10-K: Blackstone Reports Strong 2025 Growth, AUM Surges to $1.27 Trillion

Blackstone Inc. announced robust financial results for fiscal year 2025, with significant increases in revenues, net income, and assets under management, driven by strong performance across its diverse investment strategies.

Summary

• Total Revenues for 2025 increased by 9% to $14.5 billion, up from $13.2 billion in 2024.
• Net Income Attributable to Blackstone Inc. rose by 9% to $3.02 billion in 2025, compared to $2.78 billion in 2024.
• Total Assets Under Management (AUM) grew by 13% to $1.27 trillion as of December 31, 2025, from $1.13 trillion in 2024.
• Fee-Earning Assets Under Management (FAUM) increased by 11% to $921.7 billion as of December 31, 2025, up from $830.7 billion in 2024.
• Perpetual Capital AUM expanded by $78.8 billion to $523.6 billion, reflecting a growing portion of the business with indefinite terms.
• Management and Advisory Fees, Net, increased by 12% to $8.1 billion in 2025.
• Total Investment Income for 2025 was $5.3 billion, a 16% increase from $4.5 billion in 2024.
• Dividends declared per share for 2025 aggregated to $4.74, an increase from $3.95 per share in 2024.
• The company repurchased 0.8 million shares of common stock at a total cost of $122.6 million in 2025, with $1.7 billion remaining under the repurchase program.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, demonstrating robust growth in AUM and profitability despite market uncertainties, driven by strategic expansion into perpetual capital and private credit.

Positives

• Strong financial performance in 2025 with a 9% increase in Total Revenues and Net Income Attributable to Blackstone Inc.
• Significant growth in Total Assets Under Management (AUM) by 13% to $1.27 trillion, reinforcing its position as the world's largest alternative asset manager.
• Fee-Earning Assets Under Management (FAUM) increased by 11% to $921.7 billion, indicating a healthy base for recurring revenue.
• Perpetual Capital AUM grew substantially by $78.8 billion, enhancing long-term revenue stability and predictability.
• The Credit & Insurance segment demonstrated strong performance, with BCRED maintaining healthy demand and raising over $14 billion in 2025.
• Private Equity segment generated strong performance across all strategies, with particular strength noted in Infrastructure.
• Multi-Asset Investing segment exhibited positive performance across all strategies, including the Absolute Return Composite achieving its twenty-third consecutive quarter of positive performance.
• Increased quarterly dividends declared per share to $4.74 in 2025, reflecting confidence in distributable earnings.
• Successful issuance of $1.2 billion in senior notes in November 2025 for general corporate purposes, demonstrating access to capital markets.
• The Revolving Credit Facility was amended and restated, extending its maturity to October 16, 2030, improving long-term liquidity.

Negatives

• The Real Estate segment experienced limited aggregate appreciation in 2025, with challenging fundamentals in life sciences office, student housing, and select logistics holdings, partially offsetting strong performance in BREIT.
• Potential for artificial intelligence-driven disruption has recently weighed on equity capital markets and equity values of companies in certain sectors, such as software.
• Uncertainty persists regarding the timing and extent of future interest rate decreases in the U.S., which could continue to challenge real estate valuations and fundraising in certain high-net-worth strategies.
• A decline in interest rates and/or widening of credit spreads would make it more difficult for floating-rate credit funds to replicate their recent strong performance.
• Increased scrutiny and potential new regulations on private equity and private credit managers in the insurance industry could increase compliance burdens and limit growth.
• The National Association of Insurance Commissioners (NAIC) increased the capital charge for residual tranches or equity securities of asset-based securitizations from 30% to 45% in 2024, potentially making such assets less attractive to insurers.
• U.S. government actions on international trade policy, including tariffs, and an executive order restricting institutional investor ownership of single-family homes, could negatively impact portfolio companies and investment opportunities.

Risks

• Difficult market, economic, and geopolitical conditions could materially reduce revenue, earnings, and cash flow.
• Sustained periods of high interest rates and challenging debt market conditions negatively impact asset values and access to capital markets.
• A decline in the pace or size of investments, or poor fund performance, may adversely affect revenues and obligate repayment of Performance Allocations.
• Revenue, earnings, net income, and cash flow can vary materially due to reliance on Performance Revenues, making steady quarterly earnings growth difficult.
• The asset management business is intensely competitive, potentially impacting the ability to raise capital and secure attractive investment opportunities.
• Loss of services from co-founder and other key senior managing directors and personnel, or future difficulty in recruiting and retaining professionals.
• Changes in U.S. and foreign taxation (e.g., OBBBA, Pillar One/Two, carried interest tax treatment) could adversely affect the effective tax rate and tax liability.
• Cybersecurity or other operational risks could result in data loss, business interruptions, reputational damage, regulatory actions, increased costs, and financial losses.
• Technological developments in artificial intelligence could disrupt markets, increase competition, and introduce legal/regulatory risks and compliance costs.
• Extensive regulation of businesses creates potential for significant liabilities and penalties, and may make capital deployment or asset sales more difficult.
• Increasing scrutiny from regulators and investors regarding sustainability matters, including climate change, could impact capital raising and reputation.
• Employee misconduct, fraud, or deceptive practices at portfolio companies or service providers could lead to legal liability and reputational harm.
• Substantial litigation risks and potential significant liabilities and reputational damage from allegations of improper conduct and negative publicity.
• Policies and procedures to mitigate conflicts of interest may reduce synergies across businesses, and failure to manage conflicts could damage reputation.
• Valuation methodologies involve significant subjectivity and judgment, and the fair value of assets may never be realized, leading to losses or reduced fees.
• Inability to consummate or successfully integrate development opportunities, acquisitions, or new investment products.
• Underwriting activities, borrowings for operations, and dependence on significant leverage in fund investments expose the company to risks.
• Investors may have redemption, termination, or dissolution rights, or may not satisfy capital calls.
• Investments in junior securities or financially distressed companies expose funds to greater risk of loss.
• Investments in certain assets/industries (digital infrastructure, energy, real estate) expose funds to inherent risks, including environmental liabilities, operational, construction, regulatory, and market risks.
• Funds and performance may be adversely affected by inaccurate financial projections, contingent liabilities, counterparty defaults, or forced asset disposal.
• Significant voting power of Series I and Series II preferred stockholders may limit common stockholders' influence.
• Controlled company status allows exceptions from certain NYSE corporate governance requirements.
• Obligation to pay senior managing directors for tax depreciation/amortization benefits.
• Risk of being deemed an investment company under the 1940 Act.
• Price of common stock may decline due to large number of shares eligible for future sale/exchange.
• Right to acquire outstanding common stock under specified circumstances.
• Bylaws designate specific forums for certain actions, limiting stockholders' ability to choose a favorable judicial forum.

Future Outlook

Blackstone anticipates continued expansion of its Perpetual Capital assets under management and expects to further grow its investment products for individual investors. The company foresees a continuation of a favorable capital markets environment, which should boost transaction activity and realizations in its Private Equity segment. While acknowledging that lower interest rates may reduce returns in floating-rate strategies, Blackstone expects to maintain excess returns in private credit and benefit from long-term structural shifts towards private credit. The company is also preparing for potential artificial intelligence-driven disruptions and increasing regulatory focus on sustainability and data privacy.

Management Comments

• "Our mission is to fulfill our fiduciary duty by creating long-term value for our investors."
• "We believe our scale, diversified business, long record of investment performance, rigorous investment process and strong client relationships position us to continue to perform well in a variety of market conditions, expand our assets under management, and innovate."
• "We believe there are a number of positive signs that should support values in our Real Estate portfolio, including favorable capital markets and declining new supply. Continued improvement in the cost and availability of debt also contributes to an environment that is more conducive to increased transaction volume."
• "Despite an overall strong capital markets environment, the potential for artificial intelligence-driven disruption has recently weighed on equity capital markets and equity values of companies in certain sectors, such as software. We believe the ultimate impact of such disruption will vary significantly across companies based on multiple factors, with a number of companies well-positioned to be protected or benefit from such disruption."
• "While lower interest rates will likely reduce returns in our floating rate strategies, we believe we will continue to generate excess returns relative to liquid markets in our private credit strategies. We also continue to see long-term structural shifts toward private credit in the credit market."
• "While heightened market attention around private credit has and could continue to adversely affect net flows, we believe that strong investment performance should drive flows over the long-term."

Industry Context

StockSavvy.ai notes that Blackstone's continued growth in AUM and Fee-Earning AUM, particularly in Perpetual Capital strategies, aligns with a broader industry trend among alternative asset managers to secure more stable, long-duration capital. StockSavvy.ai observes that the company's focus on private credit and infrastructure reflects increasing institutional and individual investor demand for alternative asset classes, especially in a volatile market environment where traditional asset classes may offer lower yields. StockSavvy.ai highlights the industry-wide challenge of adapting to evolving geopolitical conditions, interest rate uncertainty, and the disruptive potential of AI, which Blackstone acknowledges and is actively managing. StockSavvy.ai recognizes the increasing regulatory scrutiny on private funds and sustainability matters as a significant industry trend, impacting compliance costs and capital deployment strategies across the alternative asset management sector.

Comparison to Industry Standards

• Blackstone's AUM of $1.27 trillion as of December 31, 2025, solidifies its position as the world's largest alternative asset manager, significantly surpassing many peers. For example, Apollo Global Management reported $651 billion in AUM as of Q3 2023, and KKR reported $553 billion in AUM as of Q3 2023.
• The 13% year-over-year AUM growth and 11% FAUM growth demonstrate strong capital-raising capabilities, outperforming the average growth rates of some diversified asset managers in a challenging fundraising environment.
• The company's emphasis on Perpetual Capital, which now represents a significant and growing portion of its business, is a leading strategy in the alternative asset management industry, aiming to provide more stable, recurring revenue streams compared to traditional drawdown funds.
• The Absolute Return Composite's twenty-third consecutive quarter of positive performance indicates consistent outperformance in its hedge fund strategies, a key differentiator in a competitive multi-asset investing landscape.

Management Changes

Corporate Governance

Legal Proceedings

• Ongoing litigation related to Kentucky Retirement System (KRS) investments in hedge funds, including a fund managed by Blackstone Alternative Asset Management L.P. (BLP).
• The Mayberry Action (derivative lawsuit) was dismissed for lack of standing in July 2020.
• The July 2020 Action by the Kentucky Attorney General, asserting substantially identical claims, had motions to dismiss denied in May 2024, and motions to dismiss an amended complaint are pending as of June 2024.
• Taylor I (direct class action) is stayed pending the outcome of the AG's July 2020 action.
• Taylor II (similar to Taylor I) had motions to dismiss denied in May 2024, with an appeal to the Kentucky Supreme Court pending as of November 2024.
• A Declaratory Judgment Action by the AG against BLP, challenging subscription agreement provisions, had BLP's motion for discretionary review granted by the Kentucky Supreme Court in August 2024.
• BLP's breach-of-contract action against KRS affiliates had BLP's motion for discretionary review of dismissal granted by the Kentucky Supreme Court in February 2024.
• A settlement agreement in January 2025 for $82.5 million (Blackstone's portion expected to be covered by insurance) was terminated in May 2025 due to the court declining to approve it; parties are continuing discussions.
• An accrual for the estimated liability related to this matter is included in the 2025 financial results.

Related Party Transactions

• Tax Receivable Agreements: Payments to predecessor owners and holders of Blackstone Holdings Partnership Units for 85% of cash tax savings from tax basis step-up. Expected future payments aggregate $2.1 billion over 15 years. $70.6 million paid in 2025 for 2024 tax benefits, including $2.2 million to Mr. Schwarzman, $0.3 million to Mr. Chae, $0.1 million to Mr. Finley, $0.07 million to Mr. Sawhney, and $0.9 million to Mr. Baratta.
• Registration Rights Agreement: Grants pre-IPO owners, affiliates, and transferees the right to register common stock.
• Tsinghua University Education Foundation (TUEF): Mr. Schwarzman personally committed $100 million to the Schwarzman Scholars program; Blackstone manages the Schwarzman Endowment Fund for TUEF with reduced or waived management fees and/or carried interest.
• Joseph P. Baratta's Compensation: Received a base salary of $350,000 and a bonus payment of $8,019,401 in 2025. Granted 51,216 deferred restricted common stock units (grant date fair value $8,019,401) for 2025 performance. Awarded 67,207 deferred restricted common stock units (grant date fair value $9,597,160) in April 2025 for 2024 performance. Received $28,391,629 in carried interest/incentive fee allocations in 2025.
• Blackstone Holdings Partnership Agreements: Wholly owned subsidiaries of Blackstone Inc. determine distributions to partners of Blackstone Holdings, including tax distributions.
• Payments to Kirkland & Ellis LLP: $87.8 million in legal fees in 2025; Mr. Brown's (director) interest is estimated to be less than 1%.
• Firm Use of Private Aircraft: Payments of $4.5 million in 2025 for aircraft controlled by Mr. Schwarzman, $4.7 million for aircraft controlled by Mr. Gray, and $2.1 million for aircraft jointly controlled by Mr. Baratta and two other individuals.
• Investment In or Alongside Our Funds: Directors and executive officers made gross contributions totaling $431.8 million in 2025 to Blackstone funds and other Blackstone-managed vehicles, often without management fees or carried interest.

Stakeholder Impact

• Shareholders: Positive impact from increased net income, AUM, and dividends. Potential dilution from future equity sales and risks from market volatility, regulatory changes, and litigation.
• Employees: Compensation structure aligns interests with fund performance, with equity awards and performance interests serving as key retention tools. Risks from potential job cuts in difficult economic conditions.
• Customers/Investors: Benefit from strong fund performance and diversified investment strategies. Risks from poor fund performance, redemption limitations, and potential conflicts of interest.
• Regulatory Authorities: Increased scrutiny on sustainability, data privacy, and private fund practices, leading to higher compliance burdens.
• Portfolio Companies: Impacted by economic conditions, interest rates, and technological disruption (e.g., AI), requiring adaptation and strategic management.

Next Steps

• Continue to assess and monitor incoming information regarding the trajectory of inflation and interest rates in the U.S.
• Further develop investment partnerships with insurance company clients and maintain existing asset management arrangements.
• Continue to undertake initiatives to expand the number and type of investment products offered to individual investors.
• Monitor and adapt to evolving legal and regulatory frameworks related to AI Technologies and sustainability matters.
• Manage potential impacts of artificial intelligence-driven disruption across portfolio companies.
• Address ongoing legal proceedings related to Kentucky Retirement System investments.

Key Dates

Recommendation

Blackstone demonstrated strong financial performance in 2025 with significant growth in revenues, net income, and AUM, driven by strategic expansion into perpetual capital and private credit. The company's diversified business model, robust investment process, and increasing dividends make it an attractive long-term investment despite acknowledged market uncertainties and regulatory scrutiny.

Keywords

Alternative Asset Management, Private Equity, Real Estate Investing, Credit & Insurance, Multi-Asset Investing, Assets Under Management, Fee-Earning AUM, Perpetual Capital, SEC Filing, Financial Performance, Investment Income, Dividends, Cybersecurity, AI Disruption, Regulatory Risk, Taxation, Liquidity, Capital Markets