In Good Company with Nicolai Tangen

Blackstone President and COO: Investment Decisions, Entrepreneurial Drive and Company Culture

Jan 2, 2025

Nicolai Tangen chats with Jonathan Gray, President and COO of Blackstone. Gray reveals how Blackstone's real estate division exploded from $5 billion to over $300 billion by prioritizing client-focused strategies. He dives into the company's entrepreneurial culture and its shift from traditional investments to high-growth sectors like AI and logistics. They also discuss the importance of emotional intelligence in hiring, effective communication within teams, and maintaining innovation in the face of challenges. A masterclass in leadership awaits!

49:24

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Episode guests

Jonathan Gray

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Episode notes

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Quick takeaways

Blackstone's commitment to delivering premium returns is fundamental to its success in navigating high-risk private equity and real estate investments.

The company's entrepreneurial culture fosters innovation and inclusivity, allowing teams at all levels to contribute to the rigorous investment decision-making process.

Deep dives

Keys to Blackstone's Success

Blackstone's success can be attributed mainly to its unwavering focus on delivering premium returns for its clients. This commitment to achieving excess returns is particularly important in private equity and real estate, where the capital is tied up for extended periods and poses higher risks. For example, Blackstone aims to generate returns that exceed traditional investment benchmarks significantly, reflecting the value of investing in private markets. The firm's entrepreneurial culture, championed by leaders like Steve Schwarzman, has also propelled its dynamism and growth strategy, allowing it to explore new geographical markets and products continually.

Intro

2min

Driving Entrepreneurial Growth in Investment Strategies

2min

Characteristics of a Successful Business

2min

Evolving Investment Philosophy and Strategic Focus at Blackstone

2min

Navigating Investment Decisions

18min

Navigating Data Centers and Investment Opportunities

4min

Private Equity Evolution and Credit Landscape

7min

Building Culture and Community in Investment

12min

oin Nicolai Tangen as he sits down with Jonathan Gray, COO of Blackstone and former head of its real estate division. Gray shares what drives Blackstone’s success, the evolution of their investment philosophy, and the process for identifying outstanding businesses. He also provides insights into Blackstone's entrepreneurial culture, their approach to private equity and credit markets, and why scale and innovation are key to staying ahead. Tune in for a masterclass in leadership and investing!

In Good Company is hosted by Nicolai Tangen, CEO of Norges Bank Investment Management. New full episodes every Wednesday, and don't miss our Highlight episodes every Friday.

The production team for this episode includes Isabelle Karlsson and PLAN-B's Niklas Figenschau Johansen, Sebastian Langvik-Hansen and Pål Huuse. Background research was conducted by Sara Arnesen.