Blackstone Inc. (BX.N) reported first-quarter profit that beat estimates, driven by strong performance in its private equity and credit businesses. However, the company's CEO, Stephen Schwarzman, warned that heightened market volatility, particularly due to tariff uncertainties, could hinder asset sales in the near term.
The company's distributable earnings for the quarter were $1.41 billion, or $1.09 per share, compared to $1.27 billion, or 98 cents per share, in the same period last year. Analysts had expected $1.05 per share, according to LSEG data.
Blackstone's shares climbed 1.2% after the results were announced but have dropped around 25% year-to-date, underperforming the S&P 500, which is down about 10%. Peers Apollo Global (APO.N) and KKR (KKR.N) have also seen declines of 24% and 31%, respectively, this year.
The company saw $61.64 billion in inflows during the quarter, with assets under management climbing 10% to $1.17 trillion. Blackstone has $177 billion in dry powder, or uninvested capital, ready to be deployed.
Schwarzman noted that uncertainty around tariffs and their potential impact on economic growth and inflation has dramatically affected investor sentiment. "We believe that fast resolution is critical to mitigate risks and keep the economy on a growth path," he said.
Despite the concerns, Blackstone's private equity arm saw a 13% rise in segment distributable earnings to $564.6 million, with $6.5 billion in asset sales. The real estate arm's assets under management declined 6%, but the company noted improved conversations with institutional limited partners and early signs of recovery.
Blackstone's credit and insurance segment attracted about half of the total inflows, highlighting the growing importance of private credit as companies seek flexible financing alternatives to traditional banks.
The company declared a quarterly dividend of $0.93 per share, payable on May 5, 2025, to shareholders of record as of April 28, 2025.