Key Takeaways
- • Nearly a third of Blackstone's real estate unit's senior managing directors have departed over the past three years, according to the Wall Street Journal, as the sector's investment funds slumped.
- • Nadeem Meghji, Blackstone's global head of real estate, announced in September that he was leaving the firm to spend more time with his family.
- • Former co-head Kathleen McCarthy Baldwin departed last year after 15 years at the firm, saying it was "time for my next chapter."
- • A rocky investing period for real estate reduced returns and cut the payouts for senior partners by millions of dollars, per the WSJ report.
Summary
A string of high-level departures from Blackstone's real estate business is unsettling the world's largest property investor, according to the Wall Street Journal. The Journal reports that nearly a third of the unit's senior managing directors have left the firm over the past three years, a period in which the firm's real estate investment funds have slumped.
The most prominent exit is that of Nadeem Meghji, Blackstone's global head of real estate, who surprised the firm in September when he said he was departing to spend more time with his family. His former co-head, Kathleen McCarthy Baldwin, left last year after 15 years with the firm, saying it was "time for my next chapter."
The WSJ attributes the turnover in part to dwindling compensation. A rocky investing period for real estate hurt fund returns and cut the payout for senior partners by millions of dollars, the report says. Blackstone's real estate franchise has been one of the most closely watched businesses in alternative investing, and the departures raise questions about retention among senior talent at the firm.
The primary source does not provide further figures on fund performance, individual compensation amounts, or the identities of other departing managing directors.
The most prominent exit is that of Nadeem Meghji, Blackstone's global head of real estate, who surprised the firm in September when he said he was departing to spend more time with his family. His former co-head, Kathleen McCarthy Baldwin, left last year after 15 years with the firm, saying it was "time for my next chapter."
The WSJ attributes the turnover in part to dwindling compensation. A rocky investing period for real estate hurt fund returns and cut the payout for senior partners by millions of dollars, the report says. Blackstone's real estate franchise has been one of the most closely watched businesses in alternative investing, and the departures raise questions about retention among senior talent at the firm.
The primary source does not provide further figures on fund performance, individual compensation amounts, or the identities of other departing managing directors.
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