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Steve Schwarzman, co-founder and CEO of Blackstone, one of the world’s largest alternative asset managers, has amassed a fortune of $57 billion. While he has previously referred to Blackstone as his family office, it has been revealed that he operates a separate entity called Pennypack. Managed by John Magliano, a former Blackstone executive, Pennypack oversees Schwarzman’s personal finances, properties, and philanthropic efforts.

The Origins of Pennypack

The name “Pennypack” reflects Schwarzman’s childhood in the Philadelphia area, where his family lived near Pennypack Creek. Established in 2018 as Pennypack LLC, the family office manages a substantial portfolio of properties, including luxury residences in Nantucket, Newport, and England. Notably, Schwarzman’s Newport estate is planned to be converted into a museum after his death.

Schwarzman’s Wealth and Investments

A significant portion of Schwarzman’s wealth comes from his 19% stake in Blackstone, valued at $41.7 billion. He also receives large dividends from the firm, totaling $777 million in 2023. While Pennypack handles Schwarzman’s personal affairs, it is not actively involved in managing his investments, as he directly invests in Blackstone’s funds.

Operations and Staffing

Pennypack employs over 100 staff members, including housekeepers, legal advisors, and executive assistants. It also manages Schwarzman’s charitable initiatives, such as the Stephen A. Schwarzman Foundation, which has funded major projects like MIT’s AI and computing center and Oxford’s Centre for the Humanities.

Philanthropy and Political Influence

Schwarzman is a prominent Republican donor and has organized fundraisers through Pennypack. The office also supports his philanthropic endeavors, including the Schwarzman Scholars program at Tsinghua University in Beijing, which fosters U.S.-China relations.

The Family Office Model

Pennypack illustrates the modern family office model, blending financial management with concierge-like services. Unique to each family, this approach highlights the increasing complexity of managing vast personal wealth and global influence.