Blackstone plans to list 8 firms, sell 5 others: report

Global investment firm Blackstone is planning to list up to eight of its firms and sell at least five others, a move that marks a shift in its pessimistic view about the world economy, media report says.

"Blackstone, the world's largest buy-out firm, is planning to list up to eight companies it owns and sell at least five others, marking a reversal of its pessimistic view of the global economy and financial markets, " The Financial Times reported.

"We see the world changing once again. At least for private equity, the worst is behind the industry," the report quoted Blackstone founder Steve Schwarzman as saying in a letter to its investors.

Schwarzman has expressed some qualifications about the recovery, saying it was a product of fiscal stimulus and inventory rebuilding, both one-time events.

Making it clear that Blackstone was acting to capitalise on improved conditions, Schwarzman said, "We are seeing beginning of realisations through strategic sales and public equity offers." 

He said the firm was also in selling process of five companies it owns, at values twice as high as those estimated at the end of 2008. 

"Investors are likely to receive about $2.8 billion as their share of the profits, with about $1.2 billion coming from the expected sale of Kosmos Energy," it added.

Moreover, Blackstone is considering listing of eight other companies in which it has invested collectively more than $4 billion, during the next year.

Schwarzman's stance is noteworthy as no other leading buy-out firm anticipated economic downturn to the extent that Blackstone did, nor turned as bearish as early, FT said in the report.     

Blackstone has been among the most active private equity buyers in 2005 and 2006, but had grown cautious after it bought Freescale Semiconductor in September 2006. 

As recently as its August earnings call, Blackstone had remained cautious, saying it did not expect to list or sell many of the companies in which it had invested.