NEW YORK – Private equity firm Blackstone Group (BX) said on Monday that second-quarter net income more than tripled, boosted by merger and real estate deals, sending its units up nearly 8 percent.
Revenue also tripled, but missed Wall Street expectations in Blackstone's first earnings report as a publicly traded company.
Net income jumped to $774.4 million from $224.1 million a year earlier.
Excluding amortization, goodwill and other noncash charges, earnings rose to 46 cents a unit from 11 cents. Analysts on average had expected 40 cents, according to Reuters Estimates.
A symbol of American super-wealth amid a global mergers and acquisitions boom, Blackstone raised net proceeds of about $7.5 billion from its initial public offering in late June. But deal activity has slowed considerably since then.
Blackstone Chairman Stephen Schwarzman said challenging financial conditions that started in the last week of the second quarter continued to weigh on the company. He cited turmoil in the U.S. housing market, stalled leveraged buyouts of corporations and escalating defaults with risky subprime mortgages.
Blackstone's revenue surged to $975.3 million from $324.6 million. Analysts had expected $991.54 million.
Corporate private equity revenue increased to $426.1 million from $125.6 million. Real estate revenue rose to $320.2 million from $92 million.
Blackstone units debuted at $31 each in June. They rose as high as $38 on that day, but closed on Friday at $25.28.