uploads/2018/04/hedge-funds-1.png

Blackstone’s Hedge Fund Solutions Revenue Falls

By

Updated

BPS Composite

In 1Q18, The Blackstone Group’s (BX) Hedge Fund Solutions saw an inflow to its total AUM (assets under management) of $3.9 billion. During the same period, the BPS Composite witnessed a 1.3% gross return and a 1.1% net return amid market fluctuation. Hedge Fund Solutions’ total revenue fell 23% YoY (year-over-year) to $140.4 million from $182.2 million, and its principal investment income fell 94% YoY to $1 million from $17.6 million. The division’s performance revenue also fell YoY, to $15.2 million from $33.4 million.

Article continues below advertisement

Total expenses and assets under management

In 1Q18, Hedge Fund Solutions’ total expenses fell YoY to $83.9 million from $84.2 million, and its performance compensation expenses fell 37% YoY to $8.6 million from $13.7 million.

Its total AUM rose 7% YoY to $78.7 billion, mainly due to strategies. The division’s fee-generating AUM stood at $73.6 billion, representing a 7% rise YoY. While Blackstone had a market capitalization of $38.2 billion on April 23, peers (XLF) Brookfield Asset Management (BAM), Ares Management (ARES), and Ameriprise Financial (AMP) had market caps of $35.5 billion, $4.9 billion, and $20.9 billion, respectively.

Check out all the data we have added to our quote pages. Now you can get a valuation snapshot, earnings and revenue estimates, and historical data as well as dividend info. Take a look!

Advertisement

More From Market Realist