Blackstone shares fell 5.2% overnight despite delivering a strong headline profit. While earnings were better (EPS of $US1.52 vs $US1.22 expected), driven by strong growth in Assets Under Management (AUM), the market seemed to latch onto lighter-than-expected fundraising and a slower pace of capital deployment across its flagship private equity and real estate segments.
- Assets under management $1.24 trillion, +12% y/y, estimate $1.25 trillion
- Real estate assets under management $320.49 billion, -1.4% y/y, estimate $329.94 billion
- Private equity assets under management $395.61 billion, +15% y/y, estimate $400.32 billion
- Multi-asset investing assets under management $93.32 billion, +12% y/y, estimate $91.94 billion
- Credit and insurance assets under management $432.32 billion, +22% y/y, estimate $423.47 billion
Blackstone’s AUM is astonishing at $US1.24 trillion with growth rates of 12%, which is putting big numbers on top of big numbers. We continue to believe that Blackstone remains a structural winner in private markets, with its scale, brand, and credit growth engine intact. No change in the story based on the overnight update.
MM remains long & bullish BX US
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