Early Life and Education
Michael Robert Milken was born on July 4, 1946, in Encino, California, into a middle-class Jewish family. He excelled academically, graduating with highest honors from the University of California, Berkeley, with a B.S. He then earned an MBA from the Wharton School of the University of Pennsylvania. During his time at Drexel Harriman Ripley, he began specializing in low-rated bonds, recognizing their potential.
Rise to Success
Milken's career took off at Drexel Burnham Lambert, where he developed the high-yield bond market. This innovation allowed companies that were struggling to access capital to receive funding. He built a vast network of bond buyers, facilitating leveraged buyouts and corporate expansions. His success led to substantial earnings, with his compensation exceeding $1 billion over a four-year period in the late 1980s.
Key Business Strategies
Milken’s strategy revolved around identifying undervalued assets and providing financing to fuel growth. He saw the potential in "junk bonds," recognizing the risk-reward ratio. This approach provided the means for many companies to thrive. Milken's financing techniques transformed the capital markets, making them more dynamic.
Philanthropy
Milken has a strong focus on philanthropy. He co-founded the Milken Family Foundation in 1982 and the Prostate Cancer Foundation in 1993, after his own battle with prostate cancer. The Prostate Cancer Foundation is the world's largest private funder of prostate cancer research. He also founded FasterCures and the Melanoma Research Alliance, demonstrating a deep commitment to medical research and public health initiatives. In 2020, President Trump pardoned him for his past conviction.