Icahn Enterprises L.P. Enters Into Agreement with Brett Icahn

Rhea-AI Summary

Icahn Enterprises announces significant management changes, including the appointment of Brett Icahn to the Board of Directors and his acquisition of $10 million in depositary units. Brett, son of Chairman Carl Icahn, will manage a new portfolio of assets within the Investment segment over a seven-year term, with Carl retaining veto rights. The company also revealed a management succession plan, anticipating that Brett will eventually succeed Carl as Chairman and CEO. Additionally, Icahn Capital LP has hired three new portfolio managers to support Brett's initiatives.

Positive

• Brett Icahn's appointment as a board member may enhance future leadership and strategic direction.
• The historical success of the Sargon Portfolio (26.8% annualized gross returns) suggests strong potential under new management.
• The hiring of experienced portfolio managers could improve asset management performance.

Negative

• None.

Brett Icahn Joins Board of Directors and Purchases $10 Million in Depositary Units

Icahn Enterprises Announces Management Succession Plan

Icahn Capital LP Hires Three Portfolio Managers

SUNNY ISLES BEACH, Fla., Oct. 01, 2020 (GLOBE NEWSWIRE) -- Icahn Enterprises L.P. (NASDAQ:IEP) today announced that it and its investment management subsidiary, Icahn Capital LP, have entered into an Agreement with Brett Icahn, the son of Chairman Carl Icahn. Pursuant to the Agreement, Brett Icahn and a new team of portfolio managers will manage a portfolio of assets within Icahn Enterprises’ Investment segment over a 7-year term, subject to certain veto rights by Carl Icahn. Brett Icahn will also join the Board of Directors of Icahn Enterprises and purchase $10 million in market value of depositary units from Carl Icahn.

Brett Icahn, a graduate of Princeton University, joined Icahn Capital in 2002 and in 2010 became responsible for co-managing the Sargon Portfolio, a portfolio of assets within the Investment segment, subject to certain veto rights by Carl Icahn. The Sargon Portfolio generated annualized gross returns of 26.8% from its formation on April 1, 2010 through its expiration on July 31, 2016.

Icahn Enterprises also announced the adoption of a management succession plan, pursuant to which it is currently anticipated that Brett Icahn will succeed Carl Icahn as Chairman of Icahn Enterprises and Chief Executive Officer of the Investment segment following the end of the 7-year term of the Agreement or earlier if Carl Icahn should so determine.

Icahn Capital has hired three portfolio managers who will work in the Investment segment under the supervision of Brett Icahn and Carl Icahn: Gary Hu, most recently an Analyst with Silver Point Capital; Steven Miller, most recently an Analyst in the Distressed and Special Situations group at BlueMountain Capital Management; and Andrew Teno, most recently a director at Fir Tree Partners.

About Icahn Enterprises L.P.

Icahn Enterprises L.P., a master limited partnership, is a diversified holding company engaged in seven primary business segments: Investment, Energy, Automotive, Food Packaging, Metals, Real Estate and Home Fashion.

Caution Concerning Forward-Looking Statements

This release contains or may be deemed to contain certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of Icahn Enterprises L.P. and its subsidiaries. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors, including risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission. Past performance in our Investment segment is not indicative of future performance. There can be no assurance that any forward-looking information will result or be achieved. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise.

Investor Contact:
SungHwan Cho, Chief Financial Officer
(305) 422-4000

FAQ

What is Brett Icahn's new role at Icahn Enterprises?

Brett Icahn has been appointed to the Board of Directors and will manage a new investment portfolio.

How much did Brett Icahn invest in Icahn Enterprises?

Brett Icahn purchased $10 million in market value of depositary units.

What is the duration of the management agreement for Brett Icahn?

The management agreement is set for a seven-year term.

Who will lead Icahn Enterprises after Carl Icahn?

Brett Icahn is expected to succeed Carl Icahn as Chairman and CEO after the management agreement ends.

Who are the new portfolio managers hired by Icahn Capital?

The new portfolio managers are Gary Hu, Steven Miller, and Andrew Teno.