Blackstone's profit climbs on private equity, credit strength

July 24 (Reuters) - Blackstone BX.N reported a 25% jump in second-quarter profit on Thursday, as the world's largest alternative asset manager benefited from robust gains in its credit and private equity arms.

Its distributable earnings, which represent cash that can be used to pay dividends, grew to $1.6 billion, or $1.21 per share, for the three months ended June 30, compared with $1.3 billion, or 96 cents per share, a year earlier.

Even though tariffs uncertainties remain a source of concern for the economy, resilient investors have propelled equity markets to record highs, enabling large asset managers such as Blackstone to capitalize.

Asset sales in the credit and insurance segment were $10 billion, while the company also sold $7.3 billion of private equity assets. It had $181.2 billion of capital available for deployment.

Blackstone has said it remains capable of executing deals even in uncertain environments, underscoring its resilience should trade tensions escalate further.

STRONG INFLOWS

Inflows of $52.1 billion helped push Blackstone's assets under management to $1.2 trillion, up 13% from a year ago.

The credit and insurance segment attracted more than half of the total inflows. The unit is a key driver of Blackstone's growing influence in private credit, as more companies turn to investment firms for flexible financing.

The private equity arm also recorded segment distributable earnings of $751.4 million, up 55% from a year ago.

Assets under management at the real estate division fell 3%, but segment distributable earnings grew 10%.

The company had said tariffs could drive up construction costs and reduce new supply, potentially elevating real estate values if the economy avoids a recession.

Blackstone's shares have dipped slightly this year, compared with an 8% gain in the benchmark S&P 500 .SPX index.