Luis Carlos Sarmiento
Encyclopedia
Luis Carlos Sarmiento Angulo (born 27 January 1933) is a Colombian billionaire and the wealthiest man in Colombia with a net worth
of USD$10.5 billions as of 2011, fortune that derives from the massive banking conglomerate Grupo Aval Acciones y Valores, SA
, of which he is the majority shareholder and president.
developments. After making his name in the construction business, Sarmiento initiated an acquisitions campaign that has persisted for decades, concentrating on banks and financial
service institutions. By 2000, he was widely acknowledged as Colombia's top banking mogul
, holding an estimated 22 percent of the local banking assets, close to the maximum allowed by law.
Sarmiento founded Grupo Aval as a holding company
to gather his banking, telecommunications, and real estate
interests. Four major banks, as well as other financial service corporations, form the backbone of the organization. He is considered one of Colombia's most prudent entrepreneurs, known for his conservative management
techniques. This cautious approach helped his financial empire ride the storm generated by the worst recession
in Colombia's history. In 2000, plans to list Grupo Aval on the New York Stock Exchange
were postponed due to Wall Street
's unfavorable climate for emerging market funds. Sarmiento's net worth
increased significantly between 2005 and 2006, thanks largely to Colombia's blistering stock market
, Bolsa de Valores de Colombia
, the world's second best performing in 2005. As of 2006, he continues to run Grupo Aval with help from son Luis Carlos Jr., whom he is grooming to eventually take over the family empire.
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
of USD$10.5 billions as of 2011, fortune that derives from the massive banking conglomerate Grupo Aval Acciones y Valores, SA
Grupo Aval Acciones y Valores, SA
Grupo Aval is a Colombian holding company engaged in a wide variety of financial activities, including banking, telecommunications and real estate; in Colombia and Central America...
, of which he is the majority shareholder and president.
Career history
Sarmiento's career began modestly during the 1950s, building residential and commercialCommerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...
developments. After making his name in the construction business, Sarmiento initiated an acquisitions campaign that has persisted for decades, concentrating on banks and financial
FINANCIAL
FINANCIAL is the weekly English-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world’s largest companies, investing, careers, and small business. It is...
service institutions. By 2000, he was widely acknowledged as Colombia's top banking mogul
Business magnate
A business magnate, sometimes referred to as a capitalist, czar, mogul, tycoon, baron, oligarch, or industrialist, is an informal term used to refer to an entrepreneur who has reached prominence and derived a notable amount of wealth from a particular industry .-Etymology:The word magnate itself...
, holding an estimated 22 percent of the local banking assets, close to the maximum allowed by law.
Sarmiento founded Grupo Aval as a holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
to gather his banking, telecommunications, and real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
interests. Four major banks, as well as other financial service corporations, form the backbone of the organization. He is considered one of Colombia's most prudent entrepreneurs, known for his conservative management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
techniques. This cautious approach helped his financial empire ride the storm generated by the worst recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
in Colombia's history. In 2000, plans to list Grupo Aval on the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
were postponed due to Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
's unfavorable climate for emerging market funds. Sarmiento's net worth
Net worth
In business, net worth is the total assets minus total outside liabilities of an individual or a company. For a company, this is called shareholders' preference and may be referred to as book value. Net worth is stated as at a particular year in time...
increased significantly between 2005 and 2006, thanks largely to Colombia's blistering stock market
Stock market
A stock market or equity market is a public entity for the trading of company stock and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about $36.6 trillion...
, Bolsa de Valores de Colombia
Bolsa de Valores de Colombia
The Bolsa de Valores de Colombia, also known as BVC, is the principal stock exchange of Colombia. It was created on July 3, 2001 by the union of three extant stock exchanges in Colombia: Bogotá Stock Exchange , Medellín Stock Exchange and Cali's Western Stock Exchange .The company maintains...
, the world's second best performing in 2005. As of 2006, he continues to run Grupo Aval with help from son Luis Carlos Jr., whom he is grooming to eventually take over the family empire.