Blackstone, one of the world’s largest PE firms, has reported a loss of $1 billion in PE funds amid market turbulence.
The PE firm lost money as it pulled out of investments in a number of industries and also reduced its stake in a number of companies.
Blackstone’s PE portfolio fell in value by 1.7% during the first half of 2019 despite the firm’s efforts to improve its returns.
The private equity firm said that it sold its investment in ride-hailing company Uber Technologies Inc. and its investment in food delivery company DoorDash Inc. during the first half of 2019.
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Blackstone also sold its investment in real estate brokerage company Compass Group PLC. The PE firm said that it was looking to reduce its exposure to industries such as technology and automotive. The market turbulence has reduced investment opportunities for PE firms, which are facing increased competition from venture capital firms.
Why did Blackstone lose $1 billion in PE funds recently?
There are a few reasons as to why Blackstone, one of the largest private-equity firms in the world, might have lost $1 billion in PE funds recently. One reason is that the market has been turbulent recently, with many PE firms losing money as a result.
This is because the market is unpredictable and tends to go up and down sporadically, making it difficult for some firms to make profits.
Another reason is that some of Blackstone’s recent investments include ElevenPaths (an online learning platform), Unilever (a food company), and Kinder Morgan (a pipeline company). These companies may not have had as good of a performance as expected, which has resulted in Blackstone losing money on these deals.
Conclusion
Blackstone, one of the world’s largest private equity firms, has lost a whopping $1 billion in private equity funds amid market turbulence. This news comes as a major blow to the PE industry, as Blackstone is one of the most well-known and experienced PE firms. This market turbulence is likely to have a negative impact on the private equity industry as a whole, and it is important that private equity investors are aware of the risks involved.
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