Blackstone's (BX) blackstone tickerblackstone bQ3 2024 financial performance demonstrated robust growth in several key areas. Total GAAP revenues for the three months ended September 30, 2024, were $3.66 billion, a significant increase from $2.54 billion in the same period of 2023. This growth was driven by strong performance across multiple segments, despite adjustments for unrealized performance revenues and other factors reducing the total segment revenue to $2.43 billion, up from $2.32 billion in Q3 2023.

Total GAAP expenses for Q3 2024 were $1.90 billion, compared to $1.37 billion in Q3 2023. After adjustments, total segment expenses were $1.03 billion, reflecting an increase from $938 million in the prior year. This rise in expenses was primarily attributed to higher equity-based compensation and other operating costs.

Fee-related earnings (FRE) for the Multi-Asset Investing segment increased by 13% year-over-year to $57.0 million in Q3 2024, driven by a $5.4 million reduction in fee-related compensation. Segment distributable earnings for this segment rose by 16% to $61.3 million, reflecting strong performance across strategies, including equities, quantitative, and credit. However, the report cautioned that sustained weak market conditions or declining interest rates could negatively impact future earnings.

The Private Equity segment reported fee-related earnings of $293.0 million, a 9% increase from $267.6 million in Q3 2023. This growth was primarily driven by a $51.0 million increase in management and advisory fees, net, which offset higher fee-related compensation and operating expenses. Segment distributable earnings, however, declined by 11% to $423.8 million due to a $76.9 million drop in net realizations, despite a $25.4 million increase in fee-related earnings.

The Credit & Insurance segment exhibited strong growth in Q3 2024, with segment distributable earnings rising by 26% year-over-year to $375.2 million. Fee-related earnings increased by 25% to $324.5 million, supported by a 26% rise in base management fees and a 27% increase in fee-related performance revenues. The segment also benefited from structural shifts in the lending market and high interest rates, which contributed to $18.4 billion in investments during the quarter.

Blackstone's total segment distributable earnings for Q3 2024 were $1.01 billion, reflecting a 23% increase from $825 million in Q3 2023. This growth was driven by higher fee-related earnings across segments and increased net realizations in certain areas, despite challenges in realized performance revenues in others.

The company's invested performance-eligible assets under management (AUM) in the Credit & Insurance segment reached $105.4 billion as of September 30, 2024, up from $86.5 billion a year earlier. Approximately 99% of these assets were above their high-water mark or hurdle, indicating strong potential for performance fee generation.

Blackstone's cash flow from operating activities for the nine months ended September 30, 2024, was $3.32 billion, compared to $3.16 billion in the same period of 2023. This increase was supported by higher net income, which rose to $4.11 billion from $2.34 billion in the prior year, despite adjustments for non-cash performance allocations and other factors.