NEW YORK, April 17 Blackstone Group LP is
unlikely to make a foray into commodity trading in the short
term as the world's largest alternative asset manager struggles
to find a target to fit its asset-light business model, a senior
executive said on Thursday.
In his first earnings call with reporters since Blackstone
lost out to Mercuria to buy JPMorgan Chase & Co's
physical commodity division, Blackstone President Tony James
said he is still interested in broadening the company's revenue
"It remains of interest, but I would not count on us doing
anything in the short term," he said. James did not identify any
Instead, he reiterated a stance outlined in the company's
January results call that the potentially risky,
capital-intensive business of trading physical commodities may
be at odds with Blackstone's business model.
"The constrains are we don't really want to become a
proprietary asset-heavy firm on the one hand," he said.
"On the other hand, just being a trading business without
the physical side, I think you'd miss something there because
you don't have the insight of being in the physical business
which I think is important for being consistently successful in
Those concerns are similar to those that have plagued Wall
Street banks in recent years. Morgan Stanley and others
are retreating from the space due to tighter regulation.
(Reporting by Josephine Mason)