And I thought my dad was a pretty nice guy! Perhaps the corporate raider gene was passed down.
Carl Icahn agreed to allocate as much as $3 billion to a management duo composed of his son Brett and David Schechter, expanding their role in running the 76- year-old’s investments.
Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism.
Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund.
“It’s a pretty nice gesture by the old man,” said Michael McAllister, a partner at Satterlee Stephens Burke & Burke LLP in New York who specializes in employment law within the securities industry. “If the son doesn’t meet the standard Carl is looking for, it gives Brett an opportunity to go out and earn his own.”
Link to entire article: http://www.bloomberg.com/news/2012-08-14/carl-icahn-hands-son-brett-3-billion-to-prove-his-mettle.html
Carl Icahn agreed to allocate as much as $3 billion to a management duo composed of his son Brett and David Schechter, expanding their role in running the 76- year-old’s investments.
Under a 46-page legal agreement filed with federal regulators last month, Brett Icahn and Schechter will get to invest their boss’s capital in companies with stock market values between $750 million and $10 billion. The deal may free the elder Icahn, who still has final say over many aspects of the portfolio, to focus on larger targets for shareholder activism.
Brett, who turns 33 this month, along with Schechter has been running $300 million for his father, who owns more than 90 percent of Icahn Enterprises LP, a holding company with $24 billion in assets including activist investing partnerships as well as the Tropicana casinos, an oil refiner and an auto-parts maker. The arrangement expires after Carl turns 80 in 2016, giving Brett the chance to both prove his mettle as a successor and develop a track record to start his own hedge fund.
“It’s a pretty nice gesture by the old man,” said Michael McAllister, a partner at Satterlee Stephens Burke & Burke LLP in New York who specializes in employment law within the securities industry. “If the son doesn’t meet the standard Carl is looking for, it gives Brett an opportunity to go out and earn his own.”
Link to entire article: http://www.bloomberg.com/news/2012-08-14/carl-icahn-hands-son-brett-3-billion-to-prove-his-mettle.html
