Blackstone beat earnings and revenue estimates last quarter as assets under management reached a new record, though its private credit fund was hit by a slew of withdrawals.
Earnings per share rose 25% year-over-year to US$1.36, above the Zacks consensus estimate of $1.33. Total segment revenues were up 24% to $3.43 billion, beating estimates of $3.32 billion.
“Blackstone delivered outstanding first‑quarter results despite the turbulent environment, highlighted by almost $70 billion of inflows and positive appreciation across nearly all of our flagship strategies,” said chair and CEO Stephen Schwarzman.
“Our all-weather model protects us in these times of disruption while also allowing us to invest where we see the greatest opportunity.”
Assets under management climbed 12% to a record $1.30 billion. Fee-earning assets under management rose 9% to $937.6 billion.
The company recorded inflows of $68.5 billion during the quarter, led by credit and insurance inflows of $37.02 billion and private equity inflows of $20.35 billion. Blackstone deployed $35.6 billion during the quarter, with realisations of $35.9 billion.
Its private credit fund BCRED reported $3.7 billion in outflows, outpacing the $1.9 billion of equity raised, which Schwarzman credited to growing negative sentiment about private credit. These withdrawals were primarily from larger investors, said COO Jonathan Gray.
“Despite the external noise, our institutional and insurance clients—representing 75% of our credit platform AUM—have continued to commit large-scale capital to the asset class,” said Schwarzman.
Blackstone (NYSE: BX) shares closed 5.7% lower at $122.33. Its market capitalisation is $145.30 billion.
