Bengaluru — Blackstone, the world’s largest alternative asset manager, reported a 48% rise in third-quarter profit on Thursday, driven by strong gains in its credit and private equity businesses.
Distributable earnings, or cash that can be used to pay dividends to shareholders, jumped to $1.89bn, or $1.52 per share, in the three months ended September 30, compared with $1.28bn, or $1.01 per share, a year earlier.
Transactions have been done thick and fast in recent months after volatility earlier in the year following US President Donald Trump’s announcement of tariffs on imports as corporate boardrooms adapt to persistent uncertainty.
Asset sales in the credit and insurance arm were $13bn in the quarter, while Blackstone also sold $9.3bn of private equity assets.
Among large deals in the quarter, Blackstone’s credit and insurance business led a $7bn investment in a liquefied natural gas facility owned by Sempra in Texas.
Blackstone deployed $26.6bn of capital in the quarter and has $188.1bn in dry powder.
Keeping up momentum in the fourth quarter, Blackstone has teamed up with private equity peer TPG to take medical diagnostics firm Hologic private in a deal valued at up to $18.3bn.
Strong fundraising
Blackstone’s credit and insurance arm accounted for nearly two-thirds of the $54.2bn in inflows in the quarter, lifting assets under management to a record $1.24-trillion.
The unit, the company’s biggest business by assets, is a key driver of the firm’s growing influence in private credit.
The private equity arm saw segment distributable earnings more than double to $871.5m in the quarter.
Management’s commentary on credit markets will be closely watched, with analysts expecting the industry to temper concerns on asset quality.
Alternative asset managers’ stocks have weakened in recent weeks as the bankruptcies of parts retailer First Brands and subprime lender Tricolor stoked investor concerns on credit risks.
Blackstone shares have slipped 6% this year as of last close, underperforming the benchmark S&P 500 index.
Reuters
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