Blackstone Capital: The first major investment firm to go public

By The Associated Press-NORC Center for Public Affairs Research Blackstone’s stock surged in trading Wednesday after its new stock deal with hedge fund operator Elliott Management LLC raised the stock price to $35 a share.

The deal was worth $2.2 billion, according to the New York Stock Exchange.

Elliott’s stock rose $1.6 percent to $33.45 a share, while Blackstone rose $3.2 percent to nearly $55.10 a share in New York.

The firm has a $2 billion debt and $3 billion equity capital.

Shares in Blackstone have risen steadily over the past few years, with its IPO value in February 2012 topping $30 billion.

The stock price is up 27 percent over the last five years.

“The stock is rising and rising, but the fundamentals are still pretty good,” said John Nieser, a former portfolio manager at Blackstone.

“There’s not much downside.”

The deal raises $3 trillion in new capital.

The move came after Elliott raised $2 million in a financing round to help fund the acquisition of Blackstone-controlled companies including energy and infrastructure giant Cogent Energy Corp., which Elliott bought for $15.4 billion in 2010.

Cogency is owned by billionaire Robert Mercer, who is backing a new hedge fund called BlackRock Inc. to take on more of the energy sector’s portfolio.

Blackstone, which has more than 2,000 employees and has a revenue of more than $10 billion, is one of the largest publicly traded companies in the United States.

The fund, led by Blackstone founder John Paulson, is focused on the U.S. energy sector.

Elliott declined to comment.

Blackwood was founded in 2003 by former Wall Street Journal publisher Paul Tudor Jones and Blackstone partner David M. Loeb, according.

Black Stone has a staff of about 2,300 people and employs about 300 people.

It also owns stakes in several smaller energy companies, including Duke Energy, which owns a portion of American Electric Power, which is under fire from regulators.

Elliott is expected to continue to invest in energy companies that have significant stakes in the sector.

The company has said that it expects to continue operating its business with Elliott.

The investment from the hedge fund will help Blackstone build out its pipeline of energy investments, Blackstone said in a statement Wednesday.

“We’re proud of our long history of investing in energy stocks and our commitment to our clients and customers,” Elliott said.