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Blackstone Honchos Cash In on IPO

Barbarians at the gate will arrive flush with cash—$2.33B of it

By J. Kelman, Newser User

Posted Jun 11, 2007 9:04 AM CDT

(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.

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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Blackstone Honchos Cash In on IPO

Barbarians at the gate will arrive flush with cash—$2.33B of it

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More Newser Stories

Carlyle Group Files for IPO

Huge private equity company to open its books

Private Equity Giants See Big Payday—If They Don't Go Bust

All the major players have survived so far

Schwarzman Weighs In on Market Reforms

Private-equity billionaire says regs should be global, streamlined

PHH Deal Collapses After Banks Back Off

Blackstone Group says lenders reneged on original financing terms

Home Depot Deal Renovated

Price for wholesale unit slashed

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Blackstone Honchos Cash In on IPO

Barbarians at the gate will arrive flush with cash—$2.33B of it

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OTHER STORIES ON OUR RADAR

private equity • Blackstone Group • LBOs • Steve Schwarzman • IPO • Pete Peterson

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Carlyle Group Files for IPO

Huge private equity company to open its books

Private Equity Giants See Big Payday—If They Don't Go Bust

All the major players have survived so far

Schwarzman Weighs In on Market Reforms

Private-equity billionaire says regs should be global, streamlined

PHH Deal Collapses After Banks Back Off

Blackstone Group says lenders reneged on original financing terms

Home Depot Deal Renovated

Price for wholesale unit slashed

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?