1. KIRK KERKORIAN
Net Worth:
$9.3 billion +15%
Last Year:
$8.1 billion
Age:
88
Residence:
Beverly Hills
Source of Wealth:
Investments
Background:
Billionaire investor and shareholder activist has plunged $1.6 billion into General Motors Corp., raising his stake to 9.9 percent, in an effort to steer the company to a comeback. Holds 56 million shares of the struggling U.S. auto maker and won seat on its board of directors; top lieutenant, Jerome York, sits on his behalf. Beverly Hills-based holding company, Tracinda Corp., also owns more than 158 million shares in Las Vegas casino MGM Mirage, nearly 56 percent of the company; investment is valued at more than $7 billion. MGM Mirage received regulatory approval in March for its 2005 acquisition of the Mandalay Bay Resort group, a deal worth about $7.9 billion that would give MGM Mirage control of about half the hotel rooms on the Strip. Has history as shareholder-agitator, launching hostile takeover bid of Chrysler Corp. in the 1990s to pressure the company into upping its dividend. Eventually reached agreement with management and supported merger with Daimler-Benz only to sue the companies two years later for $1 billion, claiming the merger proposal was misleading. Forfeited $30 million of settlement from a shareholder class-action suit against the company to pursue individual action. Also has bought and sold film studio Metro-Goldwyn-Mayer Inc. three times, most recently to Sony Corp.-led consortium for $4.9 billion in 2004, netting about $2 billion.
2.SUMNER REDSTONE
Net Worth:
$7.4 billion -11%
Last Year:
$8.3 billion
Age:
82
Residence:
Beverly Hills
Source of Wealth:
Media, entertainment
Background:
The chairman of the board of CBS Corp. and Viacom Inc. led a split of the two companies to prop up shares of both firms late last year; both stocks have taken a hit since then. Shares of CBS, which includes television holdings CBS Network, Showtime and UPN as well as CBS Radio, fell to under $25 last month from roughly $27. Shares of Viacom, which has Paramount, MTV, Nickelodeon, BET, Comedy Central and Spike under its umbrella, tumbled to roughly $38 from around $44. Tom Freston took over as chief executive of Viacom from Redstone in January, with Les Moonves filling the role at CBS. Also last year, Paramount outmaneuvered Universal to acquire DreamWorks in a $1.6 billion deal and then sold off film library for $900 million. CBS Radio lost raunchy radio ratings booster Howard Stern to satellite radio, but CBS television network recently scored a coup by wooing Katie Couric to helm its news desk. Redstone, chairman of the board and chief executive of film exhibition firm National Amusement Inc., is adamant that he’s not slowing down, but is grooming daughter Shari to succeed him. She’s vice chair of the board of directors at CBS and Viacom and president of National Amusements Inc. Purchased a controlling stake in Viacom, which he founded, in 1987. Married former schoolteacher Paula Fortunato in April 2003 and lives with her in a Beverly Hills mansion.
3.BARBARA DAVIS & FAMILY
Net Worth:
$6 billion -7%
Last Year:
$6.4 billion
Residence:
Beverly Hills
Source of Wealth:
Oil, real estate, entertainment
Background:
The Davis family is almost entirely out of the oil business, thanks to the havoc caused to its Gulf Coast oil rigs by hurricanes Katrina and Rita. Houston-based Davis Petroleum Corp. and its subsidiaries Davis Pipeline and Davis Offshore filed Chapter 11 bankruptcy earlier this year to facilitate a $150 million buyout by a private equity firm. After paying off creditors, the family is only likely to see $35 million from the deal. Marvin Davis sold much of the family’s oil contracts and leases before he died two years ago, leaving his vast fortune to his wife and five children. Son Gregg still has an 8.8 percent stake in Davis Petroleum, where he continues to serve as chief executive. The company became burdened with debt after a margin call when the price of natural gas futures skyrocketed last year. Then the hurricanes battered the company’s Gulf Coast operations, further stretching the cash-strapped outfit. The Davis family made its fortune nearly 50 years ago, drilling for oil in Colorado (Marvin Davis later moved the company to Los Angeles). Daughter Patricia Davis Raynes has filed a suit against the petroleum company and her mother and siblings, claiming her father stole hundreds of millions of dollars from her trust fund. Son Jon Davis, head of Davis Entertainment Co. and Davis Entertainment Television, has produced nearly 80 feature films and made-for-TV movies. The family has also long been active in charitable causes. After daughter Dana was diagnosed with juvenile diabetes in 1977, Barbara Davis founded Children’s Diabetes Foundation and Barbara Davis Center for Childhood Diabetes. Also founded the Nancy Davis Foundation for Multiple Sclerosis after daughter Nancy was diagnosed with disease.
4. ELI BROAD
Net worth:
$5.6 billion +17%
Last year:
$4.8 billion
Age:
73
Residence:
Brentwood
Source of Wealth:
Homebuilding, insurance
Background:
The most high profile of L.A.’s billionaires, Broad is a modern-day Medici; the self-proclaimed “venture philanthropist” is an advocate for education reform and an avid modern art collector. Broad has used his fortune and influence to remake the face of Los Angeles, most notably in jump-starting the faltering Disney Concert Hall; last month, the Grand Avenue Committee he chairs unveiled the Frank Gehry-designed first-phase of the massive $1.8-billion makeover of Bunker Hill; plan calls for up to eight condo and office towers, a major hotel, shopping centers and a 16-acre public park. Also in January, thanks in large part to Broad’s $60 million contribution, ground was broken on expansion of Los Angeles County Museum of Art, including the 70,000-square-foot Broad Contemporary Art Museum, scheduled for completion in late 2007. He’s doled out more than $1 billion to educational and cultural institutions over the years; last November, added $100 million to his original $100 million grant to the Broad Institute, a collaborative scientific effort between Harvard University and MIT in Cambridge; in February, announced $8.9 million Broad Fellows Program in brain circuitry at Caltech; in March, announced $25 million grant to create Broad Institute for Integrative Biology and Stem Cell Research at USC; this September, the Eli and Edythe Broad Art Center at UCLA will open. A fierce advocate for education reform, his Broad Education Foundation works to improve public education governance throughout the nation, with a $1 million annual prize. One project Broad supports, the High School for Performing Arts on the site of former Los Angeles Unified School District headquarters, is facing controversy as costs surge past $200 million. Broad donated $5 million to the effort. He made his fortune co-founding Kaufman & Broad homebuilders to construct suburban homes for baby boomers and from financial services firm SunAmerica.
5. JEFFREY SKOLL
Net Worth:
$4.8 billion +7%
Last Year:
$4.5 billion
Age:
41
Residence:
Los Angeles
Source of Wealth:
Internet auction site
Background:
First president of eBay Inc. and one of its largest shareholders; retired from company in 2001. Holds more than $3 billion in volatile eBay stock (about 6 percent of the company), which is trading in the high $30-range. Intensely private individual, Skoll and his production company, Participant Productions, landed in the Oscar limelight this year. Its four film releases, “Good Night, and Good Luck,” and “Syriana,” both starring George Clooney; “North Country,” starring Charlize Thieron; and “Murderball,” a documentary about paralympic athletes, received a total of 11 Academy Award nominations. Skoll is the sole owner of Participant Productions, founded in 2004 to finance films with socially conscious themes. Though the movies were not big moneymakers “Syriana” led the group with $86 million at the box office the Oscar nods vindicated social consciousness as a theme. Skoll splits his time between L.A. and the Bay area. Serves as chairman of Palo Alto-based Skoll Foundation, which he founded in 1999 with $380 million to support social entrepreneurship. Gave away almost $20 million last year to startups in the U.S. and developing countries. Endowed the Skoll Centre for Social Entrepreneurship at the Said Business School at Oxford University. Born in Canada, graduated from University of Toronto and Stanford Business School.
6. DAVID MURDOCK
Net Worth:
$4.5 billion
Last Year:
$4.5 billion
Age:
83
Residence:
Los Angeles
Source of Wealth:
Agriculture, real estate
Background:
His major holdings include Dole Food Co. Inc. and Castle & Cooke Inc., both of which Murdock took private. His combined companies employ more than 68,000 people in more than 90 countries. Vast holdings include land and homes in Hawaii, California, Arizona, North Carolina and Florida. Owns 98 percent of Lanai in Hawaii, the largest privately owned island in America. Real estate up in value, but Dole earnings took hit as the industry was affected by hurricanes and rising fuel costs. An advocate of healthy eating, he organized medical and nutrition experts from Mayo Clinic, UCLA and Dole to write “The Encyclopedia of Foods, A Guide to Healthy Nutrition.” He plans to open a wellness complex in Westlake Village later this year. The complex will be branded as a Four Seasons Hotel & Spa and will house the California WellBeing Institute, which includes a healthy lifestyle-teaching center, medical facilities and a television studio. He contributed $150 million to build the North Carolina Research Campus. Hobbies include reading, the arts, poetry and horticulture. He is a breeder of more than 200 prized Arabian horses, has a 30,000-plant orchid collection and collects art and antique furniture.
7. DAVID GEFFEN
Net Worth:
$4.2 billion -2%
Last Year:
$4.3 billion
Age:
63
Residence:
Malibu
Source of Wealth:
Entertainment
Background:
Sold DreamWorks Studios, the live-action unit of the studio that he co-founded with Spielberg and Katzenberg in 1994. Paramount Pictures bought the studio for $2.1 billion after Geffen felt that another potential buyer, NBC Universal, stalled in negotiations. Studio spun off animation unit in 2004 before release of “Shrek 2,” a film that helped animation unit gross over $1 billion. DreamWorks Animation SKG Inc. stock has fallen to IPO price. After securing distribution deal for films and videos, Vivendi Universal bought DreamWorks Records for an estimated $100 million. Geffen had earlier sold the music unit’s Beverly Hills office for $33 million. He also discussed buying the Los Angeles Times last year and was forced to pay legal bills after losing a highly public legal battle to privatize beach in front of his Malibu beachfront property. Born in Brooklyn to working-class parents, he dropped out of college to pursue career in entertainment. Started out in William Morris Agency’s mailroom and worked his way up. Founded Geffen Records in 1980 and sold it a decade later to MCA. Invested $200 million in 1991 with hedge fund manager Eddie Lampert. Could be worth more than $5 billion today, but he declines to comment.
8.PATRICK SOON-SHIONG
Net Worth:
$4 billion +11%
Last Year:
$3.6 billion
Age:
53
Residence:
Los Angeles
Source of Wealth:
Pharmaceuticals
Background:
It was a mixed year for the South African-born surgeon. Abraxane, the cancer drug manufactured by his American Pharmaceutical Partners Inc., did 2005 net sales of $134 million after February 2005 launch. An April merger created L.A.-based Abraxis BioScience Inc., a combination of American Pharmaceutical (best known as a generic drug maker) and American BioScience Inc., the privately held Los Angeles drug developer Soon-Shiong founded. Today he owns 81 percent of the combined companies, whose share price is down 39 percent from American Pharmaceutical’s a year ago, in part because of shareholder reaction to the deal. However, his wealth actually increased given the market’s valuation of the formerly private American BioScience. He joined the UCLA medical school faculty in 1983 and helped pioneer procedures to transplant pancreatic cells to treat diabetes in 1986. He co-invented 30 patented compounds that form basis for Abraxane and other possible drugs.
9.BRADLEY WAYNE HUGHES & FAMILY
Net Worth:
$3.6 billion +33%
Last Year:
$2.7 billion
Age:
72
Residence:
Malibu
Source of Wealth:
Storage facilities
Background: The chairman of Glendale-based Public Storage Inc. received a boost this year as stock climbed about 30 percent. After several years of hostile takeover attempts, finally acquired competitor Shurgard Storage Centers Inc. for $5 billion. Deal scheduled to close later this year. Started Public Storage with one property in 1972; merged 18 affiliated real estate investment trusts into Public Storage from 1994 to 1998. Company originally named “Private Storage,” confusing customers who thought facilities were closed to the public. Name change brought customers. Today, REIT has interests in more than 1,400 storage facilities in 37 states. Drew $60,000 salary as chief executive until his retirement in 2004. Owns two adjacent, two-acre beachfront properties in Malibu. Longtime racehorse owner, he bought 773-acre Kentucky thoroughbred nursery Spendthrift Farm in 2004.
10.STEVEN FERENCZ UDVAR-HAZY
Net Worth:
$3.4 billion +13%
Last Year:
$3 billion
Age:
60
Residence:
Beverly Hills
Source of Wealth:
Aircraft leasing
Background:
Chairman and chief executive of International Lease Finance Corp. had a good year with the rebound of embattled insurance giant American International Group. Udvar-Hazy and partners Leslie and Louis Gonda sold their jet leasing company, which they founded in 1973, to AIG in 1990. Holds about $1.4 billion in AIG stock; claims to hold $1.5 billion in other publicly traded companies, $165 million in real estate, $47.5 million in private equity investments, and likes to keep about $224 million in bonds and cash equivalents. His art collection, autos and antiques are worth about $38 million. A certified jet pilot, he sits on the board of Skywest Inc. Donated $60 million to the Smithsonian’s National Air and Space Museum and there’s a Steven F. Udvar-Hazy Center dedicated to him. He gives to UCLA, the L.A. Science Center Museum, Stanford University and Embry Riddle Aeronautical University. Born in Budapest, Hungary in 1946, he immigrated to the U.S. in 1958.
11. HAIM SABAN
Net Worth:
$3.1 billion +35%
Last Year:
$2.3 billion
Age:
61
Residence:
Beverly Hills
Source of Wealth:
Entertainment, media
Background:
He founded Saban Entertainment in 1980, and parlayed wealth from the kids’ TV shows the firm developed “Mighty Morphin Power Rangers” and “Teenage Mutant Ninja Turtles” into global telecommunications empire. He sold “Power Rangers” to News Corp. for half-ownership in Fox Family Network, then Walt Disney Co. subsequently snapped up Fox Family for $5.3 billion; Saban’s stake was $1.7 billion. He used this money to start up Saban Capital Group, a private equity investor. That firm bought 36 percent stake in German broadcaster ProSiebenSat1 from bankrupt Kirch Media in 2003. Last year, German regulators blocked a $5.2 billion sale of the broadcaster to German publisher Axel Springer but value of Saban Capital’s investment still tripled. The Egyptian-born Saban moved to Israel at age 12 and has become a major business player in that country. A friend of former President Bill Clinton, Saban is a major player in Democrat circles. He donated $7 million towards cost of national headquarters building for the party.
12.JOHN SHEA & FAMILY
Net Worth:
$3 billion +25%
Last Year:
$2.4 billion
Age:
79
Residence:
Pasadena
Source of Wealth:
Homebuilding, real estate
Background: The red-hot housing market has given a boost to the Shea family’s residential, commercial and mortgage businesses. J.F Shea Co. Inc. units develop and maintain commercial buildings and apartments, design and build homes and finance home purchases. Family patriarch John F. Shea started the company as an Oregon-based plumbing wholesaler in 1881. Shea also does tunneling and other major public works construction, including work on Washington, D.C. subway system, Golden Gate Bridge and Hoover Dam. Shea Homes is now the nation’s largest privately held homebuilder, posting more than $3 billion in revenues last year and selling nearly 7,000 homes. The unit has operations in California, Washington, Arizona and North Carolina. Shea Properties continues to be the company’s fastest growing segment. The subsidiary holds a portfolio of apartment buildings and shopping centers across the West Coast and Colorado valued at over $1.5 billion. John Shea owns 50 percent of the company; cousins Peter and Edmund share the rest.
12.ROBERT ADDISON DAY JR.
Net Worth:
$3 billion +76%
Last Year:
$1.7 billion
Age:
62
Residence:
Los Angeles
Source of Wealth:
Financial management
Background: Founded Trust Co. of the West in 1971 with $1.5 million. Trust Co. eventually became investment manager TCW Group. In 2001, Day sold a 51 percent interest to French bank Groupe Soci & #233;t & #233; Gen & #233;rale SA for $880 million in stock, more than 14 million shares. It turned out to be a very good deal. SG’s stock gained about 50 percent over the past 12 months, almost doubling Day’s fortune given the strength of the Euro against the dollar. Under the agreement, the French bank’s holdings in TCW increased to 70 percent by 2006. Day also owns a 1,800-acre resort in Los Cabos, Mexico, called Cabo del Sol, which includes two golf courses one designed by champion golfer/designer Jack Nicklaus. Resort has two premier hotels and a planned community on two miles of beachfront. He’s chairman of W.M. Keck Foundation, a $1.5 billion non-profit that makes grants for medical research, science and engineering. Maternal grandfather William M. Keck founded Superior Oil Co.
14. A. JERROLD PERENCHIO
Net Worth:
$2.8 billion +33%
Last Year:
$2.1 billion
Age:
75
Residence:
Beverly Hills
Source of Wealth:
Entertainment
Background:
Seldom-photographed head of Spanish-language media empire Univision Communications Inc. takes no salary; wealth rests on more than 37 million shares of Univision stock and a hefty chunk of Coca-Cola. Univision gained 34 percent this year fueled by popularity of Spanish-language media; the undisputed Spanish-language broadcasting leader is reportedly ready to sell 25 percent of itself to Mexican broadcaster Grupo Televisa SA for an estimated $12 billion to $14 billion, though investment consortiums that include Walt Disney Co. and CBS Corp. have also been mentioned. A former boxing promoter, Perenchio teamed with Emilio Azcarraga to buy Univision from Hallmark in 1992. Azcarraga then became head of Televisa, which provides programming to Univision. The two companies now compete with occasional lawsuits filed. Perenchio bankrolled first telenovela filmed entirely in Los Angeles. His Malibu Bay Co. owns about 30 acres of beach real estate in downtown Malibu. Sale of a 20-acre parcel along PCH to the City of Malibu was completed in March. A major political donor to both sides of the aisle, gave $4 million to each party last election; held a fundraiser for President Bush at his L.A. home.
14.STEVEN SPIELBERG
Net Worth:
$2.8 billion +8%
Last Year:
$2.6 billion
Age:
58
Residence:
Pacific Palisades
Source of Wealth:
Entertainment
Background:
Director of blockbuster films “Jaws,” “E.T.” and “Jurassic Park,” he also received best director Oscars for “Schindler’s List” and “Saving Private Ryan.” Started DreamWorks SKG with David Geffen and Jeffrey Katzenberg in 1994. After spinning off the studio’s animation unit, DreamWorks Animation SKG Inc., the trio sold the live action studio to Paramount last year. Reportedly collects 2 percent of gross sales at Universal parks in Florida as well as a piece of Universal Studios Japan receipts for consultant work, part of deal set up in the 1980s to reward Spielberg’s creative success. This year’s Oscar nomination for “Munich” was his 11th; he received the Irving G. Thalberg Memorial Award in 1986. Future film projects include “Indiana Jones 4” (directing) and “Jurassic Park IV” (producing). He’s now producing reality TV show “On the Lot” with Mark Burnett and designing video games for Electronic Arts. Founded Shoah Foundation to preserve memory of the Holocaust using video testimony. The foundation teamed up with USC earlier this year, transferring repository of 52,000 testimonies of survivors and other witnesses to the university. Arrived at 2006 Academy Awards in a Toyota Prius.
16. TOM GORES
Net Worth:
$2.3 billion +15%
Last Year:
$2 billion
Age:
41
Residence:
Beverly Hills
Source of Wealth:
Leveraged buyouts
Background:
Younger of highly competitive Gores brothers, Tom once worked for Alec but has surpassed him in wealth since leaving to form Platinum Equity, whose portfolio of 18 companies generates $12 billion in revenues. Last year Platinum sold ACR Logistics for $525 million in the process earning 10-times the firm’s equity investment. Other new purchases were US Robotics, American Racing Equipment, ESM Group, Turf Care Supply Corp., and Peak Technologies. Gores also owns office and residential properties in Malibu and Beverly Hills, including former headquarters of Global Crossing Ltd., which Tom and brother Alec unsuccessfully tried to buy in 2002. (Tom finally got piece of Global Crossing last year when Platinum bought Global’s small-business unit.) He purchased an 8-acre tract of prime land in Beverly Hills last year and is increasing investments in the entertainment industry. He backs Crescent Drive Entertainment, which released first film “The Lost City” this year, and 360 Pictures, a joint venture with Frank Mancuso Jr. The latter’s first film, “Crossover,” will be distributed by Sony and released in August.
17.EDWARD ROSKI JR.
Net Worth:
$2.3 billion +15%
Last Year:
$2 billion*
Age:
67
Residence:
Toluca Lake
Source of Wealth:
Real Estate
Background:
Roski’s Majestic Realty is the largest commercial developer in Southern California. The company developed Staples Center with Denver billionaire Philip Anschutz. Its portfolio includes around 60 million square feet. Roski made it big in industrial development in the gritty City of Industry, Commerce and Chino. His Industry business parks regularly sign leases for warehouse and distribution space in the tens of millions. He’s branched into gaming and his Silverton Casino and the adjacent 100 acres off the Las Vegas Strip are undergoing a $150-million expansion. Other Vegas development includes 424-acre Beltway Business Park with Thomas & Mack Co. and Northern Beltway, a 103-acre business park for 2.2 million square feet of heavy manufacturing and warehouses. Raised in Westchester, he played football at USC and served in Marines before joining family business in 1960s. Roski is part owner of pro hockey’s L.A. Kings and has small stake in the L.A, Lakers, the most valuable team in National Basketball Association.
*revised
18. RON BURKLE
Net Worth:
$2.2 billion +10%
Last Year:
$2 billion
Age:
53
Residence:
Beverly Hills
Source of Wealth:
Supermarkets, investments
Background: While he’s certainly had better publicity years, the billionaire’s investments may never have performed as well. A feud with New York Post gossip writer Jared Paul Stern has attracted attention to Burkle’s ongoing messy divorce, a court battle with daughter Carrie and the billionaire’s high-level political connections. Burkle says Stern tried to extort $220,000 from him in exchange for better press in the Post, an allegation Stern denies. On the positive side, Burkle continues to bet wisely on struggling businesses. The billionaire bought a 15 percent stake in Wild Oats Markets Inc. last year, which has since tripled in value. He also bought a 40 percent stake in Pathmark Stores Inc. that has risen 47 percent. In September, Burkle paid $100 million for Aloha Airlines, which was operating under Chapter 11 bankruptcy. Burkle and an investment group have since improved the airline, which last month convinced the federal government to pick up $117 million of the company’s $155 million under-funded pension. Burkle also invested a reported $100 million in rapper Sean Jean and his budding clothing empire, which recently inked a deal with Estee Lauder for a line of cologne. Burkle made his fortune buying up grocery chains such as Food 4 Less and Ralphs, before selling the supermarkets to Kroger Co. in 1999 for $13 billion. After exploring a potential purchase of portions of the Knight-Ridder Newspaper chain, Yucaipa is teaming with unions in attempt to buy Philadelphia Inquirer and Philadelphia Daily News. Burkle uses his Beverly Hills and La Jolla mansions to raise millions of dollars for Democrats.
19. ALFRED E. MANN
Net Worth:
$2.1 billion +31%
Last Year:
$1.6 billion
Age:
80
Residence:
Beverly Hills
Source of Wealth:
Biomed/biotech
Background:
Biotech’s leading entrepreneur, launching 11 companies and two non-profit foundations. Stayed on a roll last year. Latest company, biopharmaceutical firm MannKind Corp., went public in 2004 and his stake is now worth $500 million raising his net worth. Its lead experimental device, an inhalable insulin pump, is in late-stage clinical trials. Has turned Valencia into a small biotech hub with his Mann Biomedical Park, home to MannKind and several other start-ups in which he has a financial stake, including NeuroSystec Corp., which is working treatments for hearing-related disorders. Sold neural implant developer Advanced Bionics to Boston Scientific in 2004 for $4.5 billion over 10 years (netting about half). Founded diabetes treatment company Minimed and sold in 2001, along with Medical Research Holdings, to Medtronic for $4.2 billion. Plans to donate his entire fortune to charity and medical research. The Alfred E. Mann Foundation, founded in 1985, funds bionic medical research. Donated another $50 million in 2005 to his Alfred E. Mann Institute for Biomedical Engineering at USC. Plans to fund several more research institutions at U.S. and foreign universities, notably in Israel, where he has pledged $100 million to Technion-Israeli Institute of Technology. Chairman of the Southern California BioMedical Council, a regional industry group.
20. ROLAND ARNALL
Net Worth:
$1.8 billion -14%
Last Year:
$2.1 billion
Age:
67
Residence:
Holmby Hills
Source of Wealth:
Financial services
Background:
Appointed ambassador to the Netherlands in February, just weeks after his company, Ameriquest Mortgage Co., settled a lawsuit for $325 million that accused the company of unfair lending practices. Arnall founded Ameriquest Mortgage Co. in 1979 as a sub-prime lender called Long Beach Savings & Loan, which grew to become the nation’s largest provider of sub-prime mortgages. The company faced accusations of predatory lending, and settled with 49 state regulators in February without admitting wrongdoing; agreed to change some high-pressure lending practices. Stepped down as co-chair of Ameriquest’s holding company in October. Arnall donates heavily to Republican causes and reportedly raised more than $12 million for President Bush; also a big donor to Democratic former Gov. Gray Davis, who officiated his wedding in 2000. Ameriquest has a 30-year partnership with Major League Baseball’s Texas Rangers to name their ballpark Ameriquest Field. Partnership gives away 10,000 baseball tickets to underprivileged children. Trustee of the California State University system, and founding co-chairman of the Simon Wiesenthal Center and the Museum of Tolerance. Owns 650-acre ranch in Aspen, Colo.
21.ANTHONY PRITZKER
Net Worth:
$1.7 billion +13%
Last Year:
$1.5 billion
Age:
45
Residence:
Holmby Hills
Source of Wealth:
Hospitality, investments
Background:
Pritzker’s grandfather, Abram Nicholas, planted the seed for a family fortune estimated at $15 billion by buying and selling distressed properties in Chicago. Pritzker’s father and uncle went on to establish the Marmon Group, a conglomeration of manufacturing and service companies that racked up revenues of $6.3 billion in 2004. Also started the Hyatt chain in 1957 after picking up a hotel near LAX. The family agreed to divide its wealth 11 ways after a succession plan imploded. The family also owns a large stake in Royal Caribbean Cruises. Pritzker and brother, J.B., are managing partners at the Pritzker Group, an L.A. private equity firm that invests in the manufacturing, distribution and service industry. Came to Southern California to turn around a local company the family had bought. Like his grandfather, Pritzker largely stays out of the press. Participates in triathlons and marathons. Graduated from Dartmouth College with a degree in engineering; got an M.B.A from University of Chicago, where medical school is named after the family.
21.CHARLES T. MUNGER
Net Worth:
$1.7 billion +6%
Last Year:
$1.6 billion
Age:
82
Residence:
Los Angeles
Source of Wealth:
Investments
Background:
The investor and longtime friend of Warren Buffett saw a small rise in his wealth as Berkshire Hathaway’s shares rose about 5 percent the past 12 months. Has about 16,000 shares of Berkshire, where he is vice chairman. Also is chairman and chief executive at Wesco Financial (80 percent Berkshire-owned), which has seen stock price increase on improved net income. Sits on the board of Costco Wholesale Corp. Known for demanding analysis of investments. Past donations include $43.5 million in Berkshire stock to Stanford University to help construct graduate student residence, $21 million to fund a wing at Huntington Library in Pasadena and 100 shares of Berkshire stock to private Harvard-Westlake School in 2003.
21.FRANKLIN OTIS BOOTH JR.
Net Worth:
$1.7 billion +6%
Last year:
$1.6 billion
Age:
82
Residence:
Bel Air
Source of Wealth:
Investments
Background:
The great-grandson of Times Mirror founder Harrison Gray Otis still holds roughly 17,000 shares of Berkshire Hathaway, valued at close to $90,000 each. Entered college at age 16, received engineering degree from Cal Tech and MBA from Stanford. After a stint as vice president of Los Angeles Times, he left to start a printing business that failed. Met Charles Munger, invested $1 million in Buffet’s Berkshire Hathaway in 1963. Real estate holdings include more than 5,000 acres of orange groves and 4,000 acres of cattle ranch. His expanding Otis Orchards is now one of the largest independent orange growers in California. He hired daughter Loren as the orchard’s general manager. Married to Lynn Hirsch, widow of Newport businessman Clement Hirsch. Enjoys fly-fishing and hunting and flies his own Learjet.
24. JOHN E. ANDERSON
Net Worth:
$1.6 billion +14%
Last Year:
$1.4 billion
Age:
88
Residence:
Los Angeles
Source of Wealth:
Investments
Background:
Owner of Topa Equities, holding company for more than 40 firms. Commercial real estate and insurance investments continue to increase in value. Other holdings include wholesale beverage distributors, car dealerships and agriculture. He is the largest landowner in Westwood Village and Montana Avenue shopping area in Santa Monica. Recently purchased additional land in Hawaii, where he has beer distribution warehouses. In 1998, sold what is now Mellon 1st Business Bank and netted $180 million. Currently sits on the bank’s board of directors. Donated $15 million in 1987 to alma mater UCLA to become namesake of the Anderson School of Business. The son of a Minneapolis barber, he received BA in business administration at UCLA on hockey scholarship. Received MBA from Harvard University, enlisted in the Navy and passed the CPA exam on shore leave. Got law degree from Loyola at night. Started Ace Beverage Co. in 1956, an early distributor of Budweiser. In 2003 he was inducted into the Business Journal’s Business Hall of Fame as Businessman of the Year.
25.GEORGE RANDOLPH HEARST JR.
Net Worth:
$1.6 billion +14%
Last Year:
$1.4 billion
Age:
79
Residence:
Los Angeles
Source of Wealth:
Inheritance, media
25. DAVID HEARST JR.
Net Worth:
$1.6 billion +14%
Last Year:
$1.4 billion
Age:
61
Residence:
Beverly Hills
Source of Wealth:
Inheritance, media
Background: Cousins George and David are heirs to the fortune built by grandfather, media tycoon William Randolph Hearst, and great-grandfather, gold and silver mine owner George Hearst. George is board chairman of the privately held Hearst Corp. and a director of the public Hearst-Argyle Television Inc. Also is a trustee of the Hearst
25.DAVID HEARST JR.
Net Worth:
$1.6 billion +14%
Last Year:
$1.4 billion
Age:
61
Residence:
Beverly Hills
Source of Wealth:
Inheritance, media
Background:
Cousins George and David are heirs to the fortune built by grandfather, media tycoon William Randolph Hearst, and great-grandfather, gold and silver mine owner George Hearst. George is board chairman of the privately held Hearst Corp. and a director of the public Hearst-Argyle Television Inc. Also is a trustee of the Hearst Family Trust, president of The Hearst Foundation, Inc. and a director of the William Randolph Hearst Foundation. David maintains a quieter role as a private investor. Both men are regular contributors to Republican Party groups. Despite an overall flat year for the newspaper industry, the iconic media family did well last year in large part because of its diversified media investments. The Hearst Corp. has interests in newspapers and magazines, as well as newspaper comics, features syndication and Internet activities; Hearst Corp.’s 20 percent interest in Disney’s Co.’s growing ESPN franchise continues to pay off, as well its holdings in Lifetime Television and the A & E; Network. The company in March acquired 20 percent of Fitch Group, parent of the Fitch credit ratings service, for $592 million.
27. GARY MICHELSON
Net Worth:
$1.5 billion +7%
Last Year:
$1.4 billion*
Age:
57
Residence:
Los Angeles
Source of Wealth:
Surgical devices
Background:
Spinal surgeon and prolific inventor won a $1.3 billion settlement from Medtronic Inc. in 2005, ending four-year patent dispute. Michelson invented medical devices that advanced back surgery techniques, allowing for less invasive procedures and improved healing times. He’s since invested more than $100 million to form two foundations. His Found Animals Foundation is working with Los Angeles officials to create more humane animal control services through systematic population control. The Gary Karlin Michelson Charitable Trust is providing grants for medical research such as cystic fibrosis. The Philadelphia native came to L.A. in 1980 and went into spinal surgery because grandmother suffered from rare spinal condition. Worked at Centinela Hospital Medical Center while developing surgical instruments on the side. Holds 600 U.S. and foreign patents for inventions. Founded Karlin Technology Inc. to manufacture devices. Medtronic lawsuit stemmed from a licensing disagreement between Karlin and Medtronic subsidiary. Settlement gives Medtronic ownership of more than 100 of Michelson’s U.S. patents and 110 pending patent applications, plus rights to Michelson’s future spinal inventions for the next 15 years. Net worth has not changed substantially but has been revised upward to reflect new information.
*revised
28. ALAN CASDEN
Net Worth:
$1.5 billion +25%
Last Year:
$1.2 billion
Age: 59
Residence:
Beverly Hills
Source of Wealth:
Real estate
Background:
One of L.A.’s more aggressive developers, Casden’s holdings have grown nearly 40 percent in last two years. The former accountant got into real estate in 1975. He assembled a large portfolio of apartments, which he sold five years ago to Apartment Investment & Management Co. (Aimco) for $1.5 billion. This year he received the first installment of a two-year, $125 million consulting contract with Aimco. Work continues on Casden’s $300 million mixed-use project, Palazzo Westwood. This year Casden put his portfolio of Wilshire Boulevard office buildings up for sale and embarked on some high-profile projects. Casden Properties bought a parcel on Wilshire Boulevard near high-end department stores in Beverly Hills where the company wants to build a mixed-use project with luxury condos. Also picked up Trader Joe’s-anchored strip mall in West Hollywood on Santa Monica Boulevard, where firm is working on mixed-use project that would contain condos and a replacement grocery store. Casden continues to spar with his brother Henry, who has sued to recover severance and unpaid dividends after leaving Alan’s real estate company. He’s drawn fire from neighbors for renting out apartments near the Grove as hotel rooms. He wants to nix an earlier deal to develop senior housing at complex, another point of controversy.
29. LESLIE GONDA
Net Worth:
$1.3 billion +18%
Last Year:
$1.1 billion
Age:
86
Residence:
Beverly Hills
Source of Wealth:
Aircraft leasing
Background:
Last year’s rebound of American International Group, in which he owns 19 million shares, restored more than $200 million of Gonda’s wealth. The embattled insurance giant sank like a stone during accounting difficulties of 2004, but 2005 offered the company prosperity under new leadership. He founded International Lease Finance Corp. with son Louis and friend Steven Udvar-Hazy in 1973 with $1.7 million bank loan and $150,000. Sold company to AIG for stock in 1990. Retired as director in 2003. Gives generously to philanthropic causes through the Leslie and Susan Gonda (Goldschmied) Foundation. Favorite charities include Ben-Gurion University and Bar-Ilan University in Israel, UCLA, Mayo Clinic and City of Hope. Favorite causes include research for diabetes, neuroscience and genetics. Born in Hungary, Gonda is a Holocaust survivor who fled to Venezuela after World War II before coming to the United States.
29. LOUIS GONDA
Net Worth:
$1.3 billion +8%
Last Year:
$1.2 billion
Age:
57
Residence:
Beverly Hills
Source of Wealth:
Aircraft leasing
Background: His wealth notched up a little this year pushed by stock rebound of embattled insurance giant American International Group Inc. Co-founded International Lease Finance Corp. with partners Steven Udvar-Hazy and father Leslie Gonda in 1973; sold to AIG for stock in 1990. Founded real estate firm Lexington Commercial Holdings, which is a partner on two current, mixed-use projects in Beverly Hills involving luxury hotel, condominiums and office space. Entered the entertainment business with Lexington Entertainment Group; established partnership with Miramax in 2003 to launch state-of-the-art facilities to provide high-end digital editing. Owns post-production shops Outpost Digital and Post Logic Studios. Started venture capital fund Lexington Ventures LLC with $150 million in 2000. Born in Venezuela.
29.DONALD STERLING
Net Worth:
$1.3 billion +18%
Last Year:
$1.1 billion
Age:
72
Residence:
Beverly Hills
Source of Wealth:
Real estate
Background:
Owner of the Los Angeles Clippers had his first winning season in more than a decade topped off with a playoff run. Despite reputation as perennial loser, team has been one of the most profitable in the NBA. Keeps payrolls down and profits up though winning has come at price: he’s been signing heftier player contracts as of late and is building a $200 million practice facility in Playa Vista. Owns about 100 apartment buildings in Southern California. Properties include Beverly Hills Plaza Hotel, Malibu Beach Club, and Art Deco building on Wilshire Boulevard, where he keeps offices of Donald Sterling Corp. Lost suit in 2004 over alleged discrimination against blacks and Latinos under the Fair Housing Act by trying to rent to Koreans only. (Wife Rochelle was caught on tape impersonating health official to gain access to tenant apartments to determine ethnicity, according to court documents.) In November, ordered to pay nearly $5 million in plaintiff’s attorneys’ fees from case and was fined $30,000 for refusing to disclose his net worth in the lawsuit. Bought Clippers in 1981 for $12.5 million; after more than 25 mediocre-to-losing seasons; team is estimated to be worth more than $250 million with its first playoff season in recent memory. Tickets cost an average of $40, far below other NBA teams.
29. GEORGE JOSEPH
Net Worth:
$1.3 billion +8%
Last Year:
$1.2 billion
Age:
84
Residence:
Los Angeles
Source of Wealth:
Insurance
Background:
Founded Mercury Casualty Corp. in 1961, changed name to Mercury General Corp. when went public in 1985. Has served as Mercury’s chairman and chief executive since founding company. Owns 34 percent of shares, which are up 5 percent since last May, but down 10 percent since the beginning of the year. Stock dividends continue to increase, up 12 percent over 2005. Mercury became third largest auto insurer in California in 2003, with total assets over $3 billion. Mercury writes auto insurance in 13 states across the country. Also writes mechanical breakdown and homeowners insurance in various states. Stock took a hit in first quarter when announcement was made that the company would take a $15 million charge after taxes due to a state ruling that disallowed some company expenses. Harvard-educated numbers man, completed degrees in math and physics in less than three years. Started career as actuarial trainee at Occidental Life, grew envious of paychecks in sales department and subsequently became an entrepreneur.
29. MICHAEL MILKEN
Net Worth: $1.3 billion +30%
Last Year:
$1 billion
Age:
59
Residence:
Los Angeles
Source of Wealth:
Investments
Background:
Involved in philanthropy since the early 1970s, Milken has donated $750 million dollars personally and through foundations to medical and education programs. Diagnosed with prostate cancer in 1993, now in full remission. Ten family members have died from cancer. Founded think tank FasterCures/The Center for Accelerating Medical Solutions, which works to shorten time to find cures and improve treatment for diseases through economic incentives and regulatory efficiencies. Has personally contributed $80 million to the think tank. Co-founded with brother, Lowell, the Milken Institute, a nonpartisan advocacy think tank. Attained undergraduate degree at Berkeley and MBA at Wharton. Started in 1969 at Drexel Burnham Lambert, where he pioneered the use of junk bonds to finance corporate takeovers, earning hundreds of millions of dollars in the process. Had spectacular downfall after being indicted on securities fraud charges and pleading guilty to six felony counts; served 22 months in prison and paid $200 million in fines. Presents 100 outstanding teachers a year with a $25,000 check to recognize their work.
34. ROY E. DISNEY
Net Worth:
$1.2 billion +20%
Last Year:
$1 billion
Age:
76
Residence:
Toluca Lake
Source of Wealth:
Inheritance, entertainment, private equity
Background:
The former Disney director led a successful shareholder revolt against longtime Disney chief Michael Eisner, and has nothing but praise for Eisner successor Robert Iger, who took over in September. Disney, the nephew of Walt Disney remains the largest individual owner of Disney common shares at 0.87 percent; that stake has appreciated over the past year as the share price rose 9 percent. He’s chairman of the family’s private investment company, Shamrock Holdings Inc., with an estimated $2 billion under management. Shamrock tends to specialize in Israeli businesses and California real estate, so it raised eyebrows last September when it acquired an 80 percent stake of the legendary Harlem Globetrotters basketball team from owner Manny Jackson. Another Shamrock fund in March increased its stake in Collector Universe Inc., which determines the authenticity and worth of collectibles, to 6.4 percent. An avid sailor, he spends a lot of time in New Zealand racing his 77-foot yacht. Also owns 747 aircraft and a castle in Ireland.
34. ALEC GORES
Net Worth:
$1.2 billion
Last Year:
$1.2 billion
Age:
53
Residence:
Beverly Hills
Source of Wealth:
Leveraged buyouts
Background:
Gores Technology Group acquires two to three tech or telecom companies a year, usually assuming full ownership of companies with $10 million to $1 billion revenues and either selling them or taking them public. Gores Technology had revenues last year of around $2 billion, almost unchanged from previous year. One of the largest deals was sale of MPC Computers to HyperSpace Communications Inc. Gores also bought Avure Technology from Flowe International for $15.5 million and Gore’s Proxicom Inc. paid $21.6 million for Daov Systems Inc. Highly competitive brothers Tom and Alec worked together until Tom founded Platinum Equity in 1995; unsuccessfully bid together for assets of Global Crossing Ltd. in 2002. Alec hit it big with 2002 acquisition of educational software developer Learning Co. from Mattel Inc. for no cash and a share of future profits. Sold business a year later to Riverdeep Group Plc for $40 million in stock and $20 million in debt. Alec founded the company in the late 1980s after selling off computer systems business he had started in his father’s basement.
36. MING HSIEH
Net Worth:
$1 billion
Last Year:
Not on list
Age:
49
Residence:
Los Angeles
Source of Wealth:
Fingerprint identification software
Background: Hsieh started out as a research and development engineer for chip-maker International Rectifier Corp. in 1985, fresh out of grad school at USC, where he earned bachelor’s and a master’s degree in electrical engineering. Founded his first technology company in 1987, AMAX Technology, which lasted three years. Founded South Pasadena-based Cogent in 1990, which developed automated fingerprint identification technology that can quickly match a print to a database of millions. Company raised almost $250 million in an initial public offering in 2004; grew into a $1.7 billion company last year. Hsieh owns 55 percent of outstanding shares. Cogent has a lock on border security through contracts with the U.S. Dept. of Homeland Security, the governments of Venezuela and Jordan, and the Italian police. Company is also making inroads into retailers and financial institutions by enabling credit card transactions using fingerprint scanners. Born in China, Hsieh is a U.S. citizen.
36. WILLIAM BARRON HILTON
Net Worth:
$1 billion
Last Year:
$1 billion
Age:
78
Residence:
Holmby Hills
Source of Wealth:
Hotels
Background:
Shares chairmanship of Hilton Hotels Corp. with Stephen Bollenbach, the company’s chief executive since 1996. Hilton underwent a major transformation this year, acquiring its European counterpart, Hilton Group plc, for around $6 billion. Since the purchase, Hilton shares have marched upward toward $27, but only after diving under $20 at the end of last year. Recently retired from the board of Harrah’s Entertainment Inc. Harrah’s $9.4 million buyout of Caesars Entertainment, in which Hilton held a large personal stake, was finalized last month. First business was Los Angeles area distributorship of Vita-Pakt Citrus Products, an orange juice business that processed and delivered juice to homes. Joined Hilton Hotels, the company started by his father, in 1954, became chief executive in 1966 and chairman in 1979. Today, Hilton has about 2,800 hotels in more than 80 countries. Has extensive personal property holdings, including half-million-acre Flying M Ranch in Nevada. An aviation buff, has backed efforts to fly hot air balloons around the world.
38. JOHN TU
Net Worth:
$980 million +23%
Last Year:
$800 million
Age:
65
Residence:
Rolling Hills
Source of Wealth:
Computer memory
Background:
Strong year for the co-founder of Orange County computer memory maker Kingston Technology Co. Revenues were up by about a third, hitting the $3 billion mark. Founded the company with friend David Sun. Partners made fortune by selling 80 percent of Kingston to Japan’s Softbank Corp. for $1.5 billion in 1996. Tu then gave $100 million in employee bonuses. Three years later, the pair bought Kingston back for $450 million. Tu and Sun are still equal partners. He lives in Rolling Hills and commutes to office in Fountain Valley. Born in China, moved to U.S. in 1972. Married with two children, Tu is an Elvis fan and plays drums in his own band with professional musicians. Has a degree in electrical engineering from Technische Hochschule Darmstadt in Germany. Kingston and Sun founded a computer memory chip-maker called Comantonn in the 1980s and sold it to a tech research firm.
39.FREDERICK W. ‘TED’ FIELD
Net Worth:
$950 million -14%
Last Year:
$1.1 billion*
Age:
53
Residence:
Beverly Hills
Source of Wealth:
Inheritance, entertainment
Background:
Made his money the old-fashioned way: by wrestling with half-brother in court over the inheritance of Marshall Field & Co. department store, founded by his father. Brought fortune to Los Angeles, started Interscope Records; sold to Universal Music for $330 million in 1995. Interscope represents rock giants such as U2 and hip-hop acts Eminem and 50 Cent. Bought motion picture equipment maker Panavision Inc. in 1982, sold it in 1987 now owned by cosmetics magnate Ron Perelman. Field also founded Radar Pictures and Radar Records, and has been executive producer for more than 60 Hollywood movies. As chairman and chief executive of online firm ArtistDirect Inc. in 2001, he launched an Internet music label at the height of the illegal download controversy. It was tough going: company lost $45 million early, never made it back. Company sold all trademarks and trade names to Apple Computer Inc. this year for $500,000. Radar Records took over all outstanding shares of common stock for a paltry $115,000.
*revised
39. STEWART RESNICK
Net Worth: $950 million +7%
Last Year:
$890 million
Age:
68
Residence:
Beverly Hills
Source of Wealth:
Collectibles, agriculture
Background:
Resnick started his empire with the Franklin Mint, but the collectibles company is now a much smaller part of the business. Has turned Roll International Corp., which he and his wife Lynda founded in 2000, into a marketing powerhouse. Began by buying up and planting pomegranate groves, then creating a new juice, POM Wonderful. The anti-oxidant-heavy drink in the funny-shaped bottle has become the nation’s top-selling premium juice brand since 2003. Also owns Paramount Farms, the country’s biggest almond and pistachio grower and processor. Last year was a record pistachio crop, with the nut prices hitting 20-year highs. Paramount Citrus is the biggest grower in the Sunkist grower’s cooperative. Selling nuts under the Sunkist brand enables Paramount to charge a premium. Began professional life as an attorney after running a janitorial business to put himself through law school. He and his wife recently donated $15 million to UCLA’s neuropsychiatric hospital, renamed in their honor in September. Member of the board of trustees at Cal Tech University. An avid art collector, he specializes in 17th and 18th century French and Italian works. Donates heavily to Democratic Party.
41. NEIL KADISHA
Net Worth:
$910 million +30%
Last Year:
$702 million
Age:
50
Residence:
Beverly Hills
Source of Wealth:
Telecommunications, investments
Background:
Merged satellite-communications company Omninet with Qualcomm Inc. in 1988. Primary source of wealth is his 14 million Qualcomm shares, which had a good year. Stock surged nearly 48 percent over 12 months, but remains significantly off January 2000 peak. Retired from Qualcomm board in 2000. Chief executive of Beverly Hills investment firm Omninet Capital LLC, which he founded with Benjamin and Parviz Nazarian. The firm, which the trio started with $100 million of their own capital, invests in real estate, private equity and venture capital. Newest venture is Altra Inc., an L.A.-based ethanol producer, which raised $50 million this year from Omninet and four other investors. He is majority shareholder in Sky Las Vegas, a $325 million condominium project on Las Vegas Strip, which is 80 percent sold. Active in local community, he’s a trustee of the Jewish Federation of Greater Los Angeles and serves as director of Phoenix House, an organization for teenage drug use prevention, treatment and education. Donates to Israeli charities for homeless teenagers, abused children and school systems.
42. STEPHEN L. BING & FAMILY
Net Worth:
$900 million -10%
Last Year:
$1 billion
Age:
41
Residence:
Beverly Hills
Source of Wealth:
Inheritance, real estate, entertainment
Background:
Bing’s grandfather, Leo S. Bing, was a real estate magnate who sprinkled New York with upscale apartments in the 1920s; has a theater at the Los Angeles County Museum of Art named after him; left some $600 million to his grandson. Bing has been busy this year pouring his money into movies and politics. A top donor to the Democratic Party and various political issues, Bing is working with Silicon Venture capitalist Vinod Khosla, an ethanol advocate, to push an initiative that would tax oil producers to fund alternative energy sources. His $4.2 million donation was the largest made by any opponent of Proposition 77, the California proposal that that would have put redistricting in the hands of a judges panel. Bing’s political donations have made him a Democratic power player, and Senate minority leader Harry Reid, D-Nev., has invited him to strategy meetings. Bing, with his production company Shangri-La Entertainment, has his fingers in many movies, including the yet-to-be-released “Beowulf.” Bing risked an estimated $80 million to invest in “Polar Express,” which turned out to be a win for him with around $285 million in global box office take. Notoriously press shy, Bing nonetheless turned up in the headlines after a paternity dispute with former girlfriend, model and actress Elizabeth Hurley. That ended when DNA tests confirmed Bing was the father of Hurley’s son, Damien. Bing was also involved in another dispute, now settled, with Chrysler baron Kirk Kerkorian after Kerkorian accused Bing of fathering his ex-wife’s child.
43.LOWELL J. MILKEN
Net worth:
$880 million +10%
Last year:
$800 million
Age:
57
Residence:
Los Angeles
Source of Wealth:
Investments
Background:
Chairman of the Milken Family Foundation, which focuses on education and medical research. Started Teacher Advancement Program Foundation, aimed at improving teaching profession. An active investor nationally and internationally, he’s CEO of Knowledge Universe Education LLC, the largest early childhood education company in the U.S. Involved in international real estate, chairing London-based Heron International, a property investment and development company, as well as owning numerous businesses in industrial, commercial and golf real estate. Co-founded Milken Institute, a non-partisan think tank. Created the Milken Archive for American Jewish Music in 1990, historic recording project to document music reflecting Jewish life in America. Graduated from Berkeley; received law degree from UCLA and joined L.A. firm Irell & Manella. He left in 1978 when older brother, Michael, moved to L.A to specialize in distressed securities investing at Drexel Burnham Lambert. Like his brother, indicted for securities fraud but the charges where dropped when his brother pleaded guilty.
44. TOM WERNER
Net Worth:
$875 million +3%
Last year:
$852 million
Age:
56
Residence:
Pacific Palisades
Source of Wealth:
Entertainment
Background:
Werner and partner Marcy Carsey decided to shut down their television production house in 2005. The last of the major independent TV studios to handle all production and distribution functions was having difficulty selling pilots to networks, which were more frequently wanting an ownership stake. Carsey-Werner is still producing Fox’s “That 70’s Show” and decided to keep its blockbuster program library which includes “The Cosby Show” and “Roseanne” after having UBS shop it. While Carsey has stayed below radar, Werner has launched a TV production venture with manager-producers Eric Gold and Jimmy Miller. That company has a two-year development and production deal with Warner Bros. Werner has a sports interest as chairman of Boston Red Sox, which he bought with former Florida Marlins owner John Henry in 1999. After Red Sox broke an 84-year drought by winning the 2004 World Series, the franchise was revalued at $617 million by Forbes.
45. FRANK & JAMIE McCOURT
Net Worth:
$860 million
Last Year:
Not listed
Ages:
Both 52
Residence:
Holmby Hills
Source of Wealth:
Real Estate, Los Angeles Dodgers
Background:
When he bought the Dodgers two years ago from News Corp. for $420 million, he was criticized in the media for borrowing most of the money from News Corp. to buy the team. Fans and critics lambasted McCourt for not having the cash to field a winning roster. However, McCourt and his wife, Jamie, actually have vast real estate holdings. Besides various residences and vacation homes, the couple owns a 1 million-square-foot high-rise in Boston’s financial district and a 100-acre Cape Cod estate. He also continues to develop projects through his company, McCourt Co., which is relocating to L.A. from Boston this year. Since buying the team, he’s paid back the News Corp. loans and the franchise turned a $50 million profit last season mostly by reworking TV deals. The Dodgers are worth about $500 million and carry about $250 million in debt. McCourt owns the 275 acres in Chavez Ravine surrounding the stadium, and he indicated a desire to develop the area when he purchased the team.
46.JEFFREY KATZENBERG
Net Worth: $859 million -9%
Last Year:
$942 million
Age:
55
Residence:
Beverly Hills
Source of Wealth:
Entertainment
Background:
It was a tough year for the chief executive of DreamWorks Animation SKG Inc. The former prot & #233;g & #233; of Michael Eisner ran into trouble with the Securities and Exchange Commission, which launched an informal investigation last year into DreamWorks Animation after the company overestimated DVD sales for “Shrek 2.” News reports said that Katzenberg had warned insiders that the company would miss earnings forecasts before an announcement of the probe was made. The news sent shares of DreamWorks Animation down 35 percent in the past year and a $500 million secondary offering was canceled. Though “Madagascar” was a hit, “Wallace & Gromit” fizzled at the box office. On the upside, Katzenberg received a hefty payout for his portion of DreamWorks SKG, the Glendale-based studio founded with Steven Spielberg and David Geffen that was sold to Viacom Inc.’s Paramount Pictures for a lofty $1.6 billion. Katzenberg is a vocal critic of an SEC proposal that would require companies to disclose more details about executive pay packages and perks. He claimed such information would “undermine employee morale.”
47. MEL GIBSON
Net Worth:
$850 million
Last Year:
Not on list
Age:
50
Residence:
Malibu
Source of Wealth:
Entertainment
Background: Inspired by personal religious beliefs, the writer, director and producer scored with his self-funded 2004 film, “The Passion of the Christ.” Criticized as anti-Semitic and relentlessly bloody, and lacking a major distributor, the film nonetheless grossed more than $600 million at the worldwide box office when independent Newmarket finally released it. The DVD, goosed by group sales to churches, raked in another $200 million. The actor, born in New York and raised in Australia, got his first big break with the film “Mad Max” and has starred in numerous blockbusters including the “Lethal Weapon” franchise, “Braveheart,” “Ransom” and “Signs.” He purchased the 5,400-acre island of Mago in Fiji for $15 million last year and has spent millions building a church in Malibu to practice his fundamentalist form of Catholicism, which broke with Rome after early Vatican II changes in early 1960s.
48.AUBREY CHERNICK
Net Worth:
$775 million +10%
Last Year:
$705 million
Age:
57
Residence:
Los Angeles
Source of Wealth:
Software
Background:
Founded closely held Candle Corp. in 1976, a software vendor whose products worked with IBM mainframe systems. Firm grew 2,000 employees. In 2004 he sold Candle to IBM Corp. for $641 million. Candle’s products were used at 75 percent of Fortune 500 companies, including Coca-Cola, Ford and McDonald’s. Declining mainframe market caused company to lose money for years, leading to massive layoffs in 2001. After IBM acquisition, hundreds of laid-off Candle employees received $1,000 checks for every year on the job. Remaining 800 employees work for IBM. Born in L.A., grew up in Canada, earned chemistry degree from University of Manitoba. As student, developed software for Manitoba government. Now serves as chief executive of NC4, “National Center for Crisis and Continuity Coordination,” a company that provides crisis management solutions. Advises Dept. of Homeland Security on terrorism-readiness. Chernick founded the Candle Foundation in 1982 to aid medical research, hunger and homelessness. Started PC Works in 1995, an organization that teaches inner-city youth and young adults to refurbish computers and peripherals, donating the systems to non-profits. Has invested $3.5 million in Pajamas Media, a new venture that joins bloggers, journalists and commentators on a single site.
49. PETER LOWY
Net Worth:
$770 million +10%
Last Year:
$700 million
Age:
47
Residence:
Los Angeles
Source of Wealth:
Real estate
Background:
This son of Westfield Group founder Frank Lowy moved to the United States in 1990 and serves as managing director of the U.S. operations for the world’s largest retail property outfit. His actual share of family’s fortune, estimated at more than $3 billion, is unclear because it is jointly owned with father and two brothers. Westfield has interests in 128 shopping centers valued at $38 billion in the United States, Australia, New Zealand and the United Kingdom. Westfield stock price is up slightly from last year and the value of the Australian dollar is up compared to the U.S. dollar. The company is looking at ways to fill space opened by the May/Federated merger. Locally, it spent $150 million renovating the Westfield Century City, which it acquired in 2002. American subsidiary contributed $420 million in April 2001 to developer Larry Silverstein’s $3.2 billion bid for a 99-year lease on the World Trade Center. Westfield gained rights to manage the shopping center beneath the complex. It sold its interest in the World Trade Center to the New York Port Authority in 2003 to simplify the rebuilding process, but retains right of first offer should the Port Authority offer the space to a third party.
50.ROBERT PETERSEN
Net Worth:
$760 million +6%
Last Year:
$716 million
Age:
79
Residence:
Beverly Hills
Source of Wealth:
Publishing
Background:
At age 21 launched Hot Rod magazine, the first title for Petersen Publishing. Sold copies out of the back of his 1931 Ford truck. Started Motor Trend a year later, and went on to launch 60 specialty magazines, including Guns & Ammo. Sold publishing empire for $463 million in 1994, but kept 3.6 million shares, which he later sold for $122 million to a British publisher. Used $5 million of proceeds to found the Petersen Automotive Museum on Wilshire Boulevard and later paid off its bond debt. The long-time car buff also owns Bismuth Cartridge, a $20 million, environmentally friendly shotgun ammunitions maker, and Petersen Aviation, a corporate fleet of five private jets at Van Nuys airport. Has amassed major holdings in gold, which has shot up more than 45 percent over the past year, hitting $635 per ounce its highest mark since the 1980s. Sold his 19,000-acre La Panza ranch near Paso Robles (said to have been a Jesse James hideout) for $14.5 million. Avid collector of Old West outlaw memorabilia. Member of the board of governors for the International Chili Society, a non-profit organization dedicated to promoting the appreciation of good chili through nationwide competitions.
