By Kevin Dowd, PitchBook
Blackstone has recorded substantial YoY growth for the third quarter running, logging attributable net income of $384.6 million (a 19% improvement compared to 3Q 2016) and economic net income of $834 million (up 21% YoY). That ENI equates to about 69 cents per share, easily exceeding the reported 54-cent estimate of industry analysts.
While those figures impress, they still don’t quite stack up to the firm’s first six months of the year. Blackstone registered 36% YoY growth in 2Q 2017 and a whopping 166% in 1Q.
The firm’s private equity unit experienced a 3.3% quarterly increase in value during 3Q along with a 3% rise in AUM, sending that latter figure past the $100 billion mark. Blackstone’s PE arm generated $164.8 million in ENI, an uptick from $132.1 million in 3Q 2016. The division invested $4.3 billion in the past three months, realized $2.4 billion and made an additional $3.2 billion in commitments.
In a related earnings call, Blackstone president Tony James expanded on the firm’s previously announced plans to raise up $100 billion for infrastructure investments. As you’d expect for such a massive pool of capital, the firm’s mandate will be diverse: Blackstone will reportedly use all that cash to pursue carveouts, investments in publicly listed companies, expansion capital deals and also to help fund new companies build from the ground up.
