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Kenneth Dart

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Kenneth Bryan Dart
Born1955 (age 68–69)
Mason, Michigan, US
NationalityCayman Islands, Belize, Ireland
Alma materUniversity of Michigan
Cranbrook Kingswood School
OccupationBusinessperson
Known forFormerly 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 Solo Cup.[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 is also a citizen of Belize and Ireland.[2] His wealth was estimated in 2013 at US$6.6 billion.[3]

Early life and family

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Kenneth “Ken” Dart was born in 1955 in Mason, Michigan.[4] Dart graduated from the University of Michigan with a degree in mechanical engineering in 1976.[4] He then joined the Dart Container Corporation and was named president in 1986.[4][5] His brother Robert succeeded him in this role in 2001, when Kenneth moved to the board of directors.

In the mid-1990s Dart and his brother, Robert, both renounced their American citizenship. Kenneth took Caymanian, Belizean and, later, Irish citizenship. Robert holds Belizean and Irish citizenship, and resides in London.[2][6] Kenneth Dart moved his residence to the Cayman Islands and converted what was the beachfront West Indian club into his home in 1994.[7]

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.[8] 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.[9][10]

Businesses

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Dart is an investor involved in various industries including real estate and finance.[7]

Dart Enterprises

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Dart Enterprises is a group of companies that holds Cayman Islands real estate and operates businesses.[7]

Real Estate

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The Town of Camana Bay

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In 1995, Dart purchased the Coral Caymanian Hotel and is 236 acres of land which was developed into the town of Camana Bay.[11][7] 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.[11]

Other Dart properties in the Cayman Islands include the Ritz-Carlton, Grand Cayman, the Cayman Islands Yacht Club, the Kimpton Seafire Resort and Spa, the Regatta Office Park and Flagship Building.[12][1][7] Ken Dart also owns The Four Seasons Resort and Residences Anguilla.[13]

Dart Interests

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Dart Interests is Dart’s Dallas-based national real estate and development firm in the U.S.[14] The company has projects in multiple states and includes multifamily, hospitality and resort, mixed-use and for-sale condominiums.[14] Dart Interests developed Evermore Orlando Resort, located next to Walt Disney World.[15] Evermore covers more than 1,100 acres with a 20-acre beach complex and an 8-acre pool called Evermore Bay.[15] The $1.5 billion resort opened January 1, 2024.[15]

Investments

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Dart is known for investments in sovereign debt, concentrated and often contrarian equity positions and campaigns for minority shareholder rights in emerging economies.[16]

Early Investments

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After the Dart Family Trust was restructured in 1986, Ken Dart deployed the available capital into investments through Dart Financial Corporation.[17]

  • Freddie Mac: In 1991, Ken Dart invested $300 million in the Federal Home Loan Mortgage Corporation “Freddie Mac”, a 10.8% stake.[17] 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%.[17]
  • 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.[18]

Sovereign Debt

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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.[16]

Brazil

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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.[19] 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.[20] 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.[20]

Greece

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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.[21] 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.[21][22][23]

Argentina

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In the prolonged attempts to resolve the Argentinian financial crisis of 2001, Dart and Paul Singer rejected Argentina's restructuring offer in contrast to most other investors and brought their claim to the US court system.[24] In response to Dart's holdout strategy, the then Argentinian ambassador in the US, Jorge Argüello, rebuked Dart's activities,[25] while in the Argentinian press Dart was named "Enemy Number One of Argentina".[26]

In 2012, a New York State judge ruled in favor of the holdout creditors ordering Argentina to pay $1.3 billion and Argentina's appeal of the ruling at the US Supreme Court was rejected in 2014.[27] 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.[28] By 2017, Argentina's new president Mauricio Macri settled with holdouts and was able to access the international capital markets.[29]

Other Investments

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Russia

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In 1991, following the collapse of the Soviet Union, Dart was one of the first investors in the independent Russian state.[30] Along with private investments into various sectors, Dart and his firm bought Russian bonds.[30] 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.[31] Yukos, the country’s second biggest oil company used stock issues to attempt to skirt creditors and minority shareholders in its subsidiaries.[32]

Equity Investments

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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.[33]

References

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  1. ^ a b c d Katy Lederer (October 18, 2019). "Why Is a Secretive Billionaire Buying Up the Cayman Islands?". New York Times. Retrieved April 3, 2020.
  2. ^ a b Profile, bloomberg.com; accessed September 6, 2015.
  3. ^ Melissa Anders (2013-10-31). "Report lists Michigan's wealthiest person, but doesn't tell the full story". mlive. Retrieved 2014-02-22.
  4. ^ a b c "Bloomberg Billionaires Index". Bloomberg.com. 2024-09-12. Retrieved 2024-09-13.
  5. ^ "Ken Dart profile". Archived from the original on 2014-02-08. Retrieved February 22, 2014.
  6. ^ 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.
  7. ^ a b c d e Jonathan Kent (February 14, 2020). "Dart: billionaire's business drives Cayman's development boom". The Royal Gazette. Retrieved April 3, 2020.
  8. ^ Kathy M. Kristof (June 15, 2008). "The U.S. cracks down on rich tax evaders". Los Angeles Times. Retrieved February 22, 2014.
  9. ^ 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.
  10. ^ 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.
  11. ^ a b Stoner, Tad (2017-11-10). "Camana Bay celebrates a decade of development". Cayman Compass. Retrieved 2024-10-03.
  12. ^ "Cool bar plan for flagship building". Cayman Compass.
  13. ^ "Four Seasons Resort and Residences Anguilla is sold". www.travelweekly.com. Retrieved 2024-10-26.
  14. ^ 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.
  15. ^ a b c "Cayman Islands Billionaire Plans $1 Billion Bet on Vacation Rentals in Central Florida". CoStar.com.
  16. ^ a b "Billionaire's Award May Snag Progress On Argentine Debt". Wall Street Journal.
  17. ^ a b c "His Cup Runneth Over". Florida Trend. Retrieved 2024-10-09.
  18. ^ "Dart Family Interests Acquire a 5.74% in Salomon". NYTimes.
  19. ^ "Darts Clash With Brazil Over Loans". NYTImes.
  20. ^ a b "Brazil Starts Signing Agreements on Debt". NYTimes.
  21. ^ 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.
  22. ^ Nathalie Savaricas (2012-05-17). "'Vulture funds' circle as Greek fears grow". The Independent. Retrieved 2014-02-22.
  23. ^ Nick Dearden (2012-05-17). "Greece:here come the vulture funds". The Guardian. Retrieved 2014-02-26.
  24. ^ Drew Benson (January 23, 2012). "Billionaire Hedge Funds Snub 90% Returns". Bloomberg News. Retrieved July 4, 2014.
  25. ^ Ambassador Jorge Argüello. "The vulture funds about to flap their wings for the last time". Embassy of Argentina in Washington, D.C. Archived from the original on December 14, 2012. Retrieved 2014-03-01.
  26. ^ Gustavo Sierra (2005-04-24). "Kenneth Dart, el enemigo numero uno de Argentina" [Kenneth Dart: "Enemy Number One" of Argentina] (in Spanish). Clarín. Archived from the original on 2014-04-13. Retrieved 2014-04-09.
  27. ^ Argentina makes debt case in U.S. newspapers, yahoo.com, June 23, 2014.
  28. ^ Argentina rules to be in selective default, yahoo.com; accessed September 6, 2015.
  29. ^ DeFotis, Dimitra (March 6, 2017), "Argentina Debt Outlook Improving, Moody's Says", Barron's, retrieved April 4, 2020
  30. ^ a b Kenyon, John (1999-06-01). "Who Is Kenneth Dart?". The Moscow Times. Retrieved 2024-11-03.
  31. ^ "Russia: Dart and Yukos Duke it Out". Wall Street Journal.
  32. ^ "Major Russian Oil Firms Face Investigation of Abuse". The Wall Street Journal.
  33. ^ "Billionaire Kenneth Dart increases stake in BAT". Proactiveinvestors NA. 2023-12-12. Retrieved 2024-11-11.
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