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The Blackstone Group L.P. (BX)

  • Yesterday, 12:47 PM
    • Blackstone (NYSE:BX) Senior Managing Director Doug Ostrover was one of three co-founders of GSO, the company's alternative credit platform which Blackstone bought in 2008 and which now has AUM of $75B. He will remain as a senior advisor, but is also starting a family office to manage his considerable wealth.
    • The FT notes investor fears of a series of top management exits from Blackstone as a number faced lock-up periods of up to eight years after the IPO and June 2015 marks eight years. "“There has been so much wealth generated for a whole generation,” says one partner.
    • Source: Press Release
  • Thu, May 14, 3:59 PM
    • "The focus is on stressed, not distressed oil and gas companies in good areas," says Patrick Fleury, managing director at Blackstone's (NYSE:BX) GSO Capital Partners. The team there feels oil prices are set to renew their decline and wants to hold assets of high enough quality and low enough cost to pay off if the price forecast is correct.
    • It's a shift in strategy from late last year and earlier this year where GSO was piling into distressed opportunities. "Now  I rather own paper that’s paying me 7% on a quality asset than buy debt on a company that has bad assets and high cost structure even though they will pay double-digits in coupon," says Fleury.
    • Source: Bloomberg
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  • Wed, May 13, 7:44 AM
    • The P-E giant is in talks to buy Israeli supermarket chain Mega from Alon Group, reports Globes, with talks being led (on Blackstone's side) by Dan Gillerman, the former Israeli Ambassador to the UN.
    • It would be Blackstone's (NYSE:BX) first Israeli investment.
    • Mega is the country's 2nd-largest supermarket chain, with 171 stores.
    • In other news, Blackstone is among the potential bidders for Japanese property asset manager Simplex Investment Advisors in a deal that could be in the area of $1.25B, reports Reuters.
  • Tue, May 12, 12:02 PM
    • Blackstone (NYSE:BX) Real Estate Partners Europe IV adds three shopping centers to its European retail platform, Multi Corporation, two in Portugal and one in Spain. One of Europe's top shopping center owners, Multi now owns and manages 25 assets in Portugal and Spain.
    • Source: Press release
  • Fri, May 8, 4:01 PM
    • “It’s one of the few highly fragmented businesses left,” says Beth O'Brien, CEO of Colony Capital's (NYSE:CLNY) lending business, which began offering bridge loans to investors who buy homes with the intention of quickly selling at a profit. "If someone can do it nationally at scale, it’s cheaper and better for the borrower.”
    • Among those joining Colony are Cerberus Capital and Blackstone (NYSE:BX), which hopes to make $1B of such loans per year. Blackstone's B2R Finance unit launched in 2013 to lend to landlords and this year acquired "fix and flip" funder Dwell Finance.
    • Flippers have traditionally paid super-high rates to local private lenders as banks weren't interested in the loans, but with the entry of these Wall Street honchos, rates have come down sharply, as have fees.
    • “Everybody just jumped in,” says Mark Filler, CEO of Jordan Capital Finance, quickly summing up the downside. “The risk is people start to relax underwriting guidelines to chase loans. As this becomes more competitive, there will be more pressure to do that.” His company was purchased by Garrison Investment Group six months ago.
    • Source: Bloomberg
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  • Fri, May 8, 2:40 AM
    • Blackstone (NYSE:BX) has secured more $17B for its latest global fund in just seven months, as investors bet that flush times lie ahead for private equity.
    • At that level, Blackstone Capital Partners VII, will be one of the biggest funds raised by the firm in its 30-year history.
    • Blackstone's previous buyout fund, Blackstone Capital Partners VI, raised $15.2B and reported a net IRR of 14% at the end of March.
    • BX +0.9% AH
  • Wed, May 6, 3:42 PM
    • GE's private-equity lending business is considered one of the crown jewels at GE Capital, and Blackstone (NYSE:BX), Apollo Global (NYSE:APO), Ares Management (NYSE:ARES), and SunTrust (NYSE:STI) are expected to be among at least five bidders for the unit, reports the FT. Offers for the $16B unit could come as soon as Thursday when GE opens the first round of bidding.
    • One could make a case for Blackstone being the frontrunner, given it's already acquired billions of GE Capital's real estate assets, but some analysts say Ares is a better fit as it already operates a similar business - lending mostly to mid-sized buyout firms.
  • Mon, Apr. 27, 2:51 PM
    • Working through its European logistics arm Logicor, Blackstone (NYSE:BX) pays nearly £400M for 16 U.K. industrial warehouses - all the rage in Europe as retailers shift to online delivery-focused business models, with next-day delivery a vital requirement.
    • In 2014, €24.9B flowed into European industrial properties, up from €19.3B a year earlier, according to Real Capital Analytics, and a report from Deutsche says the sector is set to be the best-performing in Europe over the next five years.
    • Blackstone formed Logicor in 2012 and last year the group acquired more than €2B in logistics properties. A similar Blackstone unit for the U.S. was IndCor - launched in 2010 and sold to Singapore's SWF in December for $8.1B.
    • Source: WSJ
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  • Tue, Apr. 21, 9:00 AM
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  • Mon, Apr. 20, 1:09 PM
    • "With the strong Q1, we think Blackstone (NYSE:BX) once again will likely have shown the best execution across each major facet of the business," say analysts Brian Bedell and David Unger, lifting their price target on the Buy-rated stock to $47 from $45. Strong fund raising, healthy capital deployment, solid portfolio performance, and record realizations - the company hit on all cylinders last quarter and there's reason to expect more to come as the year rolls on.
    • "We view Blackrock (NYSE:BLK) as likely to continue generating superior organic growth rates vs. large-cap peers for at least the next 1-2 years," says the team, boosting the price target on the Buy-rated stock to $410 from $400. On the downside, the duo notes a shift toward lower-fee passive products, along with a shift within iShares toward lower-fee Core-Series funds could dampen the company's leverage to its fast organic growth rate.
    • Source: Barron's
    • Previously: Blackstone +4.6% as earnings surge (April 16)
    • Previously: BlackRock edges lower after mixed results (April 16)
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  • Mon, Apr. 20, 12:16 PM
  • Thu, Apr. 16, 7:32 AM
    • Q1 economic net income of $1.6B or $1.37 per unit gained 99% from a year ago. Distributable earnings of $1.2B or $1.05 per unit on $13.5B in realizations up 159% from $479M on $9.3B of distributions.
    • Total AUM eclipses $300B, up 14% Y/Y to $310.5B - this as $62.5B in capital was returned to investors. Gross inflows of $30.4B during quarter, $77.2B over last twelve months.
    • Firmwide fee revenues of $614.9M up 4% Y/Y. Performance fees of $1.67B up 115%. Investment income of $189.6M up 63%. Expenses of $876.9M up 28%.
    • Private equity ENI of $829M up 160% Y/Y, with performance fees of $949.8M up 231%. Appreciation of 6.4% for quarter, 21.1% LTM.
    • Real Estate ENI of $638.3M up 99% Y/Y, with $9.1B in realizations during quarter generating realized performance fees of $812M, up more than four times from a year ago.
    • Conference call at 11 ET
    • Previously: Blackstone beats by $0.33, beats on revenue (April 16)
    • BX +4.6% premarket
  • Thu, Apr. 16, 7:24 AM
    • Blackstone (NYSE:BX) declares $0.89/share quarterly distribution, 14.1% increase from prior dividend of $0.78.
    • Forward yield 8.68%
    • Payable May 4; for shareholders of record April 27; ex-div April 23.
  • Thu, Apr. 16, 7:04 AM
    • Blackstone (NYSE:BX): Q1 EPS of $1.37 beats by $0.33.
    • Revenue of $2.51B (+66.2% Y/Y) beats by $470M.
    • Press Release
  • Wed, Apr. 15, 5:30 PM
  • Mon, Apr. 13, 3:23 PM
    • "Hope you guys like this hotel, because we own it," is a little joke Blackstone (NYSE:BX) executives like to tell at investor gatherings worldwide.
    • Better-known for leveraged buyouts, Blackstone is the largest private-sector landlord in the U.S. - from skyscrapers, to malls, to nearly 50K rental homes ... and all this before Friday's deal to buy billions in real estate from General Electric. Of the $272B in assets at Blackstone, $81B is real estate-related, and over the last two years, 50% of the company's $7.8B in core profits have come from its property buys.
    • Behind all that there's only about 200 real estate professionals at Blackstone out of total employees of 2.3K. Leading them is Jonathan Gray who seems certain to replace Tony James as Blackstone's president at some point. As for Chairman and CEO Steven Schwarzman, he's given no indication he might soon step aside.
    • Source: Dealbook
    • Previously: Excel Trust sold to Blackstone; up 14.7% premarket (April 10)
    • Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
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Company Description
Blackstone Group LP is an alternative asset manager. It also provides financial advisory services, including corporate and mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement services.
Sector: Financial
Country: United States