When Nathan Gardels first met billionaire investor Nicolas Berggruen in 2010, the veteran journalist and former economic adviser to Gov. Jerry Brown never dreamed they would end up as partners in global political reform.
“To be honest, I thought, he’s another billionaire with too much money and too much time,” said Gardels, who noted he was quick to change his mind.
The two co-founded the Berggruen Institute later that year, an independent, nonpartisan think tank with the lofty goal of shaping “political, economic and social institutions for the 21st century.”
The institute has had a major increase in visibility over the past two years.
Berggruen, founder and chairman of New York-based Berggruen Holdings Inc., purchased 450 acres in the Sepulveda Pass last year for a reported $45 million. His goal is to create a campus for scholars and thinkers to explore the intersection of politics and culture. The institute also announced in May that it had acquired a historic property in MacArthur Park to expand its reach from the ivory tower into urban Los Angeles.
Canadian philosopher Charles Taylor was named in October as the first winner of the Berggruen Prize – a $1 million award from the institute given annually to a thinker whose ideas are of broad significance for shaping human self-understanding and the advancement of humanity.
Berggruen’s investment career began in the 1980s after he received a $250,000 loan from his father. Over the last 20 years, Berrgruen Holdings, the direct investment vehicle of the Nicolas Berggruen Charitable Trust, and its related entities have made more than 100 direct investments using its proprietary capital. Its portfolio includes holdings in hotels, publishing, health care and for-profit education.
Berggruen ranked No. 36 on the Business Journal’s 2017 Wealthiest Angelenos list, with a net worth of $1.9 billion.
In a recent interview at his West Hollywood home in the hills, Berggruen said he is not keen on the distinction.
“(It’s) a very reductionist way of looking at facts,” he said.
He went on to downplay his financial successes.
“I value other talents much more highly than that, he said. “It’s an OK talent but it’s not a great talent.”
That’s perhaps reflected in the way Berggruen chooses to focus his efforts these days. The self-deprecating philanthropist said he spends the vast majority of his time working on institute-related activities, noting he regrets waiting so long to launch the organization.
“Before, I was thinking, but not enough,” he said.
Gardels, who now also serves as executive editor of the institute’s WorldPost, an independent global news website created in partnership with HuffPost, said he had met many wealthy individuals with big plans to launch vanity projects during his political and media career. When introduced to Berggruen at a Council on Foreign Relations dinner seven years ago, he assumed the man referred to as the “homeless billionaire” – due to his penchant for jetting around the globe and living in luxury hotels in lieu of a fixed address – might fall into that category.
He has since spent years traveling with Berggruen and other institute members to meet with political, religious, business and technology leaders around the world to advance the organization’s agenda.
Its many initiatives have included the Think Long Committee for California; the Council for the Future of Europe; the Berggruen Philosophy and Culture Center; and the 21st Century Council, whose primary function is to examine the global shift of power from the Western world to emerging economies.
“He’s not a dilettante, he’s a serious thinker and a serious searcher,” said Gardels. “He is willing to put his money where his mind is, so to speak.”
Billionaire benefits
Though he doesn’t play up his business successes, Berggruen acknowledged there are perks to being a billionaire; one of the important being that important people – including President Donald Trump and Chinese President Xi Jinping – take your phone calls.
Though he’s still looking to meet Pope Francis.
“I am not religious, but he is actually a very thoughtful leader in a world that is very difficult. He is bringing an institution that has survived for 2,000 years into the present.”
While declining to offer a specific comment about his conversation with Trump, Berggruen did offer a general observation about the administration.
“Being an outsider is often healthy, it can shake up the system. But you have to go beyond shaking up the system. You need a plan and a way forward and one that brings people together,” he said.
That type of thinking is reminiscent of how Gardels described the institute’s approach to solving problems, with the co-founder noting the nonprofit’s goals are bigger than doling out grants and putting the Berggruen name on buildings.
“Nicolas’ genius is that he sees, while philanthropy is well and good, it aims at filling the cracks of a broken system. Governance is about fixing the whole system,” said Gardels, adding with a laugh, “My genius is that I agree with him.”
Artful residence
Art is perhaps in Berggruen’s blood.
The son of a wealthy art dealer, he was born in Paris and holds dual U.S. and German citizenship. He sits on the board of the Los Angeles County Museum of Art and has an extensive personal collection featuring works by noted contemporary artists Ed Ruscha, John Baldessari and Bruce Nauman, among others. Large-scale works by Jon Rafman and Petra Cortright adorn the walls of his home, while an elegant modern chess set designed by Marcel Duchamp occupies a sunny corner of the residence.
Berggruen, who recalled meeting reigning World Chess champion Magnus Carlsen, noted his feelings about the game are similar to how he approaches business.
“I’m not sure that chess should be an end for itself, except for the very best players,” he said. “To be the best of anything is to be admired.”
Berggruen is seemingly committed to perfection, even in his surroundings. When a Business Journal photographer moved the chess set a few inches for the purpose of getting a photo, Berggruen made sure to nudge it, ever so slightly, back to its original position.
Though he still spends plenty of time on planes, Berggruen, who fathered two children through an egg donor and surrogates last year, has put down some deeper personal roots in Los Angeles to go along with the institute’s expanded footprint.
He purchased the former Holmby Hills mansion of socialite Edith Mayer Goetz for $40 million earlier this year.
Dawn Nakagawa, executive vice president of the Berggruen Institute and the organization’s first employee, said Berggruen considered Singapore and Berlin as sites for the institute before settling on Los Angeles.
“L.A. grew on him, it became a place where he believed great things could be done,” she said.
