BX

BlackStone Group LP

Finance/Real Estate


Presented:01/09/2019
Price:$31.74
Cap:$21.02B
Current Price:$156.32
Cap:$190.93B

Presented

Date01/09/2019
Price$31.74
Market Cap$21.02B
Ent Value$61.72B
P/E Ratio11.85x
Book Value$10.44
Div Yield7.91%
Shares O/S662.29M
Ave Daily Vol6,584,775
Short Int4.26%

Current

Price$156.32
Market Cap$190.93B
Blackstone Group LP engages in the provision of investment and fund management services. It operates through the following segments: Private Equity, Real Estate, Hedge Fund Solutions, and Credit. The Private Equity segment consists of flagship corporate private equity funds, Blackstone Capital Partners funds, sector-focused corporate private equity funds, including energy-focused funds, Blackstone Energy Partners funds, and core private equity fund, Blackstone Core Equity Partners. The Real Estate segment includes management of core real estate fund and non-exchange traded restate investment trusts. The Hedge Fund Solutions segment comprises of Blackstone Alternative Asset Management, which manages hedge funds and includes Indian-focused and Asian-focused closed-end mutual funds. The Credit segment includes GSO Capital Partners LP, which manages credit-oriented funds. The company was by founded by Stephen Allen Schwarzman in 1985 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Ares Management Corp (ARES), Blackstone Group LP/The (BX), KKR & Co Inc (KKR)

Highlights

The presenter thinks the timing is right to buy the alternative asset managers (Alts), and he favors Blackstone (BX) at ~$32 per share. Historically, the risk/reward with Alts has been favorable following large drawdowns. Recent bearishness for what the presenter believes to be the wrong reasons (e.g., credit risk, late cycle concerns, etc.) resulted in a selloff from the high $30s to the high $20s during Q4 ‘18. Only a small fraction of BX’s assets under management (AUM) have exposure to higher risk corporate credit, and the firm enjoyed a solid 2018 in terms of inflows ($125B over the 12-month period ending Q3 ‘18). With nearly $500B of AUM, >5-year lockups, a strong fundraising pipeline, flexibility on exits, and the potential for a conversion to a C Corp (from an LP), the presenter sees meaningful upside potential for patient shareholders.

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Idea Discussion

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