Private Equity Firms And Long-Term Capital

 

Most of Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and other leading private equity firms or alternative asset management firms have invested in life insurance companies, pension companies and other annuities businesses.

The main goal is to access long-term capital via the annuity payments insurance and pension insurance companies receive as part of their regular business.  Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and other alternative asset management firms call this kind of long-term capital perpetual capital. And perpetual capital constitutes between 30 % to 40 % of Blackstone, KKR, Apollo and Carlyle's total assets under management according to the analysis of Blackstone, KKR, Apollo and Carlyle's financial statements by Wolfteam Ltd.

Via the long-term perpetual capital Blackstone, KKR, Apollo and Carlyle and other alternative asset managers are not constrained so much by funds' maturities and they can invest the perpetual capital for the long-term - above 7 years. In this way Blackstone, KKR, Apollo and Carlyle have more time for operational improvements and the private equity buyouts and also the real estate assets and private credit lending and thus they can achieve even higher S&P 500 beating returns and thus maximize their value.

Due to large part of the high share of perpetual long-term capital in Blackstone, KKR, Apollo and Carlyle's assets under management Blackstone, KKR, Apollo and Carlyle are all undervalued. Blackstone, KKR, Apollo and Carlyle's intrinsic value is 3 times higher on average, according to Wolfteam Ltd.'s projections and estimates. Thus if managed right Blackstone, KKR, Apollo and Carlyle can increase their market capitalization by more than threefold and unlock hundreds of billions of USD of value for their shareholders, employees and other stakeholders.

Artificial Intelligence, AI And Private Equity Firms

 

Blackstone, KKR, Apollo, Carlyle, Ares, CVC and other leading private equity, real estate and private credit or alternative asset managements' firms main investment theme is artificial intelligence, AI, according to public data and Wolfteam Ltd.'s estimates.

Via private equity buyouts the leading alternative asset managers buy out, invest in mid sized and smaller technology firms active in artificial intelligence, AI, which they reform and sell down the road in 7-10 years to achieve usually S&P 500 market beating returns. Via their real estate business leading alternative asset managers invest in artificial intelligence, AI data centers and also online merchandise distribution centers, which utilize heavily artificial intelligence, AI. Via their private credit investment management business the alternative asset managers give out credits with lending rates from 7 % to 14 %, where traditional money center banks and regional lenders do not thread due to either regulatory rules or risky business perspectives.

Artificial intelligence, AI is the fourth industrial revolution we are living currently. Alphabet, Microsoft, Meta, Amazon, Apple, Tesla and NVIDIA or the largest artificial intelligence, AI hyperscaler companies are undervalued and by extension artificial intelligence, AI is undervalued, according to Wolfteam Ltd.'s projections and estimates. Artificial intelligence, AI still remains to transcend, penetrate more deeply many sectors of the economy and unlock tens of trillions of USDs of addition value in the next 10 years.

By extension the leading private equity firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. and many mid sized and smaller alternative asset managers are undervalued, in Wolfteam Ltd.'s view.

NVIDIA's Market Capitalization Could Reach 10 trillion USD By End 2027

NVIDIA, the computer chips and Graphical Processing Units, GPUs producer is sill undervalued, according to Wolfteam Ltd.'s projections and estimates. NVIDIA's intrinsic value is 10 trillion USDs, according to Wolfteam Ltd.'s projections and estimates. That value can be realized by end 2025.

The fourth industrial revolution or the artificial intelligence, AI is in full motion, even in its beginning stage and NVIDIA is the poster company of the AI revolution.

AI will penetrate every sector of the economy and the demand for NVIDIA's GPU chips will only grow from here.

A risk to the above Wolfteam  Ltd.'s NVIDIA valuation is the emergence of technologically superior competitor that produces more powerful GPU computer chips that power personal computers and data centers. In the short-term this risk is not large.

So NVIDIA remains undervalued. 

 

Apollo Buys Pension Insurance Corporation For 7.78 Billion USD. An Analysis

Athora, backed by the alternative asset manager Apollo Global Management agreed to buy the defined benefit pension schemes UK provider Pension Insurance Corporation.

https://www.reuters.com/markets/europe/luxembourgs-reinet-advanced-talks-sale-uk-insurer-stake-athora-2025-07-03/ 

PIC had a portfolio worth nearly 60 billion pounds as of December, with over 390,000 policyholders. Upon deal close, it will constitute 45% of Athora's total AuM.

Athora has 54 billion USDs of assets owned by Apollo Global Management.

With the deal Apollo aims to increase its insurance assets which constitute long-term capital. Apollo's total long-term or so called perpetual capital currently stands at 470 billion USDs from the total 785 billion USDs of assets Apollo manages.

The Pension Insurance Corporation deal will add nearly 60 billion GBPs of new long-term asset under management for Apollo.

Long-term assets can be invested for longer periods and thus allowing for alternative asset managers to compound investments for longer and achieve higher returns on invested capital.

The Pension Insurance Corporation deals is accretive by 15 % increase for Apollo Global Management's earnings per share, according to Wolfteam Ltd.'s projections and estimates.

Apollo Global Management's intrinsic value is 250 billion USDs, according to Wolfteam Ltd.'s projections and estimates. 

Most Magnificent 7 AI Stocks Could Be Valued Using Dividend Discount Model

 

Apple, Alphabet, Microsoft, Meta, NVIDIA from the Magnificent 7 distribute regulat dividends, while their dividend yield being relatively low from 0.7 % downward.

The rest 2 of the Magnificent 7, namely Tesla and Amazon have never distributed dividends.

Technology stocks, also the hyperscalers  Apple, Alphabet, Microsoft, Meta have been notoriously difficult to value because they were either unprofitable for long periods of time as public companies or do not distribute dividends. So some sort of multiples methods valuation was used by Wall Street research analysts to value Apple, Alphabet, Microsoft, Meta, NVIDIA, Tesla and NVIDIA, the Magnificent 7.

But now as Apple, Alphabet, Microsoft, Meta, NVIDIA distribute regular dividends, the dividend discount model could be utilized by Wall Street equity research analysts.

The Dividend Discount Model gives an unique view on the company be it being heavily reliant on the equity analysts' assumptions.

But Dividend Discount Model gives a good basis to value Apple, Alphabet, Microsoft, Meta, NVIDIA, according to Wolfteam Ltd.'s projections and estimates.

 

Private Equity Firms Are Leveraged On AI

 

Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc., most of the leading alternative asset managers active predominantly in private equity, but also in real estate, private credit and secondaries are leveraged on artificial intelligence, AI and technology in general.

Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. have done numerous private equity leveraged buyouts whereby they have purchased mid market technology firms by putting only the equity needed which is normally 30-40 % of the deal size and borrowing the rest on debt markets via high yield bonds and debt. In this way Blackstone, KKR, Apollo, Carlyle, Ares, CVC, etc. become leveraged, on loan that is investors in artificial intelligence related companies, namely by investing in beside technology companies also in AI data centers, infrastructure and the energy that powers artificial intelligence, AI.

In addition by giving out credits with 7 % to 14 % interest to technology companies as part of their private credit businesses on very little underpinning equity, Blackstone, KKR, Apollo, Carlyle, Ares, CVC additionally add to their leverage to artificial intelligence, AI and the technology sector in general.  

In this way Blackstone, KKR, Apollo, Carlyle, Ares, CVC and other global leading private equity companies should exhibit returns that magnify both the wins and losses of both mid market technology companies and the largest hyperscalers like Alphabet, Microsoft, Meta, Amazon.

As we are living in the fourth industrial revolution, namely powered by AI, Blackstone, KKR, Apollo, Carlyle, Ares, CVC are undervalued on AI, according to Wolfteam Ltd.'s projections and estimates. 

Quantum Computing Stocks Could Lift Off

 

Quantum computing stocks like Quantum Computing Inc, D-Wave Quantum Inc and Rigetti Computing Inc, etc. could rise substantially.

On one hand the stock market is going higher driven by the artificial intelligence, AI trade and quantum computing is adjacent investment thesis to artificial intelligence.

On the other hand, The Defense Advanced Research Projects Agency has commissioned a study for quantum computing commercial viability. Which in one sense means the US government is throwing its weight behind quantum computing.

In addition, artificial intelligence, AI commands more and more computing resources. Quantum computing is one way for these resources to be created and multiplied.

In short, quantum computing stocks' market capitalization could rise multiple fold, according to Wolfteam Ltd.'s projections and estimates. 

With Its Leveraged Investments In AI, Blackstone Is Set To Outperform The General Stock Market

 

Blackstone Inc, the global leader in alternative asset management has invested heavily in AI by investing in data centers, infrastructure for data centers, infrastructure for cloud computing, online merchandising and energy producing assets.

Via its investments in private equity Blackstone has invested in a leveraged way in artificial intelligence, AI by investing in the equity portion of private equity buyout deals and borrowing in debt markets the rest needed to fund the private equity buyout deals. Thus via the leveraged nature of its investments in private equity buyouts of mid market technology companies and technology infrastructure, Blackstone's investments are leveraged on the performance of artificial intelligence, AI stocks.

In short, Blackstone is set to outperform the general stock market, as long as the AI trade continues to boom, according to Wolfteam Ltd.'s projections and estimates. 

Private Equity Companies Are Lagging The Market And Are Undervalued

 

The world's biggest private equity, real estate and private credit investment management firms Blackstone, KKR, Apollo, Carlyle, Ares, CVC etc. are lagging the global stock markets recovery. Furthermore, Blackstone, KKR, Apollo, Carlyle, Ares, CVC are undervalued according to Wolfteam Ltd.'s projections and estimates.

Most of Blackstone, KKR, Apollo, Carlyle, Ares, CVC's private equity, private credit and real estate investments are tied to mid market and smaller technology companies active in artificial intelligence, AI. Large part of Blackstone, KKR, Apollo, Carlyle, Ares, CVC's investment flows go indirectly toward the Magnificent 7 AI technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla via investments in technology data centers and other AI infrastructure.

While  Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla's stocks prices outside Tesla have recovered, the stock market capitalization of Blackstone, KKR, Apollo, Carlyle, Ares, CVC remain around 25 % below their recent peaks.

The artificial intelligence, AI trade is in full swing and it makes no sense for Blackstone, KKR, Apollo, Carlyle, Ares, CVC, which have invested heavily in artificial intelligence, AI to be left behind in terms of stock market capitalization recovery, in Wolfteam Ltd.'s view.

If anything, due to the leveraged private equity buyout nature of their investments Blackstone, KKR, Apollo, Carlyle, Ares, CVC should recover even quicker than the  Magnificent 7 AI technology companies, namely Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and Tesla or the general stock market.

Ares 1st Quarter 2025 Earnings Analysis

 

Ares Management Corp, Ares reported 47.2 million USD in net income on 1.1 billion USD in revenues in 1Q 2025 compared to 73 million USD in net income on 707.3 million USD in revenues in 1Q 2024.

Ares' assets under management stand at 545.9 billion USDs. 359.1 billion USDs of which are in private credit, 124.2 billion are in real estate, 24.7 billion USDs are in private equity, 31.3 billion USDs are in secondaries and 6.6 billion USDs are in other businesses.

Private credit is in a boom phase globally and Ares' 359.1 billion USDs of assets in private credit put it in the top 3 worldwide in private credit assets managers. Mid capitalization technology companies borrow at interest rates of 7% to 14 % which feeds the private credit business. Artificial intelligence, AI continues to be a dominant investment theme for Ares.

Ares market capitalization stands at 54.13 billion USDs. Ares Management is undervalued. Ares' intrinsic worth is 120 billion USD, according to Wolfteam Ltd.'s projections and estimates.

Below is Ares Management 1st Quarter 2025 earnings statement:

$ in thousands, except share data 2025 2024
Revenues
Management fees $816,987 $687,692
Carried interest allocation 160,008 (32,478)
Incentive fees 32,048 8,667
Principal investment income 21,998 7,050
Administrative, transaction and other fees 57,764 36,432
Total revenues 1,088,805 707,363
Expenses
Compensation and benefits 657,125 412,951
Performance related compensation 122,633 (50,532)
General, administrative and other expenses 227,914 170,928
Expenses of Consolidated Funds 6,656 5,146
Total expenses 1,014,328 538,493
Other income (expense)
Net realized and unrealized gains on investments 268 10,516
Interest and dividend income 17,656 5,382
Interest expense (36,387) (37,824)
Other income (expense), net (10,714) 270
Net realized and unrealized gains on investments of Consolidated Funds 88,406 34,424
Interest and other income of Consolidated Funds 160,072 257,276
Interest expense of Consolidated Funds (152,740) (207,866)
Total other income, net 66,561 62,178
Income before taxes 141,038 231,048
Income tax expense 17,537 27,233
Net income 123,501 203,815
Less: Net income attributable to non-controlling interests in Consolidated Funds 55,977 66,716
Net income attributable to Ares Operating Group entities 67,524 137,099
Less: Net income attributable to redeemable interest in Ares Operating Group entities 316 73
Less: Net income attributable to non-controlling interests in Ares Operating Group entities 20,038 63,999
Net income attributable to Ares Management Corporation 47,170 73,027
Less: Series B mandatory convertible preferred stock dividends declared 25,313 —
Net income attributable to Ares Management Corporation Class A and non-voting common stockholders $21,857 $73,027
Net income per share of Class A and non-voting common stock:
Basic $0.00 $0.33
Diluted $0.00 $0.33
Weighted-average shares of Class A and non-voting common stock:
Basic 209,350,849 192,622,609
Diluted 209,350,849 192,622,609 

 

The AI Trade Is In Full Swing

 

Artificial intelligence, AI is going to rip stock markets higher from current levels, according to Wolfteam Ltd.'s projections and estimates.

We are on the cusp of the fourth industrial revolution and AI will create further trillions of USDs of value.

Carlyle 1st Quarter 2025 Earnings Analysis

 

Carlyle Group Inc, the global alternative investment management firm reported 130 million USDs in net income on 973.1 million USDs in revenues in the 1st Quarter 2025 compared to 65.6 million USDs in net income on 688.4 million USDs in revenue in the 1st Quarter 2024. So Carlyle's results show a marked improvement from an year ago.

Carlyle has 453 billion USDs of assets under management, with 314 billion USDs in fee earning assets under management. Carlyle sports 99 billion USDs of perpetual capital assets under management. The large part of perpetual capital under management helps Carlyle invest for the long-term and achieve higher capital appreciation in the long-term.

164 billion USDs of Carlyle's assets under management are in private equity, 199 billion USDs are in global credit, 89 billion are in Carlyle Alpinvest, where the perpetual capital management lies.

Evident from the size and composition of its asset mix Carlyle is one of the leading alternative asset managers in private equity and private credit. Private credit is currently in a boom phase globally and Carlyle's leading position in private credit ensures Carlyle would be able to unlock tens of billions of USDs of additional value.

Carlyle's market capitalization is 16.68 billion USDs. Carlyle's intrinsic value is 52 billion USDs, according to Wolfteam Ltd.'s projections and estimates.

Below is Caryle's 1st Quarter 2025 earnings statement:

Dollars in millions, except per share amounts) 1Q'24 1Q'25 LTM 1Q'24 LTM 1Q'25
REVENUES
Fund management fees $ 523.6 $ 586.1 $ 2,066.0 $ 2,250.6
Incentive fees 26.2 43.2 100.1 150.5
Investment income (loss), including performance allocations (83.9) 159.8 (211.6) 2,498.1
Revenue from consolidated entities 164.9 133.4 613.1 600.1
All other revenues 57.6 50.6 225.7 211.2
Total Revenues 688.4 973.1 2,793.3 5,710.5
EXPENSES
Cash-based compensation and benefits 221.9 218.4 985.4 872.0
Equity-based compensation 108.3 103.5 303.0 463.1
Performance allocations and incentive fee related compensation (72.8) 171.4 925.2 1,605.7
General, administrative and other expenses 147.7 173.6 640.6 691.5
Expenses from consolidated entities 124.6 113.5 450.0 553.8
Interest and other non-operating expenses 31.0 27.8 125.2 117.5
Total Expenses 560.7 808.2 3,429.4 4,303.6
Net investment income (loss) of consolidated funds (7.0) 6.1 (3.7) 37.1
Income (loss) before provision for income taxes1 120.7 171.0 (639.8) 1,444.0
Provision (benefit) for income taxes 21.9 12.4 (116.6) 293.1
Net income (loss) 98.8 158.6 (523.2) 1,150.9
Net income attributable to non-controlling interests 33.2 28.6 120.3 66.1
Net income (loss) attributable to The Carlyle Group Inc. Common Stockholders $ 65.6 $ 130.0 $ (643.5) $ 1,084.8
Net income (loss) attributable to The Carlyle Group Inc. per common share:
Basic $ 0.18 $ 0.36 $ (1.78) $ 3.03
Diluted $ 0.18 $ 0.35 $ (1.78) $ 2.95
Margin on income (loss) before provision for taxes2 17.5 % 17.6 % (22.9) % 25.3 %
Effective tax rate 18.1 % 7.3 % 18.2 % 20.3 %
Net performance revenues3 $ (84.2) $ 51.5 $ (1,331.6) $ 789.9

Apollo 1st Quarter 2025 Earnings Analysis

 

Apollo Global Management reported 418 million USD in net earnings on 5.55 billion USDs in revenues in the 1st Quarter 2025 compared to 1.41 billion USD in net income on 7.04 billion USD in revenues in 1st Quarter 2024.

Apollo Global Management's 785 billion USDs in assets under management make the company one of the leading alternative asset managers in the world. 641 billion USDs of Apollo's assets under management are in Credit or Private Credit, while 144 billion USDs are in Equity or Private Equity. Private Credit is a huge growth area globally currently and Apollo has arguably the highest assets under management in Private Credit in the world, which positions Apollo for excellent future growth.

Perpetual Capital of 470 billion USDs mainly via Athene Retirement Solutions insures Apollo has a large part of its assets available for long-term investing. Long-term investing allows for stable investment strategies, which lead to higher capital appreciation in the long-term, which unlocks further value for Apollo.

Apollo's market capitalization is 79.27 billion USDs. Apollo Global Management's intrinsic value is 230 billion USDs according to Wolfteam Ltd.'s projections and estimates.

Below is Apollo's 1st Quarter 2025 earnings statement:

In millions, except per share amounts) 1Q'24 4Q'24 1Q'25
Revenues
Asset Management
Management fees $438 $523 $508
Advisory and transaction fees, net 169 205 195
Investment income (loss) 402 395 303
Incentive fees 26 42 40
Retirement Services
Premiums 101 155 127
Product charges 238 260 265
Net investment income 3,576 4,237 4,341
Investment related gains (losses) 1,677 (1,037) (828)
Revenues of consolidated variable interest entities 411 493 592
Other revenues 2 10 5
Total Revenues 7,040 5,283 5,548
Expenses
Asset Management
Compensation and benefits (667) (732) (745)
Interest expense (51) (67) (60)
General, administrative and other (240) (285) (308)
Retirement Services
Interest sensitive contract benefits (2,884) (1,642) (1,494)
Future policy and other policy benefits (543) (623) (541)
Market risk benefits remeasurement gains (losses) 154 456 (385)
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired (207) (263) (267)
Policy and other operating expenses (453) (535) (542)
Total Expenses (4,891) (3,691) (4,342)
Other Income (Loss) – Asset Management
Net gains (losses) from investment activities 39 25 (18)
Net gains (losses) from investment activities of consolidated variable interest entities 25 20 211
Other income (loss), net (26) 87 (218)
Total Other Income (Loss) 38 132 (25)
Income (loss) before income tax (provision) benefit 2,187 1,724 1,181
Income tax (provision) benefit (422) (62) (243)
Net income (loss) 1,765 1,662 938
Net (income) loss attributable to non-controlling interests (338) (176) (496)
Net income (loss) attributable to Apollo Global Management, Inc. 1,427 1,486 442
Preferred stock dividends (24) (24) (24)
Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $1,403 $1,462 $418
Earnings (Loss) per share
Net income (loss) attributable to Common Stockholders - Basic $2.31 $2.42 $0.68
Net income (loss) attributable to Common Stockholders - Diluted $2.28 $2.39 $0.68
Weighted average shares outstanding - Basic 588 584 587
Weighted average shares outstanding - Diluted 605 603 593
 

 

US And China Will Reach A Trade Deal

 

USA and China will reach a trade deal, according to Wolfteam Ltd.'s projections and estimates.

It is already clear that tariffs are a negotiating tactic on the part of the US Presidential administration, so that the US can extract benefits from its trading partners.

The end goal is a deal, from the position of strength.

With China, the US is targeting mainly the rare earths China exports which are vital for so many products from iPhones, Macs to cars, refrigerators, other machinery, etc.

So a deal between USA and China will be and stock markets will have a new reason to go higher. 

KKR 1 Quarter 2025 Earnings Analysis

KKR & Co Inc reported a rare 186 million USD net loss in 1Q 2025, compared to a profit of 682 million USD in 1Q 2024.

1Q 2025 revenue was 3.11 billion USD compared to 9.66 billion USD in 1Q 2024.

Fee Related Earnings (“FRE”) of $823 million ($0.92/adj. share) in the quarter, up 23% year-
over-year
• FRE was $3.4 billion in the LTM ($3.82/adj. share), up 37% year-over-year

Adjusted Net Income (“ANI”) of $1.0 billion ($1.15/adj. share) in the quarter, up 20% year-
over-year
• ANI was $4.4 billion in the LTM ($4.88/adj. share), up 37% year-over-year

KKR has 664 billion USDs assets under management with 526 billion USDs in fee paying assets under management. 

New Capital Raised of $31 billion in the quarter and $114 billion in the LTM
• Capital Invested of $19 billion in the quarter and $88 billion in the LTM 

KKR's main investment theme is artificial intelligence, AI infrastructure and the related data centers infrastructure and energy producers. KKR also heavily invests in infrastructure assets related to online merchandising and also large part of KKR's private equity and private credit investments go into technology companies.

KKR's market capitalization is currently 109.91 billion USD.

KKR's intrinsic value is 270 billion USDs, according to Wolfteam Ltd.'s projections and estimates.

Here is KKR's 1Q 2025 earnings statement: 

$ in thousands, except per share data) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM
Revenues
Asset Management and Strategic Holdings $ 1,956,468 $ 2,045,915 $ 6,637,740 $ 7,301,693
Insurance 7,700,270 1,064,268 14,390,828 8,030,450
Total Revenues $ 9,656,738 $ 3,110,183 $ 21,028,568 $ 15,332,143
Expenses
Asset Management and Strategic Holdings $ 1,617,969 $ 1,667,900 $ 4,969,438 $ 5,809,685
Insurance 7,694,975 2,163,055 13,842,028 9,694,186
Total Expenses $ 9,312,944 $ 3,830,955 $ 18,811,466 $ 15,503,871
Total Investment Income (Loss) - Asset Management and Strategic Holdings $ 1,019,257 $ 1,491,839 $ 5,292,123 $ 5,440,177
Income Tax Expense (Benefit) 269,201 86,569 1,317,977 771,764
Redeemable Noncontrolling Interests 32,678 8,494 34,576 48,965
Noncontrolling Interests 378,958 861,928 2,082,191 2,239,613
Preferred Stock Dividends — — 34,497 —
Net Income (Loss) - KKR Common Stockholders $ 682,214 $ (185,924) $ 4,039,984 $ 2,208,107
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock
Basic $ 0.77 $ (0.22) $ 4.63 $ 2.47
Diluted $ 0.74 $ (0.22) $ 4.46 $ 2.32
Weighted Average Shares of Common Stock Outstanding
Basic 885,005,824 888,246,698 873,421,040 887,826,075
Diluted 925,141,166 888,246,698 914,564,951 946,906,375 

Blackstone 1 Quarter 2025 Earnings Analysis

 

Blackstone Inc. reported 615 million USD of net income in 1Q 2025 compared to 847 million USD of net income in 1Q 2024.

Blackstone, with 1.1675 trillion USD of assets under management with fee earning 860.1 billion USDs and of perpetual capital of 464.4 billion USDs goes on delivering excellent investment performance.

Blackstone investment strategy is focused on artificial intelligence, AI where Blackstone provides financing for data centers via infrastructure and computer servers and lends money to and invest via its private equity business via leveraged buyouts of technology companies, mainly mid market but also large capitalization technology giants. Via its private equity asset management business Blackstone purchases infrastructure for online merchandising as well as artificial intelligence, AI server colocation.

Since many technologists, technology entrepreneurs, technology billionaires, Wall Street equity research analysts and other analysts and investors broadly accept we are living in the fourth industrial revolution driven by artificial intelligence, AI Blackstone's AI investment strategy continues to bear fruit by getting above average investment results, according to Wolfteam Ltd.'s projections and estimates.

Blackstone is consistently profitable and pays out a 2.88 % dividend yield, which attracts huge institutional investor base which broadly owns and supports Blackstone' stock.

Blackstone's net profit margin decreased in 1Q 2025 to circa 18 % from circa 23 % in 1Q 2025, but Blackstone remains hugely profitable enterprise. Blackstone's revenue increased to 12.83 billion USDs in the 12 months to 1Q 2025  from 10.33 billion USDs to the twelve months in 1Q 2024. This is driven by increase in the asset management base of Blackstone.

Inflows in 1Q 2025 reached $62 billion — the highest level in nearly three years —'reflecting the deep trust Blackstone has built with  investors over decades.'.

The continued lagged inflows continue to reflect the resiliency of Blackstone's business model and the preciseness of Blackstone's investment strategy to continue to finance the artificial intelligence, AI boom. Of course, in the January approximately 22 % falls of the Nasdaq Composite and technology shares broadly Blackstone lost circa 34 % of its value and is yet to recover.

But the 62 billion USDs of inflows in Blackstone's funds in the first quarter of 2025 reflects investors' trust in Blackstone's investment prowess and the artificial intelligence, AI revolution as a whole.

The intrinsic value of Blackstone is 430 billion USDs, according to Wolfteam Ltd.'s projections and estimates.

Below is Blackstone's 1st Quarter 2025 earnings statement:

$ in thousands, except per share data) (unaudited) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM
Revenues
Management and Advisory Fees, Net 1,727,148$ 1,904,317$ 6,740,093$ 7,366,105$
Incentive Fees 179,341 191,825 731,636 976,662
Performance Allocations 1,098,460 825,251 1,742,951 3,555,944
Principal Investments 540,220 344,255 624,248 516,884
Interest and Dividend Revenue 97,839 97,420 523,851 410,740
Other 44,820 (73,610) (33,955) 5,263
Total Revenues 3,687,828$ 3,289,458$ 10,328,824$ 12,831,598$
Expenses
Compensation and Benefits 1,308,304 1,431,840 3,858,163 5,117,589
General, Administrative and Other 369,950 332,373 1,213,861 1,324,332
Interest Expense 108,203 118,115 435,630 453,600
Fund Expenses 3,950 12,104 74,538 27,830
Total Expenses 1,790,407$ 1,894,432$ 5,582,192$ 6,923,351$
Other Income (Loss) (17,767)$ 57,575$ (167,620)$ 124,180$
Income Before Provision for Taxes 1,879,654$ 1,452,601$ 4,579,012$ 6,032,427$
Provision for Taxes 283,671 243,827 749,457 981,827
Net Income 1,595,983$ 1,208,774$ 3,829,555$ 5,050,600$
Redeemable NCI in Consolidated Entities (39,669) 7,900 (278,487) (13,720)
Non-Redeemable NCI in Consolidated Entities 788,266 586,022 1,955,588 2,520,346
Net Income Attributable to Blackstone Inc. (''BX'') 847,386$ 614,852$ 2,152,454$ 2,543,974$
Net Income Per Share of Common Stock, Basic 1.12$ 0.80$ 2.84$ 3.31$
Net Income Per Share of Common Stock, Diluted 1.11$ 0.80$ 2.84$ 3.31 

The AI Hype Will Go On

 

The artificial intelligence, AI hype will go on for 3-5 years before a really big US stock market correction ensues, according to Wolfteam Ltd.'s projections and estimates.

It is just that the hyper scalers Microsoft, Alphabet, Meta and Amazon are pouring staggering amounts of money in artificial intelligence, AI.

And even if the models are not perfect, jut the sheer amounts of money going into AI will keep this technology vertical going strong for 3-5 years more, barring a government intervention or sudden stop of capital related to a possible credit crunch .