Blackstone has announced it will shift from its partnership structure to become a corporation, as the world’s biggest alternative investment firm revealed that it hit record capital inflows of $126bn over the last 12 months.
The move, which was announced as the New York headquartered firm reported its first quarter results, aims to make it easier for investors to buy Blackstone stock.
Blackstone is hoping the decision, which will come into effect from 1 July, will boost its share price.
Under the new structure the firm will pay corporate tax on all of its revenue, in exchange for allowing investors such as mutual funds and index trackers to buy its stock, Reuters said.
However, the extra tax bill has become less of an issue for the company after the headline US corporate tax rate was lowered from 35 per cent to 21 per cent last year.
Stephen Schwarzman, chairman and chief executive, said: “We believe the decision to convert will make it significantly easier for both domestic and international investors to own our stock and should drive greater value for all of our shareholders over time.”
Blackstone reported distributable earnings of $538m in the first quarter, up from $503m last year.