Napoleon-watch: Blackstone's IPO to pop, advisors and investors to get clipped

As I posted earlier this month, Blackstone Group's CEO Stephen Schwarzman gave an interview to the Wall Street Journal with a compelling theme -- Schwarzman is the Napoleon of private equity. Napoleon-watch tracks his moves on the business battleground.

Despite fears of legislation that would increase the tax that investors pay on the income from Blackstone, the Wall Street Journal reports that investors are clamoring for the soon-to--be publicly traded units of Blackstone's master limited partnership.

Meanwhile, Blackstone is clipping the fees of the advisors who will help take Blackstone public. Bloomberg News reports that the 17 banks taking it public will get a fee totaling a mere 3.6% of their fraction of the IPO amount -- $170 million -- a bit more than half of the 6.2% IPO fee average. But there's quite a bit of trading going on here. By giving every investment bank a piece of the IPO business, Blackstone is assuring that none of their analysts will criticize the deal. And then there's the promise of big fees down the road to help Blackstone finance and close future deals with its $19.6 billion fund. Blackstone paid $571.4 million in such fees in 2006.