Blackstone Group Chairman and CEO Stephen Schwarzman has said thatit has become hard to structure the largest leveraged transactions, as thecompany announced a net loss of $113 million for the third quarter, reportsFinancial News.
Attributing the loss to the “impact of $803 million ofnon-cash charges” related to equity-based compensation, the company made a netprofit of $1.8 million – an increase of nearly two-thirds, compared to lastyear.
The company has said that this wasdriven by growth in its corporate private equity, real estate, marketablealternative asset management, and financial advisory segments, according toFinancial News.
“Blackstone posted year-over-year increases in revenues,cash flow and assets under management despite the very significant creditmarket dislocations,” Schwarzman said in a statement. “While it will be difficult to structure verylarge leveraged transactions incorporate private equity and real estate untilthe credit markets improve, pricing of assts is more favorable.