New York (Reuters)-Blackstone Group LP saw third-quarter distributable profits increase 9% year-over-year on Wednesday as the world’s largest managers of alternative assets such as private equity and real estate took advantage of rising corporate valuations Said. Cash out part of the leveraged buyout investment.
Distributable earnings (cash available to pay dividends to shareholders) increased from $ 710 million in the previous year to $ 772 million. According to data compiled by Refinitiv, this was 63 cents of distributable profit per share, above the analyst’s average estimate of 57 cents.
Blackstone said its private equity portfolio rose 12.2% in the third quarter, while the benchmark S & P 500 Index .SPX rose 8.5% over the same period. Opportunistic and core real estate funds increased by 6.4% and 3.5%, respectively.
In the quarter, Blackstone completed the $ 7 billion sale of Cheniere Energy Partners to Brookfield Asset Management and Blackstone Infrastructure Partners. We have also completed a $ 625 million initial public offering of Mindspace Business Park, India’s second-listed real estate investment trust.
“Blackstone reported excellent results in the third quarter and is characterized by strong investment performance and earnings growth,” Blackstone CEO Stephen Schwarzmann said in a statement.
Under generally accepted accounting principles (GAAP), Blackstone reported net income of $ 794.7 million as the increase in return on investment was partially offset by compensation costs.
Total assets under management at the end of September increased from $ 564.3 billion in the previous quarter to $ 584.4 billion due to strong funding. Blackstone had $ 152.4 billion in unused capital as of the end of September.
Blackstone said it will pay a quarterly dividend of 54 cents per share.
Report by Chibuike Oguh in New York. Edited by David Holmes.
Source: Reuters, Blackstone Group