Asks about implications of extraordinary times (AI, market, Middle East) for Blackstone.
Host
Jon Gray
Near-term, Middle East volatility pauses IPO/transaction activity, but conflict will settle. Focus returns to AI investment and underlying fundamentals: healthy economy, falling inflation.
Asks if deals could be at standstill for six months due to oil price uncertainty.
Host
Jon Gray
No. Once conflict settles, oil prices move back down. What matters more: strong earnings growth, inflation heading down, Fed likely to cut rates, leading to pickup in transaction activity.
Asks how to think about AI as another layer of disruption.
Host
Jon Gray
AI is completely transformative. Blackstone invests in foundational infrastructure (data centers, power) and applies AI lens to all investments. Benefits in healthcare will be extraordinary.
Asks about Europe, referencing $500B capital put to work there.
Host
Jon Gray
Continues to find deals in Europe. Biggest challenge is regulatory environment slowing business creation and infrastructure. Policymakers recognizing the problem. Europe will grow more slowly, leading to lower interest rates.
Asks if anything could harken back to global financial crisis, specifically in private credit.
Host
Jon Gray
Current private credit situation not comparable to 2008. Leverage is much lower (unlevered or <1x vs. banks at 30-40x), liabilities are not daily, and defaults are low single digits vs. 20%+ in subprime.