NEW YORK, Oct 17 Reuters Blackstone beat Wall Street39;s expectations on its key quarterly earnings metric on Thursday, as the world39;s largest alternative investment firm39;s assets under management AUM hit a record 1.1 trillion and the value of its funds rose.

New Yorkbased Blackstone said it saw 41 billion of inflows during the third quarter, while it deployed and committed 54 billion of capital the highest in over two years amid a revival in dealmaking activity as the U.S. Federal Reserve cut rates and the economic outlook remained sanguine.

Over the past few quarters, high interest rates had been a drag on some aspects of Blackstone39;s business. With the Fed now entering into an easing cycle, the firm saw that weight starting to lift.

The company39;s private equity funds appreciated by 6.2 in the quarter and its infrastructure funds by 5.5, contributing to Blackstone39;s highest fund appreciation in three years.

Chief Executive Steve Schwarzman hailed the results as broadbased acceleration across our business.

Blackstone39;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, surpassing analysts39; average estimate of 0.92, according to LSEG data.

Fundraising during the quarter was led by credit. It said private wealth AUM hit 250 billion, with individual fundraising nearly doubling yeartodate…