What was Blackstone's financial performance in 2009?

In 2009, Blackstone reported a net loss attributable to The Blackstone Group L.P. of $715.3 million, a significant improvement from the $1.16 billion net loss in 2008. Total revenues increased to $1.8 billion from a negative $349.4 million in 2008, primarily due to a recovery in performance fees and investment income as market conditions improved.

How did Blackstone's different business segments perform in 2009?

The Private Equity segment saw improved fund performance with a net IRR of 9% in 2009, compared to -30% in 2008. The Real Estate segment also showed signs of stabilization, though net IRRs remained negative. The Credit and Marketable Alternatives segment experienced strong performance, with funds of hedge funds achieving a 16% net return. The Financial Advisory segment saw a slight revenue decrease but benefited from increased restructuring and M&A advisory activity.

What were the key strategic initiatives undertaken by Blackstone in 2009?

Key strategic initiatives included growing fee-earning assets, particularly by raising over $1.0 billion for real estate debt investment funds. The successful integration of GSO Capital Partners created a dominant credit investment platform. Blackstone also enhanced its international presence by opening an office in Shanghai and formalizing a partnership with the Pudong government to raise a Renminbi-denominated fund. The company also successfully issued $600 million in 10-year notes to support its growth strategy.

What is Blackstone's current Assets Under Management (AUM)?

As of December 31, 2009, Blackstone managed $98.2 billion in Assets Under Management (AUM), an increase of 4% from the previous year.

BX 10-K FY2009 Annual Report — Revenue, Net Income, EPS

Summary

Blackstone Inc.'s 2009 10-K filing details a challenging year marked by improved market conditions in the latter half, leading to a recovery in asset values and investor sentiment. Despite the global economic downturn impacting the firm's financial results, particularly the significant net loss attributable to The Blackstone Group L.P. in 2009, the company demonstrated resilience. Key initiatives undertaken in 2009 focused on strengthening its diversified business segments, including successful debt issuance and growth in fee-earning assets, particularly in real estate debt funds and the credit platform post-GSO acquisition. The firm navigated a complex regulatory and competitive landscape, highlighting its focus on operational improvements and strategic expansion, including a strengthened presence in Asia. Looking ahead, Blackstone emphasized its commitment to growth and value creation for its limited partners and unitholders. The report details the firm's robust business segments—Private Equity, Real Estate, Credit and Marketable Alternatives, and Financial Advisory—and outlines its strategic focus on enhancing its asset management capabilities and client relationships amidst evolving market dynamics. The filing also addresses significant risk factors, including market volatility and regulatory scrutiny, alongside the firm's liquidity position and capital allocation strategies.

Financial Highlights

26 data points

Beta

Revenue

$1.77B

Net Income

-$2.39B

-1.3% Net Margin

Total Assets

$9.41B

Cash & Equivalents

$952.10M

Free Cash Flow

$387.88M

Financial Statements

Beta

Revenue	$1.77B
Operating Expenses	$4.24B
Interest Expense	$13.38M
Net Income	-$2.39B

Key Highlights

1Blackstone managed $98.2 billion in Assets Under Management (AUM) as of December 31, 2009, demonstrating significant scale in the alternative asset management industry.
2The firm reported a net loss attributable to The Blackstone Group L.P. of $715.3 million for 2009, a notable improvement from a net loss of $1.16 billion in 2008, reflecting the challenging economic environment but also signs of recovery.
3Total Revenues increased significantly to $1.8 billion in 2009, primarily driven by a recovery in Performance Fees and Allocations and Investment Income, indicating a rebound from the difficult market conditions of 2008.
4The Credit and Marketable Alternatives segment saw substantial growth, with AUM reaching $53.0 billion, bolstered by the successful integration of GSO Capital Partners and strong performance in funds of hedge funds.
5Blackstone continued to strengthen its global advisory services, with significant assignments in Europe and Asia, demonstrating the diversification of its revenue streams beyond asset management.
6The company issued $600 million in 10-year notes in Q3 2009, reinforcing its financial flexibility and supporting its growth strategy.
7Fee-earning AUM grew by 6% to $96.1 billion in 2009, indicating an expansion of the fee-generating base despite market headwinds.

Blackstone Inc. Annual Report, Year Ended Dec 31, 2009

Summary

Financial Highlights

Key Highlights

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