Billionaire investor Steve Schwarzman explains the 'single best decision' he's ever made
What started in 1985 as a tiny advisory business with a mere $400,000 on its balance sheet has ballooned into the industry's top player under his watch, with $368 billion in assets under management.
In the early 2000s, though, the company's rapid growth was starting to get the best of Schwarzman. A master of controlling risk, Schwarzman's determination to vet the company's moves and ensure it didn't overextend started to become a problem, the Blackstone founder explained in an interview with Jason Kelly of Bloomberg Markets (emphasis ours):
That's when Schwarzman, who according to Bloomberg is worth $11.9 billion, made what he considers his best decision ever: hiring someone even smarter than himself who could help him run the company.
It took a couple years, but in 2002 Schwarzman found his ideal candidate in Tony James, who spent 25 years at investment bank Donaldson, Lufkin & Jenrette until it was acquired by Credit Suisse.
It's not hard to fathom what Schwarzman liked so much about James, who was running investment banking and private equity for Credit Suisse. In James, the Blackstone head honcho found he was essentially looking in the mirror.
Here's Schwarzman:
Schwarzman hired James as president to co-run the company, which he says was "probably the single best decision I've made."
It's worked out well for both parties. Blackstone continued its rapid ascent, making James a billionaire in the process.
Schwarzman's full interview with Kelly is worth a read. Check it out at Bloomberg Markets.