Blackstone's $123 Billion Investment Surge and $1.1 Trillion AUM Growth
2024-10-20
In the Blackstone third quarter 2024 earnings call, key executives, including Steve Schwarzman, Jon Gray, and Michael Chae, discussed various important aspects of the business. The company reported a GAAP net income of $1.6 billion and distributable earnings of $1.3 billion, with distributable earnings per common share at $1.01. A dividend of $0.86 per share was declared to be paid to holders of record as of October 28.
Blackstone highlighted their increased investment pace over the last 12 months, deploying $123 billion. Significant developments were noted in fund depreciation and engaging with clients in sectors such as artificial intelligence, digital energy infrastructure, and renewable energy transition. The company expanded its presence in the data center sector and made major acquisitions.
The real estate and private credit businesses of Blackstone saw positive impacts from borrowing spreads, lower new supply, and growth opportunities in private credit markets. They managed $432 billion in third-party private credit business, marking a 20% increase year-over-year, with total inflows exceeding $100 billion. Blackstone's insurance business also experienced growth, rising by 24% year-over-year to $221 billion.
In terms of fundraising initiatives, Blackstone closed on EUR 1 billion for their new open-ended Europe-focused infrastructure vehicle and emphasized their capital-light, brand-heavy model. The firm's total AUM increased by 10% year-over-year to $1.1 trillion, with fee-related earnings at $1.2 billion and distributable earnings at $1.3 billion.
The company's investment performance in various sectors like corporate private equity, infrastructure, and data centers was highlighted, along with the growth in the insurance business and the potential for increased deal activity in real estate and private equity. Blackstone's focus on private credit, secondaries market, and strategic investments positions them well for future growth and success in the evolving business landscape.