For 85 years the Oppenheimer family held a controlling position in the world’s diamond trade. In fact, during the 1980s, they controlled 90% of the global diamond market.
This staggering influence not only set the Oppenheimers apart as one of the most powerful families in South Africa but also elevated their status on the global stage.
However, this era of diamond supremacy came to an end with Nicky Frank Oppenheimer, the third generation of the mining dynasty. Nicky, one of Africa’s wealthiest individuals, made headlines by selling off his family’s stake in De Beers in 2012.
Although some questioned the sale, others praised him for making the best of a relatively bad situation. The monumental $5.2 billion sale catapulted him into the ranks of the super-rich. In fact, as of July 7, 2024, Nicky had a net worth of $9.5 billion according to Forbes.
His substantial wealth has allowed him to invest in private equity across Africa, Asia, the United States, and Europe, further expanding his influence beyond the diamond industry.
But Nicky Oppenheimer is not just defined by his business acumen. His interests range from environmental conservation and philanthropy to a passion for sports like squash and golf making him a multifaceted personality.
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Early life
Nicky was born on June 8, 1945, in Johannesburg, South Africa. He was born into one of South Africa’s most influential and wealthiest families and became the third generation of a mining dynasty.
His grandfather, Ernest Oppenheimer, founded the Anglo-American Corporation of South Africa in 1917 and later took control of De Beers. By the time Ernest died in 1957, Anglo-American had become the world’s largest producer of gold, while De Beers commanded 90% of the world’s diamond trade.
The Oppenheimer dynasty
Harry Oppenheimer, Ernest’s son and Nicky Oppenheimer’s father, took over the family business and expanded it into South African banking, steel, sugar, and paper. Under Harry’s leadership, both companies grew significantly.
By the 1980s, Anglo American accounted for 25% of South Africa’s GDP and about 60% of the Johannesburg Stock Exchange. Harry Oppenheimer even built ties with South Africa’s first president, Nelson Mandela, further strengthening the Oppenheimer family’s standing in the country’s economic and political circles.
Nicky Oppenheimer’s education and career
Nicky joined the family business in 1968 when he was 23. He was fresh out of school having graduated from Oxford University with an MA in Philosophy, Politics, and Economics. Before Oxford, Nicky attended Ludgrove School, Harrow School, and Christ Church.
Nicky’s first job at Anglo American was as a personal assistant to the chairman, his father, Harry. He had a steady rise in the company, and in 1974, he was appointed as a director. In 1983, he became deputy chairman of Anglo-American and served until 2001.
In 1984, he was appointed deputy chairman of the Central Selling Organisation (now Diamond Trading Company), and in 1985, he became deputy chairman of De Beers. In 1998, Nicky became the chairman of the De Beers Group, a position he held until 2012.
De Beers’ decline
Cecil Rhodes founded De Beers Consolidated Mines Limited(a company that would later be run by the Oppenheimers) after a massive diamond discovery in South Africa in the late 19th century. De Beers developed a clever albeit unsportsmanlike strategy that saw it dominate the diamond market.
The company influenced almost all of the world’s rough diamond suppliers to sell their production through the De Beers distribution channel, the Diamond Trading Company (DTC), thereby controlling the majority of the world’s diamond distribution.
However, in the late 20th century, new diamond mines in Russia, Australia, and Canada threatened De Beers’ monopoly with the concern being that they would supply diamonds directly to the market instead of through DTC.
Although De Beers initially convinced Russia to sell through DTC, anti-apartheid legislation and the collapse of the Soviet Union in the 1990s weakened this arrangement. Soon after the Russia – De Beers agreement crumbled, the Argyle Mine in Australia, the then largest diamond-producing mine by volume, broke away from De Beers. By the late 1990s, De Beers’ market share had fallen to less than 60%, a sharp decline from its 90% standing in the 1980s.
In 2000, De Beers shifted to marketing its brand independently as it lost control over the market.
Unfortunately, that was not the end of the mining company’s troubles. In 2001, several lawsuits in U.S. courts alleged that De Beers had unlawfully monopolized the supply of diamonds, conspired to fix prices, and issued false advertising. De Beers was delisted from the Johannesburg Stock Exchange the same year.
After several appeals, a $295 million settlement was reached in 2012, with De Beers agreeing to refrain from engaging in certain conduct that violated antitrust laws.
Nicky Oppenheimer’s retirement and investments
In 2011, Nicky resigned from Anglo American’s board. In 2012, he sold the Oppenheimer family’s 40% stake in De Beers to Anglo American for $5.2 billion and retired.
In a past interview with Bloomberg, Nicky disclosed that he would deploy most of the proceeds into private equity investments across Africa. The tycoon also received $390 million in dividends from Anglo American.
As of July 7, 2024, his net worth was $9.5 billion, making him Africa’s third-richest man according to Forbes.
He has private equity investments across Africa, Asia, the United States, and Europe and owns South Africa’s largest private game reserve, Tswalu Kalahari, with his son Jonathan.
He also owns the expansive 65,000-hectare Shangani Ranch, a crucial centre for beef exports to the United Kingdom since 1937. Additionally, Nicky owns Fireblade Aviation, a Johannesburg-based private aviation company founded in 2014, offering chartered flights and VIP services.
Philanthropy
Nicky is an avid philanthropist dedicated to giving back to his community. The Oppenheimer family founded the Brenthurst Foundation in 2004 to devise ways to drive Africa’s economic growth and development.
Nicky and his son Jonathan established the South African Future Trust in 2020, providing short-term financial relief to SMME employees impacted by the Covid-19 crisis.
Further, through the Oppenheimer Memorial Trust (OPM), Nicky has awarded scholarships and funding to underprivileged individuals pursuing higher education. Besides education, OPM supports health and social development projects in South Africa.
Family
Nicky is married to Orcillia Lasch Oppenheimer, the daughter of renowned business tycoon Helli Lasch. The pair are reportedly enjoying their retirement together.
Nicky and Orcillia have one child, Jonathan Oppenheimer. Like his father, Jonathan is a businessman with a passion for conservation. He attended the same schools his father did and co-owns Tswalu Kalahari with him. Jonathan is a widower, following the death of his wife Jennifer Ward in 2017.
