Blackstone quarterly profit lifted by asset pile and AI gains

• Blackstone monetized $31.8 billion in assets during the quarter through deals including selling stakes in three data centers to Digital Realty and a majority holding in Sabre Industries to TPG
• The firm is participating in a $35 billion financing deal with Apollo for custom chips to be used by AI company Anthropic, deepening its commitment to the 'AI megatrend'
• Retail private credit fund BCRED raised only $1 billion in Q2, down from $1.9 billion in Q1 and $3.7 billion in the same period of 2025, as wealthy individuals withdrew money amid AI disruption concerns

Blackstone Q2 Summary: AI Bets Drive Profit Growth

Key Financial Metrics:

• Assets under management reached $1.35 trillion, driven by quarterly inflows
• Asset monetization totaled $31.8 billion in Q2
• Distributable earnings rose, though specific figures weren't disclosed

AI Investment Strategy:

Blackstone is heavily capitalizing on artificial intelligence, with nine of its top 10 best-performing holdings tied to AI. The firm is participating in a $35 billion financing deal with Apollo for custom chips to be used by AI company Anthropic. CEO Stephen Schwarzman emphasized the company's strategy to "lean into the artificial intelligence megatrend" and position itself as a key partner to AI innovators. Notable AI-related holdings include a stake in Anthropic and data center businesses, including QTS (acquired for $10 billion in 2021).

Major Transactions:

• Sold stake in three data centers to Digital Realty
• Sold majority holding in Sabre Industries to TPG
• Benefited from listings of Liftoff Mobile, Blackstone Digital Infrastructure Trust, and Indian REIT Bagmane

Challenges in Retail Segment:

The private credit flagship fund BCRED raised only $1 billion in Q2, down from $1.9 billion in Q1 and $3.7 billion year-over-year. Wealthy individuals, representing nearly 25% of assets under management, have been withdrawing from private credit funds amid concerns about AI disrupting software businesses. Net returns from private credit improved to 0.4% from flat in Q1, but remained below the prior year's 2.2%.

Market Context:

Deal activity rebounded in Q2 after first-quarter volatility. However, the sector faces scrutiny over asset valuations amid AI disruption concerns affecting software investments.