Blackstone Group

Blackstone Group LP | Private Equity Tracker Profile

The Blackstone Group, one of the largest private equity firms, is a titan of the industry. The firm has weathered almost a quarter of a century in private equity and successfully held its own initial public offering. This page on Blackstone Group is part of our ongoing effort to follow private equity firms through our tracker tool. For contact details for Blackstone Group and more than 1,000 other private equity firms see our Private Equity Directory.

Story #1: Stephen Schwarzman Tops Executive Pay List

The CEO of Blackstone Group, Stephen Schwarzman, is the highest-paid chief executive in the United States. Most of his compensation--$699.8 million of a total $702.4 million--comes from when the private equity firm went public in 2007 and Schwarzman received equity grants. Mr. Schwarzman is expected to remain at the top of the list of highest paid CEOs for the next few years, at least. Read more...

Story #2: Blackstone Group Stock Up 75% in Less Than a Month

Blackstone Group's stock has risen incredibly over the last month with a more than 75% jump since July 8th. Shares were trading below $9 less than a month ago but Blackstone Group has rallied to almost $15 today. This likely reflects optimism surrounding the release of the firm's Q2 earnings tomorrow. The private equity firm's public stock has tumbled in recent months, never returning to the share price of $35 when the firm first offered stock in June 2007. Since its IPO the stock has fallen as low as $3.96. I will share Blackstone Group's earnings here when they are reported tomorrow.

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Story #3: Blackstone Group Recovers in Q1 2009

The Blackstone Group, one of the largest private equity firms, can be seen as a barometer for the private equity industry. The firm has weathered almost a quarter of a century in private equity although this recession has proved difficult for even the most experienced private equity groups. Blackstone Group appears to be recovering although it still posted a negative economic net income.

Considering that in the last quarter of 2008 the company posted a net economic income loss of $827 million, it is good news that the Blackstone Group (BX) only had a $93 million loss in 1Q 2009. Another positive sign was the total segment revenue of $48 million in the first quarter this year, a big boost from -$621.4 million in the previous quarter. Net fee related earnings from operations improved by 32% from the first quarter of last year to this year. During the same period of time, adjusted cash flows from operations went from $-4 million in Q1 2008 to positive $75 million in Q1 2009.

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Story #4: Blackstone Group's Stephen Schwarzman Speaks with Students

Stephen A. Schwarzman is the chairman and co-founder of the Blackstone Group. It is not often that private equity leaders will speak for over an hour with university students, but this is the second video of Mr. Schwarzman in this setting. He talks about the challenges of heading a major private equity firm in the current financial crisis. Mr. Schwarzman also provides career advice for his Yale student audience. Click here to see the video.

Story #5: Blackstone Shows 2008 Losses and Executive Pay Cuts

The Blackstone Group has proved vulnerable to the economic downturn, announcing a $1.16 billion loss last year with an alarming $415.2 million lost in the fourth quarter of 2008. This stands in stark contrast to the firm's performance in the recent private equity boom where Blackstone was a giant in the industry posting a $1.62 profit in 2007.

The buyout firm's decision to go public in the summer of 2007 reveals a steady slide in the company's value (see Yahoo finance image). The private equity firm began offering its stock at the height of the buyout boom, from its IPO of $31 Blackstone's stock has declined ever since to just below $5 today. Significantly, Blackstone Group LP's stock fell at more than two times the rate of the market last year. Read more

Story #6: Blackstone Suffers Big Losses in Q3 2008

The Blackstone Group, one of the most successful private equity firms has posted a significant loss in the third quarter of 2008. Blackstone reported losses in nearly all of its businesses totaling at a $502.5 million loss. The advisory arm for Blackstone gained substantially while Blackstone's hedge fund, private equity and real estate businesses all experienced negative revenue.

The Blackstone Group's private equity business reported $68.3 million in negative revenue. The typically profitable real estate arm suffered more as the value of its assets fell considerably; Blackstone's real estate business posted $273.7 million in negative revenue. Finally, Blackstone's hedge fund operation also declined to $48 million in negative revenue. The only relief came from Blackstone's advisory business which gained 90% from the same time last year at $160.7 million in positive revenue for the period.

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Story #7: Stephen Schwarzman Speaks at Harvard Business School

Steve Schwarzman is the co-founder of the very successful private equity firm the Blackstone Group. In 1985, he founded the Blackstone Group with Peter G. Peterson with only $400,000 in seed capital and a shared secretary, and since then the Blackstone Group has evolved into one of the biggest private equity firms holding $119.4 billion in assets under management as of June 2008. Schwarzman is respected as a savvy businessman and a strong manager, making it onto the Time 100 list last year.

This video presents a rare opportunity for students at the Harvard Kennedy Business School to hold an open round table discussion with Mr. Schwarzman. He shares inspirational personal anecdotes, insight into the source of his success and offers some general advice for making it in the business world.

Watch the video here

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