The Blackstone Group L.P.NYSE
Why Blackstone Group LP May Have Further To Fall
Keuka Capital • 74 Comments
Keuka Capital • 74 Comments
Why Owning Blackstone Group LP Is A Risky Proposition
Keuka Capital • 107 Comments
Keuka Capital • 107 Comments
Today, 7:40 AM
Fri, Dec. 2, 12:03 PM
- An all-star team of business leaders has been named to an advisory board that will talk to Donald Trump during his administration.
- The President's Strategic and Policy Forum will be chaired by Blackstone (NYSE:BX) CEO Stephen Schwarzman. Other members include General Motors (NYSE:GM) CEO Mary Barra, JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon, Wal-Mart (NYSE:WMT) CEO Doug McMillon, Disney (NYSE:DIS) CEO Bob Iger and former Boeing (NYSE:BA) CEO Jim McNerney.
- The impressive list is a bit short of Silicon Valley leaders, while hedge fund managers are completely MIA.
- The group is scheduled to meet for the first time in early February.
Thu, Dec. 1, 7:57 AM
- Invitation Homes is the largest single-family landlord in the country with Blackstone (NYSE:BX) investing about $10B since founding it in 2012. The portfolio stands at about 45K homes.
- Multiple reports say an IPO has been confidentially filed for in the hope of raising up to $1.5B as soon as January.
- Other SFR players: SBY, AMH, SFR, RESI, OTCQB:RVEN
Mon, Nov. 21, 7:49 AM
- In what would be China's Anbang's first foray into Japanese real estate, the insurer is near a deal to buy $2.3B of property from Blackstone (NYSE:BX), according to the story.
- It would be the largest property deal since the market peak in 2007, may or may not call the top of a pretty sizable rebound taking place since Abenomics came about in 2012.
- Most of the properties are apartment buildings aimed at middle-class tenants.
Tue, Nov. 8, 12:32 PM
- Blackstone (BX +0.6%) is scrapping its Tamarind Energy venture in southeast Asia after it was unable to find attractive deals in the region, WSJ reports.
- BX had committed $800M to back the energy venture, created by former execs of Canada’s Talisman Energy, to seek deals across the region two years ago, but the money was never deployed and the entities parted ways in August, according to the report.
- P-E investors have struggled to find oil and gas deals across Asia as few sizable assets have become available at attractive prices; Mandala Energy, a similar venture backed by rival KKR (KKR +0.1%), reportedly has signed less than $200M in deals in Southeast Asia since its March 2015 launch.
Thu, Nov. 3, 9:50 AM
Tue, Nov. 1, 8:45 AM
- The 64 properties leased to Brookdale Senior Living (NYSE:BKD) will be sold for $1.125B to a JV of Blackstone Real Estate Partners VIII (NYSE:BX) and Brookdale (BKD will own 15% of the JV).
- The sale price for the 5,967 units works out to $189K per unit, and a LTM lease yield of 8%. HCP will use the proceeds to pay down debt.
- Other than the paying down of debt, the deal reduces HCP's Brookdale concentration from 35% of NOI to 27%.
- HCP and Brookdale have also entered into another agreement for a multipart deal involving, among other things, the termination of leases for 29 communities, the contribution of four communities currently leased to Brookdale by HCP into an existing RIDEA JV with HCP, and the financing of certain communities owned by the entry fee CCRC JV between Brookdale and HCP.
- HCP will hold its earnings call at 12 ET.
Mon, Oct. 31, 8:11 AM
- The all-cash deal works out to $43.50 per share, a 33% premium to TeamHealth's (NYSE:TMH) close on Oct. 3, the day before reports the company was mulling a sale. TMH closed at $36.80 on Friday.
- Jana Partners approves the deal and will vote its roughly 8% stake in favor of it.
- There's a 40-day go-shop period. Closing is expected in Q1.
Thu, Oct. 27, 3:37 PM
- Sanchez Energy (SN +2.7%) is in talks to partner with Blackstone (BX +1%) on a deal to purchase Anadarko Petroleum's (APC +1.5%) south Texas oil and gas assets for $3B-$3.5B, WSJ reports.
- Blackstone and the P-E firm’s GSO Capital Partners credit arm likely would fund or participate in the purchase, although the details are not known, according to the report.
- Sanchez reportedly also has been in talks with Apollo Global Management (APO +1.5%) and energy-focused P-E firm EIG Global Energy Partners to participate in the bid.
Thu, Oct. 27, 8:44 AM
Thu, Oct. 27, 7:55 AM
- Q3 economic net income of $687M or $0.57 per unit vs. a loss of $416M and $0.35 one year ago. Distributable earnings of $593M or $0.48 per share vs. $691.5M and $0.58 one year ago. This quarter's distribution is $0.41 per unit.
- Fee revenues of $601M down 15% Y/Y; fee-related earnings of $229M down 14%. Performance fees of $672.6M vs. a loss of $639M a year ago.
- Gross inflows of $14.7B during quarter, and LTM of $68.5B. Total AUM up 8% Y/Y, and fee-earning AUM up 11% to $267.8B.
- $4.3B of capital put to work in Q3 and $15B YTD.
- P-E carrying value up 3% during quarter. Real estate opportunistic funds carrying value up 3.7%; core+ funds carrying value up 2.9%.
- Hedge Fund Solutions: The BPS Composite was up 2.9% in Q3 and 4.3% for the last six months after a particularly rough Q1. Economic income of $80M during quarter a double from last year. Economic income for first nine months of 2016 of $190M down 14% Y/Y.
- Gross returns in credit strategies of above 6%.
- Earnings presentation
- Conference call at 11 ET
- BX +2.8% premarket
Wed, Oct. 26, 5:30 PM
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Mon, Oct. 24, 8:28 AM
- The deal is valued at about $6.5B, or $26.25 per share in cash vs. Hilton's (NYSE:HLT) close Friday of $22.91. The sale - expected to close early next year - will cut Blackstone's (NYSE:BX) stake in Hilton to about 21%.
- HNA will also own about 25% of Hilton's previously announced planned spinoffs of Park Hotels and Hilton Grand Vacations.
- As part of the deal, HNA will appoint two directors (one from HNA, and one independent) to Hilton's board, bringing the board's size to ten.
- HLT +6.95% premarket
Wed, Oct. 19, 4:08 AM
- Blackstone (NYSE:BX) is the lead bidder to acquire physician-services company Team Health (NYSE:TMH), Reuters reports.
- The agency couldn't say what Blackstone has offered, although Team Health closed +7.2% at $40.25 yesterday, giving it a market cap of $2.93B.
- Blackstone has already owned Team Health before - from 2005-2009 - and its second pursuit of the company comes amid consolidation in the sector.
- Earlier this year, Team Health was forced to make board changes following pressure from activist investors such as Jana Partners.
Wed, Oct. 5, 11:24 AM
- A number of Wall Street names are backing off (or at least slowing) bets on single-family rentals, and there's plenty of talk of rent growth slowing, but Pretium Partners - headed by former Goldman senior partner Donald Mullen - isn't having any of it.
- Source: Ryan Dezember in the WSJ
- We believe tight credit availability is preventing new households from being able to obtain mortgages to purchase their first home,” says Pretium in its latest pitch book. “Households that have been unable to obtain mortgages have become renters, thus driving high occupancy rates and robust rent growth.”
- Pretium is raising money for its third fund dedicated to residential real estate. The first fund raised $1.2B in 2012 and purchased over 16.5K homes; fund two in 2014 raised $900M for 14K non-performing loans.
- With foreclosures down sharply, the company is buying far fewer properties on the courthouse steps, and more on the open market. Pretium acknowledges great deals aren't as easy to find, but still feels it can earn adequate long-term returns by focusing on the right markets.
- A check of some other players finds Blackstone (NYSE:BX) has slowed its buys to about 20 per week. Colony Starwood (NYSE:SFR) sold more homes than it purchased in Q2. American Homes 4 Rent (NYSE:AMH) this week sold a small portfolio of Atlanta-area houses.
- Other parties: SBY, RESI
Tue, Sep. 27, 12:14 PM
- Blackstone BX -1.1% offers euro-denominated senior notes of its indirect subsidiary, Blackstone Holdings Finance Co. L.L.C.
- The Blackstone Group L.P. and its indirect subsidiaries takes fully and unconditionally guarantee of the notes.
- Net proceeds from the notes will be used for general corporate purposes.