A significant stake in the Four Seasons luxury-hotel chain. He also has served on several other public company boards providing him relevant corporate governance experience. Michael Larson is a Manager, Investment at Cascade Funding based in Kirkland, Washington. Larson, 61, has admitted that he sometimes used harsh language, as alleged in the Times reporting, but denied that he mistreated staff. Building on a century of innovation, Ecolab has annual sales of $14 billion, employs more than 47,000 associates and operates in more than 170 countries around the world. 3/13/2023 2:22 PM. If you experience any issues with this process, please contact us for further assistance. The arrangement is simple: Mr. Larson makes money, and Mr. Gates gives it away. Wall Street Journal. 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? Leverage your professional network, and get hired. Additionally, Michael Larson has been known to create limited liability corporations especially for real estate purchases, keeping Cascades name off the documents. Who is Michael Larson? Ltd. All rights reserved. Bill Gates has said about Michael Larson Since Microsoft is my primary focus, I wanted someone who could operate on their ownI also wanted someone with a conservative philosophy about investing. $10 billion is farmed out to around 25 other money managers, helping to hide the trail and generate other ideas. 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. [6] Larson accrued over the twenty years from 1995 an 11% compound annual return,[6] and as of 2014 had 100 employees working under his direction. Qualifications With more than 30 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. Thank you for your continued support. In August, it increased its stake in Strategic Hotels and Resorts to 9.8 per cent. Since then Gatess fortune has grown to around $80bn (of which he has given away around half) after Larson diversified the funds out of Microsoft, Gatess software company, and into a broad range of investments. He attended Claremont College, finishing in three years with a degree in economics, and then went directly to the University of Chicago, where he picked up an MBA at the age of 21. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. If you think about it, 90%-plus of Bills wealth is in a single technology stock. He also has served on several other public company boards providing him relevant corporate governance experience. While trying to buy a Chicago-based money management firm, Larson received a call from a head hunter to work for Bill Gates. Larson is the chief investment officer for the Bill & Melinda Gates Foundation. He was trying to buy a money-management firm in Chicago when the call from Bill Gates headhunter came. Belong anywhere with Airbnb. Larson, 61, has worked for Gates through Cascade since 1994. 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. In addition, Mr. Larson serves as director to a number of closed end funds and mutual funds within the Western Asset Management fund complex. 10%. ), because Early gave him the thumbs-up. Evans was involved in bank fraud and even served a stint in jail, where Gates visited him. 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. Director of Ecolab since 2012. And second, we just had an inflow of a couple of billion dollars.. Like Cascade, many single family investment firms are moving away from the term family office. Michael Larson is an American money manager. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. [10] In 2022, the company sold $940 million worth of stocks, whittling Gates' stake down to 1.4 percent.[9]. Bets on the bond market have been reduced recently in favor of private equity and other types of adventurous, so-called alternative assets. [6] I am writing on behalf of Michael Larson, who is the manager of Cascade Investment, L.L.C. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. Michael Larson has for decades managed Bill Gates' fortune, which is worth nearly $130 billion. Larson farms out some 15% of the overall portfolio to bond managers at Morgan Grenfell, PIMCO, Miller Anderson & Sherrerd, and Western Asset Management. Cascade has around 100 employees, who, when traveling on business, must stay at a low-cost hotel, not the Four Seasons, despite the fact that Cascade owns a large chunk of the hotel chain. ThePrint with exceptional reporters, columnists and editors is doing just that. 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. 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. Previously, Michael was a Manager, Investment at BMGi. Found email list ings include: @cascademgt.com. Sources told The Times that the woman reached a settlement in 2018, signing a nondisclosure agreement in exchange for a payment. This change is not only happening among high-end investment firms; lawyers and accountants too are coining new phrases. He grew up in North Dakota and Albuquerque, New Mexico, and received an MBA from the University of Chicago, Fortune reported in 1999. In one instance, sources told The Times that Larson made a racist comment to former employee Stacy Ybarra, who is Black. Bill Gates' money manager Michael Larson is accused of making racist and sexist comments. 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. Larson called the investment shop Cascade Investment because the generic name would allow him to operate in the market without drawing attention. Based in Kirkland, Washington, Cascade shies away from media attention. Bill Gates' money manager Michael Larson was accused of making racist, sexist remarks to employees, The New York Times reported. The shop was partially owned by Rally Capital, a firm that Cascade had invested in. Cascade is the personal investment entity of William H. Gates III, the sole member of Cascade. And its the biggest shareholder of Republic Services Inc., which for years has feuded with the International Brotherhood of Teamsters union, whose members are employees. It declined to comment on its investment strategies but it is known to invest globally and across many asset classes. Agricultural, construction, forestry, outdoor power and turf maintenance equipment. 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. But I had to meet him.. Following the divorce of Bill Gates and Melinda French Gates, their money manager has come under some serious scrutiny. 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. NOW WATCH: Bill Gates has a net worth of over $96 billion here's how he makes and spends his money, Larson's alleged inappropriate workplace behavior. In a Fortune story from two decades ago, Larson explained that much of his strategy boiled down to countering the swings of Microsoft stock. 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. NOW WATCH: Bill Gates has a net worth of over $96 billion here's how he makes and spends his money, pursued female employees and been dismissive of French Gates, The Wall Street Journal profiled Larson in 2014, his $125 million estate in Washington, a luxury-car collection, and a private plane. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. After submitting your request, you will receive an activation email to the requested email address. New York: For almost three decades, Michael Larson has quietly shuffled around one of the worlds biggest fortunes with a chief priority: Keep his fabulously wealthy bosses out of the headlines. Larson runs Gates' secretive investment company, Cascade Investment, and manages Gates'. Same platform but with new and improved features. 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. At Ecolab Inc., we promise to treat your data with respect and will not share your information with any third party. ("Cascade"), of which I am the General Counsel. 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. Thats where the real money is made.. (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. As an asset investor solely dedicated to the Gates operation, Larson's own net worth is under fire, too. [1], He graduated from high school in two years and was recruited to West Point, the Coast Guard Academy, and the Merchant Marine Academy. Vice Chair of the Finance Committee and member of the Safety, Health and Environment Committee. Bill Gates' money manager, Michael Larson, has come under scrutiny as recent details have surfaced alleging inappropriate workplace behavior. This page is not available in other languages. Cascade Investment, L.L.C. The remaining $500 million is in stocks. Larson was only 16 when he graduated high school and could not attend the Coast Guard Academy until he was 18. Source: getty. Intelligent Assistance and Bots Ecosystem. Cascade Investment paid settlements to at least seven people who . I thought it was the old FBI trick, chuckles Larson, you know, ask for 13 and randomly pick three. St. Paul, MN 55102. Larson's net worth is projected to be in the millions, though it's unclear where the number lies. The newspaper. 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. 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. "There's a clear process for employees, contractors and partners to share concerns either anonymously or by name, and any issue raised over the company's history has been taken seriously and resolved appropriately," the spokesperson continued. Michael Larson (born October 1959) is an American money manager. This helps family offices professionalise earlier than they would have before. Read More 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. Despite Michael Larsons experience, in the past Gates has made his own investment decisions in biotech. That has shifted. Copyright 2023 Market Realist. He is the chief investment officer for Bill and Melinda Gates Investments (BMGI), and as such is. Some current and former employees say he can be brusque and controlling, even deciding the seating chart for the investment firms annual holiday party. After two years, Larson left Putnam to run his own fund.[1]. By using Ecolab.com, you consent to our use of cookies. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. After two years, he struck out on his own. Michael Larson is an American money manager who is the chief investment officer for the The Gates Foundation. First, it reflects my view of the markets. Amid controversy, Bill Gates' money manager Michael Larson could be safeguarding a hefty net worth. He assumed the role in 1994. French Gates hired a law firm to investigate the woman's claims and the culture at Cascade, and Larson was placed on leave. Smaller investments include stakes in nuclear-reactor developer TerraPower LLC and meat-substitute maker Beyond Meat. Michael Larson, the son of an industrial engineer, grew up in North Dakota and then in Albuquerque. 30 Apr 2023 20:37:03 Since we are obviously heavily weighted with Microsoft, we will sell stock periodically in order to get more diversity. 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. Its basically the same strategy most individual investors engage in.. If you do not wish to receive our cookies, adjust your browser settings. In 2008, it bought a 3 per cent share of Carpetright, the flooring retailer, but has since reduced its stake. This allows them to outsource functions previously done in-house. The moniker closely resembles Cascade Investment, which historically has been the part of BMGI that manages the Gateses personal wealth. Because I think some stocks have behavior patterns that run counter to Microsoft, says Larson. Vice Chair of the Finance Committee and member of the Safety, Health and Environment Committee. Michael Larson also manages the funds for the Bill Gates Foundation. Cascade also owns around 270,000 acres of land, enough to make it the single biggest owner of U.S. farmland, according to the Land Report. 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.. Cascade Investment, L.L.C. [citation needed], Larson is a regular attendant of the Allen & Company Sun Valley Conference. Hes a long-term, buy-and-hold investor. Stay up to date with what you want to know. Director of Ecolab since 2012. , For instance, if and when the air comes out of tech stocks, food and oil stocks could hold up real well. People may receive compensation for some links to products and services on this website. 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. 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. 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. Read More . Other directorships held during the past five years Director of AutoNation, Inc., Republic Services, Inc., Grupo Televisa, S.A.B. ", "See how @DiageoGB scores on #water stewardship in face of #climatechange in new @Ceresnews analysis", "Bill Gates is $9.5 billion richer than he was a year ago, worth over $100 billion, but not just from Microsoft", "Cascade Investment Portfolio Holdings", "The Bill Gates-backed company that's reinventing meat", "Sears gets more time to repay lenders, including funds tied to CEO Edward Lampert and Bill Gates", "Bill Gates' Cascade Investment, GIC buy stakes in StorageMart", "GIP teams up with Blackstone and Cascade to buy Signature Aviation", https://en.wikipedia.org/w/index.php?title=Cascade_Investment&oldid=1132153932, Investment companies of the United States, Conglomerate companies of the United States, Financial services companies established in 1995, 1995 establishments in Washington (state), Privately held companies based in Washington (state), United States financial services company stubs, Creative Commons Attribution-ShareAlike License 3.0. 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Of the nonbond portion of Gates portfolio, another $250 million is in what Larson calls real stuff.. de C.V. 1 objective is preservation of capital, he said, adding thats why family office portfolios are so diverse, including not just public equities, but also fixed income, commodities and assets such as art. It's unclear what percentage Larson gets out of managing a fortune worth more than $100 billion. Offers may be subject to change without notice. Market Realist is a registered trademark. According to Cascade, this is a low ratio. Unflattering details spilled out, including a report that Larson had allegedly harassed and bullied some employees. [5], 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. Basically we are short on the yield curve right now, Larson says, again reflecting his wary view of the markets. Noits Bill Gates, and could he [headhunter named Bert Early] please have the names of 13 references. In 1994, Larson and his wife moved to Seattle. The manager had broad leeway from Gates on investment decisions, they both have said. Regardless, it's a sizable fortune to manage for one of the world's wealthiest people. Larson reportedly told a Black employee she lived 'in the ghetto. About half of it$750 millionis in what Larson calls private equity; thats buyout funds and direct investments, such as Gates stake in Teledesic, McCaws satellite company (Larson is on its board). Cascade Investment Chief Investment Officer 1994 Board and Advisor Roles The No. 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. analyse how our Sites are used. Public Records. Michael Larson doesnt restrict himself to stocks; he looks at bonds, currencies, commodities, land, and direct investments in companies. He started digital-image company Corbis Corp. in 1989. The two foundations merged to form the Bill & Melinda Gates Foundation during 2000. Find unique places to stay with local hosts in 191 countries.