Blackstone (BX) turned in better-than-expected Q4 earnings as assets under management increased to a record level and the firm attracted new capital.
“We now have a record $187B of dry powder capital to take advantage of compelling opportunities in a dislocated environment,” said Chairman and CEO Stephen A. Schwarzman.
Corporate private equity and liquid credit strategies turned in the best performance in the last quarter of 2022, followed by private credit and hedge fund solutions. Its real estate funds struggled, as the company received higher than usual requests for redemption. Blackstone (BX) shares slipped 1.0% in Thursday premarket trading.
Q4 distributable EPS of $1.07 topping the $0.95 consensus, inched up from $1.06 in Q3 and dropped from $1.71 in Q4 2021.
Q4 fee-related earnings of $1.07B, or $0.88 per share, fell from $1.18B, or $0.98 per share, in the previous quarter and from $1.83B, or $1.52 per share, in the year-ago period.
Q4 total net management and advisory fees of $1.64B vs. $1.62B in Q3 and $1.46B in Q4 2021.
Total assets under management of $974.7B at Dec. 31, 2022, vs. Visible Alpha estimate of $964.1B, and $950.9B at Sept. 30; fee-earning AUM of $718.4B vs. $705.9B at Sept. 30.
Q4 inflows of $43.1B, vs. $44.8B in Q3. For the year, inflows totaled $226B.
Undrawn capital available for investment, or dry powder, was $186.6B vs. $182.0B in Q3.
Blackstone’s (BX) investment performance by segment (appreciation/gross returns):
Real Estate — Opportunistic -2.0%; Core -1.5%;
Private Equity — Corporate Private Equity +3.8%; Tactical Opportunities +0.6%; Secondaries -1.8%;
Hedge Fund Solutions — +2.1%;
Credit & Insurance — Private Credit +2.4%; Liquid Credit +3.0%.
Conference call at 9:00 AM ET.
Earlier, Blackstone (BX) non-GAAP EPS of $1.07 beats by $0.12, total segment revenue of $2.34B misses by $300M.