Wed, Jul. 15, 5:30 PM
Tue, Jul. 14, 4:49 AM
- The nation's largest banks report their second-quarter results this week, beginning with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC) today.
- Bank of America (NYSE:BAC) and Goldman Sachs (NYSE:GS) are due to report later in the week, along with private equity firm Blackstone (NYSE:BX) and asset manager BlackRock (NYSE:BLK).
- Despite the stable economy in the U.S., analysts are expecting relatively ho-hum results.
Mon, Jul. 13, 7:37 AM
- Shifting from rapid expansion - Blackstone's (NYSE:BX) Invitation Homes scooped up more than $9B in U.S. housing since the property bust - to fine-tuning its holdings, the company has agreed to sell about 1.3K Atlanta homes which don't fit its strategy.
- “It’s that stage in our lives where we’re now in a position of looking at dispositions as an active part of portfolio balance,” says Invitation CEO John Bartling, adding to expect the company to sell 5% of the portfolio each year. Bartling declined to comment on any IPO plans, though the sale is the sort of thing a company might do to clean things up ahead of an offering.
- Most of the Atlanta homes being sold are worth less than the average Blackstone home - for landlords, that's code for higher turnover, higher maintenance, and a tougher time collecting rent.
- Invitation continues to buy homes, and will own about 48K of them after the sale.
- Source: Reuters
Mon, Jul. 6, 8:19 AM
- Linn Energy (LINE, LNCO) says private capital investor Quantum Energy Partners agrees to initially commit up to $1B to fund selected future oil and natural gas acquisitions and the development of acquired assets.
- According to the terms, Linn will have the ability to participate in all acquisition opportunities with a direct working interest ranging from 15% to 50%.
- Also, Blackstone's (NYSE:BX) GSO Capital Partners agrees to commit up to $500M to fund drilling programs on locations provided by Linn.
- According to these terms, GSO will fund 100% of the costs associated with the new wells drilled and will receive an 85% working interest until it achieves a 15% IRR on annual groupings of wells.
Mon, Jul. 6, 7:56 AM
- Zhang Liping comes over from Credit Suisse, where he was co-CEO of Greater China. At Blackstone (NYSE:BX) he will become a senior managing director and chairman of Greater China. He's filling a role which has been vacant since Antony Leung exited in 2013 to join a Hong Kong real estate company.
- Zhang has led a number of IPOs by major Chinese state-owned companies, and China Investment Corp. (the country's SWF fund) is a major Blackstone investor.
Tue, Jun. 30, 7:46 AM
Wed, Jun. 24, 3:05 PM
- The listing of Fidere Patrimonio, a REIT owned by Blackstone (NYSE:BX) that groups units of rent-controlled housing in Madrid and Barcelona, will list its shares on Spain's alternative stock market MAB next week.
- Blackstone's unit scooped up units from city and regional governments looking to raise cash during the economic crisis. The P-E firm's move to sell comes just days after the Madrid city council changed hands, with the leftist government vowing to reverse the post-crisis wave of housing evictions.
- Fidere owns 2,688 properties with a value of €212M.
- Source: Reuters
Mon, Jun. 22, 3:21 PM
- Blackstone (BX -0.5%) has purchased the retail mall and parking garage at Sky View Parc, a mixed-use complex in Flushing, Queens, reports Crain's. It's the company's first acquisition in fast-growing Flushing.
- The mall totals about 560K square feet and is fully occupied by major retailers.
- This is another step in the comeback of the once-troubled project, and shows growing interest by big-league outfits in the periphery of NYC.
Tue, Jun. 16, 2:57 PM
- An earlier report from Reuters has Blackstone (NYSE:BX) and The Carlyle Group (NASDAQ:CG) making a joint bid to take out NCR for more than $10B, and NCR is up 10.7% on the news. Also mulling a bid are Apollo Global (NYSE:APO) and Thoma Bravo, according to Reuters.
- Previously: NCR +14.8%; Blackstone, Carlyle reportedly making joint bid (June 16)
Mon, Jun. 8, 12:15 PM
- WIth Brazilians more interested in parking money on Brickell Avenue (Miami) than at home, it's creating opportunities, says Blackstone's (NYSE:BX) David Roth, a senior managing director overseeing Latin America. Having made good money in U.S. real estate over the past few years, his company is turning to another beaten-down market, opening up a Sao Paulo office as it looks to put money to work for a new $15B global real estate fund.
- "Brazil is a complicated market, more volatile than investing in the U.S. and Europe,” says Roth. “It’s definitely an expansion market for us, one we’d like to become more involved in.”
- Sao Paulo's vacancy rate for high-end commercial real estate of 24% in Q1 rose from roughly 16% in 2013, according to Cushman & Wakefield. In Rio, it's 18% vs. 6%. Asking rents have about halved over that time frame in both cities.
- Source: Bloomberg
Mon, Jun. 8, 8:04 AM
- A list of external managers used by the $305B retirement system includes giants like KKR, Carlyle Group (NASDAQ:CG), and Blackstone (NYSE:BX).
- The industry bellwether today will make public plans to reduce to 100 from 212, the direct relationships it has with private-equity, real estate, and other external funds, reports the WSJ.
- The move - coming under the leadership of CIO Ted Eliopoulos who took the reins last year - won't necessarily change Calpers' investment strategy nor the amount of assets managed internally vs. externally. The 100 left will just get a bigger pool of funds to manage, though they likely will be pushed to lower fees.
- As recently as 2007, Calpers had about 300 external managers.
Tue, Jun. 2, 7:41 AM
- As rumored last week, Brookfield Asset Management (NYSE:BAM) agrees to buy Center Parcs from Blackstone (NYSE:BX). The deal is expected to close by the end of July.
- The purchase price wasn't disclosed, but sources last week said the asset would go for about £2.4B.
- Among other resort properties in the Brookfield portfolio are Atlantis Paradise Resort in the Bahamas and the Hard Rock Hotel and Casino in Las Vegas.
- Previously: Bloomberg: Brookfield Asset nears purchase of Blackstone's Center Parcs (May 29)
Fri, May 29, 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
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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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