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Blackstone private equity Q2 revenues decline by 97% in 2012

BBR Staff Writer Published 23 July 2012

Investment and advisory firm Blackstone has reported total revenues of $11.79m from Private Equity for second quarter 2012, a decline of 97% compared to revenues of $399.4m in the second quarter of 2011.

A sharp decline in performance fees and investment income have impacted revenues as the carrying value of assets overall was down 4.2% for the quarter.

Economic Net Income (ENI) was $212m for the second quarter, down from $804m in the same period last year.

Fee-earning AUM has reached $158bn in the second quarter, up 22% over the same quarter last year, as $44bn of gross inflows more than offset $13bn of capital returned to investors over the same period.

Blackstone chairman and chief executive officer Stephen Schwarzman said the company's underlying business trends remained stable in the second quarter, and its investing businesses continued to generate solid relative performance.

"We ended the quarter with total assets under management of $190 billion, up 20% year over year. Our newest global real estate fund is over $12 billion in total size, which is the largest fund of this type ever raised," Schwarzman added.

Net accrued Performance Fees from Private Equity was $533m at the end of the quarter substantially related to BCP IV, which is in full cash carry at a 37% net IRR.

Total revenues from Hedge Fund were down 15% year-over-year despite AUM growth, reflecting negative Performance Fees in the quarter.