Blackstone Profit Drops 9.2% as Higher Rates Curb Dealmaking
Seven Lights
Blackstone Inc. reported a 9.2 per cent drop in third-quarter profit as higher interest rates subdued dealmaking, with the money the firm deployed reaching a low for this year, Bloomberg reported.
Bloomberg’s earnings report, headlined “Blackstone Profit Drops 9.2% as Rates, Inflation Curb Dealmaking,” put the decline in third-quarter income at 9.2 per cent and pointed to higher rates and inflation as forces curbing dealmaking, with the firm’s capital deployments at their lowest level so far this year.
The Financial Times reported separately that Blackstone cut property valuations as higher rates hit returns.
Group president Jonathan Gray said rising market volatility had stalled a quick return of cash to investors through initial public offerings, according to the Financial Times.