NEW YORK CITY—Jonathan Gray, who built Blackstone's real estate business into the world's largest, is now taking on day-to-day management of the entire operation. Blackstone said Tuesday that Gray would succeed Tony James as president and COO as James moves into a new role as executive vice chairman. Ken Caplan and Kathleen McCarthy have been named global co-heads of real estate, succeeding Gray.

Gray joined Blackstone straight out of college in 1992 and has worked there ever since. ““I've 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,” says Steven Schwarzman, Blackstone's co-founder, chairman and CEO. “His strong values and passion for excellence are the embodiment of Blackstone's core principles. 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.”

Leader of Blackstone's real estate business since 2005, Gray has grown it into a platform which has more than $115 billion of investor capital and which constitutes the single biggest driver of the firm's revenues. Despite Blackstone's “tremendous success” to date, Gray counts himself “quite excited about the opportunity to continue to innovate for both our investors and shareholders. I look forward to working closely with Steve, Tony and our immensely talented team to help lead this growth while maintaining the highest standards of integrity and investment discipline.”

Caplan has been with Blackstone since 1997; currently he's senior managing director and global CIO of the real estate group. During his 21 years with the firm, Caplan has been involved in over $100 billion of real estate acquisitions globally.

McCarthy has been in the real estate space her entire career; currently she's senior managing director and global COO of Blackstone's real estate platform, which she joined in 2010. Prior to Blackstone, she spent a decade in real estate investments and M&A.

“Having worked closely with Ken and Kathleen for many years, I have tremendous confidence in their ability to continue the group's strong track record,” says Gray. “They are excellent investors and operators with remarkable judgment, capable of driving the group to new heights.” He will remain chairman of the real estate investment committee.

James joined Blackstone in 2002 as vice chairman and COO. He took on the presidency of the firm upon the retirement of co-founder Peter G. Peterson. Among the major initiatives James has led are the firm's 2007 initial public offering, the acquisitions of GSO and Strategic Partners, the spin-off of the firm's advisory business into PJT Partners, and the founding of Blackstone's Tactical Opportunities, Core Private Equity, Infrastructure, Insurance Solutions and retail initiatives.

“I have had a wonderful 15 years at Blackstone so far and still savor every minute of it,” says James. “One of my most important responsibilities is succession, and I am blessed to have a spectacular leader and investor like Jon Gray to whom I can hand the reins.”

Instant Insights /

Jon Gray Named President at Blackstone, Succeeding Tony James

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