Ervin Johnson Investment Fund


Over the past 20 years, however, Johnson has proven he has the acumen for more than hoops.

Beverly Hills, Calif.-based Magic Johnson Enterprises now owns or operates gyms, Starbucks coffee shops, Burger Kings, movie theaters and other businesses in 85 cities across 21 states. His Canyon-Johnson Investment Fund has been behind nearly $4 billion in urban revitalization projects that resulted in the creation of 4.5 million square feet of retail and commercial space.



Houston company makes $120 million bet on Bellevue office complex


Amaechi Ndili
Lionstone Group/The

Career History

Chairman/Co-Founder Lionstone Group/The, 2004-PRESENT
Exec Head:Nigerian Operations Emerging Capital Partners, PRESENT
Managing Director GE Capital Real Estate, UNKNOWN-2004

Corporate Information
100 Waugh Drive
Suite 600
Houston, TX 77007
United States
Phone: 1-713-533-5860
Fax: 1-713-533-5897
Web url:

Personal Information

EducationUniversity of Pennsylvania MBA, 1997
Univ of Bath Bachelor’s Degree

Board Memberships

Notore Chemical Industries Ltd Board Member, PRESENT
Lionstone Group/The Chairman, 2004-PRESENT

Kase Lawal: Not your average oil baron

kase lewel

(CNN) — Nigerian-born entrepreneur Kase Lawal is the epitome of the American dream. Arriving to the US a young, idealistic student, Lawal has carved a name for himself in one of the most competitive industries in the world: Oil.

Now head of a multi-billion dollar empire, his Houston-based company, CAMAC, is one of the largest black-owned businesses in the U.S., generating over $2 billion dollars a year.

Founded nearly 25 years ago, Lawal built CAMAC (which stands for Cameroon-American) from a small agriculture business into a global oil company. But it’s taken a lot of hard work, determination and guts to get him to the top.

Born and raised in Ibadan, Nigeria in 1954, Lawal became interested in America and its civil rights movement during his teens. After finally persuading his father, a local politician, to send him to university in America, Lawal headed to Georgia and then Houston, where he attended the Texas Southern University.

After graduating with a Bachelor of Science in chemical engineering in 1976, Lawal, like many of his classmates, started out as a graduate in the energy industry. First as a chemist for Dresser Industries (now Halliburton) and then as a chemical engineer with Shell Oil Refining Co.

During this time he met his wife, Eileen through a mutual friend and had his three children.

Now married and settled, it wasn’t long before the innovative young Nigerian started to implement his business ideas.

In 1986 he established CAMAC, a company trading agricultural commodities such as sugar, tobacco and rice. In the early 90s he made the leap into the energy sector after the Nigerian government started to develop its energy market.

With his knowledge of Nigeria and his Houston address, Lawal was ideally positioned to attract major oil companies. In 1991 CAMAC made a deal with the oil giant Conoco, agreeing to jointly operate and share production from any Nigerian discoveries.

This turned out to be Lawal’s big break.

With his political contacts, local market knowledge and now with the backing of a major oil firm, Lawal’s Houston-based company became an instant player in the energy industry.

As Lawal told CNN: “That partnership I believe was the cornerstone of the CAMAC that you know today. Subsequently with that credibility and the advantage of partnering with Conoco, we were also able to partner with BP and also with Statoil of Norway and currently we have made a partnership with Eni, the largest Italian company, which is one of the top five oil companies in the world.”

Now CAMAC has offices in London, Johannesburg, Lagos and Port Harcourt, Nigeria and is involved in oil exploration, refining and trading.

He was awarded the USAfrica Business Person of the Year in 1997 and in 2002 CAMAC was named the largest African-American owned company on the Black Enterprise 100s list.


The Association of Black Securities and Investment Professionals


The Association of Black Securities and Investment Professionals (ABSIP), was established in 1995 to address the apparent lack of representation of black professionals in the securities and investment industry. It was also conceived as a platform to address the aspirations of those in the industry and to create a forum for black professionals to exchange Information and Ideas.

The mandate of ABSIP has evolved to encompass the empowerment of black professionals and black business across the financial industry. Its membership has grown to include sub-sectors such as Asset Management, Corporate Banking, Corporate Finance, Corporate Managerial and Financial Consulting, Employee Benefits, Insurance, Investment Banking, Retail Banking, Private Banking, Private Equity, Stock broking, Treasury and Development Finance Institutions (DFIs).

ABSIP has become widely recognised as an influential force in the transformation of the Financial Sector as evidenced by its participation in drafting the landmark Financial Sector Charter (“FSC Charter”). ABSIP is an affiliate member of the BBC (Black Business Council).

Read more Visit Website

SWFI NAIC Institutional Investor Forum 2015 Miami


Join us, February 9, 2015 – Miami Beach, FL

Keynote Speaker Highlight Robert F. Smith

Founder, Chairman and CEO of Vista Equity Partners
As Vista’s Chairman and CEO, Mr. Smith directs Vista’s investment strategy and decisions, firm governance and investor relations.

Vista currently manages equity capital commitments of over $14 billion and oversees a portfolio of over 20 software companies that employ a combined 22,000 employees worldwide. Since Vista’s founding in 2000, Mr. Smith has overseen over 140 completed transactions by the firm. During that time, Vista has managed capital for hundreds of limited partners, including many prominent public, private and corporate pension plans, endowments, family offices, and high net worth individuals. The firm has consistently performed in the top measures of PE firms. In 2012, Buyouts magazine awarded the firm’s Vista Equity Partners Fund III the Gold Medal as the top-performing 2007-Vintage Buyout Fund in the U.S.

Under Robert Smith’s leadership, Vista has exclusively focused on the enterprise software, data and technology enabled solutions sectors. Mr. Smith currently serves on or participates on all the boards of Vista’s portfolio companies, including Misys, Active Network, and Omnitracs. Prior to founding Vista, Mr. Smith worked for Goldman Sachs, M&A, from 1994 to 2000, in New York and Silicon Valley. As Co-Head of Enterprise Systems and Storage, he executed and advised on over $50B in merger and acquisition activity with companies such as Apple, Microsoft, Texas Instruments, eBay and Yahoo.

Mr. Smith has also been a leader in the philanthropic sector, serving as Chairman of the Robert F. Kennedy Center, as a Trustee of the Boys and Girls Clubs of San Francisco, a Member of the Cornell Engineering College Council, and. Mr. Smith is a Board Member of Carnegie Hall.

Hear from experts who have massive amounts of capital at work on both the private and public side.

Other Speakers include but not limited to:

Mark Gordon, State Treasurer of Wyoming
Robert L. Greene, Vice Chairman, Virginia Retirement Systems
Amir Dossal, Chairman and Founder, United Nations Global Partnerships Forum
Frank Baker, Managing Partner, Siris Capital
Tony Oliveira, Former Board Member, CalPERS
James Griffin, Managing Director, American Capital
Ana Maria Jul, Consultant to the Ministry of Economy and Finance of Panama
Jose Feliciano, Managing Partner, Clearlake Capital
Cheryl D. Alston, Executive Director, Employees’ Retirement Fund of the City of Dallas
Jason Lamin, Partner, Lennox Park
Stephen Braverman, Director, Business Development, DTE Energy Resources
Reeta Kapani Holmes, Co-Founder, Silverfern Partners
Ole Kjems Sørensen, Vice President, Head of Commercial Transactions & Market Development, DONG Energy Wind Power
Celeste Cecilia Moles Lo Turco, Strategic Committee on SWFs, Italian Ministry of Foreign Affairs

February 9, 2015

Fontainebleau Hotel, Miami Beach, FL, United States

An event for asset owners:
Public Pensions, Corporate Pensions, Sovereign Wealth Funds, Central Banks, Endowments, Superannuation Funds, Afores

Registration(private delegate)
Public Delegate Registration Here (i.e. pensions, SWFs, etc)
Register Before Early Bird Ends. Seating is limited.
If you plan on sending more people, please contact for more options.

Date: February 9, 2015
Venue: Fontainebleau Hotel

For information regarding the program, please contact Carl Linaburg at

Visit our Site:
If you have any questions regarding registration, please email


Public Investors including Sovereign Funds
Alberta Investment Management Corporation
APG Asset Management
British Columbia Investment Management Corp.
California Institute of Technology Investment Office
Central Provident Fund (Singapore)
China Investment Corporation
CPP Investment Board
Emirates Investment Authority
Employees’ Retirement System, State of Hawaii
Fonds de réserve pour les retraites
Fonds Marocain de Développement Touristique
Fundo Soberano de Angola
Future Fund (Australia)
Government of Singapore Investment Corporation
Government Pension Investment Fund (Japan)
Hellenic Pension Mutual Fund Management
JSC Partnership Fund (Georgia)
Khazanah Nasional
Korea Investment Corporation
Kuwait Investment Authority
Los Angeles Fire and Police Pensions
Mubadala Development Co.
Mumtalakat Holdings
National Development Fund of Iran
National Fund for Veterans, Cambodia
National University of Singapore
New Mexico State Investment Office
New Zealand Superannuation Fund
Norges Bank Investment Management
North Carolina Department of State Treasurer
Oman Investment Fund
Ontario Municipal Employees Retirement System
Ontario Teachers’ Pension Plan
Palestine Investment Fund
Public Investment Corporation (South Africa)
Queensland Investment Corporation
Russian Direct Investment Fund
San Jose Police and Fire Retirement Plan
Saudi Fund for Development
State Capital Investment Corporation (Vietnam)
State Oil Fund of the Republic of Azerbaijan
Teacher Retirement System of Texas
Temasek Holdings
Universities Superannuation Scheme (USS)
Utah Retirement Systems
VER The State Pension Fund (Finland)
Virginia Retirement System

Central Banks & Finance Ministries
Bank for International Settlements
Bank of Finland
Bank of Italy
Bank of Papua New Guinea
Bank of Thailand
Banque Central du Luxembourg
Bank Indonesia
Banque de France
Banque de la République d’Haïti
California State Treasurer
Central Bank of Egypt
Central Bank of Ghana
Central Bank of Iceland
Central Bank of Malta
Central Bank of Mauritania
Central Bank of Mongolia
Central Bank of Suriname
Croatian National Bank
Czech National Bank
Deutsche Bundesbank
European Central Bank
HM Treasury
Ministry of Finance, Panamá
Monetary Authority of Singapore
Norwegian Ministry of Finance
Turkish Treasury
U.S. Department of the Treasury

Agency and Other
California High-Speed Rail Authority
CERN (Pension)
City of London
City of Los Angeles – Mayor’s Office
Estonian Development Fund
Eurasian Development Bank
European Commission
European Financial Stability Facility
European Investment Bank
Government of Australia
Greater London Authority
Hong Kong Trade Development Council
Infocomm Development Authority of Singapore
Invest HK
Italian Ministry of Foreign Affairs
Ministry of Defence (Singapore)
Nevada Commission on Economic Development
Office of the Turkish Prime Minister
Singapore Tote Board
SME Development Fund of Mongolia
Stanford Management Company
WestSummit Capital
Ministry of Finance, Chile* Non-Public Attendees
Abraaj Capital
Acadian Asset Management LLC
Adams Street Partners
Adelante Capital Management
Adveq Management AG
Alignment Financial Services
American Capital
American Capital Infrastructure
American Century Investments
AMP Capital Investors
Analytic Investors
Aquiline Capital Partners
Arcus Infrastructure Partners
Avica Property Investors
AXA Rosenberg Investment Management LLC
Axiom International Investors LLC
Baring Asset Management
Berenberg Bank
BDO Consulting
BMO Global Asset Management
BNP Paribas
BNY Mellon Asset Management
Cain Brothers Asset Management
Calvo Fisher & Jacob LLP
CapMan Real Estate
Cartica Management, LLC
CarVal Investors LLC
CBRE Clarion Securities
Citi Infrastructure Investors
CMEA Capital
Columbia Management
Condo Developer, LLC
Contrarian Capital Management, LLC
Corporate Finance Associates
CQS Management Limited
Crosswater Realty Advisors
Cushman & Wakefield
Danske Bank
Deutsche Bank AG
DIAM International
Dimensional Fund Advisors, LP
Diversified Global Asset Management
DuPont Capital Management
Eagle Investment Systems
Eastspring Investments
Egan-Jones Ratings Company
Enam Asset Management Company Pvt.Ltd.
Euroclear Bank
Everstone Capital Asia Pte Ltd
FactSet Research Systems
Federal Home Loan Banks Office of Finance
Financial Recovery Technologies LLC
First State Investments
Fisher Investments
FLAG Capital Management
FPM Frankfurt Performance Management AG
Fullerton Fund Management
Gavilon, LLC
GE Asset Management
Global Catalyst Partners
Goldman Sachs Asset Management
Grant & Eisenhofer
Grayling Momentum
Grosvenor Capital Management
Hastings Fund Management
Heard Capital LLC
Henderson Global Investors
Highstar Capital
Hotchkis & Wiley
Hudson Clean Energy Partners
ING Investment Management
Intellectual Ventures
Islan Asset Management Jennison Associates LLC
JP Morgan Asset Management
Keller Rohrback LLP
Kessler Topaz Meltzer & Check
Keywise Capital Management
Kirby McInerney LLP
Kuwait Finance House
Labaton Sucharow LLP
Lakestar Capital LLP
Landmark Partners
Lasalle Investment Management
Leonard Green & Partners, L.P.
Lloyds Banking Group
Lloyd George Management
Lockheed Martin Investment Management Co.
Logan Circle Partners
Los Angeles Capital Management
LSV Asset Management
Martin Currie
Meketa Investment Group
Meta Alpha
MFS International
Mondrian Investment Partners Ltd
Montreal Exchange
Morgan Stanley
New Forests
NGP Energy Capital Management, LLC
NorCap Advisors, LLC
Northern Trust
Ocean West Capital Partners
ORTEC Finance Switzerland AG
Palladium Equity Partners, LLC
Partners Group
Pathway Capital Management, LLC
Pioneer Investment Management
Pramerica Real Estate Investors
Quantum Global Investment Management AG
Quoniam Asset Management
RBC Global Asset Management
RBC Investor Services
Record Currency Management Ltd
RMK Timberland Group
Robbins Geller Rudman & Dowd LLP
Royal Bank of Canada
Royal Bank of Scotland
Royal London Asset Management
SaLu Capital
Sarasin & Partners
Sectoral Asset Management
Société Générale
Srei Infrastructure Finance Limited
S&P Dow Jones Indices
SKYPATH Capital Partners
Standard Bank
Standard Life Investments Ltd.
Starwood Capital Group
State Street Global Advisors
Stroock & Stroock & Lavan LLP
Sumitomo Trust & Banking Co., Ltd.
SummerHaven Investment Management
T Rowe Price
Toron AMI International Asset Management
Tradeweb Markets
The Gracia Group
The Sentient Group
TorreyCove Capital Partners LLC
Towers Watson
V&S Investment Co., Ltd
Vertex Venture Management
Virage Capital
Waddell & Reed Asset Management Group
Wells Capital Management
Wilshire Associates
World Gold Council

$3 Trillion-Dollar Firms


Bill Gross and Larry Fink manage $3 Trillion-Dollar Firms Dominating Bonds

April 14 (Bloomberg) — A $3 trillion pile of bonds, an amount almost as big as Germany’s economy. Their firms, Pacific Investment Management Co. and BlackRock Inc., doubled holdings since 2008, outpacing the market’s growth of 50 percent.

Some of the largest hedge-fund firms, including Bridgewater Associates LP and BlueCrest Capital Management LLP, have also more than doubled their investments in debt, data compiled by Bloomberg show. At the same time, Wall Street banks are shrinking their stakes in bonds, Federal Reserve data show.

The lopsided bond market has caught the attention of the U.S. Securities and Exchange Commission. Not only is the SEC examining whether the biggest players get preferential prices and access because of their influence, it’s also worried about what happens when the five-year bond rally ends as U.S. policy makers prepare to raise interest rates.

“It’s going to be interesting to see who’ll take the other side of the trade if there’s a meaningful sell-off, which presents a huge risk,” said Arthur Tetyevsky, a credit-trading strategist at Imperial Capital LLC in New York. “We’re much closer to the end of the rally, that’s for sure.”

The biggest funds’ dominance may make it harder for everyone to sell when the Fed boosts borrowing costs from record lows and sends bond prices tumbling. In essence, their selling may crowd narrowed exits, making it more painful as all investors race to get out of a falling market.

Migrating Hazard
While regulators have looked at the threat to the financial system posed by too-big-to-fail banks, hazard has migrated to money managers. Banks, facing stiffer restrictions on borrowing and the amount of cash they need to keep on hand in the aftermath of the credit crisis, have cut the amount of their own money they use to help clients trade. That reduced role leaves the bond market more vulnerable to ripple effects from the actions of the behemoth managers.

More than five years of near-zero interest rates from the Fed has propelled corporate bonds to record performance and the biggest debt managers have ballooned in size. Pimco, Vanguard Group Inc. and Fidelity Investments manage 39 percent of all mutual fund-owned taxable bonds today, up from 18 percent in 1997, according to Morningstar Inc. data. The smallest 205 fund providers manage 0.1 percent of the market.

“When it comes to fixed-income management, there is an oligarchy,” said Robert Smith, the chief investment officer at Austin, Texas-based Sage Advisory Services Ltd., which oversees about $10.5 billion. “That can be good and that can be bad. It’s bad when you have a market that’s feeling like it’s weak and not doing well and selling off.”

Shrinking Dealers
Just because an investment firm is big doesn’t mean it poses more risk to the financial system, according to BlackRock. Rather than size, regulators should look at how much borrowed money a fund uses as a way to screen for systemic importance, it said in an April 4 letter to the Financial Stability Board. BlackRock said it uses very little leverage across its funds.

“The fact that some firms have gotten larger and some firms have gotten smaller, I’m not sure that’s relevant to secondary trading,” said Richard Prager, head of trading and liquidity strategies at BlackRock. “You have to think about it in terms of the different funds. It’s going to affect all of them equally if the dealers are all shrinking.”

Mark Porterfield, a Pimco spokesman, declined to comment, as did Ryan FitzGibbon, a spokeswoman for Bridgewater, and Ed Orlebar, a representative for BlueCrest.

Two Tiers
At the same time, regulators are examining the way larger firms benefit in markets where transactions are often executed the same way they were a decade ago — through telephone conversations and e-mails.

In this two-tiered market, brokers choose which rivals and clients may see their bond prices on electronic trading systems by turning quotes on and off. Dealers often give bigger investors better prices in return for all of the business they do with Wall Street.

The SEC is examining to what extent smaller buyers are disadvantaged, and whether the behavior constitutes market manipulation, according to two people with direct knowledge of the matter who asked not to be identified because the probe hasn’t been made public.

“For the do-it-yourselfer, the disadvantages are growing by leaps and bounds,” said Marilyn Cohen, who manages $315 million of corporate and municipal bonds as founder of Envision Capital Management Inc. in El Segundo, California. “There’s a smaller and smaller market for money managers that aren’t the size of BlackRock and Pimco.”

Worse Prices
Investors typically get worse prices when they trade smaller blocks of bonds. One day last month, dealers sold $15,000 of steel company ArcelorMittal SA’s bonds maturing in 2041 for 3.5 cents on the dollar more than they paid to buy $25,000 of the same securities an hour later. By contrast, two exchanges of $100,000 or more of the debt that day were within 0.05 cent of one another, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Finra is examining whether Wall Street firms overcharge investors and whether they unfairly allocate new corporate debt issues to reward certain clients, Nancy Condon, a spokeswoman, confirmed in an e-mail last week.

It’s getting tougher to trade bonds as the business gets less profitable for Wall Street. Corporate-debt trading volumes in the U.S. have failed to keep pace with issuance, increasing 14 percent since 2010 as outstanding notes grew by 33 percent, according to Finra and Bank of America Merrill Lynch index data.

Bondholders Hurt
Requirements that banks hold more cash in the event their investments tank have prompted dealers to reduce their inventories, giving the biggest managers even more sway in the market. The largest dealers had slashed their holdings of corporate bonds to $56 billion as of a year ago from $235 billion in 2007, according to Federal Reserve Bank of New York data. The inventories worked to cushion against price swings and made it easier to trade in larger sizes.

“There may be limits to what regulation can achieve,” New York Fed analysts Samuel Antill, David Hou and Asani Sarkar wrote in a March 27 report. “Financial growth has occurred in the more opaque and harder-to-regulate sectors.”

All bondholders are hurt when the biggest funds unload securities. When investors yanked a record $61.8 billion from broad-market bond funds in the first nine months of last year, it helped spur about $410 billion of losses on $20.5 trillion of U.S. government and corporate debt, Bank of America Merrill Lynch index data show. That was the securities’ worst performance since 1994.

Biggest Withdrawals
Barclays Plc strategist Jeff Meli noted in August that flows are “showing up real time in performance” since dealers aren’t buffering against such lurches as much as they used to.

The New York Fed routinely monitors market liquidity as part of its financial stability role for the central bank, and officials are seeing what they can learn from last year’s bond market sell-off. New York Fed researchers said in an Aug. 5 blog post that the sell-off was “steeper than most historical episodes.”

The funds that attracted the most assets in the previous four years experienced some of the biggest withdrawals. The world’s largest bond fund, Pimco’s Total Return Fund, for example, reported $8.3 billion of outflows in the first three months of 2014. That overwhelmed $6.4 billion of inflows into the rest of funds in its category, Morningstar data show.

Verizon Deal
The largest bond-fund managers have been able to amass a disproportionate amount of securities over the past five years partly by getting first dibs on new corporate-bond sales. The SEC is also investigating whether banks are fairly divvying up new issues and whether they give preferential treatment to top clients.

Bankers gave almost half of Verizon Communications Inc.’s record $49 billion bond sale in September to just 10 firms, people with knowledge of the matter said at the time. The price instantly jumped, handing those buyers about $2.5 billion in gains just one day after issuance.

Newport Beach, California-based Pimco purchased $8 billion of the Verizon debt and BlackRock bought about $5 billion, people familiar with the sale said at the time. Fink, 61, is chief executive of New York-based BlackRock and Gross, 70, is chief investment officer and co-founder of Pimco.

Robert Varettoni, a spokesman for Verizon, declined to comment on last year’s bond sale.

Being Big
“With the bond market you want to be big,” said Michael Rawson, an analyst at Morningstar in Chicago. “If you’re too small, it’s hard to get a decent allocation and good pricing.”

Being big can cut costs by having many different funds rely on the same people to trade, analyze and process specific bonds.
“They can lower their fees,” said Andrew McCollum, a managing director at Greenwich Associates in Stamford, Connecticut. “That’s the reason the big managers are getting bigger — they can basically do the same thing for a lower cost.”

BlackRock oversees $1.2 trillion of debt, compared with $483.2 billion in December 2008, according to the firm’s financial filings. Pimco manages $1.9 trillion of assets, with more than 90 percent in bond-related funds, versus $960 billion of assets five years earlier.

Enjoying Perks
Bridgewater’s All Weather fund, which emphasizes debt- related investments, has quadrupled since the end of 2009 to about $80 billion in assets, according to data compiled by Bloomberg. BlueCrest, co-founded by former JPMorgan Chase & Co. proprietary trader Michael Platt, has expanded to include about $32 billion of assets since its 2000 inception.

Hedge funds with more than $1 billion under management hold 59 percent of debt assets among similar firms, up from 29 percent in 2008, according to data compiled by Eurekahedge Pte Ltd., an alternative investment research firm, on relative-value strategies.

While they enjoy perks, bigger funds can also have a harder time being nimble as trading falls as a proportion of the overall market.

Pimco has faced withdrawals at the same time former Chief Executive Officer Mohamed El-Erian resigned in January.
Worst Returns

Its $232 billion Total Return Fund produced the worst risk- adjusted return over the past year among 16 U.S. intermediate- term funds with at least $5 billion in assets, according to the Bloomberg Riskless Return Ranking. As shorter-term debt tumbled in anticipation of rising interest rates, Gross’s fund posted the second-worst returns and second-highest volatility in the group.
When Gross sells, it resonates throughout the market — and a world of falling bond prices may be about to take hold. Analysts surveyed by Bloomberg predict yields on the 10-year Treasury note will climb to 3.33 percent at year-end and to 3.6 percent in the first half of 2015 from 2.62 percent on April 11.

The SEC’s priorities for the year include monitoring “the risks associated with a changing interest-rate environment and the impact this may have on bond funds,” according to a January memo from the agency’s Office of Compliance Inspections and

“There’s a market until there isn’t one,” said Tim Gramatovich,
who helps manage more than $800 million as chief investment officer of Santa Barbara, California-based Peritus Asset Management LLC. “What happens when there’s no bid?”

–With assistance from Charles Stein in Boston, Alexis Leondis, Miles Weiss and Craig Torres in Washington and Christine Harper in New York.

To contact the reporter on this story: Lisa Abramowicz in New York at To contact the editors responsible for this story: Bob Ivry at Caroline Salas Gage

75 Most Powerful Blacks on Wall Street


James Reynolds, CEO of Loop Capital Markets L.L.C. (No. 1 in taxable securities with $29.03 billion in lead issues and No. 2 in tax-exempt securities with $2.83 billion in lead issues on the BE Investment Banks list) hired nearly 25 people who had been downsized from bond departments at several large financial institutions, such as Bank of America and Goldman Sachs, that exited those lines of business.

This same staff helped Loop Capital service a broader pool of bond buyers; their expertise was critical to the firm’s landing a significant piece of business—a structured underwriting of nearly $1 billion in general obligation refunding bonds for New York City.

Black in America: The New Promised Land – Silicon Valley


Silicon Valley’s startup scene is mostly young, male and white.

In response, the NewMe incubator brought 8 black entrepreneurs together for a two-month immersion in San Francisco.

CNN’s Black in America 4 and CNNMoney will track their journey.

Here are their stories, as told to CNNMoney’s Julianne Pepitone.


The Wealth Choice: Success Secrets of Black Millionaires

wealth choice

It’s no secret that these hard times have been even harder for the Black community.
Approximately 35 percent of African Americans had no measurable assets in 2009, and 24 percent of these same households had only a motor vehicle.

Dennis Kimbro, observing how the weight of the continuing housing and credit crises disproportionately impacts the African-American community, takes a sharp look at a carefully cultivated group of individuals who’ve scaled the heights of success and how others can emulate them.

Based on a seven year study of 1,000 of the wealthiest African Americans, The Wealth Choice offers a trove of sound and surprising advice about climbing the economic ladder, even when the odds seem stacked against you.


Readers will learn about how business leaders, entrepreneurs, and celebrities like Bob Johnson, Spike Lee, L. A. Reid, Herman Cain, T. D. Jakes and Tyrese Gibson found their paths to wealth; what they did or didn’t learn about money early on; what they had to sacrifice to get to the top; and the role of discipline in managing their success.Read a few pages..


Mercedes-Benz ([mɛʁˈtseːdəs ˈbɛnts]) is a multinational division of the German manufacturer Daimler AG, and the brand is used for luxury automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, Baden-Württemberg, Germany.

The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-Motoren-Gesellschaft’s 1901 Mercedes and to Karl Benz’s 1886 Benz Patent Motorwagen, which is widely regarded as the first automobile.

Mercedes-Benz’s slogan is “Das Beste oder nichts” (English: “The best or nothing”).

Mercedes-Benz is part of the “German Big 3” luxury automakers, along with Audi and BMW, which are the three best selling luxury automakers in the world.


Tiger Woods

Net worth: $600 million

Source of wealth: Golf, endorsements

Residence: Orlando, Fla.

Age: 33

Golf prodigy showed off his putting skills on The Mike Douglas Show at age 2, has dominated the links ever since. Left Stanford University after two years at age 20 in 1996 to turn pro. Has since won 66 PGA tournaments, including 14 major championships.

Now hunting Jack Nicklaus’ record of 18 major career wins. Named PGA Player of the Year nine times. Total career winnings: $84 million. Intensely marketable; annual on-course winnings represent less than 15% of his income.

Lucrative sponsorship contracts from Nike, Gatorade, Gillette, Accenture, AT&T and others earn him at least $100 million each year. Returned to competitive golf in February after rehabbing knee injury for eight months.

Dramatically won the Arnold Palmer Invitational by one shot a few weeks later. Rare comment in 1995 on his ethnic background: “The various media have portrayed me as African-American and Asian. I am both.”

Black Female Billionaire


Isabel dos Santos, the oldest daughter of Angola’s longtime president, Jose Eduardo dos Santos, debuts on the Forbes list of the World’s Billionaires with a fortune estimated at a minimum of $2 billion.

She is Angola’s first billionaire and the richest woman in Africa.

Her first business, opened in 1997 when she was 24, was a restaurant called Miami Beach in Luanda, the Angolan capital.


Oprah Winfrey

Net worth: $2.7 billion

Source of wealth: Harpo Productions

Residence: Chicago

Age: 55

The Oprah brand continues to hold its value despite the recession, as viewers tune in for money-saving tips, celebrity interviews and relationship advice.

Rural Mississippi native worked the television news circuit in Nashville, Tenn., and Baltimore, Md. Transformed faltering Chicago morning program into popular talk show.

Launched The Oprah Winfrey Show nationally in 1986; now airs in 144 countries, brings in 44 million U.S. viewers each week. Her Harpo Productions helped create the Dr. Phil and Rachael Ray shows; Dr. Oz show due out this fall.

Media matriarch planning to launch Oprah Winfrey Network early next year. Foundation recently donated to schools in Newark, N.J., and Atlanta.


Step by step: Silver Lake’s $24 billion leveraged buyout of Dell



In this tutorial, we walk through Silver Lake’s $24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview.

Among other topics, we cover typical LBO case study questions to expect, why this particular deal was so unusual, and how to begin gathering data from industry reports, equity research, Dell’s filings and investor presentations, and other sources.

Then, we delve into how the transaction assumptions are set up, why the calculation for debt and equity is somewhat unusual, and how to factor in Michael Dell’s equity rollover and cash contribution and the company’s own excess cash usage.

Finally, we conclude with a discussion of the Sources & Uses schedule and how that works, plus a description of the different types of debt used in the transaction.


Silver Lake’s $24 billion leveraged buyout of Dell and explain the tasks you might have to complete if you were to analyze this deal as part of a case study in a private equity interview.

In Part 2 of the case study, we go into how you might project revenue and expenses for Dell, how to come up with different scenarios, and how to use “channel checks” to come up with numbers that are different from consensus estimates.

We also cover briefly how to link the 3 financial statements and ensure that these assumptions and scenarios flow through everything properly.

Please see the link at the top of this description to get all the Excel files and PDFs and other resources.


Bitcoin Tops $1,000 as Virtual Money Gains Popularity



Bitcoins were trading at $1,003 apiece today on Mt. Gox, one of the exchanges where the digital money can be traded for other currencies. On Bitstamp, the most active dollar-based marketplace among online exchanges, they were at $949.90. Bitcoins were trading at $12 to $13 a year earlier, and have quintupled this month.

Bitcoin Origins

Introduced in 2008 by a programmer or group of programmers going under the name of Satoshi Nakamoto, Bitcoins exist as software, which contain the rules governing their supply. New Bitcoins can only be created by solving complex problems embedded in the currency, keeping total growth limited. There are more than 12 million Bitcoins in circulation, according to Bitcoincharts, a website that tracks activity across various exchanges.

Bitcoin is being used to pay for everything from Gummi bears to smartphones on the Internet. The virtual curency can also be traded without being tracked, potentially reducing banking-transaction fees and making it an attractive tender for those seeking to buy and sell via the Web or in stores.

When Silk Road was shut down, the virtual currency lost a third of its value within days as holders sold, predicting a crackdown. Instead, the willingness of authorities to stamp out illegitimate use has come to be seen as an endorsement for Bitcoins, making users and investors more comfortable taking risks with digital money.

Bitcoin also gained further legitimacy and attention when a subsidiary of Baidu Inc. (BIDU), China’s top search engine, started accepting Bitcoins on Oct. 15. Chinese Bitcoin activity has exploded, with the number of yuan-based trades jumping 30-fold in the past two months and making BTC China the top online-exchange by volume.


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