Blackstone (BX) Barclays 23rd Annual Global Financial Services Conference summary

Macro environment and outlook

• U.S. economy remains resilient, supported by declining cost of capital and a surge in AI-related investment and electrification ecosystems.

• Corporate profits are strong, with sectoral weakness mainly in lower-end consumer, hospitality, and construction supply chain.

• Inflation outlook is constructive, with decelerating shelter, wage, and energy costs; labor market is moderating.

• Wage growth has dropped below 3%, and hiring difficulties have eased significantly.

• Overall, the environment is seen as supportive for business and investment activity.

Transaction and realization environment

• Transaction activity is accelerating after a prolonged downturn, with M&A and IPO volumes up 35%-50% year-over-year.

• $145 billion deployed over the past 12 months, up 43% year-over-year; no summer slowdown in activity.

• Private equity and credit businesses have made significant new commitments recently.

• Realizations are expected to pick up, with a robust IPO pipeline that could make 2026 a record year.

Retirement and alternatives in 401(k) plans

• Regulatory changes could allow alternatives in defined contribution plans, potentially transforming retirement investing.

• Alternatives have historically outperformed and offer diversification, but most DC participants lack access.

• The firm is well-positioned with large-scale perpetual products suitable for target date funds and managed accounts.

• The opportunity is long-term and significant, with target date funds expected to triple over the next decade.