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November 22, 2008 10:15:59 CST

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Blackstone Honchos Cash In on IPO

Posted Jun 11, 07 9:04 CDT in Business 

(Newser) – And the billionaires get richer. Blackstone founders Steve Schwarzman and Pete Peterson will collect a combined $2.33 bil from the private equity giant's planned IPO, which could take place as early as late June. Schwarzman will keep a 24% stake in the $32B company, worth just under $450M, and the 80-year-old Peterson will cash out with 4% equity, netting him $1.9B.

The Google-level windfalls reflect Wall Street's changing of the guard, with alternative investments taking the place of finance standbys at the top of the gold heap. And as their pots grow bigger—LBO funds were up 57% to $210 billion in 2006—Blackstone and co. are going the one place private equity feared to tred: public. “Everybody is looking at it,” says one insider.

Source Bloomberg

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Peter G. Peterson at The Week At Grand Central Luncheon   (Getty Images)
This image obtained 19 March, 2007 shows chairman and CEO of...   (Getty Images)
US chairman of the Council of Foreign Relations Peter Peterson...   (Getty Images)
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private equity • IPO • Blackstone Group • LBOs • Steve Schwarzman • Pete Peterson


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