Tim Geithner Could Easily Become A Billionaire If He Plays His Cards Right
Since then journalists, like Andrew Ross Sorkin over at Dealbook, have been right to point out that Geithner isn't necessarily doing the old 'leave-the-public-sector-to-join-the-dark side' move with this new job.
Warburg Pincus is no Goldman Sachs, with 'tentacles' in every transaction on the face of the planet.
It's no Blackstone either (which is more comparable as a private equity firm). Blackstone is a public company, Warburg is private. As of December 2012, Blackstone had $202 billion in assets under management, which dwarfs Warburg's $35 billion.
But that could all change with an aggressive push in the right direction. By hiring Geithner, Warburg Pincus has shown that it wants to expand its network through his Rolodex. Totally fine.
The firm also just did the biggest deal in its history this fall, flipping Bausch & Lomb Holdings Inc for $8.7 billion. Warburg bought it in 2007 for $4.5 billion.
So the ambition necessary to make Geithner fabulously wealthy could be there on the firm's part. And it just so happens that in private equity, there's a bit of a playbook for turning the C-level executives into
KKR did it in 2010 with $55 billion under management - they had a better showing, and of course co-founders Henry Kravis and George Roberts got to join the billionaires club as well.
The master of this play though, has to be Blackstone Group. The firm went public in 2007, and at the time it was one of the largest IPOs in the U.S. in five years. Current CEO Steve Schwarzman got even richer than he already was - rich enough to throw lavish birthday BLOWOUTS with celebs for the rest of his life.
And so did Schwarzman's co-founder, former public servant Pete Peterson. He made $1.8 billion off the IPO, retiring shortly after. Before that Peterson worked in Nixon the administration as Secretary of Commerce.
So guys, there's hope for Geithner yet.
- 'Quiet quitting' is a bad idea, experts say. Here are 6 things you can do instead to get the same results if you're looking for better work-life balance – or to lighten your workload
- Wipro, Infosys, Tech Mahindra revoke offer letters given to freshers: Reports
- Reliance Jio and Airtel 5G prices may be affordable for now but expected to increase after wider rollout
- Omnichannel becomes omniscient as retailers gear up for revenge festive celebration
- Redmi Pad Review: A decent tablet for the masses
- Electronics Mart India IPO is subscribed 1.69 times on day 1
- Big B’s best movies are back on the big screens - Here are 11 you can watch
- Reliance Jio to begin beta trial of 5G in four cities on Dussehra with unlimited data
- Tata Tiago Electric Car
- HCL Tech
- World Heart Day 2022
- Apple Tablets in Amazon Sale
- RBI Repo Rate
- Akash Ambani
- Amazon festival Sale
- Upcoming new Mobile in October
- Amazon Festival Sale
- Best Companies for Work
- India's Richest People
- RBI Interest Rate hike
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World