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Blackstone reports Q1 earnings

Ken Caplan, Kathleen McCarthy, and Jon Gray (Credit: Fortune)

Blackstone reported a net loss of $1.07 billion on its earnings call. The company’s real-estate side held up relatively well to its other lines of business, with the value of the portfolios of its two strategies falling by 8.8% and 3.9%, Barron’s noted.

  • Worth Noting: Hotels and retail, the sectors most severely impacted by the pandemic, occupy only 15 percent of the private equity giant’s global real estate portfolio, while logistics, office, and residential make up the rest.
  • Dry powder: The firm has spent the past two years raising nearly $250 billion, partly for massive new private-equity and real-estate funds. That has left it with $151.1 billion in unspent cash to invest in new opportunities at a time when prices may be depressed.
  • Heard on the StreetJon Gray on the earnings call: “We’re certainly not in the ‘V’ camp. We’ve been debating what the shape is… I think it’s an elongated recovery. That’s why we’re not rushing to invest.” 

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