Blackstone Group IPO

Asset manager / Financial advisor in $4.13B IPO

Sells common units representing limited partner interests

133.3 million units sold at $31.00 per unit

Blackstone press release 6.21.07

China investment company also invests $3.0B

Blackstone press release 5.20.07
Investment agreement (China state agency) 5.22.07

Follows successful IPO of Fortress Investment Group

See Fortress Investment Group IPO

Blackstone Group

Underwriters

Morgan Stanley Global coordinator
Citigroup Global coordinator
Merrill Lynch
Credit Suisse
Lehman Brothers
Deutsche Bank
Expanded to include 11 other firms as co-managers

Counsel

Blackstone: Simpson Thacher
Underwriters: Skadden Arps

Developments

AFL-CIO criticizes Blackstone IPO

AFL-CIO letter 5.15.07
Claims that Blackstone should be treated as an investment company under the 1940 Act

Amended S-1 (filed on June 11) revealed details of pro forma ownership

Co-founder Stephen Schwarzman to own 23% (worth more than $7.5B), even after receiving a $650+mm cash distribution upon close of the IPO
See WSJ article 6.13.07
See Pro forma ownership table
Schwarzman also received cash distributions of
$398.3mm in 2006
See Summary compensation table

Senate tax proposal would tax Blackstone as a corporation instead of as a partnership

See Senate Tax Proposal immediately below

Senate Tax Proposal

Senate tax proposal would tax Blackstone as a corporation instead of as a partnership

Introduced by Senate Finance Committee on 6.14.07
Committee press release
Backed by Senators Baucus, Chairman (D-Mont.) and Chuck Grassley, Ranking Republican Member (R-Iowa)

New proposal would accelerate effective date

Committee statement 6.20.07

Proposed legislation

Text
Blackstone summary 6.15.07 Free writing prospectus

Commentary

Kirkland & Ellis 6.18.07
Willkie Farr 6.19.07

S-1 Amendment #9 6.21.07 Hyperlinked

Form S-1, as amended

Top
Summary

Organizational structure

Ownership chart

Select disclosures:

Possible changes to taxation of carried interest Page 36
Possible taxation as a corporation Page 37
1940 Act regulation Page 40
1940 Act regulation Page 60
Taxation as a partnership Page 63
Summary compensation table Page 197
Pro forma ownership table Page 214

Blackstone Group LP - Limited partnership agreement

Agreement TOC

Registration filings

Form S-1 3.22.07
Amendment #1 5.01.07
Amendment #2 5.21.07
Amendment #3 6.04.07
Amendment #4 6.11.07
Amendment #5 6.14.07
Amendment #6 6.15.07
Amendment #7 6.18.07
Form 8-A 6.19.07
Amendment #9 6.21.07
Form S-8 6.21.07
Effectiveness 6.21.07
Final prospectus 6.25.07

Exhibit filings

Select Exhibit Filings

Limited partnership agreements

Senior management agreements

Founding member agreement (Schwarzman) 10.10
Founding member agreement (Peterson) 10.11
Senior managing director agreement (Form) 10.12

Other agreements

Tax receivable agreement 10.6
Exchange agreement 10.8
Registration rights agreement 10.9
2007 equity incentive plan 10.10
JP Morgan credit agreement 12.22.03 10.13
Investment agreement (China state agency) 5.22.07 10.14
Underwriting agreement 1.1

SEC Comment Letters

SEC Comment Letters

Form S-1 4.19.07
Amendment No. 1 5.11.07
Amendment No. 2 5.30.07
Amendment No. 3 6.07.07
Amendment No. 3 6.08.07
Amendment No. 4 6.14.07

Company Responses

Final Prospectus

Click here to access EDGAR filing

Select Blackstone Investments

Related Topics

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