The Blackstone Group Reports Second Quarter Earnings
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The Blackstone Group Reports Second Quarter Earnings
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2007-08-13
Second Quarter 2007 Net Income of $774.4 Million Up from
$224.1 Million in the Quarter Ending June 2006
Second Quarter 2007 Business Highlights
Corporate Private Equity revenues increased to $426.1 million vs. $125.6 million in the prior year
Real Estate revenues increased to $320.2 million vs. $92.0 million in the prior year
Marketable Alternative Asset Management revenues increased to $168.6 million vs. $32.5 million in the
prior year
Financial Advisory revenues increased to $98.6 million vs. $83.8 million in the prior year
Six Months Ended June 30, 2007 Business Highlights
Corporate Private Equity revenues increased to $653.4 million from $387.4 million in the prior year
Real Estate revenues increased to $1,106.9 million from $275.7 million in the prior year
Marketable Alternative Asset Management revenues increased to $324.9 million from $121.6 million in the
prior year
Financial Advisory revenues increased to $192.8 million from $122.8 million in the prior year
The Blackstone Group (NYSE: BX) today reported its second quarter 2007
results.
Revenues of $975.3 million and net income of $774.4 million for the three months ended June 30, 2007
compared with revenues of $324.6 million and net income of $224.1 million a year ago. Strong growth in all
four business segments - corporate private equity, real estate, marketable alternative asset management and
financial advisory - drove the increase.
Revenues of $2,201.7 million and net income of $1,906.4 million for the six months ended June 30, 2007
compared with revenues of $880.1 million and net income of $711.2 million a year ago. As in the case of the
three months ended June 30, 2007, strong growth in all four business segments - corporate private equity, real
estate, marketable alternative asset management and financial advisory - drove this six month increase.
Blackstone's business was historically conducted through a large number of entities as to which there was no
single holding entity. Accordingly, operating results for the three and six months ended June 30, 2007 and 2006
are for the consolidated and combined entities. In connection with the initial public offering of the common
units of The Blackstone Group L.P. (the publicly traded partnership), Blackstone effected a reorganization as ofthe close of business on June 18, 2007, which affects the comparison of the current year's periods with those of
the prior year's. In addition, net loss per common unit is for the twelve days ended June 30, 2007.
Stephen A. Schwarzman, Chairman and Chief Executive Officer of Blackstone, said: "We are pleased to report
such strong results in each of our business segments. In the face of current market volatility and challenges, we
remain confident about delivering superior long-term returns for the investors in our funds, which we believe is
the key to driving value and growth for our unit holders."
Throughout much of the second quarter, the operating environment was fundamentally positive, with global
equity markets approaching near-record levels and the global economy, particularly in the U.S., remaining
healthy. Concerns over weakness in the U.S. housing market and sub-prime mortgage market, coupled with a
large volume of debt financing backlog related to leveraged equity transactions, served to create more
challenging financing conditions starting in the last week of the quarter, which continue to date.
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