Blackstone reported better-than-expected first-quarter earnings on Thursday (Friday AEST), driven by strong performances in its private equity and credit divisions.
However, the company’s Chief Executive Officer warned that heightened market volatility could impede asset sales in the near future.
Earnings per share stood at $1.09, surpassing estimates of $1.05, while revenues reached US$2.76 billion, slightly ahead of expectations of $2.75 billion.
"Uncertainty around tariffs, and their potential impact on economic growth and inflation, has dramatically impacted investor sentiment," said CEO Stephen Schwarzman during the earnings call.
Schwarzman, a long-time backer of former President Trump, added, "We believe a fast resolution is critical to mitigating risks and keeping the economy on a growth path."
His concerns echo those of other business leaders and economists, many of whom have increased recession warnings following the unveiling of the full tariff scope on 2 April.
During the quarter, Blackstone drew in $61.64 billion in inflows, lifting its assets under management by 10% to $1.17 trillion. About half of these inflows were channelled into the credit and insurance segment, which provides a wide range of debt financing solutions to companies.
Blackstone has increasingly positioned itself as a major player in private credit, benefiting from a growing trend among companies to seek funding alternatives outside traditional banks.
The firm’s private equity unit also posted robust results, with segment distributable earnings rising 13% to $564.6 million, supported by $6.5 billion in asset sales.
However, the real estate business continued to lag, with assets under management falling 6%.
Nevertheless, tariff-related increases in construction costs could constrain new supply and support real estate values if the economy avoids a recession.
"The conversations with institutional limited partners around real estate have really improved over the last six months," said President and Chief Operating Officer Jon Gray, although he cautioned that the business remained in the early stages of recovery.
At the time of writing, Blackstone (NYSE: BX) stock was trading at US$124.91, up 3.9% from Monday's close of $120.22. Blackstone's market cap stands at $162.03 billion.
