Blackstone To Spin Off Financial Advisory Businesses, Combine Them With PJT

Private-equity firm Blackstone said Friday it will spin off its financial advisory business and its Park Hill fund placement businesses, and combine them with PJT Partners, an independent firm founded by Paul J. Taubman. The new company will be publicly traded and led by Taubman, a former Morgan Stanley investment banker. "The separation of our investing and advisory areas will create new growth opportunities for both businesses," Blackstone Chief Executive and Co-Founder Stephen Schwarzman said in a statement. The deal is expected to close in 2015. The Blackstone advisory businesses generated about $380 million of revenue in the 12 months to June 30. Blackstone shares were up 1.1% in premarket trade, but are down 5.4% in the year so far, while the S&P 500 has gained 4.3%.