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Donald B. Marron Sr.

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This article is about the businessman and financier. For his son, the economist, see Donald B. Marron Jr.
Donald B. Marron
Born
Donald Baird Marron

(1934-07-21)July 21, 1934
Goshen, New York, U.S.
DiedDecember 6, 2019(2019-12-06) (aged 85)
New York City, U.S.
Alma materBronx High School of Science
The City University of New York
Occupation(s)Businessman, investor, philanthropist
Known forPaine Webber (Former chairman & CEO)
Lightyear Capital (Founder)
Data Resources (Co-founder)
Museum of Modern Art (MoMA) (Trustee and president emeritus)
Spouse
Catherine "Catie" C. Marron
​
​
(m. 1985)​
Children4, including Donald B. Marron Jr.

Donald Baird Marron (July 21, 1934 – December 6, 2019[1]) was an American billionaire businessman, investment banker, investor, and philanthropist notable as the chairman and chief executive officer of brokerage firm Paine Webber from 1980 through the sale of the company in 2000, as well as the founder of private equity firm Lightyear Capital and of Data Resources Inc. He was the father of the economist Donald B. Marron Jr.

Career

D.B. Marron & Company

In 1959, Marron founded D.B. Marron & Company. In 1965, Marron sold his company to Mitchell Hutchins and in 1967 was named president of the company.

Mitchell, Hutchins & Co.

Mitchell, Hutchins & Co. was a leading equity research boutique in the U.S., ranked the number 3 firm by Institutional Investor in 1974.[2] In 1975, a national poll of portfolio managers chose the institutional brokerage firm as the “best research house on Wall Street.” [3] Under Marron's leadership, the firm grew to be known as "one of Wall Street's premier stock research firms."[4]

In 1977, Mitchell Hutchins was acquired by Paine Webber.[5] PaineWebber continued to use the Mitchell Hutchins brand until the company's sale to UBS in 2000. In 2001, the Mitchell Hutchins name was discontinued when it was merged as a subsidiary with UBS's Brinson Partners division.[6]

Data Resources Inc.

In 1969 Marron co-founded Data Resources Inc. with Harvard University notable economist Otto Eckstein. DRI became the largest non-governmental source of economic data[7] and, working with Eckstein's theory of core inflation, developed the largest macroeconomic model of its era.[8] Data Resources is credited with "breaking new ground for the practical use of economics" among business executives and others.[7] The company went public in 1976, with 52 of the nation's 100 largest industrial corporations as clients.[7] The company was sold to McGraw-Hill in 1979 for $103 million.[9]

Paine Webber

PaineWebber Group was one of the nation's leading full-service investment firms, serving its global client base through its primary businesses of banking, retail sales, capital transactions, and asset management.[10] In 1977, PaineWebber merged with Mitchell, Hutchins & Co., and Marron was named President of PaineWebber.[10] In 1980, Marron was named PaineWebber’s Chief Executive Officer, and in 1981, he was named Chairman of the Board of PaineWebber, roles he would hold for the next two decades. During his tenure, Marron transformed the business into a leading wealth management and institutional investment firm.[10]

In 2000, as CEO, Marron engineered the sale of PaineWebber to UBS AG.[11] The deal valued PaineWebber's outstanding share capital at $10.8 billion, representing an estimated 47 percent premium over PaineWebber's closing price the day prior to the deal's announcement, and a multiple of 18.1 times the company's estimated 2000 earnings at the time.[12] The deal had the support of PaineWebber's major shareholders.

PaineWebber's sale to UBS AG expanded UBS's presence in the U.S. wealth management market.[13] The deal was described as one of the most successful transactions of its time, having reached a record sale price and delivering clear benefits to shareholders, clients and employees of both companies.[14] Marron served as Chairman of UBS America from 2000-2003.[15]

Lightyear Capital

Main article: Lightyear Capital

In 2000, Marron founded Lightyear Capital, a private equity firm focused on investments in financial services companies. The firm has raised approximately $3.5 billion since inception across its four funds.[16] In May 2002, Lightyear closed on its first fund, The Lightyear Fund, with $750 million of investor commitments, approximately $500 million of which came from UBS AG. In 2006, the firm completed fundraising for its second private equity fund, with $850 million of commitments from over 40 investors.[17][18] In 2012, the firm closed its third fund valued at $954 million.[19] In late 2017, the firm closed its fourth fund with more than $950 million.[20]

Art collector

Marron was one of America's most recognized private art collectors, having supported international artists and cultural institutions for more than 40 years.[21] His collection of post-war works spanning both the 20th and 21st centuries is inspired by his personal response to art and his conviction that good contemporary art reflects—and great art anticipates—societal trends.[22]

Under Marron's five-year term as President of the Museum of Modern Art's Board of Trustees in the late 1980s, the Museum's endowment more than doubled, growing from $26 million in 1985 to $59 million in 1990.[23] As a Trustee, Marron oversaw the first expansion of the Museum Tower in 1984, in which MoMA more than doubled its gallery footprint, increased its curatorial department by 30 percent, and added an auditorium, two restaurants and a bookstore.[24] MoMA's atrium is named the Donald B. and Catherine C. Marron Atrium, for Marron and his wife, in recognition of their contributions to the Museum's significant expansion efforts.[25]

While at PaineWebber, Marron personally directed the firm's acquisition of more than 850 post-1945 works by major American and European artists—including Jasper Johns, Roy Lichtenstein, Willem de Kooning, and Susan Rothenberg, among many others—to create the PaineWebber Collection.[26] In 2002, UBS PaineWebber promised MoMA 37 works, including paintings, drawings and sculpture by Andy Warhol (including Cagney, 1962), Roy Lichtenstein, Lucian Freud, and Jasper Johns. The donation was to be made over 15 years and was completed in 2017.[27][28]

Non-profit and philanthropic work

In 2013, Marron provided the founding donation to launch the New York University Marron Institute of Urban Management.[29] The Marron Institute operates on an academic venture capital model and works with cities to improve health, safety, mobility and inclusiveness. The Marron Institute is dedicated to working with residents, officials and practitioners to address pressing challenges on issues such as city planning, criminal justice and environmental health.[30]

In 2012, Marron and Memorial Sloan Kettering Cancer Center established the Donald B. and Catherine C. Marron Cancer Metabolism Center to promote intensive studies focused on tumor metabolism. A key aspect of the Center is the Cell Metabolism Laboratory, which is a state-of-the-art facility that helps investigators characterize biological systems through direct measurement of the small molecule constituents.[31]

Board memberships and other affiliations

Current
  • Museum of Modern Art - President Emeritus and Lifetime Trustee
  • New York University (NYU) - Life Trustee
  • NYU Marron Institute of Urban Management - Founding Donor
  • Memorial Sloan Kettering Cancer Center's Board of Overseers - Member
  • Council on Foreign Relations - Member
  • Partnership for New York City - Member
  • Center for Strategic and International Studies (CSIS) - Trustee
  • Coalition for the Homeless - Donor
  • Center for the Study of the Presidency & Congress - Chairman Emeritus
Former
  • Securities Industry Association (SIA) - Governor and Vice Chairman (1974-1977)
  • New York Stock Exchange (NYSE) - Member of the Board of Directors (1974–81)
  • Dana Foundation - Director (1978-2007)
  • PaineWebber (as Chairman, 1981-2001)
  • National Association of Securities Dealers (NASD) - Governor (1997-2001)
  • Shinsei Bank - Director (1999-2005)
  • Fannie Mae - Member of the Board (2001–06)
  • President's Committee on the Arts and Humanities - Member (Former)
  • California Institute of the Arts (CalArts) - Vice Chairman of the Board (Former)

Education

Personal life

Marron was married to Catherine "Catie" C. Marron, whose career has encompassed investment banking, magazine journalism, and public service. Mrs. Marron is currently Chairman of the Board of Directors of the Friends of the High Line, a trustee of the New York Public Library—where she was Chairman of the Board for seven years—and a contributing editor to Vogue magazine. She is the creator and editor of City Parks (2013) and City Squares (2016), both published by HarperCollins.[33]

Marron died of a heart attack on December 6, 2019 while on his way to a work party in New York City. He was 85.[34][35]

References

  1. ^ Padilla, Mariel (8 December 2019). "Donald B. Marron, Financier, Art Collector and Philanthropist, Dies at 85". The New York Times. Retrieved 8 May 2021.
  2. ^ 3. Groysberg, Boris; Healy, Paul M. (7 August 2013). Wall Street Research: Past, Present, and Future - Boris Groysberg, Paul M. Healy - Google Books. ISBN 978-0804787123.
  3. ^ LLC, New York Media (17 March 1975). "New York Magazine". New York Media, LLC. Retrieved 20 March 2018 – via Google Books.
  4. ^ Grimes, William (4 May 2009). "James Davant, Who Led Paine Webber, Dies at 93". The New York Times. Retrieved 20 March 2018.
  5. ^ Cole, Robert J. (7 May 1977). "Paine Webber Announces Accord] To Merge with Mitchell, Hutchins". The New York Times. Retrieved 20 March 2018.
  6. ^ "Asset Management: Mitchell Hutchins Renamed Brinson Advisors". 23 February 2001. Retrieved 20 March 2018.
  7. ^ a b c Arenson, Karen W. (23 March 1984). "OTTO ECKTEIN, EDUCATOR WHO LED IN ECONOMIC FORECASTING". The New York Times. Retrieved 20 March 2018.
  8. ^ "Richard Hokenson Home Page". Archived from the original on 2010-07-26. Retrieved 2013-12-07.
  9. ^ "McGraw Hill Inc. Plans to Buy Company Run by Otto Eckstein; Data Resources Stock Jumps - News - The Harvard Crimson". www.thecrimson.com. Retrieved 20 March 2018.
  10. ^ a b c Bradley, Gene E. (20 March 1990). Charting the Course for Business Growth Through the 1990s: Interviews. University Press of America. ISBN 9780819176851. Retrieved 20 March 2018 – via Google Books.
  11. ^ Charles Gasparino (12 July 2000). "PaineWebber Agrees to Be Bought By Swiss Bank UBS for $12 Billion". The Wall Street Journal. Retrieved 20 March 2018.
  12. ^ Jones, Dow (24 October 2000). "PaineWebber Merger Vote". The New York Times. Retrieved 20 March 2018.
  13. ^ Guldimann, Beat (20 March 2018). Inside Swiss Banking. Beat Guldimann. ISBN 9780557165841. Retrieved 20 March 2018 – via Google Books.
  14. ^ https://www.sec.gov/Archives/edgar/data/75754/000095015700000328/0000950157-00-000328-0002.pdf [bare URL PDF]
  15. ^ "Donald B. Marron: Executive Profile & Biography - Bloomberg". www.bloomberg.com. Retrieved 20 March 2018.
  16. ^ "Lightyear Capital". www.lycap.com. Retrieved 20 March 2018.
  17. ^ Lightyear Fund II closes on $850m Archived June 12, 2008, at the Wayback Machine. AltAssets, March 6, 2007
  18. ^ Forty Institutions Back Lightyear's New $850M Fund [permanent dead link‍]. Thomson Buyouts, March 19, 2007
  19. ^ "Lightyear's Fund III Comes in Just Under $1B: UPDATED - PE Hub". 13 August 2012. Retrieved 20 March 2018.
  20. ^ Jacobius, Arleen (1 December 2017). "Lightyear Capital closes fourth fund with more than $1 billion, including co-investments". Retrieved 20 March 2018.
  21. ^ "Donald B. Marron -". ARTnews. 10 September 2017. Retrieved 20 March 2018.
  22. ^ Fair, Frieze Art (26 February 2016). "Conversations on Collecting Frieze London 2015: Donald B. Marron". Retrieved 20 March 2018 – via Vimeo.
  23. ^ Grace Glueck (April 24, 1991), Collector Is in Line To Head Modern The New York Times.
  24. ^ "Museum of Modern Art Gallery Expansion". Pelli Clarke Pelli Architects. Retrieved 20 March 2018.
  25. ^ Eakin, Hugh (7 November 2004). "MoMA's Funding: A Very Modern Art, Indeed". The New York Times. Retrieved 20 March 2018.
  26. ^ Smith, Roberta (4 February 2005). "Corporate Taste in Art, and the Art of Donation". The New York Times. Retrieved 20 March 2018.
  27. ^ Carol Vogel (April 11, 2002), The Modern Gets a Trove From Corporate Collection The New York Times.
  28. ^ Roberta Smith (February 4, 2005), Corporate Taste in Art, and the Art of Donation The New York Times.
  29. ^ Communications, NYU Web. "NYU Launches Marron Institute on Cities and the Urban Environment". Retrieved 20 March 2018.
  30. ^ "About | Marron Institute".
  31. ^ "Cell Metabolism - Memorial Sloan Kettering Cancer Center". www.mskcc.org. Retrieved 20 March 2018.
  32. ^ "Forbes Billionaires 2008". www.forbes.com. Archived from the original on 9 March 2008. Retrieved 20 March 2018.
  33. ^ "Catie Marron". HarperCollins US. Retrieved 20 March 2018.
  34. ^ Hagerty, James R. (7 December 2019). "Donald Marron, PaineWebber Chief and Art Collector, Dies at Age 85 - WSJ". Wall Street Journal.
  35. ^ "Donald Marron, Paine Webber CEO, Dies at 85". Bloomberg.com. 7 December 2019. Retrieved 2019-12-09.
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