Blackstone Group reports quarterly loss

Fund management and private equity giant Blackstone Group LP (BX) reported its first quarterly loss in four years Thursday, citing the impact of stock market declines.

Blackstone shares nonetheless closed up 1.49% at $34.05 as the company also reported other financial metrics with more upbeat data.

Economic net income a measure that values the company's portfolio fell $416 million, "driven by declines in the unrealized value of public holdings, despite strong underlying portfolio fundamentals across the funds," the New York-based company said.

The loss contrasted with a nearly $758.4 million gain in the firm's economic net income during the same three-month period last year.

Economic net income per share came in at negative 35 cents, down from a positive 66 cents in the third quarter of 2014.

Blackstone said distributable earnings, the total available to pay dividends, rose to nearly $692 million. That represents a 1% increase over $686 million last year. The company declared a quarterly distribution of 49 cents per common unit that is scheduled to be paid on Nov. 2.

Total assets under management rose to a record $334 million, up 17% from $284.4 million last year, Blackstone reported.

"Despite declines in the public markets that affected our economic net income, underlying trends in our businesses and our portfolio companies remain favorable, which is what drives value ultimately," Blackstone CEO Stephen Schwarzman said in a statement issued with the earnings announcement. "Recent market volatility should create opportunity for us and we have raised an industry-record $97 billion of capital over the past year to pursue such opportunities."

Follow Paste BN reporter Kevin McCoy on Twitter: @kmccoynyc.