Blackstone Group spinning off financial advisory business

Blackstone Group is spinning off its financial advisory business and combining it with financial advisory firm PJT Partners.

The investment firm will also spin off its restructuring and reorganization advisory services group and its Park Hill fund placement businesses to PJT.

Once combined with PJT, the new business will be a publicly traded company. Paul J. Taubman, founder of PJT, will serve as chairman and CEO.

Blackstone unitholders will initially own about 65 percent of the new business. Taubman and his partners and Blackstone advisory employees that roll their units into the new business will own the remaining 35 percent.

The deal is expected to close next year. It is not subject to a vote by Blackstone's unitholders.

Shares of Blackstone Group LP, based in New York, declined 62 cents, or 2 percent, to $29.78 in premarket trading Friday.