Distributable earnings, which represent cash used to pay dividends to shareholders, fell to US$1.2 billion from nearly US$2 billion a year earlier. That resulted in distributable earnings of 92 cents, in line with average analyst estimates, as per Refinitiv.

Blackstone said its net profit from asset sales plunged 82% to US$388.4 million from US$2.2 billion in the year-ago period, as higher interest rates, sticky inflation, and economic uncertainty have continued to weigh on its merger and acquisition activity.

A major share of the reduced asset disposals came from Blackstone’s real estate unit, where its net profit sank 94%, while that of its credit division dropped 46%.

Still, its private-equity business saw a 20% growth in performance fees, driven by secondary share sales of Blackstone’s stake in the London Stock Exchange Group and Gates Industrial Corporation.

Corporate private-equity funds appreciated by 9.7%, compared with an 8.3% growth in the benchmark S&P 500 index, Blackstone said. Its private credit funds gained 12.7% while hedge fund assets grew 1.9%. Opportunistic real estate funds depreciated by 3% in the quarter.

Under generally accepted accounting principles (GAAP), Blackstone’s net income came in at US$601.3 million, versus a net loss of US$29.4 million due to a rebound in revenue from performance fees and principal investments.

Blackstone’s total assets under management hit the US$1 trillion milestone for the first time, and were in line with its prior outlook, underpinned by strong fundraising of US$30.1 billion in the quarter. It also had about US$195 billion of unspent capital and declared a quarterly dividend of 79 cents per share.