Stephen Andrew Feinberg (born March 29, 1960) is an American businessman and investor active in hedge fund management and private equity.[1] He is the co-founder and Chief Executive Officer (CEO) of Cerberus Capital Management. As of July 2024, his net worth is US$4.8 billion.[2] In 2017 Cerberus also owned DynCorp, which is a major national security contractor with the US government, charging billions for overseas military and police training.[3] On May 11, 2018, U.S. President Donald Trump named Feinberg to head the President's Intelligence Advisory Board.[4]
Steve Feinberg | |
|---|---|
| Chair of the Intelligence Oversight Board | |
| In office August 16, 2018 – January 20, 2021 | |
| President | Donald Trump |
| Preceded by | Neal S. Wolin |
| Succeeded by | Vacant |
| Chair of the President's Intelligence Advisory Board | |
| In office May 12, 2018 – January 20, 2021 | |
| President | Donald Trump |
| Preceded by | Shirley Jackson Jami Miscik |
| Succeeded by | Sandy Winnefeld |
| Personal details | |
| Born | March 29, 1960 New York City, U.S. |
| Political party | Republican |
| Spouse | Gisella Sanchez |
| Children | 3 daughters |
| Education | Princeton University (AB) |
Early life and education
editFeinberg was born to a Jewish family[5][6] and raised in The Bronx, New York. When aged eight, his family moved to Spring Valley, New York,[7] a suburb of New York City. His father was a steel salesman.[7] He graduated with an A.B. in politics from Princeton University in 1982 after completing a 94-page long senior thesis titled "The Politics of Prostitution and Drug Legalization."[8][9] While a student at Princeton, Feinberg captained the tennis team and joined the Reserve Officers' Training Corps.[7]
Professional career
editAfter graduating from college, Feinberg worked as a trader at Drexel Burnham in 1982 and later at Gruntal & Co.[10]
In 1992, at the age of 32, Feinberg co-founded Cerberus Capital Management with William L. Richter.[10] At the time the firm had $10 million under management; its assets under management have since grown to over $60 billion in 2024.[11][12] In 1999, the firm hired former vice president Dan Quayle as a chairman of Cerberus Global Investment.[13] In 2006, the firm hired former United States Secretary of the Treasury John Snow, who serves as a chairman of Cerberus.[14]
In May 2011, Feinberg stated that he believed residential mortgage-backed securities may present "a real opportunity for continued investment for quite a period of time"[15] and that there were opportunities in buying assets from European banks.
Feinberg has been critical about the pay received by private equity executives, stating, "In general, I think that all of us are way overpaid in this business. It is almost embarrassing."[16] He has also noted in comments made in 2011 that smaller private equity fund sizes may be better for investor returns: "If your goal is to maximize your return as opposed to assets under management, I think you can be most effective with a big company infrastructure and a little bit smaller fund size."[16]
Feinberg has been described as "secretive" in The New York Times.[17] In 2007, Feinberg told Cerberus shareholders, "If anyone at Cerberus has his picture in the paper and a picture of his apartment, we will do more than fire that person. We will kill him. The jail sentence will be worth it."[18]
Political involvement
editFeinberg is a major Republican donor.[19] In 2016, he served on the Trump Economic Advisory Council during Donald Trump's presidential campaign, donated nearly $1.5 million to pro-Trump PACs, and co-hosted a $50,000 per person Republican National Committee and Trump fundraising dinner alongside other financiers.[20][21] In February 2017, the New York Times reported that President Trump will assign Feinberg a role in the White House leading a review of the US intelligence agencies.[22]
Together with his spouse, Feinberg contributed $715,600 to Donald Trump's 2020 presidential campaign.[23]
He is a member of The Business Council in Washington, DC, an association of chief executive officers from a broad range of companies who meet several times a year for high-level policy discussions.[24][25]
Personal
editFeinberg reportedly made $50 million in 2004. He splits time between his homes on Manhattan's Upper East Side and Greenwich, Connecticut with his wife Gisela (née Sanchez).[7]
References
edit- ^ Das, Anupreeta; Timiraos, Nick. "Donald Trump's Financial Advisory Team Stocked With Wall Streeters". The Wall Street Journal.
- ^ "Stephen Feinberg". Forbes. Retrieved July 1, 2024.
- ^ Ken Dilanian, Peter Alexander: Trump Asks Billionaire Steve Feinberg To Review Intel Agencies - NBC News, 16 Feb 2017
- ^ Epstein, Jennifer (May 11, 2018). "Trump Chooses Cerberus's Stephen Feinberg to Lead Spy Advisory Panel". Bloomberg News.
- ^ Times of Israel: "Trump wants Jewish billionaire to vet spy agencies – reportAs ties fray between White House and intelligence services, Bannon-Kushner associate Stephen A. Feinberg said being considered to lead review" by Sue Surkes February 16, 2017
- ^ Eytan Avriel, "A shy wunderkind, Stephen Feinberg", Haaretz, 16.11.2005
- ^ a b c d Upstart Business Journal: "The Most Dangerous Deal in America" by Daniel Roth August 13, 2007
- ^ Feinberg, Stephen Andrew (1982). "The Politics of Prostitution and Drug Legalization".
{{cite journal}}: Cite journal requires|journal=(help) - ^ "For Private Equity, a Very Public Disaster". The New York Times. August 9, 2009.
- ^ a b Roth, Daniel. "The Most Dangerous Deal in America". Upstart Business Journal.
- ^ "Cerberus' new Europe property fund may attract over $370 mn from Korean investors". Korean Investors. Retrieved December 23, 2016.
- ^ Who We Are – Cerberus Capital Management
- ^ J. Danforth Quayle - Cerberus Capital Management
- ^ John W. Snow - Cerberus Capital Management
- ^ "Is it 2006? Cerberus Loves Mortgage-Backed Securities". The Wall Street Journal: Deal Journal. May 25, 2011.
- ^ a b "Cerberus' Feinberg says PE executives 'way overpaid'". Reuters. June 7, 2011.
- ^ "Can Private Equity Build a Public Face?". New York Times. December 24, 2006.
- ^ "Greed and Debt: The True Story of Mitt Romney and Bain Capital" by Matt Taibbi, Rolling Stone, August 29, 2012.
- ^ McDonald, Duff (October 24, 2007). "The Dog That Roared". New York Magazine. Retrieved August 6, 2016.
- ^ Kirsch, Noah (February 4, 2017). "Meet Stephen Feinberg, The Billionaire Reportedly Slated To Review US Intelligence Agencies". Forbes. Retrieved December 13, 2017.
- ^ Stevenson, Alexandra (June 16, 2016). "A Who's Who of Financiers Is Expected at Trump's New York Fund-Raiser". New York Times. Retrieved December 13, 2017.
- ^ Risen, James; Rosenberg, Matthew (February 15, 2017). "White House Plans to Have Trump Ally Review Intelligence Agencies". The New York Times.
- ^ "Here Are The Billionaires Who Donated To Donald Trump's 2020 Presidential Campaign". Forbes. Retrieved March 27, 2024.
- ^ "Active Member Directory". The Business Council. Retrieved December 13, 2017.
- ^ J.D. Harrison. "Amazon's Jeff Bezos appointed chairman of Washington-based Business Council". Washington Post. Retrieved August 12, 2017.