Blackstone (BX) investor relations material

Macro and industry outlook

• Economic resilience has exceeded expectations despite global shocks, with the U.S. showing particular strength and private equity portfolio companies achieving 10% revenue growth in the recent quarter.

• Inflation headwinds persist, but wage growth is moderating and shelter costs are expected to ease, supporting a constructive outlook post-conflict.

• A significant CapEx boom is underway, especially in digital and energy infrastructure, fueling job creation and setting the stage for a productivity surge driven by AI.

• Disruption from AI and other forces is expected across industries, making capital deployment more challenging but also creating new opportunities.

Capital deployment and investment themes

• $36 billion was deployed in Q1, with a strong focus on AI infrastructure, including energy, data centers, and related value chains.

• The firm is the largest global investor in data centers, with $160 billion in assets and a matching pipeline, emphasizing long-term leases and responsible capital allocation.

• Secondaries and private credit, especially investment-grade tied to AI infrastructure, are key areas of activity, with notable transactions such as a $35 billion deal with Broadcom and Apollo.

• Geographic expansion includes strong positions in Japan and India, and renewed interest in real estate as the sector approaches a potential turnaround.

Exit environment and IPO market

• The IPO market has stabilized, with several large private companies preparing to go public and a healthy pipeline of seven more IPOs globally.

• AI-related and unaffected businesses are seeing strong IPO interest, while software and professional services face more challenges.

• Realizations were up 26% in Q1, with expectations for acceleration as market conditions normalize.