Blackstone Inc. history, profile and corporate video
Blackstone Inc. is a global investment company investing capital on behalf of pension funds, large institutions and individuals. It is headquartered in New York, United States.
The company invests across the alternative asset classes in private equity, real estate, credit and hedge funds as well as in infrastructure, life sciences, insurance, and growth equity.
HISTORY
Blackstone was founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. It was originally formed as a mergers and acquisitions advisory boutique.
The founders had previously worked together at Lehman Brothers, where Schwarzman served as head of Lehman Brothers’ global mergers and acquisitions business.
Schwarzman and Peterson named their company “Blackstone”, which was a cryptogram derived from their names: “Schwarz” in German means “black” and “Peter” in Greek means “stone” or “rock”.
The 1987 merger of investment banks E. F. Hutton & Co. and Shearson Lehman Brothers was advised by Blackstone.
In 1987 Blackstone entered into a 50–50 partnership with the founders of BlackRock, Larry Fink and Ralph Schlosstein. Fink and Schlosstein initially joined Blackstone to manage an investment fund and provide advice to financial institutions. The two founders planned to use a Blackstone fund to invest in financial institutions and help build an asset management business specializing in fixed-income investments.
In 1988, Fink obtain funding (for initial operating capital) from Blackstone to create Blackstone Financial Management, a risk management and fixed income institutional asset manager. Blackstone gave Fink a $5 million credit line in exchange for a 50 percent stake in the bond business.
In 1988, Blackstone advised CBS Corporation on its sell of CBS Records to Sony to form what would become Sony Music Entertainment.
In 1990, Blackstone and Silverman acquired a 65% interest in Prime Motor Inn’s Ramada and Howard Johnson franchises, creating Hospitality Franchise Systems as a holding company.
In 1992, Blackstone Financial Management adopted the name BlackRock.
In 1995, Blackstone sold its stake in BlackRock to PNC Financial Services.
In 2005, Blackstone with other six private equity companies, including Silver Lake Partners, Bain Capital, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners, and TPG Capital, acquired SunGard.
In December 2005, Blackstone, Kohlberg Kravis Roberts (KKR), Permira, Apax Partners and Providence Equity Partners, acquired Tele-Denmark Communications (TDC).
In 2006, the company launched its long/short equity hedge fund business, Kailix Advisors.
In 2006, Blackstone also acquired several companies including the following:
- EQ Office – one of the largest owners of commercial office properties in the US;
- Freescale Semiconductor;
- Michaels – one of the largest arts and crafts retailers in North America;
- Nielsen Holdings – the global information and media company formerly known as VNU;
- Orangina – bottler, distributor and franchisor of a number of carbonated and other soft drinks in Europe;
- Travelport – the parent of the travel website Orbitz.com;
- United Biscuits.
In June 2007, Blackstone became a public company via an initial public offering (IPO).
In 2007, the buyout of Hilton Hotels Corporation became one of Blackstone’s largest transactions.
In 2007, the company also acquired the medical device manufacturer Biomet.
In 2008, Blackstone, together with NBC Universal and Bain Capital acquired The Weather Channel from Landmark Communications. In 2015, the digital assets were sold to IBM. In 2018, the remainder of the company was sold to Byron Allen.
In 2009, Blackstone acquired Busch Entertainment Corporation from Anheuser-Busch InBev.
In 2012, the company acquired G6 Hospitality, operator of Motel 6 & Studio 6 motels from AccorHotels.
In 2013, the company acquired the manager of secondary funds Strategic Partners from Credit Suisse.
In February 2014, Blackstone acquired a 20% stake in Versace.
In May 2014, Blackstone acquired the Cosmopolitan of Las Vegas resort from Deutsche Bank.
In 2017, the company acquired the music-rights organization SESAC.
In 2018, the company acquired Pure Industrial, a Canadian real estate investment trust.
In 2020, Blackstone acquired Takeda Consumer Healthcare.
In 2021, the company acquired Aria Resort and Casino and Vdara from MGM Resorts International.
With more than 3,000 employees, Blackstone, Inc. is considered one of the world’s largest alternative investment companies. According to Forbes, it is considered one of the Largest Public Companies in the World.
*Information from Forbes.com, Wikipedia.org, and www.blackstone.com.