Blackstone Group tops third quarter results
Blackstone Group has posted stronger than expected third quarter earnings as oil prices rebounded.
Predictions by analysts from Reuters expected earnings of 48 cents per share, which were greatly exceeded.
The results
The world's largest asset manager said it earned an economic net income – a metric that accounts for unrealised investment gains or losses – of $687m (£562.2m) after taxes, compared with a loss of $416m the previous year.
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The New York-based company said its earnings were 57 cents per share.
Its quarterly revenues were $1.43bn, compared to $11.5m last year.
Assets under management increased eight per cent to $361bn through a combination of fundraising and organic expansion.
Why it's interesting
Earlier this week it was announced that Chinese-based HNA was to buy 25 per cent of Hilton's shares from Blackstone. It bought the chain for $26bn in 2007, and will see its share of the business drop to 21 per cent when the deal goes through.
Yesterday it was also announced the firm was launching its first real estate investment trust, which it is in the process of fundraising for. Shares were up 3.2 per cent after the markets opened in New York this afternoon.
What the company said
Stephen Schwarzman, chairman and chief executive, said:
Blackstone continued to perform well in this year's third quarter, with every business achieving sequential and year-over-year growth in both revenues and earnings, and assets under management reaching a record $361bn. In a period of very low growth and interest rates around the world, we strive to provide good investment returns to institutions and individuals alike. And we achieved that goal.