Retained Learnings from the books we read.
Reason for Recommendation:
This book follows the journey of Blackstone founders Steve Schwarzman and Pete Peterson, and how with just one secretary they were able to build a powerhouse that weathered the financial crisis successfully even as other institutions crumbled. This book argues that private equity provides crucial capital and a unique, transitional form of ownership which allows companies to undertake necessary changes. By better understanding the history of Blackstone and its peers, you can better understand the motivations of similar companies in China as well as future opportunities and challenges.
About the Authors:
David Carey is a reporter at “Bloomberg News” where he focuses on private equity. He previously spent 13 years covering the industry for “The Deal”, and has also served as editor for “Corporate Finance” and written for Fortune.
John E Morris is an editor for Bloomberg’s Mergers, Private Equity, and Distressed & Bankruptcy newsletters. He was previously Editor with “Dow Jones Investment Banker” and “The Deal”.
Collectively, the two authors have over 40 years of experience covering the private equity industry.
Carey and Morris show how Blackstone and other private equity firms transformed themselves from gamblers, hostile-takeover artists, and ‘barbarians at the gate’ into disciplined, risk-conscious investors. Whereas the financial establishment- banks and investment bankers such as Citigroup, Goldman Sachs, and Merrill Lynch- were recklessly assuming risks, leveraging up to ridiculous levels and driving the economy to the brink of disaster.
This book shows how Blackstone and private equity will drive the economy and provide a model for how financing will work in the years to come.