Blackstone Loses $500 Million In Q3

Nov 6 2008 | 11:43am ET

The Blackstone Group posted a half-billion dollar loss in the third quarter, battered by the market turmoil.

The private equity giant said its net economic loss after taxes was $502.5 million. According to generally-accepted accounting principles, the loss was $365.5 million. In addition, the firm’s business lines saw $160.3 million in negative revenues.

“We are operating in a challenging and volatile environment,” Stephen Schwarzman, chairman and CEO, said. “As evidenced in the third quarter, global equity and credit markets have declined substantially and we have lowered the carrying value of our fund investments.”

Blackstone’s private equity business lost $68.3 million during the quarter, compared to a $227.3 million in revenue, while its real-estate business lost $273.7 million. Still, Blackstone pointed to a strong balance sheet featuring $1.13 billion in available cash and another $1.29 billion in liquid funds.

The firm’s hedge fund unit posted $48 million in negative revenue in spite of higher assets under management and management fees. Meanwhile, Blackstone’s advisory business—which included active deal advisory and restructuring business during boom times for those services—almost doubled its revenue, earning $160.7 million.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of