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A Peek at Blackstone’s Hedge Fund Solutions

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Increase in total revenue

Blackstone’s (BX) hedge fund solutions division saw total revenue of $264.2 million in 1H16 and $380.9 million in 1H17, reflecting a 44% rise. This substantial rise was due to investment income and performance fees.

The division’s total investment income rose from -$8.2 million in 1H16 to $29.4 million in 1H17, due to strong investment appreciation. Its total performance fees in 1H16 stood at $1.3 million, compared with $88.3 million in 1H17. This substantial increase was due to realized incentive fees. Its realized incentive fees rose from $2.4 million in 1H16 to $21.6 million in 1H17.

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Expected net income

Blackstone is expected to report net income of $831.5 million in 3Q17. Other alternative asset managers’ (XLF) expected net income for 3Q17 is as follows:

  • The Carlyle Group (CG), $143 million
  • Apollo Global Management (APO), $226.8 million
  • KKR (KKR), $458.5 million
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