As some traditional investors in private markets became fully allocated, large players in the sector, such as Blackstone, have turned towards the private wealth space as a source of investment. Blackstone's 2025 results show that this area is becoming increasingly significant for its business.

One of the big hitters in the field of private markets investment, US-listed Blackstone, announced last week that it has surpassed $300 billion in private wealth assets under management, tripling this AuM in five years. On a year ago, private wealth AuM rose 13 per cent.

The fact that Blackstone is highlighting the result shows that such firms – along with the likes of KKR and Carlyle, to name two of its peers – are making a greater push into the private wealth client space to diversify the distribution of funds. One obstacle has been that traditional institutional buyers of private market funds have become fully allocated, and post-Covid rate hikes hit IPOs and led to some fund exits being delayed – creating a digestion problem.

Although it has grown rapidly, private wealth is still a minority share of Blackstone's total AuM, which reached almost $1.3 trillion at the end of December 2025, according to a statement.

In 2026, private wealth fundraising reached $43 billion, rising by 53 per cent.

The firm says it has about half of private wealth revenue among major alternative asset managers, which it said shows that it is the leading player in the channel.

Part of Blackstone’s private wealth drive has involved launching “evergreen” funds, or perpetual structures. Now something of an industry buzzword, “evergreen” describes a fund that doesn’t come with the drawdowns, capital calls, exit deadlines and other traditional features of private market entities. These funds don’t carry the kind of liquidity constraints that might be a problem for investors in more established entities, Blackstone said. It added that such funds are fully invested from day one – there is no “cash drag.”

In its results, Blackstone made pre-tax income of $2.356 billion for the fourth quarter of last year, and $7.17 billion for all of 2025, both up on the same period a year earlier.

"We expect 2026 to be our busiest year yet in terms of product launches, as we stated previously. Blackstone has led the evolution of the private wealth market to date, and we expect to lead it in the future,” Jon Gray, president and chief operating officer, Blackstone, said.

There are no free lunches in capitalism, however, so evergreen funds raise questions. For example, as this publication heard recently, if redemptions rise, how does the fund satisfy departing investors without becoming a "forced seller" or degrading the quality of assets left for remaining investors? 

On the other hand, precisely because they appear not to have some of the complexities of traditional private market funds, evergreens are an attractive route into the space for new entrants.