Blackstone (BX.N), the world’s largest alternative investment firm, surpassed Wall Street estimates for its key earnings metric in the latest quarter, reporting a record $1.1tn in assets under management (AUM) and an increase in fund value, according to a report by Reuters.
The New York-based firm saw $41bn in inflows during the third quarter, while deploying and committing $54bn in capital, its highest in over two years. This surge came amid a resurgence in dealmaking, driven by the US Federal Reserve’s rate cuts and a stable economic outlook.
In recent quarters, higher interest rates had weighed on parts of Blackstone’s business. However, with the Fed now shifting toward an easing cycle, the firm saw this pressure begin to ease. Blackstone’s private equity funds appreciated by 6.2% in the quarter, while its infrastructure funds grew by 5.5%, marking the firm’s highest fund appreciation in three years.
CEO Steve Schwarzman described the results as a “broad-based acceleration across our business.”
Blackstone’s distributable earnings, which represent cash available for dividends, reached $1.3bn in the third quarter, a 6% increase year-over-year. This resulted in distributable earnings per share of $1.01, exceeding analysts’ predictions of $0.92, according to LSEG data.
The firm’s fundraising efforts were particularly strong in the credit space, with private wealth AUM hitting $250 billion. Fundraising from individual investors nearly doubled year-to-date compared to the previous year.
Shares of Blackstone rose 6.65% to $170.29 on Thursday afternoon, giving the company a market value of approximately $208bn.
