26. Alec Gores

NET WORTH: $3.2 billion
AGE: 67
RESIDENCE: Beverly Hills
SOURCE OF WEALTH: Private equity
LAST YEAR: $3.3 billion
CHANGE: -3%

THE MONEY: Alec Gores’ net worth slipped slightly this year due to declines in the value of some investments made by his special purpose acquisition companies. Gores Holdings III, Gores’ third blank-check company, completed a $400 million initial public offering in late 2018. In February, it acquired defense and government services contractor PAE. By July, PAE’s share price had fallen roughly 16%. Verra Mobility, which was acquired by Gores Holdings II in 2018, also took a significant hit this year. That company’s stock lost more than 65% of its value between February and March, although it has since recovered somewhat.

THE BUZZ: Gores closed his largest SPAC raise at the start of 2020. Gores Holdings IV completed a $425 million IPO in January, although the company has yet to identify an investment target. Gores Metropoulos Inc., which tied with Gores Holdings III as the billionaire’s second-largest SPAC to date when it closed a $400 million IPO last year, also has yet to announce a target. Because SPACs typically have two years to complete a deal before they are dissolved, Gores Metropoulos has roughly six months left to allocate its capital. Alec Gores, who started his private equity firm in 1987, is the older brother of Tom Gores, another member of the Wealthiest Angelenos list.

Return to the 2020 edition of the LA500.

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