No, instead they’re a group of greedy, Johnny-came-earlies taking advantage of the outrageously loose money environment today. I don’t use the term “greedy” in a negative sense, however, despite the humorous, less-than-favorable profile of Schwartzman that was in the WSJ several days ago. Clearly these guys were innovators and have done well – I don’t begrudge them their billions. But I think the days of outsized returns by the large PE groups like Blackstone (and KKR, TPG, etc.) have passed. They’ve got the same problem as Warren Buffett: way too much capital chasing too few decent deals. At some point, the law of large numbers cripples even the financial geniuses. I think the music’s stopped for the big PE players but they’re all still dancing. But, hey, if they can monetize a part of their equity on the backs of dreamers (the IPO participants), why not?
