Centerbridge Partners joined the ranks of many alternatives managers that see accessing 401(k) retirement funds as a logical next step for private credit firms https://t.co/PG4IUIkf4F ...

Core Insights - Blackstone reported second quarter 2025 results with GAAP and distributable earnings of $1.6 billion each, marking a 25% year-over-year increase in distributable earnings and net inflows of $52 billion, bringing assets under management (AUM) to a record $1.2 trillion [1][2] Group 1: Earnings and AUM Growth - Fee-related earnings surged 31% year-over-year, driven by strong demand in private credit, private wealth, and infrastructure, indicating a multiyear outlook for structural earnings growth [2] - Private credit AUM reached $484 billion, tripling over the past five years, with platform revenue quadrupling in the same period [3] - Insurance client assets increased by 20% year-over-year to over $250 billion, with new partnership commitments targeting an additional $20 billion over the next five years [3] Group 2: Private Wealth and Retail Channels - Private wealth AUM reached $280 billion, with inflows in the wealth channel increasing 30% year-over-year to $10 billion in the second quarter [5] - Blackstone's new flagship perpetual private equity product, BXP, amassed $12.5 billion NAV in six quarters, while BREIT raised $1.1 billion, with annualized net returns for these vehicles ranging from 9% to 17% since inception [6][7] - The dominance in private wealth and retirement channels provides Blackstone with a diversified capital base, reducing fundraising risk and enabling product innovation [7] Group 3: Market Conditions and Future Outlook - The US equity market has returned to record highs, with deal flows, particularly sponsor M&A and IPOs, beginning to rebound, and Blackstone's forward IPO pipeline at its highest since 2021 [9][10] - Real estate AUM eligible for performance fees stands at over $200 billion, with 60% above hurdles, indicating significant future monetization visibility [9] - Management expects base management fee growth rates in the second half of 2025 to match the double-digit pace of the first half, with realizations forecasted to accelerate later this year and into 2026 [11]

Want to learn more? Join the next Money Moves where @AesPoker, @kevinlichan, @itsbhaji, @offerijns, and @MorganKrupetsky unpack this strategic partnership and launch.DeFi Meets Private Credit, and it’s happening on Avalanche.https://t.co/Vt5qxMPEFP https://t.co/5bvtwm3kdX ...

Sector Focus - Private credit sector is potentially undervalued within the Real World Assets (RWAs) space [1] Market Trend - Discusses the "golden bull run" in private credit [1]

Yes – Goldman Sachs is on the prowl for acquisitions, and it isn’t alone on Wall Street – but they may not be the deals you’ve been reading about.The speculation about Goldman buying Northern Trust (yes, I have been reporting it for years) is, at this point, likely nothing more than that, sources told On The Money. Northern Trust shares are up 20% on the chatter, but its CEO has been dismissive – and so are the people at Goldman, I am told.For one, Goldman CEO David Solomon doesn’t like overpaying, which is ...

Private Credit Market - Private credit plans to tap into the $12 trillion pool of US retirement savings [1] Newsletter Focus - The newsletter "Going Private" focuses on private markets [1]

Financial Data and Key Metrics Changes - The company reported GAAP net income for the quarter of $1.6 billion, with distributable earnings also at $1.6 billion or $1.21 per common share, reflecting a 25% year-over-year increase [5][6] - Fee-related earnings grew 31% year-over-year, contributing to a total fee revenue of $2.5 billion, up 27% year-over-year [30][32] - Total assets under management (AUM) increased 13% year-over-year to a record $1.2 trillion, supported by inflows of $52 billion in the second quarter and $212 billion over the last twelve months [7][30] Business Line Data and Key Metrics Changes - The private credit platform has seen significant growth, with AUM increasing threefold over the past five years to $484 billion, and revenue from this platform has increased more than fourfold [16][18] - The private wealth channel has grown AUM to nearly $280 billion, with revenue from flagship vehicles exceeding $700 million in the second quarter alone, compared to approximately $50 million five years ago [21][22] - Infrastructure AUM rose 32% year-over-year to $64 billion, supported by strong investment performance [25] Market Data and Key Metrics Changes - The company noted a favorable economic backdrop with resilient growth and declining inflation, which may allow the Federal Reserve to lower interest rates over time, positively impacting asset values [10][11] - The U.S. stock market is at record levels, with M&A activity accelerating and the IPO market reopening, indicating a more conducive environment for transactions [12][28] Company Strategy and Development Direction - The company is focusing on expanding its platforms in private wealth, credit, and insurance, along with launching multiple new funds [6][7] - The firm aims to capitalize on the $12 trillion U.S. defined contribution channel, which could provide significant growth opportunities [7] - The company is well-positioned to navigate the current dynamic environment, with a strong portfolio concentrated in compelling sectors and $181 billion of dry powder available for investment [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery in transaction activity, citing a favorable regulatory environment and pent-up demand for M&A and IPOs [28][90] - The company anticipates an acceleration in net realizations as the market stabilizes and transaction activity increases [38][39] - Management highlighted the importance of investment performance, noting that the second quarter represented the highest amount of overall fund appreciation in nearly four years [7][33] Other Important Information - The company has launched BMAX, a multi-asset credit product aimed at expanding access to the private credit universe for individual investors [101] - The firm is targeting significant growth in its insurance channel, managing over $250 billion on behalf of insurers, up 20% year-over-year [18][19] Q&A Session Summary Question: Credit market dynamics and demand - Management noted that demand for private credit remains robust, with clients focused on the enduring premium between liquid markets and private credit, which is expected to continue driving growth [43][45] Question: Real estate market recovery - Management indicated that the recovery in real estate is a matter of timing, with new supply declining and cost of capital improving, leading to a more favorable supply-demand dynamic [52][54] Question: Strategic partners and secondary fund outlook - Management highlighted strong returns in the secondary fund driven by significant new purchases and good appreciation in underlying funds, with a positive outlook for fundraising [61][64] Question: Retirement opportunity set - Management discussed the potential for alternatives in defined contribution plans, particularly in target date funds, emphasizing the need for patience regarding regulatory developments [70][72] Question: Forward-looking guidance on FRE margin - Management expressed confidence in maintaining strong FRE margins, driven by healthy management fee growth and performance revenues, while noting some variability based on fund mix [78][80] Question: Confidence in deal-making activity - Management conveyed increased confidence in transaction activity resuming, supported by favorable market conditions and a busy IPO pipeline [86][90] Question: Real estate performance and accrued fees - Management indicated that a significant portion of real estate AUM is above hurdle rates, suggesting a favorable trajectory for accrued performance fees as the market normalizes [93][95]

Financial Data and Key Metrics Changes - The company reported GAAP net income for Q2 2025 of $1,600,000,000, with distributable earnings also at $1,600,000,000 or $1.21 per common share, reflecting a 25% year-over-year increase [5][6][31] - Fee-related earnings grew 31% year-over-year, contributing to total fee revenues of $2,500,000,000, up 27% year-over-year [6][30] - Total assets under management (AUM) increased 13% year-over-year to a record $1,200,000,000,000, supported by inflows of $52,000,000,000 in Q2 and $212,000,000,000 over the last twelve months [7][30] Business Line Data and Key Metrics Changes - The private credit platform has grown significantly, with AUM reaching $484,000,000,000, up threefold in the past five years, and revenue from this platform increasing more than fourfold [16] - The private wealth channel has seen AUM grow to nearly $280,000,000,000, with revenue from flagship vehicles exceeding $700,000,000 in Q2 [22] - Infrastructure AUM rose 32% year-over-year to $64,000,000,000, supported by strong investment performance [25] Market Data and Key Metrics Changes - The company noted a favorable economic backdrop with resilient growth and declining inflation, which may allow the Federal Reserve to lower interest rates over time, positively impacting asset values [11][12] - The U.S. stock market reached record levels, and M&A activity, particularly sponsor M&A, is accelerating, indicating a more conducive environment for transactions [13][27] Company Strategy and Development Direction - The company is focusing on expanding its platforms in private wealth, credit, and insurance, as well as launching new funds in its drawdown area [6][7] - The firm aims to capitalize on the $12,000,000,000,000 U.S. defined contribution channel, which could provide significant growth opportunities [7] - The company is well-positioned to navigate the current dynamic environment, with a strong portfolio concentrated in compelling sectors and $181,000,000,000 of dry powder available for investment [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a favorable environment for deal-making, with a significant pipeline of potential IPOs and increased transaction activity expected [27][90] - The company anticipates an acceleration in net realizations as the market stabilizes and transaction activity increases [39] - Management highlighted the importance of technological innovation and economic fundamentals as key growth catalysts [8][11] Other Important Information - The company has launched BMAX, a multi-asset credit product aimed at expanding access to the private credit universe for individual investors [24][102] - The partnership with Legal and General aims to manage investment-grade private credit solutions, targeting up to $20,000,000,000 over the next five years [19][116] Q&A Session Summary Question: Credit demand and implications on fee rates - Management noted that demand for private credit remains robust, with clients focused on the enduring premium between liquid markets and private credit, which should support continued growth [44][46] Question: Real estate recovery expectations - Management indicated that the recovery in real estate is a matter of timing, with new supply declining and cost of capital improving, leading to a more favorable supply-demand dynamic [52][56] Question: Strategic partners and fundraising outlook - Management highlighted strong returns in the secondary fund segment, driven by significant new purchases and good appreciation in underlying funds, with a positive outlook for fundraising [61][64] Question: Retirement opportunity set and access to alternatives - Management expressed optimism about the potential for alternatives in defined contribution plans, particularly in target date funds, but emphasized the need to wait for regulatory developments [70][74] Question: Fee-related performance revenues outlook - Management provided insights on expected performance revenues, indicating a modest amount from certain funds in the upcoming quarters, with a focus on layering various products for future earnings power [108][112]

Brazilian securitization firm VERT has launched a blockchain-based private credit platform on the XRP Ledger, debuting with a $130 million issuance of an Agribusiness Receivables Certificate. By @shauryamalwa.https://t.co/KbjlRI3d3U ...

Private Credit Market Growth - Private markets have expanded significantly, reaching a $13 trillion valuation [1] - The private credit industry tripled in value from $517 billion in 2015 to over $1.7 trillion in 2025 [1] - The industry is expected to increase by 50% in the next 4 years [1] Risks and Concerns - Regulators and investors are concerned about the risks associated with private credit's rapid growth [1] - Systemic risks are a concern due to the size of the private credit market [2] - Rising interest rates pose a significant risk, potentially straining borrowers' balance sheets [2] - Default rates are expected to rise, regardless of a recession [2] - Private credit loans are hard to value, and defaults could occur rapidly if the economy weakens [2]