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- **Record Growth**: AUM hits $1.24 trillion, up 12% YoY, with $54B quarterly inflows. Distributable earnings surge 48% to $1.9B.
- **Private Credit Resilience**: 10%+ annual returns since 2006, 1/10% realized losses, and 95% senior secured debt.
- **Data Center Dominance**: 20% of BREIT in data centers, driving 9% annualized returns vs. 60% public REIT premium.
- **Defined Contribution Expansion**: New business launch targets $1T U.S. defined contribution market.
- **Real Estate Recovery**: 25% YoY growth in logistics, 38% LTV in direct lending, and 9 months of positive BREIT performance.
- **Multi-Asset Innovation**: 2026 launches for holistic solutions combining credit, real estate, and PE.


**【Management Opening Remarks】**
- Reported GAAP net income of $1.2 billion and distributable earnings of $1.9 billion, up 48% year-over-year. Dividend of $1.29 per share declared.
- Highlighted the firm's 40th anniversary and record AUM of $1.24 trillion, driven by $54 billion in quarterly inflows.

**【CEO Commentary】**
- Celebrated 40 years of growth, emphasizing organic expansion and leadership in alternative assets.
- Noted 26% growth in fee-related earnings and doubling of net realizations, driven by strong fundraising and deployment.
- Addressed recent credit defaults, clarifying they stemmed from bank syndicated loans, not private credit. Highlighted Blackstone's disciplined underwriting with 95% senior secured debt and low LTV ratios.
- Highlighted strategic advantages in data centers, energy infrastructure, and private credit, with annualized returns of 10% for non-investment-grade credit.

**【COO/President Commentary】**
- Private wealth AUM grew 15% to $290 billion, with BCRED raising $3.6 billion and BXP reaching $15 billion in 7 quarters.
- Credit market expansion: $150 billion+ direct lending platform, 29% growth in infrastructure credit to $70 billion, and $7 billion partnership with Sempra Energy.
- Insurance channel AUM up 19% to $264 billion, with 2/3 of clients expanding relationships.
- Launched defined contribution business, targeting $1 trillion in U.S. defined contribution assets.
- Data center exposure now 20% of BREIT, driving 9% annualized returns vs. 60% premium to public REITs.

**【CFO Commentary】**
- Fee-related earnings rose 26% to $1.5 billion, with management fees up 14% to $2 billion.
- Distributable earnings increased 48% to $1.9 billion, driven by $505 million in net realizations (55% sequential growth).
- Margin expansion to 58.6% year-to-date, tracking favorably against full-year targets.
- $6.5 billion of accrued performance revenue on balance sheet, with $611 billion in eligible AUM.
- Infrastructure and private equity funds delivered 5.2% and 2.5% quarterly appreciation, respectively.

**【Q&A Highlights】**
- **Private Credit Dynamics**: Reiterated structural differences from bank loans, with minimal defaults (12bps realized losses LTM). Emphasized relative premium to liquid credit (170bps+ spread).
- **Defined Contribution Strategy**: Launched dedicated team to capitalize on U.S. executive order, leveraging partnerships with Vanguard and Wellington.
- **Real Estate Recovery**: Noted 25% year-over-year growth in U.S. logistics transactions, 38% LTV in direct lending, and 9 months of positive BREIT performance.
- **Brand Expansion**: Launched first TV ad in Japan, targeting $26 trillion in savings and alternative adoption.
- **Multi-Asset Vehicles**: Planning 2026 launches for holistic solutions, combining credit, real estate, and private equity for risk-adjusted returns.


Blackstone Inc. (BX) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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Loss on Bad Debts

Loss on Impairment of Other Assets

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Operating Income

Non-Operating Income (Loss)

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Income (Loss) from Associates

Income (Loss) from Joint ventures

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Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

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Total Comprehensive Income Attributable to Owners of the Company

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Diluted EPS from Discontinued Operations

BX

BX fundamentals

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