Blackstone Leads LBO Firms Lower

Sell-off reflects concern IPO door is slamming shut.

Blackstone Group LP and KKR & Co. both had their worst one-day declines in more than a year yesterday on concern that a falling stock market will hinder the buyout firms’ ability to sell companies.

The number of initial public offerings worldwide jumped 23 percent in the first half to 901 deals, according to data compiled by Bloomberg, and the stronger market enabled private- equity firms to sell companies at a profit, increasing distributions to investors and bolstering their own fees.

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