Earnings Results: • Distributable earnings of $1.3 billion or $0.98 per common share in Q1 2024 • Fee-related earnings increased 12% year-over-year to $1.2 billion or $0.95 per share • Net realizations remain muted at $293 million • Declared a dividend of $0.83
Future Guidance: • Expect to activate corporate private equity flagship fund in Q2 2024, which has raised over $19 billion to date • Credit and insurance platforms expected to grow significantly • Anticipate a long runway of growth in the $80 trillion private wealth landscape given low current allocations • Margin stability expected in the near-term, with potential for operating leverage and margin expansion longer-term
Blackstone reported strong Q1 2024 results, driven by the highest fee-related earnings in 6 quarters. The firm is seeing positive momentum across key forward indicators, including robust inflows, an uptick in deployment activity, and accelerating fundraising in the private wealth channel. Blackstone’s well-positioned $1 trillion portfolio, record dry powder of nearly $200 billion, and long-term capital provide significant flexibility to capitalize on opportunities amid a complex market backdrop. The firm is actively investing in high-conviction themes such as digital infrastructure, logistics, and energy transition.
While the economic environment remains uncertain with concerns around inflation, geopolitical risks, and the 2024 elections, Blackstone expressed confidence in the firm’s outlook. Commercial real estate transaction activity is picking up as values appear to be bottoming. The firm is also expanding its presence in private credit to meet growing investor demand. Notably, fundraising in the private wealth channel rebounded strongly, and the new private equity perpetual vehicle BXPE raised an impressive $2.7 billion in its debut quarter.
Notable Quotes: • “Blackstone is highly differentiated in our ability to conceptualize the new business area and transform it into a $100 billion potential opportunity.” - Stephen Schwarzman • “In real estate, we see shelter costs moderating, contrary to government data. We believe inflation will trend lower this year, although the pace of decline has slowed recently.” - Stephen Schwarzman • “When looking at the $80 trillion private wealth landscape overall, allocations remain extremely low, and we expect a long runway of growth ahead.” - Jon Gray