Blackstone earnings on deck

Blackstone shares (yellow) have followed declines in the S&P Banking Index (green).

LONDON (CNNMoney.com) -- Private equity heavyweight Blackstone Group is slated to report third-quarter earnings on Monday, the firm's first full quarter of results since going public in the summer.

The New York-based firm is expected to post earnings of 30 cents a share on revenue of $765 million for the quarter ended in September, according to analysts surveyed by Thomson First Call.

Investors will be watching closely to see how the company, led by CEO Stephen Schwarzman, has navigated the turmoil in the credit markets. Private equity firms like Blackstone (Charts) borrow heavily to do their deals.

They'll also be following the company's view of other challenges facing the industry, including increased scrutiny of fund manager pay. Rep. Charles Rangel (D-NY) included a provision that could double the amount of taxes private equity fund managers pay in the wide-ranging tax legislation he unveiled last month, although the White House has threatened to veto the bill.

In August, Blackstone President and Chief Operating Officer Tony James forecast a more difficult environment for private equity deals but also expressed confidence that the debt crunch would offer opportunities.

The buyout boom hit a roadblock this summer when credit markets tightened. As a result, a number of firms have walked away or renegotiated previously announced deals, risking damage to their reputation.

Last month, Kohlberg Kravis Roberts and Goldman Sachs (Charts, Fortune 500) abandoned their $8 billion buyout of Harman International Industries and instead agreed to invest $400 million in the audio equipment maker.

Meanwhile, the investor group led by private equity firm J.C. Flowers that had agreed to buy Sallie Mae (Charts, Fortune 500) for $25 billion is locked in a legal battle with the college loan provider after backing out of the deal.

But Blackstone, considered one of the sharpest buyout firms, hasn't encountered similar problems. It closed its $26 billion takeover of Hilton Hotels -one of the biggest deals announced over the summer - last month.

Nonetheless, Blackstone shares have been clobbered as investors have grown nervous about the financial sector. The stock has dropped about 15 percent in the last month and is down 31 percent from its all-time closing high.

Blackstone made a stunning market debut when it went public on June 22. Shares soared 13 percent on the first day of trading, but the stock hasn't scaled those heights since.