Home / Markets / Industries / Finance

Thursday, November 06, 2008

Blackstone Reports Big Losses Amid Financial Crisis

By Dunstan Prial

FOXBusiness

Shares of Blackstone Group LP (BX) fell sharply Thursday after the large private equity fund reported heavy third-quarter losses as the value of its holdings were battered by the ongoing financial crisis.

The company, which buys distressed companies and then tries to sell them for a profit, said its quarterly loss jumped to $340.3 million from $113.2 million during the same three-month period in 2007.

Blackstone had negative revenue of $160.3 million compared with positive revenue of $526.7 million a year earlier.

The crisis stripped away the value of its holdings in private equity, real estate and alternative asset management and led to the steep losses, the company said in a statement.

Blackstone’s chief executive, Stephen A. Schwarzman, said the firm has been forced to operate “in a challenging and volatile environment.”

Nevertheless, the company's liquidity remains strong despite the market volatility, he said.

Blackstone's stock has fallen 72% since its initial public offering 18 months ago.

Fox Business Video

- The Crisis With 20/20 Hindsight
- Nov 21, 2009
  
  FOXBusiness.com LIVE
- Jerry Rice Talks Career
- Nov 21, 2009
  
  NFL Receiver on career on the gridiron
- John O'Hurley as Venture Capitalist
- Nov 21, 2009
  
  Comedian on life as venture capitalist
- Excess Spending in Congress
- Nov 21, 2009
  
  Saving $100 Million
- Cavuto Business Report 11-20-09
- Nov 21, 2009
  
  Business Report: Cavuto