00:00The world's biggest private equity firm is trying to appeal to the retail masses.
00:04Blackstone is well known to pensions, endowments, and working with the world's richest institutions.
00:08But it could find its way into your 401k and more millionaire savings.
00:12That's largely because of John Gray, the guy who sometimes might pop up on your LinkedIn page
00:16spouting investment advice while running. Over the years, the Blackstone president has asked
00:20executives to think beyond chasing high-octane bets and churn out steadier yields for a bigger
00:24swath of investors. And Gray has rolled out a more retail-friendly playbook. Blackstone has
00:29about 15% of its assets and funds where money can flow in and out in some measure. That's a shift
00:33from private equity's old playbook of raising fixed sums of money and locking them up for years.
00:38There's perils to being a retail superstore. When money floods in, dealmakers must put surging
00:42inflows to work even at steep prices. And in bad times, investors can bulk. Big clients,
00:47meanwhile, are concerned about sharing the best deals with individuals like you and me.
00:50How Gray manages Blackstone's evolution will define his legacy. Steve Schwartzman,
00:5478, will always be the firm's founder and statesman and remains its CEO.
00:58But he's since ceded much of the daily management of the firm to Gray,
01:01who runs the daily business and is the architect of the firm's growth.
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