Blackstone IPOs Show Barriers to Returning Fund Cash

Blackstone Group LP’s setbacks this week in the market for new stocks show that private-equity firms have limited options for returning cash to investors and restoring confidence in the leveraged-buyout business.

Slumping demand forced the world’s biggest LBO-fund manager to postpone the initial public offering of Travelport Ltd. and settle for less than half of what it initially sought in the share sale by Graham Packaging Co. New York-based Blackstone’s Merlin Entertainments Group Ltd. signaled yesterday it may delay plans to go public, saying it will “consider and debate its options.”