Writing about Wall Street for Time Magazine is a bit like writing about Williamsburg nightlife for the New York Times. Most of your readers have no idea what you’re talking about, so you can get away with almost anything. It probably gets a bit frustrating to know that none of the people you write about ever notice you but as a trade-off they never write angry letters to your editors either.
Still, Mike Kinsley’s take on the how Blackstone’s business works is pretty much just as clear as what Blackstone describes in its prospectus:
What do Schwarzman and Blackstone do for all this money? Oh, this and that, but mainly they buy publicly traded companies, take them private (that is, replace the public stockholders with private equity from institutions and rich individuals), do some abracadabra that increases the companies' value and then take them public again.
We'd say that "it's all done with smoke and mirrors" but the drug references are getting a bit heavy today.
Abracadabra for Sale [Time Magazine]