The Connection – Fall 2024
From our unique private market vantage, we can draw lines between macro, market and investment trends and help investors see how it all connects.
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Choose Optimism
by Joe Zidle, Chief Investment Strategist, Private Wealth Solutions
With the amount of monetary and fiscal stimulus central banks are injecting into the global economy, we believe that there is considerable upside potential beyond a soft landing.
The Convergence of Data Centers and Power: A Generational Investment Opportunity
by Sean Klimczak, Global Head of Infrastructure
The rapid expansion of digital infrastructure and the growing demand for power is a topic on everyone’s mind these days. To fully understand this, let’s start by looking at the driver behind the AI revolution: data.
Through the Private Market Lens
Portfolio Company Insights from Prakash Melwani, CIO of Corporate Private Equity
Blackstone’s global portfolio spans more than 230 companies employing nearly 700,000 people. Each quarter, we survey a sample of these companies’ CEOs on the current business environment and what they see on the horizon.
Explore a few key findings from our Q3 2024 survey of 90 Blackstone portfolio company CEOs (56 US CEOs).
CEOs are optimistic about growing revenue and EBITDA.
- 96% of CEOs expect revenue growth in 2025
- 97% of CEOs expect EBITDA growth in 2025
Labor markets remain healthy.
- The change in reported headcount is approximately +2.6% YoY in North America.*
- The vacancy rate inside our North America portfolio companies is indicative of “normalized” ongoing hiring: 5.5% in North America as of 3Q, down from 6.3% last quarter and 7.1% in 3Q23.*
Only 16% of CEOs expect a recession.
Compared to 2023, do you expect your 2024 CapEx for the following expenditures to…
*From Blackstone’s Chief Human Resource Officer Survey (CHRO). The Blackstone CEO and CHRO surveys referred to herein is a survey of a subset of portfolio company CEOs and CHRO. For 3Q24, the CEO survey reflects responses from 90 Blackstone portfolio company CEOs (56 US CEOs) largely within Blackstone’s private equity, real estate and credit & insurance businesses (the “CEO Survey”). For 3Q24, the CHRO survey reflects responses from 65 Blackstone portfolio company CHROs (representing ~190k employees) largely within Blackstone’s private equity, infrastructure, real estate and credit and insurance businesses (the “CHRO Survey”). Note that survey composition varies from quarter to quarter. The CEO Survey was initiated on September 10, 2024 and closed September 20, 2024. The CHRO survey initiated September 6, 2024 and closed September 20, 2024. Quarter-over-quarter presentations reflect data only for companies who responded to the survey question in both quarters, which may result in a smaller subset of portfolio companies CEOs/CHROs represented in such presentation than the overall CEO Survey/CHRO Survey. The responding portfolio companies are not necessarily a representative sample of companies across Blackstone’s portfolio and the views expressed do not necessarily reflect the views of Blackstone. The views expressed reflect the responding CEOs’/CHROs’ views as of the date of their responses, and Blackstone does not undertake any responsibility to advise you of any changes in such views. References to “CEO” or “CEOs” herein refer to respondents to the 3Q24 Blackstone CEO survey. This content may contain forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements are made only as of the date of this content and are subject to risks and uncertainties. We undertake no obligation to update any such statements. Actual outcomes or results may differ materially from these statements.
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Authors
Joe Zidle
Chief Investment Strategist, Private Wealth Solutions
David Stubbs
Managing Director, Private Wealth Solutions
Anders Nielsen
Managing Director, Private Wealth Solutions
Kristin Roesch
Vice President, Private Wealth Solutions
Anav Bagla
Analyst, Private Wealth Solutions
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The views expressed in this commentary are the personal views of the authors and do not necessarily reflect the views of Blackstone. The views expressed reflect the current views of the authors as of the date hereof, and neither the authors nor Blackstone undertake any responsibility to advise you of any changes in the views expressed herein.
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Tax considerations, margin requirements, commissions and other transaction costs may significantly affect the economic consequences of any transaction concepts referenced in this commentary and should be reviewed carefully with one’s investment and tax advisors. All information in this commentary is believed to be reliable as of the date on which this commentary was issued, and has been obtained from public sources believed to be reliable. No representation or warranty, either express or implied, is provided in relation to the accuracy or completeness of the information contained herein.
This commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. This commentary discusses broad market, industry or sector trends, or other general economic, market or political conditions and has not been provided in a fiduciary capacity under ERISA and should not be construed as research, investment advice, or any investment recommendation. Past performance does not predict future returns.