Steve Schwarzman's Blackstone Group is a behemoth in private equity, real estate, credit and hedge fund investing, thanks to its ability to raise cash from giant pension plans and sovereign wealth funds.
But given the firm's goal of managing $1 trillion in assets by 2026, it's not enough.
The New York-based company, which is scheduled to report fourth-quarter results Thursday, has moved full throttle into luring rich individuals and families — groups with relatively little experience in alternative investments — into choosing its offerings. With more than $70 trillion globally up for grabs, the payoff could be huge — or an expensive waste of time as even the world's biggest wealth managers struggle to keep rich clients.
Leading Blackstone's effort is a former banking analyst who has risen to become one of its key players. During her 12 years at the firm, Joan Solotar has gone from marketing acquisitions to heading the global effort to build out its private-wealth group. In the next decade, she plans to more than quadruple the group's $58 billion in assets, eclipsing the size of entire private-equity firms Blackstone counts as rivals.