Blackstone reported $880.9 billion in assets under management as of Dec. 31, up 42% year-over-year, its fastest growth in a decade, putting it on track to reach $1 trillion in AUM in 2022, four years ahead of a goal set by the firm three years ago, said Stephen A. Schwarzman, chairman and CEO, on Thursday during Blackstone's earnings call.
Blackstone's AUM increased 21% from $730.7 billion as of Sept. 30.
Mr. Schwarzman attributed the yearly AUM increase, in part, to $270.5 billion of inflows in 2021, including $154.8 billion of inflows in the fourth quarter.
"No other alternative firm in the world has approached this level of absolute growth in a single year," he said.
Private equity was Blackstone's largest business with $261.5 billion in AUM as of Dec. 31, up 13% from the end of the prior quarter and 32% from Dec. 31, 2020.
Real estate, which Mr. Schwarzman said generated nearly half of Blackstone's earnings in 2021, had $279.5 billion as of Dec. 31, an 21% increase from Sept. 30 and up 49% year-over-year. Credit and insurance had $258.6 billion in AUM as of Dec. 31, up 37% from the end of the prior quarter and 68% higher than the end of the year-earlier quarter. Hedge fund solutions was at $81.3 billion as of Dec. 31, up from 1% from Sept. 30 and 2% from Dec. 31, 2020.
Blackstone had $135.8 billion in dry powder at the end of the fourth quarter.
"While higher rates can be a headwind for liquid markets, with $136 billion of … dry powder capital across the firm, we can move quickly to invest when pricing becomes more favorable," Mr. Schwarzman said.
Blackstone's GAAP net income was $2.9 billion for the fourth quarter and $12.4 billion for the year.