Stephen Schwarzman reports a 26% increase in Blackstone's second-quarter distributable earnings driven by strategic investments in AI infrastructure.

Stephen Schwarzman, the 79-year-old billionaire CEO of Blackstone, reported that the firm achieved a 26% year-over-year increase in second-quarter distributable earnings, totaling $2 billion. While the results slightly missed analyst expectations of $1.7 billion, Schwarzman attributed the growth to the firm's selective investments in data centers, energy, and power. The administration of the private markets giant successfully leveraged its scale to become a trusted partner in the AI ecosystem. Schwarzman noted that while AI will have a profound impact on society, similar to the Industrial Revolution, the firm remains mindful of potential "excessive exuberance" in the rapidly expanding sector. Despite a cooling in the private credit market, which saw a 51% drop in carried interest payments, the infrastructure business remained a top performer. Schwarzman suggested that the firm's stock is currently "on sale" following a difficult year for private money managers. The firm continues to expand its footprint through major partnerships with companies like Broadcom and Alphabet.

Sources