Blackstone's Q3 Profit Drops 12% on Weak Asset Sales and Interest Rates

Blackstone Inc., a major US alternative asset manager, reported a 12% decline in quarterly profit due to higher interest rates and a slowdown in dealmaking. The firm's distributable earnings for the third quarter missed analyst estimates, reflecting the consequences of the Federal Reserve's campaign to hike interest rates. The uncertainty around rates and inflation has reduced transaction volume, with private equity firms holding onto assets rather than selling them. The conflict in the Middle East and Russia's invasion of Ukraine have further disrupted markets, casting doubt on the recovery of private equity dealmaking. Blackstone's shares fell 3.9% following the announcement.