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Whos the billionaire paying off nearly 400 graduates loans?
Members of Morehouse Colleges class of 2019 received more than their diplomas at the colleges commencement ceremony Sunday when honorary degree recipient Robert F. Smith announced he would eliminate the entire classs student debt.
This is my class, 2019, he said. And my family is making a grant to eliminate their student loans.
Morehouse is an all-male, historically black college in Atlanta. The billionaires gift is estimated to be worth about $40 million, based on the combined debt shouldered by the graduating classs nearly 400 students, making it the single largest individual donation to a historically black college or university.
Smith, 56, who holds an undergraduate degree from Cornell University and a master of business degree from Columbia University, is the founder of the nearly 20-year-old Austin, Texas, private equity firm Vista Equity Partners. His P.E. firm, which manages more than $46 billion in assets from pension funds and other big institutional investors, buys major stakes exclusively in software, data and technology companies. It has an exceptional annualized rate of return of 22%, according toForbes. The magazine also estimates the business whiz is worth about $5 billion.
Recognized for his leadership in both business and philanthropy, Smith is the first African-American to sign the Giving Pledge, created by Bill and Melinda Gates and Warren Buffett as a promise to commit at least half ones wealth to philanthropic causes. Other ultra-wealthy pledgers include former New York City mayor Michael R. Bloomberg and Facebook founder Mark Zuckerberg and his wife, Priscilla Chan.
Smith began his career in business at Kraft General Foods, where he earned a four U.S. and international patents, and joined Goldman Sachs in 1994 before ultimately founding his own investment firm.
His approach to philanthropy has been described as transformative, and his gifts, much like his grant to Morehouse students last weekend, are often unprecedented. Smith in 2017 made a $20 million gift to the National Museum of African America History and Culture, making him the single largest individual donor in the museums history. Other past gifts include sizable donations to Columbia and Cornell, whose School of Chemical and Biomolecular Engineering bears his name.
Morehouse graduates interviewed byCBS This Morningsaid they expect that Smiths gift will have an immeasurable impact on their lives.
Just imagine the weight lifted off your shoulders when you have a clean slate coming out of college, said Dwytt Lewis, a 2019 graduate with a degree in business administration, who owed more than $150,000 in debt.
Its just an overwhelming feeling, in a good way, the formerly homeless student told CBS News correspondent Mark Strassmann. Im so motivated to go change the world.
This isnt Smiths first gift to Morehouse. Earlier this year, he donated $1.5 million to fund endowed scholarships and build a park where students could study.
Smith did not return CBS News request for comment.
He said during his commencement address that he expects recipients to pay it forward, and hopes other benefactors will follow his lead and do what he did for future graduates.
His wife, Hope Dworaczyk, 34, whom he married in 2015, is a former Playboy model. She advocates for individuals with intellectual and developmental disabilities through an organization called Best Buddies.
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