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Blackstone (NYSE:BX) FY Conference Transcript
BlackstoneBlackstone(US:BX)2025-09-09 16:17

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]