Blackstone Swings to Loss

Blackstone Group (BX Quote) swung to a third-quarter loss on charges from its initial public offering, while revenue for the period rose 14%.

The private-equity giant reported a third-quarter loss of $113.2 million, or 44 cents a share, compared with a year-earlier profit of $372.5 million. The bottom line was pulled down by $802.6 million in non-cash charges tied to the vesting of stock-based awards from its June IPO and the amortization of intangibles.

Revenue rose to $526.7 million from $461.5 million the prior year.

The quarter was Blackstone's first full period as a public company, and it marked a difficult time for private-equity firms as a freeze in credit financing roiled the markets. Blackstone said it saw the tough financing conditions begin in late June, and they have continued to date. ...