Terren Peizer
Encyclopedia
Terren S. Peizer, chronicled by the LA Times as a financial prodigy,sometimes called the "Zelig of Wall Street" is currently the Chairman of a Los Angeles-based investment company, Socius Capital Group (SCG). Since its inception in June 2009 to December 2010, SCG has provided companies with capital commitments and funding in excess of $400 million. Most recently Peizer’s Socius Capital Group invested $15 million into Poynt Corporation a global leader in the mobile local advertising space.
Raised in Beachwood, Ohio
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
, First Boston
and Drexel Burnham Lambert
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
.
Mr. Peizer has been called "One of Wall Street’s top players" and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
of the East Coast" because in his workaholic manner, he provided Drexel-Burnham-Lambert
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man." Because Mr. Peizer and Michael Milken shared clients, desk and phone, it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed traders would provide the foundation to his investment career.
In the midst of Drexel's liquidation
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.” He later teamed up with Neil Cole
to capitalize the company “Candies” which is the predecessor to today's multi-billion dollar Iconix Brand Group
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort." Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
company and the Super Computer industry’s leading designer and builder. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Industry's dominant services provider Fresenius Medical Care
. Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things." Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
, Storer Cable, and RJR Nabisco
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
, John Malone, Carl Icahn
, Ted Turner
, Nelson Peltz
and Rupert Murdoch
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run," married Peter Gruber and John Peter's
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ), joining Ford Motor Company
and the United Auto Workers
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving."
Terren S. Peizer, chronicled by the LA Times as a financial prodigyhttp://articles.latimes.com/1994-07-31/business/fi-22082_1_high-rollers,sometimes called the "Zelig of Wall Street"http://www.nytimes.com/1998/02/17/business/market-place-no-sales-but-watch-the-stock-soar.html is currently the Chairman of a Los Angeles-based investment company, Socius Capital Group (SCG). Since its inception in June 2009 to December 2010, SCG has provided companies with capital commitments and funding in excess of $400 million. Most recently Peizer’s Socius Capital Group invested $15 millionhttp://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8115308 into Poynt Corporation a global leader in the mobile local advertising space.
Raised in Beachwood, Ohio
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
, First Boston
and Drexel Burnham Lambert
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
.
Mr. Peizer has been called "One of Wall Street’s top players"Taub, Stephen. “From Rats to Riches.” Financial World, Apr 26, 1994. and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
of the East Coast"publication "Wall Street Weekly" March, 1985 because in his workaholic manner, he provided Drexel-Burnham-Lambert
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man."Forbes, September 6, 1999 " War of the Milkenites" page 54-54 by: Seth Lubove Because Mr. Peizer and Michael Milken shared clients, desk and phone,1996-Griffin, Nancy and Masters, Kim. "Hit & Run": it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed tradershttp://www.forbes.com/forbes/1999/0906/6405054a_print.html would provide the foundation to his investment career.
In the midst of Drexel's liquidation
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.”Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. He later teamed up with Neil Cole
to capitalize the company “Candies”Rigg, Cynthia. "Neil Cole eyes '70s classic to buoy troubled shoe firm." Crain's New York Business, 1992. which is the predecessor to today's multi-billion dollar Iconix Brand Group
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
company and the Super Computer industry’s leading designer and builder.Alexander, Steve. “Struggling Firm Buys Struggling Cray Research. Silicon Graphics Sells Company to Seattle-based Tera Computer.” Star-Tribune, Mar 3, 2000. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Industry's dominant services provider Fresenius Medical Care
.Forbes Profile Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994 Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
, Storer Cable, and RJR Nabisco
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
, John Malone, Carl Icahn
, Ted Turner
, Nelson Peltz
and Rupert Murdoch
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run,"Google Books, Hit&Run married Peter Gruber and John Peter's
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.Griffin, Nancy and Masters, Kim. Hit & Run: How Jon Peters and Peter Gruber Took SONY for a Ride in Hollywood. Simon & Schuster. 1996.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."Lubove, Seth. "Small world, ain't it?" Forbes, Sept 6, 1999
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). http://hythiam.com/CompletedStudies.htm In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ),http://www.healthplanofnevada.com/ joining Ford Motor Company
and the United Auto Workers
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving."
Terren S. Peizer, chronicled by the LA Times as a financial prodigyhttp://articles.latimes.com/1994-07-31/business/fi-22082_1_high-rollers,sometimes called the "Zelig of Wall Street"http://www.nytimes.com/1998/02/17/business/market-place-no-sales-but-watch-the-stock-soar.html is currently the Chairman of a Los Angeles-based investment company, Socius Capital Group (SCG). Since its inception in June 2009 to December 2010, SCG has provided companies with capital commitments and funding in excess of $400 million. Most recently Peizer’s Socius Capital Group invested $15 millionhttp://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8115308 into Poynt Corporation a global leader in the mobile local advertising space.
Raised in Beachwood, Ohio
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
, First Boston
and Drexel Burnham Lambert
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
.
Mr. Peizer has been called "One of Wall Street’s top players"Taub, Stephen. “From Rats to Riches.” Financial World, Apr 26, 1994. and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
of the East Coast"publication "Wall Street Weekly" March, 1985 because in his workaholic manner, he provided Drexel-Burnham-Lambert
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man."Forbes, September 6, 1999 " War of the Milkenites" page 54-54 by: Seth Lubove Because Mr. Peizer and Michael Milken shared clients, desk and phone,1996-Griffin, Nancy and Masters, Kim. "Hit & Run": it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed tradershttp://www.forbes.com/forbes/1999/0906/6405054a_print.html would provide the foundation to his investment career.
In the midst of Drexel's liquidation
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.”Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. He later teamed up with Neil Cole
to capitalize the company “Candies”Rigg, Cynthia. "Neil Cole eyes '70s classic to buoy troubled shoe firm." Crain's New York Business, 1992. which is the predecessor to today's multi-billion dollar Iconix Brand Group
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
company and the Super Computer industry’s leading designer and builder.Alexander, Steve. “Struggling Firm Buys Struggling Cray Research. Silicon Graphics Sells Company to Seattle-based Tera Computer.” Star-Tribune, Mar 3, 2000. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Industry's dominant services provider Fresenius Medical Care
.Forbes Profile Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994 Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
, Storer Cable, and RJR Nabisco
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
, John Malone, Carl Icahn
, Ted Turner
, Nelson Peltz
and Rupert Murdoch
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run,"Google Books, Hit&Run married Peter Gruber and John Peter's
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.Griffin, Nancy and Masters, Kim. Hit & Run: How Jon Peters and Peter Gruber Took SONY for a Ride in Hollywood. Simon & Schuster. 1996.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."Lubove, Seth. "Small world, ain't it?" Forbes, Sept 6, 1999
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). http://hythiam.com/CompletedStudies.htm In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ),http://www.healthplanofnevada.com/ joining Ford Motor Company
and the United Auto Workers
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving." http://www.addictionjournal.org/viewpressrelease.asp?pr=162
Hythiam’s success has not come without criticism. Hythiam gained some notice for its 2006 ad campaign licensing deceased comedian Chris Farley’s image with the slogan, "It wasn't all his fault" (alluding to his death from a drug overdose).Farley’s photo to be used on drug treatment ads: Family gives approval to use image of star who died of overdose". Associated Press. April 1, 2006. This advertisement campaign garnered national attention, as Peizer became a fixture on the American news circuit, regularly appearing on national news syndicates such as Fox News, CNN
, Good Morning America
, The Today Show
, and CNBC's Squawk Box and Mad Money. Despite questions about its tastefulness, and criticism from addiction treatment providers for advertising direct to consumers, Peizer defended the campaign as "creating awareness" about addiction as a medical disease, not a social and psychological personality disorder.
Other critics focused on the company's emphasis on sales over research that would establish the validity of Prometa
, especially since the FDA restricts marketing of drugs to the purpose for which they have been approved. Peizer justified the company's approach in a 60 Minutes episode"Prescription For Addiction". 60 Minutes (CBS News). December 9, 2007. as providing information about the treatment protocol to physicians, since Hythiam does not market the medications directly to consumers. The physicians in the practice of medicine then prescribe the medications to the patients in need.The FDA allows physicians to prescribe all FDA approved medications off label in the practice of medicine. Addiction experts marveled that Peizer was exploiting a nuance and "loophole" that no one ever dared before him.
Raised in Beachwood, Ohio
Beachwood, Ohio
-External links:* *...
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
Shareholder value
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders...
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, First Boston
First Boston
First Boston Corporation was a New York-based, bulge bracket, investment bank, founded in 1932 and acquired by Credit Suisse in 1990. Together with its sister investment banks, it was referred to as CS First Boston after 1993 and part of Credit Suisse First Boston after 1996, the First Boston part...
and Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
Wharton School of the University of Pennsylvania
The Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
.
Mr. Peizer has been called "One of Wall Street’s top players" and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.
Investment career
Mr. Terren Peizer is a graduate of the Wharton Business School at the University of Pennsylvania. In 1980 and at just the young age of 20 years old, Mr. Peizer was recruited by former Treasury Secretary Robert RubinRobert Rubin
Robert Edward Rubin served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs eventually serving as a member of the Board, and Co-Chairman from 1990-1992...
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
of the East Coast" because in his workaholic manner, he provided Drexel-Burnham-Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
Danaher Corporation
The Danaher Corporation , is a large global company headquartered in Washington, D.C., United States. Its products are concentrated in the fields of design, manufacture, and marketing of industrial and consumer products....
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man." Because Mr. Peizer and Michael Milken shared clients, desk and phone, it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed traders would provide the foundation to his investment career.
In the midst of Drexel's liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.” He later teamed up with Neil Cole
Neil Cole
Neil Cole is an English television presenter, comedian, radio broadcaster and actor.-Early life:Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford...
to capitalize the company “Candies” which is the predecessor to today's multi-billion dollar Iconix Brand Group
Iconix Brand Group
Iconix Brand Group is a brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear, and apparel accessory industries. Its brands are available in such stores as Kohl's, Kmart, Sears, Macy's, Target and JC Penney.The company began as Candie's,...
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort." Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
company and the Super Computer industry’s leading designer and builder. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Dialysis
In medicine, dialysis is a process for removing waste and excess water from the blood, and is primarily used to provide an artificial replacement for lost kidney function in people with renal failure...
Industry's dominant services provider Fresenius Medical Care
Fresenius Medical Care
Fresenius Medical Care is a German company specializing in the production of medical supplies, primarily to facilitate or aid renal dialysis. It is 36%-owned by the health care company Fresenius. The company was formed in 1996 from the merger of Fresenius Worldwide Dialysis, then a division of...
. Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things." Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
Major Deals and Financial Transactions
Although there have been no recent attempts to estimate Peizer's wealth, the Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
Beatrice Foods
Beatrice Foods Company was a major American food processing company. In 1987, its smaller international food operations were sold to Reginald Lewis, a corporate attorney creating TLC Beatrice International, after which the majority of its domestic brands and assets were acquired by Kohlberg,...
, Storer Cable, and RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
Ron Perlman
Ronald N. "Ron" Perlman is an American television, film and voice over actor. He is known for having played Vincent in the TV series Beauty and the Beast , a Deathstroke figure known as Slade in the animated series Teen Titans, Clarence "Clay" Morrow in Sons of Anarchy, the comic book character...
, John Malone, Carl Icahn
Carl Icahn
Carl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
, Ted Turner
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
, Nelson Peltz
Nelson Peltz
Nelson Peltz is an American businessman. He is a board director of Wendy's Group, the franchise parent of T.J. Cinnamons, Pasta Connection and Wendy's. Peltz is the former owner of Snapple.- Background :...
and Rupert Murdoch
Rupert Murdoch
Keith Rupert Murdoch, AC, KSG is an Australian-American business magnate. He is the founder and Chairman and CEO of , the world's second-largest media conglomerate....
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run," married Peter Gruber and John Peter's
John Peters
John Peters is an American International Master of chess. He is the chess columnist for the Los Angeles Times.As of May 2011, his FIDE rating is 2370.-External links:*...
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
Alec Gores
Alec E. Gores is an American businessman who made his fortune through leveraged buyouts of technology firms. His personal wealth was estimated at roughly $1.5 billion by Forbes magazine in 2008.-Early life and education:...
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
Silicon Graphics
Silicon Graphics, Inc. was a manufacturer of high-performance computing solutions, including computer hardware and software, founded in 1981 by Jim Clark...
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."
Drexel Burnham Lambert
Peizer is occasionally also known for his role, then only 28 years old, in cooperating "along with other Drexel employees and clients" as a witness in the government's case against Michael Milken and Drexel Burnham Lambert, Inc. in the federal crackdown on insider trading in the mid to late 1980s; which eventually led to guilty pleas from financier Michael Milken and Drexel. The case was prosecuted by Rudolph Giuliani while he was the U.S. Attorney in New York. Peizer himself was never involved in any Securities and Exchange Commission infractions, nor a subject or a target for any criminal prosecution; Peizer was merely a witness, amongst other Drexel employees and clients. In court transcripts, Judge Kimba Wood applauded Peizer for his sincerity, honesty, and integrity.Hythiam and Prometa
Peizer founded the PrometaPrometa
Prometa is a controversial treatment protocol used primarily for methamphetamine addiction, although it has also been claimed to be effective for dependence on alcohol or cocaine. The treatment, based on the research of Spanish psychologist Juan Jose Legarda, involves a combination of three...
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
Substance dependence
The section about substance dependence in the Diagnostic and Statistical Manual of Mental Disorders does not use the word addiction at all. It explains:...
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ), joining Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
and the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving."
Terren S. Peizer, chronicled by the LA Times as a financial prodigyhttp://articles.latimes.com/1994-07-31/business/fi-22082_1_high-rollers,sometimes called the "Zelig of Wall Street"http://www.nytimes.com/1998/02/17/business/market-place-no-sales-but-watch-the-stock-soar.html is currently the Chairman of a Los Angeles-based investment company, Socius Capital Group (SCG). Since its inception in June 2009 to December 2010, SCG has provided companies with capital commitments and funding in excess of $400 million. Most recently Peizer’s Socius Capital Group invested $15 millionhttp://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8115308 into Poynt Corporation a global leader in the mobile local advertising space.
Raised in Beachwood, Ohio
Beachwood, Ohio
-External links:* *...
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
Shareholder value
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders...
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, First Boston
First Boston
First Boston Corporation was a New York-based, bulge bracket, investment bank, founded in 1932 and acquired by Credit Suisse in 1990. Together with its sister investment banks, it was referred to as CS First Boston after 1993 and part of Credit Suisse First Boston after 1996, the First Boston part...
and Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
Wharton School of the University of Pennsylvania
The Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
.
Mr. Peizer has been called "One of Wall Street’s top players"Taub, Stephen. “From Rats to Riches.” Financial World, Apr 26, 1994. and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
Investment career
Mr. Terren Peizer is a graduate of the Wharton Business School at the University of Pennsylvania. In 1980 and at just the young age of 20 years old, Mr. Peizer was recruited by former Treasury Secretary Robert RubinRobert Rubin
Robert Edward Rubin served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs eventually serving as a member of the Board, and Co-Chairman from 1990-1992...
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
of the East Coast"publication "Wall Street Weekly" March, 1985 because in his workaholic manner, he provided Drexel-Burnham-Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
Danaher Corporation
The Danaher Corporation , is a large global company headquartered in Washington, D.C., United States. Its products are concentrated in the fields of design, manufacture, and marketing of industrial and consumer products....
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man."Forbes, September 6, 1999 " War of the Milkenites" page 54-54 by: Seth Lubove Because Mr. Peizer and Michael Milken shared clients, desk and phone,1996-Griffin, Nancy and Masters, Kim. "Hit & Run": it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed tradershttp://www.forbes.com/forbes/1999/0906/6405054a_print.html would provide the foundation to his investment career.
In the midst of Drexel's liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.”Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. He later teamed up with Neil Cole
Neil Cole
Neil Cole is an English television presenter, comedian, radio broadcaster and actor.-Early life:Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford...
to capitalize the company “Candies”Rigg, Cynthia. "Neil Cole eyes '70s classic to buoy troubled shoe firm." Crain's New York Business, 1992. which is the predecessor to today's multi-billion dollar Iconix Brand Group
Iconix Brand Group
Iconix Brand Group is a brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear, and apparel accessory industries. Its brands are available in such stores as Kohl's, Kmart, Sears, Macy's, Target and JC Penney.The company began as Candie's,...
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
company and the Super Computer industry’s leading designer and builder.Alexander, Steve. “Struggling Firm Buys Struggling Cray Research. Silicon Graphics Sells Company to Seattle-based Tera Computer.” Star-Tribune, Mar 3, 2000. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Dialysis
In medicine, dialysis is a process for removing waste and excess water from the blood, and is primarily used to provide an artificial replacement for lost kidney function in people with renal failure...
Industry's dominant services provider Fresenius Medical Care
Fresenius Medical Care
Fresenius Medical Care is a German company specializing in the production of medical supplies, primarily to facilitate or aid renal dialysis. It is 36%-owned by the health care company Fresenius. The company was formed in 1996 from the merger of Fresenius Worldwide Dialysis, then a division of...
.Forbes Profile Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994 Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
Major Deals and Financial Transactions
Although there have been no recent attempts to estimate Peizer's wealth, the Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
Beatrice Foods
Beatrice Foods Company was a major American food processing company. In 1987, its smaller international food operations were sold to Reginald Lewis, a corporate attorney creating TLC Beatrice International, after which the majority of its domestic brands and assets were acquired by Kohlberg,...
, Storer Cable, and RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
Ron Perlman
Ronald N. "Ron" Perlman is an American television, film and voice over actor. He is known for having played Vincent in the TV series Beauty and the Beast , a Deathstroke figure known as Slade in the animated series Teen Titans, Clarence "Clay" Morrow in Sons of Anarchy, the comic book character...
, John Malone, Carl Icahn
Carl Icahn
Carl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
, Ted Turner
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
, Nelson Peltz
Nelson Peltz
Nelson Peltz is an American businessman. He is a board director of Wendy's Group, the franchise parent of T.J. Cinnamons, Pasta Connection and Wendy's. Peltz is the former owner of Snapple.- Background :...
and Rupert Murdoch
Rupert Murdoch
Keith Rupert Murdoch, AC, KSG is an Australian-American business magnate. He is the founder and Chairman and CEO of , the world's second-largest media conglomerate....
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run,"Google Books, Hit&Run married Peter Gruber and John Peter's
John Peters
John Peters is an American International Master of chess. He is the chess columnist for the Los Angeles Times.As of May 2011, his FIDE rating is 2370.-External links:*...
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.Griffin, Nancy and Masters, Kim. Hit & Run: How Jon Peters and Peter Gruber Took SONY for a Ride in Hollywood. Simon & Schuster. 1996.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
Alec Gores
Alec E. Gores is an American businessman who made his fortune through leveraged buyouts of technology firms. His personal wealth was estimated at roughly $1.5 billion by Forbes magazine in 2008.-Early life and education:...
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
Silicon Graphics
Silicon Graphics, Inc. was a manufacturer of high-performance computing solutions, including computer hardware and software, founded in 1981 by Jim Clark...
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."Lubove, Seth. "Small world, ain't it?" Forbes, Sept 6, 1999
Drexel Burnham Lambert
Peizer is occasionally also known for his role, then only 28 years old, in cooperating "along with other Drexel employees and clients" as a witness in the government's case against Michael Milken and Drexel Burnham Lambert, Inc. in the federal crackdown on insider trading in the mid to late 1980s; which eventually led to guilty pleas from financier Michael Milken and Drexel. The case was prosecuted by Rudolph Giuliani while he was the U.S. Attorney in New York. Peizer himself was never involved in any Securities and Exchange Commission infractions, nor a subject or a target for any criminal prosecution; Peizer was merely a witness, amongst other Drexel employees and clients. In court transcripts, Judge Kimba Wood applauded Peizer for his sincerity, honesty, and integrity.see public record " Court Transcripts " Milken vs US 1991Hythiam and Prometa
Peizer founded the PrometaPrometa
Prometa is a controversial treatment protocol used primarily for methamphetamine addiction, although it has also been claimed to be effective for dependence on alcohol or cocaine. The treatment, based on the research of Spanish psychologist Juan Jose Legarda, involves a combination of three...
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
Substance dependence
The section about substance dependence in the Diagnostic and Statistical Manual of Mental Disorders does not use the word addiction at all. It explains:...
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). http://hythiam.com/CompletedStudies.htm In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ),http://www.healthplanofnevada.com/ joining Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
and the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving."
Terren S. Peizer, chronicled by the LA Times as a financial prodigyhttp://articles.latimes.com/1994-07-31/business/fi-22082_1_high-rollers,sometimes called the "Zelig of Wall Street"http://www.nytimes.com/1998/02/17/business/market-place-no-sales-but-watch-the-stock-soar.html is currently the Chairman of a Los Angeles-based investment company, Socius Capital Group (SCG). Since its inception in June 2009 to December 2010, SCG has provided companies with capital commitments and funding in excess of $400 million. Most recently Peizer’s Socius Capital Group invested $15 millionhttp://www.stockhouse.com/News/CanadianReleasesDetail.aspx?n=8115308 into Poynt Corporation a global leader in the mobile local advertising space.
Raised in Beachwood, Ohio
Beachwood, Ohio
-External links:* *...
, a suburb of Cleveland, Peizer has assisted companies by assembling management teams, Boards of Directors and Scientific Advisory Boards, formulating business and financial strategies, and investor relations; all towards the purpose of creating shareholder value
Shareholder value
Shareholder value is a business term, sometimes phrased as shareholder value maximization or as the shareholder value model, which implies that the ultimate measure of a company's success is the extent to which it enriches shareholders...
. Mr. Peizer has a background in venture capital, investing, Mergers and Acquisitions, corporate finance, and previously held senior executive positions with the top investment banking firms Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
, First Boston
First Boston
First Boston Corporation was a New York-based, bulge bracket, investment bank, founded in 1932 and acquired by Credit Suisse in 1990. Together with its sister investment banks, it was referred to as CS First Boston after 1993 and part of Credit Suisse First Boston after 1996, the First Boston part...
and Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Mr. Peizer received his B.S.E. in Finance from The Wharton Business School of the University of Pennsylvania
Wharton School of the University of Pennsylvania
The Wharton School is the business school of the University of Pennsylvania, an Ivy League university in Philadelphia, Pennsylvania. Wharton was the world’s first collegiate business school and the first business school in the United States...
.
Mr. Peizer has been called "One of Wall Street’s top players"Taub, Stephen. “From Rats to Riches.” Financial World, Apr 26, 1994. and has frequently noted the importance of his Midwestern family values in various interviews. Peizer has exhibited a humble and modest lifestyle consistent with his Midwestern upbringing.Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
Investment career
Mr. Terren Peizer is a graduate of the Wharton Business School at the University of Pennsylvania. In 1980 and at just the young age of 20 years old, Mr. Peizer was recruited by former Treasury Secretary Robert RubinRobert Rubin
Robert Edward Rubin served as the 70th United States Secretary of the Treasury during both the first and second Clinton administrations. Before his government service, he spent 26 years at Goldman Sachs eventually serving as a member of the Board, and Co-Chairman from 1990-1992...
of Goldman Sachs. He was believed to be the youngest “Associate” during that era. In 1983, he was recruited by First Boston and quickly established himself as the most profitable High-Yield Bond Trader. He was often referred to as the "Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
of the East Coast"publication "Wall Street Weekly" March, 1985 because in his workaholic manner, he provided Drexel-Burnham-Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
clients with an alternative to the Milken-controlled, High-Yield Bond market. During his association with First Boston Mr. Peizer capitalized a little known Reverse Merged company, Danaher, Inc
Danaher Corporation
The Danaher Corporation , is a large global company headquartered in Washington, D.C., United States. Its products are concentrated in the fields of design, manufacture, and marketing of industrial and consumer products....
. Today, Danaher, Inc. is one of America's largest industrial companies. Mr. Peizer's most notable work while at First Boston, came when he and his clients led the restructuring and financing of Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
insolvent Turner Broadcasting Corporation. Mr. Peizer capitalized Turner Broadcasting Corp's CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
and WTBS Super Station with $185 Million; thereby, saving the Turner Broadcasting Corporation from bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
.
In the spring of 1985, in an effort to remove the competition from the marketplace, Michael Milken
Michael Milken
Michael Robert Milken is an American business magnate, financier, and philanthropist noted for his role in the development of the market for high-yield bonds during the 1970s and 1980s, for his 1990 guilty plea to felony charges for violating US securities laws, and for his funding of medical...
partnered with the young Mr. Peizer, and made him Senior Vice President of Drexel Burnham Lambert
Drexel Burnham Lambert
Drexel Burnham Lambert was a major Wall Street investment banking firm, which first rose to prominence and then was forced into bankruptcy in February 1990 by its involvement in illegal activities in the junk bond market, driven by Drexel employee Michael Milken. At its height, it was the...
. Michael Milken immediately anointed Mr. Peizer as his "Protégé and Left-Hand Man."Forbes, September 6, 1999 " War of the Milkenites" page 54-54 by: Seth Lubove Because Mr. Peizer and Michael Milken shared clients, desk and phone,1996-Griffin, Nancy and Masters, Kim. "Hit & Run": it was not long before Mr. Peizer assumed responsibilities for all of Milken's direct client relationships. This made young Peizer the most productive executive on the famous X-Shaped High-Yield Bond desk. Mr. Peizer’s reputation as Milken's top sharp-elbowed tradershttp://www.forbes.com/forbes/1999/0906/6405054a_print.html would provide the foundation to his investment career.
In the midst of Drexel's liquidation
Liquidation
In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...
that occurred in 1990, Mr. Peizer was laid off with 5,300 other Drexel employees. Peizer utilized his risk-taking entrepreneurialship and purchased the Omaha Racers, a minor league basketball team. Under his ownership, the Racers won the CBA Championship. At this point, Mr. Peizer opportunistically sold the team and sought other financial ventures.
Mr. Peizer then started his investment company, Beachwood Financial and Wendover Financial Corporation, named after his hometown and home street, stating “never forget where you came from.”Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. He later teamed up with Neil Cole
Neil Cole
Neil Cole is an English television presenter, comedian, radio broadcaster and actor.-Early life:Cole was born in Bristol in 1972, and attended King Edward Grammar School in Chelmsford...
to capitalize the company “Candies”Rigg, Cynthia. "Neil Cole eyes '70s classic to buoy troubled shoe firm." Crain's New York Business, 1992. which is the predecessor to today's multi-billion dollar Iconix Brand Group
Iconix Brand Group
Iconix Brand Group is a brand management company that licenses brands to retailers and manufacturers primarily in the apparel, footwear, and apparel accessory industries. Its brands are available in such stores as Kohl's, Kmart, Sears, Macy's, Target and JC Penney.The company began as Candie's,...
. During Mr. Peizer's early investment career, his function for many of these smaller and developmental-stage companies was once described as "lender of almost last resort."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994. Mr. Peizer's investment savvy empowered him to obtain favorable deals with these companies still in their early developmental stages.
From 1999 through 2002, Mr. Peizer was Chairman of the Board of Cray, Inc., a NASDAQ Global Market
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
company and the Super Computer industry’s leading designer and builder.Alexander, Steve. “Struggling Firm Buys Struggling Cray Research. Silicon Graphics Sells Company to Seattle-based Tera Computer.” Star-Tribune, Mar 3, 2000. He still remains its largest beneficial stockholder.
In August 2006, Mr. Peizer founded and served as Chairman of the Board of Xcorporeal, Inc., and a developer of Wearable Artificial Kidneys. For a substantial multi-million dollar upfront payment and ongoing licensing royalties, he licensed most of the company’s intellectual property to the Dialysis
Dialysis
In medicine, dialysis is a process for removing waste and excess water from the blood, and is primarily used to provide an artificial replacement for lost kidney function in people with renal failure...
Industry's dominant services provider Fresenius Medical Care
Fresenius Medical Care
Fresenius Medical Care is a German company specializing in the production of medical supplies, primarily to facilitate or aid renal dialysis. It is 36%-owned by the health care company Fresenius. The company was formed in 1996 from the merger of Fresenius Worldwide Dialysis, then a division of...
.Forbes Profile Many of these companies, including Xcorporeal, Hythiam and Cray became public companies during Mr. Peizer's tenure.
Mr. Peizer's investment philosophy was taking shape in these early years, which, according to him, was to "Invest in situations where you tip the playing field in your favor and Invest in companies with low market caps but with the ability to change the way its industry does things."Taub, Stephen. “From rats to riches.” Financial World, Apr 26, 1994 Peizer applied his financial acumen and structuring expertise to minimize his investment at risk, but allow for exponential returns. This philosophy has served Peizer well and has led to his founding of Cray, Xcorporeal and Hythiam. Mr. Peizer has often stated his hopes that the two medical companies will change the Addiction Treatment and Kidney Dialysis industries, respectively.
Major Deals and Financial Transactions
Although there have been no recent attempts to estimate Peizer's wealth, the Los Angeles TimesLos Angeles Times
The Los Angeles Times is a daily newspaper published in Los Angeles, California, since 1881. It was the second-largest metropolitan newspaper in circulation in the United States in 2008 and the fourth most widely distributed newspaper in the country....
confirmed his net worth at $50 million back in 1994. While discussing the unusual step of Peizer investing his own personal net worth in some investment deals, the paper stated that he "avoids the usual accoutrements of wealth, such as big houses and expensive cars. In an article written in 1990’s, a reporter also noted that "Peizer still lives in the condo he bought nine years ago, when he came West to sit at Milken's left hand."Lee, Patrick. “In the shadow of the '80s.” Los Angeles Times, Jul 31, 1994
However, despite his modest surroundings, Peizer has been involved in some of the top U.S. financial transactions. For instance, while at Drexel, Peizer was involved in financing some of the largest multi-billion dollar corporate takeovers of the 1980s, including Ted Turner's
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
purchase of MGM/UA Entertainment Co., and the buyout of Beatrice foods
Beatrice Foods
Beatrice Foods Company was a major American food processing company. In 1987, its smaller international food operations were sold to Reginald Lewis, a corporate attorney creating TLC Beatrice International, after which the majority of its domestic brands and assets were acquired by Kohlberg,...
, Storer Cable, and RJR Nabisco
RJR Nabisco
RJR Nabisco, Inc., was an American conglomerate formed in 1985 by the merger of Nabisco Brands and R.J. Reynolds Tobacco Company. RJR Nabisco was purchased in 1988 by Kohlberg Kravis Roberts & Co...
. Peizer and his clients also led the financings of America's most innovative and pioneering companies. This is best exemplified by the capitalizing of McCaw Cellular, the nation's first national cell phone carrier, which later became AT&T Cellular. Peizer and his clients also led financings for such known Industrialists as: Ron Perlman
Ron Perlman
Ronald N. "Ron" Perlman is an American television, film and voice over actor. He is known for having played Vincent in the TV series Beauty and the Beast , a Deathstroke figure known as Slade in the animated series Teen Titans, Clarence "Clay" Morrow in Sons of Anarchy, the comic book character...
, John Malone, Carl Icahn
Carl Icahn
Carl Celian Icahn is an American business magnate and investor.-Biography:Icahn was raised in Far Rockaway, Queens, New York City, where he attended Far Rockaway High School. His father was a cantor, his mother was a schoolteacher...
, Ted Turner
Ted Turner
Robert Edward "Ted" Turner III is an American media mogul and philanthropist. As a businessman, he is known as founder of the cable news network CNN, the first dedicated 24-hour cable news channel. In addition, he founded WTBS, which pioneered the superstation concept in cable television...
, Nelson Peltz
Nelson Peltz
Nelson Peltz is an American businessman. He is a board director of Wendy's Group, the franchise parent of T.J. Cinnamons, Pasta Connection and Wendy's. Peltz is the former owner of Snapple.- Background :...
and Rupert Murdoch
Rupert Murdoch
Keith Rupert Murdoch, AC, KSG is an Australian-American business magnate. He is the founder and Chairman and CEO of , the world's second-largest media conglomerate....
. Peizer and his clients also financed many of the early buyouts of LBO pioneers KKR, Blackstone Group
Blackstone Group
The Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
and The Carlyle Group.
On the heels of the Turner/MGM/UA deal, Peizer became a magnet for entertainment deals and financings. One such deal, chronicled in the book "Hit and Run,"Google Books, Hit&Run married Peter Gruber and John Peter's
John Peters
John Peters is an American International Master of chess. He is the chess columnist for the Los Angeles Times.As of May 2011, his FIDE rating is 2370.-External links:*...
, Guber Peter's & Co. with Burt Surgarman's Barris Industries. Motivated by Barris' $100 Million cash hoard, Peizer merged the two companies, which was then parlayed into Sony Pictures.Griffin, Nancy and Masters, Kim. Hit & Run: How Jon Peters and Peter Gruber Took SONY for a Ride in Hollywood. Simon & Schuster. 1996.
In 1999, Peizer surprised the financial markets when he successfully outbid Billionaire Alec Gores Technology Group
Alec Gores
Alec E. Gores is an American businessman who made his fortune through leveraged buyouts of technology firms. His personal wealth was estimated at roughly $1.5 billion by Forbes magazine in 2008.-Early life and education:...
in a takeover bid for Cray Research (now Cray, Inc.) by the much smaller Peizer-controlled, Tera Computer Co. Tera issued cash, stock and notes to purchase the once-struggling supercomputer company from Silicon Graphics
Silicon Graphics
Silicon Graphics, Inc. was a manufacturer of high-performance computing solutions, including computer hardware and software, founded in 1981 by Jim Clark...
. Over the years, Cray has developed many of the supercomputers used by the U.S. Defense and Intelligence communities, pharmaceutical, aerospace, oil drilling and weather and seismic industries. Within 2 years of Peizer's acquisition, Cray's market capitalization grew from $25 million to $1.3 Billion. While building these companies, Peizer became integral and developed such an investor following, that his departure would have a profound effect on these companies. When he stepped down from one such company, the stock took a downward turn when a press release in 1999 "announced his "resignation", claiming that his "objectives have been achieved." The stock dropped 16% on the day of the announcement. The stock has drifted further south to $13.50, off 47% from its 52-week high, from Peizer's resignation."Lubove, Seth. "Small world, ain't it?" Forbes, Sept 6, 1999
Drexel Burnham Lambert
Peizer is occasionally also known for his role, then only 28 years old, in cooperating "along with other Drexel employees and clients" as a witness in the government's case against Michael Milken and Drexel Burnham Lambert, Inc. in the federal crackdown on insider trading in the mid to late 1980s; which eventually led to guilty pleas from financier Michael Milken and Drexel. The case was prosecuted by Rudolph Giuliani while he was the U.S. Attorney in New York. Peizer himself was never involved in any Securities and Exchange Commission infractions, nor a subject or a target for any criminal prosecution; Peizer was merely a witness, amongst other Drexel employees and clients. In court transcripts, Judge Kimba Wood applauded Peizer for his sincerity, honesty, and integrity.see public record " Court Transcripts " Milken vs US 1991Hythiam and Prometa
Peizer founded the PrometaPrometa
Prometa is a controversial treatment protocol used primarily for methamphetamine addiction, although it has also been claimed to be effective for dependence on alcohol or cocaine. The treatment, based on the research of Spanish psychologist Juan Jose Legarda, involves a combination of three...
Treatment Program in 2003 and launched Hythiam, Inc. in 2004. Peizer capitalized the company with in excess of $170 Million. The Prometa program, which cost consumers $15,000 for a three-part infusion, uses a combination of three FDA approved medications, none of which had ever been used to treat substance dependence
Substance dependence
The section about substance dependence in the Diagnostic and Statistical Manual of Mental Disorders does not use the word addiction at all. It explains:...
. Peizer was successful in getting Hythiam listed on the NASDAQ Global Market Exchange, using a technique Peizer has utilized many times before, and has become Wall Street's leader in, the Reverse Merger or Reverse Public Offering (RPO). http://hythiam.com/CompletedStudies.htm In July 2010, Hythiam and Peizer gained its first heath plan customer (Health Plan of Nevada, Inc. ),http://www.healthplanofnevada.com/ joining Ford Motor Company
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
and the United Auto Workers
United Auto Workers
The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, better known as the United Auto Workers , is a labor union which represents workers in the United States and Puerto Rico, and formerly in Canada. Founded as part of the Congress of Industrial...
in its adoption of Hythiam's Catasys Integrated Substance Dependence Solution. Peizer still envisions Hythiam's treatment methodology being deployed throughout the nation.
A November, 2011, double-blind, placebo-controlled study published in the journal Addiction concluded that the drug is ineffective. "The PROMETA protocol, consisting of flumazenil, gabapentin and hydroxyzine, appears to be no more effective than placebo in reducing methamphetamine use, retaining patients in treatment or reducing methamphetamine craving." http://www.addictionjournal.org/viewpressrelease.asp?pr=162
Hythiam’s success has not come without criticism. Hythiam gained some notice for its 2006 ad campaign licensing deceased comedian Chris Farley’s image with the slogan, "It wasn't all his fault" (alluding to his death from a drug overdose).Farley’s photo to be used on drug treatment ads: Family gives approval to use image of star who died of overdose". Associated Press. April 1, 2006. This advertisement campaign garnered national attention, as Peizer became a fixture on the American news circuit, regularly appearing on national news syndicates such as Fox News, CNN
CNN
Cable News Network is a U.S. cable news channel founded in 1980 by Ted Turner. Upon its launch, CNN was the first channel to provide 24-hour television news coverage, and the first all-news television channel in the United States...
, Good Morning America
Good Morning America
Good Morning America is an American morning news and talk show that is broadcast on the ABC television network; it debuted on November 3, 1975. The weekday program airs for two hours; a third hour aired between 2007 and 2008 exclusively on ABC News Now...
, The Today Show
The Today Show
Today is an iconic American morning news and talk show airing every morning on NBC. Debuting on January 14, 1952, it was the first of its genre on American television and in the world. The show is also the fourth-longest running American television series...
, and CNBC's Squawk Box and Mad Money. Despite questions about its tastefulness, and criticism from addiction treatment providers for advertising direct to consumers, Peizer defended the campaign as "creating awareness" about addiction as a medical disease, not a social and psychological personality disorder.
Other critics focused on the company's emphasis on sales over research that would establish the validity of Prometa
Prometa
Prometa is a controversial treatment protocol used primarily for methamphetamine addiction, although it has also been claimed to be effective for dependence on alcohol or cocaine. The treatment, based on the research of Spanish psychologist Juan Jose Legarda, involves a combination of three...
, especially since the FDA restricts marketing of drugs to the purpose for which they have been approved. Peizer justified the company's approach in a 60 Minutes episode"Prescription For Addiction". 60 Minutes (CBS News). December 9, 2007. as providing information about the treatment protocol to physicians, since Hythiam does not market the medications directly to consumers. The physicians in the practice of medicine then prescribe the medications to the patients in need.The FDA allows physicians to prescribe all FDA approved medications off label in the practice of medicine. Addiction experts marveled that Peizer was exploiting a nuance and "loophole" that no one ever dared before him.