Blackstone not to replace head of European PE

Baratta, who was named global head of private equity for Blackstone yesterday, previously headed the group's European practice, which he had joined in 2001.

Speaking in a conference call following the company's Q2 earnings report, COO Tony James reportedly argued that Baratta's knowledge of European private equity paired with strong junior management would make a replacement redundant.

Yesterday, Blackstone reported Q2 losses of $0.14 per share, which amounts to $75m. The group's net income dropped from $804.2m in Q2 2011 to $212.3m this year. This represents a 74% drop in profits, with revenues falling from $1.3bn to $627m over the same time period. The company's poor performance is largely related to the economic downturn in the US and Europe.

CEO Steven Schwartzman commented: "In an environment characterised by slowing global growth and heightened investor caution, our limited partner investors are entrusting us with a greater share of their capital."

Blackstone Group has $190.3bn of assets under management.

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