Blackstone trims losses to $232 million in Q1

07 May 2009

Blackstone Group LP, one of the world's leading investment and advisory firms, narrowed its losses for the first quarter of 2009 aided by higher management and advisory fees.

 The private equity major said on Wednesday its net losses for Q1 stood at $232 million, including transaction-related charges of $192 million, as compared to a net loss of $251 million in the first quarter of 2008, which included transaction-related charges of $226 million.

''Blackstone continues to focus on its core investment and advisory businesses amidst a dynamic and challenging economic and market back-drop,'' said Stephen A. Schwarzman, chairman and chief executive officer.

"The underlying economy continues to decline," Tony James, the company's president and chief operating officer, said about weakening results.

He reiterated that the current economic downturn is deeper and more severe than those in recent history, adding that a turnaround is still uncertain.

The company's management and advisory fees were $344.6 million, up from $320.8 million in the first quarter of 2008 and down from $389.2 million in the fourth quarter of 2008. Fee earning assets under management were approximately flat at $92.2 billion versus $92.9 billion as on 31 March 2008 and up from $91 billion as on 31 December 2008.