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Wilbur RossAmerican investor and banker
Date of Birth: 28.11.1937
Country:  USA |
Content:
- Wilbur Ross: The 'King of Bankruptcy'
- Early Career in Crisis Management
- WL Ross & Co. and Investments in Distressed Assets
- Notable Acquisitions and Investments
- Legal Disputes and Controversies
- Government Roles and Political Affiliations
- Personal Life
- Art Collection and Philanthropy
Wilbur Ross: The 'King of Bankruptcy'
Early Life and EducationWilbur Louis Ross Jr. was born on November 28, 1937, in Weehawken, New Jersey, to an affluent family. His father was a lawyer who became a judge, while his mother was a schoolteacher. Ross commuted two hours each day to attend Xavier High School, an elite Jesuit institution. He was an avid athlete and captained the school's rifle team.
Wilbur earned his bachelor's degree from Yale College, his father's alma mater. Initially intending to become a writer, he realized he "ran out of steam" after a creative writing class required him to produce 500 words per day. A Yale mentor helped him secure his first summer internship on Wall Street. Ross went on to obtain an MBA from Harvard Business School.
Early Career in Crisis Management
In the late 1970s, a 24-year-old Ross joined N M Rothschild & Sons, where he became an expert in crisis management during bankruptcies. In the 1980s, Donald Trump faced financial distress, and his three Atlantic City casinos were on the verge of being taken over by creditors. Ross, then a senior managing director at Rothschild Inc., and tycoon Carl Icahn persuaded Rothschild's bondholders to strike a deal with Trump, enabling him to retain the casinos.
WL Ross & Co. and Investments in Distressed Assets
In the late 1990s, Ross raised a $200 million private equity fund to invest in "distressed assets." As the US stock market declined, Wilbur found himself increasingly drawn to investing rather than advising. In 2000, the 62-year-old banker raised $450 million to buy back the fund from Rothschild and further invest in distressed assets.
The new firm, WL Ross & Co., featured an investment committee of four executives alongside Ross: David Storper, who handled trading; David Wax, a veteran human resources expert; Steven Toy, who specialized in Asian markets; and Pamela Wilson, a veteran of J.P. Morgan & Co. WL Ross & Co. was acquired by Amvescap (now Invesco) in 2006.
Notable Acquisitions and Investments
Ross founded International Steel Group in 2002, acquiring assets from bankrupt steel companies. He sold International Steel Group to Mittal Steel Company for $4.5 billion (50% in cash, 50% in stock) in April 2005.
Following the bankruptcy of several coal companies, Wilbur founded International Coal Group. The reorganization faced opposition from the United Mine Workers of America due to changes in healthcare and pension benefits for workers. In 2011, International Coal Group was acquired by Arch Coal for $3.4 billion.
Legal Disputes and Controversies
In February 2014, Ross paid $81 million to settle a lawsuit brought by his shareholders, who alleged that he breached fiduciary duties in a merger transaction involving two companies he had significant interests in: Safety Components International Inc. and International Textile Group Inc.
In August 2016, Ross agreed to pay investors $11.8 million and a $2.3 million civil penalty to settle an investigation by the Securities and Exchange Commission into allegedly excessive fees paid on the sale of WL Ross & Co.
International Coal Group was indirectly implicated in the January 2, 2006, Sago Mine disaster in West Virginia, which killed 12 miners. Roddy Boyd, writing in The New York Post, alleged that Ross had "deep ties to the company that owns the West Virginia mine where 12 coal miners died."
Boyd claimed that Ross was aware of safety issues at the mine, noting that a roof fall had occurred in the mine in 2005. The article also reported that the US Department of Labor had cited the mine for 208 safety violations around the same time. Ross ultimately decided not to close the mine.
Government Roles and Political Affiliations
Under US President Bill Clinton, Wilbur served on the board of the US-Russia Investment Fund. Later, under NYC Mayor Rudy Giuliani, he was an advisor to the mayor on privatization.
In January 1998, Ross provided $2.5 million in seed money for the political campaign of his then-wife, Republican Betsy McCaughey Ross.
As of January 2012, Ross was an active leader in the Wall Street fraternity Kappa Beta Phi.
Personal Life
Wilbur Ross married Judith Nodine in 1961, and they had two daughters. The couple divorced in 1995. He then married New York Lieutenant Governor Betsy McCaughey in 1995, but they divorced in 2000.
On October 9, 2004, Wilbur married Hilary Geary, a contributor to the magazine Quest.
Art Collection and Philanthropy
Ross is the owner of an art collection estimated to be worth over $150 million. The collection includes works ranging from Western surrealism to contemporary Eastern sculptures. Ross owns 25 paintings by René Magritte, including notable pieces like "The Pilgrim."
