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The Blackstone Group L.P. (BX)

- NYSE
  • Yesterday, 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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  • Yesterday, 12:16 PM
    | 31 Comments
  • 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
    | 7 Comments
  • 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.
    | 7 Comments
  • 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
    | 8 Comments
  • 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)
    | 8 Comments
  • Mon, Apr. 13, 7:34 AM
    • Blackstone Mortgage Trust (NYSE:BXMT) is selling 17.5M shares of its class A common stock, with an underwriter greenshoe of up to another 2.625M shares.
    • The proceeds will be used to help fund its purchase of a commercial loan portfolio from GE Capital Real Estate.
    • Certain affiliates of Blackstone (NYSE:BX) may purchase $37.5M of the stock at the offering price - which would add to the more than 5% stake already owned by Blackstone affiliates. BXMT has also reserved up to an additional $20M for sale under a directed share program to employees of Blackstone and its affiliates.
    • BXMT was higher by 7.2% on Friday after announcing the transformational deal with GE.
    • Source: Press Release
    • Previously: Blackstone Mortgage Trust doubles size with GE purchase (April 10)
    | 1 Comment
  • Fri, Apr. 10, 8:15 AM
    • Excel Trust (NYSE:EXL) agrees to a sale to Blackstone Property Partners (NYSE:BX) for $15.85 per share in cash, or about $2B.
    • "With cap rates and REIT stock multiples approaching historic levels and we did not believe the market accurately reflected the value of the assets," says CEO Gary Sabin, and the board thus decided a sale to Blackstone was the best way to realize that value.
    • Source: Press Release
    • EXL +14.7% premarket to $15.87.
    • Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
    | 1 Comment
  • Fri, Apr. 10, 6:46 AM
    • GE decides the time is right to get out the banking business and plans to sell nearly all GE Capital assets over the next 24 months, excepting the financing verticals relating to the company's industrial businesses - GE Capital Aviation Services, Energy Financial Services, and Healthcare Equipment Finance.
    • As part of the plan and as leaked yesterday, GE agrees to the sale of nearly all of the assets of GE Capital Real Estate to Blackstone (NYSE:BX) and Wells Fargo (NYSE:WFC). GE also has LOIs from other buyers for another $4B in property. The total amount of the sales comes to about $26.5B.
    • Under the restructuring, GE expects more than 90% of its earnings will be generated by industrial businesses by 2018 - that's up from 58% last year.
    • For 2015, the company's industrial businesses remain on track to generate operating EPS of $1.10-$1.20.
    • GE has identified the potential to return $90B to shareholders in dividends, buybacks, and the Synchrony Financial (NYSE:SYF) separation through 2018, and has authorized a new buyback program of up to $50B. The company expects to reduce share count to 8B-8.5B by 2018 (it's currently 10B).
    • Shares +1.8% premarket.
    • Source: Press release
    | 71 Comments
  • Wed, Apr. 8, 7:53 AM
    • The talks are in early stages, reports Reuters, and would value First Eagle Investment Management at about $4B. Partnering with Blackstone (NYSE:BX) on the purchase is Corsair Capital.
    • It's unclear what size stake the two are negotiating for, but one owner TA Associates owns about 25% of First Eagle. The majority is held by the family of John Arnhold. Among its assets, the company has seven mutual funds with $75.2B in AUM .
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  • Wed, Apr. 1, 3:11 PM
    • Blackstone (BX +0.8%) is close to an agreement to purchase Almada Forum and Forum Montijo from a fund controlled by Commerzbank, reports Bloomberg.
    • The malls could be worth up to €100M each.
    • The P-E firm has said Portugal has an "attractive" real estate sector, and late last year bought an office portfolio from Novo Banco - the lender which emerged from the breakup of Banco Espirito Santo.
    • Blackstone just raised $14.5B in very quick fashion for its latest real estate fund, and needs to put the money to work (though it isn't clear if this purchase would be part of that fund).
    • Previously: Blackstone reportedly raises $14.5B for latest fund (March 30)
    | 1 Comment
  • Mon, Mar. 30, 6:15 PM
    • Blackstone Group (NYSE:BX) is down 1.8% in late trading as it's putting up $1.2B-plus to buy three hotels from a Paulson & Co. consortium, The Wall Street Journal is reporting.
    • The hotels -- the Ritz Carlton and J.W. Marriott in Orlando, Fla., and the J.W. Marriott in Scottsdale, Ariz. -- aren't small properties, with more than 2,500 rooms and 472K square feet of meeting space in total.
    • The sales consortium includes Paulson, Winthrop Realty Trust (NYSE:FUR) and Capital Trust (now the Blackstone Mortgage Trust, BXMT).
    • It's the dissolution of the CNL Hotels & Resorts portfolio that the group had picked up via foreclosure and distressed sales, and could mark a jump-start to transactions in the group-travel segment.
    | 1 Comment
  • Mon, Mar. 30, 1:09 PM
    • Private equity has peaked? Maybe not just yet. Only four months after beginning fundraising, Blackstone (BX +1.1%) has closed the institutional portion of its latest real estate fund after securing $14.5B in commitments, reports the WSJ. The company plans to raise another $1.3B from retail investors, and expects to start making putting money to work within the next month.
    • The fund's name is Blackstone Real Estate Partners VIII.
    • Previously: Kessler: Glory days of P-E are over (March 30)
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  • Mon, Mar. 30, 8:09 AM
    • David Swenson - the investment manager of the Yale endowment - ushered in the private-equity era nearly three decades ago with his success in allocating part of the portfolio to "alternative" assets, writes Andy Kessler. The so-called Swenson model has been widely copied since, and last year 765 P-E funds raised $266B, up 11% from 2013.
    • Private-equity, however, has peaked, argues Kessler, noting a number of reasons, among them the ending of the three-decade-plus decline in interest rates, a slowdown in bank lending for the leveraged deals upon which P-E runs, and the threat of tax reform in which interest rate deductions for debt could be targeted.
    • Most importantly though, says Kessler, P-E is an economic growth killer. Buying out a drugstore chain and loading it with debt isn't investing in the productivity of the economy. Instead, it does just the opposite - generating wealth for the endowments and pension funds invested, but destroying it for the economy.
    • Kessler throws in one more reason P-E is done: The industry is fresh out of big targets. The bust of Energy Future Future holdings means utilities are out, and what's left in food following the Kraft purchase? Tech? Forget it, as the money required to service debt squeezes out what's needed for R&D.
    • Among those reading this morning: BX, KKR, CG, APO, FIG.
    • ETFs: PSP, PEX
    | 9 Comments
  • Thu, Mar. 26, 11:37 AM
    • Private-equity buyouts of $17.14B YTD are at their lowest level since 2012 as banks - with regulators looking over their shoulders - cut back on the amount of debt they'll extend for takeovers. Leveraged loan volume this year of $26.5B is 82% less than the same time frame in 2014, and the lowest since 2009.
    • Fewer and smaller deals, along with less leverage means less risk, but also means lower returns for buyout firms. It also means lower prices for sellers.
    • “The limitation on leverage has taken away some buying power and in some cases, created a gap between sellers’ expectations and the price that private-equity firms can justify paying,” says Carlyle Group's (CG -1%) Pete Clare.
    • According to S&P Capital IQ, 21% of P-E deals this year have been financed with leverage at or above levels deemed risky by regulators; that's down from 35% in Q4 and 60% in Q3.
    • Along with Carlyle, Blackstone (BX -0.9%) in its annual report warned leverage restrictions could hurt its business. Apollo Global (APO -1.7%) and KKR (KKR -1.2%) included similar language in both their 2013 and 2014 filings.
    • Source: WSJ
    • ETFs: PSP, PEX
    | 3 Comments
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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