Stephen A. Schwarzman

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This article is about the investor. For his namesake building, see New York Public Library Main Branch.
Stephen A. Schwarzman
StephenSchwarzman.jpg
Stephen A. Schwarzman speaking at the World Economic Forum in Davos in January 2008
Born Stephen Allen Schwarzman
(1947-02-14) February 14, 1947 (age 67)
Philadelphia, Pennsylvania, United States
Residence New York City, US
Ethnicity Jewish[1][2]
Alma mater Yale University (A.B.)
Harvard Business School (M.B.A.)
Occupation Co-founder, Chairman & CEO of The Blackstone Group
Net worth Increase US$ 10.8 billion (September 2014)[3]
Political party
Republican
Spouse(s) Ellen Philips (divorced)
Christine Mularchuk Hearst (current)
Children 3 (2 with Philips; 1 stepchild with Hearst)

Stephen Allen Schwarzman (born February 14, 1947) is an American business magnate and financier. He is the Chairman and CEO of the Blackstone Group, a global private equity and financial advisory firm he established in 1985 with former US Secretary of Commerce Pete Peterson. His personal fortune is estimated at $10.8 billion, according to Forbes.[3]

Early life and education[edit]

Schwarzman was raised in a Jewish family[4][5] in Huntingdon Valley, Pennsylvania, the son of Arline and Joseph Schwarzman. His father owned Schwarzman's, a former dry-goods store in Philadelphia.[6]

Schwarzman attended the Abington School District in suburban Philadelphia and graduated from Abington Senior High School in 1965.[7] He attended Yale University during the same period as George W. Bush, one year behind him (both were in the Skull and Bones society)[8][9] and graduated in 1969. He then went on to Harvard Business School and graduated in 1972.

Career[edit]

Schwarzman's first job in financial services was with Donaldson, Lufkin & Jenrette, a now defunct investment bank. After business school, Schwarzman started working at the investment bank Lehman Brothers, where he reached the rank of managing director at age 31.[10] He eventually became the head of Lehman Brothers' global mergers and acquisitions team. In 1985, Schwarzman and his boss Peter Peterson started Blackstone, which originally focused on mergers and acquisitions.[11][12]

When Blackstone went public in June 2007, it revealed in a securities filing that Schwarzman had earned about $398.3 million in fiscal 2006.[13][14] He ultimately received $684 million selling part of his Blackstone stake in the IPO, keeping a stake then worth $9.1 billion.[15]

In 2007, Schwarzman was listed among Time Magazine's 100 Most Influential People in The World.[16]

Schwarzman has served as an adjunct professor at the Yale School of Management 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."[17]

In August 2010, Schwarzman compared the Obama administration's plan to raise carried interest taxes to Hitler's invasion of Poland in 1939, a comment for which Schwarzman later apologized.[18][19]

Among Blackstone's largest investments were SeaWorld Parks, in 2009. SeaWorld Parks were the focus of the 2013 film Blackfish, a documentary on Killer Whale attacks at these parks and the ethics of keeping them captive. When asked about the film, Stephen Schwarzman said on record that SeaWorld trainer Dawn Brancheau should be blamed for her own death, claiming that the veteran animal trainer broke multiple safety rules before she was pulled into a tank and killed by a six-ton orca in February 2010. Blackstone said in a written statement that Schwarzman "misspoke" in response to a question about "Blackfish," the controversial documentary that examines Brancheau's death and killer-whale captivity. The firm said its chief executive had not anticipated a question about the film and had not been briefed on the subject. The firm said Schwarzman does not plan to go back on CNBC to correct the record on air.[20][21] SeaWorld, for its part, said unequivocally that Brancheau bore no blame. "Dawn was one of the world’s most skilled and experienced marine mammal trainers. Her dedication to safety was among the many reasons she was so respected by her colleagues at SeaWorld and within the worldwide animal training community," the company said in a written statement. "We have never said and do not believe that she was at fault for the events of February 24, 2010."[22][23]

Schwarzman Scholars[edit]

On April 21, 2013, Schwarzman announced a $100 million personal gift to establish and endow a scholarship program in China, Schwarzman Scholars, modeled after the prestigious Rhodes Scholarship program. Schwarzman simultaneously announced a fundraising campaign with a goal of $200 million. The Schwarzman Scholars program will be housed at Tsinghua University, one of China’s most prestigious universities. The first class of 200 students is slated for 2016, upon completion of Schwarzman college, designed by Robert A. M. Stern, Dean of the Yale School of Architecture.[24]

Personal life[edit]

Schwarzman met his first wife, Ellen Philips, during his second year at Harvard Business School, where she worked as a researcher and helped grade essays. She was the daughter of Jesse Philips, a wealthy Ohio industrialist. They were married in 1971 and divorced in 1990. They had two children:[25][26]

  • Elizabeth (born 1976), married in November 2005 to Andrew Curtis Right.[27]
  • Edward Frank also known as Teddy (born 1979), married in November 2007 to Ellen Marie Zajac.[28]

In 1995, Schwarzman married Christine Hearst, an intellectual-property lawyer who grew up on Long Island. She was the daughter of Peggie and Peter Mularchuk of Hicksville, New York. Her father was a fireman.[26] She was recently divorced from Austin Hearst, grandson of the legendary newspaper tycoon Randolph Hearst. Rabbi Bertram Siegel co-officiated along with the Rev. Sam Matarazzo, a Roman Catholic priest.[6] She has one child from a previous marriage.[29]

With an estimated net worth of $10.8 billion, Schwarzman is ranked by Forbes as one of the wealthiest men in America.[3] He lives in a large apartment at 740 Park Avenue, previously owned by the Mayflower descendent George Brewster and John D. Rockefeller Jr. Schwarzman bought it from Saul Steinberg in 2000 for just under $30 million.[30] However, an article in The New Yorker claims that the apartment was purchased for $37 million.[31]

On 13 February 2007, Schwarzman celebrated his 60th birthday at the Armory on Park Avenue. Guests included Colin Powell, Mayor of New York City Michael Bloomberg, and Cardinal Edward M. Egan of New York. The climax of the evening was a half-hour live performance by Rod Stewart, for which he was reportedly paid $1 million.[32][33][34][35]

On March 11, 2008 Schwarzman announced that he contributed $100 million toward the expansion of the New York Public Library, for which he serves as a trustee. The central reference building on 42nd Street and Fifth Avenue was renamed The Stephen A. Schwarzman Building.[36]

References[edit]

  1. ^ New York Times: "Live From New York, It’s Steve Schwarzman" By MICHAEL J. DE LA MERCED October 21, 2011
  2. ^ Jerusalem Post: "The world's 50 Richest Jews: 31-40 #33 Stephen Schwarzman September 2012
  3. ^ a b c Forbes: The World's Billionaires- Stephen Schwarzman September 2014
  4. ^ New York Times: "Live From New York, It’s Steve Schwarzman" By MICHAEL J. DE LA MERCED October 21, 2011
  5. ^ Jerusalem Post: "The world's 50 Richest Jews: 31-40 #33 Stephen Schwarzman September 2012
  6. ^ a b New York Times: "WEDDINGS;Christine Hearst, S. A. Schwarzman" November 05, 1995
  7. ^ http://www.abington.k12.pa.us/shs/?page=hall_past_reward_recipients#2005, December 19, 2009
  8. ^ Evan Thomas and Daniel Gross, "Taxing the Super Rich," Newsweek, July 23, 2007
  9. ^ Andrew Clark, "The Guardian profile: Stephen Schwarzman," The Guardian, June 15, 2007
  10. ^ David Carey & John E. Morris, King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone, New York: Crown Business, 2010, pp. 13–30
  11. ^ Blackstone.com - Team
  12. ^ King of Capital, pp. 45-56
  13. ^ Blackstone IPO Prospectus, http://www.sec.gov/Archives/edgar/data/1393818/000104746907005160/a2178575z424b4.htm#07NYC1853_1 (pp. 198-199)
  14. ^ Michael Flaherty, "Blackstone Co-Founders to Get $2.3 Billion Post IPO," Reuters, June 11, 2007
  15. ^ King of Capital, p. 3
  16. ^ "Time 100 (2007) - Stephen Schwarzman". Time Magazine. May 3, 2007. Retrieved 2008-11-17. 
  17. ^ The Guardian profile: Stephen Schwarzman, 15 June 2007
  18. ^ Jonathan Alter, "A ‘Fat Cat’ Strikes Back," Newsweek, Aug. 15, 2010, http://www.newsweek.com/2010/08/15/schwarzman-it-s-a-war-between-obama-wall-st.html#
  19. ^ Neil Brooks and Linda McQuaig (April 1, 2012). "How billionaires destroy democracy". Salon.com. 
  20. ^ Blackstone chief blames Brancheau for own death, contradicting Seaworld. Orlando Sentinel, January 24, 2014
  21. ^ CEO of SeaWorld shareholder suggests trainer was to blame for her own death. Palm Beach Post, January 24, 2014
  22. ^ Blackstone chief blames Brancheau for own death, contradicting Seaworld. Orlando Sentinel, January 24, 2014
  23. ^ CEO of SeaWorld shareholder suggests trainer was to blame for her own death. Palm Beach Post, January 24, 2014
  24. ^ http://www.washingtonpost.com/world/asia_pacific/blackstone-founder-stephen-schwarzman-to-establish-300m-china-scholarship-program/2013/04/21/68a40db0-aa56-11e2-9e1c-bb0fb0c2edd9_story.html.  Missing or empty |title= (help)[dead link]
  25. ^ New York Sun: "Schwarzman in the Spotlight at Library Gala" By BRADLEY HOPE June 18, 2007
  26. ^ a b The New Yorker: "The Birthday Party: How Stephen Schwarzman became private equity’s designated villain" by James B. Stewart February 11, 2008
  27. ^ New York Times: "Zibby Schwarzman and Andrew Right" June 12, 2005
  28. ^ New York Times: "Ellen Zajac and Teddy Schwarzman" November 11, 2007
  29. ^ The Guardian: "The Guardian profile: Stephen Schwarzman" by Andrew Clarke June 15, 2007
  30. ^ Gross, Michael. 740 Park: The Story of the World's Richest Apartment Building. New York: Broadway Books, 2005.
  31. ^ Stewart, James B. Profiles: The Birthday Party: How Stephen Schwarzman became private equity's designated villain.
  32. ^ Landon Thomas, Jr., “More Rumors About His Party Than About His Deals,” New York Times, Jan. 27, 2007
  33. ^ Michael J. de la Merced, “Dealbook -- Inside Stephen Schwarzman’s Birthday Bash,” New York Times, Feb. 14, 2007
  34. ^ Richard Johnson with Paula Froelich, Bill Hoffmann, and Corynne Steindler, “Page Six - $3M Birthday Party Fit for Buyout King,” New York Post, Feb. 14, 2007
  35. ^ Michael Flaherty, “Blackstone CEO gala sign of buyout boom,” Reuters, Feb. 14, 2007
  36. ^ Robin Pogrebin, "A $100 Million Donation to the N.Y. Public Library" New York Times, March 11, 2008.

Further reading[edit]

  • 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, The Overlook Press, New York, ISBN 1-58567-088-X

External links[edit]


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