Blackstone (BX) beat Wall Street expectations for its key quarterly earnings results on Thursday, as the world’s largest alternative investment firm’s assets under management (AUM) hit a record $1.1 trillion and the value of its funds rose.

New York-based Blackstone said it saw $41 billion in capital inflows in the third quarter, while it deployed and committed $54 billion in capital – the most in more than two years – amid a resurgence in dealmaking activity when the US Federal Reserve cut interest rates and lowered the economic outlook. prospects remained optimistic.

In recent quarters, high interest rates had put a damper on some aspects of Blackstone’s business. With the Fed entering a easing cycle, the company saw its weight starting to increase.

The firm’s private equity funds rose 6.2% in the quarter and its infrastructure funds rose 5.5%, contributing to Blackstone’s highest fund valuation in three years.

Chief Executive Steve Schwarzman called the results a “broad acceleration across our company.”

Blackstone’s distributable earnings, which represent cash that can be used to pay dividends, totaled $1.3 billion in the third quarter, up 6% from the previous year. This translated into distributable earnings per share of $1.01, which beat the average analyst estimate of $0.92, according to LSEG data.

Fundraising during the quarter was mainly focused on loans. According to the report, private wealth assets under management reached $250 billion, with individual fundraising almost doubling this year compared to the previous year.

One of Blackstone’s biggest deals in the quarter was the $16 billion acquisition of Australia’s AirTrunk, which expanded the fund’s position in the data center market to support cloud services and AI. It also agreed to acquire US software company Smartsheet together with Vista Equity Partners for $8.4 billion, including debt.

The company’s market capitalization now stands at $195 billion, with shares hitting an all-time high of $159.71 on October 16.

(Reporting by Echo Wang in New York; Editing by Paritosh Bansal and Muralikumar Anantharaman)