Bloomberg Billionaires Index

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#143 German Khan $9.98B

Random fact: Said "The Godfather" is a manual for life, according to the Telegraph.

Overview

Khan is a partner in Alfa Group, an investment company that owns stakes in Alfa Bank, Russia's biggest banking group, and X5, a Russian food retailer. Through Luxembourg-based LetterOne he also owns a stake in European oil and gas producer DEA and the international mobile-phone operator Veon.

As of Sept. 21, 2017:
Last change -$7.10M (-0.1%)
YTD change +$780M (+8.5%)
Industry Diversified
Biggest asset Cash
Citizenship Russian Federation
Age 55
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

German Khan's net worth of $9.98B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Khan's fortune is derived from his stake in Alfa Group, which has interests in banking and retail through a web of companies based in Gibraltar, the British Virgin Islands and Liechtenstein. He created and controls the holding company with two former college classmates, Mikhail Fridman and Alexei Kuzmichev. The three partners own the businesses controlled by Alfa Group through Gibraltar-based CTF Holdings.

He sold his stake in TNK-BP International, Russia's third-largest oil producer at that time, to state-run oil company Rosneft for $3.3 billion in March 2013. The partnership paid out $38 billion in dividends from 2004 to 2012. Khan owns 21 percent of Alfa Bank, Russia's largest closely held bank, according to Banki.ru ranking as of August 2017.

In March 2015, through Luxembourg-based holding company, LetterOne, he and his partners completed the 5.1 billion-euro ($5.8 billion) acquisition of German RWE's Dea unit, which produces oil and gas in Norway, Germany and Egypt. Khan owns a 25 percent in the asset, which is valued using the acquisition price.

Khan also holds stakes in three publicly traded companies, including 15 percent of X5, a food retailer, 13.8 percent of Veon, international mobile phone operator, and 3.2 percent stake of Turkcell, a mobile phone company.

He owns stakes in health-food retail chain Holland & Barrett, investment fund A-1, asset management firm Alfa Capital, FreedomPop, a wireless internet mobile service provider, and water supply company Rosvodokanal.

His cash holdings are calculated using an analysis of dividends, insider transactions, taxes and market performance.

Biography

Birthdate: 10/24/1961
Family: Married, 4 children
Education: 1988, Bachelor's Degree, Moscow Institute of Steel & Alloys

German Khan was born in Kiev in 1961, to a metallurgy professor. In school, he was more interested in boxing and other sports than doing his homework. He worked as a locksmith before enrolling in the Moscow Institute of Steel and Alloys in 1983. That's where he met Alexey Kuzmichev and Mikhail Fridman, his future billionaire partners. They started working together in 1989, first selling electronic goods, carpets and consumer staples -- enterprises that became the basis for Alfa Group, the holding company that today controls many of their investments.

The college friends also created a commodities trading company, Crown Trade and Finance, which moved oil between Europe, the U.S., Australia, Cuba and Iraq. In 2002, an oil tanker chartered by company successor Crown Resources, was denied entry to a Spanish port, broke during a storm and sank off the coast, spewing 20,000 tons of oil into the Atlantic Ocean. Alfa subsequently sold Crown.

They landed the TNK deal, Khan's biggest financial success, in 1997. Along with fellow businessmen Viktor Vekselberg and Leonid Blavatnik, the Alfa partners bought a 40 percent interest in the former state-owned oil company with interests in several West Siberian oil fields. Two years later, they also acquired the most productive subsidiary of competitor Sidanco -- then owned in part by BP -- which had been declared bankrupt by a Siberian court. BP's CEO at the time, John Browne, later called the legal system "rigged."

BP had paid almost $8 billion by 2004 for half of TNK, while the other half was consolidated by Fridman and his partners under the holding company Alfa-Access-Renova (AAR). The investment formed TNK-BP, Russia's largest foreign oil investment. TNK-BP CEO Bob Dudley -- now CEO of BP -- was forced to leave Russia after a strategy dispute in 2008.

In 2011, AAR sued BP over a separate Arctic development deal it tried to strike with Rosneft. In May 2012, BP executives said that the company would sell its stake and Fridman stepped down from his role as CEO. In October, Rosneft announced it would acquire the entire company. TNK-BP paid $38 billion in dividends through 2011. The billionaires sold their half of the venture to Russia's state-owned oil company, Rosneft, for $27.7 billion in March 2013.

Milestones
  • 1988 Graduates from Moscow Institute of Steel and Alloys.
  • 1989 Joins Alfa-Eco with Mikhail Fridman and Alexei Kuzmichev.
  • 1991 Partners found Alfa Bank, now Russia's largest non-state bank.
  • 2003 AAR and BP merge Russian assets to form TNK-BP.
  • 2011 Helps fund the $1 million Genesis prize, a "Jewish Nobel prize."
  • 2013 State-owned firm Rosneft buys AAR's TNK-BP stake for $28 billion.
  • 2013 Founds with billionaire partners L1 Energy.
  • 2014 L1 Energy agrees to buy RWE oil unit for $5.8 billion.