Financial Data and Key Metrics Changes - The company reported GAAP net income for the quarter of $2 billion, with distributable earnings of $2.2 billion or $1.75 per common share, marking a 20% increase in distributable earnings for the full year to $5.57 per share, totaling $7.1 billion [4][5][33] - Management fees increased 11% year-over-year to a record $2.1 billion, driven by a 10% growth in base management fees and a 27% increase in transaction and advisory fees [30][33] - Fee-related earnings reached $1.5 billion in Q4, or $1.25 per share, with a 24% year-over-year growth in fee-related performance revenues [30][31] Business Line Data and Key Metrics Changes - The infrastructure platform grew 40% year-over-year to $77 billion, with over $4 billion raised in Q4, supported by strong investment performance [17] - The BXMA segment reported a composite gross return exceeding 13% for both 2025 and 2024, with net inflows of $6.3 billion, the highest in nearly 15 years [18] - The private equity segment raised over $10 billion for its next Asia flagship, compared to approximately $6 billion for the previous vintage, indicating strong demand [19] Market Data and Key Metrics Changes - The company achieved inflows of $71 billion in Q4, the highest level in three and a half years, contributing to approximately $240 billion for the full year [5][6] - Assets under management increased 13% year-over-year to nearly $1.3 trillion, reflecting robust momentum across institutional, private wealth, and insurance channels [7][33] - The insurance channel's AUM grew 18% year-over-year to $271 billion, with significant credit placements generating incremental spreads [22][23] Company Strategy and Development Direction - The company is focusing on thematic areas such as digital infrastructure, private credit, and life sciences, with a strong emphasis on AI-driven investment opportunities [9][10] - The firm is well-positioned to benefit from the ongoing AI investment boom and the modernization of the U.S. electric grid, with nearly $200 billion of dry powder available for future investments [11][14] - The company anticipates a resurgence in capital markets activity, with IPO and M&A activities accelerating, as evidenced by the $7.2 billion IPO of Medline [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's prospects, citing strong operating and capital market fundamentals despite geopolitical uncertainties [8][14] - The company expects management fees to continue growing in 2026, driven by robust performance in private equity, credit, and insurance segments [38] - The firm is optimistic about the multi-year outlook, supported by structural tailwinds and multiple engines of growth [39] Other Important Information - The company has executed multiple privatizations and investments totaling $138 billion in 2025, the highest level in four years [10] - The firm reported a significant increase in net realizations, up 59% year-over-year to $957 million, the highest in three and a half years [31] Q&A Session Summary Question: On the record IPO pipeline - The company plans to focus on corporate sectors, particularly energy and electricity, with expectations of increased real estate activity in India [42][43] - Management noted that as limited partners receive capital back, it facilitates further capital allocation to the firm, creating a positive cycle for fundraising [44] Question: On AI deployment across portfolio companies - The company is seeing early impacts of AI, particularly in software engineering and cyber monitoring, with expectations for productivity gains [46][47] Question: On retail opportunities and market evolution - Management highlighted the breadth of offerings available, including income and growth products, and noted strong fundraising in credit despite lower absolute rates [51][52] Question: On direct lending dynamics - The institutional side is experiencing strong fundraising dynamics, while the wealth side has seen redemptions but remains confident in the portfolio's health [56][58]

Financial Data and Key Metrics Changes - The company reported GAAP net income for the quarter of $2 billion, with distributable earnings of $2.2 billion or $1.75 per common share, and declared a dividend of $1.49 per share [5][29] - Distributable earnings increased 20% year-over-year to $5.57 per share, or $7.1 billion for the full year, driven by strong growth in fee-related earnings and net realizations [7][32] - Management fees rose 11% year-over-year to a record $2.1 billion, with base management fees growing 10% and transaction and advisory fees increasing by 27% [29][32] Business Line Data and Key Metrics Changes - The Infrastructure platform grew 40% year-over-year to $77 billion, with over $4 billion raised in the fourth quarter [18] - BXMA reported a gross return of 13% for 2025, with positive composite returns for the last 23 quarters [34] - The private equity flagship in the wealth channel, BXPE, achieved an annualized net return of 17% since inception, growing to $18 billion in two years [24] Market Data and Key Metrics Changes - The company achieved inflows of $71 billion in the fourth quarter, the highest level in three and a half years, contributing to approximately $240 billion for the full year [7][8] - Assets under management increased 13% year-over-year to nearly $1.3 trillion, setting a new industry record [8][32] - The insurance channel's AUM grew 18% year-over-year to $271 billion, reflecting strong demand for private market solutions [22] Company Strategy and Development Direction - The company is focusing on thematic areas such as digital infrastructure, private credit, and life sciences, with significant investments in AI and power generation [10][12] - The firm is well-positioned to benefit from the ongoing AI investment boom and the modernization of the U.S. electric grid [11][12] - The company anticipates a resurgence in capital markets activity, with an acceleration in IPO and M&A activity [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's prospects, citing strong operating and capital market fundamentals despite geopolitical uncertainties [9][15] - The company expects management fees to continue on a strong positive trajectory in 2026, driven by growth in private equity, credit, and insurance segments [36] - The firm is optimistic about the multi-year outlook, supported by structural tailwinds and multiple engines of growth [37] Other Important Information - The company invested $138 billion across the firm in 2025, the highest level in four years, focusing on areas with significant growth potential [11] - The firm has nearly $200 billion of dry powder available to capitalize on future opportunities [15] Q&A Session Summary Question: On the record IPO pipeline - Management indicated that the focus will be on the corporate space, particularly in energy and electricity, with a broad-based approach expected [41] - The company noted that as limited partners receive capital back, it will facilitate further capital allocation to the firm, creating a positive cycle for fundraising [43] Question: About AI deployment across portfolio companies - Management highlighted early impacts of AI on productivity, particularly in software engineering and customer engagement across portfolio companies [45][46] - The firm is optimistic about the potential for earnings growth driven by AI advancements [47] Question: On retail opportunities and market evolution - Management discussed the breadth of offerings available, emphasizing the appeal of private credit and the potential for continued strong performance despite lower absolute rates [50][51] - The firm is confident in its ability to capture benefits across a wide range of equity products as rates decline [52] Question: On direct lending dynamics - Management noted strong fundraising dynamics on the institutional side, while acknowledging some redemptions in the wealth channel [54][58] - The firm remains confident in the health of its portfolio and the potential for durable premiums in private credit [58]

Financial Data and Key Metrics Changes - Blackstone reported GAAP net income for Q4 of $2 billion, with distributable earnings of $2.2 billion or $1.75 per common share, and declared a dividend of $1.49 per share [3][4] - For the full year, distributable earnings increased 20% to $7.1 billion, while fee-related earnings rose 9% to $5.7 billion, and management fees grew 12% to $8 billion [31][27] - Assets under management (AUM) increased 13% year-over-year to approximately $1.3 trillion, marking a new industry record [5][31] Business Line Data and Key Metrics Changes - The infrastructure platform grew 40% year-over-year to $77 billion, with over $4 billion raised in Q4 [16] - BXMA reported a gross return of 13% for 2025, with net inflows of $6.3 billion, the highest in nearly 15 years [17] - In credit, total assets managed reached $520 billion, up 15% year-over-year, with inflows exceeding $140 billion in 2025 [19] Market Data and Key Metrics Changes - Private wealth fundraising increased 53% year-over-year to $43 billion, contributing to a total AUM growth of 16% in this segment [4][22] - The insurance channel's AUM grew 18% year-over-year to $271 billion, with significant demand for private credit solutions [20][21] - The individual investor channel's AUM tripled over the past five years, exceeding $300 billion [22] Company Strategy and Development Direction - Blackstone is focusing on thematic areas such as digital infrastructure, private credit, and life sciences, with a strong emphasis on AI-driven investment opportunities [8][10] - The firm is well-positioned to benefit from the ongoing AI and power investment mega cycle, with nearly $200 billion of dry powder available for future investments [12][10] - The company anticipates a resurgence in capital markets activity, with IPO and M&A activities accelerating [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to navigate geopolitical uncertainties and a complex operating environment, citing strong operating fundamentals [7][12] - The outlook for 2026 is optimistic, with expectations for continued growth in management fees and net realizations, driven by a favorable investment environment [35][36] - Management highlighted the importance of investment performance, with strong returns across various funds, particularly in infrastructure and corporate private equity [31][33] Other Important Information - Blackstone's fundraising success has led to a significant increase in AUM, with a record level of inflows in Q4 [4][5] - The firm has executed multiple privatizations and investments, including a notable $18 billion acquisition in the medical technology sector [8][9] - The company is actively innovating in the private wealth market, expecting 2026 to be a busy year for product launches [24] Q&A Session Summary Question: What sectors and industries will you be leaning into for the record IPO pipeline? - The focus will be primarily on the corporate space, particularly energy and electricity sectors, with expectations for increased activity in India and some real estate opportunities [38] Question: How is AI being deployed across portfolio companies? - AI is enhancing productivity in software engineering and customer engagement, with early positive impacts observed in various operational areas [41] Question: What is the outlook for direct lending in both wealth and institutional markets? - Institutional confidence remains strong, while the wealth side has seen some redemptions; however, performance metrics are healthy, and inflows have been positive recently [46][48] Question: How does the firm plan to maintain growth and preserve culture as it scales? - The firm emphasizes a strong commitment to delivering for customers and maintaining a performance-driven culture, which is crucial as it continues to grow [62]

Core Insights - The recent bankruptcies of auto lender Tricolor and auto-parts manufacturer First Brands have been misattributed to the private credit market, according to Blackstone executives [1][2][5] - Blackstone's CEO Steve Schwarzman emphasized that these failures are linked to bank-led credits rather than private credit, specifically citing over $2 billion in asset-backed securities arranged by major banks [3][4] - Despite a late-credit cycle leading to potential increases in defaults, Blackstone maintains that these bankruptcies are isolated incidents and do not reflect broader credit market issues [5][6] Private Credit Market Overview - Blackstone's non-real estate credit assets under management rose to $432.3 billion, with $36 billion in inflows during the last quarter [6][12] - Including real estate credit, Blackstone manages $500 billion in credit, an 18% increase from the previous year, making credit approximately 40% of its total $1.24 trillion in assets [7] - Retail investors contributed $3.6 billion in inflows to Blackstone's BCRED, its largest private wealth vehicle, which now has nearly $85 billion in assets under management [12] Performance and Expectations - Blackstone expects strong inflows in credit despite lower yields, as the firm anticipates continued interest from private wealth channels [13] - The firm reported returns of 2.6% for private credit and 1.6% for liquid credit in the last quarter, with BCRED having a 97% floating rate [14] - Historically, Blackstone has maintained low annual losses, averaging just 0.1% even during financial crises, and its investment-grade focused private credit platform has experienced zero realized losses to date [15][17]

Financial Data and Key Metrics Changes - The company reported GAAP net income for the quarter of $1.2 billion, with distributable earnings increasing nearly 50% year-on-year to $1.9 billion or $1.52 per common share [5][8] - A dividend of $1.29 per share was declared, payable to holders of record as of November 3 [5] - Total assets under management (AUM) rose 12% year-over-year to $1.24 trillion, while fee-earning AUM grew 10% to $906 billion [32] Business Line Data and Key Metrics Changes - Fee-related earnings increased 26% year-over-year to $1.5 billion, driven by strong growth in fee revenues [34] - The private credit market saw AUM cross the $500 billion milestone, up 18% year-over-year, while the infrastructure and asset-based credit business grew 29% year-over-year to $107 billion [19][20] - The private wealth channel's AUM grew 15% year-over-year to nearly $290 billion, with over $11 billion raised in the third quarter, more than doubling year-over-year [24][25] Market Data and Key Metrics Changes - Inflows reached $54 billion, marking the fourth consecutive quarter in excess of $50 billion, totaling $225 billion for the last 12 months [8] - The company executed three successful IPOs in the last three months, with a robust pipeline for the next 12 months [10][35] - Commercial real estate values are showing signs of recovery, with transaction activity increasing by 25% year-over-year in U.S. logistics [30] Company Strategy and Development Direction - The company aims to leverage structural tailwinds in the alternative sector, focusing on private market solutions and expanding into digital and energy infrastructure, private credit, and Asia [8][9] - The firm is positioned to capture opportunities in the defined contribution market as it opens to alternatives over time [8] - The company emphasizes a long-term approach to investing, focusing on sectors with strong fundamentals such as data centers, logistics, and rental housing [38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's growth prospects, citing a resilient economy and declining cost of capital as positive indicators for capital markets activity [10][39] - The company anticipates a resurgence in capital markets activity, which should lead to greater realizations and support fundraising and deployment [10][39] - Management acknowledged potential increases in defaults as the cycle progresses but believes their structural advantages will continue to yield superior results [12] Other Important Information - The company celebrated its 40th anniversary, highlighting its growth from a startup to the largest alternative asset manager in the world [14][17] - The firm has achieved significant organic growth, distinguishing itself from competitors who often rely on acquisitions [14] Q&A Session Summary Question: Changes in credit quality across the portfolio - Management clarified that recent credit issues were related to bank-led credits and do not reflect the private credit market, with minimal realized losses currently [41][42] Question: Plans for the defined contribution business - Management indicated a focus on building capabilities in this area and plans to work with existing partners while awaiting regulatory frameworks [44][45] Question: Brand strategy and marketing evolution - Management discussed targeted marketing efforts, including a recent launch in Japan, and emphasized the importance of expanding their footprint in private wealth [47][49] Question: Feedback on BCRED's dividend cut - Management noted that the reaction in the wealth channel has been understanding, with expectations for strong flows in BCRED moving forward [78]

Financial Data and Key Metrics Changes - The company reported GAAP net income for the quarter of $1.2 billion and distributable earnings of $1.9 billion, or $1.52 per common share, marking a 48% year-over-year increase [5][34] - Distributable earnings increased nearly 50% year on year, driven by a 26% growth in fee-related earnings and a more than doubling of net realizations [8][34] - Total assets under management (AUM) rose 12% year over year to $1.24 trillion, with fee-earning AUM growing 10% to $906 billion [32] Business Line Data and Key Metrics Changes - In corporate and real estate credit, AUM crossed the $500 billion milestone, up 18% year over year [19] - The infrastructure and asset-based credit business grew 29% year over year to $107 billion, one of the fastest-growing areas [20] - The private wealth channel's AUM grew 15% year over year to nearly $290 billion, with over $11 billion raised in the third quarter, more than doubling year over year [24][25] Market Data and Key Metrics Changes - The company executed three successful IPOs in the last three months, with a robust pipeline for the next 12 months [10][35] - The commercial real estate market is showing signs of recovery, with values bottoming in December 2023 and transaction activity increasing by 25% year over year in U.S. logistics [30] - The demand for data center space continues to grow, with a doubling in the leasing pipeline globally in Q3 compared to Q2 [63] Company Strategy and Development Direction - The company aims to capture generational shifts in the global economy and markets, focusing on massive capital solutions across various sectors, including AI, energy infrastructure, and life sciences [17] - The firm is positioned to lead the evolution of private credit markets, expanding from non-investment grade corporate credit to include commercial finance and infrastructure [20] - The company plans to broaden distribution in major markets and deepen its presence in key sub-channels, including the RIA channel [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's growth prospects, citing strong structural tailwinds in the alternative sector and increasing allocations to alternatives by institutional investors [8][9] - The company anticipates a resurgence in capital markets activity, which should lead to greater realizations and support fundraising and deployment [10] - Despite recent credit defaults in the market, management emphasized that these events are not reflective of the private credit market and that defaults remain minimal [11][42] Other Important Information - The company celebrated its 40th anniversary, highlighting its growth from a startup to the largest alternative asset manager in the world [14] - The firm has achieved significant organic growth, distinguishing itself from competitors who often rely on acquisitions [14][15] Q&A Session Summary Question: Changes in credit quality across the portfolio - Management clarified that recent credit issues are not related to private credit but rather to bank-led credits, emphasizing minimal realized losses and strong credit quality [41][42] Question: Plans for the defined contribution business - Management discussed the importance of building capabilities in this area and indicated plans to work with existing partners while awaiting regulatory developments [44][45] Question: Brand strategy and marketing evolution - Management noted targeted marketing efforts, including a recent launch in Japan, and emphasized the importance of expanding the brand's footprint in private wealth [47][49] Question: Interplay between margin outlook and realizations - Management indicated that operating leverage will continue to support healthy fee-related earnings margins, with a favorable outlook for realizations as capital markets strengthen [52][53] Question: Feedback on BCRED's dividend cut - Management reported healthy gross sales and expected strong flows in BCRED, emphasizing the importance of delivering relative premium returns [68][78]

Financial Data and Key Metrics Changes - Blackstone reported GAAP net income for Q3 2025 of $1.2 billion, with distributable earnings increasing nearly 50% year on year to $1.9 billion or $1.52 per common share [5][7][33] - The company declared a dividend of $1.29 per share, payable to holders of record as of November 3 [5] - Total assets under management (AUM) rose 12% year over year to a record $1.24 trillion, while fee-earning AUM grew 10% to $906 billion [31] Business Line Data and Key Metrics Changes - Fee-related earnings increased 26% year over year to $1.5 billion, driven by strong growth in fee revenues and healthy margin expansion [33] - In private credit, AUM crossed the $500 billion milestone, up 18% year over year, while infrastructure and asset-based credit business grew 29% year over year to $107 billion [19][20] - The private wealth channel's AUM grew 15% year over year to nearly $290 billion, with over $11 billion raised in Q3, more than doubling year over year [19][24] Market Data and Key Metrics Changes - In the capital markets, global IPO issuance more than doubled year over year in Q3, contributing to a resurgence in capital markets activity [10] - The company executed three successful IPOs in the last three months, with a robust pipeline for the next 12 months [10][34] - Commercial real estate values are showing signs of recovery, with transaction activity increasing by 25% year over year in U.S. logistics [29] Company Strategy and Development Direction - Blackstone aims to leverage structural tailwinds in the alternative investment sector, focusing on private market solutions and expanding into new markets such as digital and energy infrastructure [7][9] - The firm is positioned to capture opportunities in the AI revolution, energy infrastructure, and life sciences, emphasizing the need for massive capital solutions [17] - The company celebrates its 40th anniversary, highlighting its organic growth strategy and focus on building market-leading platforms [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's growth prospects, citing a resilient economy and declining cost of capital as favorable conditions for capital markets [10][30] - The firm anticipates a significant increase in realizations and fundraising as the deal cycle turns and capital markets strengthen [34][80] - Management acknowledged potential increases in defaults as the cycle progresses but believes their structural advantages will continue to yield superior results [12][41] Other Important Information - The company reported a significant increase in net realizations, generating $5.05 billion in Q3, more than double the prior year period [34] - Blackstone's investment performance remains strong, with infrastructure leading the way with a 5.2% appreciation in Q3 [35] - The firm is expanding its partnerships and distribution channels, particularly in the private wealth sector, to capture a broader investor base [26][49] Q&A Session Summary Question: Changes in credit quality across the portfolio - Management clarified that recent credit issues are not related to private credit but rather to bank-led credits, emphasizing minimal realized losses in their portfolio [40] Question: Plans for the defined contribution business - Management indicated a focus on building capabilities in the defined contribution market, planning to work with existing partners and large financial institutions [43][45] Question: Brand strategy and marketing evolution - Management discussed targeted marketing efforts, including a recent advertisement launch in Japan, to enhance brand awareness in key markets [47][49] Question: Competition from banks in direct lending - Management acknowledged increased competition from banks but expressed confidence in their unique positioning and ability to provide customized long-duration capital solutions [82]

Summary of Blackstone's Conference Call Company Overview - **Company**: Blackstone - **Industry**: Investment Management and Private Equity Macro Economic View - The U.S. economy is perceived as resilient, with corporate earnings reflecting this strength [3][4] - Positive factors include decreasing cost of capital and a significant investment boom in AI and related technologies [4][5] - The ten-year Treasury yield is around 4%, with tight spreads in high yield and investment-grade markets [4] - There is a noted deceleration in consumer spending, particularly in lower-end markets and discretionary sectors [5][6] Inflation and Labor Market - Inflation is expected to show signs of goods inflation but is offset by decreasing shelter, wage, and energy costs [7][8] - Wage growth in Blackstone's portfolio has dropped below 3%, with most CEOs reporting no difficulty in hiring [9] Transaction Environment - A resurgence in M&A and IPO activity is anticipated, with transaction volumes up 35% to 50% year-over-year [11][12] - Blackstone deployed approximately $145 billion in capital over the past year, a 43% increase from the previous year [12][13] - The firm has made 20 new commitments totaling $11 billion in private equity and $11 billion in credit business recently [13][14] Alternatives in Retirement Plans - The potential inclusion of alternatives in 401(k) plans is seen as a significant opportunity for Blackstone [17][18] - The defined contribution market has virtually no allocation to alternatives, creating a disparity with defined benefit plans [18][20] - Blackstone is well-positioned to capitalize on this shift due to its extensive product offerings and strong performance [21][22] Insurance Model - Blackstone's insurance model is designed to maximize market opportunities with minimal risk, targeting the $40 trillion global insurance market [25][26] - The firm has grown its insurance AUM by 20% year-over-year, reaching $250 billion [26][27] Infrastructure Business - The infrastructure sector is rapidly growing, with AUM reaching $64 billion, up 32% year-over-year [44] - Blackstone focuses on digital infrastructure, transportation, and power, with a robust portfolio including data centers and renewable energy assets [46][47] Private Equity and Real Estate - Blackstone's corporate private equity business has $165 billion in AUM, growing 14% year-over-year [53] - The real estate market is recovering, with a focus on logistics, multifamily, and data centers, which comprise 75% of the portfolio [62][63] - The firm has raised the largest European real estate fund ever, totaling $10.6 billion [66] Future Outlook - Blackstone aims to lead in the alternatives and private markets sector, viewing it as a significant long-term investment theme [68]

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]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $1.2 billion for the quarter, with distributable earnings increasing 11% year-over-year to $1.4 billion or $1.09 per common share [6][7][48] - Fee-related earnings grew 9% year-over-year, reaching $1.3 billion or $1.03 per share, marking one of the best quarters in the company's history [7][47] - Total assets under management (AUM) rose 10% year-over-year to nearly $1.2 trillion, with $199 billion of inflows over the last 12 months [8][47] Business Line Data and Key Metrics Changes - The private credit business expanded significantly, with $465 billion in assets, up more than 2.5 times in the past four years, and inflows of $113 billion over the last 12 months [25] - The private wealth channel saw AUM grow to over $270 billion, with fundraising in this area increasing by nearly 40% year-over-year to $11 billion in Q1 [19][34] - The infrastructure platform's AUM increased 36% year-over-year to $60 billion, with strong performance in its strategies [39] Market Data and Key Metrics Changes - The company raised $62 billion in inflows during Q1, the highest level in three years, reflecting broad-based momentum across various channels [8] - The firm noted that construction starts in U.S. logistics and apartments have fallen to their lowest levels in over a decade, which could support real estate values [15] - The insurance AUM grew 18% year-over-year to $237 billion, indicating strong traction in the insurance channel [31] Company Strategy and Development Direction - The company aims to leverage its $177 billion of dry powder to capitalize on investment opportunities arising from market dislocations [13][66] - A strategic alliance with Wellington and Vanguard was announced to enhance access to public-private investment solutions, reflecting the company's commitment to democratizing private markets [20][21] - The firm continues to focus on areas with high conviction, investing $36 billion in Q1, with a commitment of $13 billion to new deals benefiting from long-term secular tailwinds [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current turbulent market, emphasizing the strength and stability of the firm [12][22] - The company highlighted the importance of a fast resolution to tariff uncertainties to mitigate risks and maintain economic growth [11][56] - Management noted that the firm is well-prepared to take advantage of opportunities arising from market volatility, with a focus on long-term value creation [57] Other Important Information - The company reported a significant increase in net realizations, up 22%, contributing to the growth in distributable earnings [48] - The firm emphasized its asset-light model and minimal net debt, which provides flexibility to respond to changing market conditions [13][72] Q&A Session Summary Question: Deployment opportunities with $180 billion of dry powder - Management indicated that periods of dislocation often present attractive deployment opportunities, with a focus on sectors like digital infrastructure and energy [60][66] Question: Characteristics of private market solutions - Management highlighted the resilience of their model during stress periods, allowing them to generate excess returns by leaning into market dislocations [70][72] Question: Outlook for North American institutional channel - Management noted that while there may be a slowdown in decision-making, there is a long-term commitment to private assets among clients [82][85] Question: Expansion of global wealth management business - Management discussed the potential growth in the wealth management sector, particularly through the partnership with Wellington and Vanguard [87][94] Question: Direct first-order tariff impact on the portfolio - Management defined direct first-order impact as limited, with a focus on second-order effects related to capital markets and economic slowdown [98][100] Question: Investment-grade private credit opportunities - Management emphasized the flexibility and bespoke solutions offered to borrowers, which are more challenging to execute in public markets [110][113] Question: International backdrop and deployment ability - Management acknowledged questions from global investors regarding geopolitical issues but noted that their businesses continue to operate normally [120][122] Question: Wealth flows and asset class preferences - Management reported no pullback in sales in the wealth channel, indicating strong investor interest in alternatives [126][128] Question: Real estate fundraising appetite - Management observed improved conversations with institutional LPs regarding real estate, although some hesitance remains due to recent market conditions [134][135]