Ray Dalio—Worth $19 Billion—Will Get Billions More After ‘Frantic’ Exit Negotiations, Report Says

Topline

Billionaire Ray Dalio, founder of the hedge fund Bridgewater Associates, will receive billions of dollars in exchange for his retirement from the firm after “more than six months of frantic behind-the-scenes wrangling,” according to the New York Times, and after controversial comments about China raised eyebrows.

Key Facts

Dalio will receive a payout exceeding billions of dollars in regular payments in exchange for an agreement he will surrender control of key decisions at Bridgewater, current and former employees at the firm told the New York Times.

The firm, now co-led by Nir Bar Dea and Mark Bertolini, will pay Dalio through a personal stock called “Ray’s shares” giving him a dividend before anyone else, one employee said.

Dalio reportedly referred to the hedge fund as his “property rights” during exit negotiations, and indicated he wanted to be compensated for his separation from the firm after announcing his retirement last October.

His retirement announcement came nearly a year after controversial comments he made in an interview with CNBC in December 2021, in which he compared the alleged human rights abuses by the Chinese government to the behavior of a “strict parent.”

The payment concludes a years-long effort for Dalio to transition away from the company, following a 2009 announcement he would turn over his responsibilities.

Bridgewater did not immediately respond to a request for comment from Forbes.

Forbes Valuation

Dalio is worth $19.1 billion, according to our estimates, making him the 80th wealthiest person in the world. Bridgewater, the largest hedge fund in the world, manages an estimated $125 billion in public pensions and funds.

Surprising Fact

Dalio’s succession as CEO—despite working as a mentor and as the firm’s co-chairman and co-chief investment officer up until his retirement—has fluctuated in the last five years. David McCormick resigned from the position in January 2022 after a five-year tenure, leaving Bar Dea and Bertolini to serve as co-CEOs. McCormick, who also served as deputy national security advisor for international economic affairs during the Bush Administration, followed his resignation by running for Senate but lost the Republican nomination to surgeon-turned-television star Dr. Mehmet Oz by just 0.1% of votes. Eileen Murray, who served as co-CEO alongside McCormick from 2017 to 2020, sued the firm for discrimination. The case was later settled out of court.

Key Background

Dalio founded Bridgewater in his Connecticut-based two-bedroom apartment in 1975, serving as the firm’s CEO, CIO and chairman during a 47-year tenure. He is known for his “radical transparency” management style while requesting the firm’s employees to speak openly. Dalio stepped down as CEO in 2017 and as chairman in 2021 before transitioning into a CIO role in 2020, acting as more of a mentor for the company’s Investment Committee. The company’s website still lists Dalio, who announced his retirement from the company in October 2022, as a mentor to its CIOs and as a member of its governing board.

Further Reading

Hedge Fund Billionaire Extracts Billions More To Retire (New York Times)

Hedge Fund Giant Bridgewater Replaces CEO McCormick Who Plans Senate Run (Forbes)