Blackstone’s Schwarzman Says Individuals Need More Alternatives

Apr 28, 2014 1:04 pm ET

April 28 (Bloomberg) -- Individual investors are significantly underinvested in alternative assets such as private equity, said Blackstone Group LP Chairman Steve Schwarzman.

“The stuff we do, the alternative class, tends to make around 1,000 basis points more than the stock market,” Schwarzman said today in an interview with Bloomberg Television’s Erik Schatzker and Stephanie Ruhle at the Milken Institute Global Conference in Beverly Hills, California. Investors shouldn’t be concerned about a “stomach issue” since Blackstone loses virtually no money in its funds, he said.

The average institution might have 20 to 25 percent in alternative investments while the average individual investor has 2 percent on average, he said.

“They should really be able to take advantage of the things the institutions get,” he said.

Schwarzman, who is worth $10.4 billion, according to the Bloomberg Billionaires Index, founded New York-based Blackstone in 1985 with Peter G. Peterson. The firm oversaw $272 billion in private-equity, real estate, credit and hedge fund assets as of March 31.