Blackstone becomes first private equity group to file for IPO

Blackstone set a new milestone in the booming private equity industry by becoming the first large US buy-out fund to file for an initial public offering, which could value it at up to $40bn (£20bn) and generate huge windfalls for its senior executives.

Blackstone, founded 22 years ago by Steve Schwarzman and Pete Peterson, was aiming to raise up to $4bn. They hope to sell up to 15 per cent to stock to market investors.