Blackstone’s Big Dividend Is “Money Good”
Blackstone Group shareholders should take comfort in the company's growing stockpile of accrued performance fees.
When it comes to partnerships, investors learn to love them for the distributions -- the dividend. But the distributions paid by private equity companies tend to be lumpier. After all, Blackstone Group's (NYSE:BX) routine management fees mostly keep the lights on; less-predictable performance fees are the icing on the cake that sends it into profitability.
But "lumpy" may mischaracterize Blackstone's future payouts. The company ended the latest quarter with $4.9 billion of "net accrued performance fees," equal to $4.17 per share.
Its executives like to think of its accrued performance fees as a sort of receivable; when Blackstone realizes profits earned for its fund investors, it'll pay that sum back out to its shareholders. As for timing, realizing these profits is at Blackstone's discretion, though it has to act as a fiduciary to its clients and work to maximize their profits first and foremost.
Blackstone Accrued Performance Fees
What's driving its profitability
Regardless of where an investor might think we are in the economic cycle, it's clear that valuations are up across the board. The net result is that Blackstone is accruing more and more performance fees, which will eventually be returned to shareholders as it exits investments and books gains for its clients.
On its most recent conference call, Blackstone CFO Laurence Tosi noted that $151 billion of the company's assets under management are currently earning performance fees, an increase of 30% over the prior year. One would hope and expect this to only continue growing. Tosi called this a valuable "compounding effect" that is inherent in the fee-driven business of managing other peoples' money.
When Blackstone reports earnings on Thursday, the good news should continue after a stellar first quarter kicking off 2015. Blackstone was busy fundraising for another mega fund this quarter, gathering a reported $17 billion for BCP VII, one of the largest private equity funds raised since the financial crisis. This follows a beastly $15.8 billion raised for its real estate funds in the first quarter, some of which was almost immediately deployed in a $14 billion deal for some of General Electric's real estate assets.
And although quarterly performance means little in the grand scheme of things, it's hard not to be upbeat about Blackstone's recent fundraising trends and its ability to collect fee-earning assets under management. It's rapidly replacing capital to build new funds as older funds wind down.
As merger and acquisition activity heats up in the public markets, one suspects that Blackstone's older "inventory" of smaller privately held assets might soon lead to big realizations and beefier distributions as time goes on. With $4.17 per share in the kitty in the form of accrued fees, the next few quarters could be particularly lucrative for its investors.
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to be fair. Zack gave this comment..Of course it is just based on missing earning number, etc..not on prospects.. disregard them often...
Sentiment: Strong Buy
IntelliPharmaCeutics Intl (NASDAQ:IPCI) announced its quarterly results before the market opened on Monday, July 13th. The company reported ($0.06) earnings per share (EPS) for the previous quarter, missing the Thomson Reuters consensus estimate of ($0.05) EPS by $0.01. The company had revenue of $1.20 million for the quarter. (View Earnings Release) Tweet This.
IntelliPharmaCeutics Intl Inc (NASDAQ:IPCI) had its "buy" rating reaffirmed by Brean Capital ( ) (analyst Jonathan Aschoff). They now have a $8.00 price target on the stock. 124.7% upside from the previous close of $3.56. The analysts wrote, "Intellipharmaceutics reported revenue of $1.3 million and EPS of $(0.06) for its FY2Q15, versus $1.8 million and $(0.04) consensus, respectively. Total revenue during FY2Q15 came exclusively from licensing revenue from Par for commercial sales of 15 and 30mg generic Focalin XR. Over the quarter, Intellipharmaceutics faced four generic competitors for 15mg Focalin XR, which largely accounts for the revenue trajectory. We believe Par will launch the 5mg strength imminently, as the 180-day first-filer exclusivity recently ended, and this dose represented a branded value of about $73 million for Novartis in its annual 2014 sales. We believe that Par will also be able to launch 10 and 20mg Focalin XR by calendar YE15 when the 180-day exclusivity ends, further offsetting 15mg dose competition. Intellipharmaceutics need only conduct a bioequivalence trial for its proprietary Rexista Oxycodone XR versus Oxycontin, and we believe that the company has already demonstrated bioequivalence in its submission to the FDA. We believe that the company will gradually shift its focus away from ANDAs and involve itself more with proprietary products that can utilize the 505(b)(2) pathway. Intellipharmaceutics ended FY2Q15 with cash of $3 million, which should fund operations into late-2015, and there is also $10 million remaining on the company’s ATM facility.”" Tweet This.
Sentiment: Strong Buy
they own 34% or 70 million shares worth 1.9 Billion.. Bain always owns the same.. MIR came public at 18....The Michaels Companies Announces Secondary Offering of 12.5 Million Shares of Common Stock by Selling Shareholders
The Michaels Companies, Inc.
17 hours ago
IRVING, Texas, July 9, 2015 (GLOBE NEWSWIRE) -- The Michaels Companies, Inc. (MIK) (the "Company") today announced that certain of its stockholders (the "Selling Stockholders") intend to offer for sale 12.5 million shares of its common stock pursuant to the Company's shelf registration statement filed with the Securities and Exchange Commission ("SEC").
The Selling Stockholders will receive all of the net proceeds from this offering. No shares are being sold by the Company.
looks to open lower....will need the approval for the next move up I think.. patience needed as usual lwiththis stock..
as I said BX sold several positions last quarter when the market and prices were high..so I think this last quarter will be good.. will see about the future as the market and BX holdings have taken a hit...
Intellipharmaceutics Updates Status of Tentative Approvals of Generic Focalin XR(R)
Intellipharmaceutics International Inc.
1 hour ago
IntelliPharmaCeutics Internati … Watchlist
Why IntelliPharmaCeutics Just Had A Big Tuesday Benzinga 1 mth 13 days ago
IntelliPharmaCeutics International (IPCI) in Focus: Stock Jumps 5.4% - Tale of the Tape Zacks 1 mth 13 days ago
TORONTO, July 8, 2015 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (IPCI) (TSX:I) ("Intellipharmaceutics" or the "Company"), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today advised that the United States Food and Drug Administration ("FDA") has indicated to the Company that it has rescinded its previous requirement that the Company meet newly-imposed conditions for bioequivalence prior to receiving final approval for the Company's tentatively-approved strengths of its generic Focalin XR(R) (dexmethylphenidate hydrochloride extended-release) capsules (the "Product"). The strengths affected include 5 mg, 10 mg, 20 mg and 40 mg. The already-approved 15 mg and 30 mg strengths now in the market are not affected.
The FDA, in November 2013, had previously granted the Company tentative approvals for the 5 mg, 10 mg, 20 mg, and 40 mg strengths of its generic Focalin XR(R). Subsequently, the Company announced in a press release dated June 18, 2015, that the FDA had indicated that the Company would be required to meet newly-imposed guidelines before the affected strengths of the Product could receive final approval. The FDA has now rescinded that requirement.
The Company is not aware of any further action required of it in respect of its Abbreviated New Drug Application ("ANDA") for the Product. The Company is therefore hopeful that the FDA will shortly grant final approval for the 5 mg strength of the Product which is not subject to the six months of market exclusivity accorded to the first-filer of an ANDA. There can be no assurance that such final approval will be granted within a short time, or at all, or that further conditions will not be imposed for that strength or any of the other tentatively approved strengths.
Sentiment: Strong Buy
BX earnings out july 16th...they should be good as BX sold a lot of holdings last quarter at good prices as the market was high...took advantage of that.. but now they holdings are down as is the market so will see about next quarter..
Panic time for people.. too bad to see this but I am holding of course...need to see about Greece and CHINA too....BABA is in panic mode too.. I won some !! BXMT is doing OK