The 50 Wealthiest Angelenos: Eli Broad – #3

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The 50 Wealthiest Angelenos: Eli Broad – #3
Eli Broad

An improving economy and savvy investments helped L.A.’s self-styled venture philanthropist bounce back a bit after the recession chopped his net worth in 2009.

Broad made up ground through partnerships that bought distressed bank loans whose values have already recovered. Gold added just before the recession buoys a diversified investment portfolio comprising more than half his net worth.

He’s also done well with his efforts representing shareholders of crippled insurance giant AIG, where his stake worth $1.7 billion two years ago is down to $10 million.

As a result, Broad has focused his attention where he really wants it – on civic and philanthropic pursuits, including what to do with his 2,000-piece contemporary art collection.

The $1.5 billion collection, available for loan to museums around the nation, is his second largest holding. Broad is considering merging his longtime desire to open a private museum in Los Angeles for the collection with stalled plans to revitalize downtown L.A.’s Grand Avenue.

Broad has made headlines with his reported objective to lease an 82,000-square-foot site next to the Walt Disney Concert Hall – a facility he was key in getting built –for just $1 a year. The idea has prompted protests from critics who view it as a giveaway.

But Broad believes the museum, situated across the street from the Museum of Contemporary Art, would help jump-start the $2 billion Grand Avenue development of condos, shops and other attractions.

It’s always been Broad’s desire for Grand to become L.A.’s own Champs-Élysées, even if some question the notion.

Meanwhile, his Broad Foundations, whose endowment took a hit during the recession, are more careful in doling out money these days but continues making some intriguing grants.

Following on earlier gifts to UCLA and USC, his foundation made a two-year $5 million gift to establish a Joint Center for Translational Medicine to fund early stage medical research of UCLA and CalTech faculty.

The son of Lithuanian immigrants, Broad was born in the Bronx but raised in Detroit and eventually became a certified public accountant. He made his fortune co-founding homebuilder Kaufman & Broad (now KB Home) in 1961. He bought Sun Life Insurance a decade later, growing it into SunAmerica, and selling it to AIG in 1998 for $18 billion in cash and stock.

Turning to a new career as philanthropist and civic leader, he and his wife, Edythe, have targeted the arts, education and health care with roughly $2 billion in foundation grants over the years. Museums, business schools and medical research institutes from coast to coast are named for him and his wife.

NET WORTH: $5.9 billion +9%

LAST YEAR: $5.4 billion

AGE: 76

RESIDENCE: Los Angeles

SOURCE OF WEALTH: Homebuilding, insurance.

THE MONEY: Savvy philanthropist has done well, scooping up distressed bank loans that have already started to recover. Timely buys of gold upped the value of diversified investment portfolio.

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