Sunday, 24 July 2016
Last updated 1 day ago
Apr 21 2011 | 10:08am ET
Private equity giant the Blackstone Group said its first-quarter profit soared 58%.
The New York-based firm posted a profit—excluding some costs tied to its 2007 initial public offering—of $568.1 million, up from $360.4 million. The number topped analysts' estimates by 10 cents per share.
"Blackstone reported our strongest quarterly earnings since becoming a public company four years ago, as the values of all of our funds continued to increase," CEO Stephen Schwarzman said. "Every one of our investing businesses grew sharply year-over-year."
The results mark a milestone for Blackstone: its first profit under generally accepted accounting principles since its IPO. The firm's net income swung to $42.7 million from a net loss of $121.4 million a year earlier.
Blackstone credited the boost to its real-estate and private equity investments. The former saw an almost four-fold increase in revenue to $555.6 million, while the latter saw revenue drop slightly but valuation rise some 5%.
Blackstone's hedge fund revenue also rose, to $105.4 million.