The Blackstone Group

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The Blackstone Group
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Founded 1985
Headquarters New York
Key People Stephen A. Schwarzman
Products Private equity investing, alternative asset management, financial advisory services, fund placement advisory
Website http://www.blackstone.com

The Blackstone Group is a corporate private equity operation that made headlines by being one of the first such entities to launch an initial public offering (IPO).[1] Blackstone's stock is currently listed on the New York Stock Exchange with the symbol BX. The company manages more than $500 billion in assets.[2]

Blackstone opened its IPO in November of 2007 at $31 a share for +15 million shares. The stock price rose nearly $7 shortly after the open, but the price subsequently dropped below $30 in the following week.

Established in the mid 1980s, it is a global business with 94 investment professionals and offices in New York, London, Mumbai and Hong Kong.

Blackstone owns a broad range of businesses - from London Eye and Legoland operator Merlin Entertainment Group to Pinnacle Foods Corp.

History

Peter Peterson and Stephen Schwarzman founded The Blackstone Group in 1985 with a shared secretary and a balance sheet of $400,000. As of June 30, 2007, the company had total assets under management of approximately $91.8 billion.

From 1987 through June 30, 2007, Blackstone's corporate private equity funds invested in approximately 113 companies in a variety of industries and geographies in pursuit of their investment objectives. The total enterprise value of all transactions effected by its corporate private equity operations through June 30, 2007 was over $199 billion.

Corporate Private Equity

Through this segment established in 1987, Blackstone pursues private equity transactions throughout the world, including not only typical leveraged buyout acquisitions of seasoned companies but also transactions involving start-up businesses in established industries, turnarounds, minority investments, corporate partnerships and industry consolidations.

At an event held by the Confederation of British Industry in late 2007, Schwarzman addressed criticism from unions, politicians and the public that private equity strips companies of their assets and burdens them with debt. "I suspect that private equity's current image has been colored by myths and fears that have more to do with anxiety about changes in the global economy," he said.[3]

Real Estate

Since 1992, Blackstone has had a diversified, global real estate operation, with investments in a variety of sectors and geographic locations. It has managed six general real estate opportunity funds and two internationally focused real estate opportunity funds.

Marketable Alternative Asset Management

Established in 1990, this group involves Blackstone's management of funds of hedge funds, mezzanine funds, senior debt vehicles, proprietary hedge funds and publicly-traded closed-end mutual funds.

Financial Advisory

Since 1985, the company's financial advisory segment has involved its corporate and mergers and acquisitions advisory services, restructuring and reorganization advisory services, and fund placement services for alternative investment funds.

Key People

In December of 2010, Blackstone Group LP named Senior Managing Director Michael Chae as head of private equity in Asia. Chae would also be responsible for the firm's limited partner marketing personnel and coordinate relationships with its most important limited partners in the region.[4]


References

  1. "Blackstone stock jumps on debut". MSNBC.
  2. Blackstone Talked With Ken Griffin’s Citadel About Buying Stake. The Wall Street Journal.
  3. "Blackstone Defends Private Equity Role". Reuters.
  4. Blackstone Names Asia Private-Equity Chief. WSJ.com.