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
Schwarzman at the Blackstone Headquarters in New York on November 2015
Born Stephen Allen Schwarzman
(1947-02-14) February 14, 1947 (age 70)
Philadelphia, Pennsylvania, U.S.
Residence New York, New York, U.S.
Citizenship United States
Alma mater Yale University
Harvard University
Occupation Investor, private equity manager, philanthropist, advisor to President Donald Trump
Known for Founding and leading The Blackstone Group
Net worth US$10.2 billion (January 2017)
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 investor, private equity manager, and philanthropist. He is the chairman and CEO of the Blackstone Group, a global private equity firm he established in 1985 with former US Secretary of Commerce Pete Peterson. His personal fortune is estimated at $10.2 billion as of January 2017. As of 2017, Forbes ranked Schwarzman at 113th on its World's Billionaires List.[1][2]

He currently chairs President Donald Trump's Strategic and Policy Forum.[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.[10]

Investment 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.[11] 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.[12][13]

When Blackstone went public in June 2007, it revealed in a securities filing that Schwarzman had earned about $398.3 million in fiscal 2006.[14][15] He ultimately received $684 million selling part of his Blackstone stake in the IPO, keeping a stake then worth $9.1 billion.[16]

Schwarzman has served as an adjunct professor at the Yale School of Management and was chairman of the board of Trustees of the John F. Kennedy Center for the Performing Arts from 2004 to 2010.

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, 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 the question about Blackfish. 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."[20][21]

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:[22][23]

  • Elizabeth (born 1976), married in November 2005 to Andrew Curtis Right.[24]
  • Edward Frank also known as Teddy (born 1979), married in November 2007 to Ellen Marie Zajac.[25]

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.[23] She was recently divorced from Austin Hearst, grandson of 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.[17]

He lives in a duplex apartment at 740 Park Avenue previously owned by the Mayflower descendent George Brewster and by John D. Rockefeller Jr. Schwarzman purchased the apartment from Saul Steinberg in 2000 for just under $30 million.[26] However, an article in The New Yorker claims that the apartment was purchased for $37 million.[27]

On February 13, 2007, Schwarzman celebrated his 60th birthday at the Armory on Park Avenue. Guests included Colin Powell, Mayor of New York City Michael Bloomberg, Donald Trump, 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.[28][29][30][31] In February, 2017, he had lavish 70th birthday party in Florida, estimated to have cost $5–7 million.[32]

Political and economic views[edit]

Schwarzman is a Republican. He is a long-time friend of President Donald Trump and provides outside counsel,[33] and currently chairs President Donald Trump's Strategic and Policy Forum.[3] In response to criticism for his involvement with the Trump administration, Schwarzman penned a letter to current Schwarzman Scholars, arguing that "having influence and providing sound advice is a good thing, even if it attracts criticism or requires some sacrifice."[3]

In early 2016, he said that in a two-candidate race he would prefer Donald Trump to Ted Cruz, saying that the nation needed a "cohesive, healing presidency, not one that's lurching either to the right or to the left.".[34] He had previously made a donation to Marco Rubio in 2014. He also endorsed and fundraised for Mitt Romney in 2012.[35]

In 2010, Schwarzman drew controversy for comparing President Obama's proposal to increase taxation on 'carried interest' profits to Hitler's invasion of Poland in 1939. Schwarzman later apologized for the analogy.[36][37]

He raised $100,000 for George W. Bush.[38]

Wealth and philanthropy[edit]

According to Forbes Magazine, he has a net worth of $11.2 billion USD as of January 2017.[39] In 2014, Schwarzman was named as one of Bloomberg's 50 Most Influential people of the year.[40] In 2016, Schwarzman was again named as one of Bloomberg's 50 Most Influential people of the year.[41] In 2004, Schwarzman donated a new football stadium to Abington Senior High School—the Stephen A. Schwarzman Stadium.[42] In 2007, Schwarzman was listed among Time Magazine's 100 Most Influential People in The World.[43]

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.[44]

On May 11, 2015 Peter Salovey, the President of Yale University, announced that Schwarzman contributed $150 million to fund a campus center in the university's historic "Commons" dining facility.[45][46] Additionally, Schwarzman is also a member of the Berggruen Institute's 21st Century Council.[47]

Schwarzman Scholars[edit]

Main article: Schwarzman Scholars

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 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 100 students is slated for 2016, upon completion of Schwarzman College, designed by Robert A. M. Stern, Dean of the Yale School of Architecture.[48] In January 2016, Schwarzman was on the cover of the Shanghai Business Review to share his vision about the Chinese economy against the backdrop of his scholarship.[49] The story was supported by Kevin Rudd, former Prime Minister of Australia and on the International Advisory Board of Schwarzman Scholars.


  1. ^ "Stephen Schwarzman: Blackstone's $10 Billion Man". Forbes. Retrieved November 28, 2014. 
  2. ^ "Stephen Schwarzman". Retrieved December 4, 2016. 
  3. ^ a b c
  4. ^ "Live From New York, It's Steve Schwarzman". The New York Times. Retrieved December 4, 2016. 
  5. ^ "The world's 50 Richest Jews: 31-40 - Jewish World - Jerusalem Post". Retrieved December 4, 2016. 
  6. ^ a b "WEDDINGS - Christine Hearst, S. A. Schwarzman". November 5, 1995. Retrieved December 4, 2016. 
  7. ^ "Past Award Recipients". June 24, 2009. Retrieved December 4, 2016. 
  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. ^ "The 25 Most Successful Harvard Business School Graduates". Business Insider. Retrieved November 28, 2014. 
  11. ^ David Carey; John E. Morris (2010). King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone. New York: Crown Business. pp. 13–30. 
  12. ^ [1][dead link]
  13. ^ King of Capital, pp. 45–56
  14. ^ [2][dead link]
  15. ^ Michael Flaherty, "Blackstone Co-Founders to Get $2.3 Billion Post IPO," Reuters, June 11,
  16. ^ King oReferencesapital, p. 3
  17. ^ a b Andrew Clark. "profile: Stephen Schwarzman | Business". The Guardian. Retrieved December 4, 2016. 
  18. ^ Jonathan Alter (August 15, 2010). "Schwarzman: 'It's a War' Between Obama, Wall St.". Newsweek. 
  19. ^ Neil Brooks; Linda McQuaig (April 1, 2012). "How billionaires destroy democracy". 
  20. ^ a b "Blackstone chief blames Brancheau for own death, contradicting Seaworld". Orlando Sentinel. Retrieved December 4, 2016. 
  21. ^ a b "CEO of SeaWorld shareholder suggests trainer was to blame for". January 25, 2014. Retrieved December 4, 2016. 
  22. ^ "Schwarzman in the Spotlight at Library Gala - The New York Sun". June 18, 2007. Retrieved December 4, 2016. 
  23. ^ a b Toobin, Jeffrey (July 15, 2014). "The Birthday Party". The New Yorker. Retrieved December 4, 2016. 
  24. ^ "Weddings". The New York Times. Retrieved December 4, 2016. 
  25. ^ "Ellen Zajac and Teddy Schwarzman". The New York Times. November 11, 2007. Retrieved December 4, 2016. 
  26. ^ "740 Park | Michael Gross". Retrieved December 4, 2016. 
  27. ^ Toobin, Jeffrey (July 15, 2014). "The Birthday Party". The New Yorker. Retrieved December 4, 2016. 
  28. ^ Landon Thomas, Jr., "More Rumors About His Party Than About His Deals," New York Times, January 27, 2007
  29. ^ Michael J. de la Merced, "Dealbook – Inside Stephen Schwarzman's Birthday Bash," New York Times, February 14, 2007
  30. ^ Richard Johnson with Paula Froelich, Bill Hoffmann, and Corynne Steindler, "Page Six – $3M Birthday Party Fit for Buyout King," New York Post, February 14, 2007
  31. ^ Michael Flaherty, "Blackstone CEO gala sign of buyout boom," Reuters, February 14, 2007
  32. ^ Billionaire birthday party NYTimes, retrieved February 14, 2017
  33. ^
  34. ^
  35. ^
  36. ^
  37. ^
  38. ^
  39. ^ "Stephen Schwarzman". Forbes. Retrieved January 23, 2017. 
  40. ^ "Most Influential 50 Are the Bankers, Investors Who Move Markets". Bloomberg. Retrieved October 31, 2014. 
  41. ^ "Bloomberg's Fifty Most Influential". Bloomberg. Retrieved September 23, 2016. 
  42. ^ Stewart, James B. "The Birthday Party". THE NEW YORKER. Conde Nast. Retrieved December 5, 2014. 
  43. ^ "Time 100 (2007) – Stephen Schwarzman". Time Magazine. May 3, 2007. Retrieved November 17, 2008. 
  44. ^ Robin Pogrebin (March 11, 2008). "Stephen Schwarzman - New York Public Library". The New York Times. Retrieved December 4, 2016. 
  45. ^ "YaleNews | $150 Million Gift by Stephen A. Schwarzman to Establish First-of-its-Kind Campus Center at Yale University". May 11, 2015. Retrieved December 4, 2016. 
  46. ^ "Stephen A Schwarzman Gives $150 Million for Yale Cultural Hub". The New York Times. Retrieved December 4, 2016. 
  47. ^ "Berggruen Institute". 
  48. ^ Julia La Roche (April 21, 2013). "Billionaire Steve Schwarzman Has Donated $100 Million To Start His Own Version Of The Rhodes Scholarship". Business Insider. 
  49. ^ Maurits Elen (January 21, 2016). "A Match Made in the Middle Kingdom" (PDF). Shanghai Business Review. 

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]