Blackstone’s Net Income Slips, But AuM Bucks Rise Broader Market Trend

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Tom Burroughs,
group editor,

October 24, 2022


One of the most striking figures was the growth in assets under management during the period under review, contrasting with how the assets of banks and traditional long-term asset managers were affected by the fall in the markets. stock and bondholders. Blackstone focuses on private markets, which have recently caught the attention of wealth managers.

Blackstone, a leading global player in areas such as private equity, reported third-quarter net profit fell to $3.205 billion from $3.7 billion a year earlier. Total revenue, however, rose sharply from $1.058 billion to $6.22 billion. Total costs more than doubled to $2.654 billion last quarter from $961.3 million a year earlier.

Fee-related revenue (FRE) was $1.2 billion ($0.98/share) in the quarter, up 51% from the same period in 2021.

Blackstone said total assets under management were $950.9 billion, up 30% from a year ago, in contrast to the drop in assets under management of conventional portfolios, d stocks and bonds of many banks and wealth managers as stock markets crashed.

Fee-bearing assets under management were $705.9 billion, up 34% year-on-year, the New York-based group said in a statement. The group’s perpetual capital assets under management were $359.6 billion, up 83% – an example of the popularity of such an ‘evergreen’ investment. (This news service told Blackstone about its perpetual model here.)

The firm said it recorded investment inflows of $44.8 billion; it also announced investment achievements of $15.7 billion during the quarter.

“Our clients entrusted us with $45 billion in inflows in the third quarter and $183 billion year-to-date, and we grew total assets under management by 30% year-over-year. to reach a record $951 billion,” said Stephen A Schwarzman, Chairman and CEO. executive, said.

Rival investment firms KKR and Carlyle will release their results on Nov. 1 and Nov. 8, respectively.

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