Dan Gilbert had a busy August. The billionaire owns the Cleveland Cavaliers and founded mortgage company Quicken Loans in Detroit. As his NBA team rests at home during the league restart, Gilbert is making moves with his business.
Gilbert floated the company on August 6. And with initial shares trading at $ 19.30, Gilbert’s stake in Rocket Companies (parent company of Quicken Loans) was worth $ 36.4 billion. Gilbert also sold part of the Rocket Companies shares for $ 1.76 billion.
That means Gilbert’s net worth jumped $ 38 billion in just one day. His total net worth today is $ 42 billion.
Of course, his 95% stake is only on paper. This value will increase and decrease over time and Gilbert will not realize his potential until he has cashed in.
Yet between Quicken Loans, the Cavs and a ton of real estate in Detroit, Gilbert is one of the richest people in America.
This is actually the second time Quicken Loans has been on the New York Stock Exchange. Gilbert first took the company public in 1998, when it was Rock Financial. He sold it to Intuit for $ 370 million in 1999. Just three years later, Gilbert bought Rock Financial from Intuit for just $ 64 million, renaming it Quicken Loans.
Gilbert also profited from the 2008 financial crisis. With the housing market crumbling, more traditional banks withdrew from the mortgage industry. As a non-bank lender, Quicken Loans has been able to thrive.
While Quicken Loans make up the bulk of Gilbert’s portfolio, the Cavaliers have also contributed a lot. With LeBron James in town from 2003 to 2010 and again from 2014 to 2018, the Cavs were among the best teams in the league. The team won a championship in 2016, Cleveland’s first championship in more than half a century.
Gilbert bought the Cavs for $ 375 million in 2005. Today they’re worth around $ 1.51 billion.
Gilbert has also invested a lot of money in real estate in Detroit. His Rock Ventures business sank at least $ 5.6 billion in the Detroit area, working with over 100 companies. He continues to seek out “more than profitable” businesses that sit on the borderline between for-profit and not-for-profit.
Rocket Companies doesn’t seem to be slowing down any time soon. It closed last year with a net profit of $ 894 million, a 46% increase in net profit. And that means Gilbert’s net worth will continue to increase.