Key facts
- Blackstone Group has achieved a 23% annual return on private equity investments over the last twenty years.
- Blackstone's real estate group has achieved a 30% annual return for the last fifteen years.
- Blackstone agreed to buy $12.5 billion of leveraged loans from Citigroup at a discount.
- China plans to buy a $3 billion stake in Blackstone Group.
Stephen Schwarzman, co-founder of the Blackstone Group, has written a series of personal histories reflecting on his career and significant financial events. In "The Global Financial Crisis, Part 2," he discusses the crisis that began in 2007, noting it as one of the most intriguing events he has lived through.
Schwarzman's career began at Lehman Brothers, where he rose to become Managing Director and head of Global Mergers and Acquisitions at age thirty-one. In 1985, he co-founded the Blackstone Group with Peter Peterson. The firm has achieved remarkable returns, with private equity investments averaging 23% annually over the last twenty years and real estate investments averaging 30% annually over the last fifteen years, after fees.
Blackstone has recently been involved in significant transactions, including agreeing to purchase $12.5 billion of leveraged loans from Citigroup at a steep discount. Additionally, China announced plans to acquire a $3 billion stake in Blackstone Group as part of its strategy to diversify its foreign exchange reserves. Schwarzman also mentioned that he and Nicolas Sarkozy have become family friends.