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Blackstone Q3 profit beats forecasts amid market rise

By Reuters

  • 18 Oct 2018
Blackstone Q3 profit beats forecasts amid market rise
Credit: Thinkstock

Blackstone Group LP, the world's largest manager of alternative assets, modestly exceeded analyst expectations with an 11 percent jump in third-quarter earnings on Thursday, as climbing equity markets buoyed its holdings.

The New York-based firm's economic net income (ENI) per unit for the three months through September was 76 cents, compared to the mean forecast for 74 cents, according to Thomson Reuters I/B/E/S. A year earlier, Blackstone reported ENI per share of 68 cents.

ENI reflects the mark-to-market valuation gains or losses on Blackstone's portfolio and is a closely watched earnings metric for U.S. private equity firms.

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In premarket trading, Blackstone shares were flat.

Stock market swings often impact the valuation of private equity firms' holdings because they mark many of their holdings to market. The benchmark S&P 500 index rose 7.2 percent in the third quarter.

Blackstone also benefited from a 19.9 percent appreciation of Gates Industrial Corporation, in which it still holds a majority stake.

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"Assets under management increased 18 percent versus the prior year, bringing the total to a new record of $457 billion," Chairman and Chief Executive Steve Schwarzman said in a statement.

Distributable earnings -- the actual cash available for paying dividends -- were $769 million, up from $626 million a year ago. Blackstone said it would pay shareholders a quarterly distribution of 64 cents per common unit, including a 10 cent special distribution.

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