Jan 30 (Reuters) - Blackstone BX.N trounced Wall Street estimates for fourth-quarter profit on Thursday, fueled by a pickup in dealmaking, while the assets under management at the world's largest alternative investment firm reached a record $1.13 trillion.
Lower interest rates, Donald Trump's victory in the U.S. presidential election and easing economic uncertainty have powered a global resurgence in deals, with North America leading the activity in recent months.
Blackstone's fee-related earnings jumped 76% to a quarterly record of $1.84 billion.
"Earnings growth accelerated sharply, while the key drivers of our business – inflows, investment activity and realizations – all reached their highest levels in two-and-a-half years," CEO Steve Schwarzman said. "As we move forward in 2025, the firm is exhibiting significant momentum."
Blackstone's distributable earnings surged 56% to $2.2 billion, or $1.69 per share, in the three months ended Dec. 31 compared with $1.4 billion, or $1.11 per share, a year earlier.
Analysts had expected $1.46 apiece, according to data compiled by LSEG.
BRIGHT OUTLOOK FOR DEALS
Leveraged finance activity is expected to rebound this year as borrowing costs decline, enabling private equity firms to finance deals cheaply and complete more acquisitions.
Some of the world's largest buyout firms, including Blackstone, have begun pursuing large leveraged acquisitions as the financing outlook improves.
Blackstone said fourth-quarter inflows were $57.5 billion, bringing full-year inflows to $171.5 billion. It deployed $41.6 billion in capital in the quarter.
Lower rates are also expected to boost corporate earnings and real-estate valuations, enhancing exit opportunities and deal flow across broader markets.
In November, Blackstone agreed to buy sandwich chain Jersey Mike's Subs in a $8 billion deal. In the same month, it also struck a $4 billion deal to take Retail Opportunity Investments ROIC.O private.
Last month, the company said it will buy a high-end office building in central Tokyo for $2.6 billion, the biggest ever real-estate outlay by a foreign investor in Japan.
(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
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