Steve Schwarzman, cofounder and CEO of Blackstone, is worth an estimated $57 billion and is one of the world’s richest individuals. Known for his influence across politics, culture, and real estate, he also manages his vast fortune through a secretive family office called Pennypack. Despite claiming that Blackstone itself serves as his financial management arm, public records reveal Pennypack plays a crucial role in managing Schwarzman’s personal finances, properties, and philanthropic ventures.
The Genesis of Pennypack
Founded in 2018, Pennypack’s name is a nod to Schwarzman’s childhood home on Pennypack Creek near Philadelphia. The office handles a broad spectrum of responsibilities, including managing Schwarzman’s properties, supporting his charitable endeavors, and overseeing security measures for his family. It employs over 100 staff members, including housekeepers, landscapers, and personal assistants, and is led by John Magliano, a former Blackstone tax executive.
A Wealth Tied to Blackstone
Most of Schwarzman’s wealth stems from his 19% stake in Blackstone, valued at $41.7 billion. As the largest individual investor in Blackstone’s funds, he also earns substantial dividends—$777 million in 2023 alone. However, Pennypack does not appear to manage these investments, a divergence from other billionaire-run family offices.
Properties and Philanthropy
Pennypack oversees an extensive real estate portfolio, including Schwarzman’s record-breaking $32.5 million Nantucket mansion and historic estates like Miramar in Newport, Rhode Island. Schwarzman has pledged Miramar will become a museum after his death. His philanthropy is also significant, with donations of $350 million to MIT and $220 million to Oxford University for projects focused on AI and humanities.
Political and Cultural Influence
An active Republican donor and a close ally of former President Donald Trump, Schwarzman continues to wield political influence. Pennypack recently facilitated fundraising efforts for Republican candidates, demonstrating its role in shaping Schwarzman’s political footprint. Additionally, his name graces institutions like the New York Public Library, reflecting his cultural contributions.
The Family Office Model
Pennypack’s operations embody the evolving concept of family offices, which combine financial oversight with concierge-like services for the ultra-wealthy. This model enables individuals like Schwarzman to manage diverse assets and initiatives while maintaining tight control over their financial and personal affairs.