The trillion-dollar market cap in equities had been elusive until Apple hit it in the summer of 2018. Now it’s topped $3 trillion, with Microsoft at almost $2.6 trillion, Alphabet just over $1.5 trillion, Amazon at $1.3 trillion, and Nvidia at just under $1.1 trillion. But Meta went to more than a trillion and 16 months later was back under it.
Now Blackstone has become the first alternative asset manager to hit just over $1 trillion in assets under management, according to its 2023 Q2 results. That was 6% over 2022 Q2’s AUM of $940.8 billion.
Of the total, $333.2 billion was in real estate compared to $320 billion in the same period last year, with $7.9 billion inflows during the quarter and $49.2 billion over the previous 12 months. “Inflows in the quarter included $1.3 billion for the seventh European opportunistic fund, $791 million of capital raised in BREIT, $2.2 billion in BREDS insurance SMAs, and $203 million in the fifth real estate debt strategies fund, bringing total capital commitments to $3.7 billion for the fund,” the company noted. “July 1 subscriptions of $246 million in BREIT not yet included in Total AUM.”
The rest of total AUM was split among private equity ($295.3 billion), credit and insurance ($294.6 billion), and hedge fund solutions ($78.2 billion). The company also had $194.6 billion in “dry powder.”
“This milestone reflects the extraordinary trust we have developed with our investors — built through performance — as well as our distinctive position as an innovator,” Stephen Schwarzman, chairman and CEO said. “We believe we are in the early stages of the long-term growth of the alternatives industry, providing a vast opportunity for further expansion.”
Blackstone deployed $4.1 billion in capital in real estate during the quarter and $21.0 billion over the last 12 months. “Deployment in the quarter included the privatization of Industrials REIT, which owns a 7.1 million square foot portfolio of U.K. last mile logistics properties,” the company said.
‘Realizations of $5.5 billion in the quarter, $17.6 billion over the previous 12 months, included such asset sales as JW Marriott San Antonio Hill Country Resort & Spa to Ryman Hospitality Properties, Inc. for $800 million and a portfolio of U.S. logistics to Prologis for $3.1 billion.
Opportunistic funds were flat in the quarter and declined 3.0% over the LTM, while Core+ funds appreciated 1.7% in the quarter and 0.9% over the LTM.
Apollo Global Management, which has also targeted a $1 trillion AUM goal, as the Wall Street Journal reported in 2021, was far off the pace at the end of its 2023 Q1, with total AUM of $598 billion. The company is scheduled to release its Q2 results on August 3.