Blackstone Hires Former Morgan Stanley Exec to Lead Japan Business

Private equity giant Blackstone has hired former Morgan Stanley executive Ryusuke Shigetomi to head its operation in Japan as the firm expands its presence in Asia’s second biggest economy.

Formerly vice chairman of Morgan Stanley Global Investment Banking and managing director for the investment banking division of Mitsubishi UFJ Morgan Stanley Securities, Shigetomi will now be putting his history in Japan’s financial sector to work on behalf of the world’s largest real estate fund manager as Blackstone ramps up its business in the country.

“Ryusuke brings nearly four decades of experience in Japan’s financial industry and a reputation of excellence,” Blackstone chairman and chief executive Stephen A Schwarzman said in a release on Monday. “The firm announced the best year yet in the market last year with landmark transactions across both real estate and private equity.”

In 2020 Blackstone again led all property fund managers globally with $319.4 billion in total real estate assets under management, and the firm closed on an initial $4 billion for its latest Asia real estate fund late last month.

Banking Background

“It is humbling to join Blackstone, the world’s largest alternative asset manager and one of the most distinguished in Japan, at a significant time of growth for the Japan business,” he said. “I look forward to working with the various teams and leaders across the firm to build Blackstone’s presence in Japan, a key market in Asia for the firm.”

Shigetomi, who also headed the telecommunications, media and technology banking unit at Morgan Stanley, was still at the investment bank when the finance heavyweight saw its net income surge 36% to $3.71 billion in the third quarter from $2.72 billion a year ago. He also witnessed the bank’s real estate arm raising $3.1 billion for its North Haven Real Estate Fund X Global (G10) in September.

Prior to Morgan Stanley, Shigetomi also held several key positions at the Industrial Bank of Japan where he led major deals in telecommunications, media, technology and energy sectors.

Manhattan-headquartered Blackstone said the new hire, who earned his law degree from the University of Tokyo, will help the company navigate the local financial and regulatory environments, replacing Katsuyuki Kuki, a 37-year veteran of Japan’s finance industry, who has resigned as its chairman and is taking on an executive advisor role.

Kuki also had a background in the local financial scene as a former banking chairman at JP Morgan before he joined Blackstone in 2017 where he helped the fund manager with its investing and capital raising activities in the country for four years. Kuki, who also had previous experience with UBS and Lehman Brothers had started his career at the Bank of Japan in 1983.

Sought for further details, Blackstone declined to comment on the reason for Kuki’s resignation.

Blackstone had $7.3 billion in total investments across real estate and private equity last year in Japan, with that amount buoyed by the firm’s JPY 300 billion (then $2.7 billion) buyback of 221 rental apartments from mainland insurer Anbang Insurance.

In early 2021 Blackstone had appointed Eiichi Hasegaw, who had served as a special advisor to Japan’s ex-prime minister Shinzo Abe, as a senior advisor to the company.

Japan Shopping Spree

Since opening its Tokyo office in 2007, Blackstone has been actively investing in Japan’s real estate market, including agreeing in late March to buy eight hotels from Kintetsu Group Holdings.

Among the biggest deals it bagged last year were the JPY 540 billion purchase of a portfolio of commercial and residential assets from Hong Kong’s PAG, as well as its purchase of four warehouses from local builder Daiwa House Industry.

Globally, Blackstone has $731 billion in total assets under management across sectors including private equity, real estate and public debt and equity, among others.