China Investment Corp. paid $3 billion for a 9.9% stake in
Blackstone just before the private equity firm's June 2007 IPO, but has
seen the value of its investment fall roughly 70% since as tight
credit markets have hamstrung Blackstone's ability to do deals. Shares
of Blackstone closed at $9.36 on Thursday. Their IPO price was $31.
After initially rushing in to invest in U.S. financial firms when
fallout from the credit crisis began, sovereign wealth funds have
decided to stay on the sidelines, content to simply increase the size
of their stakes, as conditions have dramatically worsened in the
financial sector.
- George White
See Blackstone regulatory filing
