4. Blackstone (BX) is an alternative-investment company, structured as a publicly traded partnership, which invests roughly $104 billion of fee-generating assets in private equity, real estate and hedge funds. The firm also has an advisory unit, offering merger and acquisition, restructuring and reorganization assistance. It's currently overseen by billionaire investor Stephen Schwarzman.
Goldman expects several of Blackstone's funds to surpass so-called high-water marks and to resume charging performance fees in 2011. Furthermore, It thinks funds could attract another $7 billion. Blackstone reported quarterly results Feb. 3.
Blackstone posted fourth-quarter economic net income, profit excluding taxes and certain charges, of 46 cents a share, beating Goldman's estimate of 30 cents. On a GAAP basis, the company's loss decreased 92% to $11 million, or three cents a share, from $143 million, or 46 cents, a year earlier. Its 32 cent distribution beat Goldman's forecast of 24 cents. Goldman boosted its price target to $20 in reaction to the report. It now expects 86 cents of 2011 distributions, equivalent to a yield of more than 5%. Goldman says Blackstone is "in the sweet spot for both growth and income (from rising distributions amid portfolio realizations) and we still see room for further multiple expansion."
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