This video from Forbes details how Les Wexner, the former chairman of L Brands (Victoria's Secret parent company), has more than doubled his fortune since stepping down from his company five years ago. Despite expectations of a quiet retirement following controversy over his ties to Jeffrey Epstein, Wexner's net worth has surged by over $2 billion in just three months, reaching an estimated $10.1 billion. The primary driver of this growth is a savvy, early-stage investment made by his family's trust in the AI giant CoreWeave. An initial investment of just $1.6 million has blossomed into a 4% stake now worth $2.8 billion, following CoreWeave's massive valuation increase to nearly $73 billion. The report also touches on CoreWeave's business model, its recent creation of several new billionaires, and how the Wexner family's stake was revealed through an ongoing lawsuit with a wealth management firm.
Les Wexner's $2 Billion AI Windfall
00:00:11 Wexner's Departure: Five years ago, Les Wexner stepped down as chairman of L Brands, the parent company of Victoria's Secret, amid controversy over his close relationship with Jeffrey Epstein.
00:00:36 Post-Retirement Fortune Growth: Instead of retiring quietly, the fashion mogul has more than doubled his fortune, largely through tech investments. His net worth has soared from $7.9 billion to $10.1 billion in just the last three months.
00:01:01 The CoreWeave Stake: The biggest driver of this increase is a 4% family stake in the AI company CoreWeave, which is now worth $2.8 billion. CoreWeave's market capitalization has almost tripled to nearly $73 billion since its March IPO.
00:01:31 A Savvy Early Investment: A trust for Wexner's children invested $1 million in CoreWeave in 2019 and an additional $600,000 in 2021. By the time the company went public, the stake was already valued at $730 million.
00:02:02 CoreWeave's Business: The company builds data centers and provides cloud access to high-demand graphics processing units (GPUs) for AI development. Despite a 420% increase in Q1 revenue to $982 million, it is not yet profitable, reporting a net loss of $315 million for the same period.
00:02:46 Minting New Billionaires: CoreWeave's explosive growth has created at least four new billionaires, including its three co-founders and an early board member.
00:03:16 Revealed by Lawsuit: The Wexner family's investment was discovered through a lawsuit filed by a wealth management firm, Florence Capital Advisers, which is seeking a $7 million fee for advising the initial investment. The family trust has countersued, and the case is ongoing.
00:04:02 Wexner's Other Assets: In addition to the CoreWeave stake, the family's vast fortune includes over $2 billion from selling L Brands shares, a $950 million real estate firm, a $1.4 billion art collection, a superyacht, and hundreds of millions in luxury homes.