Blackstone, the world's largest alternative asset manager, released its third-quarter 2024 earnings results on Thursday, surpassing profit forecasts as the company's assets under management (AUM) soared to a record US$1.1 trillion.
Earnings per share came in at $1.01 versus $0.91 expected, while revenues came in at $2.43 billion versus $2.37 billion expected.
In the third quarter, Blackstone recorded $41 billion in inflows and committed $54 billion in capital — its highest deployment in over two years.
The firm attributed the surge in dealmaking to the improving economic outlook following the Fed’s rate cuts, which helped lift the weight of high interest rates that had previously slowed some aspects of its business.
Blackstone’s private equity funds appreciated by 6.2% in the quarter, and its infrastructure funds rose by 5.5%, marking the highest fund appreciation for the firm in three years.
CEO Steve Schwarzman celebrated the results, calling it a "broad-based acceleration across our business".
Fundraising was particularly strong in Blackstone’s credit division, with private wealth AUM reaching $250 billion. Individual fundraising has nearly doubled year-to-date compared to the previous year.
Among its major deals in the quarter was a $16 billion acquisition of Australia’s AirTrunk, expanding its presence in the data centre market, which supports cloud services and artificial intelligence.
Blackstone also agreed to acquire U.S. software company Smartsheet for $8.4 billion in partnership with Vista Equity Partners.
Stephen Schwarzman, Chairman and CEO of Blackstone, commented on the results: "Blackstone is exceptionally well positioned as the reference firm in the alternatives industry, with leading platforms in compelling, high-growth areas."
As of 10:25 am (AEDT), Friday, October 18, Blackstone (BX) stock was trading at US$169.6, easing 0.1% from Thursday's close of $169.73. The stock reached a day low of $164.29 and a day high of $172.25. Blackstone's market cap stands at $207.73 billion.