PE HUB Wire Highlights, 9.17.19


Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Accel-KKR close $1.38B deal for more time to manage 2008 fund; Linden, Audax invest in Frazier’s HOPCo; Banks losing $280M in payments revenue

Morning, Hubsters. It’s a beautiful day in NYC.

Stephen Schwarzman — yes, that Steve — recently spoke to us about his new book, What It Takes. The book is all about lessons the Blackstone CEO has learned in his legendary career on Wall Street, as a private equity executive and as a philanthropist.

Schwarzman, in the book, talked at length about how hard it was to raise that first fund. In the 1980s, Schwarzman was well-known on Wall Street because of his success at Lehman Brothers. Together with Peter Peterson, former chairman and CEO of Lehman, the duo had a hard time raising Blackstone’s Fund I. “There is no getting around we were one for 17 in terms of success with investors,” Schwarzman told Buyouts. In What it Takes, he goes into detail about the struggles he endured raising that first fund and his advice to succeed.

“The rejections were horrible and humbling,” Schwarzman said in What it Takes. “The setbacks seemed endless. We met people who lied to us or never showed up for appointments even after we had traveled across the country.”

You know how this story ends. Blackstone in April had raised $22 billion for its latest buyout fund. Read our 5Q with Schwarzman here.

What’s not in the 5Q? Schwarzman talked about his love of tennis but said he no longer plays after hurting his index finger a year ago. He now fast walks on a treadmill 50 minutes a day. He also gave some advice to new applicants trying to break into the private equity industry. “One of the biggest errors new applicants can make is just only talking about private equity and appearing to be incredibly narrow. Ultimately you have to relate to other human beings,” he said. He cautioned against being “just a statistician” since everyone who applies can do that.

DealsOak Hill Capital has emerged as the winner of Genstar Capital‘s sale of Mercer Advisors. It’s unclear how much Oak Hill is investing.

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