I am just curious what contributed to such marvellous success of Blackstone as a firm. I mean at least from AUM perspective it is the largest firm and it’s closest competitor Apollo is around $400 billion short. Furthermore everybody is talking about it.
If somebody works there or knows about its story, could you tell me how they achieved such popularity and scale?
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People kept confusing it with BlackRock.
Cause Jon Gray is the goat
BREIT is in trouble. They mark to market on higher end
A few things.
First, they were founded at the right time.
Second, they have demonstrated an actual competence.
Third, they were one of the first and most aggressive private capital firms at expanding beyond their original fund type (pe/vc/lending/etc). They were very early with asset management, albeit they spun off BlackRock way too soon. They were relatively early on REPE.
Fourth, they wanted to get big. Not all PE firms / the leaders of those firms want to be that massive
because Jon Gray says culture is everything over there
Bigger may or may not be better. It's just big. But a few factors:
1. First mover advantage. They're one of the OG players in PE - and probably one of a handful that still survive to this day.
2. BX had a desire to truly build a "business" that extended beyond core PE - so they moved into adjacent asset classes. They are more or less Walmart for Asset Management. Maybe Costco.
3. Significant benefits from scale (operating costs, fundraising, recruitment / retention)
4. Brand
#1 and #2 are 99% of it. SS was extremely early to the game and had a desire to expand heavily outside traditional LBOs. Very visionary and forward thinking but there won't be another BX in this industry IMO solely due to #1/#2 happening in unison.
To your comment about Apollo, believe Brookfield manages $900B+...at least that's what they say on all their marketing materials.
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