- Distributable Earnings Reached $2.2 billion or $1.75 per share in Q4, with full-year distributable earnings hitting a record $7.1 billion.
- Record Inflows Q4 inflows surged to $71 billion (highest in 3.5 years), with full-year inflows totaling $240 billion.
- Assets Under Management (AUM) Grew 13% YoY to $1.275 trillion, driven by private wealth (16% YoY to $300B) and infrastructure ($77B, 40% YoY).
- Fee-Related Earnings Q4 fee-related earnings reached $1.5 billion ($1.25/share), with management fees up 11% YoY to $2.1 billion.
- Private Market Momentum Blackstone holds 50% of private wealth revenue across major alternatives, with $200 billion in dry powder and $138 billion invested in 2025.
Financial Performance Highlights
The company's assets under management (AUM) grew 13% year over year to a record $1.275 trillion. Net accrued performance revenues increased 7% to $6.7 billion. The company's investment performance was strong, with infrastructure leading the way with 8.4% appreciation in Q4 and 24% for the full year.
Segment Performance
Blackstone's private wealth business grew 16% year over year to over $300 billion, with record gross sales. The infrastructure platform grew 40% year over year to $77 billion, while the credit platform saw record deployment in 2025. The real estate business is navigating the early stages of the sector's recovery, with the company taking advantage of choppy investor sentiment to lean into deployment.
Outlook and Valuation
Looking ahead, the company expects strong inflows again in 2026, driven by its performance and continuous innovation. With a 'P/E Ratio' of 36.84 and 'ROE (%)' of 36.17, the company's valuation reflects its strong growth prospects. Analysts estimate next year's revenue growth at 22.8%. As Jonathan Gray mentioned, the company feels good about 2026 and 2027, expecting an inflection point upward in base management fee growth rates.
Growth Drivers
The company is well-positioned to benefit from the growing demand for private market solutions, driven by the ongoing technology and AI-driven investment boom. Blackstone is investing in AI, with a focus on deploying it across its portfolio companies to drive productivity gains.
Private Credit and Real Estate
The appeal of private credit is not just about absolute returns, but also relative returns and the return premium it can generate. The company is seeing strong demand from institutional investors in credit. In real estate, the deployment pipeline looks strong, with a focus on core versus opportunistic investments.