Jan 30 (Reuters) - Blackstone trounced Wall

Street estimates for fourth-quarter profit on Thursday, fueled

by a pickup in dealmaking, while the assets under management at

the world's largest alternative investment firm reached a record

$1.13 trillion.

Lower interest rates, Donald Trump's victory in the U.S.

presidential election and easing economic uncertainty have

powered a global resurgence in deals, with North America leading

the activity in recent months.

Blackstone's fee-related earnings jumped 76% to a quarterly

record of $1.84 billion.

"Earnings growth accelerated sharply, while the key drivers

of our business - inflows, investment activity and realizations

- all reached their highest levels in two-and-a-half years," CEO

Steve Schwarzman said. "As we move forward in 2025, the firm is

exhibiting significant momentum."

Blackstone's distributable earnings surged 56% to $2.2

billion, or $1.69 per share, in the three months ended Dec. 31

compared with $1.4 billion, or $1.11 per share, a year earlier.

Analysts had expected $1.46 apiece, according to data

compiled by LSEG.

BRIGHT OUTLOOK FOR DEALS

Leveraged finance activity is expected to rebound this year

as borrowing costs decline, enabling private equity firms to

finance deals cheaply and complete more acquisitions.

Some of the world's largest buyout firms, including

Blackstone, have begun pursuing large leveraged acquisitions as

the financing outlook improves.

Blackstone said fourth-quarter inflows were $57.5 billion,

bringing full-year inflows to $171.5 billion. It deployed $41.6

billion in capital in the quarter.

Lower rates are also expected to boost corporate earnings

and real-estate valuations, enhancing exit opportunities and

deal flow across broader markets.

In November, Blackstone agreed to buy sandwich chain Jersey

Mike's Subs in a $8 billion deal. In the same month, it also

struck a $4 billion deal to take Retail Opportunity Investments ( ROIC )

private.

Last month, the company said it will buy a high-end office

building in central Tokyo for $2.6 billion, the biggest ever

real-estate outlay by a foreign investor in Japan.