Bloomberg Billionaires Index

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#245 John P Grayken $6.72B

Random fact: Graduated with an MBA from Harvard Business School.

Overview

Grayken is the founder of Lone Star Funds, a group of closely held private equity funds based in Dallas. The billionaire has raised about $70 billion for his funds since starting the company in 1995, and invests in distressed loans, including real estate, as well as consumer debt products and financial services companies.

As of Sept. 26, 2017:
Last change -$30.1M (-0.5%)
YTD change +$1.63B (+32.1%)
Industry Finance
Biggest asset Lone Star
Citizenship Ireland
Age 60
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

John P Grayken's net worth of $6.72B can buy ...

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troy ounces of gold
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barrels of crude oil

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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 Grayken's fortune is derived from his control of closely held Lone Star Funds, a private equity firm that invests in distressed debt. He's credited with all of the company, based on the 2015 accounts of Lone Star Europe Acquisitions, which state that he's the "ultimate controlling party." He was also identified as the sole shareholder in a Schedule 13D filed with the U.S. Securities and Exchange Commission.

The firm has raised about $70 billion from investors since it began in 1995 and has bought assets with an aggregate price of about $179 billion, according to the company's website and data compiled by Bloomberg. The value of assets under management isn't disclosed. It's calculated to be $90 billion based on the ratio of assets under management to the total purchase price of assets disclosed in a report on Lone Star by consultant Courtland Partners to the board of the Los Angeles Department of Water and Power Employees' Retirement Plan in August 2010.

Lone Star was valued using the average price-to-assets under management multiple of two publicly traded peer companies: Apollo and Oaktree.

Grayken personally invested $680 million into two Lone Star Funds, according to the minutes of meetings with two of the funds' institutional investors. The investments are valued at their disclosed amount.

Hudson Advisors, an affiliate asset-management company owned by Grayken, is valued as part of Lone Star.

He also owns properties in the England, Switzerland and the U.S. They're valued according to reports in the Irish Independent and Boston Globe.

Joseph Sala, a spokesman for Lone Star at New York-based Joele Frank Wilkinson Brimmer Katcher PR, said Grayken declined to comment on his net worth.

Biography

Birthdate: 1956
Family: Married, No children
Education: 1982, Harvard Business School, MBA University of Pennsylvania, Economics, Bachelor's Degree

John Grayken was born in Boston in 1956. He graduated from the University of Pennsylvania with a bachelor's degree in economics followed by an MBA from Harvard Business School.

He started his professional career in Morgan Stanley's real estate group, moving on to work for Texas billionaire Robert Bass, whose firm partnered with the Federal Deposit Insurance Corp. following the savings and loans crisis. Grayken ran the partnership and helped manage distressed assets.

In 1995, Grayken started his own fund, Lone Star, to buy distressed assets. He raised $396 million for Brazos, his first fund. Since then, he's invested in commercial and residential real estate as well as consumer debt products and financial services companies.

Lone Star fought a four-year legal battle with South Korean prosecutors after Lone Star's top executive there was convicted in 2008 of illegally manipulating the stock price of Korea Exchange Bank in order to acquire it at a lower price in 2003. The conviction was overturned in June 2008 and the bank was sold four years later.

Grayken renounced his U.S. citizenship in 1999 and became a citizen of Ireland.

Milestones
  • 1956 John Grayken is born in Boston.
  • 1990 Works for Morgan Stanley and Texas billionaire Robert Bass.
  • 1995 Starts Lone Star Funds.
  • 1999 Renounces U.S. citizenship and moves to London.
  • 2003 Acquires Korea Exchange Bank, country's fifth-largest bank.
  • 2012 Sells Korea Exchange Bank to Hana Financial Group for $3.8 billion.
  • 2014 Invests $350 million of his own money into a Lone Star Fund.
  • 2017 Lone Star Funds aggregate capital commitments total over $70 billion.