(Bloomberg News) Stephen Schwarzman, chairman of the world's largest private-equity firm, will host a fundraiser for Mitt Romney at his Park Avenue apartment next month, a sign that Romney is closing the sale with Wall Street's wealthiest donors.
The event marks Schwarzman's inaugural step to help Romney secure the Republican presidential nomination, according to a person familiar with Schwarzman's plans who spoke on condition of anonymity. He will follow up with efforts to persuade colleagues in the financial industry to get behind Romney's presidential bid, the person said.
Backing from Schwarzman, co-founder of Blackstone Group LP and a longtime Republican donor, may open doors for Romney with other contributors as the field of Republican candidates remains crowded with a little more than five weeks before the first nomination contest.
"Steve Schwarzman is one of the top fundraisers on Wall Street, and this will help the Romney campaign, not only for the actual fundraising he will do, but the signal it sends to other fundraisers that Wall Street leaders believe Romney is very likely to be the nominee," said Steve Duprey, who was a senior adviser to Republican John McCain's presidential campaign in 2008.
Critical Of Obama
Schwarzman, who gave $4,600 to McCain once the Arizona senator had secured his party's presidential nomination four years ago, has been critical of President Barack Obama's stance toward Wall Street. In August 2010, he compared the administration's efforts to double taxes on the income of private-equity firms such as his to "when Hitler invaded Poland in 1939," according to a New York Post account of a private meeting. He later apologized for the comparison while maintaining his criticism of the tax proposal.
Romney and Schwarzman both made their fortunes in private equity, and they came of age during the leveraged buyout movement in the 1980s. As head of the private equity firm Bain Capital LLC, Romney was the lead deal-maker, buying and selling companies to make money for investors. He spent most of his career at Bain and in 2007 estimated his wealth at as much as $250 million.
Crowded Field
While Romney is consistently among the top choices of Republican voters in national polls, other candidates, including former House Speaker Newt Gingrich, businessman Herman Cain and Texas Governor Rick Perry, have risen to challenge Romney for front-runner status. Gingrich received a boost yesterday with the endorsement of New Hampshire's Union Leader newspaper, the largest in the state, where the first primary will be held on Jan. 10, one week after the Iowa caucuses.
Romney, a former governor of Massachusetts, is leading the Republican field in fundraising; he collected $32 million through Sept. 30, according to the most recent financial disclosure reports. The next closest candidate, Perry, raised $17 million.
Schwarzman, through Blackstone spokesman Peter Rose, declined to comment.