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  1. Wealth
April 19, 2024

Blackstone buoyed by private wealth surge

Private wealth had its highest inflows since 2022, rising to $8 billion in AuM

By Stephanie Bridger-Linning

Blackstone has reported strong first quarter results, bolstered by its private credit and private wealth businesses. 

Overall, the firm’s assets under management (AuM) rose to $1.06 trillion, up from $991 billion for Q1 2023. 

Private equity, real estate and multi-asset took in $7.4 billion, $8.1 billion and $1.4 billion, respectively.

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[See also: Five forces shaping private equity for UHNWs in 2024]

Stephen A. Schwarzman, Blackstone chairman and CEO, noted there had also been ‘accelerating momentum’ in the private wealth business. The channel had its highest inflows since 2022, rising to $8 billion in AuM. 

This was driven by a surge in interest across Blackstone’s three perpetual vehicles: Blackstone Private Credit Fund (BCRED), Blackstone Real Estate Income Trust (BREIT) and Blackstone Private Equity Strategies (BXPE), which closed its debut quarter.

‘Subscriptions for the perpetuals increased 83 per cent from Q4 and marked the best quarter of fundraising from individuals in nearly two years,’ Blackstone president and COO Jonathan Gray said on Thursday. ‘BCRED led the way, raising $2.9 billion. BXPE has received very strong investor reception, raising $2.7 billion.’

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BXPE has been designed to allow wealthy individuals to invest in corporate buyouts and equity-oriented strategies such as late-stage venture investments and buying stakes in other private equity funds. It reflects a trend towards a greater democratisation of private markets.

[See also: Private markets: should individual investors take the plunge?]

On the earnings call, Gray said demand for the firm’s private wealth offering has been ‘pretty broad based’, with interest coming from Japan and a strong presence in the US. He also noted Europe and Canada as ‘emerging markets’.

There are a lot of repeat customers, too. Some 90 per cent of BXPE investors had previously subscribed to BCRED or BREIT, according to the company.  

Blackstone noted that with $80 trillion of global market opportunity in the wealth space, and allocations remaining low, it anticipates a ‘long runway of growth and a bright future ahead for its global wealth business’.

Schwarzman added: ‘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.’

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