Blackstone grew from an advisory business founded in 1985 by Stephen A. Schwarzman and Peter G. Peterson into an investment manager spanning private equity, real estate and credit. In results released in October 2025, the firm reported approximately $1.24 trillion in assets under management at September 30.
Schwarzman put Blackstone’s initial assets at $400,000 in the firm’s 2007 annual report. That starting balance sheet was distinct from assets under management, which measure the capital and investments overseen through the firm’s investment businesses.
Advisory beginnings and the first fund
Both founders previously worked at Lehman Brothers. Schwarzman worked in mergers and acquisitions, while Peterson served as chairman and chief executive. Blackstone began as an advisory business, providing companies with advice on transactions and strategic decisions.
In 1987, Blackstone established its first private equity fund, Blackstone Capital Partners I. Later company filings record more than $800 million in commitments to the fund. The investment business subsequently broadened to include real estate, credit and other investment strategies.
The financial crisis and its aftermath
Blackstone’s 2010 annual report described substantial pressure on its real estate business during the financial crisis. Its account of the period following the 2008 crisis included efforts to extend debt obligations and investments in distressed assets.
The firm said it extended debt at Hilton Worldwide and Equity Office Properties in 2010. It also reported deploying nearly $5 billion in new real estate capital that year, with most invested in bankruptcies, recapitalizations and debt acquisitions.
In his shareholder letter accompanying the report, Schwarzman emphasized capital preservation and a long-term investment approach. He identified accountability, integrity and teamwork among the firm’s core values.
A broader investment business
By the third quarter of 2025, Blackstone reported four business segments: real estate, private equity, credit and insurance, and multi-asset investing. Its revenue included management fees, performance-related income and income from its own investments.
Blackstone described itself as the world’s largest alternative asset manager. Its stock-market capitalization exceeded $100 billion on October 31, 2025, a separate measure from the assets it managed.
The firm also presented information from its holdings as an advantage in investment decisions. In a January 9, 2025 commentary written with Kristin Roesch, Ken Caplan said data from portfolio companies, real estate assets and credit issuers helped Blackstone identify emerging patterns. He cited leasing and employment trends and surveys of portfolio-company chief executives among those inputs.
