Business Context and Reporting Period
This Form 8-K, dated June 28, 2019, reports the completion of the conversion of The Blackstone Group L.P. (the "Partnership") into a Delaware corporation named The Blackstone Group Inc. (the "Corporation"). The conversion became effective at 12:01 a.m. Eastern Time on July 1, 2019.
Key Financial Metrics
This filing is a current report regarding a corporate structural change and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. The filing text does not provide a clear value for any financial metrics.
Material Changes Versus Prior Period
- Entity Structure: The registrant changed from a Delaware limited partnership to a Delaware corporation.
- Security Conversion:
- Common Units converted 1-for-1 into Class A Common Stock (non-voting).
- Special Voting Units converted 1-for-1 into Class B Common Stock (non-voting).
- General Partner Units converted 1-for-1 into Class C Common Stock (voting).
- Trading Status: Trading of Common Units on the NYSE ceased, and trading of Class A Common Stock commenced under the existing ticker symbol "BX" on July 1, 2019.
- Governance: Oversight shifted from the board of directors of the general partner to the board of directors of the Corporation. The Corporation is classified as a "controlled company" under NYSE rules due to the voting structure.
Guidance, Outlook, and Risks
Management Commentary: The filing states that Class A common stockholders retain substantially the same rights and obligations as the previous common unitholders. The board composition and executive officers remained the same immediately following the conversion.
Risks and Contingencies: The filing highlights the controlled company status, which allows the Corporation to qualify for exceptions from certain NYSE corporate governance rules. The single share of Class C Common Stock, held by an entity controlled by Stephen A. Schwarzman, holds the voting power for the election of directors and other stockholder matters.
Important Facts for Investor Verification
- Verify the effective date of the conversion (July 1, 2019) and the corresponding change in trading symbols on the NYSE.
- Confirm the voting rights structure: Class A and Class B shares are generally non-voting, while Class C shares hold voting control.
- Review the filed Certificate of Incorporation and Bylaws (Exhibits 3.2 and 3.3) for specific terms regarding the "controlled company" status and governance exceptions.
- Note that this filing does not include financial performance data; investors should refer to the most recent 10-Q or 10-K for financial metrics.