Blackstone just lost their CFO. How good can that be? What else can go wrong?
Firstly a downturn in equities could leave Blackstone limited partners with less than optimal liquidity and large commitments to other funds, making it very difficult for Blackstone to raise new capital. that doesn’t sound so good.
Tough compliance rules, especially outside the USA, could make it harder for Blackstone to market and raise capital for any new funds.
Blackstone’s clawback obligations total approximately $1.4 billion, reportedly they had to refund cash to partners in 2010. When investment returns suffer, Blackstone will see embarrassing and financially painful clawbacks. Equities cannot keep going up forever.
George Gutowski writes from a caveat emptor perspective. He recently wrote a financial mystery where a Wall Street Titan is assassinated. See if you cheer for the assassin. Available on Amazon http://amzn.to/1yF4QY