Icahn’s Son Gets $3 Billion of Carl’s Money to Manage … After Hefty Returns

However, now Icahn and his own son are in the news. Bloomberg reported this morning after its Businessweek article that Icahn is handing over some $3 billion to his own son Brett and to manager David Schechter. The move adds more breadth to Icahn’s efforts, and in theory sets up a continuity plan for Icahn. As far as what the targets will be, that is said to be companies with market capitalization rates of $750 million to $10 billion. Businessweek said that the arrangement will expire in 2016 when Icahn (the elder) turns 80.

While some may call it nepotism, it is his money. More importantly, the returns from the David Schechter/Brett Icahn team on a $300 million seeding from back in 2010 have been reported as having almost doubled due to investing in distressed assets.

Icahn Enterprises LP (NYSE: IEP) is effectively a controlled entity right now under Icahn. We would have included it in our feature of Companies Where Shareholders Have No Power — At All but the volume in recent months has dwindled to the point that no one seems to care.

This is one of those situations in which it might seem as though there is too much favoritism on the surface. If the reports of the returns are still accurate, perhaps Icahn the Younger will be getting a lot more dough thrown his way from outside investors too.

JON C. OGG