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Mary did -- thank you.
Taipei these days with stocks to record highs a lot of folks wondering what to do so -- the Smart money heading Jones -- attack in the senior managing director for Blackstone where she read the external relations and strategy group -- -- TO.
You -- your -- your take on the market is it worth all the hype or to the fundamentals actually support these record levels wouldn't think so in private equity where we really take a longer term the year ago.
But we have to pay a premium to the market you know we're looking at fifteen times multiple.
In an environment where the economy is growing earnings are growing -- maybe 23%.
And so valuations feel -- Okay so in other words if you're looking at just traditional investment -- alternative investment obviously which is with the Blackstone Group specializes in this is your claim to fame.
To the tune something like 200 an eighteen million billion dollars under management crass -- trending there are more opportunities and alternative investment this when you can just looking York.
Track record in the news headlines you've generated over the last couple weeks first before we get into -- -- specifics of that.
Give me a sense of what kind of private equity deals or alternative investments are hot right now the types of deals with -- whether or not there a lot of bidding wars going on -- So when there is a lot of liquidity available interest rates have very low.
That tends to drive pricing up and so absolutely.
There's fierce competition for deals and so we focused.
In different areas I'll run through them but in private equity we've really focused on nontraditional -- so rather than paying.
Big premiums in the market 20% premiums and taking public company's private.
We focused on building up companies backing management teens buying out of favor industry's so for example.
We back to management team to -- a refinery assets when no one was interested.
Built up a company took that public.
We will buy pieces out of companies that are in distress need to sell so I would say we're not really.
Long market where finding different ways to deploy capital there because simply put there just aren't as many standalone companies on the market these cases there -- perhaps 510 years ago or where we think we can generator return for our investors and and the big challenge is that most of our investors are corporate pension funds government pension funds.
Foreign governments around the world and they need to generate a return at six to 8%.
And business is doing well for you guys I know the publicly traded shares of blacks and -- -- something like 40%.
Year to date you're able to charge higher management fees as well.
Fees as high as they were around the time the financial crisis right before that hit correct so that's also got a it helpful to the bottom line now we've been very fortunate and in all of our businesses -- in real estate we've outperformed the benchmark by over a thousand basis points.
In private equity 900 basis points in.
Our hedge fund business 400 basis points and -- credit.
Funds have generated close to 20% returns annually -- -- Because of that we've seen investors increasingly give us more and more dollars to invest on their behalf.
For not just investments -- I know -- -- invitation is black since four and a half billion dollar investment to buy distressed homes down some areas hardest hit during the financial crisis.
And I'm linking these together for time purposes hiring 50000 veterans across a portfolio companies is it purely altruistic -- kind of timeframe.
Especially with the real estate deal as you expect to benefit -- out so two different.
-- -- them as well as it relates to -- -- house saying it was taking risk capital.
We have to generate -- good return tower for our investors and we think we well.
But it was deploying capital in such a way that -- -- buying post foreclosed homes fixing them up really investing.
In creating a very high quality product.
And people can rent those homes now in the average cost is about 30% last than the cost of renting an apartment.
As it relates to veteran Steve Schwartzman.
-- heard the call that there was a big need to hire veterans.
Realize here we are we manage and -- a lot of companies eighty companies roughly on behalf of our investors.
And just thought this is something we have to DO.
And so this is purely altruistic but it's the right thing we think it's good for business we think it's good for the country and so we've committed to hiring.
50000 veterans over five years.
Well thank you for sharing the business outlook with me today Jones still -- -- and question will be participating in 181000.
13% Rochester -- the business New York City conference at dean is -- across right economic transformation in the year ahead.
Also honored to be -- to moderate this panel -- -- general seem outbreak -- and thank you thank.
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