Blackstone stock declined 5.1% this week amid broader selling pressure in asset manager stocks. The decline was primarily driven by investor concerns about the private credit industry following Blue Owl Capital's decision to halt redemptions from its Blue Owl Capital Corp. II fund. This triggered wider anxiety about potential issues in other private debt funds and business development companies, including those managed by Blackstone. Shares of other asset managers with private credit exposure, including Ares Management, Apollo Global Management, and KKR, also fell during the week. Investor concerns have intensified over private credit lending standards, with additional worry stemming from recent software company stock declines, as many private credit firms have lent heavily to the software sector. UBS lowered its price target on Blackstone to $137 while maintaining a neutral rating.
Read full analysisBlackstone stock declined 5.1% this week amid broader selling pressure in asset manager stocks. The decline was primarily driven by investor concerns about the private credit industry following Blue Owl Capital's decision to halt redemptions from its Blue Owl Capital Corp. II fund. This triggered wider anxiety about potential issues in other private debt funds and business development companies, including those managed by Blackstone. Shares of other asset managers with private credit exposure, including Ares Management, Apollo Global Management, and KKR, also fell during the week. Investor concerns have intensified over private credit lending standards, with additional worry stemming from recent software company stock declines, as many private credit firms have lent heavily to the software sector. UBS lowered its price target on Blackstone to $137 while maintaining a neutral rating.
Blackstone is the world's largest alternative asset manager with $1.27 trillion in assets under management, investing across private equity, real estate, credit, and infrastructure. The firm generates revenue from management fees and performance-based incentive fees, and has recently expanded aggressively into housing with a $3.5 billion Tricon acquisition and $10 billion AIR Communities deal. Its significant private credit business and large residential real estate portfolio make it particularly exposed to both the Blue Owl-driven liquidity fears and the White House's proposed ban on large institutional landlords.