Blackstone Sales in Private Wealth Channel Increases 30% Year-Over-Year

For the second quarter of 2025, private equity giant The Blackstone Group (NYSE:BX) reported that sales in the wealth channel increased 30% year-over-year to $10 billion. Its non-traded business development company Blackstone Private Credit Fund, or BCRED, led the way, raising $3.7 billion underpinned by performance and 10% net returns annually since inception.

Blackstone Inc. reported a 25% jump in distributable earnings for the second quarter, buoyed by profits and investor interest in its diverse private wealth solutions’ funds, including Blackstone Real Estate Income Trust, a publicly registered non-traded real estate investment trust that invests primarily in stabilized income-generating commercial real estate across various property types, with a significant focus on rental housing and industrial properties.

“BREIT had its best quarter of regular way fundraising in two and a half years in the second quarter at $1.1 billion while repurchases continued on their downward trajectory,” said Jonathan Gray, president of Blackstone. “BREIT’s highly differentiated portfolio positioning has led to 9% net returns annually since inception eight and a half years ago, approximately double the public REIT index on a cumulative basis, including over 3% year to date for its largest share class. This has resulted in BREIT’s second consecutive quarter of generating fee-related performance revenues for the firm.”

As reported by AltsWire, BREIT refinanced a large industrial portfolio with a $1 billion commercial mortgage-backed securities loan last month. The financing – originated by major financial institutions including Goldman Sachs, German American Capital Corp., Barclays Capital Real Estate Inc., and JPMorgan Chase – is primarily being used to repay a previous $981 million loan on the portfolio, with the remainder covering closing costs. The interest-only, floating-rate loan has an initial two-year term with the option for three one-year extensions.

Also during today’s earnings call, Blackstone leadership spoke about Blackstone’s credit platform product: Blackstone Private Multi-Asset Credit & Income Fund, or BMACX, and other ventures.

“We launched BMACX, our multi-asset credit product in May, which provides individual investors greatly expanded access to the private credit universe, and we’ll be ramping up distribution over the coming quarters. Along with other products in development and our previously announced alliance with Wellington and Vanguard, we are quite excited about our continued prospects in the private wealth channel,” said Gray.

As of midyear, Blackstone oversaw $280 billion on behalf of private wealth clients, about a quarter of its $1.2 trillion of assets under management. This was up 13% since the second quarter of 2024. The firm also took in $52.1 billion of inflows during the quarter.

Blackstone declared a quarterly dividend of $1.03 a share, payable Aug. 11, 2025, to shareholders of record by Aug. 4.

Amidst a slowdown in dealmaking, fueled by still-high interest rates and President Donald Trump’s trade conflicts, Blackstone’s robust retail investment arm has proven to be a crucial stabilizing force for the firm. As Gray highlighted, the perpetual fund business has been a key source of strength during this otherwise sluggish period for transactions.

“Despite the cyclically slow realization backdrop, looking forward, importantly, we believe the deal-making pause is behind us,” he said.

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