Market Up, Most PE Firms Down

The market finished way up today, but Blackstone just keeps getting hammered. The stock traded as low as $4.21 per share, before closing at $4.65 per share. That’s an 8.82% loss today ($.0.45 per share), and an 85% decline since pricing its IPO at $31 per share.

For the sake of extrapolation, let’s assume that Apollo Management’s equity has experienced a similar value loss. The firm sold 20% of itself on July 13, 2007 to CalPERS and the Abu Dhabi Investment Authority for $1.2 billion. That gave it an enterprise value of $6 billion. Based on the drop in Blackstone’s share price since that date (when it closed at $29.85), Apollo would be worth just under $1 billion today. Moreover, CalPERS’ and Abu Dhbai’s $600 million stakes would now be valued at around $94 million a piece. Ugh!

Also worth noting that it was a bad day for Fortress Investment Group (down 13.04% to $2 per share) and Allied Capital (down 9.55% to $1.80 per share). On the plus side, American Capital (up 2.07% to $4.43 per share) and Och Ziff Capital Management (up a penny to $1.99 per share) posted modest gains.