Blackstone hires ex-Citi executive for credit division

NEW YORK - Blackstone (NYSE: NYSE:BX) has appointed Tyler Dickson, a former top executive at Citi, to spearhead client relations within its Credit & Insurance division, the firm announced Monday. Dickson, who previously served as Global Head of Investment Banking at Citi, will lead Blackstone Credit & Insurance's (BXCI) Institutional Client Solutions team, focusing on investor services and borrower origination worldwide.

The move comes as BXCI continues to expand its footprint in the private credit sector. Gilles Dellaert, Global Head of BXCI, praised Dickson's extensive industry experience and expressed confidence in his ability to enhance client and borrower services across the credit spectrum. Jon Gray, President & COO of Blackstone, highlighted the growth of BXCI and its appeal to a diverse client base, from institutional and insurance clients to private wealth.

Dickson's career at Citi encompassed various leadership roles, where he oversaw a range of banking activities across more than 95 countries. His appointment is seen as a strategic addition to BXCI, which has witnessed its assets under management more than double to $330 billion over the past three years, driven by strong demand in areas such as business development companies (BDCs), private credit energy transition funds, and collateralized loan obligations (CLOs).

The firm's recent hires, including Dan Leiter as Head of International and Philip Sherrill as Global Head of Insurance, underscore Blackstone's commitment to expanding its global presence and insurance platform, which recently exceeded $200 billion in assets under management.

Dickson, who led Blackstone's IPO in 2007, expressed enthusiasm about joining BXCI during a period of significant opportunity in the private credit market. This appointment is part of Blackstone's broader strategy to provide comprehensive credit solutions across corporate and asset-based lending, both investment grade and non-investment grade.

This announcement is based on a press release statement from Blackstone Credit & Insurance.

In other recent news, Blackstone has announced organizational changes and revised financial data for Q1 2024, aiming to streamline operations and provide clearer financial information to investors. The firm's GP stakes business will now be included under the Private Equity segment, while the operations managed by Harvest Fund Advisors LLC have been moved to the Multi-Asset Investing segment.

In addition, Blackstone has divested Alinamin, a Japanese pharmaceutical company, to MBK Partners for about $2.17 billion, while retaining a minority stake. The firm's takeover proposal for Infocom, a Japanese digital comic distributor, is under consideration, valued at approximately $1.78 billion.

Furthermore, Emerson (NYSE:EMR) Electric Co. has agreed to sell its stake in the Copeland joint venture to Blackstone for about $3.5 billion. On the analyst front, Citi maintained a neutral stance on Blackstone's stock, with a slight reduction in its Q2 2024 earnings per share estimate for Blackstone to $1.04.

Lastly, Blackstone announced plans to double the size of its European private credit fund within the next year, following a successful raise of 1 billion euros ($1.07 billion). These are recent developments in Blackstone's operations and strategic direction.

InvestingPro Insights

As Blackstone (NYSE: BX) reinforces its Credit & Insurance division with strategic leadership appointments, the financial health and market performance of the company remain crucial for investors. Blackstone's current market capitalization stands robust at 147.74 billion USD, reflecting investor confidence and the scale of its operations. The company's revenue has shown impressive growth, with a year-on-year increase of 129.76% in the last twelve months as of Q1 2024, signaling strong business momentum.

The firm's P/E ratio, as of the last twelve months leading to Q1 2024, is 42.07, which may appear elevated; however, when considering near-term earnings growth, Blackstone is trading at a low P/E ratio relative to this growth. This is an essential consideration for investors, as highlighted in one of the InvestingPro Tips, which suggests that the company's net income is expected to grow this year. Moreover, Blackstone has maintained a consistent dividend payout for 18 consecutive years, featuring a current dividend yield of 2.75%, marking it as a potentially attractive stock for income-focused investors.

InvestingPro also notes that Blackstone has been profitable over the last twelve months and is predicted by analysts to maintain profitability this year. A testament to the company's financial stability and operational success is its strong return over the last five years, as well as an impressive return over the last decade. For a more comprehensive analysis and additional insights, there are 8 more InvestingPro Tips available at https://www.investing.com/pro/BX. Investors interested in deepening their understanding of Blackstone's financial outlook can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking valuable investment information.

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