NEW YORK CITY-In a sharp decline from 2010, private equity giant the Blackstone Group has reported 11% in losses in the third quarter, the company said in its quarterly earnings report on Thursday morning. The firm reported economic net income losses of $342 million, or 31-cents a share, down from net income of $339 million from last year companywide.

Stephen A. Schwarzman, chairman and chief executive officer, says in a statement that Q3 “presented extremely challenging” market conditions, dominated by risk aversion and volatility. “While our earnings were not immune to the sharp downward trajectory of global markets, our limited partner investors affirmed their confidence in our world-leading businesses and increased their share of funds with us,” he says.

But as a result of market instability, Blackstone’s real estate segment had revenues of $15.2 million in Q3, a large dip compared with revenues of $257.8 million in Q3 2010. The firm’s ENI also declined to $65.7 million from $148 million in Q3 2010.