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Steve Schwarzman Explains Why He Counsels Trump

Reported by Bloomberg
Feb 8, 2017· 2 min read
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Key Takeaways
  • • Steve Schwarzman, chairman and CEO of Blackstone Group, has committed $100 million of personal capital and raised an additional $350 million to establish the Schwarzman College at Tsinghua University in Beijing, launching a global scholar program.
  • • The Schwarzman Scholars program enrolled 110 fellows in its inaugural year, drawing participants from over 50 countries with particular emphasis on Chinese and American candidates, representing a deliberate international talent and soft power initiative.
  • • Schwarzman has assumed an advisory role to the Trump administration, a decision that drew public criticism from stakeholders; his explanation centers on a belief that Trump possesses substantive understanding of presidential governance and policy implementation.
  • • The initiative reflects Schwarzman's strategic focus on China engagement and international relations at a critical juncture in U.S.-China diplomatic and commercial relations during the Trump transition period.
Summary
Stephen A. Schwarzman, the prominent private equity executive and chairman and chief executive of Blackstone Group, has deployed substantial capital toward building institutional influence and global talent networks through the establishment of Schwarzman College at Tsinghua University in Beijing. The commitment represents $100 million in personal investment supplemented by $350 million in additional fundraising, positioning the initiative as one of the largest educational philanthropic efforts by a Wall Street figure in recent years.

The inaugural cohort of Schwarzman Scholars, numbering 110 fellows, convened two months before the 2016 presidential election and represented a genuinely international composition. Participants originated from diverse geographies including Romania, Mongolia, and Zimbabwe, though the program deliberately emphasized recruitment from China and the United States. This geographic and national focus underscores a strategic emphasis on fostering relationships and influence across the world's two largest economies during a period of significant geopolitical transition.

During this same period, Schwarzman accepted a formal advisory role to the incoming Trump administration, generating substantial criticism from various constituencies. In response to backlash regarding his decision to assume a White House advisory position, Schwarzman articulated his rationale through corporate communications, emphasizing that Trump possessed a substantive foundation of knowledge regarding presidential operations and governance. This positioning reflected Schwarzman's broader strategic calculus regarding access and influence during the Trump transition.

The convergence of Schwarzman's China-focused educational initiative and his simultaneous elevation to Trump administration adviser highlights the complex intersection of private equity capital, international relations, and political access that characterizes the operational environment for large alternative asset managers in the contemporary period.

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Sources

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AlphaMaven summarised this story from the reporting below. Each link opens the original article.

Bloomberg Steve Schwarzman Explains Why He Counsels Trump