Blackstone Profit Rises As Assets Break $100B Mark

Oct 28 2010 | 12:11pm ET

The Blackstone Group's third-quarter profit surged 23% as its fee-earning assets under management topped $100 billion.

The New York-based private equity giant said its economic net income increased to $339 million from $275 million in the year-earlier period. Distributable earnings soared 67% to $166 million.

Still, charges from Blackstone's initial public offering three years ago and acquisition-related charges—including its purchase of a minority stake in Brazilian alternative investments firm Patría Investimentos, which closed earlier this month—left the firm with a net loss of $44 million, just one-quarter of its net loss from the year-earlier third quarter.

Blackstone said its assets under management rose 8% to $104.3 billion as its portfolio returned about 6% over the past 12 months. But the firm put roughly the same amount of money to work as last third quarter, $700 million, with Tony James, chief operating officer, noting that "it's much harder to find things of attractive value." But the firm said it would finish investing its fifth fund within a few months and expects to begin deploying capital from its new $13.5 billion sixth fund in the fourth quarter.

Fee income increased 20% to $113 million.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...