The jury is still out on this question but investors should google MLP's taxation or "Pass Through Entities" taxation. I'm out. I think this is why Hamilton James sold.
Obviously someone trying to scare people away. BX has always prroduced a K-1. The sale was because he holds a lot of stock and is slowly cashing out new options that he receives. Nothing more.
Since BX has promised to send a K-1 to partners "later in the Summer" and MLPs send out K-1s it seems that BX is a MLP and the partners will be taxed accordingly. The jury should be in at that time.