Steve Schwarzman, co-founder and CEO of Blackstone, one of the largest alternative asset managers in the world, has amassed a $57 billion fortune. While he has previously referred to Blackstone as his family office, it has come to light that he operates a separate family office named Pennypack. Managed by former Blackstone executive John Magliano, Pennypack oversees Schwarzman’s personal finances, properties, and charitable initiatives.
The Origins of Pennypack
The name “Pennypack” reflects Schwarzman’s upbringing in the Philadelphia area, where his family lived near Pennypack Creek. Established as Pennypack LLC in 2018, the family office manages an extensive portfolio of properties, including mansions in Nantucket, Newport, and England. Notably, Schwarzman’s Newport mansion is slated to be converted into a museum upon his death.
Schwarzman’s Wealth and Investments
A significant portion of Schwarzman’s wealth is tied to his 19% stake in Blackstone, valued at $41.7 billion. He also receives substantial dividends from the firm, totaling $777 million in 2023. Although Pennypack primarily handles Schwarzman’s personal affairs, it is not actively involved in investment management, as Schwarzman directly invests in Blackstone’s funds.
Operations and Staffing
Pennypack employs over 100 individuals, ranging from housekeepers to legal advisors. Its operations also include managing Schwarzman’s charitable efforts, such as the Stephen A. Schwarzman Foundation, which has funded major initiatives like MIT’s AI and computing center and Oxford’s Centre for the Humanities.
Philanthropy and Political Involvement
Schwarzman is a prominent Republican donor and has hosted fundraisers through Pennypack. The office also provides logistical support for his philanthropic endeavors, including the Schwarzman Scholars program at Tsinghua University in Beijing.
Family Office Model
Pennypack exemplifies the modern family office, which blends financial management with concierge-like services. This model, although unique to each family, reflects the growing complexity of managing vast personal wealth and influence.
