Standup Trends: Blackstone’s Q3 Profits Falter Amid Exit Lull

Wednesday, 25 September 2024, 13:14

Standup analysis indicates that Blackstone's Q3 performance is underwhelming, with lower profits from investment exits. The private equity giant reported a significant drop in realised performance revenue and principal investment income compared to last year.
Capitalbrief
Standup Trends: Blackstone’s Q3 Profits Falter Amid Exit Lull

Standup Insights: Blackstone's Investment Exits in Q3

Good morning. Here's what to know today. 1. Exit lull: 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 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 US$225 million ($329.97 million) compared to US$337.9 million last year.
  • Realised principal investment income of around US$45 million versus US$55.5 million in 2023.
  • Blackstone’s shares fell over 3%, marking a troubling trend.

2. Broader market context: The numbers highlight that private equity firms are still struggling to exit assets bought when interest rates were much lower, even as the Federal Reserve begins its rate-cutting cycle.

Standup Review of Market Impacts

  • Indicators of market stagnation raise concerns for investors.
  • Future outlook remains uncertain amid geopolitical tensions and economic pivots.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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