The investment managers at Fortress Investment Group LLC advised Blackstone Group LP that it is time to exit investments as interest rates rise and stock prices increase. Blackstone took advantage of the growing financial market and sold shares in three companies: PBF Energy Inc, General Growth Properties Inc and Nielsen Holdings NV, and took another three public. Blackstone reported a second-quarter income of US$703 million, which is more than triple than the previous year's second quarter earnings.
"This is a better time for selling our existing investments than making new investments," said Pete Briger, who oversees the Fortress Investment Group's US$12.5 billion credit business. "There's been more uncertainty that's been fed into the markets."
The Fortress observations echo the remarks of Apollo Global Management LLC Chief Executive Officer Leon Black to Blackstone President Tony James. Black said that the current environment is primed for selling because credit markets are still hot and equities are rising.
"It's almost biblical: there is a time to reap and there's a time to sow," Black said at a conference in April. "We think it's a fabulous environment to be selling. We're selling everything that's not nailed down in our portfolio."
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