March 10 (Bloomberg) -- Blackstone Group LP, manager of the world's biggest leveraged-buyout fund, lost $170 million in the fourth-quarter because of compensation expenses tied to its initial public offering in June.

The net loss compared with net income of $1.18 billion a year earlier, the New York-based company said today in a statement. Profit excluding compensation costs was 8 cents a share, falling short of the average estimate of 20 cents by seven analysts in a Bloomberg survey.

To contact the reporter on this story: Jason Kelly in New York at jkelly14@bloomberg.net

Last Updated: March 10, 2008 08:35 EDT