Financial Engineering

Blackstone Group has spent most of today trading below its IPO offering price, but it seems that some institutional buyers are still willing to pony up $31 per share.

The firm’s underwriters have sold an additional 20 million shares via a so-called greenshoe provision, which netted around $620 million. Among the beneficiaries were Blackstone chief Steven Schwarzman, who brought home another $234 million, and Blackstone president Tony James, who netted $191 million.

None of this is unusual (save for the massive sums), but is nonetheless an apt reflection of how many private equity pros are reputed to think: It doesn’t matter how a company actually does, but only how you structure the deal.