Blackstone sees escalating investment opportunities even though market is volatile
On Wednesday private equity company Blackstone Group headed the estimates but reported lower quarterly profit as well as stated that even though market condition is impulsive there are increasing investment opportunities for it.
In the first quarter of 2008, Blackstone lost $93.6 million while in second-quarter earnings after taxes but before non cash charges for vesting equity-based recompense and paying back of intangible assets plunged to $99.9 million. A year ago this amount was $735.6 million. As in June 2007 massive payouts connected with its initial public offering of more than $4 billion Blackstone favored this profit measures.
President and Chief Operating Officer of Blackstone stated that it is the most critical time in 33 years and there are many factors which make fundraising environment more difficult. Economic net income after taxes fell to 15 cents a share from 58 cents a year earlier. Chairman of private investment firm Holland & Co and a previous Blackstone partner comment that it is very difficult to perform well in this situation. The environment is really shabby yet they had maintained a reputation. Blackstone get public last year and its shares rose 2.6 percent. According to Blackstone the global economy slowdown hurt and affected each and every market and they are part of it. Despite the challenges, the company has continued to see asset investments by its clients, and has hired as it creates new products.
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