Oct 23 (Reuters) - Blackstone, the world's

largest alternative asset manager, reported a 48% rise in

third-quarter profit on Thursday, driven by strong gains in its

credit and private equity businesses.

Distributable earnings, or cash that can be used to pay

dividends to shareholders, jumped to $1.89 billion, or $1.52 per

share, in the three months ended September 30, compared with

$1.28 billion, or $1.01 per share, a year earlier.

Transactions have been done thick and fast in recent months

after volatility earlier in the year following U.S. President

Donald Trump's announcement of tariffs on imports as corporate

boardrooms adapt to persistent uncertainty.

Asset sales in the credit and insurance arm were $13 billion

in the quarter, while Blackstone also sold $9.3 billion of

private equity assets.

Among large deals in the quarter, Blackstone's credit and

insurance business led a $7 billion investment in a liquefied

natural gas facility owned by Sempra ( SRE ) in Texas.

Blackstone deployed $26.6 billion of capital in the quarter

and has $188.1 billion in dry powder.

Keeping up momentum in the fourth quarter, Blackstone has

teamed up with private equity peer TPG to take medical

diagnostics firm Hologic ( HOLX ) private in a deal valued at up

to $18.3 billion.

STRONG FUNDRAISING

Blackstone's credit and insurance arm accounted for nearly

two-thirds of the $54.2 billion in inflows in the quarter,

lifting assets under management to a record $1.24 trillion.

The unit, the company's biggest business by assets, is a key

driver of the firm's growing influence in private credit.

The private equity arm saw segment distributable earnings

more than double to $871.5 million in the quarter.

Management's commentary on credit markets will be closely

watched, with analysts expecting the industry to temper concerns

on asset quality.

Alternative asset managers' stocks have weakened in recent

weeks as the bankruptcies of auto parts retailer First Brands

and subprime lender Tricolor stoked investor concerns on credit

risks.

Blackstone shares have slipped 6% this year as of last

close, underperforming the benchmark S&P 500 index.

(Reporting by Isla Binnie in New York and Arasu Kannagi Basil

in Bengaluru; Editing by Sriraj Kalluvila)