Blackstone Concerned over Large Buyouts

Blackstone Group Chairman and CEO Stephen Schwarzman has said that it has become hard to structure the largest leveraged transactions, as the company announced a net loss of $113 million for the third quarter, reports Financial News.

Attributing the loss to the “impact of $803 million of non-cash charges” related to equity-based compensation, the company made a net profit of $1.8 million – an increase of nearly two-thirds, compared to last year. 

The company has said that this was driven by growth in its corporate private equity, real estate, marketable alternative asset management, and financial advisory segments, according to Financial News.

“Blackstone posted year-over-year increases in revenues, cash flow and assets under management despite the very significant credit market dislocations,” Schwarzman said in a statement.  “While it will be difficult to structure very large leveraged transactions incorporate private equity and real estate until the credit markets improve, pricing of assts is more favorable.