{
  "id": 16168763,
  "title": "Blackstone sees opportunity in widening AI credit spreads as exits fall 34%",
  "url": "https://urgent.news/2026/10/23/blackstone-sees-opportunity-in-widening-ai-credit-spreads-as-exits",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-23T09:12:03.000Z",
  "source": {
    "name": "Private Equity Wire",
    "slug": "private-equity-wire",
    "url": "https://www.privateequitywire.co.uk/blackstone-sees-opportunity-in-widening-ai-credit-spreads-as-exits-fall-34/"
  },
  "original_language": "en",
  "account": "Blackstone anticipates that widening credit spreads on AI infrastructure debt will present opportunities for greater investment returns, even as its third-quarter realizations declined by 34% due to reduced dealmaking activity. According to Reuters, Blackstone President and COO Jon Gray stated that escalating borrowing costs could enable investors to obtain more appealing yields on new AI infrastructure ventures, particularly assets that have yet to secure tenants. This perspective follows a downward trend in AI-related debt, sparked by concerns over CoreWeave, one of the largest borrowers in the sector and a substantial recipient of Blackstone's financing. Investors have become more cautious about the long-term viability of AI infrastructure spending and the leverage supporting its growth. Blackstone's net realizations dropped 34% to roughly $332 million in the third quarter, with a nearly 50% decline in its private equity segment, as higher interest rates and market volatility deterred investment exits. Despite the slowdown, the alternative asset manager surpassed Wall Street's earnings projections, as assets under management rose to $1.37 trillion following substantial investor inflows. Fee-related earnings increased by 6%, while fee-related earnings from private equity grew 26% to $619 million. The firm's credit and insurance division drew in nearly $36 billion in new capital, followed by $12.6 billion in private equity inflows. Blackstone executives reportedly anticipate a substantial rise in net realizations during the fourth quarter, despite ongoing market uncertainty. Global M&A activity declined by 41% quarter-over-quarter in the third quarter, as higher borrowing costs and geopolitical volatility impacted transactions. Blackstone has also encountered elevated redemption requests at its flagship private credit vehicle, BCRED, although the company maintains that the portfolio's underlying fundamentals remain stable. Its shares have declined nearly 30% year-to-date, compared to a 13% increase in the wider US equity market.",
  "summary": "TOP STORY: Blackstone expects widening credit spreads on AI infrastructure debt to create opportunities for higher investment returns, even as its third-quarter realisations fell 34% amid weaker dealmaking activity, according to a report by Reuters.",
  "key_points": [
    "Blackstone sees AI credit spreads widening as investment opportunity",
    "Third-quarter realizations fell 34% due to reduced dealmaking",
    "Firm expects net realizations to rise in fourth quarter"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}