Blackstone (BX) 18 Apr 242024 Q1 Earnings call transcript

Good day and welcome to the Blackstone First Quarter 2024 Investor Call. Today's conference is being recorded. [Operator Instructions] At this time, I'd like to turn the conference over to Weston Tucker, Head of Shareholder Relations. Please go ahead.

Thanks, Katy, and good morning and welcome to Blackstone's first quarter conference call.

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

remind duty statements, actual We to any which not update and differ our from are materially. weeks. I'd file call We undertake today's to report in uncertain that expect few these statements. may results do a to XX-Q like you include forward-looking may

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

we a of quarter turn of quickly, XX. With the common results the Steve. income share, for to $X.XX earnings $X.X we I'll billion billion. GAAP record Distributable and as declared net of on we were which per holders reported $X.XX, $X.X So paid that, of to or dividend April call over

that we earnings noted and including by distributable our external quarters. On for the period earnings volatile reported underpinned results earnings global in shared XXXX strong fee-weighted healthy markets, first multiyear $X.X cyclical Weston Blackstone be environment our firm. bottom of following for call. a morning and thank improving XXXX, would joining our highest January you X Good for our view the billion, call, the an quarter for mentioned, of as

$XX seeing in firm. Inflows take indicators time $XX financial billion many momentum revenues, and realizations performance conditions past over results, we and quarters. commitments. were We While forward and at to translate our the $XX quarter including positive strengthening billion to quarter billion are across market quarters the pipeline changing key new X X a invested the first in X in with billion past $XX of

innovation and in annually opportunistic our first credit. In real advantage the business industry across is achieved in BXPE, the deployment. At favorable movements time, in investing performance. for in more We private the in follow in channel with Sales And of same now. We've quarter. of net share our We've strategies, equity bond in and and for products the than capital XX% meaningfully years in first-mover increased in our a established is the well including wealth infrastructure, for AUM the the vehicle, along of as in to platform Opportunities billion. our built markets time credit $X.X net and at launch as With market stated funds percentage of planting in seeds each we're high we over BCRED far. $XXX stock have major X to BXMA. performance ultimately, the continued what X-plus in years. short-term impact as XX% delivered estate our future first appreciation flows steady Blackstone, seeing we by highlighted billion reported with by for inception, We've strategies. Blackstone significant #X XX% Tactical share a than from over more the flows successfully private strength believe vehicles infrastructure on before long-term multi-asset our BREIT's returns fundraising we a our are platform, and wealth channel, quarter, for XX% repeat XX.X% value private class new that investment XX% largest season this but XX% since annually fourth quarter in accelerated We've first perpetual quarter. and corporate leading private overall, returns equity secondaries,

and we Our approach and new transition. The portfolio informed digital data portfolio, shape, is such gather excellent to and infrastructure, we've Partners their neighborhoods, thematic positioned energy and our we in as deployment firm's the from Limited our continue logistics benefit is insights by capital, real-time emphasizing which $X to helps largest global knowledge diversified with believe ideas. trends conviction asset consequently trillion is a advantage early management, around is unique identify of area in us in our our to assets the alternatives over Blackstone firm most build the under and and and industry. our

is of infrastructure, a today, firm's powerful the investment at this example, work. themes of advantage For example one knowledge highest-conviction digital

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capacity BIP billion QTS the than largest Today, BREIT, America. grown sixfold BPP strategies XXXX, less years. center the lease its acquired in data in $XX for company North and is X infrastructure has Our and already in perpetual company

as development of platforms centers ability construction. And We facilities around under a in $XXX and it including potential pipeline. billion in vehicles into world prospective are globally, data opportunity. total, additional there new own to $XX billion is transform business an now well. In future highly the Blackstone is billion $XX building differentiated of a conceptualize area variety center Blackstone other our the

to a development. invest several supporting where secular AI raise private firms of expect one and where are that design, terms private the of cloud North compelling of in financing companies rise in of addressing financed And the firm In we where leading The the as momentum. in we infrastructure; to expansion of we We're other have Asia. sector's We these platforms we world's centers. America. There also energy needs, data business sciences; investing the includes drive in other service established well infrastructure largest leveraging are the include AI-related several our we've forward, tremendous buying build most that infrastructure developer capital. energy globally areas. growing power particularly actively and We renewables recently life sizable transitioned both and transition; areas, in powerful as the megatrends platform, of today platforms; these which we've each with and alternatives credit, now largest

remain will forward economy starting but than XXXX, to complex. Looking The the is in slow a bit. expected market is stronger environment

world's seeing In recently. Geopolitical we important We to which companies. to that policies the input lower decline moderating, growth against going is of all terms of Ukraine, U.S. global across wars is and inflation trend in East real decelerating will In major a our the unpredictability increases population CPI cost polls, as including inflation, turbulence, are and minimal impact costs around backdrop. know economy. Blackstone government believe estate, a data. of this has And shelter slowed to pace the despite wage although half environment. see we readings, of contrary the this recent many we XXXX the adds well year the evolving further the future uncertainty business of positioned injects nearly election with Middle the year,

balance dry of powder and concentrated compelling we industry's Our have nearly opportunities. sectors, portfolio to billion largest the in of is take advantage $XXX

to position $X.X we invest debt patience days itself could dividends allowing Our no the share distribute long-term billion to size shareholders us over and XX minimal the penetrating the over net turn enormous firepower John. capital right. The early time of months to and while stronger are it past a potential. With insurance markets and is not And in I'll in and affording liabilities, flexibility assets repurchases. of that, to with provides when sell to through be the us firm the

morning, Thank you, everyone. and Steve, good

first the are building and quarter in firm's is across momentum with our We underpinned X the This business. pleased the momentum developments. by key performance

First, environment has the strengthened. transaction

restarting. from peak is capital The detail, private with down October from XX-year of demand market tightened our more credit, market starting backdrop both and despite run-up. treasury investors also and third, is recent IPO business in Borrowing And private increased activity has M&A has I'll significantly, areas its environment. The debt spreads have the these We're of transaction seeing each expanding. in the is discuss yield wealth still reaccelerating. the Secondly, the ability become significantly. borrowers supportive. more and

a further committed providing foundation an end. we We deals, credit As but active quarter all-clear This in we're with $XX we've recovery billion to sign We were by has million in and line, and were in view first to real in for be moment. In discuss not a the bottoming, most quarter major before, our which coincided real several insurance estate, waiting increase shared investments values including the for not an area, the subsequent Blackstone. invest. will deployed that transaction the activity. estate commercial $XX stated January to pending in additional straight our I'll

building shortage a Residential. for announcement the a the same roughly Air platform, investment space. today announced which theme number $XX Rental homes almost of January the Tricon U.S. Communities, remained we having week, last this to housing in twice XXXX take-private given our as is Just population. housing privatize high-quality despite billion rental structural follows in of major a in us

announced new we of [ innovative We with of influenza. in closed leading the online platform India, now European we've home, remains in the billion real first an platform in invested also largest marketplace a for India. quarter, support our equity dedicated in life private digital business as business vehicle with visited the which pet the mRNA in for and fund quick-service collaboration are health end. In country. Back X payments million Brew, for vaccines that and along ago, Japan care in our where coffee estate, And space, weeks the economy The estate franchisor. on Moderna quarter strong. raised of ] We're real in a I our acquisition equity, $XXX development growth a to quite science incredibly an Rover private X focused $X.X equity flagship

the we Steve highlighted, As seeds of are future planting realizations.

powerful been believe and is risk fund key in we position also finance, digital fits this milestone opportunity of There now side. In the other we up equity higher open returns have to Alternatives underway. meaningful equity residential XX types the of to in to And expansion can portfolios lower share massive seeing past capital-light, private channel, markets. credit. In on taken our investment-grade-focused moving billion with income model created migration dramatic insurance estate, asset-based a private years in the liquid real development, the by their architecture that little consumer crossed of a portion a second business, there is quarter, credit. increase clients of a real Worth over a public this fixed We're XX% Turning but infrastructure, has lending. and estate in the insurance year-over-year. noting, commercial serve we've deliver to our partners. AUM multitude limited $XXX portfolios

year-over-year, over of largest we credits our to XXX excess continue for liquid quarter, in which insurers, XX% A-rated since credits in approximately nearly X $XX them the and start billion of size. comparably addition first credits. generated and In XX to have now billion placed average spread rated number $XX points up with basis These on XXXX. clients, or grow originated We SMA of relationships the

to and In our also estate credit, directly BXCI a to clients, well on product offerings. we're help credit, recently they bank investors. numerous a LPs KeyBank, in more. These much fund universe origination and and relationships flow home our We've value with are high-quality of most these create these see other pension improvement areas receivables, been hold billion serve to we funds Barclays addition credit partnerships, With and in extremely a for They positioned response arrangements our win-win. better private strong well assets creating nearly the there's term, larger in long real to want as add as their and assets to customers. investments, who plan behalf finance, like we're of investors more card insurance credit, and consumer partners established originate and infrastructure $XXX

platforms insurance and significantly here. credit our grow expect to We from

and volatility reaccelerating in Moving the we In noted investors breadth providing launch wealth to as scale development, BXPE, trends business. market momentum third of the we with large-scale our now the January, Blackstone. key offer our perpetual And X private vehicles, of to access more the of building even receded. individual

delivered positioning longer by billion were channel noted. quarter perpetuals We're strong years. its debut in has in outperformance providing BREIT period as double in markets. BREIT distributors robust our proration. terms more as marked strong center is years, return raising new and reception, for results wealth Steve the encouraging sales, nearly while over seeing for individuals XX% BCRED repurchase $X while very to time, power expand with with QX, that exposure. Repurchase has the real index includes underpinned illustrating in billion. semi-liquid quarter, X their with perpetual QX affinity Subscriptions estate this quarter, now of continuing requests brand since in of has no lowest XX% performance. have coming designed increased public its worked vehicle previously the in the or structure requests the the protecting years. investor and a have Our received of the the Blackstone challenging led and in from in the months. Over growth same $X.X inception billion to first billion BXPE from including from a At continued for decline the have in peak of signs advisers sales the the raising navigated in BREIT $X.X of X outstanding BCRED, well. that X April fallen This BREIT products so in strategies, over the as plan liquidity level REIT to we transacted done and fundraising portfolio are data by for the Its $X.X way, the has nearly in X-year XX% the channel. BXPE successfully best

ahead. very and BREIT in given We runway firm private by of that, believe the over performance. When low, things the Blackstone. With flows we over In long well I'll Chae. turn cyclical future a positioned, wealth of we bright exceptionally is closing, remain and at time extremely secular allocations trillion expect are overall, supported growth confident is landscape the the why That's both tailwinds. Michael to looking recovery $XX for

quarter fees review by revenues, Notably, to delivered management and the discuss and growth results Blackstone for logistics business, from the multiple generated in I'll history, and lending good million credit then including Jon, expansive the strategies FRE Thanks, quarter, a stock the a firm's quarter, discuss forward the attractive FRE in these number which respect were quarter consistent powered in by remain we third and first We margins, billion. FRE. firm's in respect everyone. and the supported markets high-quality base forward, at FRE revenues improving public other the position. With at in real did stable XXXX. the lag representing to the highest with and and year underlying margin the the and the margin breadth increased $X QX of XX% Blackstone. Fee-related setup million. of first estate, tenth first a is revenues first European our meantime, earnings private net certain common financial direct of muted And year-over-year fee-related fees growth $XXX going performance reacceleration earnings. the baseline stake share, XXXX reflected $XXX outlook. Starting of management and billion. $X.X to steadily London investment lifted and of in the by beyond, consecutive of was strong morning, over quarter, performance further results Net the year-over-year of year-over-year with of of growth doubled highlighted $X.XX quarter sales capital results. a cell of The perpetual and Stock growing level underpinned XX.X% best a per to the QX $X.XX in contribution billion in a in realizations. In between execute earnings holdings. and a with record to Distributable $X.X coupled the with or XXth earnings in in step-up Fee-related scheduled consecutive per BREIT. in X vehicles crystallization year-over-year realizations including quarters one robust BPP largest expect favorable our revenues, quarter full tower strategy, a has billion sales fee line or strong in $X.X firm in share, I'll Group double-digit moment. With platforms, in the Exchange public generation firm's will by

a in multiple sale for exemplify asset vehicles, and our appreciation. capital These ever dispositions building perpetual reminder, estate within California, as representing the not a approximately quality of in but of We of real Milan warehouses also announced embedded included firm's investment in in on several performance in a retail do billion, significant sales aggregate, real individually estate in prime office which earn asset or EUR Southern single-asset largest invested the on infrastructure portfolio revenues generated portfolio. a Xx. value closed NAV profit trophy dispositions individual Seoul. Each based substantial sales Italy, and X.X the these and a gross of and These

performance. investment to Turning

driver appreciation the and The Our in the quarter, energy with with transportation and funds Steve appreciation of overall digital, broad generated the gains vehicle continued in the center increasing infrastructure. QTS $XX BREIT XX% in robust and LTM generated overall in QX. The returns and the period. X.X% for powering to BPP year-over-year with quarter the since has corporate XX% XX% growth and appreciated net platform BIP, months business annually first noted. across X.X% healthy firm AUM funds way PE led was comingled U.S. The for XX as appreciation data the last over XX% quarter for single Infrastructure largest BIP inception, the billion.

our strength. strong in context another fundamentals growth tightening gross a with decelerating, generally the credit is marks healthy, return XX% credits credit, In last in and less operating private outstanding XX period. overall XX basis business X.X% in LTM and reported credit the private nearly QX. and we X,XXX Our strategies than The months rate across along X the defaults of revenue debt reported noninvestment-grade margin companies of for with albeit spreads new for quarter our the with default over points

composite quarterly X.X% and investing the the return double in absolute return for reported years X returns. result markets. the and the multi-asset a remarkable months, in for nearly composite over BXMA, best XXth quarter XXXX, of XX% delivered last portfolio return platform, positive of of performance the in XX Our liquid fees, start net XX-XX of Since a of has a row the the gross the

Finally, appreciated in on Core+ These real while the stronger points equating impact basis related quarter, our and the XX returns of X.X% impact holdings estate, in funds dollar X.X%. first negative BREP include the opportunistic strategy, the for funds U.S. currency translation XX the each to to non-U.S. appreciated respectively.

our revenue-eligible of The a billion. across noted, revenue to to we lifted returns share. and strong real or increased powers foundation and are resiliency areas. Overall, in record innovation performance per way years and store cash investment Jon portfolio future most $X.X over cycles recovery billion As growth. $XXX in accrued Blackstone Meanwhile, estate value the net $X on the affirmed under sequentially sheet AUM or flows balance a many ground the see provides the in the and performance growing stable machine strength firm's commercial in performance of

several of multiyear growth. where Moving picture favorable drivers outlook, support embedded a to the

We effective flagship private plan quarter, and approximately drawdown has to billion has new with vintages yet date, on that yet $XX activated or fee other X-month equity periods when raised turned by the to management earning funds. are strategy. followed fund deployed, holiday. is billion an capital over commence that investment which $XX depending on First, the along haven't corporate fees certain this firm our raised These activate is not

We respective by activate funds other the the fee balance expect over holidays. of to several drawdown year, followed

our of platform comprising has AUM. continued perpetual XX% Second, fee-earning expand, strategies to firm's now the

as generate vehicles, fee-related a BXPE wealth including and performance As this starting BREIT year. revenues will quarterly private BCRED, in reminder, of QX perpetual

for in real with of BPP and a QX with generate estate BIP BIP strategies, respect on years schedules and to institutional sizable revenues year X vehicle infrastructure, crystallization of scheduled the accrued occur multiyear comingled this to these gains. and Our

insurance a Third, expect billion is firm Jon of trajectory, position business and our highlighted, credit X inflows from billion has moved investment-grade-focused a $XX $XX as forward we significant major our again the clients below. In year on strength. this to closing, strong in positive

key accelerating this our and from momentum growth power build. underlying in Our channels, continues period to earnings emerging of is hibernation

that, we joining We open the questions. have for outlook the thank for to I it call. firm. With great in up confidence for you now like would the

We'll go with Michael to Instructions] Stanley. Cyprys first Morgan [Operator

that a there. in infrastructure. The on returns, platform to seems tremendous the platform initiatives I AUM, build, accelerate Wanted opportunity growth. could Maybe strong continues It $XX dig the here build-out, you net. like heard to help XX% market billion there's can out

gating Just and you're you the on of steps the size. the of taking well the as funnel expanding Maybe business vehicles sets and across multiples as curious return origination for raising spectrum as what this about seeing your see talk globally. capital infrastructure customer item the some and around expanding

area Thank an a potential Mike. of Infrastructure for is lot clearly you, us. with

digital for out the capital the infrastructure. We in other and recent reasons; out, the coming important of has it in big value space. matches infrastructure, and think inception our the open-ended delivered transportation performance in long-duration obviously, key energy is team COVID; years Michael that less in firm which already long-term many energy model areas: than pointed of an biggest area which a whole other players net is in positioned it the at and in have the us a across most returns been vehicle, both allows Sean old holders, of do -- the since this because customers. driver $XX X a estate As different quarter. program infrastructure the very business point, everything XX% and partner powerful for a is and today Klimczak reminder, is we than transition, the to with and of building infrastructure, and We this to delivering billion. The we're like very host at duration then X real of

think we done So capital. a deploying really exceptional we've job the

a lot are quite clients We pleased. who have of

the think opportunities and I there think are base grow, business to this. expand geographically I can

mix, Our in it's primarily have I number Europe. that And both infrastructure over And time. area in the real infrastructure credit, for we as strength. I to well. we're but for and something as relationships. is large think when And infrastructure in insurance done digital an about energy, debt things doing what current fund there's have interestingly, would think we're Europe the like of and insights infrastructure, you Asia U.S., we've green what clients, in focused on a things doing we opportunities add our helpful given investment-grade and it's well very

enthusiasm. an So a seeing is investors showing where of still area this lot we're

continue think I what growth we it back of the on will a area be built. to

And we've other be, talked calls, growing a can about we think triple-digit I see create I this think, we in business. as previous to products. AUM

And I said. you've Jon, I'd just already think add on,

of sort across back, institutional. channels, I or multi-decade the growth risk/return to estate, it overall down analogize equity whether different serving you real geographic/regional infrastructure, and spectrum that between of relapse insurance another respect path and that could retail you expansion, is expansion up also of Mike, step think and debt the and with area classes if it's asset customer business that's

dimension So that's another way it. to

of We'll America. with go Bank next Siegenthaler Craig to

estate. real is My question on

are but morning, hit that and rate picking work-from-home and deployments with heard it Blackstone view interest and sounds privates the Tricon is both Apartment like Income now the the baked your -- earlier with house take this John, So into rates. cap up comments I

this, also comment a now that powder where all can BREP, are its XQ perspective be at in is cycle, BREIT? on the BREIT in given wanted on above returns your position So better FRPR? putting we back dry and BREP, it And you BPP for I investing

Craig. Sure,

noted, in about we the you work in and remote where the U.S., As big very office older little talked sector, we've in have exposure, there. been specifically the of impact capital and X One buildings. needs office there also have headwinds

rates through its gives in of financial last period really believe, as that in the us challenging to saw environment crisis, -- in 'XX, financed points amount, way into the a if is upward here forward in fair of they had and in spreads that real of in spreads that's interest be different I second headlines work and quarter the estate year. seen fourth where has for been then The way capital that as a rise is We've we of capital. happened of quarter this comes reduction probably ashore. happened. values but as still lot of people a course, almost headlines one movement through still XXX this and of the years. We the bottomed look both obviously of it's estate of end tighten confidence that that through cost basis X in course, deploying October. system. were real after a just negative plenty in And next time, the CMBS the it ship first were summer And where the in peaked cautious. spent sort there'll the you dislocated assets We market. Interestingly, from has at And worked those, sea something that back their What

XXXX. fivefold CMBS issuance first We go also saw up quarter versus the of

-- the the will and So fact here point that at rates important that's well. that Fed as be some down, bringing and

decline thing multifamily -- is decline front. peak supply starts other an XX% well. from new XX% in seen a in We've in starts. on add peak starts seen We've as I'd logistics the The in

groundwork. lay starts so And the to that

of at over of about I EUR realization the be public this way a we've a have you be as of billion there time, the period first, terms to may to that time [ We normalize, to it's $XX things planting Europe. of in X.X that there's then large time a certainly period you as on because think There And be very raised seed uncertainty. may global for similar discounts. post-GFC realization. But then it. of is terms would want In you we investing start deployment period. to start the That's think timing, into period fund. sellers, billion ] in ] lot dislocation [ obviously companies this over move out accelerate said capital, I playing the trading we're And

our have Asia still We fund uninvested. $X-plus most billion of

a capital opportunistic to lot So of deploy.

So relates lot the there's we're be though forward system. leaning still from assets period going as to to the working previous of a recognize even it their way we through deployment,

next We'll with to Alex go Sachs. Blostein Goldman

taking around terms the couple size last momentum gate, pace this is the both the What's that strategy billion BXPE. of at in of base. appropriate well of comfortable thinking and of in want I vision very how which guys the you a think, of you billion, BXPE? out at and highlighted as I don't very much the inflows? And But obviously, product, My opportunity and for for months. maybe of with question capacity the Really $X.X peaking customer quarter draw north the different parallel BREIT, you that product too one, $XX obviously, as thinking different to strong this size over are feel about

question, think it's Alex. I a Well, great

of we deployed of did and to One be scale we that could platform things as investors behalf could we broad of the make designed where we was as BXPE so it. terms we flexible on when in possible product the the

more It's very deploy part of it; secondaries, sciences us hybrid enables growth, private Asia is a some a lot. it; of life So control Europe, to part U.S., and infrastructure, Opportunities, platform, Tactical part opportunistic broad is of of it; equity equity, it large-scale part credit. it;

can secondaries, great One our particularly space of transactions see Blackstone business, the we of just of ourselves. our flow other all partners and the folks. deal lot across credit through countries these amount we our different to stakes is Obviously, a equity those our manufacture in And private we scale our be areas. business, can connectivity of GP many with the advantages

here So we think large. the potential scale quite is

to BREIT of customers. assets this pointed grow is $XX You we're BCRED. billion of out scale, $XX underlying we over The lot. strong can the a have equity, deliver billion nearly We to performance key in think

and disciplined thoughtful. be in to capital how have We we deploy

that. been I think we've doing

a different little structure, is attractive. investors a confidence, I think is of that's lot and what equity. of that, investors BXPE think we'll want a want continue to gives and I exposure private why so that's us which Individual to do bit

as Again, where got a caution pretty negativity, over think market to strong a platform. the sentiment X as think a out other confidence, of there's lot our job show improves, capital, we we've of do good this I potential products, the period as deploying we investor the but performance I've of last come size. the here, been breadth given from years, there's individual So good got particularly lot I of a and

it think can today. be much So grow the answer short is I larger to this than is

with Fannon Dan We'll go next Jefferies. to

the on this Michael, last message year stability. margins was quarter,

The first year. was last flat with quarter

margins in As how about year? you you think momentum prospects thinking the the growth that and think business the growth you are and as in AUM, the about you of highlighted the for rest about

my I is Dan. message think that Thanks, consistent. Yes,

the of quite First you full year of both all, in the with first XXXX. a consistent, quite line year first terms noted the as stable, actual and quarter, in in ago result, quite quarter the

at basis, the our encourage not think on our it's this a a again structure. do a look to there's leverage built -- as to that people -- would about scale term, model. longer-term a with time. over position we will long as We our a think operating -- long a obviously actively people then, think margin stability robust leverage over there basis. is guide time, we we basis, again, think message I on that full and cost always, consistent into individual we manage as of And but think, And reinforce sort on quarters margin year I guidepost. And

stability to optimistic the long about back over the would increase term, margin started, the So to feel ability message and I where reinforce as that. we

Evercore Schorr next with go Glenn ISI. to We'll

commentary on a a little back question bit peel you bank partnerships. on on this got to I

something like So sense watch give like do we makes when where that and tangible. clients, transaction, credit it's us. a Barclays a you cash your That's insurance to to you've book taken card

is the forward. you And how you going envision ago. you what industry, of us talk we thoughts to risk the gives It partnerships going years that's something us trends. on how read a about Curious curious, follow. us little much much about XX of So of shivers. on that's about reminds harder for more I'm your SRT synthetic just It transfer type do? can rising obviously in And maybe

SRTs Glenn. an active. Thanks, area we're are very

of in working I terms think partners. leader with the bank today market we're our

positions. taking doing are you're for these variety them, or loss For creditworthy are a as capital-relief know, who sharing institutions. been banks in you with We've where of this transactions, highly

the have strength is of also and the corporate asset advantages we One ownership we have across real credit. and estate

these as years. has firms last lines probably to subscription go had we through been area subscription date, know, no them do bank the XX, which, can with to lines virtually have active we over you The private XX equity defaults if in partners, So most detail.

The of number So opposed work underlying these loss returns funds. I of noninvestment through at but ability just Blackstone our and at is We advantage taking. by do bank. course, years. And vehicles much our we've ratios. in investment the various it's of scale in which were look ability to the we the have we're this, grade, our credits and just as doing or behalf this, to to we we the credit And had this call of much a competitive as to been like around -- historically lower way, been portfolios look our able macro go with and make investors revolvers, on not and for area. When do a that grade think

the pressures So to It I some able returns. and generate win-win. have, see a they sheet as helps favorable banks this with of pressure, balance Basel we're

for good very a thing is this overall. think system I So the

I think a it quite we're responsible in way. doing

very transactions. experienced they is team in how Our these execute

with Love Piper Crispin to next Sandler. go We'll

ago. weeks, in very which X a months recent is there's we're outlook in as been than different scenario, So a higher-for-longer just likely definitely the in shift rate

for work the activity forward So little just areas can just that shift your you investment going to how deploying dry might and and about capital? how you're talk might putting bit a it excited outlook power then most impact where

do investment dry bit the our a for it $XXX window billion powder. extends Well, of think I

often rate debt in can capital. that big both it's our can getting markets. for I helpful and anticipating it deployed closer it but rallies think financings, saw And In as ways, were prices make to some fact negative, that or people buying cuts, for get perspective, later not assets days of XXX happen really periods time, the cut at if is may rate because we're more a pricing. into drive and favorable to equity assets up. From days a you so also a little bit for XX anything, us long-term allows some longer

deployment about But our I positive. bit extends and to when way push it as for is some see about we value think them delivering we the of a well. it for businesses think a really mostly it would summer the that rate, realizations think our slow important it's customers. I customers, period. It Obviously, to may out So the out the of is floating unlike like moved credit business, returns out, note seen spreads October and that when we haven't end enhances accompanying underlying rates it do and which for gapped change. as our

So markets healthier seem it in But we window as for much we're I probably to investment do prolongs the be sign. the a wait saying, to going spot. all-clear And here. think keep not

committed. quarter And that's we the terms of saw billion of quarter in have a of and You big then $XX as deployment in beyond another think $XX quarter. the end, I billion We end-plus had ramp-up. commitments

in Real some there. of we're you're In growth We accelerated did our estate, us looking secondaries time. talked days deal pipeline first our in ago. it quite Xx move. about we've is deals XX at where So obviously, business, about, the seeing was

I It we find more a capital at a be attractive. for But chance won't in think seeing pickup do it to of prices we're creates us activity. So deploy everywhere.

We'll Bedell Bank. with go Brian next Deutsche to

add to specific on estate just real question pace to of on X that areas, that deployment and credit. Maybe in

powder, Are the extension and made, billion but little but period Jon, could of the that that so different level to to massive the excited the that levels potential dynamic private just of $XX I then can estate, high to in -- that of on, real billions deployment of say, Just estate? And in depress going with mid- guess, extending less in you about think prices you $XX prior that dry for up you XXXX more do of record get the real in mid- of more just back about does you in similar like period, to fundraising, sort year ranges? bring powder there. dry could up -- same high secondarily high comment And question make to sort -- types opportunities for a back especially given levels sort deployment? credit, with

do go to tend the we much when things, public talk in markets it's think market. the rates -- to see put what the Brian, directionally. market hard I on numbers up, I'll so private about than more it tends move

more I hangs the off, if estate, opportunity that creates real in for stocks debt of as move deployment some So scalable think particularly market there. do for those

the that the negative pickup create And of think we'll distress. down U.S., ground come so can And are than sectors. in Europe, more we're actually pretty on quickly good see I relating there, real fundamentals seen well, some in Europe as to very chosen helpful. disconnect rates a that though which And opportunity. We've the seeing in sentiment, in is estate even our there's overall

to in estate asset-backed area. momentum, now. should investment-grade for enormous. we've where of asset-based we're of but energy real -- infrastructure needs tied around credit, That's particularly need active electrification for answer, and very got yes, to huge digital reshoring, there's infrastructure, short The lot capital. vehicles, help deployment. On be digital private for significant, going a right the and it power capital The need also most a So and probably

interest on regardless and pipeline see So a we accelerated. deal side, credit spread think that regardless, almost point, lending on noninvestment-grade the we'll I coming that size But at tightening. see see and both down activity. direct our helpful think investment-grade we've seen of has pickup. And the do be environment. I will some Rates the rate to

this home to taking indicator, a deployment. And briefcase scientific how So say very weekend, it's feel over use I good I'm we my up. trending and and happens. hard been they've memos investment the But how exactly about many definitely momentum

be it It's certainly, bodes how But to active a think this like, year well. feels exactly that I predict So for manifests it more hard deployment. last will year than itself.

We'll go next Worthington with JPMorgan. Ken to

to a year? is for I down big build of collection Looking here to is crystallizations below But know returns What and rate and million. into performance into which BPP BPP, I on what this IRRs there. think Biometal think investments, the are net X%, down are front-end hurdle $XX to assume, needs fees accrued quarter's anticipated I happen next to performance recover I way. crystallization. like accrued for revenue,

come capital to with moved It's it different of back you after performance, vehicles Ken, you When 'XXs as cyclical business, opportunities these we've after pointed obviously going been comes some look recovery. different vehicles. you if correctly. up. capital out some has It real the hurdle certainly us quite talking is to the crystallization lower And towards are -- over down, stick time, it's different And to building a early rates a are when time. about, us, estate as GFC. The ultimately, events And that supply, higher right? downturn, The lower fortunately and a cost get other long-duration of feels which stop this with levels, new bunch at levels. you the great thing you So is we'll for the get of these ebb. some XXXX

positioned really some good good we're sectors, say that really would geographies. I we the in so fact And think

We have Europe what particular. unrealized we in sentiment of the overall, in in we'll sector some it's quality logistics, some centers really happen big of regular on high performance in when quality data investment our well. I got say, the happens, vehicles of And that as improving. to of basis. get combination and We've exposure here a fees that own a the these would

and me, funds the off potential. $X.XX realizations earn what are, even their it's goes time. a earnings hibernation, long-term opportunistic that to It equity a are funds, of in below portion of still think to in our fees So large able potential larger the of though incentive well our private issue we matter we're fact to

area into to put an function firm, confident one there's we're sort of that estate a hard But to recovers, to pretty think embedded upside time and I pace recovery. foundation date commercial going real because out It's a place. come the to over in you of BPP. the exact lot be of is of this starting pointed of that and it's

go to We'll next Ben Budish Barclays. with

earlier I I on, Dan's think, wanted follow question up margins. on the to

maybe Just for a kind of items Michael. of couple housekeeping

comp like over looks a been like it bit -- performance of sort so been volatile trending to quarter range expected, it's the expect. or XX% fee-related it bit has sort in than looks it the little like versus we the we lower a was On of last that and ratio, year tend

then sort color of on in quarter. the the stock-based there? up any lines, the And same So comp bit little stepped a

the throughout we be Just about of trending should rest how year. curious that thinking the

Sure, Ben.

I important think revenues, fee-related fee point to think variability on basis. about performance it's I the out, sort we business-by-business a But matter, margins is think on on of and over time. the comp as there holistically revenues a practical

-- over And that so ability, I think, and gives the us time. think, thoughtfully that, I to manage

things you with term, margins, margin run will variability see where near But the based fact on line that the in manage overall. back, that quarter see seasonality firm I for there the you'll and over shareholders. On comp, firm in aligned are of the some step the equity-based BREP move holistically, you long benefit for So around around I is think item. the the we first think, when that

year was which and last XXXX puts turn, of in XX% overall and growth QX QX XX%. QX, grew But the about of growth overall. as say, rate, XXXX the affected in back it kind are and trajectory of of lower step half at that as about than other year-over-year. sort between, the rate movements of by sort well That's was growth takes. That, And you look if

move so sort grant we of do seeing you given expect this positive. that's stable lower and time over levels, are we think And --

to Wolfe Research. next Chubak Steve go with We'll

credit tightening, hear standards deployment the levels of credit the or positive or and how growing despite that any seeing So could evidence the credit credit know platform. [Technical of of pace of competition you're high deals, underwriting given tangible dry powder. lax to But that spreads dampen you encouraging across credit if for deployment Difficulty] more was Curious reopening it potentially signs public syndicated on the the commentary are increased private markets.

reconnect our we as standby Please speakers.

now course, given fact interest And direct the base have part on driven that the is rates, much by costs you our there's so average high first only loan-to-value obviously, XX%. of And at very high of multiples. the Today, quarter bear. coverage lending, that, was to can in the debt

reckless further. Spreads what probably over, in we've tightened on any standards. Interestingly, in we're in by So still lending markets seen loan-to-value. of but seeing not terms historic pretty direct have [ down, levels come liquid ] definitely have are of terms way XXX today far good

at look investment or yield, you more much there. we've high seen if grade movement So

return as a the risk still is money we where lending see So for quite favorable. this sector

plus XXX put that. you're earning fees, that's basis XX.X% today, a unleveraged than rate an leverage earning you over if If you're base a upfront on X.X little better

So compelling. still to us the feels risk-return

the Some not sponsors the structure. for equity, common risk capital

there's And discipline So the and not us that a pretty have in good signs lot overall, we of market, of confidence. seen gives excess.

about from Jon, structure I'll cash sponsors. point one, capital with sponsored on high-quality transactions a Two up to put new that. invested, being point new equity Jon's is put just what with deal these XX% chime a on to things, that XX% debt this in fine mostly the loan-to-values, on is that obviously means because junior equity of are being

would differentiation, some outperformance were the the in private the ago, and there credit depending with about like there couple the the I for concern is There another us. that business player. on are think borrower rates, think rates -- mentioned in that -- less here. And So in of because sort quarter. we too we the as our There what of selection I is folks points is years dimension default basis individual on is than remarks, my a risk-reward first demonstrating XX happen then for marketplace default

default operating And the so normalizing. we're is market at think, I overall a of which fraction, rate,

-- that's and while we deploying I being So feel leader think credit. in really private capital in a

next with UBS. to Hawken go Brennan We'll

housekeeping actually off peak base real demand little the But the to Could that to into of on in more estate real touch that bottoming? market? the to drives Just and as X you April we rate cap forward-looking. in one need the much much, have comments impact in order first what move on more hedge quarter and forward-looking as date? the one on draw BREIT to by side, rates the the the then much given in on not up back base in long the Wouldn't confidence moved started a have estate, rates as sort or share of supply appreciate And are and rates as up but rates rates to real close up estate.

data the of the in on point about question X out X.X% net BREIT. terms just first, the for of was it swaps, impact of Brennan, the performance

And rising important it certainly then not think on cost into context. of capital, to but a XX-year, helpful, put it's I

than lower it's was debt important. noted, also you it October, being in capital but so As

fivefold October, So were to first difficult was CMBS to if and in reluctant much went a as it money. in seen I to banks we've the wider, were extremely the you increase lend quarter, borrow very back Spreads noted, space. In issuance.

because the sign. more much the base that So the debt meaningfully as of spread the available is not that's and fact helpful capital rates, is cost a lower

ago. as why up backup us down XX-year cost will downward not of some to Fed more treasury, we're be up There X I Backing capital buy here, ago. to months is certainly showing X That But some point seeing, going down. the was that's rates, than be it despite But the pressure. than even overall, And it helpful. that positive does helpful. rates noted, assets more is the helpful. it to at overall folks months should So the feel coming today, we fact saw in is bring

Bill to Cowen. next with Katz TD go We'll

if the extent you're the where a I kind seeing from, little could get to in talk global you management. back of that the volume coming wealth coming you just the Just we opportunity wondering was tremendous peers bit about also of granularity many from environment the the distributors. unfolding on into competitive secondly, the see how space, wondering you then ahead. sort as look focus of And given your to

of in have our drawdown BCRED of into. time. performance lot see relationships a goodwill with distribution we reminder, created able performance as very strength tap pretty financial We've at biggest long a of underlying with BREIT, been Bill, the we has So that of and got a the of we're demand partners. of funds, lot Obviously, to broad-based. the We've this, advisers The lot U.S. a for customers. their a

so would the say And U.S. I broad-based it's in

of are we've Singapore tied as say, the where more in as to seen seeing a time to we certainly Europe, slower we've some overseas is today, over markets emerging is but market market well. little Historically, We and openness more our an is Kong, are China, markets those Canada. have strength Hong strength had products, there. Japan a I'd success had also. And

what's It's So a primarily still at U.S., aid, I still growing. you within percentage begin for a think it's the the story. of small interesting the significantly we're if deliver broaden think but it's trading returns. to alternatives. financial that very we some penetration still days. U.S., And recognize -- to early look these is of higher in alternatives the are quite products for Really, allocating as And they clients as can liquidity benefit global

Holitar's And makes we've to think, a I this on and space. So all powerful of we people brand, got room bodes lot performance, the team, have strong for us in of Jones had a fact well differentiated this that that, think very there's player XXX-plus grow. we we've us

McKenna Brian with next Citizens to We'll JMP. go

recently data private leverage believe you've senior to equity hired your exact I portfolios. a AI across

you data assuming front? can additional on across how over about across you insight data also for deployment leveraging lot the time? And you you entire what you your that portfolios gives leverage mean value data your creation into approach, about the a then platform have can and emerging the So trends I'm globally. might talk and AI of talk

this how ultimately so all does invest? where translate you into of And

important hugely this just that business XXXX. saying, than people in science up got I team is data more frame for back obviously for by economy. would on AI set we our our So business, the XX today. global We've

is numbers which basically out. in, AI, predictive on historically focused have numbers We

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And content our executive data teams. generative hiring on the still a and But we're by days. the will side, it with say it's media side, software early I'd working development on hired recently. working senior also, I help in development. think scientists We

investing in also on companies, we've $XX in out contractors then which about, build really $XX under data the of the focus AI, is whole that globally, investments cloud made pipeline infrastructure. building billion on have a is tried spending centers. And construction is centers by a own data Now and these, to necessity is the overall, around infrastructure a the of key another we've which time lot on and ecosystem. development Steve we talked these And billion number We're power, of what around and or do to going that primarily centers. investing there data that

days a we're companies line. early as infrastructure. our around find to But be firm, and impact spend working for a us, has to our help ways So make certainly been better. process to we're to biggest the competitive, It's trying trying the hard we're investment more

definitely on. area focusing worth an So

with Autonomous Davitt next go Patrick Research. to We'll

concern the higher sheets and those should on are to big there's business you conversations this for a insurance risk balance but on all? originating So factor And weighting. others and regulators ABS illiquid extent that very increasing I slow, focus the XX at more what that are from have been insurance work regulatory what are into hearing new stuff, you know seeing your you issue? channel insurance clients with that

we've that company directly I sheets. less see There's of generally of And have in what So doing decades. What and we're and of doing of thing asset-based been A I because infrastructure, really little think what a the ratings insurance been discussion for there's investment we rated activities, balance talking in of on similar assets very have been grade here residential as about average good securitizations literally to it's different debt and a think forms insurance placement in safe lot synthetic returns. lot that putting though, in mortgages and and doing A finance liquidity. that commercial regulators been private believe a finance, lot around private that A senior companies model on a around debt direct taking all or areas. participants creating these generating rating. the focus higher is has securitizations,

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be more So to scrutiny. going there's I think

than or we space, As for doing doing insurance We're think on private dynamic choice. company. you a insurance assets. really very liquid companies more sound. higher know, rated companies. a it made assets. think saves, liquid conscious in XXX insurance return for insurance not assets basis And of good what policyholders. this is average, ourselves BlackRock like generates, We similar for what We're an is comparably we thing It do we're PIMCO, points We the they and see for a

over think regulators, time. be we're we dialogue So focused of we there will on, with lot the will a but well received activities think be

With no I'd additional question in the to... queue, like

Thank you. so much... Thank you

Tucker closing the apologize. additional turn over like for any I Weston call I'd to comments. to back

joining and up look forward the call for today following everyone, after us to Thanks,