Financial Titan Jonathan Blumer Dies in Tragic Yacht Accident
AInvestFriday, Aug 23, 2024 3:00 am ET
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Jonathan Blumer, the 70-year-old renowned financial mogul and Chairman of Morgan Stanley International, has been confirmed dead. The death toll from the sinking of the luxury UK yacht "Bayesian," which capsized due to a storm, has now reached six. The deceased include software entrepreneur Mike Lynch, Blumer and his wife Judy, lawyer Chris Morvelo and his wife Neda, and yacht chef Ricardo Thomas. Mike Lynch's 18-year-old daughter remains missing.

On August 22nd, multiple foreign media outlets reported that Italian officials confirmed the recovery of the bodies of Blumer, his wife Judy, Morvelo, Neda, and Lynch. Previously, the body of Ricardo Thomas had also been found. Search efforts for the last missing person, Hannah Lynch, are still ongoing.

They were all guests on the luxury yacht celebrating Mike Lynch's acquittal in a trial where Jonathan Blumer testified as a defense witness. In June, a San Francisco jury found Lynch not guilty of accusations of defrauding HP in a 2011 deal involving his software company Autonomy.

Blumer's children expressed their grief in a statement on August 22nd, describing their parents as remarkable individuals who prioritized family. They requested privacy during this incredibly painful time.

Before his death, Jonathan Blumer had served as Chairman of Morgan Stanley International and Chairman of insurance group Hiscox.

Morgan Stanley CEO Ted Pick praised Blumer's leadership and experience, emphasizing his significant role during complex periods for the company's international operations. Pick expressed that Blumer's wisdom and kindness would be sorely missed.

Hiscox CEO Aki Hussain also honored Blumer's generosity and wisdom, noting his substantial contributions to the industry and broader business community. Hussain remarked on his pride in knowing and working with Blumer.

According to publicly available information, Blumer had a long career, starting as a partner at Arthur Andersen for 20 years before joining Prudential Plc as CFO and later CEO from 1995 to 2005. After a clash over shareholder decisions, he transitioned to a role as an operating partner at Cerberus Capital Management LP from 2006 to 2012. He later led various boards, including Arrow Global Group Plc and DWF Group Plc.

Jonathan Blumer was appointed a Commander of the Order of the British Empire (CBE) in 2017 for his work with the children's charity NSPCC. He became Chairman of Morgan Stanley's European operations in 2018 and was named Chairman of Hiscox in 2023.

The sudden sinking of the yacht "Bayesian" on August 19th near Sicily, Italy, has prompted investigations. The vessel was a £14 million superyacht built by Perini Navi and named after Mike Lynch's doctoral thesis on Bayesian inference.

Experts are puzzled by the incident, as a yacht of such size and with top-tier safety measures should have withstood the storm. The tragedy has drawn significant media attention, particularly due to Mike Lynch’s high-profile career and recent trial.

Mike Lynch, a legendary figure in the UK's software and investment fields, founded his first company while pursuing his Ph.D. and later co-founded Autonomy in 1996, propelling it into the top 100 listed UK companies. He sold Autonomy to HP in 2011 for $11 billion, a transaction that later led to accusations of fraud by HP.

Lynch consistently denied these allegations and was extradited to the U.S. in 2023 for trial. After a lengthy process, he was acquitted in June 2024. Blumer, who testified in Lynch's defense, remarked that Lynch focused on strategy and innovation rather than accounting issues.

Reports indicate that the storm hit while Lynch and his advisors were celebrating his acquittal. The tragic yacht sinking and subsequent investigations have left many questions unanswered.
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