When it comes to testing next-gens’ mettle, how much of the business should be placed in their hands? That’s a question many family business owners have asked themselves – and often struggled to answer.
But not Carl Icahn, the well-known hedge fund manager, whose family controls Icahn Enterprises – a $24 billion (€19.6 billion) holding company.
He’s decided to encharge his son, Brett, and David Schechter – an employee of Icahn Enterprises – with as much as $3 billion, according to US regulatory filings.
The pair, who began managing the money on 1 August, have been given the go-ahead to invest in listed companies with stock market valuations of between $750 million and $10 billion.
But Icahn Sr will oversee the investment strategy – and the pair will need to get the 76-year-old’s approval for certain investments.
The move should give Brett a chance to prove his mettle as a successor to his father, who Forbes reckons is worth $14 billion. The younger Icahn first began working with his dad 10 years ago, after graduating from Princeton. Since 2010 Brett and Schechter have been managing $300 million of Icahn’s fortune – it’s already doubled in value, according to filings.
Icahn began working on Wall Street in the early 1960s and by the end of the decade had started his own securities firm.
In the late 1970s, he began taking controlling positions in companies and later gained a reputation for being a ruthless activist investor.