The Blackstone Group Corp. NYSE: BX fundusz private equity

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NEW YORK (Reuters) - Blackstone Group (NYSE:BX) LP is to invest $150 million in London-based Astaris Capital Management which will be split between the firm's existing hedge fund and a new pool of capital with a drawdown structure, two sources said.

Astaris specializes in event-driven credit and equity investments in Europe and was founded in 2020 by Martin Beck, who previously worked at private investment firm Centerbridge Partners and at JPMorgan (NYSE:JPM).

He was also a founding partner at hedge fund Sothic Capital, which invested in European distressed assets.

Astaris, which focuses on event-driven investments created by corporate reorganizations, bankruptcies, and mergers and acquisitions, has more than $300 million in assets and has delivered an average 17% gain a year since its inception, according to data from EuroHedge. The firm's investment approach does not rely on any specific part of the economic cycle.

Blackstone will fund both the existing hedge fund and the new fund with $75 million each, signaling its strong commitment to Astaris, according to the sources familiar with the investment but are not permitted to discuss it.

A Blackstone representative declined to comment and Astaris did not respond to a request for comment.

Blackstone, which invests $81 billion through its hedge fund unit Blackstone Alternative Asset Management, is making the investment with cash from its Strategic Alliance Fund IV, which has over $1 billion in assets, they said.

This Strategic Alliance Fund makes so-called seed investments in newish firms. Astaris is the first manager being seeded from Fund IV.

The 'seeding' comes as investors bet new investment managers can succeed in the hedge fund industry which which has delivered lackluster returns for years but is now finding favor amid increased market volatility due to concerns about high interest rates and growth.

Securing seed investments from Blackstone often helps new managers establish credentials that will smooth the way for other investors to make commitments. It also allows Blackstone to become an early investor with promising newcomers.

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NEW YORK (Reuters) - Blackstone (NYSE:BX) Inc said on Thursday its second-quarter distributable earnings slumped nearly 40%, owing to a sharp drop in asset sales mostly from its real estate and credit businesses.

Distributable earnings, which represent cash used to pay dividends to shareholders, fell to $1.2 billion from nearly $2 billion a year earlier. That resulted in distributable earnings of 93 cents, in line with average analyst estimate, as per Refinitiv.

Blackstone said its net profit from asset sales plunged 82% to $388.4 million from $2.2 billion in the year-ago period, as higher interest rates, sticky inflation, and economic uncertainty have continued to weigh on its merger-and-acquisition activity.

A major share of the reduced asset disposals came from Blackstone's real estate unit, where its net profit sank 94%, while that of its credit division dropped 46%.

Still, its private-equity business saw a 20% growth in performance fees, driven by secondary share sales of Blackstone's stake in London Stock Exchange Group (LON:LSEG) and Gates Industrial (NYSE:GTES) Corporation.

Corporate private-equity funds appreciated by 3.5% during the quarter, compared with 8.3% growth in the benchmark S&P 500 index, Blackstone said. Its private credit funds gained 3.3% while hedge fund assets grew 1.9%. Opportunistic real estate funds were flat.

Under generally accepted accounting principles (GAAP), Blackstone's net income came in at $601.3 million, versus a net loss of $29.4 million due to a rebound in revenue from performance fees and principal investments.

Blackstone's total assets under management hit the $1 trillion milestone for the first time, and were in line with its prior outlook, underpinned by strong fundraising of $30.1 billion in the quarter. It also had about $195 billion of unspent capital and declared a quarterly dividend of 79 cents per share.

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(Reuters) - U.S.-based private equity fund Blackstone (NYSE:BX) will submit a bid next week to acquire a 33.47% stake in Indian drugmaker ***** (NS:*****), the Economic Times reported on Friday, citing people in the know.

The stake sale will formally start the exit of the Hamied family who had founded ***** in 1935, the report added.

***** and Blackstone did not immediately respond to Reuters' request for comment.

The move will also trigger an open offer for an additional 26% of *****, upon full subscription of which Blackstone would end up owning as much as 59.4% of *****'s stake, according to the report.

Last Month, Moneycontrol had reported that top shareholders of the pharma major, which includes Blackstone are in talks to sell a part of their stake to private equity players.

Shares of the company have risen over 14% since the Moneycontrol report, and hit record high on Friday.

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Dutch solar firm Esdec Solar Group, supported by Blackstone (NYSE:BX) is contemplating a US initial public offering (IPO) that could peg its valuation at over $5 billion. This move comes in light of the growing appetite of investors for environmentally friendly assets. Esdec's decision aligns with an emerging trend among European firms that are seeking to list in the US.

The Netherlands-headquartered company has roped in JPMorgan Chase & Co. (NYSE:JPM) and Morgan Stanley (NYSE:MS) as lead banks and is on track to induct more banks into its IPO syndicate. Esdec, which originated in 2004 and garners support from European private equity investor Rivean Capital, specializes in the development and distribution of rooftop solar racking and mounting systems.

While the specifics regarding the size and timing of the listing remain undecided, this pursuit signifies the revitalization of the US IPO market, which experienced a lull for the past 18 months. The rejuvenation can be attributed to recent successful listings like that of the restaurant chain Cava Group (CAVA).

In addition to Esdec, other prominent brands, such as the renowned shoe manufacturer Birkenstock, are reportedly gearing up for US IPOs, with the latter potentially debuting as early as September.

Holenderska firma solarna Esdec Solar Group, wspierana przez Blackstone (NYSE:BX) rozważa pierwszą ofertę publiczną (IPO) w USA, która mogłaby ustalić jej wycenę na ponad 5 mld USD. Posunięcie to wynika z rosnącego apetytu inwestorów na aktywa przyjazne dla środowiska. Decyzja Esdec wpisuje się w pojawiający się trend wśród europejskich firm, które chcą wejść na giełdę w USA.

Firma z siedzibą w Holandii ma powiązania z JPMorgan Chase & Co. (NYSE:.JPM) i Morgan Stanley (NYSE:MS) jako banki wiodące i jest na dobrej drodze do wprowadzenia większej liczby banków do swojego syndykatu IPO. Firma Esdec, która powstała w 2004 roku i cieszy się poparciem europejskiego inwestora private equity Rivean Capital, specjalizuje się w rozwoju i dystrybucji dachowych systemów regałów słonecznych i montażu.

Podczas gdy szczegóły dotyczące wielkości i terminu wejścia na giełdę pozostają nierozstrzygnięte, dążenie to oznacza ożywienie amerykańskiego rynku IPO, który doświadczył zastoju przez ostatnie 18 miesięcy. Odmłodzenie można przypisać ostatnim udanym ofertom, takim jak sieć restauracji Cava Group (CAVA).

Oprócz Esdec, inne znane marki, takie jak renomowany producent obuwia Birkenstock, podobno przygotowują się do amerykańskich IPO, a ten ostatni potencjalnie zadebiutuje już we wrześniu.

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(Reuters) - Akcje Blackstone (NYSE:BX) i Airbnb wzrosły w przedłużonym handlu w piątek po tym, jak indeksy S&P Dow Jones poinformowały, że obie firmy dołączą do Indeks S&P 500.

Blackstone wzrósł o 4,1%, podczas gdy Airbnb wzrósł o 5% po tym, jak indeksy S&P Dow Jones poinformowały, że firmy zastąpią Lincoln National Corp (NYSE:LNC) oraz Marki Newell Inc przed rozpoczęciem handlu 18 września.

Lincoln National spadł o 0,7%, a Newell Brands pozostał na ostatnim niezmienionym poziomie.

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Latest Release
Oct 19, 2023

EPS / Forecast
0.94 / 1.03

Revenue / Forecast
2.54B / 2.66B

NEW YORK (Reuters) - Blackstone (NYSE:BX) Inc, the world's largest private equity firm, said on Thursday that its third-quarter distributable earnings fell by a steeper-than-expected 12% year-on-year owing to a decline in asset sales from its real estate business.

Distributable earnings, which represents the cash available to pay dividends to shareholders, fell to $1.2 billion in the quarter, from $1.4 billion a year earlier. That translated to distributable earnings per share of 94 cents, which missed the average analyst estimate of $1.01, according to LSEG data.

Blackstone said its net profit from asset sales fell 36% to $259.4 million, weighed down by higher interest rates and geopolitical tensions that have restricted global mergers and acquisitions activity.

The slump in asset sales was concentrated in Blackstone's real estate division, where realized performance revenue plunged 88% to $17.4 million. Fee-related earnings, including earnings from lucrative management and advisory fees, fell 5% to $1.12 billion.

During the quarter, Blackstone became the first private equity firm to join the benchmark S&P 500 index. It has a market capitalization of $125 billion and its total assets management remains above the $1 trillion mark.

Blackstone said its private equity portfolio rose 2.4%, compared with a 3.65% decline in the S&P 500 over the same period.

Infrastructure funds gained 11% and private credit funds appreciated by 4.6%. Opportunistic real estate funds dropped 2%.

Under generally accepted accounting principles (GAAP), Blackstone's net income surged to $552 million in the quarter, from $2.3 million a year earlier, owing to performance fees and investment income.

Blackstone raised $25.3 billion of new capital during the quarter, spent $12.4 billion on new acquisitions and retained $200.6 billion of unspent capital.

It declared a dividend of 80 cents per share.

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Blackstone (NYSE:BX) shares tumbled more than 7% Thursday after the company missed third-quarter consensus earnings and revenue expectations.

The company reported Q3 EPS of $0.94, $0.09 worse than the analyst estimate of $1.03, while revenue for the quarter came in at $2.32 billion, below the consensus estimate of $2.66B.

Despite the miss, the company's CEO, Stephen Schwarzman, said the firm delivered a "resilient third quarter" despite challenging markets.

"Our investors continue to benefit from our strong sector selection — nearly all of our flagship strategies outperformed public benchmarks," he added. "Our exceptional long-term track record, unique breadth and the power of our brand allowed us to raise over $25 billion of capital, and we are well positioned with record dry powder of $200 billion to deploy in a dislocated environment."

Reacting to the report, analysts at CFRA downgraded BX to Hold from Buy, trimming the 12-month price target by $18 to $107 per share.

"We see BX facing a moderating outlook, with higher-for-longer rates impacting fee earnings, fundraising, and investment realizations," the analysts noted.

"Fund net inflows were only +$25B with the largest contributors in credit and insurance (+$10B) and real estate ($9B). AUM was $1.0T (+6%), fee earning AUM $735B (+4%), and perpetual capital $388B (+8%). Dry powder to invest available funds was $201B -- an opportunity when macro conditions improve," the analysts added.

At Deutsche Bank, analysts said they view the results as broadly below their expectations. However, while they "see the 3Q results as a bump in the road," the investment bank thinks "investors will focus heavily on the forward outlook for fundraising and deployment especially, as well as the sustainability of strong investment performance."

"We see the 3Q results and the risk of a slower 4Q backdrop as pressuring the stock today," the analysts added. "This said, we remain very positive on Blackstone's long-term position within the alternative management sector, including its strong fundraising & FRE growth profile relative to peers. We would view any weakness in the stock as a long-term buying opportunity."