Blackstone Group Inc.
Swept record quarterly profit as a focus on fast-growing companies helped increase the value of the investment over the broader market.
The investment giant posted net income of $ 1.75 billion, or $ 2.46 per share, in the first quarter. That compares with a loss of $ 1.07 billion, or $ 1.58 per share, in the first quarter of 2020 that coronavirus suffered.
The value of Blackstone’s private equity portfolios rose 15.3 percent in the latest period, 5.8 percent higher than the S&P 500’s profits.The company recently focused on growing companies, including online dating platform Bumble. Inc.
And the genealogy company Ancestry.com Inc. drives profits, Jonathan Gray, president of Blackstone, said in an interview.
The growth strategy, which was the result of Mr. Gray̵7;s drive to encourage business leaders of his company, to identify global trends and to invest in companies that benefited from it, made Blacks Stone uses its money in areas such as logistics, business software, digital payments. And life sciences – industries that performed well during the epidemic.
“We feel as good about the business as we have ever felt in terms of the business performance and the responsiveness of our customers,” said Mr. Gray.
Blackstone’s shares just rose 3.9 percent.
The company made a number of investments during the quarter have been linked to the return of travel as the epidemic subsided.
In January, it announced a deal to buy UK-based Bourne Leisure Holdings Ltd., the following month it partnered with Global Infrastructure Partners and Bill Gates’ family office in a $ 4.7 billion deal for the base provider. Private jet Signature Aviation PLC last month joined Starwood Capital Group in a $ 6 billion deal for the hotel owner and operator of Extended Stay America. Inc.,
That was a rare bright spot for the accommodation industry during the epidemic.
Mr Gray said Blackstone remained vigilant about the potential of inflation as the economy reopened.
“The key is buying things that are growing bigger and faster,” said valuation pressures due to inflation, Mr Gray said.
Blackstone’s distributed income, or the amount of cash it could return to shareholders, was $ 1.19 billion, or 96 cents per share, in the first quarter. That compares with $ 557.1 million, or 46 cents per share, last year.
The company realized $ 8.1 billion in asset sales this quarter, including from its initial public offering of Bumble in February, the $ 9 billion Paysafe Group Holdings Ltd. merger with the empty check firm and Acrisure LLC Insurance Broker Sales and Utility Electricity GridLiance
The private equity giant said it would pay dividends of 82 cents per share for the quarter, compared with 39 cents a year earlier.
Blackstone’s fee-related income rose 58% year over year to $ 740.8 million.The biggest contributor to fee-related income was the Core Strategy + Real Estate, which bought stable assets on a moderate amount of debt. And has a long investment scope The business had $ 77 billion in assets at the end of the first quarter, Blackstone said Thursday.
The company had inflows of $ 31.6 billion during the quarter, bringing total assets under management to $ 648.8 billion, up from $ 618.6 billion at the end of 2020 and $ 538 billion a year earlier. Blackstone is targeting $ 1 trillion in assets by 2026.
The so-called Permanent Capital, which creates a constant stream of locked fees because it doesn’t need to be quickly returned to investors, reached $ 149.1 billion, up 47 percent from the first quarter of 2020.
Write to Miriam Gottfried at Miriam.Gottfried@wsj.com
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