Blackstone Inc (BX)

[eastunder]

UPDATE 1-BMO raises Blackstone Group to outperform

Thu Jul 5, 2012 10:01am EDT

* Sees co's NNA growth outpace traditional asset managers'

* Raises price target on stock to $17 from $16

July 5 (Reuters) - BMO raised alternative asset manager Blackstone Group to "outperform" from "market perform" as it expects the company's net new asset (NNA) growth to outpace that of traditional asset managers.

It expects Blackstone's NNA - the net change in new client assets under management - to grow 17.2 percent in 2012, and sees more pension funds warm up to alternative investments.

"Most pension plans are underfunded and may seek higher-returning investments, such as alternatives, to bring their asset liability mismatch back into balance," the brokerage said.

Despite economic worries BMO expects the company to succeed in its fundraising efforts, including Blackstone Real Estate Partners (BREP) VII that has reportedly raised nearly $13 billion in funds.

"This is the largest real estate opportunity fund ever raised and highlights the strength of Blackstone's fundraising capabilities," the brokerage said, raising its price target on the company's stock by $1 to $17.

Blackstone's funds make investments into private equity, real estate, credit and hedge funds all over the world and are sometimes involved in leveraged buyouts.

Blackstone shares were marginally up at $13.44 on Thursday morning on the New York Stock Exchange.