Blackstone beat second-quarter profit estimates on Thursday, as the world’s largest alternative asset manager benefited from robust gains in its credit and private equity arms.
Shares rose nearly 1.1% before the open and were on track to turn positive for the year if gains hold.
Even though tariffs uncertainties remain a source of concern for the economy, resilient investors have propelled equity markets to record highs, enabling large asset managers such as Blackstone to capitalize.
Asset sales in the credit and insurance segment were $10 billion, while the company also sold $7.3 billion of private equity assets. It had $181.2 billion of capital available for deployment.
Its distributable earnings, which represent cash that can be used to pay dividends, grew 25% to $1.6 billion, or $1.21 per share, for the three months ended June 30. It exceeded analysts’ expectation of $1.10, according to data compiled by LSEG.
Blackstone has said it remains capable of executing deals even in uncertain environments, underscoring its resilience should trade tensions escalate further.
As of last close, Blackstone’s shares were down slightly this year, compared with an 8% gain in the benchmark S&P 500 .SPX index.
STRONG INFLOWS
Inflows of $52.1 billion helped push Blackstone’s assets under management to $1.2 trillion, up 13% from a year ago.
The credit and insurance segment attracted more than half of the total inflows. The unit is a key driver of Blackstone’s growing influence in private credit, as more companies turn to investment firms for flexible financing.
The private equity arm also recorded segment distributable earnings of $751.4 million, up 55% from a year ago.
Assets under management at the real estate division fell 3%, but segment distributable earnings grew 10%.
The company had said tariffs could drive up construction costs and reduce new supply, potentially elevating real estate values if the economy avoids a recession.
Reuters
