Blackstone (BX) Barclays 22nd Annual Global Financial Services Conference 2024 summary

Macro environment and outlook

• Inflation and economic cooling have been observed, with inflation near target when excluding lagging shelter data.

• Labor markets are softening, with easier hiring conditions and wage inflation expected to decline.

• Revenue growth in portfolio companies remains resilient but is decelerating, with strong margins and productivity gains.

• Cautious optimism for a soft landing, with most CEOs not expecting a recession in the next 12 months.

• Current interest rate levels are seen as constructive for capital markets and business activity.

Transaction and fundraising environment

• Signs of renewed activity in transaction markets could lead to a robust 2025, as cost of capital drops and capital availability expands.

• Significant pent-up demand in IPO and M&A markets, with suppressed activity expected to break in 2025.

• Over $50 billion deployed in Q2 and $90 billion over three quarters, with $181 billion in dry powder.

• Realizations are expected to lag market improvements, with a new interquarter update on realization activity being introduced.

Growth at scale and market opportunities

• Scale is viewed as a key advantage, enabling large, rapid investments and access to unique data and partnerships.

• Recent $16 billion acquisition of AirTrunk highlights leadership in digital and AI infrastructure.

• Private markets remain early in their growth, with significant opportunities in private wealth, insurance, and traditional institutions.

• Fundraising momentum is strong across real estate, private equity, energy transition, and infrastructure secondaries.

• New products in infrastructure and multi-asset credit are planned for early next year.