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Blackstone earnings crush expectations

July 18, 2013: 7:12 AM ET

blackstone-capThe Blackstone Group reports another strong quarter.

FORTUNE -- The Blackstone Group (BX) this morning crushed analyst expectations, reporting $703 million of economic net income for the second quarter. That works out to $0.62 per share, compared to expectations of around $0.52 per share. Blackstone reported earnings of just $0.19 per share in the year-earlier period.

Total revenue climbed from $644 million in Q2 2012 to $1.4 billion in Q2 2013, of which $719 million was from performance-based fees. Real estate investment activities accounted for $605 million of total revenue (including $402 million of performance fees), followed by private equity with $356 million in revenue ($186 million in performance fees). Blackstone also reported triple-digit million revenue for its hedge fund and credit groups.

Distributable earnings grew to $338 million, largely from a nearly fourfold year-over-year growth in realized performance fees from fund activities.

Total assets under management hit a firm record of $230 billion, with double-digit growth over the past year in all of Blackstone's different investment verticals. Approximately $176 million of that AUM is characterized as "fee-earning."

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About This Author
Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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