You don’t have to be a stock junkie to know this one. Blackstone IPO generated so much buzz lately, from Chinese State Investment Co. take a significant stake (without voting power), to its high flying CEO cashing in billions of dollars in the IPO, and some congressman talking about impose the 33% tax rate rather than the 15% capital gain tax for private equity firms.
I briefly read its S1 prospectus today. I noticed a few things kind of interesting:
1) Blackstone is doing lots of business in real estate lately, which I assume most are commerical real estate.
2) The company is not profitable in terms of earing to ordinary shareholders in 2006 (and going forward from 2007 etc), the reason is they need to pay out billions of dollars to acquire the ownership from some partners.
3) China and India: going forward those two countries will be growth driver. It will be more and more difficult to grow at +30% (asset being managed) as the company grows bigger and bigger.