Blackstone

Blackstone Group is the world's largest alternative asset manager, with over $1 trillion in assets under management, and its CEO Stephen Schwarzman is one of the most powerful Republican donors in America. The firm represents the apotheosis of private equity's political influence: using lobbying to protect the tax loopholes that make PE partners extraordinarily wealthy, while deploying that wealth to fund politicians who protect those same loopholes. It's a self-reinforcing cycle where political spending generates tax savings that fund more political spending. The carried interest loophole is Blackstone's crown jewel of political influence. This provision allows PE fund managers to pay the capital gains tax rate (23.8%) rather than the ordinary income rate (37%) on their management fees — income that is, by any reasonable definition, compensation for services. The loophole costs the federal government an estimated $14 billion per decade and primarily benefits the wealthiest fund managers. Despite bipartisan calls to close it — including from Donald Trump during his 2016 campaign — carried interest has survived every tax reform attempt since 2007. The reason is straightforward: PE firms like Blackstone fund the campaigns of every legislator positioned to close the loophole. Schwarzman is one of the most important Republican donors and a close Trump ally. He hosted Trump at his Park Avenue apartment, attended Mar-a-Lago events, and served on Trump's business advisory council. His personal wealth, estimated at over $42 billion, gives him outsized influence in Republican politics. Jonathan Gray, Blackstone's COO, serves as an informal economic advisor to the Trump administration, creating a direct line from Wall Street's largest firm to White House economic policy. Blackstone is America's largest residential landlord, owning approximately 300,000 rental units through various portfolio companies. This concentration of housing ownership has drawn criticism from housing advocates who argue that Blackstone's acquisition of single-family homes and apartment complexes drives up rents and contributes to the housing affordability crisis. When the entity that lobbies Congress on housing policy is also the largest landlord in the country, the conflict of interest is inherent. The firm's political spending extends beyond Schwarzman's personal donations. Blackstone's PAC contributes to Finance and Banking committee members, and the firm employs 20 lobbyists focused on financial regulation, tax policy, and housing. The firm spent $8.5 million on lobbying in 2024 and has spent $80 million over its career. Blackstone's alumni network includes numerous Treasury and SEC officials, creating a revolving door that ensures the firm's perspectives are represented in regulatory decisions that affect its business. Under scrutiny from state pension funds and labor unions for its landlord practices, Blackstone has responded with an aggressive PR campaign highlighting its investments in affordable housing and renewable energy. Critics argue these investments are modest compared to the firm's overall portfolio and serve primarily to provide political cover.