AI investment gains help drive Blackstone assets to $1.35tn
Blackstone’s assets under management climbed to $1.35tn in the second quarter as strong fundraising and gains from artificial intelligence-related investments helped the alternative asset manager outperform earnings expectations, according to a report by Reuters.
Distributable earnings rose 26% year-on-year on a per-share basis to $1.52, beating the $1.35 consensus estimate compiled by LSEG.
The results underline the growing importance of AI and related infrastructure to Blackstone’s investment strategy. The firm said nine of its 10 best-performing investments were linked to artificial intelligence, with data centres, power infrastructure and technology companies among the key contributors to performance.
Blackstone generated $31.8bn from asset monetisations during the quarter, including the sale of a stake in three data centres to Digital Realty and the disposal of a majority interest in power infrastructure company Sabre Industries to TPG.
The firm also completed several public-market transactions after a more challenging first quarter for deal activity, including listings involving advertising technology company Liftoff Mobile, Blackstone Digital Infrastructure Trust and Indian office real estate investment trust Bagmane.
Chief financial officer Michael Chae said proceeds from asset sales were likely to moderate over the next quarter before strengthening again in subsequent periods. He also forecast double-digit growth in base management fees in 2027.
Chief executive Stephen Schwarzman said Blackstone’s data centre platform could double in size over the next two years if the firm executes on its current pipeline.
He acknowledged concerns over excessive enthusiasm in AI-related investment, but said the firm remained in the early stages of what he viewed as a major transformation of industry and financial markets.
The AI investment cycle has also created challenges for private equity and private credit managers, as concerns about the impact of the technology on software companies have raised questions over asset valuations and lending exposure.
