BX - The Blackstone Group L.P.

NYSE - NYSE Delayed price. Currency in USD
+0.22 (+0.41%)
At close: 4:02PM EST

54.03 -0.11 (-0.20%)
After hours: 5:03PM EST

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Previous close53.92
Bid54.21 x 800
Ask54.54 x 1400
Day's range53.95 - 54.77
52-week range26.88 - 55.17
Avg. volume6,688,712
Market cap64.934B
Beta (3Y monthly)1.39
PE ratio (TTM)98.26
Earnings dateN/A
Forward dividend & yield1.96 (3.66%)
Ex-dividend date2019-11-01
1y target estN/A
  • Bloomberg

    Blackstone’s Jon Gray Donates $10 Million for Financial Aid at UPenn

    (Bloomberg) -- In his senior year at University of Pennsylvania, not long before accepting an offer to work at Blackstone Group Inc., Jon Gray put down a book at the library to ask out Mindy Basser.Last week, the couple, married for 24 years, were back on campus for a study break with a different kind of chemistry: after visiting Bennett Hall where they took a Romantic poetry class together, they walked across the quad to meet the freshmen whose tuition and expenses they’ve agreed to cover for the next four years.The Grays, both 49, are giving the university $10 million to support 10 students from New York City annually, the university will announce on Monday. The gift will also provide funding for Penn First Plus, which seeks to give the full college experience to low-income and first-generation students.“Everybody recognizes equality of opportunity is really important,” Jon Gray, president of Blackstone, said in a telephone interview. “There are lots of ways to help kids at higher income levels get to these schools. The idea here is we’re looking to help low-income people whose families haven’t been to universities.”“It’s about really feeling embraced on campus and access for summer internships and access to study abroad, and not just the base-line tuition,” said Mindy Gray, who with three older siblings was the first generation of her family to attend college, which her now 101-year-old dad “worked hard to be able to afford.”Reducing burdensome student debt has become a focus of universities, philanthropists and presidential candidates looking to address growing income inequality. President Donald Trump has asked aides to come up with a plan to counter those of Elizabeth Warren and other Democrats, according to a Washington Post report last week. Princeton University recently exempted students on financial aid from contributing their summer earnings. Vista Equity Partners’ Robert Smith promised to payoff off the student loans of Morehouse College’s 2019 graduates.The cost of a year at Penn, including tuition and expenses like books and transportation, is $78,186, according to the university’s website.For the Grays, the gift is a “natural extension” of their foundation’s work with New York City youth, representing $100 million in funding so far, Jon Gray said. Grants have helped families in Queens start college savings accounts and opened school-based health clinics in the Bronx. Their focus on New York youth is because the city has been their home for almost 30 years, where they raised four daughters and where Jon Gray built his career in private equity. The Grays are worth $3.3 billion, according to the Bloomberg Billionaires Index.“Our children are living in the city and have access to incredible opportunity, and others who live close by don’t,” Mindy Gray said.The gift also stems from a commitment to Penn, starting with a $19.92 contribution in the year they graduated. It has since grown to include more than $55 million to found and operate the Basser Center for BRCA at Penn Medicine, named for Mindy’s sister Faith, who died from BRCA-related ovarian cancer.While that gift was tied to the loss of a loved one, the financial aid donation connects the Grays to the Romantic poetry class where they fell in love.Mindy, by the way, got the better grade. “I was smitten,” Jon Gray said. “I lost my focus.”To contact the reporter on this story: Amanda Gordon in New York at agordon01@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Steven Crabill, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone’s Buyout of Coffee Day’s Tech Park Stalls

    Blackstone’s Buyout of Coffee Day’s Tech Park Stalls

    (Bloomberg) -- Beleaguered Coffee Day Enterprises Ltd.’s sale of its technology park to Blackstone Group Inc. is stalled as one of its creditors hasn’t approved the deal, people with the knowledge of the matter said.Yes Bank Ltd. hasn’t issued the so-called no objection certificate as it’s seeking assurances on repayments of other loans taken by Coffee Day, said the people, asking not to be identified as the information isn’t public. All other creditors have approved the transaction, the people said.Shares of Coffee Day fell 8.9% to close at 43.85 rupees. The stock dropped as much as 14.5% earlier Monday in its biggest intra-day decline since July 31.Coffee Day, which runs India’s largest coffee chain, has been trying to sell its assets to repay its debt after the unexpected death of its founder billionaire V.G. Siddhartha. On Aug. 14, the company announced that it has entered into a non-binding letter of intent to sell Global Village Tech Park to Blackstone in a deal valued at 26 billion rupees ($366 million) to 30 billion rupees.Tanglin Developments Ltd., a unit of Coffee Day that controls Global Village Tech Park in Bangalore, owes Yes Bank about 1 billion rupees, according to the people. In addition, Coffee Day also owes the lender about 14 billion rupees, the people said.Yes Bank could eventually approve the transaction, one of the people said. Representatives for Blackstone, Coffee Day and Yes Bank declined to comment.(Updates Coffee Day’s shares to closing level in third paragraph.)To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;Anto Antony in Mumbai at aantony1@bloomberg.netTo contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Anto AntonyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Denmark Property Market Could Lose 10%  of Value if Speculation Banned

    (Bloomberg) -- As some of Denmark’s pension funds prepare to write down their property portfolios, the country’s housing minister says he would find a 10% market decline an acceptable outcome as he tries to alter the law to prevent speculation.The comments follow a heated debate in Denmark, largely centered on Blackstone Group Inc. Kaare Dybvad, the minister for housing in the Social Democrat government, says the firm represents an “infamous” business model in which properties are bought, renovated and then put back on the market at rents that tenants can’t afford. Blackstone says that it follows the law and that it represents too small a chunk of the Copenhagen real estate market to affect prices.This week, Dybvad unveiled a proposal designed to protect tenants. Instead, he drew criticism from Denmark’s pension industry, which says the plan is so broad that it undermines longer term investment in the property market.But those warnings aren’t enough to shake Dybvad’s resolve.“I can live with smaller losses since the market has doubled within the past five years,” Dybvad said in an interview on Friday. “Against that background, I can live with losses at 10%, for instance.”Read more about Dybvad’s proposal, and the pension industry’s responsePension funds have started to estimate the scale of their losses, if Dybvad’s plan goes ahead. Michael Nellemann Pedersen, chief investment officer at PKA Pension in Copenhagen, called the proposal “a step back;” he also said the corner of the fund’s real-estate portfolio that’s affected by the law will drop by about 15% if the government’s proposal becomes reality.The pension industry now faces losses in an asset class that had stood out as an engine for returns in an era of negative interest rates. Denmark’s central bank first went below zero in 2012, and has negative rates longer than any other country.Dybvad said that his proposal still leaves incentives to buy commercial properties. “So I do not think the investment case has been significantly degraded,” he said.For now, the pension industry is asking the government to consider revising its proposal to make it target firms like Blackstone more specifically. It’s a view echoed by lawmakers.In an emailed comment, James Seppala, Blackstone’s head of real estate in Europe, said the firm’s focus is “on making long term investments in local housing with a simple goal of operating and maintaining homes to the highest standards. The company is also committed to supporting local priorities by adding to new supply and making units more environmentally sustainable.”Heidi Bank, who sits on the parliament’s housing committee for the opposition Liberal Party, says tenants’ rights would be better protected by empowering Denmark’s housing tribunal, which presides over disputes between landlords and renters.Meanwhile, Dybvad says he wants to make his proposal retroactive. His ministry is currently looking into whether such a goal would be based “on solid ground, legally.”The government is set to sit down with industry representatives to go over Dybvad’s proposal in the coming weeks. The minister says he expects an agreement to be reached either before Christmas or in January.(Adds Blackstone comment)\--With assistance from Christian Wienberg.To contact the reporter on this story: Morten Buttler in Copenhagen at mbuttler@bloomberg.netTo contact the editors responsible for this story: Christian Wienberg at cwienberg@bloomberg.net, Tasneem Hanfi BröggerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone Group (BX) Gains But Lags Market: What You Should Know

    Blackstone Group (BX) Gains But Lags Market: What You Should Know

    In the latest trading session, Blackstone Group (BX) closed at $53.94, marking a +0.78% move from the previous day.

  • Blackstone awaits Unizo response on $1.6 billion buyout proposal

    Blackstone awaits Unizo response on $1.6 billion buyout proposal

    Blackstone Group said on Friday it is waiting for Japanese hotel operator Unizo Holdings to respond to its $1.6 billion (1.25 billion pounds) takeover proposal. Blackstone in October emerged as a bidder for Unizo and told the hotel chain it would launch a tender offer or explore other options if Unizo did not agree to its offer by a deadline, which it keeps extending. Blackstone said it was waiting for Unizo's formal written response on its latest proposed transaction terms.

  • Denmark Unveils Anti-Speculation Plan Targeting Blackstone

    Denmark Unveils Anti-Speculation Plan Targeting Blackstone

    (Bloomberg) -- Denmark has put together a plan to halt short-term property speculation after months of tense debate triggered by a spate of purchases by Blackstone Group Inc.Housing Minister Kaare Dybvad unveiled a number of steps that include a decade-long moratorium on rent hikes. The question now is whether the measures are too broad as members of Denmark’s $450 billion pension industry warn that the government risks choking investment.The revised legislation will ensure that landlords can only push through rent hikes in connection with renovations after they’ve owned a property for 10 years (the rule won’t affect other categories of rent adjustments). The Social Democrat government is also raising environmental requirements for such renovations.Dybvad says he’s confident the plan will only hit speculators and protect long-term investors. But he already faces considerable push-back from lawmakers and Danish institutional investors.Pension Funds React“We acknowledge that there are problems in corners of the industry,” said Michael Bruhn, head of real estate investments at PFA Pension, which manages about $100 billion. “But we’re worried that the minister’s proposal is too broad and will, in practice, mean that necessary investments and renovations will grind to a halt.”Bruhn said the 10-year rule is “particularly problematic.” PFA has about $450 million in properties that will be affected, he said.“We’d rather see a plan that specifically targets the rotten apples, instead of hitting all property investors, including several Danish pension firms,” Bruhn said.Dybvad has repeatedly singled out Blackstone as an example of an investor that he has called “infamous” for its business model. The minister has accused the firm of exploiting “holes” in existing laws to drive up rents. At the same time, Dybvad has said that revised legislation wouldn’t only target Blackstone, and that the new rules will affect all landlords with short-term interests.Blackstone has said it owns too small a chunk of the Copenhagen market to materially influence rents, an assertion that is backed up by the Danish Property Federation. It has also said it’s a long-term investor with a goal of improving the properties it owns, and that it complies with the law.Lawmaker TalksDybvad held talks with lawmakers over several weeks before putting forward his plan. A formal vote following negotiations has yet to take place.Jens Rohde, a member of parliament’s housing committee for the Social Liberal Party, said there’s no agreement yet inside the government bloc. “I still have plenty of questions about the 10-year freeze” on rent hikes, he said.The revised rental law will aim to protect Denmark’s cooperative housing projects, according to Dybvad. But he has yet to convince lawmakers of that.Heidi Bank of the opposition Liberal Party told broadcaster TV2 that the government’s plan was too simplistic. She also questioned whether the proposal will ultimately help tenants, as intended.Mette Hjermind Dencker, who represents the opposition Danish People’s Party on the parliament’s housing committee, said the 10-year rule goes too far. “It will hurt renters and cooperative owners and property conditions will deteriorate,” she said.(Adds lawmaker comments throughout)\--With assistance from Christian Wienberg.To contact the reporter on this story: Morten Buttler in Copenhagen at mbuttler@bloomberg.netTo contact the editors responsible for this story: Tasneem Hanfi Brögger at tbrogger@bloomberg.net;Christian Wienberg at cwienberg@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Buyout Firm PAI Partners Acquires Blackstone’s Armacell

    (Bloomberg) -- Buyout firm PAI Partners reached an agreement to take control of Armacell International, which makes insulation products used by the International Space Station.Blackstone Group Inc. is exiting its investment in Armacell through the deal, PAI said in a statement on Wednesday, confirming a Bloomberg News report. PAI is acquiring a majority stake in a transaction valuing the business at about 1.4 billion euros ($1.6 billion) including debt, a person familiar with the matter said, asking not to be identified as the information is private. Kirkbi AS, owned by the family behind the Lego toy brand, will increase its stake in Armacell to a significant minority holding, according to the statement. It didn’t provide financial details.“Under the leadership of its existing management team, Armacell has delivered consistent growth,” PAI Partner Mathieu Paillatt said in a statement. “We expect to drive Armacell’s further expansion through product innovation, commercial excellence and a number of strategic acquisitions.”Blackstone and Kirkbi bought Armacell from Charterhouse Capital Partners in 2015 and have been exploring a sale, Bloomberg News reported in July. The sale had attracted initial interest from other buyout firms and pension funds, people familiar with the matter said in November.A sale of the business would come at a time when private equity firms are deploying billions of dollars of capital on European assets as they seek to deploy record amount of money they have raised. Large businesses such as Nestle SA’s skin-care unit and Merlin Entertainments Plc have been acquired by buyout firms this year.Armacell, founded in 1954, has made products used everywhere from the Empire State Building to the Gorgon natural gas project in Western Australia. The Luxembourg-based company had 610 million euros of net sales in 2018 and adjusted earnings before interest, tax, depreciation and amortization of 106 million euros, according to its annual report.(Updates with details from statement starting in first paragraph.)\--With assistance from Aaron Kirchfeld.To contact the reporters on this story: Sarah Syed in London at ssyed35@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.netTo contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone says Unizo has not agreed to its $1.6 billion takeover offer

    Blackstone says Unizo has not agreed to its $1.6 billion takeover offer

    Blackstone Group Inc said on Thursday it has been unable to obtain an agreement from Japanese hotel operator Unizo Holdings Co Ltd for its $1.6 billion takeover bid proposal. Blackstone last month offered to buy the company at 5,000 yen a share, which valued the hotel chain at 171 billion yen (£1.2 billion). It also warned the company that it would take any measures if Unizo fails to respond to Blackstone's offer by a deadline that it keeps extending.

  • Reuters - UK Focus

    UPDATE 1-London Stock Exchange shareholders bless $27 billion Refinitiv deal

    London Stock Exchange shareholders overwhelmingly backed the exchange's $27 billion takeover of data and analytics company Refinitiv on Tuesday, a deal designed to broaden LSE's trading business and make it a major distributor of market data. LSE Chairman Don Robert told a shareholders meeting in London that the exchange's board was unanimous in recommending the Refinitiv deal because it was a "compelling opportunity" in the best interests of shareholders and the company. One shareholder asked whether the LSE was simply bulking up to avoid becoming a future takeover target.

  • Reuters - UK Focus

    London Stock Exchange shareholders vote on $27 billion Refinitiv deal

    London Stock Exchange shareholders met on Tuesday to vote on the exchange's $27 billion takeover of analytics and data company Refinitiv, a deal designed to broaden LSE's trading business and make it a major distributor of market data. LSE Chairman Don Robert told the meeting in London that the exchange's board was unanimous in recommending the Refinitiv deal because it was a "compelling opportunity" in the best interests of shareholders and the company. One shareholder asked whether the LSE was simply bulking up to avoid becoming a future takeover target.

  • TEST Business Wire Releases

    Blackstone to Present at the Goldman Sachs Financial Services Conference

    Blackstone (NYSE:BX) announced today that Stephen Schwarzman, Chairman, CEO and Co-Founder, is scheduled to present at the Goldman Sachs Financial Services Conference on Tuesday, December 10, 2019 at 12:50PM ET.

  • Blackstone to invest $400 million in gene therapy venture with Ferring

    Blackstone to invest $400 million in gene therapy venture with Ferring

    Blackstone made its foray in the sector last year, acquiring Clarus, an investment firm specializing in life sciences. For its part, Ferring will invest $170 million in the joint venture with Blackstone, dubbed FerGene, bringing its total funding to $570 million, the companies said in a statement.

  • Japanese hotel group Unizo gets six new buyout offers

    Japanese hotel group Unizo gets six new buyout offers

    Japanese hotel operator Unizo Holdings said on Sunday it had received six more buyout offers at a price competitive with an existing $1.6 billion bid proposed by Blackstone Group . Unizo said it had received offers from four overseas investment funds and one Japanese fund as well as one domestic company, without naming the bidders. Unizo said none of the offers would meet its demands.

  • Why Is Blackstone Group (BX) Down 0.8% Since Last Earnings Report?

    Why Is Blackstone Group (BX) Down 0.8% Since Last Earnings Report?

    Blackstone Group (BX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

  • Reuters - UK Focus

    North Sea oil producer Siccar Point attracts bids of up to $2 bln - sources

    Bids for North Sea oil and gas firm Siccar Point, backed by private equity groups Blackstone and Blue Water Energy, came in at between $1.2 billion and just under $2 billion, according to three industry sources. Bidders in the first round, which ended on Nov. 7, include EIG-backed Chrysaor, private equity fund HitecVision, North Sea-focused oil and gas group RockRose and Norwegian oil major Equinor, the sources said.

  • Blackstone’s India Subprime Lender Dumps Small-Builder Portfolio

    Blackstone’s India Subprime Lender Dumps Small-Builder Portfolio

    (Bloomberg) -- Blackstone Group Inc.’s Indian subprime mortgage lender plans to exit its small builder financing business at a time when pain from the nation’s credit crunch abounds, with another victim claimed this week.“We are in the process of phasing out this small builder loan portfolio to keep the company 100% retail focused as per mandate from new owners,” said Deo Shankar Tripathi, 66, chief executive officer of Aadhar Housing Finance Ltd., in an interview.The Reserve Bank of India this week seized major non-bank lender Dewan Housing Finance Corp., which held a controlling share in Aadhar until selling it to Blackstone in June. India’s more than 15-month-old credit crisis has dragged economic growth down to its slowest in six years.Read more about the RBI move here.The RBI seized control of Dewan Housing on Wednesday, stepping up efforts to contain the economic fallout from the nation’s shadow banking crisis. Tripathi said he expects some improvement in Indian credit markets next quarter.While more than 99% of Aadhar’s lending is already to individuals, about 45% of non-performing loans at the end of March were tied to its small non-consumer book, according to an India Ratings’ review last month. Blackstone’s capital injection lowered Aadhar leverage from 9.5 times of net-owned funds to 3.75 times, according to Tripathi.(Adds details on RBI seizing control of Dewan in the fourth paragraph.)To contact the reporters on this story: Divya Patil in Mumbai at dpatil7@bloomberg.net;Baiju Kalesh in Mumbai at bkalesh@bloomberg.netTo contact the editors responsible for this story: Andrew Monahan at amonahan@bloomberg.net, Finbarr FlynnFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bloomberg

    Blackstone Exits Single-Family Rental Bet Slammed by Warren

    (Bloomberg) -- Blackstone Group Inc. is exiting its post-recession bet on single-family rental homes, selling off an investment in Invitation Homes Inc. that has drawn the fire of Democratic presidential candidate Elizabeth Warren.The sale of Blackstone’s remaining stake in the single-family landlord is for $30.10 per share, according to a statement, and will bring in roughly $1.7 billion. The firm controlled more than 40% of Invitation Homes before it starting selling shares in March. It made about $7 billion from the stock sales and dividends, more than twice what it invested.The timing of the sale, coming days after Warren criticized Blackstone, was “merely coincidental,” according to a note from Bloomberg Intelligence analyst Jeffrey Langbaum.Blackstone and other firms started buying homes in the aftermath of the foreclosure crisis and turned them into rentals at a time when many Americans were struggling financially. The private equity giant took Invitation Homes public in 2017. The same year, Invitation merged with Starwood Waypoint Homes, creating a rental-house behemoth comparable in size to all but the largest apartment landlords.Prior to private equity’s single-family rental push, institutional investors had shied from that corner of the housing market. Blackstone helped prove the case that the properties could be managed efficiently. These days, there’s little distress in the housing market, meaning investors can no longer build portfolios with cheap homes. Still, a shortage of starter homes for younger buyers has Wall Street firms eyeing new bets on the asset.“Blackstone has been an exceptional partner, nurturing the growth of our industry,” Dallas Tanner, chief executive officer of Invitation Homes, said in a statement.Warren accused Blackstone and other firms on Nov. 18 of “shamelessly” profiting from the housing crisis, arguing that Wall Street’s investment in single-family homes was a “huge loss for America’s renters.”Blackstone countered that its investment in rental homes helped stabilize housing markets, creating better options for families who needed to rent. The $10 billion spent acquiring homes and $2 billion more for repairs spurred economic growth and created jobs, it said in response.“We are proud that our investment provided a high quality rental housing option, helped stabilize local housing markets, spurred economic growth, and built a $25 billion company, while delivering value to our investors, which include retirement systems for millions of teachers, firefighters and other pensioners,” Ken Caplan, Global Co-Head of Blackstone Real Estate, said in a statement.(Updates with comments from Invitation and Blackstone)\--With assistance from Brandon Kochkodin.To contact the reporter on this story: Patrick Clark in New York at pclark55@bloomberg.netTo contact the editor responsible for this story: Craig Giammona at cgiammona@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Blackstone Leaders Ignore Politics for a Night to End Cancer

    Blackstone Leaders Ignore Politics for a Night to End Cancer

    (Bloomberg) -- Elizabeth Warren probably wouldn’t have felt welcome at Cipriani Wall Street Monday night.Earlier in the day, the Massachusetts senator and Democratic presidential candidate went after Blackstone Group and other private equity firms, claiming they had “shamelessly” profited from the 2008 housing crisis. Blackstone countered that its purchases of mostly vacant and foreclosed houses had lifted up neighborhoods and created value for pension plans.By evening, the investment firm’s top executives were tucking into sea bass to support a philanthropy of one of their own.“It’s going to be a long race,” Blackstone Chief Executive Officer Steve Schwarzman said when asked about Warren on his way to sit next to Blackstone President Jon Gray’s mom.Many guests acknowledged frustration over Warren, but weren’t going to let the 2020 race distract from the feel-good story of the night: here was a Blackstone executive, a billionaire at that, who with his wife created an initiative that is saving lives.Jon and Mindy Gray founded the Basser Center for BRCA at the University of Pennsylvania seven years ago to focus on the gene mutations that increase risk for breast, ovarian and other BRCA-related cancers. The Grays have given $55 million, and Blackstone colleagues have chipped in more, to fund research that has led to FDA-approved therapies prolonging life and pay for genetic counseling that has helped families navigate medical decisions.“We’re just trying to give back and make a difference,” Jon Gray said as friends and co-workers mobbed him to say hello. “We’ve been incredibly fortunate and we hope to translate that good fortune and really advance the research. Personally, I like to focus on the positive, on the ability to effect change, and that’s what we’re doing tonight.”The Grays are determined that everyone who carries the gene mutation has a chance to find that out and act on it. “Let’s make this the last generation with BRCA-related cancer,” Mindy Gray said.The Grays also know that a benefit in New York needs to be fun and stand out from hundreds of others. One of their tricks is a jeans dress code, which gets both men and women into skinny denim. Well, most everyone: Schwarzman wore fancy business attire on top and baggy pale denim on the bottom. They may have even been acid-washed, and those rips may have even been intentional.For a more cohesive and winning look -- sophisticated head to toe, that is -- there was Nina Garcia, the editor in chief of Elle magazine and a Project Runway judge, wearing a fitted denim suit by Derek Lam 10 Crosby. Having learned she has a BRCA mutation, Garcia wrote about it and is now helping the Basser Center get more Latino men and women to test for the mutation.The event raised more than $8.5 million, with guests including Blackstone’s Giovanni Cutaia, Ron Bernstein and David Blitzer; David Roth, head of real estate investments at Ares Management; Paul Hilal of Mantle Ridge; and lawyers Jon Mechanic, Ken Rosh and Scott Kobak, whose daughter, a sophomore at FIT, wore jeans she made herself, with a quilted flourish on the lower leg.The next day Blackstone again defended its role in the real estate market from Warren’s criticism.(Updates with Warren response in final paragraph.)To contact the reporter on this story: Amanda Gordon in New York at agordon01@bloomberg.netTo contact the editors responsible for this story: Pierre Paulden at ppaulden@bloomberg.net, Steven CrabillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    UPDATE 3-Thyssenkrupp, Kone discuss multi-billion euro break-up fee - sources

    FRANKFURT/DUESSELDORF, Germany, Nov 19 (Reuters) - Finland's Kone has proposed paying a multi-billion euro break-up fee to Thyssenkrupp in an effort to improve its chances in an auction for the German conglomerate's elevator business, three people familiar with the matter said. Kone, in a partnership with private equity firm CVC , is among suitors for Elevator Technology (ET), which Thyssenkrupp has put up for sale in a bid to pay down pensions and debt, and invest in restructuring its other struggling businesses. Under the plans, Kone would pay the break-up free - which one source put at 3 billion euros ($3.3 billion) - upfront, making it easier for Thyssenkrupp to accept a deal with the firm, which could face an antitrust review lasting more than a year.

  • Bloomberg

    Warren Calls Out Blackstone for ‘Shameless’ Profits From Housing

    (Bloomberg) -- Elizabeth Warren called out Blackstone Group Inc. for its real estate practices as she laid out her tenants’ rights plan, accusing the company of “shamelessly” profiting from the 2008 housing crisis.Her criticism on Monday was the latest instance of the Democratic 2020 presidential candidate singling out Wall Street companies and investors by name for actions she says contribute to inequality.In a Medium post where she laid out proposals to strengthen tenants’ rights, Warren assailed Blackstone for going on a “shopping spree” in the wake of the 2008 crisis and buying apartments and single-family homes that had been foreclosed. She also took aim at Colony Capital Inc. and Cerberus Capital Management.“Some of the same Wall Street firms that tanked the dream of home ownership for millions of American families are now the country’s biggest landlords -- profiting off the destruction they caused,” Warren wrote in her post.Blackstone noted that in fact it began purchasing homes through a now-independent company it founded, Invitation Homes, in 2012, after the housing crisis that began in 2008 had abated. The company said vacant homes were dragging down property values for surrounding homes, and Blackstone’s purchases and billion-dollar investments in renovations boosted local economies and employment. The firm was spending $150 million a week buying single-family homes.“Though we are only a tiny percentage of the housing market, we are proud of our investments, which are helping address the housing shortage by adding high-quality, professionally managed rental housing, while contributing to local economies and creating jobs -- all on behalf of our investors, which include retirement systems for millions of teachers, nurses, firefighters and other pensioners,” said Jen Friedman, senior vice president for global public affairs at Blackstone.Blackstone is one of the world’s largest real-estate investors, and has about $554 billion in total assets under management. The business is so profitable it has made both founder Stephen Schwarzman and president Jonathan Gray, who oversaw Blackstone’s massive real estate growth, billionaires several times over.Warren has singled out some of the largest U.S. corporations, including Facebook Inc., Exxon Mobil Corp., Walmart Inc., and Wells Fargo & Co., as she campaigns for the Democratic nomination by championing working- and middle-class families. The Massachusetts senator promised to break up big corporations, crack down on their political influence and enforce strict regulations on Wall Street.She has also engaged in fights with such Wall Street figures as Lloyd Blankfein and Leon Cooperman.Warren’s latest attack comes in a policy proposal to withhold federal funding from corporate landlords with a history of “harassing” tenants. Corporate landlords would be required to publicly disclose data like median rent, the number of tenants they’ve evicted and building code violations, as well as the names of any individuals with an ownership interest of 25% or more.Warren also pointed to Blackstone’s $5.3 billion deal to buy New York’s Stuyvesant Town, an 80-acre Manhattan development with more than 11,000 apartments. Under the terms of the deal, about 5,000 of those apartments would remain “affordable” for 20 years, according to an announcement by New York City Mayor Bill De Blasio.Warren has proposed spending $500 billion to build about 3 million housing units in the U.S., and also said her administration would provide a nationwide right-to-counsel and establish a federal grant program aimed at benefiting low-income tenants facing eviction. She said she’d create a federal Tenant Protection Bureau, modeled after the Consumer Financial Protection Bureau, a key component of the 2010 Wall Street overhaul legislation that she advocated.(Updates with details on Blackstone’s housing purchases in fifth paragraph.)To contact the reporters on this story: Misyrlena Egkolfopoulou in Washington at megkolfopoul@bloomberg.net;Heather Perlberg in Washington at hperlberg@bloomberg.netTo contact the editors responsible for this story: Wendy Benjaminson at wbenjaminson@bloomberg.net, ;Sam Mamudi at smamudi@bloomberg.net, Gregory MottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Hillhouse Capital to Bid for Thyssenkrupp Elevator Unit

    Hillhouse Capital to Bid for Thyssenkrupp Elevator Unit

    (Bloomberg) -- Hillhouse Capital, the Asian private equity firm started by Yale endowment alumnus Zhang Lei, is among the bidders for Thyssenkrupp AG’s elevator unit as competition heats up for the prized asset, people familiar with the matter said.The Hong Kong-based investment firm made a non-binding offer this month, according to the people, who asked not to be identified because the information is private. Its bid valued the business at more than 15 billion euros ($17 billion), two of the people said. Hillhouse is competing against a number of other buyout firms and strategic bidders, a list that’s expected to be whittled down to a handful in the next few weeks, they said.Hillhouse could seek to team up with other bidders and offer help expanding the business in the crucial Chinese market, two of the people said. It has expressed interest in partnering with Finnish elevator Kone Oyj, though so far the latter is reluctant, according to two of the people.Representatives for Hillhouse, Thyssenkrupp and Kone declined to comment.Hillhouse, which raised $10.6 billion for its third buyout fund last year, was started in 2005 with funding from Yale’s endowment. It’s known for its savvy in marrying consumer products with technology and backing promising startups early. Airbnb Inc. and Chinese internet giants Tencent Holdings Ltd. and JD.com Inc. are among the companies it has invested in.The firm has also been pushing into larger deals. Hillhouse was part of an investor group that agreed in 2017 to buy Singapore-based warehouse operator Global Logistic Properties Ltd. for S$16 billion ($12 billion), which was Asia’s biggest-ever private equity buyout at the time it was announced.Ailing Thyssenkrupp is exploring a sale or an initial public offering of the elevator business, its most valuable unit, to boost its equity cushions and cash pile to fund a turnaround of the steel-to-automotive conglomerate. The German company is still debating whether to sell a majority or minority stake in its crown jewel, the people said.Brazilian-American investment firm 3G Capital and a range of other suitors have placed indicative bids for the elevator unit recently, Bloomberg News reported last week.Kone partnered with CVC Capital Partners to make a joint offer, while Blackstone Group Inc. submitted a bid with Carlyle Group LP and Canada Pension Plan Investment Board, people with knowledge of the matter said at the time. Brookfield Asset Management Inc. and a separate consortium of Advent International, Cinven and the Abu Dhabi Investment Authority lodged their own bids, according to the people.The German government has been tightening its scrutiny on acquisitions by overseas investors in key sectors. It’s lowered the threshold for examining foreign takeovers and widened the scope of deals that can be reviewed following a public backlash over deals including Midea Group Co.’s purchase of robot maker Kuka AG in 2016.In August last year, Chancellor Angela Merkel’s cabinet vetoed a Chinese deal for the first time, blocking the takeover of German machine tool manufacturer Leifeld Metal Spinning AG by Yantai Taihai Group. A German state-owned bank also bought 20% stake of 50Hertz Transmission GmbH, one of the country’s biggest electricity networks, on behalf of the government in a move that foiled a potential purchase by State Grid Corp. of China.(Updates with other bidders in ninth paragraph.)\--With assistance from William Wilkes and Niclas Rolander.To contact the reporters on this story: Aaron Kirchfeld in London at akirchfeld@bloomberg.net;Eyk Henning in Frankfurt at ehenning1@bloomberg.net;Manuel Baigorri in Hong Kong at mbaigorri@bloomberg.netTo contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net, ;Kenneth Wong at kwong11@bloomberg.net, Michael HythaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    Blackstone to continue takeover talks with Unizo

    Blackstone said on Monday it will continue talks with Japanese hotel chain Unizo Holdings on its proposed $1.6 billion takeover bid and plans to make an announcement by Nov. 22. Unizo in July became a target for a hostile bid by a Japanese travel agent H.I.S. Co in July.

  • Bloomberg

    Taylor Swift’s Carlyle Plea Showcases Private Equity’s Reach

    (Bloomberg) -- Taylor Swift’s feud with her record label reveals a little-known fact about the entertainment business: the outsized role private equity plays in funding its biggest stars.Swift asked Carlyle Group in a tweet on Thursday to help her as she battles to secure ownership of albums she recorded with her previous label. The Washington-based buyout firm helped finance celebrity manager Scooter Braun’s acquisition of Big Machine Label Group LLC.Carlyle found itself in the middle of the spat because, along with alternative asset managers including TPG and Blackstone Group Inc., it has extended its reach into show business in recent years. The industry, known for acquiring staid corporations, has been taking stakes in everything from record producers to major talent agencies.There’s a lot for buyout firms to do in music as the industry recovers from decades of decline. The value of song libraries has jumped in recent years, buoyed by major labels making acquisitions and private investors buying in, and spending on music has increased thanks to subscription streaming services like Spotify Technology SA.Blackstone owns Sesac Holding and The Harry Fox Agency Inc., two groups that disburse royalties, while TPG was an investor in Spotify.One of the biggest deals last year was Sony Corp.’s purchase of EMI Music Publishing for $2 billion. The seller was a consortium led by Abu Dhabi’s Mubadala Investment Co. The deal allowed Sony to get its hands on a catalog of 2.1 million songs from Beyonce, Carole King and other artists.And firms are interested in entertainment far beyond music.TPG owns a large stake in Creative Artists Agency LLC, the talent agency and show business packaging firm whose clients include Will Smith and Jennifer Aniston, and has also invested in Vice Media Inc. and STX Entertainment, the studio behind “Hustlers.” Silver Lake owns part of Endeavor Group Holdings, the parent company of talent agency WME and operator of the Ultimate Fighting Championship.Blackstone, the world’s biggest alternative asset manager, bought into the TV network YES, as well as Merlin Entertainment, the owner of Legoland. The latter deals point to the firm’s interest in the events business.“We’re also a big fan around live entertainment because even though many things are moving online, people still need physical activities, things they want to do,” Blackstone President Jon Gray said on an earnings call last month. Endeavor called off a planned initial public offering in September.Carlyle has been involved with Braun since at least 2017, when it bought a minority stake in his Ithaca Holdings. Carlyle then helped finance Braun’s acquisition of Big Machine in June with an additional equity investment. The firm has no operational control. A representative for Carlyle declined to comment.Carlyle also owns an array of entertainment-related companies. They include Content Partners LLC, an asset management firm and investment fund that helps finance film, television and music companies by purchasing their cash flows, and Apex Parks Group, the operator of U.S. amusement parks.The pop star didn’t criticize Carlyle, only appealing for its help. But her conspicuous mention of the company put a spotlight on an industry her legions of young fans normally wouldn’t have reason to pay attention to. Google searches for Carlyle Group surged after her tweet.And critics of private equity — among them Representative Alexandria Ocasio-Cortez, the New York Democrat — seized on the tweet as further evidence of the industry’s harm to society.\--With assistance from Nick Turner.To contact the reporters on this story: Heather Perlberg in Washington at hperlberg@bloomberg.net;Lucas Shaw in Los Angeles at lshaw31@bloomberg.netTo contact the editors responsible for this story: Sam Mamudi at smamudi@bloomberg.net, Melissa Karsh, Alan MirabellaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

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