Blackstone sees ‘remarkable strength’ in corporate private equity – Blackstone (NYSE:BX)

Michael Chae, Chief Financial Officer (CFO) for Blackstone Inc. (NYSE:BX)noted Thursday during its fourth-quarter 2025 investor call that the firm has seen “remarkable strength” in corporate private equity amid a turbulent year for markets impacted by tariffs, geopolitical instability and the longest U.S. government shutdown in history.

Total assets under management in Blackstone’s private equity channel rose 18 percent to $416 billion in the fourth quarter, with inflows of $20 billion in the quarter and $68 billion for the year, details from Blackstone’s Q4 report showed.

Inflows in the quarter included $8 billion in Secondaries, including the tenth flagship Secondaries fund, $4.2 billion in Infrastructure, $1.6 billion in Tactical Opportunities, $1.2 billion for the third Corporate Private Equity Asia fund and $1.0 billion for the sixth Life Sciences fund.

Stephen A. Schwarzman, chairman and CEO of Blackstone noted that the company’s investment in Medline was “a perfect illustration of the power of Blackstone’s private equity model.”

Since Blackstone retained ownership of the company in 2021, they have accelerated the medical supply company’s growth through acquisitions and expanded its product offering. Schwartzman continued that more investors are “discovering the benefits of private market solutions, including private wealth and insurance channels.”

“Our business has performed exceptionally well despite the high cost of capital in recent years, and we believe we are now moving to a more supportive environment with a portfolio concentrated in attractive sectors,” he added.

The company currently has nearly $200 billion in dry powder available for future investments, an increase of 11 percent year over year. The private equity channel currently has $77 billion, and the credit and insurance channel has $63 billion.

Private credit

In the private lending channel, total assets under management rose 18 percent to $443 billion, with inflows of $39 billion in the quarter and $132 billion for the full year.

Inflows in the quarter included $16 billion to the global direct lending strategy, including $2.4 billion for direct lending to SMAs, $3.3 billion of equity raised for BCRED, and $700 million of equity raised for ECRED. Premium income also included $11.8 billion for the infrastructure and asset-based lending strategies, including $8.0 billion for insurance SMAs, Blackstone’s fourth-quarter earnings report showed.

The channel also closed four new CLOs (two in the US and two in Europe) for $2 billion.

Private loans recorded a gross return of 2.4 percent, while liquid loans recorded a gross return of 1.3 percent in the quarter and 11.2 percent and six percent for the entire year, respectively.

“In the credit sector, we saw record implementation in 2025, including the emergence of a significant new source of direct origination, customized long-term capital solutions for investment-grade companies. We have executed several of these to date, and we expect to do more over time,” the CFO said.

Company-wide performance

The company also saw its highest inflows in the final quarter of 2025, adding $71 billion to its equity, credit and real estate funds. This brings the company’s total assets under management up 13 percent year over year to $1.3 trillion.

The company deployed $42 billion during the quarter and $138 billion for the year, with another $23 billion undeployed in the quarter.

Chae also noted that Blackstone is “extremely well positioned” to benefit against the backdrop of AI-related productivity.

Semiconductor and data center manufacturing, as well as the development of artificial intelligence, is a key driver of economic growth and creates “a need for capital solutions,” he added.

Blackstone’s ownership of the world’s largest data center platform, as well as their position as a “major investor” in the modernization and growth of the electric grid, puts them well-positioned to capitalize on the growth and opportunities ahead.