Blackstone President Jon Gray on Q2 results: The most fund appreciation in nearly four years

Financial Performance - Blackstone's earnings per share exceeded estimates by $0.11 [1] - Blackstone's revenue reached $3.1 billion, surpassing expectations [1] - Total assets under management increased by 13% year-over-year, reaching $1.2 trillion [1] Business Development & Strategy - Blackstone experienced the most significant fund appreciation in nearly four years [3] - Blackstone raised an additional $52 billion in inflows [3] - Blackstone anticipates a cyclical upturn driven by a revitalized deal environment [3] - Blackstone sees secular trends in private wealth, private credit, and infrastructure contributing to long-term growth [4] - Blackstone's private equity companies experienced high single-digit revenue growth and margin expansion in Q2 [6] Market & Industry Outlook - Blackstone observes resilience in its portfolio companies, despite challenges in manufacturing and retailing [6] - Blackstone notes that default rates among non-investment grade borrowers are low, at just 50 basis points [8] - Blackstone identifies AI, energy, and digital infrastructure as potential drivers of productivity and economic growth [9] - Blackstone acknowledges the risk of excesses in the data center and AI energy space due to significant investment [10][11][12] - The digital infrastructure sector requires new power capabilities and generation to support growing demand, with a focus on consumer needs [16]