Oct 22 (Reuters) \u2013 Blackstone, the world\u2019s largest alternative asset manager, posted a drop in third-quarter earnings on Thursday, as a turbulent market environment weighed on its ability to cash in \u200bon investments.<\/p>\n
Global markets have been roiled by surging bond yields, \u200cexpectations of higher-for-longer interest rates and elevated market volatility from the Iran war.<\/p>\n
As a result, many prospective deals are being put on hold, leading to a slowdown in deals and IPOs in the first half of the year. Global M&A \u200cactivity \u200bfell 41% sequentially in the third quarter, \u2060according to LSEG data.<\/p>\n
Blackstone\u2019s net \u2060realizations, which track proceeds from investment exits, fell 34% to about $332 million, weighed down by a nearly 50% drop in its private equity business.<\/p>\n
Distributable earnings, or profit available to shareholders, fell 13% \u200bto $1.32 per share. Analysts on average had expected $1.26, according to data compiled by LSEG.<\/p>\n
Shares of the company fell 2.2% in premarket trading.<\/p>\n
Blackstone\u2019s \u2060results, however, were cushioned by net inflows \u2060of more than $63 billion, pushing assets under management to $1.37 \u200btrillion and boosting fee-related earnings by 6%.<\/p>\n
Its credit and insurance business marked \u200bthe largest chunk of new inflows, bringing in nearly $36 billion, \u200cfollowed by private equity with $12.6 billion.<\/p>\n
Fee-related earnings from managing investments in its private equity funds jumped 26% to $619 million.<\/p>\n
Alternative asset managers are grappling with a slide in their stock prices this year, as investors \u2060turned cautious on prospects of slower future growth and potential disruption from AI advancements on companies in their portfolios.<\/p>\n
Private credit in particular has been subject \u2060to investor jitters, with \u200clarge managers reporting a surge in redemption requests \u2060over the prior quarters.<\/p>\n
Blackstone said last month that \u200brequests in \u200cits BCRED fund remained elevated in the third \u200bquarter, but \u2060has maintained that fundamentals of the portfolio remain healthy.<\/p>\n
Its shares have plummeted nearly 30% this year, largely in line with other asset managers and compared with a 13% gain in the broader market and about 2% in the S&P 500 Financials index.<\/p>\n
(Reporting by Utkarsh Shetti in Bengaluru; Editing \u200bby Arun Koyyur)<\/p>\n","protected":false},"excerpt":{"rendered":"Oct 22 (Reuters) \u2013 Blackstone, the world\u2019s largest alternative asset manager, posted a drop in third-quarter earnings on…\n","protected":false},"author":2,"featured_media":890827,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[28,112],"class_list":["post-890826","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-business","tag-markets"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/890826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=890826"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/890826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/890827"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=890826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=890826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=890826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}