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Blackstone earnings: Slight revenue miss

October 17, 2013: 7:27 AM ET

blackstone-capBlackstone reports record assets under management.

FORTUNE -- The Blackstone Group (BX) this morning reported nearly $1.23 billion in third quarter revenue, coming in just short of most analyst expectations (and exactly in line with some of them).

The investment firm reported $0.56 per unit in economic net income, and that its assets under management reached a record $248 billion (up 21% year-over-year -- including double-digit increases across all investing businesses).

Blackstone reported a 44% year-to-date increase in private equity revenue, and that the carrying value of its private equity portfolio climbed by 17.4% (including 4.2% in Q3). The quarterly figures were much rougher -- off 54% -- due to an effective absence of performance fees. The firm saw a similar performance fee dip (-46%) in its credit business.

Real estate continued to be the firm's largest business, with $1.8 billion in in year-to-date revenue.

The only area where Blackstone reports softer year-over-year numbers were in its M&A advisory business, although its overall financial advisory business -- which includes restructuring and fund placement -- was up 17% year-to-date (and 40% for the quarter).

Blackstone had $41.2 billion of "dry powder" (i.e., uninvested AUM) as of Sept. 30., of which $19.2 billion was not yet drawing fees.

Also worth noting that Blackstone reported President Tony James said during a media call that most of Blackstone's portfolio company CEOs do not think that the "recent showdown in Washington" will have much impact on their businesses. A larger concern is the continued sequester, although James believes that will be offset by economic growth elsewhere (including new construction).

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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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