Blackstone‘s latest quarter saw it reap huge rewards from private equity, although real estate has hurt the company. Nonetheless, the fact the alternate investment firms diversified holdings allows it to weather short-term declines in some sectors. Net income from its business as a whole decline 6%, but net income from private equity doubled, according to the New York Times.
Blackstone’s real estate business declined 38% over the year, but this apparent shortfall could have been the difficult comparisons from a year earlier, when the company cashed in on the Hilton Worldwide IPO. Net income fell 57% in credit markets, and Blackstone CEO Stephen Schwartzman said demand for low-rated debt fell.
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Schwartzman said he is planning to invest in the energy sector which has been troubled by falling commodity prices, and. Some of Blackstone’s peers in the sector have been buying up debt from oil companies and investing in depressed assets. Stephen Schwartzman said in a statement, “Looking forward, we see continued momentum across all of our businesses as the environment for both investing opportunistically and harvesting more seasoned assets becomes attractive.”
