Blackstone's profit falls as choppy market tempers investment exits
BX•Blackstone's third-quarter distributable earnings fell 13% to $1.32 per share as net realizations dropped 34% to about $332 million. Net inflows topped $63 billion, lifting assets under management to $1.37 trillion.
1. Exits weigh on earnings
Blackstone posted lower third-quarter earnings as a turbulent market environment weighed on its ability to cash in on investments. Net realizations fell 34% to about $332 million, including a nearly 50% drop in private equity, while distributable earnings fell 13% to $1.32 per share.
2. Inflows support fees
Net inflows exceeded $63 billion, pushing assets under management to $1.37 trillion and fee-related earnings up 6%. Credit and insurance brought in nearly $36 billion, followed by private equity with $12.6 billion. Fee-related earnings from managing private equity funds rose 26% to $619 million.
3. Market activity slows
Global M&A activity fell 41% sequentially in the third quarter. Blackstone said last month that redemption requests in its BCRED fund remained elevated in the quarter, while maintaining that its portfolio fundamentals remained healthy.
