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

This is a powerful story explain us a powerful company. Tell us the storty of 25 years of Private Equity (PE) and the most succesfull firm in all times "Blackstone" with Scharzman at front, that show us the adaptability and take advantage of what you have is everything. Blackstone is a good example about "why dinosours disspear and human still here, because the human adapt to change". This a great book, well written, entertaining, and technical.

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.

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.

This book is a fairly quick read that lays out the history of Blackstone and the origins of some of its spinoffs. Overall, I would say this book reads like a reporter's account of the facts of the situation. It does not have anywhere near the level of detail of an insider or someone that had intimate knowledge of the doings or workings of this firm. For that reason, i was a little disappointed with this book as it did not describe what has made this one of the great players in finance. Sure there is discussion of the leadership's obsessions with this or that and some color of the roles some of the senior players had in the direction of the firm, but I struggled to identify what was the critical element, other than the leadership's, or more specifically Schwartzman's, relentless pursuit of success that made this a great firm. It certainly appeared the author relied a great deal or was heavily influenced by Schwartzman's account and as such I was left wanting and believing as with so many other books written by reporters, not industry experts or insiders, that they lacked an understanding of the true dynamic within the organization. In the author's defense, there is a fair amount of criticism of the firm throughout the book. The most critical part revealed the culture of the firm which is described as a revolving door where talented individuals are not nurtured, but sooner or later get frustrated and trade away. Not too unusual on Wall Street, but the author describes this turnover as far more excessive than normal and given some of the talent that left, it is pretty hard to believe Blackstone has achieved all it has given some of these departures. Its a quick read that would be helpful to understand the firm if you are doing business with them, but this certainly would not qualify as a definitive account of this remarkable firm.

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.

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.

Love this book, very good read on leverage

This might be the kind of thing you will like. The writers clearly had access to Steve S, and are being much more positive about him than any other source I have seen (I should say that while I do not know Schwartzman, I know many of the senior people of the pre-2004 Blackstone. While all of them did very well out of the business, none of them were fond of their fearless leader). The authors are also very positive about private equity in general, which makes the book read more like a puff piece than I would have liked. The actual contents are mostly a laundry list of deals, and some of the narrative is fairly insightful, while some just puts one to sleep (they did this, it did not work, they did this, it did work, etc, etc, etc). To summarize: if you are very interested in the private equity business, by all means, read this book, otherwise I am not sure it will keep your attention.

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.