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.

Blackstone is well-poised for top-line growth, supported by a continued rise in AUM. The company is expected to keep gaining from its fund-raising ability. However, high expenses and a challenging operating backdrop are expected to hurt the bottom line in the near term.