Global credit market squeeze to hit buyouts: Blackstone
16 Aug 2007
The tightening of the global credit market will make acquisitions more difficult, warns US private equity giant Blackstone, as cheap bank credit to fund takeovers will no longer be forthcoming because of weakness in the US sub-prime loans market and higher interest rates.
Blackstone's comments accompanied its unveiling its second quarter net profit that jumped to $774 million from $224m a year earlier on revenues of $973 million from the year before, though below market expectations of $992 million.
The private equity firm that had raised $4.13 billion in a partial floatation said it was now facing "more challenging financing conditions". In July it acquire The Hilton Hotels chain for $26 billion.
The Chinese government owns a 10-per cent stake in Blackstone.