Blackstone, the publically traded US private equity and property firm, today admitted that it had lost more than $100 million during the first quarter as the credit crunch depressed revenues across the group.

The firm said: "The duration of current economic conditions is unknown", as it reported a $93.6 million loss in the three months to March 31, 2008, reflecting a fall in the value of its assets, compared to a $957.8 million profit in the first three months of 2007.

Blackstone also disclosed a steep fall in revenues, down from $1.23 billion last year to $32.3 million in the first quarter. The most pronounced decline was in corporate private equity where Blackstone said that revenues fell from a $208.9 million gain in the first quarter last year to a fall $116.7 million fall from January to March.

The group revealed that revenues from its real estate division plunged by 94 per cent to $47.9 million while Blackstone's Marketable Alternative Asset Management division, which houses its hedge fund business, reported an 81 per cent fall in revenue. Financial advisory revenues fell 24 per cent to $71.2 million.

The firm said: "Reduced liquidity, which was evident in the second half of 2007, also accelerated in the first quarter of 2008. Lenders severely restricted substantially limited new commitments to senior loans and high yield debt, which limited industry-wide leveraged acquisition activity levels in both corporate and real estate markets.

"Recently announced private equity-led acquisitions have mostly been smaller in size and global completed mergers and acquisition activity declined."

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