Blackstone (NYSE:BX) 2026 Conference Transcript

Summary of Blackstone's Conference Call Company Overview - Company: Blackstone - AUM: $1.3 trillion, making it the number one alternative asset manager globally [3] - Growth: AUM has increased by more than 15x since the 2007 IPO [3] Macro Environment - Investment Boom: A historic investment boom is underway, expected to lead to a productivity boom [4] - Revenue Growth: 9% revenue growth in corporate private equity companies in Q4, with strong margins [4] - AI Sector: Significant gains in AI and related infrastructure, with data center platform QTS leasing growing by 50% in 2025 [4] - Consumer Economy: A two-speed consumer economy is observed, with high-end consumers remaining strong [5] - Inflation: Inflation is under control, with stable labor costs and a balanced labor market [5] - Corporate Confidence: CEO optimism is at its highest in over a year, with minimal expectations of a recession [6] Investment Outlook - Deployment Expectations: Anticipation of a very active 2026, following a strong 2025 with $138 billion in investments [9] - Focus Areas: Emphasis on AI, digital infrastructure, power and electrification, and life sciences [10][11] - Market Opportunities: A $30 trillion market opportunity in private credit, with private markets doubling from $6-7 trillion to $13 trillion in seven years [12] Fundraising Trends - 2025 Performance: Generated $239 billion in inflows, a 40% increase year-over-year [15] - Institutional Inflows: Institutional inflows increased over 50% year-over-year, with AUM in this channel exceeding $700 billion [15] - Insurance Clients: AUM in insurance clients grew fourfold in the last five years, reaching over $270 billion [17] - Private Wealth: Crossed the $300 billion milestone in private wealth, up three times in five years [18] Financial Performance - Management Fees: Mid-teens growth in base management fees across three of four business segments in Q4 [21] - Transaction Fees: Expectation of a strong year for capital markets business due to improving transaction backdrop [23] - Net Realizations: Anticipation of significant benefits from cyclical recovery and crystallization of incentive fees [25] Real Estate Sector - Market Recovery: Private real estate values have improved from the trough, with data centers and industrials showing strength [40] - Fundraising Outlook: Strong interest in real estate credit and improvement in BREIT flows, which was up 8.1% net in 2025 [43] - Sector Selection: Focus on data centers, logistics, and residential sectors, which constitute 75% of the global portfolio [45] AI Integration - Operational Efficiency: AI tools are enhancing efficiency across various operations, including software development and cybersecurity [46][47] - Data Advantage: Emphasis on proprietary private market data as a strategic advantage [48] Conclusion - Overall Outlook: Blackstone is positioned for strong growth across various sectors, with a robust macro environment and strategic focus on AI and private markets driving future performance [25][48]