Blackstone (BX) Bank of America Securities Financial Services Conference summary

Macro environment and outlook

• Portfolio companies showed nearly 7% revenue growth in Q4, with margin increases for nine consecutive quarters.

• Default rates in the non-investment grade credit portfolio remain minimal and stable.

• Inflation is viewed as under control, with ex-shelter CPI at 1.9% and real-time shelter costs closer to 1%.

• The Fed is expected to remain patient but has room to ease; outside the U.S., Europe and China face growth headwinds, while India and Japan are seen as promising.

• Asset values in challenged regions may present new investment opportunities; overall, the environment supports above-trend growth.

Transaction and deployment trends

• IPO and M&A markets have been historically suppressed but are expected to rebound, with IPO volumes potentially up 40% this year.

• The pipeline for deals is filling, with acceleration expected more in Q2 than Q1.

• $134 billion was deployed last year, up 81% year-over-year, reflecting a proactive investment approach.

Fundraising and product innovation

• $171 billion was raised in 2024 despite a light drawdown calendar; 2025 is expected to see a multiple of 2024's drawdown fundraising.

• Strong momentum in private equity secondary, Asia PE, life sciences, GP stakes, and tactical opportunities.

• Infrastructure AUM reached $55 billion, up over 30% year-over-year, with a new European sleeve introduced.

• Individual investor fundraising hit $3.7 billion in January, the highest in over two and a half years.

• Credit insurance AUM grew 20% last year, maintaining a positive trajectory.