Glimmers of hope

6 May 2009 By Lauren Silva

The bluechip private equity firm posted another loss. But management fees are steady giving a stable base for valuation and noone is banking on performance fees. The recent rise in Blackstone’s shares suggests investors have noticed that things should be set to get better.

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Blackstone posted a first quarter loss to economic net income of 7 cents a share versus 6 cents a share in the same quarter last year. Fee earning assets under management were flat from the fourth quarter last year.

Private management fees were up 1.6% from the same quarter last year. Performance fees were $4.8m, up from a $163m loss in the same quarter last year. Real estate management fees were up 20% from the same quarter last year. The real estate group wrote down $228.6m in performance fees and allocations. The financial advisory group booked revenue of $92m in the quarter, up from $68.6m in the same quarter last year.

Blackstone shares closed at an alltime low of $3.89 a share on February 26, 2009. On May 6 after earnings, Blackstone's stock was up over 14% to $13.87 a share. Its stock closed at a high of over $35 a share June 22, 2007, the day the company went public.

Blackstone first quarter earnings

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