By Linda Chiem

Law360, New York (October 10, 2014, 2:10 PM ET) -- The Blackstone Group LP said Friday that it will spin off its financial advisory business, as well as its restructuring and reorganization advisory unit, and merge them with Paul J. Taubmans PJT Partners in a deal guided by Simpson Thacher Bartlett LLP.

New York-based Blackstone said that in addition to the tax-free spinoff of the financial advisory business and the restructuring and reorganization advisory unit, it will split off a third unit, its Park Hill fund placement business, and also combine that with independent financial...