Stephen Schwarzman, chairman, CEO and co-founder of alternatives giant Blackstone, called for a fast resolution to tariff negotiations in its first-quarter earnings conference call April 17.
Schwarzman said Blackstone reached $1.17 trillion in assets under management as of March 31, up 10% year-over-year and 3.5% from three months earlier, specifically noting $61.6 billion in net inflows during the first quarter.
“The firm delivered these results against a turbulent market backdrop, which, of course, has further intensified since quarter end,” Schwarzman said. “Uncertainty around tariffs and the potential impact on economic growth and inflation has dramatically impacted investor settlement. It's too early to assess the full implications of tariffs, which depends on the outcome of unprecedented multilateral negotiations with perhaps over 100 countries around the world. The complexity of the situation means that patience and staying power are key.”
Schwarzman added that importantly, the economy entered the period of turbulence in a fundamentally strong position, with productivity increasing significantly over the past several years and technological innovation accelerating.
“The most important questions are: How sustained will this period of uncertainty be? And what are the second order consequences, both domestically and for foreign countries?” Schwarzman said. “We believe a fast resolution is critical to mitigate risks and keep the economy on a growth path.”
Schwarzman said the firm has flexibility to respond to changing conditions in terms of announced tariffs and while direct exposure across their portfolio is limited, there will be a potentially material impact to a “relatively small group of our companies in real estate.”
“Specifically, tariff effects are likely to drive up construction costs and further reduce new supply,” Schwarzman said.
