The Blackstone Group L.P. Watches Net Income Jump 30% to $814 Million

Blackstone Group reported its net income rose $186 million year-over-year in the first quarter of this year thanks to impressive results from its private equity line of business.

Apr 17, 2014 at 10:51AM

Alternative asset manager Blackstone Group (NYSE:BX) reported this morning that its economic net income (ENI) rose from $628 million to $814 million from the first quarter of 2013 to the first quarter of this year, a gain of $186 million, or 30%.

Its ENI includes unrealized gains on investments, and per share it arose 27%, from $0.55 to $0.70. In addition, as a result of growth in realized performance fees and investment income, Blackstone's distributable earnings rose by 24% to $485 million, or $0.41 per share.

"Blackstone reported first quarter records for Economic Net Income and Distributable Earnings, with continued strong momentum across the board," noted the CEO and chairman of Blackstone, Stephen Schwarzman, in the earnings announcement.

"With leading, global platforms across multiple asset classes, our investors benefit from our ability to identify relative value across markets and deploy capital toward ideas with the best risk-reward profile," Schwarzman continued. "As such, the environment for new investments has remained favorable for us and we deployed or committed $7.4 billion in the quarter."

Revenue at Blackstone rose from $1.3 billion to $1.5 billion, a gain of 20%. This was driven by impressive growth performance fees, which rose 29%, or $175 million, and its fee revenues rose $92 million, or 18%. However its investment income fell from $135 million to $117 million, a decline of 14%.

Blackstone's Private Equity arm saw impressive growth across the board, as its total revenues more than doubled, growing from $225 million to $484 million. While its expenses arose by $43 million, or 35%, to $165 million, it still reported an astounding growth in total economic income which grew from $103 million to $319 million. This was partially offset by a 9% loss in economic income at its real estate business, which fell from $353 million to $321 million.

Schwarzman concluded his remarks by noting, "Blackstone remains one of the fastest growing managers in the fastest growing part of asset management, and we ended the quarter with a record $272 billion in total assets under management, up 25% year over year." 

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