Economics

Blackstone Shines Again In 3Q

Blackstone has recorded substantial YoY growth for the third quarter running, logging attributable net income of $384.6 million (a 19% improvement compared to 3Q 2016) and economic net income of $834 million (up 21% YoY). That ENI equates to about 69 cents per share, easily exceeding the reported 54-cent estimate of industry analysts.

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Blackstone

While those figures impress, they still don't quite stack up to the firm's first six months of the year. Blackstone registered 36% YoY growth in 2Q 2017 and a whopping 166% in 1Q.

The firm's private equity unit experienced a 3.3% quarterly increase in value during 3Q along with a 3% rise in AUM, sending that latter figure past the $100 billion mark. Blackstone's PE arm generated $164.8 million in ENI, an uptick from $132.1 million in 3Q 2016. The division invested $4.3 billion in the past three months, realized $2.4 billion and made an additional $3.2 billion in commitments.

In a related earnings call, Blackstone president Tony James expanded on the firm's previously announced plans to raise up $100 billion for infrastructure investments. As you'd expect for such a massive pool of capital, the firm's mandate will be diverse: Blackstone will reportedly use all that cash to pursue carveouts, investments in publicly listed companies, expansion capital deals and also to help fund new companies build from the ground up.

Want more? Check out our prior Blackstone coverage.

Article by Kevin Dowd, PitchBook