Blackstone Group

Larry Fink, Steve Schwarzman Unite Behind Controversial Position That Even Oil-Rich Countries Can’t Just Go Around Killing Reporters

BlackRock’s Larry Fink and his erstwhile patron Steve Schwarzman of the Blackstone Group don’t agree on much, other than that it was very stupid of the former to sell the latter. Now, there’s a new area of agreement between the two old rivals: That autocratic regimes shouldn’t be allegedly murdering and dismembering journalists, certainly not so soon before a conference they’d like the two of them to attend. BlackRock Chief Executive Larry Fink and Blackstone Group CEO Stephen Schwarzman will no will no longer attend a high profile conference in Saudi Arabia…. Executives from media, technology and financial firms have in the last few days withdrawn from the conference, scheduled for Oct. 23-25, after the disappearance of Saudi journalist Jamal Khashoggi. President-elect Jamie Dimon is also...

Private Equity Firm Acting Like A Private Equity Firm

Here’s how private equity works: A firm buys a company with a lot of borrowed money. The now-p.e.-owned company borrows even more money to repay the p.e. owners. The p.e. firm resells the now-heavily indebted company on to the next sucker. Repeat. In layman’s terms, this is called levering to the hilt. It’s how private equity firms make money: Using leverage to extract as much as they can for themselves and their investors. But it is not the only kind of leverage available to p.e. firms. No! They can lever their leverage, especially when interest rates are laughably low. Leverage, after all, is just debt, and debt is just a contract for money, and contracts have to be negotiated, and the negotiator with more of the other kind of leverage is able to impose more of the terms of the contract ...

Anyone Not Named Steve Schwarzman Or Jon Gray Best Not Get Too Comfortable At Blackstone

(Blackstone Group) Pete Peterson is dead. Tom Hill and Tony James have stepped back. Steve Schwarzman… Well, Steve Schwarzman is still very much in charge. But even he will be replaced someday, probably by the same guy who replaced James. Change is afoot at the Blackstone Group. In January, Blackstone said John McCormick would take over management of the hedge fund business as Tom Hill stepped into the role of the group’s chairman. The firm also recently announced it was promoting Jon Gray to president and chief operating officer. Ken Caplan and Kathleen McCarthy were promoted to global co-heads of real estate. Blackstone’s largest business, credit arm GSO Capital Partners, is not immune to these winds. Indeed, last year, it got a new president, ostensibly to allow the “S” in “GSO,” Tripp ...

Plucky Private Equity Firm Sells Some Property For Pocket Change

For anyone rooting hard for Steve Schwarzman to break the $1 billion take-home pay barrier in 2018, here’s some good news. Blackstone Group is selling another one of its trophy office towers along Bryant Park.Savanna signed a contract late last week to acquire 5 Bryant Park, also known as 1065 Sixth Avenue, for $640 million, The Real Deal has learned.Blackstone has been looking to sell the 34-story, 665,000-square-foot property since 2016, when the private-equity giant first put it on the market. The firm bought the building in 2006 as part of a $7.2 billion joint-venture takeover of Trizec Properties with Brookfield Property Partners. Blackstone then bought out Brookfield for $295.4 million in 2011. We’re just relieved to see Blackstone get a win in this wild and crazy NYC real estate mar...

Warren Buffett Defends Non-Existent Gun Investments

Getty Images Don’t get Warren Buffett wrong: There are some things he and his 400-year-old sidekick Charlie won’t own, like immoral pharmaceutical companies. Now, in the wake of the recent horror in South Florida, one might take a look at the Berkshire Hathaway portfolio and say, “Hey look, no guns! Way to go again Warren, you randy, folksy old do-gooder!” And you’d be right: Berkshire does not own any gun companies. It owns a jewelry chain, a private-jet business, an underwear manufacturer, a giant energy holding company, some shitty furniture stores, a bon-bon maker, a press-release distributor and a realtor, but no business that is arming the children of America, not even one of the ones better known for selling those backpack-sized water bottles. But you’d also be wrong: Berkshire isn’...