Blackstone (BX.N) anticipates a surge in initial public offerings, potentially leading to one of its most significant years for such deals. The firm’s total assets under management reached a record $1.24 trillion, executives announced on Thursday. Blackstone is the world’s largest alternative asset manager. The company invests across asset classes on behalf of institutional and individual investors.
Recent months have seen a flurry of transactions, overcoming earlier volatility stemming from U.S. tariffs, as corporate boardrooms adapt to ongoing uncertainty. According to President and Chief Operating Officer Jon Gray, the “deal dam is breaking,” suggesting increased realisations over time. Piper Sandler analyst Crispin Love attributed Blackstone’s performance to robust revenue, driven by heightened deal activity, anticipating that 2026 could be a big year for IPO activity.
In the third quarter, distributable earnings jumped 48% to $1.89 billion, or $1.52 per share, surpassing analyst expectations. Blackstone executed $30 billion in investment sales during the quarter, including $9.3 billion in private equity assets, more than doubling earnings from that sector compared to the previous three months. The company took three companies public, including Legence, an energy and maintenance services provider. They also led a $7 billion investment in a liquefied natural gas facility owned by Sempra (SRE.N) in Texas.
Despite the positive outlook, shares of the alternative asset manager fell 5%, bringing the year-to-date decline to over 10%. Blackstone’s credit and insurance arm accounted for nearly two-thirds of the $54.2 billion in inflows during the quarter. Blackstone deployed $26.6 billion of capital in the quarter and has $188.1 billion in dry powder. President and Chief Executive Officer Stephen Schwarzman highlighted digital and energy infrastructure as areas for future growth, with infrastructure strategy performing best within private equity.