Tuesday, 21 October 2014
Last updated 26 min ago
May 15 2008 | 10:17am ET
It’s hard for private equity companies to make money when they aren’t making deals, and the deals they have made aren’t working out. Such is the situation of the Blackstone Group, which announced a $251 million first-quarter loss.
The firm, which announced just one leveraged buyout worth $1.2 billion in the first quarter, said the loss—excluding almost $200 million in costs related to its initial public offering last June; the firm expects to post losses for the next five years on IPO expenses—totaled $66.5 million, or 6 cents per share. Analysts were expecting it to turn a profit of about 12 cents per share, according to Bloomberg News.
In the year-earlier period, the p.e. giant turned an $838.5 million profit on deals worth $42 billion.
Blackstone’s flagship p.e. business was hit the hardest in the first quarter, making a $166.7 million loss, compared to revenue of $208.9 million in the first quarter of 2007. The firm blamed the anemic buyout market and mark-downs of the value of some of its portfolio companies for the ugly numbers.
The firm’s other business units were in the black, barely. Real-estate revenue plummeted 94% to $47.9 million, while hedge fund revenue fell 81% to $31 million.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...