Blackstone Q2 2025 slides: AUM surpasses $1.2 trillion as earnings growth continues

Introduction & Market Context

Blackstone Inc. (NYSE:BX) released its second-quarter 2025 financial presentation on July 24, 2025, revealing continued growth across key metrics. The asset management giant’s stock responded positively in premarket trading, rising 2.36% to $176.02, building on the previous day’s 1.52% gain.

The presentation comes after Blackstone’s strong first-quarter results, where the company exceeded analyst expectations with an EPS of $1.09 against a forecast of $1.06 and revenue of $3.29 billion versus the anticipated $2.94 billion. The second-quarter slides indicate this momentum has continued, with total assets under management (AUM) now exceeding $1.2 trillion.

Quarterly Performance Highlights

Blackstone’s Q2 2025 results demonstrate robust performance across key financial metrics. Total (EPA:TTEF) segment distributable earnings reached $1.79 billion in the second quarter, up from $1.43 billion in Q1 2023, representing a significant increase over the two-year period.

Fee-related earnings (FRE), a critical measure of Blackstone’s recurring revenue stream, increased to $1.46 billion in Q2 2025 from $1.04 billion in Q1 2023, highlighting the company’s ability to generate stable income regardless of market conditions.

As shown in the following comprehensive financial overview:

Total management and advisory fees grew to $2.02 billion in Q2 2025, up from $1.65 billion in Q1 2023. This growth in fee revenue provides a stable foundation for Blackstone’s business model, especially important during periods of market volatility.

Net income attributable to Blackstone Inc. showed remarkable improvement, increasing to $764.24 million in Q2 2025 from $85.81 million in Q1 2023, demonstrating the company’s enhanced profitability over the period.

Segment Analysis

Blackstone’s presentation provides detailed breakdowns of performance across its four main business segments, with Private Equity and Credit & Insurance showing particularly strong results.

The Private Equity segment demonstrated exceptional growth, with segment distributable earnings increasing to $751.42 million in Q2 2025 from $543.87 million in Q1 2023. Base management fees grew to $605.07 million, reflecting the segment’s expanded asset base and Blackstone’s ability to attract new capital.

As illustrated in the Private Equity financial data:

The Credit & Insurance segment also posted impressive results, with fee-related earnings rising to $333.03 million in Q2 2025 from $217.44 million in Q1 2023. This segment has become increasingly important to Blackstone’s overall business, particularly as institutional investors seek yield in the current interest rate environment.

The Credit & Insurance segment’s financial performance is detailed here:

The Real Estate segment, traditionally Blackstone’s largest business, showed more modest growth with segment distributable earnings increasing to $565.87 million in Q2 2025 from $534.60 million in Q1 2023. Base management fees actually decreased slightly to $673.15 million from $705.39 million, potentially reflecting challenging conditions in certain real estate markets.

Real Estate segment performance is outlined in the following table:

The Multi-Asset Investing segment, while smaller than other segments, contributed $72.35 million to segment distributable earnings in Q2 2025, up from $58.63 million in Q1 2023, demonstrating Blackstone’s diversified revenue streams.

Assets Under Management

A standout metric from Blackstone’s presentation is the continued growth in assets under management, which reached $1.21 trillion by the end of Q2 2025, up from $991.29 billion in Q1 2023. This represents a 22% increase over approximately two years, underscoring Blackstone’s ability to attract and retain capital despite market fluctuations.

The detailed AUM rollforward provides insight into the drivers of this growth:

For the three months ended June 30, 2025, Blackstone reported inflows of $39.88 billion and market activity of $18.45 billion, partially offset by realizations of $14.59 billion. This resulted in a net increase of $43.75 billion in AUM during the quarter.

Fee-earning AUM, which directly contributes to Blackstone’s management fee revenue, increased to $887.11 billion by the end of Q2 2025, up from $860.07 billion at the beginning of the quarter. This growth in fee-earning assets provides a foundation for continued revenue expansion in future quarters.

Investment Performance

Blackstone’s presentation includes detailed investment records across various strategies, providing insight into the firm’s ability to generate returns for investors. The Real Estate and Private Equity investment records show strong performance across multiple funds:

Additional investment records for Growth, Strategic Partners, Life Sciences, and Credit strategies further demonstrate Blackstone’s diversified approach to alternative investments:

These investment records are crucial for Blackstone’s ability to raise new capital, as strong historical performance attracts both institutional and individual investors to the firm’s funds.

Forward Outlook

Based on the trends evident in Blackstone’s Q2 2025 presentation, the company appears well-positioned for continued growth. The consistent increase in AUM, particularly in fee-earning assets, provides visibility into future management fee revenue.

The company’s diversified business model, with strong performance across multiple segments, helps insulate Blackstone from weakness in any single market. The particularly strong growth in Private Equity and Credit & Insurance segments suggests these areas may continue to be key drivers of future earnings.

In the Q1 2025 earnings call, CEO Steve Schwarzman had noted, "We do some of our best work in times of volatility," highlighting the firm’s strategic positioning in uncertain markets. The Q2 2025 results appear to validate this perspective, with Blackstone continuing to grow despite broader market challenges.

With total AUM now exceeding $1.2 trillion and fee-related earnings showing consistent growth, Blackstone’s Q2 2025 presentation reinforces the company’s position as a leader in alternative asset management with a strong trajectory for continued expansion.

Full presentation:

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