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Ronald Burkle

From Alfawiki
Ronald Wayne Burkle
Born (1952-11-12) November 12, 1952 (age 73)
Pomona, California, U.S.
Occupation(s)Entrepreneur, private equity investor
Known forCo-founder and managing partner of The Yucaipa Companies; partial owner of Pittsburgh Penguins; investor in technology and media companies

Ronald Wayne Burkle (born November 12, 1952) is an American entrepreneur and co-founder as well as managing partner of The Yucaipa Companies, LLC, a private equity firm that invests primarily in American businesses across sectors such as distribution, logistics, food, retail, consumer products, hospitality, entertainment, sports, and light manufacturing.

The Yucaipa Companies have been instrumental in orchestrating mergers and acquisitions involving supermarket chains like Fred Meyer, Ralphs, and Jurgensen's. The firm also previously held ownership interests in approximately 35 enterprises, including grocery retailers A&P and Whole Foods Market prior to their downturns.

As of February 2018, Burkle’s net assets were valued at around US$2 billion. In 2014, he was ranked number 633 on Forbes' list of "The Richest People on The Planet."

In addition to his business pursuits, Burkle is known for his active role in fundraising and support for the Democratic Party.

Early life

Born in Pomona, California on November 12, 1952, Ron Burkle is the eldest son of Betty and Joseph Burkle. His father managed a Stater Bros. grocery store and was involved in apartment property investments. During his youth, Burkle helped out by stocking shelves and handling shopping carts at his father’s store.

At the age of 13, he became a member of the United Food and Commercial Workers Union Local 770. By 16, he had enrolled at California State Polytechnic University, Pomona with the intention of studying dentistry but left after less than two years. At 21, he married Janet Steeper, a clerk at Stater Bros. and a great-grandniece of the Wright brothers. The couple had three children.

Burkle transformed an initial $3,000 investment in American Silver and other metals companies into $30,000 and began acquiring undervalued grocery stores through deals backed by junk bond financier Michael Milken. He rose to become a store manager at Stater Bros. before advancing to vice president at Petrolane, Inc., Stater’s parent company.

When Petrolane planned to divest Stater Bros. at age 29, Burkle collaborated with Charles Munger—vice-chairman of Berkshire Hathaway—to execute a leveraged buyout. Munger agreed to finance half the equity; however, their offer was approximately 20% below Petrolane’s internal valuation. The board declined the bid and terminated Burkle’s employment. At that point, his investment portfolio was valued near $5 million. Over the subsequent five years, he continued stock market investments and managed family rental properties.

Career

In 1986, Burkle established Yucaipa Companies, a private equity firm focused on investing in U.S.-based enterprises spanning sectors such as hospitality, sports, entertainment, logistics, food and beverage, consumer products, light manufacturing, retail, industrial production, and distribution.

Amid the 1992 Los Angeles riots, Burkle gained recognition for his decision to keep his urban retail outlets operational, demonstrating notable dedication. He has held leadership roles as chairman and majority shareholder in various companies including Alliance Entertainment, Golden State Foods, Dominick's, Fred Meyer, Ralphs, and Food4Less. Additionally, Burkle has served on the boards of Occidental Petroleum Corporation, KB Home, and Yahoo!.

Renowned for fostering robust partnerships with labor unions, he works closely with union representatives to navigate business challenges effectively.

NHL

Burkle holds a partial ownership stake in the Pittsburgh Penguins of the National Hockey League. In 1999, he collaborated with former Penguin star Mario Lemieux to save the franchise from financial insolvency. Burkle was actively involved in securing agreements for building the PPG Paints Arena.

Utilizing his strong connections with unions, he played a key role in assisting Commissioner Gary Bettman to resolve the 2012–13 NHL lockout. Under Burkle’s co-ownership, the Penguins stand out as the only North American professional sports franchise owned by private equity to have captured a championship.

MLS

On January 22, 2019, Burkle emerged as the principal investor behind Sacramento Republic FC. However, on February 26, 2021, he withdrew his investment from Sacramento’s MLS expansion initiative due to impacts from the COVID-19 pandemic in California, casting uncertainty over the city’s chances of joining MLS.

NWSL

In January 2021, Lisa Baird, commissioner of the National Women's Soccer League (NWSL), announced plans for an expansion team in Sacramento led by Burkle. This effort was aligned with Sacramento Republic FC’s MLS ambitions and targeted entry in 2022. Despite this announcement, Burkle did not publicly confirm involvement and subsequently exited Sacramento Republic’s ownership group. Instead, on June 8, 2021, the NWSL revealed that San Diego would be the location for Burkle’s expansion franchise, which debuted as San Diego Wave FC during the 2022 NWSL season.

Technology investments

Through A-Grade Investments—a venture capital fund he co-founded alongside Ashton Kutcher and Guy Oseary—Burkle has backed various technology startups. By 2020, A-Grade’s portfolio featured companies such as SeatGeek, SoundCloud, Uber, Warby Parker, Spotify, Foursquare, and Airbnb.

He also participates in investments via Inevitable Venture, a fund launched by D. A. Wallach and Chris Hollod, with stakes in Picnic Health, 8i, Thrive Market, and Wiser Care.

Media investments

In January 2012, Burkle made an investment in Artist Group International, a concert booking agency representing artists like Billy Joel and Metallica. By March 2013, he supported Three Lions Entertainment—a branded entertainment company focused on events and cross-platform marketing. In 2014, Burkle acquired full ownership of Artist Group International and collaborated through Paradigm Talent Agency with London-based CODA Music Agency and X-ray Touring. That same year, he also secured a minority interest in Independent Talent via Yucaipa.

In 2018, Yucaipa took a minority position in the Spanish music festival Primavera Sound. Two years later, Burkle committed a substantial investment to festival promoter Danny Wimmer Presents.

On April 5, 2023, Burkle co-established Said and Done Entertainment alongside Anthony Kiedis and Bob Forrest. Their initial project is the animated series Hellicious for TBS, adapted from the comic book of the same name; all three serve as executive producers.

Additional Investments

Beginning in February 2005, Burkle made Wild Oats Markets, a North American retailer specializing in natural foods, a significant part of his portfolio. By the time Whole Foods Market completed its $565 million acquisition of Wild Oats, Burkle had become its principal shareholder.

Burkle divested his controlling interest in Golden State Foods to Wetterau Associates for approximately $110 million. Golden State is a prominent supplier to McDonald's, managing 11 distribution centers across the U.S. and internationally, along with two processing facilities within the United States.

In 2014, Burkle purchased Soho House (club), a collection of hotels and exclusive private clubs. Five years later, he sold half of his shares in the Sydell Group to MGM Resorts International but maintained ownership in other hotel ventures.

Noteworthy deals include:

  • The 1998 sale of the Dominick's supermarket chain to Safeway, yielding profits exceeding $200 million;
  • Maintaining a 26% ownership stake in Americold Realty Trust;
  • Executing leveraged buyouts of supermarket chains such as Jurgensen's, Fred Meyer, Food 4 Less, and Ralphs, which were subsequently sold to Kroger for $13.5 billion;
  • Securing Fleming Companies, Inc as the exclusive food supplier for Kmart;
  • Acquiring majority control of Pathmark grocery stores;
  • Holding ownership interest in Cyrk, formerly known for promoting Beanie Baby products;
  • Combining Alliance Entertainment with Source Interlink through a merger;
  • Purchasing a 49% share of British jewelry designer Stephen Webster in 2007;
  • Investing $100 million in the Sean John clothing brand by Sean Combs (P. Diddy) in 2003;
  • Acquiring Enthusiast Media’s publications and assets from Primedia for $1.2 billion;
  • Through his company Yucaipa Cos., owning an 18.7% stake in common stock of Barnes & Noble, with initiatives to substantially increase this position in 2010.

Burkle also made an offer to acquire the struggling Sacramento Kings basketball team to prevent its relocation but later withdrew due to conflicts of interest. Additionally, he holds debt investments in Relativity Media and joined its board as part of that arrangement.

In 2011, Burkle extended a $100 million loan to Amalgamated Bank, resulting in a combined ownership stake of 41% alongside Wilbur Ross.

Political Engagement

Burkle has donated millions to the Democratic Party and has raised roughly $100 million through star-studded fundraisers at his Green Acres Estate in Beverly Hills. His events have supported influential figures such as Bill and Hillary Clinton, John Kerry, Cory Booker, Terry McAuliffe, and former Republican Governor Arnold Schwarzenegger of California.

In January 2011, he hosted a fundraising event aimed at overturning California’s Proposition 8, which banned same-sex marriage.

In 2004, Burkle helped underwrite the launch of Al Gore’s Current TV, which was sold in 2013 to Al Jazeera Media Network based in Qatar.

During Bill Clinton’s administration, Burkle was both a major fundraiser and close confidant. In 2002, Clinton was appointed senior advisor for two Yucaipa domestic investment funds. Clinton also invested in a Yucaipa global fund focused on foreign enterprises, raising questions about potential foreign policy conflicts.

By 2009, Clinton ended his association with Yucaipa over concerns about conflicts of interest. After prolonged discussions regarding advisory fees estimated at up to $20 million, Clinton ultimately refused payment and cut ties with the firm.

Awards and recognition

Among the accolades awarded to Burkle are the Jimmy Stewart "Good Turn" Award from the Los Angeles County Boy Scouts, the Commitment to Life Award from AIDS Project Los Angeles, and the Whitney M. Young Award presented by the Los Angeles Urban League. Additionally, he has been honored with labor-related distinctions such as the AFL-CIO Murray Green Meany Kirkland Community Service Award and was named Man of the Year by the Los Angeles County Federation of Labor.

Philanthropy

In 1997, Burkle contributed $15 million to support the development of the Walt Disney Concert Hall.

Ronald W. Burkle Foundation

As founder and chair, Burkle leads The Ronald W. Burkle Foundation, an organization dedicated to fostering positive global community impact through backing initiatives that enhance international understanding, advocate for workers' rights, empower marginalized populations, support arts and architectural endeavors, encourage children's educational engagement, and promote scientific advancement.

Board memberships

Burkle holds the position of co-chairman at The Ronald W. Burkle Center for International Relations at UCLA, which facilitates research and dialogue surrounding international affairs, U.S. foreign policy, and worldwide collaboration. This Center has welcomed distinguished guests including UN Secretary-General Ban Ki-moon as well as former U.S. Presidents Bill Clinton and Jimmy Carter.

He also serves as a trustee for various institutions: The Scripps Research Institute, The Carter Center, the National Urban League, Frank Lloyd Wright Building Conservancy, and AIDS Project Los Angeles. His previous board roles include membership with the J. Paul Getty Trust, Los Angeles County Museum of Art, Los Angeles Music Center, John F. Kennedy Center for the Performing Arts, and the Museum of Contemporary Art, Los Angeles.

Fundraising events

Burkle organizes fundraising activities supporting the non-profit Share Our Strength and its No Kid Hungry campaign, which is focused on eradicating childhood hunger across the United States.

He also contributes to The Rape Foundation through philanthropic events hosted at his Greenacres Estate.

Personal life

Burkle has shown interest in historic properties, acquiring the 1924-built Ennis House in 2011 and later selling it in 2019 for $18 million. He owns Greenacres, a 1928 Beverly Hills estate originally constructed for actor Harold Lloyd. Furthermore, he purchased two residences formerly held by entertainer Bob Hope: a Palm Springs home for $13 million in 2016 and a Toluca Lake property for $15 million in 2017.

In December 2013, Burkle acquired an Olympic gold medal awarded to Jesse Owens at the 1936 Berlin Olympics for $1.4 million; he also possesses Nobel Prize-winning literature by William Faulkner.

His Mediterranean-style residence located in La Jolla Farms, San Diego, was bought in 1999 for $15.3 million and currently holds an assessed value of $34 million.

Burkle has partnered with world No. 1 tennis player Novak Djokovic on strategic marketing efforts as well as charitable projects.

In December 2018, he received appointment as honorary consul of Serbia in the United States and gained Serbian citizenship in November 2019, joining Serbia’s billionaire class according to Forbes.

On January 6, 2020, Burkle's son Andrew was discovered deceased at his home in Beverly Hills.

In December 2020, Burkle acquired Michael Jackson’s former Neverland Ranch for $22 million as part of a land banking investment strategy.

Controversies

In April 2006, Burkle accused New York Post columnist Jared Paul Stern of attempting extortion by demanding investments in exchange for positive media coverage; Stern was later dismissed from his position.

In 2008, Burkle filed a lawsuit against Raffaello Follieri, which was dropped after Follieri reimbursed a $1.3 million loan. By 2018, Burkle was reportedly involved in an investor consortium assisting Follieri in securing ownership in the Italian football club Foggia Calcio.

Burkle’s contact information and flight records appeared among those linked to Jeffrey Epstein. He joined former President Bill Clinton on humanitarian missions to Africa aboard Epstein’s private plane but subsequently distanced himself from Epstein.

See also

Further reading

  • Bruck, Connie: "Cashier du Cinema – After supermarkets, private equity and politics, Ron Burkle makes a move on Hollywood". The New Yorker, October 8, 2012 (pp. 76 to 87).

External links

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