Blackstone announces $100m Q1 loss

US private equity and property firm, Blackstone, has reported that it has lost over $100 million during the first three months of 2008 as the credit squeeze had an impact on revenues across the group.

Blackstone, which has over $31 billion of private equity assets under management, said the duration of current economic conditions is unknown.

The company reported a $93.6 million loss in the three months to March 31, 2008, reflecting a fall in the value of its assets, compared to a $957.8 million profit in the same period the previous year.

Furthermore, the company experienced a sharp decline in revenues, down from $1.23 billion last year to $32.3 million in the first quarter.

Revenues from its real estate arm dived by 94% to $47.9 million while its Marketable Alternative Asset Management division posted an 81% decline in revenue.

A spokesperson for the group said reduced liquidity, which was clear in the latter half of 2007, also accelerated in the first quarter of 2008.

Lenders severely restricted substantially limited new commitments to senior loans and high yield debt, which limited industry-wide leveraged acquisition activity levels in both corporate and real estate markets, added the spokesperson.

Blackstone’s businesses include Hilton Hotels, United Biscuits, Equity Office Properties and Madame Tussauds.

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