Blackstone’s President Praises Labour’s Initial Pension Reforms

The president of Blackstone has expressed strong support for the pension reforms introduced by the Labour government, stating that Sir Keir Starmer and Rachel Reeves have made a promising start.

Jon Gray shared his views with The Times, emphasizing, “I would give the UK government significant credit for their pro-business approach.” He highlighted the government’s intention to tackle the lengthy processes involved in business development, housing construction, and energy management, adding, “To be globally competitive, they need to enhance their framework.” This sentiment is particularly timely as Gray visits London to commemorate the 25th anniversary of Blackstone’s inaugural office in the city.

While unsure of the speed at which these reforms will be implemented, Gray noted, “If they can effectively cut back on some of the regulations that restrict national growth, it would be very beneficial.”

Blackstone stands out as one of the foremost foreign investors in the UK, with investments exceeding $100 billion, supporting nearly 50,000 jobs across the nation.

Gray expressed optimism regarding government initiatives aimed at motivating pension funds to channel more investments into infrastructure and private equity. He assessed, “There has historically been a preference for fixed income and liquid assets, which has hampered growth. We are receiving encouraging signals from the UK government in this regard.”

Comparatively, UK assets remain attractive against US valuations, with the S&P 500 index reflecting a significantly higher earnings ratio than that of the FTSE 100.

Gray remarked, “There are appealing business investments available at competitive prices. While overall growth might be slower, there are certain sectors and companies we favor, and asset pricing is generally more appealing. The multiples are lower, presenting numerous opportunities.”

Among Blackstone’s investments are Bourne Leisure, which operates Haven Holidays, Autolus Therapeutics, a biopharmaceutical firm evolving advanced therapies from University College London, and Sage Homes, a provider of affordable housing. Blackstone is also recognized as one of the largest property owners in Britain.