Blackstone Profit Drops 9.2% as Rates, Inflation Curb Dealmaking

Blackstone Inc. reported a drop in third-quarter income as higher interest rates and inflation slowed dealmaking, with the capital the firm deployed falling to its lowest level so far this year, according to Bloomberg.

Distributable earnings declined 9.2% to $1.72 billion, or $1.32 a share, the firm said in a statement on Thursday. The figure exceeded the $1.26 average per-share estimate of analysts tracked by Bloomberg, indicating that results were stronger than expected despite the year-over-year decline.

The weaker deployment figures reflect the broader rate environment, in which elevated borrowing costs have made acquisitions and leveraged transactions less attractive to buyers and lenders alike. Bloomberg's report frames the slowdown as a direct consequence of higher rates and persistent inflation, which have constrained the pace of new investment activity across the alternative asset manager's businesses.