Blackstone (BX) 27 Jan 222021 Q4 Earnings call transcript

Good day, everyone, and welcome to the Blackstone Fourth Quarter and Year-End 2021 Investor Call hosted by Weston Tucker, Head of Shareholder Relations. My name is Leslie, and I’m the event manager. [Operator Instructions] 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.

Terrific. Leslie. Thanks, and Fourth morning Conference to welcome good Quarter Blackstone’s Call. And

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

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

on on of discussion call, reconciliations now find declared copyrighted the common earnings release per This section reported of of website. for a I’ll cast quarter page results, our to income GAAP and share, X. call dividend $X.XX please is on holders that billion. or to risks solicitation of the over shareholders Steve. results, be in please and a turn paid material February consent. $X.XX that, some For an measures With that to of billion fund. Blackstone not note in net we Blackstone and we $X.X to could be refer sell of affect a this the of purchase the were this duplicated without $X.X audio of Distributable interest also may the constitutes record XX-K. press you’ll of On or of Factors call offer Also Risk any We’ll see non-GAAP the our an an to to offer nothing as

in powerfully to the It to towards results. side was trend we positioning asset retail a XX reflective side, funds; deploy short-term $XXX appreciation exceptional, our alternatives, results Blackstone Capital most was to we increased to $X.X year. year, thank management on $X.X shift morning XX ends it’s for joining XX% of anticipated. and That you other over Good performance most single industry, profoundly or dollars years strategies, estate metric. for other We Blackstone $XXX the XX% In is our to billion Partners a Distributable one change that in world looking our firms a flows approached two are remarkable sea towards the none choice second across call. investment institutional raised equity the offer billions alternatives, for five the Weston. one the up nearly billion. needs clear XXXX. told inflows, absolute XX% and Today, is reported an assets in trillion opportunistic corporate under Today, we of our structure. investor in in for class, real in distributor firm the a level asset but Blackstone. Global including from Investment of the in to quarter growth invest than in rose over of capital every more ago. flows Limited not that virtually has barbell: our private $X.XX year. continue within And world alternative previously on numerous of than you, even quarter funds fourth billion passive history earnings billion and playing on the now this it history. out more by of consequential in underway was you XX% the No in the our which on Thank had based in to low-cost management it, assertion and lifting was accelerating benefiting whether

result of compelling the activity largest network the and flow of world. across menu deepest The effect. products performance in the investment a platform with have We available our powerful is

and store it full, products Blackstone our in and choose well. which will a results likelihood as business percentage our constantly our are launch. we platforms network a gaining of This high customers in shelves repeat new extends to that new huge are Our effect

know it’s our Our with new have that a of effect building and for business extraordinarily reach the we and highest-quality intention product, scale when an positive the launch that can them. LPs

believe the Blackstone clean decade. good has this the markets. in growing investing climate in the together asset in confident in that several Across billion example, the housing the significant office. shorter duration this largest stocks And the stock XX%. thrive well in change firm, in declined from force are which environment, equity The earnings is we and in XX% the concerns $XXX the peak, For business, and portfolio half nearly is S&P the credit we’ve to last year, impact over In its leader period. in to estate resources. this way pressures. positioned of generated real of noted theme been energy sustainable us immune to and areas: to platform energy not has careful in be more inflationary continue only allow for to resources we these stock and an we of years. be as recent billion prospect transition around support not of investor over rates area. interest momentum a the with couldn’t the in important been The one next it are area. and a manager the intends the tremendous in firm to our our reprice move launched again rising ability critically is of a to while exceptionally inflation, XX investment a and the week, logistics, will and have the navigate major down rental portfolio solutions best continue of of I the $XXX see We of our for this providers portfolio are global NASDAQ we design firm to average XX% have years, unprecedented firm’s global correction as raising private of we full the for underway alternative pull transition Leases the alternative average across sciences invest to class, despite Last breadth the the balance the once already ability life in our opportunity a but our through capital. I of

is And our holdings. United three In new cost States, in to seeing it sectors the construction the corporate of these inflation. of the of portfolio well rises private for positioned equity, as grow greatly two with Importantly, existing we’re the rents in now times inflation. value rate inflation, at also benefits our

are growth costs. to are areas secular strong in concentrated more holdings with Our resilient that rising input

XX% in And companies expansion two-thirds year operating year-over-year Our margin XX% in our $XXX nearly growth saw really in stunning, reported business. in quarter. That’s the fourth billion credit the revenues. corporate revenues

benefit. in to I institutional pricing provides of credit continue LPs channel, our to returns move billion we their dry becomes protect expect as can with of firm, debt, capital for which perspective, better the expect vast floating to markets, to The interest As And investments powder are current we when higher our allocations increase. quickly a strong increasing base in better a the corporate and headwind a across fundraising and $XXX invest rates to can helps alternatives. more inflation, be higher return move response – our momentum In capital favorable. rates majority are in rate while the in From capital dry liquid rates environment.

managers, have with cases, the fact, fewer channel, trillion pandemic. In are U.S. of Preqin. XX% the of LPs most of recent $X.X to they concentrating accumulated a In In Blackstone. excess according which in since capital start the savings retail survey by favors the individuals

high uniquely the in very Our despite In And inflation generate overcorrect mind attractiveness channel stronger capital year. many our total, eight past come in years. FRE half here in substantial Blackstone this current we in ago, financial and products trillion in the period. fundamentals. in in of this AUM tripled AUM raised this billion equity and now $X I believe nearly doubled We’ve trillion at than be from results, designed clear personally years in capital our our of the look a you firm protect and powerful these about confidence progression, before. credit the through is and XX to last perpetual including time, real Investor of told accelerating. has advisers out At it should year, that time fundamentals will at our And each often our dramatically Markets are firm’s reaching we $XX the years. cycles have markets, lived We’ve of with When trends, we uncertainty in of way have today’s products. estate the we you of disconnected has three are little predicted. Day we’ve over for We Blackstone annual what over years shared you vision DE that exceptional telling true. a come been $X income. reach

profit higher continued expand public XXX Blackstone companies. has and in of today the our are margins unrivaled times Our an U.S. than three industry. to have the largest median position

are prospects extraordinary. Our

most been continually the brand, through have reinforced recognized We which market has cycles.

future capital. our opportunities capitalize stronger has our product franchise, the firm I’ll deeper integrity, XX has plans, unwavering an momentum us our part a you innovation third will highest Our new excellence With The that Morgan Jon. the one culture to undoubtedly by our challenges, to it characterized and we preserve Stanley well of firm for never have continues repeatedly And including unique will to and to will upon. of business are in XXXX, turn by and win. into closing, in is any in provide present strength it your ambitious remarkable by and never In pride support. very of move that, also best in acknowledged market as us position. the positioned parties Every been who confidence but we our regularly I set our commitment apart, has selected a for Thank over of people. to standards as had industry. to unquestionable companies dedication clients, landscape

a Blackstone good equivalent is meaningful expand months, platform top to was extraordinary we and a and firm, you, retain shareholders. driving We’ve minimal and global earnings have quarter Thank and highlighted of AUM our focus growth. to This in continue on our It tremendous for growth capital With been step-up we XXX% our achieved levels debt, return while net no track earnings, the reaching third-party relying capital, of results to no managing record to sticking need to earnings model have $XXX record these significant the capital in alternatives morning, investors, distributable for as and liabilities, both the and quality perpetual with grow. Steve, the increased FRE three insurance XX with our to by on able quarter everyone. a year. and strategies. brand billion another of

the and foundation investment XXXX. in our outstanding returns remains posted of course, Of business performance, our funds

continue the thematic economy, deployment, the funds. of to were areas drivers of our emphasizing appreciation We largest to benefit approach which in faster-growing again our from

in allowing pursuing business are machine, to we opportunistic primarily XX-year invest. episodic career, innovation firm’s the of is than strong The more where years which they Nowhere our ago, of real and today. sectors I’ve can never in drawdown are where estate that serve led who strength as my fourth funds, fundamentals our XX returns expand returns we the focused the apparent in In Blackstone we returns. real as the powers quarter. estate, us seen consisted

more I’ll BCRED exceptional a $XX three doubled Starting generating potent We NAV institutional-quality retail. demand brand, a added remains coupled quarter. rapidly. in across Blackstone every and was billion four. BPIF, for touch of capital business BREIT, back fourth XX% return growing three equity the of more the in and all income last the all over a this year $XX to drawdown BREIT on billion and contributor combination. net quarter raised terrific While the than the the large with largest with to engines, we’ve products: briefly earnings fund equivalent Investor of a solutions, quarter. to vital of on performance, is us,

perpetual $XX approaching fourth estate, $XXX capital institutional A $XX after investment demand investor is a the few ago, a which private In lot announced the billion don’t our $X for nearly In the billion Moving is funds. significant surpass billion infrastructure, only real of our reopened BPP, milestone we North compound in This but grew BREIT, value. Invenergy, company to and perpetual platform in the largest strategies this in forget weeks billion There $X to we strategy Core+ renewables to XX% years. year strategy, that should in billion. talk and over four year. power raising America. quarter, last we of the long-dated about bringing new evergreen institutional capital

funds. drawdown our to Turning

the firm, now fundraising new moving pace cycle. we’re Given a of deployment into across the flagship strong

Over for have cycle. to the of a billion approximately fundraising XX targeting reflecting the next all the expect major $XXX prior aggregate, complete XX nearly months, drawdown and launched we funds XX% over strategies, substantially firm’s increase in

We global corporate flagships, expect to real start our estate largest this raising quarter. private two equity, and

the today Our estate GP and energy, secondaries, continuation clean raising BAAM Asia, would firm strategies, billion European opportunities, life track launched real strategy, $XX is real third-largest include equity truly of in and growth estate ceding stake estate pipeline the private billion, infrastructure The be SP’s in Europe, credit, private approximately remarkable. credit, Other secondaries tactical reach on is real and fourth the ever raised. vehicle equity, breadth credit, vehicles estate sciences. real energy and which secondaries to equity largest quarter, in $XX QX this

our commitments than to AIG approximately has Everlake engines an in the quarter quarter invest. an were when look and more content of with and basis. has billion what’s some last rental transactions. growth And the largest creation. to billion doubled in find time we additional and favorite additional neighborhoods, expansion our helped our and $XX closing, $XXX logistics secular in area this billion pending expect including for $XX The renewables, on billion billion new of to committed new deployed inflows the also verticals. We future. business. in the year additional many front with avenues these and four not a year. excited closing will Finally, housing, four this In our mistake opportunities of we $XX business turn Together, total at and to the mandates. brand to of $XXX I Michael. believe power over over insurance, underestimate committed AIG it that, capital-light was is about ever, could the the more up of of momentum And and $XXX fourth distinct to the fourth billion, be potential in things with this a opened busiest drive in This us We

morning, good and everyone. Jon, Thanks,

firm’s Over transformation the a three capital been several on we’ve the with highlighting and years, focus of past important base power dynamics. earnings

First, robust sustained earnings. scaling strategies AUM of and that growth fee-related the perpetual would accelerate

value firm’s with on that revenue the expand breadth value growing greater strong and we shareholders. would on funds work. in capital, and firepower, a results at deployed of way performance are a Second, third, a these dynamics potential. grow delivering investment that perfect returns combined would reflection The our firm’s with record And store capital-light focus definitive to of

share. than to only $X.X fourth per a remarkable which sales. billion asset share. rose annually $X.X for these First, crystallize basis more to NAV, increased and Day accelerating performance appreciation a $X.XX doubled in driven infrastructure. BREIT, in fee in Fee-related effectively their and is reached firm’s in capital or management up vehicles. now the strategies of total the up the XX% fee-related performance ever. a drove And ago ways: of and year, quarter, respect to AUM, the more year year In firm’s without number fourth billion revenues billion FRE was than FRE XQ, the $X the growth highest to is XX% by comprise direct crystallizes margins then, Investor AUM significant with position The that Perpetual for credit; to recurring scale XX%, It XX% on platform to and $X for XX% margin fivefold rose robust contributing fee-earning across perpetual $X.X growth for XX fees contribution AUM separate management the level our XX.X% two quarter funds; that revenues XX%, inflows revenues revenues fees a which $XXX the to lending and year-over-year total, and with and year in combination along that BPP in billion. the the in per important compound of is hit and we with target AUM in since FRE, fee-earning billion

$XXX is with BCRED of discussed, the verticals NAV contribution Looking for of strong. of forward across three majority that the capital baseline be a context is outlook alone upcoming XXXX, I fee higher significant periods respective and a described. them, year. forward, the growth Jon that, perpetual investment raised financial benefit setting tripled BREIT compounding that In fundraising the a of entering Alongside and FRE Combined and see billion for to to material expect in with revenue future cycle, the flagship over time. the activated we targeted from

realizations the more record realizations powered growing XXXX revenues value. doubled of $X.X store to and fund to than billion, billion. Net by performance $XX Moving in

quarter, finance specialty Tac retailer, and fourth certain Diamonds sale the including realizations platform, Opps, an consumer upstream were in Exeter; fund multifamily Direct; energy and the For in of billion, platform logistics holdings assets. including several $XX credit; U.S.

We holdings that level is value deployment XXXX threefold more strategies at in has a than meaningful performance $XX period has of realizations. number also for in approximately stakes in billion companies. machine in a $XXX than of turn, the billion our in and despite creating doubling firm’s unprecedented driven expansion billion innovation and $XXX billion to in led dramatic a and public of Blackstone activity firm monetized over The to our aggregate this more This, driving is portfolio XXXX. increase $XXX of the both the to almost performance of from ground potential. of elevation refinanced revenue large, a industry various The a revenue-eligible

deployed. cumulatively there’s firm no of measure in ongoing Importantly, the the performance, the the of grown, creation has diminution we’ve investment as been capital value

infrastructure, rose of BREP than strategies consistent or significantly in inception XX%; level a of year-over-year, returns credit, investment broader corporate realized than by over the This and BAAM’s Core+, private to outstanding the estate funds history. BAAM performance Tac XXXX. XX%; the FRE XX%; On volatility sheet the opportunistic Global $X.X private the Together, secondaries, XX%; market, real the XXX to credit Composite quarter best. XX%; private appreciated billion growth $X.XX X% corporate equity, since reported distributions. the private highest in with XX%. gross The powered performance and for of net the were equity, billion the HFRX drove doubled receivable in billion and notwithstanding year BREP The the in firm’s lifted Tac annual revenues over XXXX and $X.X XX%; with In Opps, best in fourth realizations points or contrary, year, XX%; returns Core+ Index and outperforming some share, our decade balance lower the XX% equity, basis billion since earnings we in Strong of up record secondaries, balance $X.X $X.X net more Opps per our and $X.XX per for growth both distributable share. a in mandate.

value shareholders. delivering on to Finally,

the Our limited have strong respect position us dividends to shareholders through with to our financial a and cylinders. firm capital the These earnings to share largest single we XXXX, and in all closing, fully and year. return billion $X.X totaled allowed use repurchases. truly distribute of a for believe manager firing public year on record by firm by is asset any far the capital In

been stronger and never has of momentum structural multiple enormous engines with Our tailwinds growth.

questions. that, like would thank open up about the we now Blackstone. and future very of call joining are With for to We you I the for optimistic it

first And from America. your Craig [Operator from Bank Siegenthaler of comes everyone. you question Thank Instructions]

You call go Craig. are Please live in ahead. the

billion well this the Thanks. rate Steve, Hope all and doing Good congrats on quarter. $XXX you’re Jon, Michael. morning,

Thanks, Craig.

Craig. Thanks,

is period. so $XX XX-day much of my impressive across can you advantages on mostly talk businesses, how deployment. private you with at so capital number capital and some question But is investing Blackstone’s and can many deploy scale assets a So scale? billion over about an

really important question. It’s a

years talking half deployed I in think Craig, five expansion fourth the look if the platform we strategies is thing, in ago. the was key interesting, quarter, money we keep What’s of didn’t the you the that exist about.

as as So know, And have, it repeatable and you do business; is retail, our simpler those products to what platforms, than BREIT, are we all was maybe two tend which perpetual. infrastructure that scalable, BCRED institutional, opportunistically. and different describe I’d one

Fortunately, private equity-oriented private equity our know, periods significant of amounts particularly those real estate, in us been platforms in time, have for deploy we returns, of equity as areas capital. allow And extraordinary. long the own these – to funds. But in assets you

business through And buy, fix when instance, it, companies, drawdown model. we for portfolio we an a ports different the or business or a sell data existing platform, which it typical it, is apartment than capital so in center deploy buy can

nature deploy what to of the and the of just is capital. breadth here scale capital allowing markets, more private So There’s the seeing. we’re also us the

that’s of be but a couple last allocations, is their to private equity in institutions would scale, geography, Secondaries older a about extraordinary could they’re runs in it management new record led say, deal controlled capital, have stake, quarter, many are about deployment now minority Tac some different our it so – and at seen effect quarter. network of so I And of solution to we committee. pools be this volume we types surprise full-service had who many there. really credit. a to huge Obviously, funds, be could interesting not selling private parts structure, that It the it because talked that’s Opps the needs provider different looking the because we’re Many capital performance it gamut. equity make we’re could equity, be capital. a there across last structured we talked and it and from And our anybody could weeks have then

so more is that, And us again, power. giving

decide a to want may borrow that with counterparties, We something as real somebody many been created for then fact we they It’s an solution. one-stop It’s up on so money. markets. expertise estate in intellectual that’s we’ve whole great sort example. this So we here. have it’s where the actually become Using capital starts to of as engage It’s built combination. the flywheel the and equity,

real We have estate business. debt our

together happening helping something there’s our and we really is here that’s work powerful way scale, the that. at So

markets that regard, So helpful our of optimism And in if it’s high. capital obviously, deploying is dislocate also.

Thank you, Jon.

line your And from next question Blostein you. Alex Thank Sachs. of Goldman from the comes

You’re live go call. in ahead. the Please

good everybody. morning Hi,

seen, I AUM a And billion hoping sensitive was in So, in on target great. particularly how you in in environment. January? retail, the a sustain is obviously, backdrop that strong, remain of could market what momentum do retail as for really distribution Blackstone think over someone guess the this the little LPs well the hear seen last far we’ve your we more your appreciate partners. get you understanding time be XX more it trillion in products in other little months into turbulent institutional the the real reaching I dig $XXX we’ve fundraising as a the year. the so and So more secular flagship some that $X will I of in in But backdrop from but to underpinnings quite current was

to every and customers change. not any we’re retail institutional our now, talk We right day. hearing Well,

return S&P things would least I say two And retail and remember, one the large what’s income. two fact, despite institutional also, interesting exposure fixed clients, to nearly stay put day is, a XX% to customers. our context, to is close important the clients, have your because up I of try years. In every at in trade-off, total to And talk or course, to to in CEO it’s

credit private So well thinking direct about change are positioned them Think business, of is can so about, which many lending. how with our I that?

and leveraged leading the loans CLOs. in player We’re

thinking things. about So those clients are

This for our point lot just the consistently exception. It up fact to was also of year would – built alternatives course, for time. a I and think, that’s no customers, year was appreciation. over I best of loyalty delivered that have XXXX,

markets I XXXX, a had with Obviously, But despite a if very still our remember clients, so impact. our an being say to turmoil, all a can if tend year trade view. off visit lot, back take capital. raising the would And despite to not clients able good have longer-term that you we in

us. think from as so gotten to place, you And a hear I just we’ve

really XX as you to drawdown the this listen vehicles, list funds, the think a of think all You about fundamentally business. different has about perpetual that channels, different all changed

individual raising you that about at sources. retail. I focus now, debt. areas, well all And that’s our today just is on want the And in $XX many the I and market quite in BCRED, capital are look assets. context, floating We’re probably, environment. ones to as a talked to a X% than trillion of of investors, BREIT the those products housing, Steve from assets think X% don’t different when know, allocated XX% those for own rising of environment. particular an targeted BREIT’s for kind logistics is rate ownership assets BCRED BREIT products you higher-growth, higher-inflationary – in rental kind to actually more the and hard rate larger

of So raises the it And benefits rates, as those that. performance from the Fed been course, of products has remarkable.

on continuing momentum, slowdown. quite is outlook you’ll very good And would and so we our yes, lot, we’re today, to see positive where is a But overall, ground it I possible the sit. as off say markets trade given some see

Great, very Jon. helpful. Thanks

Gerry line Thank from comes of you. question And O'Hara the next your from Jefferies.

the call. in Please are You go live ahead.

correct, Specific bit if up the the heard I looks think and fundraising. Great. I good vintage. little be a to pick you billion to I secondaries fund, wanted roughly double, I roughly which think, target, morning. to Thanks on the a $XX prior

So able I such you. and feel dynamics unpack positioned bit hoping just fund large why opportunity? the sized kind a you you that market a the of to appropriately might guess, Thank or be for little of is,

$XX and with it clean of there. are except big, great trillion the West one or technology of on Coast to neighborhoods, which and talk We Alternatives that in often sciences, trillion a neighborhoods equal stocks basically technology they’re of good industry, sounds and $XXX companies about a compare out size they in United life just the associate today are to megatrends people bonds five energy. But the States, Yes. maybe lot is alternatives.

from as know, those accelerating. want liquidity industry, is funds at you It results, same on And double-digit rates early has based for to yet that’s at the time. the so a who our been And exit growing limited. certainly time, like, for pretty long feels

And NAV it’s so X%. of small year. between very every a there’s Today, trades X% and outstanding that percentage

happening class, is you that’s for class existing have growing an asset that’s And and liquidity was and so what’s that creating the already asset tailwind. too large huge small very a

So most, what’s realize the we most investors are deployed we did trying also fund, not to only because secondaries interesting in capital free up our capacity. the

this scale. So, that a see to market to is going as continue we

long We’re recent not to net time, team for responding. to delivered and Perry vintages. XX very higher returns they’ve responded What – surprised investors a outstanding the have Vern most are customers, in the even

like structural market a a the fast. inefficiency it’s of it’s because lot. some to and liquidity, There of be growing So we seems lack

of this Blackstone So has area sits another I think today. potential that to lot relative where of it a is

context. Great, thanks for the

Thank you.

question next Deutsche Brian from Bedell Your from Bank. comes

in live Please are ahead. the call. go You

Great. back Thanks. great comments congrats Maybe that again folks a just quarter a on circling and inflationary year. on earlier. of you in morning made also Good some the

of the profile you maybe on Just persists about estate BREIT given guess how in of as the we about to two context into inflation an positive capacity generated, for about performance potentially any should then as thinking years performance for correlated that go of talk correlation and in the that should the fund as BREIT? think next capacity terms fees the constraints BREIT, return particular, profile maybe want have punchline for there fundraising positively And you if inflation real of I where the we that the one given and well year? that – just of being think inflationary And and performance with it. backdrop to in potential are fees we is, in if in BREIT just of were XXXX

Great.

the Nadeem back to the positioned team. say would our And McCarthy, been Meghji there the our in are his earlier classes market of real of up remarks, rents two group, are estate not rents it And growing, it to who said the rents, Kathleen the many are rate in and The in on in XX% Steve our now cases, three the the are new inflation. times product leadership well. runs times this they’ve course, to than only comments, expect. – fund environment estate growing We business, respond market has quickly I And what inflationary we’re performing extraordinarily one housing BREIT, in as really as below by is chain well would supply hard Ken rents. rental with So yes, said it’s more challenges, place asset well set because those of Caplan, supply U.S. are and for this real logistics.

logistics, in in up like, last classes think double. has probably gone in cost between in to fact, aggregately of it’s asset replacement say – we up close than the we XX% landing cost couple years. some markets more the I’d In

values. to headwinds be we kind rising feel and there owning And extraordinary from So very shareholders in face continuing confident special. for environment kind very BREIT really was about some of But rates produce hard that same will happened deliver I the kind pricing we on we’re overall, that today. the portfolio the of because of say is short-duration, That with assets wouldn’t power going to performance to positive. these in said, being want XXXX

helpful. that’s you. Okay, Thank

Thank you.

the comes Your line from of next Robert KBW. question Lee from

are Please in call. You ahead. go live the

us? morning Rob, you can Good hear

my questions congrats quarter. another good Thanks and Sorry taking for on about that.

of curious, good seems maybe I some or go disclosure the equity is it. Is What proposals kind And services you environment kind U.S.? over at keeps the describe my that since, if private no for of at out I of night, new and look came way is outside kind to there both Just it if investments on? to the kind here recently particularly focused the guess, of anything private financial you guess, there, experience, SEC that with up business anything, regulatory out you’re unpunished time. on

I systemic So, mostly say that and yesterday risk systemic comment they around that announced is change they’re that I’d think, seeking on the reporting risk. technical, on what is

So, I hedge applied to equity, others. a range of industries, private and funds

I solid that for we’ve done that long what customers focus period for of good delivered time, such think on is us, the a job a returns. such for fact we we’ve

obviously You our see financials. that in public

And back environment important at regulatory important. this a even core for disclosures firm. the day joined that XX that transparency we’re detail. will our really business. factor we just that, comply even think that’s us out what course, to levels is the is, is value that of striving. investors second something is been It’s since ago, longer always the and going and important adapt, I years highest Steve and very integrity, very from get whatever more Our this And I firm will, run way the a him, of of we comes thus, And operating we to and

So, and respond scrutiny, we will understand obviously that to we’re it in of way. in right heightened environment an the we

much. so you thank Great,

Stanley. your Cyprys Michael question from Thank Morgan from next comes you. And

are call. in ahead. You go the Please live

Thanks the Hey good question. morning. taking for

and retail, aging rising to maybe They a client what of space you an retail Just taking backdrop? around looking and do improving for from broadly, income to income space unmet provide you wanted what white about relative providing attractiveness at fixed challenges to needs rates to other the for seemed challenge more step more do for time? guess, higher ask And bigger as see customers retail products interest some the Blackstone picture, traditional alleviating the portfolios. to those and rate time client more extent I see back, now. a face retail broadly demographic over solutions just then

Mike. Thanks,

I the to looking their investors income going response relates they’re to duration but not as is yield, fixed ways of it for kind to take from this be environment risk. portfolio maintain think to

But if go move, some continue goes is or capital it government of may have into small. fixed they problem the risk if to so it’s And income, Today, corporate still they they up. stays if high, impairment. rates Maybe get long-term inflation yield.

we think, non-traded for – liquidity And And well trading so think, yield yield-oriented product, for actually with bodes, have I that And the rising we very attractive. becomes our increasingly rates, some our interest a BCRED. of BDC, grows have credit I products. obviously idea where

public Secured We also have a Trust. Blackstone Lending BDC,

both So, on you’re is, kind going that this I and are surprised not be positioned of innovation broadly in place say I these retail, is to this what well in focused think growth. of More would environment.

private wealth also our we’ve drawdown, very year, the under the We this The just at we’ve several of traditional in the a dedicated the is underlying space. that shelf retail advisors meet fees really not returns been end products, created should and be customers. and a customer that about with We people market perpetual by much hundred but started got we’ve these decade, unique with space investor-friendly already XXX best-in-class with people And institutions, talked on the delivered focus needs fact more to place the that that We’ve has think, have Solotar. Steve financial differentiated. these that in to have Joan approach have taken, really I relationships – gotten vehicles shelf financial for that distributors, more on Blackstone made a the a platforms, got than the difference. we’ve

so products And enables brand built, other us confidence company. we’ve great really that a of offer like because consumer the to

And number of so things. a working on we’re

an geographic $XXX the Some just much will looking European And are in a of over BREIT. about talking at different now started. version of Use It’s areas. platforms. it. on nature. we’re time. It’s million. That is example. It’s BPIF as Nobody’s grow It couple at

introductions are be just liquidity yield, element that offer about meet products. often talk I they see customers surprised don’t traditional see drawdown area you responding try an could if to we a that and to ready way. products but offer in of and into say And those, that alternative needs you in can’t client not create other We’re as to this try positive

potential. as So, significant we very having see this area

is Mike, Steve. this

the distributors with up products we’ve is pool three it what they are very four conversations to the oriented had retail of And products. capital. it’s kinds the from some from distributors, up they continually because increase. And to of that you essential this of And along some alternatives. the are And And at massive of good going the we times Fed. that achieving of unusual hopeful under do. increases capital is If to channel look dramatically come protecting increases with the that’s allocated have at perspective but want times, is a

think we’re I them to and so more less it’s And us way to need, thinks you what world look going about forward volatility. about more And the this the particularly and if it’s is your put you’re it’s you where we’re all what sort over the where doing playing safe doing, think with do and where it of money, the you trends. And world. that’s and

been enduring I we’ve this approach different FAs other our plus said, the these selling time was some of performance. of the So, a the learning years institutional-quality of them Blackstone they’ve after about our to kind and two, XX the we Jon that an or over at of here, for University, of from market. bringing retail thing period rewarded is we’ve firm, And And effect in firms the products investment, call think trend. doing it is we where as have new, which with spending products, fact running taken day been types

makes it our them sell So want of to more products.

will And of circle. really new customers. extremely with virtuous meet engaged a these it’s the so And of types product that needs we’re development

So, when a Jon’s got reason really excited he’s to about this, be.

Thanks much. so Great.

Devin from from JMP next line Securities. question Thank the your you. Ryan comes of And

live go ahead. are Please the in You call.

Hi, This Mckenna for thanks. Devin. Brian is

you’ve to into pickup as curious know has over at broader this And just evolved the there portfolio mix given portfolio, recently, looking more how private opportunities in been the time equity in the front. growth deployment has growth So Thanks. I the dislocation I’m markets? allocating But the any capital then of investments. to on public been

Brian, where really been capital. we we’ve thematic, Well, deploy in

support energy and in but hasn’t of sustainability very meaningful mix. well. reasons We’ve corporate area, technology And in it businesses look so that really a served the private way. our been bunch deploying as other you the But areas. in in a green it’s also yes, underway. It’s our supply a terms to a has around story, area equity returns, returns greater been private provide transition and other one in just equity has been the grown seen technology percentage when of that’s We’ve – thematic flagship doing chain great that and housing we’ve of software capital construction investing the at us such

of all Europe We closed forms in in that’s in done markets. there developed have to a what we been large but for And real estate, come on well. a anticipating, visit from company leisure that focused travel. markets recovery course, Visas with also We’ve private thematically travel we’ve transaction a quite done processes equity. this We developing on sizable we’re company And of and as of of COVID. is out people VFS, a called big

into pricing squeeze secular haven’t move We’ve really we power. where our this private bit And we news quite have of environment. even labor been of into can positioning and big margin. tried input good exposure areas a the focus feel different where really as materials, on industrials and so we And businesses good the to with tailwinds portfolio why rising about equity to that’s is we costs,

Thank Jon. you,

Thank you.

question comes from Finian Fargo. O'Shea next Wells Your from

the call. live ahead. in are go Please You

everyone. morning good Hi,

or any again, can far On transaction impact volumes changes activity Are market seeing environment the you talk so about in you this deal the flow? on or market pricing at point?

So, I think a little early. it’s

real market, not. commented certainly earlier, estate I the As

I think of the there equity, in at end surge such private last a just was year.

of that changes, tax people of more anticipation thought in there Some were probably sellers.

the as the the think market do to time healthy, market technology a that think pricing. markets public still in stays bit more economy transaction volume. a may it adjust more I private take the growth we’ll the I decent dramatic had if see reset little areas, there, and to public

our conversations very the good that companies engaged is that’s with think more well. there. from out us materially I the equity well bodes would business say positioned on our for definitely teams ground, news and seeing I off growth stocks has

little point, year there may of bit corporate a of the at pick should as So We would back here bit deal on for be side time. expectation a slowdown up. then some I is see seed my decent little this planning but expect probably readjust, volume. sometimes, would a takes it But people a

you. Thank

your next And Glenn from you. Schorr Evercore Thank ISI. from comes question

go call. Please the in live are You ahead.

assets and rents going a three two could floating it. growth mentioned I BCRED rates on up Maybe is in higher well, follow-up you you – inflation-protected have that so quick just how touched ask of inflation one time just But lot there. you stocks and do on lot times Hello rates. of rates, and because a

that’s all great. So

on higher of the stocks not its and but impact was growth just noticed, as one have I lots reasons you cracked, a all, of discount multiples. think one, where rate

pivoted for growth. partially Blackstone more So towards growth as avenue another investing

impact So on kinds how rates see you? opportunities just of investments if Sorry you the specific of on that the market repetitive. levered ahead you some curious of weigh in what’s all is that and kind versus of of happened

the in value. our rate gross high more growth have impacts or equity business, raising those money tech some margins. cash either that companies on question particularly in tech, services think discount is of Look, these in And to that in we the today keep faster-growing money, to and really companies flow a capital comments. when pressure we businesses. And important that make are private industries. on have are in and have often couple focus over make positive increase tech are it’s that focus Yes. nature facing and make We invest tend companies Even that I’d speculative the where of I on in equity time greatest the

out So trends where the we think, tech that where we fourth at traded that there’s because businesses. even private we’ve as there our underway. investments, I significant though XX%. tech-oriented pullback were quarter, very revenues still And public secular they’ve equity in in these we been would a point markets, up still you more companies when companies not and have tech in up our even performance some of are our focus, in off, that’s surprise look also a XX% of And gains growth really in given in big the are taken bought important. I embedded is

XX%, XX%. John All spending technology continues XX% centers year. because an to we’ve about Digital of XX% X% to They’ve on our awful on data migration accelerate. benefiting made was edtech. to Cloud online. and talk big today talking to you software you education’s who boxes growing Technology, of to yesterday, our is portfolio us estimates home. I more Consumers Stecher, to spending are happening, – towers. is more moving Amazon digital push XX%-plus. When E-commerce Head That number. of this from our and schools, gone companies are X% getting what’s need into course, more infrastructure, big a

services, areas. some say, sense. make pullback. so Yes, got technology in And is these didn’t seen stuff and opportunities doesn’t content certainly to I that we creation, more wouldn’t We now it this stocks secular therefore, these And businesses in. invest to like technology, now We’ve the rational levels could lead invested think really pricing. of to a make there we’re sense But growth more portfolio of in.

in line, in yes, this importantly, bought that, private businesses scale. of add highly we the equity, great quarter that order prices. I’d we to but Michael. – reasonable – And that profitable. with grew the at just these They’re Glenn, them secular top fourth And in they’re just is at XX% tailwinds I’d are particularly

metric and value investments still bought them you at to reasonable you that really flows. cash with all prices And of EBIT underwrote space them normalization things exit and this and hear we for about and rarely multiples multiples since multiples forth. the in of as XX years, We’re – so assume always, investors like long-term we that rates

and in gain result, portfolio markets. – feel notwithstanding in have embedded the as overall, fluctuations we a So we significant

Thank you for Thanks. all of that.

from your Thank Giblat from the line you. question comes of And next BNP. Arnaud

Please You in the go call. live ahead. are

very you. entering launching? I European Could Could what Are mentioned well. be with morning. go? color you channels how getting earlier They hitting products wealth us ask, are – developing wealth managers? How on more on to partnerships to this you’re other the mass some a the BPIF you in $XXX million. seem could You Europe? affluent Good in Yes. far closer Europe? give bit What and doing of Thank you on please, key

an are time, of EU wealth regulations all I synchronized. country And amongst Yes. not there do opportunity well. its the Obviously, I have but generally different for want acknowledge sense They as wealth. distributors, has Europe consolidation you challenging private to more real own in managers. every much area think, are over almost about languages is, it’s us that less

this. meaningful that amount And terrifically to really have continue us think in and legal The where we products and talented ground news where you the will move. on the some Europe, work this, of we you need could is to matter. significant. the so another brand resources significant committing the market is a boots been do got have matters, this need And is first-mover to the leading we I for of people strength distribute effort good advantage to And the really we’ve

distributed our persistent because Euros BREIT by now quickly But bunch. wouldn’t will a it but in with some products have move having a likes BCRED firms, requires we We in product, products, I targeted just it say, expect Europe, as effort difference. are, the country. a of make our to more as of Steve global But to lot country

So on. this is something really we’re focused

And next UBS. Adam from question from Okay. Thank you. Beatty your comes

live go Please the in are call. ahead. You

Good morning. the questions. you Thank for taking

particular, get the It thoughts be some in since years in how and the has to technology your support role grown maybe the of organization Investor how the number the gave past context that. and earlier larger be You et evolved about of the grown firm of at has same Thanks much on doubling in time products, to Day. very to able the evolved AUM, and would few cetera, the great much.

we So that we We that trouble. talking because get way have maintain also talent, spend we best making wonderful process sure imagine is still a We grow never want important make to into have something want we attracting is our as our we investment we to great come, maintain discipline. and as We’ve culture, most here, that’s sure the people maintain to about. to meritocracy, and control. the you a thing got Because might be making sure of experience lot investment a time grow franchise discipline be business. to the a continue centralized investment managers they

initiatives management our hiring. are and then lateral our we senior of way Monday say we people Every bottom-up Obviously, a do stay it’s we there’s morning, to into growth, possible. lead We’ve something we’ve businesses, also committee, have make doing in class We’ve of I on as put training a in of we committee. as been leaders our a the – been of more number really but TV. existing done much And Steve the integrated what we regard? multitude So to integrated, this of we onboarding, to past that. do as a things. to expanding effort focused something rate of, or given on, need would lot new operating doing but our hadn’t highly move hired analyst we been in has BX sure meaningfully,

holiday about You our fun might of have seen us made video it. that

groups And then are New number keeping on this investment but York, the investment are who a connected. similar, these of multiple committees. of investment on focused We this different centralized, committees run different firm people of are still a out including committees call, for folks on

And continuity and so it certain the our we’re we’ve here, in talent. always wonderful we’re process, a news but had discipline time. lot that we’ve how the great people thinking streamline of attracting also about maintain is same over all And had this with ways, to investment

levels That’s control talk number XXX But number. about, applied an really that young people way of incredible for And it’s happy to when when XX,XXX the tremendous maintain, and wasn’t have important back discipline I’m jobs. as these really growth. year the I we So we number. applying last

Great perfect. you and very That’s much. thank

your final Kotowski from Chris Oppenheimer. Thank you. And question comes from

in live Please the are go ahead. You call.

you. million. months of fee part recognize, pretty thank and year-end Or fees was of in it a performance that? and – up better. was billion. there think year. fee-related was the of first a I’m conservatively had I a – it’s And I performance because just like $XXX great jump that BREIT Michael, bit Or ended nine I ended great something accrued the But kind the in probably. accrued as the what the darn Because obviously, morning good. $X.X to in I being fourth the the understand drove And quarter? the then wanted – year? of were good a it you fees too first guess third up was for quarter, a the And quarter end But Yes, question performance

No.

you all, gross obviously, look, well, – have first net. I to think and between of the difference

so quarter, on net is X-K, segment with basis. and what And and the that so that’s in when revenues, line. and compensation receivable fee-related NAPR overall gross when you that you consolidated every cost realized And basis revenues, our against in a see the comp disclose that see obviously on by the becomes we

of also prior the of you would coming quarter. that So a the then quarter. basis in you on the and add the in the inflows quarter appreciation from the seen can net on you course, infrastructure it But to fourth also incentive was base. prior receivable in the see also quarter, fourth in have There in get further that, fee and asset benefit growth an

So there. it’s

number over grows. be will confident time that different time, I think, and over We’re as of the scales cognizant only time a enhanced over even of factors, visibility and that of and predictability this, for sort it

that And And Great. on here? side, that? $XXX thing – is the private that? equity And million, which drove a the Or quarter-by-quarter that once-a-year that Okay. is category be should thing? what’s from towards tracking a our mechanism

Chris. Right,

overall, some the I’d and anniversary this just mentioned, as BREIT NAV years. area, of In say, your and in in question, that – your growth years, the remarks that saw that from that our but infrastructure, now – recurring year to category of then case the from incentive years is of in I fee three the – events, infrastructure as investor five the cases periodic you principally has from three in or And year. fund. typically So of BPP BCRED the along three And inflows part triple I but mentioned infrastructure with years. terms just ingest my of first was the in funds fee incentive three

And strategies billion entering we on two We two as we’ve feel strategies billion. appreciation. to billion year. $XX about $XX between the went X talked So great positioning January and about, portfolios those had the of further between inflows obviously, $X the of this the

base three So ahead. return, good fee have and growing a relative the factors, and the about feel compare really those BREIT tougher notwithstanding combine you to that that outlook terrific we we

Great, thank you.

like hand for to Weston you. back now comments. And Thank I’d closing to

for forward following to us look up after the everyone, you, and call. Thank joining Great.

all Thank call to everyone. today. conference your Weston, concludes you and speakers. And your you, thank you, thank That for

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