Johnathan Gray came to notoriety in 2013 with the initial public offering (IPO) of Hilton Hotels. Gray had previously orchestrated a leveraged buy out (LBO) of Hilton Hotels in 2007, taking it private. The deal is reported to have made Blackstone $14 billion.
Gray is also well known for his philanthropist activities. Together with his wife, in 2012 they set up a BRCA cancer research center. The couple has donated over $100 million to the foundation. Gray also serves as a board member of the Pension Real Estate Ass. and Trinity School, and as chairman of Harlem Village Academies.
To answer the question “How much is Jonathan Gray worth?” We decided to compile all the publicly available data on Mr. Gray’s wealth. Below we have provided our best estimate of Jonathan Gray’s net worth.
Note that estimates are precisely that and are not necessarily conclusive. With the help of publicly available assessments, we can determine a figure that is likely to be representative of Jonathan Gray’s net worth.
|Date of Birth||February 4, 1970|
|Title||Asset Manager, Businessman, and Philanthropist|
|Companies Founded||Hilton Hotels, Invitation Homes|
|Best Known For||Leveraged Buy Out of Hilton Hotels and IPO|
|Net Worth (USD)||$6.5 Billion|
What Is Jonathan Gray’s Net Worth?
By most estimates we have assessed, Jonathan Gray’s net worth is $6.5 billion. Jonathan Gray led Blackstone global real estate from 2011, in 2018 he was promoted to President and COO of Blackstone General Partners while continuing to act as chairman of the board for Hilton Hotels.
In 2013, Jonathan Gray helped conceive Invitation Homes, a business venture set up to buy foreclosed single-family homes and turn them into rentals. Wall Street Journal reported that after spending $10 billion in the acquisition of nearly 50,000 homes, Gray had made the largest home-buying spree in history.
In 2017, Gray took Invitation Homes public through an IPO, the company is currently worth $25.2 billion. Gray has also received multi-million-dollar dividend payments from his shares in the company, as well as multi-million-dollar remuneration.
Given the above assumptions about Jonathan Gray’s business interests and TV work, we feel that the figure mentioned above is an accurate estimate of his net worth.
Jonathan Gray Biography
Jonathan Gray was born on February 4, 1970, in Highland Park, Illinois. His father owned a small auto parts manufacturer on the West Side of Chicago. Coincidentally the business was called Blackstone Manufacturing. His mother owned a catering business, where he got his first job aged 14 as a busboy.
In 1992, Gray graduated from Penn State, magna cum laude, with a B.A. in English and a B.S. from the Wharton School. He joined Blackstone straight out of college, with the M&A and private equity group. The following year he joined the newly formed private equity real estate group.
Jonathan Gray’s hard work and investment acumen paid off, in 2005 he was promoted to co-head of the real estate group. And in 2011, he was promoted again to global head of real estate, with properties in the U.S. Europe, and Asia. Gray took the realm of Blackstone as president and COO in 2018.
Under Gray’s leadership Blackstone real estate made several privatizations of real estate companies valued at over $100 billion. The companies included Extended Stay America, Carr America, Equity Office Properties, and Hilton Hotels.
In 2009, Jonathan Gray made it into the Fortune’s “40 Under 40” list, and in 2016 he ranked #1 among the most powerful people in New York real estate on Commercial Observer’s Power 100 ranking
Jonathan Gray’s Personal Life
Jonathan’s parents Susan and Allen Gray divorced when he was young. His mother eventually remarried his stepfather James Florsheim. Jonathan Gray married his wife Mindy Basser in 1995, a fellow Penn State graduate. The couple lives in Manhattan with their four daughters named Margo, Emma, Tess, and Stella.
Jonathan Gray’s sister-in-law died from ovarian cancer at the age of 44. The center the Grays founded at Penn State School of Medicine is in honor of Mindy’s sister. The Basser Center dedicates its activities to innovative research, education, and genetic counseling.
How Did Jonathan Gray Build His Wealth?
Jonathan Gray started his career in an alternative asset management firm straight out of college. In only 8 years he had already reached the position of co-head of real estate. That promotion came in 2005, 6 years later he became the global head of real estate. Managing a portfolio of residential, hotel, retail, industrial, and office properties.
He then went on to create various real estate business deals with notorious success. Many of his investment opportunities meant taking the targeted company private and then taking them public with an IPO. Examples, which we mentioned above, include Invitation Homes, and Hilton Hotels which at the time was the largest Hotel IPO.
Jonathan Gray cemented his career in Blackstone, and you can’t blame him. Promotions kept occurring with encouraging speed. He made savy investments and also received shares of Blackstone. He now owns around 41 million shares of the company. Together with his multi-million salary, dividend pay-outs from such a large number of shares also reach tens of millions per year.
How Is Jonathan Gray’s Net Worth Calculated
We estimate Jonathan Gray’s net worth according to various reliable online sources such as Forbes or Bloomberg. We have also used publicly available information such as SEC filings and company remuneration packages to determine a viable estimate.
Jonathan Gray, we know owns approximately 41 million shares of Blackstone (BX:NYSE). At current prices that equals $4.4 billion. We can also make estimates of his dividend payments. Over the years 2019, 2020, and 2021 Blackstone paid $1.92, $1.91, and $3.57 in dividends respectively. That adds up to $303 million.
We have considered the number of years that Jonathan Gray has been at Blackstone accumulating stocks in the company and executive remuneration packages. We also have the estimates by Forbes and Bloomberg that are both in line with our own. All things considered; we came to the estimate of Jonathan Gray’s net worth of $6.5 billion.
Jonathan Gray has an excellent track record when it comes to investing, especially in real estate. In his interview with Morgan Stanley analyst Michael Cyprus, he gives us some insights as to how he goes about investing.
Jonathan Gray notices that most investors focus on price; if the asset is priced at 100, 102, or 98. Whereas the crunch of matter should be focusing on the investment itself and not so much on the price. He gives the example of choosing a shopping mall, or a logistic property like a warehouse.
Let’s say you bought a shopping mall ten years ago and managed to negotiate a discount to the fair value, say 10%. Or you bought a warehouse ten years ago, at 10% over the fair price. With the shopping mall, you would have felt you got a good deal.
However, that wouldn’t matter much nowadays as we know the shopping mall’s value would have declined. While you would have made a good investment with the warehouse. Basically, picking the winning horse is more important than the price of the ticket.
Of course, he doesn’t believe you should buy real estate or any other asset at any price. Just that you should consider more the opportunity you are investing in. He sees certain themes are more predominant than others.
Some themes are cyclical, some temporary, and others secular. Consider if they are here to stay or not. The most interesting investments involve themes that are here to stay. Now the pandemic is almost over, some activities like dining out, going to the cinema, or flying will naturally increase again.
Jonathan Gray’s Views on Alternative Assets
Jonathan Gray has always been big in the alternative asset space. He made a name for himself in real estate, with a range of projects from single-family homes to industrial property. When choosing where there is an opportunity, he believes in looking at the larger picture.
If you are looking at a single-family home, also consider the surrounding area and what may be about to happen in the future. You can look at a specific industry and determine if it may be successful. However, you can also look at supporting industries, like supply chains or logistics.
Jonathan Gray sees that we are going through a period of transition towards green energy. He has no doubt it is a matter of when and not if. The full transition may take ten, twenty, or more years, but we are a world moving in that direction.
So, he feels there are enormous opportunities in wind, solar, and water energy generation. Along with charging stations and energy infrastructure and understating the different components of the supply chain of green energy.
Who Else Invests Like Jonathan Gray?
Not all investors have the same investing style. To compare investors like Jonathan Gray you can check out some of the profiles listed below:
- Dr. Michael Burry
- Bruce Flatt
- Bethenny Frankel
- Joel Greenblatt
- Abigail Johnson
- Peter Lynch
- Kenda Scott
Want to Invest Like Jonathan Gray?
To invest like Jonathan Gray, you should first look at the major themes of the broader market to determine which ones are temporary and which ones are here to stay. You should also be considering if the investment you are analyzing is cyclical or not. And also look at the bigger picture with the logistics and supply chains behind the economic activity.
You can start your investment strategy and benefit from tax advantages by opening a Self-Directed IRA today. Apart from enjoying tax-deferred growth, with this type of IRA, you will also be able to invest in gold or cryptocurrencies.