Concerns about the private credit market have prompted investors to withdraw capital from Blackstone's (NYSE: BX) flagship private credit fund, BCRED (Blackstone Private Credit Fund). They requested to redeem 10% of their money in the second quarter, up from 7.9% in the first quarter, well above Blackstone's quarterly withdraw cap of 5%. These withdraws and concerns about the continued negative impact of private credit have sent Blackstone's stock down more than 30% from its 52-week high.
While the withdrawals are impacting the leading alternative investment manager's stock price, here's a look at what its latest quarter says about their effect on its overall results.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Given all the headlines and the decline in Blackstone's share price, you'd expect that the financial giant's earnings would be under significant pressure. However, that hasn't been the case. Blackstone recently reported strong second-quarter financial results. Its distributable earnings surged 26% to nearly $2 billion, driven by strong fee-related earnings growth (up 22%) and net realizations (up 27%). Meanwhile, its year-to-date distributable earnings are also up 26% (to $3.7 billion).
While existing clients are pulling some of their funds from BCRED, Blackstone isn't having any trouble raising capital from investors. Total inflows approached $70 billion during the quarter, pushing its ***** ets under management up to $1.35 trillion.
#credit #blackstone #NVIDIA #billion
While the withdrawals are impacting the leading alternative investment manager's stock price, here's a look at what its latest quarter says about their effect on its overall results.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Given all the headlines and the decline in Blackstone's share price, you'd expect that the financial giant's earnings would be under significant pressure. However, that hasn't been the case. Blackstone recently reported strong second-quarter financial results. Its distributable earnings surged 26% to nearly $2 billion, driven by strong fee-related earnings growth (up 22%) and net realizations (up 27%). Meanwhile, its year-to-date distributable earnings are also up 26% (to $3.7 billion).
While existing clients are pulling some of their funds from BCRED, Blackstone isn't having any trouble raising capital from investors. Total inflows approached $70 billion during the quarter, pushing its ***** ets under management up to $1.35 trillion.
#credit #blackstone #NVIDIA #billion
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