Blackstone float raises $4.13 billion

The partial stock market listing of US private equity giant Blackstone, that will see its boss Steve Schwarzman receive a bumper sum, has raised $4.13 billion.

The 13.2-per cent stake in the company at $31 at the higher end values the private equity firm at about $33.5 billion. The Chinese State Investment Company had bought a 10-per cent share in the business for £3 billion in May. (See: China buys $3 billion Blackstone stake)

China''s investment in Blackstone has raised national security concerns among policy makers in the US. Some US politicians also wanted to see Blackstone''s float to be delayed to enable them to introduce a new law to increase the tax paid by private equity firms. At present PE firms like Blackstone can use a loophole to pay significantly less than more typically structured businesses.

Reports say that Blackstone''s chief executive and co-founder Stephen Schwarzman will walk away from the float with a 24-per cent stake in the business worth about $7.7 billion.