BX- looks like you have to deal with a K-1 tax form if you buy BX units? One thing thatirks me about these asset managers is the dilution (unit count increased mor than 10% YOY) that seems to be inherent with these private equity asset managers. The unit issue seems to be nothing than disguised compensation to me, and I noted that in some cases, the unit count increases faster than assets under management. Yes, you have to deal with a k-1 for BX units.
They do have a handsome equity reward for their managers. From the last 10k:
<For the three months ended March 31, 2012 and March 31, 2011, the Partnership recorded compensation expense of $222.4 million and $426.3 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $5.5 million and $4.2 million, respectively.>
Please correct me if I am wrong but the compensation seems to be ok as the shareholders have not been cheated. I just looked at the last two years.
The increase in shares is lower than the increase in income comparing 2011 to 2012.
Around 12% increase in shares but 18% increase in net income.
Weighted-Average Diluted Common Units Outstanding
| | | 517,389,558 | | | | 457,652,916 | | | |
|
| | |
|
| | Diluted Net Income Per Common Unit
| | $ | 0.11 | | | $ | 0.09 | |
Assets under management seems to have increased by a higher percentage. Around 21%
| $ | 190,074,167 | | | $ | 149,963,465 | |
