No private-equity blues for Blackstone
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Scott Jagow: The clamp down in the credit market has stopped the private-equity buyout boom dead in its tracks. But this morning, the private-equity firm Blackstone Group turned in a stellar profit report from last quarter. Remember, Blackstone just went public in June. More now from Amy Scott.
Amy Scott: Blackstone made more than $770 million between April and June of this year. That's more than three times what it earned the same quarter last year.
It's a strong start to the firm's new life as a public company. Its stock debuted in late June. But the second quarter ended just as the recent problems in the credit market began.
Reena Aggarwal: The past has been good. But the future is going to be somewhat more challenging.
Reena Aggarwal teaches finance at Georgetown University. She says Blackstone may have more trouble getting financing, but it's hardly hurting. Just last week, the firm finished raising the biggest buyout fund in history — more than $21 billion.
Aggarwal: They're certainly keep making deals. But they'll have to look at the deals far more carefully.
So far, investors are unimpressed. Blackstone's shares have fallen about 30 percent since its IPO.
In New York, I'm Amy Scott for Marketplace.