When will the real estate market make a comeback? Well, it seems that the Blackstone Group (BX) thinks it is already happening. The firm has won a bid for 588 U.S. shopping malls. The price tag? A cool $9.4 billion. In fact, the auction was heated, involving other top real estate investors like Starwood Capital.

The seller is Centro, which is based in Australia. The company has been trying to pare down its debt load since the financial crisis hit in 2008. After the sale of the assets, Centro will be left with 112 malls.

Continue reading Blackstone Bets $9.4 Billion on Real Estate

Blackstone Bets $9.4 Billion on Real Estate originally appeared on BloggingStocks on Mon, 28 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

Because of the complexities of its business, it can be difficult to decipher whether the Blackstone Group (BX) has posted a profit. In its latest earnings report, there was a net loss of $11 million, or $0.03 per share, up from a loss of $143.3 million in the same period a year ago.

But private equity firms highlight another metric: economic net income. It's supposed to be a better reflection of the earnings. According to this, Blackstone saw a 46% rise to $0.29 per share in profits.

Continue reading Blackstone Gets Its Mojo Back

Blackstone Gets Its Mojo Back originally appeared on BloggingStocks on Thu, 03 Feb 2011 11:00:00 EST. Please see our terms for use of feeds.

As the economy rebounds and credit markets warm up again, it looks like private equity firms are going back to work -- on big deals. According to Bloomberg.com, Apollo Global Management is prepared to offer $12 billion for Sara Lee (SLE). The transaction would also include investor C. Dean Metropoulos -- who bought Pabst Brewing in 2010 -- as well as Bain Capital and TPG.

It looks like this is a viable offer even though a strategic buyer is interested (which often can justify a higher valuation). This is JBS SA, a beef processor based in Brazil. An acquisition would certainly have lots of synergy, creating a vertical operation. Interestingly enough, JBS may seek the help of the Blackstone Group (BX).

Continue reading Buyout Interest Heats Up for Sara Lee

Buyout Interest Heats Up for Sara Lee originally appeared on BloggingStocks on Mon, 24 Jan 2011 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Radio Shack: Takeover or Acquisition Target

Radio Shack: Takeover or Acquisition Target originally appeared on BloggingStocks on Fri, 02 Jul 2010 17:30:00 EST. Please see our terms for use of feeds.

"We are bullish on India," said Akhil Gupta, chairman and managing director of Blackstone India, during a telephone interview with Reuters. "We just invested nearly $1 billion in India during the last five years and we believe it could be two to three times [that amount] over the next five years."

Continue reading Blackstone Group Is Bullish on India

Blackstone Group Is Bullish on India originally appeared on BloggingStocks on Wed, 07 Apr 2010 14:30:00 EST. Please see our terms for use of feeds.

Continue reading No Bargains in Private Equity, Unlike 2001

No Bargains in Private Equity, Unlike 2001 originally appeared on BloggingStocks on Mon, 01 Mar 2010 15:10:00 EST. Please see our terms for use of feeds.

JPMorgan Chase (JPM) wanted a piece of what could be the most interesting insurance IPO of the year, but it won't get a taste.

American International Group's (AIG) Asian life insurance unit, American International Association, is going to go public in Hong Kong for an estimated $10 billion, and JPMorgan isn't being allowed to play, insiders say, because of a sour relationship that stretches back to the September 2008 financial crisis. As a result, it will be the only major investment bank not being admitted to the party.

Continue reading AIG Skips JPMorgan for Asian IPO

AIG Skips JPMorgan for Asian IPO originally appeared on BloggingStocks on Mon, 15 Feb 2010 11:00:00 EST. Please see our terms for use of feeds.

What has Blackstone (NYSE: BX) been doing with all those theme parks it's been buying? Well, the answer is becoming a bit clearer now. The private equity firm is getting ready to take theme park operator Merlin Entertainments public early next year.

Several investment banks have already been called to advise on the transaction, including Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Deutsche Bank (NYSE: DB), UBS (NYSE: UBS), and Nomura (NYSE: NMR). If all goes as planned, the deal could be good for $3.33 billion.

Continue reading Will Blackstone make magic with Merlin?

Will Blackstone make magic with Merlin? originally appeared on BloggingStocks on Sun, 25 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

In the U.S., the prevailing sentiment is that the consumer is tapped out. And, even for those that have money, there will continue to be a good deal of frugality.

So, it would seem that theme parks would suffer, right?

Perhaps not. This is the thinking of Stephen Schwarzman, who is the chief of the Blackstone Group (NYSE: BX). Interestingly enough, he's doubling down on theme park investments, according to Reuters.com.

Continue reading Blackstone: Piles to be made from theme parks?

Blackstone: Piles to be made from theme parks? originally appeared on BloggingStocks on Mon, 19 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

Up until the credit crisis, private equity firms had it made. They had plenty of leverage to play with and could load up their acquisition targets with it. So, they could realize a fantastic return on equity, mitigate their own risks, and show that they were the studs of the Street.

Then, all that went away. Credit markets dried up, and private equity companies lost their acquisition fuel. The numbers aren't as big as they used to be, but it looks like the private equity market is back in action.

Continue reading Private equity biz back in action

Private equity biz back in action originally appeared on BloggingStocks on Thu, 15 Oct 2009 11:00:00 EST. Please see our terms for use of feeds.

The private equity industry has been through the worst, but now it seems the situation is taking a turn for the better. Stephen Schwarzman, CEO of Blackstone (NYSE: BX) expects deal flow and IPOs to bounce, saying the economy is showing "more than green shoots" of recovery.

Schwarzman, speaking at the Super Return Middle East conference in Dubai, doesn't expect another slip into recession, but the full recovery will take time, for all the same reasons you've been reading on BloggingStocks for a while: tighter lending standards; uncooperative consumers who won't spend beyond their means and so on.

Continue reading Blackstone ready for recovery with exit strategy of sales and IPOs

Blackstone ready for recovery with exit strategy of sales and IPOs originally appeared on BloggingStocks on Wed, 14 Oct 2009 10:30:00 EST. Please see our terms for use of feeds.

The Blackstone Group (NYSE: BX - option chain) shares are rising today on reports that the buy-out firm is planning to unload a number of its portfolio companies, including TeamHealth, which provides outsourcing services for the health-care industry, and Merlin Entertainments Group, of Europe, which owns Legoland and Sea Life. Up to eight IPOs and five sales to private equity companies are in the works. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BX.

Blackstone opened Monday at $15.50. In morning trading the stock hit a low of $15.50 and a high of $16.18. As of 11:15, BX was trading at $15.79 up 0.94 (6.3%). The chart for BX looks bullish.

Continue reading Blackstone (BX) planning to shed up to 13 companies

Blackstone (BX) planning to shed up to 13 companies originally appeared on BloggingStocks on Mon, 12 Oct 2009 12:30:00 EST. Please see our terms for use of feeds.

According to the Wall Street Journal, China's government recently has pushed development of its local private-equity industry so that Chinese investors can get in on the country's private-equity deals. To that end, Chinese officials have tried to lure foreign money managers to raise funds from local investors.

Hong Kong-based First Eastern Investment Group, which plans to raise six billion yuan through a new wholly owned Shanghai subsidiary, and Asian brokerage CLSA Ltd., which plans to raise a 10 billion yuan fund through a joint-venture with state holding company Shanghai Guosheng Co., are just the latest to establish local-currency private-equity funds in Shanghai.

Continue reading Private equity heats up in China

Private equity heats up in China originally appeared on BloggingStocks on Mon, 17 Aug 2009 18:30:00 EST. Please see our terms for use of feeds.

As seen on the Blackstone Group's (NYSE: BX) latest earnings conference call, the firm is trying to find ways to diversify its platform beyond buyouts (this is no fluke as other firms, like KKR, are doing the same thing). One of the areas of interest is actually hedge funds.

To this end, Blackstone made a big hire this week, bringing Byron Wien on board as the vice chairman of Blackstone Advisory Services. Actually, he is leaving Pequot Capital Management Inc., which is a hedge fund that is in the process of closing down (assets were as high as $15 billion). The firm is now faces an SEC investigation regarding trading in Microsoft's (NASDAQ: MSFT) stock. This is according to a report in the Wall Street Journal [a paid publication].

Continue reading Byron Wien: Legendary investor moves over to Blackstone

Byron Wien: Legendary investor moves over to Blackstone originally appeared on BloggingStocks on Thu, 13 Aug 2009 14:00:00 EST. Please see our terms for use of feeds.

The market has made a nice rebound over the past few months, and one question is on every investor's lips: Can it continue?

To get an answer, it might not be a bad idea to look at what the private equity firms are planning. Remember when The Blackstone Group (NYSE: BX) decided to cash out with an IPO and it marked the exact top of the private equity boom? Take a look at how that stock has performed since then.

Well, now The Financial Times reports that "Kohlberg Kravis Roberts, the world's biggest buy-out group, is preparing up to six companies for initial public offerings worth billions of dollars, including Toys 'R Us, as it sells some of its most valuable groups back to the stock market."

Continue reading KKR prepares a torrent of IPOs

KKR prepares a torrent of IPOs originally appeared on BloggingStocks on Mon, 03 Aug 2009 08:40:00 EST. Please see our terms for use of feeds.

Blackstone Group co-founder Peter Peterson has elected to donate $1 billion -- which he calls the "vast majority" of his "net proceeds" from the company -- to his very own Peter G. Peterson Foundation. The foundation prints a mission statement on its website:

Our mission is to increase public awareness of the nature and urgency of key economic challenges threatening America's future and accelerate action on them. To meet these challenges successfully, we work to bring Americans together to find sensible, sustainable solutions that transcend age, party lines and ideological divides in order to achieve real results.

Continue reading Peter Peterson gives $1 billion to anti-national debt group

Peter Peterson gives $1 billion to anti-national debt group originally appeared on BloggingStocks on Thu, 04 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

Private equity giant KKR & Co. (NYSE: KFN) posted a $1.2 billion loss last year -- compared to pretax net income of $815 million the year before. This is KKR's first loss in at least five years.

Bloomberg pins the blame on a drop-off in leveraged buyout transactions. A $1.4 trillion market in 2006 and 2007, only $212 billion was spent on takeovers last year, which was bound to put a dent in KKR's top and bottom lines.

Continue reading KKR posts $1.2 billion loss on LBO market fall

KKR posts $1.2 billion loss on LBO market fall originally appeared on BloggingStocks on Mon, 01 Jun 2009 07:00:00 EST. Please see our terms for use of feeds.

Not long ago, the private equity firm, Fortress Investment Group LLC (NYSE: FIG), appeared to be in deep trouble. But things are looking better now, as the stock price has gone from $1 to $4.65 this year.

In fact, Fortress is now pulling the trigger on some deals. Just this week, the firm teamed up with Crestview Partners LP and Lightyear Capital LLC to invest $450 million in First Southern Bancorp (Lightyear is operated by Donald Marron, who was the former chief of PaineWebber Group).

Continue reading Fortress storms a bank

Fortress storms a bank originally appeared on BloggingStocks on Sun, 31 May 2009 14:10:00 EST. Please see our terms for use of feeds.

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

Continue reading The hits keep coming for private equity funds

The hits keep coming for private equity funds originally appeared on BloggingStocks on Sun, 26 Apr 2009 13:10:00 EST. Please see our terms for use of feeds.

This post is part of our feature on Money Losers of 2008. See all 20.

There's no doubt about it -- times are tough. People are struggling to find work and to pay the bills as the value of their homes and savings dwindle. The poor get poorer, and the rich get richer.

Or do they? It's all relative, of course, but world's billionaires have been taking some big hits too. We take a look at Sheldon Adelson, Kirk Kerkorian, and Lakshmi Mittal in their own separate posts, but here are some other billionaires who have lost billions this year (courtesy of Forbes and Business Sheet).

• Brothers Anil and Mukesh Ambani of India's private conglomerate Reliance lost $32.5 billion and $28.2 billion, respectively.
• Warren Buffett, the Sage of Omaha, lost $16.5 billion. Shares of Berkshire Hathaway Inc. (NYSE: BRK.A) are down about 32% since the beginning of the year.
• Microsoft (NYSE: MSFT) founders Bill Gates and Paul Allen lost $12.3 billion and $2.6 billion, respectively, while CEO Steve Balmer lost $6.5 billion. Shares of Microsoft are down 46% since the beginning of the year.
• Larry Page and Sergey Brin, cofounders of Google Inc. (NYSE: GOOG), lost $11.9 billion and $11.7 billion, respectively, and CEO Eric Schmidt lost $3.8 billion. The share price of Google has fallen 55% since the beginning of the year.
• Larry Ellison, CEO of Oracle Corp. (NASDAQ: ORCL), lost $8.2 billion. Shares of Oracle are down 21% since the beginning of the year.
• Media maven Sumner Redstone lost $7.2 billion. Shares of his private investment firm National Amusements fell 70% this year.

Continue reading Money losers of 2008: Billionaires who lost billions this year

Money losers of 2008: Billionaires who lost billions this year originally appeared on BloggingStocks on Wed, 24 Dec 2008 12:30:00 EST. Please see our terms for use of feeds.