Blackstone Group reported a significant increase in its first-quarter profit, driven by robust investment gains that exceeded market expectations. The alternative asset management giant posted distributable earnings of $1.4 billion, or $1.12 per share, compared to $1.1 billion, or $0.88 per share, in the same period last year. Analysts had anticipated earnings of $1.05 per share.
Strong Performance Across Segments
The firm's assets under management reached a record $1.2 trillion, up from $1.1 trillion a year earlier. Blackstone's private equity portfolio appreciated by 5% during the quarter, while its real estate holdings saw a 4% gain. The credit and insurance segment also performed well, contributing to the overall growth.
Investment Gains Drive Profit
Blackstone's net income attributable to shareholders was $1.8 billion, or $1.45 per share, compared to $1.2 billion, or $0.96 per share, in the prior-year quarter. The company's total revenues more than doubled to $5.2 billion, fueled by higher carried interest and investment income.
“We delivered strong results across our platform, with double-digit appreciation in our private equity and real estate portfolios,” said Stephen Schwarzman, Blackstone's CEO. “Our diversified model continues to generate attractive returns for our investors.”
Outlook and Dividend
Blackstone declared a quarterly dividend of $0.80 per share, up from $0.75 in the previous quarter. The firm also announced plans to expand its infrastructure and private credit strategies, citing growing demand from institutional investors.
Shares of Blackstone rose 2.5% in premarket trading following the earnings release.
