Summary3 min read

Becker Business Podcast Summary

Episode: Has Blackstone Lost Its Edge?
Host: Scott Becker
Date: August 21, 2025

Episode Overview

In this episode, Scott Becker explores a central question resonating in the investment world: "Has Blackstone lost its edge?" Diving into Blackstone’s position within the alternative asset management sector, Becker contrasts current business challenges with broader private equity industry trends. The episode further discusses Blackstone’s standing in recruitment and market performance, ultimately shedding light on the wider private equity landscape in 2025.

Key Discussion Points & Insights

1. Blackstone’s Market Position

Scale Comparison:
- Blackstone remains the world’s largest alternative asset manager with $1.3 trillion AUM (assets under management) as of end 2024.
- For comparison, KKR holds approximately $635 billion AUM.
- [00:12] “Blackstone is the biggest. The biggest so far.” — Scott Becker
Performance Context:
- Blackstone is down about 5% year-to-date, during a period when the S&P is up.
- This performance is attributed to the soft deal market and struggles in asset divestiture, not a Blackstone-specific issue.
- [00:36] “That’s really a deal market issue… the entire M&A universe is a little bit challenged...”

2. Private Equity Sector Headwinds

Shared Challenges:
- The struggle is industry-wide—the entire private equity and M&A space is holding assets longer, facing market challenges in selling or divesting.
- [00:50] “Blackstone still holding lots of positions in lots of things for a lot longer than they expected to originally.”

3. Recruiting and Talent - Holding Its Edge

Elite Recruitment Status:
- Blackstone remains extremely selective, maintaining a reputation that it’s harder to gain a position there than at Harvard or Harvard Law School.
- [01:02] “Blackstone is more difficult to get into as an analyst, as an employee… than it is to get into Harvard or Harvard Law School.”
Maintaining the Pipeline:
- Statistically, Blackstone continues to attract and recruit the “best and the brightest”.
- [01:11] “Blackstone is still doing an incredible job on the recruiting side and getting the best and the brightest.”
Anecdotal Change:
- A recent top-tier candidate chose not to join Blackstone, a rare move signaling slight shifts in the appeal or priorities of new talent.
- [01:18] “Anecdotally, we’ve recently seen a candidate choose not to go to Blackstone… which is something you didn’t see that much of years ago.”

4. Final Take: The Verdict on “Losing Its Edge”

Industry, Not Firm Specific:
- Becker concludes that Blackstone’s challenges mirror those of the private equity industry at large and shouldn’t be taken as indicators of an internal decline.
- [01:28] “It’s not a Blackstone-centric issue. It’s more a private equity in general issue.”
Resilience Highlighted:
- Despite losing even top-tier candidates, Blackstone’s stature, process rigor, and results back its continued dominance and resilience.
- [01:40] “Even though the candidate they lost is a rock star… they will be fine. So hats off to Blackstone…”

Notable Quotes & Memorable Moments

On comparative selectivity:
- [01:02] “Blackstone is more difficult to get into… than it is to get into Harvard or Harvard Law School.” — Scott Becker
On industry challenges:
- [00:36] “That’s really a deal market issue… the entire M&A universe is a little bit challenged...”— Scott Becker
On retaining edge despite challenges:
- [01:40] “Even though the candidate they lost is a rock star… they will be fine. So hats off to Blackstone…” — Scott Becker

Important Segment Timestamps

[00:00-00:36] - Introduction, Blackstone’s size & market comparison
[00:36-00:50] - Market headwinds, asset holding periods
[01:02-01:11] - Recruiting prowess and selectivity
[01:18-01:28] - Anecdote: top candidate opts out
[01:28-end] - Conclusion: Blackstone’s outlook and resilience

Summary

Scott Becker concludes that while the current environment challenges Blackstone—reflected in year-to-date performance and the extra-long asset holding periods—these factors are industry-wide and not a sign of the firm losing its edge. Blackstone’s recruiting power remains formidable, and organizational resilience is evident despite rare setbacks. The episode ultimately casts Blackstone’s short-term struggles in the context of broader, cyclical private equity trends, affirming its continued leadership in the space.

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Transcript1 lines

[00:00]
A
This is Scott Becker with the Becker Business Podcast and the Becker Private Equity Podcast. Today's discussion is has Blackstone lost its edge? So Blackstone is the largest operator of alternative assets, large alternative asset manager. He had, as of the end of 2024, about 1.3 trillion assets under management. By contrast, KKR has about 635 billion assets under management or somewhere in there. So KK. So Blackstone is the biggest. The biggest so far. Blackst is down about 5% year to date. At a time when the S and P is up, I don't think you could say that's a Blackstone specific issue. That's really a deal market issue that the big private equity funds in the entire M and A universe is a little bit challenged in terms of divestiture of assets. Blackstone still holding lots of positions in lots of things for a lot longer than they expected to originally. He hasn't lost its edge in recruiting. Here's the issue in general, Blackstone is more difficult to get into as an analyst, as an employee, as a. For a position here, than it is to get into Harvard or Harvard Law School. So from all practical purposes or all statistical data, Blackstone is still doing an incredible job on the recruiting side and getting the best and the brightest. Anecdotally, we've recently seen a candidate choose not to go to Blackstone who had a chance to go there, you know, which is something you didn't see that much of years ago. But. But I think when you look at this, overall, Blackstone is facing some of the same headwinds the private equity industry is facing. It's not a black, Blackstone centric issue. It's more a private equity in general issue. So I would say, you know, all things being equal, notwithstanding the anecdotal discussions we've had with people, Blackstone seems to be performing quite well. And even though the candidate they lost is a rock star, one of the greatest of the greats, they will be fine. So hats off to Blackstone and so forth. Thank you for listening to the Becker Business podcast and the Becker Private Equity Podcast.