Stephen Allen Schwarzman (born February 14, 1947) is an American billionaire businessman and investor. He is the chairman and CEO of The Blackstone Group, a leading global private equity firm he co-founded in 1985 alongside Peter G. Peterson. Under his leadership, Blackstone has grown into the largest alternative investment firm in the world.
Early Life and Education
 | |
| Born | February 14, 1947 Philadelphia, Pennsylvania, US |
| Education | Yale University (BA) Harvard University (MBA) |
| Occupations | |
| Political Party | Republican |
| Spouse | Ellen Philips (1971–1990) Christine Mularchuk Hearst (1995–present) |
| Children | 3 |
Stephen Schwarzman was born into a Jewish family in Huntingdon Valley, Pennsylvania, to Arline and Joseph Schwarzman. His father owned Schwarzman's, a former dry-goods store in Philadelphia, and was a graduate of the Wharton School.
At the age of 14, Schwarzman started his first business, a lawn-mowing operation. He employed his younger twin brothers, Mark and Warren, to do the mowing while he focused on bringing in clients.
Schwarzman attended the Abington School District and graduated from Abington Senior High School in 1965. He later attended Yale University, where he was a member of the prestigious secret society Skull and Bones and founded the Davenport Ballet Society. After graduating in 1969, he briefly served in the U.S. Army Reserve before earning his MBA from Harvard Business School in 1972.
Investment Career
Stephen Schwarzman began his financial services career at Donaldson, Lufkin & Jenrette (DLJ), an investment bank later acquired by Credit Suisse in 2000. Following his graduation from Harvard Business School, he joined Lehman Brothers, where he quickly advanced to become a managing director at age 31 and later led the firm's global mergers and acquisitions division.
In 1985, Schwarzman co-founded The Blackstone Group alongside his former boss, Peter G. Peterson. Initially specializing in mergers and acquisitions, Blackstone expanded over the years into business acquisitions, real estate, direct lending, and alternative assets. As of September 30, 2024, the firm managed approximately $1.1 trillion in assets under management (AUM).
When Blackstone went public in June 2007, regulatory filings disclosed that Schwarzman had earned $398.3 million in 2006. During the IPO, he sold part of his stake for $684 million, retaining a holding valued at $9.1 billion. His compensation continued to rise in subsequent years:
- 2007: $350 million
- 2008: $702.4 million (partly due to stock awards)
- 2015: $734.2 million
- 2016: $425 million
- 2017: $786 million
- 2022: $253 million (the highest-paid CEO in the U.S. that year)
Political and Economic Views
Political Affiliation and Beliefs
Stephen Schwarzman is a Republican with political views favoring lower taxes, reduced government spending, and reproductive rights. He has been an influential donor and fundraiser for the party, having raised $100,000 for George W. Bush's political campaigns.
Controversial Remarks and Fiscal Negotiations
In August 2010, Schwarzman stirred controversy when he compared the Obama administration's proposal to raise taxes on carried interest to Hitler's invasion of Poland in 1939, stating:
"It's a war. It's like when Hitler invaded Poland in 1939."
He later issued an apology for the analogy. Despite this, in 2012, President Barack Obama personally reached out to Schwarzman for assistance in brokering a fiscal agreement with congressional Republicans to avoid a fiscal cliff. Schwarzman helped negotiate a deal that raised $1 trillion in additional revenue through higher taxes, closing loopholes, and ending deductions. Obama later expressed formal support for Schwarzman's educational initiative, the Schwarzman Scholars program.
Presidential Endorsements and Fundraising
Schwarzman endorsed and fundraised for Mitt Romney during the 2012 presidential campaign. However, during the 2016 Republican primary, he refrained from endorsing any specific candidate but expressed a preference for a centrist GOP nominee capable of appealing to independent voters.
By 2016, he leaned towards Donald Trump over Ted Cruz, citing the need for a unifying presidency rather than ideological extremes. He also previously supported Marco Rubio with a donation in 2014.
Role in the Trump Administration
After Trump's election, Schwarzman played a key role in advising the administration on economic policy. He organized a team of corporate executives, including Jamie Dimon (JPMorgan Chase), Bob Iger (Disney), and Jack Welch (GE), to advise Trump on job creation and economic growth. He was named Chairman of the President's Strategic and Policy Forum in 2017, though the forum was disbanded following multiple resignations after Trump's controversial remarks on the Charlottesville rally.
Despite criticism for his involvement with the Trump administration, Schwarzman defended his role, stating that influence and sound advice were essential, even if controversial.
Capitol Riot and Post-2020 Election
In private, Schwarzman condemned the January 6 Capitol attack as an insurrection and an affront to democratic values, though he stopped short of directly criticizing Trump.
Following the 2020 election, Schwarzman donated:
- $15 million to the Senate Leadership Fund (linked to Mitch McConnell)
- $3 million to Trump's America First Action PAC
- $33.5 million total to Republican candidates, including some who opposed certifying the election results.
Shift in 2022 and 2024
By 2022, Schwarzman publicly distanced himself from Trump, stating it was time for the Republican Party to support a new generation of leaders. However, by 2024, he shifted back, announcing support for Donald Trump, citing a need for "change.
Wealth
Stephen Schwarzman has consistently been among the wealthiest individuals globally.
- October 2022: Net worth of $32 billion (Bloomberg Billionaires Index).
- April 2024: Net worth of $39 billion (Forbes).
Recognitions:
- Named among Bloomberg's 50 Most Influential People in 2014 and 2016.
Philanthropy
Educational Contributions:
- Abington Senior High School: Donated a football stadium in 2004 (Stephen A. Schwarzman Stadium).
- New York Public Library: Contributed $100 million in 2008 for expansion, leading to the 42nd Street building being renamed the Stephen A. Schwarzman Building.
- Schwarzman Scholars (2013): Donated $100 million to create a prestigious scholarship at Tsinghua University, China, modeled after the Rhodes Scholarship. The program aims to foster China-West relations but has faced scrutiny for links to Chinese Communist Party organizations.
- Yale University: Donated $150 million in 2015 for a campus center in the historic Commons dining hall.
- MIT (2018): Donated $350 million to create the Schwarzman College of Computing.
- University of Oxford (2019): Donated £150 million for the Schwarzman Centre for the Humanities, set to open in 2024–25.
Healthcare and Animal Welfare:
- New York-Presbyterian Hospital: Serving on the Board of Trustees since 2016.
- Animal Medical Center of New York (2021): Donated $25 million, renaming it the Stephen and Christine Schwarzman Animal Medical Center.
Sports Contributions:
- USA Track and Field Foundation (2020): Pledged $8 million for the Tokyo 2021 and Paris 2024 Olympics.
The Giving Pledge:
- In February 2020, Schwarzman joined the Giving Pledge, committing to donate the majority of his wealth to charitable causes.
Personal Life
Marriages and Family:
- First wife: Ellen Philips (married 1971, divorced 1990)
- Children: Teddy Schwarzman (film producer) and Zibby Owens (writer & podcaster).
- Second wife: Christine Hearst (married 1995), an intellectual property lawyer with one child from a previous marriage.
Residences:
- Lives in a duplex at 740 Park Avenue, previously owned by John D. Rockefeller Jr.
- Known for lavish birthday parties, including multimillion-dollar celebrations for his 60th and 70th birthdays.
Water Usage Controversy:
- 2011: Listed among Palm Beach's top water users, consuming 7.4 million gallons during a drought, compared to the average 108,000 gallons per resident.
References
- Stephen A. Schwarzman (2025) Blackstone. Available at: https://www.blackstone.com/people/stephen-a-schwarzman-2/ (Accessed: 09 January 2025).
- Stephen A. Schwarzman (no date) Simon & Schuster. Available at: https://www.simonandschuster.com/authors/Stephen-A-Schwarzman/2117378635 (Accessed: 09 January 2025).
- Stephen A. Schwarzman - the giving pledge (no date) Giving Pledge. Available at: https://givingpledge.org/pledger?pledgerId=398 (Accessed: 09 January 2025).
- Stephen Schwarzman (no date) Forbes. Available at: https://www.forbes.com/profile/stephen-schwarzman/?list=rtb%2F (Accessed: 09 January 2025).
