Blackstone(BX) - 2025 Q2 - Quarterly Results

Earnings Release Overview Blackstone reported strong Q2 2025 results, achieving significant earnings growth and a record $1.2 trillion in Assets Under Management, driven by broad business expansion and fund appreciation Performance Summary Blackstone achieved outstanding Q2 2025 results, with AUM growing 13% to over $1.2 trillion and strong fund appreciation across key businesses - Total Assets Under Management (AUM) increased 13% year-over-year to a new industry record of over $1.2 trillion[2] - The firm experienced significant growth in its private wealth, credit and insurance, and infrastructure businesses[2] - Despite market volatility, Blackstone achieved its highest overall fund appreciation in nearly four years, indicating strong investment performance[2] Dividend and Investor Information Blackstone declared a quarterly dividend of $1.03 per share for Q2 2025, payable on August 11, 2025, with an investor call scheduled for July 24, 2025 Q2 2025 Dividend Information | Metric | Details | | :--- | :--- | | Dividend per Share | $1.03 | | Record Date | August 4, 2025 | | Payment Date | August 11, 2025 | - An investor conference call and webcast to discuss the Q2 2025 results was scheduled for July 24, 2025[4] Financial Performance Blackstone demonstrated robust financial performance in Q2 2025, marked by significant increases in GAAP net income, Fee Related Earnings, and Distributable Earnings GAAP Results For Q2 2025, Blackstone reported GAAP Net Income of $1.6 billion, with Net Income Attributable to Blackstone Inc. reaching $764 million, significantly increasing Diluted Net Income Per Share GAAP Financial Summary (Q2 2025 vs Q2 2024) | Metric ($ in thousands, except per share) | 2Q'25 | 2Q'24 | | :--- | :--- | :--- | | Total Revenues | $3,711,900 | $2,796,381 | | Net Income | $1,626,133 | $948,363 | | Net Income Attributable to Blackstone Inc. | $764,244 | $444,414 | | Diluted Net Income Per Share | $0.98 | $0.58 | Key Financial Highlights (Non-GAAP) Blackstone's key non-GAAP financial metrics showed strong performance in Q2 2025, with Fee Related Earnings at $1.5 billion and Distributable Earnings at $1.6 billion, contributing to record AUM Q2 2025 & LTM Non-GAAP Financial Metrics | Metric | Q2 2025 | LTM | | :--- | :--- | :--- | | Fee Related Earnings (FRE) | $1.5B ($1.19/share) | $5.7B ($4.68/share) | | Distributable Earnings (DE) | $1.6B ($1.21/share) | $6.4B ($5.00/share) | | Inflows | $52.1B | $211.8B | | Deployment | $33.1B | $145.1B | | Realizations | $23.4B | $97.5B | - Net Accrued Performance Revenues stood at $6.6 billion, or $5.37 per share[14] Segment Earnings In Q2 2025, Total Segment Distributable Earnings increased 26% year-over-year to $1.8 billion, driven by a 31% rise in Fee Related Earnings, primarily from a 167% surge in Fee Related Performance Revenues Segment Earnings Summary (Q2 2025 vs Q2 2024) | Metric ($ in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Fee Related Earnings | $1,459,503 | $1,110,970 | 31% | | Total Segment Distributable Earnings | $1,785,421 | $1,419,374 | 26% | | DE per Common Share | $1.21 | $0.96 | 26% | - Fee Related Performance Revenues saw a substantial increase of 167% YoY, reaching $472 million in Q2 2025[15] Investment Performance Blackstone's investment performance was strong in Q2 2025, with appreciation across nearly all strategies, notably Corporate Private Equity, contributing to a rise in Net Accrued Performance Revenues - Net Accrued Performance Revenues rose to $6.6 billion ($5.37/share) due to appreciation across most strategies[17] Q2 2025 Investment Performance (Appreciation / Gross Returns) | Strategy | 2Q'25 | 2Q'25 LTM | | :--- | :--- | :--- | | Corporate Private Equity | 5.1% | 17.2% | | Secondaries | 6.6% | 10.9% | | Infrastructure | 2.9% | 19.1% | | Private Credit | 3.0% | 13.3% | | Real Estate (Opportunistic) | 0.1% | (3.6)% | Capital and Asset Management Blackstone significantly expanded its capital base and assets under management in Q2 2025, driven by substantial inflows and strategic deployments Capital Metrics In Q2 2025, Blackstone attracted $52.1 billion in inflows, deployed $33.1 billion, and realized $23.4 billion, with Credit & Insurance being the largest contributor to inflows and deployment Capital Metrics by Segment - Q2 2025 ($ in millions) | Segment | Inflows | Capital Deployed | Realizations | | :--- | :--- | :--- | :--- | | Real Estate | $7,222 | $6,168 | $5,249 | | Private Equity | $15,323 | $11,759 | $7,316 | | Credit & Insurance | $26,818 | $14,098 | $9,962 | | Multi-Asset Investing | $2,714 | $1,055 | $825 | | Total Blackstone | $52,077 | $33,080 | $23,352 | - The firm committed an additional $19.5 billion during the quarter that was not yet deployed[24] Assets Under Management (AUM) Blackstone's Total AUM grew 13% year-over-year to $1.211 trillion as of June 30, 2025, with Fee-Earning AUM increasing 10% and Perpetual Capital AUM rising 16% AUM Summary as of June 30, 2025 | AUM Category | Amount ($B) | YoY Change | | :--- | :--- | :--- | | Total AUM | $1,211.2 | +13% | | Fee-Earning AUM | $887.1 | +10% | | Perpetual Capital AUM | $484.6 | +16% | - Fee-Earning Perpetual Capital AUM increased to $415.9 billion, representing 47% of total Fee-Earning AUM[27] Additional Capital Detail As of quarter-end, Blackstone maintained $181.2 billion in Total Dry Powder for future investments, while Invested Performance Eligible AUM grew 14% year-over-year to $604.4 billion - Total Dry Powder available for future investments stands at $181.2 billion[32] - Invested Performance Eligible AUM increased by 14% year-over-year to $604.4 billion[32] Segment Highlights Blackstone's segments demonstrated varied performance in Q2 2025, with Private Equity and Credit & Insurance showing strong AUM and earnings growth Real Estate The Real Estate segment reported a slight 3% YoY decrease in Total AUM to $325.0 billion, but saw a 10% increase in Segment Distributable Earnings to $566 million, driven by higher Fee Related Earnings Real Estate Segment Financials (Q2 2025 vs Q2 2024) | Metric ($ in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Segment Distributable Earnings | $565,870 | $516,511 | 10% | | Fee Related Earnings | $543,625 | $481,281 | 13% | | Total AUM | $324,994,725 | $336,100,271 | (3)% | - Key inflows included $2.4 billion in BREDS and $1.1 billion in BREIT, with capital deployment focused on commercial real estate loans and an industrial portfolio[40] Private Equity The Private Equity segment demonstrated robust growth, with Total AUM increasing 18% YoY to $388.9 billion and Segment Distributable Earnings surging 55% to $751 million, driven by strong fund appreciation Private Equity Segment Financials (Q2 2025 vs Q2 2024) | Metric ($ in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Segment Distributable Earnings | $751,419 | $485,811 | 55% | | Fee Related Earnings | $519,404 | $278,050 | 87% | | Total AUM | $388,907,242 | $330,589,586 | 18% | - Quarterly inflows of $15.3 billion were driven by fundraising for Infrastructure, a new Asia fund, and Secondaries, with $11.8 billion in capital deployed[43] - Corporate Private Equity appreciated 5.1% in the quarter and 17.2% over the LTM, while Infrastructure appreciated 2.9% in the quarter and 19.1% over the LTM[43] Credit & Insurance The Credit & Insurance segment's Total AUM grew 23% YoY to $407.3 billion, fueled by $26.8 billion in inflows and a 12% rise in Segment Distributable Earnings to $396 million Credit & Insurance Segment Financials (Q2 2025 vs Q2 2024) | Metric ($ in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Segment Distributable Earnings | $395,785 | $354,079 | 12% | | Fee Related Earnings | $333,025 | $297,059 | 12% | | Total AUM | $407,296,172 | $330,117,204 | 23% | - Inflows included $8.9 billion for the global direct lending strategy and $7.1 billion for infrastructure and asset-based credit, alongside a new partnership with Legal & General (L&G)[46] Multi-Asset Investing The Multi-Asset Investing segment's Total AUM increased 13% YoY to $90.0 billion, with Segment Distributable Earnings growing 15% to $72 million, and its Absolute Return Composite outperforming the HFRX Global Hedge Fund Index Multi-Asset Investing Segment Financials (Q2 2025 vs Q2 2024) | Metric ($ in thousands) | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | Segment Distributable Earnings | $72,347 | $62,973 | 15% | | Fee Related Earnings | $63,449 | $54,580 | 16% | | Total AUM | $90,009,202 | $79,564,750 | 13% | - The Absolute Return Composite's gross return of 2.8% in Q2 (11.8% LTM) significantly outperformed the HFRX Global Hedge Fund Index's return of 1.8% (4.7% LTM)[49] Shareholder Returns Blackstone delivered increased shareholder returns in Q2 2025 through higher dividends per share and continued share repurchase activity Dividends Blackstone generated $1.21 of Distributable Earnings (DE) per common share in Q2 2025, a 26% increase, leading to a declared quarterly dividend of $1.03 per common share, also up 26% YoY Dividend and Earnings Per Share (Q2 2025 vs Q2 2024) | Per Share Data | 2Q'25 | 2Q'24 | % Change | | :--- | :--- | :--- | :--- | | DE per Common Share | $1.21 | $0.96 | 26% | | Actual Dividend per Common Share | $1.03 | $0.82 | 26% | Share Repurchases and Outstanding Shares During Q2 2025, Blackstone repurchased 0.2 million common shares, with $1.8 billion remaining under its authorization, and total Distributable Earnings Shares Outstanding at 1.23 billion - Repurchased 0.2 million common shares in Q2 2025 and 1.7 million over the LTM[81] - The remaining share repurchase authorization was $1.8 billion as of June 30, 2025[81] Share Count Summary (as of Q2 2025) | Share Category | Number of Shares | | :--- | :--- | | Participating Common Shares | 782,567,390 | | Participating Partnership Units | 447,574,842 | | Total DE Shares Outstanding | 1,230,142,232 | Supplemental Information and Disclosures This section provides additional financial details, including balance sheet highlights, detailed performance revenues, investment records, and reconciliations of GAAP to non-GAAP measures Balance Sheet Highlights As of June 30, 2025, Blackstone maintained a strong and liquid balance sheet with $10.6 billion in total cash and investments, and $20.5 billion in total cash and net investments Balance Sheet Summary (Deconsolidated, as of June 30, 2025) | Item ($ in millions) | Amount | | :--- | :--- | | Cash and Cash Equivalents | $2,235 | | Corporate Treasury and Other Investments | $8,336 | | Total Cash and Investments | $10,571 | | Outstanding Debt (at par) | $12,004 | | Cash and Net Investments | $20,468 | - The company maintains A+/A+ credit ratings and has a $4.3 billion credit revolver with $3.6 billion undrawn capacity[57] Net Accrued Performance Revenues Detail Net Accrued Performance Revenues (NAPR) totaled $6.6 billion at the end of Q2 2025, with the Private Equity segment being the largest contributor at $5.2 billion Net Accrued Performance Revenues by Segment (as of June 30, 2025) | Segment ($ in millions) | Amount | Per Share | | :--- | :--- | :--- | | Real Estate | $923 | $0.75 | | Private Equity | $5,212 | $4.24 | | Credit & Insurance | $369 | $0.30 | | Multi-Asset Investing | $103 | $0.08 | | Total | $6,608 | $5.37 | - The QoQ increase in NAPR was driven by $840 million in net performance revenues, partially offset by $631 million in net realized distributions[59] Investment Records This section details the performance of Blackstone's individual funds, providing key metrics like MOIC and Net IRR for drawdown and perpetual capital strategies - The Total Global BREP (Blackstone Real Estate Partners) funds show a total MOIC of 1.8x and a total net IRR of 14%[62] - The Total Corporate Private Equity funds show a total MOIC of 2.0x and a total net IRR of 15%[62] - Performance for selected perpetual capital strategies is also detailed, including BREIT (9% total net return), BIP (17% total net return), and BCRED (10% total net return)[66] Reconciliation of GAAP to Non-GAAP Measures This section provides detailed reconciliations of GAAP financial results to non-GAAP measures like Distributable Earnings and Fee Related Earnings, explaining key adjustments - Provides a full reconciliation from GAAP Net Income Attributable to Blackstone Inc. to Distributable Earnings (DE) and Fee Related Earnings (FRE)[86] - Details adjustments for non-cash or non-operational items such as unrealized gains/losses, amortization of intangibles, and equity-based compensation[86] - Includes reconciliation of GAAP shares outstanding to the Distributable Earnings shares outstanding used for per-share calculations[97] Definitions and Dividend Policy Blackstone defines its key non-GAAP metrics, including Segment Distributable Earnings, Distributable Earnings, Fee Related Earnings, and Adjusted EBITDA, and outlines its dividend policy of paying approximately 85% of Distributable Earnings quarterly - Defines key non-GAAP metrics: Distributable Earnings (DE) as a measure of realized earnings available for distribution, and Fee Related Earnings (FRE) as a measure of recurring profits[116] - The stated dividend policy is to pay holders of common stock a quarterly dividend of approximately 85% of Blackstone Inc.'s share of Distributable Earnings[118] - The declaration and payment of dividends are at the sole discretion of the board of directors and the policy can be changed at any time[118]