Blackstone at Age 30

Josh   Lerner

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Teaching Note | HBS Case Collection | September 2018

Blackstone at Age 30

by Josh Lerner

Abstract

This teaching note is meant to guide in the instruction of HBS No. 316-013 "Blackstone at 30" case. It examines the process of institutionalization and scaling in private equity and alternative investments more generally, looking specifically at how Blackstone's size affects its business model and opportunities for growth. It also explores the process by which Blackstone became a publicly owned company as well as the advantages and disadvantages that public ownership offers to a firm like Blackstone.

Keywords: finance; private equity; Blackstone; alternative assets; venture capital; Private Equity; Business Growth and Maturation; Public Ownership; Cost vs Benefits; Financial Services Industry;

Language: English

Format: Print

12 pages

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Citation:

Lerner, Josh. "Blackstone at Age 30." Harvard Business School Teaching Note 819-053, September 2018.

About the Author

Josh Lerner

Jacob H. Schiff Professor of Investment Banking

Entrepreneurial Management

Finance

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Article | Journal of Economic Perspectives | Summer 2020

Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn

Josh Lerner and Ramana Nanda

Citation:
Lerner, Josh, and Ramana Nanda. "Venture Capital's Role in Financing Innovation: What We Know and How Much We Still Need to Learn." Journal of Economic Perspectives 34, no. 3 (Summer 2020): 237–261. View Details

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Working Paper | HBS Working Paper Series | 2020

The Project on Impact Investments' Impact Investment Database

M. Diane Burton, Shawn Cole, Abhishek Dev, Christina Jarymowycz, Leslie Jeng, Josh Lerner, Fanele Mashwama, Yue (Cynthia) Xu and T. Robert Zochowski

Impact investing has grown significantly over the past 15 years. From a niche investing segment with only $25 billion AUM in 2013 (WEF 2013), it experienced double-digit growth and developed into a market with an estimated $502 billion AUM (Mudaliapar and Dithrich 2019). Despite the growth and maturation of impact investing, gathering complete and accurate data on the characteristics of this industry continues to be a challenge. This paper describes the creation of a new dataset on both impact investors and the portfolio companies they fund, comprising 409 impact investors and 13,212 portfolio companies. We code impact investors according to established categories such as legal form, types of investments and return objectives. We then develop measures of the relative importance of social impact for each investor in an effort to add a new analytic categorization. We conclude by describing the distribution of investors and firms across these various categories.

Keywords: impact investing; Investment; Data and Data Sets; Analysis;

Citation:
Burton, M. Diane, Shawn Cole, Abhishek Dev, Christina Jarymowycz, Leslie Jeng, Josh Lerner, Fanele Mashwama, Yue (Cynthia) Xu, and T. Robert Zochowski. "The Project on Impact Investments' Impact Investment Database." Harvard Business School Working Paper, No. 20-117, May 2020. View Details

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Working Paper | HBS Working Paper Series | 2020

Financial Distancing: How Venture Capital Follows the Economy Down and Curtails Innovation

Sabrina T. Howell, Josh Lerner, Ramana Nanda and Richard Townsend

Although late-stage venture capital (VC) activity did not change dramatically in the first two months after the COVID-19 pandemic reached the U.S., early-stage VC activity declined by 38%. The particular sensitivity of early-stage VC investment to market conditions—which we show to be common across recessions spanning four decades from 1976 to 2017—raises questions about the pro-cyclicality of VC and its implications for innovation, especially in light of the common narrative that VC is relatively insulated from public markets. We find that the implications for innovation are not benign: innovation conducted by VC-backed firms in recessions is less highly cited, less original, less general, and less closely related to fundamental science. These effects are more pronounced for startups financed by early-stage venture funds. Given the important role that VC plays in financing breakthrough innovations in the economy, our findings have implications for the broader discussion on the nature of innovation across business cycles.

Keywords: innovation; recessions; Venture Capital; Innovation and Invention; Patents; Business Cycles; Economic Slowdown and Stagnation;

Citation:
Howell, Sabrina T., Josh Lerner, Ramana Nanda, and Richard Townsend. "Financial Distancing: How Venture Capital Follows the Economy Down and Curtails Innovation." Harvard Business School Working Paper, No. 20-115, May 2020. View Details

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Blackstone at Age 30

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