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Above it all…

images-21.jpegIs there any other news other than the Blackstone IPO this morning? Or as the folks at PE Week write (fueled by a few Red Stripes, which seems an odd choice for getting through a dense S-1) “Blackstone, Blackstone, Blackstone”. Several footnoted regulars who pored through the filing (presumably without the help of Red Stripe) brought this to my attention on p. 176:

Mr. Schwarzman owns an airplane and Messrs. Schwarzman and Peterson jointly own a helicopter that we use for business purposes in the course of our operations. Messrs. Schwarzman and Peterson paid for the purchase of these aircraft themselves and bear all operating, personnel and maintenance costs associated with their operation. The hourly payments we made to Mr. Schwarzman and Mr. Peterson for such use were based on current market rates for chartering private aircraft. We paid $1,544,320, $1,037,925 and $1,032,170 to Mr. Schwarzman in 2006, 2005 and 2004, respectively, for the use of his airplane and we paid $158,500, $306,210 and $198,905 to Mr. Schwarzman and Mr. Peterson in 2006, 2005 and 2004, respectively, for the use of their jointly-owned helicopter. As a privately-owned firm, we have initially incurred or made payments for certain personal expenses on behalf of Messrs. Schwarzman and Peterson, which expenses were reimbursed by the executives. The maximum amounts outstanding under these arrangements in 2006 were $906,972 for Mr. Schwarzman, $350,878 for Mr. Peterson and $120,731 for Mr. James. No such amounts remain outstanding and the firm will no longer incur or make similar payments in respect of personal expenses.

There’s obviously lots of other interesting things in there — like the organization chart on p. 62 that shows exactly where investors in Blackstone’s IPO will rank (hint: not very high). As the WSJ notes in its story (behind a wall): “Blackstone made clear that public shareholders will have little, if any, say in its decisions.” And, there was, of course, the (very large) numbers: income of $6 billion over the past five years.

But there was also plenty of stuff still missing — stuff that will no doubt come out in the amended filings over the next few weeks or months.