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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. 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.