Michael Krasny | $1B+
Get in touch with Michael Krasny | Michael Krasny, founder of CDW, built one of America’s largest and most enduring technology solutions providers from a small Chicago basement startup into a multibillion-dollar enterprise. Beginning in 1984 by selling IBM personal computers to local businesses, Krasny expanded CDW into a leading distributor of hardware, software, and integrated IT solutions for corporations, government agencies, and educational institutions nationwide. Under his disciplined leadership and customer-centric philosophy, CDW went public and sustained decades of growth through strategic acquisitions and deep vendor partnerships. Krasny’s journey from entrepreneur to tech industry titan exemplifies long-term execution and operational excellence in enterprise technology services.
Michael Krasny is an American billionaire businessman best known as the founder of CDW Corporation, a major provider of information technology products and services that he built from a small direct-mail operation into a Fortune 500 company before selling it in 2007.[1][2]
Born in the early 1950s in Illinois, Krasny grew up in the Chicago area and initially showed limited interest in academics during high school.[3] He attended a junior college for two years before transferring to the University of Illinois at Urbana-Champaign, from which he graduated in 1975 with a degree in finance.[3] After college, Krasny worked at his father's Toyota dealership, where he began experimenting with computers in the late 1970s, but he left due to resistance to technological changes; he later took a programming class that ignited his interest in IT.[3]
In 1984, Krasny founded Computer Discount Warehouse (CDW) from his home, following a small classified ad placed in 1982 to sell a used personal computer, marking the start of a direct-sales model focused on IT hardware and software for businesses.[1][2] Under his leadership as chairman and CEO, the company expanded rapidly through exceptional customer service, multi-brand offerings, and a sales force that emphasized relationship-building, achieving over $6 billion in annual revenue and becoming the largest direct marketer of computer products in the United States by the mid-2000s.[3][4]
Krasny sold CDW to private equity firm Madison Dearborn Partners in 2007 for $7.3 billion, after which he retired from the company but retained a significant stake that contributed to his estimated net worth of $1.3 billion as of November 2025.[1][4] Post-sale, he founded Sawdust Investment Management Corp., where he serves as president, focusing on investments.[1] In 2022, he joined the Giving Pledge, committing to donate the majority of his wealth to causes addressing poverty, health, and violence reduction, particularly in Chicago.[5]
Early life and education
Family background and childhood
Michael Krasny was born in 1953 in Illinois.[6]
Krasny grew up in the Chicago suburb of Arlington Heights in a family immersed in the automobile industry, where his father owned and operated a Toyota dealership.[3][7] This environment provided him with early exposure to sales, customer interactions, and the operations of a small business, fostering a practical understanding of commerce from a young age.[8]
His parents emphasized stability and opportunity, supporting a household that valued hard work and education as pathways to success, which shaped Krasny's entrepreneurial mindset during his formative years.[5] These childhood experiences in Illinois, centered around his father's dealership, ignited his interest in business dynamics and laid the groundwork for his future endeavors.[6]
Education and early career
Krasny earned a Bachelor of Science in Finance from the University of Illinois Gies College of Business in 1975, after initially attending junior college and gaining admission to the university following a personal appeal to the admissions office.[3]
Following graduation, Krasny joined his father's Toyota dealership in Arlington Heights, Illinois, as a used-car salesman, where he honed direct sales techniques amid the competitive pressures of automotive retail. This role presented challenges, including unsuccessful attempts to implement computers for automating inventory and scheduling processes, yet it instilled valuable lessons in negotiation and customer persuasion that later informed his business approach. Due to resistance to these technological changes, Krasny left the dealership and later took a programming class that ignited his interest in information technology.[9][3][10]
Founding and growth of CDW
Inception and early years
In 1984, Michael Krasny founded MPK Computers in Lincolnshire, Illinois, initially operating the business from his home as a reseller of computer hardware and software. The venture originated from Krasny's earlier experience selling a used computer through a $3 classified advertisement in 1982, which generated enough interest to inspire a formal business model focused on direct sales of IT products.[2][11][12]
Krasny soon renamed the company Computer Discount Warehouse (CDW), emphasizing its role as a multi-brand provider of computer hardware, gadgets, and related technology to businesses and individual customers via mail-order catalogs and telephone orders. Drawing briefly on his prior sales experience at a Toyota dealership, Krasny prioritized customer service and quick fulfillment, sourcing products from various manufacturers to offer competitive pricing without maintaining large inventories. Initial operations were lean, with Krasny handling sales, procurement, and delivery personally from a small setup, allowing for rapid inventory turnover of 10 to 14 days.[11][12][8]
Early growth relied on targeted advertising in industry publications, such as the first national ad in PC World in November 1985, and a phone-based sales strategy that built direct relationships with buyers. This approach helped establish a loyal customer base, exemplified by the anecdote of Krasny's first customer from the 1982 advertisement, who remained an active client into the 2000s, underscoring the enduring impact of his service-oriented vision. By focusing on reliability and responsiveness, CDW transitioned from a solo operation to a structured reseller, laying the groundwork for broader adoption among small- and medium-sized enterprises seeking accessible IT solutions.[11][8][13]
Expansion and public offering
Under Michael Krasny's leadership, CDW transitioned from a small home-based operation to a major player in the IT distribution industry through aggressive expansion strategies focused on direct sales and customer-centric growth. By the early 1990s, the company had built a dedicated sales team that emphasized personalized service and technical expertise to serve business and government clients, enabling rapid scaling of its customer base.[2][14] Product diversification was a cornerstone of this expansion, as CDW broadened its offerings beyond basic hardware to include software, peripherals, and integrated IT solutions from multiple vendors, positioning it as the largest direct marketer of multi-brand IT products in the United States.[2][15]
A pivotal milestone came in 1993 when CDW completed its initial public offering (IPO) on the Nasdaq under the ticker CDWC, raising essential capital to fuel further infrastructure investments and market penetration. At the time of the IPO, the company reported net sales of $270 million and employed 247 people, reflecting its transformation into a structured enterprise ready for national expansion.[14][15] The public listing not only provided financial resources but also enhanced CDW's visibility among investors and partners, accelerating its trajectory toward Fortune 500 status.[2]
By the mid-2000s, these efforts had propelled CDW to surpass $6 billion in annual revenue, with sales exceeding $1 billion as early as 1997 through sustained focus on direct marketing channels and vendor partnerships.[14][2] This growth solidified CDW's dominance as the leading U.S. provider of multi-brand IT products via direct sales, serving a diverse clientele while maintaining operational efficiency.[15]
Sale of CDW and retirement
Acquisition by Madison Dearborn
In May 2007, Madison Dearborn Partners, a Chicago-based private equity firm, agreed to acquire CDW Corporation in a $7.3 billion public-to-private transaction, with shareholders receiving $87.75 in cash per share.[16][17] The deal, which closed in October 2007, represented Madison Dearborn's largest investment at the time and marked a significant exit for CDW's stakeholders.[18]
As CDW's founder and chairman emeritus, Michael Krasny held approximately 22% of the company's outstanding shares and served as its largest individual shareholder during the transaction.[16][19] Krasny, who had built CDW from a small mail-order operation into a multibillion-dollar enterprise, supported the acquisition, which provided him with substantial proceeds that propelled his personal fortune into the billions.[1]
The sale significantly contributed to Krasny's estimated net worth of $1.3 billion as of November 2025, primarily through the proceeds from his equity stake in CDW.[1]
Following the acquisition, CDW transitioned to private ownership under Madison Dearborn's management, continuing its operations as a leading provider of IT products and services without immediate major disruptions.[20]
Transition to retirement
Following the sale of CDW Corporation to Madison Dearborn Partners in October 2007 for $7.3 billion, Michael Krasny retired from his role as chairman after serving in leadership positions for 23 years since founding the company in 1984.[1][21] Although he had stepped down as CEO in 2001, Krasny retained the chairmanship until the transaction closed, marking the end of his direct involvement in the company's operations.[4][21]
This transition allowed him to fully exit active business management at the firm he built into a Fortune 500 company, shifting his attention to personal pursuits and reflection on his entrepreneurial path.
Early in his retirement, Krasny began exploring hobbies such as woodworking, operating a small shop called Custom Woodworking Design to create custom plaques and furniture.[13] Years later, in a 2022 conversation at the University of Illinois Gies College of Business, he reflected on his improbable journey from selling used computers to leading a multibillion-dollar enterprise, emphasizing lessons in resilience and risk-taking.[3]
Post-retirement ventures
Investment activities
Following his stepping down as CEO of CDW in 2001,[22] Michael Krasny founded Sawdust Investment Management Corp., where he has served as president since inception.[1] The firm operates as a single-family office based in Chicago, exclusively managing Krasny's personal investments.[23] Incorporated in early 2003, Sawdust was established to handle private investment activities, with operations expanding significantly after Krasny's full retirement from CDW following its 2007 acquisition by Madison Dearborn Partners.[24]
Sawdust Investment Management focuses on private investments across various sectors and asset classes, emphasizing capital preservation and long-term growth.[24] Drawing on Krasny's background in building CDW into a leading technology reseller, the firm prioritizes opportunities in technology and retail, alongside diversified holdings in public and private markets such as later-stage venture capital and growth equity.[25] This approach leverages his expertise in IT products and direct-to-business sales models developed during CDW's expansion.[1]
Krasny's wealth, primarily derived from the $7.3 billion sale of CDW, is actively managed through Sawdust, contributing to the maintenance of his net worth at approximately $1.3 billion as of November 2025.[1][26] The firm's strategy has supported steady wealth preservation amid market fluctuations, underscoring Krasny's transition from operational leadership to strategic investment oversight.[27]
Other business interests
Following his retirement from CDW, Michael Krasny pursued hands-on entrepreneurial interests rooted in personal hobbies, notably in the realm of craftsmanship. In 2009, he launched Custom Woodworking Design, a woodworking shop based in Northbrook, Illinois, where he produces custom plaques and awards.[13] This venture operates on a modest scale, contrasting sharply with the large-scale technology distribution model of CDW, and prioritizes artisanal quality and personalized design over commercial volume.[28]
Krasny's involvement in Custom Woodworking Design reflects a transition from corporate leadership to smaller, passion-driven enterprises tied to his retirement lifestyle, allowing him to channel a longstanding interest in carpentry into a professional outlet.[29] The business, with Krasny serving as president, maintains a low-profile operation focused on bespoke woodworking projects rather than broad market expansion.[28]
Philanthropy
Giving Pledge and major commitments
In 2022, Michael Krasny joined the Giving Pledge, committing to donate the majority of his wealth to charitable causes either during his lifetime or through his will.[5]
In his pledge letter dated June 6, 2022, Krasny highlighted his preference for anonymous giving but emphasized the value of public endorsement to lead by example in aiding the underprivileged and those in need. He attributed his own success to the support of his parents, education, and peers, stating that these factors enabled him to live a healthy and productive life, and expressed hope that his pledge would extend similar opportunities to others, particularly in the Chicago area where he grew up and built his business, drawing inspiration from the Bill & Melinda Gates Foundation's goals to reduce poverty, improve health, and decrease crime.[5]
Krasny's commitment was publicly announced on June 2, 2023, at the Giving Pledge's 13th annual gathering in Seattle, where he elaborated on his philosophy by noting the need to address global challenges amid division and polarization, and praised the initiative for uniting diverse perspectives to repair the world and invest in future generations through philanthropy.[30]
Krasny founded the Circle of Service Foundation in 1994, a private foundation focused on supporting education, health, community initiatives, Jewish causes, and medical research primarily in Illinois.[30]
Support for Jewish and medical causes
Michael Krasny has been an active supporter of Jewish causes through his involvement with Sigma Alpha Mu fraternity, where he was initiated as a member of the Rho chapter in 1973 at the University of Illinois. His philanthropic efforts in this area include significant contributions via the Circle of Service Foundation, which he established to fund Jewish community initiatives, among other priorities. These donations align with his commitment to "tikkun olam," a Jewish principle emphasizing repair of the world through anonymous giving. In recognition of his longstanding support for Jewish causes and broader philanthropy, Krasny was named Sigma Alpha Mu's 2024 Man of the Year.[31]
Krasny's support for medical research and health organizations is channeled primarily through the Circle of Service Foundation, which prioritizes grants for medical research as one of its core focus areas. The foundation, based in Illinois, has provided substantial funding to Illinois-based initiatives, including a $1,037,500 grant in 2023 to the University of Chicago for medical research. These contributions underscore Krasny's emphasis on advancing health-related research and community well-being in his home state.[32][33]
Together with his wife, Janet Krasny, Michael has focused philanthropic efforts on community service and education initiatives tied to health, supporting programs that promote women's health, community development, and educational access to medical fields. The couple's joint giving through the Circle of Service Foundation extends to health organizations that address broader societal needs, reflecting their shared dedication to impactful, service-oriented causes.[34][35]
Personal life
Family
Michael Krasny is married to Janet Krasny.[36] The couple has one child, though details about their family life remain private.[36] Krasny and his wife have donated jointly to philanthropic causes, such as the United States Holocaust Memorial Museum.[37]
Residences and lifestyle
Krasny long maintained a primary residence in Highland Park, Illinois, a suburb north of Chicago, where he lived with his family in a lakefront mansion overlooking Lake Michigan.[38][4]
In 2022, he sold the property for $3.53 million after listing it the previous year.[38][4]
In September 2024, Krasny purchased a three-bedroom condominium in Chicago's Lincoln Park neighborhood for $5.1 million, marking one of the year's highest-priced condo sales in the city.[4][39] In April 2025, he sold a three-bedroom condominium in the Park Tower building for $2.35 million.[40]
Post-retirement, Krasny has embraced a low-profile lifestyle centered on privacy and personal interests in the Chicago area.[41][13]
He dedicates time to woodworking as a hobby, having operated Custom Woodworking Design, a shop in Northbrook, Illinois, since 2009, where he crafts custom plaques and awards.[13][28]
Krasny also participates in local community activities in Illinois, reflecting his ongoing ties to the region.
Disclaimer: This profile is based on publicly available information. No endorsement or affiliation is implied.
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