Shares in The Blackstone Group soared 39% on their opening, but sank steeply as the markets responded to legislative clouds looming over the private equity industry.

Blackstone shares opened at $45 Friday on the New York Stock Exchange, up from Thursday night's pricing of $31. The shares dropped sharply in the first half hour of trading to around $35, and did not recover for the rest of the day. Blackstone's stock price at the 4 pm close of trading was $35.06, a modest 13% rise from the initial price set by underwriters.