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]

Blackstone (NYSE:BX) Q3 2025 Earnings Call October 23, 2025 09:00 AM ET Speaker5Thank you for standing by. You're on hold for the Blackstone third quarter 2025 investor call. At this time, we're gathering additional participants and should be underway shortly. We appreciate your patience and ask that you continue to hold.Speaker2Please stand by. The conference will begin shortly. Please stand by. The conference will begin shortly. Please stand by. The conference will begin shortly.Speaker5Good day and welco ...