The Blackstone Group’s second-quarter profit nearly doubled as the firm took advantage of rising valuations.
The firm’s economic net income was $1.33 billion, 89% higher than in the same period a year earlier. The profit easily topped analysts’ expectations.
Blackstone has invested more than $8 billion in equity transactions this year, making it the most active alternative investments firm in 2014, according to Credit Suisse. Distributable earnings more than doubled to $771 million.
Blackstone has also at last begun to collect performance fees on its Blackstone Capital Partners V, which it raised from 2005 through 2007. The fund has suffered from weak performance until recently.
All told, Blackstone’s private-equity portfolio returned 8.4% in the second quarter, well ahead of the broader markets. The firm’s assets under management rose to $278.9 billion on the quarter.