Hindenburg 2.0: Report claims Blackstone may issue clarification on Dhaval Buch's role on REITs allegation

Amid the ongoing scrutiny following Hindenburg Research's report, which alleges potential conflicts of interest involving SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval, a clarification on Dhaval's role at Blackstone is likely to be out soon.

Hindenburg, in its latest report, raised concerns about Dhaval Buch's advisory position at Blackstone, a significant player in the Real Estate Investment Trusts (REITs) sector. However, a Moneycontrol report citing sources within the private equity firm claims that Dhaval, who was appointed as a Senior Advisor well before his wife became SEBI Chairperson, has no involvement with real estate, REITs, or any regulatory matters.

REITs, mentioned in the Hindenburg report, are specialised entities that own, manage, or finance income-generating real estate, allowing investors to earn dividends from property investments without directly owning or managing properties.

According to the Moneycontrol report, Dhaval's role focuses on advising private equity companies across Asia on procurement and supply chain topics, areas in which he has considerable expertise. His appointment was reportedly based on his extensive experience as the former Chief Procurement Officer at Unilever and was not related to real estate or regulatory concerns.

The report suggests that Blackstone may issue a statement in the coming days to clarify Dhaval’s limited role and address any potential misconceptions.

BT could not independently verify this information.

During Madhabi Buch’s tenure at SEBI, several significant REITs were approved and went public, with Blackstone playing a prominent role as a sponsor. Hindenburg’s report alleges that Dhaval joined Blackstone as a Senior Advisor in July 2019, shortly after SEBI approved India’s first REIT, Embassy, which was sponsored by Blackstone.

The report highlights that despite Dhaval having "never worked for a fund, in real estate, or at a capital markets firm," he was appointed to a significant advisory role at Blackstone. It further details that during Dhaval Buch’s tenure as an advisor at Blackstone, the firm sponsored Mindspace and Nexus Select Trust, which became India’s second and fourth REITs to receive SEBI approval and go public.

In addition to his advisory role at Blackstone, Dhaval Buch is also a senior advisor at Alvarez & Marsal, a global consulting firm, and serves as a non-executive director on the board of Gildan, an apparel retailer.