There was little in narrow-moat-rated Blackstone's first-quarter results that would alter our long-term view of the firm. We expect to leave our $125 per share fair value estimate in place. We view the shares as being fairly valued right now.
Blackstone, with $726.6 billion in fee-earning AUM at the end of 2023, is a go-to firm for institutional and high-net-worth investors looking for exposure to alternatives.
Bears
Downturns in the equity and credit markets could leave potential investors in Blackstone's funds with limited liquidity and large commitments to other funds, making it more difficult for the firm to raise new capital.
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Blackstone is the world's largest alternative-asset manager with $1.040 trillion in total asset under management, including $762.6 billion in fee-earning assets under management, at the end of 2023. The company has four core business segments: private equity (22% of fee-earning AUM and 28% of base management fees), real estate (39% and 43%), credit and insurance (29% and 21%), and hedge fund solutions (10% and 8%). While the firm primarily serves institutional investors (87% of AUM), it also caters to clients in the high-net-worth channel (13%). Blackstone operates through 25 offices in the Americas (8), Europe and the Middle East (9), and the Asia-Pacific region (8).