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"When private equity works, it really works," says Stephen Schwarzman on the Blackstone (BX...

  • Thursday, January 31, 11:23 AM ET
    "When private equity works, it really works," says Stephen Schwarzman on the Blackstone (BX +7.2%) earnings call. Indeed. Once high-water marks are hit, carried interest goes right to the bottom line ... and they're getting hit. For Q4, RCI in P-E was $45.5M vs. -$28.4M a year ago, in Real Estate, $91.1M vs. $3.5M, in Hedge-fund solutions, $76.3M vs. $4.1M.
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This news story has 6 comments:

  • Blackstone is going to make a fortune over the next few years. Dry powder is still very very high, so there is still a ton of capital to invest.
    31 Jan, 11:33 AM Reply Like
  • nothing like being able to borrow all the money you want at near zero interest.
    31 Jan, 11:38 AM Reply Like
  • PE really works when it can put you out of work. And get carried interest cap gains tax rate!
    31 Jan, 11:40 AM Reply Like
  • And being massively leveraged
    And set up the SPVs in tax-haven jurisdictions
    And streamline all processes so there is a very small team managing the portfolio of assets and thus the fortunes and lives of thousands. So the operational costs are pretty much the hedges you need to put in place to protect your fat bonuses if you get them in a non-USD currency.
    And having a presidential ex-candidate formed in the industry thinking that he is very clever because he made a fortune in an industry with this dynamic. Well, with the latter it could have worked even better had he won.
    31 Jan, 11:52 AM Reply Like
  • Jesus. Here we go.
    31 Jan, 05:11 PM Reply Like
  • Private equity performance relative strength wise with say respect to
    S&P 500 (SPY) is a good leading indicator.....
    1 Feb, 02:03 AM Reply Like
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