Rishi Sunak’s appointment as the Prime Minister of Britain will definitely be one for the history books; it is not quite an Obama moment since he wasn’t picked by the popular vote of the people, but it comes pretty close.
After all, there is nothing that spells a true end to the British empire than an Indian – whose country had been oppressed by colonial rule for nearly 200 years before it gained its independence under the guidance of Mahatma Gandhi – becoming the first leader of colour.
Having said that, here are some facts about the new United Kingdom Prime Minister Rishi Sunak that you may or may not have known.
Background
Let’s begin with the basics.
Rishi Sunak was born on 12 May 1980 in Southampton, to African-born Hindu parents of Indian Punjabi descent, Yashvir and Usha Sunak.
His father worked as a doctor under the National Health Service (NHS) while his mother ran a pharmacy.
Both of Sunak’s grandfathers were born in the Punjab province of British India, and the emigrated to the United Kingdom in the 1960s from East Africa.
The newest Prime Minister is currently 42 years old.
He is married to Akshata Murty, and they have two daughters together, namely Krishna and Anoushka.
Education and Career
Much like other well-known politicians, Mr Sunak graduated from prestigious universities.
He went to a boarding school called Winchester College, then studied Philosophy, Politics and Economics at Oxford University.
He did a three-year stint at Goldman Sachs, before getting a master’s degree in Business Administration (MBA) at Stanford University.
After earning an MBA in 2006, he became a partner at London-based hedge fund The Children’s Investment Fund (TCIF) which is run by billionaire Chris Hohn.
He left TCIF in 2009 to join Theleme Partners, another hedge fund started by TCIF ex-cofounder Patrick Degorce.
In 2013, he launched Catamaran Ventures UK with his wife.
Sunak became an MP in 2015 when he was elected for Richmond in North Yorkshire.
Under Boris Johnson’s administration, he served as the Chancellor of the Exchequer (finance minister) from 2020 to 2022.
The Love Story
Rishi Sunak and Akshata Murty met in Stanford University while they were pursuing their MBAs.
During his August leadership campaign, Sunak thanked his wife for giving him a chance despite the difference in their socio-economic status, “You know what you mean to me, and I am incredibly grateful that 18 years ago you chose to give up your high heels and take a chance on the short kid with a backpack.”
The couple eventually got married in August 2009 in Bangalore, at an extravagant wedding that took place over two days.
They have two children together, Krishna and Anoushka, whom they are careful to keep out of the spotlight.
Who Is Akshata Murty?
Akshata Murty is the daughter of Indian billionaire Narayana Murthy, who cofounded the IT giant Infosys.
Narayana has been described as “the father of the Indian IT sector” by Times Magazine. He established Infosys in 1981 and retains the title of ‘chairman emeritus’ even though he retired from the board of directors in 2014.
Akshata’s mother is one Sudha Murty, who is an Indian engineering teacher, author and social worker who chairs Infosys Foundation.
Akshata’s educational history is on par with her husband’s: she studies economics and French at the private liberal Claremont McKenna College in California, then earned a diploma at a fashion college before she worked at Deloitte and Unilever.
Later, she pursued an MBA at Stanford University.
The heiress used to own a fashion company called Akshata Designs, which launched its first collection 2011.
She was determined to work with artists in remote Indian villages to preserve the authenticity, craftsmanship and rich heritage of her culture, but the business unfortunately collapsed within three years.
Akshata is Richer Than The King
The couple are among the richest in the UK’s population, though most of the wealth is possessed by Akshata Murty.
Holding a 0.93% stake in the traded digital services company, the small share owned by Akshata is worth $715 billion, and this makes up the vast majority of the couple’s combined wealth.
According to Forbes, Sunak and his wife have a combined net worth of $810 million, which is a quarter billion dollars more than the personal fortunes of King Charles III.
She owns Catamaran Ventures UK, the British branch of her father’s venture capital and private equity firm, which has declared $4 million in net assets.
Her husband used to own 50% of the company, but it was transferred to Akshata in April 2015, before he entered parliament.
According to Pitchbook, Catamaran Ventures UK holds shares in the luxury furniture marketplace The New Craftsmen and online florist Bloom & Wild. It used to invest in wireless foetal monitoring device maker Monica Healthcare and MRI scanner company Hallmarq.
The main fund in India under Narayama has stakes in companies such as SpaceX, Reddit and Loco.
Akshata is also a director in three separate businesses: a software company called Soroco founded by her brother Rohan, the high-end gentlemen’s outfitter New & Lingwood, and the gym chain Digme Fitness.
Tax Arrangement Scandal
During Sunak’s earlier leadership campaign against Truss, one of the scandals that jeopardised his prospects as the next premier was his wife’s tax status in the UK.
As an Indian citizen, Akshata is a tax citizen of her home country while she holds a “non-domicile” status in the UK.
“Non-domicile” is a type of British tax status whereby an individual considers (and has declared) their permanent home to be outside of the country, even if they live in that secondary country all year round. Any person who holds this status only needs to pay taxes in the UK based on their UK income.
By Forbes’ estimation, Akshata has earned $70 million (excluding tax) in Infosys dividends from 2015 to 2022, plus $17 million from share sales in Dec 2017.
In Britain, citizens are subject to 20% tax dividends and long-term capital gains, and the highest earners have to pay as much as 39.35%. This is a very big sum compared to India’s 10%.
Hence, Akshata has likely saved some $22 million in taxes by solely paying India’s rates.
However, you can imagine that the British public was not happy, especially when the August leadership election was happening in the midst of a cost-of-living crisis, a ballooning government debt, and a tired and protesting NHS.
After the public outcry, Akshata’s spokesperson announced that she will be paying UK taxes on her global income, including dividends and capital gains as soon as possible, and for the previous year.
Goldman Sachs, No Sach You
If you know anything about Goldman Sachs, it is probably that it is one of the leading investment banking companies in the world.
To be able to work for Goldman Sachs means that you are one of the best – like graduating summa cum laude from Oxford – and it is definitely something you would put in your resume.
Surprisingly, Mr Sunak does not list the fact that he was an analyst at Goldman Sachs on his LinkedIn profile.
He does not mention the fact that he has worked for two hedge fund companies either, despite helping cofound and owning 5% of the private equity firm Theleme Partners.
The only career history that Mr Sunak lists publicly are his time in parliament and as Chancellor of the Exchequer.
However, did you know that Mr Sunak worked for Goldman from 2001?
More specifically, he likely joined Goldman just before the 11 September 2001 terrorist attacks.
In that year alone, Goldman’s profit fell by 25% and more than 2,800 employees were retrenched. In the next year, Goldman almost cut another 400 people from its payroll.
This might have been the reason why Mr Sunak only spent three years at Goldman before he hustled to Stanford University to get his MBA.
Symbol of Progress and Privilege
While Mr Sunak appears to be the symbol of progress as a son of Indian immigrants and climbed his way up the social ladder through education and hard work, he is also the urban dictionary definition of privilege as he sits upon his family’s massive fortune, backed by certificates of his accomplishments in the finance sector.
Britain’s public services are collapsing at breakneck speeds: it is projected that 90% of schools in England may run out of money next year, NHS dentistry is on the brink of collapsed; okay, the entire NHS has been crumbling down but COVID-19 has only served to exacerbate the situation and highlight its worse flaws.
Energy and food prices are at an all-time high.
His humble beginnings and Asian descent make him more palatable and approachable to the common man, but his marriage to a heiress, some of his proposed fiscal policies, and his conservative views make people wonder if he will truly be able to pull Britain out of its economic crisis.
His appointment to Downing Street is just the beginning.
Mr Sunak is now tasked to review all public spending, from health, education, defence, welfare, to pensions— which are all politically sensitive and could easily make or break his administration.
The new premier warns that “it is going to be tough”on Tuesday as his government attempts to restore economic stability to the country.
History has its eyes on you, Mr Sunak, don’t mess this up.
Featured Image: Facebook (Rishi Sunak)