Blackstone Inc.

Condensed Consolidated Statements of Financial Condition (Unaudited)

(Dollars in Thousands)

The following presents the asset and liability portion of the consolidated balances presented in the Condensed Consolidated Statements of Financial Condition attributable to consolidated Blackstone Funds which are variable interest entities. The following assets may only be used to settle obligations of these consolidated Blackstone Funds and these liabilities are only the obligations of these consolidated Blackstone Funds and they do not have recourse to the general credit of

Blackstone.

June 30,

December 31,

2022

2021
Assets

Cash Held by Blackstone Funds and Other    $ 129,276    $ 79,994
Investments    3,764,850    2,018,829
Accounts Receivable    89,725    64,680
Due from Affiliates    16,026    13,748
Other Assets    273    251

Total Assets
   $           4,000,150    $           2,177,502


Liabilities

Loans Payable    $ —    $ 101
Due to Affiliates    84,116    95,204
Securities Sold, Not Yet Purchased    23,063    23,557
Repurchase Agreements    —    15,980
Accounts Payable, Accrued Expenses and Other Liabilities    22,356    10,420

Total Liabilities
   $ 129,535    $ 145,262


	June 30,		December 31,
	2023		2022
Assets
Cash Held by Blackstone Funds and Other	$	215,444	$	241,712
Investments		5,490,773		5,136,542
Accounts Receivable		10,938		55,223
Due from Affiliates		9,508		7,152
Other Assets		781		2,159

Total Assets	$	5,727,444	$	5,442,788


Liabilities
Loans Payable	$	1,714,234	$	1,450,000
Due to Affiliates		106,433		82,345
Accounts Payable, Accrued Expenses and Other Liabilities		132,709		25,858

Total Liabilities	$	1,953,376	$	1,558,203

See notes to condensed consolidated financial statements.

Table of Contents

Blackstone Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data)

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Revenues

Management and Advisory Fees, Net    $ 1,561,187 $ 1,212,549 $ 3,037,123 $ 2,390,364

Incentive Fees    99,598 33,207 204,087 69,331

Investment Income (Loss)
Performance Allocations
Realized    2,453,769 808,620 4,220,155 1,342,987
Unrealized    (3,467,668 ) 2,697,170 (2,174,618 ) 5,161,667
Principal Investments
Realized    265,161 152,060 550,265 507,098
Unrealized    (500,490 ) 328,835 (426,529 ) 968,150

Total Investment Income (Loss)    (1,249,228 ) 3,986,685 2,169,273 7,979,902

Interest and Dividend Revenue    62,075 31,017 116,560 62,429
Other    155,588 27,896 228,457 88,200

Total Revenues
   629,220 5,291,354 5,755,500 10,590,226

Expenses

Compensation and Benefits
Compensation    686,012 507,104 1,342,517 1,049,742
Incentive Fee Compensation    45,363 14,431 86,382 27,756
Performance Allocations Compensation
Realized    1,035,916 347,423 1,753,517 560,450
Unrealized    (1,386,543 ) 1,150,219 (914,259 ) 2,200,188

Total Compensation and Benefits    380,748 2,019,177 2,268,157 3,838,136
General, Administrative and Other    289,288 205,057 529,962 390,179
Interest Expense    69,642 44,322 136,389 89,305
Fund Expenses    4,435 3,774 6,627 6,157

Total Expenses
   744,113 2,272,330 2,941,135 4,323,777

Other Income (Loss)

Change in Tax Receivable Agreement Liability    (13 ) (392 ) 748 2,518
Net Gains (Losses) from Fund Investment Activities    (104,326 ) 127,116 (53,450 ) 247,469

Total Other Income (Loss)
   (104,339 ) 126,724 (52,702 ) 249,987

Income (Loss) Before Provision for Taxes
   (219,232 ) 3,145,748 2,761,663 6,516,436
Provision for Taxes
   36,514 288,250 519,795 287,803

Net Income (Loss)
   (255,746 ) 2,857,498 2,241,868 6,228,633
Net Income Attributable to Redeemable
Non-Controlling
Interests in Consolidated Entities
   25,875 637 30,927 1,266
Net Income (Loss) Attributable to
Non-Controlling
Interests in Consolidated Entities
   (216,707 ) 431,516 (332 ) 818,366
Net Income (Loss) Attributable to
Non-Controlling
Interests in Blackstone Holdings
   (35,521 ) 1,116,193 1,023,792 2,351,977

Net Income (Loss) Attributable to Blackstone Inc.
   $ (29,393 ) $ 1,309,152 $ 1,187,481 $ 3,057,024


Net Income (Loss) Per Share of Common Stock

Basic    $ (0.04 ) $ 1.82 $ 1.61 $ 4.27

Diluted    $ (0.04 ) $ 1.82 $ 1.61 $ 4.27


Weighted-Average Shares of Common Stock Outstanding

Basic    707,382,293 721,141,954 738,752,489 715,121,029

Diluted          707,382,293       721,265,180       739,140,862       715,622,208


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Revenues
Management and Advisory Fees, Net	$	1,709,370		$	1,561,187		$	3,367,685		$	3,037,123

Incentive Fees		153,077			99,598			295,953			204,087

Investment Income (Loss)
Performance Allocations
Realized		502,084			2,453,769			1,148,978			4,220,155
Unrealized		114,395			(3,467,668	)		(644,817	)		(2,174,618	)
Principal Investments
Realized		54,835			265,161			162,893			550,265
Unrealized		164,089			(500,490	)		(327,328	)		(426,529	)

Total Investment Income (Loss)		835,403			(1,249,228	)		339,726			2,169,273

Interest and Dividend Revenue		148,505			62,075			238,990			116,560
Other		(31,664	)		155,588			(45,818	)		228,457

Total Revenues		2,814,691			629,220			4,196,536			5,755,500

Expenses
Compensation and Benefits
Compensation		737,017			686,012			1,453,302			1,342,517
Incentive Fee Compensation		64,227			45,363			127,508			86,382
Performance Allocations Compensation
Realized		205,196			1,035,916			501,990			1,753,517
Unrealized		54,155			(1,386,543	)		(259,094	)		(914,259	)

Total Compensation and Benefits		1,060,595			380,748			1,823,706			2,268,157
General, Administrative and Other		275,034			289,288			548,428			529,962
Interest Expense		108,096			69,642			212,537			136,389
Fund Expenses		31,585			4,435			79,984			6,627

Total Expenses		1,475,310			744,113			2,664,655			2,941,135

Other Income (Loss)
Change in Tax Receivable Agreement Liability		7,095			(13	)		1,887			748
Net Gains (Losses) from Fund Investment Activities		80,500			(104,326	)		151,564			(53,450	)

Total Other Income (Loss)		87,595			(104,339	)		153,451			(52,702	)

Income (Loss) Before Provision for Taxes		1,426,976			(219,232	)		1,685,332			2,761,663
Provision for Taxes		223,269			36,514			270,944			519,795

Net Income (Loss)		1,203,707			(255,746	)		1,414,388			2,241,868
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		17,688			25,875			10,988			30,927
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		89,436			(216,707	)		164,305			(332	)
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings		495,309			(35,521	)		552,009			1,023,792

Net Income (Loss) Attributable to Blackstone Inc.	$	601,274		$	(29,393	)	$	687,086		$	1,187,481


Net Income (Loss) Per Share of Common Stock
Basic	$	0.79		$	(0.04	)	$	0.91		$	1.61

Diluted	$	0.79		$	(0.04	)	$	0.91		$	1.61


Weighted-Average Shares of Common Stock Outstanding
Basic		758,479,943			707,382,293			752,306,729			738,752,489

Diluted		758,548,248			707,382,293			752,630,385			739,140,862

See notes to condensed consolidated financial statements.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited)

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

1. Organization

Blackstone Inc., together with its consolidated subsidiaries (“Blackstone” or the “Company”), is one of the world’s leading investment firms. Blackstone’s asset management business includes investment vehicles focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets and secondary funds, all on a global basis. “Blackstone Funds” refers to the funds and other vehicles that are managed by Blackstone. Blackstone’s business is organized ~~into4~~into four segments: Real Estate, Private Equity, Credit & Insurance and Hedge Fund ~~Solutions and Credit & Insurance.~~Solutions.

~~Effective August 6, 2021, The Blackstone Group Inc. changed its name to Blackstone Inc.~~

Blackstone Inc. was initially formed as The Blackstone Group L.P., a Delaware limited partnership, on March 12, 2007. Prior to its conversion (effective July 1, 2019) to a Delaware corporation, Blackstone Inc. was managed and operated by Blackstone Group Management L.L.C., which is wholly owned by Blackstone’s senior managing directors and controlled by 1one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”). Effective February 26, 2021, the Certificate of Incorporation of Blackstone Inc. was amended and restated to rename Blackstone’s Class A common stock as “common stock” and reclassify Blackstone’s Class B common stock and Class C common stock into a new Series I preferred stock and a new Series II preferred stock, respectively. All references to common stock, Series I preferred stock and Series II preferred stock prior to such date refer to Class A, Class B and Class C common stock, respectively. See Note 13. “Income Taxes” and Note 14. “Earnings Per Share and Stockholders’ Equity — Stockholders’ Equity.”

The activities of Blackstone are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings,” “Blackstone Holdings Partnerships” or the “Holding Partnerships”). Blackstone, through its wholly owned subsidiaries, is the sole general partner of each of the Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common stock, on a

one-to-one

basis, exchanging one Partnership Unit from each of the Holding Partnerships for one share of Blackstone common stock.

2. Summary of Significant Accounting ~~Policies~~Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to

Form 10-Q.

The condensed consolidated financial statements, including these notes, are unaudited and exclude some of the disclosures required in audited financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in Blackstone’s Annual Report on

Form 10-K

for the year ended December 31, ~~2021~~2022 filed with the Securities and Exchange Commission.

The condensed consolidated financial statements include the accounts of Blackstone, its wholly owned or ~~majority owned~~majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which Blackstone is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is determined to have control.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

All intercompany balances and transactions have been eliminated in consolidation.~~~~

Consolidation

Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive

kick-out

rights or participating rights that would overcome the control held by Blackstone. Accordingly, Blackstone consolidates Blackstone Holdings and records

non-controlling

interests to reflect the economic interests of the limited partners of Blackstone Holdings.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

In addition, Blackstone consolidates all variable interest entities (“VIE”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment.

Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone, affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly.

Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Condensed Consolidated Statements of Financial Condition.

Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities.”

Revenue Recognition

Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other.

Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 18. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Management and Advisory Fees, Net

— Management and Advisory Fees, Net are comprised of management fees, including base management fees, transaction and other fees and advisory fees net of management fee reductions and offsets.

Blackstone earns base management fees from its customers, at a fixed percentage of a calculation base which is typically assets under management, net asset value, gross asset value, total assets, committed capital or invested capital. Blackstone identifies its customers on a fund by fund basis in accordance with the terms and circumstances of the individual fund. Generally, the customer is identified as the investors in its managed funds

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

and investment vehicles, but for certain widely held funds or vehicles, the fund or vehicle itself may be identified as the customer. These customer contracts require Blackstone to provide investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid.

Transaction, advisory and other fees are principally fees charged to the investors of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the investors to Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management services to the investors of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed.

Management fee offsets are reductions to management fees payable by the investors of the Blackstone Funds, which are based on the amount such investors reimburse the Blackstone Funds or Blackstone primarily for placement fees. Providing investment management services requires Blackstone to arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the investors of funds, it presents the cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the investors of the funds recorded as Management and Advisory Fees, Net. In cases where the investors of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract. Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the ~~Condensed~~ Consolidated Statements of Financial Condition and amortization is recorded within General, Administrative and Other within the ~~Condensed~~ Consolidated Statements of Operations.

Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Condensed Consolidated Statements of Financial Condition.

Incentive Fees

— Contractual fees earned based on the performance of Blackstone ~~Funds~~vehicles (“Incentive Fees”) are a form of variable consideration in Blackstone’s contracts with customers to provide investment management services. Incentive Fees are earned based on ~~fund~~ performance of the vehicle during the period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each ~~fund’s~~vehicle’s governing agreements. Incentive Fees will not be recognized as revenue until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Incentive Fees are typically recognized as revenue when realized at the end of the measurement period. Once realized, such fees are not subject to clawback or reversal. Accrued but unpaid Incentive Fees charged directly to investors in Blackstone ~~Funds~~vehicles as of the reporting date are recorded within Due from Affiliates in the Condensed Consolidated Statements of Financial Condition.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Investment Income (Loss)

— Investment Income (Loss) represents the unrealized and realized gains and losses on Blackstone’s Performance Allocations and Principal Investments.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

In carry fund structures and certain open-ended structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its

pro-rata

share of the results of the fund vehicle (a

“pro-rata

allocation”). In addition to a

pro-rata

allocation, and assuming certain investment returns are achieved, Blackstone is entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”).

Performance Allocations in carry fund structures are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. Performance Allocations in open-ended structures are based on vehicle performance over a period of time, subject to a high water mark and preferred return to investors. At the end of each reporting period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Condensed Consolidated Statements of Financial Condition.

Performance Allocations in carry fund structures are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations in carry fund structures are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and

non-controlling

interest holders that would need to be repaid to the Blackstone carry funds if the Blackstone carry funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, including certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. Performance Allocations in open-ended structures are realized based on the stated time period in the agreements and are generally not subject to clawback once paid.

Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive

pro-rata

allocations, its equity method investments, and other principal investments. Income (Loss) on Principal Investments is realized when Blackstone redeems all or a portion of its investment or when Blackstone receives cash income, such as dividends or distributions. Unrealized Income (Loss) on Principal Investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Interest and Dividend Revenue

— Interest and Dividend Revenue comprises primarily of interest and dividend income earned on principal investments not accounted for under the equity method held by Blackstone.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Other Revenue

— Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. ~~dollars.~~dol

lars.

Fair Value of Financial Instruments

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

●

Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price.

●

Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within ~~CLO~~consolidated collateralized loan obligations (“CLO”) vehicles, government and agency securities, less liquid and restricted equity securities, and certain

over-the-counter

derivatives where the fair value is based on observable inputs. Notes issued by consolidated CLO vehicles are classified within Level II of the fair value hierarchy.

●

Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and

non-investment

grade residual interests in securitizations, ~~certain corporate bonds and loans held within CLO vehicles~~investments in

non-consolidated

CLOs and certain

over-the-counter

derivatives where the fair value is based on unobservable inputs.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

Level II Valuation Techniques

Financial instruments classified within Level II of the fair value hierarchy comprise of debt instruments, ~~including~~ debt securities sold, not yet purchased and certain equity securities and derivative instruments valued using observable ~~inputs.~~inputs are also classified as Level II.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows:

●

Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants including those provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction.

●

Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads.

●

Notes issued by consolidated CLO vehicles are measured based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services.

Level III Valuation Techniques

In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for

non-performance

and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies, real estate properties, investments in

non-consolidated

CLO vehicles, certain funds of hedge funds and credit-focused investments.

Real Estate Investments –

– The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable assets, if any, and replacement costs, among other ~~measures.~~measures and considerations. The methods used to estimate the fair value of real estate investments include the discounted cash flow method, ~~and/~~where value is calculated by discounting the estimated cash flows and the estimated terminal value of the subject investment by the assumed buyer’s weighted average cost of capital. A terminal value is derived by reference to an exit multiple, such as for estimates of earnings before interest, taxes, depreciation and amortization (“EBITDA”), or a capitalization ~~rates analysis.~~rate, such as for estimates of net operating income (“NOI”). Valuations may also be derived by the performance multiple or market approach, by reference to observable valuation measures for comparable companies or assets (for example, ~~multiplying a key performance metric of the investee company or asset, such as earnings before interest, taxes, depreciation and amortization (“EBITDA”),~~dividing NOI by a relevant ~~valuation multiple~~capitalization rate observed ~~in the range of~~for comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to an exit EBITDA multiple or capitalization rate. Additionally, where applicable, projected distributable cash flow-through debt maturity will be considered in support of the investment’s fair value.comparables.

Private Equity Investments –

– The fair values of private equity investments are determined by reference to projected net earnings, EBITDA, the discounted cash flow method, public market or private transactions, valuations for comparable companies and other measures which, in many cases, are based on unaudited information at the time received. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Valuations may also be derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where ~~a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples.~~Noted)

Credit-Focused Investments

– The fair values of credit-focused investments are generally determined on the basis of prices between market participants provided by reputable dealers or pricing services. For credit-focused investments that are not publicly traded or whose market prices are not readily available, Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. The discounted cash flow method projects the expected cash flows of the debt instrument based on contractual terms, and discounts such cash flows back to the valuation date using a market-based yield. The market-based yield is estimated using yields of publicly traded debt instruments issued by companies operating in similar industries as the subject investment, with similar leverage statistics and time to maturity.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring.

Investments, at Fair Value

~~The~~

Generally, the Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants ~~Accounting~~Audit and ~~Auditing~~Accounting Guide,

Investment Companies

, and in accordance with the GAAP guidance on investment companies and reflect their investments, including ~~majority owned~~majority-owned and controlled investments (the “Portfolio Companies”), at fair value. Such consolidated funds’ investments are reflected in Investments on the Condensed Consolidated Statements of Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date, at current market conditions (i.e., the exit price).

Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Condensed Consolidated Statements of Operations within Investment Income (Loss).

For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition or other eligible election dates. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue.

Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures notes issued by consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any

non-financial

assets held temporarily, less (b) the sum of the fair value of any beneficial interests retained by Blackstone (other than those that represent compensation for services) and Blackstone’s carrying value of any beneficial interests that represent compensation for services. As a result of this measurement alternative, there is no attribution of amounts to

Non-Controlling

Interests for consolidated CLO vehicles. Assets of the consolidated CLOs are presented within Investments within the Condensed Consolidated Statements of Financial Condition and notes payable within Loans Payable for the amounts due to unaffiliated third parties. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income are presented within Net Gains from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations.

Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option.”

Blackstone may elect to measure certain proprietary investments in equity securities without readily determinable fair values under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer. If the measurement alternative election is not made, the equity security is measured at fair value. The measurement alternative election is made on an instrument by instrument basis. The election is reassessed each reporting period to determine whether investments under the measurement alternative have readily determinable fair values, in which case they would no longer be eligible for this election.

The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or

lock-ups,

the institution of gates on redemptions or the suspension of redemptions or an ability to side-pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be redeemable at, or within three months of, the reporting date. A side-pocket is used by hedge funds and funds of hedge funds to separate investments that may lack a readily ascertainable value, are illiquid or are subject to liquidity restriction. Redemptions are generally not permitted until the investments within a side-pocket are liquidated or it is deemed that the conditions existing at the time that required the investment to be included in the side-pocket no longer exist. As the timing of either of these events is uncertain, the timing at which Blackstone may redeem an investment held in a side-pocket cannot be estimated. Further disclosure on instruments for which fair value is measured using NAV per share is presented in Note 5. “Net Asset Value as Fair Value.”

Security and loan transactions are recorded on a trade date basis.

Equity Method Investments

Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which generally include both a proportionate and disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Condensed Consolidated Statements of Operations.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Condensed Consolidated Statements of Financial Condition.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Strategic Partners’ results presented in Blackstone’s condensed consolidated financial statements are reported on a three month lag from Strategic Partners’ fund financial statements, which report the performance of underlying investments generally on a same quarter basis, if available. Therefore, Strategic Partners’ results presented herein do not reflect the impact of economic and market activity in the current quarter. Current quarter market activity of Strategic Partners’ underlying investments is expected to affect Blackstone’s reported results in upcoming periods. Effective September 30, 2021, Strategic Partners’ fund financial reporting process was updated to report the performance of underlying fund investments generally on a same-quarter basis, if available. Previously, such fund financial reporting in Strategic Partners’ fund financial statements generally reported on a three month lag. This update to Strategic Partners’ fund financial reporting process has permitted Strategic Partners’ appreciation to be reported in Blackstone’s financial statements on a more current basis.

Compensation and Benefits

—

Compensation

— Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and senior managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors. Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date, and expensed over the vesting period on a straight-line basis, taking into consideration expected forfeitures, except in the case of (a) equity-based awards that do not require future service, which are expensed immediately, and (b) certain awards to recipients that meet criteria making them eligible for retirement (allowing such recipient to keep a percentage of those awards upon departure from Blackstone after becoming eligible for retirement), for which the expense for the portion of the award that would be retained in the event of retirement is either expensed immediately or amortized to the retirement date. Cash settled equity-based awards and awards settled in a variable number of shares are classified as liabilities and are remeasured at the end of each reporting period.

Compensation and Benefits

— Incentive Fee Compensation

—

Incentive Fee Compensation consists of compensation paid based on Incentive Fees.

Compensation and Benefits

— Performance Allocations Compensation

—

Performance Allocation Compensation consists of compensation paid based on Performance Allocations (which may be distributed in cash or

in-kind).

Such compensation expense is subject to both positive and negative adjustments. ~~Unlike~~ Performance Allocations ~~compensation expense~~Compensation is generally based on the performance of individual investments held by a fund rather than on a fund by fund basis. These amounts may also include allocations of investment income from Blackstone’s principal investments, to senior managing directors and employees participating in certain profit sharing initiatives.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Non-Controlling

Interests in Consolidated Entities

Non-Controlling

Interests in Consolidated Entities represent the component of Equity in general partner entities and consolidated Blackstone Funds held by third party investors and employees. The percentage interests in consolidated Blackstone Funds held by third parties and employees is adjusted for general partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period. Income (Loss) and other comprehensive income, if applicable, arising from the respective entities is allocated to

non-controlling

interests in consolidated entities based on the relative ownership interests of third party investors and employees after considering any contractual arrangements that govern the allocation of income (loss) such as fees allocable to Blackstone Inc.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Redeemable

Non-Controlling

Interests in Consolidated Entities

Investors in certain consolidated ~~funds~~vehicles may be granted redemption rights that allow for quarterly or monthly redemption, as outlined in the relevant ~~fund~~ governing documents. Such redemption rights may ~~include~~be subject to certain limitations, including limits on the ~~amounts~~aggregate amount of interests that may be redeemed in a given period, may only allow for redemption following the expiration of a specified period of time, or may be withdrawn subject to a redemption fee during the period when capital may not be withdrawn. As a result, amounts relating to third party interests in such consolidated ~~funds~~vehicles are presented as Redeemable

Non-Controlling

Interests in Consolidated Entities within the Condensed Consolidated Statements of Financial Condition. When redeemable amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition. For all consolidated ~~funds~~vehicles in which redemption rights have not been granted,

non-controlling

interests are presented within Equity in the Condensed Consolidated Statements of Financial Condition as

Non-Controlling

Interests in Consolidated Entities.

Non-Controlling

Interests in Blackstone Holdings

Non-Controlling

Interests in Blackstone Holdings represent the component of Equity in the consolidated Blackstone Holdings Partnerships held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships.

Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to

Non-Controlling

Interests in Blackstone Holdings. This residual attribution is based on the year to date average percentage of Blackstone Holdings Partnership Units and unvested participating Holdings Partnership Units held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Unvested participating Holdings Partnership Units are excluded from the attribution in periods of loss as they are not contractually obligated to share in losses of the Holdings Partnerships.

Income Taxes

Provision of Income Taxes

Income taxes are provided for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities, resulting in all pretax amounts being appropriately tax effected in the period, irrespective of which tax return year items will be reflected. Blackstone reports interest expense and tax penalties related to income tax matters in provision for income taxes.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Deferred Income Taxes

Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. Valuation allowances are established to reduce the deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets are separately stated, and deferred tax liabilities are included in Accounts Payable, Accrued Expenses, and Other Liabilities in the condensed consolidated financial statements.

Unrecognized Tax Benefits

Blackstone recognizes tax positions in the condensed consolidated financial statements when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit ~~what~~that will more likely than not be realized on settlement. A liability is established for differences between positions taken in the return and amounts recognized in the condensed consolidated financial statements.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Net Income (Loss) Per Share of Common Stock

Basic Income (Loss) Per Share of Common Stock is calculated by dividing Net Income (Loss) Attributable to Blackstone Inc. by the weighted-average shares of common stock, unvested participating shares of common stock outstanding for the period and vested deferred restricted shares of common stock that have been earned for which issuance of the related shares of common stock is deferred until future periods. Diluted Income (Loss) Per Share of Common Stock reflects the impact of all dilutive securities. Unvested participating shares of common stock are excluded from the computation in periods of loss as they are not contractually obligated to share in losses.

Blackstone applies the treasury stock method to determine the dilutive weighted-average common shares outstanding for certain equity-based compensation awards. Blackstone applies the

“if-converted”

method to the Blackstone Holdings Partnership Units to determine the dilutive impact, if any, of the exchange right included in the Blackstone Holdings Partnership Units. Blackstone applies the contingently issuable share model to contracts that may require the issuance of shares.

Reverse Repurchase and Repurchase Agreements

Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and

non-U.S.

government and agency securities, asset-backed securities and corporate debt, represent collateralized financing transactions. Such transactions are recorded in the Condensed Consolidated Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of reverse repurchase and repurchase agreements approximates fair value.

Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.

Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are discussed in Note 10. “Repurchase Agreements.”

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 11. “Offsetting of Assets and ~~Liabilities.~~Liab

iliti

es.”

Securities Sold, Not Yet Purchased

Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short.

Securities Sold, Not Yet Purchased are recorded at fair value in the Condensed Consolidated Statements of Financial Condition.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Derivative Instruments

Blackstone recognizes all derivatives as assets or liabilities on its Condensed Consolidated Statements of Financial Condition at fair value. On the date Blackstone enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”).

For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains from Fund Investment Activities or, where derivative instruments are held by Blackstone, within Investment Income (Loss) in the Condensed Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition.

Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Condensed Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.

Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments.”

Blackstone’s disclosures regarding offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities.”

Affiliates

Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates.

~~Dividends~~

~~Dividends are reflected in the condensed consolidated financial statements when declared.~~

~~3. Intangible Assets~~

~~Intangible Assets, Net consists of the following:~~

June 30,

December 31,

2022

2021
Finite-Lived Intangible Assets/Contractual Rights    $ 1,745,376 $ 1,745,376
Accumulated Amortization    (1,498,388 ) (1,460,992 )

Intangible Assets, Net    $ 246,988 $ 284,384

Amortization expense associated with Blackstone’s intangible assets was $18.7 million and $37.4 million for the three and six month periods ended June 30, 2022, respectively, and $18.7 million and $37.5 million for the three and six month periods ended June 30, 2021, respectively.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and ~~2021, respectively.~~Per Share Data, Except Where Noted)

Accrued Performance Allocations

Accrued Performance Allocations to Blackstone were as follows:

Real

Private

Hedge Fund

Credit &


Estate

Equity

Solutions

Insurance

Total
Accrued Performance Allocations, December 31, 2021    $ 8,471,754 $ 7,550,468 $ 456,405 $ 618,246 $ 17,096,873
Performance Allocations as a Result of Changes in Fund Fair Values    2,440,870 (353,970 ) 56,264 5,454 2,148,618
Foreign Exchange Loss    (97,153 ) — — — (97,153 )
Impact of Consolidation    (10,393 ) — — — (10,393 )
Fund Distributions    (4,591,348 ) (815,886 ) (58,754 ) (127,102 ) (5,593,090 )

Accrued Performance Allocations,
June 30, 2022    $ 6,213,730 $ 6,380,612 $ 453,915 $ 496,598 $ 13,544,855


	Real			Private			Credit &			Hedge Fund
	Estate			Equity			Insurance			Solutions			Total
Accrued Performance Allocations, December 31, 2022	$	5,334,117		$	6,037,575		$	569,898		$	419,094		$	12,360,684
Performance Allocations as a Result of Changes in Fund Fair Values		(422,453	)		808,471			75,955			44,234			506,207
Foreign Exchange Gain		12,366			—			—			—			12,366
Fund Distributions		(503,135	)		(597,999	)		(199,353	)		(82,526	)		(1,383,013	)

Accrued Performance Allocations, June 30, 2023	$	4,420,895		$	6,248,047		$	446,500		$	380,802		$	11,496,244

Corporate Treasury Investments

The portion of corporate treasury investments included in Investments represents Blackstone’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments:

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Realized Gains (Losses)    $ (18,655 ) $ (1,049 ) $ (20,617 ) $ 5,885
Net Change in Unrealized Gains (Losses)    (19,980 ) 29,523 (47,583 ) 39,452

   $ (38,635 ) $ 28,474 $ (68,200 ) $ 45,337

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

~~Other Investments~~

Other Investments consist of equity method investments where Blackstone has elected the fair value option and other proprietary investment securities held by Blackstone, including equity securities carried at fair value, equity investments without readily determinable fair values, and subordinated notes in

~~non-consolidated~~

CLO vehicles. Equity investments without a readily determinable fair value had a carrying value of $2.5 billion as of June 30, 2022, including the investment in Corebridge Financial, Inc., formerly known as American International Group, Inc.’s Life and Retirement business (“Corebridge”). In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are

~~reported~~

~~at fair value. See Note 8. “Fair Value Measurements of Financial Instruments” for additional detail. The following table presents Blackstone’s Realized and Net Change in~~

~~Unrealized~~

~~Gains (Losses) in Other Investments:~~

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Realized Gains    $ 15,992 $ 29,309    $ 117,341 $ 29,422
Net Change in Unrealized Gains (Losses)    (70,785 ) 1,065    (151,270 ) 285,567

   $ (54,793 ) $ 30,374    $ (33,929 ) $ 314,989


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023		2022
Realized Gains (Losses)	$	(2,297	)	$	(18,655	)	$	77	$	(20,617	)
Net Change in Unrealized Gains (Losses)		791			(19,980	)		8,586		(47,583	)

	$	(1,506	)	$	(38,635	)	$	8,663	$	(68,200	)

~~5. Net Asset Value as Fair Value~~

~~A summary of fair value by strategy type and ability to redeem such investments as of June 30, 2022 is presented below:~~

Redemption


Frequency

Redemption
Strategy (a)

Fair Value

    (if currently eligible)

Notice Period
Equity    $ 433,281    (b) (b)
Real Estate    118,606    (c) (c)
Credit Driven    25,778    (d) (d)
Commodities    1,119    (e) (e)
Diversified Instruments    17    (f) (f)

   $ 578,801

~~(a)~~

~~As of June 30, 2022, Blackstone had no unfunded commitments.~~

~~(b)~~

The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investment representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing less than 1% of the fair value of the investments in this category are in liquidation. As of the reporting date, the investee fund manager had elected to side-pocket less than 1% of Blackstone’s investments in the category.

~~(c)~~

~~The Real Estate category includes~~

~~investments in funds that primarily invest in real~~

~~estate~~

~~assets. Investments representing 100% of fair value of the investments in this category are redeemable as of the reporting date.~~

~~(d)~~

The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 83% of the fair value of the investments in this category are in liquidation. The remaining 17% of investments in this category may not be redeemed at, or within three months of, the reporting date.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Other Investments

non-consolidated

CLO vehicles. Equity securities carried at fair value include the ownership of common stock of Corebridge Financial, Inc., formerly known as American International Group, Inc.’s Life and Retirement business (“Corebridge”). Such common stock is subject to certain phased

lock-up

restrictions that expire over time through five years after the initial public offering (“IPO”) of Corebridge. Equity investments without a readily determinable fair value had a carrying value of $378.5 million as of June 30, 2023. In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are reported at fair value. See Note 8. “Fair Value Measurements of Financial Instruments” for additional detail. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Realized Gains (Losses)	$	(18,109	)	$	15,992		$	(16,185	)	$	117,341
Net Change in Unrealized Gains (Losses)		157,968			(70,785	)		(155,185	)		(151,270	)

	$	139,859		$	(54,793	)	$	(171,370	)	$	(33,929	)

5. Net Asset Value as Fair Value

A summary of fair value by strategy type and ability to redeem such investments as of June 30, 2023 is presented below:

Redemption

Frequency

Redemption

Strategy (a)

Fair Value

(if currently eligible)

Notice Period

Equity

476,512

(b)

Real Estate

122,629

(c)

Credit Driven

5,269

(d)

Commodities

1,089

(e)

Diversified Instruments

(f)

605,516

~~(e)~~(a)

As of June 30, 2023, Blackstone had no unfunded commitments.

(b)

The ~~Commodities~~Equity category includes investments in ~~commodities-focused~~hedge funds that invest primarily ~~invest~~ in ~~futures~~domestic and ~~physical-based commodity driven strategies.~~international equity securities. Investments representing ~~100%~~25% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date.

~~(f)~~

~~Diversified Instruments include investments in funds that invest across multiple strategies.~~ Investments representing ~~100%~~75% of the fair value of the investments in this category are redeemable as of the reporting date.

(c)	The Real Estate category includes investments in funds that primarily invest in real estate assets. All investments in this category are redeemable as of the reporting date.

(d)	The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. All investments in this category may not be redeemed at, or within three months of, the reporting date.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

(e)	The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. All investments in this category may not be redeemed at, or within three months of, the reporting date.

(f)	Diversified Instruments include investments in funds that invest across multiple strategies. All investments in this category may not be redeemed at, or within three months of, the reporting date.

6. Derivative Financial Instruments

Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its

non-U.S.

dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.

Freestanding Derivatives

Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.


	June 30, 2023								December 31, 2022
	Assets				Liabilities				Assets				Liabilities
			Fair				Fair				Fair				Fair
	Notional		Value		Notional		Value		Notional		Value		Notional		Value
Freestanding Derivatives
Blackstone
Interest Rate Contracts	$	823,830	$	179,531	$	620,900	$	85,721	$	789,540	$	188,043	$	621,700	$	83,331
Foreign Currency Contracts		221,472		2,472		531,099		5,811		541,238		8,040		190,774		3,542
Credit Default Swaps		3,108		643		3,748		670		2,007		384		8,768		1,309
Total Return Swaps		20,010		3,417		—		—		42,233		6,210		—		—
Equity Options		—		—		1,135,435		221,456		—		—		996,592		48,581

		1,068,420		186,063		2,291,182		313,658		1,375,018		202,677		1,817,834		136,763

Investments of Consolidated Blackstone Funds
Interest Rate Contracts		848,251		79,083		—		—		931,752		74,926		—		—
Foreign Currency Contracts		—		—		—		—		—		—		5,133		284

		848,251		79,083		—		—		931,752		74,926		5,133		284

	$	1,916,671	$	265,146	$	2,291,182	$	313,658	$	2,306,770	$	277,603	$	1,822,967	$	137,047

The table below summarizes the impact to the Condensed Consolidated Statements of Operations from derivative financial instruments:


	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Freestanding Derivatives
Realized Gains (Losses)
Interest Rate Contracts	$	(189	)	$	1,379		$	147		$	5,278
Foreign Currency Contracts		4,433			(8,767	)		10,023			(4,775	)
Credit Default Swaps		(362	)		33			(413	)		128
Total Return Swaps		6,373			—			11,025			—

		10,255			(7,355	)		20,782			631


Net Change in Unrealized Gains (Losses)
Interest Rate Contracts		4,897			72,721			2,777			107,677
Foreign Currency Contracts		(4,655	)		6,766			(7,838	)		(2,606	)
Credit Default Swaps		592			(433	)		364			(420	)
Total Return Swaps		(2,164	)		—			(2,177	)		—
Equity Options		(18,038	)		—			(172,876	)		—

		(19,368	)		79,054			(179,750	)		104,651

	$	(9,113	)	$	71,699		$	(158,968	)	$	105,282

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

As of June 30, 2023 and December 31, 2022,

Blackstone

had not designated any derivatives as fair value, cash flow or net investment hedges.

7. Fair Value Option

The following table summarizes the financial instruments for which the fair value option has been elected:


	June 30,		December 31,
	2023		2022
Assets
Loans and Receivables	$	76,861	$	315,039
Equity and Preferred Securities		2,295,099		1,868,192
Debt Securities		64,697		24,784
Assets of Consolidated CLO Vehicles
Corporate Loans		219,324		—

	$	2,655,981	$	2,208,015


Liabilities
CLO Notes Payable	$	264,234	$	—
Corporate Treasury Commitments		3,771		8,144

	$	268,005	$	8,144

The following tables present the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected:


	Three Months Ended June 30,
	2023						2022
				Net Change						Net Change
	Realized			in Unrealized			Realized			in Unrealized
	Gains (Losses)			Gains (Losses)			Gains (Losses)			Gains (Losses)
Assets
Loans and Receivables	$	(5,232	)	$	4,227		$	(1,964	)	$	(6,805	)
Equity and Preferred Securities		(2,878	)		26,812			13,023			(19,774	)
Debt Securities		—			(876	)		(3,415	)		(19,227	)
Assets of Consolidated CLO Vehicles
Corporate Loans		(3,070	)		4,150			—			—

	$	(11,180	)	$	34,313		$	7,644		$	(45,806	)

Liabilities
CLO Notes Payable	$	—		$	(1,541	)	$	—		$	—
Corporate Treasury Commitments		—			2,147			—			(6,868	)

	$	—		$	606		$	—		$	(6,868	)

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)


	Six Months Ended June 30,
	2023						2022
				Net Change						Net Change
	Realized			in Unrealized			Realized			in Unrealized
	Gains (Losses)			Gains (Losses)			Gains (Losses)			Gains (Losses)
Assets
Loans and Receivables	$	(5,995	)	$	3,924		$	(3,417	)	$	(5,359	)
Equity and Preferred Securities		(1,182	)		(18,301	)		12,301			(12,938	)
Debt Securities		—			(2,707	)		(4,367	)		(28,209	)
Assets of Consolidated CLO Vehicles
Corporate Loans		(6,199	)		4,632			—			—

	$	(13,376	)	$	(12,452	)	$	4,517		$	(46,506	)

Liabilities
CLO Notes Payable	$	—		$	923		$	—		$	—
Corporate Treasury Commitments		—			4,373			—			(8,061	)

	$	—		$	5,296		$	—		$	(8,061	)

The following table ~~below summarizes~~presents information for those financial instruments for which the ~~aggregate notional amount and~~ fair value option was elected:


	June 30, 2023								December 31, 2022
				For Financial Assets								For Financial Assets
				Past Due (a)								Past Due (a)
	Excess (Deficiency)					(Deficiency)			(Deficiency)					Excess
	of Fair Value			Fair		of Fair Value			of Fair Value			Fair		of Fair Value
	Over Principal			Value		Over Principal			Over Principal			Value		Over Principal
Loans and Receivables	$	482		$	—	$	—		$	(2,861	)	$	—	$	—
Debt Securities		(53,387	)		—		—			(48,670	)		—		—
Assets of Consolidated CLO Vehicles
Corporate Loans		(7,750	)		385		(644	)		—			—		—

	$	(60,655	)	$	385	$	(644	)	$	(51,531	)	$	—	$	—

(a)	Assets are classified as past due if contractual payments are more than 90 days past due.

As of June 30, 2023 and December 31, 2022, no Loans and Receivables for which the ~~derivative financial instruments. The notional amount represents~~fair value option was elected were past due or in

non-accrual

status. As of June 30, 2023, there was one Corporate Loan included within the ~~absolute~~Assets of Consolidated CLO Vehicles for which the fair value ~~amount~~option was elected that was past due but was not in

non-accrual

status. As of ~~all outstanding derivative contracts.~~December 31, 2022, no Corporate Loans included within the Assets of Consolidated CLO Vehicles for which the fair value option was elected were past due or in

non-accrual

status.

Table of Contents

Blackstone Inc.

June 30, 2022

December 31, 2021

Assets

Liabilities

Assets

Liabilities

Fair

Fair

Fair

Fair

Notional

Value

Notional

Value

Notional

Value

Notional

Value
Freestanding Derivatives

Blackstone

Interest Rate Contracts $ 690,840 $ 139,430 $ 614,600 $ 42,341 $ 609,132 $ 143,349 $ 692,442 $ 138,677
Foreign Currency Contracts 891,070 12,874 1,008,220 14,653 217,161 1,858 572,643 6,143
Credit Default Swaps 2,007 349 9,463 1,433 2,007 194 9,916 1,055

1,583,917 152,653 1,632,283 58,427 828,300 145,401 1,275,001 145,875

Investments of Consolidated Blackstone Funds
Foreign Currency Contracts 132,289 2,405 506 2 20,764 339 54,300 370
Interest Rate Contracts 596,327 26,577 — — — — 14,000 764
Credit Default Swaps 3,401 585 6,814 1,173 3,401 321 22,865 799

732,017 29,567 7,320 1,175 24,165 660 91,165 1,933

$ 2,315,934 $ 182,220 $ 1,639,603 $ 59,602 $ 852,465 $ 146,061 $ 1,366,166 $ 147,808

~~The table below summarizes the impact~~Notes to ~~the~~ Condensed Consolidated Financial Statements ~~of Operations from derivative financial instruments:~~(Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Freestanding Derivatives

Realized Gains (Losses)
Interest Rate Contracts    $ 1,379 $ (348 ) $ 5,278 $ 1,298
Foreign Currency Contracts    (8,767 ) 2,887 (4,775 ) 4,423
Credit Default Swaps    33 (8 ) 128 (990 )
Total Return Swaps    — (65 ) — (1,415 )
Other    — — — (40 )

   (7,355 ) 2,466 631 3,276


Net Change in Unrealized Gains (Losses)
Interest Rate Contracts    72,721 39,484 107,677 45,185
Foreign Currency Contracts    6,766 (3,249 ) (2,606 ) (3,376 )
Credit Default Swaps    (433 ) — (420 ) 842
Total Return Swaps    — — — 2,130
Other    — — — (20 )

   79,054 36,235 104,651 44,761

   $ 71,699 $ 38,701 $ 105,282 $ 48,037

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

The following tables provide information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged:


		June 30, 2022											June 30, 2023
		Remaining Contractual Maturity of the Agreements											Remaining Contractual Maturity of the Agreements
		Overnight						Greater					Overnight						Greater
		and		Up to		30 - 90		than					and		Up to		30 - 90		than
		Continuous		30 Days		Days		90 days		Total			Continuous		30 Days		Days		90 days		Total
Repurchase Agreements
Loans		$	—	$	—	$	—	$	152,529	$	152,529		$	—	$	18,262	$	—	$	—	$	18,262


Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”	Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”									$	152,529	Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”									$	18,262


Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”	Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”									$	—	Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”									$	—


	December 31, 2022
	Remaining Contractual Maturity of the Agreements
	Overnight						Greater
	and		Up to		30 - 90		than
	Continuous		30 Days		Days		90 days		Total
Repurchase Agreements
Loans	$	—	$	70,776	$	—	$	19,168	$	89,944


Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”									$	89,944


Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”									$	—

11. Offsetting of Assets and Liabilities

The following tables present the offsetting of assets and liabilities as of June 30, 2023

and D

ecember 31, 2022:

June 30, 2023

Gross and Net

Amounts of

Gross Amounts Not Offset

Assets Presented

in the Statement of

in the Statement

Financial Condition

of Financial

Financial

Cash Collateral

Condition

Instruments (a)

Received

Net Amount

Assets

Freestanding Derivatives

265,146

167,069

86,222

11,855

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)


	June 30, 2023
	Gross and Net
	Amounts of
	Liabilities		Gross Amounts Not Offset
	Presented in the		in the Statement of
	Statement of		Financial Condition
	Financial		Financial		Cash Collateral
	Condition		Instruments (a)		Pledged		Net Amount
Liabilities
Freestanding Derivatives	$	92,202	$	87,529	$	820	$	3,853
Repurchase Agreements		18,262		18,262		—		—

	$	110,464	$	105,791	$	820	$	3,853

December 31, 2022

Gross and Net

Amounts of

Gross Amounts Not Offset

Assets Presented

in the Statement of

in the Statement

Financial Condition

of Financial

Financial

Cash Collateral

Condition

Instruments (a)

Received

Net Amount

Assets

Freestanding Derivatives

277,603

165,897

96,436

15,270


	December 31, 2022
	Gross and Net
	Amounts of
	Liabilities		Gross Amounts Not Offset
	Presented in the		in the Statement of
	Statement of		Financial Condition
	Financial		Financial		Cash Collateral
	Condition		Instruments (a)		Pledged		Net Amount
Liabilities
Freestanding Derivatives	$	88,182	$	85,366	$	1,345	$	1,471
Repurchase Agreements		89,944		89,944		—		—

	$	178,126	$	175,310	$	1,345	$	1,471

December 31, 2021

Remaining Contractual Maturity of the Agreements

Overnight

Greater


and

Up to

30 - 90

than


Continuous

30 Days

Days

90 days

Total
Repurchase Agreements

Asset-Backed Securities    $ —    $ 15,980    $ —    $      —    $ 15,980
Loans    —    —    42,000    —    42,000

   $ —    $ 15,980    $ 42,000    $ —    $ 57,980


Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”    $ 57,980


Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”    $ —

~~11. Offsetting of Assets and Liabilities~~

~~The following tables present the offsetting of assets and liabilities as of June 30, 2022 and December 31, 2021:~~

June 30, 2022

Gross and Net


Amounts of

Gross Amounts Not Offset


Assets Presented

in the Statement of


in the Statement

Financial Condition


of Financial

Financial

Cash Collateral


Condition

Instruments (a)

Received

Net Amount
Assets

Freestanding Derivatives    $ 181,875    $ 73,799    $ 103,923    $ 4,153

June 30, 2022

Gross and Net


Amounts of


Liabilities

Gross Amounts Not Offset


Presented in the

in the Statement of


Statement of

Financial Condition


Financial

Financial

Cash Collateral


Condition

Instruments (a)

Pledged

Net Amount
Liabilities

Freestanding Derivatives    $ 59,602    $ 53,834    $ 2,239    $ 3,529
Repurchase Agreements    152,529    152,529    —    —

   $ 212,131    $ 206,363    $ 2,239    $ 3,529

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

December 31, 2021

Gross and Net


Amounts of

Gross Amounts Not Offset


Assets Presented

in the Statement of


in the Statement

Financial Condition


of Financial

Financial

Cash Collateral


Condition

Instruments (a)

Received

Net Amount
Assets

Freestanding Derivatives    $ 146,061    $ 137,265    $ 41    $ 8,755

December 31, 2021

Gross and Net


Amounts of


Liabilities

Gross Amounts Not Offset


Presented in the

in the Statement of


Statement of

Financial Condition


Financial

Financial

Cash Collateral


Condition

Instruments (a)

Pledged

Net Amount
Liabilities

Freestanding Derivatives    $ 147,666    $ 118,552    $ 1,347    $ 27,767
Repurchase Agreements    57,980    57,980    —    —

   $ 205,646    $ 176,532    $ 1,347    $ 27,767

(a)	Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Repurchase Agreements are presented separately in the Condensed Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Condensed Consolidated Statements of Financial Condition. The following table presents the components of Other Assets:

June 30,

December 31,


2022

2021

Furniture, Equipment and Leasehold Improvements, Net    $ 316,389    $ 244,608
Prepaid Expenses    183,518    92,359
Freestanding Derivatives    152,653    145,401
Other    5,738    10,568

   $         658,298    $         492,936


	June 30,			December 31,
	2023			2022
Furniture, Equipment and Leasehold Improvements	$	850,814		$	748,334
Less: Accumulated Depreciation		(355,673	)		(336,621	)

Furniture, Equipment and Leasehold Improvements, Net		495,141			411,713
Prepaid Expenses		201,700			165,079
Freestanding Derivatives		186,063			202,677
Other		22,550			20,989

	$	905,454		$	800,458

Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Notional Pooling Arrangements

Blackstone has notional cash pooling arrangements with financial institutions for cash management purposes. These arrangements allow for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of June 30, ~~2022,~~2023, the aggregate cash balance on deposit relating to the cash pooling arrangements wa

~~s $1.3 billion,~~was $869.4 million, which was offset and reported net of the accompanying overdraft of ~~$1.3~~

~~billion.~~$869.3 million.

~~12. Borrowings~~

~~On June 1, 2022, Blackstone~~

~~through its indirect subsidiary Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), issued~~

€

500 million aggregate principal amount of senior notes due June 1, 2034 (the “2034 Notes”). The 2034 Notes have an interest rate of 3.500% per annum accruing from June 1, 2022. Interest on the 2034 Notes is payable annually in arrears on June 1 of each year commencing on June 1, 2023.

All of Blackstone’s outstanding senior notes as of June 30, 2022 are unsecured and unsubordinated obligations of the Issuer that are fully and unconditionally guaranteed by Blackstone Inc. and its indirect subsidiaries, Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to senior note issuances have been capitalized and are amortized over the life of each respective note.

~~On June 3, 2022, Blackstone, through the Issuer, entered into an amended and restate~~

d $4.1 billion revolving credit facility with Citibank, N.A., as administrative agent, and the lenders party thereto. The amendment and restatement, among other things, increased the amount of available borrowings and extended the maturity

~~date~~

~~from November 24, 2025 to June 3, 2027.~~

4344

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

12. Borrowings

The following table presents ~~the general characteristics of~~ each of Blackstone’s ~~notes~~borrowings as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, as well as their carrying value and fair value. The ~~notes~~borrowings are included in Loans Payable within the Condensed Consolidated Statements of Financial Condition. Each of the ~~notes~~Senior Notes were issued at a discount through Blackstone’s indirect subsidiary, Blackstone Holdings Finance Co. L.L.C. The Senior Notes accrue interest from the issue date thereof and pay interest in arrears on a semi-annual basis or annual basis. The Secured Borrowings were issued at par, accrue interest from the issue date thereof and pay interest in arrears on a quarterly basis. CLO Notes Payable pay interest in arrears on a quarterly basis.

June 30, 2022


December 31, 2021


Carrying


Fair


Carrying


Fair

Senior Notes

Value


Value (a)


Value


Value (a)

4.750
%, Due 2/15/2023

$ 399,202    $ 399,760    $ 398,581    $ 415,880
2.000
%, Due 5/19/2025
   311,967    310,368    338,275    362,078
1.000
%, Due 10/5/2026
   624,380    582,051    675,867    700,892
3.150
%, Due 10/2/2027
   297,918    280,830    297,738    317,610
1.625
%, Due 8/5/2028
   643,987    547,105    643,251    629,265
1.500
%, Due 4/10/2029
   625,225    551,416    678,085    720,062
2.500
%, Due 1/10/2030
   492,130    432,050    491,662    507,350
1.600
%, Due 3/30/2031
   495,764    390,750    495,541    467,750
2.000
%, Due 1/30/2032
   787,491    636,321    786,690    767,920
2.550
%, Due 3/30/2032
   494,980    417,600    —    —
3.500
%, Due 6/1/2034
   512,158    494,373    —    —
6.250
%, Due 8/15/2042
   239,043    272,725    238,914    361,775
5.000
%, Due 6/15/2044
   489,573    487,800    489,446    648,500
4.450
%, Due 7/15/2045
   344,480    317,730    344,412    426,195
4.000
%, Due 10/2/2047
   290,831    253,170    290,730    347,370
3.500
%, Due 9/10/2049
   392,174    311,000    392,089    431,240
2.800
%, Due 9/30/2050
   393,888    271,960    393,818    382,880
2.850
%, Due 8/5/2051
   543,085    375,760    542,963    531,355
3.200
%, Due 1/30/2052
   986,998    722,800    —    —










$ 9,365,274    $ 8,055,569    $ 7,498,062    $ 8,018,122


	June 30, 2023				December 31, 2022
	Carrying		Fair		Carrying		Fair
Description	Value		Value		Value		Value
Blackstone Operating Borrowings
Senior Notes (a)
4.750%, Due 2/15/2023	$	—	$	—	$	399,838	$	399,776
2.000%, Due 5/19/2025		331,763		308,845		325,292		305,754
1.000%, Due 10/5/2026		655,736		580,714		642,968		568,525
3.150%, Due 10/2/2027		298,287		272,298		298,101		271,284
5.900%, Due 11/3/2027		594,888		608,640		594,381		606,450
1.625%, Due 8/5/2028		644,929		538,610		644,456		530,933
1.500%, Due 4/10/2029		658,458		551,561		645,819		532,043
2.500%, Due 1/10/2030		493,085		413,485		492,604		405,965
1.600%, Due 3/30/2031		496,217		372,605		495,990		365,380
2.000%, Due 1/30/2032		788,679		597,488		788,082		589,407
2.550%, Due 3/30/2032		495,437		393,480		495,207		390,370
6.200%, Due 4/22/2033		891,583		917,703		891,277		907,965
3.500%, Due 6/1/2034		514,883		473,587		504,695		452,934
6.250%, Due 8/15/2042		239,314		245,693		239,176		251,480
5.000%, Due 6/15/2044		489,838		442,719		489,704		441,355
4.450%, Due 7/15/2045		344,619		279,629		344,549		287,242
4.000%, Due 10/2/2047		291,041		221,634		290,935		227,946
3.500%, Due 9/10/2049		392,347		266,828		392,259		275,588
2.800%, Due 9/30/2050		394,030		229,528		393,958		237,552
2.850%, Due 8/5/2051		543,239		319,418		543,162		323,527
3.200%, Due 1/30/2052		987,265		637,700		987,131		646,880

		10,545,638		8,672,165		10,899,584		9,018,356
Other (b)
Secured Borrowing, Due 10/27/2033		19,983		19,983		—		—
Secured Borrowing, Due 1/29/2035		20,000		20,000		—		—

		10,585,621		8,712,148		10,899,584		9,018,356

Borrowings of Consolidated Blackstone Funds
Blackstone Fund Facilities (c)		1,450,000		1,450,000		1,450,000		1,450,000
CLO Notes Payable (d)		264,234		264,234		—		—

		1,714,234		1,714,234		1,450,000		1,450,000

	$	12,299,855	$	10,426,382	$	12,349,584	$	10,468,356

(a)	Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

(b)	The Secured Borrowing, Due 10/27/2033 has an interest rate of 7.31% and the Secured Borrowing, Due 1/29/2035 has an interest rate of 3.72% . Principal on these borrowings will be paid over the term with repayment amounts dependent on the performance of the underlying assets securing each borrowing.

(c)

Blackstone Fund Facilities represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Such borrowings have varying maturities and may be rolled over until the disposition or refinancing event. Borrowings bear interest at spreads to market rates or at stated fixed rates that can vary over the borrowing term. Interest may be subject to the performance of the assets within the fund and therefore, the stated interest rate and effective interest rate may differ.

(d)	CLO Notes Payable are due 10/15/2029 and have an effective interest rate of 7.44% as of June 30, 2023.

~~Scheduled~~

cheduled principal payments for borrowings as of June 30, ~~2022~~2023 were as follows:


	Total		Blackstone		Borrowings of
	Borrowings		Operating Borrowings		Consolidated Blackstone Funds		Total Borrowings
2022	$	—
2023		400,000	$	51	$	—	$	51
2024		—		—		—		—
2025		314,520		335,493		—		335,493
2026		629,040		660,587		—		660,587
2027				911,572		—		911,572
Thereafter		8,153,240		8,814,080		1,751,546		10,565,626

	$	9,496,800	$	10,721,783	$	1,751,546	$	12,473,329

13. Income Taxes

Blackstone’s net deferred tax assets relate primarily to basis differences resulting from a

step-up

in tax basis of certain assets at the time of its conversion to a corporation, as well as ongoing exchanges of units for common shares by founders and partners. As of June 30, ~~2022,~~2023, Blackstone had no material valuation allowance recorded against deferred tax assets.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Blackstone is subject to examination by the U.S. Internal Revenue Service and other taxing authorities where Blackstone has significant business operations such as the United Kingdom, and various state and local jurisdictions such as New York State and New York City. The tax years under examination vary by jurisdiction. Blackstone does not expect the completion of these audits to have a material impact on its financial condition, but it may be material to operating results for a particular period, depending on the operating results for that period. Blackstone believes the liability established for unrecognized tax benefits is adequate in relation to the potential for additional assessments. It is reasonably possible that changes in the balance of unrecognized tax benefits may occur within the next 12 months; however, it is not possible to reasonably estimate the expected change to the total amount of unrecognized tax benefits and the impact on Blackstone’s effective tax rate over the next 12 months.

As of June 30, ~~2022,~~2023, the following are the major filing jurisdictions and ~~the~~their respective earliest open tax ~~years that remain~~period subject to ~~examination~~examination:


Jurisdiction	Year
Federal		2019
New York City		2009
New York State		2016
United Kingdom		2011

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are ~~U.S. federal 2018, New York State 2015, New York City 2009,~~in Thousands, Except Share and ~~the United Kingdom 2011.~~Per Share Data, Except Where Noted)

14. Earnings Per Share and Stockholders’ Equity

Earnings Per Share

Basic and diluted net income per share of common stock for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 was calculated as follows:


	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2023		2022			2023		2022
Net Income (Loss) for Per Share of Common Stock Calculations
Net Income (Loss) Attributable to Blackstone Inc., Basic and Diluted	$	601,274	$	(29,393	)	$	687,086	$	1,187,481


Shares/Units Outstanding
Weighted-Average Shares of Common Stock Outstanding, Basic		758,479,943		707,382,293			752,306,729		738,752,489
Weighted-Average Shares of Unvested Deferred Restricted Common Stock		68,305		—			323,656		388,373

Weighted-Average Shares of Common Stock Outstanding, Diluted		758,548,248		707,382,293			752,630,385		739,140,862


Net Income (Loss) Per Share of Common Stock
Basic	$	0.79	$	(0.04	)	$	0.91	$	1.61

Diluted	$	0.79	$	(0.04	)	$	0.91	$	1.61

Dividends Declared Per Share of Common Stock (a)	$	0.82	$	1.32		$	1.73	$	2.77

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Net Income (Loss) for Per Share of Common Stock Calculations

Net Income (Loss) Attributable to Blackstone Inc., Basic and Diluted    $ (29,393 ) $ 1,309,152    $ 1,187,481    $ 3,057,024


Shares/Units Outstanding

Weighted-Average Shares of Common Stock Outstanding, Basic    707,382,293 721,141,954    738,752,489    715,121,029
Weighted-Average Shares of Unvested Deferred Restricted Common Stock    — 123,226    388,373    501,179

Weighted-Average Shares of Common Stock Outstanding, Diluted    707,382,293 721,265,180    739,140,862    715,622,208


Net Income (Loss) Per Share of Common Stock

Basic    $ (0.04 ) $ 1.82    $ 1.61    $ 4.27

Diluted    $ (0.04 ) $ 1.82    $ 1.61    $ 4.27

Dividends Declared Per Share of Common Stock (a)
   $ 1.32 $ 0.82    $ 2.77    $ 1.78

(a)	Dividends declared reflects the calendar date of the declaration for each distribution.

In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on Net Income Per Share of Common Stock, Blackstone considered that net income available to holders of shares of common stock would increase due to the elimination of

non-controlling

interests in Blackstone Holdings, inclusive of any tax impact. The hypothetical conversion may be dilutive to the extent there is activity at the Blackstone Inc. level that has not previously been attributed to the

non-controlling

interests or if there is a change in tax rate as a result of a hypothetical conversion.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

The following table summarizes the anti-dilutive securities for the three and six months ended June 30, ~~2022~~2023 and ~~2021:~~

2022:


	Three Months Ended				Six Months Ended				Three Months Ended				Six Months Ended
	June 30,				June 30,				June 30,				June 30,
	2022		2021		2022		2021		2023		2022		2023		2022
Weighted-Average Shares of Unvested Deferred Restricted Common Stock		35,883,883		—		—		—		—		35,883,883		—		—
Weighted-Average Blackstone Holdings Partnership Units		466,817,529		488,569,471		467,303,495		490,857,143		461,569,524		466,817,529		462,255,884		467,303,495

~~Stockholders’ Equity~~Table of Contents

~~In connection with the share reclassification, effective February 26, 2021, the Certificate of Incorporation of~~

Blackstone ~~was amended~~Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and restated to: (a) rename the Class A common stock as “common stock,” which has the same rights and powers (including, without limitation, with respect to voting) that Blackstone’s Class A common stock formerly had, (b) reclassify the “Class B common stock” into a new “Series I preferred stock,” which has the same rights and powers that the Class B common stock formerly had, and (c) reclassify the Class C common stock into a new “Series II preferred stock,” which has the same rights and powers that the Class C common stock formerly had. In connection with such share reclassification, Blackstone authorized 10 billion shares of preferred stock with a par value of $0.00001, of which (a) 999,999,000 shares are designated as Series I preferred stock and (b) 1,000 shares are designated as Series II preferred stock. The remaining 9 billion shares may be designated from time to time in accordance with Blackstone’s certificate of incorporation. There was 1 share of Series I preferred stock and 1 share of Series II preferred stock issued and outstanding as of June 30, 2022.Per Share Data, Except Where Noted)

Under Blackstone’s certificate of incorporation and Delaware law, holders of Blackstone’s common stock are entitled to vote, together with holders of Blackstone’s Series I preferred stock, voting as a single class, on a number of significant matters, including certain sales, exchanges or other dispositions of all or substantially all of Blackstone’s assets, a merger, consolidation or other business combination, the removal of the Series II Preferred Stockholder and forced transfer by the Series II Preferred Stockholder of its shares of Series II preferred stock and the designation of a successor Series II Preferred Stockholder. The Series II Preferred Stockholder elects Blackstone’s directors. Holders of Blackstone’s Series I preferred stock and Series II preferred stock are not entitled to dividends from Blackstone, or receipt of any of Blackstone’s assets in the event of any dissolution, liquidation or winding up. Blackstone Partners L.L.C. is the sole holder of the Series I preferred stock and Blackstone Group Management L.L.C. is the sole holder of the Series II preferred stock.

Share Repurchase Program

On December 7, 2021, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership Units. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.

During the three and six months ended June 30, 2023, Blackstone repurchased 1.0 million and 2.0 million shares of common stock at a total cost of $86.0 million and $176.1 million, respectively. During the three and six months ended June 30, 2022, Blackstone repurchased 1.9 million shares of common stock at a total cost of $195.3 million. ~~During the three and six months ended June 30, 2021, Blackstone repurchased 3.2 million shares of common stock at a total cost of $289.1 million.~~ As of June 30, ~~2022,~~2023, the amount remaining available for repurchases under the program was ~~$1.3 billion.~~

~~Table of Contents~~

$931.9 million.

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Shares Eligible for Dividends and Distributions

As of June 30, ~~2022,~~2023, the total shares of common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and distributions were as follows:


	Shares/Units
Common Stock Outstanding		~~706,476,877~~713,551,859
Unvested Participating Common Stock		~~35,710,961~~44,596,669

Total Participating Common Stock		~~742,187,838~~758,148,528
Participating Blackstone Holdings Partnership Units		~~466,568,377~~461,135,682

		~~1,208,756,215~~1,219,284,210

15. Equity-Based Compensation

Blackstone has granted equity-based compensation awards to Blackstone’s senior managing directors,

non-partner

professionals,

non-professionals

and selected external advisers under Blackstone’s Amended and Restated 2007 Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of options, share appreciation rights or other share-based awards (shares, restricted shares, restricted shares of common stock, deferred restricted shares of common stock, phantom restricted shares of common stock or other share-based awards based in whole or in part on the fair value of shares of common stock or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1, ~~2022,~~2023, Blackstone had the ability to grant ~~171,096,250~~172,161,191 shares under the Equity Plan.

For the three and six months ended June 30, 2023, Blackstone recorded compensation expense of $260.4 million and $537.8 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $43.8 million and $83.1 million, respectively. For the three and six months ended June 30, 2022, Blackstone recorded compensation expense of $210.8 million and $429.9 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $12.2 million and $72.9 million, respectively. ~~For the three and six months ended June 30, 2021, Blackstone recorded compensation expense of~~

~~141.6 million and $305.4 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $18.8 million and $40.7 million, respectively.~~

As of June 30, ~~2022,~~2023, there was ~~$2.1~~$2.4 billion of estimated unrecognized compensation expense related to unvested awards, including compensation with performance conditions where it is probable that the performance condition will be met. This cost is expected to be recognized over a weighted-average period of ~~3.4~~3.1 years.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Total vested and unvested outstanding shares, including common stock, Blackstone Holdings Partnership Units and deferred restricted shares of common stock, were ~~1,208,883,091~~1,219,294,017 as of June 30, ~~2022.~~2023. Total outstanding phantom shares were ~~62,405~~113,882 as of June 30, ~~2022.~~

~~Table of Contents~~

~~Blackstone Inc.~~2023.

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

A summary of the status of Blackstone’s unvested equity-based awards as of June 30, ~~2022~~2023 and of changes during the period January 1, ~~2022~~2023 through June 30, ~~2022~~2023 is presented below:


	Blackstone Holdings					Blackstone Inc.
						Equity Settled Awards					Cash Settled Awards
				Weighted-					Weighted-					Weighted-
				Average		Deferred			Average					Average
	Partnership			Grant Date		Restricted Shares			Grant Date		Phantom			Grant Date
Unvested Shares/Units	Units			Fair Value		of Common Stock			Fair Value		Shares			Fair Value
Balance, December 31, 2022		11,029,996		$	38.02		31,001,563		$	82.94		48,886		$	85.04
Granted		—			—		15,457,565			85.14		61,534			91.79
Vested		(1,355,119	)		35.86		(3,291,391	)		81.28		(3,461	)		89.78
Forfeited		(46,823	)		42.53		(452,129	)		88.44		—			—

Balance, June 30, 2023		9,628,054		$	38.34		42,715,608		$	83.82		106,959		$	90.52

Blackstone Holdings

Blackstone Inc.

Equity Settled Awards

Cash Settled Awards

Weighted-

Weighted-

Weighted-

Average

Deferred

Average

Average

Partnership

Grant Date

Restricted Shares

Grant Date

Phantom

Grant Date
Unvested Shares/Units

Units

Fair Value

of Common Stock

Fair Value

Shares

Fair Value
Balance, December 31, 2021    17,344,328 $ 37.37    26,537,813 $ 58.34    73,581 $ 137.65
Granted    — —    11,210,550 127.77    28,037 126.03
Vested    (1,262,132 ) 34.82    (2,818,889 ) 70.94    (1,980 ) 130.22
Forfeited    (116,197 ) 38.24    (656,754 ) 71.25    (46,412 ) 130.22

Balance, June 30, 2022    15,965,999 $ 37.57    34,272,720 $ 79.89    53,226 $ 121.71

Shares/Units Expected to Vest

The following unvested shares and units, after expected forfeitures, as of June 30, ~~2022,~~2023, are expected to vest:

Weighted-

Average

Service Period

Shares/Units

in Years
Blackstone Holdings Partnership Units    15,473,779    1.6
Deferred Restricted Shares of Common Stock    29,650,267    3.3

Total Equity-Based Awards            45,124,046    2.7

Phantom Shares    41,966    3.4

~~16. Related Party Transactions~~

~~Affiliate Receivables and Payables~~

~~Due from Affiliates and Due to Affiliates consisted of the following:~~

June 30,

December 31,

2022

2021
Due from Affiliates

Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from
Non-Consolidated
Entities and Portfolio Companies
   $ 3,053,633    $ 3,519,945
Due from Certain
Non-Controlling
Interest Holders and Blackstone Employees
   795,987    1,099,899
Accrual for Potential Clawback of Previously Distributed Performance Allocations    42,338    37,023

   $ 3,891,958    $ 4,656,867


			Weighted-
			Average
			Service Period
	Shares/Units		in Years
Blackstone Holdings Partnership Units		9,670,998	0.8
Deferred Restricted Shares of Common Stock		37,435,792	3.6

Total Equity-Based Awards		47,106,790	3.0

Phantom Shares		88,674	4.5

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

16. Related Party Transactions

Affiliate Receivables and Payables

June 30,

December 31,

2022

2021
Due to Affiliates

Due to Certain
Non-Controlling
Interest Holders in Connection with the Tax Receivable Agreements
   $ 1,561,842    $ 1,558,393
Due to
Non-Consolidated
Entities
   185,689    181,341
Due to Certain
Non-Controlling
Interest Holders and Blackstone Employees
   151,183    77,664
Accrual for Potential Repayment of Previously Received Performance Allocations    102,677    88,700

   $ 2,001,391    $ 1,906,098

Due from Affiliates and Due to Affiliates consisted of the following:


	June 30,		December 31,
	2023		2022
Due from Affiliates
Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities and Portfolio Companies	$	3,445,194	$	3,344,813
Due from Certain Non-Controlling Interest Holders and Blackstone Employees		778,811		741,319
Accrual for Potential Clawback of Previously Distributed Performance Allocations		70,432		60,575

	$	4,294,437	$	4,146,707


	June 30,		December 31,
	2023		2022
Due to Affiliates
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements	$	1,591,177	$	1,602,933
Due to Non-Consolidated Entities		191,458		157,982
Due to Certain Non-Controlling Interest Holders and Blackstone Employees		111,548		198,875
Accrual for Potential Repayment of Previously Received Performance Allocations		198,654		158,691

	$	2,092,837	$	2,118,481

Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties

The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or incentive fee arrangements. As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, such investments aggregated ~~$1.6~~$1.7 billion and $1.6 billion, respectively. Their share of the Net Income Attributable to Redeemable

Non-Controlling

and

Non-Controlling

Interests in Consolidated Entities aggregated to ~~$(74.8)~~$32.2 million and ~~$116.2~~

(74.8) million for the three months ended June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$(10.4)~~$54.4 million and ~~$233.6~~$(10.4) million for the six months ended June 30, 2023 and 2022, ~~and 2021,~~ respectively.

~~Loans to Affiliates~~

Loans to affiliates consist of interest bearing advances to certain Blackstone individuals to finance their investments in certain Blackstone Funds. These loans earn interest at Blackstone’s cost of borrowing and such interest totaled $1.4 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, and $3.8 million and $3.3 million for the six months ended June 30, 2022 and 2021, respectively.

Contingent Repayment Guarantee

Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and

non-controlling

interest holders that would need to be repaid to the Blackstone Funds if the carry funds were to be liquidated based on the fair value of their underlying investments as of June 30, ~~2022.~~2023. See Note 17. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback).”

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Tax Receivable Agreements

Blackstone used a portion of the proceeds from the IPO and other sales of shares to purchase interests in the predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for shares of Blackstone common stock on a

one-for-one

basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone would otherwise be required to pay in the future.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

Blackstone has entered into tax receivable agreements with each of the predecessor owners and additional tax receivable agreements have been executed, and will continue to be executed, with ~~newly-admitted~~ senior managing directors and others who acquire Blackstone Holdings Partnership Units. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements.

Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $1.6 billion over the next 15 years. The

after-tax

net present value of these estimated payments totals ~~$438.4~~$484.3 million assuming a 15% discount rate and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not conditioned upon continued ownership of Blackstone equity interests by the

pre-IPO

owners and the others mentioned above.

Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to shares of Blackstone common stock, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Acquisition of Ownership Interests from

Non-Controlling

Interest Holders in the Supplemental Disclosure of

Non-Cash

Investing and Financing Activities in the Condensed Consolidated Statements of Cash Flows.

Other

Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis.

Additionally, please see Note 17. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees.

~~17. Commitments and Contingencies~~

~~Commitments~~

~~Investment Commitments~~

Blackstone had $5.7 billion of investment commitments as of June 30, 2022 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The consolidated Blackstone Funds had signed investment commitments of $206.8 million as of June 30, 2022, which includes $68.4 million of signed investment

~~commitments for fund investments in the process of closing.~~

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

17. Commitments and Contingencies

Commitments

Investment Commitments

Blackstone had $4.6 billion of investment commitments as of June 30, 2023 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The consolidated Blackstone Funds had signed investment commitments of $97.1 million as of June 30, 2023, which includes $45.0 million of signed investment commitments for portfolio company acquisitions in the process of closing.

Contingencies

Guarantees

Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the ongoing business activities and/or acquisitions of their Portfolio Companies. There is no direct recourse to Blackstone to fulfill such obligations. To the extent that underlying funds are required to fulfill guarantee obligations, Blackstone’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated real estate funds was ~~$36.0~~$14.6 million as of June 30, ~~2022.~~2023.

The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to The Blackstone Group International Partners LLP. The amount guaranteed as of June 30, ~~2022~~2023 was ~~$86.0~~$78.1 million.

Strategic Ventures

In December 2022 and January 2023, Blackstone entered into

long-term

strategic ventures with the Regents of the University of California (“UC Investments”), an institutional investor that subscribed for $4.5 billion of BREIT Class I shares during the three months ended March 31, 2023. The strategic ventures between Blackstone and UC Investments provide a waterfall structure with UC Investments receiving an 11.25% target annualized net return on its $4.5 billion investment in BREIT shares and upside from its investment. This target return, while not guaranteed, is supported by a pledge by Blackstone of $1.1 billion of its current holdings in BREIT, including any appreciation or dividends received by Blackstone in respect thereof. Pursuant to the strategic venture, Blackstone is entitled to receive an incremental 5% cash payment from UC Investments on any returns received in excess of the target return. An asset or liability is recognized based on fair value with the maximum potential future obligation capped at the fair value of the assets pledged by Blackstone in connection with the above arrangements. As of June 30, 2023, the fair value of the assets pledged was $1.1 billion and the total liability recognized was $221.5 million.

Litigation

Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against Blackstone.

Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, Blackstone does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows.

Table of Contents

Blackstone ~~continues~~Inc.

Notes to ~~believe that the following suits against Blackstone~~Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are ~~totally without merit~~in Thousands, Except Share and ~~intends to defend them vigorously.~~Per Share Data, Except Where Noted)

In December 2017, eight pension plan members of the Kentucky Retirement System (“KRS”) filed a derivative lawsuit on behalf of KRS in the Franklin County Circuit Court of the Commonwealth of Kentucky (the “Mayberry Action”). The Mayberry Action alleged various breaches of fiduciary duty and other violations of Kentucky state law in connection with KRS’s investment in three hedge funds of funds, including a fund managed by Blackstone Alternative Asset Management L.P. (“BLP”). The suit named more than 30 defendants, including, among others, The Blackstone Group L.P. (now Blackstone Inc.); BLP; Stephen A. Schwarzman, as Chairman and CEO of Blackstone; and J. Tomilson Hill, as

then-CEO

of BLP (collectively, the “Blackstone Defendants”). In July 2020, the Kentucky Supreme Court directed the Circuit Court to dismiss the action due to the plaintiffs’ lack of standing.

Over the objection of the Blackstone Defendants and others, in December 2020, the Circuit Court permitted the Attorney General of the Commonwealth of Kentucky (the “AG”) to intervene in the Mayberry Action. ~~Motions to dismiss are currently pending in~~In December 2022, the Mayberry Action ~~and discovery has begun. The~~was stayed pending resolution of an interlocutory appeal in which the Blackstone Defendants and others ~~are also pursuing an interlocutory appeal asserting~~argued that the Circuit Court did not have jurisdiction to continue the Mayberry Action after the ruling of the Kentucky Supreme Court. On April 14, 2023, the Kentucky Court of Appeals agreed with the defendants’ position, holding that the Circuit Court exceeded its authority in permitting the AG’s intervention despite the Kentucky Supreme Court’s instruction to dismiss. Accordingly, the Kentucky Court of Appeals vacated all orders entered by the Circuit Court other than the order dismissing the original derivative complaint in the Mayberry Action. On July 6, 2023, the AG filed a motion for discretionary review of the Court of Appeals’ decision by the Kentucky Supreme Court, which is pending. Additionally, around the time it moved to intervene in 2020, the AG separately filed, but did not pursue, an additional

back-up

complaint asserting substantially identical claims against largely the same defendants as the Mayberry Action. Following the Court of Appeals’ decision in the Mayberry Action, the AG is pursuing this later-filed action. While BLP has strong arguments that the Mayberry Action is time-barred, we believe that the later-filed action —initiated some nine years after BLP was engaged by KRS — is even more clearly barred by the statute of limitations.

In August 2022, KRS was ordered to disclose, and in September 2022, did disclose, a report prepared in 2021 by a law firm retained by KRS to conduct an investigation into the investment activities underlying the lawsuit. According to the report, the investigators “did not find any violations of fiduciary duty or illegal activity by [BLP]” related to KRS’s due diligence and retention of BLP or KRS’s continued investment with BLP. The report quotes contemporaneous communications by KRS staff during the period of the investment recognizing that BLP was exceeding KRS’s returns benchmark, that BLP was providing KRS with “far fewer negative months than any liquid market comparable,” and that BLP “[h]as killed it.”

In January 2021, certain former plaintiffs in the Mayberry Action filed a separate action (“Taylor I”), against the Blackstone Defendants and other defendants named in the Mayberry Action, asserting allegations substantially similar to those made in the Mayberry Action, and in July 2021 they amended their complaint to add class action allegations. Defendants removed Taylor I to the U.S. District Court for the Eastern District of Kentucky, and in March 2022, the District Court stayed Taylor I pending the resolution of the AG’s suit in the Mayberry Action.

~~Table of Contents~~

~~Blackstone Inc.~~

~~Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued~~

~~(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)~~

In August 2021, a group of KRS members—including those that filed Taylor I—filed a new action in Franklin County Circuit Court (“Taylor II”), against the Blackstone Defendants, other defendants named in the Mayberry Action, and other KRS officials. The filed complaint is substantially similar to that filed in Taylor I and the Mayberry Action. Motions to dismiss are pending. The Blackstone Defendants believe they have strong defenses on statute of limitations grounds, among others, to both Taylor I and Taylor II.

In May 2022, the presiding judge recused himself from the Mayberry Action and Taylor II and the cases were reassigned to another judge in the Franklin County Circuit Court.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

In April 2021, the AG filed an action (the “Declaratory Judgment Action”), against BLP and the other fund manager defendants from the Mayberry Action in Franklin County Circuit Court. The action sought to have certain provisions in the subscription agreements between KRS and the fund managers declared to be in violation of the Kentucky Constitution. In March 2022, the Circuit Court granted summary judgment to the AG. BLP’s appeal is currently pending.

Blackstone continues to believe that the preceding lawsuits against Blackstone are totally without merit and intends to defend them vigorously.

In July 2021, BLP filed a breach of contract action against defendants affiliated with KRS alleging that the Mayberry Action and the Declaratory Judgment Action breach the parties’ subscription agreements governing KRS’s investment with BLP. The action seeks damages, including legal fees and expenses incurred in defending against the above actions. In April 2022, the Circuit Court dismissed BLP’s complaint without prejudice to refiling, on the grounds that the action was not yet ripe for adjudication. On May 19, 2023, the Court of Appeals affirmed the Circuit Court’s dismissal, without prejudice, of BLP’s ~~appeal is currently pending.~~complaint on ripeness

grounds

In October 2022, as part of a sweep of private equity and other investment advisory firms, the SEC sent us a request for information relating to the retention of certain types of electronic business communications, including text messages, that may be required to be preserved under certain SEC rules. We are cooperating with the SEC’s inquiry.

Contingent Obligations (Clawback)

Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. The lives of the carry funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through 2032. Further extensions of such terms may be implemented under given circumstances.

For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the carry funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Performance Allocation distributions with respect to such fund’s realized investments.

The following table presents the clawback obligations by segment:


	June 30, 2023							December 31, 2022
			Current and							Current and
	Blackstone		Former					Blackstone		Former
Segment	Holdings		Personnel (a)			Total (b)		Holdings		Personnel (a)		Total (b)
Real Estate	$	82,324	$	53,012		$	135,336	$	78,644	$	51,771	$	130,415
Private Equity		28,558		17,168			45,726		19,279		8,569		27,848
Credit & Insurance		187		267			454		223		205		428
Hedge Fund Solutions		18,040		(902	)		17,138		—		—		—

	$	129,109	$	69,545		$	198,654	$	98,146	$	60,545	$	158,691

June 30, 2022

December 31, 2021

Current and

Current and


Blackstone

Former

Blackstone

Former

Segment

Holdings

Personnel (a)

Total (b)

Holdings

Personnel (a)

Total (b)
Real Estate    $ 36,220    $ 21,200    $ 57,420    $ 34,080    $ 20,186    $ 54,266
Private Equity    11,591    6,421    18,012    5,158    2,196    7,354
Credit & Insurance    12,559    14,686    27,245    12,439    14,641    27,080

   $ 60,370    $ 42,307    $ 102,677    $ 51,677    $ 37,023    $ 88,700

(a)	The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis.

(b)	Total is a component of Due to Affiliates. See Note 16. “Related Party Transactions — Affiliate Receivables and Payables — Due to Affiliates.”

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

During the six months ended June 30, 2023, the Blackstone general partners paid an interim cash clawback obligation of $6.5 million, primarily related to a Real Estate segment fund, of which $4.2 million was paid by Blackstone Holdings and $2.3 million by current and former Blackstone personnel.

For Private Equity, Real Estate, and certain Credit & Insurance Funds, a portion of the Performance Allocations paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Condensed Consolidated Financial Statements of Blackstone, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At June 30, ~~202~~

~~2, $1.2~~2023, $1.1 billion was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required.

In the Credit & Insurance segment, payment of Performance Allocations to Blackstone by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation.

If, at June 30, ~~2022,~~2023, all of the investments held by Blackstone’s carry funds were deemed worthless, a possibility that management views as remote, the amount of Performance Allocations subject to potential clawback would be ~~$6.2~~$6.4 billion, on an

after-tax

basis where applicable, of which Blackstone Holdings is potentially liable for ~~$5.8~~$6.0 billion if current and former Blackstone personnel default on their share of the liability, a possibility that management also views as remote.

18. Segment Reporting

~~18.~~

~~Segment Reporting~~

Blackstone conducts its alternative asset management businesses through four segments:

Real Estate – Blackstone’s Real Estate segment primarily comprises its management of opportunistic real estate funds, Core+ real estate funds, ~~high-yield~~and real estate debt ~~funds~~ and ~~liquid real estate debt funds.~~credit strategies.

Private Equity – Blackstone’s Private Equity segment includes its management of flagship corporate private equity funds, sector and geographically-focused corporate private equity funds, core private equity funds, an opportunistic investment platform, a secondary fund of funds business, infrastructure-focused funds, a life sciences investment platform, a growth equity investment platform, a multi-asset investment program for eligible high net worth investors and a capital markets services business.

Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of Blackstone Credit, which is organized into two overarching strategies: private credit (which includes mezzanine and direct lending funds, private placement strategies, stressed/distressed strategies and energy strategies) and liquid credit (which consists of CLOs, closed-ended funds, open-ended funds and separately managed accounts). In addition, the segment includes an insurer-focused platform, an asset-based finance platform and publicly traded master limited partnership investment platform.

Hedge Fund Solutions – The largest component of Blackstone’s Hedge Fund Solutions segment is Blackstone Alternative Asset Management, which manages a broad range of commingled and customized hedge fund of fund solutions. The segment also includes a GP Stakes business and investment platforms that invest directly, as well as investment platforms that seed new hedge fund businesses and create alternative solutions through daily liquidity products.

Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of Blackstone Credit, which is organized into two overarching strategies: private credit (which includes mezzanine and direct lending funds, private placement strategies and energy strategies, including our sustainable resources platform) and liquid credit (which consists of CLOs, closed-ended funds, open-ended funds and separately managed accounts). In addition, the segment includes an insurer-focused platform, an asset-based finance platform and publicly traded master limited partnership investment platform.

These business segments are differentiated by their various investment strategies. Each of the segments primarily earns its income from management fees and investment returns on assets under management.

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments.

Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates

non-controlling

ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related Charges. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.

For segment reporting purposes, Segment Distributable Earnings is presented along with its major components, Fee Related Earnings and Net Realizations. Fee Related Earnings is used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance Revenues or Performance Compensation.

Segment Presentation

The following tables present the financial data for Blackstone’s

four segments for the three months ended June 30, ~~2022~~2023 and ~~2021:~~2022:


	Three Months Ended June 30, 2022															Three Months Ended June 30, 2023
	Real			Private			Hedge Fund			Credit &			Total			Real			Private			Credit &			Hedge Fund			Total
	Estate			Equity			Solutions			Insurance			Segments			Estate			Equity			Insurance			Solutions			Segments
Management and Advisory Fees, Net
Base Management Fees	$	611,751		$	433,459		$	145,077		$	306,589		$	1,496,876		$	709,977		$	443,012		$	335,308		$	132,312		$	1,620,609
Transaction, Advisory and Other Fees, Net		46,974			27,551			3,450			7,117			85,092			27,066			48,825			15,002			1,842			92,735
Management Fee Offsets		(689	)		(23,157	)		(40	)		(1,165	)		(25,051	)		(8,307	)		(766	)		(1,056	)		(29	)		(10,158	)

Total Management and Advisory Fees, Net		658,036			437,853			148,487			312,541			1,556,917			728,736			491,071			349,254			134,125			1,703,186
Fee Related Performance Revenues		265,507			—			—			81,086			346,593			131,299			—			135,439			—			266,738
Fee Related Compensation		(273,893	)		(152,622	)		(57,863	)		(137,035	)		(621,413	)		(199,006	)		(155,680	)		(168,234	)		(45,888	)		(568,808	)
Other Operating Expenses		(88,329	)		(83,233	)		(26,066	)		(63,882	)		(261,510	)		(71,949	)		(74,403	)		(81,375	)		(29,639	)		(257,366	)

Fee Related Earnings		561,321			201,998			64,558			192,710			1,020,587			589,080			260,988			235,084			58,598			1,143,750

Realized Performance Revenues		1,997,720			122,884			7,197			78,973			2,206,774			119,721			147,176			42,344			79,182			388,423
Realized Performance Compensation		(831,402	)		(57,380	)		(2,083	)		(36,109	)		(926,974	)		(69,593	)		(62,641	)		(17,571	)		(28,565	)		(178,370	)
Realized Principal Investment Income (Loss)		29,116			8,904			(1,530	)		7,019			43,509			(70	)		3,967			(19,356	)		7,998			(7,461	)

Total Net Realizations		1,195,434			74,408			3,584			49,883			1,323,309			50,058			88,502			5,417			58,615			202,592

Total Segment Distributable Earnings	$	1,756,755		$	276,406		$	68,142		$	242,593		$	2,343,896		$	639,138		$	349,490		$	240,501		$	117,213		$	1,346,342

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)


	Three Months Ended June 30, 2021															Three Months Ended June 30, 2022
	Real			Private			Hedge Fund			Credit &			Total			Real			Private			Credit &			Hedge Fund			Total
	Estate			Equity			Solutions			Insurance			Segments			Estate			Equity			Insurance			Solutions			Segments
Management and Advisory Fees, Net
Base Management Fees	$	453,664		$	364,606		$	155,244		$	166,537		$	1,140,051		$	611,751		$	433,459		$	306,589		$	145,077		$	1,496,876
Transaction, Advisory and Other Fees, Net		38,080			32,272			1,558			6,215			78,125			46,974			27,551			7,117			3,450			85,092
Management Fee Offsets		(493	)		(3,601	)		(203	)		(1,137	)		(5,434	)		(689	)		(23,157	)		(1,165	)		(40	)		(25,051	)

Total Management and Advisory Fees, Net		491,251			393,277			156,599			171,615			1,212,742			658,036			437,853			312,541			148,487			1,556,917
Fee Related Performance Revenues		33,776			—			—			15,113			48,889			265,507			—			81,086			—			346,593
Fee Related Compensation		(121,957	)		(136,767	)		(38,638	)		(78,023	)		(375,385	)		(273,893	)		(152,622	)		(137,035	)		(57,863	)		(621,413	)
Other Operating Expenses		(54,760	)		(61,041	)		(21,873	)		(44,504	)		(182,178	)		(88,329	)		(83,233	)		(63,882	)		(26,066	)		(261,510	)

Fee Related Earnings		348,310			195,469			96,088			64,201			704,068			561,321			201,998			192,710			64,558			1,020,587

Realized Performance Revenues		351,053			383,010			17,056			41,819			792,938			1,997,720			122,884			78,973			7,197			2,206,774
Realized Performance Compensation		(154,928	)		(159,375	)		(5,626	)		(18,342	)		(338,271	)		(831,402	)		(57,380	)		(36,109	)		(2,083	)		(926,974	)
Realized Principal Investment Income		28,129			27,796			2,125			5,082			63,132
Realized Principal Investment Income (Loss)																	29,116			8,904			7,019			(1,530	)		43,509

Total Net Realizations		224,254			251,431			13,555			28,559			517,799			1,195,434			74,408			49,883			3,584			1,323,309

Total Segment Distributable Earnings	$	572,564		$	446,900		$	109,643		$	92,760		$	1,221,867		$	1,756,755		$	276,406		$	242,593		$	68,142		$	2,343,896

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

The following tables present the financial data for Blackstone’s four segments as of June 30, ~~2022~~2023 and for the six months ended June 30, ~~2022~~2023 and ~~2021:~~2022:


	June 30, 2022 and the Six Months Then Ended															June 30, 2023 and the Six Months Then Ended
	Real			Private			Hedge Fund			Credit &			Total			Real			Private			Credit &			Hedge Fund			Total
	Estate			Equity			Solutions			Insurance			Segments			Estate			Equity			Insurance			Solutions			Segments
Management and Advisory Fees, Net
Base Management Fees	$	1,191,937		$	854,931		$	290,123		$	599,034		$	2,936,025		$	1,415,364		$	894,622		$	662,087		$	268,083		$	3,240,156
Transaction, Advisory and Other Fees, Net		87,459			40,209			4,919			16,514			149,101			47,627			63,609			23,453			3,756			138,445
Management Fee Offsets		(1,649	)		(50,299	)		(109	)		(2,784	)		(54,841	)		(18,764	)		(2,076	)		(2,157	)		(31	)		(23,028	)

Total Management and Advisory Fees, Net		1,277,747			844,841			294,933			612,764			3,030,285			1,444,227			956,155			683,383			271,808			3,355,573
Fee Related Performance Revenues		757,024			(648	)		—			148,282			904,658			152,047			—			262,935			—			414,982
Fee Related Compensation		(618,735	)		(303,672	)		(105,098	)		(264,379	)		(1,291,884	)		(336,616	)		(317,306	)		(332,233	)		(91,624	)		(1,077,779	)
Other Operating Expenses		(154,332	)		(150,977	)		(49,250	)		(121,049	)		(475,608	)		(146,130	)		(151,166	)		(155,613	)		(56,105	)		(509,014	)

Fee Related Earnings		1,261,704			389,544			140,585			375,618			2,167,451			1,113,528			487,683			458,472			124,079			2,183,762

Realized Performance Revenues		2,800,636			573,122			36,110			109,716			3,519,584			130,817			646,498			167,525			85,109			1,029,949
Realized Performance Compensation		(1,121,433	)		(264,083	)		(11,083	)		(49,495	)		(1,446,094	)		(72,758	)		(295,575	)		(74,343	)		(31,718	)		(474,394	)
Realized Principal Investment Income		83,091			74,342			13,371			29,800			200,604
Realized Principal Investment Income (Loss)																	2,154			36,856			(13,347	)		10,567			36,230

Total Net Realizations		1,762,294			383,381			38,398			90,021			2,274,094			60,213			387,779			79,835			63,958			591,785

Total Segment Distributable Earnings	$	3,023,998		$	772,925		$	178,983		$	465,639		$	4,441,545		$	1,173,741		$	875,462		$	538,307		$	188,037		$	2,775,547

Segment Assets	$	14,267,173		$	14,636,045		$	2,777,317		$	6,979,467		$	38,660,002		$	14,049,551		$	13,586,079		$	6,352,586		$	2,619,493		$	36,607,709

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Six Months Ended June 30, 2021

Real

Private

Hedge Fund

Credit &

Total

Estate

Equity

Solutions

Insurance

Segments
Management and Advisory Fees, Net
Base Management Fees      $ 880,850   $ 742,266   $ 305,777   $ 328,448   $ 2,257,341
Transaction, Advisory and Other Fees, Net    64,099 74,979 5,904 11,783 156,765
Management Fee Offsets    (2,116 ) (17,520 ) (261 ) (3,262 ) (23,159 )

Total Management and Advisory Fees, Net    942,833 799,725 311,420 336,969 2,390,947
Fee Related Performance Revenues    189,168 — — 28,889 218,057
Fee Related Compensation    (310,449 ) (277,364 ) (77,488 ) (155,194 ) (820,495 )
Other Operating Expenses    (99,122 ) (112,096 ) (41,045 ) (91,339 ) (343,602 )

Fee Related Earnings
   722,430 410,265 192,887 119,325 1,444,907

Realized Performance Revenues    439,691 638,855 48,629 67,086 1,194,261
Realized Performance Compensation    (177,690 ) (270,584 ) (12,534 ) (28,387 ) (489,195 )
Realized Principal Investment Income    128,949 143,199 37,675 51,465 361,288

Total Net Realizations
   390,950 511,470 73,770 90,164 1,066,354

Total Segment Distributable Earnings
     $ 1,113,380   $ 921,735   $ 266,657   $ 209,489   $ 2,511,261


	Six Months Ended June 30, 2022
	Real			Private			Credit &			Hedge Fund			Total
	Estate			Equity			Insurance			Solutions			Segments
Management and Advisory Fees, Net
Base Management Fees	$	1,191,937		$	854,931		$	599,034		$	290,123		$	2,936,025
Transaction, Advisory and Other Fees, Net		87,459			40,209			16,514			4,919			149,101
Management Fee Offsets		(1,649	)		(50,299	)		(2,784	)		(109	)		(54,841	)

Total Management and Advisory Fees, Net		1,277,747			844,841			612,764			294,933			3,030,285
Fee Related Performance Revenues		757,024			(648	)		148,282			—			904,658
Fee Related Compensation		(618,735	)		(303,672	)		(264,379	)		(105,098	)		(1,291,884	)
Other Operating Expenses		(154,332	)		(150,977	)		(121,049	)		(49,250	)		(475,608	)

Fee Related Earnings		1,261,704			389,544			375,618			140,585			2,167,451

Realized Performance Revenues		2,800,636			573,122			109,716			36,110			3,519,584
Realized Performance Compensation		(1,121,433	)		(264,083	)		(49,495	)		(11,083	)		(1,446,094	)
Realized Principal Investment Income		83,091			74,342			29,800			13,371			200,604

Total Net Realizations		1,762,294			383,381			90,021			38,398			2,274,094

Total Segment Distributable Earnings	$	3,023,998		$	772,925		$	465,639		$	178,983		$	4,441,545

Reconciliations of Total Segment Amounts

The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three and six months ended June 30, ~~2022~~2023 and ~~2021~~2022 along with Total Assets as of June 30, ~~2022:~~2023:


	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Revenues
Total GAAP Revenues	$	629,220		$	5,291,354		$	5,755,500		$	10,590,226		$	2,814,691		$	629,220		$	4,196,536		$	5,755,500
Less: Unrealized Performance Revenues (a)		3,467,668			(2,697,170	)		2,174,618			(5,161,667	)		(114,379	)		3,467,668			644,937			2,174,618
Less: Unrealized Principal Investment (Income) Loss (b)		203,288			(104,658	)		176,530			(528,592	)		(160,702	)		203,288			318,418			176,530
Less: Interest and Dividend Revenue (c)		(66,143	)		(32,931	)		(120,628	)		(64,343	)		(153,240	)		(66,143	)		(248,341	)		(120,628	)
Less: Other Revenue (d)		(155,704	)		(27,870	)		(228,523	)		(88,143	)		31,718			(155,704	)		45,898			(228,523	)
Impact of Consolidation (e)		75,099			(312,076	)		(102,497	)		(581,392	)		(60,408	)		75,099			(119,395	)		(102,497	)
Transaction-Related Charges (f)		(237	)		12			(1,450	)		(3,611	)		(7,461	)		(237	)		(2,673	)		(1,450	)
Intersegment Eliminations		602			1,040			1,581			2,075			667			602			1,354			1,581

Total Segment Revenue (g)	$	4,153,793		$	2,117,701		$	7,655,131		$	4,164,553		$	2,350,886		$	4,153,793		$	4,836,734		$	7,655,131

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Expenses
Total GAAP Expenses	$	1,475,310		$	744,113		$	2,664,655		$	2,941,135
Less: Unrealized Performance Allocations Compensation (h)		(54,155	)		1,386,543			259,094			914,259
Less: Equity-Based Compensation (i)		(249,755	)		(195,644	)		(517,889	)		(397,189	)
Less: Interest Expense (j)		(107,130	)		(69,425	)		(211,339	)		(136,027	)
Impact of Consolidation (e)		(40,879	)		(11,394	)		(97,553	)		(19,200	)
Amortization of Intangibles (k)		(7,412	)		(17,044	)		(18,753	)		(34,088	)
Transaction-Related Charges (f)		(9,689	)		(25,378	)		(13,522	)		(51,924	)
Administrative Fee Adjustment (l)		(2,413	)		(2,476	)		(4,860	)		(4,961	)
Intersegment Eliminations		667			602			1,354			1,581

Total Segment Expenses (m)	$	1,004,544		$	1,809,897		$	2,061,187		$	3,213,586

Three Months Ended

Six Months Ended

June 30,

June 30,

        2022

        2021

        2022

        2021
Expenses

Total GAAP Expenses
     $ 744,113   $ 2,272,330   $ 2,941,135   $ 4,323,777
Less: Unrealized Performance Allocations Compensation (h)    1,386,543 (1,150,219 ) 914,259 (2,200,188 )
Less: Equity-Based Compensation (i)    (195,644 ) (121,422 ) (397,189 ) (265,694 )
Less: Interest Expense (j)    (69,425 ) (44,132 ) (136,027 ) (88,472 )
Impact of Consolidation (e)    (11,394 ) (6,647 ) (19,200 ) (11,747 )
Amortization of Intangibles (k)    (17,044 ) (17,044 ) (34,088 ) (34,168 )
Transaction-Related Charges (f)    (25,378 ) (35,521 ) (51,924 ) (67,032 )
Administrative Fee Adjustment (l)    (2,476 ) (2,551 ) (4,961 ) (5,259 )
Intersegment Eliminations    602 1,040 1,581 2,075

Total Segment Expenses (m)
     $ 1,809,897   $ 895,834   $ 3,213,586   $ 1,653,292


	Three Months Ended						Six Months Ended						Three Months Ended						Six Months Ended
	June 30,						June 30,						June 30,						June 30,
	2022			2021			2022			2021			2023			2022			2023			2022
Other Income
Total GAAP Other Income	$	(104,339	)	$	126,724		$	(52,702	)	$	249,987
Total GAAP Other Income (Loss)													$	87,595		$	(104,339	)	$	153,451		$	(52,702	)
Impact of Consolidation (e)		104,339			(126,724	)		52,702			(249,987	)		(87,595	)		104,339			(153,451	)		52,702

Total Segment Other Income	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Table of Contents

Blackstone Inc.

Notes to Condensed Consolidated Financial Statements (Unaudited) - Continued

(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)

Three Months Ended

Six Months Ended

June 30,

June 30,

2022

2021

2022

2021
Income (Loss) Before Provision for Taxes

Total GAAP Income (Loss) Before Provision for Taxes
     $ (219,232 )   $ 3,145,748   $ 2,761,663   $ 6,516,436
Less: Unrealized Performance Revenues (a)    3,467,668 (2,697,170 ) 2,174,618 (5,161,667 )
Less: Unrealized Principal Investment (Income) Loss (b)    203,288 (104,658 ) 176,530 (528,592 )
Less: Interest and Dividend Revenue (c)    (66,143 ) (32,931 ) (120,628 ) (64,343 )
Less: Other Revenue (d)    (155,704 ) (27,870 ) (228,523 ) (88,143 )
Plus: Unrealized Performance Allocations Compensation (h)    (1,386,543 ) 1,150,219 (914,259 ) 2,200,188
Plus: Equity-Based Compensation (i)    195,644 121,422 397,189 265,694
Plus: Interest Expense (j)    69,425 44,132 136,027 88,472
Impact of Consolidation (e)    190,832 (432,153 ) (30,595 ) (819,632 )
Amortization of Intangibles (k)    17,044 17,044 34,088 34,168
Transaction-Related Charges (f)    25,141 35,533 50,474 63,421
Administrative Fee Adjustment (l)    2,476 2,551 4,961 5,259

Total Segment Distributable Earnings
     $ 2,343,896   $ 1,221,867   $ 4,441,545   $ 2,511,261


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2023			2022			2023			2022
Income (Loss) Before Provision for Taxes
Total GAAP Income (Loss) Before Provision for Taxes	$	1,426,976		$	(219,232	)	$	1,685,332		$	2,761,663
Less: Unrealized Performance Revenues (a)		(114,379	)		3,467,668			644,937			2,174,618
Less: Unrealized Principal Investment (Income) Loss (b)		(160,702	)		203,288			318,418			176,530
Less: Interest and Dividend Revenue (c)		(153,240	)		(66,143	)		(248,341	)		(120,628	)
Less: Other Revenue (d)		31,718			(155,704	)		45,898			(228,523	)
Plus: Unrealized Performance Allocations Compensation (h)		54,155			(1,386,543	)		(259,094	)		(914,259	)
Plus: Equity-Based Compensation (i)		249,755			195,644			517,889			397,189
Plus: Interest Expense (j)		107,130			69,425			211,339			136,027
Impact of Consolidation (e)		(107,124	)		190,832			(175,293	)		(30,595	)
Amortization of Intangibles (k)		7,412			17,044			18,753			34,088
Transaction-Related Charges (f)		2,228			25,141			10,849			50,474
Administrative Fee Adjustment (l)		2,413			2,476			4,860			4,961

Total Segment Distributable Earnings	$	1,346,342		$	2,343,896		$	2,775,547		$	4,441,545


	As of
	June 30,
	~~2022~~ 2023
Total Assets
Total GAAP Assets	$	41,582,784
Impact of Consolidation (e)		(4,975,075	)

Total ~~GAAP~~Segment Assets	$	~~41,631,308~~36,607,709
~~Impact of Consolidation (e)~~		~~(2,971,306~~	)

~~Total Segment Assets~~	$	~~38,660,002~~

Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges.

Our Core+ strategy invests in substantially stabilized real estate globally ~~with long-term growth potential. Our institutional North America,~~primarily through perpetual capital vehicles. These include our (a) Blackstone Property Partners funds (“BPP”), which are focused on high-quality assets in the Americas, Europe and Asia ~~Core+ strategies, Blackstone Property Partners (“BPP”), focus on logistics, residential, office, life science office~~ and ~~retail assets in global gateway cities. The Core+ Real Estate business also comprises strategies tailored for income-focused individual investors including,~~(b) Blackstone Real Estate Income Trust, Inc. (“BREIT”)~~, a U.S.~~

~~non-listed~~

~~REIT,~~ and our Blackstone European Property Income (“BEPIF”) ~~funds.~~funds, which provide income-focused individual investors access to institutional quality real estate globally in developed markets.

~~Table of Contents~~

Our Blackstone Real Estate Debt Strategies (“BREDS”) vehicles primarily target real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate and mezzanine loans, residential mortgage loan pools and liquid real estate-related debt securities. The BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed real estate investment trust (“REIT”). The BREDS platform also includes real estate credit products managed on behalf of insurance companies.

Private Equity

Our Private Equity segment includes our corporate private equity business, which consists ofof: (a) our global private equity funds, Blackstone Capital Partners (“BCP”), (b) our sector-focused funds, including our ~~energy-focused~~energy- and energy transition-focused funds, Blackstone Energy Transition Partners (“~~BEP”~~BETP”), (c) our Asia-focused private equity funds, Blackstone Capital Partners Asia and (d) our core private equity funds, Blackstone Core Equity Partners (“BCEP”). Our Private Equity segment also includes (a) our opportunistic investment platform that invests globally across asset classes, industries and geographies, Blackstone Tactical Opportunities (“Tactical Opportunities”), (b) our secondary fund of funds business, Strategic Partners Fund Solutions (“Strategic Partners”), (c) our infrastructure-focused funds, Blackstone Infrastructure Partners (“BIP”), (d) our life sciences investment platform, Blackstone Life Sciences (“BXLS”), (e) our growth equity investment platform, Blackstone Growth (“BXG”), (f) our multi-asset investment program for eligible high net worth investors offering exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment, Blackstone Total Alternatives Solution (“BTAS”) and (g) our capital markets services business, Blackstone Capital Markets (“BXCM”).

We are a global leader in private equity investing. Our corporate private equity business pursues transactions across industries on a global basis. It strives to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation. Our corporate private equity business’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing. Blackstone Core Equity Partners pursues control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than traditional private equity.

Table of Contents

Tactical Opportunities pursues a thematically driven, opportunistic investment strategy. Our flexible, global mandate enables us to find differentiated opportunities across asset classes, industries, and geographies and invest behind them with the frequent use of structure to generate attractive risk-adjusted returns. With a focus on businesses and/or asset-backed investments in market sectors that are benefitting from long-term transformational tailwinds, Tactical Opportunities seeks to leverage the full power of Blackstone to help those businesses grow and improve. Tactical Opportunities’ ability to dynamically shift focus to the most compelling opportunities in any market environment, combined with the business’ expertise in structuring complex transactions, enables Tactical Opportunities to invest behind attractive market areas often with securities that provide downside protection and maintain upside return.

Strategic Partners, our secondary fund of funds business, is a total fund solutions provider. As a secondary investor it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general

partner-led

transactions and primary investments and

co-investments

with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and

co-investments.

~~Table of Contents~~

BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure, and water and waste with a primary focus in the U.S. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term

buy-and-hold

strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield.

BXLS is our investment platform with capabilities to invest across the life cycle of companies and products within the life sciences sector. BXLS primarily focuses on investments in life sciences products in late stage clinical development within the pharmaceutical and biotechnology sectors.

BXG is our growth equity platform that seeks to deliver attractive risk-adjusted returns by investing in dynamic, growth-stage businesses, with a focus on the consumer, consumer technology, enterprise solutions, financial services and healthcare sectors.

Credit & Insurance

Our Credit & Insurance segment includes Blackstone Credit (“BXC”). BXC is one of the largest credit-oriented managers and CLO managers in the world. The investment portfolios of the funds BXC manages or

sub-advises

consist primarily of loans and securities of

non-investment

and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.

BXC is organized into two overarching strategies: private credit and liquid credit. BXC’s private credit strategies include mezzanine and direct lending funds, private placement strategies, stressed/distressed strategies and energy strategies (including our sustainable resources platform). BXC’s direct lending funds include Blackstone Private Credit Fund (“BCRED”) and Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”). BXC’s liquid credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and separately managed accounts.

Table of Contents

strategies across asset classes and Blackstone’s private credit origination capabilities. BIS provides its clients tailored portfolio construction and strategic asset allocation, seeking to generate risk-managed, capital-efficient returns, diversification and capital preservation that meets clients’ objectives. BIS also provides similar services to clients through separately managed accounts or by

sub-managing

assets for certain insurance-dedicated funds and special purpose vehicles. BIS currently manages assets for clients that include Corebridge Financial Inc., Everlake Life Insurance Company, Fidelity & Guaranty Life Insurance Company and Resolution Life Group, among others.

In addition, our Credit & Insurance segment includes our asset-based finance platform and our publicly traded midstream energy infrastructure, listed infrastructure and master limited partnership (“MLP”) investment platform, which is managed by Harvest Fund Advisors LLC (“Harvest”). Harvest primarily invests capital raised from institutional investors in separately managed accounts and pooled vehicles, investing in publicly traded energy infrastructure, listed infrastructure, renewables and MLPs holding primarily midstream energy assets in North America.

Hedge Fund Solutions

The principal component of our Hedge Fund Solutions segment is Blackstone Alternative Asset Management (“BAAM”). BAAM is the world’s largest discretionary allocator to hedge funds, managing a broad range of commingled and customized fund solutions since its inception in 1990. The Hedge Fund Solutions segment also includes (a) our GP Stakes business (“GP Stakes”), which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation, (b) investment platforms that invest directly, including our Blackstone Strategic Opportunity Fund, which seeks to produce ~~attractive~~ long-term, risk-adjusted returns by investing in a wide variety of securities, assets and instruments, often sourced and/or managed by third party subadvisors or affiliated Blackstone managers, (c) our hedge fund seeding business and (d) registered funds that provide alternative asset solutions through daily liquidity products. Hedge Fund Solutions’ overall investment philosophy is to seek to grow investors’ assets through both commingled and custom-tailored

investment

strategies designed to deliver compelling risk-adjusted returns. Diversification, risk management and due diligence are key tenets of our approach.

~~Credit & Insurance~~

~~Our Credit & Insurance segment includes Blackstone Credit (“BXC”). BXC is one of the largest credit-oriented managers in the world. The investment portfolios of the funds BXC manages or~~

~~sub-advises~~

~~consist of loans and securities of~~

~~non-investment~~

~~and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.~~

BXC is organized into two overarching strategies: private credit and liquid credit. BXC’s private credit strategies include mezzanine and direct lending funds, private placement strategies, stressed/distressed strategies and energy strategies (including our sustainable resources platform). BXC’s direct lending funds include Blackstone Private Credit Fund (“BCRED”) and Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”). BXC’s liquid credit strategies consist of collateralized loan obligations (“CLOs”), closed-ended funds, open-ended funds, systematic strategies and separately managed accounts.

Our Credit & Insurance segment also includes our insurer-focused platform, Blackstone Insurance Solutions (“BIS”). BIS focuses on providing full investment management services for insurers’ general accounts, seeking to deliver customized and diversified portfolios that include allocations to Blackstone managed products and strategies across asset classes and Blackstone’s private credit origination capabilities. BIS provides its clients tailored portfolio construction and strategic asset allocation, seeking to generate risk-managed, capital-efficient returns, diversification and capital preservation that meets clients’ objectives. BIS also provides similar services to clients through separately managed accounts or by

~~sub-managing~~

~~assets for certain insurance-dedicated funds and special purpose vehicles.~~

~~Table of Contents~~

~~Revenue~~

We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies (including management, transaction and monitoring fees), and from capital markets services. We also invest in the funds we manage and we are entitled to a

~~pro-rata~~

~~share of the results of the fund~~

~~(a “pro-rata~~

~~allocation”). In addition to a~~

~~pro-rata~~

allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain structures, we receive a contractual incentive fee from an investment fund in the event that specified cumulative investment returns are achieved (an “Incentive Fee,” and together with Performance Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different businesses in which we operate. Net investment gains and investment income generated by the Blackstone Funds are driven by value created by our operating and strategic initiatives as well as overall market conditions. Fair values are affected by changes in the fundamentals of our portfolio company and other investments, the industries in which they operate, the overall economy and other market conditions.

Business Environment

Oil and gas markets were volatile in the second quarter, with the price of West Texas Intermediate crude oil ~~increased 5% to $106 per barrel~~declining 7% from the prior quarter after a supply-driven spike in ~~the second quarter, marking a 41% jump since the start of the year.~~

~~Volatility~~April. Henry Hub natural gas prices steadily increased in the second quarter, ~~with~~ending the ~~CBOE Volatility Index rising 40%, contributing~~quarter at $2.80/MMBtu, an increase of 26% compared to ~~a material slowdown~~the first quarter.

Market activity levels were bifurcated in ~~capital markets activity.~~the second quarter. U.S. ~~IPO~~initial public offering volumes ~~decreased~~were up 93% compared to relatively low levels in the second quarter of ~~2021~~2022, while U.S. announced merger and acquisition deal volumes ~~declined 37%~~were down 30% over the same period.

Although sustained high interest rates and capital constraints contributed to continued concerns regarding U.S. economic growth, decelerating inflation and less volatile markets have supported overall economic resiliency.

Table of Contents

~~The~~

~~ten-year~~

Treasury yield increased 67 basis points to 3.01% in the second quarter. Three-month LIBOR increased 132 basis points to 2.29% in the second quarter and has since climbed to 2.80% as of August 1, 2022.

In credit markets, the S&P leveraged loan index declined by 4.5% and the Credit Suisse high yield bond index declined by 9.7% in the second quarter. High yield spreads expanded by 217 basis points, while issuance decreased 82% compared to the second quarter of 2021.

~~The U.S. unemployment rate remained stable since the first quarter at 3.6% as of June 2022. Wages, however continued to rise, increasing 5.1% year-over-year in June and exceeding the~~

~~15-year~~

average of 2.9%. Retail sales increased 8.4% in June 2022 compared to June 2021, on a seasonally adjusted basis, driven in part by higher prices. The Institute for Supply Management Purchasing Managers’ Index decreased to 53.0 in the second quarter from 60.6 in June 2021, signaling slowing expansion in the U.S. manufacturing sector.

Headline economic measures were generally healthy in the second quarter. Inflation continues to rise and will likely cause the Federal Reserve to continue raising interest rates. Additionally, rising rates, increasing costs and supply chain issues may dampen consumer spending and slow corporate profit growth, which may negatively impact equity values. There is a debate among economists as to whether such factors, coupled with economic contraction in the U.S. in the first and second quarters of 2022, indicate that the U.S. has entered, or in the near term will enter, a recession.

~~Notable Transactions~~

~~On June 1, 2022, Blackstone, through its indirect subsidiary Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), issued~~

€

~~500 million aggregate principal amount of 3.500% senior notes due June 1, 2034.~~

On June 3, 2022, Blackstone, through the Issuer, entered into an amended and restated $4.1 billion revolving credit facility with Citibank, N.A., as administrative agent, and the lenders party thereto. The amendment and restatement, among other things, increased the amount of available borrowings and extended the maturity date from November 24, 2025 to June 3, 2027.

~~For additional information see Note 12. “Borrowings” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements.”~~

Organizational Structure

Effective February 26, 2021, Blackstone effectuated changes to rename its Class A common stock as “common stock,” and to reclassify its Class B and Class C common stock into a new “Series I preferred stock” and “Series II preferred stock,” respectively. Each new stock has the same rights and powers of its predecessor. For additional information, see Note 1. “Organization” and Note 14. “Earnings Per Share and Stockholders’ Equity — Stockholders’ Equity” in the “Notes to Condensed Consolidated Financial Statements” in “— Item 1. Financial Statements” of this filing.

Effective August 6, 2021, The Blackstone Group Inc. changed its name to Blackstone Inc. For additional information, see Note 1. “Organization” in the “Notes to Condensed Consolidated Financial Statements” in “— Item 1. Financial Statements.”

~~Table of Contents~~

The simplified diagram below depicts our current organizational structure. The diagram does not depict all of our subsidiaries, including intermediate holding companies through which certain of the subsidiaries depicted are held.

Key Financial Measures and Indicators

We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our investment activities. We prepare our ~~Condensed~~ Consolidated Financial Statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “— Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 2. ~~“Summary~~Summary of Significant Accounting Policies” ~~in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements”~~ and “— Critical Accounting Policies.” Our key

non-GAAP

financial measures and operating indicators and metrics are discussed below.

Distributable Earnings

Distributable Earnings is derived from Blackstone’s segment reported results. Distributable Earnings is used to assess performance and amounts available for dividends to Blackstone ~~shareholders,~~stockholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Distributable Earnings is the sum of Segment Distributable Earnings plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables. Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—

“— Non-GAAP

Financial Measures” for our reconciliation of Distributable Earnings.

Table of Contents

Net Interest and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone Funds, and interest expense associated with the Tax Receivable Agreement.

~~Table of Contents~~

Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the Payable under the Tax Receivable Agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and Distributable Earnings reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related Charges where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s ~~Condensed~~ Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management believes that including the amount payable under the ~~tax receivable agreement~~Tax Receivable Agreement and utilizing the current income tax provision adjusted as described above when calculating Distributable Earnings is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to ~~shareholders.~~stockholders.

Segment Distributable Earnings

Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Blackstone believes it is useful to stockholders to review the measure that management uses in assessing segment performance. Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates

non-controlling

Non-GAAP

Financial Measures” for our reconciliation of Segment Distributable Earnings.

Net Realizations is presented on a segment basis and is the sum of Realized Principal Investment Income and Realized Performance Revenues (which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).

Realized Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to ~~them as a result of a new compensation program that commenced during the three months ended June 30, 2021.~~them. The expectation is that for the full year ~~2022,~~2023, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year. InFor the three and six months ended June 30, ~~2022 the increase to~~2023, Realized Performance Compensation was increased by an aggregate of ~~$50.0~~$27.5 million and ~~$65.0~~$62.5 million, respectively, ~~was greater than the decrease to~~and Fee Related Compensation ~~of $20.0~~was decreased by $16.3 million and ~~$40.0~~$32.5 million, respectively.

These changes to Realized Performance Compensation and Fee Related Compensation reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision (Benefit) for Taxes and Distributable Earnings in the three and six months ended June 30, ~~2022.~~2023. These changes are not expected to impact Income Before Provision (Benefit) for Taxes and Distributable Earnings for the full year. In the three months ended June 30, 2021 Realized Performance Compensation was increased, and Fee Related Compensation was decreased, by $15.0 million. This reduced Net Realizations, increased Fee Related Earnings, was neutral toyear ending December 31, 2023. These changes had an impact on individual quarters in 2022 but did not impact Income Before Provision (Benefit) for Taxes and ~~had no impact to~~ Distributable Earnings for ~~such period.~~the year ended December 31, 2022.

Table of Contents

An increase of $2.1 billion in our Real Estate segment, primarily attributable to ~~net unrealized appreciation of investments~~muted sales in the three months ended June 30, ~~2021. Principal drivers of the decrease were:~~

~~The decrease of $3.4 billion in our Real Estate segment was primarily attributable~~2023 compared to significant realizations and net unrealized depreciation of investments in BREP and lower net unrealized appreciation of investments in Core+ real estate during the three months ended June 30, 2022. BREP and Core+ real estate’s carrying value decreased 1.0% and increased 2.3%, respectively, in the three months ended June 30, 2022, ~~compared~~where more assets were converted from unrealized income to ~~increases of 9.4% and 5.7%, respectively, in the three months ended June 30, 2021.~~realized income.

~~The decrease~~An increase of ~~$2.7~~$1.6 billion in our Private Equity segment, ~~was~~ primarily attributable to net unrealized ~~depreciation~~appreciation of investments in corporate private equity and Tactical Opportunities in the three months ended June 30, ~~2022~~2023 compared to net unrealized ~~appreciation~~depreciation of investments in the three months ended June 30, ~~2021. Corporate~~2022. The carrying value of corporate private equity and Tactical Opportunities ~~carrying value decreased~~increased 3.5% and 1.8%, respectively, in the three months ended June 30, 2023 compared to decreases of 6.7% and 2.4%, respectively, in the three months ended June 30, ~~2022 compared~~2022.

An increase of $274.6 million in our Credit & Insurance segment, primarily attributable to ~~increases~~net unrealized appreciation of ~~13.8% and 7.2%, respectively,~~investments in ~~the three months ended June 30, 2021.~~direct lending.

The ~~$1.8~~$2.2 billion ~~increase~~decrease in Realized Investment Income (Loss) was primarily attributable to ~~higher~~lower realized gains in our Real Estate ~~segment, partially offset by lower realized gains in our Private Equity~~ segment.

Expenses

Expenses were $1.5 billion for the three months ended June 30, 2023, an increase of $731.2 million, compared to $744.1 million for the three months ended June 30, ~~2022, a decrease of $1.5 billion, compared to $2.3 billion for the three months ended June 30, 2021.~~2022. The ~~decrease~~increase was primarily attributable to ~~a decrease~~an increase of ~~$1.6 billion~~$679.8 million in Total Compensation and Benefits, of which ~~is composed of a decrease of $1.8 billion~~$610.0 million was an increase in Performance Allocations ~~Compensation and an increase of $178.9 million in~~ Compensation. The ~~decrease~~increase in Performance Allocations Compensation was primarily due to the ~~decrease~~increase in Investment Income (Loss), on which a portion of compensation is based. ~~The increase in Compensation was primarily due to the increase in Management and Advisory Fees, Net, on which a portion of compensation is based.~~

Other Income (Loss)

Other Income (Loss) was $87.6 million for the three months ended June 30, 2023, an increase of $191.9 million, compared to $(104.3) million for the three months ended June 30, ~~2022, a decrease of $231.1 million, compared to $126.7 million for the three months ended June 30, 2021.~~2022. The ~~decrease~~increase in Other Income was principally due to ~~a decrease~~an increase of ~~$231.4~~$184.8 million in Net Gains (Losses) from Fund Investment Activities.

The ~~decrease~~increase in Net Gains (Losses) from Fund Investment Activities was ~~principally~~ driven by ~~decreases~~increases of ~~$123.2~~$103.0 million, ~~$70.0 million, $19.3~~$72.1 million and ~~$18.9~~$11.7 million in our Private Equity, Hedge Fund Solutions ~~Real Estate~~ and Credit & Insurance segments, respectively. The ~~decrease~~increases in our Private Equity, ~~segment was~~Hedge Fund Solutions and Credit & Insurance segments were primarily due to unrealized ~~depreciation of investments and lower realized gains~~appreciation of investments in our consolidated ~~private equity funds. The decrease~~funds in our Hedge Fund Solutions segment was primarily due to unrealized depreciation of investments in our consolidated hedge fund solutions funds. The decrease in our Real Estate segment was primarily due to unrealized depreciation of investments, partially offset by higher realized gains of investments in our consolidated real estate funds. The decrease in our Credit & Insurance segment was primarily due to unrealized depreciation of investments and realized losses of investments in our consolidated credit funds.such segments.

7981

Table of Contents

Six Months Ended June 30, ~~2022~~2023 Compared to Six Months Ended June 30, ~~2021~~2022

Revenues

Revenues were $4.2 billion for the six months ended June 30, 2023, a decrease of $1.6 billion, compared to $5.8 billion for the six months ended June 30, ~~2022, a decrease of $4.8 billion, compared to $10.6 billion for the six months ended June 30, 2021.~~2022. The decrease in Revenues was primarily attributable to a decrease of ~~$5.8~~$1.8 billion in Investment Income (Loss), which iswas composed of ~~a decrease~~an increase of ~~$8.7~~$1.6 billion in Unrealized Investment Income (Loss) and ~~an increase~~a decrease of ~~$2.9~~$3.5 billion in Realized Investment Income (Loss), partially offset by an increase of ~~$646.8~~$330.6 million in Management and Advisory Fees, Net.

The ~~$8.7~~$1.6 billion ~~decrease~~increase in Unrealized Investment Income (Loss) was primarily attributable to ~~net~~lower unrealized depreciation of investments in the six months ended June 30, ~~2022~~2023 compared to ~~net unrealized appreciation of investments in~~ the six months ended June 30, ~~2021.~~2022. Principal drivers ~~of the decrease~~ were:

~~The decrease~~An increase of ~~$4.3~~$1.1 billion in our Private Equity segment, ~~was~~ primarily attributable to net unrealized ~~depreciation~~appreciation of investments in corporate private equity and Tactical Opportunities in the six months ended June 30, ~~2022~~2023, compared to net unrealized ~~appreciation~~depreciation of investments in the six months ended June 30, ~~2021. Corporate~~2022. The carrying value of corporate private equity and Tactical Opportunities ~~carrying value decreased~~increased 6.3% and 3.9% ~~and 0.4%~~, respectively, in the six months ended June 30, ~~2022~~2023 compared to ~~increases~~decreases of ~~29.0%~~3.9% and ~~22.1%,~~0.4% respectively, in the six months ended June 30, ~~2021.~~2022.

~~The decrease~~An increase of ~~$3.0 billion~~$374.1 million in our Real Estate segment, ~~which was~~ primarily attributable to ~~significant realizations in BREP during the three months ended June 30, 2022, partially offset by lower net unrealized appreciation of investments~~increased asset sales in BREP in the six months ended June 30, 2022 compared to the six months ended June 30, ~~2021. BREP’s carrying value increased 9.1%~~2023.

A decrease of $72.9 million in our Hedge Fund Solutions segment, primarily attributable to lower net unrealized appreciation of investment holdings in liquid and specialized solutions in the six months ended June 30, ~~2022~~2023 compared to ~~14.9% in~~ the six months ended June 30, ~~2021.~~2022.

The ~~$2.9~~$3.5 billion ~~increase~~decrease in Realized Investment Income (Loss) was primarily attributable to ~~higher~~lower realized gains in our Real Estate segment, partially offset by the gain recognized in connection with the Pátria Investments Limited and Pátria Investimentos Ltda. (collectively, “Pátria”) sale transaction in the first quarter of 2021. On January 26, 2021, Pátria completed its IPO, pursuant to which Blackstone sold a portion of its interests and no longer has representatives or the right to designate representatives on Pátria’s board of directors. As a result of Pátria’ssegment.

~~pre-IPO~~

~~reorganization transactions (which included Blackstone’s sale of 10% of Pátria’s~~

~~pre-IPO~~

shares to Pátria’s controlling shareholder) and the consummation of the IPO, Blackstone was deemed to no longer have significant influence over Pátria due to Blackstone’s decreased ownership and lack of board representation.

In our Real Estate segment, an increase of $58.9 million from $287.5 billion at March 31, 2023 to $287.6 billion at June 30, 2023. The net increase was due ~~to:~~

~~Inflows~~to inflows of ~~$44.4~~$7.1 billion ~~related to:~~

~~$24.7 billion in our Real Estate segment driven by $9.4 billion from BREIT, $9.4 billion from BPP and~~

~~co-investment,~~

~~$4.9 billion from BREDS and $868.6 million from BREP and~~

~~co-investment,~~

$12.1 billion in our Credit & Insurance segment driven by $6.4 billion from direct lending, $1.7 billion from CLOs, $1.5 billion from asset-based finance, $1.4 billion from our energy strategies, $1.4 billion from certain liquid credit strategies and $531.8 million from stressed/distressed strategies, partially offset by net allocations to other segments of $1.3 billion across Credit & Insurance strategies,

$6.0 billion in our Private Equity segment driven by $2.2 billion from Strategic Partners, $2.0 billion from BIP, $1.1 billion from corporate private equity and $823.1 million from Tactical Opportunities, and

~~$1.6 billion in our Hedge Fund Solutions segment driven by $894.7 million from individual investor and specialized solutions and $649.1 million from customized solutions.~~

~~Table~~and market appreciation of ~~Contents~~

~~Offsetting these increases were:~~

~~Realizations~~$2.2 billion, offset by realizations of ~~$14.1~~$5.5 billion ~~driven by:~~

~~$8.9 billion in our Real Estate segment driven by $3.1 billion from BREIT, $3.0 billion from BREDS, $1.6 billion from BREP and~~

~~co-investment~~

~~and $1.2 billion from BPP and~~

~~co-investment,~~

~~$3.0 billion in our Private Equity segment driven by $1.4 billion from Tactical Opportunities, $703.1 million from Strategic Partners and $688.3 million from corporate private equity, and~~

$1.8 billion in our Credit & Insurance segment driven by $496.4 million from CLOs, $393.9 million from our energy strategies, $335.2 million from direct lending, $208.4 million from mezzanine funds and $186.1 million from certain liquid credit strategies.

~~Outflows~~and outflows of ~~$13.5 billion primarily attributable to:~~$3.8 billion.

~~$6.7 billion in our Credit & Insurance segment~~Inflows were driven by ~~$4.4~~$3.1 billion from ~~certain liquid credit strategies, $972.0 million from BIS, $580.1 million from MLP strategies, $315.1 million from direct lending and $309.4 million from CLOs,~~

~~$3.5 billion in our Real Estate segment driven by $2.9~~BREDS, primarily due to allocations of insurance capital, $2.8 billion from BREIT, ~~and $518.7~~$680.0 million from BPP and

co-investment

and

$3.2 billion in our Hedge Fund Solutions segment driven by $1.4 billion from commingled products, $1.1 billion from customized solutions and $709.9 million from individual investor and specialized solutions.

~~Market activity of $11.0 billion primarily attributable to:~~

$8.7 billion of market depreciation in our Credit & Insurance segment driven by depreciation of $4.6 billion from certain liquid credit strategies, $1.1 billion from direct lending, $976.1 million from private placement credit, $674.2 million from CLOs and $594.9 million from asset-based finance, all of which included $1.5 billion of foreign exchange depreciation across the segment,

~~$999.6 million of market depreciation in our Hedge Fund Solutions segment driven by market activity in individual investor and specialized solutions, and~~

~~$774.1 million of market depreciation in our Real Estate segment driven by depreciation of $1.4 billion from BREDS and foreign exchange depreciation of $554.0~~ $484.2 million from BREP and

~~co-investment,~~co-investment.

~~partially offset by appreciation of $1.2 billion from Core+ real estate (which included $2.2 billion of foreign exchange depreciation).~~

~~Fee-Earning~~

~~Assets Under Management were $683.8 billion at June 30, 2022, an increase of $33.9 billion, compared to $650.0 billion at December 31, 2021. The net increase was due to:~~

~~Inflows of $89.8 billion related to:~~

~~$47.5 billion in our Real Estate segment driven by $19.2 billion from BREIT, $10.6 billion from BPP and~~

~~co-investment,~~

~~$8.8 billion from BREP and~~

~~co-investment~~

~~and $8.2 billion from BREDS,~~

$25.0 billion in our Credit & Insurance segment driven by $12.8 billion from direct lending, $3.5 billion from CLOs, $2.7 billion from certain liquid credit strategies, $1.9 billion from asset-based finance, $1.5 billion from our energy strategies, $773.6 million from BIS, $725.3 million from stressed/distressed strategies, $385.6 million from mezzanine funds and $303.5 million from MLP strategies,

~~Table of Contents~~

$11.5 billion in our Private Equity segment driven by $4.5 billion from BIP, $3.1 billion from Strategic Partners, $2.0 billion from Tactical Opportunities, $986.3 million from corporate private equity and $874.3 million from multi-asset products, and

$5.8 billion in our Hedge Fund Solutions segment driven by $4.4 billion from individual investor and specialized solutions, $1.1 billion from customized solutions and $263.8 million from commingled products.

~~Offsetting these increases were:~~

~~Realizations of $25.9 billion primarily driven by:~~

~~$14.2 billion in our Real Estate segment driven by $5.0 billion from BREIT, $4.2 billion from BREDS, $2.9 billion from BREP and~~

~~co-investment~~

~~and $2.0 billion from BPP and~~

~~co-investment,~~

~~$5.7 billion in our Private Equity segment driven by $1.9 billion from Strategic Partners, $1.8 billion from Tactical Opportunities and $1.5 billion from corporate private equity, and~~

$5.3 billion in our Credit & Insurance segment driven by $1.8 billion from CLOs, $1.7 billion from direct lending, $542.3 million from our energy strategies, $402.9 million from mezzanine funds, $356.4 million from stressed/distressed strategies and $349.6 million from certain liquid credit strategies.

~~Outflows of $24.3 billion primarily attributable to:~~

$9.8 billion in our Credit & Insurance segment driven by $5.7 billion from certain liquid credit strategies, $1.5 billion from MLP strategies, $1.3 billion from BIS, $561.2 million from direct lending and $329.4 million from CLOs,

~~$7.8 billion in our Real Estate segment driven by $4.2 billion from BREIT, $2.1 billion from BREP and~~

~~co-investment~~

~~and $1.4 billion from BPP and~~

~~co-investment,~~

~~and~~

$5.8 billion in our Hedge Fund Solutions segment driven by $3.1 billion from customized solutions, $1.5 billion from commingled products and $1.3 billion from individual investor and specialized solutions.

~~Market activity of $5.7 billion primarily attributable to:~~

$12.3 billion of market depreciation in our Credit & Insurance segment driven by depreciation of $7.9 billion from certain liquid credit strategies, $2.2 billion from private placement credit, $1.1 billion from asset-based finance and $908.3 million from CLOs, $807.6 million from direct lending, partially offset by market appreciation of $991.6 million from MLP strategies, all of which included $1.9 billion of foreign exchange depreciation across the segment,

Partially offset by $5.2 billion of market appreciation in our Real Estate segment driven by appreciation of $8.8 billion from Core+ real estate (which included $2.9 billion of foreign exchange depreciation), partially offset by depreciation of $2.8 billion from BREDS and foreign exchange depreciation of $856.8 million from BREP and

~~co-investment,~~

~~and~~

~~$2.1 billion of market appreciation in our Private Equity segment driven by appreciation of $1.3 billion from BIP and $737.8 million from Strategic Partners.~~

Table of Contents

Market appreciation was driven by appreciation of $1.2 billion from BREIT (which reflected $32.0 million of foreign exchange appreciation) and $1.0 billion from BPP and

co-investment

(which reflected $217.3 million of foreign exchange appreciation).

~~Total Assets Under Management~~

Realizations were driven by $2.5 billion from BREIT, $1.3 billion from BREDS and $1.1 billion from BREP and

co-investment.

Outflows were driven by $3.4 billion from BREIT and $315.7 million from BPP and

co-investment,

both primarily from repurchases.

In our Private Equity segment, an increase of $298.7 million from $165.3 billion at March 31, 2023 to $165.6 billion at June 30, 2023. The net increase was due to inflows of $1.4 billion and market appreciation of $626.8 million, offset by realizations of $1.6 billion and outflows of $121.3 million.

~~Total~~

Inflows were driven by $801.2 million from BIP, $344.6 million from Tactical Opportunities and $231.5 million from corporate private equity.

Market appreciation was driven by appreciation of $477.0 million from BIP (which reflected $23.4 million of foreign exchange appreciation) and $223.2 million from Strategic Partners.

Realizations were driven by $493.9 million from corporate private equity, $446.1 million from Strategic Partners, $338.4 million from BIP and $309.2 million from Tactical Opportunities.

Outflows were driven by $77.6 million from BTAS and $43.7 million from Tactical Opportunities.

In our Credit & Insurance segment, an increase of $1.7 billion from $206.6 billion at March 31, 2023 to $208.4 billion at June 30, 2023. The net increase was due to inflows of $8.4 billion and market appreciation of $1.1 billion, offset by outflows of $4.2 billion and realizations of $3.5 billion.

Inflows were driven by $3.2 billion from direct lending, $1.6 billion from liquid credit strategies, $1.2 billion from BIS, $1.2 billion from private placement credit and $571.0 million from asset-based finance.

Market appreciation was driven by appreciation of $874.4 million from direct lending (which reflected $27.2 million of foreign exchange appreciation).

Outflows were driven by $1.8 billion from liquid credit strategies, $1.7 billion from direct lending and $282.6 million from BIS.

Realizations were driven by $1.2 billion from direct lending, $985.9 million from mezzanine funds, $668.7 million from liquid credit strategies and $349.7 million from stressed/distressed strategies.

In our Hedge Fund Solutions segment, a decrease of $2.9 billion from $72.5 billion at March 31, 2023 to $69.6 billion at June 30, 2023. The net decrease was due to outflows of $2.8 billion and realizations of $1.8 billion, offset by inflows of $1.1 billion and market appreciation of $570.7 million.

Outflows were driven by $1.7 billion from commingled products, $630.3 million from customized solutions, and $507.7 million from liquid and specialized solutions.

Realizations were driven by $1.8 billion from liquid and specialized solutions.

Inflows were driven by $819.0 million from liquid and specialized solutions, $191.8 million from customized solutions, and $118.7 million from commingled products.

Market appreciation was driven by appreciation of $329.6 million from customized solutions (which reflected $8.4 million of foreign exchange appreciation), $227.8 million from liquid and specialized solutions (which reflected $35.2 million of foreign exchange depreciation) and $13.3 million from commingled products (which reflected $100.8 million of foreign exchange depreciation).

Table of Contents

Fee-Earning

Assets Under Management were ~~$940.8~~$731.1 billion at June 30, ~~2022,~~2023, an increase of ~~$25.3~~$12.8 billion compared to ~~$915.5~~$718.4 billion at ~~March~~December 31, 2022. The net increase was due to:

~~Inflows~~In our Real Estate segment, an increase of ~~$88.3~~$5.6 billion ~~primarily related to:~~from $282.0 billion at December 31, 2022 to $287.6 billion at June 30, 2023. The net increase was due to inflows of $22.8 billion and market appreciation of $285.0 million, offset by realizations of $10.0 billion and outflows of $7.6 billion.

~~$48.9 billion in our Real Estate segment~~

Inflows were driven by ~~$26.5~~$10.3 billion from BREIT, including $4.5 billion from the Regents of the University of California (“UC Investments”) in the first quarter of 2023, $8.4 billion from BREDS, primarily due to allocations of insurance capital and BREDS IV, and $2.5 billion from BREP and

co-investment,

~~$9.6~~primarily from BREP X.

Market appreciation was driven by appreciation of $753.3 million from BREIT (which reflected $63.1 million of foreign exchange appreciation) and $219.4 million from BREP and

co-investment

(all of which reflected foreign exchange appreciation), partially offset by depreciation of $751.7 million from BPP and

co-investment

(which reflected $661.3 million of foreign exchange appreciation).

Realizations were driven by $4.9 billion from BREIT, $2.3 billion from BREDS, $1.4 billion from BREP and

co-investment

and $1.3 billion from BPP and

~~co-investment,~~co-investment.

~~$9.4~~

Outflows were driven by $6.8 billion from BREIT and ~~$3.2 billion~~$590.1 million from ~~BREDS,~~BPP and

co-investment,

both primarily from repurchases.

In our Private Equity segment, a decrease of $1.4 billion from $167.1 billion at December 31, 2022 to $165.6 billion at June 30, 2023. The net decrease was due to realizations of $4.5 billion and outflows of $266.0 million, offset by inflows of $3.2 billion and market appreciation of $196.2 million.

~~$20.2 billion in our Private Equity segment~~Realizations were driven by ~~$10.0~~$1.6 billion from corporate private equity, ~~$3.1~~$1.2 billion from ~~BIP, $3.0~~Tactical Opportunities, $1.1 billion from Strategic Partners ~~$2.9~~and $605.4 million from BIP.

Outflows were driven by $259.0 million from Tactical Opportunities.

Inflows were driven by $1.6 billion from ~~BXG and $1.0 billion~~BIP, $908.0 million from Tactical Opportunities and $805.9 million from Strategic Partners.

Market appreciation was driven by appreciation of $319.6 million from Strategic Partners, partially offset by depreciation of $62.7 million from BIP (which reflected $67.5 million of foreign exchange appreciation) and $60.7 million from Tactical Opportunities (which reflected $10.8 million of foreign exchange depreciation).

In our Credit & Insurance segment, an increase of $10.2 billion from $198.2 billion at December 31, 2022 to $208.4 billion at June 30, 2023. The net increase was due to inflows of $20.8 billion and market appreciation of $4.3 billion, offset by outflows of $8.1 billion and realizations of $6.7 billion.

~~$17.1 billion in our Credit & Insurance segment~~Inflows were driven by ~~$11.6~~$9.2 billion from liquid credit strategies, $5.2 billion from direct lending, ~~$2.1~~$1.9 billion from asset-based finance, ~~$1.7~~$1.3 billion from ~~CLOs, $1.4~~private placement credit and $1.2 billion from BIS.

Market appreciation was driven by appreciation of $2.2 billion from liquid credit strategies (which reflected $589.6 million of foreign exchange appreciation) and $1.9 billion from direct lending (which reflected $139.7 million of foreign exchange appreciation).

Table of Contents

Outflows were driven by $4.1 billion from liquid credit strategies, $2.6 billion from direct lending and $511.1 million from MLP strategies.

Realizations were driven by $2.8 billion from direct lending, $1.6 billion from mezzanine funds, $1.1 billion from liquid credit strategies, $620.6 million from stressed/distressed strategies and $454.9 million from our energy ~~strategies and $1.4 billion from certain liquid credit strategies, partially offset by net allocations to other segments of $1.4 billion across Credit & Insurance strategies, and~~strategies.

In our Hedge Fund Solutions segment, a decrease of $1.6 billion from $71.2 billion at December 31, 2022 to $69.6 billion at June 30, 2023. The net decrease was due to outflows of $4.2 billion and realizations of $2.1 billion, offset by inflows of $3.2 billion and market appreciation of $1.6 billion.

~~$2.0~~Outflows were driven by $1.8 billion ~~in our Hedge Fund Solutions segment driven by~~from commingled products, $1.4 billion from ~~individual investor and specialized~~customized solutions and ~~$570.3 million~~$1.0 billion from ~~customized~~liquid and specialized solutions.

Realizations were driven by $2.1 billion from liquid and specialized solutions.

Inflows were driven by $1.5 billion from liquid and specialized solutions, $1.4 billion from customized solutions and $218.1 million from commingled products.

Market appreciation was driven by appreciation of $766.0 million from liquid and specialized solutions (which reflected $31.0 million of foreign exchange depreciation), $573.9 million from customized solutions (which reflected $153.6 million of foreign exchange depreciation) and $215.3 million from commingled products (which reflected $55.6 million of foreign exchange depreciation).

Total Assets Under Management

Total Assets Under Management were $1.0 trillion at June 30, 2023, an increase of $10.1 billion compared to $991.3 billion at March 31, 2023. The net increase was due to:

In our Real Estate segment, an increase of $1.4 billion from $331.8 billion at March 31, 2023 to $333.2 billion at June 30, 2023. The net increase was due to inflows of $7.9 billion and market appreciation of $3.0 billion, offset by realizations of $5.5 billion and outflows of $3.9 billion.

Inflows were driven by $3.2 billion from BREDS, primarily due to allocations of insurance capital and fundraising for the fifth real estate debt strategies fund, $2.8 billion from BREIT and $1.6 billion from BREP and

co-investment,

primarily from fundraising for the seventh European opportunistic fund.

Market appreciation was driven by appreciation of $1.2 billion from BREIT (which reflected $32.0 million of foreign exchange appreciation), $1.0 billion from BPP and

co-investment

(which reflected $228.4 million of foreign exchange appreciation) and $605.8 million from BREDS (which reflected $29.8 million of foreign exchange appreciation).

Realizations were driven by $2.5 billion from BREIT, $1.6 billion from BREP and

co-investment

and $879.0 million from BREDS.

Outflows were driven by $3.4 billion from BREIT and $315.8 million from BPP and

co-investment,

both primarily from repurchases.

In our Private Equity segment, an increase of $8.2 billion from $287.0 billion at March 31, 2023 to $295.3 billion at June 30, 2023. The net increase was due to inflows of $8.5 billion and market appreciation of $4.3 billion, offset by realizations of $4.1 billion and outflows of $525.0 million.

Inflows were driven by $5.7 billion from corporate private equity, $1.6 billion from Tactical Opportunities, $713.3 million from BIP and $371.5 million from Strategic Partners.

Table of Contents

Market appreciation was driven by appreciation of $2.8 billion from corporate private equity (which reflected $61.5 million of foreign exchange appreciation), $829.4 million from Strategic Partners and $564.3 million from BIP (which reflected $36.8 million of foreign exchange appreciation).

Realizations were driven by $2.3 billion from corporate private equity, $985.2 million from Strategic Partners and $386.0 million from Tactical Opportunities.

Outflows were driven by $241.1 million from corporate private equity, $102.3 million from BTAS, $77.7 million from Strategic Partners and $54.3 million from Tactical Opportunities.

In our Credit & Insurance segment, an increase of $3.3 billion from $291.3 billion at March 31, 2023 to $294.6 billion at June 30, 2023. The net increase was due to inflows of $12.3 billion and market appreciation of $2.2 billion, offset by outflows of $5.6 billion and realizations of $5.6 billion.

Inflows were driven by $5.7 billion from direct lending, $1.4 billion from our energy strategies, $1.3 billion from asset-based finance, $1.2 billion from BIS, $1.2 billion from private placement credit and $1.2 billion from liquid credit strategies.

Market appreciation was driven by appreciation of $1.1 billion from direct lending (which reflected $48.5 million of foreign exchange appreciation), $655.5 million from liquid credit strategies (which reflected $377.7 million of foreign exchange appreciation) and $270.6 million from mezzanine funds (which reflected $11.0 million of foreign exchange appreciation).

Outflows were driven by $2.4 billion from direct lending, $2.0 billion from liquid credit strategies, $558.4 million from stressed/distressed strategies and $306.8 million from BIS.

Realizations were driven by $2.4 billion from direct lending, $1.6 billion from mezzanine funds, $668.7 million from liquid credit strategies and $493.5 million from stressed/distressed strategies.

In our Hedge Fund Solutions segment, a decrease of $2.9 billion from $81.2 billion at March 31, 2023 to $78.2 billion at June 30, 2023. The net decrease was due to outflows of $2.9 billion and realizations of $2.0 billion, offset by inflows of $1.4 billion and market appreciation of $498.3 million.

Outflows were driven by $1.7 billion from commingled products, $630.5 million from customized solutions and $551.4 million from liquid and specialized solutions.

Realizations were driven by $1.9 billion from liquid and specialized solutions.

Inflows were driven by $1.1 billion from liquid and specialized solutions, $157.2 million from customized solutions and $129.0 million from commingled products.

Market appreciation was driven by appreciation of $320.4 million from customized solutions (which reflected $8.4 million of foreign exchange appreciation) and $147.9 million from liquid and specialized solutions (which reflected $35.2 million of foreign exchange depreciation).

Total Assets Under Management were $1.0 trillion at June 30, 2023, an increase of $26.7 billion compared to $974.7 billion at December 31, 2022. The net increase was due to:

In our Real Estate segment, an increase of $7.1 billion from $326.1 billion at December 31, 2022 to $333.2 billion at June 30, 2023. The net increase was due to inflows of $24.9 billion and market appreciation of $50.6 million, offset by realizations of $10.0 billion and outflows of $7.9 billion.

Inflows were driven by $10.4 billion from BREDS, primarily due to allocations of insurance capital and fundraising for the fifth real estate debt strategies fund, $10.3 billion from BREIT, including $4.5 billion from UC Investments in the first quarter of 2023, and $3.4 billion from BREP and

co-investment,

primarily from BREP X and the seventh European opportunistic fund.

Table of Contents

Market appreciation was primarily driven by appreciation of $753.3 million from BREIT (which reflected $63.1 million of foreign exchange appreciation) and $28.5 million from BREP and

co-investment

(which reflected $430.4 million of foreign exchange appreciation), partially offset by depreciation of $746.2 million from BPP and

co-investment

(which reflected $691.5 million of foreign exchange appreciation).

Realizations were driven by $4.9 billion from BREIT, $2.1 billion from BREP and

co-investment,

$1.6 billion from BREDS and $1.4 billion from BPP and

co-investment.

Outflows were driven by $6.8 billion from BREIT repurchases and $603.0 million from BPP and

co-investment,

primarily from repurchases.

In our Private Equity segment, an increase of $6.4 billion from $288.9 billion at December 31, 2022 to $295.3 billion at June 30, 2023. The net increase was due to inflows of $13.1 billion and market appreciation of $7.1 billion, offset by realizations of $12.7 billion and outflows of $1.2 billion.

Inflows were driven by $7.2 billion from corporate private equity, $2.4 billion from BIP, $1.8 billion from Tactical Opportunities and $1.3 billion from Strategic Partners.

Market appreciation was driven by appreciation of $5.0 billion from corporate private equity (which reflected $583.2 million of foreign exchange appreciation), $1.4 billion from Strategic Partners (which reflected $17.6 million of foreign exchange depreciation) and $682.8 million Tactical Opportunities (which reflected $161.5 million of foreign exchange appreciation).

Realizations were driven by $6.9 billion from corporate private equity, $2.6 billion from Strategic Partners and $2.3 billion from Tactical Opportunities.

Outflows were driven by $455.6 million from corporate private equity, $298.0 million from Strategic Partners and $233.5 million from Tactical Opportunities.

In our Credit & Insurance segment, an increase of $14.7 billion from $279.9 billion at December 31, 2022 to $294.6 billion at June 30, 2023. The net increase was due to inflows of $28.9 billion and market appreciation of $6.3 billion, offset by outflows of $10.4 billion and realizations of $10.2 billion.

Inflows were driven by $12.0 billion from direct lending, $7.8 billion from liquid credit strategies, $3.2 billion from asset-based finance, $2.7 billion from our energy strategies and $1.3 billion from private placement credit.

Market appreciation was driven by appreciation of $2.5 billion from direct lending (which reflected $154.2 million of foreign exchange appreciation), $2.4 billion from liquid credit strategies (which reflected $624.2 million of foreign exchange appreciation), $456.3 million from mezzanine funds (which reflected $41.2 million of foreign exchange appreciation) and $374.6 million from MLP strategies.

Outflows were driven by $4.6 billion from liquid credit strategies, $3.7 billion from direct lending, $579.4 million from stressed/distressed strategies and $511.1 million from MLP strategies.

Realizations were driven by $4.3 billion from direct lending, $2.8 billion from mezzanine funds, $1.1 billion from liquid credit strategies, $935.8 million from our energy strategies and $810.4 million from stressed/distressed strategies.

Table of Contents

In our Hedge Fund Solutions segment, a decrease of $1.5 billion from $79.7 billion at December 31, 2022 to $78.2 billion at June 30, 2023. The net decrease was due to outflows of $4.3 billion and realizations of $2.3 billion, offset by inflows of $3.6 billion and market appreciation of $1.5 billion.

Outflows were driven by $1.8 billion from commingled products, $1.4 billion from customized solutions and $1.1 billion from liquid and specialized solutions.

Realizations were driven by $2.2 billion from liquid and specialized solutions.

Inflows were driven by $1.9 billion from liquid and specialized solutions, $1.4 billion from customized solutions and $274.6 million from commingled products.

Market appreciation was driven by appreciation of $710.3 million from liquid and specialized solutions (which reflected $31.9 million of foreign exchange depreciation), $559.7 million from customized solutions (which reflected $155.0 million of foreign exchange depreciation) and $256.6 million from commingled products (which reflected $45.9 million of foreign exchange depreciation).

Total Assets Under Management inflows ~~exceeds~~in our Credit & Insurance segment direct lending funds exceed the

Fee-Earning

Assets Under Management ~~inflows due to the following reasons:~~

For BREP, corporate private equity and BXG, due to BREP X, BCP IX and BXG II’s first closings during the three months ended June 30, 2022. Total Assets Under Management inflows are reported at each fund closing, whereas

~~Fee-Earning~~

~~Assets Under Management inflows are reported when a fund’s investment period commences and in each subsequent close.~~

~~For our direct lending funds,~~because Total Assets Under Management inflows are reported at their gross value while, for certain funds,

Fee-Earning

Assets Under Management are reported as net assets, which is the basis on which fees are charged.

~~Offsetting these increases were:~~

~~Realizations of $29.3 billion primarily driven by:~~

~~$19.8 billion in our Real Estate segment driven by $14.5 billion from BREP and~~

~~co-investment,~~

~~$3.1 billion from BREIT, $1.3 billion from BPP and~~

~~co-investment~~

~~and $1.0 billion from BREDS,~~

~~$5.6 billion in our Private Equity segment driven by $2.2 billion from Tactical Opportunities, $1.8 billion from Strategic Partners, and $1.3 billion from corporate private equity, and~~

$3.4 billion in our Credit & Insurance segment driven by $1.4 billion from direct lending, $677.1 million from our energy strategies, $496.4 million from CLOs, $336.5 million from mezzanine funds and $237.6 million from stressed/distressed strategies.

Total Assets Under Management realizations in our ~~Real Estate~~BREP and

co-investment

funds and our Private Equity ~~segments~~segment generally represents the total proceeds and typically exceeds the

Fee-Earning

Assets Under Management ~~realizations which~~realizations.

Fee-Earning

Assets Under Management generally represents only the invested capital.

~~Market activity of $19.3 billion primarily driven by:~~

$8.6 billion of market depreciation in our Credit & Insurance segment driven by depreciation of $4.7 billion from certain liquid credit strategies, $976.1 million from private placement credit, $722.5 million from direct lending, $719.1 million from CLOs, $627.4 million from MLP strategies, $594.9 million from asset-based finance, $250.4 million from BIS, all of which included $1.8 billion of foreign exchange depreciation across the segment,

~~Table of Contents~~

$6.2 billion of market depreciation in our Private Equity segment driven by carrying value decreases in corporate private equity, BIP, Tactical Opportunities and BXG of 6.7%, 4.2%, 2.4% and 8.6%, respectively, partially offset by carrying value increases in Strategic Partners of 5.7%, all of which included $1.4 billion of foreign exchange depreciation across the segment,

~~$3.3 billion of market depreciation in our Real Estate segment driven by carrying value decreases in BREDS and BREP and~~

~~co-investment~~

~~of 1.5% and 1.0%, respectively, partially offset by carrying value increases in Core+ real estate of 2.3%, all of which included $4.8 billion of foreign exchange depreciation across the segment, and~~

~~$1.1 billion of market depreciation in our Hedge Fund Solutions segment driven by market activity within individual investor and specialized solutions.~~

~~Total Assets Under Management market activity in our Real Estate and Private Equity segments generally represents the change in fair value of the investments held and typically exceeds the~~

~~Fee-Earning~~

~~Assets Under Management market activity.~~

~~Outflows of $14.4 billion primarily attributable to:~~

$6.7 billion in our Credit & Insurance segment driven by $4.5 billion from certain liquid credit strategies, $990.3 million from BIS, $654.9 million from MLP strategies, $269.1 million from CLOs and $245.2 million from direct lending,

~~$3.8 billion in our Real Estate segment driven by $2.9 billion from BREIT, $518.7 million from BPP and~~

~~co-investment~~

~~and $436.3 million from BREDS, and~~

$3.3 billion in our Hedge Fund Solutions segment driven by $1.4 billion from commingled products, $1.1 billion from customized solutions and $711.3 million from individual investor and specialized solutions.

~~Total Assets Under Management were $940.8 billion at June 30, 2022, an increase of $59.9 billion, compared to $880.9 billion at December 31, 2021. The net increase was due to:~~

~~Inflows of $138.1 billion primarily related to:~~

~~$65.9 billion in our Real Estate segment driven by $28.9 billion from BREP and~~

~~co-investment,~~

~~$19.2 billion from BREIT, $11.5 billion from BPP and~~

~~co-investment~~

~~and $5.7 billion from BREDS,~~

$36.7 billion in our Credit & Insurance segment driven by $25.2 billion from direct lending, $3.5 billion from CLOs, $2.7 billion from certain liquid credit strategies, $2.4 billion from asset-based finance, $1.5 billion from our energy strategies and $785.0 million from BIS,

$29.5 billion in our Private Equity segment driven by $11.5 billion from corporate private equity, $5.8 billion from Strategic Partners, 5.6 billion from BIP, $3.1 billion from BXG, $2.3 billion from Tactical Opportunities and $1.1 billion from multi-asset products, and

$6.0 billion in our Hedge Fund Solutions segment driven by $4.8 billion from individual investor and specialized solutions, $973.7 million from customized solutions and $251.6 million from commingled products.

~~Total Assets Under Management inflows may exceed~~

~~Fee-Earning~~

~~Assets Under Management inflows due to the reasons discussed above.~~

~~Table of Contents~~

~~Offsetting these increases were:~~

~~Realizations of $52.5 billion primarily driven by:~~

~~$29.4 billion in our Real Estate segment driven by $20.2 billion from BREP and~~

~~co-investment,~~

~~$5.0 billion from BREIT, $2.1 billion from BPP and~~

~~co-investment~~

~~and $2.0 billion from BREDS,~~

$13.3 billion in our Private Equity segment driven by $5.3 billion from corporate private equity, $4.2 billion from Strategic Partners, $3.1 billion from Tactical Opportunities and $493.5 million from BIP, and

$8.9 billion in our Credit & Insurance segment driven by $4.2 billion from direct lending, $1.8 billion from CLOs, $1.1 billion from our energy strategies, $732.8 million from stressed/distressed strategies and $673.3 million from mezzanine funds.

~~Total Assets Under Management realizations in our Real Estate and Private Equity segments generally represents the total proceeds and typically exceeds the~~

~~Fee-Earning~~

~~Assets Under Management realizations which generally represents only the invested capital.~~

~~Outflows of $24.4 billion primarily attributable to:~~

$10.2 billion in our Credit & Insurance segment driven by $5.9 billion from certain liquid credit strategies, $1.7 billion from MLP strategies, $1.3 billion from BIS and $653.4 million from direct lending,

~~$6.1 billion in our Real Estate segment driven by $4.2 billion from BREIT, $1.4 billion from BPP and~~

~~co-investment~~

~~and $530.3 million from BREDS,~~

$6.0 billion in our Hedge Fund Solutions segment driven by $3.2 billion from customized solutions, $1.5 billion from commingled products and $1.3 billion from individual investor and specialized solutions, and

$2.0 billion in our Private Equity segment driven by $548.3 million from Tactical Opportunities, $433.9 million from Strategic Partners, $428.6 million from multi-asset products and $352.8 million from corporate private equity.

~~Market activity of $1.3 billion primarily driven by:~~

$11.4 billion of market depreciation in our Credit & Insurance segment driven by depreciation of $7.9 billion from certain liquid credit strategies, $2.2 billion from private placement credit, $1.1 billion from asset-based finance and $918.7 million from CLOs, partially offset by market appreciation of $1.1 billion from MLP strategies, all of which included $2.2 billion of foreign exchange depreciation across the segment, and

~~Partially offset by $10.2 billion of market appreciation in our Real Estate segment driven by carrying value increases in Core+ real estate and BREP and~~

~~co-investment~~

~~of 9.8% and 9.1%, respectively, partially offset by carrying value decreases in BREDS of 0.4%, all of which included $6.7 billion of foreign exchange depreciation across the segment.~~

~~Total Assets Under Management market activity in our Real Estate and Private Equity segments generally represents the change in fair value of the investments held and typically exceeds the~~

~~Fee-Earning~~

~~Assets Under Management market activity.~~

9194

Table of Contents

Dry Powder

The following presents our Dry Powder as of quarter end of each period:

Note:

Totals may not add due to rounding.

(a)

Represents illiquid drawdown funds, a component of Perpetual Capital and

fee-paying

co-investments;

includes

fee-paying

third party capital as well as general partner and employee capital that does not earn fees. Amounts are reduced by outstanding capital commitments, for which capital has not yet been invested.

~~Table of Contents~~

Net Accrued Performance Revenues

The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of June 30, ~~2022~~2023 and ~~2021.~~2022. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 17. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. See “—

Non-GAAP

Financial Measures” for our reconciliation of Net Accrued Performance Revenues.

June 30,


2022

2021



      (Dollars in Millions)

Real Estate

BREP IV
   $ 7    $ 19
BREP V
   3    26
BREP VI
   32    42
BREP VII
   164    300
BREP VIII
   841    626
BREP IX
   1,015    359
BREP Europe IV
   83    89
BREP Europe V
   120    312
BREP Europe VI
   80    60
BREP Asia I
   114    107
BREP Asia II
   153    98
BPP
   755    265
BREIT
   —    247
BREDS
   15    32
BTAS
   111    6




Total Real Estate (a)
   3,491    2,591




Private Equity

BCP IV
   8    9
BCP V
   3    39
BCP VI
   407    740
BCP VII
   975    1,351
BCP VIII
   235    89
BCP Asia I
   195    213
BEP I
   27    28
BEP III
   76    47
BCEP I
   224    170
Tactical Opportunities
   311    374
BXG
   —    59
Strategic Partners
   629    262
BIP
   67    81
BXLS
   24    23
BTAS/Other
   228    151




Total Private Equity (a)
   3,408    3,637




Hedge Fund Solutions
   305    300




Credit & Insurance
   271    233




Total Blackstone Net Accrued Performance Revenues
   $ 7,476    $ 6,761

Table of Contents


	June 30,
	2023		2022

	(Dollars in Millions)
Real Estate
BREP IV	$	6	$	7
BREP V		4		3
BREP VI		17		32
BREP VII		60		164
BREP VIII		707		841
BREP IX		987		1,015
BREP Europe IV		36		83
BREP Europe V		19		120
BREP Europe VI		90		80
BREP Asia I		89		114
BREP Asia II		—		153
BPP		512		755
BREDS		12		15
BTAS		17		111

Total Real Estate (a)		2,556		3,491

Private Equity
BCP IV		6		8
BCP V		41		3
BCP VI		411		407
BCP VII		900		975
BCP VIII		297		235
BCP Asia I		94		195
BEP I		29		27
BEP II		73		—
BEP III		202		76
BCEP I		205		224
Tactical Opportunities		236		311
Strategic Partners		527		629
BIP		189		67
BXLS		24		24
BTAS/Other		169		228

Total Private Equity (a)		3,402		3,408

Credit & Insurance		247		271

Hedge Fund Solutions		265		305

Total Blackstone Net Accrued Performance Revenues	$	6,469	$	7,476

Note:

Totals may not add due to rounding.

(a)	Real Estate and Private Equity include co-investments, as applicable.

~~Table of Contents~~

For the twelve months ended June 30, ~~2022,~~2023, Net Accrued Performance Revenues receivable ~~increased~~decreased due to net realized distributions of $1.7 billion, partially offset by Net Performance Revenues of ~~$6.0 billion offset by net realized distributions~~$725.8 million.

Table of ~~$5.3 billion.~~Contents

Invested Performance Eligible Assets Under Management

The following presents our Invested Performance Eligible Assets Under Management as of quarter end for each period:

Note:

Totals may not add due to rounding.

Table of Contents

~~In our Real Estate segment, net Total Assets Under Management growth in BREIT and BPP and~~

~~co-investment~~

~~resulted in increases of $5.0 billion and $7.7 billion, respectively.~~

In our Credit & Insurance segment, ~~net Total Assets Under Management~~ growth in ~~direct lending~~BIS resulted in an increase of ~~$8.9 billion, partially offset by a decrease of $5.6 billion related to BIS.~~$1.7 billion.

In our Private Equity segment, ~~net Total Assets Under Management~~ growth in BIP resulted in an increase of ~~$2.3~~$907.2 million.

In our Real Estate segment, growth in insurance capital managed in the Real Estate segment and growth in BXMT and BPP resulted in increases of $2.2 billion, $570.5 million and $412.3 million, respectively. These increases were partially offset by a decrease in BREIT of $1.9 billion.

~~In our Real Estate segment, net Total Assets Under Management growth in BREIT and BPP and~~

~~co-investment~~

~~resulted in increases of $14.2 billion and $12.8 billion, respectively.~~

In our Credit & Insurance segment, ~~net Total Assets Under Management~~ growth in ~~direct lending~~BIS resulted in an increase of ~~$18.3~~$6.8 billion.

In our Real Estate segment, growth in insurance capital managed in the Real Estate segment resulted in an increase of $6.9 billion, partially offset by ~~a decrease~~decreases of ~~$10.1~~$2.0 billion ~~related to BIS.~~and $747.8 million in BPP and BREIT, respectively.

In our Private Equity segment, ~~net Total Assets Under Management~~ growth in BIP resulted in an increase of ~~$6.7~~$1.8 billion.

Selected Perpetual Capital Strategies (k)


Fund (Inception Year) (a)	Investment Strategy		Total AUM		Total Net Return (l)			Investment Strategy		Total AUM		Total Net Return (l)

	(Dollars in Thousands, Except Where Noted)							(Dollars in Thousands, Except Where Noted)
Real Estate
BPP - Blackstone Property Partners (2013) (m)		Core+ Real Estate	$	73,817,041		12	%		Core+ Real Estate	$	71,011,944		9	%
BREIT - Blackstone Real Estate Income Trust (2017) (n)		Core+ Real Estate		68,281,628		13	%		Core+ Real Estate		67,775,564		11	%
BXMT - Blackstone Mortgage Trust (2013) (o)		Real Estate Debt		7,277,274		9	%
BREIT - Class I (o)									Core+ Real Estate				12	%
BXMT - Blackstone Mortgage Trust (2013) (p)									Real Estate Debt		6,170,531		6	%
Private Equity
BIP - Blackstone Infrastructure Partners (2019) (p)		Infrastructure		24,538,314		17	%
Hedge Fund Solutions
BSCH - Blackstone Strategic Capital Holdings (2014) (q)		GP Stakes		10,245,103		16	%
BIP - Blackstone Infrastructure Partners (2019) (q)									Infrastructure		29,117,203		14	%
Credit
BXSL - Blackstone Secured Lending Fund (2018) (r)		U.S. Direct Lending		10,691,421		10	%		U.S. Direct Lending		10,905,781		10	%
BCRED - Blackstone Private Credit Fund (2021) (s)		U.S. Direct Lending		53,085,115		8	%		U.S. Direct Lending		58,949,896		9	%
BCRED - Class I (t)									U.S. Direct Lending				9	%
Hedge Fund Solutions
BSCH - Blackstone Strategic Capital Holdings (2014) (u)									GP Stakes		9,093,463		11	%

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

n/m	Not meaningful generally due to the limited time since initial investment.

n/a	Not applicable.

SMA	Separately managed account.

*	Represents funds that are currently in their investment period.

(a)	Excludes investment vehicles where Blackstone does not earn fees.

(b)	Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.

(c)	Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance Revenues, divided by invested capital.

(d)

Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to June 30, ~~2022~~2023 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner cash flows. Initial inception date of cash flows may differ from the Investment Period Beginning Date.

(e)	The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.

(f)	BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues.

(g)	BREDS High-Yield represents the flagship real estate debt drawdown funds only.

(h)	Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.

(i)

~~Realizations are treated as return of capital until fully recovered~~Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC and ~~therefore unrealized and realized MOICs are not applicable. Returns are calculated from results that~~Total Net IRRs are reported on a ~~three month~~three-month lag ~~from Strategic Partners’ fund financial statements~~ and therefore do not include the impact of economic and market activities in the current quarter. Prior to June 30, 2023, the calculation of such metrics also incorporated investor cash flow information from the current quarter to the extent available. Effective June 30, 2023, such current quarter cash flow information is no longer incorporated. Committed

Table of Contents

Capital and Available Capital continue to be presented as of the current quarter. We believe the updated presentation is more reflective of the Strategic Partners’ investor experience. Realizations are treated as returns of capital until fully recovered and therefore Unrealized and Realized MOICs and Realized Net IRRs are not applicable. Effective June 30, 2023, Strategic Partners

I-V

and Strategic Partners Real Estate, SMA and Other amounts exclude investment vehicles where Blackstone does not earn fees, which were previously included.

(j)	Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.

~~101~~

~~Table of Contents~~

(k)

Represents the performance for select Perpetual Capital Strategies; strategies excluded consist primarily of (1) investment strategies that have been investing for less than one year, (2) ~~most~~ perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees.

(l)

Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, ~~2022~~2023 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of investor cash flows. Initial inception date of cash flows occurred during the Inception Year.

(m)

BPP represents the aggregate Total Assets Under Management and Total Net Return of the BPP Platform, which comprises over 30 funds,

co-investment

and separately managed account vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of June 30, ~~2022,~~2023, these vehicles represented ~~$3.2~~$2.9 billion of Total Assets Under Management.

(n)

The BREIT Total Net Return reflects a per share blended return, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. ~~These returns are~~This return is not representative of the ~~returns~~return experienced by any particular investor or share class. Total Net Return is presented on an annualized basis and is from January 1, 2017.

(o)

Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT, Class I Total Net Return is presented on an annualized basis and is from January 1, 2017.

(p)	The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since inception, May 22, 2013, through June 30, 2023, assuming reinvestment of all dividends received during the period.

(q)	Including co-investment vehicles, BIP Total Assets Under Management is $37.0 billion.

(r)

The BXSL Total Assets Under Management and Total Net Return are reported on a

one-quarter

lag. Refer to BXSL public filings for current quarter results. BXSL Total Net Return reflects the change in Net Asset Value (“NAV”) per share, plus distributions per share (assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are presented on an annualized basis and are from ~~January 1, 2017.~~November 20, 2018.

~~(o)~~(s)

The ~~BXMT~~BCRED Total Net Return reflects a per share blended return, ~~reflects annualized market return of~~assuming BCRED had a ~~shareholder invested in BXMT since inception through June 30, 2022, assuming~~single share class, reinvestment of all dividends received during the ~~period.~~period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. This return is not representative of the return experienced by any particular investor or share class. Total Net Return ~~incorporates the closing NYSE stock price~~is presented on an annualized basis and is from January 7, 2021. Total Assets Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset value as of June 30, ~~2022.~~2023 was $23.8 billion.

(t)

Represents the Total Net Return for BCRED’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. Class I Total Net Return is presented on an annualized basis and is from ~~May 22, 2013.~~January 7, 2021.

~~(p)~~(u)

~~Including~~

~~co-investment~~

~~vehicles that do not pay fees, BIP Total Assets Under Management is $29.7 billion.~~

~~(q)~~

BSCH represents the aggregate Total Assets Under Management and Total Net Return of BSCH I and BSCH II funds that invest as part of the GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. Including

co-investment

vehicles that do not pay fees, BSCH Total Assets Under Management is ~~$11.1 billion.~~

~~(r)~~

The BXSL Total Assets Under Management and Total Net Return are presented as of March 31, 2022. BXSL Total Net Return reflects the change in NAV per share, plus distributions per share (assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are presented on an annualized basis and are from November 20, 2018.

~~(s)~~

The BCRED Total Net Return reflects a per share blended return, assuming BCRED had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. These returns are not representative of the returns experienced by any particular investor or share class. Total Net Returns are presented on an annualized basis and are from January 7, 2021. Total Assets Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset value as of June 30, 2022 was $21.0$10.0 billion.

Table of Contents

Management Fees, Net were $271.8 million for the six months ended June 30, 2023, a decrease of $23.1 million, compared to $294.9 million for the six months ended June 30, 2022, primarily due to a decrease in Base Management Fees. Base Management Fees decreased ~~$10.2~~$22.0 million primarily driven by a decrease in

Fee-Earning

Assets Under Management in ~~customized solutions~~commingled products and ~~commingled products.~~

~~Net Realizations~~

Net Realizations were $3.6 million for the three months ended June 30, 2022, a decrease of $10.0 million, compared to $13.6 million for the three months ended June 30, 2021. The decrease in Net Realizations was primarily attributable to decreases of $9.9 million in Realized Performance Revenues and $3.7 million in Realized Principal Investment Income (Loss), partially offset by a decrease of $3.5 million in Realized Performance Compensation.

~~114~~

~~Table of Contents~~

Realized Performance Revenues were $7.2 million for the three months ended June 30, 2022, a decrease of $9.9 million, compared to $17.1 million for the three months ended June 30, 2021. The decrease was primarily due to lower Realized Performance Revenues in our customized solutions and commingled products.

Realized Principal Investment Income (Loss) was $(1.5) million for the three months ended June 30, 2022, a decrease of $3.7 million, compared to $2.1 million for the three months ended June 30, 2021. The decrease was primarily due to lower Realized Principal Investment Income in individual investorliquid and specialized solutions.

~~Realized Performance~~Fee Related Compensation was $2.1 million for the three months ended June 30, 2022, a decrease of $3.5 million, compared to $5.6 million for the three months ended June 30, 2021. The decrease was primarily due to the decrease in Realized Performance Revenues.

~~Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021~~

~~Segment Distributable Earnings were $179.0~~$91.6 million for the six months ended June 30, ~~2022,~~2023, a decrease of ~~$87.7~~$13.5 million, compared to $266.7 million for the six months ended June 30, 2021. The decrease in Segment Distributable Earnings was attributable to decreases of $52.3 million in Fee Related Earnings and $35.4 million in Net Realizations.

~~Fee Related Earnings~~

Fee Related Earnings were $140.6 million for the six months ended June 30, 2022, a decrease of $52.3 million, compared to $192.9 million for the six months ended June 30, 2021. The decrease in Fee Related Earnings was attributable to an increase of $27.6 million in Fee Related Compensation and a decrease of $16.5 million in Management Fees, Net.

~~Fee Related Compensation was~~ $105.1 million for the six months ended June 30, ~~2022, an increase~~2022. The decrease was primarily due to a decrease in Management Fees, Net, on which a portion of ~~$27.6 million, compared to $77.5~~Fee Related Compensation is based.

Net Realizations

Net Realizations were $64.0 million for the six months ended June 30, ~~2021. The~~2023, an increase ~~was primarily due to changes in compensation accruals.~~

~~Management Fees, Net were $294.9~~of $25.6 million, ~~for the six months ended June 30, 2022, a decrease of $16.5 million,~~or 67%, compared to ~~$311.4 million for the six months ended June 30, 2021, primarily due to a decrease in Base Management Fees. Base Management Fees decreased $15.7 million primarily driven by a decrease in~~

~~Fee-Earning~~

~~Assets Under Management in customized solutions and commingled products.~~

~~Net Realizations~~

~~Net Realizations were~~ $38.4 million for the six months ended June 30, ~~2022, a decrease~~2022. The increase in Net Realizations was attributable to an increase of ~~$35.4~~$49.0 million ~~compared to $73.8~~in Realized Performance Revenues, partially offset by an increase of $20.6 million in Realized Performance Compensation.

Realized Performance Revenues were $85.1 million for the six months ended June 30, ~~2021. The decrease in Net Realizations was attributable to decreases~~2023, an increase of ~~$24.3 million in Realized Principal Investment Income and $12.5 million in Realized Performance Revenues.~~

~~Realized Principal Investment Income (Loss) was $13.4 million for the six months ended June 30, 2022, a decrease of $24.3~~$49.0 million, compared to $37.7 million for the six months ended June 30, 2021. The decrease was primarily due to the segment’s allocation of the gain recognized in connection with the Pátria Sale Transaction during the three months ended March 31, 2021. For additional information, see “— Consolidated Results of Operations — Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021

~~— Revenues.”~~

~~115~~

~~Table of Contents~~

~~Realized Performance Revenues were~~ $36.1 million for the six months ended June 30, ~~2022,~~2022. The increase was primarily due to reduced Realized Performance Revenues in liquid and specialized solutions offset by a decrease ~~of $12.5 million, compared to $48.6~~in customized solutions.

Realized Performance Compensation was $31.7 million for the six months ended June 30, ~~2021.~~2023, an increase of $20.6 million, compared to $11.1 million for the six months ended June 30, 2022. The ~~decrease~~increase was primarily due to ~~lower~~the increase in Realized Performance ~~Revenues in customized solutions and commingled products, partially offset by increased Realized Performance Revenues in individual investor and specialized solutions.~~Revenues.

Composite Returns

Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar returns.

The following table presents the return information of the BAAM Principal Solutions Composite:


																																																Three											Six												Average Annual Returns (a)
	Three											Six												Average Annual Returns (a)																								Months Ended											Months Ended												Periods Ended
	Months Ended June 30,											Months Ended June 30,												Periods Ended June 30, 2022																								June 30,											June 30,												June 30, 2023
	2022					2021						2022						2021						One Year						Three Year						Five Year						Historical						2023						2022					2023						2022						One Year						Three Year						Five Year						Historical
Composite	Gross			Net		Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net		Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net
BAAM Principal Solutions Composite (b)		1	%		-		3	%		3	%		2	%		1	%		6	%		5	%		4	%		3	%		6	%		5	%		6	%		5	%		7	%		6	%		2	%		2	%		1	%		-		3	%		2	%		2	%		1	%		6	%		5	%		8	%		7	%		6	%		5	%		7	%		6	%

122

Table of Contents

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.

(a)	Composite returns present a summarized asset-weighted return measure to evaluate the overall performance of the applicable class of Blackstone Funds.

(b)

BAAM’s Principal Solutions (“BPS”) Composite covers the period from January 2000 to present, although BAAM’s inception date is September 1990. The BPS Composite includes only BAAM-managed commingled and customized multi-manager funds and accounts and does not include BAAM’s individual investor solutions (liquid alternatives), strategic capital (seeding and GP minority stakes), strategic opportunities

(co-invests),

and advisory

(non-discretionary)

platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation and, in the case of net returns,

non-fee-paying

assets are also excluded. The funds/accounts that comprise the BPS Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-alone fund/account. The BPS Composite is not an investible product and, as such, the performance of the BPS Composite does not represent the performance of an actual fund or account. The historical return is from January 1, 2000.

~~116~~

~~Table of Contents~~

Operating Metrics

Total Assets were $41.6 billion as of June 30, ~~2022, an increase~~2023, a decrease of ~~$434.9~~$941.4 million, from December 31, ~~2021.~~2022. The ~~increase~~decrease in Total Assets was principally due to ~~an increase~~a decrease of ~~$1.8~~$1.3 billion in total assets attributable to consolidated ~~Blackstone funds,~~operating partnerships, partially offset by ~~a decrease~~an increase of ~~$763.1~~$284.6 million in total assets attributable to consolidated ~~operating partnerships. The increase in total assets attributable to consolidated~~ Blackstone ~~funds was primarily due to an increase of $1.7 billion in Investments. The increase in Investments was primarily due to the consolidation of five Blackstone funds.~~Funds. The decrease in total assets attributable to consolidated operating partnerships was primarily due to decreases of ~~$2.5 billion in Investments and $717.2~~$971.8 million ~~in Due from Affiliates, partially offset by an increase of $2.1 billion~~ in Cash and Cash ~~Equivalents.~~Equivalents and $970.7 million in Investments, respectively. The decrease in Investments was primarily due to depreciation in the value of Blackstone’s interests in its real estate and private equity investments. The decrease in Due from Affiliates was primarily due to a decrease in the receivable due from

~~non-consolidated~~

~~entities and portfolio companies. The increase~~ in Cash and Cash Equivalents was primarily due to ongoing operating activities including the ~~issuance~~payoff at maturity of ~~$1.5 billion~~Blackstone’s 4.750% senior note due February 15, 2023. The decrease in Investments was primarily due to unrealized depreciation across our Real Estate segment and sales of ~~notes on January 10, 2022 and~~

€

~~500 million of notes on June 1, 2022.~~investments within Corporate Treasury Investments. The ~~other net variances of the~~increase in total assets attributable to ~~the consolidated operating partnerships and~~ consolidated Blackstone ~~funds were relatively unchanged.~~Funds was primarily due to an increase of $354.2 million in Investments. The increase in Investments was primarily due to the consolidation of one CLO and unrealized appreciation across our Private Equity segment.

Total Liabilities were ~~$20.3~~$22.5 billion as of June 30, ~~2022, an increase~~2023, a decrease of ~~$806.8~~$350.9 million, from December 31, ~~2021.~~2022. The ~~increase~~decrease in Total Liabilities was principally due to ~~an increase~~a decrease of ~~$822.6~~$745.9 million in total liabilities attributable to consolidated operating ~~partnerships. The~~partnerships, partially offset by an increase of $393.6 million in total liabilities attributable to ~~the~~consolidated Blackstone Funds. The decrease in total liabilities attributable to consolidated operating partnerships was primarily due to ~~an increase~~decreases of ~~$1.6 billion in Loans Payable, partially offset by a decrease of $1.1 billion~~$415.9 million in Accrued Compensation and ~~Benefits. The increase~~Benefits and $314.0 million in Loans ~~Payable was primarily due to the issuance of $1.5 billion of notes on January 10, 2022 and~~

€

~~500 million of notes on June 1, 2022.~~Payable. The decrease in Accrued Compensation and Benefits was primarily due to a decrease in performance compensation. The ~~other net variances~~decrease in Loans Payable was primarily due to the payoff at maturity of senior notes, partially offset by the consolidation of one Blackstone operating partnership. The increase in total liabilities attributable to consolidated Blackstone Funds was primarily due to an increase of $264.2 million in Loans Payable. The increase in Loans Payable was primarily due to the ~~consolidated operating partnerships were relatively unchanged.~~consolidation of one CLO.

In light of the disruption to the U.S. regional banking system during the six months ended June 30, 2023, Blackstone assessed its exposure and determined that it had no material exposure to such banks. Blackstone has taken mitigating actions to reduce the limited and isolated areas of exposure identified and continues to monitor developments.

Sources and Uses of Liquidity

We have multiple sources of liquidity to meet our capital needs, including annual cash flows, accumulated earnings in our businesses, the proceeds from our issuances of senior notes, liquid investments we hold on our balance sheet and access to our ~~$4.1~~$4.135 billion committed revolving credit facility. On June 3, 2022, Blackstone, through the Issuer, amended and restated its revolving credit facility to, among other things, increase the amount of available borrowings to $4.1 billion and extended the maturity date from November 24, 2025 to June 3, 2027. As of June 30, ~~2022,~~2023, Blackstone had ~~$4.2~~$3.3 billion in Cash and Cash Equivalents, ~~$810.7~~$707.1 million invested in Corporate Treasury Investments and $3.8 billion in Other Investments (which included ~~$1.3~~$3.4 billion of liquid investments), against ~~$9.5~~$10.7 billion in borrowings from our bond issuances, and no borrowings outstanding under our revolving credit facility.

~~On June 1, 2022, Blackstone, through the Issuer, issued~~

€

500 million aggregate principal amount of 3.500% senior notes due June 1, 2034. For additional information on Blackstone’s senior notes see Note 12. “Borrowings” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing and “— Notable Transactions.”

In addition to the cash we received from our notes offerings and availability under our revolving credit facility, we expect to receive (a) cash generated from operating activities, (b) Performance ~~Allocations and Incentive Fee~~Revenue realizations, and (c) realizations on the fund investments that we make. The amounts received from these three sources in particular may vary substantially from year to year and quarter to quarter depending on the frequency and size of realization events or net returns experienced by our investment funds. Our available capital could be adversely affected if there are prolonged periods of few substantial realizations from our investment funds accompanied by substantial capital calls for new investments from those investment funds. Therefore, Blackstone’s commitments to our funds are taken into consideration when managing our overall liquidity and cash position.

~~127~~

Table of Contents

We expect that our primary liquidity needs will be cash to (a) provide capital to facilitate the growth of our existing businesses, which principally includes funding our general partner and

co-investment

commitments to our funds, (b) provide capital for business expansion, (c) pay operating expenses, including cash compensation to our employees and other obligations as they arise, (d) fund modest capital expenditures, (e) repay borrowings and related interest costs, (f) pay income taxes, (g) repurchase shares of our common stock and Blackstone Holdings Partnership Units pursuant to our repurchase program and (h) pay dividends to our ~~shareholders~~stockholders and distributions to the holders of Blackstone Holdings Partnership Units. For a tabular presentation of Blackstone’s contractual obligations and the expected timing of such see “— Contractual Obligations.”

Capital Commitments

Our own capital commitments to our funds, the funds we invest in and our investment strategies as of June 30, ~~2022~~2023 consisted of the following:



					Senior Managing Directors
	Blackstone and				and Certain Other
	General Partner (a)				Professionals (b)
	Original		Remaining		Original		Remaining
Fund	Commitment		Commitment		Commitment		Commitment

	(Dollars in Thousands)
Real Estate
BREP VI	$	750,000	$	36,809	$	150,000	$	12,270
BREP VII		300,000		31,843		100,000		10,614
BREP VIII		300,000		41,613		100,000		13,871
BREP IX		300,000		54,549		100,000		18,183
BREP X		300,000		285,361		100,000		95,120
BREP Europe III		100,000		11,257		35,000		3,752
BREP Europe IV		130,000		22,477		43,333		7,492
BREP Europe V		150,000		25,647		43,333		7,409
BREP Europe VI		130,000		52,892		43,333		17,631
BREP Europe VII		130,000		130,000		43,333		43,333
BREP Asia I		50,392		10,342		16,797		3,447
BREP Asia II		70,707		14,452		23,569		4,817
BREP Asia III		81,078		70,036		27,026		23,345
BREDS III		50,000		13,499		16,667		4,500
BREDS IV		50,000		15,910		49,113		15,628
BREDS V		50,000		50,000		49,660		49,660
BPP		312,821		32,132		—		—
Other (c)		29,597		8,720		—		—

Total Real Estate		3,284,595		907,539		941,164		331,072

continued...

Senior Managing Directors

Blackstone and

and Certain Other

General Partner

Professionals (a)

Original

Remaining

Original

Remaining
Fund

Commitment

Commitment

Commitment

Commitment


(Dollars in Thousands)
Real Estate

BREP VI
   $ 750,000    $ 36,809    $ 150,000    $ 12,270
BREP VII
   300,000    33,394    100,000    11,131
BREP VIII
   300,000    43,144    100,000    14,381
BREP IX
   300,000    103,047    100,000    34,349
BREP X
   300,000    300,000    100,000    100,000
BREP Europe III
   100,000    11,989    35,000    3,996
BREP Europe IV
   130,000    24,074    43,333    8,025
BREP Europe V
   150,000    26,592    43,333    7,682
BREP Europe VI
   130,000    84,596    43,333    28,199
BREP Asia I
   50,000    10,141    16,667    3,380
BREP Asia II
   70,707    16,215    23,569    5,405
BREP Asia III
   78,373    78,373    26,124    26,124
BREDS III
   50,000    13,499    16,667    4,500
BREDS IV
   50,000    26,187    —    —
BPP
   312,000    42,514    —    —
Other (b)
   24,091    6,796    —    —








Total Real Estate (c)
   3,095,171    857,370    798,026    259,442

Table of Contents


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BX	New York Stock Exchange


		Page
Part I.	Financial Information

Item 1.	Financial Statements		6

	Unaudited Condensed Consolidated Financial Statements:

	Condensed Consolidated Statements of Financial Condition as of June 30, ~~2022~~2023 and December 31, ~~2021~~2022		6

	Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, ~~2022~~2023 and ~~2021~~2022		8

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, ~~2022~~2023 and ~~2021~~2022		9

	Condensed Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, ~~2022~~2023 and ~~2021~~2022		10

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, ~~2022~~2023 and ~~2021~~2022		14

	Notes to Condensed Consolidated Financial Statements		16

Item 1A.	Unaudited Supplemental Presentation of Statements of Financial Condition		6567

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		6769

Item 3.	Quantitative and Qualitative Disclosures About Market Risk		~~141~~142

Item 4.	Controls and Procedures		~~141~~142

Part II.	Other Information

Item 1.	Legal Proceedings		~~142~~

~~Item 1A.~~	~~Risk Factors~~		~~142~~

~~Item 2.~~	~~Unregistered Sales of Equity Securities and Use of Proceeds~~		143

Item 3. 1A.	~~Defaults Upon Senior Securities~~Risk Factors		143

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities		144

Item 3.	Defaults Upon Senior Securities		144

Item 4.	Mine Safety Disclosures		~~143~~144

Item 5.	Other Information		~~143~~144

Item 6.	Exhibits		~~144~~145

Signatures			~~146~~147


	June 30,			December 31,
	2023			2022
Assets
Cash and Cash Equivalents	$	3,280,204		$	4,252,003
Cash Held by Blackstone Funds and Other		215,444			241,712
Investments		27,048,621			27,553,251
Accounts Receivable		664,028			462,904
Due from Affiliates		4,294,437			4,146,707
Intangible Assets, Net		219,221			217,287
Goodwill		1,890,202			1,890,202
Other Assets		905,454			800,458
Right-of-Use Assets		888,190			896,981
Deferred Tax Assets		2,176,983			2,062,722

Total Assets	$	41,582,784		$	42,524,227


Liabilities and Equity
Loans Payable	$	12,299,855		$	12,349,584
Due to Affiliates		2,092,837			2,118,481
Accrued Compensation and Benefits		5,685,879			6,101,801
Securities Sold, Not Yet Purchased		3,821			3,825
Repurchase Agreements		18,262			89,944
Operating Lease Liabilities		1,013,813			1,021,454
Accounts Payable, Accrued Expenses and Other Liabilities		1,377,838			1,158,071

Total Liabilities		22,492,305			22,843,160


Commitments and Contingencies

Redeemable Non-Controlling Interests in Consolidated Entities		1,626,349			1,715,006


Equity
Stockholders’ Equity of Blackstone Inc.
Common Stock, $0.00001 par value, 90 billion shares authorized, (713,551,859 shares issued and outstanding as of June 30, 2023; 710,276,923 shares issued and outstanding as of December 31, 2022)		7			7
Series I Preferred Stock, $0.00001 par value, 999,999,000 shares authorized, (1 share issued and outstanding as of June 30, 2023 and December 31, 2022)		—			—
Series II Preferred Stock, $0.00001 par value, 1,000 shares authorized, (1 share issued and outstanding as of June 30, 2023 and December 31, 2022)		—			—
Additional Paid-in-Capital		6,076,367			5,935,273
Retained Earnings		1,160,278			1,748,106
Accumulated Other Comprehensive Loss		(17,205	)		(27,475	)

Total Stockholders’ Equity of Blackstone Inc.		7,219,447			7,655,911
Non-Controlling Interests in Consolidated Entities		5,174,961			5,056,480
Non-Controlling Interests in Blackstone Holdings		5,069,722			5,253,670

Total Equity		17,464,130			17,966,061

Total Liabilities and Equity	$	41,582,784		$	42,524,227


	June 30,			December 31,
	2022			2021
Assets
Cash and Cash Equivalents	$	4,183,380		$	2,119,738
Cash Held by Blackstone Funds and Other		129,276			79,994
Investments (including assets pledged of $152,529 and $63,044 at June 30, 2022 and December 31, 2021, respectively)		27,323,758			28,665,043
Accounts Receivable		774,137			636,616
Due from Affiliates		3,891,958			4,656,867
Intangible Assets, Net		246,988			284,384
Goodwill		1,890,202			1,890,202
Other Assets		658,298			492,936
Right-of-Use Assets		886,911			788,991
Deferred Tax Assets		1,646,400			1,581,637

Total Assets	$	41,631,308		$	41,196,408


Liabilities and Equity
Loans Payable	$	9,365,274		$	7,748,163
Due to Affiliates		2,001,391			1,906,098
Accrued Compensation and Benefits		6,765,492			7,905,070
Securities Sold, Not Yet Purchased		27,029			27,849
Repurchase Agreements		152,529			57,980
Operating Lease Liabilities		993,875			908,033
Accounts Payable, Accrued Expenses and Other Liabilities		991,620			937,169

Total Liabilities		20,297,210			19,490,362


Commitments and Contingencies		0			0

Redeemable Non-Controlling Interests in Consolidated Entities		1,275,491			68,028


Equity
Stockholders’ Equity of Blackstone Inc.
Common Stock, $0.00001 par value, 90 billion shares authorized, (706,476,877 shares issued and outstanding as of June 30, 2022; 704,339,774 shares issued and outstanding as of December 31, 2021)		7			7
Series I Preferred Stock, $0.00001 par value, 999,999,000 shares authorized, (1 share issued and outstanding as of June 30, 2022 and December 31, 2021)		—			—
Series II Preferred Stock, $0.00001 par value, 1,000 shares authorized, (1 share issued and outstanding as of June 30, 2022 and December 31, 2021)		—			—
Additional Paid-in-Capital		5,870,285			5,794,727
Retained Earnings		2,803,100			3,647,785
Accumulated Other Comprehensive Loss		(42,225	)		(19,626	)

Total Stockholders’ Equity of Blackstone Inc.		8,631,167			9,422,893
Non-Controlling Interests in Consolidated Entities		5,281,244			5,600,653
Non-Controlling Interests in Blackstone Holdings		6,146,196			6,614,472

Total Equity		20,058,607			21,638,018

Total Liabilities and Equity	$	41,631,308		$	41,196,408


Delaware (State or other jurisdiction of incorporation or organization)		20-8875684 (I.R.S. Employer Identification No.)


	Shares of Blackstone Inc. (a)			Blackstone Inc. (a)
												Accumulated															Redeemable
												Other						Non-			Non-						Non-
												Compre-						Controlling			Controlling						Controlling
						Additional			Retained			hensive			Total			Interests in			Interests in						Interests in
	Common			Common		Paid-in-			Earnings			Income			Stockholders’			Consolidated			Blackstone			Total			Consolidated
	Stock			Stock		Capital			(Deficit)			(Loss)			Equity			Entities			Holdings			Equity			Entities
Balance at March 31, 2023		712,794,968		$	7	$	5,957,054		$	1,156,109		$	(22,333	)	$	7,090,837		$	5,058,090		$	4,920,201		$	17,069,128		$	1,644,697
Net Income		—			—		—			601,274			—			601,274			89,436			495,309			1,186,019			17,688
Currency Translation Adjustment		—			—		—			—			5,128			5,128			—			(1,067	)		4,061			12,831
Capital Contributions		—			—		—			—			—			—			183,351			2,412			185,763			41,188
Capital Distributions		—			—		—			(597,105	)		—			(597,105	)		(155,466	)		(458,048	)		(1,210,619	)		(90,055	)
Transfer of Non-Controlling Interests in Consolidated Entities		—			—		—			—			—			—			(450	)		—			(450	)		—
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders		—			—		1,918			—			—			1,918			—			—			1,918			—
Equity-Based Compensation		—			—		193,545			—			—			193,545			—			125,896			319,441			—
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock		529,948			—		(5,097	)		—			—			(5,097	)		—			—			(5,097	)		—
Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units		(1,000,000	)		—		(86,034	)		—			—			(86,034	)		—			—			(86,034	)		—
Change in Blackstone Inc.’s Ownership Interest		—			—		1,918			—			—			1,918			—			(1,918	)		—			—
Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock		1,226,943			—		13,063			—			—			13,063			—			(13,063	)		—			—

Balance at June 30, 2023		713,551,859		$	7	$	6,076,367		$	1,160,278		$	(17,205	)	$	7,219,447		$	5,174,961		$	5,069,722		$	17,464,130		$	1,626,349


	June 30, 2022								December 31, 2021
	Assets				Liabilities				Assets				Liabilities
			Fair				Fair				Fair				Fair
	Notional		Value		Notional		Value		Notional		Value		Notional		Value
Freestanding Derivatives
Blackstone
Interest Rate Contracts	$	690,840	$	139,430	$	614,600	$	42,341	$	609,132	$	143,349	$	692,442	$	138,677
Foreign Currency Contracts		891,070		12,874		1,008,220		14,653		217,161		1,858		572,643		6,143
Credit Default Swaps		2,007		349		9,463		1,433		2,007		194		9,916		1,055

		1,583,917		152,653		1,632,283		58,427		828,300		145,401		1,275,001		145,875

Investments of Consolidated Blackstone Funds
Foreign Currency Contracts		132,289		2,405		506		2		20,764		339		54,300		370
Interest Rate Contracts		596,327		26,577		—		—		—		—		14,000		764
Credit Default Swaps		3,401		585		6,814		1,173		3,401		321		22,865		799

		732,017		29,567		7,320		1,175		24,165		660		91,165		1,933

	$	2,315,934	$	182,220	$	1,639,603	$	59,602	$	852,465	$	146,061	$	1,366,166	$	147,808


	June 30, 2023
	Level I		Level II		Level III		NAV		Total
Assets
Cash and Cash Equivalents	$	446,001	$	—	$	—	$	—	$	446,001

Investments
Investments of Consolidated Blackstone Funds
Equity Securities, Partnerships and LLC Interests (a)		9,331		132,755		4,421,124		599,142		5,162,352
Debt Instruments		—		230,611		18,727		—		249,338
Freestanding Derivatives		—		79,083		—		—		79,083

Total Investments of Consolidated Blackstone Funds		9,331		442,449		4,439,851		599,142		5,490,773
Corporate Treasury Investments		106,037		595,544		5,498		—		707,079
Other Investments		1,318,830		2,000,511		85,355		6,374		3,411,070

Total Investments		1,434,198		3,038,504		4,530,704		605,516		9,608,922

Accounts Receivable - Loans and Receivables		—		—		76,861		—		76,861

Other Assets - Freestanding Derivatives		885		181,761		3,417		—		186,063

	$	1,881,084	$	3,220,265	$	4,610,982	$	605,516	$	10,317,847

Liabilities
Loans Payable - CLO Notes Payable	$	—	$	264,234	$	—	$	—	$	264,234

Securities Sold, Not Yet Purchased		3,821		—		—		—		3,821

Accounts Payable, Accrued Expenses and Other Liabilities
Freestanding Derivatives (b)		142		92,060		221,456		—		313,658
Contingent Consideration (c)		—		—		800		—		800
Corporate Treasury Commitments (d)		—		—		3,771		—		3,771

Total Accounts Payable, Accrued Expenses and Other Liabilities		142		92,060		226,027		—		318,229

	$	3,963	$	356,294	$	226,027	$	—	$	586,284


															Fair Value		Valuation Techniques		Unobservable Inputs		Ranges		Weighted- Average (a)		Impact to Valuation from an Increase in Input
Financial Assets
Investments of Consolidated Blackstone Funds
Equity Securities, Partnership and LLC Interests															$	4,421,124		Discounted Cash Flows		Discount Rate		3.3% - 36.1%		7.8%		Lower
																				Exit Multiple - EBITDA		4.0x - 30.6x		14.5x		Higher
																				Exit Capitalization Rate		1.7% - 13.0%		4.8%		Lower
																		Transaction Price		n/a
Debt Instruments																18,727		Transaction Price		n/a

Total Investments of Consolidated Blackstone Funds																4,439,851
Corporate Treasury Investments																5,498		Third Party Pricing		n/a
Loans and Receivables																76,861		Discounted Cash Flows		Discount Rate		9.5% - 11.7%		10.1%		Lower
Other Investments (b)																88,772		Transaction Price		n/a
																		Third Party Pricing		n/a
	June 30, 2022							December 31, 2021
				For Financial Assets							For Financial Assets				$	4,610,982
				Past Due							Past Due
	(Deficiency)					Excess		(Deficiency)					Excess
	of Fair Value			Fair		of Fair Value		of Fair Value			Fair		of Fair Value
	Over Principal			Value		Over Principal		Over Principal			Value		Over Principal
Loans and Receivables	$	(8,906	)	$	—	$	—	$	(2,748	)	$	—	$	—
Debt Securities		(58,938	)		—		—		(29,475	)		—		—

	$	(67,844	)	$	—	$	—	$	(32,223	)	$	—	$	—


n/a		Not applicable.
EBITDA		Earnings before interest, taxes, depreciation and amortization.
Exit Multiple		Ranges include the last twelve months EBITDA and forward EBITDA multiples.
Third Party Pricing		Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services.
Transaction Price		Includes recent acquisitions or transactions.
(a)		Unobservable inputs were weighted based on the fair value of the investments included in the range.
(b)		As of June 30, 2023 and December 31, 2022, Other Investments includes Level III Freestanding Derivatives.


	Level III Financial Assets at Fair Value Three Months Ended June 30,
	2023												2022
	Investments												Investments
	of			Loans			Other						of			Loans			Other
	Consolidated			and			Investments						Consolidated			and			Investments
	Funds			Receivables			(a)			Total			Funds			Receivables			(a)			Total
Balance, Beginning of Period	$	4,338,509		$	307,288		$	74,604		$	4,720,401		$	1,208,252		$	286,199		$	43,214		$	1,537,665
Transfer In Due to Consolidation and Acquisition		—			—			—			—			1,535,171			—			—			1,535,171
Transfer Into Level III (b)		124			—			—			124			4,692			—			907			5,599
Transfer Out of Level III (b)		(4,751	)		—			—			(4,751	)		(56,268	)		—			—			(56,268	)
Purchases		121,526			116,897			2,291			240,714			269,788			441,687			4,752			716,227
Sales		(53,152	)		(349,787	)		(1,523	)		(404,462	)		(103,118	)		(186,532	)		(2,748	)		(292,398	)
Issuances		—			6,319			—			6,319			—			14,125			—			14,125
Settlements (c)		—			(19,292	)		(5,225	)		(24,517	)		—			(17,165	)		—			(17,165	)
Changes in Gains (Losses) Included in Earnings		37,595			15,436			3,465			56,496			(66,705	)		(4,209	)		(7,522	)		(78,436	)

Balance, End of Period	$	4,439,851		$	76,861		$	73,612		$	4,590,324		$	2,791,812		$	534,105		$	38,603		$	3,364,520


Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date	$	70,082		$	19,577		$	1,181		$	90,840		$	(73,347	)	$	(8,097	)	$	(7,517	)	$	(88,961	)


	Six Months Ended June 30, 2021
	Real			Private			Hedge Fund			Credit &			Total
	Estate			Equity			Solutions			Insurance			Segments
Management and Advisory Fees, Net
Base Management Fees	$	880,850		$	742,266		$	305,777		$	328,448		$	2,257,341
Transaction, Advisory and Other Fees, Net		64,099			74,979			5,904			11,783			156,765
Management Fee Offsets		(2,116	)		(17,520	)		(261	)		(3,262	)		(23,159	)

Total Management and Advisory Fees, Net		942,833			799,725			311,420			336,969			2,390,947
Fee Related Performance Revenues		189,168			—			—			28,889			218,057
Fee Related Compensation		(310,449	)		(277,364	)		(77,488	)		(155,194	)		(820,495	)
Other Operating Expenses		(99,122	)		(112,096	)		(41,045	)		(91,339	)		(343,602	)

Fee Related Earnings		722,430			410,265			192,887			119,325			1,444,907

Realized Performance Revenues		439,691			638,855			48,629			67,086			1,194,261
Realized Performance Compensation		(177,690	)		(270,584	)		(12,534	)		(28,387	)		(489,195	)
Realized Principal Investment Income		128,949			143,199			37,675			51,465			361,288

Total Net Realizations		390,950			511,470			73,770			90,164			1,066,354

Total Segment Distributable Earnings	$	1,113,380		$	921,735		$	266,657		$	209,489		$	2,511,261


									Three Months Ended					Six Months Ended
	Three Months Ended June 30,				Six Months Ended June 30,				June 30,					June 30,
	2022		2021		2022		2021		2023			2022		2023		2022
Total Segment Management and Advisory Fees, Net	$	1,556,917	$	1,212,742	$	3,030,285	$	2,390,947	$	1,703,186		$	1,556,917	$	3,355,573	$	3,030,285
Total Segment Fee Related Performance Revenues		346,593		48,889		904,658		218,057		266,738			346,593		414,982		904,658
Total Segment Realized Performance Revenues		2,206,774		792,938		3,519,584		1,194,261		388,423			2,206,774		1,029,949		3,519,584
Total Segment Realized Principal Investment Income		43,509		63,132		200,604		361,288
Total Segment Realized Principal Investment Income (Loss)										(7,461	)		43,509		36,230		200,604

Total Segment Revenues	$	4,153,793	$	2,117,701	$	7,655,131	$	4,164,553	$	2,350,886		$	4,153,793	$	4,836,734	$	7,655,131


	Three Months Ended
	June 30, 2022															June 30, 2021
				Private			Hedge Fund			Credit &									Private			Hedge Fund			Credit &
	Real Estate			Equity			Solutions			Insurance			Total			Real Estate			Equity			Solutions			Insurance			Total

	(Dollars in Thousands)
Fee-Earning Assets Under Management
Balance, Beginning of Period	$	240,621,453		$	160,946,196		$	75,685,828		$	200,689,825		$	677,943,302		$	155,851,794		$	131,903,347		$	76,614,206		$	116,856,060		$	481,225,407
Inflows (a)		24,715,819			6,030,709			1,609,920			12,076,571			44,433,019			9,834,475			2,320,367			1,794,869			14,734,257			28,683,968
Outflows (b)		(3,524,671	)		(43,763	)		(3,205,253	)		(6,718,805	)		(13,492,492	)		(581,677	)		(457,610	)		(8,277,079	)		(2,502,137	)		(11,818,503	)

Net Inflows (Outflows)		21,191,148			5,986,946			(1,595,333	)		5,357,766			30,940,527			9,252,798			1,862,757			(6,482,210	)		12,232,120			16,865,465
Realizations (c)		(8,912,594	)		(2,964,236	)		(461,230	)		(1,764,406	)		(14,102,466	)		(3,069,895	)		(3,304,081	)		(294,858	)		(4,029,664	)		(10,698,498	)
Market Activity (d)(g)		(774,137	)		(447,399	)		(999,644	)		(8,734,222	)		(10,955,402	)		4,228,796			2,013,463			2,403,014			2,894,879			11,540,152

Balance, End of Period (e)	$	252,125,870		$	163,521,507		$	72,629,621		$	195,548,963		$	683,825,961		$	166,263,493		$	132,475,486		$	72,240,152		$	127,953,395		$	498,932,526

Increase (Decrease)	$	11,504,417		$	2,575,311		$	(3,056,207	)	$	(5,140,862	)	$	5,882,659		$	10,411,699		$	572,139		$	(4,374,054	)	$	11,097,335		$	17,707,119
Increase (Decrease)		5	%		2	%		-4	%		-3	%		1	%		7	%		—			-6	%		9	%		4	%




				Unrealized Investments						Realized Investments			Total Investments												Unrealized Investments						Realized Investments			Total Investments
Fund (Investment Period		Committed	Available				%									Net IRRs (d)							Committed	Available				%									Net IRRs (d)
Beginning Date / Ending Date) (a)		Capital	Capital (b)	Value	MOIC (c)		Public			Value	MOIC (c)		Value	MOIC (c)		Realized			Total				Capital	Capital (b)	Value	MOIC (c)		Public			Value	MOIC (c)		Value	MOIC (c)		Realized			Total

		(Dollars/Euros in Thousands, Except Where Noted)																					(Dollars/Euros in Thousands, Except Where Noted)
Real Estate	Real Estate																					Real Estate
Pre-BREP		$ 140,714	$ —	$ —		n/a		—		$ 345,190		2.5x	$ 345,190		2.5x		33	%		33	%		$ 140,714	$ —	$ —		n/a		—		$ 345,190		2.5x	$ 345,190		2.5x		33	%		33	%
BREP I (Sep 1994 / Oct 1996)		380,708	—	—		n/a		—		1,327,708		2.8x	1,327,708		2.8x		40	%		40	%		380,708	—	—		n/a		—		1,327,708		2.8x	1,327,708		2.8x		40	%		40	%
BREP II (Oct 1996 / Mar 1999)		1,198,339	—	—		n/a		—		2,531,614		2.1x	2,531,614		2.1x		19	%		19	%		1,198,339	—	—		n/a		—		2,531,614		2.1x	2,531,614		2.1x		19	%		19	%
BREP III (Apr 1999 / Apr 2003)		1,522,708	—	—		n/a		—		3,330,406		2.4x	3,330,406		2.4x		21	%		21	%		1,522,708	—	—		n/a		—		3,330,406		2.4x	3,330,406		2.4x		21	%		21	%
BREP IV (Apr 2003 / Dec 2005)		2,198,694	—	23,471		n/a		—		4,640,501		1.7x	4,663,972		1.7x		12	%		12	%		2,198,694	—	19,634		n/a		—		4,641,310		1.7x	4,660,944		1.7x		12	%		12	%
BREP V (Dec 2005 / Feb 2007)		5,539,418	—	7,046		n/a		—		13,450,289		2.3x	13,457,335		2.3x		11	%		11	%		5,539,418	—	5,571		n/a		—		13,463,448		2.3x	13,469,019		2.3x		11	%		11	%
BREP VI (Feb 2007 / Aug 2011)		11,060,444	550,447	347,417		2.0x		79	%	27,454,501		2.5x	27,801,918		2.5x		13	%		13	%		11,060,444	550,934	176,574		2.1x		71	%	27,544,722		2.5x	27,721,296		2.5x		13	%		13	%
BREP VII (Aug 2011 / Apr 2015)		13,501,376	1,513,399	3,574,239		0.9x		7	%	27,931,757		2.4x	31,505,996		2.0x		22	%		15	%		13,501,324	1,440,313	2,565,307		0.7x		4	%	28,208,993		2.4x	30,774,300		2.0x		22	%		14	%
BREP VIII (Apr 2015 / Jun 2019)		16,592,792	2,302,626	15,233,276		1.7x		—		21,102,039		2.6x	36,335,315		2.1x		28	%		18	%		16,596,674	2,221,028	13,808,278		1.5x		1	%	21,623,193		2.5x	35,431,471		2.0x		28	%		16	%
*BREP IX (Jun 2019 / Dec 2024)		21,492,844	7,400,820	23,129,782		1.7x		1	%	7,308,322		2.2x	30,438,104		1.8x		66	%		40	%
BREP X (TBD)		24,416,257	24,416,257	—		n/a		—		—		n/a	—		n/a		n/a			n/a
BREP IX (Jun 2019 / Aug 2022)																							21,320,164	3,875,365	26,541,115		1.5x		1	%	8,433,953		2.2x	34,975,068		1.6x		61	%		24	%
*BREP X (Aug 2022 / Feb 2028)																							30,498,731	28,904,123	1,693,146		1.1x		42	%	—		n/a	1,693,146		1.1x		n/a			n/m

Total Global BREP		$ 98,044,294	$ 36,183,549	$ 42,315,231		1.6x		2	%	$ 109,422,327		2.4x	$ 151,737,558		2.1x		18	%		17	%		$ 103,957,918	$ 36,991,763	$ 44,809,625		1.4x		3	%	$ 111,450,537		2.4x	$ 156,260,162		2.0x		18	%		16	%

BREP Int’l (Jan 2001 / Sep 2005)		€ 824,172	€ —	€ —		n/a		—		€ 1,373,170		2.1x	€ 1,373,170		2.1x		23	%		23	%		€ 824,172	€ —	€ —		n/a		—		€ 1,373,170		2.1x	€ 1,373,170		2.1x		23	%		23	%
BREP Int’l II (Sep 2005 / Jun 2008) (e)		1,629,748	—	—		n/a		—		2,583,032		1.8x	2,583,032		1.8x		8	%		8	%		1,629,748	—	—		n/a		—		2,583,032		1.8x	2,583,032		1.8x		8	%		8	%
BREP Europe III (Jun 2008 / Sep 2013)		3,205,318	428,342	261,685		0.5x		—		5,792,216		2.4x	6,053,901		2.0x		19	%		14	%		3,205,420	394,520	196,294		0.4x		—		5,853,092		2.4x	6,049,386		2.0x		18	%		13	%
BREP Europe IV (Sep 2013 / Dec 2016)		6,673,049	1,419,267	1,824,144		1.3x		—		9,725,105		2.0x	11,549,249		1.8x		20	%		13	%		6,674,949	1,288,693	1,356,843		1.0x		—		9,936,953		1.9x	11,293,796		1.7x		19	%		13	%
BREP Europe V (Dec 2016 / Oct 2019)		7,965,079	1,381,611	5,884,481		1.1x		—		6,462,442		4.1x	12,346,923		1.8x		43	%		14	%		7,968,437	1,303,840	4,981,282		1.0x		—		6,694,372		3.9x	11,675,654		1.7x		42	%		11	%
*BREP Europe VI (Oct 2019 / Apr 2025)		9,907,845	6,534,038	4,463,598		1.3x		—		3,264,144		2.6x	7,727,742		1.6x		75	%		28	%		10,051,420	4,035,328	7,158,889		1.2x		—		3,424,218		2.6x	10,583,107		1.4x		72	%		19	%

Total BREP Europe		€ 30,205,211	€ 9,763,258	€ 12,433,908		1.2x		—		€ 29,200,109		2.4x	€ 41,634,017		1.8x		17	%		13	%		€ 30,354,146	€ 7,022,381	€ 13,693,308		1.1x		—		€ 29,864,837		2.3x	€ 43,558,145		1.7x		17	%		12	%


	Invested Performance Eligible Assets Under Management				Estimated % Above High Water Mark/ Hurdle (a)
	As of June 30,				As of June 30,
	2023		2022		2023	2022

	(Dollars in Thousands)
Credit & Insurance (b)	$	84,451,519	$	80,993,494	93%	92%


	Invested Performance Eligible Assets Under Management				Estimated % Above High Water Mark/ Benchmark (a)
	As of June 30,				As of June 30,
	2022		2021		2022	2021

	(Dollars in Thousands)
Hedge Fund Solutions Managed Funds (b)	$	48,902,089	$	44,660,713	64%	93%


	Invested Performance Eligible Assets Under Management				Estimated % Above High Water Mark/ Benchmark (a)
	As of June 30,				As of June 30,
	2023		2022		2023	2022

	(Dollars in Thousands)
Hedge Fund Solutions Managed Funds (b)	$	50,436,939	$	48,902,089	80%	64%


	Three Months Ended June 30,												Six Months Ended June 30,												June 30, 2022
	2022						2021						2022						2021						Inception to Date
Composite (a)	Gross			Net			Gross			Net			Gross			Net			Gross			Net			Gross			Net
Private Credit (b)(c)		-			-1	%		5	%		4	%		2	%		-			12	%		10	%		11	%		7	%
Liquid Credit (b)		-5	%		-6	%		2	%		2	%		-6	%		-6	%		3	%		3	%		5	%		4	%


	Invested Performance Eligible Assets Under Management				Estimated % Above High Water Mark/ Hurdle (a)
	As of June 30,				As of June 30,
	2022		2021		2022			2021

	(Dollars in Thousands)
Credit & Insurance (b)	$	80,993,494	$	42,210,582		92	%		76	%

		��
	June 30,						June 30,
	2022			2021			2023			2022

	(Dollars in Thousands)						(Dollars in Thousands)
Investments of Consolidated Blackstone Funds	$	3,764,850		$	1,871,269		$	5,490,773		$	3,764,850
Equity Method Investments
Partnership Investments		5,446,688			4,916,674			5,585,603			5,446,688
Accrued Performance Allocations		13,544,855			12,101,142			11,496,244			13,544,855
Corporate Treasury Investments		810,672			2,440,325			707,079			810,672
Other Investments		3,756,693			833,912			3,768,922			3,756,693

Total GAAP Investments	$	27,323,758		$	22,163,322		$	27,048,621		$	27,323,758


Accrued Performance Allocations - GAAP	$	13,544,855		$	12,101,142		$	11,496,244		$	13,544,855
Impact of Consolidation (a)		12,475			1			—			12,475
Due from Affiliates - GAAP (b)		136,631			59,304			197,998			136,631
Less: Net Realized Performance Revenues (c)		(262,083	)		(261,760	)		(283,131	)		(262,083	)
Less: Accrued Performance Compensation - GAAP (d)		(5,955,982	)		(5,137,933	)		(4,941,915	)		(5,955,982	)

Net Accrued Performance Revenues	$	7,475,896		$	6,760,754		$	6,469,196		$	7,475,896


	Aggregate
	Principal
	Amount
	(Dollars/Euros
Senior Notes (a)	in Thousands)
~~4.750%, Due 2/15/2023~~	$	~~400,000~~
2.000%, Due 5/19/2025	€	300,000
1.000%, Due 10/5/2026	€	600,000
3.150%, Due 10/2/2027	$	300,000
5.900%, Due 11/3/2027	$	600,000
1.625%, Due 8/5/2028	$	650,000
1.500%, Due 4/10/2029	€	600,000
2.500%, Due 1/10/2030	$	500,000
1.600%, Due 3/30/2031	$	500,000
2.000%, Due 1/30/2032	$	800,000
2.550%, Due 3/30/2032	$	500,000
6.200%, Due 4/22/2033	$	900,000
3.500%, Due 6/1/2034	€	500,000
6.250%, Due 8/15/2042	$	250,000
5.000%, Due 6/15/2044	$	500,000
4.450%, Due 7/15/2045	$	350,000
4.000%, Due 10/2/2047	$	300,000
3.500%, Due 9/10/2049	$	400,000
2.800%, Due 9/30/2050	$	400,000
2.850%, Due 8/5/2051	$	550,000
3.200%, Due 1/30/2052	$	1,000,000

	$	~~9,496,800~~10,681,800


	July 1, 2022 to												July 1, 2023 to
Contractual Obligations	December 31, 2022			2023-2024		2025-2026		Thereafter		Total			December 31, 2023			2024-2025			2026-2027			Thereafter			Total

	(Dollars in Thousands)												(Dollars in Thousands)
Operating Lease Obligations (a)	$	72,240		$	289,417	$	297,781	$	326,937	$	986,375		$	76,053		$	328,061		$	324,840		$	744,772		$	1,473,726
Purchase Obligations		81,707			77,630		12,080		—		171,417			88,136			162,585			52,026			—			302,747
Blackstone Issued Notes and Revolving Credit Facility (b)		—			400,000		943,560		8,153,240		9,496,800
Interest on Blackstone Issued Notes and Revolving Credit Facility (c)		123,555			515,935		497,627		3,477,633		4,614,750
Blackstone Operating Borrowings (b)														51			335,493			1,572,159			8,814,080			10,721,783
Interest on Blackstone Operating Borrowings (c)														159,673			696,139			673,647			3,552,705			5,082,164
Borrowings of Consolidated Blackstone Funds														—			—			—			1,751,546			1,751,546
Interest on Borrowings of Consolidated Blackstone Funds														9,891			39,562			39,562			35,444			124,459
Blackstone Funds Capital Commitments to Investee Funds (d)		206,774			—		—		—		206,774			97,072			—			—			—			97,072
Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (e)		—			157,002		214,670		1,190,579		1,562,251			—			187,779			235,373			1,168,939			1,592,091
Unrecognized Tax Benefits, Including Interest and Penalties (f)		—			—		—		—		—			—			—			—			—			—
Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (g)		5,713,312			—		—		—		5,713,312			4,591,285			—			—			—			4,591,285

Consolidated Contractual Obligations		6,197,588			1,439,984		1,965,718		13,148,389		22,751,679			5,022,161			1,749,619			2,897,607			16,067,486			25,736,873
Borrowings of Consolidated Blackstone Funds														—			—			—			(1,751,546	)		(1,751,546	)
Interest on Borrowings of Consolidated Blackstone Funds														(9,891	)		(39,562	)		(39,562	)		(35,444	)		(124,459	)
Blackstone Funds Capital Commitments to Investee Funds (d)		(206,774	)		—		—		—		(206,774	)		(97,072	)		—			—			—			(97,072	)

Blackstone Operating Entities Contractual Obligations	$	5,990,814		$	1,439,984	$	1,965,718	$	13,148,389	$	22,544,905		$	4,915,198		$	1,710,057		$	2,858,045		$	14,280,496		$	23,763,796


			Securities
	Repurchase		Sold, Not Yet
	Agreements		Purchased

	(Dollars in Millions)
Balance, June 30, 2022	$	152.5	$	27.0
Balance, December 31, 2021	$	58.0	$	27.8
Six Months Ended June 30, 2022
Average Daily Balance	$	90.3	$	27.3
Maximum Daily Balance	$	182.9	$	27.8


							Approximate Dollar
			Average		Total Number of Shares		Value of Shares that
	Total Number		Price Paid		Purchased as Part of		May Yet Be Purchased
	of Shares		per		Publicly Announced		Under the Program
Period	Purchased		Share		Plans or Programs (a)		(Dollars in Thousands) (a)
Apr. 1 - Apr. 30, 2022		132,141	$	107.25		132,141	$	1,485,828
May 1 - May 31, 2022		924,995	$	106.22		924,995	$	1,387,577
Jun. 1 - Jun. 30, 2022		792,864	$	104.56		792,864	$	1,304,674

		1,850,000				1,850,000


Exhibit Number		Exhibit Description

~~4.1~~ 10.1*		~~Twenty-Second Supplemental Indenture~~Second Amended and Restated Agreement of Limited Partnership of Strategic Partners Fund Solutions Associates VI L.P., dated as of June 1, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc., Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form ~~8-K~~ ~~filed with the SEC on June 1, 2022).~~May 23, 2023.

~~4.2~~ 31.1*		~~Form of 3.500% Senior Note due 2034 (included in Exhibit 4.1 hereto).~~

~~10.1~~		Amended and Restated Credit Agreement dated as of June 3, 2022, among Blackstone Holdings Finance Co. L.L.C., as borrower, Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., as guarantors, Citibank, N.A., as administrative agent and the lenders party thereto (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form ~~8-K~~ ~~filed with the SEC on June 8, 2022).~~

10.2*		~~Form of Aircraft Dry Lease Agreement between Hilltop Asset Holdings LLC and Blackstone Administrative Services Partnership L.P.~~

31.1*		Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).

31.2*		Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).

32.1*		Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

32.2*		Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).

99.1*		Section 13(r) Disclosure.

101.INS*		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*		Inline XBRL Taxonomy Extension Schema Document.

101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document.


101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB*		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104.		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


Blackstone Inc.

/s/ Michael S. Chae
Name:		Michael S. Chae
Title:		Chief Financial Officer
		(Principal Financial Officer and
		Authorized Signatory)

Large accelerated filer
☒

Accelerated filer
☐

Non-accelerated filer
~~filer~~
☐

Smaller reporting company
☐

Emerging growth company
☐