UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 13, 2018
The Blackstone Group L.P. (Exact name of Registrant as specified in its charter)
Delaware 001-33551 20-8875684 (State or other jurisdiction of (Commission File Number) (I.R.S. Employer incorporation) Identification No.)
345 Park Avenue New York, New York 10154 (Address of principal executive offices) (Zip Code)
(212) 583-5000 (Registrant’s telephone number, including area code)
NOT APPLICABLE (Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On February 13, 2018, Blackstone issued a press release announcing that Jonathan D. Gray has been appointed President and Chief Operating Officer of Blackstone Group Management L.L.C., the general partner (the “General Partner”) of The Blackstone Group L.P. (the “Partnership” and, together with the General Partner, “Blackstone”). In connection with the appointment of Mr. Gray, which will be effective March 1, 2018, Hamilton E. James will transition from his current role as President and Chief Operating Officer and will continue in a full-time role as Executive Vice Chairman of the General Partner. Mr. Gray and Mr. James will also continue to serve as members of the board of directors of our General Partner and as members of Blackstone’s Management Committee.
Mr. Gray, age 48, most recently served as Global Head of Real Estate, a position he held since 2012. Mr. Gray is also a member of the board of directors of our General Partner. Mr. Gray became a member of the board of directors of our General Partner effective February 24, 2012. He also sits on the firm’s Management Committee. Since joining Blackstone in 1992, Mr. Gray has helped build the largest real estate platform in the world with $115.3 billion in investor capital under management. He was promoted to Managing Director in 2000, Senior Managing Director in 2001 and Global Co-Head of Real Estate in 2005. Mr. Gray currently serves as Chairman of the board of directors of Hilton Worldwide Holdings Inc. and Nevada Property 1 LLC (The Cosmopolitan of Las Vegas). He is also a member of the board of directors of Invitation Homes Inc. Mr. Gray also previously served as a board member of Brixmor Property Group Inc. and La Quinta Holdings Inc. He also serves on the board of Harlem Village Academies and Trinity School. Mr. Gray and his wife, Mindy, established the Basser Center for BRCA at the University of Pennsylvania School of Medicine focused on the prevention and treatment of certain genetically caused cancers. Mr. Gray received a BS in Economics from the Wharton School, as well as a BA in English from the College of Arts and Sciences at the University of Pennsylvania.
As described in our Annual Report on Form 10-K for the year ended December 31, 2016, Mr. Gray receives compensation as an employee of Blackstone and invests in and alongside Blackstone’s funds. In addition, an entity currently controlled by Mr. Gray, and an entity previously jointly controlled by Mr. Gray (in which he no longer holds an interest), each wholly own aircraft that we use for business purposes in the course of our operations. Mr. Gray paid for his respective ownership interest in the aircraft himself and bore his respective share of the operating, personnel and maintenance costs associated with their operation. The hourly payments we make for such use are based on market rates.
Item 7.01 Regulation FD Disclosure.
A copy of the press release regarding the matters described above has been furnished as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press Release, dated February 13, 2018. SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: February 16, 2018
The Blackstone Group L.P. By: Blackstone Group Management L.L.C., its General Partner
/s/ John G. Finley John G. Finley Chief Legal Officer Exhibit 99.1
Jon Gray Named President and Chief Operating Officer of Blackstone; Tony James Named Executive Vice Chairman New York, February 13, 2018 – Blackstone (NYSE: BX) announced today that Tony James, President and Chief Operating Officer, will be handing over day-to-day management of the firm to Jon Gray, Global Head of Real Estate. Mr. James will continue in a full-time role at the firm and assume the title of Executive Vice Chairman, reporting to Stephen A. Schwarzman, Co-Founder, Chairman and Chief Executive Officer. Mr. Gray will become President and Chief Operating Officer also reporting to Mr. Schwarzman. Two long-time leaders in Blackstone’s real estate group, Ken Caplan and Kathleen McCarthy, have been named Global Co-heads of Real Estate succeeding Mr. Gray.
Said Mr. James: “I have had a wonderful 15 years at Blackstone so far and still savor every minute of it. One of my most important responsibilities is succession, and I am blessed to have a spectacular leader and investor like Jon Gray to whom I can hand the reins.”
Mr. Gray came to Blackstone in 1992 straight out of college. He started in the private equity and mergers and acquisition areas of the firm before joining the real estate group at its inception. He has led this area since 2005, helping build the world’s largest real estate business with more than $115 billion of investor capital. Blackstone Real Estate has delivered outstanding performance for investors and grown to be the industry leader in opportunistic, core plus and debt investing across the US, Europe and Asia. Real Estate has accounted for half the firm’s earnings in the last several years. Mr. Gray sits on Blackstone’s Board of Directors and Management Committee, playing a critical role in firm-wide management, strategy and decision-making.
Commenting on the appointment of Jon Gray, Mr. Schwarzman said: “I’ve learned over the last 26 years that Jon Gray has great judgment, enormous energy and unique personal charisma, which has enabled him to garner enormous respect within the global financial community. His strong values and passion for excellence are the embodiment of Blackstone’s core principles. The appointment of Jon as President and COO lays the foundation for the next generation of senior management and positions the firm well for future leadership.”
“I have spent my entire career at Blackstone and could not be more proud to be part of this firm,” said Jon Gray. “Despite our tremendous success to date, I am quite excited about the opportunity to continue to innovate for both our investors and shareholders. I look forward to working closely with Steve, Tony and our immensely talented team to help lead this growth while maintaining the highest standards of integrity and investment discipline.”
Mr. James joined Blackstone in 2002 as Vice Chairman and Chief Operating Officer and assumed the title of President in 2006 upon the retirement of co-founder Peter G. Peterson. Major initiatives led by Mr. James include the firm’s IPO, the acquisitions of GSO and Strategic Partners, the spin-off of the firm’s advisory business into PJT Partners, and the founding of Blackstone’s Tactical Opportunities, Core Private Equity, Infrastructure, Insurance Solutions and retail initiatives. In his new role, he will continue to sit on the firm’s investment committees, help develop new businesses, serve as a firm spokesman and manage strategic external relationships. He will also continue to sit on the firm’s Management Committee and Board of Directors.
Commenting on Tony James’ new position as Executive Vice Chairman, Mr. Schwarzman said: “Tony James has had a bigger impact on Blackstone than anyone in the firm’s history. Since he joined, he has been instrumental in evaluating fund investments and conceptualizing and implementing numerous growth initiatives, expanding AUM many times over, and delivering industry-leading investment performance. He has put in place the internal processes that are the bedrock of the institutionalization of our firm. He is indefatigable, and a superb leader with unimpeachable integrity. I could not be more pleased that Tony wants to stay fully engaged at Blackstone.”
REAL ESTATE APPOINTMENTS
As the new Global Co-Heads of Real Estate, Ken Caplan and Kathleen McCarthy have extensive experience with every aspect of the Real Estate business and have helped oversee its major functions. Jon Gray will remain Chairman of the Real Estate Investment Committee and will continue to spend considerable time working with Mr. Caplan and Ms. McCarthy to help ensure the group maintains its strong growth trajectory and investment track record.
Mr. Caplan currently serves as a Senior Managing Director and Global Chief Investment Officer of the Real Estate group. He is another senior leader who has spent nearly all his career at the firm, having joined Blackstone in 1997. During his 21 years at Blackstone, he has been involved in over $100 billion of real estate acquisitions globally. Mr. Caplan spent several years in Blackstone’s London office, serving as Head of Real Estate Europe.
1/2 Ms. McCarthy currently serves as a Senior Managing Director and Global Chief Operating Officer of Blackstone Real Estate. She is responsible for the real estate business’s day-to-day operations with a particular focus on its investors, capital raising and business development efforts across new investment products. She has been in real estate her entire career, joining Blackstone in 2010 after a decade in real estate investments and mergers and acquisitions.
“Having worked closely with Ken and Kathleen for many years, I have tremendous confidence in their ability to continue the group’s strong track record,” said Jon Gray. “They are excellent investors and operators with remarkable judgment, capable of driving the group to new heights.”
Today, Blackstone oversees the largest global real estate investment business, having produced outstanding performance for a quarter century. Notable transactions and vehicles include: Equity Office, Hilton Worldwide, Logicor, GE Real Estate, India Office, Invitation Homes, Stuyvesant Town, as well as the creation of Blackstone Mortgage Trust (NYSE: BXMT), Blackstone Real Estate Income Trust (BREIT) and Blackstone Property Partners.
ABOUT BLACKSTONE Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $430 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
2/2