Blackstone’s AUM rises 5.6% in quarter, 21% for year

Blackstone reported a record $684 billion in assets under management as of June 30, up 5.6% from $648.8 billion at the end of the first quarter and 21% year over year.

"The second quarter, in my view, was the most consequential in our history, not just in terms of financial results, but more importantly, in terms of setting the foundation for the firm's long-term growth trajectory," as Blackstone builds its retail investor and insurance businesses, Chairman and CEO Stephen A. Schwarzman said Thursday during an earnings call.

On July 14, Blackstone announced a deal to acquire a 9.9% equity stake in American International Group's Life & Retirement business that includes the firm managing an initial $50 billion but that is expected to grow to "at least $92 billion of AUM over time," Mr. Schwarzman said.

"Taken together, the retail and insurance channels have approximately $110 trillion of assets globally," nearly double the institutional investor universe that historically Blackstone has focused on exclusively, he said.

Mr. Schwarzman said that Blackstone currently has a market capitalization of $127 billion, making it the 70th largest public company in the U.S.

Blackstone officials forecast $200 billion of inflows in 2021, including the pending AIG deal, said Jonathan Gray, Blackstone's president and chief operating officer during the same earnings call.

Blackstone reported inflows of $37.3 billion in the second quarter and $116.3 billion in the 12 months ended June 30.

Blackstone's largest business by asset size, private equity, had $223.6 billion in AUM at the end of the second quarter, up 5.6% from $211.8 billion as of March 31 and up 21.5% from $184.1 billion at the end of the year-earlier quarter.

Blackstone had $207.5 billion in AUM in real estate as of June 30, up 5.7% from $196.3 billion at the end of the prior quarter and up 24.5% from $166.7 billion as of June 30, 2020.

Credit and insurance had $173.7 billion in AUM at the end of the second quarter, a 9.3% increase from $158.9 billion in AUM as of March 31 and a 26% increase from $137.8 billion year over year.

Hedge fund solutions AUM was $79.1 billion as of June 30, down 3.3% from $81.8 billion at end of the prior quarter, but up 4.5% from $75.7 billion as of June 30, 2020.

Perpetual capital AUM was $169.5 billion as of June 30, up 13.7% in perpetual capital AUM at the end of the first quarter and up 55% year-over-year.

GAAP net income was $2.9 billion for the second quarter and $6.2 billion year-to-date.

By comparison, GAAP net income was GAAP net income was $3.4 billion for the first quarter and $8.2 billion over the last 12 months ended March 31.