Blackstone Group on Thursday reported it had a record high $136.8 billion in fee-earning assets under management as of Dec. 31, up 25% from 2010.
The firm’s largest segment by assets remains its hedge fund-of-funds business, which oversees $37.8 billion.
Performance fees for the year declined 21% to $358.1 million, and investment income fell 59% to $65.5 million, according to an earnings statement from Blackstone.
Economic net income, excluding some costs tied to the firm’s 2007 IPO, dropped to $449.9 million from $512.7 million a year earlier.
Blackstone, led by CEO Stephen Schwarzman, has been ahead of rivals in raising new funds and last month closed on $16.2 billion for the sixth-biggest private equity fund ever, according to London-based researcher Preqin. The firm over the past years expanded its hedge fund-of-funds business as well as its advisory group, which counsels companies on mergers and restructurings, to reduce reliance on private equity.
In December, Blackstone won as much as $1.8 billion in state pension money from New Jersey, the most an investor has committed to the firm at one time since it closed its first buyout fund in 1987. The state will put up to $1.5 billion into four new custom funds called separately managed accounts.
Blackstone indicated in its fourth-quarter earnings release that assets under management for its Hedge Fund Solutions group grew 14% in the fourth quarter to $37.8 billion at Dec. 31. Attributing the majority of inflows to its commingled and customized investment products, Blackstone said net inflows were $271.5 million for the fourth quarter, bringing year-to-date net inflows to $6.4 billion.
Data Editor Timothy Pollard contributed to this story.