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Thursday, November 06, 2008
Blackstone Reports Big Losses Amid Financial Crisis
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.
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