Blackstone

Haven’t we seen this movie before?

October 14, 2009 in Finance, Risk

In a recent profile of KKR, Breakingviews.com (via the NYTimes) attempted to value the company by taking a look at Blackstone’s operations. I don’t have any comment on the analysis itself, but two excerpts stood out in my mind:

[Blackstone] didn’t do as well collecting performance fees and investment gains because its holdings have been falling in value. But if history is any guide, its investments should rebound.

…

So, although it sounds generous given the last year’s market conditions, it’s not unreasonable to assume those [illiquid assets] might gain 20 percent annually from their current valuations for the next five years.

Does anyone else shudder a little when reading sentences like these?

{ 0 comments }

Giving away $1 billion

June 4, 2009 in News

Former Commerce Secretary and Blackstone co-founder Peter Peterson has written a piece titled “Why I’m Giving Away $1 Billion,” which provides a summary answer in its subtitle: “The moment is overdue for us to become moral and worthy ancestors.” He prefaces his complete argument by observing:

But immediately I began wondering: what do I do with $1 billion? The idea of trying to make the money grow felt empty to me. For my father, who saved or gave away so much of his modest income, the ultimate pejorative was “big spender.” So buying a yacht was out of the question.

One wonders if Steve Schwarzman, the other founder of Blackstone and a renowned “big spender”, is paying attention.

{ 0 comments }