Blackstone Reveals $251M First-Quarter Loss

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.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Strippers Accused Of Robbing Hedge-Fund Manager Face Jail

Oct 20 2014 | 9:20am ET

A group of alleged stripper-thieves—whose victims include a hedge-fund manager...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    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…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

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 ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.