This IPO in and was worth $4 Billion. The IPO Prospectus includes all the relevant information for the IPO. Condition is very good, age: , approx Blackstone sold million of its new units to a small army of underwriters — 17 were named in the latest prospectus — raising $ billion. The KIIDs can be obtained on the website For the factors set out in the section of the Prospectus entitled “Risk Factors”. In view of.
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There could also be a negative reaction in the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. In addition, while the management fees we receive from our investment funds are payable on a regular basis in contractually prescribed amounts over the life of each fund, transaction fees earned by our corporate private equity, real estate and mezzanine operations and fees earned by our advisory business are subject to greater variability from quarter to quarter.
Contributing capital to these investment funds is risky, and we may lose some or all of the principal amount of our investments. Many of these regulators, including U. As a prozpectus, the time ioo attention that our senior managing directors and employees devote to these non-contributed assets will not financially benefit us and may propectus the time and attention these individuals devote to our business. In connection with the reorganization we intend to make one or more distributions to lpo existing owners representing all of the undistributed earnings generated by the businesses to be contributed to Blackstone Holdings prior to the date of the offering.
Nevertheless, when conducting due diligence and making an assessment regarding an investment, we rely on the resources available to us, including information provided by the target of the investment and, in some circumstances, third-party investigations.
blackstone group lp
A disaster or a disruption in the infrastructure. As a public company, we intend to continue using leverage to create the most efficient capital structure for Blackstone and our public common unitholders. Termination of these agreements would cause us to lose the fees we earn from such investment funds. If any of the foregoing were to occur, the values of investments by our investment blwckstone could decrease and our financial condition, results of operations and cash flow could suffer as a result.
Some members of the United States Congress may be considering legislative proposals to treat all or part of the income, including capital gain and dividend income, recognized by an investment partnership and allocable to a partner affiliated with the sponsor of the partnership i.
Management makes operating decisions lpo assesses the performance of our businesses based on financial and operating metrics and data that are presented without the consolidation of any of our investment funds.
We believe that optimizing returns for the investors in our funds will create the most value for our common unitholders over time. These risks are exacerbated by our funds’ use of leverage to finance investments.
These activities may divert management’s attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
We believe that this makes us particularly well-suited to represent boards and special committees in the increasing number of situations where they are looking to retain a financial advisor who is devoid of such conflicts.
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Peterson, minimum retained ownership requirements. However, poor performance prlspectus the investment funds that we manage would cause a decline in our revenue from such investment funds, and would therefore have a negative effect on our performance and in all likelihood the returns on an investment in our common units. In addition, on those few matters that may be submitted for a vote of our common unitholders our existing owners will indirectly hold special voting units in The Blackstone Group L.
Alternatively, we may experience decreased rates of return and increased risks of loss if we match investment prices, structures and terms offered by competitors.
The due diligence process that we undertake in connection with investments by our investment funds may not reveal all facts that may be relevant in connection with an investment. For example, we may come into possession of material non-public information with respect to issuers in which we may be considering making an investment or issuers that are our advisory clients.
These risks include those associated blacktsone the burdens of ownership of real property, general and local economic conditions, changes in supply of and demand for competing properties in an area as a result for instance of overbuildingfluctuations blackstoone the average occupancy and room rates for hotel properties, the financial resources of tenants, changes in building, environmental and other laws, energy and supply shortages, various uninsured or prsopectus risks, natural disasters, changes in government regulations b,ackstone as rent controlchanges in real property tax blackstpne, changes in interest rates, the reduced availability of mortgage funds which may render the sale or refinancing of properties difficult or impracticable, negative developments in the economy that depress travel activity, environmental liabilities, contingent liabilities on disposition of assets, terrorist attacks, war and other factors that are beyond our control.
In addition, we operate in businesses that are highly dependent on information systems and technology. Such instruments and securities may be acquired by our investment funds through trading activities or through purchases of securities from the issuer. We recognize revenue on investments in our investment funds based on our allocable share of realized and unrealized gains or losses reported by such investment funds, and a decline in realized or unrealized gains, or an increase in balckstone or unrealized losses, would adversely affect our revenue, which could further increase the volatility of our quarterly results.
Our investment funds may be affected by reduced opportunities to exit and realize value prospecuts their investments and by the fact that we may not be able to find suitable investments for the investment funds to effectively deploy capital, which could adversely affect our ability to raise new funds.
Our senior managing directors have agreed in the limited liability company agreement of Blackstone Partners that our founders will have the power to determine how the special voting unit held by Blackstone Partners will be voted. Deconsolidation of Blackstone Funds.
Employee misconduct could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm. Our asset management business competes with a number of private equity funds, specialized investment funds, hedge funds, corporate buyers, traditional asset managers, commercial banks, investment banks and other financial institutions.
We have invested in complementary new areas because they offered opportunities to deploy our financial and intellectual capital and generate superior investment returns, attractive net income margins and substantial cash flow. Accordingly, we expect to take actions regularly with respect to the purchase or sale of investments and the structuring of investment transactions for our investment funds to achieve this objective, even if these actions adversely affect our near-term results.
Our hedge funds also have “high water marks” whereby we do not earn incentive fees during a particular period even though the fund had positive returns in such period as a result of losses in prior periods.
In addition, if interest rates were to rise or there were to be a prolonged bull market in equities, the attractiveness of our investment funds relative to investments in other investment products could decrease.
UPDATE 3-Blackstone Group files for $4 billion IPO | Reuters
It is not always possible to detect or deter employee misconduct, and the extensive precautions we take to detect and prevent this activity may not be effective in all cases. In addition, the State Investment Company has agreed that it and its affiliates will obtain our written consent prior to making any investment in any other firm primarily engaged in the sponsorship or management of alternative asset funds or vehicles for a year following this offering.
Carried interest and incentive fees could be significantly reduced as a result of our inability to maximize the value of investments by an investment fund during the liquidation process.
Poor performance of our investment funds would cause a decline in our revenue, income and cash flow, may obligate us to repay carried interest previously paid to us, and could adversely affect our ability to raise capital for future investment funds.
Accordingly, ipk following this offering, on those few matters that may be submitted for a vote of the limited partners of The Blackstone Group L. Prospectux unions have also threatened to use their influence to prevent pension funds prospectux investing in private equity funds.
Such transactions may also limit the opportunity for gain if the value of a hedged position increases. Prior to this offering we effected our reorganization into a ipk partnership structure described in “Organizational Structure. This could materially adversely affect us and lead to a decline in our common unit price. The summary historical financial data is blackstonne indicative of the expected future operating results of The Blackstone Group L.
During periods of difficult market conditions or slowdowns in a particular sector, companies in which we invest may experience decreased revenues, prospextus losses, difficulty in obtaining access to financing and increased funding costs.
The loss of the services of any of them could have a material adverse effect on our revenues, net income and cash flows and could harm our ability to maintain or grow assets under management in existing funds or raise additional funds in the future. Prospectue investment in our common units involves risks. For example, from time to time we and our portfolio companies have been subject to class action suits by shareholders in public companies that we have agreed to acquire that challenge our acquisition transactions and attempt to enjoin them.
We cannot predict when, or if, any realization of investments will occur. We believe that our ability to identify and successfully enter new growth areas is a key competitive advantage, and we will continue to seek new opportunities to expand our asset management franchise and our advisory business. Our investment funds will generally not be able to sell these securities publicly unless their sale is registered under applicable securities laws, or unless an exemption from such registration is available.
James serves as our President and Chief Operating Officer, oversees our corporate private equity operation directly and, along with Mr.
In most cases, we receive a preferred allocation of income a “carried interest” or an incentive fee from an investment fund in the event that specified investment returns are achieved by the fund. In addition, with respect to our publicly-traded closed-end mutual funds, each investment fund’s investment management agreement must be approved annually by the independent members of such investment fund’s board of directors and, in certain cases, by its stockholders, as required by law.
We are subject to substantial litigation risks and may face significant liabilities and damage to our professional reputation as a result of litigation allegations and negative publicity.