and the Bill & Melinda Gates Foundation Trust own in the aggregate approximately 15% of Republic Services, Inc.'s common stock. A significant stake in the Four Seasons luxury-hotel chain. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. Gates has spent much of his wealth on his charitable foundation, as well as on his $125 million estate in Washington, a luxury-car collection, and a private plane. Michael Larson also manages the funds for the Bill Gates Foundation. FIND MICHAEL LARSON Created on May 09, 2013 by Spoke Edited on May 09, 2013 by Spoke PAGE COMPLETION. Qualifications With more than 40 years of portfolio management experience, Mr. Larson has deep investment expertise and broad understanding of the capital markets, business cycles and capital efficiency and allocation practices. Cascades assets have periodically been boosted by proceeds from the sales of Gatess Microsoft stock. It has also invested in Diageo, the distiller, and JJB Sports, the retailer. French Gates, whose name was added to BMGI in 2014, has been in focus after Cascade transferred equity stakes worth more than $3 billion to her, leading some in the industry to speculate shes in the process of claiming an even larger control of her share of the riches. The Times report also described sources as saying Gates had pursued female employees and been dismissive of French Gates in work meetings at Microsoft. The head hunter had heard of Larson from a few investors in Tacoma, Washington. In a March Ask me anything event on Reddit, a user asked about his purchases of farmland. Being the investment chief for one of the worlds biggest family fortunes might seem like an enviable job for an investor mulling creative bets. Based in Kirkland, Washington, Cascade shies away from media attention. Smaller investments include stakes in nuclear-reactor developer TerraPower LLC and meat-substitute maker Beyond Meat. 10%. Employees are made to sign confidentiality agreements, which cover them even after they leave. We encourage you to review our Privacy Policy. You must click the activation link in order to complete your subscription. Ecolab respects your privacy and security, so weve updated our Privacy Policy to comply with the EU General Data Protection Regulation (GDPR) effective May 25, 2018. What about the other 30%, or $1.5 billion? That has shifted. He is Chairman of the Board of Directors at Western Asset and has been a member of the Board of Directors at Teledesic, Pan American Silver, Ecolab, Hamilton Lane, FoodTrader.com, Republic Services and AutoNation. The foundations most recent tax returns also shows $804 million of corporate bonds and $5.8 billion of other investments like mortgage-backed securities, bank loans and sovereign debt. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. Since we are obviously heavily weighted with Microsoft, we will sell stock periodically in order to get more diversity. It holds around a 4 per cent stake in Warren Buffetts Berkshire Hathaway investment group, owns 47 per cent of the Four Seasons hotel company and about 6 per cent of Bunzl, the distribution and outsourcing group. The remaining $500 million is in stocks. After two years, he struck out on his own. Larson has and continues to operate under the radar with the exception of a rare interview with Fortune in 1999. [10] In 2022, the company sold $940 million worth of stocks, whittling Gates' stake down to 1.4 percent.[9]. Mr. Larson has been Chief Investment Officer for Mr. Gates and the Business Manager of Cascade Investment L.L.C., since 1994. Third, Woodson adds, the generational shift in control of family wealth has changed what family offices focus on and how they are structured. Since 1995, Larson has delivered a compound annual return of around 11 per cent. However, the severity of these claims and the consideration that many may not have come forward are food for thought. Michael Larson works at Cascade Asset Management, which is a Custom Software & IT Services company with an estimated 90 employees. A New York Times report on Sunday said Larson had been accused of sexual harassment in 2017. Cascade Investment, L.L.C. The Times reported that a lawyer sent the Gateses a letter alleging that Larson had been sexually harassing a woman who managed a bike shop. Larson is the chief investment officer for the Bill & Melinda Gates Foundation. [3] Cascade is a diversified investment shop, although there is an emphasis on real estate private equity managed by the subsidiary, Los Arboles Management. Bill Woodson, north America head of the family office group at Citi Private Bank, says: While family offices take different forms, the challenges they face are very similar and, as a result, the ultimate solutions they adopt as they evolve tend to be similar, although addressed with varying levels of focus, staffing and professionalism.. Michael Larson is one of the most powerful men in US wealth management you have never heard of. Michael Larson is Bill Gates private money managerand runs Gates personal investment company Cascade Investment LLC, funded solely by Gates. The record illustrates the priorities of the uppermost strata of the ultrarich, where investment horizons span generations and riskier bets often dont outweigh the value of a good reputation. She was unaware of most of the allegations involving Larson given her lack of ownership of and control over BMGI, her spokeswoman, Courtney Wade, said in a statement. The shop was partially owned by Rally Capital, a firm that Cascade had invested in. [1] Larson subsequently earned an MBA from the University of Chicago at the age of 21. It does not handle logistics, payroll or expenses for the foundation and is purely an asset management firm that invests Gatess personal wealth. Michael Larson is the Business Manager of Cascade Investment, L.L.C. The money I have outside Microsoft is less than 10% of the total, says Gates. Vice Chair of the Finance Committee and member of the Safety, Health and Environment Committee. He is the chief investment officer for The Gates Foundation and Bill Gates' fortune, through the Cascade Investment fund. Another reason bonds are attractive to Larson is that as new money streams in, scaling up in the fixed-income markets is much easier than in stocks. He studied at Claremont McKenna College for three years, achieving a degree in economics. The William H. Gates Foundation is a little more complicated. Hes bright and very inquiring, and has a strong performance record.. Once loosely described as family offices or multi-family offices, this linguistic shift aims to put a finer point on their capabilities as independent advisers on family wealth.. Access your favorite topics in a personalized feed while you're on the go. Who is Michael Larson? Other directorships held during the past five years Director of Republic Services, Inc. and Fomento Economico Mexicano, S.A.B. Given Gates huge position in Microsoft, why does Larson own equities at all? In addition, as a professional investor and as the investment officer of the Companys largest shareholder, Mr. Larson brings a long-term shareholder perspective to the Board. The New York Times reported that the handling of the situation had put Bill and Melinda Gates at odds. He also owns some emerging-market debt and high-yield issues. Gates has occasionally made it clear that Larson has broad discretion to make investment decisions. Today Cascade holds about $57 billion in public equities, ranging from farm-equipment maker Deere & Co. to track operator Canadian National Railway Co. to waste management firm Republic Services Inc. companies rooted in the physical world of making, moving and selling goods, and cleaning things up. The BMGI/Michael Larson Asset Management Fellowship Program is designed to support juniors and seniors at Claremont McKenna College who are interested in studies and careers involving asset management and investment management. As an asset investor solely dedicated to the Gates operation, Larson's own net worth is under fire, too.

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