Blackstone has reported a marked flows divergence for its flagship funds in the last quarter with private credit fund BCRED experiencing heavy outflows while its BREIT real estate fund saw inflows for the first time in three years.
In its quarterly results for the three months to 31 March, the world’s largest alternative asset manager said total assets under management (AUM) was US$1.3 trillion ($1.8 trillion). It reported inflows of US$68.5 billion during the quarter, which brought the total for the last 12 months to US$246.3 billion.
On its private credit BCRED fund, which is US$93.9 billion and the world’s largest private credit fund, it saw quarterly outflows of US$3.7 billion. It also posted its first monthly loss in more than three years, losing 0.4 per cent in February.
However, on its US$53.9 billion real estate BREIT fund, this raised US$1.2 billion which was the first time it had positive inflows since 2022. The BCRED inflows were a welcome improvement after the fund suffered a period of heavy redemptions in 2022-23, similar to how BCRED is faring currently.
Total AUM in the real estate division stands at US$315 billion and during the quarter, it was announced Chris Tynan, Blackstone’s head of property business in Australia, would be stepping down after a decade.
Stephen A. Schwarzman, chairman and chief executive, said, “Blackstone delivered outstanding first‑quarter results despite the turbulent environment, highlighted by almost $70 billion of inflows and positive appreciation across nearly all of our flagship strategies. Our all-weather model protects us in these times of disruption while also allowing us to invest where we see the greatest opportunity.”
