Blackstone founders to reap IPO bounty
Blackstone Group’s co-founder Stephen Schwarzman received $398.2 million last year.
Blackstone Group’s co-founder Stephen Schwarzman received $398.2 million last year and has more on the way as the company nears its floatation.
The New York-based private equity company said in a filing with the Securities and Exchange Commission that Mr. Schwarzman has another $677.2 million of the company’s roughly $3.9 billion in IPO proceeds coming to him, in exchange for selling his interests.
Mr. Schwarzman will own about 23% of Blackstone after its private offering, which is expected to be completed in a few weeks.
Blackstone also paid co-founder Peter Peterson $212.9 million last year and will pay him another $1.88 billion when the company goes public, according to the filing.
Blackstone said it expected record net losses for several years following the offering and as a result of paying out the equity-based compensation.
The company is selling 133.3 million common units for $29 to $31 each in its IPO and said it expects to record finite-lived intangible assets in excess of $4 billion and plans to amortize them over them over three to 10 years, according to the filing.
About $3.6 billion of the intangible assets relate to goodwill, according to the filing.
Blackstone earned $2.27 billion in net income last year (InvestmentNews, April 2) .
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