2024-04-20 03:45:00 ET
Summary
- Blackstone is grappling with a peculiar sort of funding mismatch.
- Even as the U.S. Federal Reserve made borrowing costs pricier, Blackstone kept raising cash to invest, surpassing $200 billion.
- It’s time to acquire when Blackstone is flush with cash and prices are depressed, but recovery can be seen on the horizon.
By Breakingviews
Blackstone ( BX ) is grappling with a peculiar sort of funding mismatch. The investment shop managing more than $1 trillion says market ructions present acquisition and lending opportunities, but it is also selling less. Moreover, the growing likelihood that interest rates stay higher for longer threatens deal activity. If the dynamic persists, it will sharpen the divide between fund backers focused on profit and public shareholders benefiting from capital deployment....
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Blackstone's Cash Pile Will Buy Only So Much Time