Updated Aug 13 at 11:12am ET.
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Blackstone and a group of partners are buying a 25 percent stake in Aeroplan, the loyalty program owned by Air Canada. This minority investment values the entire program at 10 billion dollars.
Loyalty programs are attractive to firms like Blackstone because they generate steady, predictable cash from member spending and partnerships. This deal shows the firm is continuing to find ways to put its massive pool of capital to work in businesses with reliable income streams.
Source: GlobeNewsWire
Safe Harbor Marinas, which is owned by Blackstone, is reportedly in talks to buy boat dealer MarineMax for about 1.5 billion dollars. Safe Harbor is already the largest marina operator in the world, and adding a major retailer would give it more control over different parts of the boating market.
This move fits Blackstone's strategy of using its existing companies to buy up smaller rivals or related businesses. By expanding Safe Harbor, Blackstone can increase the value of one of its major infrastructure holdings while putting more of its investors' cash to work.
Source: Reuters
AGS Health, a company owned by Blackstone that provides services to the healthcare industry, has filed updated plans for an initial public offering in India. The listing aims to raise about 504 million dollars. Taking companies public is a primary way Blackstone cashes out of its investments to return money to its own investors. A successful listing would prove the firm can still find exits for its holdings in international markets, even if the total amount is relatively small compared to Blackstone's overall size.
Source: Reuters
Federal Reserve Governor Lisa Cook stated she is ready to support higher interest rates if inflation remains stubborn. Higher rates make borrowing more expensive for everyone from homebuyers to large corporations.
For a firm like Blackstone, interest rates are a critical lever. When rates rise, it costs more for Blackstone to borrow money for its large buyouts, and it can also lower the value of the real estate and companies it already owns. This warning suggests the environment for doing new deals could remain challenging for longer than many had hoped.
Source: CNBC
Apollo Global Management, a major competitor that also manages alternative assets like private equity and real estate, reported record revenue from the fees it charges to manage money. The firm is aggressively moving into corporate lending, a space where Blackstone is also a major player.
This matters because it shows the massive demand for private credit, which is when non-bank firms lend money directly to businesses. While Apollo is seeing success, it also signals tougher competition for the same deals and the same pool of investor cash that Blackstone relies on for its own growth.
Source: Bloomberg Markets and Finance
Analysts have kept a steady pace of updates recently, frequently adjusting their price targets throughout late July. Most analysts are positive, with 19 of 30 rating the stock a buy, though the average target of $145 is slightly below today's price.
Blackstone has a perfect record of beating analyst targets over the last two years. Management consistently delivers more profit than expected, showing they have a very clear handle on their complex global business.
| Expectation | |
|---|---|
| EPS | $1.38 |
| Revenue | $3.45B |
