Blackstone Group reported fee-earning assets under management as of Sept. 30 totaled $76.5 billion, up 56% from the year before, according to the firms first full quarterly earnings report since going public in June. By segment, fee-earning assets managed in the corporate private equity business were up 28% as of Sept. 30 to $24.6 billion; real estate assets were up 92% to $17.1 billion; and marketable alternative investments, including hedge funds and hedge funds of funds, were up 70% to $34.8 billion.
Despite strong asset growth, Blackstone reported a net loss in the quarter of $113 million resulting from the impact of $803 million of non-cash charges from vesting of equity-based compensation associated with the IPO and the amortization of intangibles. Revenue in the third quarter was $567 million.
Blackstone shares closed down $2.02 per share at $22.26 in late afternoon trading today, from a Nov. 9 close of $24.08. In the last 52 weeks, Blackstones share price peaked at $38.
Blackstone posted year-over-year increases in revenues, cash flow and assets under management despite very significant credit market dislocations While it will be difficult to structure very large leveraged transactions in corporate private equity and real estate until the credit markets improve, pricing of assets is more favorable, Stephen A. Schwarzman, chairman and CEO, said in the earnings news release.