Blackstone Group LP (BX) shares dropped sharply by 5.04% during Tuesday's trading session, underperforming the broader financial sector.

The decline followed reports that Blackstone lost out to rival Bain Capital in the bidding for Japanese skincare and haircare company FineToday. Bloomberg cited sources familiar with the matter, noting that Bain Capital had made a binding offer, leaving Blackstone and KKR out of the running. This development likely disappointed investors, contributing to the stock's downward movement.

Additionally, Blackstone announced a partnership with OneDigital to include private investments in its 401(k) program alongside Apollo Global Management and Ares Management. While the initiative aims to enhance diversification and retirement outcomes, the market reaction was negative, with Blackstone's stock declining further after the news.