Blackstone guides to Q4 realised revenues and income of more than $775m

Blackstone is guiding to revenues and income from investment realisations in the fourth quarter of more than $775m (£618.3m), more than double the value recorded in the third quarter.

The alternative asset manager said this includes revenue related to investment realisations closed to date in the fourth quarter, as well as certain non-fee related incentive fees and investment income.

The estimate comprises of around 95 per cent realised performance revenues and five per cent realised principal investment income.

Blackstone reported realised performance revenues of just over $342m in the third quarter and realised principal investment income of around $40m.

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Earlier this year, Blackstone reported that its assets under management hit a record $1.1tn in the third quarter. The firm’s private credit portfolio returned 3.6 per cent over the quarter, bringing its annual returns up to 16.7 per cent.

During Blackstone’s third-quarter results presentation it was revealed that the asset manager’s credit arm had taken over from real estate to become the firm’s biggest business. In the quarterly earnings call, Blackstone’s president Jonathan Gray said that he is building “a third-party performing credit juggernaut.”

Blackstone has been bolstering its private credit operations in recent months with a series of new hires. Most recently, Blackstone appointed KKR veteran Jack Ervasti and former Ares executive Andie Goh as managing directors in the firm’s asset-based debt team.

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