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 NEW YORK, Nov. 18 /PRNewswire/ -- The Blackstone Group announced today that J. Tomilson Hill will join the firm as a General Partner effective Jan. 1, 1994.
 Mr. Hill, 45, is the former Co-Chief Executive Officer of Lehman Brothers. He is one of Wall Street's most experienced and trusted advisors in the field of Mergers & Acquisitions.
 Under Mr. Hill's leadership, Lehman Brothers developed a leading market share in significant M&A transactions in the late 1980s. Especially when faced with complex and challenging circumstances, CEOs of major corporations and Boards of Directors have frequently turned to Mr. Hill for advice. Among the more notable of such situations, Mr. Hill led the defense of Federated Department Stores, Pillsbury, and BAT Industries during hostile takeover attempts and advised Time Inc. on its purchase of Warner Communications.
 In addition to his activities in connection with Blackstone's M&A client advisory services, Mr. Hill will join the firm's Investment Committee and participate actively in the development of new merchant banking transactions for Blackstone Capital Partners II (BCP II). BCP II is the successor to Blackstone Capital Partners I, an $810 million merchant banking fund launched in 1987.
 Mr. Hill will also be involved in the future development of Blackstone's new financial service affiliates. The most notable of the existing Blackstone affiliates to date is BlackRock Financial Management, a 1988 startup that currently has over $23 billion under management. Blackstone has also developed affiliates in alternative asset management and troubled real estate investing.
 "Tom will make substantial contributions in our advisory business, especially in light of the dramatic recent upturn in Mergers & Acquisitions activity," said Stephen A. Schwarzman, CEO and President of Blackstone. "Last year, Roger Altman, one of our leading colleagues in this area, joined the Clinton administration as Deputy Secretary of the Treasury. We have, been looking ever since for top caliber senior talent to join Blackstone, and Tom fills that bill."
 Mr. Schwarzman continued: "This major addition to our firm will be particularly helpful in augmenting business with our strategic partner, The Nikko Securities Co., Ltd., as well as with our other global partners such as Banque Indosuez in France, and Sal. Oppenheim in Germany."
 Blackstone's Chairman, Peter G. Peterson, added, "In 1985, when Steve Schwarzman and I founded Blackstone, many people thought we were old-fashioned for stressing the importance of long-term relationships. We wanted to rebuild the confidence of CEOs and Boards of Directors in investment bankers as true senior advisors, not simply dealmakers. At a time of great confusion on Wall Street, we were consciously trying to recreate some of the spirit of an earlier era at Lehman Brothers. That vision has helped create significant value for our clients ever since. What is more, we have continued to attract many of our old friends and partners from our Lehman days. Tom was our partner there, and Steve and I have known him for twenty years. He embodies these values, principles, and skills in investment banking." (Prior to founding Blackstone, Mr. Peterson was Chairman and CEO of Lehman Brothers in the 1970s and early '80s. Mr. Schwarzman was Chairman of that firm's Mergers & Acquisitions Committee).
 "What I see at Blackstone is clearly the best of the old Lehman Brothers investment banking tradition," observed Mr. Hill. "'Relationship banking' has become a 90s buzzword, but it is something that Pete and Steve have always believed in and practiced. Blackstone is highly skilled and uniquely positioned in building relationships with key global corporations and developing them into mutually beneficial business opportunities over time."
 Mr. Hill said he expects the recent dramatic increase in merger activity to continue in 1994:
 "We will see a continued trend toward consolidation in fields like media, telecommunications, health care, and financial services. We will see global competition and cross-border partnerships continue to be key factors shaping business tie-ups. The value theme will also be a pronounced force as shareholders seek to realize greater value in the companies whose stock they hold. And the capital markets will continue to be responsive: bank financing is back for well-structured transactions as is the high-yield market, and the creative use of equity is growing.
 "In short, these are exciting and challenging times to join a firm such as Blackstone that is well-positioned to take advantage of current trends."
 J. Tomilson Hill is a graduate of Harvard College (1970) and the Harvard Business School (1973). He was one of the co-founders of the Mergers & Acquisition unit at First Boston, and was later head of the merger department at Smith Barney. He joined Lehman Brothers as a partner in 1982, serving as co-head and later head of M&A, and then as co-head and head of Investment Banking. He became Co-Chief Executive Officer of Lehman Brothers in 1990 and in early 1993 became Co-President and Co-COO of Shearson Lehman Brothers Holdings Inc.
 In his private life, Mr. Hill has been a supporter, advisor and finance committee member in the campaigns of Massachusetts Governor William Weld and New York City Mayor-elect Rudolph Giuliani.
 The Blackstone Group is a private investment bank based in New York with offices in Paris, Tokyo, and Hong Kong. Its main businesses include strictly friendly principal investments, Mergers & Acquisitions advisory services to major corporate clients, asset management, and restructuring advisory services. The firm was founded in 1985 by its current Chairman, Peter G. Peterson, and by its current President and CEO, Stephen A. Schwarzman.
 Blackstone is a leader in significant international M&A advisory work, having advised on over $40 billion worth of transactions. Recently, the firm advised Grupo Iusacell, a Mexican cellular telephone company, on the $1.02 billion sale of a 42 percent interest to Bell Atlantic. This transaction was the largest single equity investment by an American company in a Mexican company to date. Blackstone is also representing Japan's Aoki Corporation in its contemplated sale of Westin Hotel Company of North America and recently represented PepsiCo on its venture in Argentina with BAESA.
 Blackstone Capital Partners, the firm's merchant banking arm, has invested in or acquired a number of well-known companies including Transtar, Hospitality Franchise Systems, the Chicago and North Western railroad, Six Flags, Aristech Chemical, Great Lakes International, and Collins & Aikman.
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 /CONTACT: Stephen A. Schwarzman, president and CEO, The Blackstone Group, 212-836-9823/

CO: The Blackstone Group ST: New York IN: FIN SU: PER

MP-SH -- NY014 -- 5928 11/18/93 10:10 EST
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Publication:PR Newswire
Date:Nov 18, 1993

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