Blackstone Inc. (BX) | Investment Case

1. Company Snapshot

1.a. Company Description

Blackstone Inc.is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies.The firm typically invests in early-stage companies.

It also provide capital markets services.The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia.The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, enterprise tech and consumer, as well as consumer technologies.

The firm considers investment in Asia and Latin America.It has a three year investment period.Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.

Blackstone Inc.was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe and North America.

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1.b. Last Insights on BX

Blackstone Inc.'s recent performance was negatively impacted by rising expenses and lower segment revenues, despite a record $1.27 trillion in assets under management (AUM) and $71.5 billion in inflows. The company's Q4 earnings beat was overshadowed by increased costs. Additionally, the deal environment is showing signs of strength, but concerns about an AI bubble and market risks persist. Blackstone's majority investment in NetBrain and leadership updates may not have provided the expected boost. (Source: Q4 earnings report)

1.c. Company Highlights

Last Price	136.24
Change Percentage	-3.57%
Open	139.79
Previous Close	141.28
Market Cap ( Millions)	163598
Volume	1428990
Year High	190.09
Year Low	115.66
M A 50	151.85
M A 200	154.96

FCF Yield	1.46%
Dividend Yield	3.44%
ROE	36.17%
Debt / Equity	143.62%
Net Debt / EBIDTA	136.04%
Price To Book	12.28
Price Earnings Ratio	35.24
Price To FCF	68.7
Price To sales	18.14
EV / EBITDA	36.13

2. Blackstone's Strong Q4 and Full-Year 2025 Results

Blackstone Inc. reported distributable earnings of $2.2 billion or $1.75 per common share for Q4 2025, beating analyst estimates of $1.54. The company's GAAP net income was $2 billion for the quarter. Fee-related earnings were $1.5 billion, or $1.25 per share, with management fees increasing 11% year over year to $2.1 billion. For the full year, distributable earnings grew nearly 20% to $7.1 billion, and fee-related earnings increased 9% to $5.7 billion.

Publication Date: Feb -02

                                    📋 Highlights
                                    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.

3. NewsRoom

The Only Investing Strategy I'd Trust With My Entire Financial Future

14:19

Source: seekingalpha.com

Top 10 High-Yield Dividend Stocks For February 2026

11:22

Source: seekingalpha.com

DivcoWest and Blackstone Real Estate Secure Full Building Lease with AI Leader Anthropic at 300 Howard Street

Feb -02

Source: businesswire.com

Mediolanum International Funds Ltd Buys 58,523 Shares of Blackstone Inc. $BX

Feb -02

Source: defenseworld.net

Liftoff Mobile IPO: Stock listing date nears for Blackstone-backed advertising technology startup

Jan -30

Source: fastcompany.com

Blackstone to Present at the Bank of America Securities Financial Services Conference 2026

Jan -30

Source: businesswire.com

10-12% Yields Trading For Pennies On The Dollar

Jan -30

Source: seekingalpha.com

Blackstone Says Deal Cycle Has Hit 'Escape Velocity' As IPO, M&A Activity 'Feels Like 2013' Again

Jan -30

Source: feeds.benzinga.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.48%)

6. Segments

Private Equity

Expected Growth: 14.1%

Blackstone's Private Equity segment is driven by strong deal making capabilities, increasing investments in real assets, and growing demand for alternative investments, positioning it for long-term growth.

Real Estate

Expected Growth: 14.1%

Blackstone's Real Estate segment is poised for growth driven by increasing globalization, urbanization, and the growing demand for logistics and e-commerce facilities, as well as the ongoing trend of companies outsourcing their real estate needs.

Credit & Insurance

Expected Growth: 8.5%

Blackstone's Credit & Insurance segment is expected to grow driven by increasing demand for lending and insurance services from individuals and businesses, as well as the firm's ability to leverage its scale and expertise to offer competitive products.

Multi-Asset Investing

Expected Growth: 10.2%

Blackstone’s Multi-Asset Investing segment growth is driven by increasing demand for diversified solutions across public and private markets, with institutional investors seeking to optimize their portfolios and manage risk.

Impact of Consolidation

Expected Growth: 10.5%

Blackstone's strategic consolidation efforts drive operational efficiency and profitability, leveraging cost synergies, and enhancing revenue growth through increased scale and diversified offerings.

Unallocated Interest and Dividend Revenue

Expected Growth: 10.5%

Strong private equity performance, robust dividend income, and a diversified investment portfolio drive Unallocated Interest and Dividend Revenue growth at Blackstone Inc.

Unrealized Performance Revenues

Expected Growth: 12.5%

Strong pipeline of pending investments, particularly in private equity and real assets, drives growth. Blackstone’s scale and diversification also contribute to its growth momentum.

Unallocated Unrealized Principal Investment (Income) Loss

Expected Growth: 15.6%

Blackstone's unearned income is driven by its diversified portfolio, strong investment pipeline, and increasing AUM. The company's expertise in private equity, real assets, and credit investments positions it for long-term growth.

Intersegment Eliminations

Expected Growth: 10.2%

Consolidation of intercompany transactions and balances enables Blackstone Inc. to streamline operations, enhance financial transparency and reduce complexity, driving growth.

Unallocated Transaction-Related Charges

Expected Growth: 5.2%

Blackstone's unallocated transaction-related charges are driven by the growth of its alternative investment products, increasing demand for asset management services, and expansion into new markets. These drivers are expected to contribute to a forecasted CAGR of 5.2%.

7. Detailed Products

Private Equity

Blackstone's private equity segment provides investment management services to institutional investors, corporations, and individuals. The segment focuses on leveraged buyouts, growth equity investments, and opportunistic investments in various industries.

Real Estate

Blackstone's real estate segment provides a range of investment management services, including direct property investments, fund management, and investment in real estate securities. The segment focuses on various property types, including office buildings, apartments, and logistics facilities.

Credit

Blackstone's credit segment provides a range of credit-related investment management services, including leveraged finance, distressed debt, and real estate debt. The segment focuses on providing financing solutions to companies and investing in credit assets.

Hedge Funds

Blackstone's hedge funds segment provides a range of hedge fund investment strategies, including equity, fixed income, and event-driven strategies. The segment focuses on generating absolute returns through a range of investment approaches.

Infrastructure

Blackstone's infrastructure segment provides investment management services focused on infrastructure assets, including energy, transportation, and logistics. The segment focuses on generating long-term returns through investments in infrastructure companies and projects.

Tactical Opportunities

Blackstone's tactical opportunities segment provides investment management services focused on opportunistic investments, including investments in corporate debt, real estate, and other alternative assets. The segment focuses on generating returns through tactical investments in various asset classes.

8. Blackstone Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Blackstone Inc. operates in the financial services industry, specifically in private equity, real estate, and credit. While there are alternative investment firms and financial services providers, the threat of substitutes is moderate. Clients of Blackstone Inc. often seek specific types of investment solutions, and switching to a substitute may require significant changes to their investment strategies.

Bargaining Power Of Customers

Blackstone Inc.'s clients are typically institutional investors, such as pension funds, endowments, and insurance companies. These clients often have large amounts of capital to invest and may have some negotiating power. However, Blackstone Inc.'s reputation, track record, and range of investment products limit the bargaining power of individual customers.

Bargaining Power Of Suppliers

Blackstone Inc. relies on various suppliers, such as investment banks, law firms, and other service providers. However, the company has a large and diversified network of suppliers, which reduces the bargaining power of individual suppliers.

Threat Of New Entrants

The financial services industry, particularly private equity and real estate, has high barriers to entry. New entrants must have significant capital, expertise, and relationships to compete effectively. Blackstone Inc.'s established brand, experienced team, and extensive network make it difficult for new entrants to compete.

Intensity Of Rivalry

The financial services industry, particularly private equity and real estate, is highly competitive. Blackstone Inc. competes with other large private equity firms, such as KKR, Carlyle Group, and Apollo Global Management. The competition for deals, talent, and investor capital is intense, driving prices, fees, and innovation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.00%
Debt Cost	4.37%
Equity Weight	100.00%
Equity Cost	9.66%
WACC	9.66%
Leverage	0.00%

11. Quality Control: Blackstone Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BNY Mellon

A-Score: 6.7/10

Value: 4.6

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

BlackRock

A-Score: 5.7/10

Value: 2.2

Growth: 5.3

Quality: 7.9

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

Ameriprise Financial

A-Score: 5.7/10

Value: 4.4

Growth: 8.0

Quality: 7.6

Yield: 2.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

Ares Management

A-Score: 4.8/10

Value: 1.1

Growth: 5.7

Quality: 5.5

Yield: 6.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

Blackstone

A-Score: 4.8/10

Value: 0.3

Growth: 4.1

Quality: 7.4

Yield: 7.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

KKR

A-Score: 4.5/10

Value: 2.9

Growth: 6.6

Quality: 6.3

Yield: 2.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.66%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.66%

Blackstone Inc. - US09260D1072

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on BX

1.c. Company Highlights

Expensive

Strong Momentum

Average Quality

Earnings Beats

Revenues Beats

Earnings Miss

Stable Momentum

Average Growth

Revenues Miss

Better Quality

Average Yield

Medium Volatility

2. Blackstone's Strong Q4 and Full-Year 2025 Results

Financial Performance Highlights

Segment Performance

Outlook and Valuation

Growth Drivers

Private Credit and Real Estate

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.48%)

6. Segments

Private Equity

Expected Growth: 14.1%

Real Estate

Expected Growth: 14.1%

Credit & Insurance

Expected Growth: 8.5%

Multi-Asset Investing

Expected Growth: 10.2%

Impact of Consolidation

Expected Growth: 10.5%

Unallocated Interest and Dividend Revenue

Expected Growth: 10.5%

Unrealized Performance Revenues

Expected Growth: 12.5%

Unallocated Unrealized Principal Investment (Income) Loss

Expected Growth: 15.6%

Intersegment Eliminations

Expected Growth: 10.2%

Unallocated Transaction-Related Charges

Expected Growth: 5.2%

7. Detailed Products

Private Equity

Real Estate

Credit

Hedge Funds

Infrastructure

Tactical Opportunities

8. Blackstone Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Blackstone Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

12.e Scoring ^Insights

12.f DCF ^BETA