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1. Company Snapshot

1.a. Company Description

Blackstone Inc.is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies.The firm typically invests in early-stage companies.


It also provide capital markets services.The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia.The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, enterprise tech and consumer, as well as consumer technologies.


The firm considers investment in Asia and Latin America.It has a three year investment period.Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.


Blackstone Inc.was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe and North America.

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1.b. Last Insights on BX

Blackstone Inc.'s recent performance was driven by strong Q2 earnings, beating estimates with $1.21 per share, up from $0.96 a year ago. Record assets under management (AUM) of $1.21 trillion, fueled by $52.1 billion in inflows, contributed to growth. Analysts raised forecasts following the earnings beat. Blackstone Credit & Insurance expanded its financing partnership with Aligned Data Centers, surpassing $1 billion in commitments. The company's durable growth blueprint and unmatched perpetual capital model support long-term prospects.

1.c. Company Highlights

2. Blackstone's Q3 Earnings: A Strong Performance

Blackstone reported distributable earnings of $1.9 billion, a 50% increase year-over-year, driven by a 26% growth in fee-related earnings and a more than doubling of net realizations. The firm's total fee revenues grew 22% year-over-year to $2.5 billion, while fee-related earnings increased 26% to $1.5 billion or $1.20 per share. The actual EPS came out at $1.52, beating estimates of $1.23. Management fees increased 14% year-over-year to a record $2 billion, indicating strong growth in the firm's assets under management.

Publication Date: Oct -24

📋 Highlights
  • Distributable Earnings Surge 50% YoY:: Blackstone reported $1.9 billion in distributable earnings, driven by 26% fee-related earnings growth and over 100% increase in net realizations.
  • Record Assets Under Management (AUM):: Total AUM rose 12% YoY to $1.242 trillion, with fee-earning AUM up 10% to $906 billion and management fees hitting a record $2 billion (+14% YoY).
  • Private Credit Dominates Performance:: Non-investment grade private credit strategies delivered 10% annual returns net of fees, and the $150 billion BXCI platform reported zero realized losses to date.
  • Strong Inflows and Institutional Growth:: Q3 inflows reached $54 billion, with $225 billion in 12 months. Institutional AUM grew 64% over five years, led by infrastructure and multi-asset strategies.
  • Fee Revenue Expansion:: Total fee-related earnings rose 26% to $1.5 billion, while transaction/advisory fees nearly doubled to $156 million and performance revenue grew 72% to $453 million.

Assets Under Management and Inflows

Blackstone's assets under management reached a record $1.24 trillion, with inflows totaling $54 billion for the quarter and $225 billion for the last 12 months. The firm's private wealth business has grown significantly, with AUM of nearly $290 billion, up 15% year-over-year. The institutional business has also seen strong growth, with a 64% increase over the last 5 years.

Private Credit and Real Estate Performance

The firm's private credit platform has performed well, with non-investment grade strategies generating 10% returns annually, net of fees, since inception. The investment-grade focused private credit platform, BXCI, has experienced zero realized losses to date. Blackstone's real estate business is showing signs of improvement, with cost of capital coming down and spreads narrowing.

Valuation and Outlook

With a P/E Ratio of 44.97 and an ROE of 34.33%, the market is pricing in strong growth prospects for Blackstone. The firm's focus on long-term leases, credit tenants, and prudent investments positions it well for future growth. Analysts estimate next year's revenue growth at 25.9%, indicating a positive outlook for the company. The dividend yield of 2.74% provides a relatively stable return for investors.

Management's Insights and Industry Trends

According to Jonathan Gray, Blackstone is well-positioned to benefit from the recovery underway in real estate markets. The company's leasing pipeline globally doubled in Q3 compared to Q2, indicating strong demand. Gray also noted that loan-to-value in direct lending was 38%, half of what it was in 2006-2007, and spreads are in line with historic levels, suggesting a healthy credit environment.

3. NewsRoom

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Big Yellow Group terminates deal talks with Blackstone

Dec -04

Source: reuters.com

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Blackstone CTO says data leaks keep him up at night

Dec -03

Source: reuters.com

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I Am Betting Big On This Near-Perfect 8%-Yielding Income Machine For Early Retirement

Dec -02

Source: seekingalpha.com

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Blackstone mulls abandoning bid for UK's Big Yellow Group, Sky News reports

Dec -01

Source: reuters.com

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The Dark Side Of High-Yield CEFs And Covered Call ETFs

Nov -30

Source: seekingalpha.com

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A Rare Buying Opportunity: Blue-Chip 11-12% Yields Too Cheap To Ignore

Nov -24

Source: seekingalpha.com

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Blackstone to Present at the Goldman Sachs 2025 US Financial Services Conference

Nov -20

Source: businesswire.com

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The More They Drop, The More I Load Up

Nov -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.48%)

6. Segments

Private Equity

Expected Growth: 14.1%

Blackstone's Private Equity segment is driven by strong deal making capabilities, increasing investments in real assets, and growing demand for alternative investments, positioning it for long-term growth.

Real Estate

Expected Growth: 14.1%

Blackstone's Real Estate segment is poised for growth driven by increasing globalization, urbanization, and the growing demand for logistics and e-commerce facilities, as well as the ongoing trend of companies outsourcing their real estate needs.

Credit & Insurance

Expected Growth: 8.5%

Blackstone's Credit & Insurance segment is expected to grow driven by increasing demand for lending and insurance services from individuals and businesses, as well as the firm's ability to leverage its scale and expertise to offer competitive products.

Multi-Asset Investing

Expected Growth: 10.2%

Blackstone’s Multi-Asset Investing segment growth is driven by increasing demand for diversified solutions across public and private markets, with institutional investors seeking to optimize their portfolios and manage risk.

Impact of Consolidation

Expected Growth: 10.5%

Blackstone's strategic consolidation efforts drive operational efficiency and profitability, leveraging cost synergies, and enhancing revenue growth through increased scale and diversified offerings.

Unallocated Interest and Dividend Revenue

Expected Growth: 10.5%

Strong private equity performance, robust dividend income, and a diversified investment portfolio drive Unallocated Interest and Dividend Revenue growth at Blackstone Inc.

Unrealized Performance Revenues

Expected Growth: 12.5%

Strong pipeline of pending investments, particularly in private equity and real assets, drives growth. Blackstone’s scale and diversification also contribute to its growth momentum.

Unallocated Unrealized Principal Investment (Income) Loss

Expected Growth: 15.6%

Blackstone's unearned income is driven by its diversified portfolio, strong investment pipeline, and increasing AUM. The company's expertise in private equity, real assets, and credit investments positions it for long-term growth.

Intersegment Eliminations

Expected Growth: 10.2%

Consolidation of intercompany transactions and balances enables Blackstone Inc. to streamline operations, enhance financial transparency and reduce complexity, driving growth.

Unallocated Transaction-Related Charges

Expected Growth: 5.2%

Blackstone's unallocated transaction-related charges are driven by the growth of its alternative investment products, increasing demand for asset management services, and expansion into new markets. These drivers are expected to contribute to a forecasted CAGR of 5.2%.

7. Detailed Products

Private Equity

Blackstone's private equity segment provides investment management services to institutional investors, corporations, and individuals. The segment focuses on leveraged buyouts, growth equity investments, and opportunistic investments in various industries.

Real Estate

Blackstone's real estate segment provides a range of investment management services, including direct property investments, fund management, and investment in real estate securities. The segment focuses on various property types, including office buildings, apartments, and logistics facilities.

Credit

Blackstone's credit segment provides a range of credit-related investment management services, including leveraged finance, distressed debt, and real estate debt. The segment focuses on providing financing solutions to companies and investing in credit assets.

Hedge Funds

Blackstone's hedge funds segment provides a range of hedge fund investment strategies, including equity, fixed income, and event-driven strategies. The segment focuses on generating absolute returns through a range of investment approaches.

Infrastructure

Blackstone's infrastructure segment provides investment management services focused on infrastructure assets, including energy, transportation, and logistics. The segment focuses on generating long-term returns through investments in infrastructure companies and projects.

Tactical Opportunities

Blackstone's tactical opportunities segment provides investment management services focused on opportunistic investments, including investments in corporate debt, real estate, and other alternative assets. The segment focuses on generating returns through tactical investments in various asset classes.

8. Blackstone Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Blackstone Inc. operates in the financial services industry, specifically in private equity, real estate, and credit. While there are alternative investment firms and financial services providers, the threat of substitutes is moderate. Clients of Blackstone Inc. often seek specific types of investment solutions, and switching to a substitute may require significant changes to their investment strategies.

Bargaining Power Of Customers

Blackstone Inc.'s clients are typically institutional investors, such as pension funds, endowments, and insurance companies. These clients often have large amounts of capital to invest and may have some negotiating power. However, Blackstone Inc.'s reputation, track record, and range of investment products limit the bargaining power of individual customers.

Bargaining Power Of Suppliers

Blackstone Inc. relies on various suppliers, such as investment banks, law firms, and other service providers. However, the company has a large and diversified network of suppliers, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The financial services industry, particularly private equity and real estate, has high barriers to entry. New entrants must have significant capital, expertise, and relationships to compete effectively. Blackstone Inc.'s established brand, experienced team, and extensive network make it difficult for new entrants to compete.

Intensity Of Rivalry

The financial services industry, particularly private equity and real estate, is highly competitive. Blackstone Inc. competes with other large private equity firms, such as KKR, Carlyle Group, and Apollo Global Management. The competition for deals, talent, and investor capital is intense, driving prices, fees, and innovation.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 0.00%
Debt Cost 4.37%
Equity Weight 100.00%
Equity Cost 9.66%
WACC 9.66%
Leverage 0.00%

11. Quality Control: Blackstone Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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BNY Mellon

A-Score: 6.7/10

Value: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

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Ameriprise Financial

A-Score: 5.9/10

Value: 5.1

Growth: 7.8

Quality: 7.8

Yield: 2.0

Momentum: 4.0

Volatility: 8.7

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BlackRock

A-Score: 5.8/10

Value: 2.2

Growth: 5.3

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 9.0

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Blackstone

A-Score: 5.2/10

Value: 0.3

Growth: 4.1

Quality: 7.5

Yield: 7.0

Momentum: 6.0

Volatility: 6.3

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Ares Management

A-Score: 4.9/10

Value: 2.4

Growth: 5.7

Quality: 4.9

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

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KKR

A-Score: 3.9/10

Value: 1.7

Growth: 6.6

Quality: 3.8

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

151.39$

Current Price

151.39$

Potential

-0.00%

Expected Cash-Flows