Blackstones first quarter gains rise on robust private equity, credit performance

April 17 (Reuters) – Blackstone scored a 11% jump in the first quarter profit on Thursday, driven by higher returns from asset sales in its private equity and credit businesses. The distributable earnings, which represent cash that can be used to pay dividends, grew to $ 1.41 billion, or $ 1.09 per share, for the three months ended March 31, compared to $ 1.27 billion, or 98 cents per share, a year earlier. Policy uncertainty under President Donald Trump, especially with regard to rates, led to meager markets and subdued the appetite for transactions – a sharp turnaround from earlier this year when the hope of deregulation increased enthusiasm. But the results of Blackstone emphasize how large alternative asset managers can utilize selective opportunities, even in a challenging environment. “We are well positioned to navigate the current environment,” said Blackstone CEO Stephen Schwarzman. Schwarzman, a longtime Trump backer, said the rates last month could increase manufacturing capacity in the US, although it was before the full extent of the duties. Since then, several high-profile managers have raised their warnings for recession and requested the administration to negotiate trade transactions. Credit momentum continues with Blackstone in the quarter of $ 61.64 billion in inflow, which helped its assets under management to climb 10% to $ 1.17 trillion. About half of the inflow is aimed at the credit and insurance segment, which offers a wide range of debt financing options to companies. The world’s largest alternative asset manager has positioned himself as a key player in the private credit space. Companies looking for flexible financing options are increasingly turning to investment firms such as Blackstone instead of traditional banks. Blackstone’s private equity arm also performed strongly, with the scatterable earnings of segment rising 13% to $ 564.6 million. The results of the unit were helped by $ 6.5 billion asset sales. However, the real estate arm was still a wear, with AUM falling 6%. Increased interest rates have dampened the value of the portfolio. So far this year, Blackstone shares have dropped about 25%, while peers Apollo Global and KKR have dropped by 24%and 31%respectively. (Reporting by Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri) first published: 17 Apr 2025, 04:28 pm Ist