Float to net buyout chief $440m

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The chief executive of private equity company Blackstone will receive about $450m (£224m) by selling off some of his stake in the firm, it has emerged.

Stephen Schwarzman will retain 24% of the company, a stake expected to be worth about $7.7bn (£3.8bn) when Blackstone floats later this year.

It has also been revealed that he was paid about $400m last year.

Co-founder Peter Peterson will get $1.88bn and retain 4% of Blackstone when it goes public.

Blackstone also said its private equity fund held about $19.6bn - making it the world's second-largest behind that of investment bank Goldman Sachs.

The details were released ahead of the flotation - which the company expects will raise about $4bn by making about 10% available to investors.

Shareholders will own a stake in the management company rather than the portfolio of companies in which it has invested.

They will have only limited voting rights and no right to elect the general partner or directors.

Separately the Chinese government has agreed to pay $3bn (£1.5bn) for a 10% stake.

Analysts say this will give Blackstone a head start in Chinese takeover deals and allow China's government to tap into the global private equity boom.