King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone

Vibrant gold lettering set against the black and white of Grand Central Station catches the reader and brings a grand introduction to a well written, exhaustively researched and highly informative book by David Carey and John Morris. Though focused on Blackstone Group and its founders, Steve Schwarzman and Pete Peterson, private equity, its growth and importance in the America's financial architecture for the last twenty-five years is the book's centerpiece. The authors are well versed in the language of private equity and take the time to explain the lingo and structure of many of the deals, Blackstone's mother's milk. Especially interesting is the Celanese AG take over and how this American firm's ingenious risk taking and financial legerdemain avoided the staid German corporate laws and brought about its rebirth in America. Tony James' hiring as the new and needed CEO demonstrated Schwarzman's ability and flexibility to allow the stage to be shared by others for the good of the company and its partners. Blackstone's IPO and its telling fascinates as well. Avoiding the gushing of many business writers who focus on Wall Street's limousine lifestyle, Carey and Morris focus on the business of private equity by dissecting the many deals, and, by doing so, justifying private equity's importance in this country's fortunes and future.

I purchased this book to better understand more about private equity (PE) after I purchased a position in Blackstone. The authors reveal (in this dry read for the layman) historically what happened behind the financial revolution and reveal how Blackstone and PE changed forever the game of financing and Wall Street. For the “Baby Boomer” the book takes you back to the mid-70s and testifies to the history of the Leverage Buy Out (LBO). It coalesces with companies, people, and tactics used to gain control of everyday companies. It appears this Merger and Acquisition (M&A) hostile takeover era sometimes has led to many corporate boards of today buying back their stock and consistently increasing dividends to keep shareholders satisfied. Additionally, it appears although the take-over wave of the 80s may have been ignored by many of us; the scandal of Drexel Burnham Lambert and the Milken junk bond adventures are remembered that led to his imprisonment. I read this book right after “The Smartest Guys in the Room” by McLean and Elkind and as that work this one is a thorough examination of another corporate finance subject, private equity. In fact the authors spend some time simply explaining terms even the difference between PE versus venture capitalist which I originally thought were the same. “The story of Blackstone parallels that of PE and its transformation from a niche game played by a handful of financial entrepreneurs and upstart firms into an established business of giant institutions backed by billions of public pension money, and other mainstays of the investment world.” This compelling look at this little understood Wall Street world assisted me in understanding my investment selection.

An exceptional book on Schwarzman and Blackstone. Yes, he's a billionaire and had a 60th birthday party that was over the top and defined the height of private equity. Yes, he had a running feud with Henry Kravis of KKR. But there is so much more about this great success story such as his background at Lehman as well as very unique relationship with founder Pete Peterson who currently spends great time and wealth drawing attention to the debt crisis in America. If you have a background in finance this is a great book but it's written simply enough that non finance people would understand the concepts and greatly enjoy the read also. Is he a great American or just a wealthy guy who stepped on toes to make it to the top? You read the book and decide.

If you are looking for a history of the company and its rise to the forefront of Wall Street titans, this is the book. The authors had incredible access such as two years of interviews with Schwarzman himself. They exhaustively go through each deal, the personalities behind them, the infighting and the external negotiations that allowed Blackstone to separate itself from the rest of the pack. Considering the privileged access, I thought the authors criticized the firm and its leaders when appropriate. If you are looking for more of a general finance book or a thrilling read, this is not that book. Barbarians at the Gate is better for pure entertainment. Do not expect the same sort of roller coaster here but do expect a well written and comprehensive summary of the good and the bad within the company. I also do like the authors' strong defense of private equity in general. They do write for a publication called The Deal so they are biased but they provide coherent and important arguments showing the importance of strong investor control in the functioning of well managed companies.

Love this book, very good read on leverage

What a gripping read! The insight and journey from the 1980s to now was a trip down memory lane. The wealth and size of investments is repulsive and it seems success is measured by hard cash and nothing else. Nothing wrong with that but makes for a lack of interesting characters to be inspired by. That said, balls of steel are evident in times of crisis! Certainly demonstrated the zero tolerance to mediocrity in performance-a shame not more evident today in business. The book is really well written, captivating and full of facts and quotes. I could read it again as there is so much to take in.

Nice

All the anecdotes and stories found in this book are really inspiring and gives you a big understanding about the private equity industry.

KING OF CAPITAL is written for everyone, in simple language without the financial jargons. It is organized in progressive chapters and gives the readers greater appreciation on the industry and the two men behind it all. Entertaining and insightful reading.

Well written. I liked the derails of all the deals.