Early Life and Education
Ira Leon Rennert was born on May 31, 1934, in Brooklyn, New York, to parents who were immigrants from Poland and Romania. He earned a Bachelor of Arts/Science from Brooklyn College in 1954 and a Master of Business Administration from New York University's Stern School of Business in 1956. His academic background laid the foundation for his future in the business world.
Rise to Success
Rennert started his career as a credit analyst on Wall Street in 1956. He later launched his own business, I. L. Rennert & Co., in 1962. However, his license was revoked in 1964 due to insufficient capital. Rennert subsequently used junk bond financing, facilitated by Michael Milken, to acquire struggling companies. This strategy involved acquiring shares of struggling companies and financing the acquisitions with junk bonds, later paying substantial dividends. This method allowed him to build a successful business empire.
Key Business Strategies
Rennert's strategy focused on acquiring companies in industries like mining and manufacturing. Renco Group acquired companies like WCI Steel, MagCorp/US Magnesium, and AM General. The use of junk bonds was a pivotal financial strategy, allowing Rennert to leverage debt for acquisitions, though it later led to controversies. He would later use dividends from these companies to benefit the Renco Group.
Philanthropy
Ira Rennert and his wife, Ingeborg, have made several charitable donations. They have supported various Jewish and cultural organizations, educational institutions, and medical research. They established the Ira Leon Rennert Professor of Entrepreneurial Finance at New York University and the Ingeborg Rennert Center for Jerusalem Studies at Bar-Ilan University.