Blackstone

Blackstone’s investors are rightly worried about the future for corporate buyouts. But the most immediate risk for the private equity firm comes from its real estate group. Blackstone’s property business, run by Jonathan Gray, made up half its revenues in the first half of the year. Earnings were fuelled by the $44bn buyout of Equity Office Properties in February. That deal marked the top of the commercial real estate market. If the over-heated property market runs into trouble then Blackstone’s...