Blackstone Inc. BX has provided an intra-quarter realization update related to the fourth quarter of 2024. The alternative asset manager expects profits from deal exits to be solid in the quarter.

Per the firm’s preliminary estimate, revenues from realization activities were in excess of $775 million between Oct. 1 and Dec. 23, 2024. The figure consists of 95% of realized performance revenues and 5% of realized principal investment income.

The estimated figure is based on closed investment realizations. It does not represent the total quarter’s results, which may differ when accounting for other income sources and possible gains or losses by the quarter-end.

Notably, in the fourth quarter of 2023, Blackstone generated $693.2 million of realized performance revenues and $19.2 million of principal investment income.

Thus, the recent estimate provided by BX in an indication that alternative asset managers and real estate firms are well-poised to generate high returns from deal exits in the coming period.

During a low-interest-rate period, private equity firms engage in various buyouts with the hope of generating robust returns later.

With the Federal Reserve's recent rate-cut program, interest rates have come down to 4.25-4.5%, which is now at the same level as in December 2022. With this, the buyout firms (that still have a heap of assets) have started to sell the assets at the current prices, which is increasing their profits.

Blackstone’s Price Performance & Zacks Rank

Over the past six months, BX shares have gained 39.9% compared with the industry’s rise of 17.6%.

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Currently, Blackstone carries a Zacks Rank #3 (Hold).

Better-Ranked Finance Stocks

A couple of better-ranked stocks from the finance space are Brookfield Asset Management Inc. BAM and Burford Capital Limited BUR. BAM and BUR currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BAM’s earnings for the current fiscal year has been revised 2.8% upward over the past 60 days. Brookfield Asset Management's share price has increased 45.1% over the past six months.

Earnings estimates for BUR for the current year have been revised 4.6% upward over the past 60 days. Over the past six months, Burford Capital’s shares have gained 0.3%.

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