Shares of the buyout firm Blackstone Group fell more than 10 percent this morning after it missed Wall Street analysts' expectations in its second quarterly report as a public company.

Blackstone lost $113.2 million during the third quarter, compared with a profit of $372.5 million a year earlier. That figure includes compensation-related charges tied to its initial public offering. Excluding those costs, Blackstone earned $234 million, or 21 cents per share. Wall Street analysts forecast a profit of 30 cents per share.

Revenue rose 14 percent to $526.7 million, far short of the Street's expectations of $765 million.

Private equity revenues rose 42 percent, but the subprime woes hurt Blackstone's real estate holdings. Revenues from that unit fell 44 percent.

"This environment provides us with both challenges and opportunities," Blackstone chief executive Stephen Schwarzman said in a statement. "While it will be difficult to structure very large leveraged transactions in corporate private equity and real estate until the credit markets improve, pricing of assets is more favorable."

Shares of Blackstone reached a high of $38 on the day it went public in late June. They traded this morning for $21.76.