Tue, Aug 4, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Blackstone reports 2009 revenues of $1.8bn, Schwarzman says 'the worst is behind us' and there are many opportunities to deploy 'our substantial available capital'

Thursday, February 25, 2010
Opalesque Industry Updates - The Blackstone Group L.P. reported its 2009 results. For the full year 2009, Total Segment Revenues, on an ENI basis, were $1.8 billion, up significantly from a negative $(442.1) million for the full year 2008. For the fourth quarter of 2009, Total Segment Revenues were $738.4 million, up $1.4 billion from a negative $(621.4) million for the fourth quarter of 2008. The year-over-year change was driven by net appreciation of the underlying portfolio investments in the Private Equity and Credit and Marketable Alternatives segments, as well as stabilization in the fair value of the Real Estate segment’s underlying portfolio investments. These increases were partially offset by decreased fees earned in the Financial Advisory segment.

Total Segment Expenses were $1.1 billion for the full year 2009, an increase from $887.9 million for the full year 2008. Compensation and Benefits was $768.8 million for the full year 2009, an increase from $568.7 million for the full year 2008, reflecting a reduction in the reversals of performance fee related compensation accruals. Total Segment Expenses for the quarter totaled $372.6 million, up from $205.7 million for the fourth quarter of 2008. The largest component of segment expenses, Total Segment Compensation and Benefits, was $290.1 million for the fourth quarter of 2009, up from $107.6 million for the fourth quarter of 2008. The change from 2008 was driven by an increase in performance fee related compensation in the Private Equity, Credit and Marketable Alternatives and Real Estate segments. Base compensation was $216.4 million for the fourth quarter of 2009, up from $189.8 million for the fourth quarter of 2008.

GAAP results for the year ended December 31, 2009 included Revenues of $1.8 billion, compared to a negative $(349.4) million for the full year 2008, and Net Loss Attributable to The Blackstone Group L.P. of $(715.3) million, compared to a net loss of $(1.2) billion for the full year 2008. GAAP results for the fourth quarter of 2009 included Revenues of $725.3 million, up from a negative $(611.3) million for the fourth quarter of 2008. Net Loss Attributable to The Blackstone Group L.P. was $(143.3) million, compared to a net loss of $(415.2) million for the fourth quarter of 2008.

World equity and debt markets continued to improve in the second half of 2009 in anticipation of sustained economic recovery. The United States and several other developed economies returned to growth, and emerging economies grew more sharply. Despite tangible evidence of economic recovery, U.S. unemployment remains high and consumer credit trends remain weak.

Commercial real estate trends in the U.S. and Europe showed continued signs of stabilization. For office properties, vacancy rates appear to have stabilized, with some markets showing signs of decreasing vacancies. In hospitality, demand appears to have bottomed as well, although pricing remains pressured. RevPAR (Revenue Per Available Room), an important hospitality industry metric, continued to decline, but that decline clearly moderated in the fourth quarter of 2009.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “It has been about 17 months since the collapse of Lehman Brothers and the full onset of the global financial crisis. Equity and debt markets globally have continued to heal from their lows about a year ago although there has been some recent turbulence in January and February, most companies have reduced expenses and inventory levels, the cost of borrowing has declined and the availability of credit is increasing selectively. We believe the worst is behind us, although a recovery in Western economies could be gradual and uneven. We see many opportunities to deploy our substantial available capital across each of our asset management businesses with attractive potential risk-return for our fund investors.”

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner