Today investment and advisory firm Blackstone (NYSE:BX) delivered another impressive quarter as it reported an economic net income (ENI) of $1.3 billion, an 89% increase relative to the $700 million seen in the second quarter of 2013.
"Blackstone's singular focus on fund investment returns ultimately drives outperformance for our unitholders," noted the chairman and CEO of Blackstone, Stephen Schwarzman, in the announcement. "Record results across the Blackstone platform continue to demonstrate that."
In total its assets under management have risen by 21% over the last year to stand at a record $279 billion for the firm. The firm noted it has seen impressive results through the first six months of 2014 as it had both its best second quarter and first half of a year resulting from "strong performance across all of its funds, driving record financial returns and asset levels."
The improved results at Blackstone this quarter were driven by impressive gains across all five of its businesses. The biggest gain came from its Private Equity group, which saw its economic income rise by 278% in the second quarter of this year, from $171 million to $648 million. This was driven by its performance fees nearly quadrupling, moving from $187 million to $714 million.
In addition, thanks to "strong global fundamentals," Blackstone also recognized a sizable gain of 32% in its ENI from its Real Estate business, standing at $489 million. Its three small businesses, Hedge Fund Solutions, Credit, and Financial Advisory also all saw gains in ENI, combined growing 21% to $214 million.
"Blackstone's second quarter results marked one of our best ever in terms of both ENI and distributable earnings," Schwarzman continued. "As more of our assets under management have seasoned, we've been increasingly active in harvesting the value we've created over several years. At the same time, ENI, which reflects our current value creation, remains at record levels, reaching $4.3 billion for the past twelve months."
Following the financial crisis, Blackstone has been on an remarkable run, and the second quarter undoubtedly marked a continuation of this impressive streak.