Steve Schwarzman, cofounder and CEO of Blackstone, manages his vast fortune through a complex and secretive operation in addition to his business holdings. Schwarzman, with a net worth estimated at $57 billion, is one of the wealthiest individuals globally and a major figure in business, politics, and philanthropy.
Early Advice and Career Path
In his book What It Takes, Schwarzman recounts advice from Averell Harriman, a prominent figure and Skull and Bones alumnus, who urged him to build wealth if he wanted a political career. Schwarzman took this advice, cofounding Blackstone in 1985 with Pete Peterson. Blackstone has since grown into the largest alternative asset manager globally, with over $1 trillion in assets.
Wealth Management Through Blackstone
The majority of Schwarzman’s wealth is tied to Blackstone. He owns a 19% stake in the company, valued at $41.7 billion. In 2023, he received $777 million in dividends, making him the largest individual investor in both Blackstone’s stock and funds. However, Schwarzman also relies on a private family office named Pennypack to manage his personal and financial affairs.
Pennypack: A Secretive Family Office
Pennypack, named after a creek near Schwarzman’s childhood home, was incorporated in 2018. It is run by former Blackstone executive John Magliano and employs over 100 staff, including personal assistants, housekeepers, and security personnel. The office handles property management, charitable donations, and Schwarzman’s extensive real estate portfolio, which includes luxury homes in Nantucket, Newport, and England. Schwarzman also uses Pennypack for political fundraising and philanthropic activities.
Philanthropy and Influence
Through the Stephen A. Schwarzman Foundation, he has made significant donations, including $350 million to MIT for AI research and $220 million to Oxford University. His charity supports projects in education and the humanities, and he also runs the Schwarzman Scholars program in China to foster international relations.
Role in Politics
A Republican donor and supporter of Donald Trump, Schwarzman has maintained a significant influence in politics. His family office has assisted with fundraising events, such as those for Senator-elect Tim Sheehy.
Family Office Trends
Family offices like Pennypack have become essential tools for managing the fortunes of the ultra-wealthy. Experts note that these entities are tailored to the unique needs of their families, blending financial management with concierge services.
Schwarzman’s approach to managing his wealth illustrates how billionaires integrate business acumen, personal life, and philanthropic endeavors, solidifying their influence across multiple sectors.
