Thursday, 28 July 2016
Last updated 8 hours ago
Jul 22 2010 | 1:46pm ET
The Blackstone Group posted sharp increases in both its net loss and its adjusted profit in the second quarter, as fee-earning assets increased and performance fee revenue decreased.
The New York-based private equity giant said its quarterly loss grew by 17% to $193.3 million, even as revenue grew 35% to $552.3 million. But Blackstone said its adjusted profit—which excludes some costs from its initial public offering—rose to $205 million.
“While adverse global securities markets performance had a negative impact on performance fees in the second quarter, we continue to see signs of improvement in the fundamentals across our portfolio, which benefited the carrying values of investments in Blackstone funds particularly in real estate,” Stephen Schwarzman, CEO, said.
Fee-earning assets at the firm rose 8.5% to $101.4 million. But revenues from its private equity business fell by more than half to $83.9 million, while its real-estate group swung to $208.5 million in revenue after losing $18.9 million last year.