Early Life and Education
Michael Robert Milken was born on July 4, 1946, in Encino, California, to a middle-class Jewish family. He attended Birmingham High School, where he was the head cheerleader. Milken earned a B.S. with honors from the University of California, Berkeley, in 1968 and later received his MBA from the Wharton School of the University of Pennsylvania.
Rise to Success
Milken began his career at Drexel Burnham Lambert in 1969, where he spearheaded the high-yield bond department. He identified the potential of "junk bonds" to finance companies unable to access traditional credit. His innovative approach fueled the 1980s leveraged buyout boom and facilitated the growth of numerous businesses, including those in the entertainment, technology, and homebuilding industries. Milken financed over 3,200 companies, which created millions of jobs.
Key Business Strategies
Milken's key strategy involved focusing on cash flow rather than reported earnings. His approach to capital structure significantly influenced company valuations and investment risk. He pioneered methods of financing entrepreneurs and provided them with access to capital.
Philanthropy
After his release from prison, Milken's focus shifted to philanthropy. In 1993, he founded the Prostate Cancer Foundation, the world's largest philanthropic funder of prostate cancer research. He is also the chairman of FasterCures, a think tank dedicated to accelerating progress against all life-threatening diseases. Milken's commitment to medical research, education, and public health initiatives has significantly impacted numerous fields.
