Brighter 2017 for blackstone


Entering 2016, we were concerned about market volatility, lower IPO activity, and tighter credit markets making it difficult to exit investments and make new leveraged deals. Live charts uk The weaker level of exits in private equity hurt incentive income, and we were also concerned that a decline in the level of exits meant less capital for limited partners to recycle into new funds, reducing Blackstone’s inflows. Future of marketing 2016 We were optimistic that there would be more investment opportunities available, though the pricing environment was difficult with more than $800 billion in dry powder across the industry and median deal multiples at more than 10 times EBITDA, according to PitchBook data, far higher than recent years.

Euro fx Broadly, with more aggressive economic growth, deregulation, and lower taxes on deck, we think these trends will take precedence in 2017, improving the industry outlook by accelerating exits at portfolio companies, investment returns, and investment activity and offering the potential for an attractive C-corporation conversion from a limited partner structure.

Blackstone is unique among publicly traded alternative asset managers in that it has scale across multiple key asset areas (real estate, private equity, credit, and hedge fund allocation). Python tutorial google This means that it is nearly always a contender for new assets, as it has access to more than 1,300 limited partners and more than 900 investment professionals. Usd to inr forecast 2016 Furthermore, we estimate that 60%-70% of Blackstone’s limited partners invest in more than one fund, and about 20% invest across all four major Blackstone divisions, a sign of a very strong cross-selling platform. Usa today puzzles Because of the broader scale of Blackstone’s operations, the firm is able to better anticipate limited partner desires and develop or acquire new strategies ahead of peers, as well as put more money behind its best investments thanks to idea sharing, generating better-than-average fund performance and increasingly serving as a one-stop shop for limited partners.

We also think the transaction illustrates the breadth of Blackstone’s product portfolio, which is a significant advantage for closing complex deals. Euro to aud conversion Blackstone is acquiring assets from GE through its global real estate fund, its European real estate fund, its real estate debt fund, and its publicly traded commercial mortgage REIT. 45 usd The depth of Blackstone’s product portfolio means that it can acquire multiple types of assets in a single transaction, making it more attractive to a seller compared with buyers that may want to pick and choose certain types of assets. Cny to usd chart Blackstone’s product portfolio also means that it has the capital needed to go after large-scale transactions, as well as the ability to allocate assets to funds and limited partners with similar returns expectations and risk tolerances, strengthening limited partner relationships. Usd cad forecast today Last, Blackstone is plugging EUR 1.9 billion of European and retail assets into existing European and retail platforms, immediately strengthening these assets by aligning them with experienced management teams, and positioning itself for potential platform sale opportunities.

Blackstone’s private equity and real estate investments are highly illiquid. Us stock market futures Tightened credit conditions could limit the firm’s ability to move into new investments, while weak economic conditions and difficult equity and credit markets could affect not only the value of Blackstone’s investments, but also its ability to cash out. Usd to sar converter Investments in real estate also subject the firm to the risks inherent in owning and operating real estate and related businesses and assets. Usd chf exchange rate With incentive and transaction fees accounting for a significant portion of annual revenue, the volatility inherent in these types of fees can have a major impact on the firm. Binary to text Our fair value estimate currently anticipates steady or rising fees across Blackstone’s funds, meaning that it would be too high if fees were to fall.