Blackstone attracted nearly $70bn in new assets during the first quarter, demonstrating continued investor appetite for the world's largest private capital firm despite a challenging market environment. The New York-based investment group raised $68.5bn in fresh capital and nearly $250bn over the past 12 months, surpassing analyst expectations and growing its total assets under management to $1.3 trillion.

However, returns fell sharply across Blackstone's core businesses. Private credit funds delivered zero net returns in the first quarter after fees, while the firm's large bank loan portfolio lost 1.4 per cent. Over the trailing 12 months, private credit returns dropped to 5.7 per cent—roughly half the returns generated a year earlier. Private equity gross returns slipped to 3.2 per cent, and institutional real estate funds posted a 1 per cent loss before fees.

Infrastructure investments emerged as a rare bright spot, generating nearly 8 per cent gross returns in the quarter and nearly 25 per cent over 12 months, driven by data centre and energy infrastructure holdings. Despite the mixed performance, Blackstone's strong fundraising and 25 per cent growth in distributable earnings to $1.36 per share beat analyst forecasts. The firm also raised over $10bn from retail investors, even as its flagship $45bn retail credit fund faced 7.9 per cent redemptions, prompting Blackstone and employees to inject $400mn to cover withdrawal requests.