Private equity giant, Blackstone, is expecting more promising days ahead. This follows several years of subdued net profits from asset sales. However, as Blackstone’s President and COO, Jonathan Gray, divulged during the Q2 2025 earnings call, the industry-wide “dealmaking pause” appears to be in the rearview mirror. Despite its Q2 2025 net realizations only equating to about 63% of 2021 figures, the firm is still optimistic about the imminent turnaround.
A lower interest rates regime, reduced uncertainty, continuous economic growth, and an unquenched appetite for transactive action are stimuli expected to rekindle M&A and IPO activity. It’s worth noting that these challenges weren’t exclusive to Blackstone; diminished deal and exit activity were common themes in the private market landscape. Nevertheless, Blackstone anticipates a swift comeback.