Blackstone and other private equity firms have capitalized on low interest rates and the economic recovery from the COVID-19 pandemic to sell many of their assets for top dollar.
The New York-based firm reported distributable earnings of $1.28 per share, up 112% from a year ago, exceeding the average Wall Street analyst estimate of 91 cents, according to Refinitiv. Its shares rose 3.5% to $133.25 on Thursday morning, giving the firm a market capitalization of more than $154 billion.
"We believe our portfolio overall is well-positioned for future cycles, including a likely scenario of rising interest rates," Blackstone Chief Executive Stephen Schwarzman told analysts on an earnings call.
Blackstone said it cashed out on $21.8 billion worth of assets during the quarter, including the sale of its stake in U.S. supply-chain software firm Blue Yonder to Japanese electronics giant Panasonic Corp.
Blackstone also said it spent $37.1 billion on new investments, including the $6.7 billion privatization of data center operator QTS Realty Trust Inc and the acquisition of single-family rental company Home Partners of America in a $6 billion deal.
Blackstone said its private equity fund appreciated by 9.9% during the quarter, compared with a 0.23% rise in the S&P 500 index over the same period. Opportunistic and core real estate funds rose 16.2% and 7.6%, respectively.
Under generally accepted accounting principles (GAAP), Blackstone said its net income nearly doubled to $1.4 billion, driven by investment income. Its net accrued performance revenue, which represents paper profit that is yet to be cashed, reached $8.3 billion.
Blackstone's total assets under management rose to $730.7 billion, from $648.8 billion three months earlier. It ended the quarter with $127.2 billion of unspent capital and declared a quarterly dividend of $1.09 per share.
(Reporting by Chibuike Oguh in New YorkEditing by Chizu Nomiyama and Matthew Lewis)
By Chibuike Oguh
