Boston, MA 10/10/2014 (wallstreetpr) – The Blackstone Group L.P. (NYSE:BX) likely the next big company to separate its business wings according to growth rates, say Bloomberg analysts.
Analysts Take
According to an article, The Blackstone Group L.P. (NYSE:BX) could benefit significantly if it follows the current market trend where big corporate are chopping off slow-growing businesses separate from the faster ones. Similar incidences have been highlighted in the moves of big names that include eBay Inc (NASDAQ:EBAY), Symantec Corporation (NASDAQ:SYMC) and Hewlett-Packard Company (NYSE:HPQ). The strategy hints at companies’ urge to find ways to pay back shareholders the right value for their money. If trend is followed, it is evident that markets are surging up higher, and such spin-offs result in an immediate increase in stock prices.
The Blackstone Group L.P. (NYSE:BX) was among the first private equity firms which have taken the shape of alternative-asset supermarket. However, if its recent history is viewed, its financial advisory business is yielding revenues at a much slower pace as compared to its acquisitions. In such a scenario, the company could benefit from splitting its financial advisory division, encompassing its mergers and acquisitions advisory unit. Its previous decades’ take-over, including closed-end mutual funds, hedge-fund management, mezzanine lending and real estate are growing business units.
Potential Candidates
Considering the other relevant question here, as to who might be interested in Blackstone’s financial advisory unit is also important. According to sources, the boutique company, PJT Capital could buy it. Operated by ex-banker at Morgan Stanley, Paul Taubman, the company has been engaged with some of the biggest acquisitions lately. One such transaction it had worked on is the Comcast Corporation (NASDAQ:CMCSA) $45 billion buyout of Time Warner Cable Inc (NYSE:TWC).
Apart from PJT, other boutique companies such as Moelis & Co (NYSE:MC), Greenhill &Co., Inc. (NYSE:GHL), Perella Weinberg Partners, Evercore Partners Inc. (NYSE:EVR) and Centerview Partners have been engaged with big banks. The information has been detailed in the Wall Street Journal.
