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Blackstone's Net Income Slips, But AuM Rise Bucks Wider Market Trend

Tom Burroughes

21 October 2022

, one of the world’s main top players in fields such as private equity, has reported a slip in third-quarter net income to $3.205 billion from $3.7 billion a year before. Total revenues rose sharply, however, to $6.22 billion from $1.058 billion. Total costs more than doubled to $2.654 billion in the latest quarter from $961.3 million a year before.

Fee related earnings (FRE) stood at $1.2 billion ($0.98/share) in the quarter, up 51 per cent on the same period in 2021.

Blackstone said total assets under management stood at $950.9 billion, rising 30 per cent on a year ago – contrasting with how AuM in conventional, equity and bond portfolios of many banks and wealth managers has fallen as stock markets have tanked.

Fee-earning assets under management were $705.9 billion, rising 34 per cent year-over-year, the New York-based group said in a statement. The group’s perpetual capital AuM was $359.6 billion, surging 83 per cent – an example of how such “evergreen” investment is proving popular. (This news service spoke to Blackstone about its perpetual model here.)

The firm said it logged investment inflows of $44.8 billion; it also reported investment realizations of $15.7 billion in the quarter.

“Our clients entrusted us with $45 billion of inflows in the third quarter and $183 billion year-to-date, and we grew total assets under management 30 per cent year-over-year to a record $951 billion,” Stephen A Schwarzman, chairman and chief executive, said.