Book Review | The King of Capital by David Carey and John E. Morris

The King of Capital by David Carey and John E. Morris

The King of Capital by David Carey and John E. Morris offers a rare, insider’s look into the meteoric rise of Stephen Schwarzman and the private equity giant Blackstone. The book outlines how Schwarzman transformed a fledgling firm into a $500 billion powerhouse while reshaping the private equity landscape.

Carey and Morris do an exceptional job of providing a detailed account of various events that shaped the firm, including the early days when they struggled to raise capital in the aftermath of the Black Monday crash and their timing of the IPO just before the GFC. However, they don’t skip on any details, as they delve deep into various deals and cover the broader sector as leveraged buyouts were born. Beyond transactions, the authors explore Schwarzman’s leadership style, vision, and the culture he cultivated—highlighting his ability to combine ruthlessness with charm.

Three fascinating quotes from the book:

• Blackstone had produced $2.3 billion in profits in 2006 for the firm’s sixty partners, a staggering $38 million apiece. Schwarzman personally had taken home $398 million that year.
• By 2007, private equity was behind one of every five mergers worldwide, and there seemed to be no limit to its ambition.
• Schwarzman had a singular ability to see opportunities where others saw risk—and to move decisively when the timing was right.

Link to Book

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