Blackstone Inc, the global alternative investments company has 1.127 trillion USDs under management.
In all its three main segments private equity, private credit and real estate a large part of Blackstone's investment portfolio is in investments connected directly or indirectly to technology, according to Wolfteam Ltd.'s analysis. Even on its main internet landing page Blackstone is boasting it is 'building the infrastructure of the future by investing in data centers and the energy that powers them, Blackstone is providing the infrastructure to fuel the AI revolution'.
Large part of Blackstone's real estate portfolio holds data centers related real estate properties connected to AI, artificial intelligence and industrial properties such as warehouses, which are connected to the online trade.
The private equity business of Blackstone is tilted towards technology by buying out outright technology businesses or adjacent to technology businesses as indirect play on technology. Examples of businesses Blackstone has bought for the funds that it manages that are adjacent to technology are energy producing businesses as energy is vital for the functioning of the artificial intelligence, AI data centers which are the bedrock of the current fourth industrial artificial intelligence, AI revolution.
Via its private credit investment vehicles Blackstone gives out many loans to mainly mid-sized and even smaller technology firms, thus again supporting the current artificial intelligence, AI boom
Blackstone investments' focus on technology is one of the main reason Blackstone's private equity business' returns have been able to beat the average S&P 500's returns in the last 10 years, according to unofficial data.
Blackstone's artificial intelligence, AI related technology investments, which are large part of its overall fee earning 830.7 billion USDs portfolio is one of the main reasons Blackstone sports market capitalization of 176.10 billion USDs.
Blackstone's strong investments in data centers and online trade warehousing will ensure that Blackstone can unlock tens of billions of USDs of additional value in the near future, according to Wolfteam Ltd.'s projections and estimates.
Below are Blackstone's fourth quarter, full year 2024 earnings, growing strongly on the back of technolgy investments:
$ in thousands, except per share data) (unaudited) 4Q'23 4Q'24 FY'23 FY'24
Revenues
Management and Advisory Fees, Net 1,648,132$ 1,879,581$ 6,671,260$ 7,188,936$
Incentive Fees 240,417 404,744 695,171 964,178
Performance Allocations (362,474) 507,150 532,173 3,829,153
Principal Investments (298,549) 36,989 (299,331) 712,849
Interest and Dividend Revenue 168,374 98,547 516,497 411,159
Other (110,880) 155,554 (92,929) 123,693
Total Revenues 1,285,020$ 3,082,565$ 8,022,841$ 13,229,968$
Expenses
Compensation and Benefits 543,078 1,039,203 3,312,970 4,994,053
General, Administrative and Other 289,691 339,086 1,117,305 1,361,909
Interest Expense 108,732 115,532 431,868 443,688
Fund Expenses 69 6,296 118,987 19,676
Total Expenses 941,570$ 1,500,117$ 4,981,130$ 6,819,326$
Other Income (Loss) (188,370)$ (21,171)$ (83,997)$ 48,838$
Income Before Provision for Taxes 155,080$ 1,561,277$ 2,957,714$ 6,459,480$
Provision for Taxes 45,957 232,451 513,461 1,021,671
Net Income 109,123$ 1,328,826$ 2,444,253$ 5,437,809$
Redeemable NCI in Consolidated Entities (163,929) 306 (245,518) (61,289)
Non-Redeemable NCI in Consolidated Entities 121,252 624,647 1,298,891 2,722,590
Net Income Attributable to Blackstone Inc. (''BX'') 151,800$ 703,873$ 1,390,880$ 2,776,508$
Net Income Per Share of Common Stock, Basic 0.20$ 0.92$ 1.84$ 3.62$
Net Income Per Share of Common Stock, Diluted 0.20$ 0.92$ 1.84$ 3.62
Here is more on Blackstone's capital metrics:
Blackstone
CAPITAL METRICS – ADDITIONAL DETAIL
Corporate Private Equity also includes Life Sciences, Growth, BTAS, and BXPE. AUM and related capital metrics are reported in the segment where the assets are
managed.($ in millions) 4Q'24 FY'24 4Q'24 FY'24 4Q'24 FY'24
Real Estate 8,094$ 27,941$ 7,015$ 25,280$ 5,457$ 22,164$
Opportunistic 1,491 5,030 4,676 13,799 1,026 3,836
Core+ 2,962 11,555 686 3,705 2,254 10,152
Debt Strategies 3,642 11,356 1,653 7,777 2,177 8,177
Private Equity 11,617 41,285 12,133 42,191 10,566 28,931
Corporate Private Equity 5,909 19,529 3,845 19,514 6,376 15,565
Tactical Opportunities 1,117 4,820 1,079 5,998 963 3,605
Secondaries 1,774 6,693 4,328 11,380 2,587 7,939
Infrastructure 2,818 10,243 2,880 5,299 640 1,821
Credit & Insurance 34,181 91,200 21,633 63,783 8,698 33,319
Multi-Asset Investing 3,607 11,032 793 2,609 1,179 2,729
Total Blackstone 57,500$ 171,459$ 41,574$ 133,863$ 25,900$ 87,142
ASSETS UNDER MANAGEMENT
Total AUM
($ in billions)
Fee-Earning AUM
($ in billions)
Perpetual Capital AUM
($ in billions)
Private EquityReal Estate Credit & Insurance Multi-Asset Investing
▪ Total AUM increased to $1,127.2 billion, up 8% year-over-year, with $57.5 billion of inflows in the quarter
and $171.5 billion for the year.
▪ Fee-Earning AUM of $830.7 billion was up 9% year-over-year, with $39.2 billion of inflows in the quarter
and $155.4 billion for the year.
▪ Perpetual Capital AUM reached $444.8 billion, up 12% year-over-year.
– Fee-Earning Perpetual Capital AUM increased to $380.1 billion, representing 46% of Fee-Earning AUM.
PRIVATE EQUITY
▪ Total AUM: Increased 12% to $352.2 billion with inflows of $11.6 billion in the quarter and $41.3 billion for the year.
– Inflows in the quarter included $2.8 billion in Infrastructure, $1.9 billion in Life Sciences, $1.8 billion in
Secondaries, $1.1 billion in Tactical Opportunities, and $931 million for our energy transition fund.
– $1.3 billion of capital raised in BXPE, including amounts allocated to other strategies.
– On January 2, launched Blackstone Infrastructure Strategies (“BXINFRA”), a continuously offered infrastructure
strategy which raised over $1.0 billion.
▪ Capital Deployed: $12.1 billion in the quarter, including AirTrunk, Adevinta, and Sediver, and $42.2 billion for the
year; committed an additional $9.9 billion in the quarter, including Jersey Mike’s and Inhabit.
▪ Realizations: $10.6 billion in the quarter, including Alinamin, Cliff Swallow, and International Gemological Institute,
and $28.9 billion for the year.
▪ Fee Related Performance Revenues: $1.2 billion in the quarter driven by the three-year crystallization in
Infrastructure and the first significant crystallization in BXPE.% Change % Change
($ in thousands) 4Q'23 4Q'24 vs. 4Q'23 FY'23 FY'24 vs. FY'23
Management and Advisory Fees, Net 500,303$ 629,402$ 26% 2,007,592$ 2,198,280$ 9%
Fee Related Performance Revenues - 1,170,857 n/m - 1,185,428 n/m
Fee Related Compensation (137,082) (674,551) 392% (619,678) (1,164,237) 88%
Other Operating Expenses (90,309) (117,178) 30% (329,221) (391,309) 19%
Fee Related Earnings 272,912$ 1,008,530$ 270% 1,058,693$ 1,828,162$ 73%
Realized Performance Revenues 322,701 344,133 7% 1,343,865 1,392,447 4%
Realized Performance Compensation (146,184) (138,449) (5)% (584,154) (633,491) 8%
Realized Principal Investment Income 7,662 15,174 98% 76,220 52,356 (31)%
Net Realizations 184,179 220,858 20% 835,931 811,312 (3)%
Segment Distributable Earnings 457,091$ 1,229,388$ 169% 1,894,624$ 2,639,474$ 39%
Segment Revenues 830,666$ 2,159,566$ 160% 3,427,677$ 4,828,511$ 41%
Total AUM 314,391,397$ 352,168,635$ 12% 314,391,397$ 352,168,635$ 12%
Fee-Earning AUM 176,997,265$ 212,182,896$ 20% 176,997,265$ 212,182,896$ 20