Blackstone's Expansion into the $12 Trillion U.S. Defined Contribution Market via Executive Order Potential
Management highlighted reports that the U.S. administration may issue an executive order to open the $12 trillion U.S.-defined contribution channel for alternative investments.
This development could significantly diversify Blackstone's investor base and create a vast new market for delivering superior returns.
Management emphasized the strategic importance of large-scale perpetual products and the need for regulatory clarity before full market entry.
Record Capital Raising and Growth in Fee-Related Earnings (FRE) and Distributable Earnings (DE)
Blue Owl raised $14 billion in new capital during Q2 2025, totaling $55 billion over the last 12 months, representing 28% growth in assets under management.
FRE increased by 29%, DE by 20%, and FRE by 23% year-over-year, supported by a substantial permanent capital base.
Management emphasized the momentum driven by fundraising and deployment, with strategic initiatives contributing to growth.
Record Organic Growth in 12 Years Driven by Alternative Strategies
AMG's second quarter of 2025 marked the strongest quarter in 12 years for organic growth, with a 15% increase in economic earnings per share.
This growth was primarily driven by record inflows into alternative strategies, totaling over $8 billion in net client cash flows.
The shift towards alternative assets and secular growth areas is a core part of AMG's strategic evolution, with a focus on private markets and liquid alternatives.
Dafinchi