He is dumping his liability risk while the company is realizing 3% increase in profits in the third quarter on PERFORMANCE FEES.
Blackstone was a very successful equity company, but, the desire for cash flow was more than they could handle so they went public with a IPO. Those decisions happen because the future of the company lost it's luster. That is simply my opinion.
Fees. Of course. A quick turner around of cash flow for cashing in stock holdings. Personal wealth while the public thinks they are getting a bargain and great opportunity. Why not, the American investors will buy anything.
The ripe off. When will it ever end?
By Devin Banerjee and David Carey
October 28, 2013
Blackstone Group LP (BX:US) (click here) President Tony
James is reducing his stake in the private-equity firm he helped
build into the world’s largest manager of alternative assets
over the past 11 years.
James sold 3.25 million shares of New York-based Blackstone
between Oct. 23 and Oct. 25 at prices ranging from $26.71 to
$27.85, according to a filing with the U.S. Securities and
Exchange Commission last week. James has sold at least 8.25
million shares this year in three transactions, about a fifth of
the equity he held in Blackstone at the beginning of the year,
according to regulatory filings (BX:US).
James said he has no plans to leave the firm. Some
colleagues inside Blackstone have been speculating that the 62-year-old may be seeking a new career outside of private equity,
according to people familiar with the firm, who asked not to be
identified because the matter was internal.
“I am not leaving Blackstone,” James said when reached by
telephone over the weekend. “I will not leave Blackstone in
years.”
Peter Rose, a Blackstone spokesman, declined to comment on
James’s share sale.
Blackstone has rallied (BX:US) 71 percent this year and this month
reached the highest level since 2007, the year the firm went
public.
This month’s transactions were valued at about $88.6
million, the filing showed. They were made through a company
controlled by James, his spouse and a trust for his children. In
two other sales this year, James sold 3.5 million shares, valued
at about $64.2 million in February and 1.5 million shares, worth
about $34.2 million, in July...
I doubt he is going to reinvest in anything except his own comfort and security. He is selling his stocks because the company has finally come close the the selling price before the global economic collapse of 2008. He can't sell all his stocks at once, otherwise, it would tank the company and diminish his take. There is no big secret here, he wants his money before The Fed takes away Quantitative Easing and the stock prices fall again in what might be another recession.
