Kenneth Dart
Kenneth Bryan Dart | |
|---|---|
| Born | 1955 (age 68–69) Mason, Michigan, US |
| Nationality | Cayman Islands, Belize, Ireland |
| Alma mater | University of Michigan Cranbrook Kingswood School |
| Occupation | Businessperson |
| Known for | Formerly Michigan's wealthiest person |
Kenneth Bryan Dart (born 1955) is a Cayman Islands-based billionaire businessman.[1] His family founded Dart Container, a food and beverage packaging company and the owner of the Solo Cup Company.[1] Dart owns real estate development and investment companies in the U.S. and Cayman Islands and developed the town of Camana Bay.[1] He maintains a low profile and is known for his focus on privacy.[2] He is also a citizen of Belize and Ireland.[3]
Early life and family
[edit]Kenneth “Ken” Dart was born in 1955 in Mason, Michigan.[4] He was the middle of three sons.[4] His grandfather, William F. Dart, and his father, William A. Dart, had a family business that made metal rulers, military dog tags and a marble game for kids.[5] In 1960, his family founded Dart Container Corporation, now the world's largest manufacturer of foam cups and containers; by 2006, it had with an estimated $1.1 billion in sales.[6]
In 1976, Dart graduated from the University of Michigan with a degree in mechanical engineering.[4] He then joined the Dart Container Corporation; in 1986 he was named president.[4][7] In 2001 his brother Robert succeeded him in this role while Kenneth transitioned to the board of directors, where he continues to serve.
In 1986, Dart's father divided the Dart holdings among trusts set up for his three sons. The eldest son, Tom, received Dart Energy; the cup business went to Ken and Robert, the youngest son.[5] In 1986, Ken moved to Sarasota, Florida.[5]
In the mid-1990s Ken and Robert both renounced their American citizenship. Ken took Caymanian, Belizean and, later, Irish citizenship. Robert holds Belizean and Irish citizenship, and resides in London.[3][8] Ken moved his residence to the Cayman Islands and in 1994 converted what was the beachfront West Indian club into his home.[9] Ken Dart has three daughters.[2]
In 1994, Dart became a citizen of Belize. At that time Dart offered his residence in Sarasota, Florida, to the government of Belize as a consulate with himself as its consul. This would have allowed him to live in the United States full-time as a foreign diplomat, avoiding any actions by the Internal Revenue Service; the State Department rejected the arrangement.[10] The Reed Amendment of 1996, a tightening of U.S. tax laws concerning expatriates, was partially spurred by the Dart brothers' renunciation of their citizenship to avoid paying taxes.[11][12]
Businesses
[edit]Dart is an investor involved in various industries including real estate and finance.[9]
Dart Enterprises
[edit]Dart Enterprises is a group of companies that holds Cayman Islands real estate and operates businesses.[9]
Real estate
[edit]In 1995, Dart purchased the Coral Caymanian Hotel and its 236 acres of land, which was developed into the town of Camana Bay.[13][9] Planning for Camana Bay began in 1996, ground was broken in 2005, Cayman International School opened in 2006, and the first businesses opened in 2007.[13] Camana Bay’s master plan includes many phases that will take multiple decades to complete on the 685-acre site close to Seven Mile Beach.[9]
As of 2024, Dart was believed to be the largest landowner in the Cayman Islands.[2] Other Dart properties include:
- The Ritz-Carlton, Grand Cayman[1][9]
- The Kimpton Seafire Resort and Spa[1]
- The Cayman Islands Yacht Club [9]
- Regatta Office Park[14]
- Flagship Building[14]
- Hampton by Hilton[15]
- Hotel Indigo[16]
- The Four Seasons Resort and Residences Anguilla.[17]
The New York Times has described Dart as an investor in New York financial district skyscrapers 161 Water Street (formerly addressed as 175 Water Street) and 180 Maiden Lane (also known as the Continental Center).[18]
Dart Interests
[edit]Dart Interests is Dart’s Dallas-based national real estate and development firm in the U.S.[19] The company has projects in multiple states and includes multifamily, hospitality and resort, mixed-use and for-sale condominiums.[19] Dart Interests developed Evermore Orlando Resort, located next to Walt Disney World, which covers more than 1,100 acres with a 20-acre beach complex and an 8-acre pool called Evermore Bay.[20] The $1.5 billion resort opened on January 1, 2024.[20]
In 2023, Dart Interests purchased the Fort Worth Central Library. The city selected Dart Interests from three bidders. The development will include space for a new library.[21]
Dart Neuroscience
[edit]Dart founded Dart Neuroscience in 2008 to pursue scientific research and technologies to develop therapies that could enhance human memory and cognitive abilities.[22] The company created the Extreme Memory Tournament (XMT), in which 16 global memory athletes competed in recall contests; one winner recited 80 random numbers after studying them for 21.01 seconds.[23] Dart invested over $700 million in Dart Neuroscience before closing the business in 2017, citing a lack of progress in memory improvement.[22]
Investments
[edit]Dart is known for investments in sovereign debt, concentrated and often contrarian equity positions, and campaigns for minority shareholder rights in emerging economies.[24]
Early investments
[edit]After the Dart Family Trust was restructured in 1986, Dart deployed the available capital into investments through Dart Financial Corporation.[5]
- Freddie Mac: In 1991, Ken Dart invested $300 million in the Federal Home Loan Mortgage Corporation “Freddie Mac”, a 10.8% stake.[5] He also invested in mortgage-backed securities issued by the Federal National Mortgage Association (Fannie Mae). A few years later, he realized a return of more than 300%.[5]
- Salomon Inc.: In October 1991, Ken Dart purchased a 5.74% stake in Salomon Inc, parent company of Salomon Brothers, making Dart the second largest shareholder.[25]
Sovereign debt
[edit]Dart has purchased the debt of numerous countries and participated in debt reconstruction. These include Ecuador, Ivory Coast, Mexico, Nigeria, Peru, Poland, Russia, Ukraine, and Venezuela.[24]
Brazil
[edit]Dart began buying Brazilian debt in the 1990s. In 1991 and 1992, Dart was the fourth-largest debt holder of private debt during the final stages of a restructuring packages.[26] Dart’s high-risk approach drew attention when Dart signed on the proposed restricting package and selected an option based on uncollateralized bonds instead of U.S. Treasury-back low-interest bonds selected by other creditors.[27] When Brazil amended its proposal to shift 35% of Dart’s position into the discount bonds, Dart opposed the revised terms. The dispute was settled, and the restructuring closed, after Brazil agreed to pay a portion of Dart’s overdue interest.[27]
Greece
[edit]During the Greek financial crisis, Dart was part of a group of investors that held more than $8.2 billion in bonds and did not participate in a proposed exchange in 2012.[28] Greek officials chose to repay Dart and other creditors in full for a total of €436 million. Dart received almost 90% of the initial payout.[28][29][30]
Argentina
[edit]Argentina entered a deep recession in 1998 and in late 2001 defaulted nearly $100 billion in debt represented by more than 150 types of bonds.[31] Citing unsuccessful attempts to begin negotiation discussion with Argentina’s representatives which refused to negotiate for four years, Dart company EM Ltd. filed suit in the Southern District Court of New York in 2003 and was awarded a $700 million judgment for defaulted bonds a week before Argentine bondholders rejected a 25% redemption offer.[32] The Argentine debt restructuring was one of the longest sovereign debt restructuring processes in history followed with EM Ltd. rejecting restructuring proposals in 2005 and 2010.[33] EM attempted to enforce judgements it received in the U.S. courts during that period. In 2013 creditors including EM Ltd. won a decision from the United States Court of Appeals for the Second Circuit in New York that rejected a repayment plan from Argentina, called for repayment to all bondholders and referred to the country as a “uniquely recalcitrant debtor”.[33] The US Supreme Court rejected Argentina’s appeals in June 2014.[34] The rulings forced Argentina to miss bond payments in July 2014, which caused the country to be declared in selective default by Standard & Poor's and in restrictive default by Fitch Ratings, meaning that Argentina failed to meet some of their obligations while meeting others.[35] By 2017, Argentina's new president Mauricio Macri had settled with holdouts and was able to access the international capital markets.[36]
Other investments
[edit]Russia
[edit]In 1991, following the collapse of the Soviet Union, Dart was one of the first investors in the independent Russian state.[37] Along with private investments into various sectors, Dart and his firm bought Russian bonds.[37] During the late 90s when Russian stock scandals were dissuading foreign investors, Dart’s companies led a group of private investors in a campaign for transparent corporate governance and the rights of minority shareholders.[38] Yukos, the country’s second biggest oil company, used stock issues to attempt to skirt creditors and minority shareholders in its subsidiaries.[39]
Equity investments
[edit]Dart owns a 6% stake in Imperial Brands, and in 2023, he increased his investment in British American Tobacco, now owning more than 10% of the company. The original investment was disclosed in 2020.[40]
Community involvement
[edit]Dart Center for Journalism and Trauma
[edit]Since 1991, through the Dart Foundation and Kenneth B. Dart Foundation, Ken Dart and the Dart Family have provided continuous funding for the only academic institution devoted to trauma-informed journalism, linking news professionals, scientific researchers, clinicians and victim advocates worldwide. [41] Since 2009 the Dart Center for Journalism and Trauma has been a project of Columbia University’s Graduate School of Journalism in New York.[42]
References
[edit]- ^ a b c d e Katy Lederer (October 18, 2019). "Why Is a Secretive Billionaire Buying Up the Cayman Islands?". New York Times. Retrieved April 3, 2020.
- ^ a b c Iredale, Jessica (November 29, 2024). "The Price of Being Cool? A Quarter-Billion Dollars". The New York Times. Retrieved November 29, 2024.
- ^ a b Profile, bloomberg.com; accessed September 6, 2015.
- ^ a b c d "Bloomberg Billionaires Index". Bloomberg.com. 2024-09-12. Retrieved 2024-09-13.
- ^ a b c d e f Vogel, Mike (September 1, 2000). "His Cup Runneth Over". Florida Trend. Retrieved 2024-10-09.
- ^ Top Family Businesses Archived 2006-08-23 at the Wayback Machine
- ^ "Ken Dart profile". Archived from the original on 2014-02-08. Retrieved February 22, 2014.
- ^ Elizabeth Lesly (July 9, 1995). "The Darts: Fear, Loathing, And Foam Cups". Bloomberg Businessweek. Archived from the original on May 19, 2012. Retrieved February 22, 2014.
- ^ a b c d e f g Jonathan Kent (February 14, 2020). "Dart: billionaire's business drives Cayman's development boom". The Royal Gazette. Retrieved April 3, 2020.
- ^ Kathy M. Kristof (June 15, 2008). "The U.S. cracks down on rich tax evaders". Los Angeles Times. Retrieved February 22, 2014.
- ^ Jack Reed, Senator (June 12, 2013). "Reed Offers Amendment to prevent Ex-Citizen Tax Dodgers from Reentering the U.S." Archived from the original on June 17, 2013. Retrieved March 1, 2014.
- ^ Lederer, Katy (2019-10-18). "Why Is a Secretive Billionaire Buying Up the Cayman Islands?". The New York Times. ISSN 0362-4331. Retrieved 2019-11-29.
- ^ a b Stoner, Tad (2017-11-10). "Camana Bay celebrates a decade of development". Cayman Compass. Retrieved 2024-10-03.
- ^ a b "Cool bar plan for flagship building". Cayman Compass.
- ^ "Dart highlights $500 million 'pipeline' of projects". Cayman Compass.
- ^ Akella, Surya (2024-05-09). "IHG opens Hotel Indigo Grand Cayman in Cayman Islands". Hotel Management Network. Retrieved 2024-11-24.
- ^ "Four Seasons Resort and Residences Anguilla is sold". www.travelweekly.com. Retrieved 2024-10-26.
- ^ https://www.nytimes.com/2024/11/29/style/wsa-building.html
- ^ a b Staff, T. R. D. (2023-02-17). "Dart Interests plans two-tower development in downtown Fort Worth". The Real Deal. Retrieved 2024-09-30.
- ^ a b "Cayman Islands Billionaire Plans $1 Billion Bet on Vacation Rentals in Central Florida". CoStar.com.
- ^ Staff, T. R. D. (2023-02-17). "Dart Interests plans two-tower development in downtown Fort Worth". The Real Deal. Retrieved 2024-12-01.
- ^ a b Fikes, Bradley J. (2017-12-08). "San Diego's Dart NeuroScience closing, laying off 265". San Diego Union-Tribune. Retrieved 2024-12-03.
- ^ "The Race to Find 'Viagra for the Brain'". The Daily Beast. 2017-03-11. Retrieved 2024-12-05.
- ^ a b "Billionaire's Award May Snag Progress On Argentine Debt". Wall Street Journal.
- ^ "Dart Family Interests Acquire a 5.74% in Salomon". NYTimes.
- ^ "Darts Clash With Brazil Over Loans". NYTImes.
- ^ a b "Brazil Starts Signing Agreements on Debt". NYTimes.
- ^ a b Landon Thomas, Jr. (2012-05-15). "Bet on Greek Bonds Paid Off for 'Vulture Fund'". The New York Times. Retrieved 2014-02-26.
- ^ Nathalie Savaricas (2012-05-17). "'Vulture funds' circle as Greek fears grow". The Independent. Retrieved 2014-02-22.
- ^ Nick Dearden (2012-05-17). "Greece:here come the vulture funds". The Guardian. Retrieved 2014-02-26.
- ^ "Argentina Preparing Debt Plan". NYTimes.
- ^ "Kenneth Dart Gets a Cup of Cash". Wall Street Journal.
- ^ a b "Not Crying for Argentina but Fearful of a Ruling". NYTimes.
- ^ Argentina makes debt case in U.S. newspapers, yahoo.com, June 23, 2014.
- ^ Argentina rules to be in selective default, yahoo.com; accessed September 6, 2015.
- ^ DeFotis, Dimitra (March 6, 2017), "Argentina Debt Outlook Improving, Moody's Says", Barron's, retrieved April 4, 2020
- ^ a b Kenyon, John (1999-06-01). "Who Is Kenneth Dart?". The Moscow Times. Retrieved 2024-11-03.
- ^ "Russia: Dart and Yukos Duke it Out". Wall Street Journal.
- ^ "Major Russian Oil Firms Face Investigation of Abuse". The Wall Street Journal.
- ^ "Billionaire Kenneth Dart increases stake in BAT". Proactiveinvestors NA. 2023-12-12. Retrieved 2024-11-11.
- ^ "Dart Center". Journalist Trauma Support Network. Retrieved 2024-12-08.
- ^ "Dart Center for Journalism and Trauma at Columbia University's Graduate School of Journalism Receives $2.7 Million Gift | Columbia Journalism School". journalism.columbia.edu. Retrieved 2024-12-02.