Blackstone Inc, the alternative asset management firm holds tremendous unlocked value, according to Wolfteam Ltd.'s projections and estimates.
When Wall Street equity research analysts build three statement models of balance sheet, income statement and cash flows statement of private equity firms like Blackstone, Wall Street equity research analysts usually put in 0, zero for the return on investment from the private equity, real estate and credit and lending funds giant alternative asset management firms like Blackstone manage.
History has shown that is not entirely true. Blackstone and other private equity fund management firms historically usually do make returns on the private equity, real estate and credit and lending investments they manage for institutional investors and individuals, as well as they do make returns on their proprietary investments as evidenced by Blackstone's third quarter 2024 earnings statement.
$ in thousands, except per share data) (unaudited) 3Q'23 3Q'24 3Q'23 YTD 3Q'24 YTD 3Q'23 LTM 3Q'24 LTM
Revenues
Management and Advisory Fees, Net 1,655,443$ 1,794,894$ 5,023,128$ 5,309,355$ 6,671,566$ 6,957,487$
Incentive Fees 158,801 191,794 454,754 559,434 665,018 799,851
Performance Allocations 390,486 1,569,673 894,647 3,322,003 841,443 2,959,529
Principal Investments 163,653 93,371 (782) 675,860 38,429 377,311
Interest and Dividend Revenue 109,133 109,774 348,123 312,612 450,755 480,986
Other 63,769 (96,312) 17,951 (31,861) (225,331) (142,741)
Total Revenues 2,541,285$ 3,663,194$ 6,737,821$ 10,147,403$ 8,441,880$ 11,432,423$
Expenses
Compensation and Benefits 946,186 1,440,344 2,769,892 3,954,850 3,429,221 4,497,928
General, Administrative and Other 279,186 340,945 827,614 1,022,823 1,119,954 1,312,514
Interest Expense 110,599 111,337 323,136 328,156 423,465 436,888
Fund Expenses 38,934 3,470 118,918 13,380 137,449 13,449
Total Expenses 1,374,905$ 1,896,096$ 4,039,560$ 5,319,209$ 5,110,089$ 6,260,779$
Other Income (Loss) (49,078)$ 42,842$ 104,373$ 70,009$ 73,038$ (118,361)$
Income Before Provision for Taxes 1,117,302$ 1,809,940$ 2,802,634$ 4,898,203$ 3,404,829$ 5,053,283$
Provision for Taxes 196,560 245,303 467,504 789,220 326,358 835,177
Net Income 920,742$ 1,564,637$ 2,335,130$ 4,108,983$ 3,078,471$ 4,218,106$
Redeemable NCI in Consolidated Entities (92,577) (22,184) (81,589) (61,595) (281,179) (225,524)
Non-Redeemable NCI in Consolidated Entities 461,325 805,986 1,177,639 2,097,943 1,562,716 2,219,195
Net Income Attributable to Blackstone Inc. (''BX'') 551,994$ 780,835$ 1,239,080$ 2,072,635$ 1,796,934$ 2,224,435$
Net Income Per Share of Common Stock, Basic 0.73$ 1.02$ 1.64$ 2.71$ 2.39$ 2.91$
Net Income Per Share of Common Stock, Diluted 0.73$ 1.02$ 1.64$ 2.71$ 2.39$ 2.91$
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BLACKSTONE’S THIRD QUARTER 2024 HIGHLIGHTS
▪ Fee Related Earnings (“FRE”) of $1.2 billion ($0.96/share) in the quarter
– FRE was $4.5 billion over the last twelve months (“LTM”) ($3.68/share)
▪ Distributable Earnings (“DE”) of $1.3 billion ($1.01/share) in the quarter
– DE was $5.2 billion over the LTM ($4.06/share)
▪ Net Accrued Performance Revenues of $7.0 billion ($5.72/share)
Financial Measures
▪ Total Assets Under Management (“AUM”) of $1,107.6 billion
– Fee-Earning AUM of $820.5 billion
– Perpetual Capital AUM of $434.7 billion
▪ Inflows of $40.5 billion in the quarter and $166.7 billion over the LTM
▪ Deployment of $34.0 billion in the quarter and $123.4 billion over the LTM
▪ Realizations of $22.7 billion in the quarter and $77.0 billion over the LTM
In addition, Blackstone manages 434.7 billion USDs of so called perpetual capital from the total fee-earning assets under management of 820.5 billion USD and total assets under management of 1 107.6 billion USD. 434.7 billion USDs are so called perpetual capital, because this capital stems from the insurance fees Blackstone collects from its proprietary insurance business line and such capital can be really invested for the long-term. That is, the perpetual capital can be invested for more than 8-10 years which is the usual term the money that Blackstone collects and manages for institutional investors and individuals has to be invested and exited.
Blackstone's intrinsic value is 340 billion USD compared with its current market capitalization of 199. 94 billion USD, according to Wolfteam Ltd.'s projections and estimates
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