With over USD 1 trillion in assets under management as of June 30, 2023, Blackstone is the world's largest alternative asset manager. Like other firms that primarily offer private investments, Blackstone has more opaqueness compared with traditional asset managers, though its private real estate and private credit offerings, Blackstone Real Estate Income Trust and Blackstone Private Credit Fund, have been in the spotlight recently because of significant outflows. Through July 2023, the firm did a solid job managing the liquidity amid investor demand for redemptions.
With the launch of its first mutual fund in 2014, the firm moved into the public spotlight. The hedge fund unit, Blackstone Alternative Asset Management, manages the mutual fund and has seen some uncharacteristic turnover. It has changed leadership twice since 2018 when its long-term president transitioned away from day-to-day oversight. In December 2021, Blackstone hired a new CIO for the group, and in January 2023, the manager overseeing the mutual fund's day-to-day management left the firm. Three other fund managers have departed since May 2021. More stability from this unit would be a good sign. So would a lower expense ratio: The mutual fund carries an expense ratio double that of the Morningstar Category average.