Blackstone records first loss since IPO
The loss was Blackstone’s second since its June 2007 initial public offering, which capped a two-year boom in leveraged buyouts.
By Bloomberg |
NEW YORK: Blackstone Group, manager of the world���s largest buyout fund, said it had a third-quarter loss of $502.5 million as the financial crisis eroded the value of its private-equity investments.
The loss was 44 cents a share, compared with a profit of $234 million , or 21 cents, a year earlier, the New York-based company said on Wednesday in a statement. Blackstone, run by co-founder Stephen Schwarzman, was expected to break even, based on the average estimate of seven analysts in a Bloomberg survey.
The loss was Blackstone���s second since its June 2007 initial public offering, which capped a two-year boom in leveraged buyouts.
Private-equity transactions have dried up as risk averse banks and investors refuse to provide financing. The value of companies Blackstone owns has fallen along with global stock and bond markets. ���They���re not immune to what���s going on,������ said Daniel Fanons, an analyst with Jefferies & Co. in San Francisco, who rates the stock ���hold������ and doesn���t own it.
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The loss was 44 cents a share, compared with a profit of $234 million , or 21 cents, a year earlier, the New York-based company said on Wednesday in a statement. Blackstone, run by co-founder Stephen Schwarzman, was expected to break even, based on the average estimate of seven analysts in a Bloomberg survey.
The loss was Blackstone���s second since its June 2007 initial public offering, which capped a two-year boom in leveraged buyouts.
Private-equity transactions have dried up as risk averse banks and investors refuse to provide financing. The value of companies Blackstone owns has fallen along with global stock and bond markets. ���They���re not immune to what���s going on,������ said Daniel Fanons, an analyst with Jefferies & Co. in San Francisco, who rates the stock ���hold������ and doesn���t own it.
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