When The Blackstone Group (NYSE: BX) went public, many observers -- myself included -- were concerned by the total lack of corporate governance checks and balances.

But at the time, the private equity industry was so hot that Blackstone could do no wrong, and no one cared enough to complain. But now that KKR is mulling a plan to list on the New York Stock Exchange, things could be different. The wheels have come off the industry, at least for now, and the arrogant attitude of "We'll tell you what we feel like telling you and you'll like it" may not play so well.

Continue reading Will private equity finally find good governance with the KKR IPO?

Will private equity finally find good governance with the KKR IPO? originally appeared on BloggingStocks on Thu, 02 Jul 2009 10:50:00 EST. Please see our terms for use of feeds.

While the Blackstone Group (NYSE: BX) is primarily known as a private equity firm, this actually understates things. In fact, it is a diverse global platform that spans hedge funds, corporate advisory and real estate investments.

Actually, the real estate segment is getting bigger. This week Blackstone announced that it raised a $4.3 billion real estate fund with the main focus on opportunities in Europe. It's called the Blackstone Real Estate Partners Europe III fund (for whatever reason, these funds can be a mouthful).

Continue reading Blackstone makes a land grab for Europe

Blackstone makes a land grab for Europe originally appeared on BloggingStocks on Tue, 30 Jun 2009 10:20:00 EST. Please see our terms for use of feeds.

Back in 2007 -- at the height of the private equity bubble -- the Chinese sovereign wealth fund, China Investment Corp. (CIC), agreed to invest $3 billion in Blackstone (NYSE: BX). Of course, it was a disaster. In all, the investment lost roughly two-thirds of its value.

Despite all this, it looks like CIC hasn't given up on Blackstone. In fact, according to a piece in the Wall Street Journal, CIC is prepared to invest $500 million into a Blackstone hedge fund vehicle.

Continue reading China cozies up with Blackstone again

China cozies up with Blackstone again originally appeared on BloggingStocks on Fri, 19 Jun 2009 09:30:00 EST. Please see our terms for use of feeds.

Blackstone Group co-founder Peter Peterson has elected to donate $1 billion -- which he calls the "vast majority" of his "net proceeds" from the company -- to his very own Peter G. Peterson Foundation. The foundation prints a mission statement on its website:

Our mission is to increase public awareness of the nature and urgency of key economic challenges threatening America's future and accelerate action on them. To meet these challenges successfully, we work to bring Americans together to find sensible, sustainable solutions that transcend age, party lines and ideological divides in order to achieve real results.

Continue reading Peter Peterson gives $1 billion to anti-national debt group

Peter Peterson gives $1 billion to anti-national debt group originally appeared on BloggingStocks on Thu, 04 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

Not long ago, the private equity firm, Fortress Investment Group LLC (NYSE: FIG), appeared to be in deep trouble. But things are looking better now, as the stock price has gone from $1 to $4.65 this year.

In fact, Fortress is now pulling the trigger on some deals. Just this week, the firm teamed up with Crestview Partners LP and Lightyear Capital LLC to invest $450 million in First Southern Bancorp (Lightyear is operated by Donald Marron, who was the former chief of PaineWebber Group).

Continue reading Fortress storms a bank

Fortress storms a bank originally appeared on BloggingStocks on Sun, 31 May 2009 14:10:00 EST. Please see our terms for use of feeds.

I've got a deal that you can't refuse. How would you like to buy a bank worth nearly $13 billion by assets for a measly $900 million?

That's what a group led by Blackstone Group LP (NYSE: BX) did. The bank in question is BankUnited, which failed and was taken over by the FDIC. Regulators decided to put it up for auction. Blackstone will share in $10.7 billion of the bank's 12.8 billion in assets. The government will will take 80% of the first $4 billion in losses and 95% of any remaining losses. In return the government will receive warrants giving it a share on any further upside.

Continue reading Blackstone consortium buys BankUnited on the cheap for $900 million

Blackstone consortium buys BankUnited on the cheap for $900 million originally appeared on BloggingStocks on Fri, 22 May 2009 15:30:00 EST. Please see our terms for use of feeds.

In what could be the most watched private equity deal of the year, a consortium of buyout firms led by billionaire investor Wilbur L. Ross has set its sights on BankUnited Financial Corp. (NASDAQ: BKUNA), says the Wall Street Journal (subscription required). The consortium includes Carlyle Group and Blackstone Group (NYSE: BX).

Earlier this year, federal regulators declared that the Florida-based lender was "critically undercapitalized" and demanded that it find a buyer or raise new capital. While regulators have traditionally favored other lenders in sales of banks, if Ross's group is successful, it would not only be one of the largest acquisitions in the financial-services sector made by private equity, but could also signal a shift in the government's attitude toward private-equity buyers of banks.

Continue reading BankUnited deal to open the door to private equity acquiring banks?

BankUnited deal to open the door to private equity acquiring banks? originally appeared on BloggingStocks on Mon, 18 May 2009 15:20:00 EST. Please see our terms for use of feeds.

In the middle of 2007, the private equity industry started to crumble as the credit crunch shocked the U.S. financial system. Since then, it's been particularly tough for dealmakers.

Yet, according to a cover story in BusinessWeek, the good days may be here again. In fact, private equity may even help the economy get out of its funk.

And, there is historical precedent. Back in the early 1990s, private equity funds were a key source of restructuring and capital infusions. Interestingly enough, some of the players included the Blackstone Group (NYSE: BX), Carlyle and Apollo (yes, these are now some of the largest funds in the world).

But there's a big difference: Private equity funds now have about $1 trillion in capital to put to work.

Continue reading Will private equity save the world?

Will private equity save the world? originally appeared on BloggingStocks on Wed, 13 May 2009 12:30:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Alcatel-Lucent (NYSE: ALU) shares rose even though it reported a wider loss for the quarter.
• American Express Co. (NYSE: AXP) posted better-than-expected Q1 results but warned of challenges.
• Blackstone Group (NYSE: BX) reported a net loss and slumping revenues for the first quarter.
• Center Financial Corp. (NASDAQ: CLFC) was downgraded following its Q1 earnings report.
• Cisco Systems Inc. (NASDAQ: CSCO) posted lower Q3 earnings that still topped analysts estimates.

Continue reading Earnings highlights: Disney, Cisco, News Corp., Marvel, Sirius, Blackstone and more

Earnings highlights: Disney, Cisco, News Corp., Marvel, Sirius, Blackstone and more originally appeared on BloggingStocks on Sat, 09 May 2009 12:40:00 EST. Please see our terms for use of feeds.

When the Blackstone Group (NYSE: BX) reported its Q4 results, the company's CEO, Stephen Schwarzman, said that the stock price was "dimwitted." Well, since then, the stock price has surged from $4.87 to $13.44

What happened? Perhaps it's the fact that the financial system has stabilized.

But, if you take a look at the Q1 results (announced yesterday) for Blackstone, things still look ugly. In fact, on the conference call, President Tony James gave a particularly negative view on the economy. For the most part, it looks like it will take a long while to get things back on track.

Continue reading Blackstone's stock is 'dimwitted' no more

Blackstone's stock is 'dimwitted' no more originally appeared on BloggingStocks on Thu, 07 May 2009 14:00:00 EST. Please see our terms for use of feeds.

Buyout funds managed by private equity giants Apollo Management LP and Blackstone Group LP (NYSE: BX) are among a growing number of limited partnerships that have experienced sharp declines in value, reports the Wall Street Journal, which highlights the economy's impact on such funds, as well as the influence of mark-to-market accounting.

Apollo and Blackstone recently disclosed to investors the values of their last buyout funds at year-end. Apollo Investment Fund VI LP, a $10.1 billion investment vehicle that closed in 2005, was held at 34% below cost. Perhaps the most notable Fund VI deal is Harrah's Entertainment Inc., which has struggled with its debt covenants. Apollo and TPG Capital LP acquired Harrah's in January 2008 for $27.8 billion.

Continue reading The hits keep coming for private equity funds

The hits keep coming for private equity funds originally appeared on BloggingStocks on Sun, 26 Apr 2009 13:10:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Citigroup upgraded Abbott Lab (NYSE: ABT) to Hold from Sell on valuation following the stock's recent underperformance. The firm maintains a $48 price target.
  
• Deutsche Bank upgraded shares of Pepsi Bottling (NYSE: PBG) and Dr. Pepper Snapple (NYSE: DPS) to Buy from Hold as they believe carbonated soft drinks market is showing signs of stabilization. The firm raised its price target on Pepsi Bottling to $28 from $25 and on Dr. Pepper Snapple to $22 from $20.
  
• Baird upgraded CommScope (NYSE: CTV) to Outperform from Neutral and raised their target to $19 from $10 as they expect fundamentals to bottom in Q1 and ramp strongly in Q2 as wireless capex outlook improves.
• Sinopec Shanghai (NYSE: SHI) was raised to Buy from Sell at Goldman.
  
• TRW Automotive (NYSE: TRW) was upgraded at JP Morgan to Neutral from Underweight.

Continue reading Analyst upgrades, downgrades and initiations: ABT, DPS, BDK, AMZN, GS ...

Analyst upgrades, downgrades and initiations: ABT, DPS, BDK, AMZN, GS ... originally appeared on BloggingStocks on Thu, 02 Apr 2009 11:10:00 EST. Please see our terms for use of feeds.

• Citigroup upgraded Tyco (NYSE: TYC) shares to Buy from Hold on valuation as they believe the recent weakness has created an attractive entry point. The firm lowered its target price to $25 from $26.
  
• Deutsche Bank raised SAP (NYSE: SAP) to Buy from Hold on valuation as it finds the risk/reward attractive at current levels.
  
• Oppenheimer upgraded Onlin Corp (NYSE: OLN) to Outperform from Perform on valuation as it sees strong support at $10 and potential upside to $20. The firm has a $20 target on the stock.
• JP Morgan (NYSE: JPM) and Blackstone (NYSE: BX) were upgraded to Outperform from Market Perform at Keefe Bruyette.
  
• Adobe (NASDAQ: ADBE) was raised to Neutral from Sell at UBS.
  
• Goldman added AT&T (NYSE: T) to the Conviction Buy List.

Continue reading Analyst upgrades, downgrades and initiations: TYC, STT, PNFP ...

Analyst upgrades, downgrades and initiations: TYC, STT, PNFP ... originally appeared on BloggingStocks on Mon, 02 Mar 2009 11:40:00 EST. Please see our terms for use of feeds.

Continue reading Seven things investors can learn from Warren Buffett's annual report

Seven things investors can learn from Warren Buffett's annual report originally appeared on BloggingStocks on Mon, 02 Mar 2009 10:00:00 EST. Please see our terms for use of feeds.

No surprise, the Blackstone Group (NYSE: BX) posted a horrible fourth quarter. The firm, which is massive private equity firm, suffered a loss of $827.1 million. Basically, the firm had to recognize that the values of its portfolio are shrinking. Oh, and there will be no cash distribution for the quarter.

Yet, Blackstone's stock spiked 25% to $4.87.

Continue reading Blackstone's stock is 'dimwitted'?

Blackstone's stock is 'dimwitted'? originally appeared on BloggingStocks on Sun, 01 Mar 2009 10:40:00 EST. Please see our terms for use of feeds.

Who's going to pay for the massive budget deficits? Well, how about the rich folks?

This is certainly a theme in President Barack Obama's 2010 budget. Thus, if you are an alternative asset manager - that is, you operate a private equity firm or hedge fund -- then you may have to pay some big-time taxes. In fact, the bite could add up to $24 billion over the next nine years.

Continue reading New taxes to soak private equity and hedge funds

New taxes to soak private equity and hedge funds originally appeared on BloggingStocks on Fri, 27 Feb 2009 13:30:00 EST. Please see our terms for use of feeds.

Since President Nixon opened the doors to China back in the 1970s, the relationship has certainly been interesting - and complicated. Of course, now China is a critical piece of the global economy and a huge funder of U.S. debt, which is even more important in light of our massive deficit spending.

So, will China continue buying up our Treasuries? Perhaps so. This is according to a piece in the FT. The director general of the China Banking Regulatory Commission, Luo Ping, said there is really no other place to put lots of cash (at least in a safe way). In fact, he wasn't too thrilled with the U.S.'s financial moves over the years. And, he even thinks the U.S. dollar will continue to sink (yes, not really a ringing endorsement from our financial sugar daddy).

Continue reading Chinese regulator hates the US ... but still likes our bonds

Chinese regulator hates the US ... but still likes our bonds originally appeared on BloggingStocks on Thu, 12 Feb 2009 12:58:00 EST. Please see our terms for use of feeds.

Oh how the mighty have fallen.

Not so long ago The Blackstone Group (NYSE: BX) was making headlines for founder Steve Schwarzman's 60th birthday party that featured a one million dollar performance by Rod Stewart.

Well now that bubble has burst, the stock has tanked and Blackstone is in the newspaper for sharing Financial Times subscriptions among employees to save on the $99 per year subscription fee. The problem is that the Financial Times is suing. According to The Wall Street Journal,"The lawsuit, filed in federal court in Manhattan, says a 'senior' Blackstone employee distributed login information for one account to other employees. That account accessed thousands of individual articles from February 2006 to June 2008. The suit describes the use as 'massive' and 'far more than an individual would normally access.'"

Highly unbecoming of the Masters of the Universe, if you ask me.

Blackstone Group sued for sharing login info originally appeared on BloggingStocks on Sat, 31 Jan 2009 12:10:00 EST. Please see our terms for use of feeds.

Continue reading Government's claws waiting for private equity?

Government's claws waiting for private equity? originally appeared on BloggingStocks on Fri, 30 Jan 2009 13:10:00 EST. Please see our terms for use of feeds.

When the financial shenanigans were uncovered by Satyam's (NYSE: SAY) CEO, B. Ramalinga Raju, he gave a memorable quote: "It was like riding a tiger, not knowing how to get off without being eaten."

And, yes, it's also been pretty rough for many investors in India. Just look at the Blackstone Group LLP (NYSE: BX). In fact, according to Reuters, it looks like the experience has been a nightmare.

Over the past three years, Blackstone has invested about $730 million in India. Unfortunately, much of this was done at the peak of the market. Bear in mind that some of Blackstone's investments have lost 70%+ of their value.

True, India still holds lots of promise. To support its massive population, it's critical that the country find ways to grow and build its infrastructure. And, this means that there must be foreign investment.

Thus, India should rethink its investment regulations and try to loosen things up. If not, the recent losses could scare away investors for some time, ultimately crimping the long-term growth rate.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.

Blackstone rides the tiger and gets eaten originally appeared on BloggingStocks on Sat, 24 Jan 2009 16:10:00 EST. Please see our terms for use of feeds.