Blackstone to Appoint Ex-Canadian Prime Minster to Board

Date: Wednesday, June 6, 2007
Author: Emma Trincal, HedgeWorld

NEW YORK (—Blackstone Group Management LLC will appoint Brian Mulroney, the former Canadian prime minister from 1984 to 1993, as director before The Blackstone Group LP goes public.

The information was contained in a second updated prospectus Blackstone filed with the Securities and Exchange Commission yesterday [June 4].

Blackstone Group Management is The Blackstone Group's general partner.

The Blackstone Group is only a few weeks away from launching its $4.75 billion initial public offering. It plans the sale of 133.3 million common units to be priced between $29 and $31 each. The new filing did not give any timeframe for the deal, but a source close to Blackstone said the IPO could happen anytime this month or in July.

Most of the new information contained in the revised filing pertained to new appointments for Blackstone Group Management's board of directors. Besides Mr. Mulroney, who is currently a senior partner and international business consultant for the Montreal law firm Ogilvy Renault LLP, Blackstone intends to appoint to its board Lord Nathaniel Charles Jacob Rothschild. Lord Rothschild founded RIT Capital Partners plc in 1988 and currently is the firm's executive chairman. He also co-founded Spencer House Capital Management LLP in 2006 and is its current chairman. Lord Rothschild is expected to join the board before the IPO.

In addition, William G. Parrett, the former chief executive of Deloitte Touche Tohmatsu, is expected to join the board of directors before the end of 2007 after his retirement from Deloitte & Touche USA LLP as senior partner.

The S1 filing indicated that Messrs. Mulroney, Rothschild and Parrett each will receive a $100,000 annual cash retainer. When appointed, each also will get 10,000 deferred restricted common units.

After the IPO, Messrs. Mulroney and Rothschild will join Tomilson Hill's audit committee. Mr. Hill, who heads up Blackstone's fund of hedge funds business, will be replaced in the audit committee by Mr. Parrett when Mr. Parrett joins the board later this year, according to the revised prospectus.

The S1 filing offers no information on the salaries and bonuses for Blackstone's senior executives, with the compensation table still blank for Stephen A. Schwarzman, chief executive; Hamilton James, president and chief operating officer; Mr. Hill, vice chairman; and Michael Puglisi, chief financial officer.

A call to a Blackstone spokesman was not immediately returned.