"AI Investments Drive Growth"
[This article was reported on "Radar M," a paid media outlet specializing in the capital market in Mail Business, on July 24 (15:04)]
Blackstone, the world's largest alternative investment company, announced on the 24th that its operating assets (AUM) in the second quarter reached an all-time high of $1.35 trillion. It is up 11% year-on-year.
The inflow of funds in the second quarter reached about $70 billion, exceeding $260 billion on a cumulative basis in the last 12 months.
Blackstone cited large-scale investments related to artificial intelligence (AI) as the driving force behind this earnings growth. It is explained that the concentration of data centers, power and energy infrastructure, and advanced AI companies was also positive for fundraising and execution expansion.
The total asset value of Blackstone's global data center platform, including facilities under construction, has increased significantly from $130 billion earlier this year to $185 billion now.
Blackstone has also invested directly in growth companies including Antropics, OpenAI and SpaceX. It has launched a new Blackstone Digital Infrastructure Trust (BXDC) that allows ordinary investors to invest.
It has begun offering investors the opportunity to invest in stable new data center assets. The operating assets of the infrastructure-only investment platform, which was launched eight years ago, also increased 40% year-on-year to $90 billion.
"The strategy of pre-emptively investing in the mega-trend of AI has created outstanding performance in various sectors while creating new growth opportunities," said Stephen Schwartzman, Chairman and CEO of Blackstone.
John Gray, president and chief operating officer (COO) of Blackstone, said, "The results of strategic investments in AI and infrastructure for a long time are leading to tangible results," and stressed, "The inflow of funds is continuing from all funding channels, including institutions, insurance companies, and individuals."
Consolidated credit platform operating assets, including corporate and real estate credits, rose 13% year-over-year to $550 billion. In the second quarter, the inflow of funds was $33 billion, accounting for about half of the company's total inflow.
The insurance sector's operating assets also rose 15% year-on-year to $290 billion. It has also signed a new strategic partnership with Nippon Life Insurance, Japan's largest life insurer.
The multi-asset investment division (BXMA) posted a positive return for the 25th consecutive quarter. In the second quarter of this year, the company achieved the highest performance in the last six years.
Operating assets rose 21% year-on-year to a record high of $109 billion. The operating assets of the private well sector also reached a new high of $324 billion, up 16% year-on-year.