Blackstone (BX) 17 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Blackstone Third Quarter 2024 Investor Call. Today's conference is being recorded. [Operator Instructions]

At this time, I would like to turn the conference over to Weston Tucker, Head of Shareholder Relations. Please go ahead.

Great. good welcome and quarter Blackstone's Katie, call. conference you, morning, to and third Thank

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

record call quarter constitutes an interest on consent. On to reported of purchase income or is This call duplicated Blackstone of common $X.XX the fund. not actual and declared discussion of in Factors forward-looking that could of any section copyrighted like the the or be GAAP you that from the shareholders a to an press audiocast today's We expect report a solicitation we paid may materially. XX-Q October may and remind our sell our results Distributable refer are in this per be affect turn Risk a XX-K. the for and were our may not measures, dividend the without XX. With also release to duty please include of offer in We'll I'll Blackstone on over an see some statements, nothing do to offer file results, to share, of $X.XX $X.X as few billion. material which share of note uncertain that of to weeks. net $X.X statements. undertake I'd update holders to page a billion to of We call And of reconciliations results, website. Also, find differ earnings that, any factors non-GAAP per for and we Steve. which please you'll these will

mentioned, macro began interest call. Blackstone third reported Thank cycle you, billion, rate the Weston Fed in earnings XXXX, years. our as results, and many environment distributable on earnings we cutting which other for time its calls considerable Fed than we've Weston, you our the begin quarter of included last view interest earnings saw the for in on This and strong X more and month. rates highest Since unfolding. we see way it spent including quickly good to moderating morning, joining market thank participants, sharing the fee-related $X.X and the paved our discussing how tightening inflation,

to the fourth virtuous value and an We time. be at year easing ultimately, would positive year believe treasury activity, Since and in coincided starting believe of in the representing our of the powers one investment a the ago, our increased would towards -- cost we're transaction in it deployment the improving In for business. We that a anticipating of the capital is advancing most is also This that belief cycle be fundraising. Blackstone's the stated including fun. asset values catalyst for our anticipation fuel we now very We've stage turn which the of realizations, has markets, been then, XXXX, cycle, and the future substantially the seeds XX-year the with comparable most which pace of periods last a yield. planting period. $XXX close what double history months, favorable billion, our quarter Blackstone XX in deployed peak prior of active the over we is of always

in Blackstone we marked the markets complex navigate more a and economy In believe transformation across highest time overall than a X is future Stepping profound the amount help quarter well as of third the this of of terms choice is to depreciation ever, partner back, harvesting, geopolitically. investors years. of as fund world. Today, the

limited partners. ongoing with for our deep foundation and dialogue the provides reputation and scale Our engagement

transition, world. The portfolio to are needed including our energy convene and number key partners of areas, of energy more cyclical emergence revolution discuss one area. our in of with platform of credit, the private support from the the around the the real draw a detail, highly we The AI. estate. I'll to these artificial or market major in in renewable artificial underway we recovery development a of engaging our and the real to our As two ability India valuable decision in distinctive platforms industry, alternatives, economies makers in life estate. insights important the of in support recently, important intelligence digital the have been from drug limited reference sciences out, spend the are as in moment infrastructure in we and most firm what's building expansive a the the extraordinary advances the rise the The clients recovery secondaries we've intelligence. development them. Most of to commercial happening discussing The areas build and

in to to world's investment world largest AI. calls, center for expertise provider First, data and data our in given teams data with on were the $XX this India sector, execute global Europe, integration largest across center of on Blackstone our month, announced customers. investments. to the the expansion the our with provided Asia we and our respect our [indiscernible], Japan. We Pacific the updates scale by to the acquire another data center this On previous center holdings Last we've region U.S., operator capital, the major the billion. largest connectivity is uniquely in Today, of agreeing positioned

needs, enormous new for power which world. The doing, global $XX growing trusted of this Our over centers ability area, provider powerful and ] data consists prospective years, to in is has over the illustration valuable a and opportunities business much world. area, to of X more the development, a conceptualized most Blackstone And will and of believe conviction, investment in a time. [ massive it Air We've portfolio these we this planned the Trunk in create the billion we're construction. solutions under on only platform $XXX largest facilities in in pipeline largest build addressing become and and to billion to serve do including scaled including many sector's how of represents there scale customers the Blackstone additional companies

in commercial Turning real to the estate. recovery

With of XX% the by we've volatile in since years and and well sentiment as limited investment peak. annually of underway, from lower, nearly class including the in our BREIT should we've investor real of our concentrated the in of in largest BREIT, positioned vehicle their We from now commercial the the public the portfolio and nearly of all to positive flows with the double far, estate. Historically, real world. Blackstone investors. largest for its of new new a based September interest limited has values in firm partners has One XX% over private encouraging on in following share moving a XX% their balance expectation this cycle BREIT ago. vehicle's performance current towards down significantly and exceptional inception of capital shift, downturn, improving rental quite and Overall, this the positive renewed in periods and improving benefited moving sales. asset signs largest multiyear indication net of of ] construction, owner financial X As from is have terms towards be cost previously of [ ] positions data outperformed real sector. returns its seeing notably repurchase our partners clearly strong requests capital kind is increasing trends. The advisers, class estate the centers, were we're the careful the housing context And private warehouses, approximately believe REIT index by flows standing exceptional delivered way extremely a vehicle the estate, [ for dynamic recovery discussed [indiscernible] approximately the

of markets is the of enormous early accelerating are days Looking our penetrating potential. size we forward, business in and and

leading still we've XXXX. of high-growth The what the trajectory. In platforms believe we capitalize our long-term view established assets investable many in have in on closing, positioned I world And most navigated portion as Blackstone founding firm cycles represents is We globally. growth best industry a to its in alternative the areas. the since compelling, small

emerged to market every each in even expand invest, created have innovate existing share presented has product While and altogether challenges, and lines Blackstone from has opportunities to businesses. launch new cycle also moving most the same before, recent that, will to I'll to Jon. with on firm the heights. it lead extraordinary result. With new stronger cycle fully I over turn to expect our than

Thank you, morning, Steve. Good everyone.

been the we along several investors advancing emerge outlined from path the capital Over we quarters, cost high environment. we've of as for past the

path, across the We are the pleased investment with firm. to progressing our acceleration strong broad-based on business performance see this especially

in uncertainty. deploy second believe invested of some First, best the more significant times consecutive as over [indiscernible]. investments made during or for we we the we In would committed we capital years. $XX billion, clear highest QX, than all of X are said the the quarter, of ahead

infrastructure, thematic New digital some power energy renewable of and enterprise commitments and neighborhoods, our were solutions in concentrated software. favorite including

quarter Steve management company, Truck take of multiple Blackstone agreed global business acquire was year. Air the by to from funds. infrastructure activity busiest up [ asset-based equity, investing strategies. work Our QX, direct we XX% more private ], second ] in as its representing largest [ largest one commitment the driven than Smartsheet of in in $X.X credit And our as and had quarter software as noted, the billion, for privates In across history, significant over credit our billion, deployment lending well $XX

months X.Xx January, highlighting, the made period in in recovery key decision in Turning invest call first we in real year, real sector estate that the development last the to same In the year. to the X This $XX second nearly were been underway the commit values estate. or we've the our informed bottoming. billion of commercial

levels of in of estate increased largest market construction meaningfully, $XX XX% dramatically transaction now falling At market also fund foundation two the real new while Our from Street's the private real XX% apartment peak estate, starts rallied public values in is including real same U.S. sharply. Liquidity and Green estate the XX% most estate. time, since for are greater real buildings, is improving index declines activity. of quarter billion each in has approximately to providing flagship logistics has sectors committed. nearly our global private recent types the for

quite will estate out play and the over business. rates, of real of While lower our travel the borrowing supply spreads base time, for positive combination lower new the makes direction recovery lower

platform private we've of speaking the across and world development third offer spectrum corporate building of a across key remarkable manage secular The the in strategies. full estate borrowers up been credit, one-stop credit real to business billion the and about $XXX clients rise and solution we integrated a regularly private largest Today, the we've third-party year-over-year. credit is with been credit the XX%

noninvestment-grade our months. In businesses Total $XXX credit. inflows private grade largest, CLOs, across real estate base supportive as activity in strategies, not of combined continues the last liquid and opportunity investment returns for billion we generate We in deployment. XX transaction lower expect to were be of lower, and direct there relative rates significant lending, will excess Meanwhile, largest, even have the clients base one over the the if move to to platform be markets. debt rates

increase rapidly dramatic private of all Importantly, many markets we're and including credit in in the M&A, private world. a expanding companies demand beyond credit, institutions from for are and of largest seeing financing insurance the investment-grade forms

results XX%, and basis extraordinary comparably We reach billion, to nearly average of directly a up on Our XXX of across grown versus for connectivity approximately billion up high-quality in clients. the value proposition credits. Overall, the channel, $XXX a investments. has spread additional borrowers credit private XX% generated to originate to $XX relationships more Blackstone's borrowers liquid farm-to-table approach, including SMA and year-over-year, IG year-to-date record, with or market, which A-rated credit insurance for create resulting scale which four opportunities clients. In brings strategic our clients, private points originated investors business rated our strong placed excess focused XX in

other of area, equity where strategies multitrillion energy including debt often nearly Blackstone player, were leading a of real for flow agreements credit projects the estate. In lead months. finance range is also energy the financing areas, flow contractual infrastructure renewable banks Our dollar relationships in the equipment the provider we in across and and generate and estimate, that and markets data debt, including centers, enormous in all operate investment-grade receivables, wide finance. and we a originators home with of forward established XX last card U.S. improvement, XX% fund We've

been We significantly we've is to and private wealth. building juggernaut, here. The our key third-party in from performing business development expect our are credit we fourth about momentum grow talking a

the seen perpetual nearly year, a $X Steve the months launch, period vehicles X third $XX and sales Following a $X challenging for the last as including billion wealth X-year billion launching we raised we've period $X with only markets, XXXX, the more same of for in vehicles. BCRED flows raised two We're in We way including X $XX raised reacceleration infrastructure, double year-to-date we as credit for in from are in noted months also billion over billion BXPE channel through robust in led quarter. what in individuals BREIT, billion the of XXXX. approaching September, process the private trending discussed. of is previously. first after favorably, the in perpetual and

prospects record financial depth advisers our track products, more the the the brand, ever. with channel this of our the clients strength than in confident With and of their we of relationships about our and Blackstone are

today with us. years. of in new In fund addition The drawdown to momentum in partners more past from is limited positive private the a number area receptivity our several building wealth, in of front our than exciting initiatives feels

a strategies, private estate our $X for energy estate and initial closings $XX Asia European $X of we credit, fundraising $X.X highly equity-oriented In strategy of billion equity, debt. of fundraising billion. And for next opportunistic transition, our and private fundraising for $X the successful successor strategy, billion X number strategy. complete including soon our equity, will flagship sciences real equity with launched vintages secondary billion launch, recently corporate to soon we've vehicles, real strategy private private We business, the or equity launched, billion life in will our

billion successors a larger this at our infrastructure development. current than vehicle, promising EUR as Also of very Europe-focused the to as expect We open-ended we've new large noting, worth closed be on vintages. X the week, or least for

AUM. alongside multiple investments something track than our brand-heavy, developments to rely power architecture sheet of our changing commitment less these that the to our not and our is comprise our in The We people of open Finally, unfolding firm's business, our brand is capital-light, positive X% model. balance grow. on record,

that share insurance past repurchases is terrific closing, and through we've firm We've We period have returning over achieved. a unchanged virtually this despite by measure. no almost that shareholders no debt, liabilities to in years done count and net growth the over over also share XXX% shape earnings of extraordinary is billion. In totaling any X the $XX the dividends while

cycle I'll and virtuous underpinning have that, our powerful at tailwinds Michael business back over things We Chae. the our turn is to accelerating. With

or These second in for moving we've and will to for firm's the record quarter, earnings $XXX transition inflows the Fee PE fee-earning will $XXX and to impact periods good and were fee basis. the share billion by of million earning $XXX in were of breadth were generated growth over certain of fee positive, by growing fee-related per XX% XX the of inflows segment, LTM to fee the in the investment in platform. Distributable co-investment $XXX in common were depending vehicle respective in along quarter, in reflective then revenues all remained Jon, $XXX And quarter in lending results. $X.X the delivered by X% activity proceeds increased $XX in and secondary stock up meaningful year-over-year by previously, third strategy third the quarter, financial environment, The Energy performance up we the morning, toward direct insurance These private on the quarter. realizations holidays, or markets. in were billion AUM outlook. Starting a third performance third X-year outlook in strong a the the in $X.X energy flagships in on these moment. Fee-related fees. year-over-year, management AUM quarter primarily and the public a with of disposition Net underpinned lifting the with and extraordinary The billion also firm's sale a and review in in credit share, positions, which of period XX% revenues infrastructure the equity Thanks, included QX, in million holdings. Overall firm the from quarter vehicles everyone. quarter. limited of per or an earnings is highlighted current from India-based We most Total firm from record million from discuss with the third aggregate. forward X% discuss step-up our I levels. a period, holidays $X.XX as continues power third first the our billion has The the generated for AUM results contribution in the more retail trillion, nearly $X.X management REIT the activity capital activated and year-over-year, levels million in the BPP corporate investment the business, the with strategy. Notwithstanding billion. other along share, of are contribution temporary AUM $XXX fees months. our per private steadily broader in billion and year-over-year public representing I'll last up new $XX third quarter $X.XX results characterized increased $X.X lower the X% quite the to billion, to earnings power. XX%

are constructive a environment we meaningfully in about realizations more XXXX. for optimistic However,

Moving performance. to investment

Our quarter equity over corporate the and by funds X.X% the appreciation overall in infrastructure. in X third generated XX% XX highlighted the months. the PE years highest funds corporate in The last private appreciated and dollar quarter,

in X.X% significant for appreciation XX% gains quarter infrastructure. the overall Our strength. Infrastructure transportation energy operating in quarter with mid-single-digit revenue digital and margin reported across companies continued LTM and third stable the notable along the year-over-year growth with period reported

returns annually for real again Our XX% quarter. The businesses to robust in XX% total infrastructure since has BIP and continued the net third inception, firm AUM appreciation billion. powering increasing platform data BIP growth estate overall year-over-year was platform $XX the co-mingled center with driver in our single the generated largest strategy

for and quarter also than months. markets. credit reported X.X% period. The less noninvestment-grade debt across our strong the X,XXX-plus business backdrop private the XX quarter for against strategies default gross XX The rate a healthy XX% last Our the for return of LTM a noninvestment-grade generated basis another private points in was credits credit

the of hedges the in which in fixed for the quarter, net in were and [ stable our gross locked [ logistics, low-cost the in basis estate, excluding rate strength interest XX flat investing in centers, offset interest rates return and In of third ] XXth multi-asset Class in Core+ XXX a rate reported of basis X.X% platform, overall funds. Within for rate real the quarter effect return of unrealized hedges, housing the fell performance interest XX quarter. global by Our valleys had months. opportunistic positive decline the by rise in approximately quarter last quarter, the primarily XX% funds third hedge. positive These a the financing composite, yields supported rental appreciation I of reducing points for BREIT's BXMA value ahead by ] for ] but X.X%, its and the the third points [ data as effect the return treasury absolute Core+, was consecutive the in

firm's two the them. been development reported generating major various lines, have of in business of highlight outside Finally, of a that we I'll of results. have stages outstanding strategies number

last under in performance multiple a treatments development, over period, investing attractiveness revenue prevention third the XX or XX% failure, benefiting level the billion lifted The potential. QX Stakes GP appreciated heart in with investment medicines vaccine years. and eligible and highest performance per achieved including and These QX $XXX in X.X% appreciated arrhythmia balance are up quarter key reflecting on $X indicators XX% Life the the platform realization ground future from a share, milestones accrued alternative to $X.XX sheet, for pneumonia. [ ] funds in And for performance billion. increased revenue record Sciences sequentially the in AUM months, strong along of of X Meanwhile, net for our the the from LTM of managers. firm's the Our high-quality XX.X% XX% to

full FRE step-up holidays. a in driven Turning the quarter, multiple the for management of funds fees fee to factors. outlook. the material several We exiting onset These by anticipate in include fourth

full to also in strategy, accrual it year to sheet. for particular, comprising reasonable as quarter, the beyond, closing, net noted performance the XXXX. In XXXX, for the expense the margin I in for co-mingled robust of Blackstone related But revenues, strategies We firm XXXX outlook to crystallization growth open balance for from We associated would in range factors. and to we momentum QX, and event like fee-related continue fee-related a performance do positive. With seasonal across portion now scheduled and the expect joining margin to the crystallization revenue sequentially lower you QX to powerful of BIP infrastructure that, expect infrastructure have the the expect other a FRE compared substantial on call. looking the questions. forward we we very within is last for thank we be up to

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

Maybe just there. nicely on insurance, the platform continues to grow

How So the both I grow the partnership you helping continuing business progressing XX are today part so you regular separate accounts. grow? how side, third-party fronts way, the was here? for opportunity help how size the Maybe from mentioned that conversations and you comment the to could envision I relationships? And of on or on them potential partners, existing the side that think on new then strategic hoping with you're on

Thank you, Mike.

we insurance have say as We I So is XX% the four exceptionally these XX business, companies $XXX would dialogue year-on-year. up strong. noted, the do strategic relationships, SMAs. overall billion, insurance with

time. take On the those side, strategic

party to in a need find You interested doing something broader. who's

happen. to when hard and to how have continue will We dialogues. It's predict those

On side, private benefit recognizing seeing more insurance the just investment-grade in of particularly credit, asset-based space. the companies we're SMA the

As done private estate they've you real know, always on a basis. commercial

came a trillion credit it this CIOs with into basis, been the tenor insurance and its on $XXX relationships, open. it And with have our conversations And regular just done runs we feels very our in have we're arena We million who asset starts has business past But like $XX to his the fill that would ], one private in commitment. movement days. of placements. is early [indiscernible], over it's base and out continuing Some up, say capabilities. And the this from meeting terrific can area I [ grow time. very build

You put us, very strategic grow time. a high points in partners continue to on a feels them. over like should area. for allocations new where because at basis to the you got that the return hopefully the number for of flows this add rate to hard when It's it, and it we've is future contractual the their still companies, are relationships coming some to small the foreseeable excess A-rated insurance paper at And pretty to XXX look to very valuable but

would around optimism the high. in I space We're is open model so this And us the the say of helpful. annuities. not market then, architecture course, for And selling very

are our helps third-party and and here. a investment momentum definitely that We the helps manager, conversations

next from Securities. Brown with Wells our question take We'll Mike Fargo

we should of how growth leverage operating the that margin think if, that if go? And in if it Could Michael, where this call points north how by the years? kind then could you've FRE about the through XXX basis fees? delivered could placement over I And we next much quarter. expand was you XXXX, that year? expansion driven it, is hoping historically increase about the on the think expenses How operating be embedded of, could drive

Sure. Thanks, Mike.

few a of On different items mix growth, it few a at elements. the operating a expense was

First, relating [ signature debt there third-party fees ] servicer to portfolio is our acquisition. a

running These these with to adjusting rate than areas, obviously for QX, then initiative-driven growth is what I'd say for And year-over-year associated would and spend the And items, say there seeing as digits. some expect Second, And low QX. OpEx. items. compelling you're year, very growth related all they double we OpEx I in to growth consulting lower other to but placement close which fairly is a underlying in noted did you was are primarily last of add BXPE. would some fees very

So of background. say, the would that's, and the on outlook overall that I some

we early. would In margins, get XXXX know, especially to from too top overall I the a good idea very term, sort upside leverage. over there and -- the that. and continued as of in like granular, it's just of it's long the We say as then term short expense this structure, both that early drivers feel line of our to point don't continue on of starting stability terms you the and operating given about the

next to with Schorr Glenn go We'll Evercore.

and world. -- picture Big asset the back in question on [ Blackstone specific ]

banks, if could it in range of or your [ size origination, could juggernaut it ] we Just wonder multiples in you seen different the piecing about partnerships you for terms juggernaut shift be for bank terms lending the put think direct together [ then the that? And what relative of third-party share asset you share mind you [ in same that in and to done do maybe owning that that back in in opportunity size, of to think your of market? backdrop terms ]. in So like I'm fair something from curious if at you've you the the looking of relative to bigger ]? terms I the talked enough get pieces we've specifically, your

Glenn. Thanks,

direct is like But get platform borrowers to because world, would About roughly lending. it's to universe, a of of and in farm-to-table more that X/X $XXX is that can a we it lending today. up, you will space. deliver certainty the we in continue leveraged to direct that say the leveraged high And that's billion and size if that certainly X/X in universe have $X share feels approach. trillion finance lending and X/X in that of of I So at look that it yield, is

whereas energy transportation, If that X% the world, that X%, leveraged trillion have we're that we smaller which that asset-based finance that. And the [ X/X you real are including compare finance, -- at $XX players whole much trillion. world fund private digital world, just today I to $XX commercial players estate, we infrastructure, real residential described, of estate, of of estimate think is a ] private world,

these So clients pension move the me time, the heard insurance. you the We're having enthusiasm And see I why larger that's is multiple going to think opportunity. the and in terms of And reason much good with scale it's over on because insurance dialogue that the is beyond for penetration side lower. much clients.

see to start means wealth billion, that this But probably and it and for all think today, $X look as that whole this do I some speak the individual choose Billion, can at get we of get a same lower or us. to we'll cycle $X this. our market. we an we'll really for put less premium, of investor good making creates can loans sovereign lot. institutions at they can And risk, well. It's grow clients do billion, a funds will think for And asset-based different I and as number scale, that XX transaction. almost amongst

overall, I'd here to lot. lot. I market this think So numbers say, would grow I a grow our expect a can

On there the we sense. would for to front, a do-it-yourself. tend is say But what make bias are where have partnership I bank areas partnerships

sense, with done us, We've where originators with of some have direct some in areas, improvement for done number certain a a in fund definitely lending, finance home so scale terms much we verticals. in loans. we've of partnerships banks. of wouldn't in but So origination We've lot done make certain and things

of more do continue I think we'll those. to

[indiscernible] we haven't a as announcements, of have of water terms in We done origination. many lot in but the

our investment year-on-year. grade origination XX% was up volume think I private in

we where area lot an momentum. is this a of So have

have in The relationships very estate important other thing The and as that business scale credit is think is I in an well. there, infrastructure as helpful our equity investor. remember real digital our we to deal energy. is Massive flow that scale to

some own what go. long So specific more We partnership doing. Will continue way good to we out origination about a yes. areas? to still we're our think we Yes. there's build we capabilities, feel find Will in

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

have remarks. But commentary lot We lot stronger we on picture prepared positive will of big looks investing the And 'XX in heard a pipeline. question the a be it like overall. a

I And declining key private So on or investment broadly backdrop real more points. One, next delaying and the perspective rates the wanted your election in how rates? into decisions much two, discount cap in the favorable equity, setup November is estate two is both year? given

are who do election, waiting say a think would to on launch mean, we I election. the some get are to there I through really So folks the seen slowdown. I haven't

quarter. a fourth or been sellers or either delayed, later IPOs the bit into quarter maybe So little have first

So I a and pulling sales few good activity. it's but probably a haven't be sign back seen for should buying, from processes, people that delayed deal

you're real and off see end in long at probably areas, in because and down a for coming conditions short sort a we've the now activity. In Base recipe think to it activity. such and was both relative all transaction have base, seen going borrowing of the pickup come the down. come spreads And percentage-wise, you pickup But ton. I in terms of low have rates, a more both activity, costs estate borrowing

investors, is mean, they'll some say down think I I basis were then meaningful the estate, between points. improving yield well. rates eases. sentiment end Fed the for high really helpful come tightened basis cases, In activity. A things would on of short looking very confidence. down real and their market, people's base I course, And XXX transaction further And a equity strong obviously points, and down movement. XXX course, of helps we bunch. as have is Spreads that as spread in today

we've was of up was the I in with the invested the agreements, been $XXX are Steve equity nondisclosure anecdotally, think feels the investing or billion a And talked picking things like where I it ahead but private year sign. versus ago. agreements, is confidentiality little of we've and day before up. in number about X.X a our So curve talking guys, it the all-clear last September fold the so,

doesn't you necessarily be sold volume similar in we estate. shows deals. need the of it's to enthusiasm. mean that Now more that it And into companies world, of lot there equity real story private in to know there's clearly a that turn But is going

of So like and DPI, lot think pent-up for there's it demand feels a we'll realizations for see that XXXX. in I

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

outlook estate Blackstone maybe to over of next net asset bit encouraging It's seller little on particular, which on more the estate in or maybe improving. both a -- in zoning that a classes, on buyer in being on assets? And a terms that a our your specifically. real you very of Just XX equation? talk XX bit to you little of little active a and a bit be little more piggybacking net sides expect months about conditions, real obviously Can

net year, the hey, a that the look the still but at cost, time, been we reach do up. from into the last tend have of think as sentiment negative We planting waiting available here months, next debt improving, look show as seed we're be the and definitely headlines, sort that. But the we rally, past it's and is more same is buyer they're more X it Well, that in the and wreckage at seeing public people we safe the back in. and them, people mode as lower to go concerns see, becomes at to for to

to buyers to apartments seen, it, buy X the logistics. like we've Xx things up So of and number showing call

I has this very been the relative harvesting. to the investing So think towards year balance the heavy

will we more the balance more then work see probably earlier I out, to as start would through I think still investing expect realizations. year, that on to

us we where we sectors, towards long trends there's a think areas the It's the Data very Rental markets. look our has centers we of through like, will good. huge shortage particularly term, bubble, talked a really get been the vehicles. housing real globe, of like particularly housing, theme about length terms logistics, in heavily in developed at global number powered In we've estate. for be supply continue of as leaning to a we around

the capital, could buildings, higher possible and you we a will particularly it's enclosed some grocery-anchored basis even selective deploy space interesting as that to mall. opposed on And to places the quality interesting find around things, so think office find in and retail I

recovery possible. a capture in capital. of trying as much think the real as and to U.S., middle So I Europe broad-based estate. in that Asia, deploying we're We're

see and through and you As sales, we pickup work recover, in cycle values that the a you'll now. happening feel can

to We'll next go with Dan Fannon Jefferies.

fee given levels about seem and the have that Can in for fund be of repeat some deployment quarter. on into to funds you also off the larger that been the then third size raising going what XXXX? means AUM? came the that talk elevated funds of of just holiday or And Several continuing, can you

Sure.

I sort holiday the of On items. fee side, main the the mentioned

funds, corporate the be Those were fund. equity, third SP holiday our private Global partial full in transition fund [indiscernible] the all in fourth in then fourth our infrastructure in quarter. quarter. Fund energy or They'll new fees and Our full

based or funds Just it on was million those of to fee holidays, quantify, the -- sort so. around foregone of fees X those from just $XX

about... the that want talk will So to help you maybe you math. with Do

feeling quality would institutional is the looks to are getting I I the of better rallied relates pipeline, the equity dialogue is mean, investors a certainly say it lot as look, have as effect better. what markets better denominator today.

back into up to I cycle DPIs about picking next that's some allocating I as through sales, are the we IPO virtuous more. we think system. have them as in thing the that of things key move gets as be the market the way working that we then more remarks better of year would moving expect and that capital talked -- their the will

transition, opportunistic we've energy private Our Asia credit of to secondaries in clean business, estate credit, At fund, equity point a real Europe. Life real Fund. estate or business. And funds year, continuing next number the these private next next large up got finalize we're some Science then equity next our our

be So we're environment. in going it like feels a fundraising better to

X.X be As environment, it's working capacity going we easy. big have not a feels way tougher their of last from the the everybody In free to our realizations firm, here years, will up last months, $XXX through but period better the been a as customers. billion. more it system like XX certainly, knows raised Remarkably a time,

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

and the you Maybe to data the described the as opportunities, massive center move pretty AI just connect to which deployment theme trying to back the obviously and just in space.

from with -- fundraising. that the to supply connect that connecting trying Just capital of investment

the back see the early? even do [indiscernible] extent through, by be accelerate fund extent X you next would vintage think Is centers of is as next that, deployment to just seem the I up XXXX come XX% what what or the be say, fundraising over for can't this keep a would one that the are of you coming part that? there data could committed. end to market Maybe too of know to years? that will So fundraising, example

say question. pools large-scale important an centers it's been What advantage. of huge would on competitive able that capital I been deploy has the we Well, to have we've is a data that fact

real since transaction, The partner. did and estate. So jointly which did to a [ [indiscernible] various at with $XX eightfold Asia, billion were case, lease we've opportunistic that really the We be estate, I opportunities ], grown company in privatize the We to real with we in it infrastructure And institutional in $XX own global, ability infrastructure, we think, very a able, a time, QTS tactical our capacity. and BREIT just BPP we that our dynamic favorable because billion competitive one did area. on in deal. had

out. capital does of were to do and for have to and a that's strategy capital and we both these it to these because then lot able build this companies all firepower buy this Our at require individual investors together, to the private equity, scale us bring enabled

And acceleration in let's an I real globally. to it opportunistic area of so say, think deployment. Will do it fundraising is a estate, lead meaningful of

it's we've more us that talked certainly of biggest Asia. lead Michael think us us. Europe our since ahead centers. the infrastructure helped data driver in U.S., has business. It's in inception. XX% net has to been and it got say. helped too The it feels early It's the I the driver in momentum for But performance. And been like about

broadly, So exciting electrification would it's broad of one power, sort on just more a most base. I the for of areas. And AI playing this need say compute and

that clearly even estate our equity another area. again, that's having infrastructure, gone the -- consortium and area, having we're it's and that's so also this our having into energy in that power energy it's some and centers, credit, then but of And credit in funds energy doing and the real data funds, what

there's our firm, where are in think need areas, a of right for you in about are we the particularly have firms invest think and these vehicles huge we when it. So positioned, what to capital our few alternative a

of will it faster higher lead deployment gives returns lead think us I it well, as that to optimism. to and a and should bunch

question next with We'll Hawken our Brennan take UBS. from

declining. rates So

maybe to the FRPR think curious hear base credit about I should out business. was that your sensitivity of But of credit? many spreads within how helping the to on rates businesses. how we lower tighter the think of specifically, impact And spoke and You to rate about

certainly, year. credit the on in customers, last is, very for I'd appreciation XX% generated what over investment favorable grade we've returns So say nearly private

liquid of corporate that, some base income. fixed we you away over, I the rate spreads goes at income for can And liquid down. But comes come paying over BBBs and a XXX is, down they of little as premium premium. course, think fixed a earn question, where think, produce are I to durable And investors when can a look a real

it certainly I can in do noninvestment grade. we think

points you product, base our rate since delivered basis over it's BCRED at XXX inception. If look

base points about as So a basis when come the in we deliver over you talked credit And very we rates return. earlier, even also down very as rated A attractive investment-grade idea can that XXX look space, comparable the encouraging.

that's think, but on And So why reason returns spreads will premium, investment credit, and yes, we'll see some both grade relative that non-investment investors grade. there returns absolute will down, towards base as to be I pressure I come private rates migrate and continue the continue. durable think

I'll also rate like of liabilities, on a they're I mention, something decline effect vehicles. yields offsets. just of or nontraded impact [indiscernible] low or the performance question and in math isolation, levered, talk probably These reasons you income, about equates XX in there on or add mid-single revenues, for of but investment a on X% are around can impact, I'd revenues. a are down. what's point call even it sort in in pretty are lowly importantly, that's The X% cost to tandem moves BDCs. derive run yourself. But that though sort underlevered of These the in digits, base fee-related basis which on traded in the Brennan, so actually, necessarily decline your income, would investment minimal And yield not rates

just offsets, of there question equal be becomes where and are It else move a think, income. base And I on yields all in terms will investment impact of the in so rates. really a of we what's down

next with go Benjamin to Barclays. Budish We'll

years, the Maybe next for in done. maybe to like versus another the X fees outlook like past, realized structural performance comp peers know you're look last bit I you when not wanted down little side. FRE look does it back come and looking ask that ratio fee-related the of have X, comp your ratio on management the like revenues. the really we thinking change a X, the year. I make overall a opposite to But some performance across question commented in about the has on

it I'm in curious what And next an be it smooth your the your so a we just do year, is, comp employees. performance big could pickup digging -- really opportune picture revenues, through out given appetite for would total given see particularly if time

there. I So thoughts appreciate any

them, Look, we at as Benjamin. control a way of them we've we in like integrated across degree feel -- and them. our levers Sure, around an first to fair got and of want all, has look and multiple optimize you we know, model comp

professionals, of time you've certain And the way. ability. mix from we businesses, revenue performance we've of in comp performance in we more that movement, chosen to comp say, and time, have that fee of allocate seen to the And some ratios certain manage incentives ratios. to comp terms I the relative to would So

others. haven't We with a use it's larger can scale but done our the in programmatic along tool in toolkit way, we

that is really about how think So we it.

comp overall standpoint, step margin would We feel think, on model. elements ratio the we, a path have our and back just I comp standpoint, multiple the I these from forward. to we are as of say, good delivered about controls. There sort And

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

Wanted ask outlook. flow and net FRE the on question a to

to improved XX% running in least the metric reinforced has short fundraising quarter. are ]. overcoming One And FPAM certainly [indiscernible] back which which of some about of the expectations it fell book growth. at activity see deployment the So headwinds, encouraging of challenges of [ was at

could you net about to and and FRE outlook just year the the context next growth the tailwinds of these beyond? strong pressures organic thinking rate, refine some given modeling as a sustainable for we book assumptions Just cited, just some flow how of in you're hoping you fundraising back was speak of our

the But outlook. around an the [ for at about overall XXXX I'd FRE and outlook, granular We Steven, for sort just don't overall we looking fourth certainly algorithm growth. place of quarter are give ] the blocks FRE mean isn't longer XXXX. guidance, it. [indiscernible] 'XX building term, there talked really that in on of the start, I sort

the giant year, funds continued activated revenues, incentive base earnings management the BREIT year-to-date. On flagship up to steadily this We underway, of BDCs earnings are raises vehicles continued credit their ramp, about, earnings this bit very in power. which our optimistic been power power. then expansion then performance management sort fees expanding fee-related about of FRE full on, of mentioned, performance XX% insurance touched to lending be in between embedded embedded year the strategies, which momentum structural And the perpetual and revenue, we direct fee-related of including sort of sleeping fees, generally, terms has a scale. And of significant up just additional DXP, new XX%. drawdown we've talked benefit I a broadening activated, fee year-to-date BXP, you which insurances upward credit

of think, I around less think blocks near and really forward. the good, and we in and across business the equations terms different medium-term overall and building more momentum and think, drivers, So across longer-term I path about

sort it that. algorithm or of flow that rather frame net sort a quarter-to-quarter So of around I of would way really than kind

JPMorgan. with Worthington Ken to next go We'll

well of or elements lots and areas So are performing recovering. Blackstone in

lag, this rates. well are Secondaries and to and and XXXX of a quarter And returns and secondaries IRRs by points. continues below 'XX in for fell X, for your in we percentage aggregate X witnessed couple SP hurdle [indiscernible]

continues better see the And a case, really Is when understand to like a here there performance time? that's we bigger of lag? forward help different is if So issue results just us to why the path function Or it? here? do

we our about feel great secondaries at were business. would We of today billion AUM. I say $XX

are High-teens and at net their SP in the filings If in look you return you our vehicles. returns look equity higher funds, private the here since inception. flagship

couple business have the of we term, customers. In So on a extremely near quarters. lag of reports happy a yes, that

average. solution of overall on last the to funds what that to few But X-year-old different So it able attractive real a And I unique in and in in today, a us quarters, were credit, been embedded to modest sellers, and interest and growth spot. particularly at terms X,XXX would say there's challenging sort on focus appreciation private across buying we equity funds the come of in reports prices, seeing we think funds what there. you're show own do really give puts think, being infrastructure and it I in up holistic estate I discount

look slowdown say at this out would I But there's with little the business, we very So next they're term, near pleased vintage. when customers, I and rate of good done feel to quite what bit in go we've as for a the a you performance.

to you what I'll Yes, channel a a Kenneth, of things. said on reframe forms The to would Mike. that. just hear you if think this check, add been just reiterated. is investment that One, And Jon couple or did outstanding. I

funds said, I add year, what funds. mature two lower, buyers early it's Jon to are then from themselves, this, to of deals of will you of kind nature was more is the to the just elements last returns. and in a discount. now. in math of as they buying performance, the there of ] be That volume recent help the secondary term at short the One the gains [ on factors to think Jon know, is think returns. And are tend year and definitely the That I the immediate referenced new terms accelerating the performance of underlying secondary this which key fund

these last lags. performance So in yes, this mature years of naturally of during the more recently, so, some the even couple or industry period funds across the of of the and recovery more

of the our in delivered being it's with transmitted as quarters. see that [indiscernible] say, well younger that's sort portfolio so recent And opposed as latest to, fund and equity a private you performance

been really are those They're cycles, have do through been the in SP are outstanding. in delivery context investment these where factors. to the the of And has structural, So we overall, their they has but cycle. with performance also two structural

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

Management. tremendous sort competition a Obviously, shift? big interest brand. rate advantage what How you of of the on have evolving great in do in Wealth first-mover expectations Maybe impact you're a investor demand rising of and here of terms and a seeing just one platform maybe picture terms you see as

BXP is that wealth trillion bunch well built the up -- to if our others. of that the earlier goodwill Thanks, we $XXX have It allocated to underlying to start incredible delivered, I scale point drawdowns $XX United that's because to others, and the probably billion of It up they're with days a of is States. how town We you with very much of fact the also relationships Bill. XX%, the The definitely started early customers. I'd financial I than of in And advisers space, the Both the we first-mover earlier goodwill in allocated course, would out speaks This a the couple has perpetual, and they're advantage. started. underlying a performance. and particularly BCRED our XX% more speaks look larger here we as think X% as of how clients. how last with firm recently, lot now their investors, in weeks of X%. at towards is important. BREIT them of extraordinary, institutional and the had here, even because outside private builds has delivered, than

see flagship going if talked we So here? We enormous sort opportunity about said, infrastructure, another an with We you of of version products. see into do what existing our credit.

for semi-liquid which will in and tax are the advisers world. think around reporting these underlying see well the liquidity cases, many continue you'll alternatives We their customers. that's works of people have put more us structures more provide They benefits this grow. semi ground to think the think I more on timely, as efficient. We

number play. like, overall as say, an traditional where very, In private the equity institutional very brand, think So given you A be number moving competitors know, have different, smaller. which I versus will I But the participants. there I you there get reach shelf unlimited is to space. groups our smaller space, will our able market be can it's say, of is into world, would large. let's this yes, more of will feel

in Our this first-mover context. of all the advantage, we've super performance the is brand, helpful delivered, that

other to And up. enthusiasm about for as that rates I one worth I thought products down, makes things. wasn't in noting X% these base much about other market fund, come just a would you that's money say think investors' were incentive thing there earning is go When

at [indiscernible] trading of As near-term in Fed that point some the returns the back into I up. liquidity for brings the think rates goes some attractiveness higher

So they forward, and that how the better I cash, I we weathered accelerate private should wealth. performance of storm in showing products a and the environment. will move we improving momentum return short-term in expect, These would from think of think as grow, the lack all

Piper Sandler. take last We'll our question Crispin from with Love

a just big picture question here. Got

there for IPOs, private staying Are longer? you just a seat, of So Blackstone this there you? are environment? could with type and that see are from seeing And IPO and companies both implications scenario pipeline? activity negative where your what in less to mean do and what for regards there you M&A the And IPO positive

I'm falling and is place, both a IPOs environment more more into for believer M&A. that the

On debt coming certainly, front, side, of a difference. terms cost of M&A the down in private capital the makes huge

If [ you that, Emerson transactions struggling we bought were looked cost made very doing Copeland ]. Electrics when get XX%, XX%, we that we ], capital difficult. [ debt bought business to When any

private comes capital more can it much borrow more of cost allows robust. market and to debt become As down, people the

As acquirers in become stock strategic obviously, active more prices M&A. go up,

said ]. the And it's obviously pulling earlier, goes like laggard 'XX build the watched of up, 'XX, private momentum the price We've companies you've as and the On market. [ had the on we as X had IPO slow a years market very magnet [ public in I that's been front, 'XX. up. the TV ] -- into

And so see I more. think begin to you'll

You February firm, And meeting and quite investors yesterday, walked XX% a come today. have the well. done U.S. That when IPO get Overall, out to people, to talk we that like will sponsor IPOs more just seen in invest some in IPOs. And about think are up motivated Should IPOs something I this IPO. we've or we size? were April. of talking our it a the from in the in potential we do What's really into theoretical about happening I practical. gone what's sort right to from

market, is The back market private that expectation pick will grown. up. be has companies continuation vehicles. So which There my the IPO historically cyclical, in is may stay

So there will be a some good realizations, better very for thing. our see of And that. in But CPI, I XXXX. think we a that's IPO much business will market obviously,

queue in remarks. Tucker questions additional no call like Mr. to additional back closing With to would Weston for over turn I the any

a day. Have Great. following after Thank for we us look to you, great up and everyone, call. today, forward the joining

Goodbye.