Blackstone AUM soars despite earnings loss

Blackstone Group’s assets under management increased 47% to $102.4 billion in 2007, from $69.51 billion, according to its fourth-quarter earnings report issued today. Growth in real estate, marketable alternative asset management and financial advisory businesses fueled the asset increase. However, the private equity firm’s publicly traded U.S. entity reported a $170 million net loss in the fourth quarter, the result of a $15.4 million decline in corporate private equity revenues, a $26.3 million drop in management fees, decreases in performance fees, and a decline in allocations and investment income. Invested limited-partner capital declined to $2.33 billion in the fourth quarter, from $3.36 billion a year earlier.