Nicolas Berggruen

Nicolas Berggruen ( born August 10, 1961 in Boulogne- Billancourt, France ) is a German - American investor. He is, among others, the founder and managing owner of Berggruen Holdings, a company specializing in long-term direct investment financial holding company. His fortune was estimated by Forbes magazine in March 2013 to 2 billion dollars. In the 2000s he shifted his investments in property values and oriented its interests while on long-term projects. Since 2009 he has been working with the Nicolas Berggruen Institute on Governance ( NBI), a non-partisan think and action tank at the design and implementation of new ideas of good governance. In Berggruen Institute on Governance, it is treated along the Huffington Post, co-founder of The World Post, an online portal that global issues. In Germany he became acquainted with the purchase of the bankrupt department store chain Karstadt in June 2010.

2.1 Investments
2.2 Capital investment
2.3 Investments in real estate 2.3.1 Worldwide
2.3.2 Berlin

2.4.1 acquisition, negotiations and measures
2.4.2 criticism

3.1 Nicolas Berggruen Institute on Governance
3.2 Council on the Future of Europe

Life

Family

Nicolas Berggruen was born as the son of the Berlin gallery owner, art collector and patron Heinz Berggruen and his second wife, actress Bettina Berlin Moissi. His maternal grandfather is the internationally famous ethnic Albanian theater and film actor Alexander Moissi. His brother Olivier ( born 1963 ) is an art historian and grew up with him in Paris.

From the first marriage of his father, he has a half brother, the gallery owner John Henry Berggruen ( born 1943 in San Francisco) and a half-sister, the painter Helen Berggruen ( born 1945 in San Francisco), who lives in California's Napa Valley.

Nicolas Berggruen grew up in Paris and in Switzerland, was in German educated, he also speaks French and English.

Schooling and studies

Berggruen attended the private Parisian École alsacienne and then the Swiss boarding school Le Rosey. He initially wanted to become a writer. He read the works of Albert Camus, Jean -Paul Sartre and other existentialists, and later Karl Marx, Lenin, Trotsky. As a result, Berggruen refused to learn English, as this " the language of imperialism " was. He was then forced to leave the boarding school at age seventeen. In 1978 he finished Paris with the Baccalauréat his schooling and went as a trainee to London .. Berggruen now decided " to change the system not from outside but from within. " He studied at New York University Finance and Business Administration ( " Finance and International Business " ) and closed after two years from his studies with a Bachelor of Science degree. In 1981 he began an apprenticeship as a real estate investor at Bass Brothers Enterprises.

Private life

After Berggruen had acquired a fortune, he lost his interest in acquiring private goods and in 2000 sold his apartments. Berggruen has therefore no fixed abode more, but lives exclusively in hotels. As thanks for invitations of his friends, he invited them in the 2000s, a night before the annual Academy Awards having about 500 guests from the film and commercial world to a party at the Chateau Marmont on Sunset Boulevard. It was regarded as the most popular party in Hollywood. In 2013, Berggruen ended his Oscar parties.

Arts funding

Nicolas Berggruen collects contemporary art, including works by Pablo Picasso, Paul Klee, Andy Warhol, Joseph Beuys and contemporary artist John Baldessari, Chris Burden, Jeff Koons, Sigmar Polke, Gerhard Richter, Ed Ruscha, Thomas Schütte, and Jean -Michel Basquiat, Francesco Clemente and Anselm Kiefer. He is a founding member and chairman of the Sponsors of the Berlin Museum Berggruen, which presents the Picasso paintings of his father and extended by further acquisitions and loans. Since 2008, Berggruen international guests from the culture, economy and politics has invited in June to a reception at the Museum Berggruen in Berlin, in order thus to the museum to gain international attention and secure. In 2013 he donated to the Museum Berggruen in Berlin after its two-year renovation and expansion of paintings from his collection. The German department of Berggruen Holdings leased at its Berlin branch studios to artists at a low price. In the field of art itself Berggruen also been an active member of the International Council of the Tate Museum in London, the Fondation Beyeler in Switzerland, the Los Angeles County Museum ( LACMA ) and the Museum of Modern Art in New York.

Charitable Commitment

Since he was childless and unmarried, so far, he was planning in 2008 to re-transfer his assets to a foundation and its collection an art museum. The Berlin Senate in 2008 offered a free plot of land for a yet-to -creating "art hall " at the Humboldt harbor, but the project failed because of the view from Berggruen's too tight building regulations of the Berlin building authorities. Berggruen have not been completed with the project and keep its completion possible.

In December 2010, Berggruen joined the philanthropic campaign of The Giving Pledge to donate over half of his fortune to charity. From the Wall Street Journal he was allocated in 2008 a new generation of socially and environmentally responsible investors.

Activities as an investor

Financial investments

From 1983 to 1987 Berggruen was initially a partner in the leveraged buyout small company Jacobson and Co., Inc. operates. In 1984 he founded his own investment company (later renamed Berggruen Holdings), which initially served as a consultant for the Berggruen family trust. In 1988 he founded with Julio Mario Santo Domingo, Jr. a son of billionaire Julio Mario Santo Domingo, the investment fund Alpha Investment Management. This was sold to Safra Bank in 2004. Alpha Investment was a super hedge funds, wealthy individuals and institutional investors, may purchase the hedge funds, but they did not want to pick and choose, corresponding portfolios offered. The Alpha Fund had in the second half of the 1990 decade according to the Sharpe ratio - a ratio three times better value than the S & P 500-stock index.

1992 Berggruen bought for $ nine million shares in Media Capital, the largest media company in Portugal. After he had built a large media organization of magazines, radio stations and a television station and went public in 2006, he sold to PRISA shares for $ 150 million. In 2000, he invested eight million U.S. dollars in the American eyewear manufacturer FGX International ( FGXI ). After the sale of part of its stake to other investors later he made a profit of $ 200 million.

From late 2006 until the end of 2007 from him three of the world's largest SPEs ( Special Purpose Company / SPAC ) were created; they brought a total of $ 2.6 billion to buy the company. His first purpose entity Freedom Acquisition Holdings, he and Martin Franklin ( CEO of Jarden Corp. ), And merged it with the British hedge fund GLG Partners Inc., the largest independent management company for alternative investments in Europe. As in June 2007, GLG went public, jumped just after that a number of key dealers and the shares lost more so because of the global financial crisis starting in 2007, within a year 90 % of its value. GLG in 2010 was sold at a significant loss to the British Man Group Plc. In December 2007, he initiated - again with Martin Franklin - a U.S. special purpose vehicle called Liberty Acquisition Holdings Corp. .. It advertised a more than a billion dollars. A European -purpose company called Liberty International Acquisition Co., which he founded in February 2008 with Franklin, brought to 878 million dollars. Only these two companies brought great financial income to shareholders. With Liberty International Acquisition Co., he acquired in June 2009, the British life insurer Pearl Group (now Phoenix Group Holdings ) for $ 843 million. In 2011 he founded, together with Martin Franklin the SPV Justice Holdings Ltd.. , With the former Financial Secretary Lord Paul Myners as Managing Director and with the economist Nouriel Roubini on the advisory board. The company was able to collect on the London Stock $ 1.44 billion as of February 2011. In April 2012, for a share of 29 % was obtained at Burger King.

Investments in fixed assets

Based in New York City Berggruen Holdings has offices in Berlin, Istanbul, Tel Aviv and Mumbai. It invests primarily in long-term transactions, real estate, Clean power and renewable energy. Berggruen Holdings owns, among others, an Indian hotel chain (Keys Hotel), Turkish wind energy companies, Israeli real estate, twelve American vocational schools, rice-growing farms, by 2009 a fuel ethanol plant in Oregon and newly built high-rise buildings in inner cities around the world. To compensate for the loss of agricultural land by biofuel cultivation he buys fields for cassava, maize, rice and other food crops. The ethanol plant he holds today for " a very serious financial and ecological disaster." In March 2010 he bought for 900 million euros a majority stake in the economically ailing Spanish media group Prisa, which also publishes the leading daily newspaper El País.

The first major investment in a German company was the pro rata purchase of the then insolvent and Europe's largest furniture producer IKEA and suppliers Schieder in October 2007.

Investing in Real Estate

Worldwide

Berggruen wants to invest in architecture and urban planning in stable value projects. In the neglected city center of Newark (New Jersey), he bought a majority shareholder in several areas and develops a functional mixed downtown with three schools, affordable housing for 200 teachers, offices and shops. Similar projects, he also developed in India, Turkey and Israel (Quartier Nachalat Binyamin in Tel Aviv). To plan he commissioned famous architects such as Richard Meier, Shigeru Ban and David Adjaye.

" To me it 's not just about commercial success, but also beauty. This also applies to real estate in India, Israel and America. It's all about the aesthetics. The properties are to my architect and outlive me. That's why I work with the best architects in the world. Yet in a hundred years people will enjoy it. "

Berlin

In Germany, the Nicolas Berggruen Holdings GmbH is active since 2005 in real estate, then initially located in Berlin 's Kreuzberg district, Wilhelmstrasse. Your mainly include historically important, listed and renovated by the Berggruen Holding property such as the Sarotti yards on Mehring Damm in Berlin- Kreuzberg, the. Schuckert farms at Treptower Park and the famous Café Moskau in Berlin city center Berggruen himself decides on the spot about the quality of a property, so he obtained until 2010 in Berlin around 60 founder temporal tenements and Alt- Berlin Industrial Tribunals for more than 225 million euros. In Potsdam he earned 2006 offered for sale neo-baroque former main post office and left the post as the main tenant in the palace along the canal. The Künstlerhaus Bethanien Kreuzberg moved officially on 11 June 2010, a founder -time house of Berggruen Holdings with 25 major studios at the Kottbusser Straße in Berlin -Kreuzberg. There is, since 2010, the German subsidiary of Berggruen Holdings. Berggruen Holding invested from 2005 to 2013 about 300 million euros in the acquisition and rehabilitation of some 100 residential and commercial buildings in Berlin and Potsdam. The value of this property was in 2013 estimated at around 450 million euros. For real estate in Berlin next to some well-known buildings include typical Berlin tenement. In the former main plant of Knorr-Bremse has since 2013, the online retailer and competitor Karstadt Zalando Berggruen tenants.

Berggruen at Karstadt

Acquisition, negotiations and measures

A large group of Berggruen Holdings had six months employed from 2009 with a possible takeover of the department store chain Karstadt, which was since June 2009 bankruptcy. After reading press reports and a call to the previous Schieder- interim CEO and former Karstadt manager Thomas Fox Berggruen made on 21 May 2010 an offer to purchase. It would not have branches closed and the workers had to suffer any losses. Berggruen assured that it constitutes a long- term commitment., Which was founded by Goldman Sachs Real Estate Consortium High Street he wanted to negotiate rent reductions, which initially far excessive rent claims as one of the main causes were of Karstadt insolvency. "We are saving the houses not broke, but we focus and aim that the company growing again. " U.S. textile group of BCBG Max Azria will take over the operation of the Karstadt stores with. Karstadt need " a young appearance and a more youthful style ."

On 7 June 2010, the committee of creditors of Karstadt issued with nine out of eleven votes to Berggruen Holdings contract for the department store chain. Berggruen signed on 8 June 2010 the contract of sale, with the caveat (closing condition, ie condition precedent) that the main High Street landlord give in at the rental claims. After long and difficult negotiations, agreed on September 2, 2010 High Street and its creditors a new contract with lowered rents unanimously. Berggruen could officially take over the business from 1 October 2010. He has repaid debt of 70 million euros. Over the next four years initially further 400 million Euros are generally reinvested for a matter of urgency viewed modernization and reorganization of Karstadt. These investments will be generated from Karstadt running business ( cash flow). At the beginning of 2011 called Berggruen internationally experienced warehouse manager Andrew Jennings as Chief Executive Officer of the Karstadt GmbH.

Criticism

From 2013 came Berggruen by the trade union Verdi, the works council, Karstadt employees and the press criticized very much. He had asked himself since the takeover of Karstadt no money for the renovation work, while employees, state and landlords have declined to large sums of money. The Karstadt employees waived in a redevelopment agreement for three years until the summer of 2012 to a total of approximately 150 million euro income. From 2013, the employee shall waive tariff increases in 2015 and thereby apply additional 36 to 38 million euros for the rehabilitation. Nevertheless, as of July 2012 2000 jobs were lost. The Treasury escaped more than 97 percent of those 150 million euros in revenue from VAT, which were incurred during the insolvency of Karstadt in summer 2009. The Federal Employment Agency paid prior to the insolvency proceedings opened in 2009, three months ' salaries Karstadt employees from an estimated hundred million euros. The consortium High Street, as the owner of most of the Karstadt real estate, abandoned by 2018 to a total of around 400 million euros in rent payments. Berggruen or its holding company have invested nothing until 2013 except 1 Euro " purchase price " for Karstadt and five million euros for the trademark rights to Karstadt. The one euro for Karstadt saved the Holding otherwise matured gift tax. About royalties for trademark Berggruen regularly took millions of Karstadt. Alone in the 2012 financial year had to pay nine million euros for Karstadt. A credit Berggruen over 65 million euros, which was a condition for a takeover, Karstadt paid shortly after the takeover back because Berggruen charged for such very high interest rates. The press has speculated in 2013 about a break-up of Karstadt.

On the criticism replied Berggruen: "In Germany there are only criticism, you will be penalized if you try something " and " In any other country you would find this good, only the Germans do not understand the principle of charity ". He had placed 99 percent of its assets in a foundation and not benefit from the profits of its holding company.

In September 2013 it was announced that Berggruen sold the premium and sports stores to 75.1% depending on the Austrian Signa Holding the investor René Benko. With the proceeds of 300 million euros allegedly the remaining part should be modernized. The mirror revealed in the article end on rates details of the sale. Only 150 million euros are available for the remaining branches and 15 million euros of this sum to be actually invested within five years in the stores. Additional 135 million are available for free. What this means has not been communicated to the public. 100 million euros of the total sales go to the investment of the premium homes and 50 million euros to the sports stores. The 300 million euros are to be fully paid after 18 months, with half to be paid by year end. According to the magazine Der Spiegel 's opinion, therefore runs the destruction of Karstadt, and the Investor Berggruen seeking only an elegant finish for the rest of Karstadt. Berggruen myself have never provided their own money for the Group since the acquisition.

Corporate style

Berggruen invests according to his own statement in companies that have lost as a result of macroeconomic events much of its value, then he expects the economic recovery. However, he had to realize early on that he was less suitable for the everyday business of a manager and delegate this task range of relevant experts. Berggruen invests according to own data today in projects that expand both his fortune as he could alleviate social problems. General he said in 2011: "We are here in the world only for a moment. What really matters is what we create, what we build. What counts, our actions and our decisions are. The remains forever. This is the true value of our existence. "

His business partners certify it a " strict business sense." Berggruen is both a " disciplined buyers," as well as " a smart and creative investor ." He invests only in companies whose businesses he also understand. These are primarily the retail, media and real estate. Another strength of it is the placement of people in the fields of culture, politics and economy. While Berggruen had previously shunned publicity, he examined today increasingly on the media. After several positive German television reports for the first time criticized founded in 2011, ZDF editorial zoom Berggruen after one year of research on 14 March 2012; ZDF editorial Frontal21 took them a day earlier cuttings. Before Air Date sent to film prints ZDFzoom several German press editors.

Political Activities

Nicolas Berggruen Institute on Governance

Berggruen was looking for opportunities for better governance; after talks with Brian Walker ( policy) and Brian Copenhaver ( Philosophy ), professors of the University of California in 2009, he founded the non-party aligned Nicolas Berggruen Institute ( NBI). Speaking at a conference in Berlin in October 2012, he expanded the institute's name in Nicolas Berggruen Institute on Governance, a think tank for policy advice, in the former government, well-known entrepreneurs and economists are active. In comparative studies of new political ideas should be developed, based on the advantages of Western and Asian world. These ideas will benefit governments and citizens' initiatives worldwide. He extended the end of 2010 his institute with a bipartisan committee which NBI 21st Century Council ( the "Council for the 21st century " ), composed of former leading politicians from many countries such as Felipe González, Gerhard Schröder and Fernando Cardoso. As a consultant, among other economists Amartya Sen, Alain Minc and Joseph E. Stiglitz presented available.

The first concrete project a Think Long Committee For California to help the California economy to revive and to reduce state debt burden ( the "Committee for long-term thinking for California "). To this end, Berggruen could win the support of former high-ranking U.S. politician from the Republican and the Democratic Party, such as Willie Brown, Condoleezza Rice and George P. Shultz and entrepreneurs like Eric Schmidt and Eli Broad.

The first meeting of the NBI 21st Century Council was held in November 2010 at the Google headquarters with Eric Schmidt as host instead. Three proposals had the Advisory Board until January 2011 can already enforced for California: budget surpluses are reinvested for worse times, citizen initiatives and referendums are only allowed if the financing of its objectives is ensured. The adoption of the state budget now requires only a simple parliamentary majority rather than the two-thirds majority.

Council on the Future of Europe

With the help of Gerhard Schröder Berggruen founded with another group of experienced political leaders, entrepreneurs, economic and social scientists the Council on the Future of Europe. End of October 2011, this group met in Paris to " promote " a reform of the European structures. The round recommended include the establishment of an Executive Committee, following the example of the UN Security Council and a permanent secretariat. We need not less but more Europe, but this possibility is mediated by politicians to their electorate unconvincing. Therefore, he supported the idea of the United States of Europe. It must " be joint ministries and responsibilities, definitely for finances, but also for foreign policy, energy, transport and immigration. "

Award

In January 2009, Nicolas Berggruen was awarded the Culture Prize of Berlin workhorse.

Memberships

Nicolas Berggruen is a member of the Young Presidents 'Organization and the World Presidents ' Organization (WPO ) and board member of the French daily newspaper Le Monde and the Spanish media group Prisa. He is also a member of the Council on Foreign Relations, an influential think tank American. and the Pacific Council on International Policy. Its cultural ambitions serve its membership in the International Council of the Museum of Modern Art, the Tate Modern and the Los Angeles County Museum of Art

Publications

Nicolas Berggruen & Nathan Gardel: Klug govern. Policy for the 21st century. Foreword by Gerhard Schröder. Herder, Freiburg 2013, hardcover, ISBN 978-3-451-30753-9.
Nicolas Berggruen & Nathan Gardel: Intelligent Governance for the 21st Century. A Middle Way in between West and East. Polity Press / John Wiley and Sons, hardcover, 2012, ISBN 978-0-7456-5973-2.
Thomas Veszelits: The Robin Hood case. " Mister Karstadt " Nicolas Berggruen. A Biography. Red Book Verlag, Berlin, 2013, ISBN 978-3-86789-175-2

Television reports

Who is Nicolas Berggruen? TV reportage, Germany, 2010, 6:22 min, Director: Grit Lederer, Production: Hessischer Rundfunk, Edited by: ttt - titel, theses, temperaments, first broadcast July 11 2010, Film text (Version of 16 July 2010 Internet Archive ).
Employees celebrate Karstadt rescue. TV reportage, Germany, 2010, 1:34 min, Production: n-tv, Release: September 3, 2010, online video.
Karstadt rescue. Newscast, Germany, 2010, 2:36 min, Production: ARD, editors: issues of the day, first broadcast on 3 September 2010.
Vis -à-vis: Nicolas Berggruen, investor and philanthropist. Conversation, Germany, 2011, 60 min, with Frank A. Meyer, Production: 3sat, Original Air Date: October 31, 2011, Summary of ARD.
Do-gooder or profiteer? The Karstadt Saver Berggruen. TV reportage, Germany, 2012, 8:10 min, Production ZDF, Editors: Frontal21, first broadcast March 13., 2012.
Mister Karstadt. The enigmatic Nicolas Berggruen. TV reportage, Germany, 2012, 45:49 min, Production ZDF, Editors: ZDFzoom, first broadcast 14 March 2012.

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