is an example of why preference on the part of UTIMCO directors is detrimental to students’ money. He had companies that were well financed by UTIMCO, and Tom Hicks oversaw the investments in businesses owned by his former fraternity brother. The two were also business partners after they graduated. Hicks kept him in mind when a total of $58.6 million were invested in Schnitzer companies. The returns on these investments were not ideal; only about $45 million has been returned thus far.
Bruce Schnitzer is Chairman of Acordia, Inc., the fifth largest insurance company in the world. Bruce is also the Chairman and Treasurer of Fulcrum Analytics who provides software and technology to corporations such as “Lowes, Circuit City, Merck, Roche Diagnostics, Orange, AOL Time Warner, Netscape, Disney, Tommy Hilfiger, GE, and many others.”1 He is the Director of Nestor, Inc, who produces controversial traffic monitoring systems in addition to providing fraud and risk management solutions. Bruce was the CEO of Marsh and McLennan who provide risk management and insurance services to corporations, associations, organizations, and private clients. He resigned from this company in 1985 after the company had lost $165 in unauthorized trading. It was through this company that he had put investments in companies run by Tom Hicks, Richard Rainwater, and the Bass Family.2 In the same year that he resigned from Marsh and McLennan, Schnitzer was also involved in the formation of ACE Limited; they deal with specialty insurance and reinsurance products to corporations in 50 countries around the globe.
Much like another friend of Tom Hicks, businessman Sam Wyly, Schnitzer used some moves in which his businesses interacted with each other. Bruce Schnitzer is the Chairman of Wand Partners, a private equity investor. Wand has investments in ACE Limited and Acordia. Hicks, Muse, Tate & Furst is also on the list (the first name of that company tells who is involved). “Wand invested in the General Partner of Hicks Muse Equity Fund I, and has provided support for the Financial Services investment activities of Hicks Muse.3”