Yesterday, 3:21 PM
- Brookfield's (NYSE:BAM) offer for the U.K. holiday-resort operator of £2.4B topped other bids, reports Bloomberg, and a deal with Blackstone (NYSE:BX) could be struck as soon as next week.
- Should the talks not yield a sale, Blackstone might go ahead with an IPO for the company.
- Center Parcs operates five resorts in the U.K., and reported revenue of £314.6M in the year ended April 2014.
- Previously: Blackstone's Center Parcs on the block (March 16)
- Previously: Blackstone launches dual-track sale process for Center Parcs (Jan. 27)
Tue, May 26, 8:54 AM
- “The private wealth side is such an under-tapped segment, and way under-invested in alternatives,” says Brendan Boyle, Blackstone's (NYSE:BX) senior managing director of private wealth management. For Blackstone, $43B of its total $310B in AUM comes from private wealth - more than triple the amount of five years ago.
- Across all of P-E, family offices account for about 6% of capital, up from about 4% in 2010.
- By aiming at these new pools of wealth, private equity is looking to reduce its reliance on state and corporate pension plans, but it's not all about gathering assets - family offices often bring loads of expertise which can be put to use in the buyout game.
- "They didn't really pitch products," says a money manager for the founders of a consumer-products company, who was recently flown into NYC by KKR. "They brought out David Patraeus."
- Source: Bloomberg
Fri, May 22, 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
- ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG
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| 2 Comments
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
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
Tue, Apr. 21, 9:00 AM
- Morgan Stanley is selling the assets held by Investa Property Group - Australia's 3rd-largest owner of downtown offices - and Blackstone (NYSE:BX) and Brookfield Asset Management (NYSE:BAM) are among those vying for the A$9B portfolio, according to The Globe and Mail.
- Previously: Morgan Stanley exiting Aussie property business (Feb. 18)
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)
Mon, Apr. 20, 12:16 PM
- Among those GE is reportedly in talks to sell the $74B operation to is Wells Fargo (WFC +0.6%), according to a headline from the WSJ. Wells, along with Blackstone (NYSE:BX) was the buyer of nearly $30B of real estate-related assets from GE ten days ago.
- Previously: GE sets plan to exit almost all of GE Capital; launches $50B buyback (April 10)
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
Thu, Apr. 16, 7:04 AM
BX vs. ETF Alternatives
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.
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