# Blackstone's Profit Falls 9.2% as Higher Rates and Inflation Slow Dealmaking

> Distributable earnings slid to $1.72 billion in the third quarter as a historic jump in bond yields curbed deal activity, though the firm still beat analyst estimates and grew assets under management 10%.

- Source: Principle Post
- Canonical URL: https://principlepost.com/article/blackstone-profit-falls-q3-rates-inflation-dealmaking
- Author: Principle Post Staff
- Section: Markets
- Published: 2026-10-22T18:28:00.000Z
- Updated: 2026-10-22T18:28:00.000Z
- Tags: Blackstone, earnings, private equity, interest rates, Stephen Schwarzman

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Blackstone's distributable earnings fell 9.2% to $1.72 billion, or $1.32 a share, in the third quarter, as higher interest rates and inflation driven by rising energy prices weighed on dealmaking across the industry. Even with the decline, the result topped the $1.26-a-share average estimate from analysts tracked by Bloomberg.

## "A historic increase in bond yields"

Chairman and CEO Stephen Schwarzman described the quarter as an unusually difficult environment, pointing to a sharp global rise in bond yields that pushed up the cost of capital and, in turn, cooled both deal activity and investor exits. Broader M&A activity reflected the same slowdown, with global deal volume dropping 41% from the prior quarter, according to data cited by Reuters.

Despite the softer dealmaking backdrop, Blackstone's assets under management climbed 10% to $1.37 trillion, underscoring how the firm keeps growing its fee-generating asset base even when transaction activity slows. Infrastructure was again the firm's best-performing strategy, returning 6.4% for the quarter, a bright spot as other parts of the business navigated the higher-rate environment.

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Originally published by Principle Post. Free to cite with attribution and a link to https://principlepost.com/article/blackstone-profit-falls-q3-rates-inflation-dealmaking.