Becker Private Equity & Business Podcast Summary

Episode Title: Blackstone, KKR: The Big Private Equity Funds Are Gaining Some Ground Back
Release Date: July 7, 2025
Host: Scott Becker

In the July 7, 2025 episode of the Becker Private Equity & Business Podcast, host Scott Becker explores the recent performance and emerging trends surrounding two of the largest private equity titans: Blackstone and KKR. This episode provides an in-depth analysis of how these behemoth firms are beginning to recover their ground in a fluctuating market environment.

Performance Overview of Major Private Equity Funds

Blackstone

Scott Becker initiates the discussion by focusing on Blackstone, highlighting its challenging performance over the past year. He states, "Blackstone for most of the year has been down 20 to 25% as of this morning" [00:15]. This substantial decline underscores the volatility and pressures that large private equity funds have faced recently. However, Becker points to a positive shift in Blackstone's trajectory, noting, "It's down 10% year to date" [00:25]. This indicates a significant rebound from earlier losses, suggesting that Blackstone is stabilizing and beginning to regain investor confidence.

KKR

Shifting focus to KKR, Becker observes a similar but slightly more optimistic trend compared to Blackstone. He remarks, "KKR, very similar story. It's been doing slightly better all year than Blackstone and that remains the same" [00:45]. While KKR also experienced a notable decline of "down about 20 plus percent," its current standing is "now down 6 to 7%" [00:50]. This sharper recovery relative to Blackstone highlights KKR's resilience and strategic adjustments in response to market dynamics.

Revival of the Deal Environment

A significant portion of the discussion centers on the improving deal environment within the private equity landscape. Becker attributes this resurgence to broader market optimism, stating, "some of this has to do with just the general positivity in the stock markets too" [00:35]. He elaborates that this positive sentiment is instrumental in rejuvenating large-scale deals, as evidenced by the uptick in activity among the major funds.

Becker emphasizes, "Big deals are picking up. Small midsize deals are still way behind, lagging behind last year's numbers" [00:35]. This selective recovery suggests that while major players are capitalizing on favorable conditions to secure substantial investments, smaller deals haven't yet mirrored this momentum, possibly due to lingering market uncertainties or resource allocation preferences.

Implications for the Private Equity Ecosystem

The rebound of Blackstone and KKR has far-reaching implications across the private equity ecosystem. Becker notes, "from the accounting world, the consulting world, the lawyer world, investment banking world, you're pleased to see the starting to bounce back and see some of the activity starting to pick up" [01:20]. This resurgence not only benefits the primary private equity firms but also invigorates ancillary industries that support deal-making processes. Increased activity in large deals can lead to greater demand for professional services, fostering a more dynamic and interconnected financial environment.

Future Outlook

Concluding the episode, Becker expresses cautious optimism about the sustained recovery of major private equity funds. He remarks, "We'll see if that continues to get stronger" [01:40], indicating that while current trends are promising, ongoing vigilance is necessary to ensure that this positive trajectory persists. The potential for continued strengthening will depend on various factors, including market stability, regulatory environments, and the strategic initiatives undertaken by these large firms.

Notable Quotes

• "Blackstone for most of the year has been down 20 to 25% as of this morning." — Scott Becker [00:15]

• "It's down 10% year to date." — Scott Becker [00:25]

• "KKR, very similar story. It's been doing slightly better all year than Blackstone and that remains the same." — Scott Becker [00:45]

• "It's down about 20 plus percent. It's now down 6 to 7%." — Scott Becker [00:50]

• "Some of this has to do with just the general positivity in the stock markets too." — Scott Becker [00:35]

• "Big deals are picking up. Small midsize deals are still way behind, lagging behind last year's numbers." — Scott Becker [00:35]

• "From the accounting world, the consulting world, the lawyer world, investment banking world, you're pleased to see the starting to bounce back and see some of the activity starting to pick up." — Scott Becker [01:20]

• "We'll see if that continues to get stronger." — Scott Becker [01:40]

Conclusion

In this episode, Scott Becker provides a comprehensive analysis of the current state and future prospects of major private equity funds, specifically Blackstone and KKR. Despite significant declines earlier in the year, both firms are showing signs of recovery, buoyed by positive market sentiments and a rebound in large-scale deal activity. The discussion highlights the interconnectedness of the private equity sector with other financial and professional services industries, emphasizing the broader economic implications of these trends. For listeners interested in the dynamics of private equity and its impact on the business landscape, this episode offers valuable insights and a nuanced perspective on the path ahead.