Blackstone post-IPO trading values firm at $37bn

Shares in Blackstone closed today on the New York Stock Exchange, up 13 percent to $35 per share. The first-day trading values Stephen Schwarzman’s interest in the firm he co-founded at $8.5bn.

Share units in The Blackstone Group debuted today on the New York Stock Exchange, closing at $35 per share, up from their $31 per-share pricing.

The 19 percent surge values Blackstone at approximately $37 billion. This means Blackstone is valued at roughly 42 percent of its $88 billion in assets under management, a slight premium to the valuation as a percentage of AUM that Fortress Investment Group received on its IPO earlier this year.

The Blackstone IPO represents a 12.3 percent ownership in the management company of the alternative investment giant, founded by Stephen Schwarzman and Peter Peterson in 1985. Schwarzman continues to have a 23 percent stake in the firm, which is currently valued at nearly $8.5 billion.

Demand for shares in Blackstone came most significantly from non-US investors, according to reports. This trend was furthered by an unexpected $3 billion investment in the firm from the People’s Republic of China, a deal that closes concomitant with the IPO.

The Blackstone IPO has become a political lightning rod in Washington DC, where lawmakers have lined up to voice concern about its tax structure and the investment from China.

The IPO is being closely watched by many other top GPs, including reportedly the founders of Kohlberg Kravis Roberts.