8-K: Blackstone Reports Strong First Quarter 2024 Results, AUM Surpasses $1 Trillion

Blackstone announced robust first-quarter 2024 results, driven by growth in private credit and private wealth businesses, with assets under management exceeding $1 trillion.

Summary

• Blackstone reported a GAAP net income of $1.6 billion for the first quarter of 2024, and $3.8 billion over the last twelve months.
• Net income attributable to Blackstone Inc. was $847 million for the quarter and $2.2 billion over the last twelve months.
• The company's total assets under management (AUM) reached $1,061.3 billion, a 7% increase year-over-year.
• Fee-earning AUM was $781.4 billion, also up 7% year-over-year.
• Blackstone experienced inflows of $34.0 billion in the quarter and $142.2 billion over the last twelve months.
• Capital deployment was $24.5 billion in the quarter and $87.5 billion over the last twelve months.
• Realizations totaled $15.0 billion in the quarter and $62.8 billion over the last twelve months.
• Fee Related Earnings (FRE) were $1.2 billion ($0.95 per share) for the quarter and $4.5 billion ($3.67 per share) over the last twelve months.
• Distributable Earnings (DE) were $1.3 billion ($0.98 per share) for the quarter and $5.1 billion ($3.96 per share) over the last twelve months.
• Net Accrued Performance Revenues reached $6.1 billion ($5.00 per share).
• A quarterly dividend of $0.83 per share was declared, payable on May 6, 2024.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong growth in AUM and key financial metrics, although there are some areas of concern such as the decrease in realized performance revenues and principal investment income. The overall tone is optimistic and confident.

Positives

• Blackstone's private credit and private wealth businesses showed accelerating momentum.
• The company is seeing a strengthening transaction environment with attractive opportunities to deploy capital.
• Blackstone's portfolio is concentrated in compelling sectors.
• The company has a substantial $191.2 billion in undrawn capital available for investment.
• The company's perpetual capital AUM reached $408.1 billion, up 7% year-over-year.
• The company returned $1.2 billion to shareholders with respect to the first quarter through dividends and share repurchases.
• The company's credit and insurance segment saw a 13% increase in AUM.
• The company's multi-asset investing segment saw a 4.6% gross return in the quarter.

Negatives

• Realized performance revenues decreased by 16% compared to the same quarter last year.
• Realized principal investment income decreased by 77% compared to the same quarter last year.
• Distributable earnings per common share decreased by 14% over the last twelve months.
• Real estate opportunistic funds declined by 5.6% over the last twelve months.
• Real estate core+ funds declined by 1.5% over the last twelve months.

Risks

• The document contains forward-looking statements that are subject to various risks and uncertainties.
• Actual outcomes or results could differ materially from those indicated in the forward-looking statements.
• The company's performance is subject to market conditions and investment performance.
• The company's results are subject to various risks and uncertainties described in their annual report.

Future Outlook

The company is well positioned to navigate today's dynamic market landscape, with a portfolio concentrated in compelling sectors and nearly $200 billion of dry powder available to invest. The company is seeing a strengthening transaction environment and attractive opportunities to deploy capital.

Management Comments

• Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, Blackstone reported strong first-quarter results, highlighted by accelerating momentum in our private credit and private wealth businesses.
• We are seeing a strengthening transaction environment and attractive opportunities to deploy capital.
• We are well positioned to navigate today's dynamic market landscape, with a portfolio concentrated in compelling sectors and nearly $200 billion of dry powder available to invest.

Industry Context

Blackstone's results reflect a broader trend of growth in alternative asset management, particularly in private credit and private wealth. The company's ability to raise and deploy capital in a dynamic market environment is a key indicator of its competitive position.

Comparison to Industry Standards

• Blackstone's AUM of $1.06 trillion places it among the largest alternative asset managers globally, competing with firms like Apollo Global Management, KKR, and The Carlyle Group.
• The company's FRE and DE metrics are key indicators of profitability and are closely watched by investors, with Blackstone's results showing a mixed performance compared to previous periods.
• Blackstone's deployment of $24.5 billion in the quarter is a significant figure, reflecting its active investment strategy, which is comparable to other large private equity firms.
• The company's focus on perpetual capital, which reached $408.1 billion, is a strategic move to secure long-term, stable funding, a trend seen across the industry.
• Blackstone's dividend payout of $0.83 per share is a key factor for income-seeking investors, and is a common practice among publicly traded alternative asset managers.

Stakeholder Impact

• Shareholders will benefit from the declared dividend of $0.83 per share.
• Employees may benefit from the company's strong performance and growth.
• Investors will be interested in the company's AUM growth and capital deployment.
• Customers will benefit from the company's continued investment in various sectors.

Next Steps

• Blackstone will continue to deploy capital in attractive opportunities.
• The company will host its first quarter 2024 investor conference via public webcast on April 18, 2024 at 9:00 a.m. ET.
• The company will pay a quarterly dividend of $0.83 per share on May 6, 2024.

Key Dates

Keywords

Blackstone, AUM, Private Credit, Private Equity, Real Estate, Distributable Earnings, Fee Related Earnings, Alternative Asset Management, Investment, Dividend