Blackstone on track for softer 3Q returns as exits stall
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The news: Blackstone flagged it is on track to post lower profits from selling investments in the third quarter, as deal exits remained muted, Bloomberg reported citing a statement.
The numbers: The world’s largest alternative asset manager disclosed realised performance revenue and realised principal investment income for the third quarter through Tuesday are well below last year’s Q3 totals, according to the report.
Realised performance revenue of about USD225 million and realised principal investment income of around USD45 million from the period compared with the respective measures of USD337.9 million and USD55.5 million in 2023, it said.
Blackstone’s shares fell over 3%.
The context: It is the first time Blackstone has reported such figures.
Although the numbers aren't directly comparable, the disclosure follows foments from CFO Michael Chae at a recent conference where he said a robust recovery in investment exits wouldn’t happen before the end of the year.
The numbers highlight private equity firms are still struggling to exit assets bought when interest rates were much lower, even as the Federal Reserve's begins its rate-cutting cycle.
The source: Bloomberg
