Blackstone Q1 2025 slides: AUM reaches $1.17 trillion with strong inflows

Executive Summary

Blackstone Inc (NYSE:BX) reported its first quarter 2025 financial results on April 17, showing continued growth in assets under management and strong capital inflows despite a sequential decline in earnings from the previous quarter. The world’s largest alternative asset manager reported distributable earnings of $1.4 billion ($1.09 per share) and fee-related earnings of $1.3 billion ($1.03 per share) for the quarter.

Total (EPA:TTEF) assets under management reached $1.17 trillion, up 10% year-over-year, driven by significant inflows across all business segments. The firm’s Credit & Insurance segment showed the strongest growth, with AUM increasing 21% year-over-year to $388.7 billion.

"Appreciation across strategies led to higher Net Accrued Performance Revenues quarter-over-quarter of $6.4 billion ($5.24 per share)," the company noted in its presentation, highlighting the continued strength of its investment performance despite challenging market conditions.

Quarterly Performance Highlights

Blackstone reported GAAP net income of $1.2 billion for the first quarter of 2025 and $5.1 billion over the last twelve months. GAAP net income attributable to Blackstone Inc. was $615 million for the quarter and $2.5 billion over the LTM.

As shown in the following detailed financial results table, total revenues were $3.29 billion for Q1 2025, compared to $3.69 billion in Q1 2024, representing a slight decline year-over-year:

The firm’s distributable earnings, a key metric watched by investors, came in at $1.41 billion ($1.09 per share) for the quarter, compared to $1.27 billion ($0.98 per share) in the same period last year. This represents an 11.4% increase year-over-year, though it marks a significant sequential decline from the $2.2 billion ($1.69 per share) reported in Q4 2024.

The company’s first quarter 2025 highlights demonstrate solid performance across key financial and operational metrics:

Segment Analysis

Blackstone’s business is divided into four main segments: Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing. Each segment showed varying performance in the first quarter of 2025.

The firm’s segment earnings breakdown reveals the contribution of each business line to overall performance:

The Credit & Insurance segment was the standout performer, with AUM increasing 21% year-over-year to $388.7 billion. The segment reported inflows of $30.3 billion in the quarter and $104.6 billion over the LTM, demonstrating strong investor appetite for Blackstone’s credit strategies in the current market environment.

"Credit & Insurance segment distributable earnings increased 76% year-over-year to $503.4 million in Q1 2025," the company reported, highlighting the growing importance of this segment to Blackstone’s overall business.

Private Equity AUM increased 16% year-over-year to $371.0 billion, with inflows of $21.7 billion in the quarter. The segment deployed $16.4 billion in capital during the quarter, showing continued investment activity despite market volatility.

The Real Estate segment, traditionally Blackstone’s core business, showed a decline in AUM to $320.0 billion from $339.3 billion a year earlier. Segment distributable earnings for Real Estate decreased to $495.4 million from $616.4 million in Q1 2024, reflecting ongoing challenges in the commercial real estate market.

The investment performance across Blackstone’s strategies showed mixed results, with strong performance in Credit and Multi-Asset Investing but weakness in Real Estate:

Capital Metrics

Blackstone reported strong capital activity during the quarter, with inflows of $61.6 billion, deployment of $36.4 billion, and realizations of $25.5 billion.

The firm’s total AUM reached $1.17 trillion, up 10% year-over-year, while fee-earning AUM increased 10% to $860.1 billion. Perpetual Capital AUM, a focus area for the firm, grew 14% year-over-year to $464.4 billion, now representing approximately 40% of total AUM.

The following chart illustrates the growth in Blackstone’s AUM across different categories:

Blackstone’s invested performance eligible AUM reached $582.8 billion at quarter end, while undrawn capital ("dry powder") available for investment stood at $177.2 billion, positioning the firm well for future investment opportunities.

Balance Sheet and Shareholder Returns

At March 31, 2025, Blackstone reported a strong balance sheet with $9.8 billion in total cash, cash equivalents, corporate treasury, and other investments. The firm’s cash and net investments totaled $19.4 billion, or $15.89 per share.

The company maintains A+/A+ credit ratings and has a $4.3 billion credit revolver with $3.4 billion undrawn, providing significant financial flexibility.

As shown in the following balance sheet highlights, Blackstone’s financial position remains robust:

Blackstone declared a quarterly dividend of $0.93 per common share, payable on May 5, 2025, to shareholders of record as of April 28, 2025. This represents an increase from the $0.83 per share dividend paid in Q1 2024.

The firm repurchased 0.2 million common shares during the quarter and 3.5 million shares over the LTM. In total, Blackstone will distribute $1.2 billion to shareholders with respect to the first quarter through dividends and share repurchases.

Market Context and Outlook

Blackstone’s Q1 2025 results show continued growth in AUM and strong inflows, but with a sequential decline in earnings from the record performance reported in Q4 2024. According to the previous earnings report, Blackstone achieved "one of the best quarters in our history" in Q4 2024, with distributable earnings of $2.2 billion.

The sequential decline in earnings from Q4 2024 to Q1 2025 (from $1.69 per share to $1.09 per share) suggests some normalization after an exceptionally strong fourth quarter. However, the year-over-year improvement in distributable earnings (from $0.98 per share in Q1 2024 to $1.09 per share in Q1 2025) indicates continued underlying growth.

The firm’s strong inflows of $61.6 billion in the quarter demonstrate continued investor confidence in Blackstone’s investment capabilities across asset classes. The significant growth in the Credit & Insurance segment highlights the firm’s strategic shift toward this area, which has shown resilience amid market volatility.

Blackstone’s stock has experienced volatility in recent trading, with the share price declining 3.12% to $129.38 on April 16, 2025, the day before the earnings release. However, premarket trading showed a slight recovery, with the stock up 0.4% to $129.90.

As the largest alternative asset manager globally, Blackstone continues to benefit from its scale, diversified business model, and strong brand. The firm’s continued growth in perpetual capital products, which now represent 46% of fee-earning AUM, provides a more stable revenue base, while its significant dry powder positions it well to capitalize on investment opportunities in the current market environment.

Full presentation:

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