- Blackstone recorded a 38 percent rise in assets under management to a record-breaking $941 billion.
- The New York-based investment firm anticipates a prolonged decline in dealmaking activity.
- Fee-based earnings and cash flows remained at record levels as a result of rising assets.
The world’s largest manager of alternative assets, Blackstone Group, is warning of a protracted downturn in economic activity as persistently rising inflation drives the Federal Reserve to continue hiking interest rates.
“The economy today on the ground is still pretty healthy, but we’re definitely seeing some signs of a slowdown,” Blackstone’s president Jonathan Gray told the Financial Times. “Because we see inflation as stickier, in labour and housing markets, in particular, I think it will mean the Fed will try to do more and slow the economy further.”
As a result of an increasingly active central bank, Blackstone anticipates a prolonged decline in dealmaking activity from last year’s record levels, with Gray warning that they have “seen a material reduction in deal activity.”
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