New York-based Blackstone Inc has reached an unprecedented US$1 trillion in assets. 

It is the first time that an alternative investments manager, focusing on private equity and real estate, has hit the milestone figure. 

The achievement came three years ahead of the company’s initial 2026 target. However, the huge total was accompanied by a 39 per cent drop in second-quarter distributable earnings, driven by a slump in asset sales.

Stephen Schwarzman, the CEO and co-founder of Blackstone, expressed unwavering confidence in the company's future prospects, saying; “Our prospects are accelerating. We never rest on our achievements”. 

He has outlined potential growth opportunities in private credit and insurance, infrastructure, the energy transition, life sciences, Asia, and wealth management for affluent individuals.

While the second-quarter earnings were not as rosy as expected, with distributable earnings dropping to US$1.2 billion from nearly US$2 billion the previous year, Blackstone's private equity business remained a bright spot. It saw a remarkable 20 per cent growth in performance fees, driven by successful secondary share sales.

Blackstone's President, Jonathan Gray, said the company's strategy is to form partnerships with banks that have faced lending constraints due to the US regional banking crisis. These partnerships, totaling $6 billion, target lending areas like home improvement, auto finance, and renewable energy.

The second quarter also witnessed a significant slump in Blackstone's real estate unit's net profit, sinking by 94 per cent. However, Gray expressed optimism that the negative sentiment surrounding commercial real estate would soon abate.

Despite Blackstone's impressive accomplishments, it has faced criticism for its ownership of Motel 6, which settled for $19.6 million in 2018 and 2019 for providing guest lists to US Immigration and Customs Enforcement (ICE) without a warrant. 

Additionally, a US Department of Labor investigation revealed over 100 cases of illegal child labour at Packers Sanitation Services Inc (PSSI), a Blackstone-owned slaughterhouse cleaning firm.

Furthermore, Blackstone has faced scrutiny for investing in companies associated with the deforestation of the Amazon rainforest, and a United Nations report condemned the company's real estate practices, alleging abusive tenant treatment and undermining policies for adequate housing.