ED CARPENTER
Founder, chairman, chief executive
Carpenter & Co., Irvine
Managing member of general partner Carpenter Community BancFund, Irvine
Born in Salix, Iowa
Age: 65
Lives in Newport Beach
WHY: Longtime bank adviser. Has more than 1,200 bank assignments as consultant. Heads a private equity fund that also is a bank holding company. Owns controlling stakes in five community banks throughout California, including two in Orange County.
HOW: Started banking career at Security Pacific National Bank in Los Angeles after earning MBA at California State University, Long Beach. Formed Carpenter & Co. in 1974. Worked with regulators to manage assets for Resolution Trust Corp. during the savings-and-loans crisis in the 1980s. Set up Carpenter Community BancFund in 2008 to provide capital to small banks. Taken five banks from combined losses to profitability since then.
RECENT: Portfolio banks have grown assets to a collective $4 billion. Carpenter has plans to hit $4.5 billion mark by year’s end. Boosted ownership stake in Costa Mesa-based Pacific Mercantile Bancorp to 34% from about 28% earlier this year, when Carpenter’s private equity fund bought an additional $15 million worth of common stock from the company. Carpen-ter became chairman of the board of Pacific Mercantile last year. Appointed Steven Buster as new chief executive for Pacific Mercan-tile last month following retirement of Raymond Dellerba.
PERSONAL: Son of corn farmers. Invests in vineyards, travels often to Napa Valley. Member of World Presidents’ Organization. Trustee of alma mater Loyola Marymount University. Admitted to LMU Alumni Entrepreneurship Wall of Honor last year. Director of International Medical Corps. Has served on committees and boards of state organizations, including California Department of Corporation’s Industrial Bank Advisory Board and California State Banking Department’s Advisory Board. Served as member of review committees for Office of the Comptroller of the Currency in Washington, D.C.
— Jane Yu
WILLIAM H. GROSS
Founder, co-chief investment officer,
managing director
Pacific Investment Management Co., Newport Beach
Born in Middletown, Ohio
Age: 69
Lives in Laguna Beach
WHY: Founder and co-chief investment officer of Pimco, world’s largest bond fund manager, with $2 trillion in total assets under management. Heads firm’s flagship mutual fund, the Total Return Fund, along with its ETF counterpart.
HOW: Part of trio that founded Pimco in Los Angeles in 1971. Firm began as a separate accounts manager for Paci-fic Life Insurance Co. Moved to Newport Beach in 1972. Split from parent company in 1994 and became part of a publicly traded entity, Pimco Advisors LP. German insurer Allianz SE bought a 70% stake in Pimco in 2000, and Pacific Life sold its remaining interest of $288 million in 2008.
RECENT: Has been taking smaller share of Pimco’s overall mutual fund assets. Pimco is reportedly grooming younger investors in anticipation of Gross’ retirement. Gross manages about 63% of Pimco’s mutual fund assets, compared with 84% a decade ago. His Total Return Fund—which reached $289.09 billion in assets—got 19% of Pimco’s new mutual fund deposits over two-year stretch through March. Compares with 42% in prior span and 79% before that, according to market research firm Morningstar. Gross increased Total Return’s allocation of Treasurys to 33% in March from 28% in February, while decreasing mortgage exposure to 33% from 36%. Will be co-manager of three upcoming ETFs: Pimco Real Return, Diversified Income and Low-Duration. Gross pointed to gold as his choice of investment for 2013 at a Barron’s Roundtable in January. Tweeted it was a “bad call” when gold price plummeted in April, but said he would “still buy gold,” citing global reflation. Gross and Ramin Toloui, co-head of Pimco’s emerging-markets portfolio, received a U.S. patent for methodology behind firm’s global bond index.
PERSONAL: Avid stamp collector. Sold pieces from U.S. stamp collection last month in an auction in New York, generating more than $2 million. Proceeds will be donated to Doctors Without Borders and the Millennium Villages Project at Columbia University. Gave $20 million late last year to Cedars-Sinai Medical Center in Los Angeles with wife, Sue. Money will go toward the hospital’s new Advanced Health Sciences Pavilion, which includes a surgical center named after the couple. Also pledged $4 million to University of California, Irvine’s Sue & Bill Gross Stem Cell Research Center, calling for a matching donation. Regular Barron’s Roundtable panelist and media commentator. Author: Everything You’ve Heard About Investing Is Wrong (1997), Bill Gross on Investing (1998).
—Jane Yu
MOHAMED A. El-ERIAN
Chief executive, co-chief investment officer, managing director
Pacific Investment Management Co., Newport Beach
Born in New York
Age: 54
Lives in Laguna Beach
WHY: Oversees investment policies and strategies for largest bond fund management firm in the world.
HOW: Joined Pimco in 1999 as senior member of portfolio management. Left for stint as chief executive of Harvard Man-agement Co., which oversees the school’s endowment, in 2006.
Returned to Pimco in 2007. Has 15 years of work at the Inter-national Monetary Fund prior to Pimco.
RECENT: Appointed by President Barack Obama as chairman of the U.S. Global Development Council, a group formed about a year ago to help fuel global economic development and boost joint efforts between private and public sectors. Received 2012 American Muslim Achievement Award from the Islamic Center of Southern California. Recent outlook on U.S. economy measured down, noting consequences of federal budget cuts could drag GDP of “already sluggish” economy. Called “heir-apparent” by Bill Gross (see related entry). El-Erian rejected notion that he could be candidate for Egypt’s prime minister post.
PERSONAL: Serves on the boards of the National Bureau of Economic Research and the Carnegie Endowment for International Peace. Served on U.S. Treasury Borrowing Advisory Committee, the International Center for Research on Women, Peterson Institute for International Economics and the IMF’s Committee of Eminent Persons. Named to Foreign Policy’s list of Top 100 Global Thinkers last year, marking fourth-straight year. Regular media commentator. Author of When Markets Collide, New York Times and Wall Street Journal best-seller. New York Mets fan.
— Jane Yu
WILLIAM LINK
Cofounder, managing director
Versant Ventures Inc., Menlo Park
Born in Morenci, Mich.
Age: 66
Lives in Irvine
WHY: Cofounder and managing director of $1.6 billion venture capital firm with focus on early-stage medical device companies. Works out of Newport Beach office.
HOW: Three-time Purdue University alum. Got bachelor’s, master’s and doctorate degrees there in mechanical engineering. Worked as assistant professor in department of surgery at Indiana University School of Medicine. Entered healthcare industry, had about 25 years in operations roles. Founded and sold several companies to large corporations over the years. List includes American Medical Optics Inc., which was sold to Allergan Inc. in 1986. Established Chiron Vision the same year, an ophthalmic surgical products company. Sold to Bausch & Lomb Inc. in 1997. Served as general partner at Brentwood Ven-ture Capital be-fore cofounding Versant in 1999. Chairman of eye device maker Glaukos in Lagu-na Hills, a director of Irvine-based heart valve maker Edwards Life-sciences Corp., among others. Past member of Forbes’ annual Midas List of top venture capitalists.
RECENT: Versant last month announced creation of Inception Sciences Canada, an expansion of its incubator platform Inception Sciences, which was formed in 2011 and has since launched three drug companies in San Diego. Firm also is among inaugural tenants at Mayo Clinic Business Accelerator, new center for early-stage companies in Rochester, Minn. Versant and other firms, including San Mateo-based Sanderling Ven-tures, expected to help startup companies locate capital. Link oversaw firm’s opening of new office in Twin Cities last June. Managing Partner Kirk Nielsen, formerly at Newport Beach office, oversees Minnesota location. Versant has participated in a number of fundraising rounds with other firms over past year. Recent investments in OC include Irvine-based startup CardiAQ Valve Technologies Inc.
PERSONAL: Founding member of American College of Ophthalmic Surgery. Co-chair of Foundation Fighting Blindness Annual Retinal Innovation Symposium. Serves on UCI biomedical engineering department advisory board, Gavin Herbert Eye Institute. Council member of Engineering Leadership Council at UCI Henry Samueli School of Engin-eering. Wife, Marsha, two children, three grandchildren. Aviator, enjoys hiking, skiing, bird hunting.
—Jane Yu
PAUL MERAGE
Chairman
MIG Capital LLC, Newport Beach
Born in Iran
WHY: Entrepre-neur, longtime venture investor, philanthropist, among OC’s wealthiest.
HOW: Has more than three decades working in consumer products. Stint included co-founding frozen-food manufacturing company Chef America Inc. in 1975 in Colorado. Grew it into one of largest food companies in U.S., mostly known for Hot Pockets products. Sold company to Nestlé in 2002 for $2.6 billion. Merage then established MIG—Merage Investment Group. Affiliates include alternative-investment firm MIG Capital LLC and MIG Real Estate, formerly Stoneridge Capital Partners, run by nephew Greg. MIG companies overall manage more than $1 billion in assets. Merage donated $30 million in 2005 to University of California, Irvine’s business school, which bears his name. He serves as chair of executive committee of dean’s advisory board.
RECENT: Recent additions to real estate investment portfolio include an April acquisition of Hilton Garden Inn in Tampa, the fourth hotel property in Florida for MIG Real Estate. Investment firm also owns and operates shopping centers, office and multifamily properties. Has acquired about 5.5 million square feet of property since 2009, totaling about $750 million in assets under management. Maintains real estate holdings throughout nine states, including California, Colorado, Hawaii, Texas and Wyoming, as well as Canada.
PERSONAL: Came to U.S. from Iran in early 1960s. Big on philanthropy, with focus on education and immigration issues. Paul & Elisabeth Merage Family Foundation gave about $1.5 million in 2011. Foundation gives to a number of causes, including UCI Foundation, Children First and Merage Institute of the American Dream, which provides grants to immigrant college seniors. Merage Foundation for U.S. Israel Trade gave about $378,000 in 2011 before it merged into Merage Institute. Runs U.S.-Israel Innovation Bridge Business Lead-ership Program.
—Jane Yu
JAMES T. MORRIS
Chairman, chief executive
Pacific Life Insurance Co., Newport Beach
Born in Bryn Mawr, Pa.
Age: 53
Lives in San Juan Capistrano
WHY: Chief executive of largest private company headquartered in Orange County.
HOW: Tenure at Pacific Life goes back to early 1980s, when Morris began as an assistant actuary. Moved up the ladder in life-insurance division and became senior vice president in 1996. Promoted to executive vice president in 2002 and chief insurance officer a few years after. Became chief operating officer in 2006 and chief executive the following year. Morris is 14th chief executive in 145-year history of PacLife. Company sells life-insurance products, annuities and mutual funds. It also operates through aircraft leasing subsidiary Aviation Capital Group and investment advisory group Pacific Asset Management.
RECENT: PacLife wrapped up 2012 with $123.7 billion in assets, a 7% increase year over year. Ranked No. 5 for overall life insurance sales in U.S. last year. Morris called 2012 results from in-vestment portfolio “outstanding” des-pite low-interest rate environment, which is challenge to industry. PacLife introduced Pacific PremierCare, universal life insurance product offering long-term care insurance benefits for policyholders. Also introduced first fixed-indexed annuity. Aviation Capital delivered record 32 new aircraft to 13 airlines. Ordered additional 60 aircraft. Currently has fleet of 250 planes.
PERSONAL: Recently named chairman of the board of directors of American Council of Life Insurers. Will serve one year. Chairman of Pacific Life Foundation. Last year’s charitable contributions totaled $5.6 million. 2012 projects included completion of $500,000 multiyear contribution to fund the Mind Research Institute’s bid to help local elementary and middle schools increase students’ math scores. PacLife Foundation saw $393,000 pledged by employees, which will be matched by the foundation in 2013. Morris serves on the board of directors of Hoag Hospital Foundation. Member of the board of visitors of UCLA Anderson School of Management. Past chair, Junior Achievement of Orange County. Fellow of the Society of Actuaries. Member of the American Academy of Actuaries. Bachelor’s in mathematics from UCLA. Wife, Ann, two children.
—Jane Yu
VINNY SMITH
Founder
Toba Capital, Irvine
Age: 48
WHY: Launched venture capital firm late last year, targeting “next generation of IT infrastructure.”
Longtime chairman and chief executive of Quest Software before its $2.4 billion sale to Dell Inc. last year. Netted some $800 million after sale.
HOW: Started career with Oracle. In 1992, launched San Francisco-based Patrol Software with Oracle colleague. BMC Software Inc. bought Patrol in 1994 for an estimated $33.7 million. Interest in Quest grew through investment his Insight Capital Partners made in 1995.
Took seat on Quest’s board and gradually became more involved. Became chief executive in 1997, chairman a year later after leaving a life on the Colorado ski slopes.
RECENT: Entered local billionaire’s club after Quest sale, set sights on funding emerging startups. Toba has led four of its five deals, including $4.5 million round for Irvine-based security software maker SecureAuth Corp. Toba looking nationwide, partnering with big-name tech players. Active real estate investor, with more than 20 projects in the works, mostly in California.
PERSONAL: Dedicating more time to philanthropy, recently gave $4 million grant to Mount Saint Joseph High School in Baltimore, where he attended. Seeded Newport Beach-based Gen Next Foundation with $1 million grant. Gave $1 million to Irvine-based nonprofit Fuel Freedom Foundation. His Teach a Man to Fish foundation backs Augie’s Quest, CureDuchenne and Orphaned Starfish, among other causes.
Loves action sports, surfing, snowboarding, skiing and hiking. Keeps low public profile in Orange County. California cool, favors jeans and ball cap. Bachelor’s degree in computer science with a minor in economics from the University of Delaware. Five children.
—Chris Casacchia
PETER UEBERROTH
Managing director
Contrarian Group Inc., Newport Beach
Born in Evanston, Ill.
Age: 75
Lives in Laguna Beach
WHY: Heads private equity firm specializing in turnaround candidates, primarily in hospitality and travel industries. Former commissioner of MLB and once chairman of U.S. Olympic Com-mittee.
HOW: Attended San Jose State University on athletic scholarship and graduated with a business degree. Went into travel business. Served as vice president of Trans International Airlines in his early 20s and went on to create own travel company, First Travel Corp., in the early 1960s. Built it to be second-largest travel company in North America before selling to Carlson Wagonlit Travel Global in 1980. Served for five years as organizer of 1984 Olympics in L.A., setting the first privately financed Olympic Games, which ended with a surplus of more than $200 million. Served as commissioner of MLB from 1984 to 1989. Led Rebuild Los Angeles project to help get city back on feet after 1992 riot. Orchestrated 1999 investment to acquire resort operator Pebble Beach Co. with other partners. Was chairman of U.S. Olympic Committee from 2004 to 2008.
RECENT: Has renewed focus on investment firm. Was recently named chairman of the board of directors of Stamford, Conn.-based Aircastle Ltd., which acquires, leases and sells commercial jet aircraft. Aircastle has about $950.6 million in market value and notched $686.6 million in revenue last year. Ueberroth says Contrarian Group is “in the market for real-estate-based businesses,” pointing to the firm’s concentration of late on farming operations and golf courses. Firm currently has 100% ownership of three farms in California and two in Idaho, minority stake in a farm in Mexico. It is second-largest shareholder of Century Golf Partners in Texas, which has 76 golf courses across 18 states, and is “unrelated to Pebble Beach,” according to Ueberroth. Plans to continue actively investing in land-based businesses.
PERSONAL: “I passed on what I was able to [in regard to the Olympic Games] and attended the London Games as a guest.” Time Magazine Man of the Year in 1984 in recognition of efforts with Olympic Games. One of two Americans to receive the Olympics Order in gold, highest award from International Olympic Committee.
Received John Wooden Global Leader-ship Award from Anderson School of Management at UCLA. Founded Ueber-roth Family Foundation with wife, Virginia, in 1984. Donations in 2012 totaled $2.4 million, including grants to Girls Inc. and Spirit League, a nonprofit organization fostering team sports for children with special needs.
—Jane Yu
NAMELY NOTABLE:
MARK PERRY
Western region commercial
banking executive
ALLEN STAFF
OC market president
Bank of America
STEPHEN GORDON
Chairman, chief executive
Opus Bank
BEN ALVARADO
OC regional president
Wells Fargo Bank
