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11 ex-Blackstone credit pros who joined shops like Ares and Angelo Gordon and are now helping them go bargain hunting during the downturn

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Jonathan Gray Blackstone

  • Numerous private-equity firms are raising distressed-debt funds as they seek to buy cheap assets that have been throttled by the coronavirus pandemic.
  • Of all the PE firms known for their distressed chops, Blackstone has experienced a series of departures from its credit ranks over the past four or five years. 
  • Many of them were in its distressed division within GSO, after Blackstone decided to shutter its hedge fund and pursue longer-term investments instead.
  • We took a look at where 11 of their top distressed alumni have landed. Nowadays they're occupying senior leadership roles at Vista and Ares, and staffing hedge funds to pursue trades. 
  • Visit Business Insider's homepage for more stories.

It's a hot time for private-equity shops to raise distressed-debt funds, as the coronavirus pandemic tanks companies across energy, retail, and hospitality, presenting opportunities for investors to put capital into businesses they believe will survive and deliver future returns.

Distressed-debt investing can take many forms.

This includes shorter-term trades: buying portions of a company's debt obligations and then selling it off at a higher valuation, days or weeks later. And it also includes longer-term strategies, which can involve buying debt or bankruptcy claims in a struggling company and then taking control during restructuring.

It can be quite lucrative, but it's also a niche of investing that's more complex and inherently riskier than many others, often requiring legal savvy in addition to investing chops.  

Some of the largest players include Apollo Global Management, Oaktree Capital, Cerberus Capital Management, and Blackstone GSO. 

While many of them have been making headlines for raising billions to finance their credit operations, Blackstone has made news for a different reason.

In a rare public feud, Blackstone this summer took issue with a departing credit leader joining another firm.

It was just the latest of a string of senior Blackstone exits that had come out of GSO since 2017, many of them from its distressed-credit investing team. GSO's distressed business has undergone a significant overhaul in recent years, including disbanding its special situations hedge fund and folding its assets into a longer-term strategy. 

It probably didn't help matters that the exodus of senior execs required GSO to renegotiate terms with investors and accept concessions last fall, including lower fees. 

After some lean years during the bull market run, distressed investing has ramped back up, leaving insiders to question whether Blackstone may be regretting letting a murderers row of talent walk so easily.

Departing execs have almost universally found success post-GSO, either starting profitable funds themselves or taking high-profile roles at powerhouse investment firms like Ares, Vista, Elliott Management, and Angelo Gordon. 

On the other hand, some are quick to point out that distressed investing has always been a small piece of the massive Blackstone profit machine — and though they unquestionably lost top-tier players, it's not as though the firm abandoned the strategy. 

At very least, the execs who did leave are having a little bit of schadenfreude, one insider observed, as other areas in which Blackstone is lending, like the energy industry, faces challenges throughout the pandemic.

A Blackstone spokesperson said in a statement that GSO has continued its growth to $129 billion in assets under management and is coming off a strong quarter of performance overall, its best since the global financial crisis.

"The integration of GSO into Blackstone has led to large scale deal opportunities, a rigorous investment process and a culture that prizes teamwork," the statement said.

"Yes, a number of intentional changes have been made to the distressed investing unit which have been quite positive for performance and culture."

[Read more on the backstory of those changes here.]

Below, Business Insider tracked the departures from GSO's distressed unit over the past five years. Here are the firm's 11 top distressed-investing alumni making impressive moves and poised to reap profits for rivals as the economic storm clouds darken. 

Darren Richman, Kennedy Lewis

Richman left Blackstone in early 2017 to co-found Kennedy Lewis, an opportunistic credit investor focused on middle-market companies. His firm would later go on to hire other departing GSO executives, including Doug Logigian and Dik Blewitt. 

Richman isn't the most gregarious back-slapper of GSO alums, but he's known as one of its wisest investors.  

One of his biggest wins was a gamble that MBIA Inc would survive a cash crunch after the 2008 financial crisis and avoid seizure by regulators —a wager worth about $500 million, The Wall Street Journal reported.

One of his friends says Richman has a dry sense of humor, and has a razor-sharp, analytical mind. Before he joined GSO, he held stints at Goldman Sachs and Deloitte and holds an MBA from New York University Leonard N. Stern School of Business and previously studied accounting at University of Hartford.

Jason New, Onex Credit

New, who started off his career as a restructuring lawyer at Sidley Austin, could assess risk well in the bankruptcy context.

One source who has worked with New said he excels at maneuvering through the intricacies of distressed processes, calling him perhaps the best operator in the industry at getting into thorny situations and navigating a way out. 

 fNew was the driving force behind GSO's massively profitable bet on TXU, the Texas coal and nuclear power company that capsized under the weight of a $45 billion LBO in 2007. New bought up hundreds of millions in TXU debt that paid off handsomely after the company, renamed Energy Future Holdings, filed for bankruptcy in 2014.

But at GSO, he also happened to be the head of distressed debt investing at an inconvenient time, when Blackstone looked to wind down its hedge fund business, according to people who know him.

"I think Jason took a lot of the unfair blame from up top in headquarters," said one source who has worked with him. "He was one of the most fair, down to earth people — always willing to open the aperture and listen to conflicting ideas and different investment theses." 

New stayed on at Blackstone until he departed for Onex Credit in April of this year. Some insiders thought he was a possible contender for the top spot at GSO for a time — a role now occupied by Dwight Scott — though others dispute this.

He graduated from Allegheny College and received his law degree from Duke University School of Law.

Scott Eisenberg, Francisco Partners

Eisenberg just helped close a $750 million opportunistic credit fund at Francisco Partners as part of a broader push to invest in technology companies. 

Eisenberg, known for having an uncanny pulse on the market with a focus on tech and media, exited GSO in 2017 to head up credit for Francsico Partners. 

"He is the smart money," one person who knows him said. 

Eisenberg has since been involved in supporting companies like ZocDoc and Talentsoft at Francisco Partners, according to recent media coverage

Eisenberg graduated from The George Washington University and received his MBA from The Wharton School.

Ryan Mollett, Angelo Gordon

Mollett exited GSO in 2019, joining Angelo Gordon as head of their distressed and corporate special situations group.

By all accounts, he was one of the most senior members of the GSO crew and responsible for some of its biggest trades, including Hovnanian. He marshaled GSO's 2014 bet on casino operator Caesars Entertainment, a messy affair that attracted some of the largest names in investing — including Apollo, Appaloosa Management, Elliott Management, and Oaktree — and resulted in a complicated, protracted bankruptcy proceeding

"He is a risk taker," said one person close to him.

Mollett, who specialized in leisure and gaming at GSO, also isn't afraid to express his opinions if he's adamant he's right.

At Angelo Gordon, it looks like he's gearing up to take on some more distressed bets, after having raised $3.5 billion from investors for its inaugural AG Credit Solutions Fund.

Jacob Gladstone, Angelo Gordon

Joining Mollett at Angelo Gordon is Jacob Gladstone, a younger exec who Blackstone GSO had held up as a rising star to limited partners. 

Gladstone had been a principal at GSO and became a managing director at Angelo Gordon in May.

Word on the street is that Gladstone was Mollett's protégé and he could have written his own ticket at GSO if he had wanted. But he chose to follow his mentor. 

One person close to Gladstone said he felt a certain frustration toward management at Blackstone as its execs became more involved in the GSO investment committee. 

Gladstone graduated from Franklin & Marshall College in 2010.

Craig Snyder, Ares Management

Snyder saw the writing on the wall in 2017 and joined Ares Management, where he is a partner and the head of distressed trading. 

He currently serves as a member of the management committee of Ares Management and the firm's private-equity group's special opportunities investment committee. 

His name was also behind a $3.5 billion raise of investor capital announced in June — money that is to be spent on companies undergoing disruption.

"The team pursues a differentiated strategy that pivots opportunistically between private and public market sourced opportunities and seeks to partner with management teams by embracing an 'activist for good' approach,"Ares said in an announcement. 

At GSO, Snyder headed up trading for the group and served as a portfolio manager and investment committee member for its distressed special situations funds.

He focused on both public and private markets. Previously, he had been a senior trader for a distressed-debt fund at Kingstreet Capital.

Snyder graduated from Bucknell University.

David Flannery, Vista Credit

Flannery joined Vista Credit in 2018, expanding the software investor's debt platform. 

He hit the ground running, with Buyouts reporting in 2019 that Vista was gearing up to raise its third credit fund. By October, it had raised $700 million, and media outlets reported that it could raise up to $3 billion. 

In his role as president of Vista Credit, Flannery reports directly to founder Robert Smith and has been behind some of its largest loans in the tech, data and software market. 

That includes a $175 million global recapitalization of Meltwater, a media intelligence company

At GSO, he was considered an "adult in the room" given his level of seniority, though he was there for a relatively short period of time compared to other execs: from April 2016 to Nov. 2018, according to his LinkedIn

Flannery graduated from Villanova University. 

Brad Feingerts, Elliott Management

Like Gladstone, Feingerts started out in the junior ranks as an analyst in the special situations hedge fund at GSO, ascending quickly under New and Richman as the division's overall growth exploded. 

He exited in early 2017 not long after Ostrover packed his bags, landing at Elliott Management, the prestigious and feared hedge fund run by Paul Singer. 

Now, he's set to join another hedge-fund powerhouse. Feingerts is starting at Citadel in September, working to build out the credit business under Pablo Salame, the ex-Goldman Sachs trading honcho who signed on with Citadel last fall

Feingerts joined Blackstone fresh out of school in 2011 — he got his JD/MBA at the University of Chicago immediately after graduating from the University of Pennsylvania — initially in the restructuring business before shifting over to the distressed-credit team in 2013.

Akshay Shah, Kyma Capital

Referred to by colleagues as "the man of many faces," Shah is the shadowy figure who appeared in the FT profile when Blackstone's default manufacturing practices emerged in the spotlight.

"I don't believe it's classified as insider trading, but it's pretty damn close," one retired trader who came up against Shah and GSO told the FT. "It's quite frankly shocking that they were able to get away with doing that for so long and that no one was prepared to stand up to it."

Shah gave the FT a straight forward enough reason for leaving GSO to launch his own firm, Kyma Capital, in 2018. 

"The reason for leaving was simple: the European stressed and distressed opportunity set is a middle-market opportunity set," he said. "These sized companies don't lend themselves to megafunds." 

Michael Fabiano, Platinum Equity

Another GSO defector with an entrepreneurial streak, Fabiano left GSO in 2018 to start the credit-investing platform at Platinum Equity, the hedge fund run by billionaire Tom Gores with $19 billion in assets under management. 

The new global head of credit didn't wait long to bring aboard a trusted GSO comrade, hiring Patrick Fleury, an ex-GSO managing director who specialized in oil and gas, in 2019, to help trade both public and private high-yield and distressed situations. 

Fabiano got his start as an investment banker in Morgan Stanley's leveraged finance group in the early 2000s before getting in on the ground floor with GSO in 2005. 

Fabiano graduated from Georgetown and got his MBA at the University of Chicago.

Zachary Crump, Finepoint Capital

Crump, who was based in London, left his post as global head of trading within GSO Capital in early 2019. He's since been the head trader at Boston-based hedge fund Finepoint Capital, which was launched by Baupost alum Herbert Wagner.

The move to Finepoint is a homecoming for Crump, who hails from Dorchester, Massachussetts, and graduated from Boston College in 2009.

After undergrad, Crump joined Barclays distressed-trading desk, where he worked for nearly six years before joining GSO.

SEE ALSO: POWER PLAYERS OF DISTRESSED CREDIT: The 11 Wall Street stars trading busted bonds, bankruptcy claims, and other fire-sale securities

SEE ALSO: Meet 10 Wall Street power players picking through up to $1 trillion in new distressed debt opportunities to bag huge returns

SEE ALSO: PIMCO has raised $5.5 billion for private credit funds despite a hellacious March — and is telling investors it's the best opportunity in a decade

Join the conversation about this story »

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Investing legend Byron Wien says economy will be in 'terrible trouble' if Congress doesn't approve additional unemployment benefits

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Byron Wien

  • Byron Wien told CNBC that the economy is dependent on fiscal and monetary policy and will be in "terrible trouble" if Congress cannot approve additional unemployment benefits. 
  • Wien made the comments after jobless claims indicated 1.1 million additional Americans filed for unemployment. 
  • The legendary investor said he's upset that the economy has no "natural momentum" of its own.

Veteran investor Byron Wien told CNBC on Thursday that the economy will be in "terrible trouble" if Congress doesn't approve additional compensation to unemployed workers.

Wien said this shortly after the Thursday jobless claims report indicated 1.1 million Americans filed new claims for unemployment. The number was higher than expected, and followed two consecutive weeks of declines in jobless claims. Wien said it appears like the escalation in coronavirus cases has caused a setback and may be the reason for the claims increase. 

Read more:Steven Goldstein successfully played the market for 25 years before starting to coach traders who manage billions. Here are his 15 'golden' rules that helped him ensure investing success.

"What I'm upset about is the economy hasn't developed any natural momentum on its own. It's really dependent on fiscal and monetary policy to keep it going," the vice-chairman of Blackstone Private Wealth Solutions said. He added that the economy is only about a quarter of the way back to where it was in 2019, and unless it develops "some natural momentum," it's not going to get halfway or three quarters of the way back. 

"Until people start flying again and traveling again we won't get all the way back, and that's probably a 2022 phenomenon," Wien said. 

Meanwhile, Congress is in recess and a deal for an additional stimulus plan is unlikely to be reached until September. 

Join the conversation about this story »

NOW WATCH: Here's what it's like to travel during the coronavirus outbreak

An inside look at the investment strategies guiding Blackstone's real estate portfolio — and why it's still betting big on logistics while the competition crowds the asset class

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Ken Caplan Blackstone Real Estate

  • Blackstone, the world's largest corporate landlord, has $46 billion of dry powder allocated for real estate, as the pandemic commercial real estate shakeout begins.
  • Global co-head of real estate Ken Caplan spoke with Business Insider about how the firm is thinking of investing its money in the post-lockdown landscape. 
  • Logistics, already the biggest part of Blackstone's portfolio, remains a major opportunity, even as others look to the already crowded asset class.
  • While office, retail, and hotels have all had some ill-effect from the pandemic, Blackstone continues to see long-term tailwinds about the hotel and certain sectors of the office market, while retail is more challenging.
  • Visit Business Insider's homepage for more stories.

When the world's largest corporate landlord Blackstone acquired GLP's logistics assets last year in the largest private real estate deal ever, it was just the tip of a much bigger iceberg. The firm has been laser-focused on the real-world infrastructure that supports e-commerce for a decade, adding over one billion square feet of logistics space in more than 200 separate transactions in that time. Logistics assets are now the largest asset class in Blackstone's portfolio. 

This strategy was winning before the coronavirus, but now it's looking even better as online shopping soars amid the pandemic. 

"Logistics is a very popular sector right now, but not one we just decided last week was interesting," Ken Caplan, global co-head of real estate, told Business Insider. 

Caplan has been thinking about the broader industrial world since he first started at the firm in 1997, and actually worked on the firm's first warehouse purchase in Europe back in the late 90s. The firm's current strategy on logistics took hold around 2010. At the time, logistics was only 2% of their real estate portfolio, and now makes up a third of its $324 billion real estate portfolio. 

Blackstone, which is currently sitting on a record amount of dry powder, $156 billion, is starting to gear up to invest in assets in the post-COVID world. It has $46 billion allocated for real estate investments. 

Caplan sat down with Business Insider to talk about how the firm is thinking about investing in the time of COVID. Blackstone, famous for its thematic investing style, is using data from its properties to come up with themes about the changing world, and then investing based on those themes. The pandemic has shuffled some of the deck, but the firm believes that many of the themes it was following continue to remain good investments now.

"Our business is driven by investing thematically in sectors with powerful secular tailwinds, like content creation, logistics, and life science," Caplan said.

Despite being popular, logistics real estate is undervalued 

The pandemic's effect on logistics real estate can not be overstated. It turned a hot sector into the hottest sector, as more people used e-commerce for more purchases than ever before. Prologis, the largest REIT in the logistics space, is actually trading at a higher price per share now than it did before the public markets collapsed in late February. REITs in other categories like retail or hotels can't say the same.

This has brought more players into the space than ever before. While there aren't many companies that can compete with Blackstone on giant transactions like the GLP deal, more and more players of all sizes are trying to strike gold in the category. 

Read more:Cold storage is 2020's red-hot real estate play. Here's how the private-equity backed industry leader is spending $500 million to tighten its grip on the market.

Still, Caplan and Blackstone continue to see many opportunities for new deals, and new opportunities to make money. The reasoning is deeply tied to the theme that undergirds their investments, e-commerce. 

Caplan said that the market is still undervaluing just how essential and valuable logistical real estate is, and the market hasn't yet caught up to the realities of what e-commerce means.  

"There has been such a fundamental shift in utility for this asset and demand for this asset that the value has shifted very meaningfully as well, and we think that it is still under-appreciated," Caplan told Business Insider. 

There are still great opportunities for the firm, he added, especially in markets that don't have as high levels of e-commerce adoption as the US, such as Europe and parts of Asia.

Why offices are still good opportunities

On Blackstone's second-quarter earning's call, COO Jon Gray said that the firm would look to invest in offices and hotels, where challenges appear to be more "cyclical," while avoiding the retail sector which has more fundamental "secular" issues. 

Some think that remote work has the potential to be a long-term threat to offices. However, Blackstone's view here is quite clear: while fully remote work is able to keep businesses operating in a crisis, it poses significant challenges for training new employees, collaboration, and company culture.

While some office locations, like New York City, will see significant challenges in the near-term, Blackstone is confident that office demand will return. It doesn't have the same feeling about struggling retail. 

"One of the challenges in retail is that it oftentimes is not a better experience than the alternative, whereas, with office, it is often a better experience than the alternative," Caplan said, comparing the ease of e-commerce to the struggle of running a building remotely. 

Read more:Markets for retail and office space are under enormous pressure. A foreclosure in the works for a building on NYC's glitzy Fifth Avenue shopping corridor shows just how bad it's getting.

In the office space, Caplan said there are "powerful secular tailwinds" for the life sciences and content-creation/media sectors specifically. Both sectors require in-person activity, whether a lab or a movie studio, which insulates them from the potential downside of an increasingly remote world. 

These trends, which Blackstone was already invested in, have been bolstered by the effects of the pandemic. Blackstone's life sciences office company, BioMed, is one of the firm's four largest investments, and the firm owns over half of the Class A office space in film studio-rich Burbank, California.

Blackstone has already completed another major transaction since the pandemic began: signing a deal in late June for a 49% stake in three Hollywood studios and five offices owned by Hudson Pacific Properties and valued at $1.65 billion. These acquisitions count Netflix, CBS, and Walt Disney as tenants. Disney is also a tenant of some of Blackstone's Burbank office space. 

Outlook on hotels and retail

The hotel industry has understandably been hit extremely hard by the coronavirus, with some hotels having essentially no income at all for the first two months of the pandemic. However, Blackstone still believes that the long-standing trend of increased travel will continue once consumers feel comfortable to travel again. 

"In other areas where we've had high conviction in a longer-term trend and have seen that trend interrupted, like global travel, we believe it will return over time," Caplan said.

Blackstone sold Hilton after 11 years in 2018, but the company still owns hotels. Blackstone hotels that have reopened are beginning to see demand from regional leisure travelers, though business travel will likely take longer to bounce back.

Read more:Investments in risky hotel debt could get wiped out as travel gets slammed — and one group of lenders may see an outsized hit

While the larger trend of online shopping dims most enthusiasm for the space, some retail, especially a shopping center anchored by a grocery store or a high performing Asian mall, remains an attractive deal.

"In retail, we see a more secular change happening, where you have this shift to online or e-commerce that is reducing demand in the space and causing challenges that we don't think will reverse," Caplan said.

SEE ALSO: Real estate giant CBRE has an 'unparalleled' amount of data. Its tech chief lays out how it's putting it to good use.

SEE ALSO: Real-estate developers are betting on a risky strategy to reimagine retail space in hopes of rescuing struggling shopping centers

SEE ALSO: Meet the 4 dealmakers driving Blackstone's $325 billion commercial real estate portfolio. They walked us through how they're thinking about opportunities in the downturn.

Join the conversation about this story »

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Blackstone is encouraging US workers to return to the office after Labor Day, and that's putting some employees on edge

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new york andrew cuomo masks coronavirus pandemic

  • Private-equity giant The Blackstone Group is gearing up for US employees to return to the office after Labor Day, according to memos seen by Business Insider.
  • Blackstone is partnering with Vault Health to provide COVID home testing kits to US employees before they return to the office, according to the memo written by HR director Paige Ross.
  • All investment professionals and asset managers will have a test sent to their home by Aug. 31.
  • One person with direct knowledge of the return-to-office plans said calls within the firm were strongly encouraging investment teams to come to the office, unless they had a "valid reason" to remain remote.
  • A Blackstone spokesman said in a statement that the health and safety of employees is the firm's top priority.
  • Visit Business Insider's homepage for more stories.

Private-equity giant The Blackstone Group is gearing up to have US employees return to the office after Labor Day, according to a memo seen by Business Insider. 

Workers' return will be contingent on taking a COVID test and proof of a negative result, according to the memo sent Aug. 19 by global head of human resources, Paige Ross.

In the effort to transition employees back to the office, Blackstone is partnering with Vault Health to provide COVID home-testing kits to all US employees, Ross wrote. 

All investment professionals and asset managers will have a test sent to their home by Aug. 31, the memo said. Those who do not plan on coming into the office post-Labor day were instructed to hold onto the test "to use at the appropriate time." 

Other types of employees electing to return to the office the week starting Sept. 8 were told in the memo to pre-register. 

One person with direct knowledge of the return-to-office plans said calls within the firm were strongly encouraging investment teams to come to the office, unless they had a "valid reason" to remain remote.

A second person familiar with the move said that he had spoken with junior Blackstone executives who felt pressure to return to the office, despite the official company policy that the return to office was voluntary. 

Reached for comment on Thursday, a Blackstone spokesman said in a statement that the health and safety of the firm's employees is the firm's top priority.

"We've made crystal clear repeatedly to all of our people that returning to the office post Labor Day is purely voluntary, and that anyone who feels uncomfortable should stay home without fear of judgment or any impact on perception of performance," he said. "This has been communicated multiple times directly by senior management through email, our weekly global employee calls, online intranet resources, and many other forums."

The statement went on:

"While the office has been open since mid-July, we expect an increased though still low percentage of employees may choose to return to the office in the Fall, which is why we've put in place stringent, best-in-class testing and health protocols to protect their safety."

Read more: Blackstone's co-head of real-estate explains why the giant investor is still betting on office properties — and lays out where demand for in-person workspaces are the strongest

The move comes as other Wall Street firms grapple with the same question of when and how to return to work. Elsewhere on Wall Street, JPMorgan has said that it would have employees return to work, but would cycle between having them work in the office and at home, according to a CNBC report this week. 

Blackstone, with more than $500 billion in assets under management, is the largest private-equity firm and owns companies including casinos and outdoor parks. 

It also is a major real-estate investor, with ownership interests in The Cosmopolitan and Bellagio hotels on the Las Vegas Strip and Stuyvesant Town, the largest apartment complex in Manhattan. And its president, Jon Gray, is the chair of Hilton Worldwide. Commercial real-estate markets have tanked as many firms contemplate their future physical office needs.

The memo from Paige Ross said that if employees were traveling from a hot zone prior to Labor Day, they must quarantine for at least five days upon returning home before coming into work.

"In addition, you must wait at least five days before taking a test and receive a negative result prior to returning to the office," the memo said. "Please note, outside of work, New York requires a quarantine for 14 days."

Ross sent a follow up note on Aug. 26, outlining a range of safety protocols including "enhanced cleaning, ventilation and air filtration" as well as "flexible arrival and departure times to avoid congestion."

In the U.S., she said, the firm is continuing to work on regular, periodic testing options and will have more details for employees on this initiative in the coming weeks. In Europe, she said, the firm will continue to monitor local testing practices and adjust accordingly. 

That memo included an FAQ link that noted attendance is voluntary, but that investment and RE asset-management professionals "are encouraged to come into the office if their circumstances (e.g. child or elder care issues, health issues, etc.) permit."

"If, however, you are otherwise feeling anxiety or are uncomfortable returning to the office at this time because of COVID risks, you do not need to do so," the FAQ said.

Read more:

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Facebook is eyeing offices in cities like Dallas, Atlanta, and Denver to act as 'hubs' to support 50% of its workers staying remote — and it's a move that could upend Silicon Valley and NYC real estate

Goldman Sachs designed its glitzy London office with tons of amenities, but little parking. In a post-pandemic world, it could be a big snag as the firm looks to bring workers back in.

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Walmart, Microsoft, and Oracle are just some of the companies jostling to buy TikTok. Here's who is, who isn't, and why they might want it. (GOOGL, MSFT, ORCL, NFLX)

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tiktok potential buyers

  • TikTok parent company ByteDance is reportedly just days away from closing a deal to sell off its US operations, thwarting the Trump administration's threats to issue a nationwide ban.
  • In the few weeks since a TikTok acquisition was first rumored, a wide realm of companies and firms have been linked to the deal as interested buyers in a stake of the app's US business — including Netflix, Twitter, Apple, and Alphabet.
  • There appear to be two groups that have emerged as frontrunners in the bidding war: a joint offer between Microsoft and Walmart that's backed by ByteDance's CEO, and another from Oracle that has the support of President Trump and a group of ByteDance's US investors.
  • These are all the names that have been linked to the TikTok deal, valued between $20 billion and $50 billion. We've included details about how an acquisition would benefit their businesses, and how serious their interests appear to be.
  • Visit Business Insider's homepage for more stories.

SEE ALSO: These are the 29 power players steering TikTok's rise in the US

Microsoft

Who are they: A trillion-dollar company specializing in software and cloud computing — and  one of the only US Big Tech companies not featured in Congress' recent hearings on tech antitrust practices. The company's notable acquisitions include Minecraft (2014, $2.5 billion), LinkedIn (2016, $26.2 billion), and GitHub (2018, $7.5 billion).

What could they get out of buying TikTok: Reports have indicated that a deal could see TikTok transition its platform over to Microsoft's Azure cloud computing service (TikTok currently uses Google's cloud service), securing the viral app as one of the tech company's biggest clients. The deal could also be a way for Microsoft to strengthen its consumer business and likeability factor with younger generations, analysts told Business Insider.

What do we know about the deal: Microsoft has been the bonafide frontrunner in acquisition talks since the end of July, even before news first broke that Trump was considering forcing TikTok's parent company, ByteDance, to sell off its US business.

ByteDance has close connections to Microsoft through CEO Zhang Yiming, who briefly worked at Microsoft years ago and appears to be leading the negotiation. Moreover, TikTok's global general counsel, Erich Andersen, is a 25-year Microsoft veteran who worked closely with Microsoft president Brad Smith before leaving at the start of 2020.

Microsoft's deal may also include the participation of Walmart for a minority stake in the app. The retail giant confirmed its interest this week, but it doesn't seem that its inclusion in a Microsoft deal is guaranteed. 

How serious are they: Very serious. Until this week, Microsoft was the only company to confirm it was in discussions with ByteDance. Microsoft has said it's bidding for TikTok's operations in the US, Canada, Australia, and New Zealand — a deal valued between $20 billion and $50 billion. Additionally, recent court documents show that Microsoft had signed in late July a "nonbinding letter of intent" to acquire TikTok's US operations, showing just how far talks between the two entities have gone.



Oracle

Who are they: Oracle is one of the largest enterprise software companies in the world, so its interest in TikTok is curious.

What could they get out of buying TikTok: On its face, Oracle's interest in a consumer brand doesn't make sense, analysts told Business Insider. Some have weighed the idea that Oracle's bid is a "headfake" designed to make an acquisition by Microsoft — an Oracle competitor — more difficult and more expensive. But TikTok could also give Oracle access to a trove of big data from users, a potential boon to the company's cloud service.

What do we know about the deal: Oracle belatedly entered acquisition talks in mid-August, but the company is now considered one of the top-two contenders to acquire a majority stake in TikTok's business. Oracle appears to have two major entities backing its bid: a group of ByteDance's US investors and the White House.

The investors, which include Sequoia Capital and General Atlantic, reportedly see Oracle as their best bet to get "a piece of the action" in the TikTok acquisition. Top Oracle executives — cofounder Larry Ellison and CEO Safra Cats — also have close ties to President Trump, which could minimize short-term scrutiny from the US government.

Trump has also spoken out in support for Oracle's bid, telling reporters he thought Oracle could "handle" TikTok.

How serious are they: Moderately serious. Oracle has not confirmed its interest in acquiring TikTok, but multiplereports this week show the company is a leading candidate to take over TikTok's US business, with a potential bid of $20 billion, according to The Wrap.



Walmart

Who are they: A retail giant with a $373 billion market cap that's emerged as a wildcard in TikTok talks among the vying tech companies.

What could they get out of buying TikTok: Positioning Walmart as the leader in TikTok's acquisition would be a fraught deal, given the retailer's inability to provide the app with tech support and cloud services, analysts say. Nonetheless, Walmart's involvement in any way in the deal would be a huge asset for its e-commerce business, especially as the retail giant competes with Amazon.

Like Microsoft, Walmart could be trying to rebuild its image with younger consumers who love TikTok — and potentially expand its influencer marketing aspirations.

What do we know about the deal: Walmart's involvement in TikTok negotiations only came to light on Thursday, but it appears the retailer has long looked for a way to get involved in the acquisition. CNBC reports that although Walmart originally proposed a joint bid with Alphabet and SoftBank that had the retailer as the majority stakeholder, the US government shut down the idea in favor of a tech-company-led deal.

Walmart then partnered with Microsoft in its bid for TikTok's US operations, and is looking to take on a minority stake. Walmart confirmed its involvement with Microsoft to Business Insider. 

How serious are they: Walmart's interest appears serious, given the information that's come out about its various attempts to get involved in the TikTok acquisition. Walmart is only the second company (after Microsoft) to publicly confirm its involvement in discussions.



Twitter

Who are they: A social network founded in 2006 whose daily userbase in the US — estimated around 36 million—  is less than that of TikTok (which says it has 50 million active users daily in the US).

What could they get out of buying TikTok: Twitter is smaller than the other companies that are reportedly interested in buying TikTok, meaning that an acquisition could immediately boost its profile and value. Even though the network is popular, it's struggled internally amid an attempted coup to remove Jack Dorsey as CEO.

Twitter has invested before in short-form video, which could pair well with the network's text-heavy platform. However, Twitter's foray into that space ultimately failed: After acquiring Vine for $30 million in 2012, Twitter shut down the beloved app at the beginning of 2017.

What do we know about the deal: The Wall Street Journal first reported on August 8 that Twitter had entered into "preliminary" talks with ByteDance to acquire TikTok's US business. Twitter's small stature means the company would likely not face the same level of antitrust scrutiny that massive entities like Microsoft or Oracle could potentially face.

With a market capitalization of just over $30 billion, Twitter would need to raise money from investors quickly or find another way to finance a deal for TikTok's business, which is likely worth tens of billions of dollars.

How serious are they: Twitter's involvement in a TikTok deal was immediately viewed as a longshot. Although it was more recently reported Twitter is still interested in TikTok, its talks with ByteDance haven't seemed to progress much further than before.



Netflix

Who are they: A streaming behemoth with a market cap of $231 billion. Unlike TikTok's free platform, it runs on a subscription-based model.  

What could they get out of buying TikTok: CNBC's Alex Sherman argues TikTok would bring an advertising-revenue-based platform into Netflix's folds, allowing the streaming service to continue offering ad-free entertainment. 

What do we know about the deal: ByteDance approached Netflix at some point to "gauge its interest in a deal" to acquire its US operations, the Wall Street Journal reported. However, the streaming giant reportedly passed on the invitation to get involved.

How serious are they: Although Netflix CEO Reed Hastings famously said the company's biggest competition in 2017 was sleep, he called out TikTok this year as a competitor in "internet entertainment." But reports indicate Netflix showed no interest in getting involved with TikTok, making this collaboration extremely unlikely.



Alphabet

Who are they: A massive tech conglomerate involved in a wide range of businesses, including internet search, ad sales, video-streaming, mobile software, and cloud-based services.

What could they get out of buying TikTok: Alphabet has shown significant interest in investing in the short-form video space to complement its dominant YouTube service. The company was rumored last year to be interested in a TikTok-rival called Firework, and is reportedly working on an in-app, video-sharing feature for YouTube called Shorts to be released later this year.

Additionally, TikTok already runs on Google's cloud-computing software, making TikTok's transition away from ByteDance easier.

What do we know about the deal: It appears that Alphabet had once expressed interest in buying part of TikTok's US business. Bloomberg reported last week Alphabet was weighing a minority stake, purchased through one if its investment firms (GV or CapitalG), but that talks had "fizzled out" since then.

More recently, it was reported Walmart had tried to organize a deal in which the retail giant would have a majority stake in the TikTok business, with Alphabet and investment firm SoftBank buying minority stakes. That partnership, which later fell apart, was reportedly organized by SoftBank COO Marcelo Claure.

How serious are they: Hopes of the company's involvement were all but completely dashed this week when Sundar Pichai, Google and Alphabet CEO, confirmed with tech reporter Kara Swisher that the company was not in the running to acquire TikTok.



Apple

Who are they: A gargantuan consumer tech company, and the world's most valuable public company, whose tight hold over the operations of its iPhone and other service has led to harsh criticism and antitrust concerns.

What could they get out of buying TikTok: Apple's motivation for acquiring TikTok's US business is unclear. Considering Apple's supply chain for consumer products relies on companies in China, it's unlikely the iPhone make would want to do anything — like entering a deal being forced by national security concerns pertaining to China — to put its operations there in jeopardy.

What do we know about the deal: Axios reported in early August that Apple "has expressed interest" in the TikTok deal.

How serious are they: Apple quickly denied the report, saying there were "no discussions" and no interest regarding TikTok.



Facebook

Who are they: A colossal group of social networks that includes Instagram and WhatsApp, in addition to the flagship Facebook app. CEO Mark Zuckerberg recently labeled TikTok a threat to democracy.

What could they get out of buying TikTok: Facebook's desire to be king of the social networking space is well-known. An acquisition of TikTok would bring another powerful social app into Facebook's folds, extending the company's conquest into video.

Facebook did just release Instagram Reels, its feature intended to rival TikTok in the short-form video arena. But TikTok has a head start of more than 100 million users each month.

What do we know about the deal: Before TikTok came to the US in 2018, in its place was a watered-down video-sharing platform called Musical.ly (which ByteDance later acquired and merged into TikTok in the US). Multiple outlets have reported that Facebook tried to buy Musical.ly in late 2016 in an attempt to break into the Chinese market, where Facebook is banned.

Those talks never amounted to anything, but it wouldn't be surprising to hear that the failed acquisitions contributed to Zuckerberg's anti-TikTok rhetoric. The Wall Street Journal reported that Zuckerberg stoked fears about TikTok's ties to China to US lawmakers shortly before they mounted an offensive against the app. 

How serious are they: There's been no indication of Facebook's interest in the app now named TikTok.



SoftBank

Who are they: A massive investment firm and technology conglomerate based in Japan that ia currently a small investor in ByteDance.

What could they get out of buying TikTok: SoftBank has been behind some of the biggest investments in global startups in recent years, so it doesn't come as a surprise that the firm wants a piece of the TikTok acquisition. Considering TikTok's growing popularity, a stake in its US business could prove lucrative for SoftBank.

What do we know about the deal: SoftBank's interest in TikTok's US operations has been reported by the Information and CNBC. According to CNBC, SoftBank COO Marcelo Claure tried to form a partnership for a TikTok acquisition involving SoftBank and Alphabet, with Walmart as the majority shareholder. Those discussions don't appear to still be active.

It's highly unlikely SoftBank would be a majority stakeholder in a deal, given the Trump administration's insistence TikTok's US business is sold to a US company. 

How serious are they: SoftBank hasn't confirmed its interest, but there's a good chance SoftBank could be one of several ByteDance investors trying to grab a minority stake in the multi-billion-dollar TikTok acquisition.

 



ByteDance US investors, including Sequoia Capital and General Atlantic.

Who are they: There are a number of US-based investors who poured money into ByteDance when it was founded in 2012. ByteDance was recently given a private valuation of over $100 billion.

What could they get out of buying TikTok: ByteDance's US investors have likely seen their investments in the Chinese parent company pay off, and wouldn't hesitate at a chance to get an even bigger share in TikTok's successful US business.

What do we know about the deal: The investors — namely Sequoia Capital's Doug Leone and General Atlantic CEO Bill Ford — have reportedly been key advisers to ByteDance CEO Zhang Yiming in orchestrating the TikTok acquisition.

In the apparent bidding war between Microsoft and Oracle, reports indicate that this group of US investors has been pushing ByteDance to choose Oracle. The investors see Oracle's bid as their bet to get "a piece of the action" in the acquisition of TikTok's US operations, according to the Wall Street Journal.

However, these investors are also reportedly pushing for a deal most likely to garner full support from the Trump administration. The New York Times reports these investors have acted as intermediaries between the White House and ByteDance (as well as interested buyers). With Oracle executives' ties to Donald Trump and the president's vocal support for Oracle's bid, it seems the investors see this choice as the one most likely to succeed. It doesn't hurt that the leading partners at Sequoia and General Atlantic have ties to Trump as well.

How serious are they: The Information reported in late July that Sequoia Capital and General Atlantic investors were interested in buying TikTok's US operations in a takeover, and it's doubtful they would give up a successful app like TikTok without a fight. Considering they may also have a chance as minority stakeholders in the Microsoft deal, it seems ByteDance investors may benefit no matter who eventually wins the bidding war.



Centricus Asset Management and Triller

Who are they: Triller is a US-based, less-successful competitor to TikTok. Centricus is an investment firm based out of London.

What could they get out of buying TikTok: Both Triller and TikTok exist in the same space of music-based, video-sharing platforms. It's likely the deal would see the two platforms merged together, combining Triller's US-based operations and TikTok's massive userbase.

Centricus has not been linked to ByteDance nor Triller in the past, so it's unclear what their interest is. It is worth nothing that Centricus is credited with helping SoftBank raise its $100 billion Vision Fund.

What do we know about the deal: Bloomberg reported Friday that Centricus and Triller submitted a joint bid to ByteDance, in which Centricus would be majority shareholder and Triller would get a minority stake. The proposed deal — to acquire TikTok's assets in the US, Australia, New Zealand, and India (where TikTok is currently banned) — offers $20 billion.

How serious are they: This last-minute deal seems unrealistic, but it's the only offer to come with existing infrastructure for a short-form video platform like TikTok. Additionally, Triller was last valued at $130 million and Centricus reportedly has just $25 billion in assets— raising the question of where the two entities would get the capital to afford TikTok.

A TikTok spokesperson told Bloomberg that Triller or Centricus buying TikTok was "preposterous." Another spokesperson said, "What's Triller?"when asked by Bloomberg to comment on the deal.



The Blackstone Group

Who are they: One of the world's largest investment firms, with nearly $600 billion in assets.

What could they get out of buying TikTok: As an investment firm, Blackstone could bet on TikTok's success thus far as a sign grabbing a stake in the platform would be lucrative. But it's unclear whether Blackstone wants to insert itself in negotiations for an app drawing ire from the Trump administration.

What do we know about the deal: Although details of Blackstone's interest have not been widely reported, sources told Fox Business that the investment firm had shown "significant interest" in joining onto Microsoft's bid. Microsoft has previously said it might allow investors to buy minority stakes in the company if the acquisition were to go through.

How serious are they: It's unclear, given Blackstone had not shown interest before in TikTok or ByteDance.



Dating app Bumble is preparing for an IPO worth between $6 billion and $8 billion

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  • The dating and networking app Bumble is readying to go public as soon as early 2021, according to Bloomberg.
  • Bumble could seek an initial-public-offering valuation between $6 billion and $8 billion, the news agency reported.
  • Launched by Whitney Wolfe Herd in 2014, Bumble has grown to about 100 million users.
  • Data shows it is the second-most-popular dating app after Tinder.
  • Visit Business Insider's homepage for more stories.

Location-based dating app Bumble is prepared to go public as soon as early 2021, according to a Bloomberg report.

Bumble's initial public offering could be valued between $6 billion and $8 billion, Bloomberg said, citing its sources. The company is in discussions with underwriters.

Final underwriters have not been settled, as the intended float has not yet been fully worked out and the timing could change.

Texas-based Bumble would join other tech companies entering the IPO market that could see listings this year, including the vacation-rental app Airbnb and the food-delivery service DoorDash.

Last year, the private-equity firm Blackstone took a majority stake in Bumble's parent firm, MagicLab, valuing the online dating platform at about $3 billion.

MagicLab's founder, Andrey Andreev, sold his entire stake to Blackstone and stepped away from the business. Whitney Wolfe Herd, the Bumble founder who previously cofounded its rival app Tinder, took over the reins as Bumble's present CEO, while retaining a 19% stake.

Read more: A scrappy VC reveals the 3 big advantages to finding startups in small towns across America instead of major tech hubs like Silicon Valley

The venture-capital firms Accel, Bessemer Venture Partners, and Greycroft are said to be Bumble's other investors, Bloomberg said.

Launched in 2014 by Wolfe Herd, Bumble has grown to about 100 million users. It is the second-most-popular dating app after Tinder, according to data from Statista

Dating platforms such as Tinder, Bumble, and Hinge reported increased traffic during the coronavirus pandemic as millions remained confined to their homes, leading to a dramatic rise in desire for human contact and connection. 

Read more: GOLDMAN SACHS: Female portfolio managers are outperforming their male counterparts so far in 2020. These are the 25 stocks they own the most compared to men.

SEE ALSO: Investors should avoid 'dangerous strategy' of positioning for US election outcome, top strategist says

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Oatly vegan milk faces activist anger after Trump-supporting billionaire Schwarzman's Blackstone acquired a stake

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  • Oatly is facing outrage from activists after signing a deal with Trump-linked private equity firm Blackstone.
  • Climate and political activists have called out Oatly's decision to partner with Blackstone because of its part-ownership of two Brazilian firms associated with contributions to deforestation in the Amazon, a link the group denies.
  • Activists also object to Blackstone chairman Stephen Schwarzman being a prominent supporter of President Donald Trump.
  • Schwarzman recently donated $3 million to the pro-Trump super PAC America First Action, which supports Trump's reelection.
  • Visit Business Insider's homepage for more stories.

Vegan milk brand Oatly is facing activist pressure after private equity firm Blackstone, headed by Trump-supporting billionaire Stephen Schwarzman, acquired a stake in the company.

The Swedish oat-milk maker sold a $200 million stake in July to a consortium including Blackstone, Oprah Winfrey, Natalie Portman, former Starbucks CEO Howard Schultz, and Jay-Z's entertainment company Roc Nation. 

The deal, in which Oatly was valued at nearly $2 billion, has come under the scanner by climate and political activists who say companies linked to Blackstone are contributing to deforestation in the Amazon rainforest.

Blackstone denies this. The private equity group said in a statement: "The erroneous claims and mischaracterizations were blatantly wrong and irresponsible."

A Twitter thread over the weekend drew attention to Blackstone's part-ownership of two Brazilian infrastructure firms that have previously been blamed for contributions to deforestation: Hidrovias do Brazil and Pátria Investimento. 

Hidrovias has been accused of having a marked effect on deforestation by building hundreds of miles of an industrial roadway in the Amazon called the BR-163. 

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"Hidrovias does not own, control or have any interest — direct or indirect — in the road in question (BR-163). This road has been operated by the Brazilian government since 1976. The company did not build this highway, nor are they paving it," Blackstone said.

Aside from the Brazil connection, protesters have noted Blackstone billionaire chairman Stephen Schwarzman is a prominent supporter of President Donald Trump.

According to CNBC, Schwarzman recently donated $3 million to the pro-Trump super PAC America First Action, which supports Trump's reelection.

Oatly said on Twitter that partnering with Blackstone may be an "unexpected choice," but would help "expand our sustainable mission and create more plant-based products."

"We believe that to see real change everyone needs to be involved - including private equity. This investment will help us push the plant-based movement even further, while also steering global capital into sustainability instead of something else."

When the $200 million deal was signed, the agreement highlighted the growing popularity of oat-milk consumption. Oat-milk sales in the US grew over 470% year on year to mid-March, making it the fastest-growing drink sector in that time, according to data analytics firm Nielsen

Read More: A top strategist explains why Warren Buffett's latest bets could be a 'true turning point' for Japanese stocks 

SEE ALSO: France reveals fresh stimulus worth 100 billion euros — almost 4% of its GDP and bigger than any other European economy

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Legendary investor Byron Wien says next 'real opportunities' in market are transportation and energy as tech falters

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  • Legendary investor Byron Wien told CNBC on Tuesday the next "real opportunities" in the market are in distressed areas like energy and transportation. 
  • He added that stocks in the manufacturing and materials sectors are reasonably priced if one assumes that "we get back to normal" within the next year or two. 
  • The recent market sell-off was not unexpected and was just a pullback from what is a "strong recovery market," according to Wien.

As the Nasdaq faces its third straight day of losses, investing legend Byron Wien sees the next "real opportunities" for stocks in more distressed areas like energy and transportation.

Wien told CNBC on Tuesday: "I think energy is probably attractive, and if you can believe that transportation will ultimately recover, you can take the risk there."

The Energy Select Sector SPDR Fund (XLE) is up more than 28% since its March lows, while the SPDR S&P Transportation ETF (XTN) is up roughly 57% since the same date. By comparison, the broader S&P 500 is up 44% since depths of the coronavirus crash.

The Blackstone Advisory Partners vice chairman also said that stocks in the manufacturing and materials sectors are reasonably priced, "assuming that we get back to normal sometime within the next year or two."

Read more:'Never been so extreme': A renowned stock bear says today's 'hypervalued' market implies the worst returns in history — and expects a 66% crash from today's levels

He added that he wasn't surprised at the recent tech stock sell-off. Based off of his projections for earnings into 2021 and 2022, FAANG stocks were "very fully valued," said Wien.

"This correction is not really unexpected. The market had been up nine out of 10 days, it was very overbought. And so this is just a pullback from what is basically a strong recovery market," the investor said. 

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Blackstone says stock investors may face a 'lost decade' in equity appreciation

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Investors may not see the kind of returns the stock market has yielded this year for another decade, as companies struggle to grow their earnings in an economy that is in recovery after the coronavirus pandemic, private-equity firm Blackstone's executive vice chairman, Tony James, told CNBC's Squawk Box Asia on Wednesday.

James said that the healthy level of existing capital returns, plus the "fear-of-missing-out" buying frenzy that has driven US indices to record highs this year, has also created a stock market that "feels very fully valued."

As interest rates eventually rise, in line with an improving economic backdrop, companies may face other headwinds in the long-term, and this could lead to disappointing stock returns for investors.

"I think this could be a lost decade in terms of equity appreciation," James said.

Despite the S&P 500 experiencing its largest weekly decline since June last week, investors have once again returned to the stock market. The index is still up by more than 50% since hitting multi-year lows in March.

Read more: Morgan Stanley pinpoints the most attractive opportunity it sees for investors as a new bull run takes shape — and shares 3 strategies for generating market-beating returns 

At the same time, US interest rates remain near zero, as the Federal Reserve leverages monetary policy to help manage the fallout of the pandemic that stripped over 30% off total economic output in the second quarter of this year and has rendered millions jobless.

Low interest rates and cheap credit have meant investors are hungry for yield and are still piling into equities and riskier bonds, James said.

"There's a hunger for yield, so investors are coming off the sidelines — there's still a lot of money on the sidelines, actually — and looking for investments that they can get some kind of returns," James said.

Read more: MORGAN STANLEY: Buy these 6 stocks poised for gains as the economic recovery continues and Congress mulls more coronavirus stimulus

Interest rates won't remain low forever

Interest rates will likely eventually rise within the next five to 10 years, James said. The Fed has said rates will stay low for the time being. It has also said it does not intend to use negative rates as a means of fostering economic activity, unlike other major central banks. 

Higher rates make it more expensive for a company to borrow, which will also affect its profits. James said a combination of rising interest rates and other headwinds, such as potentially higher taxes and operating costs, could impact earnings and result in disappointing equity returns in the long-term.

"All of that will be economic headwinds for companies. So I think you can have disappointing long term earnings growth with multiples coming in a little bit, and I can see anemic equity returns over the next five to 10 years," said James on CNBC.

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Blackstone CEO Schwarzman says investors can buy both pricey tech and cheap stocks that haven't yet rebounded

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FILE PHOTO: Stephen A. Schwarzman, chairman and CEO of Blackstone, attends the World Economic Forum (WEF) annual meeting in Davos, Switzerland, January 22, 2019. REUTERS/Arnd Wiegmann

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  • Blackstone CEO Stephen Schwarzman said investors can buy both expensive technology companies right now and companies that have not yet rebounded. 
  • "Not all companies have recovered their valuations," the billionaire co-founder said. "So it gives you a chance to play some technology things ... and it also is possible to buy some other companies that haven't yet rebounded to the same degree." 
  • Schwarzman said that the rapidly growing "digital revolution" will continue to support technology companies.

Blackstone CEO Stephen Schwarzman said both expensive technology companies and companies that have not yet rebounded are attractive investments in a panel at the CNBC Institutional Investor Delivering Alpha Conference on Wednesday.

The billionaire co-founder said that while a lot of technology stocks are trading at "very high valuations," they can still be good investments because the world is rapidly becoming more digital. But the CEO who forecasted a V-shaped recovery back in June also said that some companies in other sectors have not rebounded yet and have more room to grow.

"Not all companies have recovered their valuations," Schwarzman said. "So it gives you a chance to play some technology things because of the power of what's going on in that area as the world's going digital at a much faster rate exists, and it also is possible to buy some other companies that haven't rebounded to the same degree."

Read more:A fund manager who's beaten 99% of her peers over the past 5 years told us why she remains bullish on growth stocks despite the recent sell-off — and listed her 3 favorite stocks for continued gains in the decade to come

The private equity titan also said that this "digital revolution" was behind Blackstone's decision to invest heavily in warehouse real estate.

"In our real estate business we are theme investors, and that means that we look at the world and try and figure out where it's going," he said. "So we made an observation and decision years ago that the digital revolution was going to really affect real estate, and as a result of that we sold almost all of retail and we started concentrating in warehouses."

Warehouses will benefit from the "exploding" e-commerce businesses, Schwarzman said. 

He added: "What we found is where there's some softness, for example in malls, there's nothing but increases in warehouses. We put a third of all of our money there. We sold all of our hotels, and now that turns out to be a great thing."

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Blackstone president Jon Gray reveals how to stand out to land a job at the ultra-competitive firm, which hired just 0.5% of applicants for 2020 analyst jobs

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Jon Gray still remembers what it was like when he was hired as an entry-level analyst at a seven-year-old private-equity shop in New York City in 1992.

"It was a tiny place ... I think there were 80 or 90 people," Gray said of Blackstone, a firm that would go on to become the world's largest alternative investment manager and, during Gray's time as head of global real estate, its largest property owner.

Fresh out of the University of Pennsylvania, Gray was interviewed by the Blackstone cofounders Stephen Schwarzman and Pete Peterson themselves. He couldn't have predicted that he would eventually be named Blackstone's president and chief operating officer in 2018, becoming one of the most powerful executives on Wall Street.

"For me, a kid from suburban Chicago, I was like, 'Oh my gosh, this seems really exciting.' And it was obviously terrifying being interviewed," he recalled. "And by the way, starting was terrifying. I remember being so nervous having my first job here."

Gray's first-job jitters likely match how many analysts feel when they start at Blackstone, or when prospective employees get summoned for their first interview with the company. After all, Blackstone, which has more than $560 billion in assets under management, is among the most ironclad fortresses on Wall Street for job seekers.

Blackstone was ranked as the hardest interview among private-equity firms on Wall Street Oasis, a website that aggregates data submitted by users into reports about financial firms. The company ranked in the 99th percentile, beating out more than 100 other PE shops including Bain Capital, KKR, and the Carlyle Group.

Schwarzman, Blackstone's CEO and chairman, told Business Insider in 2019 that when looking to hire, the firm is after a "perfect 10" candidate. He's searching for "synchronicity" in a candidate's ability to frame an argument, he said.

Read more:Meet the 4 dealmakers driving Blackstone's $325 billion commercial real estate portfolio

And while the bar has been set high for Blackstone candidates, those who clear it are rewarded generously — particularly those who land in front-office, PE-focused positions.

Should you make it over the finish line and get offered a job at Blackstone, your first-year analyst compensation package would be in line with an average $96,100 base salary and a $40,400 bonus, for total compensation of $136,500, according to user-submitted data on Wall Street Oasis.

For first-year associates, those numbers go up to an average base salary of $152,800 and an $85,000 bonus, for total average comp of $237,800.

Blackstone declined to comment to Business Insider on compensation matters.

When assessing new recruits, Gray said, "the most important thing is to find people who really care a lot."

"At a place like this, we have relatively few people," he said, "and we really need people who care. And that to me doesn't matter if you're hiring a CEO of a portfolio company, or a Blackstone partner, or an analyst, or an assistant, or somebody in finance or technology."

Out of some 19,000 applicants for the company's 2020 first-year analyst class, just 94 people were hired — an acceptance rate of 0.5% — according to data that Blackstone shared with Business Insider. Successful recruits came from more than 50 undergraduate programs worldwide.

Blackstone said that it employed just over 3,000 people and that it had hired more than 400 people in 2020.

And while large among PE shops, Blackstone's headcount is still smaller than that of other Wall Street titans such as BlackRock (more than 16,000) or Goldman Sachs (roughly 39,000).

Want to be one of the lucky few who get hired at Blackstone? This guide is for you.

We spoke with Gray, headhunters who recruit for the firm, and Blackstone's global head of human resources to learn what it takes to stand out. From how to ace interviews to deals you need to be familiar with, here's what they told us.

In a Blackstone job interview, be ready for tough questions

When interviewing candidates for junior positions like analysts or associates, Blackstone asks questions that probe candidates' analytical and critical-thinking skills.

Charlie Kershaw, a partner who runs the private-equity recruiting practice at Dore Partnership, a New York-based firm that does hiring work for Blackstone every year, identified three variants of questions that might come up:

  • "Describe ways in which you've demonstrated entrepreneurial acumen."
  • "Describe times in your life where you've faced major challenges and overcome them."
  • "Describe times where you've challenged the status quo or challenged opinions."

Tom Daniels, a recruiter at the search firm Spencer Stuart who also regularly works with Blackstone, said that in the interview, Blackstone candidates should be transparent about their track record and motivations.

Interviewers "always want to know: Why do they want to do this? Is it logical?" Daniels said.

"They also want to understand the decisions people have made in their careers and why," he added. "And it's not like it's bad if someone made an unwise career move. They want to know why they made that decision and what they learned from that, and what did you do with that information once you learned it?"

Interviews at most Wall Street firms also typically include more technical questions, such as testing candidates financial-modeling skills.

Schwarzman previously told Business Insider that he asked candidates for more senior roles to analyze the firm's past deals. "Do you think that was a smart thing? A good deal or a bad deal?" he might ask. "Do you think they should have increased the price? Should they have increased more? Should they have waited longer?"

Paige Ross, Blackstone's global head of HR, said she kept an eye out for a warning sign in candidates' answers.

"I look for too many references to 'I' versus 'we,'" she told Business Insider. "Most people do things as part of a team, and I want to see candidates accurately reflect that."

The application and interview process for junior-level positions is not that much different from the process for senior hires at Blackstone. But there are more résumés at the junior level.

Typically, if Blackstone vets a résumé and likes what it sees, it'll schedule an interview with the candidate, who meets with a member of Ross' HR department. If all goes well, the candidate will then meet with various members of Blackstone's business, depending on where it may be hiring.

Of course, this year it has shifted to virtual meetings, but it has still onboarded more than 400 people, from lower-level analysts to senior executives.

Blackstone looks for certain character traits in candidates

Gray likened Blackstone's corporate culture to a team sport.

"You want to get people who treat other people nicely, because the culture here is the essence of the place. Lots of investment firms haven't lasted the test of time, and we're really trying to build an enduring institution," he said.

"And to do that, you need a very positive culture — so having people who treat others nicely, and then you really want people who have a sense of team play."

Gray said he liked athletes because they know how to work with other people to win.

"To be a winning varsity lacrosse player, or whatever that sport is, there's often an element of perseverance, but there is this sense of team play. And I think about the investment process and everything we do as team play," he said.

"We raise capital from our investors, which requires the capital-raising folks as well as the investment people. We make investments, which requires the deal people, finance people, technology people, data science — everyone is working. So you can't have a lot of solo artists."

Daniels said that Blackstone isn't afraid to think outside the box when filling a position, either internally or at one of its portfolio companies, and that the firm applies that to its hiring at all levels. For instance, if Blackstone were running a search for a C-suite executive at a portfolio company, it would be willing to consider candidates who haven't yet held that type of position.

"Sometimes you can get someone who is a little hungrier, who has learned the lessons well and may have more runway and are less stuck in their own world and stuck in the past," Daniels said. "I think we have solved projects with them by having that openness."

To put yourself in the best position to be considered, though, you should demonstrate strong research skills, Kershaw said.

That means coming prepared with a clear understanding of Blackstone's history and some of its top investments. "They welcome people who can challenge assumptions and the way things are done currently," he said.

The ability to back up an argument is just as important as making one, so strong quantitative skills are a must.

"They look for people who are more entrepreneurial, are generally more read and have more of a breadth of opinions," Kershaw said, "and even at an earlier stage demonstrate that they have some leadership capacity."

Come equipped with knowledge about Blackstone's recent deals

As much research as Blackstone does on its candidates, its executives also appreciate when their candidates research them.

Come to the interview with a working knowledge of some of the firm's latest deals — and if you want brownie points, read up on its history, whether it's Schwarzman's autobiography, "What it Takes: Lessons in the Pursuit of Excellence," or "King of Capital: The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone" by David Carey and John E. Morris.

Here are some recent deals and developments at Blackstone you should be aware of if you're applying for a position in 2020 or 2021:

Some of Blackstone's top brass started as analysts or associates

They started from the bottom, now they're here.

Some of Blackstone's most senior personnel joined the firm early in their careers and at relatively junior levels.

Gray started as an analyst in 1992. Joseph Baratta, the firm's global head of private equity and senior managing director, joined in 1998 as an associate. And Kenneth Caplan, a global cohead of real estate, crossed over from real-estate investment banking into private equity in 1997.

That's one message Blackstone emphasizes in its sales pitch to new talent: It's a place where people can forge their careers, not just pass through on their way to greener pastures.

"Every day I feel like it's a new challenge and I learn something new," Gray said, adding that he wants young recruits "to have that same sense that there's unbounded opportunity, that if they're great at what they do there can be a very steep upward curve."

He also reflected on spending his entire professional career at Blackstone, working mainly in one skyscraper: the firm's headquarters at 345 Park Ave. in New York City.

"What's amazing is same office, different floor," Gray said. "I've been coming back to the same place over and over again."

SEE ALSO: THE GATEKEEPERS: 12 headhunting firms to know if you want to land a hedge-fund or private-equity job

DON'T MISS: Meet the 4 dealmakers driving Blackstone's $325 billion commercial-real-estate portfolio

READ MORE: Private equity is backing off from recruiting young investment bankers in their first few weeks on the job. Here's what triggered the reversal.

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Investing legend Byron Wien says the stock market will respond favorably to Joe Biden's climate and foreign relations policies

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  • Investing legend Byron Wien told CNBC on Friday that the stock market will respond positively to Joe Biden's policies on climate change and inequality. 
  • Wien also said Biden's top priorities — getting COVID-19 under control and creating jobs — will be good for stocks. Biden's tax policy that may harm stocks will be secondary to these two priorities, he said. 
  • "We're not going back into a bear market. We're not going back into a recession. I think growth is going to be gradual and I think equity returns are going to be modest, and I don't think inflation and interest rates are going to rise much," Wien added.

Wall Street veteran Byron Wien told CNBC on Friday that the stock market could react positively to a Joe Biden victory. 

"I think Biden will deal more effectively with inequality, with climate change, and I think those are positives for the market," said the vice chairman of Blackstone's Private Wealth Solutions group.

"I think that Biden has a better chance of bringing the country together. I think Biden will reestablish more constructive relationships with our foreign allies," he added. 

While some investors are concerned that Biden's tax policies may hurt stocks in the long term, Wien said the Democratic presidential nominee's initial priorities to create jobs and control the virus will boost the market. 

"I think the top two priorities for Biden are going to be getting the virus under control and creating jobs," said the investor. "I think raising taxes and other things that might be less favorable for the market are probably going to be secondary to those two objectives. So if we get those two objectives first, that could be good for the market."

Read more:Strategists at JPMorgan's $1.9 trillion asset management arm share 5 investing tips for navigating the fast-approaching election — including the sectors poised to profit from every possible outcome

Wien added that he is impressed with how quickly the economy is recovering. However, he said the US will face a period of higher unemployment, and certain businesses that were crushed by the coronavirus may never reopen. Growth will be "gradual," and investors should brace for more modest stock gains in the future, said Wien. 

"We're not going back into a bear market. We're not going back into a recession. I think growth is going to be gradual and I think equity returns are going to be modest, and I don't think inflation and interest rates are going to rise much," he said. "And at these interest rates, the market can withstand a pretty high multiple, and so I think the outlook is favorable but expectations should be modest."

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End of an era: Blackstone just rebranded its $135 billion credit arm to erase the initials of the unit's founders

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The Blackstone Group is erasing the G, S and O that once stood for the names of the founders of the firm's sprawling credit division, renaming the unit Blackstone Credit.

The firm announced the change on Monday morning and is sharing the news in meetings with investors, Business Insider has learned. 

"There's a lot more business we can do as the firm itself evolves into something that's more of a one-stop shop," said Blackstone CEO Stephen Schwarzman in a video announcement. 

Normally a name change in Corporate America represents little more than a marketing push, but in this case the development speaks to Blackstone's gradual takeover of GSO over the past 12 years, a process that at times was marked by internal divisions

The G, S and O of GSO Capital Group stood for Bennett Goodman, Tripp Smith and Doug Ostrover. Smith and Ostrover have departed the firm and are working on other credit ventures, while Goodman announced his retirement last year, though he remains listed in a reduced role, as a senior advisor. 

Other credit executives have left the firm in recent years as well after Blackstone shuttered its distressed debt hedge fund in 2017. 

Sources close to GSO were expecting the name change to happen sooner or later, as they understood it to be part of Blackstone president Jon Gray's vision to bring GSO completely into the Blackstone fold. 

One source said that GSO executives liked to distance themselves from the Blackstone name, because it helped them offer loans to other PE-backed companies without being perceived as the competition. Another source said that the name change, even though it was no surprise, could be seen as something of an insult to GSO founders.

"I would imagine it is not super welcome," a third source said. 

Blackstone bought GSO in 2008, when the unit had $9.6 billion in assets under management and fewer than 150 employees. Now it has $135 billion in AUM and more than 350 members. 

The video announcement Blackstone unveiled on Monday came with statements of support for the rebrand. 

"Linking the Blackstone brand to our business really meant instant credibility with LPs we had never met, but they know Blackstone and the reputation they've built over 30 years," said Verdun Perry, a senior managing director and global head of strategic partners.

Said Beth Chartoff Spector, head of institutional client solutions at Blackstone Credit: "Taking the Blackstone name is a celebration of the vital link to Blackstone that has propelled our business to become a leading credit investor."

Throughout the two-minute video, there was no mention of the firm's founders. 

Read more:Good deals in pandemic-hit companies are proving hard to find. Here's how big investors that raised billions to pounce on corporate distress are changing up their playbooks.

SEE ALSO: Inside the drama at Blackstone's $129 billion credit division, where pay changes, PR black eyes, and disapproval of its internal hedge fund preceded an exodus in distressed trading

SEE ALSO: 11 ex-Blackstone credit pros who joined shops like Ares and Angelo Gordon and are now helping them go bargain hunting during the downturn

SEE ALSO: Blackstone president Jon Gray reveals how to stand out to land a job at the ultra-competitive firm, which hired just 0.5% of applicants for 2020 analyst jobs

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Major business leaders signed a letter urging Trump to concede, and warn that 'our democracy grows weaker' the longer the presidential transition is delayed

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Over 100 business leaders have co-signed a letter urging President Trump to concede the election to President-elect Joe Biden, the New York Times first reported on Monday morning.

"Every day that an orderly presidential transition process is delayed, our democracy grows weaker in the eyes of our own citizens and the nation's stature on the global stage is diminished," the letter says. "Withholding resources and vital information from an incoming administration puts the public and economic health and security of America at risk."

The letter demands that the head of the General Services Administration, Emily W. Murphy, affirm President-elect Joe Biden and Vice President-elect Kamala Harris and release funds to begin the transition. The group of executives who signed the letter includes the leaders of real estate firm Tishman Steyer, and the president of private equity firm the Blackstone Group, according to the Times. 

Among the executives who signed the letter are major Republican donors, the Times notes, some of whom have discussed withholding funds for Republican candidates for US Senate in the Georgia runoffs this coming January until Trump concedes.

According to the report, the group was organized by New York State Attorney General Letitia James following an initial call organized by business leaders. 

Read more:Trump's embarrassing, incompetent, humiliating, very sad coup

Some business leaders, including prominent Trump supporter and Blackstone CEO Stephen Schwarzman, have thus far defended the sitting president. Schwarzman's position, however, has changed: "The outcome is very certain today and the country should move on," he told the Times in a statement. "I supported President Trump and the strong economic path he built. Like many in the business community, I am now ready to help President-elect Biden and his team as they confront the significant challenges of rebuilding our post-COVID economy."

President Trump has refused to concede the election, and his legal team continues to pursue cases in several states. Trump and his lawyers have repeatedly claimed widespread voter fraud, but have yet to provide any evidence of such claims.

Read the full letter, titled "Open Letter on Presidential Transition":

"America is being ravaged by a deadly pandemic with enormous social and economic consequences. The attention and energy of public and private sector leaders should be entirely focused on uniting our country to fight the coronavirus, provide aid to those in need, prevent further business disruption and loss of jobs, and invest in our economic recovery and revitalization.

Every day that an orderly presidential transition process is delayed, our democracy grows weaker in the eyes of our own citizens and the nation's stature on the global stage is diminished. Our national interest and respect for the integrity of our democratic process requires that the administrator of the federal General Services Administration immediately ascertain that Joseph R. Biden and Kamala D. Harris are the president-elect and vice president-elect so that a proper transition can begin. Withholding resources and vital information from an incoming administration puts the public and economic health and security of America at risk.

As business and civic leaders who reflect the political diversity of the country, we urge respect for the democratic process and unified support for our duly elected leadership. There is not a moment to waste in the battle against the pandemic and for the recovery and healing of our nation to begin."

Got a tip? Contact Business Insider senior correspondent Ben Gilbert via email (bgilbert@businessinsider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

SEE ALSO: Blackstone's Schwarzman defended Trump during a meeting of top CEOs discussing what to do if the president refuses to concede the election

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Meet 2020's rising stars of real estate, the young visionaries making waves at big-name firms like CBRE and Compass and industry-shaking startups

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The pandemic has upended the real-estate industry, forcing offices and shops to reinvent themselves and causing millions of Americans to relocate or reconsider their home bases for work, financial, or personal reasons.

Against this backdrop, we're spotlighting professionals who are thriving, seizing opportunities despite, or because of, COVID-19's effects on commercial and residential real estate in the US.

These 30 young professionals stood out as the vanguard of the next generation in real estate, from prodigies who've risen through the ranks and innovated at established firms to startup founders looking to disrupt pockets of the sector with deeply traditional roots.

Selecting these finalists was challenging. We received hundreds of nominations for inspiring figures, from bosses, colleagues, clients, recruiters, and others in the industry. We asked that nominees be 35 or under, be based in the US, and stand out from their peers. Our editors made the final decisions.

We've included people with a variety of roles and experiences. Some come from finance behemoths like Blackstone and JPMorgan, others from industry mainstays like CBRE, Colliers, Savills, Cushman & Wakefield, and JLL. Top-selling, trend-setting brokers hail from Compass and Brown Harris Stevens. Then there are the startups, like Mosaic and Doorkee, whose names you might not recognize now but are bound to sooner than later.

Below, meet the rising stars of real estate in 2020, listed in alphabetical order by first name.

Adam Pittenger, 31, Moved

Adam Pittenger moved apartments in New York nine times in eight years.

Before starting Moved, a company that pairs people relocating with moving companies and storage services, the Lehigh graduate worked as a product manager for the dynamic-pricing startup Qbeats and social talent sourcing software firm SelectMinds, which Oracle bought.

"I began my career in the New York startup scene and happened to move around the city a lot, from apartment to apartment," Pittenger said. "The more I moved, the more frustrated I became with the experience and finally set out to fix it."

Moving was a stressful task embedded in an old-school industry primed for disruption and modernization. So in 2016 he founded Moved, touted as a one-stop shop for relocators that gathers multiple price quotes for movers. Customers can get the best deal — as well as related services from packing supplies and updating addresses to coordinating with property managers and finding locations to donate unneeded items.

The millennials who were its primary clientele relocated more than other generations, tending to rent rather than buy. A concierge for the whole process that is, at its heart, a software company, Moved also offers a human assistant to wrangle tasks and scheduling, as well ensure the best and fair prices. The tools are free for users, but many vendors pay Moved a commission. 

In 2018, Moved announced that it had raised $3.2 million in seed funding from Lowe's Ventures, the early-stage investment division of the home-improvement juggernaut, as well as other firms. As of November 2020, Pittenger told Business Insider, the company has raised $7.7 million with Lowe's, RET Ventures, AngelPad, FJ Labs, Company Ventures, and others.

This year, Moved's services became more relevant than ever, Pittenger said in a Medium post in April. Because of the coronavirus, Moved started offering contactless moves. As COVID-19 led students, young professionals, and families to migrate to new locations, demand skyrocketed from people who needed to move out of apartments or empty out office space but who could not be on-site. 

"Our founding was based on a simple concept … moving sucks," Pittenger wrote on Medium. "The global pandemic currently on hand hasn't altered that mission. If anything, it's strengthened it."



Ashley Socarras, 35, Lloyd Jones

Ashley Socarras is the executive vice president of acquisitions at Lloyd Jones, a Miami-based real-estate development, investment, and management firm that operates in Florida, Texas, and other parts of the southeastern US.

Her interest in the industry dates back to college. While studying criminal justice and police science at Florida International University, Socarras found her passion outside the classroom.

"In college I accepted a part-time position in a commercial real-estate office. At the time, I was majoring in another subject, but it wasn't long before I realized that real estate was the industry I wanted to be in," Socarras, who also earned an MBA from FIU, told Business Insider.

Socarras, who is bilingual in English and Spanish, started as an analyst at Lloyd Jones in 2016 and has been promoted four times since.

Socarras has played a critical role in the acquisition or disposition of more than 4,000 multifamily units across the southeast valued at over $750 million. Lloyd Jones itself is an established private-equity firm that acquires, improves, and operates multifamily real estate in growth markets on behalf of its institutional partners, private investors, and their own principals.

She has also played a key role in bettering Lloyd Jones' financial models, which have streamlined the underwriting process for her team of analysts.



Brian K. Hinds Jr, 33, Bridge Investment Group

Brian K. Hinds bought his first multifamily property when he was just a 24 year old working as an investment banker at JPMorgan.

Hinds, who had developed an aversion to renting while earning his bachelor's degree at Rutgers, renovated and lived out of the Newark, New Jersey, property, which had three units and a basement. It was his first introduction to real estate.

Now he's a vice president at Bridge Investment Group, focusing on acquisitions and developments for the firm's opportunity zone strategy, finding, negotiating, and doing due diligence on East Coast targets. Investment into opportunity zones, or low-income areas, have been popular with real-estate investors because of tax-break incentives coupled with pouring money into a community that needs it.

In this role, he's been able to help lead development in neighborhoods like the one he grew up in Brooklyn, New York, working with local politicians to make sure the development will "help the community."

Earlier this year, Hinds brought a deal to his adopted hometown of Newark, a $191 million, 370-unit multifamily building across the street from Newark Penn Station.

"There are not a lot of major institutions jumping at the bit to do a deal in Newark, it's hard to get institutional capital into Newark," Hinds said.

Part of his strategy to close the deal was to show that he invested his own money into the city, with the three-unit home he purchased back in 2012. The deal went through.

"For me, that's my bragging rights," Hinds said. "It's not often that you get to brag about a city you live in and a project you did there."



Derek Wilson, 34, Cortland

As vice president of construction and renovation for Cortland Build, a global company that specializes in new-builds and renovations, Derek Wilson oversees multifamily renovation projects, budgets, reports, and more. 

The 2008 Ohio State graduate joined Cortland six years ago as a manager overseeing the construction cycle of individual job sites from permitting to occupancy, primarily for multifamily apartment buildings or complexes in Kentucky and Tennessee. Under his watch, Cortland's rentals and condos were transformed into "lifestyle communities" with ample, modern amenities for residents like clubhouses, gyms and events. Adding to the challenge is Wilson's charge to overhaul residential complexes while they are already occupied.

Cortland is a multifamily real estate investment, development and management company with more than 180 apartment communities made up of more than 60,000 homes across the US. 

Wilson quickly rose through the ranks to become the company's director of construction in the Midwest, where he oversaw the renovation of over 5,600 apartments. In 2015, he was awarded Cortland's Construction Manager of the Year, and in November 2018 he was promoted to his current role, vice president of construction and renovation. Since then, he's led the completion of more than 8,000 apartment home renovations. Today, based in Columbus, Ohio, Wilson manages active renovation projects in 10 states with a profit & loss statement of about $140 million. He has taken the pandemic in stride, acknowledging and addressing the safety concerns around construction sites calmly and with a steady hand.

As a leader, he has implemented changes to better many sides of the business, including budgeting, reporting, business intelligence, staffing, cost control, and contracting. For example, Wilson has led the charge to improve his firm's approach to renovations, pushing not just his company but the construction industry forward with new efficient initiatives. For one, he was instrumental in Cortland Build's adoption of a cloud-based construction management technology, BuilderEdge, which has played a key role in streamlining his firm's supply chain integration, speeding up projects' turnaround times, increasing volume, and delivering a better resident experience (because more efficient construction means less disruption in their daily lives).

He notched these accomplishments in addition to managing the purchasing of overseas materials and onshore logistics, and creating a "kitting solution" for packaging, delivering, and storing full product renovation sets to renovation sites.



Emily Neff, 32, CBRE

Emily Neff's year changed drastically in March as offices closed across the world. Her clients, who usually would ask her about how much office space they need and how they should use it, were now asking her how they could use the offices at all.

"That's been a curveball that's been thrown at us," Neff said.

Neff stepped up to help CBRE pioneer its Workplace Reset service, which prepares companies to reenter the office during a global pandemic. She's been navigating clients on which safety measures to put in place, which signage should be set up around the office, and overall office design. She's also been advising them on the price of all these changes.

"We help clients understand how much it will cost to make these changes and reopen, and are those costs worth it," Neff said. "We help them understand the road map to reopen."

While she's become a trusted confidante for some of the biggest corporations in unprecedented times, Neff's original plan was to advise families, as a financial planner. She studied it at Ohio State, and spent her first year out of school at the life insurance and retirement provider John Hancock.

When she realized that her career path would require as much sales as consultation, she began to look for a new career. She started at CBRE in 2011.

"Real estate brought what I wanted: engaging with people to help them implement their plans," Neff told Business Insider.

Early on at CBRE, she worked on the internal strategy team, called Workplace 360, eventually managing from 2013 to 2016. Her team helped to pioneer new ways to set up the office, making it more flexible, useful, and higher service for CBRE employees, with the hope of also passing on those learnings to CBRE's clients.

Though she's been focusing on external clients for four years now, she looks back fondly on the influence she had in that time, and the lessons she's brought to her external clients. 

"The 10 CBRE offices that opened within those couple of years are a direct impact I made on the company," Neff said.



Drew Sterrett, 28, Lex Markets

Drew Sterrett had an epiphany while chatting with a colleague as they both worked into the night at his previous job as a private-equity analyst at the investment firm Tungsten Partners.

"We were speaking about alternative investments, and I realized that real estate is one of the oldest and largest wealth creators, yet there is no way to own it directly through public, liquid securities," Sterrett said. "How could that be?"

In 2017, Sterrett, who is 28, cofounded LEX Markets, an exchange that will allow landlords to securitize and sell ownership interests in property. In December, the company will begin securitizing its first deals, he said.

LEX won't market or sell the securities itself; rather, it will handle the technical and logistical aspects of converting real-estate equity into tradable stocks and operate an exchange on which they can be sold. For tax and financing reasons, the firm said owners would be able to use the platform to sell only minority ownership interests in property below 50%.

Until now, the closest thing to buying real-estate securities was to purchase shares in a real-estate investment trust, a type of public company structured to own property assets. Sterrett points out that owning direct securities versus REIT stock will allow investors to enjoy the tax benefits of depreciation from the property.

He also believes the shares will remain better connected to the underlying property's value. REIT prices have fallen in recent years below the net value of their assets because of outside factors, such as interest rates and the trajectory of the stock market.

Sterrett estimates there will be billions of dollars of demand in the real-estate equity securitization market, from which LEX could earn a lucrative stream of fees.

"We have some of the largest asset owners looking to do equity recapitalizations through this kind of securitization," Sterrett said.



Eric Siegel, 33, Basis Investment Group

For Eric Siegel, assistant vice president at Basis Investment Group, real estate wasn't part of his original plan. He started off studying psychology at the University of Rochester, but when he discovered the price of graduate school — and that he was the only one on his dorm floor paying for his own education — his life took a turn.

"I wanted to understand money more, and I needed to think more seriously about how it works," Siegel said.

He transferred to Baruch College to study finance, and after graduation, amid the worst of the 2008 financial crisis, he worked at a small bank writing loans, and then at a small investment bank. He saw firsthand the destruction that the recession caused across the real-estate sector, and his fascination with how the system worked drew him further into real estate.

He now works in the structured-equity group at Basis Investment Group, where he does everything from sourcing to preliminary analyses of deals. The tasks range from ground-up redevelopment to purchases of properties from hotels to self-storage. In June, he worked on the team that invested $22 million in structured equity into a multifamily property in Indianapolis, Basis's first fully sourced and closed transaction since the start of the pandemic.

He told us that he's especially proud to be sourcing opportunities for the firm's $410 million property fund, which is invested across a range of asset classes. According to a retirement-plan presentation for Connecticut state employees, the fund generated returns of 7.68% in the 12 months ending June 30.

Since the pandemic started, Siegel relocated from New York City to Bogota, Colombia, where his family lives. Siegel said that Basis, where he isn't the only professional with immediate family overseas, is an easier place for him to work than other companies where he'd be the odd one out. It's one of the rare real-estate investment funds run by a Black woman, Tammy K. Jones.

"The first thing I do when I get my bonus, I send it overseas," Siegel said.



Erik Conover, 31, Nest Seekers

Erik Conover is the YouTube-famous real-estate agent followed by nearly 1,500,000 people. A graduate from Northeastern University with degrees in public advocacy and rhetoric as well as a minor in business marketing, he's leveraged his marketing knowledge into a YouTube channel, which he started in 2015 and has garnered 111 million views since.

An entrepreneur, host, traveler, fitness enthusiast, and content creator, Conover isn't the typical agent. Growing up in the working-class town of Absecon, New Jersey, Erik was conditioned to work hard, and he brought his ambition to New York City in 2013, where he started his YouTube channel two years later.

Having built his YouTube following over the past three years, Conover uses his platform to showcase property, and since launching with Nest Seekers he's been showing nonstop. On day one, as a licensed agent in New York, October 5, he came out of the gates with over $100 million in listing inventory, and currently holds a number of notable listings worth tens of millions of dollars.

In 2018, he realized real-estate content resonated with his audience, and that there was major interest in the luxury real-estate arena. From there he's collaborated with top agent and Bravo star Ryan Serhant, Kevin O'Leary from ABC's "Shark Tank," and brands like Dyson and American Express to further his industry presence.

Previously named to Business Insider's list of New York's biggest influencers, Conover is always looking forward, and has plans to bring his real-estate content abroad.



Jason Tenenbaum, 31, Prologis

Jason Tenenbaum recently moved to Miami to take up the helm of industrial real-estate giant Prologis' South Florida market.

Tenenbaum, who as market officer oversees leasing and operations for its properties in the area, was promoted in May after four years of rising through the ranks in its New York and New Jersey offices. He used to manage leases and operations at specific buildings, but now he's managing a market with 600 tenants, with somewhere between 150 to 200 transactions a year.

Tenenbaum has always loved buildings, studying architecture at Clemson University, before an opportunity at Cushman & Wakefield as an office leasing broker brought him to his current role.

"I started to develop my brand and to see what I liked of other people's styles in order to see the type of professional I'd like to become," Tenenbaum said.

He joined Prologis, the largest logistics real-estate investment trust in the country because he wanted to learn the ownership and development side of the business and learn it from the "biggest and the best."

One of the biggest deals Tenenbaum has worked on was the subject of some major news this year. Prologis Bronx, a 200,000-square-foot warehouse in the Bronx that was once a carpet and home goods store, was leased by Amazon after its former tenant, Walmart's Jet.com, left the space.

The warehouse, which Prologis bought in 2017, was an early example of logistics companies converting other property types into last-mile distribution hubs as e-commerce numbers climb steadily year after year.

"It kick-started a wave of focus in the boroughs on multistory projects, I'm really proud of it," Tenenbaum said.



Jessica McCarthy, 28, Blueground

Jessica McCarthy landed her first job in home decor six years ago, first as a design manager and then the creative director for Decorist, an online interior-design startup that pairs professionals with homeowners or renters looking to make over their spaces without any in-person site visits.

What's now evolved into a full-fledged e-design industry was then a nascent field, she told Business Insider, and she saw opportunities to "disrupt" traditional interior design with tech smarts and virtual tools.

"Online interior design is the future because it creates accessibility in an industry that has always been very traditional and out of reach for the normal person," McCarthy told Business Insider. "A client can live in middle America and work with a well-known designer in NYC. This has never been possible until now."

Along with a base of everyday clients, McCarthy worked with celebrities and influencers like actress Jamie Chung, Man Repeller founder Leandra Medine, "Bachelorette" 11th-season lead Kaitlyn Bristowe (who just won "Dancing With The Stars") to retool their homes, with her work recognized by Architectural Digest, Vogue Living, and Elle Decor.

The Los Angeles' Fashion Institute of Design and Merchandising graduate then pivoted into real estate, joining global proptech startup Blueground. Founded in 2013, Blueground is a furnished apartment-rental company that leases more than 3,500 apartments in desirable locations in 12 cities from Chicago and Seattle to London and Dubai.

After the units are secured, McCarthy oversees the team that furnishes them, equipping them with top furniture, luxury linens, high-speed Wi-Fi, a workout Mirror, and other gadgets. The move-in-ready apartments are then rented out for as little as 30 days up to multiple years.

As the company's first global director of design, McCarthy is responsible for making Blueground's rentals stylish and homey despite limited square footage. The role allows her to "reimagine the intersection of real estate and hospitality," said McCarthy, who is based in San Francisco.

When designing Blueground apartments, she struggled to find furniture that toed the line between traditional and trendy. So McCarthy spearheaded the launch of Blueground by Home, a collection of exclusive furniture from end tables to sofas available for sale, with new products added in September.



John Fagan, 32, Doorkee

John Fagan is the cofounder and CEO of the startup Doorkee, a digital platform that connects people moving out of apartments with people who want to move in.

The New York-based peer-to-peer company aims to supplant rental brokers (who can command hefty fees) via a combination of software and help from departing tenants.

Fagan was a lawyer and management consultant before he struggled during his own apartment search. He knew in August 2017 that his apartment lease would not be renewed that December. Most landlords couldn't say if they would have available units that far in advance.

Just by searching listings on their own, Fagan and a friend found a pad with a private roof deck, but brokers got involved and wanted $8,000 in fees, Fagan told Crunchbase News. They lost the apartment while trying to negotiate down the broker fee.

"I had an abysmal experience finding a new apartment, and I wasn't alone — everyone has a moving horror story. Intuitively, I knew the solution to fix the broken rental process, and I couldn't let my institutional inexperience hold me back," said Fagan, who earned a bachelor's and a JD from Fordham University.

Fagan told Business Insider in September that because he and Franklin lacked real-estate backgrounds, they looked to New York landlords to invest in the company and guide them into the industry.

"Not having real-estate experience was a double-edged sword," Fagan said in September. "It took us a lot longer after identifying the problem [of exorbitant and unnecessary broker fees], we had to take one and a half years to get the lay of the land."

In 2019, Fagan and Jordan Franklin launched Doorkee. In June, Crunchbase reported that the company is backed by a $5.7 million seed fund. Major landlords including Simon Baron Development and Stonehenge, which operate a total of 40,000 New York City apartments, have supported Doorkee with funding or are clients.

The platform incentivizes departing tenants to give early notice of their plans to move out — about $1,000, on average — in exchange for providing prospective tenants with access to their apartments. They can offer virtual or in-person tours.

Apartment seekers can then find and close on their next apartment on their own schedule, months earlier than before, and long before the apartment is posed on traditional real-estate listing sites. Landlords are on board because Doorkee can reduce vacancies between tenants from three to six weeks to days, plus they save on the costs of listing the apartment and a potential broker fee. Doorkee is free to post. Landlords pay Doorkee a fee if the new lease is signed on the platform.

The pandemic has heightened the need to secure a new home in advance and completely online. New York City landlords who historically have relied on certified checks and a paper lease are finding they need to adapt to combat the sky-high vacancy rate.

The next step: expansion. Fagan told Business Insider that while Doorkee operates only in New York City right now, he plans on rolling out the service to more cities in 2021.



Justine Chan, 31, Live With Plum

When Justine Chan was a child, she watched her parents build a real-estate portfolio in her home city of Singapore. The couple's smart investments in residential properties, which they used for rental income while holding down full-time jobs, allowed them to retire early.

Chan left the nation-state to obtain a bachelor of science degree from New York University and then an MBA from Yale. Inspired by her parents' approach to wealth-building, she purchased her first property after graduate school: a studio near Gramercy Park. It was this decision, she told Business Insider, that kick-started her desire to pursue real estate as a career.

She later sold that studio and bought another one, near Hudson Yards, that she could easily rent out. After that, she nabbed a three-bedroom apartment in the Melrose neighborhood of the South Bronx, asking $375,000. There, she used Craigslist and her own social-media networks to find roommates. In purchasing a total of five apartments in six years, she has acted as both an owner-occupant, landlord, and investor. Her most recent buy, just a month ago, is in Journal Square in Jersey City.

From her experiences, she noticed that single women were at a disadvantage in the home-buying process. In 2019 she launched Live With Plum, a platform with advice, tips, and resources for female buyers looking for primary residences or investment properties. (Plum is Chan's Chinese name.) 

Single women make up about 18% of all home buyers, Chan said, yet materials that cater to them are limited. She plans to expand the site, Instagram account, YouTube channel, and Facebook group to be a "go-to resource on anything home buying for women."

The Plutus Foundation, a nonprofit that highlights media efforts to increase financial literacy, named Live With Plum a finalist for best real-estate content this year, during its first year of existence.

Armed with experience advising Fortune 500 companies with Boston Consulting Group, she got her real-estate license and is now a New York agent with Level Group, often advising female clients buying their first homes. She also works for FTI Consulting, where she specializes in ecommerce and beauty brands amid their broader retail and consumer practice.



Lydia Winkler, 29, RentCheck

After Lydia Winkler's first year of law school at Tulane, she moved apartments and never got her security deposit back. She thought it would be an injustice not to pursue it, she told Business Insider, so she represented herself and sued her former landlord in court. She submitted time-stamped photos of the move-out condition of the property into evidence — and won the case.

She realized the problem she faced applied to countless renters each year. A few months later, continuing her graduate work at Tulane with business school, she met a fellow student, Marco Nelson, who faced similar struggles with property managers. He became her cofounder.

In 2018, they launched RentCheck, a software platform that brings transparency to security-deposit deductions and helps property managers save time on inspections with easy, self-guided inspections that anyone can do from their smartphone.

Today, New Orleans, Louisiana-based Winkler and the RentCheck team are on a mission to make renting fair and transparent as they understand the least privileged people are disproportionately discriminated against in all aspects of housing, from greater upfront costs to unrefunded security deposits.

Winkler is also the founder of REEP Now (Relief Effort for Earning Parole), a nonprofit that provides parole advocacy and support to people eligible for parole in Louisiana. Winkler holds a JD and MBA from Tulane University and a BA from Kenyon College. Winkler was included in Gambit's 2019 40 under 40, Biz New Orleans 2019 New and Notables, and participated in Techstars Atlanta 2019.



Matt Jackson, 34, Angelo Gordon

Matt Jackson grew up on a farm in West Virginia, far from the financial centers of the country. When he set off for college, the Wharton Business School at the University of Pennsylvania, he got his first taste of the world of finance and real estate.

"Candidly, I didn't know what I was getting into with respect to the level of competition." Jackson told Business Insider.

He quickly adapted, spending much of his time working in the university's Samuel Zell & Robert Lurie Real Estate Center and became a teaching assistant for real-estate professors.

A co-portfolio manager at Angelo Gordon, which has acquired $19 billion in properties across the US since it began investing in 1993, Jackson manages the firm's portfolio of current assets and it's pipeline of upcoming deals.

He has risen through the ranks at the firm since he started in 2009 as an analyst. After three years, he was selected to take on the firm's regional investments in the Southeast and Texas. The firm hadn't yet done much investment in those areas, which gave Jackson the opportunity to build a business, but also meant he had to find new local partners to work with.

One of Jackson's career highlights has been Angelo Gordon's deal with Vornado to redevelop a struggling Washington, DC, mall, the Georgetown Parks, into a successful mixed-use development that combined condos with retail. Angelo Gordon purchased the property for $61 million in 2010, and the property was sold for $272.5 million four years later.

Now, he's managing earlier-career analysts, some of whom are starting their careers in financial crisis, just as he did. While the circumstances may be different, Jackson says the most important thing he can do for them is to let them know that it's natural to be anxious right now because everybody feels worried when they face uncertainty.

"It's about making sure people know they aren't alone in having concerns and that you are always available to talk. No one has all the answers. What's more important is to focus on knowing what you can and cannot control," Jackson said.



McKenzie Ryan, 28, Compass

Formerly a national-level athlete, McKenzie Ryan trained for the Olympics as a rhythmic gymnast. She was attending Horace Mann, a co-ed private K-12 school in New York, when she began selling real estate. She is a graduate of Hamilton College.

Ryan immersed herself in the industry by working across different sectors of real estate, in development at Related, in retail leasing at Winick, and at top-tier residential firms. When the financial crisis emerged in 2008, Ryan began identifying strategic investment opportunities for buyers. Before receiving her high school diploma, she had closed a number of multimillion-dollar deals.

Forbes named Ryan, 27, one of New York City's top power brokers, the youngest person ever to receive the recognition. Ryan is the founder of the Asset Advisory Team at Compass. Based in New York, the team focuses on developing long-term strategies for their clients' assets. With an expertise in marketing and branding, she regularly delivers her sellers' full asking price, and negotiates impressive deals for her buyers.

Recently, Ryan sold a West Village townhouse that had been on the market for four years for its full asking price. She specializes in helping her clients buy and sell historic trophy properties and has amassed a social-media presence of more than 25,000 followers on Instagram.



Michael Forman, 30, Blackstone

Michael Forman played a starring role in Blackstone's recent foray into Hollywood film production. The 30-year-old principal at the Wall Street giant helped arrange its acquisition of a 49% interest in three Los Angeles film-studio spaces over the summer in a deal that valued the properties at nearly $1.7 billion.

As part of the transaction, Forman also struck a venture with seller Hudson Pacific Properties, with whom Blackstone plans to acquire or develop more studio properties across the country at a moment when demand for such spaces has surged amid a boom in streaming film, television, and other digital content. Forman will help manage the venture for Blackstone and find new opportunities to help it grow.

"This was a deal that will serve as a foundation for more investment to come," Forman said. "People have been consuming tons of content during the pandemic and we see there are real secular tailwinds behind the business of film production."

The deal and others have made Forman a key executive at the firm involved in increasingly vital categories of real estate when other segments of the market, such as retail and hotels, have been battered by the pandemic.

Forman, for instance, also helped set up a deal last year to purchase a majority stake in seven Virginia data centers and form a venture with seller Commercial Office Property Trust. In November, Blackstone agreed to invest alongside COPT in eight more data centers, which have seen a big uptick in demand from cloud storage users, streaming content providers, and e-commerce sellers.

"My job is to figure out where the growth in the economy is heading and how to support that," Forman said.

Forman grew up in Wyckoff, New Jersey, attended Northwestern and joined Blackstone after graduating in 2014. Part of the recipe for success at the company is not just sourcing deals, but selling senior leaders at the firm, which is famous for its rigorous investment committee meetings.

"It feels like time is moving in slow motion," Forman said of sit-downs in front of top Blackstone execs like Stephen Schwarzman, Tony James, and Jon Gray.

"But when you prepare thoughtful materials and have addressed a lot of the questions already, it becomes a really interesting discussion."



Minjia Yan, 24, Millennium Commercial Properties

Minjia Yan is giving Sin City some soul. As an associate at Millennium Commercial Properties, a Las Vegas-based commercial real-estate firm, Yan has played a big role in its initiatives to build affordable housing for homeless and low-income individuals and families in the area.

She has supported the acquisition and development teams in underwriting projects, securing financing for transactions, and establishing public-private partnership collaborations with both the city and the state of Nevada.

Vegas may be known for the bright lights of the Strip, but Yan also emphasizes that its homeless population is also significant and worthy of attention. Vegas is ranked the worst metropolitan area in providing affordable housing, Yan said, and the state of Nevada has been the worst state in providing affordable housing for a number of consecutive years. She and Millennium have taken action to combat the issue.

"My company Millennium has been working with local nonprofits to provide affordable housing for the past 5 years. We worked with nonprofits to acquire and renovate old motels in Downtown Las Vegas area and turn them into fully furnished, affordable units," Yan told Business Insider. "The tenants are homeless or extremely low income individuals. The average rents are well below market rate and many of the tenants get a rent subsidized voucher from HUD. Most of the furnitures in these units are donated materials from the hotels on the Las Vegas Strip."

Yan and the Millennium team also came up with the idea of using shipping containers to lower construction costs and speed up completion time for housing for communities in need.

"We worked with a local nonprofit to build 10 container units as a pilot program," said Yan, whose project was profiled by Insider's Zoe Ettinger in March. "We got a lot of pushback from zoning and entitlements when we did the container housing project because container housing is a new concept in Las Vegas. We did not give up and we have successfully built a pilot project and demonstrated to the City and the State that this is something can be done."

Yan told Business Insider that during her senior year at University of Nevada, Las Vegas, where she studied accounting, she enrolled in a real-estate mentorship program where she met Jeff Chain, a local developer and the founder of Millennium Commercial Properties. Chain, who has overseen 5,000 acres of master-planned developments in Las Vegas and Phoenix, works on retail, office, and land development projects.

She went on to work for him after graduating from college ate age 20. After a stint in New York pursuing a master of science in real estate, she returned again to MCP.

She is also the host of a commercial real-estate podcast called Creative Talks, which she launched in April, after the pandemic hit. It has 40 live episodes with experts in the Las Vegas market and beyond, Yan told Business Insider, and is targeted at millennials int he field. So far, she's notched 2,300 downloads.

Yan sees Vegas, where she grew up after immigrating from China at age 11, as the perfect place to grow her career. "I'd love to create more development projects in this city and help this city grow," she said.

"Once I have become an expert in my niche market, then the opportunities are endless. I can be on the general-partner side of deals, I can set up a fund, I can be a developer, a broker, or an investor."



Morgan Relyea Colt, 31, Cushman & Wakefield

Morgan Relyea Colt always knew she would pursue a career in dealmaking — she just didn't know in which industry.

"Negotiating was in my blood," Colt said, referring to her father, Tim Relyea, a successful leasing broker who helps manage Cushman & Wakefield's Houston office.

Yet she was so uncomfortable with the idea of joining a business where she would be in her father's shadow, she initially planned to go into oil and gas commodities trading instead. On the eve of taking a job at Shell, Colt relented, joined Cushman, and has since established her own track record of success as a top leasing executive in Houston.

"I came into the business always being my dad's daughter, and every day I have to prove I'm my own self and can fill my own shoes," Colt said.

Before the pandemic, she helped Shell and BHP sublease a million square feet of space in Houston. Even though leasing activity has plummeted since the virus crisis, Colt just finished representing a company lease a large space in Tucson, Arizona.

"When the market is down, sometimes you have to get on the road and find work," Colt, who just had her second child, said. "It helps to have global clients, but a lot of being successful is the ability to be creative and help clients navigate a new market, whatever it is."

Colt chalks up some of her success to relentless networking. Several years ago she met an energy-industry executive at a wedding, kept in touch, and eventually got a meeting to pitch the company to help it with its real-estate decision-making. Within two years, she represented the company in a 200,000-square-foot lease.

"You never push services on someone," Colt said. "I want to be someone they can trust and who they know is going to support them and is always going to show up."

Colt said she knew early on in her career that she could be successful in her own right after a senior broker watched her give a presentation.

"He came in and sat in the back to watch and didn't say anything, but afterward he came up and said 'Hey, good job,'" Colt said. "I knew I had his respect.

"It's so important as a young person when you're coming into a business to feel like you can hold your own with senior people."



Peyton Johnson, 28, Savills

The upper ranks of the commercial services business are mostly male, white, and middle-aged. But Peyton Johnson is part of a class of young executives forging a new archetype for success. 

Johnson, who is 28, was part of a Savills team that secured advisory and leasing work for Blackboard, a $3 billion education-technology company. Last year, she was a key member on a five-person team that pitched and won business from a $25 billion publicly-traded San Francisco tech firm.

Johnson has done it by focusing her expertise on data, in an industry that's been slower than other sectors in embracing technology and innovation. She has become expert, for instance, in a proprietary Savills platform of software and services called Knowledge Cubed that helps clients analyze complex real-estate portfolios and transactions.

"It helps me help them understand what opportunities are out there and how a client can best perform using data," Johnson said. "No one wants their broker to put their finger up to the wind and generalize what the prevailing market conditions might be. They want to be able benchmark their real estate and build a real strategy."

Working with major corporate clients across broad geographies has also helped sustain Johnson's pipeline of business at a moment when the pandemic has threatened to stifle young careers. She recently helped handle a nearly 25,000-square-foot office lease for the large tech client in Atlanta.

Johnson said her wide-ranging role at Savills helping to win business and service major accounts reminded her of her years playing soccer at Harvard, where she was a cocaptain.

"I was a center midfielder," Johnson said. "I feel like I'm always in the middle helping to keep the ship running smoothly so we're delivering seamless solutions to tenants and winning new clients."



Ryan Williams, 32, Cadre

A decade ago, while still a student at Harvard, Ryan Williams raised money to buy homes that had fallen into foreclosure during the Great Financial Crisis at a steep discount. The experience inspired him to launch the real-estate investment firm Cadre in 2014, which has built a digital platform that allows average investors the chance to purchase small stakes in the properties it acquires.

As the market has again been upended, this time by the pandemic, Williams said his firm could democratize the value creation that could come about as prices plunge and eventually recover.

"The main beneficiaries during the last crisis were institutions," said Williams, who worked at Goldman Sachs and then Blackstone before starting Cadre. "Our goal is to let more individual investors benefit this time from the recovery and get access to opportunities that in the past were out of reach."

Cadre has raised more than $130 million in three fundraising rounds and has purchased $3 billion of commercial and multifamily property since its founding. Williams said that its acquisitions continue, despite an investment sales market that has stalled amid the crisis.

According to Williams, the company is in the midst of buying a life-sciences-focused office building for $100 million in Tampa and an industrial property in Phoenix.

Williams also oversaw a notable recent addition to Cadre's executive team with the hiring of J. Allen Smith, the former president and CEO of Four Seasons luxury hotel chain, who joined on as Cadre's president at the beginning of the year.

"He has incredible experience," Williams said. "Allen and a number of our people are out in the market looking for opportunities to continue to grow."



Salman Ahmad, 34, Mosaic

As the CEO and cofounder of construction technology company Mosaic, Salman Ahmad has a goal to make homebuilding cheaper, quicker and more efficient. Based in Ahmad's hometown of Phoenix, Arizona, Mosaic uses its own proprietary software to manage construction on behalf of homebuilders, which enables developers, property owners and contractors to scale up their businesses — and ultimately build more homes for less.

Ahmad founded Mosaic in 2015 with a vision: for everyone to have a place they feel they belong. To achieve it, he provides homebuilders with software solutions that enable them to erect more diverse housing types as well as pushes to make those properties more available, attainable, and adaptive. Some examples of Mosaic's software are digital worksheets that revise construction schedules and eliminate unnecessary tasks and a tool that can calculate exactly how much lumber is needed for a project and have it delivered to the job site, which reduces waste and speeds up construction.

As demand for homes skyrockets and inventory hits record lows, Mosaic and Arizona homebuilder Mandalay inked a $100 million partnership in September to build 400 new single-family homes over the next two years. They'll use Mosaic's software, which can essentially convert architectural blueprints into step-by-step assembly instructions. Mandalay CEO Dave Eversen said Mosaic helped his company cut 20 percent off the time it takes to frame a house. There's a shortage of workers in Arizona already, and Mosaic's software doesn't supplant any of them.

"Our platform is designed to help solve the labor crunch by making people more effective and productive with the help of technology, not replacing people with technology," Ahmad told local publication Prescott eNews.

Mosaic's technology disrupting the traditional construction industry is also attracting investors. Also in September, as Business Insider's Alex Nicoll reported, Mosaic announced that it had closed a $14.25 million Series A led by Andreessen Horowitz, bringing its total funding to $24.75 million since 2015. 

In 2014, Ahmad completed a PhD in Electrical Engineering & Computer Science at MIT; his research centered on software systems, programming languages and human computer interaction. He created his own series of new programming languages including Dog and Silo. After graduating summa cum laude from Arizona State with a bachelor's degree in computer systems engineering, Ahmad received a master's in computer science from Stanford, where he worked on machine learning systems for design. He has also worked with Microsoft to develop solutions for virtual data centers.



Shannon Richards, 28, JPMorgan Chase

Shannon Richards has shown why she's a real-estate finance executive to watch.

An LA-based vice president at JPMorgan Chase who focuses on originating large loans against commercial property, Richards arranged her largest deal ever, a $255 million mortgage tied to a portfolio of office and industrial buildings in Austin, Texas.

Not only was the transaction complex because of the multiple assets involved, the landlord needed to complete it within two weeks because it had planned to use some of the proceeds for another building acquisition it was closing.

Richards — who joined JPMorgan in 2017 after working in the commercial real-estate industry, at CBRE and then Colliers International — managed a team of 15 to get it done. 

"Coming away from that deal, what resonates with me is how fantastic my colleagues, my organization, and the client all were, because everyone had to perform under a really tight deadline," Richards said. "It's amazing to get to a level where you can have total confidence in everyone you're working with."

Just like other areas of the business, such as leasing and sales, real-estate financing transactions could be affected as the pandemic and its aftereffects cast uncertainty over property values.

Richards has dealt with the dislocation by pivoting to resilient areas of the market. She just arranged a $55 million construction loan for an industrial property that's set to be built in Florida and that has been fully pre-leased by an investment-grade anchor tenant.

Richards's chief role at JPMorgan is to manage client relationships. She has to know both the bank's suite of services and products and the details of a prospective client's holdings so that she can offer solutions that anticipate their needs.

"Where you set yourself apart is really taking the time to understand a client's business and holdings," Richards said. "During the pandemic, when you're meeting with clients remotely, you want to be able to sit with them and plan so that you can provide the right solutions and support."



Thomas Jansen, 31, HR&A Advisors

Thomas Jansen started out as an architect.

But after earning both a bachelor's and master's degree in architecture from the University of Pennsylvania, he dipped a toe in the design world — then decided that he could leave a bigger footprint on a city's physical landscape through urban planning.

At HR&A Advisors, where he is a principal, Jansen leads real estate development research and analysis for major projects, mostly in Los Angeles. He advises clients on the implementation of large-scale projects, rezoning initiatives, and economic policies, often bridging the gap between the public and private sectors. 

"My vision is to find an equitable win-win for cities, communities and developers to develop complex projects where there are conflicting interests and, at times, high expectations across the board," he told Business Insider. "I work for both public and private clients to help them understand each others' needs and to implement transformative urban development projects. I develop the creative financing and public benefits strategies (affordable housing, public parks, jobs) that are necessary today to meet community objectives and generate returns for investors."

Take one of his current major projects advising the city of San Jose, about an hour southeast of San Francisco, on a redevelopment proposal that would transform 250 acres of its downtown. In September, Google released renderings and details of the 79-acre campus called Downtown West it hopes to erect in the area, which would be open to the public and contain office space as well as housing and parkland. Jansen is negotiating with San Jose landowners as well as coordinating with transit agencies to build Diridon Station, which, he told Business Insider, "will be the best-connected train station on the West Coast with future high-speed rail."

His emphasis on transit-oriented development also makes cities more sustainable and increases access to urban areas that would otherwise be difficult to access without a car.

For example, for a joint venture of landowners around LA's Dodger Stadium, home to the current World Series champions, Jansen helped to lead real estate and economic analysis to inform the design and development of a proposed aerial tram from the city's main train station, Union Station, to the stadium. The gondola is expected to open in 2022.

Over the course of his career, Jansen's career has touched niches from affordable housing to economic development. In Downtown Los Angeles, his projects are responsible for producing tens of millions of dollars of affordable housing and community benefits and infrastructure financing plans to fund over $2.5 billion of open space and development. In addition he's negotiated deals for over $10 billion of mixed-use development.

Passionate about finding unconventional approaches and compromises for the complex projects he advises, Jansen believes his creative solutions and suggestions will become more common as the housing industry supported by middle- and lower-income earners struggles to recover from the pandemic. Private developers will require new and innovative ways to partner with the public sector that are mutually beneficial. Jansen will help developers deliver on community expectations that their projects will support equitable growth and affordable housing as well as contribute to their bottom line.



Tiffany Thurber, 33, Goldman Sachs

Tiffany Thurber, like some others on this list, kicked off her career amid a financial crisis. As a vice president in the Real Estate Financing Group at Goldman Sachs, she's now managing early-career bankers starting out during another crisis.

"I found that by coming in during a crisis, I was working on a really small team and got in at the ground level, and was able to grow as the economy was recovering and the team was growing," Thurber said.

"It ended up being a really great opportunity, even if joining a real-estate financing team in 2011 wasn't an obvious choice."

Thurber, who majored in finance at College of William and Mary, was drawn to real-estate investment banking because of the focus on tangible assets that affect day to day life, instead of an abstract financial instrument.

She's taken advantage of the opportunity to focus on financing industry-defining deals, like Blackstone's $18.7 billion purchase of GLP's logistics portfolio. More recently, Thurber worked on a CalPERS, America's largest pension fund, refinancing of the City National Plaza tower in LA, which closed this March.

Of all the transactions, she's most proud of an $847 million construction loan that Goldman wrote last year for the second phase of construction of The Wharf, a mixed-use development on the southwest waterfront in Washington, DC.

Her team needed to underwrite for a variety of asset classes, hotel, retail, multifamily, and office, and was estimated by broker Eastdil Secured to be the largest in the city's history.



Turner Rose, 34, JLL

Some young professionals jump into the commercial real-estate business for the chance to earn millions of dollars in a lucrative industry. Turner Rose says he's focused on making sure taxpayers don't get fleeced.

The senior associate at the services firm JLL works on a team that helps the US Air Force manage a vast portfolio of 50,000 residential units across the US that house its service members.

Most of the military's housing is rented long term from large private landlords, and Rose and his team bring private-sector expertise to assure the government gets the best commercial terms in those deals and they're structured to unlock capital for renovations and development.

"We're there to make sure the project owners are performing their responsibilities under the contracts they have with the government in the best way possible," Rose said. "We're making sure the government gets value out of a project."

For the past four years that Rose has been at JLL, he and his team have arranged deals that allowed the Air Force to develop and renovate thousands of new housing units. 

This is Rose's second stint at JLL. After graduating from the University of Virginia in 2008, he worked for the company after spending a few years as a construction manager at the Whiting-Turner Contracting Co. He went to the grocery chain Lidl as a development manager before returning to JLL in 2016.

To make sure Air Force bases are being managed at a moment when the pandemic has cut off the ability to do regular site visits, Rose has helped develop a formal program to oversee the properties from afar using Zoom to communicate with on-site staff and other procedures, such as checklists.

"We're training people on staff, the Air Force military housing offices on base, and local construction managers to work together as a team with us to continue to ensure that we're providing the proper oversight," Rose said.



Tyler Biddle-Barrows, 31, Brown Harris Stevens

Tyler Biddle-Barrows' first client was a celebrity.

In 2012, he represented Charlie Sheen as a buyer's agent when the "Two and a Half Men" star bought a Los Angeles home for his girlfriend.

"I started at 18 interning then sold my first place at 21," Biddle-Barrows told Business Insider.

After a successful start with the Beverly Hills agency Hilton & Hyland, he took a leap to move to New York, where he's mimicked what he did in Los Angeles: cultivating a list of clients strong enough to rank him in the top 1% of agents in the city.

So far the Brown Harris Stevens agent has participated in about $90 million in sales. To do so, Biddle-Barrows had worked alongside top producing teams in three of America's major markets — Los Angeles, New York City, and Miami.

When the pandemic upended life in the spring, Biddle-Barrows' business goals immediately shifted, and he established a partnership with the private aviation provider Blade to serve as its exclusive real-estate partner.

Through the partnership, he enabled buyers, sellers, and property owners to safely travel by semi-private planes to and from Miami and New York, a creative deal that earned Biddle-Barrows confidence from clients and colleagues in times of uncertainty.

He sees the future of real estate as intertwined with other sectors, including tech, luxury, and travel, and he is determined to continue to act as an innovator in the field.



Tyrone Green, 31, RE/MAX Next

Before switching gears to work in real estate, Tyrone Green spent seven years as an inpatient psychiatric counselor. He led group therapy sessions and provided direct care to patients who were mentally ill or recovering from drug or alcohol addiction. 

"I used to sit and feel like my life was passing me by, and that I was not living in my purpose," the Chicago native and University of Illinois at Urbana-Champaign graduate told Business Insider. "I felt a shift in my life where I experienced consistent feelings of restrictions and limitations in the workplace that later affected my personal life." 

However, after attending a real estate seminar with friends, Green decided to give the industry a whirl as a part-time broker with RE/MAX NEXT in Chicago. 

"I always knew I wanted to be involved in real estate," he said. "But after that event I decided getting my broker's license would be the vehicle I would use to get in the business."

In 2019, he was furloughed from his counseling gig and decided to pursue real estate full time.

That year, he brought in $2.8 million in sales — an impressive sum for an agent just starting out in the area — and was nominated for Chicago Agent Magazine's "Rookie of the Year."

Though he currently operates as an independent agent, he hopes to one day lead his own team. And Green, who grew up in North Lawndale on Chicago's West Side, hasn't lost sight of his desire to give back to his community. 

"My long-term goal is to start my own real estate team and to win the community service award [from the Chicago Association of Realtors]," he said. 

He told Business Insider that one way he plans on giving back is by making the home-buying process easier and more accesible for those in his modest neighborhood.

As he learned more about real estate, Green said, he realized that many individuals in his community don't purchase homes because they aren't aware of all the resources available to them that could help them become homeowners.

Added Green, "I want to help educate them."



Victoria Abbasi, 28, Colliers International

When Victoria Abbasi graduated from college with a marketing degree, she wasn't looking for commercial real-estate work. After a series of interviews at several companies for marketing roles, she joined Colliers.

"I didn't know anything about real estate, but what drew me to the team was that they were very passionate about their work with a real team camaraderie," Abbasi told Business Insider. "It was something I could dig my heels into."

Abbasi, who's based in Washington, DC, worked for five years as a client-services coordinator for Colliers Government Solutions Practice group, which represents landlords that lease office space to governmental agencies.

At the beginning of 2019, after spending five years on the marketing side, she spoke with a senior broker on the team about trying her hand with the transaction side. The broker worked with her weekly, meeting before work to run through the complexities of running a transaction, working with clients, and finding out which government agency needed space.

In June 2019, she became a full-time broker, representing landlords looking for government tenants. She represents Brookfield Office Properties, Boyd Watterson, KanAm, and MRP Realty. Since she began in that job, she's worked on more than 1.2 million square feet in deals, with $177 million in deal value.

Even though she's working with the same team, she said she's constantly learning in her new role. "Every single day, I have questions for one of my teammates on things like negotiation tactics," Abbasi said. "It's not something you can get a handbook on, doing real-estate transactions — it just comes with time."

For someone who was agnostic about real estate coming in, Abbasi has become a fixture of the DC commercial world. She's an active member of the DC chapter Commercial Real Estate for Women, first as a committee cochair, and she's now an incoming board member.

"Everything I got to do because of mentoring from other women. I'm now able to pay it back to the younger women in our industry," Abbasi said.



Vik Chawla, 31, Fifth Wall

Vik Chawla is a partner on the technology investment team at Fifth Wall, a venture-capital firm that invests in real-estate technology and has found success with its North American Real Estate Technology venture funds. 

Chawla told Business Insider that his passion for real estate began when he was a child.

"I grew up in Danville, California, watching my mother, through tireless work ethic and a strong dedication to her customers, grow a small real-estate brokerage practice into one of the country's top residential sales teams," he said.

Chawla's mom, Jou Jou, worked for J. Rockcliff. His dad, Piri, was a CFO at Xerox.

In 2011, Chawla graduated from the Wharton School at the University of Pennsylvania. From there, he joined the Blackstone Group, where he worked on advisory transactions spanning the energy, hospitality, and real-estate asset classes. During his time at Blackstone, he met Fifth Wall cofounder Brad Greiwell.

"Brad and I used to talk extensively about the arduous pains of building a national single-family rental business with less available technology than consumers had at their fingertips on mobile phones," he said.

"We quickly realized that there was a dearth of technology companies in the real-estate space, both on the consumer and enterprise sides — a problem which needed to be solved."

After nearly two years at Blackstone, Chawla worked at a hedge fund in the Bay Area until he was recruited to be the first senior associate hire at Fifth Wall in 2016.

Among the real-estate tech companies Fifth Wall has backed are smart home automation platform SmartRent, online real estate company Opendoor, and online notarization platform Notarize.

Looking ahead, Chawla told Business Insider that his goal is to "oversee a global investing strategy for the firm and bring what we've done in our North American Real Estate Technology venture funds to a global scale."



William Sankey, 33, Northspyre

New York-based William Sankey saw a bump in demand for his proptech startup as real-estate professionals who had previously worked in conference rooms were suddenly working remotely.

Northspyre, which seeks to modernize construction through cloud technology and data analytics, raised $7.5 million in a Series A fund-raise over the summer.

"At Northspyre, we've seen our highest engagement during the pandemic," Sankey said. "It's become a hub for how teams communicate and make their decisions."

Sankey's path to starting a proptech startup began when he studied architecture at Yale. "I was always fascinated with how cities were built and how they were developed," he said.

In his time studying architecture, he realized his ambitions were wider than studying one building, so he followed that degree by getting a master's in urban planning at Harvard.

While there, he began to focus on real estate, the "people making actual changes to the built environment." He started his career at JLL, working as a project manager for a few construction and development projects, including the $850 million transformation of Madison Square Garden.

In Sankey's time at JLL and other developers, he noticed a lot of the same problems in every build. Construction is notorious for costing more and taking longer than projections, and one major cause is the challenge of adequately tracking and understanding what's going on with the project.

In the evenings after his day job, Sankey started working with Excel spreadsheets to track multimillion-dollar projects, building a program that could automate a lot of this work. After partnering with a more technical cofounder, Sankey launched Northspyre in 2017. 

Now he's running a startup where he's both CEO and the head of product, helping to develop new ways to use Northspyre's underlying software to make it more useful for real-estate development teams.

He's had to break out of his comfort zone and become good at selling the platform.

"Early on, when I would talk to people in the industry, they didn't know anything like Northspyre was possible," Sankey said. "They weren't Googling for a digital project assistant."




Real estate's rising stars share their best career advice, from practical pointers on reading to tips for challenging yourself

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Rising stars real estate Tyrone Green, Lydia Winkler, Erik Conover

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The opportunities in the world of real estate are vast, making it a rewarding — albeit challenging and competitive — career path. 

The industry did encounter unforeseen hurdles this year as the pandemic emptied out —and threatened the future of — offices, hotels, and malls. The coronavirus crisis and accompanying economic uncertainty also pushed Americans to reconsider where they live, causing mass migrations and relocations for everyone from tech CEOs to the millennial work-from-home set

We asked this year's rising stars of real estate to give us their best advice for those starting out in the industry.

Because these beacons at established firms and startup founders launched their careers during the 2008 financial crisis, their words of wisdom apply to others kickstarting their own professional lives in the tumultuous times of 2020.

Take a look at some of the lessons and insights they've learned along the way, presented in alphabetical order by first name.

Read our full list of the rising stars of commercial and residential real estate here. 

SEE ALSO: The ultimate guide to getting started in real estate

Listen and be persistent

Adam Pittenger, founder and CEO of Moved

"Listen and be persistent. Listening is essential because it helps you learn and comprehend, no matter the context or situation.

"This was important for me as I first got into real estate and technology — I understood that I knew very little and needed to continually ask questions to learn as much as I could. This is equally important for me today, not just so I can be perpetually learning, but so we can improve Moved as an offering for our customers and as a place to work for our team.

"The persistence aspect is crucial. You need to show up and keep showing up. Even when things get hard and you hit roadblocks, you need to keep pushing forward. But this only works if you pair it with listening, because you need to keep learning and keep getting better each time you show up."



Never stop learning

Ashley Socarras, executive vice president of acquisitions at Lloyd Jones

"Never stop learning! My thirst for knowledge is what ignited my passion for real estate, and I've never looked back. And, don't be afraid to wear multiple hats in your role — that's how you grow your skills and add value to your company."



It's not how you start the race, it's how you finish

Brian K. Hinds, vice president of acquisitions and development for Bridge Investment Group's opportunity zone strategy

"My career advice is relatively simple. My mom always taught me when I was growing up that: 'It's not how you start the race, it's how you finish.' I wasn't the first guy out of the gate, but as long as you work hard, you finish where you should. If you remain humble and follow that fire, follow that passion, you will end up where you want to go."



Lead by example

Derek Wilson, vice president of construction and renovation at Cortland

"The best career advice I have received is to never ask anyone to do something that I would not and have not done. By allowing myself the opportunity to take on new challenges and dive fully into a project, I have expanded my skill sets and knowledge, and that has resulted in my ability to lead by example with a more empathic and empowering manner."

"I owe my growth to the leaders who have invested in me and have been willing to work alongside me – not just above me. That's a leadership quality that I try to carry forward with my team. Because at the end of the day, it's people and relationships that matter most and are the true drivers behind collective success."



Don't shy away from hard conversations

Emily Neff, Southeast solution leader for CBRE's workplace division

"By nature, I'm not very confrontational. Many people wouldn't describe themselves as confrontational. I have a quieter personality and tend to shy away from conflict.

"The best advice for myself and others like me is to not shy away from challenging conversations, whether with colleagues or even your clients. Some of the best outcomes I've received have come from this sort of debate, you can get to a place of innovation and testing new things instead of complacency. You have to have hard conversations and do a bit of disagreeing to get better outcomes."



Ask for feedback

Drew Sterrett, co-founder and CEO of Lex Markets

"The best advice is to ask for advice. People are willing to help and they're encouraged to engage with someone who is working on a major pursuit.

"Ask for education and feedback, not capital. That's what builds strong foundations for future friendships, mentors, and business relationships. Asking for someone's advice also says that you respect their point of view. Once you've crossed that bridge with someone, you'd be surprised at how quickly they become a stakeholder in your success."



Take cues from your experiences

Eric Siegel, assistant vice president, Basis Investment Group

"For me, personally, it's not advice that I was given in an overt way, but the signals that the overall job market has given to me. Finding a career and a firm that's the right fit is a Darwinian process. 

"I wish someone at the beginning of my career had told me that the correctness of fit is a result of experiencing your career and living through it and not settling for things you don't want to do, but at the same time, being patient enough for the opportunities that are immediately at hand, in order to get the most out of them."



Let curiosity guide you

Erik Conover, real estate influencer and agent at Nest Seekers

"The best piece of career advice I have ever received was to move forward toward your goals and dreams with curiosity and amazement rather than with set demands and expectations.

"I've found that the magic occurs in life when you stop setting your mind on one certain outcome or path and just truly learn to enjoy the process. Anything is possible as long as you're willing to put in the work and enjoy the ride and live your passion."



Add new tools to your toolbox every day

Jason Tenenbaum, vice president and South Florida market officer at Prologis

"Fall fast and fall forward, I love that one.

"The other piece of advice I got when I was graduating from college. I sat down with the professor who said that whatever your next job is, or your career path looks like, make sure you're getting stronger, better, and smarter every single day. You're building that toolbox, so you want to have all the tools to do whatever it is to get to the next day." 



Never take no for an answer

Jessica McCarthy, director of interior design at Blueground

"Never take no for an answer. In difficult business conversations and negotiations, it's tempting to give in or opt for a hassle-free solution.

"I had a CEO who taught me this at the start of my career, and it's something I've always taken with me. If told no: figure out a different way to ask the same question, engage a strategic set of internal champions, and keep at it until you get the right response with the best outcome for the business."



Treat people with respect

John Fagan, cofounder and CEO of Doorkee

"'I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel,' said Maya Angelou, who understood humanity on a fundamental level. And business, at its core and at its best, is just understanding people and their needs — and then finding a way to fulfill those needs while making them feel seen, valued, and respected."



Good things take time

Justine Chan, founder and CEO of Live With Plum

"Be patient. Seeing my parents painstakingly build up their [real-estate] portfolio is probably the biggest career lesson I've had. You don't have to 'win' every day, but you have to think about now creating the building blocks for your desired future. Good things always take time."



Every problem is an opportunity

Lydia Winkler, founder and COO of RentCheck

"'Every problem is an opportunity,' my dad always said that to me when I was growing up. And RentCheck is living proof of that.

"My company RentCheck is a direct result of a personal problem I faced.  When I was a law student, I had to sue my former landlord over a security deposit that was wrongly withheld. I was successful, but realized my problem could be eliminated through the use of technology — andRentCheck was born."



Don't let your superpower become your 'superweakness'

Matt Jackson, US real estate co-portfolio manager, Angelo Gordon 

"The first bit of advice I'd share is that questions are more important than answers. I think many people, particularly in our industry, want to be the smartest people in the room, but I believe asking the right questions is so much more important. Don't be afraid to ask a question that you think might sound stupid because 99% of the time, everyone else is wondering the same thing.

"Another piece of advice that I've been given and found to be very true is that any strength you have can become a weakness when it's overused. At times, your superpower can become your 'superweakness.'

"A last piece of advice, which has helped me with procrastination, is that you can't create and edit at the same time. It's a game-changer. We all want our work to be perfect, but you have to start somewhere, so — even when I'm still figuring out what I want to write or do — I just get started and refine later."



Invest in yourself

McKenzie Ryan, real estate agent at Compass

"I am my only competition — to focus on anyone else is to distract from my dreams. Invest in your future, and believe in yourself so much that no one else can doubt you. If they do, it's based on their own self-doubt. Not on your talents, not on your merits."



Don't always accept the status quo

Michael Forman, principal at Blackstone

"I think people who excel over time don't accept the status quo as the way it always has to be. They act like they have real ownership in the organization in which they work.

"Think about what else you can do, what new opportunities haven't been considered before, be resourceful and proactive and invested in the outcome."



Don't be scared of making mistakes

Minjia Yan, associate at  Millennium Commercial Properties

"'You need to become a disaster before you become the master.' I got this advice from one of my podcast guests. I used to be afraid to express my ideas at business meetings because of, say, lack of experience or fear of asking a stupid question. But that quote helped me learn that if I don't express my ideas or ask that maybe stupid question, then I would never be able to learn.

"Young professionals shouldn't be afraid to make mistakes at a young age. We should constantly get out of our comfort zone and try new things. We will make mistakes, but so what? Learn from that mistake and try again. Because you need to become a disaster before you become the master. Everybody started somewhere."



Don't let 'no' get you down

Morgan Relyea Colt, executive managing director at Cushman & Wakefield

"Outwork everyone and stay true to yourself. My clients know who I am and they know what to expect. Never let 'no' get you down. 'No' just makes me fight harder."



Pick your colleagues wisely

Peyton Johnson, senior director at Savills

"Really the biggest decision you make is the team you join. Real estate is actually often a small team business, you're not joining a massive firm.

"So much of what you learn is from the people you work with. And picking managers and leaders you want to learn from, and who will support you and your growth, is the biggest decision you can make."



Work hard and make your own path

Ryan Williams, cofounder and CEO of Cadre

"Work harder than anyone else around you when starting out. Be the one to turn on the lights at the start of the day and turn off the lights at the end of the night. I love the quote from the Greek poet Archilochus: 'We don't rise to the level of our expectations; we fall to the level of our training.'

"Don't be afraid of being different or make your own path. To get unconventional results and outcomes, you must do unconventional things. If you are on a path you don't believe in or don't like, don't accept it as is, step off the road, make your own path, and chart your own course."



Read as much as possible, but don't force it

Salman Ahmad, cofounder and CEO of Mosaic

"A piece of advice I received both growing up and throughout my career — and struggled with — was to read as much as possible.

"Easy enough, I thought, but I am not a fast reader and I was bored easily. Then a friend made a simple suggestion: 'Don't read the entire book if it's a struggle, just skim sections that seem interesting to you.'

"It was like a strange burden was lifted and everything 'clicked' for me. The benefit of reading is not in reciting each word but in learning to think like the author so you can approach situations with a similar mindset. Freed from the guilt of not reading a book cover-to-cover, I exposed myself to many more ideas than I would have otherwise. It was incredibly transformative for me."



Be patient

Shannon Richards, vice president and client executive of real estate banking at JPMorgan Chase

"Do the right thing for clients and make sure you're supporting them through good times and bad.

"I also think it's important to keep your head down and focus and do business with the right people. And be patient. Not everything happens really fast and that's a hard thing in a world where instant gratification always feels like it's at our fingertips."



Take the time to understand the "why?"

Thomas Jansen, principal at HR&A Advisors

"I always remember a piece of advice from a graduate school professor, the late urban planner Evan Rose, who pushed us to expect concepts to be challenged and to appreciate the process of collaboration and refinement.

"In real estate, being comfortable with that is a first step in avoiding past missteps by the industry where projects were too one-dimensional, heavy-handed, and didn't take into account what communities actually wanted or needed. I think that taking this has made me work to be a better listener, seeking to identify the rationale and patterns of feedback. Ultimately, it also makes projects more vibrant and successful."



Be yourself

Tiffany Thurber, a vice president on Goldman Sach's real estate investment banking team

"The main advice that comes to mind is that success isn't based on one specific style and approach.

"You should never be concerned about bringing your authentic self to the table. This advice doesn't come from anyone specific, many mentors have told me over time to 'make sure you're being yourself.' The next natural step is to realize that success isn't based on copying someone else's style."



Get involved

Turner Rose, senior associate at JLL

"Get involved in as much as you in as many things as you can. That's how opportunity comes up."



Find mentors to help guide your journey

Tyler Biddle-Barrows, real estate agent at Brown Harris Stevens

"The road to success is a journey and for most people there will be some challenging and difficult times. It's important to always keep moving forward. 

"If you have the opportunity to learn from someone seasoned in the industry, it is a great way to 'learn the ropes.' I was fortunate enough to have the opportunity to work with multiple top brokers. Those mentors taught me good business practices and inspired me to add my own personal style to my work. 

"Lastly, I think it's important to remain grounded and kind to people. Maintaining good relationships and having a good reputation is just as important as sales and other accomplishments."



There's no elevator to success

Tyrone Green, real estate agent at RE/MAX Next

"You must discover your 'why' — as it is the one constant that will guide you toward fulfillment in your work and life.

"I also want to express that there is no elevator to success. You have to take the stairs."



Advocate for yourself

Victoria Abbasi, senior associate at Colliers International

"The best piece of career advice, which my father gave me and I tell anyone who asks for advice, is to be your own advocate. I can't stress that enough, even if you have cheerleaders in your corner, especially for women in the industry, you have to be an advocate for yourself.

"In my career, it's all I've done. Whenever I want to learn more, I'm very vocal with my team. I don't sit back and wait, I really have been vocal about that. You are your best advocate.



Seek a good boss

Vik Chawla, partner at Fifth Wall

"When pursuing a new job, place special emphasis on getting to know your would-be manager. If your boss is amazing, work is thrilling. If your boss is terrible, life is miserable. It doesn't matter whether you work at the most prestigious institution or a small firm."



Be open to new opportunities

William Sankey, cofounder and CEO of Northspyre

"It was advice given to me by one of my mentors George Ladyman, when I was at [commercial real estate firm] JLL. He was telling me about how to map out the best plan for your career.

"He told me not to be too rigid with my plans, and to be opportunistic and open to surprising turns. Be strategic, but take advantage of the opportunities you have. Sometimes, you can't see all the steps you need to take to get where you want."



Inside a sweetheart deal for SPAC pioneers Chinh Chu and Bill Foley. How the ultra wealthy dealmakers made millions in what some experts are calling a 'kickback' from Blackstone.

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Summary List Placement

In 2017, Chinh Chu, a former Blackstone senior managing director, joined his business partner Bill Foley in an unusual deal that enriched Chu's former employer and that has earned the ultrawealthy men more than $12 million in fees.

The deal, which gave Blackstone $16.6 billion to manage on behalf of the Iowa insurance company F&G, was emblematic of a new gold rush among private-equity firms seeking to exploit the legally required cash reserves of insurance companies — while delivering huge fees to insiders who can help them gain access.

Now the deal is attracting scrutiny from lawyers and experts in the field. A corporate-governance specialist described the arrangement as an apparent conflict of interest, while a UC Berkeley law professor called the fees a "kickback." A shareholder lawsuit in Delaware state court went further, alleging that a company co-owned by Chu and Foley "knowingly participated in breaches of fiduciary duty."

When Chu stepped away from The Blackstone Group in 2015, he was the private-equity giant's longest-serving dealmaker and had headed up many multibillion-dollar transactions. While he remained a Blackstone senior advisor, he founded CC Capital and sponsored a series of publicly traded blank-check companies, called SPACs, which are essentially pools of investor money that can snap up other operating businesses. He and Foley are considered trailblazers in this area, which has seen explosive growth over the last year.

In 2017, one of those blank-check companies purchased Fidelity & Guaranty Life, a company based in Iowa that sells annuities and life insurance.

Under its new owner, FGL Holdings, F&G agreed to pay a Blackstone subsidiary for managing most of the insurance company's investments. Blackstone, in turn, agreed to send about 15% of the management fee to a company owned by Chu and Foley.


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The deal with Blackstone is part of a saga involving Foley, the chairman of the Fortune 500 insurance company Fidelity National Financial. Under his leadership, FNF bought FGL Holdings in June.

In August, a shareholder of Fidelity National sued Foley in Delaware Chancery Court. Chu is not named as a defendant in the lawsuit, but the company he owns with Foley stands to lose tens of millions in ongoing fees if it is successful.

"Foley appears to be conditioning lucrative third party investment management agreements on the third parties agreeing to kick back 'sub-advisor' fees," the complaint alleges. 

Chinh Chu F&G web

The plaintiff in the suit is a pension fund that pays for retirement benefits for public employees of the City of Miami. It says the fee arrangement "extracted millions of dollars" from Fidelity & Guaranty Life.

The costs and risks of Blackstone's investments could also be passed on to insurance policyholders, who count on their insurer to maintain capital reserves to pay out claims — a capacity that could be impaired if FGL fails to make objective, arms-length decisions about who should manage those funds.

Fidelity National Financial said the investment management agreement was "fully disclosed in public filings ... and has been specifically approved by our Iowa regulator." A Blackstone spokesperson said the lawsuit includes "unproven claims and loaded terms," adding that "as part of the review process the agreement to share management fees was fully disclosed."

Blackstone's interest in F&G made Iowa regulators wary, a former consumer protection official says

The Fidelity & Guaranty Life contract was Blackstone's largest foray into managing insurance money, a convenient way for private-equity firms to access investment funds without raising money every five or 10 years. Such arrangements provide a durable stream of insurance premiums that can be invested in private-equity or private-credit-style investments.

Insurance companies are attractive targets for private-equity firms because of the capital they must maintain to pay policyholders. Firms such as Blackstone can get a fee for managing their assets, and they profit further when the capital is invested in their own proprietary funds.

Popularized by Apollo Global Management, this practice has spread in recent years and challenged the patchwork of state regulators that oversee insurance companies.

Susan Voss, a former commissioner at the Iowa Insurance Division, which oversees F&G and other insurers based in the state, said officials sometimes struggle to keep up with private-equity entanglements. "As a regulator, the private sector, the carriers, and the private-equity guys were always three steps ahead of me when it came to new and unusual ways to invest money," Voss said.

Private-equity firms often contribute new investment ideas that cover life-insurance payouts, Voss said. But in recent years, their presence in the insurance business has raised concerns about inadequate oversight and potential conflicts of interest.

Blackstone's interest in F&G initially made insurance regulators wary, said Voss, who left the department in 2013 but stays in touch with former colleagues. "There was some conversation with the Iowa Insurance Division whether they were comfortable with this agreement," she said.

Iowa insurance regulators met with Blackstone officials at least twice in 2019 to discuss F&G's investment management fees, once in February and again in May, according to documents obtained by Business Insider through an open records request.

A Blackstone spokesperson said that Iowa regulators approved the arrangement more than once. "The terms of the investment management agreement were fully disclosed to regulators, boards, and shareholders, and approved at multiple levels," the spokesperson said.

Representatives of F&G approached a Blackstone fund in March 2017, according to a Securities and Exchange Commission filing from that year. Blackstone took an interest in the company after it became clear that a rival bidder, Anbang Insurance Group, might not clear regulatory hurdles to get a deal approved.

Weeks later, a Blackstone exec approached Chu about the $600 million he and Foley had raised with their blank-check company, CF Corp. In April, Blackstone and CF Corp. made a joint bid, eventually winning the auction with a purchase price of $1.84 billion. CF Corp. then changed its name to FGL Holdings.

Blackstone initially acquired 19.7% of FGL's shares, while Chu and Foley each received 10.3%, according to the filing, provided to shareholders before a meeting in August 2017. Chu and Foley were named co-chairmen, and Chu's senior advisor relationship with Blackstone officially ended.

With the closing of the purchase, Blackstone ISG-I Advisors LLC began managing F&G's assets for an annual fee of 0.30% of the assets under management. F&G received a discount for the first year. Blackstone also began managing the assets of three other FGL subsidiaries.

F&G paid Blackstone $95 million in 2019 for managing a portfolio worth about $24.6 billion portfolio at year end, an FGL filing said, which amounted to about 0.39% of the assets under management. The total includes management expenses as well as fees for proprietary products, for which Blackstone charges "market-based rates," a Blackstone spokesman said.

Blackstone said that its investment activities had also been in the interest of F&G. "We acquired a 20 percent stake in the company in December 2017 at the time we entered into the investment management agreement and were fully aligned every step of the way," the spokesperson said. "We rapidly accelerated the company's growth and significantly improved investment performance."

Blackstone's initial fee appears to have been higher than the market rate. Unaffiliated managers tend to charge 0.15% to 0.25% for similar services, according to an internal Apollo study described in a Financial Times report in 2018.

Blackstone paid around 15% of the those fees back to a company called MVB Management LLC, described in a November 2017 filing as "a newly-formed entity owned by affiliates of the company's co-executive chairmen." In April 2020, another filing disclosed that Chu and Foley each owned 50% of MVB.

The 2017 filing said Blackstone paid MVB for "investment advisory services, portfolio review, and consultation." But the Delaware shareholder lawsuit argues that Blackstone, as the largest private-equity firm in the world, is unlikely to need such advice.

"MVB provides F&G with unique M&A opportunities and strategic advice not generally available from other investment managers," Fidelity National Financial said in a statement provided to Business Insider, using the shorthand for mergers and acquisitions.

Chu pursued a similar deal and offered a lucrative cut of Blackstone's fee, a person he approached says

Some experts see the arrangement as an apparent conflict of interest. "It's probably one of those things that is technically not impermissible but gives rise to questions of potential conflicts," said Walt Mix, who ran California's state banking regulator for two years in the 1990s.

Charles Elson, a University of Delaware professor and an authority on US corporate-governance practices, said investors now tend to steer clear of these kinds of conflicts. "Anytime you see a disclosure of a conflict of interest between a senior officer and a company, these days it raises a lot of questions," Elson said, adding that such conflicts are increasingly rare.

Frank Partnoy, a professor of business law at UC Berkeley, said the fees seemed substantial. "I don't know what the common or fair referral or kickback would be, but 15% is certainly a large number," Partnoy said. He added that conflicts could be managed and that to better judge the appropriateness of the relationship, one would need more information about how the deal was handled internally.

In 2018, MVB collected $1.3 million from Blackstone, according to a March 2019 filing. By 2019, it was earning about $11 million per year from Blackstone, the lawsuit from the pension fund said.

In 2020, Foley and Chu began collecting "more in fees for no more work," the lawsuit claims. When Chu and Foley arranged to sell FGL Holdings to Fidelity National Financial, where Foley has been the chairman since 1984, a renegotiated contract changed the terms. The details are redacted in court filings; Business Insider has submitted a letter to the court asking that the redactions be removed.

Chu pursued a similar deal with another insurer, one person he approached said. The potential partner, who spoke on the condition of anonymity, said Chu approached them to participate in a transaction in which Blackstone would manage an insurer's assets and offered a lucrative, ongoing cut of Blackstone's management fee, which Chu called a "finder's fee." The potential partner declined the offer.

A Blackstone spokesperson said he couldn't comment on Chu's outreach without knowing the specifics, but said the company didn't give Chu permission to secure deals in this way. "No such authority was granted," the spokesperson said.

Through a lawyer, Chu declined to comment on the proposed deal or any other aspect of this story.

MVB Management has collected even larger fees from another blank-check deal. In February 2019, an investor group led by Chu's CC Capital and Foley's Cannae Holdings acquired the corporate-intelligence firm Dun & Bradstreet for $6.9 billion. Foley became the executive chairman of the firm, and a prospectus submitted to the SEC in June said Dun & Bradstreet agreed to pay $29.1 million to MVB for unspecified services related to the transaction.

Bill Foley NHL 2016

The pension fund that sued Foley wasn't the only entity to accuse him of self-dealing. In September, the real-estate data and analytics company CoreLogic said in a letter to shareholders that it had defended itself from a "hostile bid" involving Foley's Cannae Holdings.

CoreLogic told shareholders that the Federal Trade Commission had opened an investigation into the potential acquisition, adding that "we believe regulatory concerns may stem from the 'Foley Network' and the web of self-dealing and related-party transactions it has engaged in." The Foley-led group dropped its acquisition effort in the face of higher bids, but it is still engaged in an effort to change the makeup of CoreLogic's board.

On Monday, a Foley-sponsored blank-check company announced its agreement to merge with global payments firm Paysafe in a $9 billion transaction. F&G and another Fidelity National Financial subsidiary were among the entities that committed to finance the deal with a $2 billion private investment.

A spokesperson for multiple Foley-affiliated businesses did not respond to requests for Foley's comment.

Insurance money is fueling Blackstone's quest to manage an unprecedented $1 trillion in assets

Blackstone's foray into the insurance business closely mirrors the activities of other private-equity funds. Apollo Global Management is perhaps the most famous: After hiring a former executive from AIG in 2009, it built a life-insurance platform called Athene that has rolled up old policies and new premiums and plowed them into corporate-credit investments.

Guggenheim Partners has used a similar model. And in July, KKR & Co. jumped into the business with the purchase of the annuity and life-insurance provider Global Atlantic from a group of investors including Goldman Sachs. (KKR is the largest shareholder of Business Insider's parent company.)

These deals are increasingly drawing scrutiny. In June 2019, Apollo was accused of "looting" its life-insurance business in a lawsuit in New York brought by the Central Laborers' Pension Fund, which held shares in Athene. In 2018, Athene paid Apollo more than $420 million, including 0.40% in fees for some of its assets. The lawsuit said 5% of that sum went right back to Athene CEO Jim Belardi.

Nick Gerhart, a former commissioner at the Iowa regulator, told the Financial Times in 2018 that fees between 0.30% and 0.50% "should be looked at." 

The lawsuit against Foley and Chu's shared company paints a similar picture. The payments to MVB, the pension fund alleges, either were for "using their influence over Fidelity & Guaranty to retain Blackstone rather than another investment management firm, or they are simply a ruse for the transfer of cash from the corporation to Foley and Chu."

Under the renegotiated Fidelity National deal, Blackstone has lowered its fee to between 0.20% and 0.26%, the spokesperson said. Foley and Chu are set to continue receiving fees from Blackstone for years to come.

Blackstone, for its part, has been counting on insurance assets in its quest to become the first private-equity firm with $1 trillion under management.

At an investor day in 2018, Blackstone highlighted 13 businesses that could provide "stable, long duration third-party capital" and help achieve its ambitious $1 trillion goal. Its list included three letters that have become all too familiar: FGL.

Correction: This story has been updated to reflect the fact that, while Goldman Sachs founded Global Atlantic, it was a minority stakeholder when KKR purchased Global Atlantic in July.

SEE ALSO: KKR is making a big push into the $30 trillion insurance industry — here's why private equity is starting to look more and more like Berkshire Hathaway

SEE ALSO: Meet 16 bankers, lawyers, and capital providers helping engineer a $40 billion blank-check craze that's fast-tracking companies to public markets

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Billionaire Blackstone founder Steve Schwarzman started 'Blackstone TV' to help connect with employees during the pandemic — and doesn't plan to stop it once people return to work

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Steve Schwarzman

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In the opening weeks of the pandemic in the US, the Harvard Business Review asked more than 800 employees at different companies what they wanted to hear from their firms.

The number one response was not about what employees wanted to hear, but when: Constant communication "reduces fear and uncertainty and ensures that employees have heard the message," the authors found.

"While leaders may experience fatigue from repeating core messages, they need to realize team members need to hear these messages multiple times," the authors wrote.

For billionaire Blackstone founder Steve Schwarzman, that meant starting "Blackstone TV"— a weekly update from Schwarzman and his management team that comes on Monday morning at 8:30. 

"We invite everyone, more or less, to attend a management meeting," he said at Wednesday's Goldman US Financial Services conference. 

See more: Billionaire Ken Griffin's Citadel just turned 30. Read the anniversary note he sent staff on going from a 22-year-old 'entrepreneur' to running a $35 billion hedge-fund firm.

With a majority of corporate workers still clocking in remotely, corporate communication has become critical to keep productivity levels up. Jamie Dimon told Keefe, Bruyette & Woods analysts that JPMorgan Chase employee productivity has slipped since workers went remote, and financial services firms are concerned that the spontaneous interactions that happen in an office are impossible to replicate virtually. 

Citadel, for example, pumped resources into making a bubble environment for interns in Wisconsin this summer so the college students could interact with full-time employees and each other in-person. 

"There's a need for intensive communication" during a pandemic, Schwarzman said. 

But even when employees return to the office, Schwarzman said he doesn't think the "Blackstone TV" will be retired.

"Blackstone TV is not going to shut off, we are not going to get cancelled as a program because people get a vaccine," he said. 

The firm, like many alternative asset managers, has done well despite the virus. Blackstone boasts more than $150 billion in dry powder, and its real-estate portfolio finished the third quarter up more than 3% for the year, Schwarzman said — easily surpassing the average REIT, which lost money this year. 

Still, he warned at the conference that while the recovery seems to progressing along — and stock prices have already seemed to have priced it in — the US will struggle with unemployment after the vaccine is released broadly, thanks to the permanent closure of many businesses coupled with the trends that the virus accelerated.

"There are companies that are left behind that will stay behind," he said. 

Read more: Blackstone CEO Steve Schwarzman says some big investors are 'cool' with Zoom calls replacing in-person meetings, and that the PE giant nabbed $500 million remotely earlier this week

SEE ALSO: Blackstone president Jon Gray reveals how to stand out to land a job at the ultra-competitive firm, which hired just 0.5% of applicants for 2020 analyst jobs

SEE ALSO: Inside a sweetheart deal for SPAC pioneers Chinh Chu and Bill Foley. How the ultra wealthy dealmakers made millions in what some experts are calling a 'kickback' from Blackstone.

SEE ALSO: A portfolio manager at $20 billion Lone Pine says value investing is alive and well with a new class of company leading the way — and explains why hyper-growth firms like Facebook now fit the bill

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Investing legend Byron Wien says the S&P 500 will hit 4,500 in 2021—but warns of a 20% correction in the first half of the year

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Byron Wien

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  • Byron Wien released his 36th annual "Ten Surprises" list on Monday, where he forecasts financial, economic, and political events that he believes will have a better than 50% chance of happening. 
  • The vice chairman of Blackstone Group Inc's private wealth solutions business  is forecasting the S&P 500 will tumble almost 20% in the first half of 2021 but then climb to 4,500.
  • He also predicts that unemployment will fall to 5%, large-cap technology stocks will lag, and cryptocurrencies will "gain more respect during the year." 
  • View Business Insider's homepage for more stories.

Byron Wien is forecasting the S&P 500 will tumble almost 20% in the first half of 2021 but then climb to 4,500, a 21% upside from current levels.

The vice chairman of Blackstone Group Inc's private wealth solutions business released his 36th annual "Ten Surprises" list on Monday. Joe Zidle, the group's chief investment strategist, co-authored the list.

Wien defines a "surprise" as an event that the average investor would only assign a one out of three chance of taking place but which he believes will have a better than 50% chance of happening.

On the markets front, Wien predicts that the S&P 500 will correct  almost 20% in the first half of 2021, but rise to 4,500 later in the year. At the start of 2020, he predicted the benchmark index would pass 3,500 at some point.

Read more:A Refinitiv research chief outlines 6 key investing themes that will drive markets in 2021 — and explains how you can capitalize on each within your portfolio

Stocks beyond health care and technology will participate in the rise in prices as the stock market broadens out, he added. Wien sees cyclical stocks leading defensive stocks and small-cap stocks beating large-cap stocks. He added that large cap technology stocks will be laggards for the year.

The investor also predicts the  post-vaccine economy will be strong and momentum will develop on the back of pent-up demand, while stocks in depressed industries like hospitality and airlines will rally. The unemployment rate will fall to 5% and 2021 will mark the beginning of the "longest economic cycle in history, surpassing the cycle that lasted from 2010 to 2020." 

Wien added that inflation will increase modestly, and as a result, gold will rally and cryptocurrencies will "gain more respect during the year." 



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Blackstone CEO and longtime Trump ally Stephen Schwarzman says he is 'shocked and horrified' by the 'insurrection' that followed the president's speech, calls for a peaceful transition (BX)

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Blackstone CEO, chairman, and co-founder Stephen Schwarzman on Wednesday denounced Trump supporters' violent attacks on the US Capitol after following the president's inciting rhetoric.

"The insurrection that followed the President's remarks today is appalling and an affront to the democratic values we hold dear as Americans," Schwarzman said in a statement to Insider.

"I am shocked and horrified by this mob's attempt to undermine our constitution.  As I said in November, the outcome of the election is very clear and there must be a peaceful transition of power," he added.

Schwarzman's criticism is notable given his close ties to Trump and previous defense of his attempts to challenge the US presidential election results.

In late November, Schwarzman admitted that Trump had lost the election. Just weeks earlier, however, when more than 24 CEOs of Fortune 500 firms met to discuss what to do if Trump refused to leave the White House, Schwarzman defended Trump's baseless election lawsuits, according to the Associated Press.

During the call, Schwarzman challenged the suggestion by other executives that there was a possibility of a coup, repeated at least one of the president's unsubstantiated voter fraud claims, and expressed skepticism over the Pennsylvania results, according to the AP.

Schwarzman has been a Trump ally and staunch defender as far back as 2016, when he headed up a group of business leaders to "frequently" advise then-President-elect Trump on economic matters.

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