The 2025 Q1 earnings call became the time for the company to publicly reassess its view since the Trump administration set forth on an unpredictable rollout of the tariff policy. The company had a strong quarter, though not similarly spectacular to 2024 Q4. Distributable earnings were up 11% year-over-year. They increased assets under management by $62 billion, the highest they’ve seen in 3 years, and by $200 billion over the last 12 months.
Then came the qualifications. “I’d say that $62 billion in the quarter is worth noting,” said Stephen Schwarzman, co-founder, chairman, and chief executive officer. He pointed to a “turbulent market backdrop” that produced challenges.
Uncertainty around tariffs and their potential impact on economic growth and inflation has dramatically impacted investor sentiment,” Schwarzman continued. “It’s early, it’s too early to assess the full implications of tariffs, which depend on the outcome of unprecedented multilateral negotiations with perhaps over 100 countries around the world. The complexity of the situation means that patience and staying power are key.”
Other executives took up the same theme. “I think [conditions] can change very quickly with policy changes,” said President and Chief Operational Officer Jonathan Gray. “There’s just a lot of underlying momentum. “If this tariff diplomacy is resolved more quickly, I think you could see markets recover. And we’ve seen it in the past. And then you could see things open up again.”
“With respect to the environment going forward, that positioning provides a strong foundation as we enter a complex backdrop that will continue to evolve,” said Chief Financial Officer and Vice Chairman Michael Chae. “It will take time to see how tariff developments unfold, as Steve noted, and how they translate to the real economy and corporate earnings. As always, the breadth and diversity of our global portfolio is a source of strength.”
