Pattern Recognition_Blackstone

Pattern Recognition

Insights from the World’s Leading Alternative Asset Manager

July 3, 2025

Private Credit Resilience in Times of Uncertainty

  • In early April, market volatility hit public credit markets hard.
  • High-yield bond spreads widened sharply — one of the most significant moves in history — before recovering ~71% by early May. 1
  • But private credit markets remained resilient, operating normally.
  • Further, private credit can offer stable cash flows, insulation from certain policy changes and can serve as a valuable tool for portfolio diversification. 2
High-Yield Spreads Gap Out in One of Most Significant Moves in History
8-week Absolute High-Yield Spread Changes (in bps)

Source: Bloomberg US Corporate High-Yield Index, as of April 8th, 2025.

  1. Bloomberg US Corporate High-Yield Index, as of May 4th, 2025.
  2. Diversification does not guarantee returns or protect against losses in declining markets.

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June 3, 2025

AI Boom Drives Data Center Growth

By Joe Zidle
  • Recent AI efficiency advancements like DeepSeek are driving further demand and investment in digital infrastructure.
  • Amazon CEO Andy Jassy recently noted, “We continue to believe AI is a once-in-a-lifetime reinvention of everything we know, the demand is unlike anything we’ve seen before…”1 
  • The five largest hyperscalers are rapidly increasing their data center capex, expecting to invest $328B in 2025 (up 40% YoY) and $2T over the next five years.2, 3
  •  Blackstone spotted this trend early. Our ~$30B data center development pipeline is 100% pre-leased to high-quality tenants, including leading technology companies on 15+ year leases.
Data Center Capex by the 5 Largest Hyperscalers (Meta, Google, Oracle, Microsoft, Amazon)
($ Billions)

Source: Morgan Stanley, as of February 2025.

  1. CEO Andy Jassy’s 2024 Letter to Shareholders, as of April 10, 2025.
  2. Morgan Stanley, as of February 2025.
  3. Dell’Oro Report, as of August 2024. Investment expected over the next 5 years. There can be no assurance that any of the trends described herein will continue in the future or will not reverse.

May 20, 2025

Secondaries Surge

By Joe Zidle
  • Publicly listed stocks and bonds trade on exchanges, while private drawdown funds are generally bought and sold on the “secondaries market.”
  • As private equity commitments have grown, so has the secondaries market. It has surged from $26B in 2013 to $160B in 2024, up 6x, which still represents less than 1.4% of the total value in private market funds.1 
  • That growth, combined with today’s muted IPO and M&A environment, and a heightened interest from endowments and others seeking early liquidity, has in our view created a particularly attractive environment for secondaries investors. 
Secondaries Market Transaction Volume
($ Billion)

Source: Evercore, February 2025.

  1. Preqin, as of September 30, 2024.


Opinions expressed reflect the current opinions of Blackstone as of the date of publishing only and are based on Blackstone’s opinions of the then-current market environment, which is subject to change. Certain information contained in the content discusses general market activity, industry or sector trends, or other broad-based economic, market or political conditions and should not be construed as research or investment advice.

Certain information and data provided in this content are based on Blackstone proprietary knowledge and data. Portfolio companies may provide proprietary market data to Blackstone, including about local market supply and demand conditions, current market rents and operating expenses, capital expenditures, and valuations for multiple assets. Such proprietary market data is used by Blackstone to evaluate market trends as well as to underwrite potential and existing investments. Additionally, certain information contained in this content has been obtained from portfolio companies and/or sources outside Blackstone, such as press releases, reports, websites, and/or articles, which in certain cases have not been updated through the date hereof. While such information is believed to be reliable for purposes used herein, no representations are made as to the accuracy or completeness thereof and none of Blackstone, its funds, nor any of their affiliates takes any responsibility for, and has not independently verified, any such information. There can be no assurances that any of the trends described herein will continue or will not reverse. Past events and trends do not imply, predict or guarantee, and are not necessarily indicative of, future events or results. 

This commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. This commentary discusses broad market, industry or sector trends, or other general economic, market or political conditions and has not been provided in a fiduciary capacity under ERISA and should not be construed as research, investment advice, or any investment recommendation. Past performance is not necessarily indicative of future performance.