BLACKSTONE GROUP

'Blackstone Group' L.P. () is a prominent private equity and investment management firm founded in 1985 by Peter G. Peterson and Stephen A. Schwarzman. The company is based in New York City, in River House on Park Avenue at Fifty-first Street, with offices in Atlanta, Boston, London, Hamburg, Paris, Mumbai, and Hong Kong. One of the world's largest private equity firms, ^[1] it is part of the migration of companies from public to private hands — a total of some $370 billion in deals in the U.S. in 2006.
It is not to be confused with the investment management firm BlackRock, Inc., which was founded by Blackstone, but sold in 1995. Blackstone is a wordplay on the founders' names. Schwarz is German for black and Peter, recurrent both in the name and surname of one of the founders, stands for stone, thus yielding the company's name: Blackstone. (Peterson is a Greek-American and his name Peter, or "Petros" in Greek, means stone or rock.)

Contents

Business divisions

Recent activity

Notable current and former employees

See also

References

External links

Company datasheet

Business divisions

★ Private Equity Group (manages holdings in Allied Waste, ''Graham Packaging'', Celanese, ''Nalco'', Houghton Mifflin, American Axle, ''Prime Hospitality'', Legoland, and Universal Studios Florida).

★ Real Estate Group (holds more than 13 million square feet of real estate in Boston, New York, San Francisco, and Washington, DC.)

★ Corporate Debt Group

★ Marketable Alternative Investments (Blackstone Alternative Asset Management, or BAAM), which offers numerous funds of hedge funds, first used only by internal investments, now open to clients.

★ Private Placements (Park Hill Group, or PHG), Raising capital for Hedge Funds, Private Equity, and Real Estate funds

★ Relative Value Fixed Income Investments

★ Corporate Advisory Services

★ Restructuring & Reorganization Advisory (clients have included XEROX, Enron, Bally Total Fitness, and Global Crossing).

Recent activity

Blackstone opened its IPO at $31 a share for +15 million shares, rose nearly $7 shortly after the open but subsequently dropped below $30 in the following week.
In recent years Blackstone has made significant investments in the hotel and commercial real estate industries by buying and taking private seven large publicly-traded firms:

★ On July 3, 2007, the Blackstone Group and Hilton Hotels Corporation announced plans for the Blackstone Group to acquire Hilton Hotels Corporation with all debt assumed in an all cash deal valued at $26 billion.^[2][3]

★ On July 1, 2007, the Blackstone Group sold Global Tower Partners to Macquarie Infrastructure Partners for an enterprise value of $1.425 billion. Global Tower Partners is a leading owner and operator of wireless towers and sites.^[4]

★ In May 2007, the government of the People's Republic of China agreed to buy $3 billion non-voting stock in Blackstone, which is slightly less than a 10% stake. As a result Blackstone has increased its Initial Public Offering to $7.8 billion worth of stock, which includes the China stake. The IPO was priced Thursday, June 21, 2007. The partnership units were priced as expected at $31 for 133 million units or $4.123 billion, with likely increased sale of the additional units up to +15% to then total $4.741 billion.

★ In May, 2007, Blackstone agreed to purchase Alliance Data for $7.8 billion.

★ In April, 2007, Blackstone agreed to sell Extended Stay Hotels, based in Spartanburg, South Carolina and its brands to The Lightstone Group for $8 billion. The sale is expected to close in June, 2007 and will be the largest hotel deal in history.

★ In March, 2007, Blackstone filed for $4 billion Initial Public Offering, preparing to change its nature from a private firm to a public firm.^[5]

★ In March, 2007 Blackstone purchased The Tussauds Group, for £1 billion from Dubai International Capital.^[6]

★ In December, 2006, Blackstone as part of a Consortium of private equity funds including Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. and TPG, agreed to purchase all stock shares of Biomet for approximately $10.9 billion. Biomet is a worldwide manufacturer and marketer of hip, knee, shoulder, and spinal implants and supporting surgical supplies for the orthopedic industry.

★ In November, 2006, Blackstone agreed through its affiliate, Blackstone Real Estate Partners, to acquire billionaire Sam Zell's Equity Office Properties Trust, for approximately $39 billion. Goldman Sachs, Bank of America, Morgan Stanley and a few others acted as financial advisors to Blackstone in the deal. Prior to the takeover Equity Office was the nation’s largest publicly held office building owner and manager. Its total office portfolio consisted of whole or partial interests in 580 buildings comprising 108.6 million square feet in 16 states and the District of Columbia. The acquisition was the biggest takeover of a real estate company and the largest private equity deal in history.[2]

★ In September, 2006, Blackstone lead a consortium buyout of Freescale Semiconductor. The other members of the consortium were the Carlyle Group, Permira Funds and the Texas Pacific Group. [3]

★ In July, 2006, Blackstone Capital Partners agreed to purchase Encore Medical for $870 million in cash. Encore makes spine, knee, hip and shoulder implants for the orthopedic industry.

★ In June, 2006, Blackstone entered into a definitive agreement with Cendant Corporation to acquire Travelport, its travel distribution services business for about $4.3B in cash. Travelport includes the Orbitz travel reservation website used by consumers, the Galileo computer reservations system used by airlines and thousands of travel agents, Gulliver’s wholesale travel business, and numerous other and solutions.

★ Also in June, 2006, Blackstone teamed up with Canadian property firm Brookfield Properties to acquire US office REIT Trizec Properties. Blackstone and Brookfield valued Trizec at $8.9 billion.

★ Since April, 2006, Blackstone is a major shareholder (4.5%) of Germany's Deutsche Telekom.

★ In March, 2006, Blackstone announced it intended to acquire CarrAmerica Realty Trust for $5.6 billion. CarrAmerica owns stakes in 285 upscale office properties throughout the US.

★ In February, 2006, Blackstone announced it would purchase Meristar Hospitality Corporation and its 57 hotel assets for $2.6B. Meristar's additional 10 Florida resorts (which Blackstone announced it would acquire separately several weeks before buying the entire company) were relaunched as members of the LXR brand.

★ In January, 2006, Blackstone closed on its $3.4 billion previously announced acquisition of La Quinta Corporation, an owner, manager, and franchiser of limited service hotels under the La Quinta Inns, La Quinta Inns & Suites, and Baymont Inn & Suites brands. In March, 2006 Blackstone announced it would sell the Baymont Inn brand to the Cendant Hotel Group and re-brand Baymont's existing hotels as La Quintas.

★ In June, 2005, Blackstone acquired Wyndham International for $3.2 billion. The Wyndham brand and management business was sold to Cendant Corp and 14 full-service Wyndham hotels located primarily in urban locations were sold to Columbia Sussex, a private hotel ownership and management business based outside Cincinnati. The 21 hotels that remained consisted of Wyndham's prized resort assets and included such properties as El Conquistador Resort & Spa in Puerto Rico, The Reach Resort in Key West, FL, and Carmel Valley Ranch in Carmel, CA. These assets were converted to the LXR brand. Summerfield Suites, Wyndham's extended stay offering was sold to Global Hyatt and renamed Hyatt Summerfield Suites.

★ In October, 2004, Boca Resorts, Inc. agreed to be sold to Blackstone for $1.25 billion. Boca Resorts owned and operated five resort properties in Florida that were all transitioned to the LXR Luxury Resorts brand.

★ In August, 2004, Blackstone paid $800 million to acquire Prime Hospitality. Prime's AmeriSuites brand was quickly sold to Global Hyatt and has since been reborn as Hyatt Place. Thirty-seven Wellesley Inns were converted to the Extended StayAmerica brand and the Prime Hotel Saratoga Springs was renamed The Saratoga and joined the LXR Luxury Resorts brand.

★ In March, 2004, its major affiliate, ''Blackstone Real Estate Partners'', paid $1.9 billion to acquire ''Extended StayAmerica'' (ESA). ESA has since been combined with Blackstone's previously-owned Homestead Village brand and rechristened Extended Stay Hotels.

Notable current and former employees

Politics and public service:

★ The Right Honourable Brian Mulroney- Former Prime Minister of Canada

★ Jeffrey Garten - Former Undersecretary of Commerce for International Trade; Economist; Former Dean of the Yale School of Management.

★ Antony Leung - Former Financial Secretary of Hong Kong

★ David Stockman - Member of the U.S. House of Representatives; Director of the Office of Management and Budget.

See also

★

References

1. [1]
2.
3. Blackstone to Acquire Hilton Hotels for Billion
4.
5. Blackstone files for billion IPO
6. U.S. private equity group buys Tussauds Group

External links

★ The Blackstone Group official website

★ Stephen A. Schwartzman's many connections in the business world

★ LXR Luxury Resorts

★ Extended Stay Hotels

★ The SLZ Group AG

★ Wellesley Inn & Suites

★ Private Equity Search Engine

★ New York Times, March 2007: Blackstone Said to Prepare for I.P.O.

★ The Blackstone Group IPO

★ Businesswire.com, 2006: Equity Office Agrees to be Acquired by The Blackstone Group A report on the largest private equity deal to date.

Company datasheet

★ Yahoo! - The Blackstone Group LP Company Profile