Blackstone, which made big profits last year by flipping commercial properties at the height of the market, is considering buying back into some of those assets at distressed prices as part of an effort to cash in on the credit crisis. Blackstone’s emphasis on buying distressed assets highlights efforts by buy-out  firms to reinvent themselves as finance for large leveraged buy-outs becomes more difficult to obtain. The firms are aiming to purchase distressed debt and other assets at deep discounts, financing those deals with more debt if possible, and then hoping that prices recover. Blackstone recently raised $10.9bn for its latest real estate fund. Lex notes that Blackstone is a long way off its IPO price of $31 a unit but is making some of the right moves.

This entry was posted by Gwen Robinson on Friday, May 16th, 2008 at 5:39 and is filed under Capital markets, M&A, Private equity. Tagged with blackstone. Edit this entry.