Billionaire Report Highlights Detained Saudi Prince

The PwC-UBS billionaire report highlighted a joint deal between Bill Gates' Cascade Investment Group and Kingdom Holding,  directed by Prince Alwaleed Bin Talal, one of the world’s leading investors.  The pair bought out Four Seasons just before the 2008 financial crisis.

PwC-UBS released the billionaire report in October, before the corruption crackdown in Saudi Arabia that engulfed the Prince.  Money reported:

He’s the richest man in the Middle East.  And now he’s under house arrest.  Prince Alwaleed Bin Talal—best known for sporting a distinctive throwback mustache, trading in traditional Saudi garb for fine suits, and making a series of high-profile, brand-name investments—was detained this week as part of what the Saudis have called a corruption crackdown. It is not clear what specific charges have been leveled against the prince.

Four Seasons issued debt twice under billionaire ownership, according to Moody's.  The company floated $1.1 billion in debt in June 2013.  Part of those proceeds went to preferred shareholders.  It refinanced $950 million of debt in November 2016, with $36 million going to owners in the form of dividends.

Money noted the Prince's propensity for leverage:

Yet the New York Times also speculates that Prince Alwaleed may have gone bankrupt during the 2008 financial crisis—which might be connected to his detention. 

“He had been highly leveraged and somehow got elements of the government to bail him out, through his connections to then-King Abdullah and the finance minister, who is also said to have been arrested.

The United States rescued private money with trillions in public funds during the financial crisis.  Surely, the Saudi's did likewise.

Kingdom Holding Company: The World’s Foremost Value Investor 

Directed by Prince Under House Arrest in Corruption Crackdown

Billionaires, leverage, corruption and bailouts.  It can be a sordid tale.

Update 11-20-17:  A $1.3 billion bank loan for Kingdom Holdings is on hold pending the fate of  Prince Alwaleed Bin Talal.

Update 11-23-17:  Rumors have former Blackwater thugs tormenting and torturing Prince Alwaleed bin Talal while he remains in custody at the Riyadh Ritz Carlton.  The last fall of similar magnitude happened to Libya's Saif al-Islam Gaddafi when the west shifted from courting his father to ousting him.

Update 11-27-17:  Bill Gates publicly spoke about the plight of Prince Alwaleed bin Tabal, saying he only knew what he read in the press.  Gates called the detained Prince an important partner in improving health conditions around the globe.

Update 12-3-17:  CNBC noticed om 12-1-17 what PEUReport observed.  No friends of Prince bin Talal have spoken out on his behalf.