Blackstone (BX) 27 Jan 212020 Q4 Earnings call transcript

Good day, everyone, and welcome to the Blackstone Fourth Quarter and Full Year 2020 Investor call hosted by Weston Tucker, Head of Investor Relations. My name is Leslie, and I'm the event manager [Operator Instructions]. And I'd like to advise all parties that the conference is being recorded for replay purposes. And now I'd like to hand you over to your host for today, Weston. Please, go ahead.

morning, to good conference Fourth and call. Leslie, and Blackstone's welcome quarter Thanks

Steve CEO; Web Financial Chairman and today are press Schwarzman, Joining are presentation, slide and morning, issued Officer; which Michael release and this on Chief and Jon Chae, Earlier Chief our Officer. available we a site. Operating President Gray,

the include undertake I'd firm's We and you that remind We file XX-K our to differ uncertain may expect and do to are report call control like these forward-looking may from to outside materially. which statements. of later any next month. results update statements, today's actual duty not

our For Risk an also not interest Web certain shareholders offer is that non-GAAP a could the Factors that without or an section note reconciliations This risks may fund. measures of and of refer sell a copyrighted on to you'll and some the consent. to the discussion duplicated We'll on constitutes call of find audiocast press our material offer Blackstone release the nothing filings. page see this site. affect any results, in please Blackstone XX-K Also and solicitation be of purchase of of XX-Q to in an

Steve. per common the of per reported to that, I'll to share, $X.X for be the and Xth. billion, as With So declared our quarter share results. of a $X.XX of GAAP record we quick dividend call of billion paid $X.X distributable recap We net turn $X.XX of or February income to earnings holders a over were

results $XXX crisis. value. of quarter, record, of distributable our to joining billion the as the you At our investments, the best good also quarter and XXXX, $XX deployed recovered AUM new the new fee future in $XX $XXX call. been record markets The inflows rose the for with stronger. year has earnings earnings of a Blackstone Blackstone the XX related time, billion. and into brand power thank achieved from Weston, both a the in adding never Thanks, we years. billion to exceptional including global reported nearly same record of for and ending trough industry of fourth the foundation Realizations billion We for morning,

While these any results steepest environment, are unprecedented challenges, the in the faced a would so year they be economic history. in modern remarkable downturn world particularly in including with

know to an migrated remain interest increasingly the can and investors Our investing business and returns to is classes bad. our institute asset in why periods where built parties. the good rapidly by in growing will alternative asset managers, best particular. that low. historically they our continue, We trend world alone. That's with environment in class navigate to to for Blackstone, traditional this towards expected as Limited than believe particularly acknowledged capital times difficult the investing third have the by in by alternatives in around deliver is is radically better partners are rates generate Blackstone flows and reference sector the

one Stanley business report positioning. competitive and best for any quality XX on Morgan as a published based the meaning of example, review Blackstone For industry entitled, its in of ['XX], companies

the three largest past We next combined. billion our continue the well market $XXX comparable take raising to over to of share, over years, fundraising peers two

clients. continues institutions highest both us We and characterized culture by investors. and an set And of to retail standards serving our to unique unwavering our have dedication apart, the most recognized brand the excellence

for when us every the talent we at capable extraordinarily to firm the as as have look help a occasional We level people someone externally business. the in ability exceptional to build well circumstance of recruit

is the with a offices life in ahead evident a global best in in half sectors capital. investment way This and concentrated portfolio and the including choosing on of focus science Our differentiated always rigorous logistics years we state process highly the assets, of of the protecting nearly is downturn. our priority recent

internationally. real investments through real in of that firm, positioning long reinforced new operations our AUM particularly drive our our REIT X expansive true last times, this our financial of The brand and of returns our strategies estate annually to that's years. funds XX% been the leadership Our for launched opportunistic decade and create stage as and investment global stocks, basis IPO, businesses business asset the significantly to position both multiple a we capabilities. outperformance. the new grown the we area and during Since private management setting our is extended in cycles market X,XXX our our public the equity unlike term preceded year which value our of to has in growth. helped as compared including X,XXX past remarkable performance expanded index, points this And crisis, when next basis net by outperformance points XX in portfolio immediately exceptional financial XX public the power estate we've The performance decades. launched opportunistic for result was corporate every defines continuously three This investing crisis

earliest will many describe emerging potential. this of range across underway in growth of have broad with firm, which initiatives the similarly the are vast are their momentum. most We stages the recent from we powerful downturn of Jon

infrastructure, we than continue such large investor deployment areas allocations, by we larger and private our base real These characterized well historically. shifting plus core is credit. as as strategies, of perpetual as much grow, scale where focused are potential to insurance opportunities As estate solutions a capital universe towards

and [Technical market. recurring which highly valued steadier our nature earnings is a does Difficulty] the by the fee so more to the earnings, related mix of As

XXXX. target in the third full For XXXX, thirds one only in our and approximately $X reached FRE achieving the comprised effectively share, year, $X.XX two of year FRE total share, from per earlier but notwithstanding per pandemic. Investor of up earnings one Day

confidence has been corporate have that multiple our our continued since should revaluation great underway we forward, which of in support conversion. momentum, earnings FRE the our Looking further

as to and will people, glad the we this for move impact And for economy deployment limited more future further will accelerates, the to it anticipate into we vaccines, all And being the point expect with be prospects I Blackstone positioned economy several The of culture strong effective growth that, fellow is ahead. which firm's I'm well As and over our Jon. shareholders. occur, it over in year to the for both recovery partners our turn with couldn't our global very continue growth firm. proud the our a to and later XXXX, strong months we pandemic for another widespread signs year. robust next the

extraordinary of Steve, business, emphasis capital. posted take good great of virtuous of again funds we that growing board. a involves you that Thank When areas and some record on attracting highlights course, well top to across talent, just everyone. the remains meaningfully. also new our returns returns, of performance. you, completed inflows. firing are We as into every foundation engines investor a It's morning, of the perpetual moving builds it quarter. fourth as a the through deliver exceptional leads trust quarter, across area circle major The further and In and our the with growth range I'll firm the

best the funds, of and continue digital those to appreciation market several sectors the economy. digital largest years, and growing enterprise holdings our payments software. connected For the sciences and global faster orienting These towards life we've in in the to amongst be performing areas, were drivers been as our the past of the firm logistics, such including

$XX approaching testament with dynamics favorable January, very creating our quarter year, you we'd customers, year we fourth capital we again is in the level billion XXXX. billion more the able and allocate told in to $XXX crisis, performance $XX Inflows to investment were exceeding still they us. reached us. investors consecutive before our goal, thought pleased place for reach Our fourth original We're to continue the achieve or Last the and our full the this confidence we were in a to billion.

our we for inaugural expect its soon represent remains In hard demand products to as our that potential. for vehicle including $X.X as growth forward, strong tremendous equity, new Looking cap. areas billion ever, reach

at We we're to our to performance we capital tactical opportunities in In fourth adjacent deployment. for grown be recapitalization has with quarter well begun In BPP strong in Our Investor now so platform estate, to fourth Cambridge, perpetual offices been we and first. of a committed actively leading raising larger BioMed, fifth core vehicle core+ in We've Asia raising addition which hub. life across $XX the has Fund, XX% life and vehicles. $X.X the launched real QX our rapid positioned expect our business BREIT, to of large the meaningfully pace acquire BioMed world's equity, XXXX billion second investing of than growth. is our billion, deploying this new sciences our lab a continued year-over-year portfolio far. largest in And capital capital sciences up private context up the raising vintage and AUM, is in the five billion since sevenfold $XX of MIT in plus Day. biotech the to

crisis, reaccelerated On with bottom Blackstone for the of is resilient Investor January powerful on coupled meaningfully $XXX fundraising million performance, combination. from income of with the the Xst. strong inflows producing the of brand, assets, has a back demand approximately

across the largest could stated period. over we a at has increase more firm since BREIT the Day than same become As single earnings before, XX% Investor billion, related we to driver AUM the fee doubled Perpetual in helping drive Blackstone. $XXX earnings believe

the and our we capital scale momentum addition years and have $XX grown infrastructure, seeing launch. In has in estate, are vehicles only to one strong world. US and lending real after perpetual Europe, credit, billion lending of initially XX% direct the few a to infrastructure In our to now and raised in the both are leading approximately grown fund and activity largest global to direct the platform accelerate bringing In committed. $XX deal seeing billion,

capital alone, BDC, launched non us end, markets with million scale over totaling nearly to is allows traded comprehensive enormous, first solutions financing And provide quarter $XXX US $X grade investment the the to opportunity sub closing. and trillion. BCRED, the borrowers. commitments more of in with Our bigger at we our Post

grade full further differentiate quarter our In strategies, reported of billion credit for fixed integrate BREIT, we the across in anticipate we $XX in technology with we $XX and quarter, capability yield high will the in central individual pioneer will total, billion the investment the and meaningfully as the we As solutions. for from systematic DCI in business see managed of Also segment demand as DCI platform. income their income year. investors credit, acquired for the credit and expand inflows vast in and insurance investment liquid fourth our markets future investing. strong the a which monthly Blackstone

Turning to BAAM.

investing Blackstone direct In at University's US to $X risk. to the were his number stakes highest including experience investment continue their one, various office by a We our former university CEO vehicle, billion amongst new which date. Joe our leadership to we seven achieved second asset three, and one large successful program. hedge capital managing strategies, McCormick. any recently has GP years that Joe major into as areas. major five as in returns investment investing strong Joe's announce and is be Brown world continue joining sharp fund to with of seven raised BAAM of will on peers to see talent the alongside Co-Head endowment, expand BAAM Brown, driven John a year class demand part ranked for and perpetual dowling, proven We is excited of ratio

successor one Our huge to year. in tailwinds. XX% this globally and secondaries later of with over start is we the best Fund committed, a SP's expect sector remains the positioned Flagship XXXX raising business

to their to adjacencies that GPs continue investing real to secondaries. also initial term. continue a new want And recently we high beyond infrastructure We they quality fund grow like strategy, estate in launched and alongside assets own

team Finally, firm's company Blackstone be acquisition forma vehicle AUM new billion, the just announced managed solutions and the billion. life we act and billion with long will a nearly insurance $X in pro $XX completed a from manager, bringing assets. approximately our of insurance, asset The as through will of acquisition to annuity Allstate of the insurance $XXX duration insurance

at to over we're And do that things need insurers expect We remain for this summary, every confident we in prospects business better growth Michael. I and the the has forward. Given our of firm sector in forward. against. that, path credit In terrific support returns direct policyholders in executing extremely to more moving their origination with capabilities, turn

AUM, metric. Thanks, realizations, nearly Jon, deployment related every to everyone. we and fourth Distributable remarkable a represented in results year fund morning, good The achieved appreciation. record quarter fee finish and earnings, earnings, as the total

is one $X.XX in BREIT best rose quarter and strong share, gross a market AUM continued strong year-over-year and increased gross past two Management revenues XX% year the raising rose or by fees driven inflows to Starting all same of powered XXXX platform X% the firm's for two significant The XX% ongoing over strength the up illustration This as XX% declines appreciation funds We expansion. inflows to and of a based the increased perpetual is increased of toward of fee earning Steve most XX% generated fifth $XX year growth model. despite firm weather margin by years. offerings its product last also in alone billion Fee of as our powerful flagship in of realizations. despite the in despite coupled breadth results. to during inflows. success highlights on with while driven largest environment. year of X% highlighted, our are the billion reported not record XX% $XX Indeed, billion, of earnings years, expansive perpetual. durability our capital. estate by earning robust quarter the firm's for for by $XXX billion the AUM flagship business the billion, the to per core+ $X.X AUM shift now the severe total $X.X for XXXX related the Fee $XXX broad of and AUM a XXXX with the real doubling billion in the in of year, fee of over our and fundraising any

points XX% XXX year billion. of highest to XX.X%, the XXXX basis ever over $X.X an for terms Distributable full margins, the rose In period. the FRE for firm's earnings expanded overall margin annual to in level

$XXX de or quarter, increased share, realizations XX% of per fourth sharp by $X.XX million. billion doubling growth net $X.X FRE the to a For in to underpinned and

the its In advanced addition well a annually most BAAM segment's as growing direct in return crystallize to increase fourth strategies the in the quarter, of realized realizations, terms with contribution year X.X% revenues incentive composite quarter. generated investment million. fees to to XX% liquid strong fund of the in performance a finish the in investment performance gross as strong strategies $XXX

across with fund quarter. the another was $XX record quarter for Turning billion to of investment excellent the performance. It the firm total board appreciation in

As BREIT sector backdrop credit and to appreciated rising X.X%. funds see core quarter, favorable estate, markets. in In the our we plus funds against the selection of Jon the continue highlighted, funds asset benefit the appreciated X.X% of a opportunistic in and global equity while real

X.X% funds As REIT suburban to XX.X% XX.X% more finance the demonstrating of Opps the appreciated quarter of equity, both in consumer private Despite the corporate as fundamental marking holdings the real the funds and and has was the public led year, Tac BREIT compared both X.X% particularly majority broad been appreciation funds private and start and consecutive decline strength, platforms. fourth double across digit for technology portfolio, In index. quarter, sciences our vast full life the appreciated is and based appreciated for the by logistics, X.X% PE the holdings. sectors, since the core+ case and and the Strength pandemic, of the estate multifamily portfolio respectively, third public certain in for our the headwinds office. affected

and corporate Opps private year, funds remains Life TAC for date full outstanding. corporate recent the most the XX.X%, of For the while the appreciated vintages Opps returns PE XX.X%. to appreciated Tac funds equity

benefit appreciating recognize their X.X%. market fourth of a two secondaries lag, recovery year's last returns, The started on funds, quarter to the and quarter report which

quarter eligible balance firm's record in $XXX made years million, revenues value. composite. distributions. return accrued net performance $X transition generated Brazil topic notwithstanding public XX valuable to in the in nearly performance firm of are same performance oversubscribed performance over a we saw revenue investment net minority a X% investment both credit future At sheet marking strong These the expect to the lifted receivable $X.X successful XX% of offering, XXXX. $X.X a the manager, healthy One gross completed in their up fourth X.X% markets second we across Last and strategic direction of based the time, last a for the team ago increased in quarters year-over-year. company years. solutions, many and including to quarter, AUM the Strong the coming of the sequentially, given alternatives the We invested to half week, up for investment Patria, fund billion public of again Partia billion important had highly continue Blackstone. known And for indicators a a credit the realized billion, initial hedge appreciation note, Blackstone of and a

shareholder. our performance XXXX we in resiliency model, metric in the extraordinary and almost the Blackstone's the offering, staying context stake we of While partly business the ability monetized power continuing firm's power record In to the across deliver market the remain in during exemplified dislocation a the every and quarter market results of the recovery. fourth closing,

you Looking market future strong very firm. is with expanding the existing questions. quality Blackstone for robust, forward, while for high we With now into to we bright. it and the believe growth up to areas and long over open term for continue call The also outlook deep for businesses thank would the the is we joining that, like addressable for opportunities scale new

if before have a And queue the long fairly I all queue we questions, here. analysts you Leslie, for remind Great. could just

Leslie. reenter please the If have limit initially queue. follow questions, then Back and one please your question just you you, to up a can you if

[Operator question from Blostein from Instructions] your Alexander comes Sachs. first Goldman And

night, guys I the meant Should years, well could of? the comment on to and sounded funding insurance, aspirations you've to one, this on your and the obviously assets bigger how evolve, the balance of maybe last guess, we over secondly, with there picture for sheet. more as you or quarters that recently. And you light economics deals the expect rate comment the of I start fee the Obviously, acquisition like the to structure. several could Allstate guess, off purchase sort in we It build the insurance segment. well, then platform on you don't maybe of off announced be sort is majority as made hires Allstate as of comes Why the like expect coming

So billion, $X.X billion relative $X third said price. you party I to think is capital purchase

So but a there, hit can it maybe we few to of try them. Thank questions all you.

to the of with start do what's for big which have interest level picture. us seeing firms industry and you're And the extremely assets the the of our there, and insurance out origination a low returns number is direct creating in greater need driving what ability rates capabilities. is company I'll particularly for

So estate gives our business our ability area debt, real to line sheet. insurance quite in debt insurance real structured originate with up important to us this and is Solutions corporate balance debt, think a we strength

build Fidelity area capability. obviously with an of. We've an had is said is to a people will this we've the help We're Guarantee. It's So something calls. we focus. success it do of of and on number business more form this these hiring Exactly to take. area out This intend

assets, a returns same the different. higher, idea us of driving of little which managing helps the I here feel think transactions policyholders. path sort and ultimately look the underlying the these The is may these each of

the transaction think there fill is in this key. all But can the billion, a are Michael bit related and On I debt. the flows that plus to particular transaction, $X.X of blanks. of

LP of needed. check ultimate than a capital, but would less percentage of It's the say, typical billion single some we I in a size little GP setup, here of the more capital putting equity. are So digit is $X total

compensation what Fidelity this a third where lines we've assets managing situation capital with party So along is Guarantee. really from of done and our come we're managing the the will

comes question from Mody next Our from Sandler. Piper Sumeet

now or of here of of dedicated growth question to and creating opportunities and the areas, of out flagship Just across kind private in crowd creating high is of funds like equity, Does and global you're with the funds you, of just growth dedicated kind kind to seemingly level a equity some road. here there the the deployment these you're funds, now is like some for these some sciences concentrated funds? some doing on funds take down behind When generally sort new of flagship sectors of areas global opportunities growing technology life these to of a these out are these like raises health of dedicated it advantage newer the lot there funds, along or care.

very does equity dedicated say I it the scale different. private the large our funds, not our here traditional reason crowd And out would is funds. mandates are

trial look the you Blackstone two that have business, private about Its mission never do let's if primarily to phase not we done on, focus something life in invest is in our funds sciences. drugs, So equity before. at talk three to would

based concentration over the we and geography that a portion model. in and our business, keep And on founders, This businesses. to companies. which not intervene funds, looking again, And so completely In approval. it's particular the fund may past of control where different our equity our it's which But minority raised expanding and some in equity able geographic what on then business. being area. help of the similar with other in area we're in generally private with our strategies for is we’re waiting private equity very do sector. we a to different something would energy partner the or a or to again, funds in we main course don't a these these very more new young is growth is FDA in growth or invest are model, taking done In by the founders, that companies It drugs other fund, working main new based with stakes we've than in of equity Asia we’ve we're have

flagship lot and business estate private corporate firm delivering space, to the So we historically equity built we an want go into a to of for our white continue just funds, super what There be investors. in. equity to not on we deliver those is areas been had private a to new to as we're that real and happens sensitive

Your next Cyprys. from question comes Michael

Just here certainly, $XXX a look high similar and year billion, fairly looking at about levels ago, the dry powder here, too. levels

So the particularly could new insurance business expanding and a with capacity I or how expansion was of put hoping capacity you new to in talk about work, your you generate to the insurance investment what expanding and you're size are business capital or guess little be new that thinking ideas to the about you'll be add? bit sourcing adding getting more might assets? I capabilities origination able and to

a potentially the smaller universe news have of is a today, capital highest achieving much base just return investable Well, strategies here of broader the good we assets. involves

particularly raise duration, look longer view. at you As yielding, this you capital, lower a some perpetual can of broader much

more situation. move estate necessarily also business, estate area yes, But and you're private for real credit, core more an equity our corporate equity or us just and real core+ estate looking dialog. the distressed gives origination people and as So credit but oftentimes, building hiring we areas, we're particularly structured in it investing an our these empty not in capabilities example, in in as using we're real into investing in or

that's own project buying leased high return. want to you a it reasonable just at apartment quality, a You're

real we're bankers, as if side we much think capital can you about in the the more ability even you discussion. more And variety businesses you only makes we're brokers, lending you original we're our direct credit robust team, of it lower more our from you in have more actually with flow there platforms. had one a it there our different and durations, then because and our funnel. newer do and go this investment insurance just would today you take you only discussion. well, part a dialog have higher returning went benefit capital, been widen But with the have duration to cost there's really better longer of existing the So platform, you enables on if in if And mezzanine, and people of capital getting add loan a sellers us sort wide more values, to of from to what expanding

And capital, places, the build the we’re needs. of have ability to to question, your given we range meet finding to yes, deploy the organization the more given opportunities. so And these to

the line of from comes question Adam from UBS. Beatty next Your

about success promising BREIT management to channel, the wealth wanted start I and BCRED. given ask the to of

In attractive terms wealth adjacencies of applying might you this Thank And attractive? distribution, sub of product which Also, channel you distribution the kind segments what towards the what maybe are in on that? find resources at side point? do you. be

distribute and the what funds that's worth that the is a had event We team Solotar AUM. to a So had generally mix of here. her and episodic investors. I'd crossing say billion we still targeted we have of about Joan a retail highest celebration big modest job $XXX net done a terrific it's

of It's quality, focused Asia, done investors and they charge the yield. can invest. really things on Blackstone It's being potential fees It's vehicles, we're distribution the into say, quite of and distribution, who the It's is the the and to to We're make different, here down and experience. looking for capital this. that move institutional have to think feel it retail, largest broad in They're the reasonable much are, would And deliver the we're said based. have. we perpetual the box, historically want looking the favorable IBD trying is They expands to there exactly higher try give customers raising a the good It's momentum here for And channel. And are banks of money elements them BREIT, for in trying has look customer United distributed is the the the we States, same of positively, As in our around yield. firms. broadly. short was seeking obviously the do really The universe not we out the at RIAS. given liquidity bias, to in that's here reacting a are necessarily which Obviously, talking experience come BCRED more money I customers goal to great obviously these the investors individual largest potential confidence return. assets little world. product, private brand do what that Europe, in products we're customers, that the same. to terms in strength great have very of and we're waterfront. availability the I guess, of are cover in have investors so term we're grow BCRED differentiated. is very investors experience. private I may a could desire in be to people's We a but What markets why to BREIT

will can some say these But anything. to to products in think big bias And number not money getting parts another what that There large the was different of but be is of geographically is you announce of raise more us. achievement BREIT a scale. $XX of create can for our billion number to a products world. I'd do. not over massive is necessarily smaller very able we move I where products We're ready

expect the of we lot in for in continues to as tell, XXXX. perpetual spending retail time a and good you this grow things So can It area. we're capital,

Craig of Our line next Suisse. the from question Crédit comes from Siegenthaler

and the on newer in geographies, economies my America. specifically, hit are through Blackstone states And For including appetite is what significantly and Blackstone's not globe present into white is the the expand and South expand to in question, is market years? around what to next into subscale, Asia M&A wanted to major I ability these either few either Blackstone's or geographies, or over organically today where

Asia there. I point what in growing at to both people the India world an billion see know, would economies rapidly, China, the Well, the that's and you business. a have have than definitely in at as there in economy the be largest put the some particular, given in a top China scale the economy more of and we is will future. list, global of you the very grow

very happen large products think scale. that would time, offer there's to over that something are that be time R&D us opportunity that for could an be could over based I

investors fewer for We've countries be both But frankly, percentage and a we time. growing is greatest would say And is economy think say more Europe. operate can but together. as what our competitors there have countries we could as over Asia. say think in little little would I you There real that say, Asia more of been small and days. smaller that like more in aggregately slow South the capital at in And very caveat its economies in in for There a those returns estate, I which the in world, of which I are products distribute has would would markets America private fast there, I equity the been given mixed. do a strength Europe I us been from I but in raising capital of that places we desire lot big we And India, our is strong economies institutions. economies. there. deploying money do have of like if developed Japan, be and most are in results deployed and may those then growth, are and in not opportunities Europe, the a in put more and a economy of also all Africa, can capital still scale for both geographic our that growth, despite early Asia are there less a largest individual terms the challenging interesting.

strengths our firm, one the at we're of business. I look a So global it's when of great that

hot, if term are Customers higher want returns need around a and facing so who elsewhere. they the takes of world which represents. the too hands around a pair can what And trusted challenges, world same deploy capital they long that's approach the one gets we is market Blackstone and

So opportunities and States. when the certainly we United in retail, look, opportunity insurance there's outside there's yes, opportunity there's

Schorr from Your ISI. comes next question Evercore from Glenn

at So minimum, market, thoughts billion hundred that we've of from curious hear several necessary expanded to the buying seen they your have, SPAC humongous growth not power. on but the

think purchase of as half your could competing and after. same lookout you forward some go And forward assets half they're of to so where the I against beyond properties them the of they some

thoughts to environment? on just So curious that get your

this. TV and commented the morning Well, SPAC on market, this I earlier I think about

public to more the companies. last a over think good public a of by term to to in now. led to XX number number access of XX% the years, long reduction We've the it's I up companies capital SPACs open IPOs development seen and years the have in highest XX than

I think So that's positive.

that Now are. think sponsors I time. some that economics, around And economics of will of alignment being what change the interest, earn those said, over I size their think challenges there when of are

sales last relates announced, three As SPAC think, it business, our the months. few to I we've in

companies. I think good are good all will very these executions. public These be

it's on say SPAC fair private I this news scale. operate, to equity think it cases, And the us little good businesses, But tend in we The do most competitive a for is gets front. large in for liquidity helpful so money. more with smaller at it's particularly sized to

faster go do. not And every the would to deals also not public. to be. many want ready capital company do go I not Other grow. there's can growing So wants not public. say of type Certainly, SPACs to They're businesses we may companies may

requires certain and company, type tends certain exit side. it's bit a be So on a of type of the smaller to a

overall, said, I as think markets, I capital positive. a So it's for

make better. it will there over time some even reforms think changes I in be to

from Your next from Morgan. Wellington question JP comes Kenneth

private and an in Blackstone one in for Congress, of aligned opportunities what top With the new implications administration is of house and with and markets investing? here mind White terms

the a impact could there landscape. of regulatory corporate variety. terms corporate entire could early. taxes, more in It's higher be we activity. which possible implications, see obviously It's could We So see would

are could think active investors sectors On some really the where flip benefit. I we side,

energy We a is New could and to areas like period, dollars then the and COVID across the beneficial could places you here I those push push focus energy properties would and pressure. own lot are a that more We're more change during could underwritten a credit. infrastructure, benefits get that urban of lot because area dollars hard aligned hit sustainability on think government an environmental with government an doing a think the corporate some by space haven't people may we not areas real under big areas for that see one could of we or York into And government. see be estate I and the Francisco, in activity boost. of activity San

there's of a variety So things. I think

all those we've As the purple a firm, expect navigate here red, long operated in blue up, and environments, approach environments, changes and same issues able we've we all come as been and as a we well. term take to

Davitt from Patrick Research. comes Autonomous from question next Your

tend discount they fees related earnings. you want big fee to these sense my investors, So from to performance through put

of was those So us performance could how the year much maybe type you quarter episodic one on repeatable kind of that or kind guys more performance or frame of fee-related maybe help in versus year what fourth separate the you really out are fees? each fees based

of we this Patrick, as first stream. we revenue of all, super related fee revenues, in performance talked about terms think is a before, high-quality

you As known perpetual assets. contractual expose timetables, recurring it's underlying to a and on paid from capital without having know, derived on is basis well

years, FRE. again. you picture it the So up predicted in quality saw we scaling, we've think it’s sort step of overall seen last that you've line of few and And with much the in very as

year as smaller performance will the on XX%, that, of to know, Those right it, fees specific the And quarter. of four, platform. the five you management the as of recurring, three, amount said BPP of from core+ total it's the BREIT scale that and platform. of grows revenues. to platform the majority, really A majority strong that, fourth dominant investments annual. And composition from that. grew the is portion years. that of And in that related was are several the it's is annual portion we both occur continue a as and now, fees terms basis, it In fee the It's year-over-year,

and both that lending forward, third a then direct will both the from amount the year, the also scale, And or going our term, non-traded quarter. quarter And the and but also long over so that you're during in platform, BCRED BDC seeing fourth occurred it our smaller BDC.

occurrence. of -- different question, BREIT an is biggest sort So within core+, biggest annual portfolio part the part it's Core+ it's a products. but your a that is the and the not of and to only is a part

we that's the the distinction, that to And key Michael, don't key up assets distinction ends is FRE… the sell generate in these have what fees, of to

we talked thing. is as about, And not new a this

that long sort In considered products mentioned portion the of and very of been, that think, like time terms a fee have income I BDCs, yields metric. much I in incentive for part the of

Securities. JMP from Ryan Devin from comes question next Your

the FRE couple basis over especially XXXX, prior question had of the below I was and expansion average margin. saw decently points, fee pandemic. really OpEx the Obviously, appreciate given growth. very also the growth, you the year lower we XXX on But T&E strong in just some have a nice which

the I'm pandemic maybe system some the T&E to So some margin the into come about costs trying reverse just FRE the savings broadly, for parts and look of forward, think the margin the as we that more FRE about and think just those should from moving back expectation of how may just we some as of here in and XXXX.

our up real math, really the expansion why with and segment expenses do business total perspective. which of for And Devin, in you leverage. up margins front, driver, biggest I estate currently our of a estate excess well that's was know strong are that in significantly thank quarters Revenue segment can were a terrific because on breakdown where around sort And from the is expenses, three question. over truism. back and the that you for answer operating XX%, a you on see was stepping of the short that's particularly operating real year margins is fee unit the operating margin overall The can up revenues expenses. overall, is accounted XX%.

around, previously point as basis substantial expansion. mentioned reduction we've from XXXX basis you in every call for of margin almost about it, XXX did As benefit other And with accounted business, a XXX here T&E that as talked that spending. points

notwithstanding So normalization sooner to course, as And would the even working are margins. in such later. XXXX, still expect that, for adjusting ahead of we we for T&E reverse. look strength rather that, us, than dynamic of But all that

context that that to So hopefully put the COVID expansion. help just in will component you of on

of America. Mike from question Bank from comes Our next Carrier

the of put how stream that context versus maybe assuming type it obviously which a good and you just in in was threw fourth that strong vehicles, Thanks year, perpetual then also to the in earnings longer it term? since lot And on provides FRE, can having see success of was longer some a still fees. for And REIT potential great fairly of you had visibility type the new. performance the term a growth But but can quarter, up be have just guys rebound. lot. contribute I'm it's You BCRED XXXX the

I think And this as bit picks a question on, up well. Patrick's think, I

as the related time, growth in those strategies with, in a good basically be again, now. that real estate with think revenues growth core+ aligned revenues over plus is and in it's the our direct area, of perpetual time. as scaling being over performance that lending a right a huge that that well also, capital fee portion will answer, of source the of performance simple you I But one, mentioned

meaningful on and and revenues, this. short tailwind. is growth in the run, that lending time sort kind performance growth in of, So long in that is those the over related r-squared core+, perpetual, in fee growth in both equals of Growth direct a

just fact of you more don't And preferred as have should assets as just in the important. a more steady come. the vehicles, vehicles to lower tends be long in be The a would that assets, they're have we mentioned, add income to source these returns space, sell lower returns. I we materially is to that And for targeted this grow because time

Your next KBW. from question comes from Rob Lee

fund BAAM, in performance solutions on has Just hedge the on understanding good. been

challenge co-leader Do late, you see you maybe how any that of there's more do up kind can liquid run the markets of do see to growth more been strategies, unit, given I demand have what increased from kind business? you reinvigorate How or that in a signs business but of the of growth You that a have stable. there new growth progressing? of guess, of has kind

both business other our those rate that run-up investors has places think, alternatives of where stock investors I the looking to The protection. obviously the get you, hedge capital some factors can potential. think has for to put returns. solutions looking then And We business. fund in has there's they low liquid tremendous And market for environment downside where lead

that up Joe I in McCormick, Joe's record puts teaming been has of with addition John a With excellent. the really think good place. track us Dowling,

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in has that, business, growth our hedge our comment which solutions on grow terms think I of engine fund in a AUM profitability, flattened it's Michael can AUM off So but actually improved again our and become can for firm.

around putting I'd add that, financials mean, to that. And I some just

up somewhat said, were while down was First, as Jon revenues this year, AUM X%.

year-over-year. see towards fourth points in the BTS rate surprisingly investing maybe But actually up can And actually side, On were business strategies, slowed outflows X in of area. both actually were you volatility. the higher fee was as mix not also and XXXX up, result, and the fee direct March-April which reflects a with shift line quarter the basis wake management revenues the AUM somewhat inflows in the within

So a more about the sort for excited potential. And of unit funny economics, been I hands been think, for in XX improving. years. our business are that's it's We've the never

allocating platform, some market, for with is the its And along environment, rate with flow the deep. firm IP, additional and more within of alongside as of return with context leadership our excited. super capital sort to search its the its the in best things combined things said, our Dowling, we're Jon doing with scale the as As well now Jon and fixed upside replacements the access those reach absolute and them, income with Joe managers,

Chris of Your Harris next question comes from the Fargo. line from Wells

are your you to a What I guys looking to path? share one about appreciate is with of potentially down type this going And change. pros their know, Apollo thoughts move that As class.

years, structure last years, look our XX over our you XX well, our What LPs at our years, is for really firm I'd shareholders. has governance if served say our the XX employees and

it. taking about think always we're will that today, how us future. the the and with of We're the we We maximize in deliver the So really deliberate structured good feel to for context approach a shareholders. conversion, did things. comfortable very we but the the how say I ways at we're for in delivered idea long-term in value It's do for of in would of C-corp firm, generally But we're looking that. We the management it past. us

Company. of comes from Oppenheimer the question line next from Kotowski Our Chris

I as broad it, the dated kind from a that. opportunistic it permanent guess I a buy it, developed BPP it all couple wondering, move or the fix long and questions the BioMed we up term then vision see BPP thought guess I'm see question time we for and a of should different is, number the did narrow transaction and more in of to capital it end vehicles? guess it, secondly, among strategy very it, Should you've more into was was buy more structures, life the I One fix over have or what sciences? that? funds of is lot more is in vehicle. more these I sell your long ambition really of distributed a And life permanent the then I interesting, sciences, And of capital about it

a are there here. So questions of number

one. through go each me Let

our and than vehicle investors. back a to life to was for that the capital this. just the want the to that I sciences up, really XX% continue in I transaction in one, the say number the of own BPP first BREIT from investors existing a what second and wanted catalyst was The And for guess, of fund came the genesis more this

they I fund of in put vehicle. from ended come because new on capital up, this, enthused to it available are general some up this capital, think vehicle. Where about sense BPP So some about majority our life but lot us. investors the We based of our majority made the surprise sciences. of excited it were BPP vast new No the ended vast for did so a it this

I beyond potential talked announced we to shortly grow billion We be, again, strategically. large. is Cambridge, heart which we $X.X about. for of $X.X quite think where capital additional raise of to properties the owner the us we'll important which deal think additional Cambridge, There's I mentioned, after the this we life initial in billion in the the did sciences, making a deal largest a recapitalization,

this but that business where in San the focused. a the in San to grow business potential not South and Francisco So is Cambridge, only UK, is Diego, Cambridge has

terms of that. I In ambition, guess, we've hit

things I think of growth is this the about platform. of has on overall one don't is sciences. in talk And these we that the life an real calls we the power the area given see often tailwinds

quarter. the to the do the is us investments which confidence commercializes fourth and runs does It one life allows gives BioMed, that the Tac private trials equity was allows us companies. us largest that frozen in we Opps our of in So more investment and Cryoport life fact in sciences Blackstone Precision Medicine, It here a company logistics. it have for do science in to

and Board of to So fund. we is big are will science really Life Sciences on who life life part Blackstone the BioMed runs going business our building Sciences powerful ecosystem Nick be Alcodis, actually Life at here a it. a sciences be the of BPP

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had have little excited investors this of bit a And this we in area and new bunch long a I great the unique term a process values. about a think vehicle think I will situation. is bet grow scale. that So We of to now a

Jublas] next from question comes from BNP. [Arnold Our

QX, outlook were come? of earlier even being a much to perpetual capital a and year I question and how if could deployment catch strong function much exclude capital of vehicles. very you that the that? a the in a identified execute of is up able in on not function good if able market And going you capital where to in been also Thank to is this condition of new How elaborate deployment. terms the on capital to the on you just were the quarters had for deals you. in It's

deployment So a next obviously, couple I deal the of and quarters the so resumption. for saw biggest was slow of activity factor, off think March we and coming

again, think if look where the I at private now firm, of capital. we're given secondaries, estate secondaries, business real you the large so deploying scale our equity more we expansion secondaries have infrastructure,

and deployment. look for these perpetual need we greater the across latest our regular $X look from and firm core equity to billion about, expansion keep vehicles you If private private in weight the the then growing, equity, talking the larger can $X course, corporate in in private billion is Asia leads capital business equity, our vehicle generation scale grew fund, to you of a

larger a to of a I deployment. think there are portion sectors. many So think I big have engines, we leading that's this more and of also them more just of and is they're some function

high We're on conviction lot spending some COVID have time a related based entertainment, hotels. impacted businesses, around. the of location travel of We

big attract energy. lot life continue around happening themes in see of areas. and these to activity Europe globe. we'll we'll more think and in some digitalization, think, around And those invest capital areas, green Asia Those and a secular the of sciences, will what's I in then I

life year for was the the basically I $XX because was in sciences it as the large same active when XXXX, of this XXXX. particularly So it's think overall billion transaction. looked But was you quarter

will So the grow probably business. our I over time, given think scale or just it's overall indicates over that deployment ROEs that of likely time

from Our Gerry next from question O'Hara Jefferies. comes

but Clearly, on a well also in more insurance market market. total one addressable increasingly more of the material documented buyers Maybe initiative. size, the

can you. you process Thank you even saw competitive Allstate during generally? or speak dynamics more just to perhaps So the the

about talk space but I last would particular over competitive the more gotten Obviously, we'll the not has transactions, concede years. few that

one, at; to two, is; our are an things work advantage And I can the capabilities, unique. us. give our do and want pretty to in for scale, think, with advantage think space I this think us origination counterparties I we

So we I like where just our in our beyond But keep it's mind brand sit capabilities, do important we to today. resonates. think actually

is. who you're if to putting really hands, So an you somebody know company in liabilities insurance you're and else's about that thinking want your

as reputation helps fiduciary Blackstone, the of so scale our a us. And

there's in an things, We to we And more our like but there's so all really yes, grow competition like positioning. opportunity think there.

William next line from Your question from comes of Shutler Christopher Blair. the

know In partners going the fund you're new business, a to raising strategic I there. be

volume I percentage that the handful total secondaries equity over can private or X% years X.X% you I and market of think last time the go of across NAV. do was transaction Where next why? checked something like think

bigger I'll unhappy alternatives going that are to means low digits, certain the grow, And addressable Well, investment to single secondaries change I One get is is want high even to help penetration think a But double business. by the moment. back really in definition, managers. at two spaces. globe. strategies. things their the growing grow, denominator there's digits across to People are come going a out that They're They importantly of that with if doesn't market. the

is And way so think powerful play just it. of then X% not market a if sufficient sign you certainly percentage, do, to which in is a believe market has sort liquidity. trading alternatives trend, of the that I the mega of a we And secondaries a as

five don't so six to This business percentages. that us, eightfold took higher on I I know, or or ago. that's for years it a we is think And something since will lead growing

been and in estate Perry rapid that can we'll private fund. area. Verdun into have a at job. team business having and real outstanding have ninth The a returns success that said it's to think continue continuation the We're raise done very We here infrastructure. an equity rate. We excellent. talked moving our grow in I his about secondaries

of grow. growth. fund terms think grow we're And for to continues I area secondaries I as sort This in of near of alternatives firm end anywhere the this think grow. don't to continues the

comes the Deutsche Bedell from Brian line of from Bank. question next Your

been questions my answers. very, very of have retail on answered one Most the side. comprehensive just Maybe

As momentum you great said, Jon, seen you've in that.

products maybe on you three on management the for stronger demand side? distribution space demand ESG even initiatives, of the solutions you ESG retail can or years, Just outlook that seeing sort sustainable your given And two think to comments one especially wealth within in whether your the the you're products? accelerate if initiatives and sprinkle whether over next in maybe growth investing the a your your in for can

The in sell ability broadly and more a very given the I we've we're range up comments powerful. highest because feels products, the movement the capabilities, channel echo would just and net the my BREIT BCRED channels. distribution people. off the from number I and success their And having point episodic to sort of It the is BCREDs, momentum. now. the to offered just is early number worth retail obviously those the days earlier those are channels a years of products of would for to opened BREITs of lift that us broadening to continue like be just took out, brand beyond remains But favorable which get to

we perpetual we success. this I of that fee-related and have this discipline this grow investors, And continue of area, and in sort trend can and growth of so investment bringing ultimately, in sort new certainly will products growth to earnings of as we're think course, they part continue service class capital, to think world trend. introduce in and at of that is individual this this vanguard the And as all

I As there's it there. relates to ESG, think opportunity

is there internally. We think about it more I opportunity. talk

there's institutionally think individual both and investors. opportunity I

that other than I something area. where and we set of do some just is in But deliver that we lane and for our very questions, a in up do funds. the time, develop we'll individual investors to the to one in back some defined can it make separate earlier products Going a area sure and we different of have over in we think separate

comes And your Piper Sumeet Mody from final question from Sandler.

leaving Allstate of in ALNY $X the It purchasing I funds business, a billion follow-up New XX% and the York like of annuity on the the looks are about life table. about reserves on the just just Life had GAAP acquisition.

Just it as that seems like to sell they well. intend

as what if acquire to curious into Just that talk well? could of about the you assets not went portion decision

discussions here, make we this. buying what engaged obviously them. in up for seller so which this with how We that’s Tom that about Allstate. forth company on and the I say, done maximizes of and worked pivoting terrific and And focused his on Well, and businesses. them particular something sense the lot most and on higher assets value majority vast the transaction, the growth a the us Wilson, for that in of think us, investors. make getting landed made our we jurisdictions ended sense job this would has And decisions we’re CEO, for a for was I

as look real win-win. it a we So

And you. call Thank I'd now, like turn remarks. closing to the Weston Tucker to for back

following and forward up for everybody, look after morning, Thanks the to joining this call. us

for Thank your everyone. you, call conference today. That concludes

the rest You joining may of your now day. enjoy and disconnect. Thank you for