Blackstone Hits $1-T Mark In Managed Assets

Blackstone has reached rarified air as it now manages more than $1 trillion in assets. The achievement is impressive but Blackstone has the added bonus of being the first private-equity firm to reach the milestone, Business Insider reported.

Photo Insert: Chairman, CEO and Co-Founder of Blackstone, Stephen A. Schwarzman.

While giant asset managers like BlackRock and Vanguard surpassed the mark long ago, their approach to amassing assets relies heavily on building massive ETF businesses and courting 401(k) plans.

As an alternative investment firm, Blackstone’s path to $1 trillion has been, well, alternative.

With a mix of real estate, private credit, wealth, and growth investments, the firm has done a little bit of everything to get to $1 trillion. Sure, Blackstone benefited from a low-rate environment over the years that made the firm’s offerings more attractive to investors looking for higher returns.

But that all flipped when rates spiked over the past year, complicating many of Blackstone’s strategies.

Blackstone’s chief financial officer, Michael Chae, said in an earnings call that half of the firm’s owned real estate was in logistics, student housing, and data centers, areas he said that were performing well.

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