Eli Broad Net Worth

Eli Broad: The Life and Legacy of a Billionaire Philanthropist

What Was Eli Broad’s Net Worth?

Eli Broad was a towering figure in American business and philanthropy, leaving behind a legacy of innovation and generosity. At the time of his passing on April 30, 2021, his net worth was estimated at a staggering $7.2 billion. This wealth was a testament to his sharp business acumen, demonstrated through his creation and leadership of not one, but two Fortune 500 companies: KB Home (formerly Kaufman & Broad) and SunAmerica. Broad’s story is one of ambition, strategic foresight, and a deep commitment to giving back, making him one of the most influential figures of his time. He was a proponent of wealth redistribution, even advocating for increased taxes on the wealthy.

Broad’s success began in 1957 when he co-founded the homebuilding company Kaufman and Broad Home Corporation. He started this venture with a modest $25,000 loan from his in-laws. The company quickly gained recognition for its innovative approach to housing, particularly its ability to cater to the needs of a new generation of Detroit homebuyers seeking suburban living. Kaufman & Broad expanded rapidly, becoming one of the largest homebuilders in the nation. Later, in 1971, Broad acquired Sun Life Insurance, which he transformed into SunAmerica, a powerhouse in the retirement savings industry. He sold SunAmerica in 1999 for $18 billion, solidifying his reputation as a business titan. He remained the CEO of SunAmerica, now a subsidiary of AIG, until the year 2000.

Beyond his business achievements, Eli Broad and his wife, Edythe, dedicated themselves to philanthropy. They channeled billions of dollars into various causes, including public education, medical research, and the visual and performing arts. Their contributions enriched numerous institutions, such as Michigan State University (his alma mater), the Los Angeles County Museum of Art, and the Los Angeles Opera. Notably, the couple established a museum in Los Angeles, aptly named The Broad, which houses a significant collection of contemporary art. On the scientific and medical front, Broad made substantial investments in research focused on inflammatory bowel disease, genomics, and regenerative medicine. His impact on the fields he supported is immeasurable.

Early Life and Education

Eli Broad’s journey began on June 6, 1933, in the Bronx, New York City. Born to Lithuanian Jewish immigrants, Rebecca and Leo Broad, he was raised in a modest household. His father, a house painter, and his mother, a dressmaker, instilled in him the values of hard work and perseverance. When Eli was six, the family relocated to Detroit, Michigan, where his father became involved in union organizing and also owned a chain of five-and-dime stores. This move exposed Broad to the realities of working-class life and community activism, influencing his later philanthropic endeavors.

Broad’s educational path began at Detroit Central High School, from which he graduated in 1951. He then pursued higher education at Michigan State University (MSU), where he demonstrated an aptitude for numbers, majoring in accounting. Broad excelled academically, graduating cum laude in 1954. His education laid the foundation for his future business success. He went on to become a Certified Public Accountant, further honing his skills in financial management, which proved pivotal in his entrepreneurial ventures.

Career Beginnings: From Accountant to Builder

After earning his degree, Broad began his professional career as an accountant. He spent two years working in the field, gaining valuable experience in financial analysis and management. Simultaneously, he shared his knowledge by teaching accounting courses at the Detroit Institute of Technology during the evenings. However, Broad had larger ambitions. He yearned to launch his own business, driven by his entrepreneurial spirit and desire for independence. He established his own accounting firm, providing him with an initial foothold in the business world.

An opportunity presented itself when his relative, Donald Kaufman, offered him office space in exchange for handling the bookkeeping for Kaufman’s homebuilding business. Through this work, Broad was exposed to the complexities and potential of the housing industry. He was inspired to enter the homebuilding business himself. He subsequently partnered with Kaufman to found Kaufman and Broad Home Corporation. The partnership proved highly successful in the Detroit area, quickly constructing around 600 homes within two years. This early success showcased Broad’s knack for identifying market opportunities and his talent for building and scaling a business.

In 1960, Broad and Kaufman decided to relocate their operations to Phoenix, Arizona, further expanding their reach. A few years later, they moved to Los Angeles, California, a burgeoning market ripe with opportunity. As the business grew, Kaufman eventually retired, leaving Broad at the helm as CEO, a position he held until 1974. This marked a crucial phase in Broad’s career, as he transitioned from a partnership to sole leadership, driving the company toward becoming a national player in the homebuilding industry.

SunAmerica: Building a Retirement Empire

In 1971, Broad made a pivotal move that would further cement his legacy. He acquired Sun Life Insurance Company of America for $52 million. He had the foresight to recognize the potential in the retirement savings market and, with his characteristic business acumen, transformed the company into SunAmerica. This entity quickly became a leading corporation in the retirement savings arena. The company went public in 1989, a testament to its success and growth.

In 1998, Broad orchestrated the sale of SunAmerica to American International Group (AIG) for an impressive $17.8 billion. This transaction was one of the largest in the financial services industry at the time. Despite the sale, Broad remained the CEO of SunAmerica until 1999, ensuring a smooth transition and retaining control over his creation for a period. This sale provided Broad with significant capital, allowing him to further pursue his philanthropic interests and solidify his place among the wealthiest and most influential individuals in the world. SunAmerica’s impact on the retirement landscape is still felt today.

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Education Philanthropy: Investing in the Future

In the 21st century, Broad transitioned his focus to philanthropy, dedicating himself to giving back to society and supporting various causes. He and his wife, Edythe, established the Broad Foundations, a vehicle through which they generously donated over $4 billion to support crucial areas like K-12 public education, medical research, and the visual and performing arts. Their commitment to these fields was unwavering, and their impact continues to resonate across multiple sectors.

In the realm of education, Broad was passionate about expanding opportunities for underserved students. He understood the transformative power of education and sought to create more equitable access to high-quality learning environments. Key initiatives included the launch of the Broad Prize, an annual award of $1 million bestowed upon large urban school districts across the United States. This award recognized and rewarded districts demonstrating significant progress in improving student outcomes. The couple also established The Broad Center, which is dedicated to supporting and developing exceptional leaders in public education. By investing in leadership, the Broad Foundations aimed to cultivate a new generation of effective educational administrators.

Broad also invested heavily in higher education. A particularly impactful investment was a $10 million donation to Pitzer College in 1970. Broad later became the chairman of the board, further solidifying his commitment to the institution. Another major contribution came in 1991 when Broad endowed the Eli Broad College of Business and the Eli Broad Graduate School of Management, both at his alma mater, Michigan State University. This $20 million gift established a full-time MBA program, enhancing MSU’s business offerings and attracting top talent. Moreover, Broad and his wife contributed $28 million to MSU for the construction of the Eli and Edythe Broad Art Museum. This commitment to art and culture enriched the campus environment and provided students and the community with access to world-class art. His contributions extended to UCLA, where the Broad Art Center was constructed in 2000, further solidifying his impact on educational and cultural landscapes.

Arts Philanthropy: Shaping the Cultural Landscape

Broad’s passion for the arts manifested in a variety of philanthropic endeavors that significantly shaped the cultural landscape. His commitment to the arts was not only financial but also strategic, aiming to enhance access to and appreciation of art for a broader audience. He served as the founding chairman of the Museum of Contemporary Art (MOCA) in Los Angeles. Through the Broad Foundations, he provided a substantial donation of $30 million to support MOCA’s mission. This significant investment helped the museum thrive and establish itself as a leading institution for contemporary art. The impact of Broad’s support extended beyond MOCA. He also contributed $60 million to the Los Angeles County Museum of Art (LACMA), playing a crucial role in supporting its exhibitions, programs, and infrastructure.

In addition to his support for museums, Broad was a strong advocate for the performing arts. He and his wife donated $6 million to the Los Angeles Opera to fund a production of Richard Wagner’s “Der Ring des Nibelungen” for the 2009-10 season. Their ongoing support for the LA Opera continued over the years, enabling the institution to bring world-class productions to audiences. This dedication underscored Broad’s commitment to enriching the cultural life of Los Angeles. In 2010, Broad announced his plans to open a new contemporary art museum in Los Angeles. Five years later, the 120,000-square-foot museum, known simply as The Broad, officially opened its doors in Downtown LA. The Broad showcases a significant collection of contemporary art and has become a major cultural destination, attracting visitors from around the world and further enhancing Los Angeles’s reputation as a global center for art and culture.

Medical Philanthropy: Advancing Healthcare

Through the Broad Foundations, Broad made substantial investments in medical research, demonstrating a commitment to advancing healthcare and finding solutions for critical health challenges. His approach was strategic, focusing on innovative research programs and collaborative efforts aimed at making a meaningful impact in key areas of medicine. The foundation’s first major investment was in the field of inflammatory bowel disease. Broad and his wife established a medical research program dedicated to funding groundbreaking research for the treatment of this debilitating condition. Their interest expanded to encompass genomics and stem cell research, reflecting their desire to support cutting-edge science that could transform healthcare.

In 2003, the Broads made a landmark contribution with a $100 million founding gift to establish the Broad Institute of MIT and Harvard. The institute leverages genomics to advance understanding of human disease and to develop new therapies. Over the subsequent years, they provided additional significant contributions, enabling the Broad Institute to become an independent nonprofit entity. This support ensured the institute’s long-term stability and capacity to carry out its vital research. Among other notable contributions, the Broads donated $30 million to help establish the Eli and Edythe Broad Center for Regenerative Medicine and Stem Cell Research at the University of Southern California (USC). A similar center was created at UCLA. Furthermore, the Broads established a new headquarters for the center at the University of California, San Francisco (UCSF) in 2011. They also provided multiple donations to fund research centers at Caltech. Through these investments, the Broads played a key role in advancing medical research, ultimately contributing to the development of new treatments and improving the lives of countless individuals.

Personal Life and Death

Eli Broad’s personal life was marked by his enduring marriage to Edythe Lawson, whom he married in 1954. Their union produced two children, forming the core of his family life. The couple shared a deep commitment to philanthropy and the arts. The Broads commissioned Frank Gehry, a renowned architect, to design their main residence in Brentwood, California, in the early 1990s. This commission underscored their appreciation for contemporary art and design, as well as their ties to Los Angeles’s artistic community.

Following an illness, Eli Broad passed away on April 30, 2021, in Los Angeles, at the age of 87. His death marked the end of an era, as he was one of the last titans of the 20th-century business world. His passing was widely mourned, but his legacy lived on through his family and the institutions he helped shape. He left behind a world better than the one he found, and his influence will continue to be felt for generations to come. His impact is a testament to the transformative power of combining business success with a commitment to public good.

Malibu Mansion

In 1999, Eli and Edythe Broad invested in a stunning property, purchasing two parcels of land in Malibu for $5.65 million. They then commissioned Richard Meier, a celebrated architect, to design a luxurious 5,400-square-foot waterfront mansion. This property reflects their passion for art and design, and their affinity for the California coast. The mansion was listed for sale in February 2020, with an asking price of $75 million, reflecting the prime location and high-end design of the property. The property was eventually sold in June 2021, a few months after Broad’s death, for $51.65 million, demonstrating the lasting value of the property. The sale highlighted the enduring appeal of Broad’s real estate holdings and the continued interest in his legacy.

Legacy

Eli Broad’s legacy is multifaceted, encompassing his remarkable achievements in business, his transformative contributions to philanthropy, and his profound impact on education, the arts, and medical research. His leadership in building two Fortune 500 companies, KB Home and SunAmerica, set a standard for entrepreneurial success and strategic vision. His dedication to philanthropy resulted in the creation of world-class institutions like The Broad, the Broad Institute, and various centers for research and innovation across multiple universities. His influence extends beyond financial contributions; he fostered innovation, encouraged bold ideas, and inspired others to give back. Broad’s name and initiatives continue to shape the landscape of education, culture, and healthcare, ensuring his lasting impact on society. His story serves as an inspiration for future generations of business leaders, philanthropists, and innovators, solidifying his place among the most influential figures of the modern era. His vision and generosity have left an indelible mark on the world.