The article mainly introduces the experience of Stephen Schwarzman and Peter Peterson in investment banking before founding Blackstone Group, one of the world’s largest private equity companies. It focuses on their setbacks and growth in Lehman Brothers, how they finally got together to establish Blackstone after leaving Lehman Brothers, and the initial hardships they faced. The content is informative for understanding the founding background of the renowned investment bank Blackstone and the growth experience of its founders Schwarzman and Peterson in investment banking field.
Frustrations of Peterson and Schwarzman at Lehman Brothers
Peter Peterson was valued at Lehman but later marginalized and ousted by power struggles. Stephen Schwarzman was seen as a natural investment banker but felt betrayed when new management at Lehman changed terms of acquisition. Both faced setbacks at Lehman despite skills and contributions.
How Peterson and Schwarzman teamed up
After leaving Lehman Brothers, Peterson reached out to Schwarzman to start their own firm. Though facing non-compete limitations initially, they both saw the long-term potential.
Early challenges when establishing Blackstone
Despite previous success, Peterson and Schwarzman had to battle legal constraints and give up half their consulting revenue to prior firms per agreements for first 3 years. But they persevered to build Blackstone into the private equity powerhouse it is today.
The article offers a fascinating inside look at Schwarzman and Peterson’s frustrations and forced exits from Lehman Brothers but how they ultimately teamed up to found the massively successful investment firm Blackstone Group after much early adversity, demonstrating how setbacks along the way serve to strengthen skills and ambition.