Blackstone's Gray Says Deal Environment Hitting 'Escape Velocity'

Core Viewpoint - The company is experiencing record earnings per share and a favorable deal environment, with significant activity in IPOs and investments in AI infrastructure, leading to strong momentum and inflows [1][3][4]. Group 1: Financial Performance - The company achieved record earnings per share for both the quarter and the year, indicating strong financial health [1]. - Private equity companies within the firm reported a 9% revenue growth in the quarter, reflecting positive performance in the investment landscape [5]. Group 2: Market Environment - The current deal environment is favorable, reminiscent of the post-GFC period in 2013-2014, with expectations for continued activity as long as market conditions remain stable [2][4]. - The company noted $71 billion in inflows for the quarter and $239 billion for the year, highlighting strong investor interest [3]. Group 3: AI and Infrastructure Investments - The company has positioned itself as a leading investor in AI infrastructure and data centers, which has contributed to its positive results [3][6]. - Long-term contracts with creditworthy counterparties in infrastructure projects provide downside protection, enhancing investment security [9][10]. Group 4: Disruption and Risk Management - The company is aware of potential disruptions from AI and is actively assessing the risk associated with various industries, particularly those vulnerable to technological changes [10][12]. - There is a focus on evaluating the impact of AI on different business models, with a particular emphasis on vertical versus horizontal software solutions [13][14]. Group 5: Regulatory and Economic Factors - The regulatory environment for M&A has improved, facilitating energy projects and overall business operations [22]. - The underlying strength of the US economy, along with decreasing costs of capital and inflation, are seen as key elements for successful investing [27].