A case in point: In 2019, when Blackstone raised an industry-record $26 billion private equity fund, Schwarzman didnt make a single presentation to investors. In February 2018, Gray was named the firm's COO and president; he's considered a potential successor to cofounder and CEO Steve Schwarzman. Every broadcast ends with Grays sign-off: Stay calm, stay positive, and never give up.. A Canadian woman has one month to get rid of more than 130,000 vintage chocolate bars but is struggling to give them away before the expiration date, Leaked Pentagon docs show the shot-down Chinese spy balloon may have had a feature known as 'synthetic aperture radar' that can see through certain materials, WaPo reports, A rare hybrid solar eclipse to take place on April 20, Unpaid subsidies worth 1,200 crore leading to serious liquidity crisis among EV makers, says industry body, Coca-Cola India invests in foodtech platform Thrive, which aims to change the way you order your meal online. Gray recently donated $10million to purchase a building in northern Manhattan which will serve as the organization's second elementary school. Who is the president of Blackstone? Blackstones involvement in the sector began in 2015 when the firm bought BioMed Realty, an owner of buildings catering to life sciences firms. [31] This donation also established the Basser Global Prize,[32] honoring cutting-edge cancer research. To view recent press releases, click here. 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. . Today, as it utterly dominates passive investing, BlackRock has assets under management 13 times Blackstones asset total. There are 21 older and 3 younger executives at Blackstone Inc. Gray will replace longtime president Tony James, who will become executivevice chairman and continuewith a full-time role. [27], In February 2023, the Grays were named to The Chronicle of Philanthropys list of the 50 biggest donors in 2022. In 2016, he ranked #1 on Commercial Observer's "Power 100" ranking of the most powerful people in New York City real estate. Complicated deals like Alnylam were unheard of a decade ago among alternative-asset managers. Just the other week, it announced . Blackstone President Jonathan Gray, Schwarzman's No. Today the portfolio has grown to $230 billion. Donald Trumps real net worth? The rise of perpetual capital and thematic investing has been a boon for fee-related earnings. Just over a year ago Goldman Sachs, headed by Lloyd Blankfein, named investment banker David Solomon and CFO Harvey Schwartz as co-presidents, firming up its succession plans. Im still somewhat mystified, he says about those queries. His heir apparent as CEO, Blackstone President Jon Gray, collected $479.2 million in 2022. "[18] Gray later contracted COVID-19 and sent CFO Michael Chae to the event instead.[19]. The houses were renovated, put up for rent, and maintained by Invitation Homes, a company created by Blackstone. He attended the University of Oklahoma, where he was a unanimous All-Big 12 selection. Kravis, 77, received $42 million in compensation and $39.3 million in dividends from his KKR shares, while Roberts, also 77, took home $42 million in compensation and $85.4 million in dividends from his KKR shares. Black, 69, received $423,687 in compensation, $182.3 million in dividends from his Apollo shares and $2.5 million from his personal investments in the firms funds. Jonathan Gray led Blackstone global real estate from 2011, in 2018 he was promoted to President and COO of Blackstone General Partners while continuing to act as chairman of the board for Hilton Hotels. With more than 500 buildings totaling 100 million square feet, EOP was at the time the largest manager of office space in the U.S. As the great financial crisis unfolded, Blackstone sold off many of the properties. Then came Trumps 2018 reduction of the corporate tax rate, from 35 percent to 21 percent. [27][29] In May 2012, Gray and his wife, Mindy Gray, founded the Basser Research Center,[30] named in honor of Mindy's sister, Faith Basser, who died of ovarian cancer at age 44. But though Gray maintains a low profile, Schwarzman splashes his name across his projects, such as the renovation of the New York Public Librarys Beaux Arts main building. Ultimately it panned out, leading to an over $10 billion profit. He ranks as the 495th richest person in the world and the 159th in the US. In 1985, the two men left Lehman to found Blackstone, with each putting up $200,000 in capital. Jonathan ("Jon") Gray is President and Chief Operating Officer of Blackstone, and is a member of Blackstone's Board of Directors. The 5 best supplements for healthy aging, according to a longevity expert, Elon Musk says he learned a lot today after cancelling SpaceXs giant rocket launch at last minute. It turned out to be a 'perfectly preserved' 30,000-year-old squirrel. But with strong guidance from Gray, deals increasingly involve much longer-term investments. What is the salary of Mr Gray? [38], In November 2016, The New York Times reported on a $10million donation from the Grays to finance a pilot program that creates college savings accounts for thousands of New York City public school kindergartners. Because Alnylam is valued at about $10 billion, it would have had to sell a huge part of the company and dramatically dilute its shareholder base to raise the $2 billion in the equity market. With Equity Office Properties, Grays team quickly sold off portfolios of non-core assets, putting the deal in good financial shapeahead of the downturn. Gray, whose sister-in-law died of ovarian cancer at age 44, has given over $100 million to BRCA- related cancer research. By most estimates we have assessed, Jonathan Gray's net worth is $6.5 billion. For him, the greatest comfort zone is overseeing investment strategy. The move is part of a careful succession at Blackstone. It came as no surprise when Gray was named president and COO in 2018, replacing James, who became vice chairman (and will retire in January). What happens often in these transitions is a fight for power, he notes. The dividend for 2022 rose to $4.40, up from $4.09 a year earlier. Sales of plum holdings, such as The Cosmopolitan of Las Vegas, lifted profits available to shareholders. Still, Blackstones dealmakers were able to generate more from selling out of deals in 2022 than the prior year. Despite a robust ego, he has allowed Gray ample leeway to transform Blackstone in his own image. He is a member. Even when the boss steps down gracefully, the successor is frequently chosen after an undignified bake-off between rival executives, with the talented losers being shown the door. [9], Gray was named in Fortune's "40 under 40,"[10] in 2009. The most recent stock trade was executed by Joseph Baratta on 1 April 2023, trading 85,000 units of BX stock currently worth $7,337,200. At the time, it seemed to me a devastating loss, recalls Gray. Gray met his wife, Mindy, at a romantic poetry class at UPenn and once worked a stint as a guard at a graduate student dorm. Jonathan Gray started at asset manager Blackstone Group fresh out of college in 1992 and later rose to head the firm's vaunted real estate group. Kravis, 77, received $42 million in compensation and $39.3 million in dividends from his KKR shares, while Roberts, also 77, took home $42 million in compensation and $85.4 million in dividends from his KKR shares. Schwarzman and Gray say that almost three decades of collaboration have diminished the possibility of misunderstandings. The University of Pennsylvania today announced a $10 million gift from 1992 Penn graduates, Mindy and Jon Gray, in support of undergraduate financial aid for students from New York City, and the Penn First Plus program for students who are low income and/or the first in their families to attend college. Ive 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, he further said. According to a Wharton School case study, the EOP acquisition was one of the most successful real estate private equity deals of all time.. Blackstone has a performance-driven compensation model that is built on long-term alignment with our investors, a spokesman said in a statement. Guest speakers chosen from within Blackstone might include the chief economist, the head of government relations, or the leading executive of a business unit involved in a key deal. Lately, life sciences have taken center stage. Business Insider spoke with more than a dozen people who know Korngold to. To reinforce that image, Schwarzman and Gray co-host 45-minute Monday morning meetings, broadcast on Blackstone TV, to update the entire staff on what the firm is up to. Financial Advisors, visit our dedicated website to learn how you can partner with Blackstone. He kept a very steady hand on the wheel.. Mr. Gray also previously served as a board member of Invitation Homes Inc., Brixmor Property Group Inc. and La Quinta Holdings Inc. National /. Gray holds it up as a prime example of Blackstones capital-light strategy. As the leader of the . [1] He is also chairman of Hilton Worldwide.[2]. Some Blackstone staff had hoped to design a vehicle for accredited investors with as little as. Reflects change since 5 pm ET of prior trading day. When Gray took over Blackstones real estate business, it had $5 billion under management. That is an increase from the prior year. The firm cranked out more fee-related earnings as assets under management reached just shy of $1 trillion. For office-specific contact information, please visit our our offices page. [14] The firm would later come under criticism for its business model, and US Senator Elizabeth Warren criticized Blackstone for "shamelessly" profiting from the 2008 housing crisis. But passive money managers like mutual funds and index funds had mandates against purchasing shares in listed partnerships. Chris Nassetta, Hilton Worldwides CEO, was a participant in those taut discussions. If we have a question about a prospective tenant in BioMed, we can ask Nick for his thoughts about the company, says Kenneth Caplan, global cohead of real estate. Times Syndication Service. By 2005, at age 34, Gray was running Blackstones real estate business. In January 2014, the Basser Research Center announced an additional $5million gift from the couple to fund an external research grant program. With spending on travel plummeting, analysts wrote off the $26 billion acquisition as a disaster. By the time it sold its last stake in Invitation Homes in 2019, Blackstone had earned more than $7 billion, or better than twice its investment. It seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. In Hilton, Blackstone and Gray had a number of gut checks in which the firm doubled down and convinced limited partners to follow suit. There are 18 older and 7 younger executives at Blackstone Inc. You have to sometimes make calls where you have to promote one person and there are two or three talented candidates, says Gray. Clients agree to put up capital for indefinite periods while accepting steady, predictable returns for themselves and generous fee-earning income for Blackstone. The new Ardbeg BizarreBQ channels the distillerys fun-loving spirit and creativity into a bottle that fully embraces smokein this case, barbecue smoke. ), Its hard to find anybody who has unkind words for Gray. Among Grays big philanthropic endeavors are his alma mater UPenn, where hes donated $30 million to support cancer research. Schwarzman is giving the charismatic, even-tempered Gray every opportunity to prove he can. The most recent stock trade was executed by Joseph Baratta on 1 April 2023, trading 85,000 units of BX stock currently worth $7,337,200. His net worth has been growing significantly in 2021-2022. SHARE THIS ARTICLE A decade ago, Blackstone's Jon Gray was fresh off two multibillion-dollar real estate acquisitions, Equity Office Properties and Hilton, and he was working around the clock. With Blackstones shuffle, theres been change atop most major financial institutions. What is Jonathan D. Gray's salary? A crown jewel property fund for wealthy investors, the Blackstone Real Estate Income Trust, faced a line of investors wanting out, prompting it to limit redemptions. 2, took home at least $216.1 million in 2020, consisting of $123.2 million in compensation and $92.8 million in dividends from the. How do I contact Jonathan D. Gray? Schwarzman, 74, received $86.4 million in compensation and $524.1 million in dividends from his Blackstone shares, a regulatory filing showed on Friday. For information on our privacy practices see our Privacy Policy. [29], In October 2022, the Grays announced a gift of $55 million[36] to establish the Basser Cancer Interception Institute as part of the Basser Center for BRCA. Wallmine is a radically better financial terminal. Ken Caplan and Kathleen McCarthy will take Grays role as co-heads of Blackstones real estate operations. Today its $160 billion market cap is larger than the combined total of its three largest competitors: Brookfield Asset Management, KKR, and Apollo Global Management. Mr. It offered to buy half of the future royalties paid to Alnylam by Novartis for $1 billion. I was definitely in the camp of those wanting to convert, says Gray. Years of turbulence and a shattered global economy have shifted investor sentiment drastically, which seems to be moderating as the world braces for a softer landing than expected. For example, a tenant leasing space from a Blackstone-owned real estate company may also be developing a breakthrough medicine in which Blackstone has invested. Sign up here. Apollo Global Management Chairman Leon Black, who agreed to relinquish his role as the companys CEO by July following an investigation of his ties to the late financier and convicted sex offender Jeffrey Epstein, collected at least $185.2 million in 2020, another regulatory filing showed. He also serves on the board of Harlem Village Academies. Or sometimes people get to a stage in their careers where they have had a lot of success and they are not as engaged as they were before.. [43] He lives in Manhattan with his wife and their four daughters. His net worth nearly doubled from $3.9 billion last year. Some $24 billion of money flooded into the unit, which generated half of Blackstones overall revenues. Our main competitor is not another investor its the pharmaceuticals industry, says Galakatos. He notoriously quipped that an Obama administration proposal to raise taxes on private equity investors reminded him of when Hitler invaded Poland in 1939. (The ensuing uproar caused him to apologize. It does this by using extraordinary people and flexible capital to help companies solve problems. Blackstone President Jonathan Gray, Schwarzman's No. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. With Gray guiding investment strategy, Blackstone has piled up one record-breaking earnings quarter after another. The financial crisis was largely precipitated by the collapse of subprime mortgages used to purchase middle-class homes. Corner Office. His father owned a small auto parts manufacturer (named Blackstone Manufacturing, ironically). Jonathan's mailing address filed with the SEC is C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK, NY, 10154. 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. In 2007, he acquired Equity Office Properties from real estate mogul Sam Zell for $39 billion. Although we disagreed, we did what he proposed, recalls Schwarzman. These kinds of acquisitions create ample opportunities for cross-collaboration between Blackstones businesses. Jonathan D. Gray is the Gen. Biography Timeline Though Alnylam would still have to raise $1 billion in the equity market, it was a more palatable solution for shareholders. Gray himself has a net worth of $7.3 billion. [34], In May 2017, the Grays announced they would be donating $21million to the Basser Center for BRCA at the University of Pennsylvania, bringing their total pledges to the initiative to $55million. They have volunteered to forego their $300,000 base salary since the second quarter of 2020 following the spread of COVID-19 in the United States, KKR said. All rights reserved.For reprint rights. It seeks to create positive economic impact and long-term value for its investors, the companies it invests in, and the communities in which it works. The Hilton investment eventually turned a $14 billion profit making it one of the most lucrative private equity deals ever. Is there a more compelling business plot for a Netflix melodrama than the clash between the founder of a financial services giant and the anointed successor? But he communicates and listens well, so hes hard not to like even when youre disagreeing with him.. The oldest executive at Blackstone Inc is BrianMulroney, 81, who is the Independent Director of the General Partner. Although it wasnt possible to enter these homes, Blackstone employees were able to drive by them, get a sense of the neighborhoods, and determine the quality of their schools. Even executives who have engaged him in arduous negotiations volunteer their praise. Implement the following strategies to remove your daily blocks, become more self-aware and advocate for yourself. Hilton is a business that owns few properties. According to JLL, a leading real estate services company, life sciences real estate investments account for about a third of worldwide spending on commercial properties this year. Gray, 51, has a net worth of $4.5 billion, according to Forbes. It also demonstrates how tightly his fortune is tied to the firm he co-founded more than three decades ago. [5] In 1992, Gray graduated from the University of Pennsylvania magna cum laude with a B.A. The new institute will look for innovative ways to detect and treat BRCA-related cancers before surgery, radiation or chemotherapy become the necessary treatment. Grays real estate business now counts $115 billion in assets under management, a more than sixfold increase from before the crisis. Here are the 19 richest private equity titans in America, https://www.businessinsider.in/here-are-the-19-richest-private-equity-titans-in-america/jonathan-gray/slidelist/49183406.cms. [1] He is also chairman of Hilton Worldwide. Jonathan Gray's House in Sagaponack, NY (Google Maps) Jonathan Gray's House Sagaponack, New York (NY), US Like Tweet Share Pin Gray runs Blackstone's real estate business and is the latest billionaire to emerge from the world's largest manager of private equity and property. Jonathan Gray, Blackstone's president, said during an analyst earnings call on . If you're happy with cookies click proceed. The unit navigated the crisis as other firms faltered. 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, said Blackstones billionaire co-founder and CEO Stephen Schwarzman. Jonathan ("Jon") Gray, president and COO of the Blackstone Group, vaulted into the ranks of the world's 500 richest people after shares of the investment giant have soared amid a flurry of dealmaking and strong earnings. [37] This donation brings their total giving to the University of Pennsylvania to over $125 million. Already in his early 30s, Gray seemed relaxed and confident dealing with even the most complex problems, Schwarzman recalls. Gray insists he is talking in generalities. He really began to garner major attention on Wall Street during the LBO boom of the mid-2000s when, as co-head of the unit, he oversaw the joint takeover of Trizec and the LBOs of Equity Office Properties and Hilton. There are no executives at Blackstone Inc getting paid more. Last year alone, the division sold $24.5 billion in property and made $20 billion worth of new investments. Mr. Gray joined Blackstone in 1992. FORTUNE may receive compensation for some links to products and services on this website. Since then, its share price has risen 400 percent. At the heart of that strategy is thematic investing, which he pushed successfully in real estate and then spread across other business areas. How Blackstone Chose Its Heir Apparent Without the Usual Hunger Games, This content is from: I own a lot of stock, and I invest in all of our funds, so the firm is my family office, Schwarzman, 76, said at an industry conference this year. We spoke to 50 insiders to break down how Gray went from an analyst in 1992 to the pinnacle of one of the most. Meanwhile, James will take on more responsibility at the board level as executive vice chair. Its distributable earnings jumped 16% year-over-year in 2020 as the worlds largest manager of alternative assets such as real estate and private equity capitalized on the capital markets rally following the Federal Reserves moves to support the U.S. economy during the pandemic. Diving deep into Vail Mountains photo archives, photographer Gray Malin found loads of inspiration, from the vast snowy terrain and seven legendary back bowls to the mountains laidback aprs ski culture with spontaneous mountain picnics and ice bars made from snow, Bachelor of Arts/Science, University of Pennsylvania, The Wharton School.

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