Blackstone AUM holds steady as net income, management fees rise

Blackstone Group LP

Blackstone Group reported $368.2 billion in assets under management as of March 31, relatively flat from Dec. 31 but up 7% from $356.3 billion as of March 31, 2016, according to the alternative investment firm's earnings report released Thursday.

Blackstone's year-over-year AUM growth reflected $66.5 billion of gross inflows in the year, including $14 billion in the quarter ended March 31. At the same time, $69.2 billion was returned to investors in the 12 months ended March 31.

Real estate had the most AUM with $102.1 billion as of March 31, flat from three months earlier and up 1% from March 31, 2016. Private equity was Blackstone's second-largest business segment with $99.7 billion in AUM, also flat from Dec. 31, but up 4% from a year earlier. The firm's credit business had $93.1 billion in AUM, flat from three months earlier, but up 18% from March 31, 2016.

GAAP net income attributable to The Blackstone Group was $462 million for the quarter and $1.3 billion for the year ended March 31. That compares to $160 million and $240 million for the quarter and year ended March 31, 2016.Net management and advisory fees were up 5% to $608.9 million in the three months ended March 31 from the quarter ended March 31, 2016. Net management and advisory fees were $2.5 billion in the year ended March 31, down 2% from the prior 12-month period. Realized carried interest was up 381% to $1.1 billion for the quarter ended March 31 from the same period a year earlier, while realized incentive fees were up 66% to $47.2 million in the quarter from the year-over-year quarter. Realized carried interest was $2.4 billion for the year ended March 31, up 6% from the prior 12-month period, while realized incentive fees were $189.3 million for the year, down 1% from the prior 12-month period.

Meanwhile, realized investment income was $251.3 million in the three months ended March 31, up from a $12 million loss for the three months ended March 31, 2016. Realized investment income was $542.1 million for the 12 months ended March 31, up 53% from the previous year.