Credit crunch hurts Blackstone
Private equity firm Blackstone Group says it swung to a loss during the first quarter due to deterioration in the credit and equities markets.
New York-based Blackstone Group LP (BK, Fortune 500), which went public about a year ago near what proved to be the peak of the private-equity funded buyout frenzy, says it lost $251 million, or 97 cents per common unit. Blackstone earned $1.13 billion a year ago faxless payday advances.
Deterioration in credit and equities markets caused Blackstone to lose $188.7 million in performance fees and post a $215.6 million loss from fund investment activities.