NEW YORK (AP) — Stock markets near record levels are giving investment manager The Blackstone Group LP a lift.

The firm, headed by Stephen Schwarzman, has private equity, real estate and other divisions. On Thursday Blackstone reported a profit of $106.4 million, or 19 cents per share, in the last three months of 2012. That compares with a loss of $22.7 million, or 5 cents per share, the year before.

An adjusted profit measure favored by the private equity industry — economic net income — which strips out charges tied to employee stock grants from Blackstone's 2007 initial public offering of stock, rose 43 percent to $670 million, or 59 cents per share.

Shares rose 75 cents, or 4.3 percent, in morning trading to $18.19. The stock has risen 15 percent over the past 12 months.

Blackstone's private equity business raises money from large investors such as pension funds and uses that money and debt financing to buy companies — often distressed public companies. It aims to profit by selling them later to investors in an IPO, or to other companies.

The rising stock market makes the companies' private equity holdings more valuable and makes it easier to profitably sell companies to the public market. Revenue in Blackstone's private equity division rose 67 percent to $318.7 million.

A healthier real estate market also boosted Blackstone's quarter. Revenue in that division rose 3 percent to $403.9 million.

The firm makes money from fees it charges investors and from its share of profits made on investments.

Revenue from fees for managing investments and from its share of the gains rose 33 percent to total revenue of $1.23 billion in the fourth quarter.

The value of the assets managed by Blackstone rose 26 percent to $210 billion, which it said was a record. Big investors put more money into the firm's funds and investment gains improved.

About News.net

Publishing Services International Limited (PSIL) is the publisher and operator of a worldwide network of online news sites dedicated to delivering fair, accurate and relevant reporting from a variety of the world’s most trusted sources – from the biggest cities to the smallest towns.

We deliver positive and powerful messages to our readers, providing up‑to‑the‑second news that matters to the individual.

Our promise is to serve communities and individuals worldwide, delivering information that hasn’t always been available to them. We will give them back a voice – a voice that’s empowering because it is theirs – and provide a platform to communicate between themselves and the world.

We believe people are not just generic demographics; they are individuals with their own preferences and curiosities. We are about understanding these individuals, listening to them, and serving them.

We are the new pioneering spirit of news – we’re not talking to everyone, we’re talking with every one.

If you want your news, your voice, your way, on your time – we’ve got news for you.

 

FAQs

Email

If you have any questions or concerns please email us on support@news.net

Phone

  • Australia, Toll Free 1-800-983-421
  • Hong Kong, Toll Free 800-906-187
  • Singapore, Toll Free 800-852-3871
  • USA/Canada, Toll Free 1-800-830-4132

Advertise With Us

Interested in being awesome?
Contact us by email or phone.

Cancel