Dermot Desmond
Encyclopedia
Dermot Desmond is an Irish businessman and financier
. He is estimated to be worth €1.45billion and is ranked by the Sunday Independent
as the sixth-richest person in Ireland.
, Co. Cork in 1950 and grew up in Marino
, Co. Dublin. He was educated at Scoil Mhuire
, Marino and Good Counsel College
in New Ross
. Upon leaving school in 1968, he took a junior position
with Citibank
in Dublin. He then took a job with Pricewaterhouse coopers in Kabul
, Afghanistan
.In 1981, he founded the Irish stockbroking company National City Brokers
(NCB). He was appointed chairman of the board of Aer Rianta in 1990 under the Haughey government, but resigned in October 1991 amid the scandal over the puchase of the Johnston Mooney & O'Brien site by Telecom Eireann.
In August 2008, Desmond was offered the position of Chairman of the Irish airline Aer Lingus
. Desmond turned down the offer citing prior commitments as a factor which would not allow him the sufficient time necessary to do the job. Former GPA Chief Operating Officer and current Babcock & Brown Air Chief Executive Colm Barrington was subsequently named Chairman of Aer Lingus.
in Dublin. The company competed with already established stockbroking names in Dublin such as Davy's and Goodbodys. Desmond sold the company to Ulster Bank
in 1994, which at the time was part of the National Westminster Group, for a reported £39 Million. Subsequently as a result of Natwest's takeoever in 2003 by RBS, NCB was bought out by its management with the support of Billionaire businessman Sean Quinn who is believed to now control 25% of the company.
In 1997, together with business partners John Magnier
and J.P. McManus, Desmond purchased the luxurious 5 star Barbados resort Sandy Lane Hotel. The Hotel underwent a $450 Million USD renovation and was re-opened in 2001.
In 1996 Desmond backed a consortium headed by Fran Rooney
to purchase Baltimore Technologies
for £300,000. The company quickly purchased an E - Commerce license from the EU and it experienced rapid growth over the following years. It was briefly a member of the FTSE 100
and had a market Capitalization of £4.5 Billion. The company though fell victim to the dotcom bust and all but collapsed.
Desmond purchased London City Airport
from Mowlem
for £23.5m in 1995. The investment was considered a large risk as London's Docklands was in recession
and the neighbouring Canary Wharf
development was in receivership
. The airport has since become one of the more profitable in the United Kingdom. Desmond sold London City Airport in October 2006 for a reported £750 million to a consortium consisting of insurer AIG
, GE Capital
and Credit Suisse
.
BETDAQ is the trading name of Global Betting Exchange, a betting exchange operator based in Ireland. It is the second largest betting exchange operator in the market, with Betfair being the largest. The company was founded in 2000 by Dermot Desmond and started trading in September 2001. Its headquarters are located in the International Financial Services Centre in Dublin.
Desmond was a major shareholder in Irish food company Greencore
for a number of years. He sold his shares in 2006.
In 2005 Desmond opened the Sporting Emporium, a Dublin-based private members gaming club. It was reported Desmond had invested €5.5 Million of his own money in the venture. After being open for only seven months it faced closure.
Desmond purchased 33.1% of Latvian Rietumu Banka
in 2005 for a reported €66 Million. He invested in the bank as a result of being very impressed with its management team and capital structure. The investment in Rietumu initially looked a successful one with Desmonds holding at one stage being valued at €200 million. However the subsequent economic downturn has reduced the value of Desmonds holding in the bank significantly.
Desmond owns a stake in Toronto mining company Mountain Province Diamonds that is valued at £25 million. The Company's sole asset is the Canadian Gahcho Kue Diamond Mine Project
.
module of the Flood Tribunal. He said he had given former Fianna Fail press secretary PJ Mara a loan of £46,000 between 1986 and 1989, as Mr Mara had run into financial difficulties. He said he made the payments by cheque.
. In 1994 Mr Desmond made a payment of £100,000.00 sterling to Mr Haughey and in 1996 he made a payment of £25,000 sterling. While Mr Desmond claims these payments to be loans, repayable by Mr Haughey, the Tribunal did not accept this explanation. Ultimately Mr Haughey was forced to settle with the Revenue Commissioners, as it appears he had failed to declare the payments from Mr Desmond. The Tribunal noted that the payments were made via the Swiss bank account of a company called Anesia Etablissement, of which Mr Desmond was the beneficial owner, via an account at Henry Ansbacher & Company to
an account at Cayman International Bank Trust Company, held for Mr Haughey's benefit.
Mr Haughey's son Conor told the Tribunal in 1999 that he had learned money to refurbish the yacht had come from the bank account of Freezone Limited. Money from the sale of the Johnston Mooney & O'Brien site had ended up in the same account - a revelation that Conor Haughey said he was "very concerned" about.
The yacht was subsequently given to the Irish Whale and Dolphin Group by the family of Mr Haughey and now operates as a maritime research vessel
football club Celtic FC.
Desmond previously held a stake in Manchester United. He sold out to Malcolm Glazer
in 2005.
Financier
Financier is a term for a person who handles typically large sums of money, usually involving money lending, financing projects, large-scale investing, or large-scale money management. The term is French, and derives from finance or payment...
. He is estimated to be worth €1.45billion and is ranked by the Sunday Independent
Sunday Independent
The Sunday Independent is a broadsheet Sunday newspaper published in Ireland by Independent News and Media plc. The newspaper is edited by Aengus Fanning, and is the biggest selling Irish Sunday newspaper by a large margin ; average circulation of 291,323 between June 2004 and January 2005,...
as the sixth-richest person in Ireland.
Background and education
Desmond was born in MacroomMacroom
Macroom is a market town in Ireland located in a valley on the River Sullane, a tributary of the River Lee, between Cork and Killarney. It is one of the key gateways to the tourist region of West Cork. The town recorded a population on 3,553 in the 2006 national census...
, Co. Cork in 1950 and grew up in Marino
Marino
Marino, Mariño or Maryino may refer to:In places:* Marino, Lazio, a town in the province of Rome, Italy* Marino, South Australia, a suburb of Adelaide* Marino, County Down in Northern Ireland...
, Co. Dublin. He was educated at Scoil Mhuire
Scoil Mhuire
The Sisters of Mercy, Scoil Mhuire, came to Longford from Mother House in Baggot Street, Dublin in April 1861. They first lived in Keon’s Terrace and taught young children in the ground floor room of the old St. Micheal’s Boys’ School. Older girls who wanted to continue their education did so in...
, Marino and Good Counsel College
St Augustine's and Good Counsel College, New Ross
St Augustine's and Good Counsel College,' New Ross, known exclusively as "Good Counsel College" or 'The Counsel' by its students and residents of the local area, is an all-boys secondary school in Ireland which caters for over 850 students. It was founded and is now conducted by the Irish...
in New Ross
New Ross
New Ross is a town located in southwest County Wexford, in the southeast of Ireland. In 2006 it had a population of 7,709 people, making it the third largest town in the county after Wexford and Enniscorthy.-History:...
. Upon leaving school in 1968, he took a junior position
with Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
in Dublin. He then took a job with Pricewaterhouse coopers in Kabul
Kabul
Kabul , spelt Caubul in some classic literatures, is the capital and largest city of Afghanistan. It is also the capital of the Kabul Province, located in the eastern section of Afghanistan...
, Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...
.In 1981, he founded the Irish stockbroking company National City Brokers
National City Brokers
NCB Group is an investment bank based in Dublin, Ireland. Founded by Dermot Desmond, NCB firmly established its reputation by sponsoring a yacht NCB Ireland in the 1989 Whitbread Round-the-world yacht race, now the Volvo Ocean Race...
(NCB). He was appointed chairman of the board of Aer Rianta in 1990 under the Haughey government, but resigned in October 1991 amid the scandal over the puchase of the Johnston Mooney & O'Brien site by Telecom Eireann.
International Investment & Underwriting (IIU)
International Investment & Underwriting (IIU) was founded in 1995 by Dermot Desmond. It is a private equity firm and the primary investment vehicle for Desmond. It is located in Ireland's International Financial Services Centre (IFSC) and is regulated by the Irish Financial Services Regulatory Authority. Companies that are controlled through IIU include BETDAQ (an international betting exchange) and DAON (a biometric enabling technology company). IIU Asset Strategies Limited is the hedge fund arm of the company, offering convertible bonds and equity funds.In August 2008, Desmond was offered the position of Chairman of the Irish airline Aer Lingus
Aer Lingus
Aer Lingus Group Plc is the flag carrier of Ireland. It operates a fleet of Airbus aircraft serving Europe and North America. It is Ireland's oldest extant airline, and its second largest after low-cost rival Ryanair...
. Desmond turned down the offer citing prior commitments as a factor which would not allow him the sufficient time necessary to do the job. Former GPA Chief Operating Officer and current Babcock & Brown Air Chief Executive Colm Barrington was subsequently named Chairman of Aer Lingus.
Business career
In 1981 Dermot Desmond founded National City BrokersNational City Brokers
NCB Group is an investment bank based in Dublin, Ireland. Founded by Dermot Desmond, NCB firmly established its reputation by sponsoring a yacht NCB Ireland in the 1989 Whitbread Round-the-world yacht race, now the Volvo Ocean Race...
in Dublin. The company competed with already established stockbroking names in Dublin such as Davy's and Goodbodys. Desmond sold the company to Ulster Bank
Ulster Bank
Ulster Bank is a large commercial bank, one of the Big Four in both Northern Ireland and the Republic of Ireland. The Ulster Bank Group is subdivided into two separate legal entities, Ulster Bank Limited and Ulster Bank Ireland Limited...
in 1994, which at the time was part of the National Westminster Group, for a reported £39 Million. Subsequently as a result of Natwest's takeoever in 2003 by RBS, NCB was bought out by its management with the support of Billionaire businessman Sean Quinn who is believed to now control 25% of the company.
In 1997, together with business partners John Magnier
John Magnier
John Magnier is Ireland's leading thoroughbred stud owner and has extensive business interests outside of the horse breeding industry....
and J.P. McManus, Desmond purchased the luxurious 5 star Barbados resort Sandy Lane Hotel. The Hotel underwent a $450 Million USD renovation and was re-opened in 2001.
In 1996 Desmond backed a consortium headed by Fran Rooney
Fran Rooney
Fran Rooney is an Irish businessmen and Barrister.The President of Ireland, Mary McAleese, presented Mr. Rooney with the Businessman of the Year award in 2000 . He was Bank of Ireland Entrepreneur of the Year in 2001...
to purchase Baltimore Technologies
Baltimore Technologies
Baltimore Technologies was a leading Irish internet security firm, with its headquarters in Dublin Ireland. It was listed on the London Stock Exchange and was briefly part of the FTSE 100 Index during 2000.-History:...
for £300,000. The company quickly purchased an E - Commerce license from the EU and it experienced rapid growth over the following years. It was briefly a member of the FTSE 100
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
and had a market Capitalization of £4.5 Billion. The company though fell victim to the dotcom bust and all but collapsed.
Desmond purchased London City Airport
London City Airport
London City Airport is a single-runway airport. It principally serves the financial district of London and is located on a former Docklands site, east of the City of London, opposite the London Regatta Centre, in the London Borough of Newham in east London. It was developed by the engineering...
from Mowlem
Mowlem
Mowlem was one of the largest construction and civil engineering companies in the United Kingdom. Carillion bought the firm in 2006.-History:Founded by John Mowlem in 1822, the company was awarded a Royal Warrant in 1902 and went public on the London Stock Exchange in 1924. It acquired SGB Group in...
for £23.5m in 1995. The investment was considered a large risk as London's Docklands was in recession
Recession
In economics, a recession is a business cycle contraction, a general slowdown in economic activity. During recessions, many macroeconomic indicators vary in a similar way...
and the neighbouring Canary Wharf
Canary Wharf
Canary Wharf is a major business district located in London, United Kingdom. It is one of London's two main financial centres, alongside the traditional City of London, and contains many of the UK's tallest buildings, including the second-tallest , One Canada Square...
development was in receivership
Receivership
In law, receivership is the situation in which an institution or enterprise is being held by a receiver, a person "placed in the custodial responsibility for the property of others, including tangible and intangible assets and rights." The receivership remedy is an equitable remedy that emerged in...
. The airport has since become one of the more profitable in the United Kingdom. Desmond sold London City Airport in October 2006 for a reported £750 million to a consortium consisting of insurer AIG
AIG
AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran...
, GE Capital
GE Capital
GE Capital is the financial services unit of General Electric, one of five major units. Its various divisions include GE Capital Aviation Services, GE Capital Real Estate, GE Energy Financial Services and GE Money....
and Credit Suisse
Credit Suisse
The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
.
BETDAQ is the trading name of Global Betting Exchange, a betting exchange operator based in Ireland. It is the second largest betting exchange operator in the market, with Betfair being the largest. The company was founded in 2000 by Dermot Desmond and started trading in September 2001. Its headquarters are located in the International Financial Services Centre in Dublin.
Desmond was a major shareholder in Irish food company Greencore
Greencore
Greencore Group plc is a food company in Ireland.It was established by the Irish Government in 1991 to take over Irish Sugar, the nationalised sugar production company. 55% of the group was listed on the Irish Stock Exchange that year, over the years additional placements have led to almost 100%...
for a number of years. He sold his shares in 2006.
In 2005 Desmond opened the Sporting Emporium, a Dublin-based private members gaming club. It was reported Desmond had invested €5.5 Million of his own money in the venture. After being open for only seven months it faced closure.
Desmond purchased 33.1% of Latvian Rietumu Banka
Rietumu Banka
Rietumu Banka - JSC Rietumu Banka is a Latvian commercial bank that was established in 1992. It is one of the largest private banks in the Baltic States, specialising in corporate banking and affluent individuals...
in 2005 for a reported €66 Million. He invested in the bank as a result of being very impressed with its management team and capital structure. The investment in Rietumu initially looked a successful one with Desmonds holding at one stage being valued at €200 million. However the subsequent economic downturn has reduced the value of Desmonds holding in the bank significantly.
Desmond owns a stake in Toronto mining company Mountain Province Diamonds that is valued at £25 million. The Company's sole asset is the Canadian Gahcho Kue Diamond Mine Project
Gahcho Kue Diamond Mine Project
The Gahcho Kué Diamond Project is located on the Canadian tundra in the Northwest Territories. It is situated at Kennady Lake , in the Akaitcho Treaty 8 Territory AK claim block, which is southeast of the Snap Lake Diamond Mine Project and approximately east northeast of Yellowknife...
.
Glackin report
In 1991, a company law inspector, solicitor John Glackin, was appointed by the then Government to investigate complicated dealings involving Mr Desmond and the purchase and sale of the former Johnston Mooney and O’Brien site in Ballsbridge, Dublin. While Mr Desmond represented himself as an intermediary in the sale, Glackin’s report said Mr Desmond and businessman JP McManus were the major beneficiaries of the sale. Mr Desmond strenuously disputed Glackin’s findings.Flood Tribunal
Mr Desmond gave evidence relating to the Century RadioCentury Radio
Century Radio, also marketed as Century 100 and later Century FM, was an early short-lived national commercial radio station in Ireland .-Transmission:...
module of the Flood Tribunal. He said he had given former Fianna Fail press secretary PJ Mara a loan of £46,000 between 1986 and 1989, as Mr Mara had run into financial difficulties. He said he made the payments by cheque.
Moriarty Tribunal
The Moriarty Tribunal found that Mr Desmond made substantial payments to Taoiseach Charles HaugheyCharles Haughey
Charles James "Charlie" Haughey was Taoiseach of Ireland, serving three terms in office . He was also the fourth leader of Fianna Fáil...
. In 1994 Mr Desmond made a payment of £100,000.00 sterling to Mr Haughey and in 1996 he made a payment of £25,000 sterling. While Mr Desmond claims these payments to be loans, repayable by Mr Haughey, the Tribunal did not accept this explanation. Ultimately Mr Haughey was forced to settle with the Revenue Commissioners, as it appears he had failed to declare the payments from Mr Desmond. The Tribunal noted that the payments were made via the Swiss bank account of a company called Anesia Etablissement, of which Mr Desmond was the beneficial owner, via an account at Henry Ansbacher & Company to
an account at Cayman International Bank Trust Company, held for Mr Haughey's benefit.
Celtic Mist
Mr Desmond also paid £75,456 for the refurbishment of Mr Haughey's yacht, the Celtic Mist, between 1990 and 1991, at a time according to the Tribunal, that Mr Haughey earned between £69,764 and £72,354 a year as Taoiseach. Mr Desmond again claimed this payment was a loan, but the Tribunal disagreed, noting again that Mr Haughey had settled with the Revenue Commissioners in relation to the sum, having failed to pay Capital Gains Tax at the time. The Tribunal also found that the yacht itself amounted to an indirect benefit to Mr Haughey. This was it despite being unable to find the source of the £167,073.90 paid for the yacht.Mr Haughey's son Conor told the Tribunal in 1999 that he had learned money to refurbish the yacht had come from the bank account of Freezone Limited. Money from the sale of the Johnston Mooney & O'Brien site had ended up in the same account - a revelation that Conor Haughey said he was "very concerned" about.
The yacht was subsequently given to the Irish Whale and Dolphin Group by the family of Mr Haughey and now operates as a maritime research vessel
Esat Digifone
Mr Desmond was an investor in Esat Digifone through his International Investment Underwriters (IIU) vehicle, ultimately owning 20% of the company.Football
Desmond is the majority shareholder of Scottish Premier LeagueScottish Premier League
The Scottish Premier League , also known as the SPL , is a professional league competition for association football clubs in Scotland...
football club Celtic FC.
Desmond previously held a stake in Manchester United. He sold out to Malcolm Glazer
Malcolm Glazer
Malcolm Irving Glazer is an American businessman and sports team owner. He is the president and chief executive officer of First Allied Corporation, a holding company for his varied business interests, most notably in the food processing industry...
in 2005.
Business
Desmond's past and present business interests and investment holdings include;- Anesia Etablissement
- Baltimore TechnologiesBaltimore TechnologiesBaltimore Technologies was a leading Irish internet security firm, with its headquarters in Dublin Ireland. It was listed on the London Stock Exchange and was briefly part of the FTSE 100 Index during 2000.-History:...
- Bank of IrelandBank of IrelandThe Bank of Ireland is a commercial bank operation in Ireland, which is one of the 'Big Four' in both parts of the island.Historically the premier banking organisation in Ireland, the Bank occupies a unique position in Irish banking history...
- Barchester HealthcareBarchester HealthcareBarchester Healthcare Ltd is a UK-wide care provider supporting more than 10,000 people at more than 200 locations.Barchester Healthcare was founded in 1993 by entrepreneur and current CEO, Mike Parsons...
- BETDAQBETDAQBETDAQ is the trading name of Global Betting Exchange, a betting exchange operator based in Ireland. It is the second largest betting exchange operator in the market, with Betfair being the largest....
betting exchangeBetting exchangeA betting exchange is an entity which provides "trading" facilities for retail or bookmaker customers to buy and sell contracts. Contracts are structured as binary options. Some betting exchanges may also offer CFD products... - Bottin (International) Investments Ltd. (2004)
- Castlebeck Group
- Celtic FC
- Daon, Inc.Daon, Inc.Daon is an international biometrics and identity assurance software company founded in 1999 by Irish entrepreneur Dermot Desmond. The name, Daon, was chosen because it stems from the Celtic word for human being, duine daonna....
http://daon.com/ - Datalex
- Freezone Investments Ltd. (Isle of Man based investment company)
- GIS software house eSpatial
- GreencoreGreencoreGreencore Group plc is a food company in Ireland.It was established by the Irish Government in 1991 to take over Irish Sugar, the nationalised sugar production company. 55% of the group was listed on the Irish Stock Exchange that year, over the years additional placements have led to almost 100%...
- International Investment Underwriters (IIU)
- Intuition Publishing Ltd. (eLearning Company)
- London City AirportLondon City AirportLondon City Airport is a single-runway airport. It principally serves the financial district of London and is located on a former Docklands site, east of the City of London, opposite the London Regatta Centre, in the London Borough of Newham in east London. It was developed by the engineering...
- LydianLydianLydian may refer to:* Lydian language, an ancient Anatolian language* Lydian script* Lydian mode, one of the modes derived from ancient Greek music* Lydian , a decorative typeface* Lydia, an ancient kingdom in western Anatolia...
- MHC Mental Health Care
- Newfoundland & Labrador Refining Ltd. http://nlrefining.com/
- Neovia http://www.ft.com/cms/s/0/e37be320-c593-11dd-b516-000077b07658.html (2008)
- Prematur http://www.ft.com/cms/s/0/e37be320-c593-11dd-b516-000077b07658.html (2008)
- RemoteMDx
- Rietumu BankaRietumu BankaRietumu Banka - JSC Rietumu Banka is a Latvian commercial bank that was established in 1992. It is one of the largest private banks in the Baltic States, specialising in corporate banking and affluent individuals...
- Sandy Lane HotelSandy Lane (resort)The Sandy Lane Beach Resort and Spa is an upmarket, five-diamond luxury hotel and beach resort situated close to Holetown and Paynes Bay, in Saint James on the island-nation of Barbados. The Sandy Lane Beach Resort was first opened in 1961 on what was formerly a sugar cane plantation...
- Sporting Emporium Casino
- Swanton Healthcare
- U4EA Technologies
- Young FoundationYoung FoundationThe Young Foundation was launched in the spring of 2006 following the merger of the Institute of Community Studies and the Mutual Aid Centre. It is named after Michael Young, the British sociologist and social activist who created over 60 organisations including the Open University, Which? and...