Market Insights | Blackstone 4Q21 SoundbitesFred Krom, 01/30/2022
Our LPs entrusted us with $270 billion of inflows in 2021, with AuM rising 42% to $881 billion – our fastest growth rate in over a decade.
In 4Q21, AUM increased $150 billion, the equivalent of a top 10 global alternatives firm. No other alternatives firm in the world has approached this level of growth.
There’s a sea change underway in asset management and our positioning within it. We offer nearly 60 investment strategies, up from 35 five years ago.
Flows continue to accelerate to alternatives and we expect the fundraising momentum to continue, with 80% of LPs concentrating capital with fewer managers, which favors Blackstone.
We’re not yet hearing any change in sentiment among our LPs despite the recent sell-off as total returns are up nearly 40% in 2 years.
Our Head of Technology, John Stecher, estimates our portfolio companies are spending 15% to 20% more on technology this year.
In the US, rent in the industrial, multifamily, and life sciences sectors are growing at 2-3X the rate of inflation.
As the cost of construction rises with inflation, it greatly benefits the value of our holdings.
The pullback in technology, technology services, and content creation could lead to more opportunities and more rational pricing.
The contents presented here are excerpts on micro/macro trends from recent conference call held by Blackstone Inc. The information contained herein has been compiled from third party sources believed to be reliable; however, no representation or warranty is given as to the truth and accuracy of the information contained herein.