“Blackstone Group LP BX +4.24% swung to a fourth-quarter profit as the private-equity giant recorded strong revenue, driven by growth in both performance fees and management and advisory fees.
The results beat Wall Street estimates.
As of the quarter’s end, total assets under management reached a record $210.22 billion, up 26% from the year earlier, as all of Blackstone’s investment businesses continued to see net inflows and carrying-value appreciation.
Chief Executive Stephen Schwarzman said the latest quarter “capped a year of record financial performance for Blackstone,” noting that the year’s results were the firm’s best since becoming a public company more than 5½ years ago.
Blackstone posted a profit of $106.4 million, or 19 cents a unit, compared with a year-earlier loss of $22.7 million, or five cents a unit. On the basis of so-called economic net income, the firm reported a profit of 59 cents a unit, versus a profit of 42 cents a unit a year earlier. Analysts surveyed by Thomson Reuters recently expected a per-share profit of 47 cents.
Private-equity firms view economic net income as a better barometer of performance because it includes unrealized gains and employee compensation. The performance metric also accounts for all units, not just those that are publicly traded.
Total revenue climbed 33% to $1.23 billion as total performance fees rose 31% and management and advisory fees climbed 27%. Investment income doubled to $111.7 million. Analysts had expected $1.11 billion in total revenue.
Total expenses jumped 23% to $542.7 million….”
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