Key Takeaways
- • Blackstone cofounder Steve Schwarzman, ranked No. 38 on the Forbes rich list with a net worth of $11.6 billion, is profiled by Business Insider as the richest man in private equity.
- • Blackstone cracked the $300 billion AUM mark earlier in 2015, making it the largest firm in the industry by cash managed, according to Business Insider.
- • Schwarzman launched Blackstone in 1985 with former Lehman Brothers colleague Pete Peterson with less than a half-million dollars, initially as an investment banking boutique before pivoting to buyouts.
- • Blackstone's early deals were heavily real estate-focused, and the firm later became one of the largest U.S. real estate investors, with holdings including Hilton Hotels, Equity Office Properties, Willis Tower and Stuyvesant Town.
- • Schwarzman is expected to earn $1 billion in 2015 and made a $150 million gift to Yale University earlier this year, following a $100 million donation to the New York Public Library in 2008.
Summary
Business Insider profiles Steve Schwarzman, cofounder of The Blackstone Group, as the richest man in private equity. He ranks 38th on the most recent Forbes rich list with a net worth of $11.6 billion, and the publication notes he is expected to earn $1 billion in 2015 alone.
Schwarzman's career began unevenly. Born in Philadelphia in 1947, he studied at Yale, where he majored in an interdisciplinary program rather than economics. After joining Donaldson, Lufkin & Jenrette in 1969, he later said he was unprepared for the work, describing himself as lacking economics training and the ability to read a financial statement. He subsequently served in the Army Reserves, earned an MBA from Harvard Business School in 1972, and joined Lehman Brothers, where he built a reputation in mergers and acquisitions and rose to managing director and chair of the M&A committee.
In the mid-1980s, Schwarzman launched Blackstone with Pete Peterson as an investment banking boutique with less than a half-million dollars, according to a Wall Street Journal profile cited by Business Insider. The firm quickly moved into buyouts, positioning itself as a friendlier alternative to hostile takeovers, and many of its earliest deals were in real estate. Blackstone later became a dominant force in real estate investing. Business Insider cites its 2015 holdings, including the Willis Tower in Chicago and Stuyvesant Town in New York City.
The article notes that assets under management have become the industry's key metric, and Blackstone surpassed $300 billion in AUM earlier in 2015, which it describes as the highest in the industry. Schwarzman's philanthropy has included a $100 million gift to the New York Public Library in 2008 and a $150 million donation to Yale earlier in 2015. The profile also covers his personal life, including his 1995 marriage to Christina Hearst and his 2007 60th birthday party at the Park Avenue Armory.
Schwarzman's career began unevenly. Born in Philadelphia in 1947, he studied at Yale, where he majored in an interdisciplinary program rather than economics. After joining Donaldson, Lufkin & Jenrette in 1969, he later said he was unprepared for the work, describing himself as lacking economics training and the ability to read a financial statement. He subsequently served in the Army Reserves, earned an MBA from Harvard Business School in 1972, and joined Lehman Brothers, where he built a reputation in mergers and acquisitions and rose to managing director and chair of the M&A committee.
In the mid-1980s, Schwarzman launched Blackstone with Pete Peterson as an investment banking boutique with less than a half-million dollars, according to a Wall Street Journal profile cited by Business Insider. The firm quickly moved into buyouts, positioning itself as a friendlier alternative to hostile takeovers, and many of its earliest deals were in real estate. Blackstone later became a dominant force in real estate investing. Business Insider cites its 2015 holdings, including the Willis Tower in Chicago and Stuyvesant Town in New York City.
The article notes that assets under management have become the industry's key metric, and Blackstone surpassed $300 billion in AUM earlier in 2015, which it describes as the highest in the industry. Schwarzman's philanthropy has included a $100 million gift to the New York Public Library in 2008 and a $150 million donation to Yale earlier in 2015. The profile also covers his personal life, including his 1995 marriage to Christina Hearst and his 2007 60th birthday party at the Park Avenue Armory.
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