Luis Carlos Sarmiento, born on January 27, 1933, in Bogotá, is a prominent Colombian banker, entrepreneur, and real estate developer. With a net worth of $9.9 billion as of March 2023, Luis Carlos Sarmiento holds the title of Colombia’s wealthiest individual, primarily due to his majority ownership and presidency of the banking conglomerate, Grupo Aval.
Luis Carlos Sarmiento’s Journey
Sarmiento’s journey to financial supremacy began at the Colegio Nacional de San Bartolomé, where he completed his secondary education. During the 1950s, he ventured into residential and commercial real estate developments, gradually establishing his reputation in the construction industry.
As his prominence grew, Luis Carlos Sarmiento shifted his focus towards acquisitions, particularly in the banking and financial services sectors. By the year 2000, Sarmiento had become a household name in Colombia’s banking landscape, holding a substantial 22 percent share of local banking assets, nearly the maximum allowed by law.
To consolidate his diverse business interests in banking, telecommunications, and real estate, Sarmiento founded Grupo Aval. At its core, the organization encompasses four major banks and various other financial service corporations. Known for his conservative management style, Sarmiento’s cautious approach played a pivotal role in sustaining his financial empire through Colombia’s most severe economic downturn.
In 2000, plans to list Grupo Aval on the New York Stock Exchange were postponed due to unfavorable conditions in the emerging markets sector. However, Sarmiento’s net worth experienced significant growth from 2005 to 2006, largely attributed to the booming Colombian stock market, which boasted the world’s second-best performance in 2005. Since 2006, Sarmiento has continued to lead Grupo Aval with the guidance of his son, Luis Carlos Sarmiento Jr., whom he is preparing to eventually succeed him.
Media Expansion and Philanthropy
In 2012, Sarmiento acquired Casa Editorial El Tiempo, which includes the widely circulated newspaper, El Tiempo. This acquisition solidified his presence in Colombia’s media landscape. Beyond his business ventures, Sarmiento has demonstrated a commitment to philanthropy. He pledged COP 80 billion to provide food for 400,000 needy families, 300,000 Covid-19 diagnostic tests, as well as ventilators and other medical equipment.
However, Sarmiento’s empire has not been without controversy. Grupo Aval, through its subsidiary Corficolombiana, became entangled in the Odebrecht scandal in Colombia. In August 2023, it was revealed that the U.S. justice system had imposed an $80 million fine on Grupo Aval for its involvement in a bribery network aimed at securing benefits for the La Ruta del Sol II infrastructure project, a joint venture with Odebrecht. Independent media outlets, such as La Silla Vacía, highlighted that El Tiempo, owned by Sarmiento, sought to downplay the sanction and present it as an exoneration.
In conclusion, Luis Carlos Sarmiento’s journey from a young student in Bogotá to becoming Colombia’s wealthiest businessman is a testament to his resilience and strategic acumen. His legacy, marked by Grupo Aval’s enduring success and his contributions to media and philanthropy, continues to shape Colombia’s business landscape. However, controversies like the Odebrecht scandal underscore the complexities of his multifaceted career. Zatrun.com has examined the life and impact of this influential figure in Colombian business and society.
