Blackstone exceeded Wall Street's profit expectations for the third quarter as its assets under management (AUM) hit a record $1.1 trillion, buoyed by a strong rise in the value of its funds and renewed dealmaking activity. The world's largest alternative investment firm reported $41 billion in inflows during the quarter, while committing and deploying $54 billion in capital, the highest in over two years.
The uptick in activity followed the U.S. Federal Reserve's decision to cut interest rates, improving the economic outlook and lifting a prior drag on Blackstone's business. The company's private equity funds appreciated by 6.2%, and its infrastructure funds grew by 5.5%, marking the firm's strongest fund performance in three years.
Distributable earnings, representing cash available for dividends, rose to $1.3 billion, up 6% year-over-year. This equated to earnings per share of $1.01, surpassing the $0.92 analysts had predicted, according to LSEG data.
Key to Blackstone's fundraising success was its credit division, while private wealth AUM surged to $250 billion, with individual fundraising nearly doubling year-to-date. Among major deals this quarter, Blackstone acquired Australia's AirTrunk for $16 billion, strengthening its position in the data center market, and joined forces with Vista Equity Partners to acquire Smartsheet for $8.4 billion.
Blackstone’s stock reached an all-time high of $159.71 on Oct 16, and its market capitalization now stands at $195 billion. Chief executive Steve Schwarzman attributed the performance to "broad-based acceleration across our business."
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