TenQ

The Blackstone story

Blackstone is the world’s largest alternative asset manager, with a growing private wealth and perpetual capital business whose test is whether a larger fee base can make earnings less dependent on investment realizations.

Written from Blackstone's own filings with the SEC, and rewritten when it publishes a new earnings release. Updated 2026-09-30.

  • $114.56share price, last close
  • $86.0Bmarket value
  • 18/36TenQ Score checks passed

The story in brief

  • A larger fee base. In the quarter to June 2026, fee-earning assets under management reached $961.6 billion, up 8% from a year earlier, while Fee Related Earnings rose 22%.
  • Private equity leads. Private Equity assets under management increased 17% to $454.2 billion in the quarter to June 2026, supported by $24.5 billion of inflows.
  • Accrued versus realized. Net accrued performance revenues reached $7.5 billion in the quarter to June 2026, making their conversion into realized income an important distinction from reported investment appreciation.

What drives the business

  • Blackstone manages alternative investments for pension funds, insurers and individuals through Real Estate, Private Equity, Credit & Insurance and Multi-Asset Investing, with infrastructure housed within Private Equity.
  • Its expansion beyond traditional institutional funds includes private wealth products such as Blackstone Real Estate Income Trust, Blackstone Private Credit Fund and Blackstone Private Equity Strategies Fund, alongside perpetual capital vehicles with indefinite terms and limited ordinary redemption requirements.
  • Perpetual capital assets under management reached $555.6 billion in the quarter to June 2026, up 15% from a year earlier, while total assets under management reached $1,346.3 billion following $68.3 billion of inflows.
  • Credit & Insurance managed $469.3 billion in the quarter to June 2026 and attracted $31.0 billion of inflows, including $7.5 billion for separately managed insurance accounts, while Private Equity fundraising included $5.7 billion for the fifth energy transition fund.
  • Management fees are generally tied to commitments, invested capital or asset values, while investment performance adds another earnings source, with Fee Related Earnings of $1.8 billion and Distributable Earnings of $2.0 billion in the quarter to June 2026.

What the price assumes

TenQ does not measure the growth implied by Blackstone’s price through a reverse DCF because its finance industry classification means free cash flow may not measure what it earns.

At $114.56, Blackstone’s price to earnings ratio is 25.4x, against revenue growth of 17.2% and profit growth of 22.9% over the last twelve months.

TenQ’s earnings yield check requires a yield above the 10-year Treasury, but Blackstone’s 3.9% falls below that 5.2% benchmark.

What could change the story

  • Investment performance can affect both asset-based fees and performance revenues, and results differ across strategies: opportunistic real estate appreciated 0.4% in the quarter to June 2026, compared with 3.7% for Corporate Private Equity.
  • Revenue growth of 17.2% over the last twelve months trails both the 19.3% annual pace over the last three years and TenQ’s 26.2% sector growth benchmark.
  • Debt to equity increased to 1.48 from 0.83 five years earlier, failing TenQ’s leverage trend check, although interest coverage of 16.04 exceeds its 5.00 threshold.
  • Shares outstanding increased 5.3% over the last three years, and stock-based compensation totaled $1.6 billion over the last twelve months, leaving dilution relevant despite repurchases of 0.2 million shares in the quarter to June 2026.
  • TenQ’s shareholder distribution coverage check also fails at 116.4% against a 100.0% cash flow threshold, although the limitations of free cash flow for a financial company apply to that comparison.

What to watch next

  • The September 22, 2026 update estimated realized performance revenues and realized principal investment income in excess of $350 million for July 1, 2026 through September 22, 2026, approximately 90% of it realized performance revenues.
  • That estimate is not full-quarter guidance and excludes other income sources and expenses, so the next release will establish the complete realization and earnings picture.
  • Fee-earning asset growth and Fee Related Earnings will show whether fundraising continues to translate into earnings, against the June 2026 benchmarks of 8% asset growth and $1.8 billion of Fee Related Earnings.
  • Changes in the $7.5 billion of net accrued performance revenues, alongside realized income and the dividend following the $1.29 per share declaration for the quarter to June 2026, will help distinguish portfolio appreciation from income available for distribution.

Sources

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