Steve Feinberg
Encyclopedia
Stephen A. Feinberg is an American
businessman active in the field of private equity
. He is the founder and head of Cerberus Capital Management
.
, a relatively poor suburb of New York City
. His father was a steel salesman.
He attended Princeton University
in New Jersey
, graduating with a degree in politics in 1982. While there, he captained the tennis
team and joined the Reserve Officer Training Corps.
and Gruntal & Co.
In 1992 Feinberg teamed up with William L. Richter to found Cerberus Capital Management with just $10 million under management. Feinberg has been at the helm of the firm since its founding. Later alliances with J. Ezra Merkin
were important for raising capital. Subsequent hirings of former politicians and lobbyists John Snow
, Dan Quayle
and others have served as door-openers in Washington and abroad.
The 2007 Cerberus purchase of Chrysler
Corp. from Germany
's Daimler Benz became a major and, as of 2009, unsuccessful initiative by Feinberg into a higher-profile investment. Feinberg and others at the firm explicitly presented the investment as patriotic, but many critics ultimately questioned that characterization, especially after Chrysler had to seek and take federal
aid. (Chrysler now, with federal help, has been sold to Fiat
.) As of 2009, Cerberus was facing major calls from its investors for redemptions, and had written down its investment in Chrysler to 19 cents on the dollar. Had there not been the federal bailout, the investment could have been worth nothing.
's Upper East Side
with his wife Gisela and their three daughters.
His hobbies include game
hunting
, chess
, skiing
, and riding his Harley-Davidson
motorcycle
.
Steve and Gisela Feinberg are prolific donors to the Republican Party
and related organizations. Former Republican Vice President of the United States
Dan Quayle
works for Cerberus as Chairman of Global Investments, and former United States Secretary of Defense
Donald Rumsfeld
was a client.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman active in the field of private equity
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....
. He is the founder and head of Cerberus Capital Management
Cerberus Capital Management
Cerberus Capital Management, L.P. is one of the largest private equity investment firms in the United States. The firm is based in New York City, and run by -year-old financier Steve Feinberg. Former U.S...
.
Early life
Feinberg was born in the Bronx, NY. At eight his family moved to Spring Valley, New YorkSpring Valley, New York
Spring Valley, incorporated on July 9, 1902 is a village spanning the Town of Ramapo and Town of Clarkstown in Rockland County, New York, United States located north of Nanuet; east of Airmont and Monsey; south of Hillcrest and west of West Nyack...
, a relatively poor suburb of New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. His father was a steel salesman.
He attended Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, graduating with a degree in politics in 1982. While there, he captained the tennis
Tennis
Tennis is a sport usually played between two players or between two teams of two players each . Each player uses a racket that is strung to strike a hollow rubber ball covered with felt over a net into the opponent's court. Tennis is an Olympic sport and is played at all levels of society at all...
team and joined the Reserve Officer Training Corps.
Professional career
After graduating from college, Feinberg worked as a trader at Drexel BurnhamDrexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
and Gruntal & Co.
Gruntal & Co.
Gruntal & Co. was a boutique investment banking and brokerage firm based in New York City. Prior to its acquisition in 2002, the firm was among the oldest independent investment banking houses in the U.S....
In 1992 Feinberg teamed up with William L. Richter to found Cerberus Capital Management with just $10 million under management. Feinberg has been at the helm of the firm since its founding. Later alliances with J. Ezra Merkin
J. Ezra Merkin
Jacob Ezra Merkin is a former money manager and financier. He was a close business associate of Bernard Madoff, and is alleged to have played a significant part in the Madoff fraud. He served as the Non-executive Chairman of GMAC until his resignation on January 9, 2009, at the insistence of the...
were important for raising capital. Subsequent hirings of former politicians and lobbyists John Snow
John Snow
John Snow or Jon Snow may refer to:* Jon Snow, British newscaster* John Snow , founder of epidemiology and a major contributor to the development of anaesthesia* John W. Snow, 73rd United States Secretary of the Treasury...
, Dan Quayle
Dan Quayle
James Danforth "Dan" Quayle served as the 44th Vice President of the United States, serving with President George H. W. Bush . He served as a U.S. Representative and U.S. Senator from the state of Indiana....
and others have served as door-openers in Washington and abroad.
The 2007 Cerberus purchase of Chrysler
Chrysler
Chrysler Group LLC is a multinational automaker headquartered in Auburn Hills, Michigan, USA. Chrysler was first organized as the Chrysler Corporation in 1925....
Corp. from Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
's Daimler Benz became a major and, as of 2009, unsuccessful initiative by Feinberg into a higher-profile investment. Feinberg and others at the firm explicitly presented the investment as patriotic, but many critics ultimately questioned that characterization, especially after Chrysler had to seek and take federal
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
aid. (Chrysler now, with federal help, has been sold to Fiat
Fiat
FIAT, an acronym for Fabbrica Italiana Automobili Torino , is an Italian automobile manufacturer, engine manufacturer, financial, and industrial group based in Turin in the Italian region of Piedmont. Fiat was founded in 1899 by a group of investors including Giovanni Agnelli...
.) As of 2009, Cerberus was facing major calls from its investors for redemptions, and had written down its investment in Chrysler to 19 cents on the dollar. Had there not been the federal bailout, the investment could have been worth nothing.
Personal
Feinberg has been noted to be a very private person. Despite his considerable personal wealth (Feinberg reportedly made $50 million in 2004), his lifestyle is notably less extravagant than his peers in private equity. He lives on ManhattanManhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
's Upper East Side
Upper East Side
The Upper East Side is a neighborhood in the borough of Manhattan in New York City, between Central Park and the East River. The Upper East Side lies within an area bounded by 59th Street to 96th Street, and the East River to Fifth Avenue-Central Park...
with his wife Gisela and their three daughters.
His hobbies include game
Game (food)
Game is any animal hunted for food or not normally domesticated. Game animals are also hunted for sport.The type and range of animals hunted for food varies in different parts of the world. This will be influenced by climate, animal diversity, local taste and locally accepted view about what can or...
hunting
Hunting
Hunting is the practice of pursuing any living thing, usually wildlife, for food, recreation, or trade. In present-day use, the term refers to lawful hunting, as distinguished from poaching, which is the killing, trapping or capture of the hunted species contrary to applicable law...
, chess
Chess
Chess is a two-player board game played on a chessboard, a square-checkered board with 64 squares arranged in an eight-by-eight grid. It is one of the world's most popular games, played by millions of people worldwide at home, in clubs, online, by correspondence, and in tournaments.Each player...
, skiing
Skiing
Skiing is a recreational activity using skis as equipment for traveling over snow. Skis are used in conjunction with boots that connect to the ski with use of a binding....
, and riding his Harley-Davidson
Harley-Davidson
Harley-Davidson , often abbreviated H-D or Harley, is an American motorcycle manufacturer. Founded in Milwaukee, Wisconsin, during the first decade of the 20th century, it was one of two major American motorcycle manufacturers to survive the Great Depression...
motorcycle
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...
.
Steve and Gisela Feinberg are prolific donors to the Republican Party
Republican Party (United States)
The Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
and related organizations. Former Republican Vice President of the United States
Vice President of the United States
The Vice President of the United States is the holder of a public office created by the United States Constitution. The Vice President, together with the President of the United States, is indirectly elected by the people, through the Electoral College, to a four-year term...
Dan Quayle
Dan Quayle
James Danforth "Dan" Quayle served as the 44th Vice President of the United States, serving with President George H. W. Bush . He served as a U.S. Representative and U.S. Senator from the state of Indiana....
works for Cerberus as Chairman of Global Investments, and former United States Secretary of Defense
United States Secretary of Defense
The Secretary of Defense is the head and chief executive officer of the Department of Defense of the United States of America. This position corresponds to what is generally known as a Defense Minister in other countries...
Donald Rumsfeld
Donald Rumsfeld
Donald Henry Rumsfeld is an American politician and businessman. Rumsfeld served as the 13th Secretary of Defense from 1975 to 1977 under President Gerald Ford, and as the 21st Secretary of Defense from 2001 to 2006 under President George W. Bush. He is both the youngest and the oldest person to...
was a client.