The Blackstone Group has reported its net income at a loss of $93 million for the first quarter of 2009. This compares favourably to the loss of $827m in the last quarter of 2008 and almost matches the first quarter of 2008’s loss of $94 million.
Net fee related earnings from operations were $90 million for the first quarter of 2009, up 32% from the first quarter of 2008.
Adjusted cash flows from operations were $75 million during the first quarter of 2009, up from minus $4 million for the first quarter of 2008.
“Blackstone continues to focus on its core investment and advisory businesses amidst a dynamic and challenging economic and market back-drop,” says Stephen A Schwarzman, chairman and CEO of Blackstone. “We are a beneficiary of an altered competitive landscape, as Blackstone remains a trusted and stable partner to its institutional investors, advisory clients and employees. We will continue to channel the firm’s intellectual capital across business units to navigate market dislocations and find attractive investments with a favourable risk-reward balance.”
Blackstone was recently awarded a top rating by Standard & Poor. The ratings agency has warned, however, that an increase in leverage or poorly-performing investments could result in a downgrade by the ratings agency.
D.C.