Overview
- Blackstone, which reported results Thursday, said distributable earnings fell to $1.32 per share as third-quarter profit dipped year over year.
- The firm’s net realizations fell about 34% to roughly $332 million, driven by nearly a 50% decline in private equity exits that reduced cash from sales and IPOs.
- Strong fundraising offset weaker exits, with roughly $63 billion of net inflows lifting assets under management to $1.37 trillion and boosting fee-related earnings.
- Redemption requests in Blackstone’s BCRED private credit vehicle remained elevated while opportunistic real estate values fell, though management said portfolio fundamentals are healthy.
- Management highlighted concentration in data centers and logistics as a strength given rising demand for compute, but warned the higher cost of capital could keep transactions slow and pressure future realizations.