Billionaire Ray Dalio Steps Down from Bridgewater Associates; Sovereign-Wealth Fund of Brunei Acquires Final Stake

Ray Dalio, Bridgewater Associates founder, has divested his remaining stake in the company and stepped down from its board. The firm has repurchased Dalio's shares and issued new shares to Brunei's sovereign wealth fund, granting it a nearly 20% ownership stake. Dalio's departure is expected to streamline governance and he remains invested in Bridgewater funds.

Ray Dalio, the founder of Bridgewater Associates, has divested his remaining stake in the company and stepped down from its board, marking the culmination of a multi-year leadership transition [1]. The firm repurchased Dalio's shares and issued new shares to Brunei's sovereign wealth fund, granting it a nearly 20% ownership stake [2].

The move, not previously disclosed to clients, signifies a significant shift in ownership and governance. Bridgewater's CEO Nir Bar Dea and board co-chair Mike McGavick described Dalio's final share sale as "an ideal culmination" of the firm's ownership transition [3]. Dalio, who is 75 years old, expressed his satisfaction with the transition in a LinkedIn post, stating, "I love seeing Bridgewater alive and well without me—even better than alive and well with me" [1].

Dalio's departure is expected to streamline Bridgewater's governance, as he remains invested in the firm's funds. The Brunei Investment Agency, a long-term investor in Bridgewater, has emerged as one of the firm's largest owners [2]. The agency's investment reflects new international interest in Bridgewater's future.

Dalio's exit comes after he raised concerns about the mounting U.S. debt crisis, estimating it to be a staggering $37 trillion [1]. He warned that the U.S. debt crisis could lead to a spiral of increasing debt, potentially prompting actions such as interest rate hikes or currency devaluation, which could severely impact the economy [1].

Bridgewater's assets under management declined from $168 billion in 2019 to $92.1 billion by the end of 2024, according to regulatory filings [1]. The drop is partly attributed to the firm capping the size of its flagship Pure Alpha fund in 2023 and 2024 to enhance performance [1].

With $92.1 billion in assets under management, Bridgewater remains the world's largest hedge fund. Dalio's complete exit marks the end of an era and the full handoff to a new generation of leaders poised to guide the firm into its next chapter [3].

References:
[1] https://www.benzinga.com/news/financing/25/08/46789004/billionaire-ray-dalio-steps-down-from-bridgewater-associates-sovereign-wealth-fund-of-brunei-acquires-final-stake
[2] https://cointelegraph.com/news/ray-dalio-sells-last-bridgewater-stake-debt-collapse-prediction
[3] https://m.economictimes.com/markets/stocks/news/ray-dalio-bids-farewell-bridgewater-founder-sells-final-stake/dalio-exits-bridgewater/slideshow/123036806.cms