July 26, 2021

Blackstone: The Fund That Weighs More Than Goldman Sachs And Morgan Stanley

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Photo credit: Getty Images

Blackstone, the investment fund run by billionaires Stephen Schwarzman and Jonathan Gray, is getting one step closer to conquering Wall Street. On Thursday morning, the company outperformed investment banks Goldman Sachs and Morgan Stanley in market value.

Blackstone’s market cap was $ 69.2 billion on Thursday night, while Goldman Sachs closed at $ 69 billion. Morgan Stanley, after buying online brokerage firm Etrade in February, ended at around $ 65 billion.

Since Thursday, Blackstone’s dominance has proven once again that a few relatively young private equity firms, born in the 1980s, can disrupt the financial system and rob the investment banks that once dominated Wall Street of their power. Indeed, just two years ago Goldman Sachs shares were worth more than twice as much as Blackstone’s, and even three times as much before the 2008 financial crisis.

Blackstone, now the world’s largest private equity firm with nearly $ 600 billion in assets under management, was co-founded by Stephen Schwarzman in 1985. It has been publicly traded for about ten years. With only 2,905 employees worldwide, it is comparable in size to that of a traditional investment bank. However, since the crisis of 2008, Blackstone has multiplied its capital by six, while that of Goldman Sachs and Morgan Stanley has only declined.

This means that despite Goldman Sachs’ history and size (the company was founded in 1869 and employs 38,300 people around the world), stock investors today believe Blackstone is more successful. Morgan Stanley, created by Henry Sturgis Morgan and Harold Stanley in 1935 during the Great Depression, has some 60,431 employees worldwide.

Blackstone walks past Goldman Sachs and Morgan Stanley