The wacky state of the financial services industry is making for some odd bedfellows. The latest: Blackstone Group, headed by CEO Steven Schwarzman, put out a statement in support of public employee pensions and pensioners.

"Blackstone's view on public employee pensions is clear and unambiguous. We believe a pension is a promise. Working men and women should not have to worry about their retirement security after years of service to their communities. We oppose scape-goating public employees by blaming them for the structural budget deficits that cities and states face."

Last year, the firm's adviser Byron Wien said benefits for state workers were "too generous," adding, "we literally can't afford the benefits we have given our retirees in state and local governments. And we have to change that," notes Deal Journal.

Recall also that private sector unions tend to be virulently opposed to the private equity industry.

So, Blackstone's support of public pensions strikes us as a bit surprising--but also logical. About $37 of every $100 of Blackstone's $111 billion investment pool comes from state and local pension plans, says Deal Journal. The buyout industry benefits from the perceived goal to keep investment gains high over the next decade, as that makes it more likely that fund managers will seek alternative investments.

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