Blackstone President praises UK pension reforms to drive economic growth

The president of Blackstone, Jon Gray, has commended the Labour government’s recent pension reforms, describing them as a promising step towards boosting the UK’s economic potential. Speaking to The Times, Gray expressed optimism about the government’s focus on fostering business growth, reducing red tape, and improving global competitiveness.

Gray highlighted the positive signals the government has sent to investors, noting their efforts to accelerate processes in key sectors such as energy, infrastructure, housing, and business development. He remarked, “Their message to us is that they realise it takes too long to build and grow businesses, to build housing, to get energy. To be globally competitive, they’ve got to get better. So that to us is encouraging.”

Blackstone, a significant investor in Britain with over $100 billion in UK assets supporting nearly 50,000 jobs, has welcomed the government’s reforms designed to encourage pension funds to invest more heavily in infrastructure and private equity. These changes, Gray noted, confront the traditional bias towards fixed income and liquid assets that has stifled innovation and growth in the past.

Gray also acknowledged the undervaluation of UK assets compared to US markets, emphasising the attractive opportunities available in the UK. “The multiples are lower … and it creates a lot of opportunity,” he added. He further noted that the UK offers sectors and companies with strong growth potential at pricing levels that represent excellent value.

Blackstone’s UK investments include entities as diverse as Bourne Leisure, the owner of Haven Holidays; Autolus Therapeutics, a pharmaceutical company developing innovative treatments spun out of University College London; and Sage Homes, a provider of affordable housing. The firm has also established itself as one of Britain’s largest property owners, reflecting its confidence in UK markets.

The focus on attracting global investment into areas that contribute to long-term growth through pension fund reforms could pave the way for greater economic resilience in the UK. Blackstone’s continued commitment reflects growing confidence in the government’s ability to create an environment conducive to both domestic and international investors.