The following is a summary of the Blackstone Inc. (BX) Q4 2023 Earnings Call Transcript:

Financial Performance:

Blackstone’s Q4 featured active investment activity, with $31 billion deployed, up 2.5 times from Q3.
The firm achieved gross returns of 16.4% in private credit strategies and 13% in liquid credit.
Blackstone’s corporate private equity operating companies reported healthy revenue growth of 7% YoY in Q4.
They raised nearly $5 billion in Q4.
Blackstone’s total AUM increased 7% year-over-year to record levels.
Total inflows for the year reached nearly $150 billion. Base management fees rose 7% to a record $6.5 billion.
Fee-related earnings were stable at $4.3 billion for the year or $3.58 per share.
Blackstone reported GAAP net income of $109 million for the Q4.
Distributable earnings were $1.4 billion or $1.11 per common share in Q4.

Business Progress:

The firm foresees growth in their insurance channel, predicting AUM will reach $250 billion over the next years.
An increase in investment activity was observed such as the privatization of digital marketplaces Adevinta and Rover.
Blackstone has observed signs of real estate recovery and plans to deploy its $65 billion dry powder accordingly.
They launched BXPE in January which raised $1.3 billion and will tap into various investment capabilities in private equity.
Blackstone aims to leverage the maturing real estate market for future realizations, despite a delay anticipated in the H1 2024 realizations.
Blackstone is set to significantly increase management fees by late 2024, boosted by drawdown funds having raised over 80% of their $150 billion target.
Its perpetual capital platform, representing 44% of fee earnings AUM, continues to expand with key drivers being BCRED and infrastructure platform.
The firm plans to launch its fifth private credit opportunistic strategy targeting $10 billion.