Profits treble at Blackstone Group

14 August 2007

Second-quarter profit for Blackstone Group trebled during the second quarter to $774.4 million.

Earnings for the private equity firm during the year ago period had stood at $224.1 million, while total revenue was up to $975.3 million from $324.6 million.

The principal factors behind the improvement were a tripling in fees to $795.4 million, as the funds' money under management increased by more than half to $91.77 billion.

The company also recorded a $179.9 million investment gain compared with a loss on investments in the second quarter last year.

However, while the fund moved to reassure shareholders that it remains ably equipped to fund more blockbuster buyouts, it expects these to slow down in the forthcoming months across the markets.

Blackstone's president Hamilton E James said: "In this environment today, we’re not going to see lot of megadeals. It's just too difficult to get the financing."

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