Summary
Blackstone Inc. (BX) reported its third-quarter 2011 results, showcasing continued growth in assets under management (AUM) despite a challenging macroeconomic environment characterized by declining global equity markets and increased volatility. The firm saw a year-over-year increase in total AUM to $157.7 billion by the end of the quarter, driven by strong inflows across its Private Equity, Hedge Fund Solutions, and Credit Businesses segments. Management and advisory fees saw a healthy increase, reflecting higher fee-earning AUM and increased transaction activity. However, the firm's reported net income was negative for the quarter and year-to-date, primarily due to significant unrealized losses in investment income and performance fees, largely driven by the downturn in public markets. Compensation expenses also played a role in the net loss. Despite the reported net loss, the company highlighted its Distributable Earnings and Net Fee Related Earnings from Operations, which exclude the impact of market volatility and are generally positive, indicating the underlying strength of its fee-generating business. Liquidity remains robust, supported by cash reserves and available credit facilities.
Financial Highlights
32 data points| Revenue | -$124.08M |
| Operating Expenses | $540.93M |
| Interest Expense | $13.79M |
| Net Income | -$274.57M |
| EPS (Basic) | $-0.56 |
| EPS (Diluted) | $-0.56 |
| Shares Outstanding (Basic) | 487.19M |
| Shares Outstanding (Diluted) | 487.19M |
Key Highlights
- 1Total Assets Under Management (AUM) grew to $157.7 billion, up 23% year-over-year, driven by new fund raises and capital deployment.
- 2Management and Advisory Fees increased by 17% year-over-year for the quarter, reflecting growth in fee-earning AUM and increased transaction activity.
- 3The firm experienced significant unrealized losses in Performance Fees and Investment Income, leading to a net loss for the quarter, largely attributed to market downturns.
- 4Despite the net loss, Distributable Earnings and Net Fee Related Earnings from Operations remained positive, indicating the resilience of the core fee-generating business.
- 5Private Equity segment saw strong increases in Fee-Earning AUM and Assets Under Management due to new fund investments.
- 6Real Estate segment demonstrated improved operating fundamentals for its portfolio companies, with notable increases in Fee-Earning AUM and Assets Under Management.
- 7Blackstone's liquidity position remains strong, with $593 million in cash and significant investments in treasury and liquid funds, alongside a $1.02 billion credit facility.
- 8The company repurchased approximately $2.1 million of units under its $500 million repurchase program during the first nine months of the year.