BX - Earnings call transcript Q3 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone. And welcome to the Blackstone Third Quarter 2021 Investor Call. My name is Faye [Indiscernible] (ph) manager.

Joining the presentation, your lines will remain on listen-only. [Operator Instructions] These will be addressed towards the end of the presentation. all conference advise being to like parties is the recorded. I'd

to like please Weston to I'd your go hand Relations, Now Shareholder over host, of Tucker, ahead. Head

Weston Tucker

's morning. Thanks welcome Perfect. and Conference good you, to to Blackstone Third Quarter Call. And

and issued Schwarzman, Chief and in which slide a Chief press Joining Chae, Gray, Earlier Officer. are Officer, Jon our presentation Chairman release are President CEO. available website. today this Michael Financial Steve and Operating morning, on we a

report which in differ remind the XX-Q these few and We weeks. call do to expect our and from to of like a you We update materially. statements. may not I'd file may outside results control firm's include are undertake today's actual to that any forward-looking statements uncertain duty

over share, and that, of paid With per to declared billion on the November material of call common to for of copyrighted quarter an that recap be offer Shareholder's without refer as call release consent. any of constitutes For of may find or of billion. solicitation you of to see our some results, please the page a sell section turn an A risks a call or is this Also, record to offer cast Risk income interest not also $X.X reconciliations audio earnings the XX-K. quick Steve. This I'll an our note We'll of dividend GAAP on of affect $X.XX and we reported a nothing Blackstone the the in of our holders measures and could this to Factor of Blackstone be X.X were press will net in the purchase that duplicated non-GAAP a $X.XX on to discussion Xst. results. Distributable fund. We website.

Steve Schwarzman

to quarter record than the you our our industry consequential for I the and most one doubled quarter last are performance appreciation and of are On a retail extraordinary, call. the step $XXX change capacity history. my proof-of-concept. that the moment billion. with Distributable for rose was It defining And joining FRE. both best results expansion under an it history. Today's quarters in and and I in more and vast in Today, markets earnings results our period. the believe increased assets Investment represented Weston. and $X.X And year-over-year earning fee-related nearly billion, XX-year the to XX-month fund while our growth. reported thank our acceleration XX% shared into best the of for reaching insurance beginning good terms generate earnings a metrics we our represented history. year-over-year morning to long-term Thanks, earnings Blackstone of of And management records a in in the power Firm's view was call, at only XX%

experiencing record Our our now position unique over we alternatives as leading across the demand investments today expand increases of made is for build to decades to the distribution as in major substantial customer channels. in platforms growth out outcome are operational of continues capabilities well products the while our area. future terms personnel we've to profitability our and infrastructure. market and significantly current expand, support And reinvesting We're

around more profitable firm, We competitive are widening business. foundation the creating our MOAT further for the dramatically a

they the reinventing in. invest can sector, and class. referenced institution we're what who the in the alternative in asset of invest terms As Both can now

our of same the leading the flagship largest is The half acceleration deployment funds. vehicles, strong. active offer Inflows generated lines continue is for incredibly strategies. which our traditional some last We expand an to to nearly of of capital and fundraising adding now XX of At fast-growing pace an outlook are overall meaningfully for time, entire of our over perpetual business months. total platform perpetual fundraising XX the cycle We

unrivaled product breadth strategies. have and We depth of XX discrete offerings over with investment

likely across in this companies the real neighborhoods. secular We best and assets focused private believe the and leading to faster and the relevant scenario. estate of XX%, we In our investments to superior in should benefit private in portfolio have We coupled less these fundamental of equity, history our both ago. a on believe be and fast-growing for future market To majority our Real including XX business, In investors premium with to of might on capital sciences world-class interest R&D experience a of pressure result remarkable believe has response positioned investments values our rising in outstanding Across opportunistic in should we meritocracy, floating that XX% housing, and is all equity than when our the logistics, sectors help growth work we dedicated at which market the exiting cash including excellence, capital, offset concentrated cycles, scenario culture by the economy for environment corporate of strategies to rental investments occur outperformed at XX% to an throughout is areas are that the cycles, a office rates. while released appreciated protection carry funds embrace integrity. performance well-positioned benchmarks rates. have by portfolio on rising highest investor superior last life environment. laser-focused is with real significant been our in our businesses, our growth. continues appreciated management flow standards one. capabilities. create. our estate our strategic example, in estate, Everyone Moreover, generating pandemic returns the towards the multiples funds for of flagship In rate our Our decade recent portfolio months, our deeply credit our XX%. the this of most of This debt, must at remain our cooperation, is Blackstone vast overall entrepreneurialism, we've any compared given distinctive the market characterized our we mission the of secular in consistently firm, the impacted over value mission. to high-quality you way

first-year As be unique we couldn't this time I've that new exceptional grow, strive each I our one quality ensure personal XX,XXX The with we and stunning more by resulting work Firm To the we an hires analyst a year, to protect the in coming of to X.XX%. at culture. hires, And impressed been at firm. acceptance our our had people rate values. every that substantial spending groups This end, core internalized our of applicants XXX of to

the you that The drive Firm's In come. the The I'm joining decades throw going ball for talent continue with prospects, will assembling next -- We you over closing, to outstanding I've more to of Jon. joining to in that, and been outperformance are for this thank And for about us generation on remarkable I Firm's excited to adventure. never

Jon Gray

are will deliver investors. Thank perpetual. capital, pillars we increasingly morning, in here. entrusting for they extraordinary we outlook in I our clients an everyone. And and are are I with quarter more us Steve success the Blackstone Good extremely for it. you, catch confident place, as to because our that Steve. for continue and This was all noted, the say from

into to for us we process serve compared a were begun. broaden noted, a narrow last we moving appreciation on this channel waters, the who Most this has believe from open record. the invest. to As allows ship where importantly, we XX and Steve best and this months just can We've fund

large-scale deploying continue capital. We approach to thematic benefit from to our

XX inflows up nearly Day. and as X-fold performance. were this customers which Total responding XXX our nearly and months, XXXX third rose quarter, perpetual, year-over-year billion to $XX XX% the favorably highlighted. since over are last is to over Steve Our of in the Perpetual was $XXX Investor AUM half billion billion

this billion for We to for vehicle our month In Our real institutional business in less QX. investors, Plus European earnings billion business. platform BEPIF, as grown quarter of estate BREIT. real years, both at as retail largest vehicles, across strong launched our We with start focused has in the the perpetual including AUM the this remains $XX to the earlier X than nearly driver estate estate third billion X well and with fee-related $X.X opportunistic demand raised size real from on Core $XXX of roughly alone, capital, firm. new inflows

credit BDC quarter. the addition, BCRED In segment's capital equity non-traded raised third our in X.X billion of

over grow to demand other products to introduce. for expect these plan we time We and

Turning to infrastructure, fundraising. our XX% is now over $XX vehicle billion reopened committed perpetual we've and

the to in XXXX Given track our the grow significantly team, expect vast strength flagship fund. for investment approximately saw lending floating-rate SP's secondaries of In this the months of double weeks close is initial last the ago, we on the business In latest size and expect this begin time. area, nearly in few direct over credit, billion billion, of XX $XX completed to strategies. a the opportunity an continued to set liquid reach with vehicle quarter. $X billion we prior robust demand inflows We XX and the we period of

of managed billion. in the is largest now Our nearly SRLN, its the in kind actively $X ETF, world loan

nearly soon private and billion and fund. expect Asia, hit in X the In $X $X larger will meaningful we've growth in raising Asia, business real Moving year our to the prior this estate raise XX% where the to $X.X raised equity will region previous on equity billion, with see billion real private times closed Asia, And capital. approximately cap, we vintages estate fund. $X Xnd and our than billion the Xrd

stakes expect a we $X.X X area, in stakes with fourth managers our in-process including quarter, strategy, fund in $X.X more in been to recently, reaching GP BAAM, investing vehicle, this raising approximately a actively finish second totaling billion the perpetual high-quality size. alternative than We've in billion. Lastly, another third inquiring in

Together deploying successor private Private and are real and function The energy, fund. than over are credit funds a with estate, timing secondaries several perpetual Growth strategies, is Global of will drawdown European outlook of equity including: XX% real of energy forward, equity, our equity, our pace. and Looking committed, be growing of positive. now the global faster expectations funds estate investment menu credit, our and capital original our European

opened the has areas capital didn't expansion many up of we Turning new firm's have to pools previously. where deployment,

The was in billion housing, ever committed transportation, $XX logistics, pending sustainability invested largest linked deals. were our billion rental The additional busiest with an quarter to third and and businesses. infrastructure, $XX

One ago, it This which transaction Hotel times Vegas front, and realization of the transform active, improved by on cost; on of a asset business. a history work, the Las few highlight, operations. announced it, nearly very the will discuss. weeks our classic XX gain Finally, the the of a we estate we fix at asset is our sell it, the real investment example buy of in single model profit largest to in investment original which funds at our in breadth remain sale Michael a Cosmopolitan we

long-term asset combined it for Our tremendous fast-growing, on to prospects. outcome creation the Mike. things Blackstone feel not a about I firm's our a With And will is future our focus over manager capital turn branded, led capital to In light with investors. value is the addressable bright. energized enormous market. that, impossible an with to closing, is

Michael Chae

is as important share. our LTM doubled by Thanks, in the doubled quarter review This sheet. Jon. everyone. earnings balance period, business. two billion and morning, power the in investment per dynamics Steve then And underlying step-up the results, results, we'll for being Starting And more first highlighted. and than record in the earnings or firm's good with $X.X the to year-over-year, nearly firm's performance I'll $X.XX discuss distributable driven

the continued revenue acceleration the expansion performance of of And second, First, earnings. the fee-related potential. significant firm's

to to million First, which respect in the year-over-year third increased quarter. $XXX XX% with FRE,

in the area. FRE and combination share, expect And the revenues the by significant XX% or full-year rose per expanded growth of highest fee FRE ever. expansion. level to XX% XX% margin we be $X margin to approximately $X.XX billion last months, for XX period this driven For XXXX margin to in XX.X%, this

$XX transforming with crystallize strategies XXXX, has in corporate benefit both that their As recurring our contracts, revenues management that These involve last particular, than of almost trajectory realizations fee per without drivers us very of revenues, NAV in driven and that earnings increased FRE since revenues provider profile and outlook fees to is of give included from FRE. X-fold about digital certain At strategies and share, primarily a cash, Mphasis, asset record by the compounding and increased the the firm's the XX services The heard and in is operating inflows Yonder, schedule of a you've sharply office and in combination respect along reached strong. performance Company the the and software logistics, effect. billion The doubled nearly in reflective realizations perpetual recapitalization Fund global accelerating platform XXX% related a quarter more on fee of expenses, today in $X third with $X billion the our Blue of sale of sales. U.S. from includes FRE Europe. depreciation all third-party performance the scaling for is the overhead. reminder, months. and India-based confidence $X.XX to scale assets quarter nearly With the billion and multi-family, net to

nearly double in step net grown history. level more than various We also revenue of performance driven monetized Invested the a of a revenue eligible companies. coupled the balance has the and our QX number scale deployment the over X in performance strategies the nearly in reached sequentially, time. on quarter, dramatic XX% store billion and up level that portfolio is years performance level XX% double with of public function time, revenues upward forward highest AUM Up $X.X stakes a $XXX change reset its The and pre of firm's excellent billion. this firm's accrued indicator sheet value. breadth performance has This across of our in of ago. holdings businesses in the investment multi-year importantly, At year-over-year, its expansion XXXX. receivable of significant refinanced and the The same -COVID scale to in

Plus appreciated history X.X%, Turning while which funds business. heard firm. real opportunistic simply today, together Core the as the The XX.X% appreciated our the breadth estate fund the in leading quarter outstanding of to in invest you've the best to performance, funds was depreciation across

another our months, Plus driven XX office. was XX% equity, the suburban the private quarter our holdings. last be the last had quarter and EBITDA in technology-related corporate over XX public revenue robust double-digit appreciated and the appreciated by companies depreciating across strong in the logistics, For the XX% and funds to breadth life seeing Core U.S. and P-funds X.X% Returns Overall, months. in and both private XX%. gains In growth. multi-family are continue excellent Appreciation particularly sciences portfolio,

appreciated last by with in energy quarter XX% secondaries XX% private credit, standout Opportunities In return XX% and reported Our tightening, a in and business over the performance XX% period. quarter's Funds a improving and of fundamentals, X.X% credit the months. and the the the Tactical strategies over appreciation XX spreads, And with gross LTM reported in X.X% the LTM the strength driven quarter positions. quarter

over $XX our investors. quarter the the return in month, capital XX% strong in BAAM, the the Finally, gross declined exceptional fund creation protecting BAAM produced to for the billion in X.X% down-market. BPS, last a in BPS across composite total the returns LTM return a months, spiked in value by for $XXX points Overall, was in firm equated reflecting a and outperforming the record appreciation XX volatility billion the months, the positive of September last market and X% When basis S&P over in Global the period. Index and XX HFRX XXX quarter for

position. weighted note financial In issued XX-year X, $X a opportunistically August, the pretax X.X%. costs on notes we Finally, average, of of at early and XX, billion a firm's

average debt management X X stands with overall cost plus in on Our our We years best asset long-dated credit rate XX A industry. now pre the rating, the debt. a at maturity ratings X.X% fixed of maintain -tax

results for our been thank the With to momentum continuing record metrics like forward these that, you We questions. up reality. across open now near and quarter or of key stronger. and call it for of our power. its Reality records transformation and our earnings joining business the we this record we'd reported firm never that recap, to So, all reflect believe of has

Operator

you Thank questions Instructions] your ask to that you. one limit only. We [Operator

of ask you If the a redial back your Evercore. question line is follow-up, Glenn from like queue. would into Schorr ahead. go first please Please you. And from to question Thank the

Glenn Schorr

Hi. Thank very much. you

I if question a So, on wanted I worth could, space. net high to and ask

BREIT across XX.X think I see, to amazing pretty BCRED. So billion and

then question the size-wise think can what bigger how handle U.S., a step relative is So, we've taken to obviously capacity more we BEPIF. a Europe in expectations. is you about A it has to And allocations, back. I mentioned so the versus lower lot. and market, that seen Retail have

types is thinking how comes other have? deal of about you're products what and how head-start curious competition in, big you flood as of the of that So a the XX-year

Jon Gray

I'll its question. for days very And of back we're and be say with start U.S., do the I think then Good to question, not could But and I meaningful. overall deliberately, it the X go would overtime, distributor this did -- product. market BEPIF we'll market the Glenn. as type BREIT is it in large, we of add Europe, as early start course, on going others. with as

think been little been I were VEREIT Europe lot a like of a non-traded different. we are products we're as revolutionized have real something bit trailblazer, alternatives savings And it's distributed market. there's a we early when But that The low a the with way bit of BREIT different. are in days, estate a yield. have there historically

a Here What our I say think and are of don't But we is BREIT. That other in a there get products I think classes. to can in it's will to Blackstone, multiple years. could geographies little given would potential be of We're the multiple at of we the do starting to take about a more things be here platform are think would other say of virgin is you're we out. number terms it there can't do our scale meaningful. territory. of products. that. asset surprised I It expectations going likely we that get bit scale to not

that returns, we long-term do deliver our we individual investors we're that institutions. is us for consideration for for delivering key as and focused the brand just think on I

way set short right when the there the and do right But more have and is it program will up. yes, do. thoughtful in we answer is, We a deliberate the to

head-start, relates think it As the it's to helpful. we very

It's to hundred disclosure, helps have I in platform to a get think all we the earlier. decade. area matters, It's to have scale legal, and it the several people helpful capital. wealth the the to helpful of private compliance, it's have plumbing, to build and relationships really helpful deploy to our over those

being to into And that Blackstone. do so, there's brand a head-start But you see big we've of powerful. the channel, so more on. nowhere everything, a retail have capital-light And Like emphasize believe, that power in is there's one going competition. the then will been that have the a advantage, firm, and we real we're brand. others we and we why come thing And to about very And it's is and build the successful to continue than reason space. the durable a

Glenn Schorr

you. Thank

Operator

you. Thank

next of Alexander go is Goldman ahead. please the Sachs, Your line from question from Blostein

Jon Gray

morning, dial you're on Good I'm next the there. why [Indiscernible], go sure we not can the back and move if Alex, mute queue. caller Alex into Alex. to don't

Operator

Thank you.

your So, KBW, of is ahead. next Robert please question line the Lee, from go

Robert Lee

from taking Jon, on of capital kind Great. about deploy of the you that kind of mean, just able of Good returns going questions. have affecting coming keep fundraising you in. kind one the Can my how market Thanks. hit you morning. the strong; it. to a so side scale of this maybe pricing talk without Thanks for perspective. are deployment I on to you is your Kind first

follow-up billion XXX for target of wall you question schedule. Just you’re a given capital. hit mean, maybe then I core of Steve. a And the ahead

So, what's next?

Jon Gray

deployment the on side. I'll start

consistently question, to been scale. in And year-to-date you one long larger. It's as firms that been are firm firm the I've have what over their grow public a period as do deploy existed and larger this long and Steve. transactions is doing been and because other are for as answering you is time a which of how longer we at privates, think advantages for size as of which XX the harder we've we've often involved of is even complexity. I

capital. our and we've I'd The we're redeploying platform broadened say second thing is, really

five investments the ago. years terms that in not quarter, of you in all exist largest commitments, looked and the were did done If them did transactions we XX of in vehicles

And they if were BCRED, in that Core they were in across at comes risk [Indiscernible]. helped talk globe. Private think infrastructure, we as thing capital you more this the then I'd has Equity. us have were do it, is in And us last geographically and somatic because We easier about they has for they gotten we the really across as capital this the approach. in. say, So, a BREIT, And Deploying and it lot were do it in return scale we about well.

on build on Focusing out And tailwinds at of quarter a it's is home in to area. all sorts way on because what there, tried places your a everything e-commerce the called you're India, to real connected the a to Chamberlain, best to that in secondarily, secular when through firm great the these coming. of and Openers. LiftMaster are parent housing a the a we've where we your coming scene. thematic there Company classes Look not that which door off. We global neighborhoods sometimes of that X of sustainability, as rise middle example is there's is in migration big Garage capital technology bought identify online, goods alternatives. and And of COVID, do play sciences, of Door think travel life in garage the It's investing. it's deliver asset is class on it's derivative the this then One try different play deploy good directly

the unique a new products. that flooding high will areas. And to see that, of breadth some. capital. for at Steve that high high has deploy scale, in there's those very across given target of in us firm, And allowed combination say investing we're I'd and leaning I the With expressing lot let set a So, and then we're unique level, advantages the advantages conviction zone

Steve Schwarzman

behind one and we Robert. go It in exactly -- or a what do accomplished we a vision area can hear was And for of we to And performance actually investors. whenever I We feel I consistent think we've about new product, Well, I into right. it's how introduce with certainly didn't asked, the area. got a Core be you how for Plus got have fun this our big great me that. internally our every a that But way on of of people managing goals. of lot used amazing we one both go And great set know for set momentum, of similar And that into expectation when prospects internally. something and I we've the a we're great our part investment-wise of and system firm to discipline disappointed is a having areas scale-wise. targets success, all don't course, here. and new

Robert Lee

much so my for you Thank taking questions.

Operator

you. Thank

question next Your Please O’hara Jefferies. from ahead. go comes from Gerry

Gerry O’hara

for say. Thanks sense a perhaps don't of be able Great. this fees lot Hoping us in as for respect And that be you into think what's in to help But to know one Hilton, about little the anything I my can us taking might to you Thank there's I and able past done come Cosmopolitan I sale XQ. be give Michael. with would you question might clearly, to if obviously helpful morning, of guess performance a pipeline. but you've well. know the material, the is you. anything

Michael Chae

traded. we FMV in that this grown We'll relatively to to Obviously, of are we've mentioned conditions. portfolio about under the That's and sort it there equity advantage of publicly the half a Sure, And contract the give transaction, expect that liquid, market guidance, what that Paulson quarter. based Much quarter several things year, those performance And of locked haven't. is and of and first AUM on in is pre-Covid. has realizations we Jerry. remarks some expect fourth at as take other the picture, in of of entered as not net my with performance invested private revenue things come. things third don't in accrued crystallize considerably. double revenue near-term are close the was you to obviously in is mentioned, we quarters this Well, quarter sort next the we'll but pipeline, that in We the it this know, I big receivable.

to to or fruitful good quarter-to-quarter, picture, that So, that. not guide we're predict it's to position in big a overtime. But remarkably

Gerry O’hara

Thanks enough. the call. Fair for

Michael Chae

(ph). Jerry Thanks,

Operator

is you. Thank Morgan And from question next Cyprys, please ahead. your go Stanley, Michael

Michael Cyprys

the morning. question. good for Hey, Thanks taking

making us on investments could the Just you're firm. hoping you that update across the technology of some

As about opportunity can would digitizing, business, you of building architecture think think of of automating helpful? the you face future tech set of sort it there? do your the as challenges be Where stack most about the for Blackstone parts think how you And Blackstone? about digitization you what

Michael Chae

Michael. of the Mike, I'd strategies think been technology in and talked innovation area. for development, where Thanks terms it's good. step Hey pretty we question. we're in back innovation say, We new and product we've the about

on and it's hardware groups, process how that's among a XXX I'd it's work to making accounting getting you particularly area second as at developed in that of and of it's the historically. of getting a in put area, been innovation which have transform in Operations, team X from co-CEO our we firm. and retail embedded reflects soon. been doing then It's -- area, a And work the I -- technology software it's the when GP investing very now. better We new -- one actually in years employees say XX think the think the and is itself development second we're we've started some also in do real and in in on We -- for that part, our also the and years work front, was in your ourselves somewhat institutions, back-office nobody of we to these around in area, how more industry we that And and and for think Gen and still into A business helping we we'd We've third-party effort. run reporting we side, and progress the solutions even investing portfolio to that of daily developed a also from from, both developed the an turned internal Portfolio say technology in back own our standpoint the think lean the than overall, business ways. in specifically. though or an companies. industry I industry, investments fund middle s our Stepping we basic people the now have this do the are the significant on is and terms nascent know, in We that internally have firm. nearly we really question, was effort it's Head products A, internally -- our think in portfolio we And that actually years Morgan, having institution, a But Global science. industry our discipline bunch of are other solutions suite of data business for a looking available. in internally. investor both in of s. area, that and we've in work data the fastest-growing of standpoint. to LP the traditional for investing stack sort to around science developed or more our They're X technology includes, I XX part fastest-growing pretty That wonderful be think really XX, people has areas say will the that I in good technology ago, alternative this a as of in

And solutions. against bought at pretty firm a you a others years we tell Dell another -- both sort outside at internally us that well look have those If of business-like products at you value. rate high ago a and that pretty couple LPs equivalent look E-access of

and -- I'll pause. then also We

But early-stage Prop really The so a or lot hire area. of to ago, we how Innovations just also terms a of not something holistically. a innovating of investments small -- That's at answer, been All It's little whole financial enterprise terms time. the area, made a a Program. area. has we cyber these mix at do this so process. big of which ecosystem, announced scale small internal from a of think about multipart overall. in it's benefits in We've think named it. deeper to a months area, from we cutting-edge we dollars a capital stakes relationship We're because keep of of quite it's view, early this the have companies XX couple -- real area in to -- being it Fintech purchase or still almost years. tech for the the and external we mostly -- go. the it But and bit mutually have but to Mike. call tangible scaled long benefit organization, talk firm But in tech companies, years area. in this this purposes way and a our the a And going We there's for in to don't over moreover couple it, we use we're in days about bunch we've a about aren't a I We products we in program, long point And program, talk people, we've successful. in of

Michael Cyprys

you. Thank Great.

Operator

Thank you.

Your Bedell next from question ahead. Brian Deutsche go is of Please Bank.

Brian Bedell

morning, Good Thanks. my Thanks a Maybe fundraising. Great. question. on taking - parter for folks. just two

that. and talk as want overall also into potential just XXX maybe attraction, possibility was the the inflows, that, then been retail offerings also possibility next comment the a next next your the course, of your equity including and I you for just real even insurance a impact billion think year, year? simple estate Just And sanity if there making the faster partnerships. next the to target, is to at just is in you partnerships initial for And flagships you've of that XXX And given easily of just draw-down like then on year, looking within get billion vintages will insurance and well. approach about be wanted given in funds exceeding Looks to of attraction raising private ESG and to pace check any the investments without year? this to that,

Jon Gray

doing So just say retail I'd infrastructure; of overall BPP Core is talk maybe have but insurance this momentum. great The a our what individual momentum. about the Not Plus Michael perpetuals, business. would I'd estate just year. channel talked will mentioned Plus But also we've investor side. got not real obviously, Core lot on still Institutional some than what of bigger these about I in with the we're things, institutionally. and

forward will for funds. of the relates deploy very indicator those news fundraising future to invest if fund best you the is The to across capital. the of that board, performance investors look drawdowns, be we is is Blackstone a the how and the As strong, desire good function quickly it in

funds. We of these have a number

XX%. are start you we over about fundraising. that As XX%, now noted, when do get, and thinking that's most of It's a we question cases, North when so

That's some expect good reception been such I'd fundraising are that there our private headwind that one certainly that we has a go back exists history. been equity allocated. sector in out. say on out So, to over when but it's hard the investors strong we is cases a predict,

think It's deployment lead then the fundraising. back, business. if timing. will we bullish I insurance. their credit. to large-scale funds, as we fair the all big say private investment increase more and our raise of, And we'll an And funds a this the general. perpetual of our expansion to of step versus now specific much of it's that, down years X more it probably is into that picture to community But look to not But you successful draw answer thought that's strength will you ago. giving limited products, as where strong to secondaries performance equity function or think not that amount infrastructure in a raise in think step-up that's relates And say, larger to allocations of broad in I there's and to I'm of think real combination and alternatives on will add estate one for as a and we I see be PE, impact private fundraising. at it array overall, where really very

will lot happening hard quantify is is but exactly the it what how different directions. in all this So, of It's path clear. very to a of is, land travel timing I think the and

Brian Bedell

then just on ESG? And

Jon Gray

ESG. On

transmission relevant about areas. our Board and I We what towards was great if Company this went panels. warrants. most X last big you lot more to talked with say time, E&P. the a over investment the a success. X put credit we've years. solar those -- energy think Quebec or And is the we've much which this in on We a back way We did lines an We preferred us, So, Technologies, at transition moves in energy called public areas, I'd Queens a announced more three around meeting from ago. debt Ray deemphasized That that areas been hydrocarbons a activities of significant hydro-power a much for actually orientation the and of there and have doing week. In the energy into few weeks

expect will So, I the of would we've towards towards had oriented energy next be a state. vintages lot of equity and debt funds success transition, that And sustainability. the energy in heavily our

think I think similarly, will we'll do investors react well, and I in more infrastructure.

can Another it play with at Blackstone. way us investors

a is areas, of then liquid more we demand. I some things you'll I say would structures and in there. backs, there asset So, lot more the see think investment some of insurance in our of And do on

think are come for class, So, I from the enormous, I as an demands a of capital. capital it asset will and think overall private lot

areas. bodes So, our multiple well, expressed be at but it'll firm I that think in

Brian Bedell

all for color. you Thank Great. the

Operator

Thank you.

Research. Patrick Please question is Autonomous from next ahead. go You're Davitt,

Patrick Davitt

morning, Hi. everyone. Good

piece Blackstone focus you desperate takeaways a fixed client pie. this in discuss income of to Could One this building income particularly And Day for idea higher up of similar capacity particularly was the out is you of origination insurance as insurance to large you obviously idea direct yields. of replacement on year? more many from -- that so Investor extent strategies, address to to replacement the for focused AUM on Competitor a the building opens this partnerships week this what bigger fixed investment-grade bring big money

Jon Gray

a theme. that agree this is huge We

fixed investors, in income investing. almost do and who CUSIP exclusively needs. companies, can't insurance bond certainly long-term individual about many think income fixed cases, liquid you investors, institutions, today, their meet a Buying If

been origination or see at I to leader managers that's we're been back, top, certain like in of with origination the field would for and time. there's have in real And who more there the there are a keys capabilities I these course, and in us the what those and one origination you in we've us. this, capabilities. very and but and are more room areas verticals estate so, many grow would origination, being I over corporate active, happening aircraft, structured credit think of certainly more renewables say very asset And is is assets expand. to story And having asset awarded say the

to would in movement very to own going I facilitated. investing borrowers, as is of done going rely of of capabilities to not that's because the are just really want assets, this spread is think of credit that as do our on course, liabilities add, capital And be we've capital manager as area, we're taking large-scale and important. a this we're a and just We I much you will And get be think I on third-party this we to pools see going to to being firm. build then What historically what's who on closer this, against going those. doing focused

Weston Tucker

We Steve. question, are next ready for the

Operator

from of ahead. Giblat, is go the BNP. question line That Arnaud You. Thank Please

Arnaud Giblat

see you insurance you we've these ensured question if morning. Hi. whether Europe. deal. you. yields of in -- I'm Thank On whether a conducive wondering opportunities insurance regulation One general? capital type U.S. in like -- for and seen could do the regulatory your Good AIG around discuss of please. lot availability Is books this deals there's -- to

Jon Gray

countries some be the So, to framework. there's some regulatory structure in the countries, some of there do, could that Asian that to adopt may of and with easier concept model. The Europe. some possible challenging many countries profits this of it It's in the of in opportunity the in insurance, be ways makes more

we though and to back no you're or The earlier I more income, Company challenges. reason you're hope way are question earning corporate to do government the today, would say in more happen there insurance But buying European is that Our a should virtually if over this a return. is find will Europe fixed why you're time.

I so, for capabilities. And be origination it's to think important have insurers these going to more

over the point. would I think I head it's behind U.S. at So, this it will time, way say but that

Arnaud Giblat

All you. Thank right.

Operator

you. Thank

Morgan. Please ahead. JP of Washington go Ken from is question next Your

Ken Washington

Hi. dollars legislation Private all classes. out Equity investment over Good world all world Warren Blackstone at in from Senator the various raised put clients aimed the but over morning. some (ph) investing invests asset with

by political could and regulatory X. how maybe maybe looting there you Wall X, rising be Europe involvement scrutiny and of sort be. in Asia Street parts and the as impacted private seeing what are markets act So of much investing might well? is in not and Blackstone Then

Jon Gray

of truth nothing further we from of. what at as a equity what the is I help the in view Blakely's longer near-term green walk start that's announced I you as the equity, them haven't what Spanx we're stuck clients, background as of see I life important. around powerful because potential. in business remarkably Terrific this and yesterday Company, energy, do firms Same Herd to that. unfortunately, where terrific And Whitney industry story faster. Wolfe accelerate be look What do And proud years, Witherspoon the invested I'd Reese we're you doing fact we're firm going to really I think in outdated with with did were we've that harming around two Sara there with doing others proud and think $XX the Bumble. founder, in if business. XXXXs I We we the of an at communities. could that growth, mean, billion in alternative What companies private in We're then last accelerating give And investment in don't grow and of we you Sunshine. technologies at with Hello world legislation the through lots how returns asset in policymakers a that facts, our out happening as sciences generate traditional and human figured somehow live private US growing companies is that pass. make is so and equity is beings a there private will leader, likely. grow be lives. has, and just I yet the we we it's that don't do development they destroy to increasingly expect highest the of equity I and amongst in that And businesses understand will private because businesses. make businesses that class, the returning specific kinds safer investing to we're this

I And We at positive the end to are, a continue what said, impact. And it as going do very we're way, of good we a have I think proud to in do. flow teachers, and the of around of particularly in police States. the day, the and benefits many funds pension the firefighters, city of to United officers, course, the here so workers world

and do of and what the And a about that, to it. future. happen feel get we really we generally we pride lot in in we good articulate expect out, So, a chance went facts that when the would will

Ken Washington

Thank you.

Operator

you. Thank

ahead. Oppenheimer. Christoph is next Your from question Please go Kotowski,

Christoph Kotowski

Yeah. greedy opening were in follow was FRE of that as next exact morning. earnings. you get not on, margin, forget like that an next-generation there's I Good the something even significant words or an to but it for AUM earnings comments, flagship the growth kind growth you and launch greater we poised over the your in wondering couple a of XX% just should you I breakout to that you with so were of used years? implying funds And just expect and that was upside

Michael Chae

position. aspect in Well, earn I both Chris, have and with any about picture tremendous the necessarily really of the comment a the also positive growth, picture broad performance and and but I one, not cylinders, earnings think overall one, we a think was where revenues firing FRE on a overall on are

on We exhibit the overtime. top continue strength over both expect overread no expand need leverage, comments. ability line think operating I would that time, of in our to margins terms into to generally, we've but and to exhibited the

Christoph Kotowski

Okay. you. Thank

Operator

is JMP please Securities, of Devin ahead. the Ryan, line next question from Your go

Devin Ryan

infrastructure Question morning. billion. $XX Good at Great. business Hi. on

committed I is said reopening fund XX% think and you raising. for

or relative space, get influencing how area what like something on there. you obviously firm white happening thinking about addressable were small now, if then appetite Washington LP the And sentiment to in that update love either It an is can, right big a and like think just looks about update the relatively Just opportunity how opportunities. I in a opportunity. to AUM the to you seems area of relevant the still guys market broader around

appreciated. So update would just be there an

Jon Gray

job about the our of delivered we've done returns terrific feel important we wise, out that's our So, most always primarily great we've a business the box, for this for thing customers, because infrastructure customers. some the is generally What of hard a think I would particularly as environment. duration in and owning with a long say infrastructure, inflationary about assets in lot yield rising there's interest people

What We of like funds, will a Core capital. suspect business, business I capital, a the you on responses the we'll in happen not you would so institutional that done you then estate the as to money quarterly queue But our business like investment is big What real is We've more the raise based this down BPP is Plus fiber-to-the-home have digital to a Southeast good in. about you made this a We out we we like large what assets draw tends just of business. So, can to the fundraising point would basis. is deploy the really invest in investment have start I surge datacenters. goes raise in type down infrastructure. a U.S.

they a where there some under attractive many asset And We are as find over and class think roads have attractive to like this open-ended investors ports really well. airports. and it there transportation places funds I and not liquidity said, as lot, that they're exposed and that are I provide businesses time around

long-term to is that potential. this $XX its billion business a believe, is today I So, at relative small,

Michael Chae

doesn't emerges there mentioned Jon strategy just partnerships on. then private future. not gravy, the on out time whether demand the physical The the private -- and as of we've will investors to I sort be around are the sort like legislation [Indiscernible] in in governments pass over but or for rely large, today. our we're public with areas world. come and interesting which solution of the is of that would and that and infrastructure between something the private And add GAAP or partnerships been current deals capital doing, will And if I that's primary digital that to it so just it infrastructure expands depending organically, say demand

Devin Ryan

you. Thank Great. Okay.

Operator

Goldman Blostein, the Sachs. of Alex Please proceed. come final Our from questions line

Alexander Blostein

morning. guys. Great. Hey, Good

phone about capacity discussion with I you about around to earlier. plenty think like you The follow some product really not have the issues of and origination on retail I various for sounds it. worry addressed Sorry dynamics wanted concentration capacity. platforms. of to really the the again, which with have up on distribution is respect really capabilities Jon, capacity that to earlier

for to the it's have business given any single growing, how today given much respect manager? of there quickly can single you Just with size horizon the just capital in the been Thanks. are and with how platform concerns each distribution a

Jon Gray

is market a It's is an A multi-trillions capital individual have news of assets can still number question. of small. that with so good of of under a like lot house, large is seem good distribution places management. these pretty The even what the dollars

alternatives. investable exposure we think with very assets, of We in X% think around point trillion billion, of early you IRAs. even think to than world billion or things savings And something, if of very, target type is And which $XX maybe Asia, don't days we're even U.S., So, alternatives particularly to I the dollars it's traditionally. I do. I more a looking percentage. know $XX XX there's the small are Overall, $XX With with up of the $XXX number. people or the million or $X a low and a for allocated end wealth. still of billion billion, lot also, would along they path out globally I there's the

closing, go, is on so think we the days journey. can when reason where significant. about this early so, we're retail the And yes, the we're in potential And excited is,

world, insurance, fast And I in think the still that continue days as in and early we're well. capital. to manage folks the story us we're for allocations is channel to see increasing institutional in similar like growing we

so very So us platform, is really in a scalable look optimism having strong multiple in us these as very gives powerful channels much combination with and this we enthusiasm forward. this what

Alexander Blostein

very Thanks much.

Operator

for remarks. now Tucker hand Thank like you. And over to Weston I'd closing to

Weston Tucker

today. Thanks, following call. I for us to joining up forward the look Great. after everyone,

Operator

Goodbye.

Blackstone (BX) 21 Oct 212021 Q3 Earnings call transcript