Blackstone (BX), a private-equity funded investment bank based in New York, posted a third-quarter economic net income of negative $416 million, or $0.35/unit. This missed analyst estimates by $0.05. This is reportedly it's first loss since 2011.
The drop was driven by declines in the unrealized value of public holdings, despite strong underlying portfolio fundamentals across the funds.
Last quarter, Blackstone’s economic net income hit $1.3 billion, or $1.15 a share, surging 89% from 2013.
“Blackstone produced strong distributable earnings in the third quarter, reaching a record for the nine-month period. Despite declines in the public markets that affected our Economic Net Income, underlying trends in our businesses and our portfolio companies remain favorable, which is what drives value ultimately,” said Stephen Schwarzman, chairman and CEO.
And Schwarzman is optimistic for the future.
“Recent market volatility should create opportunity for us and we have raised an industry-record $97 billion of capital over the past year to pursue such opportunities,” he added.
Recently, Blackstone has been sustainably increasing its position in housing.
In August, Blackstone announced that it was acquiring a majority stake in Stearns Holdings, the parent company of Stearns Lending. Read more on the deal in this exclusive interview with HousingWire, with the executives from Blackstone and Stearns Lending who guided the deal.
Additionally, back in September, funds affiliated with Blackstone Tactical Opportunities said they are set to acquire a “significant equity stake” in The PMI Group, a provider of mortgage insurance.