Street Capitalist: Event Driven Value Investments

The Schwartzman thing is ridiculous. He didn't receive that as compensation. When they went public, he converted his equity in BX LP into prefered units that vest over 4 years. That $700m is just the transfer of a prefered unit into a common, essentially. The only difference between the two is a PERSONALLY agreed upon serveral year vesting period (beyond the requirements of SEC required lock-ups) vests. Essentially moving from self-appointed illiquidity to liquidity. It is a return on capital.

The Schwartzman thing is ridiculous. He didn't receive that as compensation. When they went public, he converted his equity in BX LP into prefered units that vest over 4 years. That $700m is just the transfer of a prefered unit into a common, essentially. The only difference between the two is a PERSONALLY agreed upon serveral year vesting period (beyond the requirements of SEC required lock-ups) vests. Essentially moving from self-appointed illiquidity to liquidity. It is a return on capital.

I figured there was something going on with that. Thanks for the clarification.

The Schwartzman thing is ridiculous. He didn't receive that as compensation. When they went public, he converted his equity in BX LP into prefered units that vest over 4 years. That $700m is just the transfer of a prefered unit into a common, essentially. The only difference between the two is a PERSONALLY agreed upon serveral year vesting period (beyond the requirements of SEC required lock-ups) vests. Essentially moving from self-appointed illiquidity to liquidity. It is a return on capital.

I figured there was something going on with that. Thanks for the clarification.