NEW YORK, April 18 (Reuters) - Blackstone Inc (BX.N), the world's largest private equity firm, announced on Thursday that its first-quarter distributable earnings rose by 1% year-on-year. This growth was supported by an increase in fee-related earnings, partially offset by a decline in income from asset divestments.
Distributable earnings, which represent the cash used for dividends to shareholders, climbed to $1.27 billion, up from $1.25 billion a year earlier. This resulted in distributable earnings per share of 98 cents, slightly exceeding the average Wall Street analyst estimate of 96 cents, according to LSEG data.
Fee-Related Earnings and Asset Performance
Fee-related earnings, derived from management and advisory fees, surged by 12% to $1.2 billion, fueled by robust fundraising that maintained total assets under management just above the $1 trillion mark.
However, Blackstone's net profit from asset sales declined by 25% to $293.3 million as fewer assets were cashed out in its private equity and credit portfolios.
During the quarter, Blackstone's opportunistic real estate funds remained steady at 0.3%, corporate private equity funds appreciated by 3.4%, liquid credit funds gained 2.5%, and hedge funds added 4.6%. In contrast, the benchmark S&P 500 (.SPX) rose by 10.2% over the same period.
Financial Performance and Capital
Under generally accepted principles (GAAP), Blackstone's net income surged to $847.4 million, significantly higher than the previous year's $85.8 million. This growth was driven by a doubling of total revenues, attributed to increases in management and performance fees along with principal investments.
Blackstone raised $34 billion in new capital, with unspent capital reaching $191.2 billion. The company declared a quarterly dividend of 83 cents per share.
Conclusion
Blackstone's first-quarter performance reflects a resilient growth trajectory, particularly in fee-related earnings and asset management. Despite challenges in asset divestments, the company's overall financial health remains robust, underscored by strong fundraising and steady capital deployment.
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