Strong Capital Gains Fuel Earnings Jump
Blackstone Inc. reported distributable earnings of US $1.89 billion, equivalent to US $1.52 per share, for the third quarter, an increase of 48% compared with the same period last year. This figure surpassed analysts’ estimates, which had projected around US $1.23 per share. The firm attributed the robust performance to heightened asset sales and improved activity in its core private equity business.
The company sold approximately US $30 billion worth of investments during the quarter, including about US $9.3 billion in private equity assets. That level of divestment more than doubled earnings from its private equity segment compared to the preceding quarter. The rebound in transaction volumes, especially in a year marked by elevated interest rates and economic uncertainty, underpinned the earnings acceleration.
Credit and Insurance Business Expands Assets Under Management
Meanwhile, Blackstone’s credit and insurance arm recorded inflows of $54.2 billion, lifting the firm’s total assets under management (AUM) to $1.24 trillion. This unit accounted for nearly two-thirds of the inflows and thus became a dominant driver of growth within Blackstone’s broader alternative asset management operations.
In addition to the inflows, Blackstone deployed roughly $26.6 billion of capital during the quarter and reported a “dry powder” (available investment capital) balance of approximately $188.1 billion. With the credit platform gaining traction, particularly in a market where asset quality concerns have been elevated, the company’s strategy appears to be shifting toward credit and insurance infrastructure alongside traditional buy-outs.
Deal Pipeline and Strategic Themes
The firm’s executives signalled that the current momentum carries into its deal pipeline. For example, Blackstone teamed with peer TPG Inc. to take the medical diagnostics company Hologic Inc. private in a transaction valued at up to $18.3 billion. According to Chairman and CEO Stephen Schwarzman, the firm sees growth opportunities in digital infrastructure and energy-related platforms, with its infrastructure-oriented private equity strategy performing exceptionally well.
Analyst commentary suggests the uptick in deal activity is being driven by “pent-up demand” following years of sluggish transaction volumes in the IPO and M&A markets. As one analyst noted, that dynamic may portend a strong 2026 for realizations.
Broader Industry Context and Risk Considerations
While Blackstone’s results demonstrate strength, the broader alternative asset management industry continues to face scrutiny, particularly around credit risk. Recent bankruptcies of companies such as First Brands Group and Tricolor Auto Parts have raised investor concerns about asset quality within credit portfolios. Blackstone’s own share price had fallen roughly 6% year-to-date prior to the earnings announcement, underperforming the benchmark S&P 500 index.
In this environment, the firm’s performance will be closely watched for signs of durability—especially whether fundraising and investment activity continue at scale and whether the credit arm can withstand potential setbacks. The strong inflows and elevated capital deployment signal confidence, yet the broader market backdrop underscores the need for ongoing vigilance.