Blackstone Inc. reported a 9.2% decline in third-quarter distributable earnings to $1.72 billion, missing dealmaking headwinds from higher interest rates and inflation. President Jon Gray noted volatility in markets that slowed the IPO sector and muted transaction activity. Infrastructure led performance with a 6.4% return, while data-center leasing, logistics and hotels provided strength.
Real estate and private equity segments both struggled, with earnings falling 10% and 7% respectively. Total assets under management rose 10% to $1.37 trillion. The credit and insurance arm saw distributable earnings climb 4% to $433 million, accounting for over half of the firm's $63.3 billion in inflows during the quarter.
Blackstone ended September with $228.9 billion in dry powder, including $46.9 billion for real estate and $91.5 billion for private equity. The firm deployed $30.1 billion in the quarter, including its investment in Falcata and a minority stake in five Williams Cos. power plants. Gray expressed optimism for a strong fourth quarter, citing momentum across the business.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing