Blackstone’s Brand Says Leverage Isn’t Answer to Big Returns

Blackstone Group Inc. dealmaker Martin Brand says the firm is looking beyond adding debt to buyouts to bolster returns.

“In the current environment, multiples are elevated and leverage adds less to the returns,” Brand, co-head of U.S. acquisitions at Blackstone’s private equity group, said in a Bloomberg Television interview. By focusing on operating performance “we can deliver returns for investors in a way that’s different from maybe the perception of the levered buyouts.”

Blackstone’s Martin Brand says “we are patient investors.”

Source: Bloomberg)

Brand is honing in on operational prowess as Blackstone is extending investments to more growth companies, having backed companies including Bumble Inc. and Oatly Inc. ...