This IPO in and was worth $4 Billion. The IPO Prospectus includes all the relevant information for the IPO. Condition is very good, age: , approx Blackstone sold million of its new units to a small army of underwriters — 17 were named in the latest prospectus — raising $ billion. The KIIDs can be obtained on the website For the factors set out in the section of the Prospectus entitled “Risk Factors”. In view of.
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Investing in our common units involves risks. Many of our investment funds generally invest a significant portion of their assets in the equity, debt, loans or other securities of issuers located outside the United States. We believe that this investment approach, implemented across our broad and expanding range of alternative asset classes and investment strategies, helps provide stability and predictability to prospectue business prospcetus different prsopectus cycles.
Our investment funds make investments in companies that we do not control. Exceptional Investment Track Record. Blacistone may be difficult for us to achieve steady growth in net income and cash flow on a quarterly basis, which could in turn lead to large adverse movements in the price of our common units or increased volatility in our common unit price generally. While all of our entities that serve as advisers to our investment funds are already registered with the SEC under the Advisers Act as investment advisers, other new regulations could constrain or otherwise impose burdens on our business.
If this or any similar legislation or regulation were to be enacted and to apply to us, we would incur a material increase in our tax liability blackstonr could well result in a reduction in the value of our common units”.
Investments for which market prices are not observable are upo either private investments in the equity of operating companies or real estate properties or investments in funds managed by others.
While the general partners and investment advisers to our investment funds, including their directors, officers, other employees and affiliates, are generally indemnified to the fullest extent permitted by law with respect to their conduct in connection with the management of the business and affairs of our investment funds, such indemnity does not extend to actions determined to have involved fraud, gross negligence, willful misconduct or other similar misconduct.
This track record in turn has allowed us to successfully and repeatedly raise additional assets from an increasingly wide variety of sophisticated investors. To the extent that any assets remain, holders of claims that rank equally with our investment would be entitled to share on an equal and ratable basis in distributions that are made out of those assets.
If a transaction, restructuring or funding is not consummated, we often do not receive any financial advisory fees other than the reimbursement of certain out-of-pocket expenses, despite the fact that we may have devoted considerable resources to these transactions.
Our corporate private equity and real estate opportunity fund businesses are subject to the risk that similar measures might be introduced in other countries in which they currently have investments or plan to invest in the future, or that other legislative or regulatory measures might be promulgated in any of the countries in which we operate that adversely affect our business.
We are a leading global alternative asset manager and provider of financial advisory services. It is not possible to quantify with precision the impact on us or our common unitholders of any such changes in the tax laws.
James in the case of our corporate private equity funds do not remain active managing the fund. We expect that our non-U. Management with a Long-Term Perspective.
The Blackstone Group L. In connection with this offering, we are amending the governing agreements of all of blackztone investment funds with the exception of our proprietary hedge funds and four of our funds of hedge funds to provide that, subject to certain conditions, third-party investors in those funds will have the right to remove the general partner of the fund or to accelerate the liquidation date of the investment fund without cause by a simple majority vote, resulting in a reduction in management fees we would earn from such investment funds and blackstoe significant reduction in the amounts of total carried interest and incentive fees from those funds.
Blackstone Group is considered our predecessor for accounting purposes, and its combined financial statements will be our historical financial statements following this offering. Our general partner will not have any business activities other than managing and operating us.
UPDATE 3-Blackstone Group files for $4 billion IPO
Our hedge funds, many of the hedge funds in which our funds of hedge funds invest and our mezzanine funds and senior debt vehicles may choose to use leverage as part of their respective investment programs and regularly borrow a prospdctus amount of their capital.
We depend to a large extent on our business relationships and our reputation for integrity and high-caliber professional services to attract and retain investors and advisory clients and to pursue investment opportunities for our carry funds. Distributions in respect of these equity interests may not equal the cash distributions previously received by our senior managing directors prior to this offering. We have made and expect to continue to make significant principal investments in our current and future investment funds.
Our revenue, net income and cash flow are all highly variable, primarily due to the fact that we receive carried interest from our carry funds only when investments are realized blackston transaction fees received by our carry funds and fees received by our advisory business can vary significantly from quarter to quarter.
Because our businesses can vary in significant and unpredictable ways from quarter to quarter and year to year, we do not plan to provide guidance regarding our expected quarterly and annual operating results to investors or analysts after we become a public company.
Our partnership agreement also restricts the remedies available to common unitholders for actions that might otherwise constitute breaches of our general partner’s duties including fiduciary duties.
Our business is materially affected by conditions in the global financial markets and economic conditions throughout the world that are outside our control, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws including laws relating to taxationtrade barriers, commodity prices, currency exchange rates and controls and national and international political circumstances including wars, terrorist acts or security operations.
Any interruption or deterioration in the performance of these third parties or failures of their information systems and technology could impair the quality of the funds’ operations and could impact our reputation and hence adversely affect our businesses. In a declining market, the pace of redemptions and consequent reduction in our assets under management could accelerate. As discussed in “Material U. We expect these swings to occur in future years as well, which is one of the reasons why there may be significant volatility in our revenue, net income and cash flow.
The summary historical financial data is not indicative of the expected future operating results of The Blackstone Group L.
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Such variability may lead to volatility in the trading price of our common units and cause our results for a particular period not to be indicative of our performance in a future period. We actively cultivate our relationships with major investment banking firms and other financial intermediaries and are among the most significant clients of many of these firms.
As a consequence, we may be precluded from providing such information or other ideas to our other businesses that might be of benefit to them.
Matters impacting our internal controls may cause us to be unable to report our financial information on a timely basis and thereby subject us to adverse regulatory consequences, including sanctions by the SEC or violations of applicable stock exchange listing rules, and result in a breach of the covenants under our revolving credit facility.
In the event of a market downturn, each of our businesses could be affected in different ways. The information in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of our common units.
UPDATE 3-Blackstone Group files for $4 billion IPO | Reuters
Prozpectus addition, the investment return profiles of most of our investment funds are volatile. These activities may divert management’s attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
As part of the reorganization we effected prior to this offering, our current senior managing directors received partnership units in Blackstone Holdings.
In addition, the Chairman and the Ranking Republican Member concurrently issued a press release stating that they do not believe that proposed public offerings of private equity and hedge fund management firms, including us, are consistent with the intent of the existing rules regarding publicly traded partnerships because the majority of their income is from the active provision of services to investment funds and limited partner investors in such funds.
It is our intention to eventually use a significant amount of borrowings to finance our business operations as a public company. In addition, we operate in businesses that are highly dependent on information systems and technology. For example, the ability to realize any value from an investment may depend upon the ability to complete an initial public offering of the portfolio company in which such investment is held.
The fair value of investments of a corporate private equity, real estate opportunity or mezzanine fund is determined using a number of methodologies described in the investment funds’ valuation boackstone. The asset management business is intensely competitive, with competition based blacksfone a variety of factors, including investment performance, the quality of service provided to clients, brand recognition and business reputation.