Long-Term Investing in a Short-Term World
In the second quarter, Blackstone topped $1 trillion dollars in assets under management.1 The firm was the first in the alternative asset management industry to reach this milestone. Achieving this scale is a byproduct of the performance the firm has delivered over nearly four decades, the spirit of innovation to create new solutions to better serve our customers, the growing desire for alternatives among individual investors, and the client-first approach that Blackstone has taken to serve them.
Today, nearly all of Blackstone’s major businesses are leaders in their respective asset classes. We believe this extensive scale in private investing brings many benefits, including real-time information that, when interpreted properly, can yield an early and accurate read on economic and industry trends.
Building scale and a long track record each take time and effort. Steve Schwarzman and Pete Peterson started the firm with $400,000 of founders’ capital. It was tough sourcing investor capital for the first fund in the early days, when private markets had something to prove to investors. Fast forward almost 40 years, and Blackstone has been delivering strong performance and is repeatedly out in front, either pioneering new investment categories or reinventing existing ones in ways geared toward improving investor outcomes.2
“Patient capital,” in our view, means being a long-term investor in a short-term world. Blackstone’s patient approach is driven by rigorous underwriting and a track record of picking good assets based on insights from the firm’s extensive portfolio holdings. The firm invests on its own schedule, drawing from ample dry powder to deliver a form of value-added investing that we believe is increasingly rare in asset management today.
Patient capital, in our view, means being a long-term investor in a short-term world.
Blackstone’s particular brand of patient capital has been essential to the kind of investing Steve Schwarzman insisted on — one that would invest with discipline and high conviction, often against – or ahead of – the herd. This was and remains the philosophy behind the build-out of the firm’s investment platforms. In our view, “patient” is very different from “passive.”
For individual investors, this approach can be a game-changer. Private Wealth Solutions was founded 12 years ago with the goal of delivering institutional-quality alternative investments to individual investors and the professionals who advise them. And we have seen time and again how private investments can reshape portfolios, helping deliver a more consistent long-term investor experience. Today, Blackstone’s many products are spread across the four main alternative asset categories — equity, real estate, credit and hedge funds – which have grown with balance and consistency over time, and across numerous market cycles.
To help investors unlock the potential of private investments, we’ve created an “Essentials of Private Markets” program, which is designed to open the world of private investments to more investors. The program has recently been expanded to cover private credit, an asset class where Blackstone has been a leader for years. We invite you to check it out, and to contact your Blackstone representative for more information.
Accessing Private Markets with Blackstone
We are grateful to our clients for the trust they put in us as stewards of their capital. We remain as committed as ever to providing top service, institutional-quality investment solutions, and an excellent end-to-end investor experience.
Global Head, Private Wealth Solutions
Past performance does not predict future results. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses.
1. The AUM for Blackstone or any specific fund, account or investment strategy presented in this Material may differ from any comparable AUM disclosure in other non-public or public sources (including public regulatory filings) due to, among other factors, methods of net asset value and capital commitment reporting, differences in categorizing certain funds and accounts within specific investment strategies and exclusion of certain funds and accounts, or any part of net asset value or capital commitment thereof, from the related AUM calculations. Certain of these differences are in some cases required by applicable regulation. All figures are subject to change. The full Blackstone Second Quarter 2023 press release can be found here.
2. Any investment involves a high degree of risk and investors may not get back the amount originally invested.
Important Disclosure Information
All information is as of June 30, 2023 (the “Reporting Date”), unless otherwise indicated and may change materially in the future. Capitalized terms used herein but not otherwise defined have the meanings set forth in the Offering Documents. No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon the merits of the investments described herein and any representation to the contrary is an offense.
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Recent Market Events Risk. Local, regional, or global events such as war (e.g., Russia/Ukraine), acts of terrorism, public health issues like pandemics or epidemics (e.g., COVID-19), recessions, or other economic, political and global macro factors and events could lead to a substantial economic downturn or recession in the U.S. and global economies and have a significant impact on a fund and its investments. The recovery from such downturns is uncertain and may last for an extended period of time or result in significant volatility, and many of the risks discussed herein associated with an investment in a fund may be increased.
Third-Party Information. Certain information contained in the Materials has been obtained from sources outside Blackstone, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information.
Trends. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results.