Blackstone’s third-quarter results beat expectations
Blackstone, the world’s largest private equity firm, has reported an increased profit for the third quarter, but a drop in the proportion of earnings that could be returned to shareholders.
The group posted a profit of $779m (£605m) for the third quarter, up from $443m a year earlier.
Read more: Takeover titan and Blackstone boss Steve Schwarzman talks charity, business and life advice
Blackstone’s distributable earnings fell eight per cent year-on-year for the third quarter, but still beat analysts’ estimates.
Blackstone reported a drop in proceeds from asset sales in its private equity business, but this was partially offset by a rise in earnings from its real estate, corporate credit and hedge fund divisions.
Distributable earnings per share were 58 cents, higher than the 53 cents analysts had estimated on average, according to Refinitiv data.
Blackstone said its private equity portfolio appreciated 2.6% in the third quarter, while its opportunistic and core real estate funds rose by 3.8% and 2.3% respectively.
The group raised a record $26bn for its flagship buyout fund during the three months to 30 June, benefitting from a strong fundraising environment driven by institutional investors seeking out higher returns amid low interest rates.
Read more: Blackstone boss donates £150m to Oxford University for AI research
“In the third quarter Blackstone again generated strong results for our investors, who in today’s challenging environment look to our firm as a critical solutions provider,” said founder and chief executive Stephen Schwarzman.
Blackstone’s total assets under management reached a record $554bn during the quarter, up two per cent on the previous three months.