Blackstone Reports Record $1.3T AUM, Private Credit Marks Down Medallia Debt
Blackstone achieved record $1.3 trillion AUM and 25% distributable EPS growth to $1.36, yet shares fell over 5% on fee growth and real estate headwinds. Its Private Credit arm marked down Medallia’s first-lien debt to 60 cents on the dollar and joined lenders in a potential $1.8 billion restructuring.
1. Q1 Earnings and AUM Growth
Blackstone posted record $1.3 trillion AUM in Q1, driven by strong inflows into private equity, real estate and credit. Distributable earnings per share rose 25% year-over-year to $1.36, while segment revenue climbed to $3.433 billion.
2. Share Price Reaction
Despite robust fundamentals, shares slid over 5% in premarket trading on concerns about near-term fee growth headwinds and challenges in the real estate portfolio, reflecting investor caution on rising rates and sector profitability.
3. Private Credit Exposure to Medallia
Blackstone Private Credit participated in a $1.8 billion recurring-revenue loan to Medallia and marked down its first-lien debt value to 60 cents on the dollar from roughly 78 cents last quarter, as lenders prepare for a possible takeover in the restructuring.
4. Outlook and Implications
The firm’s solid results underscore its scale, but heightened credit markdowns and restructuring negotiations at Medallia highlight risks in the private credit portfolio. Investors will monitor future debt valuations and fee growth momentum across strategies.