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 >