Summary
Blackstone Inc. (BX) reported strong financial performance for the second quarter and first half of 2011, driven by significant growth in its Performance Fees and Management and Advisory Fees. Total Revenues saw a substantial increase year-over-year, fueled by robust performance across its Private Equity and Real Estate segments, with notable contributions from the commencement of the BCP VI fund's investment period and strong performance in the BREP funds. The company also saw a decrease in Compensation and Benefits expenses year-over-year, primarily due to lower equity-based compensation. Despite an increase in interest expense following a debt issuance, Blackstone maintained a healthy financial position with growing Assets Under Management and Fee-Earning Assets Under Management across all segments. The company's overall financial health appears robust, with a significant increase in total revenues and a notable decrease in key expenses, leading to a substantial improvement in net income attributable to The Blackstone Group L.P. The strong growth in Assets Under Management and Fee-Earning Assets Under Management indicates continued investor confidence and successful capital deployment. Investors should monitor the company's ability to sustain this growth, particularly in light of the ongoing economic and market uncertainties highlighted in the report.
Financial Highlights
32 data points| Revenue | $1.31B |
| Operating Expenses | $984.83M |
| Interest Expense | $14.19M |
| Net Income | $86.24M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 476.29M |
| Shares Outstanding (Diluted) | 483.64M |
Key Highlights
- 1Total Revenues increased significantly by 138% year-over-year for the three months ended June 30, 2011, reaching $1.31 billion.
- 2Performance Fees more than doubled, driven by strong performance in Real Estate and Private Equity segments, with unrealized performance fees up significantly.
- 3Management and Advisory Fees increased by 23% year-over-year, benefiting from increased transaction fees in Real Estate and growing management fees across Private Equity, Credit Businesses, and Hedge Fund Solutions.
- 4Total Expenses decreased by 13% year-over-year, primarily due to a significant reduction in Compensation and Benefits expenses, largely driven by lower equity-based compensation.
- 5Net Income (Loss) Attributable to The Blackstone Group L.P. improved substantially from a loss of $193.3 million in Q2 2010 to a gain of $86.2 million in Q2 2011.
- 6Assets Under Management grew by 6% quarter-over-quarter and 57% year-over-year, reaching $158.7 billion as of June 30, 2011.
- 7Fee-Earning Assets Under Management also showed strong growth, increasing by 4% quarter-over-quarter and 27% year-over-year, reaching $129.0 billion as of June 30, 2011.