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Blackstone makes net loss of USD121m in Q1

The Blackstone Group made a GAAP net loss of USD121m in the first quarter of 2010, an improvement from the net loss of USD232m in the first quarter of 2009.

Economic net income of USD360m in the first quarter of 2010 was up significantly from negative USD82m for the first quarter of 2009.

Net fee related earnings for the first quarter of 2010 were USD99m, up from USD90m for the first quarter of 2009.

Distributable earnings were USD149m, up from USD77m in the first quarter of 2009.

Assets under management totalled USD98.1bn at 31 March 2010, up from USD92.2bn at 31 March 2009.

Blackstone has declared a quarterly distribution of USD0.10 per common unit.

For the first quarter of 2010, total segment revenues were USD711.1m, up significantly from USD45.8m for the first quarter of 2009. The improvement was driven by increases in performance fees and allocations and investment income derived from an increase in the carrying value of the underlying portfolio investments in the private equity, real estate and credit and marketable alternatives segments. These increases were partially offset by decreased fees earned in the financial advisory segment.

Stephen A. Schwarzman, chairman and chief executive officer, says: “We are witnessing a positive trend in most asset classes as the economic recovery takes firmer root and the outlook for growth improves. We are seeing concrete signs of economic improvement in our portfolio, and as a result, the carrying value of investments in Blackstone funds rose meaningfully in the first quarter. During the downturn Blackstone protected investors’ capital and now, as the largest and most diversified independent manager of private investments for public institutions, we are very well positioned to take advantage of opportunities in a reviving world.”

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