April 17 (Reuters) – Hastone’s first-quarter profit rose 11% on Thursday, due to higher earnings in asset sales from its private equity and credit operations.
For the three months ended March 31, cash distributions that could be used to pay dividends represent cash that could be used to pay dividends, increased by $1.41 billion, or $1.09 per share, compared to $1.27 billion, or 98 cents per share each year.
Policy uncertainty under President Donald Trump, especially about tariffs, has led to rough markets and curbed demand for deals – a sharp reversal earlier this year when hopes of deregulation have strengthened enthusiasm.
But Blackstone’s results highlight the opportunity for large alternative asset managers to seize selective trading even in challenging environments.
“We are in good shape in terms of the current environment,” said Stephen Schwarzman, CEO of Blackstone.
Schwarzman, a longtime Trump supporter, said last month’s tariffs could boost U.S. manufacturing capacity, although that was before revealing the full scope of responsibility.
Since then, several high-profile corporate executives have stepped up their recession warnings and urged the government to negotiate a trade deal.
Credit momentum continues
Blackstone attracted $61.64 billion inflows in the quarter, which helped its management’s assets climb 10% to $1.17 trillion.
About half of the inflows are directly into the credit and insurance sector, which provides companies with a wide range of debt financing options.
The world’s largest alternative asset manager has positioned himself as a key player in the private credit space. Companies seeking flexible financing options are increasingly turning to investment companies, such as Blackstone instead of traditional banks.
Blackstone’s private equity division also performed well, with distributable revenues in the segment rising 13% to $564.6 million. The division’s results were helped by a $6.5 billion asset sale.
However, the real estate sector continues to be dragged down, with AUM falling 6%. Rising interest rates weaken the value of the portfolio.
Blackstone has fallen 25% so far this year, while peers Apollo Global and KKR have fallen 24% and 31% respectively. (Reported by Niket Nishant in Bangalore; Edited by Krishna Chandra Eluri)
