We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BX could face slower inflows amid private credit worries, though long-term AUM growth may aid earnings.
Driven by continued solid capital inflows, strategic investments in high-growth sectors and a broad fundraising momentum, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its assets under management (AUM) balance. Over the last five years (2020-2025), total AUM and fee-earning AUM have recorded compound annual growth rates (CAGR) of 15.6% and 14.4%, respectively. At the end of 2025, the firm’s total AUM balance reached a record $1.27 trillion.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms. As AUM expands, BX earns higher management fees, which are typically stable and recurring, creating a predictable revenue stream regardless of short-term market volatility. A larger AUM base also increases the potential for performance fees when investments are realized at attractive returns.
In addition, scale allows Blackstone to launch new funds, attract institutional investors and deploy capital across diverse strategies, which is expected to strengthen fundraising momentum and expand fee-related earnings over time.
The current concerns in the private credit market might moderately slow near-term AUM growth for Blackstone due to weaker investor sentiment and rising redemption requests across the sector. Blackstone, along with peers, has had to adjust redemption policies or manage higher outflows from certain funds as investors reassess risks in the asset class. Warnings about potentially rising default rates in private credit and tighter financing conditions from banks have heightened uncertainty, which could temporarily slow fundraising momentum and inflows.
Nevertheless, the long-term outlook for private credit remains strong, with industry AUM projected to grow significantly over the coming years as institutional investors continue shifting toward alternative assets. Thus, sustained growth in AUM is expected to remain a crucial pillar of Blackstone’s earnings trajectory. In the last three to five years, the company’s earnings have witnessed a CAGR of 3.5%. The long-term projected earnings growth rate for the company is 19.8%.
AUM Performance of BX’s Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025). The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo expects its total AUM to reach $1.5 trillion by scaling its private equity business.
KKR & Co. Inc.’s (KKR - Free Report) AUM saw a five-year (2020-2025) CAGR of 24.2%. Going forward, the company’s efforts to improve and add investment strategies will continue to support AUM growth.
In February 2026, KKR entered a strategic agreement to acquire Arctos Partners for $1.4 billion. The acquisition will expand the company’s reach to sports franchises and support long-term growth. At its 2024 investor day, KKR laid out a plan to scale its core businesses as it aims to reach at least $1 trillion in AUM by 2030.
The company’s shares have lost 44.4% in the past six months compared with the industry’s 29.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, BX trades at a 12-month forward price-to-earnings (P/E) of 16.05X, above the industry average of 9.82X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Blackstone’s 2026 and 2027 earnings indicates year-over-year growth rates of 14% and 26.8%, respectively. Estimates for both years have been revised lower over the past 30 days.
View the Zacks #1 Rank List
Image: Shutterstock
Will Blackstone's Rising AUM Balance Aid Long-Term Earnings Growth?
Key Takeaways
Driven by continued solid capital inflows, strategic investments in high-growth sectors and a broad fundraising momentum, Blackstone Inc. (BX - Free Report) has been witnessing a rise in its assets under management (AUM) balance. Over the last five years (2020-2025), total AUM and fee-earning AUM have recorded compound annual growth rates (CAGR) of 15.6% and 14.4%, respectively. At the end of 2025, the firm’s total AUM balance reached a record $1.27 trillion.
Blackstone’s robust AUM base supports its long-term earnings growth by providing a larger pool of fee-generating capital across its private equity, real estate, credit and infrastructure platforms. As AUM expands, BX earns higher management fees, which are typically stable and recurring, creating a predictable revenue stream regardless of short-term market volatility. A larger AUM base also increases the potential for performance fees when investments are realized at attractive returns.
In addition, scale allows Blackstone to launch new funds, attract institutional investors and deploy capital across diverse strategies, which is expected to strengthen fundraising momentum and expand fee-related earnings over time.
The current concerns in the private credit market might moderately slow near-term AUM growth for Blackstone due to weaker investor sentiment and rising redemption requests across the sector. Blackstone, along with peers, has had to adjust redemption policies or manage higher outflows from certain funds as investors reassess risks in the asset class. Warnings about potentially rising default rates in private credit and tighter financing conditions from banks have heightened uncertainty, which could temporarily slow fundraising momentum and inflows.
Nevertheless, the long-term outlook for private credit remains strong, with industry AUM projected to grow significantly over the coming years as institutional investors continue shifting toward alternative assets. Thus, sustained growth in AUM is expected to remain a crucial pillar of Blackstone’s earnings trajectory. In the last three to five years, the company’s earnings have witnessed a CAGR of 3.5%. The long-term projected earnings growth rate for the company is 19.8%.
AUM Performance of BX’s Peers
Apollo Global Management’s (APO - Free Report) AUM witnessed a CAGR of 19.6% over the past three years (2022-2025). The increase in Apollo’s AUM is primarily driven by growth in its retirement services client assets, subscriptions across the platform and new financing facilities.
The acquisition of Bridge Investment Group Holding nearly doubled Apollo’s real estate AUM to more than $110 billion. By 2029, Apollo expects its total AUM to reach $1.5 trillion by scaling its private equity business.
KKR & Co. Inc.’s (KKR - Free Report) AUM saw a five-year (2020-2025) CAGR of 24.2%. Going forward, the company’s efforts to improve and add investment strategies will continue to support AUM growth.
In February 2026, KKR entered a strategic agreement to acquire Arctos Partners for $1.4 billion. The acquisition will expand the company’s reach to sports franchises and support long-term growth. At its 2024 investor day, KKR laid out a plan to scale its core businesses as it aims to reach at least $1 trillion in AUM by 2030.
Blackstone’s Price Performance, Valuation & Estimates
The company’s shares have lost 44.4% in the past six months compared with the industry’s 29.4% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, BX trades at a 12-month forward price-to-earnings (P/E) of 16.05X, above the industry average of 9.82X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Blackstone’s 2026 and 2027 earnings indicates year-over-year growth rates of 14% and 26.8%, respectively. Estimates for both years have been revised lower over the past 30 days.
Image Source: Zacks Investment Research
Currently, BX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.