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Alternatives

Blackstone assets increase 1% to record $371.1 billion

Blackstone Group's assets under management grew to a record $371.1 billion as of June 30, up 1% from March 31 and up 4% from March 31, 2016, according to the alternative investment firm's earnings report released Thursday.

Blackstone's AUM growth is due to a combination of fundraising, expansion of its businesses and fund appreciation, the earnings report said. Inflows into Blackstone investment strategies were $12.1 billion for the quarter and $57.4 billion for the year ended June 30. By comparison, Blackstone had inflows of $14 billion in the prior quarter and $69.2 billion for the year ended March 31.

GAAP net Income was $343 million for the quarter and $805 million for the year ended June 30.

Real estate had the most AUM, at $104 billion as of June 30, up 1.9% from March 31 and up 1% from June 30, 2016.

Private equity was Blackstone's second-largest business segment with $100 billion as of June 30, flat from both March 31 and June 30, 2016.

Blackstone's credit business was $94.5 billion in AUM as of June 30, up 1.5% from March 31 and up 11.6% from June 30, 2016. The year-over-year increase in credit assets was primarily due to fundraising. Blackstone executives raised $4.2 billion toward the first closing of a new distressed credit fund during the period and launched collateralized loan obligations, seven in the U.S. and three in Europe, collecting a total of $5.7 billion in assets.

Blackstone collected $696.8 million in management and advisory fees for the quarter, compared to $612 million for the year-earlier quarter. Performance fees were $757 million for the quarter ended vs. $449 million in the year-earlier quarter. Investment income accounted for $67.7 million for the three months ended June 30 compared to $59.8 million for the three months ended June 30, 2016.