Eduardo Elsztain
Encyclopedia
Eduardo Elsztain is a prominent Argentine businessman.
in 1960. His grandfather, Isaac Elsztain, had founded Inversiones y Representaciones S.A.
("Investments and Brokerage, Inc," or, IRSA) in 1943 as an independent realty. The younger Elsztain graduated from the Buenos Aires National College
, a prestigious public secondary school, and enrolled in the University of Buenos Aires
School of Economics, though he dropped out in 1981 to join his grandfather's firm (which was struggling at the time).
Elsztain purchased the family firm for US$120,000 through a partnership with fellow Argentine Jew Marcelo Mindlin. A stay in New York
in 1989-90 had introduced him to George Soros
, and the international financier became a leading investor in IRSA. The partnership with Soros became profitable for both parties, as the Argentine economy recovered during the 1990s from the severe stagflation
of the previous decade. IRSA entered the international equity market
s with Soros' backing in 1994, allowing it to enter the nation's lucrative agricultural sector
by purchasing Cresud, a leading landowner of prime pampas agricultural land, in 1994. IRSA became a leading local real estate development
firm during the 1990s, purchasing 13 up-market Buenos Aires office buildings and a leading local shopping mall
developer, Alto Palermo S.A. (APSA). Through APSA, the group purchased Buenos Aires Design, Galerías Pacífico
, Patio Bullrich
, Patio Olmos
, and a number of other leading Argentine shopping centers, as well as important tourist assests such as the Llao Llao Hotel
, a Bariloche mountain resort privatized in 1997.
Losses stemming from the economic crisis that began in 1998 led to the Soros Fund Management
's divesting of most of its IRSA interests by late 1999, however. The strong recovery in the Argentine economy after 2002 then fostered growth into the mortgage lending sector, with the purchase of 28% of the formerly state owned Banco Hipotecario
, and among its shopping centers, which as the source of half of IRSA's revenues, boosted the firm's income; in 2008, it developed Dot Buenos Aires, a 190,000m² (2 million ft²) shopping center and the largest building of its kind in Argentina.
Elsztain is an annual conferee at the World Economic Forum
in Davos
, and is active in Jewish philanthropic causes as the prime Argentine supporter and fundraiser for the World Jewish Congress
(WJC), for Taglit-birthright Israel, and as the President of Chabad
Argentina. Close to leading American Jewish executive Edgar Bronfman
, he was named Treasurer of the WJC in 2005, and its Chairman of the Governing Board (the group's second-highest post), in 2009.
Elsztain currently serves on the Board of Directors of Endeavor
, an international non-profit development organization that finds and supports high-impact entrepreneurs in emerging markets.
Career
Eduardo Sergio Elsztain was born in Buenos AiresBuenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
in 1960. His grandfather, Isaac Elsztain, had founded Inversiones y Representaciones S.A.
Inversiones y Representaciones Sociedad Anónima (IRSA)
Inversiones y Representaciones Sociedad Anónima is the leading real estate development firm in Argentina.-Overview:IRSA was founded as a realty by Isaac Elsztain, an Argentine Jewish immigrant, in 1943. The small independent realty, based in Buenos Aires, grew slowly and, as late as 1991, had a...
("Investments and Brokerage, Inc," or, IRSA) in 1943 as an independent realty. The younger Elsztain graduated from the Buenos Aires National College
Colegio Nacional de Buenos Aires
Colegio Nacional de Buenos Aires is a public high school in Buenos Aires, Argentina. In the tradition of the European gymnasium it provides a free education that includes classical languages such as Latin and Greek. The school is one of the most prestigious in Argentina...
, a prestigious public secondary school, and enrolled in the University of Buenos Aires
University of Buenos Aires
The University of Buenos Aires is the largest university in Argentina and the largest university by enrollment in Latin America. Founded on August 12, 1821 in the city of Buenos Aires, it consists of 13 faculties, 6 hospitals, 10 museums and is linked to 4 high schools: Colegio Nacional de Buenos...
School of Economics, though he dropped out in 1981 to join his grandfather's firm (which was struggling at the time).
Elsztain purchased the family firm for US$120,000 through a partnership with fellow Argentine Jew Marcelo Mindlin. A stay in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
in 1989-90 had introduced him to George Soros
George Soros
George Soros is a Hungarian-American business magnate, investor, philosopher, and philanthropist. He is the chairman of Soros Fund Management. Soros supports progressive-liberal causes...
, and the international financier became a leading investor in IRSA. The partnership with Soros became profitable for both parties, as the Argentine economy recovered during the 1990s from the severe stagflation
Stagflation
In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high...
of the previous decade. IRSA entered the international equity market
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
s with Soros' backing in 1994, allowing it to enter the nation's lucrative agricultural sector
Agriculture in Argentina
Agriculture is one of the bases of Argentina's economy.Argentine agriculture is relatively capital intensive, today providing about 7% of all employment, and, even during its period of dominance around 1900, accounting for no more than a third of all labor. Having accounted for nearly 20% of GDP as...
by purchasing Cresud, a leading landowner of prime pampas agricultural land, in 1994. IRSA became a leading local real estate development
Real estate development
Real estate development, or Property Development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others...
firm during the 1990s, purchasing 13 up-market Buenos Aires office buildings and a leading local shopping mall
Shopping mall
A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version...
developer, Alto Palermo S.A. (APSA). Through APSA, the group purchased Buenos Aires Design, Galerías Pacífico
Galerías Pacífico
Galerías Pacífico is a shopping centre in Buenos Aires, Argentina, located at the intersection of Florida Street and Córdoba Avenue.-Overview:...
, Patio Bullrich
Patio Bullrich
Patio Bullrich is an important shopping center in the Retiro section of Buenos Aires.-Overview:Designed by English Argentine architect Juan Waldorp, Patio Bullrich was originally built as an auction house in 1867 for the prominent local Bullrich family...
, Patio Olmos
Patio Olmos
Patio Olmos is an architecturally significant shoppng gallery in Córdoba, Argentina, and the city's most important.-History and overview:The development of a suburb southeast of Córdoba proper by developer Miguel Crisol was accompanied by a flurry of public investment...
, and a number of other leading Argentine shopping centers, as well as important tourist assests such as the Llao Llao Hotel
Llao Llao Hotel
The Llao Llao Hotel is located in the tourist resort of San Carlos de Bariloche within the .This famous hotel is situated in the foothills of the Andes on a hill between the Moreno Lake and Nahuel Huapi lakes....
, a Bariloche mountain resort privatized in 1997.
Losses stemming from the economic crisis that began in 1998 led to the Soros Fund Management
Soros Fund Management
Soros Fund Management LLC is an American, privately held, hedge fund management firm founded in 1969 by George Soros. In 2010 it was reported to be one of the most profitable firms in the hedge fund industry, averaging a 20% annual rate of return over four decades.-Overview:Soros Fund Management...
's divesting of most of its IRSA interests by late 1999, however. The strong recovery in the Argentine economy after 2002 then fostered growth into the mortgage lending sector, with the purchase of 28% of the formerly state owned Banco Hipotecario
Banco Hipotecario
Banco Hipotecario is an important commercial bank in Argentina and the nation's premier mortgage lender.-Overview:The institution was chartered on September 24, 1886, as the Banco Hipotecario Nacional by a bill signed by President Julio Roca...
, and among its shopping centers, which as the source of half of IRSA's revenues, boosted the firm's income; in 2008, it developed Dot Buenos Aires, a 190,000m² (2 million ft²) shopping center and the largest building of its kind in Argentina.
Elsztain is an annual conferee at the World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....
in Davos
Davos
Davos is a municipality in the district of Prättigau/Davos in the canton of Graubünden, Switzerland. It has a permanent population of 11,248 . Davos is located on the Landwasser River, in the Swiss Alps, between the Plessur and Albula Range...
, and is active in Jewish philanthropic causes as the prime Argentine supporter and fundraiser for the World Jewish Congress
World Jewish Congress
The World Jewish Congress was founded in Geneva, Switzerland, in August 1936 as an international federation of Jewish communities and organizations...
(WJC), for Taglit-birthright Israel, and as the President of Chabad
Chabad
Chabad or Chabad-Lubavitch is a major branch of Hasidic Judaism.Chabad may also refer to:*Chabad-Strashelye, a defunct branch of the Chabad school of Hasidic Judaism*Chabad-Kapust or Kapust, a defunct branch of the Chabad school of Hasidic Judaism...
Argentina. Close to leading American Jewish executive Edgar Bronfman
Edgar Bronfman
Edgar Bronfman may refer to:* Edgar Bronfman, Sr. , Canadian businessman and former long-time president of the World Jewish Congress* Edgar Bronfman, Jr. , CEO of the Warner Music Group...
, he was named Treasurer of the WJC in 2005, and its Chairman of the Governing Board (the group's second-highest post), in 2009.
Elsztain currently serves on the Board of Directors of Endeavor
Endeavor (non-profit)
Endeavor is a non-profit organization that pioneered the concept of High-Impact Entrepreneurship in emerging markets. Its mission is to “lead the global movement to catalyze long-term economic growth by selecting, mentoring, and accelerating the best High-Impact Entrepreneurs around the...
, an international non-profit development organization that finds and supports high-impact entrepreneurs in emerging markets.