According to Bloomberg, Blackstone is one of the world's largest alternative asset management firms, focusing on real estate, hedge funds, and private equity. Blackstone serves clients worldwide.
The group was founded in 1985 by Stephen Schwarzman and Peter Peterson with an initial capital of $400,000, after the two left Lehman Brothers, according to Reuters.
Peterson served as U.S. Secretary of Commerce from 1972-1973 and was president of the Council on Foreign Relations, a New York-based policy institute, until 2007. He passed away in 2018.
Blackstone's headquarters in New York, USA
Blackstone operates primarily in the following areas:
Alternative asset management: Blackstone claims to be the world's largest alternative asset manager with over $1 trillion in assets under management.
Real estate investments: This group has one of the world's largest real estate funds, investing in commercial, residential, and real estate development properties. Blackstone's global real estate portfolio was valued at $603 billion as of June 30th.
Private equity firm: Blackstone invests in companies through share buybacks, often seeking to improve performance and then resell for profit. As of the end of June, Blackstone managed $145 billion in private equity across 82 companies and had $37 billion available for investment.
Other financial services include financial advisory services, investment fund management, and other financial products.
In 2007, Blackstone launched its initial public offering (IPO), raising more than $4 billion, the largest IPO in the U.S. in five years at the time, according to Reuters. Blackstone was also the first major U.S. private equity firm to go public.
During Blackstone's early years, with limited experience in the private equity industry, investors were hesitant to fund the corporation. Schwarzman and Peterson then advised on mergers and acquisitions to build trust. One notable success was when Blackstone advised CBS on the sale of its subsidiary, CBS Records, to Sony in 1988, according to Investopedia .
Blackstone's business model
Blackstone attracts capital from investors, including pension funds, investment funds, financial institutions, and high-net-worth individuals. They typically commit a specific amount of money to Blackstone's fund.
Using the capital raised, Blackstone invests in alternative asset classes such as real estate, private equity, hedge funds, and other assets. They seek investment opportunities with high potential for returns.
Blackstone not only invests in but also actively manages these assets to optimize performance. This may include real estate renovations, strategic changes to private companies, or restructuring of investment funds.
After investing in and managing assets, Blackstone profits through selling those assets at a higher price, receiving dividends, or from the profits of the companies in its portfolio, according to Work Theater .
The profits generated from the investments will be distributed to investors according to the agreed-upon ratio, after deducting management fees and other expenses.
Since its inception, Blackstone has raised more than $100 billion for its eight private equity funds alone, according to Investopedia . The company's newest fund, Blackstone Capital Partners VIII, raised $26 billion in 2019.
Investopedia quotes Schwarzman in a speech at Yale University as saying that his private equity funds achieved an average annual return of 23% from 1988 to 2008.
Since launching the firm's first private equity fund in 1988, Schwarzman has significantly expanded Blackstone's business segments. The firm continues to provide mergers and acquisitions advisory services as well as private equity fund management. In addition, Blackstone manages several hedge funds and has real estate investment partnerships. In 2012, Schwarzman's real estate group began purchasing private family homes across the United States with the hope of converting them into rental properties.
Billionaire Stephen Schwarzman, Chairman of Blackstone
Targeting Asia
In an interview with Bloomberg last week, Amit Dixit, head of private equity at Blackstone in Asia, said the firm views Asia as "an engine of growth" and noted that it has been actively operating in India, Japan, Australia, and Southeast Asia.
"We see a lot of bright spots. We have knowledgeable local teams in each market," said Dixit.
Blackstone's current chairman, Stephen Schwarzman, was once dubbed the king of private equity by Forbes magazine.
Stephen Schwarzman is one of the richest people in America and the world, currently ranking 34th on Forbes ' list of billionaires with a net worth of $38.8 billion.
Schwarzman and his team are responsible for overseeing the allocation of capital to a number of pension funds, sovereign wealth funds, central banks, and other institutional investors.
With his extensive global business interests in private equity, debt financing, hedge fund management, and real estate acquisitions, Schwarzman is one of the most powerful figures on Wall Street. He was named one of Time magazine's most influential people in 2007. In addition, Schwarzman has donated substantial sums to various charities over the years.
During his recent working visit to the United States, General Secretary and President To Lam met with a number of leading technology companies and investment funds from the US and around the world, including Blackstone, according to VNA.
Receiving Mr. Stephen Schwarzman, Chairman, CEO and Founder of Blackstone investment fund, the General Secretary and President emphasized that science and technology and innovation have been identified by Vietnam as important growth drivers for the new phase, and therefore expressed the hope that Blackstone would expand its investment in Vietnam in this field to connect and provide capital to technology companies and startups in Vietnam.
Highlighting that green growth and sustainable development are important pillars in Vietnam's development orientation in the current period, the General Secretary and President affirmed that Vietnam recognizes the significant role of foreign investors in achieving these goals. He also expressed hope that Blackstone, with its network of influential and capable partners and clients in this field, will support Vietnam in accessing preferential credit financing, acting as a bridge to bring foreign investors to Vietnam to invest in green and sustainable development sectors.
The General Secretary and President highly appreciated Blackstone's plan to invest in and develop energy transition projects in Vietnam; and requested the group to discuss and coordinate with the Ministry of Industry and Trade and relevant agencies and partners to implement investment activities in this field.
Stephen Schwarzman expressed his desire to expand investment in Vietnam. On this occasion, he mentioned that Blackstone has entered the AI data center race, a field in which Vietnam has a strategy for development.
The Party and the State are committed to supporting and creating all favorable conditions for American investors in general, and Blackstone in particular, to carry out effective and sustainable investment and business activities in Vietnam.
Source: https://thanhnien.vn/de-che-blackstone-duoc-hinh-thanh-nhu-the-nao-185240926130324902.htm
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