Q3 2024 Blackstone Inc Earnings Call Transcript
Key Points
- Blackstone Inc (BX) reported strong third-quarter results with distributable earnings of $1.3 billion, marking the highest fee-related earnings in two years.
- The company has significantly increased its investment pace, deploying $123 billion over the last 12 months, which is double the prior year comparable period.
- Blackstone Inc (BX) is the largest data center provider in the world, with a recent $16 billion acquisition of AirTrunk, enhancing its global presence in the Asia-Pacific region.
- The firm has seen a robust reacceleration of sales in 2024, raising $21 billion in the private wealth channel year-to-date through September, nearly double the amount raised in the same period last year.
- Blackstone Inc (BX) has a strong position in the private credit market, managing the largest third-party private credit business in the world with $432 billion in assets, up 20% year over year.
- Disposition activity remains limited in the current environment, with a nearly three-year period of lower activity levels in the broader capital markets.
- The firm's secondaries business has shown a slowdown in performance, with recent returns below hurdle rates, impacting overall fund performance.
- Operating expenses have increased due to third-party servicer fees, placement fees, and initiative-driven consulting spends, impacting overall profitability.
- The firm faces challenges in overcoming back book headwinds, which are running at about 10% of fee-related performance metrics.
- Despite strong fundraising, the FRE (Fee-Related Earnings) growth outlook is tempered by back book pressures and the need for sustainable organic net flow rates.
Please stand by for streaming text.
Good day, and welcome to the Blackstone third-quarter 2024 for investor call. Today's conference is being recorded. (Operator Instructions) At this time, I'd like to turn the conference over to Weston Tucker, Head of Shareholder Relations. Please go ahead.
Great. Thank you, Katie, and good morning and welcome to Blackstone's third-quarter conference call. Joining me today are Steve Schwarzman, Chairman and CEO; Jon Gray, President and Chief Operating Officer; and Michael Chae, Chief Financial Officer.
Earlier this morning, we issued a press release and slide presentation which are available on our website. We expect to file our 10-Q report in a few weeks. I'd like to remind you that today's call may include forward-looking statements, which are uncertain and may differ from actual results materially.
We do not undertake any duty to update these statements. And for a discussion of some of the factors that
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