Credit Suisse says Blackstone’s fundraising ability makes it a buy

Andrew Harrer | Bloomberg | Getty Images

Stephen ‘Steve’ Schwarzman, co-founder, chairman and chief executive officer of Blackstone Group LP.

Blackstone Group’s asset management fees will surge due to its ability to bring in new client capital, according to Credit Suisse.

The firm reiterated its outperform rating for Blackstone Group shares, predicting the company will generate earnings above expectations in 2020.

Fee-related earnings growth should “significantly re-accelerate” in 2019 and 2020 because of Blackstone’s massive fundraising pipeline, Credit Suisse analyst Craig Siegenthaler said in a note to clients Tuesday. “Given the secular growth drivers in the industry (migration to illiquid alts, share gains by large/one-stop-shop platforms) and qualities of the public alternative business model (locked-up capital, fees on fixed invested capital/not NAV), we continue to find the industry attractive relative to the broader market and financial sector.”

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get The Latest Investing Tips
Straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.