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Scott Bessent

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Scott Bessent
Bessent in 2024
United States Secretary of the Treasury
Presumptive nominee
Assuming office
TBD
PresidentDonald Trump (elect)
SucceedingJanet Yellen
Personal details
Born
Scott Kenneth Homer Bessent

August 1962 (age 62)
Conway, South Carolina, U.S.
SpouseJohn Freeman
Children2
EducationYale University (BA)

Scott Kenneth Homer Bessent (/ˈbɛsənt/ BESS-ənt; born August 1962) is an American investor, philanthropist, and hedge fund manager. He was a partner at Soros Fund Management and the founder of Key Square Group, a global macro investment firm.[1][2]

Bessent has been a major donor, fundraiser, and an economic advisor for the Donald Trump 2024 presidential campaign. In November 2024, Trump named Bessent his nominee for United States secretary of the treasury.[3] If confirmed by the United States Senate, he will be the second openly gay man to serve in the Cabinet of the United States (after Pete Buttigieg) and the third openly gay man to serve in a cabinet-level office (after Richard Grenell and Pete Buttigieg).[4] As the United States secretary of the treasury is fifth in the United States presidential line of succession, he will be the highest-ranking openly LGBTQ person in American history.[5]

Early life and education

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Scott Kenneth Homer Bessent was born in August 1962[6] in Conway, South Carolina, probably the oldest of three children of Barbara (née McLeod) and Homer Gaston Bessent Jr., a real estate agent.[7][8][9] He is of French Huguenot ancestry. [10]

Bessent earned a bachelor's degree in political science from Yale University in 1984.[8][11] While in college, he was an editor for The Yale Daily News, president of Wolf's Head Society, and treasurer for the class of 1984. He was chairman of the 1984 Yale Alumni Fund and assistant to the director of athletics.[8][12]

Career

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Bessent interned with Jim Rogers.[13] After graduation, he worked at Brown Brothers Harriman, Kynikos Associates (Jim Chanos), and others.[14] Bessent joined Soros Fund Management (SFM) in 1991 and was a partner there throughout the 1990s, eventually becoming head of the London office.[7][15][16][17][18] In 1992, Bessent was a leading member of the team whose bet on the Black Wednesday collapse of the British pound garnered over $1 billion for the firm. His bet against the Japanese yen in 2013 brought additional profit.[19][20]

After resigning from SFM in 2000, Bessent founded a $1 billion hedge fund.[7][21] The fund closed in 2005. Bessent has said he learned that he should not change his style or the construct of the firm because of investor preferences.[14] He was also a senior investment advisor at fund-of-funds Protégé Partners.[22][15] Bessent returned to Soros Fund Management and was chief investment officer from 2011 to 2015.[16][23] He left in 2015 to begin a new firm, Key Square Group.[17][18]

Key Square Group

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Bessent founded Key Square Group in 2015 with Michael Germino, who had been the global head of capital markets at SFM.[24] Key Square uses geopolitics and economics to make macro investments.[19] Key Square received a $2 billion anchor investment from George Soros.[25] At the end of 2017, Key Square's assets were $5.1 billion.[25][26] Key Square's main fund returns increased by 13% in 2016 but lost money or broke even every year from 2017 to 2021 before making major gains in 2021, 2022 and 2023. The inconsistent track record scared away clients. Assets under management shrank from $5.1 billion in 2017 to $577 million in 2023 and the number of institutional investors declined from 180 to 20 over the same period.[27]

As part of a pre-arranged deal, the firm returned in 2018 the Soros capital as it took in other assets.[25] Its investors include Australia's sovereign wealth fund, Future Fund.[26]

Politics

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In 2000, Bessent hosted a fundraiser for Al Gore at his East Hampton, New York, home.[28] He has also donated to Hillary Clinton and Barack Obama.[29] In 2016, Bessent donated $1 million to Donald Trump's 2017 presidential inaugural committee.[30] In 2023 and 2024, Bessent donated more than $1 million to Donald Trump's 2024 campaign.[31]

In February 2024, Bessent hosted a fundraiser in Greenville, South Carolina, that raised nearly $7 million for Trump's 2024 campaign.[32] In April 2024, Bessent was a host for a Palm Beach, Florida, fundraiser that raised $50 million for the Trump campaign.[33] In July 2024, Bloomberg Businessweek reported that Bessent was a key economic advisor to Trump.[34] He proposed a three-point economic plan for Trump modeled on Japanese prime minister Shinzo Abe's "Three Arrows" economic policy.[35] Bessent praised Trump's proposal to implement broad tariffs.[36] Regarding Trump's pledge to impose blanket 20% tariffs on all imports, Bessent argued that these "were maximalist positions that would probably be watered down in talks with trading partners".[20]

On November 22, 2024, president-elect Trump announced his intention to nominate Bessent to serve as the United States secretary of the treasury in his second administration.[37][38] If confirmed by the Senate, Bessent would be the first openly gay secretary of the Treasury.[39]

Social engagement

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From 2006 to 2011, Bessent was an adjunct professor of economic history at Yale, where he taught three courses.[14][15]

Board memberships

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Bessent sits on the university council at Yale University.[12] Bessent and his sister donated the Bessent Library to Yale University.[40] Bessent has endowed three scholarships at Yale: one for students who are first-generation college matriculants, one for students from South Carolina, and one for students from the Bronx.[40]

Bessent chairs the investment committee and is a member of the executive committee on the board of trustees of Rockefeller University.[41] Bessent formerly served on the board of God's Love We Deliver, an organization founded to deliver meals for homebound people with AIDS.[12][42] He is a trustee of Classical American Homes Preservation Trust (renamed the Richard Hampton Jenrette Foundation),[43] and a former board member of the Spoleto Festival in Charleston, South Carolina.[41][44] Bessent is also a member of the Council on Foreign Relations.[12][41]

Philanthropy

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Bessent opened two foundations in 2022, and created the McLeod Rehabilitation Center at the Shriners Hospital for Children in Greenville, South Carolina.[45][46] He also supports the Prince's Trust in London and the Harlem Children's Zone in New York City.[45] Bessent has supported restoration of the Nathaniel Russell House, a National Historic Landmark in Charleston, SC.[47]

Personal life

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Bessent resides in Charleston, South Carolina,[48] and belongs to the Huguenot Church,[49] which his ancestors helped to build in 1680.[10] Bessent and his husband, former New York City prosecutor John Freeman, have two children.[50]

Pink Palace in Charleston

In 2016, Bessent purchased the historic John Ravenel House, owned by John Ravenel and inherited by his son St. Julien Ravenel and his wife Harriott Horry Ravenel. The building restoration project was awarded the Preservation Society of Charleston's Carolopolis Award in 2021. The mansion is known as the "Pink Palace" and is located on Battery Street in Charleston.[45][51][52][53]

References

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  1. ^ Foley, Stephen (August 4, 2015). "Scott Bessent quits Soros group to launch hedge fund". Financial Times. Retrieved November 12, 2024.
  2. ^ Foley, Stephen; Johnson, Miles; Childs, Mary (January 5, 2016). "Former George Soros executive raises $4.5bn for new fund". Financial Times. Retrieved November 12, 2024.
  3. ^ Restuccia, Andrew; Schwartz, Brian; Timiraos, Nick; Leary, Alex (November 22, 2024). "Trump Picks Scott Bessent as Treasury Secretary". The Wall Street Journal. Retrieved November 22, 2024.
  4. ^ Ring, Trudy (November 23, 2024). "Trump nominates investment manager Scott Bessent, a gay man, as Treasury secretary". The Advocate. Retrieved November 30, 2024.
  5. ^ Christopher Kane (November 24, 2024). "Trump nominates gay man for Treasury secretary". Washington Blade. Retrieved December 5, 2024.
  6. ^ "Scott Kenneth Homer Bessent personal appointments". Companies House. Retrieved November 24, 2024.
  7. ^ a b c "Meet The Hedge Fund Superstar George Soros Just Hired To Take Over His $25 Billion Fund," Business Insider, September 19, 2011
  8. ^ a b c "Scott Bessent". The Sun News. July 8, 1984. p. 8D. Retrieved November 15, 2024 – via Newspapers.com.Open access icon
  9. ^ "Homer G. Bessent Jr". The Sun News. January 15, 2000. p. 2C. Retrieved November 15, 2024 – via Newspapers.com.Open access icon
  10. ^ a b nreynolds@postandcourier.com, Nick Reynolds (November 13, 2024). "Scott Bessent of Charleston is on Trump's shortlist for US Treasury secretary. Who is he?". Post and Courier.
  11. ^ Burton, Katherine (September 19, 2011). "Ex-Soros Trader Bessent Returns to $25 Billion Firm as CIO". Bloomberg.
  12. ^ a b c d "New Members Appointed to University Council". Yale Daily News. November 8, 2016.
  13. ^ "Scott Bessent". www.moneymazepodcast.com.
  14. ^ a b c “Life and Money Management,” Yale Alumni Magazine, Sept/Oct 2015
  15. ^ a b c Zuckerman, Gregory (September 20, 2011). "Soros Puts New Man at Helm". The Wall Street Journal. Retrieved November 12, 2024.
  16. ^ a b "Soros appoints new CIO to family office". Financial Times. September 19, 2011.
  17. ^ a b "Soros's Investment Chief to Depart". The Wall Street Journal. August 4, 2015.
  18. ^ a b "Soros' CIO to Start Own Hedge Fund with $2 Bln". Reuters. August 4, 2015.
  19. ^ a b Zuckerman, Gregory; Rudegeair, Peter (October 10, 2024). "The Ex-Soros Executive Who is Trump's New Obsession". The Wall Street Journal.
  20. ^ a b Rogers, Alex; Politi, James (October 13, 2024). "Trump would not weaken the dollar, says adviser Scott Bessent". Financial Times.
  21. ^ “Soros’ European Investment Head Bessent Leaves,” Bloomberg, June 8, 2000
  22. ^ ""Soros Aide Wins Kudos for Japan Bets,"". Wall Street Journal. February 14, 2013.
  23. ^ “George Soros’ Protégé Just Nailed One of the Biggest Hedge Fund Launches Ever,” Business Insider, January 5, 2016
  24. ^ "Ex-Soros's Bessent Raises $4.5 Billion For New Hedge Fund Firm". Bloomberg. January 5, 2016.
  25. ^ a b c "George Soros Gets Most of His $2 Billion Back from Bessent". Bloomberg. May 14, 2018.
  26. ^ a b "Volatility Offers Rich Pickings". The Australian. November 16, 2018.
  27. ^ "Exclusive: Fund manager Bessent scores double on Trump victory". Reuters. 2024.
  28. ^ Dao, James; Seelye, Katherine Q. (August 6, 2000). "The 2000 Campaign: The Vice President; Gore's Theme-a-Day Tour Will Start With a No. 2 Pick". The New York Times.
  29. ^ Rappeport, Alan; Haberman, Maggie (November 22, 2024). "Trump Taps Investor Scott Bessent as Treasury Secretary". The New York Times.
  30. ^ Kight, Stef (April 19, 2017). "The big $$$ donors to Trump's Inaugural Committee". Axios.
  31. ^ "Individual Contributions - "Bessent, Scott"". Federal Election Commission. Retrieved November 23, 2024.
  32. ^ Kim, Soo Rin; Ibssa, Lalee (February 21, 2024). "Trump brings in more than $6.8 million from Greenville, South Carolina, fundraiser ahead of primary". ABC News.
  33. ^ "Trump Campaign Says $50.5 Million Haul Doubled Biden's Fundraiser". Newsweek. April 6, 2024.
  34. ^ Cook, Nancy; Green, Joshua; Parker, Mario (July 16, 2024). "Trump on Taxes. Tariffs, Jerome Powell and More". Bloomberg.
  35. ^ Reklaitis, Victor. "Possible Trump Pick for Treasury Lays Out 3-Point Economic Plan that Calls for Deregulation, Lower Deficit". MSN.
  36. ^ Saul, Derek (November 22, 2024). "What To Know About Scott Bessent: Trump's Pro-Tariff Treasury Pick". Forbes.
  37. ^ Franey, James (November 22, 2024). "Donald Trump to tap Scott Bessent for Treasury secretary, ending fierce battle for key job: sources". The New York Postaccess-date=November 23, 2024.
  38. ^ Cheung, Brian; Sonnier, Olympia; Richards, Zoë (November 22, 2024). "Trump picks Scott Bessent to serve as treasury secretary". NBC News. Retrieved November 23, 2024.
  39. ^ "What to know about Scott Bessent, Trump's Treasury pick". Axios. November 22, 2024. Retrieved November 23, 2024.
  40. ^ a b “Annual Report of Giving to Yale, 2000-2001," www.giving.yale.edu
  41. ^ a b c ""Three New Trustees Are Elected to the Board,"". Rockefeller University Press Release. March 3, 2016.
  42. ^ “Out 100 -- Money + Business: Scott Bessent,” Out Magazine, January 2001
  43. ^ "Team". Classical American Homes Preservation Trust. Retrieved November 25, 2024.
  44. ^ "Palatial Purchase Palmer Home B&B on East Battery, Known as the Pink Palace, Sells for $6.5M". Post and Courier. June 21, 2016.
  45. ^ a b c McDermott, John (July 31, 2022). "SC Hedge Fund Investor Looks to Spread the Word About math and Financial Literacy". Post and Courier.
  46. ^ "Barbara McLeod Bessent". Post and Courier.
  47. ^ Murray, Ashley (November 23, 2024). "Hedge fund chief and tariff fan Scott Bessent to lead Treasury under Trump • SC Daily Gazette". SC Daily Gazette. Retrieved November 25, 2024.
  48. ^ McDermott, John (July 31, 2022). "SC hedge fund investor looks to spread the word about math and financial literacy". Post and Courier.
  49. ^ "Trump reassures Wall Street by appointing billionaire financier Scott Bessent to Treasury". November 23, 2024 – via Le Monde.
  50. ^ Zuckerman, Gregory; Rudegeair, Peter (October 10, 2024). "The Ex-Soros Executive Who is Trump's New Obsession". The Wall Street Journal.
  51. ^ Hogan, Laura (February 3, 2022). "Carolopolis Awards Include Historic Homes, Visitor Center, Brick House Ruins". Post and Courier.
  52. ^ Wise, Warren L. (June 21, 2016). "Palatial Purchase Palme Home B&B on East Battery, Known as the Pink Palace, Sells for $6.5 M". Post and Courier.
  53. ^ Riddle, Lyn (November 15, 2024). "SC historic John Ravenel house on High Battery in Charleston is for sale for $22.25M". The State.

Further reading

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