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
Wed, Dec. 7, 3:55 AM
- Belgian chemicals group Solvay (OTCPK:SOLVY) has agreed to sell its Acetow unit, which makes material used in cigarette filters, to Blackstone (NYSE:BX) for €1B, including debt.
- "Acetow is a commodity business that is going through a decreasing market," said Pascal Juery, head of the division. "It didn't fit the group's strategy anymore."
Tue, Dec. 6, 7:29 AM
- KKR is buying Optiv Security from a group of private investors including a fund managed by Blackstone (NYSE:BX), which will maintain a minority interest.
- Terms weren't disclosed, but the deal price is thought to be nearly $2B.
- KKR is making its investment in Optiv from its 11th Americas Private Equity Investment fund.
Tue, Dec. 6, 2:19 AM
- Top executives from the largest U.S. banks and asset managers are set to begin speaking at Goldman Sachs' U.S. Financial Services Conference.
- Those appearing at the event include CEOs of JPMorgan (NYSE:JPM), BofA (NYSE:BAC), Carlyle Group (NASDAQ:CG), Blackstone (NYSE:BX) and American Express (NYSE:AXP).
- Wells Fargo's (NYSE:WFC) new CEO Tim Sloan, who took the top job in October after the bank's fake account scandal, will also take the podium.
Mon, Dec. 5, 12:40 PM
- The FRBNY's William Dudley isn't concerned about the post-election jump in rates at the long end of the curve, and says the Fed is about to start following suit at the short end.
- Even the dovish Charles Evans from the Chicago Fed admits inflation is getting closer to the central bank's target, and the labor market is close to full employment.
- The 10-year Treasury yield had moved as high as 2.45%, but has pulled back to 2.40%, still up 1.5 basis points on the session.
- On the regulatory front, Fed Governor Daniel Tarullo on Friday set himself up as the chief defender of the current bank regulatory regime, but whether his voice will be heard is a different story given the incoming administration, which looks to be staffed with those favoring a far lighter regulatory hand.
- Financial sector stocks today are about doubling the S&P 500's 0.5% advance.
- TBTF banks: Bank of America (BAC +2.3%), Citigroup (C +1.8%), JPMorgan (JPM +1.3%), Wells Fargo (WFC +0.9%), Goldman Sachs (GS +1.7%), Morgan Stanley (MS +0.4%)
- Regional lenders: U.S. Bancorp (USB +0.7%), PNC Financial (PNC +0.4%), KeyCorp (KEY -0.8%), Fifth Third (FITB +0.5%)
- Insurers: MetLife (MET +0.3%), Lincoln National (LNC), AIG (AIG +0.2%)
- Brokerage: Schwab (SCHW +0.9%), E*Trade (ETFC +0.9%)
- Custodial banks: State Street (STT +0.5%), Northern Trust (NTRS +1%)
- Private equity: Blackstone (BX +0.9%), KKR (KKR +1%)
- Asset Management: BlackRock (BLK +0.1%), Franklin Resources (BEN +0.5%), Affiliated Managers (AMG +1.8%)
Mon, Dec. 5, 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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