Summary
Blackstone Inc. (BX) reported its first quarter 2010 results, showing a significant turnaround from the prior year's losses, driven by a recovery in market conditions. Total revenues surged to $701.2 million from $44.9 million in Q1 2009, largely due to a substantial increase in Performance Fees and Allocations and positive Investment Income (Loss), reflecting improved fund performance across its private equity, real estate, and credit segments. The company managed to reduce its net loss attributable to Blackstone Group L.P. to $121.4 million from $231.6 million in the prior year's first quarter. Operationally, Assets Under Management (AUM) grew to $104.5 billion, up 13% year-over-year, indicating a rebound in investor confidence and asset growth. Fee-earning AUM also saw a healthy increase, growing 6% to $98.1 billion. The company's segment analysis reveals strong performance recovery in Private Equity and Real Estate, with significant positive investment income and performance fees. The Credit and Marketable Alternatives segment also demonstrated robust revenue growth. Despite the overall improvement, the Financial Advisory segment experienced a revenue decline, largely due to a drop in restructuring and reorganization advisory fees, though an increase in other advisory services provided some offset.
Financial Highlights
18 data points| Revenue | $701.24M |
| Operating Expenses | $1.10B |
| Interest Expense | $7.18M |
| Net Income | -$237.31M |
| EPS (Basic) | $-0.36 |
Key Highlights
- 1Total Revenues increased significantly to $701.2 million in Q1 2010 from $44.9 million in Q1 2009, driven by improved market performance.
- 2Net Loss Attributable to The Blackstone Group L.P. decreased to $121.4 million from $231.6 million in the prior year period.
- 3Assets Under Management (AUM) grew by 13% year-over-year to $104.5 billion, signaling a recovery in capital deployment.
- 4Performance Fees and Allocations swung from a loss of $214.2 million in Q1 2009 to a gain of $185.8 million in Q1 2010.
- 5Investment Income (Loss) also improved dramatically, moving from a loss of $82.5 million in Q1 2009 to a gain of $154.9 million in Q1 2010.
- 6The Private Equity segment showed a strong recovery, with its net IRR improving significantly compared to the prior year's quarter.
- 7The company maintained a strong liquidity position, with $627.3 million in cash and substantial investments in Treasury cash management strategies.