Published On: Fri, Mar 6th, 2015

Low Oil Prices Mean New Projects for Blackstone

Blackstone is devoting $10 billion to energy-related projects


Falling oil prices are keeping Blackstone busy with new opportunities.

Tim Coleman of Blackstone told Bloomberg, “You can’t have your price (oil prices) drop 50% and not have issues. We are probably looking at 80 names that are, in some form or another, struggling. We have a lot of new assignments, on the debtor side and on the creditor side.”

Blackstone has opportunities to lend to troubled oil companies, buy out others or affect restructuring. President Tony James said Blackstone is investing $10 billion into energy projects. Recently Tony James sold 2 million shares of Blackstone at average prices between $37.93 and $38.67 just before the company’s shares reached a record high of $39.62, according to Bloomberg.

James was recruited by founder Stephen Schwartzman in 2002, and has been selling shares in recent years; in 2013, James sold 8.25 million. James says he isn’t considering leaving the company.

Blackstone is also selling AlliedBarton Security for an estimated $1.5 billion, Reuters reports. The firm has hired Credit Suisse to run an auction for AlliedBarton. An AlliedBarton representative told Reuters, “Management believes it is time to seek a new private equity sponsor. We have recently launched that process as it is critical to our ongoing growth strategy.”


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