1. ORGANIZATION On October 7, 2014, the board of directors of the general partner of The Blackstone Group L.P. (the  Parent  or  Blackstone ) approved a plan to separate Blackstone s strategic advisory services, restructuring and reorganization advisory services and Park Hill Group businesses from Blackstone to form PJT Partners ( PJT Partners  or the  Company ), which separation occurred on October 1, 2015. PJT Partners delivers a wide array of strategic advisory, restructuring and reorganization and fund placement and secondary advisory services to corporations, financial sponsors, institutional investors and governments around the world. The Company offers a balanced portfolio of advisory services designed to help its clients realize major corporate milestones. Also, through the Park Hill Group, the Company provides fund placement and secondary advisory services for alternative investment managers, including private equity funds, real estate funds and hedge funds. On October 1, 2015, Blackstone distributed on a pro rata basis to its common unitholders all of the issued and outstanding shares of Class A common stock of PJT Partners Inc. held by it. This pro rata distribution is referred to as the  Distribution.  The separation of the PJT Partners business from Blackstone and related transactions, including the Distribution, the internal reorganization that preceded the Distribution and the acquisition by PJT Partners of PJT Capital LP (together with its general partner and their respective subsidiaries,  PJT Capital ) that occurred substantially concurrently with the Distribution, is referred to as the  spin-off.  The spin-off, including the consummation of the acquisition of PJT Capital and the Distribution is described in Note 3.  Reorganization and Spin-off.