Stephen Allen Schwarzman (born February 14, 1947) is an
AmericanThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman and
investorAn investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
and the chairman and co-founder of the
Blackstone GroupThe Blackstone Group L.P. is an American-based alternative asset management and financial services company that specializes in private equity, real estate, and credit and marketable alternative investment strategies, as well as financial advisory services, such as mergers and acquisitions ,...
, the
private-equityPrivate equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and financial advisory firm.
Early life and education
Schwarzman attended the
Abington School DistrictThe Abington School District covers the Borough of Rockledge and Abington Township in Montgomery County, Pennsylvania. The district operates Abington Senior High School , Abington Junior High School , Copper Beech Elementary School, Highland Elementary School, McKinley Elementary School, Overlook...
in suburban Philadelphia and graduated from
Abington Senior High SchoolAbington Senior High School is a three-year co-educational high school in Abington, Pennsylvania. The school was a two-year high school known as Abington South Campus until June 1983. In September 1984, Abington South Campus became a three-year high school and eventually changed its name to...
in 1965. He attended
Yale UniversityYale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...
during the same period as
George W. BushGeorge Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
, one year behind him (both were in the
Skull and BonesSkull and Bones is an undergraduate senior or secret society at Yale University, New Haven, Connecticut. It is a traditional peer society to Scroll and Key and Wolf's Head, as the three senior class 'landed societies' at Yale....
society) and graduated in 1969. He then went on to
Harvard Business SchoolHarvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
and graduated in 1972.
Career
Schwarzman's first job in the financial services was with
Donaldson, Lufkin & JenretteDonaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
, a now defunct investment bank. After business school, Schwarzman started working at the investment bank
Lehman BrothersLehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
, where he reached the rank of managing director at age 31. He eventually became the head of Lehman Brothers' global
mergers and acquisitionsMergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
team. In 1985, Schwarzman and his partner
Peter PetersonPeter G. Peterson is an American businessman, investment banker, fiscal conservative, author, and politician whose most prominent political position was as United States Secretary of Commerce from February 29, 1972, to February 1, 1973 under Richard Nixon. He is most well known currently as...
started Blackstone, which originally focused on mergers and acquisitions.
With an estimated net worth of around $5.9 billion, Schwarzman was ranked by
ForbesForbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
as the
52nd-richest person in America in 2011The Forbes 400 or 400 Richest Americans is a list published by Forbes Magazine magazine of the wealthiest 400 Americans, ranked by net worth. The list is published annually in September, and 2010 marks the 29th issue. The 400 was started by Malcom Forbes in 1982 and treats those in the list like...
. He lives in a large
apartmentA condominium, or condo, is the form of housing tenure and other real property where a specified part of a piece of real estate is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights...
at
740 Park Avenue740 Park Avenue is a luxury apartment building on Park Avenue in Manhattan, which has been the home to many wealthy and famous residents. The building also carries the address 71 East 71st Street.-History:...
in
New YorkNew York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, previously owned by the Mayflower descendent George Brewster and John D. Rockefeller Jr. Schwarzman bought it from
Saul SteinbergSaul Steinberg is a former financier, insurance executive, and corporate raider. He started a computer leasing company , which he used in an audacious and successful takeover of the much larger Reliance Insurance Company in 1968...
in 2000 for just under $30 million. However, an article in the
New YorkerThe New Yorker is an American magazine of reportage, commentary, criticism, essays, fiction, satire, cartoons and poetry published by Condé Nast...
claims that the apartment was purchased for $37 million.
On 13 February 2007, Schwarzman celebrated his 60th birthday at the Armory on
Park AvenuePark Avenue is a wide boulevard that carries north and southbound traffic in New York City borough of Manhattan. Through most of its length, it runs parallel to Madison Avenue to the west and Lexington Avenue to the east....
. Guests included
Colin PowellColin Luther Powell is an American statesman and a retired four-star general in the United States Army. He was the 65th United States Secretary of State, serving under President George W. Bush from 2001 to 2005. He was the first African American to serve in that position. During his military...
,
Mayor of New York CityThe Mayor of the City of New York is head of the executive branch of New York City's government. The mayor's office administers all city services, public property, police and fire protection, most public agencies, and enforces all city and state laws within New York City.The budget overseen by the...
Michael BloombergMichael Rubens Bloomberg is the current Mayor of New York City. With a net worth of $19.5 billion in 2011, he is also the 12th-richest person in the United States...
, and Cardinal Edward M. Egan of New York. The climax of the evening was a half-hour live performance by
Rod StewartRoderick David "Rod" Stewart, CBE is a British singer-songwriter and musician, born and raised in North London, England and currently residing in Epping. He is of Scottish and English ancestry....
, for which he was reportedly paid $1 million.
When Blackstone went public in June 2007, it revealed in a securities filing that Schwarzman had earned about $398.3 million (over a million dollars per day) in fiscal 2006. He ultimately received $684 million selling part of his Blackstone stake in the IPO, keeping a stake then worth $9.1 billion.
In 2007, Schwarzman was listed among Time Magazine's 100 Most Influential People in The World.
Schwarzman has served as an adjunct professor at the
Yale School of ManagementThe Yale School of Management is the graduate business school of Yale University and is located on Hillhouse Avenue in New Haven, Connecticut, United States. The School offers Master of Business Administration and Ph.D. degree programs. As of January 2011, 454 students were enrolled in its MBA...
and is Chairman of the Board of Trustees of the
John F. Kennedy Center for the Performing Arts.
In June 2007, Schwarzman described his view on financial markets with the statement: "I want war, not a series of skirmishes. (...) I always think about what will kill off the other bidder."
On March 11, 2008 Schwarzman announced that he contributed $100 million toward the expansion of the
New York Public LibraryThe New York Public Library is the largest public library in North America and is one of the United States' most significant research libraries...
, for which he serves as a trustee. The central reference building on 42nd Street and Fifth Avenue was renamed "The Stephen A. Schwarzman Building"
In August 2010, Schwarzman compared President
Barack ObamaBarack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...
's plan to raise
carried interestCarried interest or carry, in finance, specifically in alternative investment management, is a share of the profits of a successful investment partnership that is paid to the investment manager of the partnership as a form of compensation that is designed as an incentive to the manager to maximize...
taxes to Hitler's invasion of Poland in 1939.
Additional reading
- King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone.
- Greed and Glory on Wall Street—The Fall of the House of Lehman by Ken Auletta
Ken Auletta is an American writer, journalist and media critic for The New Yorker.-Early life and education:Auletta grew up in Brooklyn, the son of an Italian-American father and a Jewish-American mother...
, The Overlook Press, New York, ISBN 1-58567-088-X
External links