Blackstone(US:BX)2025-11-07 21:09Financial Performance - Revenues for Q3 2025 were $3.1 billion, a decrease of $574.6 million (16%) compared to Q3 2024, primarily due to a $967.6 million decrease in Investment Income (Loss) [361]. - Net Income for Q3 2025 was $1.2 billion, a decrease of $327.7 million (21%) compared to Q3 2024, with Net Income attributable to Blackstone Inc. at $624.9 million, down 20% [360]. - Total Expenses for Q3 2025 were $1.8 billion, a decrease of $145.4 million (8%) compared to Q3 2024, mainly due to a $209.6 million decrease in Total Compensation and Benefits [363]. - Other Income for Q3 2025 was $108.6 million, an increase of $65.8 million (154%) compared to Q3 2024, driven by higher Net Gains from Fund Investment Activities [364]. - Revenues for the nine months ended September 30, 2025, were $10.1 billion, a decrease of $57.4 million (1%) compared to the same period in 2024, primarily due to a $527.2 million decrease in Investment Income (Loss) [366]. - Net Income Before Taxes allocated to Blackstone personnel and other limited partners was 37.5% for the three months ended September 30, 2025, down from 38.4% in 2024 [379]. Assets Under Management - Total Assets Under Management includes uncalled commitments and invested capital, reflecting the capital available for investment across Blackstone-managed vehicles [345]. - Total Assets Under Management increased to $1,241,731,296, reflecting a growth of 10% compared to the previous year [383]. - Fee-Earning Assets Under Management represents the portion of Total Assets Under Management on which management fees and/or performance revenues can be earned [349]. - Fee-Earning Assets Under Management reached $906.2 billion at September 30, 2025, an increase of $19.1 billion from $887.1 billion at June 30, 2025 [389]. - The company reported a 15% increase in Private Equity assets under management, reaching $432,315,679 [383]. - The Credit & Insurance segment saw an increase of $40.6 billion to $305.2 billion, with inflows of $67.5 billion and market appreciation of $8.6 billion [391]. Segment Performance - Blackstone's Credit & Insurance segment is one of the largest credit managers and CLO managers globally, managing a diverse portfolio of loans and securities [315]. - The company’s Real Estate segment targets a broad range of opportunistic investments, including logistics, data centers, and rental housing [302]. - The Private Equity segment exhibited positive performance across all strategies, particularly in Infrastructure and Secondaries, with a favorable capital markets environment expected to boost transaction activity [441]. - Segment Distributable Earnings for Q3 2025 were $618.3 million, an increase of $78.0 million compared to $540.4 million in Q3 2024, driven by a $49.2 million increase in Fee Related Earnings and a $28.8 million increase in Net Realizations [421]. - The Real Estate segment's performance was stable in Q3 2025, supported by digital infrastructure and multifamily investments, despite currency fluctuations [422]. Investment Income and Realizations - Unrealized Investment Income decreased by $1.6 billion in Q3 2025, driven by a $1.1 billion decrease in the Private Equity segment, with Corporate Private Equity funds appreciating 2.5% compared to 6.2% in Q3 2024 [362]. - Realized Performance Revenues reached $559.4 million for the three months ended September 30, 2025, an increase of $342.7 million from $216.6 million in the same period of 2024 [447]. - Net Realizations for the three months ended September 30, 2025, were $380.1 million, an increase of $249.2 million compared to $130.9 million in 2024 [446]. - Realized Performance Revenues increased to $1.3 billion for the nine months ended September 30, 2025, up $270.1 million from $1.0 billion in 2024 [455]. Fees and Compensation - Management and Advisory Fees, Net increased by $261.4 million (15%) in Q3 2025, attributed to increased deal activity and fee holiday expirations in the Private Equity segment [362]. - Total Management Fees, Net for the nine months ended September 30, 2025, were $2.1 billion, a decrease of $72.5 million compared to $2.2 billion for the same period in 2024, mainly due to declines in Base Management Fees and Transaction Fees [432]. - Fee Related Earnings for the nine months ended September 30, 2025, were $1.6 billion, an increase of $10.3 million compared to the same period in 2024, driven by a $49.0 million increase in Fee Related Performance Revenues [430]. - Fee Related Performance Revenues surged to $126.7 million for the three months ended September 30, 2025, compared to $5.9 million in the same period of 2024 [444]. Market Conditions and Economic Indicators - The Federal Reserve lowered the federal funds target range by 50 basis points to 3.75-4.00% in September and October 2025, the lowest level in three years [323]. - The September Consumer Price Index was up 3.0% year-over-year, indicating a moderation of inflation compared to recent years [323]. - High yield spreads tightened by 23 basis points in Q3 2025, with year-to-date issuance increasing by 9.6% year-over-year [322]. - U.S. initial public offering volumes and announced merger and acquisition deal volumes increased approximately 100% and 64% year-over-year, respectively, in Q3 2025 [324].