How are so many finance firm founders jewish?

Hi guys, quick question. To preface, I am not anti-semitic, and my dads side is actually Jewish. I was making a list of firms to target and noticed that almost all of the top finance firms are founded by jewish people. Does this actually mean anything for the industry? Do jewish people actually control all of the wealth in the states?

Blackstone-Stephen Allen Schwarzman

KKR-Henry Kravis

Apollo-Leon Black

Carlyle-David Rubenstein

TPG-David Bonderman

Warburg-Eric M. Warburg

H&F-Tully Friedman

Ares-Tony Ressler

Apax-Alan Patricof

Oaktree-Steven Kaplan

Centerbridge-Jeff Aronson

Cerberus-Steve Feinberg

Neuberger Berman-Roy Neuberger

GTCR-Stanley Golder

Leonard Green & Partners-Leonard I. Green

Thomas H. Lee-Thomas H. Lee

TCW-Marc Stern

Starwood-Barry Sternlicht

Searchlight-Eric Zinterhofer

Kleiner Perkins-Joe Lacob

Berkshire Partners-Bradley M. Bloom

BlackRock-Jarry Fink

a16z-Ben Horowitz

PJT-Paul J. Taubman

Evercore-Roger Altman

PWP-Peter Weinberg

Lazard-Solomon Lazard

Centerview-Blair Effron

Guggenheim-Alan Schwartz

Moelis-Ken Moelis

Rothschild-David René de Rothschild

Citi-Sanford I. Weill

Cowen-Peter A. Cohen

Jefferies-Rich Handler

Pershing Square-Bill Ackman

Point72-Steven A. Cohen

Millennium Management-Israel "Izzy" Englander

Lone Pine-Stephen Mandel Jr.

DE Shaw-David E. Shaw

Melvin Capital-Gabe Plotkin

Appaloosa Management-David Tepper

Susquehanna-Arthur Dantchik

Greenlight-David Einhorn

Baupost-Seth Klarman

AQR-Cliff Asness

Elliott Management-Paul Singer

36 Comments
 
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Will assume good intent here. Jewish people traditionally were allowed to work in lending and many gravitated toward that. For centuries Christianity and Islam (still the case) forbid this type of work, while Judaism did not. Thus, for many Jews finance has been a family occupation for a very long time. It’s an easy Google search if you want to read the history here.

Another factor being that Jewish immigrants had a culture of high achievement and emphasis on education. That is why you see Jews overrepresented in Academia, law, medicine, etc. Not so dissimilar from Asians and Indians in the last several decades.

 

Some more perspective on this point: Historically during the whole Medieval Christian Europe and later, Jews were prohibited to own land, so they had to gravitate towards other ways of making money. So in a society where land was the only tangible means to have wealth, they had to invent a new way of making money that did not have anything tangible, which was mainly services. But as people were anti-semitic and most services were pretty mundane for the day to day peasant, who would take a Jew to clean their house or someone to take care of their kids? So they built a type of service that people has to use because of neediness: Banking (lending) and then finance more broadly to accomodate some needs related to lending (actually the first concept of a bank was invented by Italian criminals that were in the abusive business of usury, and then the King made it legal lol, but after that Jews welcome it wholeheartedly). I am sure that the history surrounding the Jews namely that they can't tie themselves to much to tantible things (land for Medieval History and a country for Germany) leads them to feel more inclined to pursue more abstract things (law/finance/medicine) where one doesn't really depend on someone else or on some institution or on some country, but where he is only concerned with his own persona (which is another reason that Germany hated them because they lacked any strong tie to a national identity which in nationalist state is no bueno).

incentives trumph ethics
 

I’ll try and answer this. I believe it comes down to historical reasons. Hundreds of years ago, Jewish people living in many kingdoms weren’t allowed to own property, so traditional ways of making money weren’t available to them (agriculture, manufacturing etc). Banks and financial institutions primarily make money with other people’ assets, so this industry was one that was available to them. Also, there are religious reasons. In the past, people practicing Christianity and Islam were not allowed to lend or borrow interest-bearing notes (in more recent times, Christian leaders have decided to allow it, but it remains a topic of debate amongst Muslim scholars). The debt side of capital markets is many times larger than the equity portion, so this is very relevant. Having multiple generations of family history in the industry by either necessity or because the option was available tends to give you a leg up on others. A lot of us look to our parents and family members when we decide on careers, often opting the follow in their footsteps exactly or in a related industry so these historical events could still have an impact on the choices people make in terms of career.

 

Prob tied to the fact that finance used to be somewhat of a regional industry and NYC area had a large population of Jews. Jewish families typically placed a high value on academics. If you look at many of the bios, especially of the older guys, so many of them grew up in one of the boroughs. If you go back like 40-60 years ago finance wasn't what it was today and many of these guys were just new yorkers. To an extent its just the luck of an exploding industry and a likely over index due to geography and academic emphasis. Sure there is the whole jewish aspect of being bankers back in Europe but I dont think this is that. Most of these guys were just true middle class kids from Brooklyn, Queens, the Bronx, the city etc that happened to do well academically and get into finance. 

 

Fjsjrjdns:

IQ, nepotism in the culture, cultural focus on academics and well paying careers, and avarice, generally in that order. Lol at the jokers above trying to state “historical” reasons for some dude being a HF manager.


Even 30 years ago a lot of WASPs thought it was tacky to talk about / work with other peoples money. Jews did not. You’re a joker if you think that historical difference in culture didn’t play a role in who felt comfortable starting their career in finance. There’s as much nepotism as the next tightly knit community. Doesn’t exactly explain all the Jewish doctors and professors.

 
IBASO

Fjsjrjdns:

IQ, nepotism in the culture, cultural focus on academics and well paying careers, and avarice, generally in that order. Lol at the jokers above trying to state “historical” reasons for some dude being a HF manager.


Even 30 years ago a lot of WASPs thought it was tacky to talk about / work with other peoples money. Jews did not. You’re a joker if you think that historical difference in culture didn’t play a role in who felt comfortable starting their career in finance. There’s as much nepotism as the next tightly knit community. Doesn’t exactly explain all the Jewish doctors and professors.

You mean 1995!? What are you smoking dude, I want some. It’s amazing how delusional some people are

 

Jewish people are certainly "model minorities". They value education and as others have commented, their heritage also lends itself to finance and banking.

However, and they will deny this to the ends of the Earth but it is true (and I think them refusing to admit it has even some merit actually causes more anger towards them as a people), they also look after their own and give that helping hand to get a step up to their own. They have a collective family, born out of the trauma they as a people experienced during the holocaust and the countless other events before that which arose out of antisemitism. I give them full credit for being insular, however, it also means that they will go out of their way to help advance other Jewish people, meaning smart, young, Jewish people in finance, get a leg up from rich, old, Jewish people in finance in a way that no one else ever would.

I have a friend in LA who invests in real estate - he unashamedly (and good for him) told me the best investment he's ever made is the $10 star of David necklace he wears around the city... what does that tell you?

 

Not antisemitism to call out nepotism which is unfair towards gentilles.

Calling it that creates division - have to be able to receive criticism and not throw up walls. Everyone here also acquiesced and said Jews are model minorities that value education and hard work.

I’m not saying the guys listed above and most Jews aren’t brilliant and hard working. I’m just also saying they will help each other out in a way that gentiles will never experience.

 

Historically, many religions prohibited charging interest on loaned money. Jewish people, facing discrimination and limitations in other professions, played a significant role in the development of modern banking practices due to their ability to participate in this area.
Education and Opportunity:

Jewish communities have historically emphasized education as a path to overcome oppression. This is reflected in the stereotype, often heard among Jewish families, of children being pressured to pursue careers like medicine or law. This prioritization of education is also seen in the success of other groups facing similar challenges, such as the high number of Indian CEOs in Fortune 500 companies.


Personal Experience:

While not raised Jewish myself, I have a Jewish last name. In my professional interactions, I've sometimes felt a sense of connection with Jewish people. However, I have yet been offered the opportunity to join a Cabal. 

 

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