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(Sharecast News) - Blackstone reported first-quarter earnings ahead of expectations, as stronger inflows and asset sales helped offset investor caution over geopolitical turmoil and concerns around parts of the private credit market.
The world's largest alternative asset manager said distributable earnings, which represent cash available for shareholder payouts, rose 25% to $1.76bn, or $1.36 per share, beating analyst forecasts.
Total assets under management increased 12% to about $1.3trn, while quarterly inflows rose 11% year on year to $68.5bn, led by $37bn into credit and insurance and $20.4bn into private equity.
Chairman and chief executive Stephen Schwarzman said Blackstone had generated nearly $70bn of inflows and positive appreciation across almost all of its flagship strategies "despite the turbulent environment".
"Our all-weather model protects us in these times of disruption while also allowing us to invest where we see the greatest opportunity," he added.
Blackstone also stepped up deal activity before market volatility intensified.
The firm deployed almost $36bn in the quarter and committed a further $16bn to transactions.
Net realisations rose 26% to $448.4 million, supported by private equity exits including sales of shares in medical supplier Medline and the disposal of space technology company ARKA to CACI International.
Private equity was the strongest earnings contributor, with distributable earnings in the division jumping 75% to $985 million as realisations more than doubled.
Blackstone's infrastructure business also outperformed, with data centres, power and energy among the largest sources of appreciation.
Blackstone had already filed for or was preparing several listings across the US, Europe and Asia, including Jersey Mike's Subs, Liftoff Mobile and a data-centre acquisition vehicle.
In credit, results were more mixed.
Distributable earnings in Blackstone's credit and insurance arm fell 26% to $373m, even as the unit attracted the biggest share of inflows.
Wealthy investors pulled money from the BCRED private credit fund, which allowed $3.8bn of redemptions last month, while institutional investors delivered one of the strongest quarterly fundraising periods the credit business has seen.
Blackstone said net returns in its private credit strategies were flat in the first quarter and 5.7% over the past 12 months.
Elsewhere, Blackstone said its real estate income trust for wealthy investors, BREIT, returned to net inflows for the first time since 2022, while realisations in its wider real estate business rose 63% to $7bn.
The firm ended the quarter with about $213bn available for future deals.
At 0908 EDT (1408 BST), shares in Blackstone were down 2.12% in premarket trading in New York at $127.01.
Reporting by Josh White for Sharecast.com.