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
Thu, Jul. 21, 7:42 AM
- Q2 economic net income per unit of $0.44 vs. $0.43 one year ago. Distributable earnings of $503.5M or $0.42 per unit vs. $1B and $0.88 one year ago.
- Total AUM of $356B up 7% Y/Y; fee-earning AUM of $266B up 11%.
- Private Equity carrying value up 2.5% for the quarter. Put $1.6B to work during quarter and $3.6B YTD. Raised $7.1B during quarter. AUM up 8% Y/Y to $99.7B. Fee-earning AUM up 40% to $69.5B.
- Real Estate opportunistic funds' carrying value up 2.2%. Put $1.6B to work; raised $4.1B. Total AUM of $103.2B up 13% Y/Y; fee-earnings AUM up 6% to $66.7B.
- Hedge Fund Solutions composite gross return of 1.4%. Gross inflows of $2B for quarter and $5.2B YTD. Total AUM up 1% Y/Y to $68.6B; fee-earning AUM down 1% to $65B.
- Credit showed gross returns of 9.7% for the quarter (credit the energy rebound). Total AUM of $84.7B up 4% Y/Y; fee-earning AUM of $64.8B up 5%.
- CC at 11 ET
- Previously: Blackstone beats by $0.05, beats on revenue (July 21)
- BX +2.55% premarket in very thin action.
Thu, Jul. 21, 7:42 AM
Thu, Jul. 21, 7:01 AM
Wed, Jul. 20, 5:30 PM| Wed, Jul. 20, 5:30 PM | 13 Comments
Mon, Jul. 18, 8:23 AM
- Invitation Homes would go public as a REIT. It's the largest single-family landlord in the country, having picked up about 50K homes in the aftermath of the housing crash.
- Other players which came public well before Invitaiton include American Homes 4 Rent (NYSE:AMH), Colony Starwood (NYSE:SFR), and Silver Bay Realty (NYSE:SBY).
- There's also Altisource Residential (NYSE:RESI), which is not yet commonly thought of as in the single-family rental business, but is expected to own 4K properties by the end of Q3, 10K by year-end, and maybe 20K-25K by the end of 2017.
Tue, Jul. 12, 5:01 AM
- China's Vanke (OTC:CVKEY) and its partners are in talks to pay about 12.9B yuan ($1.9B) for commercial property from Blackstone (NYSE:BX), a deal that first drew attention last month after a Vanke director abstained from a key vote citing a conflict of interest due to the transaction.
- Vanke didn't identify the partners, but said securities wouldn't be issued to fund the transaction.
Fri, Jul. 8, 1:46 PM
- An auction of Verizon's (VZ +0.9%) data centers has moved to a second round, CTFN reports.
- The carrier had launched a sales effort at the beginning of the year with hopes to drawing $2.5B or more.
- Now rumored suitors include Providence Equity, Carlyle Group (NASDAQ:CG) and Blackstone Group (NYSE:BX) among those who might pay $2.5B-$3B, a price that weeds out a lot of strategic buyers.
- The move to sell data centers -- news that was shot down in the fall by CFO Fran Shammo -- would be a reversal of its actions five years ago, when it paid $1.4B for Terremark in a move into hosting and co-location.
Tue, Jun. 28, 5:42 PM
- The Enterprise Products Partners (NYSE:EPD) natural gas processing plant in Pascagoula, Miss., remains closed after today's fire, which is now under control but forced the closure of the 225-mile Destin gas pipeline system that can carry 1.2B cf/day from offshore fields to Pascagoula.
- Destin, majority-owned by BP with Enbridge (NYSE:ENB) a minority partner, declares force majeure as a result of the fire.
- Murphy Oil (NYSE:MUR) says it shut its Thunder Hawk platform, which also is connected to the Destin system and has the capacity to handle 60K bbl/day of oil and 70M cf/day of natural gas.
- LLOG, partially owned by the Blackstone Group (NYSE:BX), says it is shutting its Delta House floating production system, which has 100K bbl/day of oil and 240m cf/day of gas capacity.
- Williams Partners (NYSE:WPZ) says the Gulfstream Pipeline, a joint venture with Spectra Energy Partners (NYSE:SEP), appears to be unaffected.
- BP, whose Thunder Horse and Na Kika platforms tie into the Destin pipeline and together produce nearly 400K bbl/day of oil and more than 700M cf/day of natural gas, has not commented; the status of other Gulf producers which operate facilities that connect to Destin, including Stone Energy (NYSE:SGY) and Freeport McMoRan (NYSE:FCX), is not known.
Fri, Jun. 24, 3:13 PM
- With London's status as a financial hub, Brexit raises questions over just how firms - including U.S. asset managers - will do business on the Continent from the City (such as selling financial products) under the new regime.
- The good news, says Citi's William Katz, is the poor performance of most of the sector means investors may have already priced in falling NAVs and AUM.
- The worst of the fallout, says Katz, will hit those managers with the largest presence in the U.K., including Invesco (IVZ -13%) and Affiliated Mangers Group (AMG -10.8%). Again, the recent struggles for both these stocks means the blow could be softer than feared.
- While the whole affair could make for good buying opportunities for private-equity funds, that doesn't mean the stock prices of players like Carlyle Group (CG -2.8%), Blackstone (BX -5%), KKR (KKR -6%), Fortress (FIG -3.9%), and Oaktree (OAK -1.7%) couldn't come under a great deal of pressure in the short term.
Mon, Jun. 13, 12:30 PM| Mon, Jun. 13, 12:30 PM | 1 Comment
Mon, Jun. 13, 7:36 AM
- The company's first "core" private-equity fund will invest in individual companies for more than twice the typical three-to-five year holding period, reports Bloomberg. Fund targets will be larger and more established (and supposedly less risky) than typical buyout targets.
- Blackstone (NYSE:BX) expects to put that $5B to work in four or five deals, hopefully returning all the initial investment within eight years, and exiting investments entirely in 10-12 years. The incentive fee will be just 10% of deal profits - half the typical percentage.
- P-E industry executives like KKR's Henry Kravis have often said they envy Warren Buffett's freedom to hold or exit investments at will, rather than have to return and re-raise capital every few years.
Thu, Jun. 9, 7:35 AM
- Capitalizing on strong lodging demand and little new supply in Oahu, Blackstone (NYSE:BX) agrees to the sale of the Hyatt Regency Waikiki Beach Resort and Spa to Mirae Asset Global Investments for $780M. That's a profit of more than $200M in three years, according to Bloomberg, which says Blackstone purchased for $450M and then put $100M into renovations.
- South Korea-based Mirae has made a series of Hawaiian purchases recently, but this deal will be the largest single-property hotel deal ever in that state.
Wed, Jun. 8, 4:45 AM
- Blackstone (NYSE:BX) is in advanced discussions to acquire Acrisure, in a deal that could value the U.S. insurance brokerage at well over $2B, including debt.
- According to Reuters, Blackstone has so far prevailed in the auction for Acrisure, though negotiations with the company's owner, buyout firm Genstar Capital, are still continuing.
Thu, Jun. 2, 5:09 PM
- CST Brands (NYSE:CST) surged more than 18% higher in today's trade following a Reuters report that Canada's Alimentation Couche-Tard (OTCPK:ANCUF) and Japan's Seven & I Holdings (OTCPK:SVNDY), owner of the 7-Eleven chain, have submitted indicative offers to acquire the U.S. convenience store retailer.
- The two groups are competing against several other bidders for CST, including a consortium of P-E firms Blackstone (NYSE:BX) and Apollo Global Management (NYSE:APO), according to the report.
- CST reportedly will seek at least one more round of offers before deciding if will sell itself.
Thu, Jun. 2, 2:33 PM
- Concordia Healthcare (CXRX -14.2%) was up big earlier today on a rumor Blackstone (NYSE:BX) was near a deal to purchase. Now the WSJ is reporting both Blackstone and The Carlyle Group (NASDAQ:CG) did not submit final bids which were due on Tuesday, leaving Apollo Global (NYSE:APO) as potentially the last P-E suitor standing.
Thu, May 26, 8:51 AM
- The $2.9T industry could lose about 25% of its assets in the next year thanks to continuing underperformance, says Blackstone (NYSE:BX) President Tony James.
- For its part, Blackstone is the world's largest allocator to hedge funds, provides startup money to managers, and takes equity stakes in hedge funds. While performance is a concern within Blackstone, James says results in its hedge fund businesses are topping the industry average.
- Hedge fund underperformance is likely the result of the sustained bull market, says James, as many hedged funds are just that ... hedged.
- As for '2 and 20,' it's "hard to justify these days," he says.
- Interested parties include: OZM, CG, FIG
Blackstone Group LP is a global manager of private capital and provides financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate funds, funds of hedge funds, credit-oriented funds, collateralized loan... More
Industry: Asset Management
Country: United States
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