The firm attributed the decline to lower growth rate in the carrying value of assets which moderately counteracted by an increase of $71.1m in management and advisory fees to $496.8m.
During the latest quarter period, the firm witnessed an optimum growth in its fee-earning assets under management and total assets under management, which stood at $156.3bn and $190.1bn, respectively, backed by both by inflows and investment appreciation.
Total segment revenues declined to $974.1m from $1.2bn for the first quarter of 2011, due to lower performance fees and lower investment income.
For the latest quarter period ended on 31 March 2011, the company’s total management fees stood at $496.8m, with an increase of 17% from $425.7m during the same period a year ago.
Performance fees slashed 36% to $385.8m for the first quarter of 2012, driven by fall in the real estate and private equity segments.
For the latest quarter, Blackstone’s GAAP results included revenues of $952m, against $1.2bn for the first quarter of last fiscal, while net income attributable to the firm stood at $58.3m versus a net income of $42.7m in 2011.
Blackstone chairman and chief executive officer Stephen A Schwarzman said Blackstone’s first-quarter results demonstrate their ability to generate strong returns for their investors through market cycles and across asset classes and attract new capital.
"Every one of our investing businesses experienced both net capital inflows as well as value appreciation in the quarter. This resulted in total assets under management of $190 billion, a firm record, up an impressive 27% year over year," Schwarzman said.
"We continue to invest in the firm’s ability to identify and source exclusive transactions on a global basis, as well as our operations capabilities, to sustain our outperformance over the long-term."
Private equity revenues declined to $170.7m for the first quarter of 2012 compared to $273.7m during the same period previous year, mainly due to a $76.9m decrease in performance fees, a $17.2m decline in transaction and other fees, and a $16.7m fall in investment income.
The company’s real estate revenues during the quarter ended 31 March 2012 declined $128.5m to $427.2m against $555.6m in the first quarter of 2011, mainly due to declines in performance fees and investment income.
Hedge fund solutions segment registered $117.2m revenues for the first quarter of the latest fiscal compared to $105.4m during the same period previous year.
Credit businesses revenues increased to $180.9m against $156.7m during the first quarter of 2011, primarily due to an increase in base management fees, partially offset by decrease in performance fees.
