Earnings Take Off
Blackstone said second-quarter net income surged to $774.4 million from $224.1 million in the second quarter of 2006. The company reported a loss of 20 cents per share, but it only covered the last 12 days of the second quarter. Blackstone went public at the end of June.
Revenue climbed to $975.3 million from $324.6 million. Analysts polled by Thomson Financial forecast $1.06 billion in revenue and net income of $614.4 million.
Revenue in Blackstone's corporate private equity funds, which buy public companies using borrowed money and later sell them, more than tripled to $426.1 million. The division charges fees for managing clients' money. The funds charged fees on $23.5 billion in clients' assets during the quarter, compared with $20.5 billion in the second quarter of last year.
The real estate segment's revenue also more than tripled, to $320.2 million.
Revenue in the marketable alternative asset management division rose to $168.6 million. This business runs hedge funds, whose assets under management leaped to $32.7 billion from $18.7 billion in last year's second quarter.
The financial advisory segment, which advises companies on takeovers and other deals, reported an 18% increase in revenue to $98.6 million. The company cited heavy corporate takeover activity, which offset a slow quarter for advising on restructuring and reorganization.
Blackstone's stock has fallen sharply since the firm's initial public offering in June. Amid a global flight to safer investments, investors fear Blackstone will find it tougher to line up the financing to close takeover deals.