Richard Rainwater
Richard Edward Rainwater | |
|---|---|
| Born | Template:Birth date Fort Worth, Texas, U.S. |
| Died | September 27, 2015 (aged 71) |
| Occupation(s) | Investor, philanthropist |
| Known for | Investing, philanthropy |
Richard Edward Rainwater (June 15, 1944 – September 27, 2015) was a prominent American investor and philanthropist, whose net worth was estimated at $3 billion, placing him 211th on the Forbes 400 list in 2015.
His approach to investing blended thorough analysis with bold, opportunistic decisions. Rainwater served as a mentor and financial supporter to distinguished investors such as Eddie Lampert, Roger Staubach, and David Bonderman. From 2009 until his passing, he contended with progressive supranuclear palsy, a rare neurodegenerative disorder. Over his lifetime, he contributed more than $380 million to charitable causes and left nearly his entire fortune to his philanthropic foundation.
Early life
Born in Fort Worth, Texas in 1944, Rainwater was raised in a business-oriented environment shaped by his entrepreneurial family background. His father, Sam, operated several enterprises including a wholesale grocery firm. Of Lebanese heritage, Rainwater completed his education at R. L. Paschal High School. In 1962, he enrolled at the University of Texas at Austin, joining the Tau chapter of Kappa Sigma, and graduated with a degree in mathematics in 1966. He earned an MBA from the Stanford Graduate School of Business in 1968. In recognition of his achievements, he was named Kappa Sigma Man of the Year in 1996.
Career
Between 1968 and 1970, Rainwater was employed by Goldman Sachs.
At age 26, in 1970, he was invited by his classmate Sid Bass to oversee the Bass family’s investment portfolio. Acting as chief investment advisor until July 1986, Rainwater initially experienced losses on the $5 million entrusted to him. Subsequently, he adopted a disciplined investment approach inspired by figures such as Warren Buffett, Benjamin Graham, and David Dodd. Through this strategy, he expanded the Bass family wealth from $50 million to $5 billion and personally earned $100 million before deploying his own funds starting in 1986.
In partnership with Sid Bass that same year, he co-founded Bass Brothers Enterprises, which made notable investments including acquiring shares in the Walt Disney Company.
Rainwater gained recognition as an astute investor adept at spotting undervalued assets and enhancing their worth through strategic initiatives.
His oil and gas ventures were among his most lucrative endeavors, involving acquisition and divestiture of Bass family holdings. He also invested in energy companies like Pennzoil and Diamond Offshore Drilling, producing substantial profits.
Outside the energy sector, Rainwater significantly influenced real estate development projects such as the revitalization of Las Colinas in Irving, Texas into a flourishing commercial hub. He additionally supported developments like Dallas’s Harbor Pointe office complex and Lincoln Plaza.
Investments
Key investments made by Rainwater include:
- 1969 – General American Oil Company
- 1984 – Orchestrated a $400 million profit for the Bass family during Texaco’s share repurchase aimed at preventing a hostile takeover
- 1984 – Allocated $478 million on behalf of the Bass family to invest in the Walt Disney Company and recruited Michael Eisner to lead its resurgence
- 1986 – Ensco (currently known as Valaris Limited)
- 1988 – HCA Healthcare
- 1989 – Co-acquired the Texas Rangers alongside Rusty Rose and George W. Bush, whose initial investment of $606,000 appreciated to over $15 million
- 1989 – Purchased a 20% stake in the Staubach Company for $1 million
- 1992 – Mid Ocean Limited, specializing in casualty reinsurance
- 1994 – Crescent Real Estate, overseeing 15 million square feet of office space in Houston
- 1996 – Took control of Mesa Petroleum; after Rainwater’s wife dismissed T. Boone Pickens, merged it with Parker & Parsley to create Pioneer Natural Resources
- Late 1990s – Invested $100 million into energy equities and $200 million into oil futures during a period when prices were approximately $12 per barrel; this move was informed by peak oil theories from Beyond the Limits. Despite incurring an unrealized loss of $400 million amid the 1997 Asian financial crisis, he maintained this long-term strategic position
Personal life
Rainwater's initial marriage to his high school partner, Karen, concluded with a divorce in October 1991 after 25 years together. They had three children: Matthew, Todd, and Courtney.
Just two months following the divorce, he wed financier Darla Moore and relocated to Manhattan, taking a sabbatical for one year. The couple frequently maintained separate residences. Through Crescent Real Estate, Rainwater purchased the Canyon Ranch spa and owned a luxury estate in Montecito, California. Additionally, he partnered with Clint Eastwood in investing in Pebble Beach Golf Links.
Identifying as a "fitness enthusiast," Rainwater participated in marathons and sponsored racing vehicles, including a modified 1970 Chevrolet Camaro driven by a professional acquaintance. He appreciated the spiritual insights found in M. Scott Peck’s book The Road Less Traveled.
In the political arena, Rainwater invested alongside George W. Bush and contributed $100,000 to Bush’s 1994 campaign for Texas governor; Bush faced scrutiny over policies that appeared to benefit Rainwater’s business interests. Rainwater also donated $100,000 to Rick Scott’s 2010 Florida gubernatorial bid; Scott was then leading HCA Healthcare, a significant Rainwater investment.
After being diagnosed with progressive supranuclear palsy in 2009, Rainwater dedicated more than $20 million toward research efforts targeting the illness. He was honored with Stanford’s Arbuckle Award in 2010 but made no further public appearances after that year. In 2011, he was declared incapacitated, and his youngest son Matthew assumed legal guardianship. Rainwater passed away on September 27, 2015.
By that time, through the Rainwater Charitable Foundation, he had contributed upwards of $380 million to support higher education, aid vulnerable children, and advance neurodegenerative disease research. The foundation presented its inaugural awards in 2019 recognizing breakthroughs in neurodegenerative studies. In his will, Rainwater bequeathed $5 million to UT Austin for American music programs and allocated $60 million to Darla Moore.
Awards and honors
- 1992 - Golden Plate Award from the American Academy of Achievement
- 2010 - Arbuckle Award from the GSB Alumni Association