New Blackstone Buyout Fund Is Short On Cash

steveschwarzman tbi

Even in this second era of cheap money, when investors can’t find enough risky assets to invest in, Blackstone (BX) is having troulbe raising cash.

NYPost: Sources tell The Post that despite hopes of raising a fund as large as $20 billion or more, Blackstone’s tally thus far has reached at most $9 billion since fundraising began in early 2008. Seven billion dollars of that was achieved by July 2008. While in one sense the slow going represents an embarrassment for the high-profile Schwarzman and his private-equity firm, it’s also a hit to Blackstone’s bottom line, because the bigger a fund is, the more money it collects on fees and commissions from profits.

Blackstone’s fundraising challenges come just a week after reports surfaced that the PE firm was considering taking public eight companies in its portfolio.

Although that news helped send Blackstone’s shares up 9 per cent last week, a source close to Blackstone suggested that news could have been part of a broader effort to prove to would-be investors that the firm hasn’t lost its knack for making money. Blackstone shares closed down 49 cents Friday to $16.24. Read the whole thing >

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