Asset manager Blackstone Group L.P. (BX), Thursday reported a surge in first-quarter profit, on robust asset sales and increased fees, amid a buoyant stock market. Quarterly earnings came in line with Wall Street estimates, while revenues exceeded expectations.
"Although several of our investment businesses are already the largest of their kind in the world, every one reported year-over-year double-digit growth in total assets under management," said Blackstone Chief Executive Stephen Schwarzman.
New York-based Blackstone reported first-quarter net income of $167.6 million or $0.29 per unit, compared to $58 million or $0.11 per unit last year.
Economic net income for the quarter was $628 million or $0.55 per unit, compared to $491 million or $0.44 per unit a year ago.
On average, 14 analysts polled by Thomson Reuters expected earnings of $0.55 per unit for the quarter. Analysts' estimates typically exclude special items.
Economic net income is a performance metric used for private-equity firms and takes into account the fair-market value of their investments.
Distributable earnings for the quarter were $379 million or $0.33 per unit, compared to $162 million or $0.15 per unit in the prior year.
Revenues for the quarter increased to $1.26 billion from $974 million in the prior year. Analysts on consensus estimated revenues of $1.16 billion for the quarter.
Results were helped by performance fees that jumped 57 percent from a year ago to $604 million, while Investment income surged 62 percent to $134.8 million. Fee revenues climbed 3 percent from last year to $521 million.
Blackstone during the quarter disposed off assets valued $2 billion by selling off shares in companies it had taken public. Stake sales includes those of BankUnited Inc. (BKU), Kosmos Energy Ltd. (KOS), Nielsen Holdings NV (NLSN.
At the end of the quarter, Blackstone had assets under management of $218 billion, an increase of 15 percent from last year.
Blackstone declared a quarterly distribution of $0.30 per common unit, payable on May 6 to unit holders as of April 29.
Blackstone stock is trading at $20.09, down 1.64%, on a volume of 4.1 million shares on the NYSE.
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