| o | 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)| (a) | Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment allocations and acquisitions. |
| (b) | Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments). |
| (c) | Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from CLOs. |
| (d) | Market Activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. |
| (e) | Total and Fee-Earning Assets Under Management are reported in the segment where the assets are managed. |
| (f) | Annualized Base Management Fee Rate represents annualized year to date Base Management Fee divided by the average of the beginning of year and each quarter end’s Fee-Earning Assets Under Management in the reporting period. |
| (g) | For the three months ended March 31, 2024, the impact to Fee-Earning Assets Under Management from foreign exchange rate fluctuations was $(1.2) billion, $(95.9) million, $(375.0) million, $(283.6) million and $(2.0) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended March 31, 2023, such impact was $662.2 million, $27.8 million, $314.6 million, $(112.6) million and $892.1 million for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. |
| (h) | For the three months ended March 31, 2024, the impact to Total Assets Under Management from foreign exchange rate fluctuations was $(1.9) billion, $(729.5) million, $(392.5) million, $(281.5) million and $(3.3) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the three months ended March 31, 2023, such impact was $845.2 million, $695.4 million, $386.2 million, $(105.0) million and $1.8 billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. |
| o | Realizations were driven by $2.3 billion from corporate private equity, $985.2 million from Strategic Partners and $386.0 million from Tactical Opportunities.Fee-Earning Assets Under Management Fee-Earning Assets Under Management were $781.4 billion at March 31, 2024, an increase of $18.8 billion compared to $762.6 billion at December 31, 2023. The net increase was due to: In our Real Estate segment, an increase of $2.7 billion from $298.9 billion at December 31, 2023 to $301.6 billion at March 31, 2024. The net increase was due to inflows of $9.0 billion and market appreciation of $946.0 million, offset by realizations of $4.1 billion and outflows of $3.2 billion. |
| o | | o | 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.Inflows were driven by $3.5 billion from BREDS, $2.5 billion from BREP and co-investment and $1.9 billion from BREIT. |
| o | In our Credit & Insurance segment, an increaseMarket appreciation was driven by appreciation of $3.3$1.1 billion from $291.3 billion at March 31, 2023 to $294.6 billion at June 30, 2023. The net increase was due to inflowsBREIT (which reflected $53.4 million of $12.3 billion and market appreciation of $2.2 billion,foreign exchange depreciation), partially offset by outflowsdepreciation of $5.6 billion$331.2 million from BPP and realizations of $5.6 billion.
| o | 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.
|
| o | 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).
|
| o | 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.
|
| o | 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.
| o | 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.
|
| o | Realizations were driven by $1.9 billion from liquid and specialized solutions.
|
| o | 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.
|
| o | 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 $35.2co-investment (which reflected $842.6 million of foreign exchange depreciation).
|
| o | Total Assets Under ManagementRealizations 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 $7.1driven by $1.7 billion from $326.1BREDS and $1.5 billion at December 31, 2022 to $333.2from BREIT.
|
| o | Outflows were driven by $2.9 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.from BREIT. |
| o | 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 andco-investment,In our Private Equity segment, an increase of $2.0 billion from $168.6 billion at December 31, 2023 to $170.6 billion at March 31, 2024. The net increase was due to inflows of $2.3 billion and market appreciation of $1.4 billion, offset by realizations of $1.5 billion and outflows of $217.5 million. primarily from BREP X and the seventh European opportunistic fund. | o | Inflows were driven by $980.5 million from BIP, $555.7 million from Tactical Opportunities and $243.1 million from Corporate Private Equity. |
| o |
| o | 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 andco-investment
(which reflected $430.4 million of foreign exchange appreciation), partially offset by depreciation of $746.2 million from BPP andco-investment
(which reflected $691.5 million of foreign exchange appreciation)$1.1 billion from BIP (which reflected $95.9 million of foreign exchange depreciation). |
| o | Realizations were driven by $4.9 billion from BREIT, $2.1 billion from BREP andco-investment,
$1.6 billion from BREDS and $1.4 billion from BPP andco-investment.
|
| o | Outflows were driven by $6.8 billion from BREIT repurchases and $603.0 million from BPP andco-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.
| o | 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.
|
| o | 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).
|
| o | Realizations were driven by $6.9 billion from corporate private equity, $2.6 billion from Strategic Partners and $2.3 billion from Tactical Opportunities.
|
| o | 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.
| o | 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.
|
| o | 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.
|
| o | 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.
|
| o | 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.
|
93
| o | In our Hedge Fund Solutions segment, a decrease of $1.5 billionRealizations were driven by $605.7 million 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 billionTactical Opportunities, $420.2 million from Corporate Private Equity and realizations of $2.3 billion, offset$326.6 million from Strategic Partners.
|
| o | Outflows were driven by inflows of $3.6 billion and market appreciation of $1.5 billion.$138.3 million from BTAS. |
| o | 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.In our Credit & Insurance segment, an increase of $12.0 billion from $223.8 billion at December 31, 2023 to $235.8 billion at March 31, 2024. The net increase was due to inflows of $16.4 billion and market appreciation of $1.7 billion, offset by realizations of $4.0 billion and outflows of $2.1 billion. |
| o | Inflows were driven by $5.4 billion from direct lending, $5.4 billion from infrastructure and asset based credit strategies and $5.1 billion from liquid credit strategies. Realizations were driven by $2.2 billion from liquid and specialized solutions.
|
| o | | o | 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.
|
| o | 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 $45.9Market appreciation was driven by appreciation of $995.7 million from direct lending (which reflected $123.1 million of foreign exchange depreciation).
|
| o | Total Assets Under Management inflows in our Credit & Insurance segmentRealizations were driven by $1.8 billion from liquid credit strategies and $1.3 billion from direct lending funds exceedlending.
|
| o | Outflows were driven by $674.9 million from liquid credit strategies, $631.0 million from the Fee-Earning insurance platform and $573.5 million from direct lending.
Assets Under Management 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. |
In our Multi-Asset Investing segment, an increase of $2.1 billion from $71.3 billion at December 31, 2023 to $73.4 billion at March 31, 2024. The net increase was due to market appreciation of $2.5 billion and inflows of $1.3 billion, offset by outflows of $1.3 billion and realizations of $384.9 million. Total Assets Under Management realizations in our BREP andco-investment
funds and our Private Equity segment generally represents the total proceeds and typically exceeds theFee-Earning
Assets Under Management realizations.Fee-Earning
Assets Under Management generally represents only the invested capital. | o | 94Market appreciation was driven by appreciation of $1.9 billion from Absolute Return (which reflected $304.6 million of foreign exchange depreciation), $361.4 million from GP Stakes (which reflected $4.6 million of foreign exchange appreciation) and $260.0 million from Multi-Strategy (which reflected $16.4 million of foreign exchange appreciation).
|
| o | Inflows were driven by $1.2 billion from Absolute Return, $71.9 million from GP Stakes and $42.3 million from Multi-Strategy. |
| o | Outflows were driven by $1.2 billion from Absolute Return and $121.2 million from Multi-Strategy. |
| o | Realizations were driven by $260.7 million from Multi-Strategy, $63.4 million from Absolute Return and $60.8 million from GP Stakes. |
Total Assets Under Management Total Assets Under Management were $1,061.3 billion at March 31, 2024, an increase of $21.1 billion compared to $1,040.2 billion at December 31, 2023. The net increase was due to: In our Real Estate segment, an increase of $2.4 billion from $336.9 billion at December 31, 2023 to $339.3 billion at March 31, 2024. The net increase was due to inflows of $8.1 billion and market appreciation of $1.4 billion, offset by realizations of $3.8 billion and outflows of $3.2 billion. | o | Inflows were driven by $3.6 billion from BREDS, $2.3 billion from BREP and co-investment and $1.9 billion from BREIT. |
| o | Market appreciation was driven by appreciation of $1.1 billion from BREIT (which reflected $53.4 million of foreign exchange depreciation) and $1.0 billion from BREDS (which reflected $20.1 million of foreign exchange depreciation), partially offset by depreciation of $378.1 million from BPP and co-investment (which reflected $869.0 million of foreign exchange depreciation) and $253.2 million from BREP and co-investment (which reflected $971.1 million of foreign exchange depreciation). |
| o | Realizations were driven by $1.5 billion from BREIT, $1.2 billion from BREDS and $672.5 million from BPP and co-investment. |
| o | Outflows were driven by $2.9 billion from BREIT. |
In our Private Equity segment, an increase of $6.0 billion from $304.0 billion at December 31, 2023 to $310.0 billion at March 31, 2024. The net increase was due to inflows of $7.4 billion and market appreciation of $5.6 billion, offset by realizations of $5.2 billion and outflows of $1.8 billion. | o | Inflows were driven by $3.3 billion from Corporate Private Equity, $1.7 billion from BIP and $1.1 billion from Tactical Opportunities. |
| o | Market appreciation was driven by appreciation of $2.7 billion from Corporate Private Equity (which reflected $605.9 million of foreign exchange depreciation), $1.5 billion from BIP (which reflected $71.5 million of foreign exchange depreciation) and $920.4 million from Strategic Partners (which reflected $11.4 million of foreign exchange appreciation). |
| o | Realizations were driven by $2.5 billion from Corporate Private Equity, $1.5 billion from Tactical Opportunities and $1.1 billion from Strategic Partners. |
| o | Outflows were driven by $845.5 million from Strategic Partners and $621.4 million from Tactical Opportunities. |
In our Credit & Insurance segment, an increase of $10.7 billion from $318.9 billion at December 31, 2023 to $329.6 billion at March 31, 2024. The net increase was due to inflows of $17.2 billion and market appreciation of $3.4 billion, offset by realizations of $5.5 billion and outflows of $4.3 billion. | o | Inflows were driven by $7.3 billion from direct lending, $5.3 billion from infrastructure and asset based credit strategies and $4.4 billion from liquid credit strategies. |
| o | Market appreciation was driven by appreciation of $1.3 billion from direct lending (which reflected $139.7 million of foreign exchange depreciation), $875.2 million from MLP strategies and $533.5 million from the insurance platform. |
| o | Realizations were driven by $2.2 billion from direct lending, $1.8 billion from liquid credit strategies and $650.6 million from infrastructure and asset based credit strategies. |
| o | Outflows were driven by $1.9 billion from direct lending, $744.8 million from liquid credit strategies and $632.3 million from the insurance platform. |
In our Multi-Asset Investing segment, an increase of $2.0 billion from $80.3 billion at December 31, 2023 to $82.3 billion at March 31, 2024. The net increase was due to market appreciation of $2.7 billion and inflows of $1.4 billion, offset by outflows of $1.7 billion and realizations of $435.9 million. | o | Market appreciation was driven by appreciation of $1.9 billion from Absolute Return (which reflected $304.6 million of foreign exchange depreciation), $521.0 million from GP Stakes (which reflected $5.4 million of foreign exchange appreciation) and $272.8 million from Multi-Strategy (which reflected $17.8 million of foreign exchange appreciation). |
| o | Inflows were driven by $1.2 billion from Absolute Return, $190.1 million from Multi-Strategy and $4.4 million from GP Stakes. |
| o | Outflows were driven by $1.2 billion from Absolute Return and $488.0 million from Multi-Strategy. |
| o | Realizations were driven by $303.6 million from Multi-Strategy, $68.1 million from GP Stakes and $64.2 million from Absolute Return. |
Total Assets Under Management inflows in Corporate Private Equity exceed the Fee-Earning Assets Under Management inflows primarily due to the closings of BCP IX and BETP IV in the three months ended March 31, 2024. Fee-Earning Assets Under Management inflows are reported when a fund’s investment period commences or fee-earning co-investment capital is raised, whereas Total Assets Under Management activity is reported at each fund closing or when co-investment capital is raised. Total Assets Under Management realizations in our Private Equity segment generally represents the total proceeds and typically exceeds the Fee-Earning Assets Under Management realizations. Fee-Earning Assets Under Management generally represents only the invested capital. Fee-Earning Assets Under Management in Corporate Private Equity is reported based on committed or remaining invested capital, whereas Total Assets Under Management is reported based on fair value and remaining available capital. Total Assets Under Management market activity therefore exceeds Fee-Earning Assets Under Management market activity. Total Assets Under Management inflows in our Credit & Insurance segment direct lending funds exceed the Fee-Earning Assets Under Management inflows 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. 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. |
Net Accrued Performance Revenues The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of March 31, 2024 and 2023. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 16. “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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 4 | | | $ | 6 | | | | | 4 | | | | 4 | | | | | 2 | | | | 19 | | | | | — | | | | 86 | | | | | 585 | | | | 717 | | | | | 730 | | | | 1,015 | | | | | 3 | | | | 43 | | | | | — | | | | 28 | | | | | 113 | | | | 68 | | | | | 89 | | | | 104 | | | | | — | | | | 37 | | | | | 73 | | | | 518 | | | | | 30 | | | | 6 | | | | | — | | | | 22 | | | | | | | | | | | | | | 1,632 | | | | 2,672 | | | | | | | | | | | | | | | | | | | | | | | — | | | | 6 | | | | | 14 | | | | 31 | | | | | 335 | | | | 407 | | | | | 845 | | | | 854 | | | | | 398 | | | | 276 | | | | | 140 | | | | 95 | | | | | 40 | | | | — | | | | | 29 | | | | 26 | | | | | 138 | | | | 2 | | | | | 227 | | | | 158 | | | | | 230 | | | | 213 | | | | | 158 | | | | 223 | | | | | 501 | | | | 511 | | | | | 389 | | | | 158 | | | | | 85 | | | | 29 | | | | | 187 | | | | 172 | | | | | | | | | | | | | | 3,717 | | | | 3,161 | | | | | | | | | | | | | | 355 | | | | 239 | | | | | | | | | | | | | | 380 | | | | 300 | | | | | | | | | | | Total Blackstone Net Accrued Performance Revenues | | $ | 6,084 | | | $ | 6,372 | | | | | | | | | | |
| Note: | Totals may not add due to rounding. |
| (a) | Real Estate and Private Equity include co-investments, as applicable. |
For the twelve months ended March 31, 2024, Net Accrued Performance Revenues receivable decreased due to net realized distributions of $1.8 billion, partially offset by Net Performance Revenues of $1.5 billion.
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. |
(a) | Represents illiquid drawdown funds, a component of Perpetual Capital andfee-paying
The following presents our Perpetual Capital Total Assets Under Management as of quarter end for each period: co-investments;
includesfee-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. |
Net Accrued Performance Revenues
The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of June 30, 2023 and 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 6 | | | $ | 7 | | | | | 4 | | | | 3 | | | | | 17 | | | | 32 | | | | | 60 | | | | 164 | | | | | 707 | | | | 841 | | | | | 987 | | | | 1,015 | | | | | 36 | | | | 83 | | | | | 19 | | | | 120 | | | | | 90 | | | | 80 | | | | | 89 | | | | 114 | | | | | — | | | | 153 | | | | | 512 | | | | 755 | | | | | 12 | | | | 15 | | | | | 17 | | | | 111 | | | | | | | | | | | | | | | 2,556 | | | | 3,491 | | | | | | | | | | | | | | | | | | | | | | | | 6 | | | | 8 | | | | | 41 | | | | 3 | | | | | 411 | | | | 407 | | | | | 900 | | | | 975 | | | | | 297 | | | | 235 | | | | | 94 | | | | 195 | | | | | 29 | | | | 27 | | | | | 73 | | | | — | | | | | 202 | | | | 76 | | | | | 205 | | | | 224 | | | | | 236 | | | | 311 | | | | | 527 | | | | 629 | | | | | 189 | | | | 67 | | | | | 24 | | | | 24 | | | | | 169 | | | | 228 | | | | | | | | | | | | | | | 3,402 | | | | 3,408 | | | | | | | | | | | | | | | 247 | | | | 271 | | | | | | | | | | | | | | | 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 includeco-investments,
as applicable. |
For the twelve months ended June 30, 2023, Net Accrued Performance Revenues receivable decreased due to net realized distributions of $1.7 billion, partially offset by Net Performance Revenues of $725.8 million.Perpetual Capital Total Assets Under Management were $408.1 billion as of March 31, 2024, an increase of $11.8 billion, compared to $396.3 billion as of December 31, 2023. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $7.0 billion and $3.6 billion, respectively. Principal drivers of these increases were: In our Credit & Insurance segment, growth in insurance capital and BCRED resulted in increases of $2.6 billion and $1.9 billion, respectively. In our Private Equity segment, growth in BIP resulted in an increase of $3.1 billion and the BXPE Fund Program had $2.7 billion of capital raised, including amounts allocated to other segments.
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.
|
The following presents our Perpetual Capital Total Assets Under Management as of quarter end for each period:
Note: | Totals may not add due to rounding.
|
Perpetual Capital Total Assets Under Management were $384.3 billion as of June 30, 2023, an increase of $3.8 billion, compared to $380.5 billion as of March 31, 2023. Perpetual Capital Total Assets Under Management in our Credit & Insurance, Private Equity and Real Estate segments increased $1.9 billion, $1.7 billion and $1.2 billion, respectively. Principal drivers of these increases were:
In our Credit & Insurance segment, growth in BIS resulted in an increase of $1.7 billion.
In our Private Equity segment, growth in BIP resulted in an increase of $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.
Perpetual Capital Total Assets Under Management were $384.3 billion as of June 30, 2023, an increase of $13.2 billion, compared to $371.1 billion as of December 31, 2022. Perpetual Capital Total Assets Under Management in our Credit & Insurance, Real Estate and Private Equity segments increased $7.8 billion, $3.8 billion and $2.5 billion, respectively. Principal drivers of these increases were:
In our Credit & Insurance segment, growth in BIS resulted in an increase of $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 decreases of $2.0 billion and $747.8 million in BPP and BREIT, respectively.
In our Private Equity segment, growth in BIP resulted in an increase of $1.8 billion.
Fund returns information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund 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 performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table presentstables present the investment record of our significant carry/drawdown funds and selected perpetual capital strategies from inception through June 30, 2023:March 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning Date / Ending Date) (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars/Euros in Thousands, Except Where Noted) | | (Dollars/Euros in Thousands, Except Where Noted) | | | | | | | | $ 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 | | — | | 19,634 | | | n/a | | | | — | | | 4,641,310 | | | 1.7x | | | 4,660,944 | | | 1.7x | | | | 12 | % | | | 12 | % | | 2,198,694 | | — | | 3,170 | | | n/a | | | | — | | | 4,666,129 | | | 1.7x | | | 4,669,299 | | | 1.7x | | | | 12 | % | | | 12 | % | BREP V (Dec 2005 / Feb 2007) | | 5,539,418 | | — | | 5,571 | | | n/a | | | | — | | | 13,463,448 | | | 2.3x | | | 13,469,019 | | | 2.3x | | | | 11 | % | | | 11 | % | | 5,539,418 | | — | | 6,226 | | | n/a | | | | — | | | 13,463,448 | | | 2.3x | | | 13,469,674 | | | 2.3x | | | | 11 | % | | | 11 | % | BREP VI (Feb 2007 / Aug 2011) | | 11,060,444 | | 550,934 | | 176,574 | | | 2.1x | | | | 71 | % | | 27,544,722 | | | 2.5x | | | 27,721,296 | | | 2.5x | | | | 13 | % | | | 13 | % | | 11,060,122 | | — | | 5,324 | | | n/a | | | | — | | | 27,760,883 | | | 2.5x | | | 27,766,207 | | | 2.5x | | | | 13 | % | | | 13 | % | BREP VII (Aug 2011 / Apr 2015) | | 13,501,324 | | 1,440,313 | | 2,565,307 | | | 0.7x | | | | 4 | % | | 28,208,993 | | | 2.4x | | | 30,774,300 | | | 2.0x | | | | 22 | % | | | 14 | % | | 13,503,329 | | 1,225,034 | | 1,956,790 | | | 0.6x | | | | — | | | 28,403,367 | | | 2.3x | | | 30,360,157 | | | 1.9x | | | | 20 | % | | | 14 | % | BREP VIII (Apr 2015 / Jun 2019) | | 16,596,674 | | 2,221,028 | | 13,808,278 | | | 1.5x | | | | 1 | % | | 21,623,193 | | | 2.5x | | | 35,431,471 | | | 2.0x | | | | 28 | % | | | 16 | % | | 16,602,804 | | 2,106,760 | | 12,551,757 | | | 1.5x | | | | 1 | % | | 22,034,929 | | | 2.3x | | | 34,586,686 | | | 2.0x | | | | 24 | % | | | 14 | % | 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 | % | | 21,346,305 | | 3,387,974 | | 24,901,917 | | | 1.4x | | | | 1 | % | | 8,634,759 | | | 2.2x | | | 33,536,676 | | | 1.5x | | | | 59 | % | | | 15 | % | *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 | | | 30,480,299 | | 28,079,177 | | 2,795,029 | | | 1.2x | | | | 28 | % | | — | | | n/a | | | 2,795,029 | | | 1.2x | | | | n/ | m | | | n/ | m | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ 103,957,918 | | $ 36,991,763 | | $ 44,809,625 | | | 1.4x | | | | 3 | % | | $ 111,450,537 | | | 2.4x | | | $ 156,260,162 | | | 2.0x | | | | 18 | % | | | 16 | % | | $ 103,973,440 | | $ 34,798,945 | | $ 42,220,213 | | | 1.3x | | | | 3 | % | | $ 112,498,433 | | | 2.3x | | | $ 154,718,646 | | | 1.9x | | | | 17 | % | | | 15 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | BREP Int’l (Jan 2001 / Sep 2005) | | | | | | | | | n/a | | | | — | | | | | | 2.1x | | | | | | 2.1x | | | | 23 | % | | | 23 | % | | | | | | | | | n/a | | | | — | | | | | | 2.1x | | | | | | 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) | | 3,205,420 | | 394,520 | | 196,294 | | | 0.4x | | | | — | | | 5,853,092 | | | 2.4x | | | 6,049,386 | | | 2.0x | | | | 18 | % | | | 13 | % | | 3,205,420 | | 395,780 | | 156,697 | | | 0.3x | | | | — | | | 5,856,192 | | | 2.4x | | | 6,012,889 | | | 2.0x | | | | 18 | % | | | 13 | % | BREP Europe IV (Sep 2013 / Dec 2016) | | 6,674,949 | | 1,288,693 | | 1,356,843 | | | 1.0x | | | | — | | | 9,936,953 | | | 1.9x | | | 11,293,796 | | | 1.7x | | | | 19 | % | | | 13 | % | | 6,676,581 | | 1,098,498 | | 1,253,628 | | | 0.8x | | | | — | | | 10,027,832 | | | 1.9x | | | 11,281,460 | | | 1.7x | | | | 19 | % | | | 12 | % | BREP Europe V (Dec 2016 / Oct 2019) | | 7,968,437 | | 1,303,840 | | 4,981,282 | | | 1.0x | | | | — | | | 6,694,372 | | | 3.9x | | | 11,675,654 | | | 1.7x | | | | 42 | % | | | 11 | % | | 7,981,358 | | 1,097,156 | | 4,576,200 | | | 0.9x | | | | — | | | 6,757,417 | | | 3.8x | | | 11,333,617 | | | 1.6x | | | | 41 | % | | | 9 | % | *BREP Europe VI (Oct 2019 / Apr 2025) | | 10,051,420 | | 4,035,328 | | 7,158,889 | | | 1.2x | | | | — | | | 3,424,218 | | | 2.6x | | | 10,583,107 | | | 1.4x | | | | 72 | % | | | 19 | % | BREP Europe VI (Oct 2019 / Sep 2023) | | | 9,922,660 | | 3,320,479 | | 8,093,104 | | | 1.2x | | | | — | | | 3,439,595 | | | 2.6x | | | 11,532,699 | | | 1.4x | | | | 72 | % | | | 15 | % | *BREP Europe VII (Sep 2023 / Mar 2029) | | | 7,073,413 | | 6,525,856 | | 631,994 | | | 1.2x | | | | — | | | — | | | n/a | | | 631,994 | | | 1.2x | | | | n/ | a | | | n/ | a | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1.1x | | | | — | | | | | | 2.3x | | | | | | 1.7x | | | | 17 | % | | | 12 | % | | | | | | | | | 1.0x | | | | — | | | | | | 2.3x | | | | | | 1.6x | | | | 17 | % | | | 11 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning Date / Ending Date) (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars/Euros in Thousands, Except Where Noted) | | (Dollars/Euros in Thousands, Except Where Noted) | | | | | | BREP Asia I (Jun 2013 / Dec 2017) | | $ 4,262,075 | | $ 897,915 | | $ 1,751,714 | | | 1.4x | | | | 23 | % | | $ 6,801,153 | | | 2.0x | | | $ 8,552,867 | | | 1.8x | | | | 17% | | | | 12% | | | $ | 4,262,075 | | | $ | 898,228 | | | $ | 1,614,155 | | | | 1.6x | | | | 23 | % | | $ | 7,023,539 | | | | 1.9x | | | $ | 8,637,694 | | | | 1.9x | | | | 16% | | | | 12% | | BREP Asia II (Dec 2017 / Mar 2022) | | 7,347,370 | | 1,470,961 | | 6,708,407 | | | 1.2x | | | | 3 | % | | 1,594,864 | | | 1.9x | | | 8,303,271 | | | 1.3x | | | | 32% | | | | 7% | | | | 7,354,811 | | | | 1,310,691 | | | | 6,618,861 | | | | 1.2x | | | | 4 | % | | | 1,707,204 | | | | 1.9x | | | | 8,326,065 | | | | 1.3x | | | | 31% | | | | 5% | | *BREP Asia III (Mar 2022 / Sep 2027) | | 8,221,870 | | 7,194,247 | | 999,298 | | | 1.0x | | | | — | | | — | | | n/a | | | 999,298 | | | 1.0x | | | | n/a | | | | -20% | | | | 8,209,660 | | | | 6,869,378 | | | | 1,217,283 | | | | 0.9x | | | | — | | | | — | | | | n/a | | | | 1,217,283 | | | | 0.9x | | | | n/a | | | | -21% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 19,831,315 | | 9,563,123 | | 9,459,419 | | | 1.2x | | | | 7 | % | | 8,396,017 | | | 2.0x | | | 17,855,436 | | | 1.5x | | | | 18% | | | | 10% | | | | 19,826,546 | | | | 9,078,297 | | | | 9,450,299 | | | | 1.2x | | | | 7 | % | | | 8,730,743 | | | | 1.9x | | | | 18,181,042 | | | | 1.5x | | | | 17% | | | | 8% | | | | 7,298,869 | | 32,106 | | 1,031,360 | | | 2.2x | | | | — | | | 15,118,484 | | | 2.2x | | | 16,149,844 | | | 2.2x | | | | 16% | | | | 16% | | | | 7,387,496 | | | | 101,066 | | | | 910,970 | | | | 1.9x | | | | — | | | | 15,226,653 | | | | 2.2x | | | | 16,137,623 | | | | 2.2x | | | | 16% | | | | 16% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ 167,230,303 | | $ 54,247,707 | | $ 70,825,555 | | | 1.3x | | | | 3 | % | | $ 171,475,110 | | | 2.3x | | | $ 242,300,665 | | | 1.9x | | | | 17% | | | | 15% | | | $ | 174,923,872 | | | $ | 57,481,967 | | | $ | 69,149,508 | | | | 1.2x | | | | 3 | % | | $ | 173,164,628 | | | | 2.3x | | | $ | 242,314,136 | | | | 1.8x | | | | 17% | | | | 14% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | *BREDS High-Yield (Various) (g) | | $ 23,678,637 | | $ 7,739,343 | | $ 6,032,576 | | | 1.0x | | | | — | | | $ 17,805,349 | | | 1.3x | | | $ 23,837,925 | | | 1.2x | | | | 10% | | | | 9% | | | $ | 24,667,563 | | | $ | 8,606,485 | | | $ | 6,016,175 | | | | 1.0x | | | | — | | | $ | 19,217,327 | | | | 1.4x | | | $ | 25,233,502 | | | | 1.3x | | | | 10% | | | | 9% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | BCP I (Oct 1987 / Oct 1993) | | $ 859,081 | | $ — | | $ — | | | n/a | | | | — | | | $ 1,741,738 | | | 2.6x | | | $ 1,741,738 | | | 2.6x | | | | 19% | | | | 19% | | | $ | 859,081 | | | $ | — | | | $ | — | | | | n/a | | | | — | | | $ | 1,741,738 | | | | 2.6x | | | $ | 1,741,738 | | | | 2.6x | | | | 19% | | | | 19% | | BCP II (Oct 1993 / Aug 1997) | | 1,361,100 | | — | | — | | | n/a | | | | — | | | 3,268,627 | | | 2.5x | | | 3,268,627 | | | 2.5x | | | | 32% | | | | 32% | | | | 1,361,100 | | | | — | | | | — | | | | n/a | | | | — | | | | 3,268,627 | | | | 2.5x | | | | 3,268,627 | | | | 2.5x | | | | 32% | | | | 32% | | BCP III (Aug 1997 / Nov 2002) | | 3,967,422 | | — | | — | | | n/a | | | | — | | | 9,228,707 | | | 2.3x | | | 9,228,707 | | | 2.3x | | | | 14% | | | | 14% | | | | 3,967,422 | | | | — | | | | — | | | | n/a | | | | — | | | | 9,228,707 | | | | 2.3x | | | | 9,228,707 | | | | 2.3x | | | | 14% | | | | 14% | | BCOM (Jun 2000 / Jun 2006) | | 2,137,330 | | 24,575 | | 16,329 | | | n/a | | | | — | | | 2,981,999 | | | 1.4x | | | 2,998,328 | | | 1.4x | | | | 6% | | | | 6% | | | | 2,137,330 | | | | 24,575 | | | | 194 | | | | n/a | | | | — | | | | 2,995,106 | | | | 1.4x | | | | 2,995,300 | | | | 1.4x | | | | 6% | | | | 6% | | BCP IV (Nov 2002 / Dec 2005) | | 6,773,182 | | 195,824 | | 28,708 | | | n/a | | | | — | | | 21,694,051 | | | 2.9x | | | 21,722,759 | | | 2.9x | | | | 36% | | | | 36% | | | | 6,773,182 | | | | 195,824 | | | | 373 | | | | n/a | | | | — | | | | 21,720,334 | | | | 2.9x | | | | 21,720,707 | | | | 2.9x | | | | 36% | | | | 36% | | BCP V (Dec 2005 / Jan 2011) | | 21,009,112 | | 1,035,259 | | 172,185 | | | 11.7x | | | | 100 | % | | 38,675,419 | | | 1.9x | | | 38,847,604 | | | 1.9x | | | | 8% | | | | 8% | | | | 21,009,112 | | | | 1,035,259 | | | | 62,513 | | | | n/a | | | | 100 | % | | | 38,806,330 | | | | 1.9x | | | | 38,868,843 | | | | 1.9x | | | | 8% | | | | 8% | | BCP VI (Jan 2011 / May 2016) | | 15,195,539 | | 1,341,322 | | 6,011,206 | | | 1.9x | | | | 28 | % | | 26,696,258 | | | 2.3x | | | 32,707,464 | | | 2.2x | | | | 15% | | | | 13% | | | | 15,195,243 | | | | 1,341,026 | | | | 4,571,438 | | | | 2.1x | | | | 22 | % | | | 28,457,325 | | | | 2.2x | | | | 33,028,763 | | | | 2.2x | | | | 15% | | | | 12% | | BCP VII (May 2016 / Feb 2020) | | 18,857,492 | | 1,694,290 | | 20,243,357 | | | 1.6x | | | | 23 | % | | 14,110,945 | | | 2.6x | | | 34,354,302 | | | 1.9x | | | | 33% | | | | 14% | | | | 18,857,108 | | | | 1,693,906 | | | | 18,687,754 | | | | 1.6x | | | | 19 | % | | | 16,827,034 | | | | 2.6x | | | | 35,514,788 | | | | 2.0x | | | | 27% | | | | 13% | | *BCP VIII (Feb 2020 / Feb 2026) | | 25,651,776 | | 11,257,684 | | 18,946,828 | | | 1.3x | | | | 6 | % | | 1,179,311 | | | 2.4x | | | 20,126,139 | | | 1.3x | | | | n/m | | | | 13% | | | | 25,907,791 | | | | 10,984,120 | | | | 21,094,309 | | | | 1.4x | | | | 6 | % | | | 1,507,061 | | | | 2.5x | | | | 22,601,370 | | | | 1.4x | | | | n/m | | | | 11% | | | | 16,623,978 | | 16,623,978 | | — | | | n/a | | | | — | | | — | | | n/a | | | — | | | n/a | | | | n/a | | | | n/a | | | | 19,230,289 | | | | 19,230,289 | | | | — | | | | n/a | | | | — | | | | — | | | | n/a | | | | — | | | | n/a | | | | n/a | | | | n/a | | Energy I (Aug 2011 / Feb 2015) | | 2,441,558 | | 174,492 | | 516,882 | | | 1.6x | | | | 58 | % | | 4,166,580 | | | 2.0x | | | 4,683,462 | | | 2.0x | | | | 12% | | | | 12% | | | | 2,441,558 | | | | 174,492 | | | | 524,555 | | | | 1.6x | | | | 58 | % | | | 4,182,579 | | | | 2.0x | | | | 4,707,134 | | | | 2.0x | | | | 14% | | | | 11% | | Energy II (Feb 2015 / Feb 2020) | | 4,628,506 | | 867,080 | | 4,391,172 | | | 1.7x | | | | 63 | % | | 3,153,521 | | | 1.5x | | | 7,544,693 | | | 1.6x | | | | 9% | | | | 8% | | | | 4,914,198 | | | | 860,834 | | | | 3,951,409 | | | | 1.8x | | | | 70 | % | | | 4,229,166 | | | | 1.7x | | | | 8,180,575 | | | | 1.8x | | | | 12% | | | | 8% | | *Energy III (Feb 2020 / Feb 2026) | | 4,367,658 | | 2,312,829 | | 4,032,943 | | | 2.1x | | | | 24 | % | | 1,076,572 | | | 2.3x | | | 5,109,515 | | | 2.2x | | | | 63% | | | | 43% | | | | 4,370,396 | | | | 1,573,733 | | | | 5,106,767 | | | | 1.9x | | | | 15 | % | | | 1,314,854 | | | | 2.4x | | | | 6,421,621 | | | | 2.0x | | | | 55% | | | | 33% | | | | 2,054,592 | | 2,054,592 | | — | | | n/a | | | | — | | | — | | | n/a | | | — | | | n/a | | | | n/a | | | | n/a | | Energy Transition IV (TBD) | | | | 3,241,333 | | | | 3,241,333 | | | | — | | | | n/a | | | | — | | | | — | | | | n/a | | | | — | | | | n/a | | | | n/a | | | | n/a | | BCP Asia I (Dec 2017 / Sep 2021) | | 2,438,028 | | 418,459 | | 2,785,974 | | | 1.5x | | | | 28 | % | | 1,787,587 | | | 4.9x | | | 4,573,561 | | | 2.1x | | | | 96% | | | | 27% | | | | 2,437,080 | | | | 417,503 | | | | 3,228,733 | | | | 1.8x | | | | 27 | % | | | 1,790,472 | | | | 4.9x | | | | 5,019,205 | | | | 2.3x | | | | 95% | | | | 26% | | *BCP Asia II (Sep 2021 / Sep 2027) | | 6,656,115 | | 5,853,941 | | 901,216 | | | 1.4x | | | | 14 | % | | 25 | | | n/a | | | 901,241 | | | 1.4x | | | | n/a | | | | n/m | | | | 6,770,483 | | | | 4,982,956 | | | | 2,317,215 | | | | 1.5x | | | | 6 | % | | | 25 | | | | n/a | | | | 2,317,240 | | | | 1.5x | | | | n/a | | | | 19% | | Core Private Equity I (Jan 2017 / Mar 2021) (h) | | 4,761,605 | | 1,161,678 | | 7,265,690 | | | 1.9x | | | | — | | | 2,423,556 | | | 4.4x | | | 9,689,246 | | | 2.2x | | | | 56% | | | | 19% | | | | 4,760,247 | | | | 1,169,489 | | | | 7,265,294 | | | | 1.9x | | | | — | | | | 2,830,764 | | | | 5.1x | | | | 10,096,058 | | | | 2.3x | | | | 58% | | | | 18% | | *Core Private Equity II (Mar 2021 / Mar 2026) (h) | | 8,205,237 | | 5,752,381 | | 2,861,516 | | | 1.2x | | | | — | | | 59,581 | | | n/a | | | 2,921,097 | | | 1.2x | | | | n/a | | | | 9% | | | | 8,450,914 | | | | 5,904,921 | | | | 3,554,718 | | | | 1.5x | | | | — | | | | 68,770 | | | | n/a | | | | 3,623,488 | | | | 1.5x | | | | n/a | | | | 15% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Corporate Private Equity | | $ 147,989,311 | | $ 50,768,384 | | $ 68,174,006 | | | 1.6x | | | | 18 | % | | $ 132,244,477 | | | 2.2x | | | $ 200,418,483 | | | 1.9x | | | | 16% | | | | 15% | | | $ | 152,683,867 | | | $ | 52,830,260 | | | $ | 70,365,272 | | | | 1.6x | | | | 15 | % | | $ | 138,968,892 | | | | 2.2x | | | $ | 209,334,164 | | | | 2.0x | | | | 16% | | | | 15% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning Date / Ending Date) (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars/Euros in Thousands, Except Where Noted) | | (Dollars/Euros in Thousands, Except Where Noted) | Private Equity (continued) | Private Equity (continued) | | Private Equity (continued) | | | | | | | *Tactical Opportunities (Various) | | $ 29,677,795 | | $ 15,841,153 | | $ 11,013,035 | | | 1.2x | | | | 10 | % | | $ 22,324,457 | | | 1.9x | | | $ 33,337,492 | | | 1.6x | | | | 16% | | | | 11% | | | $ | 30,791,361 | | | $ | 14,876,161 | | | $ | 12,797,374 | | | | 1.2x | | | | 7 | % | | $ | 23,350,221 | | | | 1.8x | | | $ | 36,147,595 | | | | 1.6x | | | | 16% | | | | 10% | | *Tactical Opportunities Co-Investment and Other (Various) | | 9,880,601 | | 1,362,882 | | 4,623,047 | | | 1.7x | | | | 7 | % | | 8,764,203 | | | 1.6x | | | 13,387,250 | | | 1.6x | | | | 18% | | | | 17% | | | | 10,866,176 | | | | 1,984,203 | | | | 3,889,626 | | | | 1.3x | | | | 3 | % | | | 10,343,902 | | | | 1.8x | | | | 14,233,528 | | | | 1.6x | | | | 20% | | | | 16% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Tactical Opportunities | | $ 39,558,396 | | $ 17,204,035 | | $ 15,636,082 | | | 1.3x | | | | 9 | % | | $ 31,088,660 | | | 1.8x | | | $ 46,724,742 | | | 1.6x | | | | 17% | | | | 12% | | | $ | 41,657,537 | | | $ | 16,860,364 | | | $ | 16,687,000 | | | | 1.2x | | | | 6 | % | | $ | 33,694,123 | | | | 1.8x | | | $ | 50,381,123 | | | | 1.6x | | | | 17% | | | | 12% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | *BXG I (Jul 2020 / Jul 2025) | | $ 5,056,267 | | $ 1,204,757 | | $ 3,597,195 | | | 1.0x | | | | 2 | % | | $ 406,582 | | | 3.2x | | | $ 4,003,777 | | | 1.1x | | | | n/m | | | | -2% | | | $ | 5,117,385 | | | $ | 1,229,251 | | | $ | 3,490,110 | | | | 1.0x | | | | 2 | % | | $ | 509,532 | | | | 2.6x | | | $ | 3,999,642 | | | | 1.0x | | | | n/m | | | | -3% | | | | 4,057,253 | | 4,057,253 | | — | | | n/a | | | | — | | | — | | | n/a | | | — | | | n/a | | | | n/a | | | | n/a | | | | 4,117,735 | | | | 4,117,735 | | | | — | | | | n/a | | | | — | | | | — | | | | n/a | | | | — | | | | n/a | | | | n/a | | | | n/a | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ 9,113,520 | | $ 5,262,010 | | $ 3,597,195 | | | 1.0x | | | | 2 | % | | $ 406,582 | | | 3.2x | | | $ 4,003,777 | | | 1.1x | | | | n/m | | | | -2% | | | $ | 9,235,120 | | | $ | 5,346,986 | | | $ | 3,490,110 | | | | 1.0x | | | | 2 | % | | $ | 509,532 | | | | 2.6x | | | $ | 3,999,642 | | | | 1.0x | | | | n/m | | | | -3% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Strategic Partners (Secondaries) | Strategic Partners (Secondaries) | | Strategic Partners (Secondaries) | | Strategic Partners I-V (Various) (i) | | $ 11,035,527 | | $ 628,775 | | $ 342,849 | | | n/a | | | | — | | | $ 16,541,714 | | | n/a | | | $ 16,884,563 | | | 1.7x | | | | n/a | | | | 13% | | | $ | 11,035,527 | | | $ | 139,208 | | | $ | 7,902 | | | | n/a | | | | — | | | $ | 16,782,783 | | | | n/a | | | $ | 16,790,685 | | | | 1.7x | | | | n/a | | | | 13% | | Strategic Partners VI (Apr 2014 / Apr 2016) (i) | | 4,362,772 | | 874,051 | | 972,992 | | | n/a | | | | — | | | 4,085,158 | | | n/a | | | 5,058,150 | | | 1.7x | | | | n/a | | | | 14% | | | | 4,362,772 | | | | 609,788 | | | | 768,144 | | | | n/a | | | | — | | | | 4,292,757 | | | | n/a | | | | 5,060,901 | | | | 1.7x | | | | n/a | | | | 14% | | Strategic Partners VII (May 2016 / Mar 2019) (i) | | 7,489,970 | | 1,705,043 | | 4,300,584 | | | n/a | | | | — | | | 6,260,527 | | | n/a | | | 10,561,111 | | | 2.0x | | | | n/a | | | | 19% | | | | 7,489,970 | | | | 1,572,428 | | | | 4,126,974 | | | | n/a | | | | — | | | | 6,722,300 | | | | n/a | | | | 10,849,274 | | | | 1.9x | | | | n/a | | | | 17% | | Strategic Partners Real Assets II (May 2017 / Jun 2020) (i) | | 1,749,807 | | 477,595 | | 1,207,811 | | | n/a | | | | — | | | 1,100,472 | | | n/a | | | 2,308,283 | | | 1.7x | | | | n/a | | | | 17% | | | | 1,749,807 | | | | 474,064 | | | | 1,286,170 | | | | n/a | | | | — | | | | 1,142,630 | | | | n/a | | | | 2,428,800 | | | | 1.7x | | | | n/a | | | | 17% | | Strategic Partners VIII (Mar 2019 / Oct 2021) (i) | | 10,763,600 | | 4,576,451 | | 8,407,392 | | | n/a | | | | — | | | 5,894,590 | | | n/a | | | 14,301,982 | | | 1.8x | | | | n/a | | | | 35% | | | | 10,763,600 | | | | 4,085,028 | | | | 7,924,434 | | | | n/a | | | | — | | | | 6,335,653 | | | | n/a | | | | 14,260,087 | | | | 1.8x | | | | n/a | | | | 27% | | *Strategic Partners Real Estate, SMA and Other (Various) (i) | | 6,061,738 | | 1,974,271 | | 2,023,763 | | | n/a | | | | — | | | 2,009,060 | | | n/a | | | 4,032,823 | | | 1.7x | | | | n/a | | | | 17% | | | | 7,055,474 | | | | 2,563,005 | | | | 2,105,684 | | | | n/a | | | | — | | | | 2,382,194 | | | | n/a | | | | 4,487,878 | | | | 1.6x | | | | n/a | | | | 13% | | *Strategic Partners Infrastructure III (Jun 2020 / Jul 2024) (i) | | 3,250,100 | | 1,310,498 | | 1,365,189 | | | n/a | | | | — | | | 239,153 | | | n/a | | | 1,604,342 | | | 1.5x | | | | n/a | | | | 40% | | | | 3,250,100 | | | | 708,817 | | | | 1,980,800 | | | | n/a | | | | — | | | | 249,542 | | | | n/a | | | | 2,230,342 | | | | 1.4x | | | | n/a | | | | 26% | | *Strategic Partners IX (Oct 2021 / Jan 2027) (i) | | 19,492,126 | | 12,287,157 | | 4,340,449 | | | n/a | | | | — | | | 538,872 | | | n/a | | | 4,879,321 | | | 1.2x | | | | n/a | | | | 32% | | | | 19,542,126 | | | | 9,574,305 | | | | 5,693,178 | | | | n/a | | | | — | | | | 662,344 | | | | n/a | | | | 6,355,522 | | | | 1.4x | | | | n/a | | | | 18% | | *Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i) | | 2,045,211 | | 1,013,668 | | 659,731 | | | n/a | | | | — | | | — | | | n/a | | | 659,731 | | | 1.2x | | | | n/a | | | | 7% | | | | 2,095,211 | | | | 881,849 | | | | 854,004 | | | | n/a | | | | — | | | | 3,947 | | | | n/a | | | | 857,951 | | | | 1.0x | | | | n/a | | | | -2% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Strategic Partners (Secondaries) | | $ 66,250,851 | | $ 24,847,509 | | $ 23,620,760 | | | n/a | | | | — | | | $ 36,669,546 | | | n/a | | | $ 60,290,306 | | | 1.7x | | | | n/a | | | | 15% | | | $ | 67,344,587 | | | $ | 20,608,492 | | | $ | 24,747,290 | | | | n/a | | | | — | | | $ | 38,574,150 | | | | n/a | | | $ | 63,321,440 | | | | 1.7x | | | | n/a | | | | 14% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Clarus IV (Jan 2018 / Jan 2020) | | $ 910,000 | | $ 95,412 | | $ 878,772 | | | 1.5x | | | | 1 | % | | $ 299,296 | | | 2.0x | | | $ 1,178,068 | | | 1.6x | | | | 24% | | | | 11% | | | $ | 910,000 | | | $ | 73,154 | | | $ | 793,632 | | | | 1.9x | | | | — | | | $ | 369,363 | | | | 1.1x | | | $ | 1,162,995 | | | | 1.6x | | | | - | | | | 9% | | *BXLS V (Jan 2020 / Jan 2025) | | 4,910,605 | | 3,253,897 | | 1,797,158 | | | 1.3x | | | | 4 | % | | 96,352 | | | 1.1x | | | 1,893,510 | | | 1.3x | | | | n/m | | | | 3% | | | | 4,988,972 | | | | 2,912,985 | | | | 2,779,957 | | | | 1.6x | | | | 5 | % | | | 378,348 | | | | 1.1x | | | | 3,158,305 | | | | 1.5x | | | | n/m | | | | 12% | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Beginning Date / Ending Date) (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars/Euros in Thousands, Except Where Noted) | | (Dollars/Euros in Thousands, Except Where Noted) | | | | | | Mezzanine / Opportunistic I (Jul 2007 / Oct 2011) | | $ 2,000,000 | | $ 97,114 | | $ — | | | n/a | | | | — | | | $ 4,809,097 | | | 1.6x | | | $ 4,809,097 | | | 1.6x | | | | n/a | | | | 17 | % | | $ | 2,000,000 | | | $ | 97,114 | | | $ | — | | | | n/a | | | | — | | | $ | 4,809,113 | | | | 1.6x | | | $ | 4,809,113 | | | | 1.6x | | | | n/a | | | | 17 | % | Mezzanine / Opportunistic II (Nov 2011 / Nov 2016) | | 4,120,000 | | 993,248 | | 155,137 | | | 0.2x | | | | — | | | 6,588,424 | | | 1.6x | | | 6,743,561 | | | 1.4x | | | | n/a | | | | 10 | % | | | 4,120,000 | | | | 993,273 | | | | 117,138 | | | | 0.2x | | | | — | | | | 6,658,981 | | | | 1.6x | | | | 6,776,119 | | | | 1.4x | | | | n/a | | | | 10 | % | Mezzanine / Opportunistic III (Sep 2016 / Jan 2021) | | 6,639,133 | | 905,741 | | 2,549,757 | | | 1.0x | | | | — | | | 7,263,532 | | | 1.6x | | | 9,813,289 | | | 1.4x | | | | n/a | | | | 10 | % | | | 6,639,133 | | | | 1,148,209 | | | | 2,114,634 | | | | 1.0x | | | | — | | | | 7,844,281 | | | | 1.6x | | | | 9,958,915 | | | | 1.4x | | | | n/a | | | | 10 | % | *Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026) | | 5,016,771 | | 3,271,137 | | 2,561,989 | | | 1.1x | | | | 1 | % | | 499,780 | | | 1.7x | | | 3,061,769 | | | 1.1x | | | | n/a | | | | 10 | % | | | 5,016,771 | | | | 1,951,268 | | | | 3,878,623 | | | | 1.1x | | | | — | | | | 930,085 | | | | 1.8x | | | | 4,808,708 | | | | 1.2x | | | | n/a | | | | 14 | % | Stressed / Distressed I (Sep 2009 / May 2013) | | 3,253,143 | | — | | — | | | n/a | | | | — | | | 5,777,098 | | | 1.3x | | | 5,777,098 | | | 1.3x | | | | n/a | | | | 9 | % | | | 3,253,143 | | | | — | | | | — | | | | n/a | | | | — | | | | 5,777,098 | | | | 1.3x | | | | 5,777,098 | | | | 1.3x | | | | n/a | | | | 9 | % | Stressed / Distressed II (Jun 2013 / Jun 2018) | | 5,125,000 | | 547,430 | | 270,251 | | | 0.4x | | | | — | | | 5,311,039 | | | 1.2x | | | 5,581,290 | | | 1.1x | | | | n/a | | | | 1 | % | | | 5,125,000 | | | | 547,430 | | | | 216,845 | | | | 0.3x | | | | — | | | | 5,392,565 | | | | 1.2x | | | | 5,609,410 | | | | 1.1x | | | | n/a | | | | 1 | % | Stressed / Distressed III (Dec 2017 / Dec 2022) | | 7,356,380 | | 1,979,950 | | 3,158,178 | | | 1.0x | | | | — | | | 3,208,190 | | | 1.4x | | | 6,366,368 | | | 1.1x | | | | n/a | | | | 7 | % | | | 7,356,380 | | | | 826,481 | | | | 4,162,531 | | | | 1.2x | | | | — | | | | 2,356,768 | | | | 1.3x | | | | 6,519,299 | | | | 1.2x | | | | n/a | | | | 9 | % | Energy I (Nov 2015 / Nov 2018) | | 2,856,867 | | 1,134,904 | | 482,636 | | | 0.7x | | | | — | | | 3,001,007 | | | 1.8x | | | 3,483,643 | | | 1.5x | | | | n/a | | | | 10 | % | | | 2,856,867 | | | | 1,154,846 | | | | 344,491 | | | | 0.8x | | | | — | | | | 3,212,049 | | | | 1.6x | | | | 3,556,540 | | | | 1.5x | | | | n/a | | | | 10 | % | Energy II (Feb 2019 / Jun 2023) | | 3,616,081 | | 1,599,068 | | 2,085,432 | | | 1.1x | | | | — | | | 1,387,127 | | | 1.7x | | | 3,472,559 | | | 1.2x | | | | n/a | | | | 19 | % | | | 3,616,081 | | | | 1,503,865 | | | | 1,731,457 | | | | 1.0x | | | | — | | | | 1,937,938 | | | | 1.6x | | | | 3,669,395 | | | | 1.3x | | | | n/a | | | | 16 | % | *Green Energy III (May 2023 / May 2028) | | 5,940,534 | | 5,895,199 | | 46,650 | | | 1.0x | | | | — | | | — | | | n/a | | | 46,650 | | | 1.0x | | | | n/a | | | | n/m | | | | 6,477,000 | | | | 5,488,866 | | | | 1,005,818 | | | | 1.0x | | | | — | | | | 20,437 | | | | n/a | | | | 1,026,255 | | | | 1.0x | | | | n/a | | | | n/ | m | European Senior Debt I (Feb 2015 / Feb 2019) | | | | | | | | | 0.7x | | | | — | | | | | | 1.4x | | | | | | 1.2x | | | | n/a | | | | 2 | % | | | 1,964,689 | | | | 142,898 | | | | 515,052 | | | | 0.7x | | | | — | | | | 2,682,985 | | | | 1.3x | | | | 3,198,037 | | | | 1.2x | | | | n/a | | | | 2 | % | European Senior Debt II (Jun 2019 / Jun 2023) | | | | | | | | | 1.0x | | | | — | | | | | | 1.9x | | | | | | 1.2x | | | | n/a | | | | 10 | % | European Senior Debt II (Jun 2019 / Jun 2023) (j) | | | | 4,088,344 | | | | 949,277 | | | | 4,437,562 | | | | 1.0x | | | | — | | | | 2,113,662 | | | | 2.3x | | | | 6,551,224 | | | | 1.2x | | | | n/a | | | | 10 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Credit Drawdown Funds (j) | | $ 52,829,568 | | $ 17,828,307 | | $ 16,645,736 | | | 0.9x | | | | — | | | $ 42,850,566 | | | 1.5x | | | $ 59,496,302 | | | 1.3x | | | | n/a | | | | 10 | % | Total Credit Drawdown Funds (k) | | | $ | 53,366,033 | | | $ | 14,890,901 | | | $ | 18,904,358 | | | | 1.0x | | | | — | | | $ | 44,464,994 | | | | 1.5x | | | $ | 63,369,352 | | | | 1.3x | | | | n/a | | | | 10 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selected Perpetual Capital Strategies (k)(l) | | | | | | | | | | | | | Fund (Inception Year) (a) | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in Thousands, Except Where Noted) | | | | | | | | | | | | | | | BPP - Blackstone Property Partners (2013) (m) | | | Core+ Real Estate | | | $ | 71,011,944 | | | | 9 | % | BREIT - Blackstone Real Estate Income Trust (2017) (n) | | | Core+ Real Estate | | | | 67,775,564 | | | | 11 | % | | | | | | | | | | | | | | BXMT - Blackstone Mortgage Trust (2013) (p) | | | Real Estate Debt | | | | 6,170,531 | | | | 6 | % | | | | | | | | | | | | | | BIP - Blackstone Infrastructure Partners (2019) (q) | | | Infrastructure | | | | 29,117,203 | | | | 14 | % | | | | | | | | | | | | | | BXSL - Blackstone Secured Lending Fund (2018) (r) | | | U.S. Direct Lending | | | | 10,905,781 | | | | 10 | % | BCRED - Blackstone Private Credit Fund (2021) (s) | | | U.S. Direct Lending | | | | 58,949,896 | | | | 9 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | BSCH - Blackstone Strategic Capital Holdings (2014) (u) | | | GP Stakes | | | | 9,093,463 | | | | 11 | % |
| | | | | | | | | | | | | Strategy (Inception Year) (a) | | | | |
| | | | | | | | | | | | | | | | | | | (Dollars in Thousands, Except Where Noted) | | | | | | | | | | | | | | | BPP—Blackstone Property Partners Platform (2013) (n) | | | Core+ Real Estate | | | $ | 64,982 | | | | 6 | % | BREIT—Blackstone Real Estate Income Trust (2017) (o) | | | Core+ Real Estate | | | | 59,275 | | | | 10 | % | | | | | | | | | | | | | | BXMT—Blackstone Mortgage Trust (2013) (q) | | | Real Estate Debt | | | | 6,134 | | | | 6 | % | | | | | | | | | | | | | | BIP—Blackstone Infrastructure Partners (2019) (r) | | | Infrastructure | | | | 34,292 | | | | 15 | % | BXPE—Blackstone Private Equity Strategies Fund Program (s) | | | Private Equity | | | | 2,715 | | | | n/ | m | | | | | | | | | | | | | | BXSL—Blackstone Secured Lending Fund (2018) (t) | | | U.S. Direct Lending | | | | 11,771 | | | | 11 | % | BCRED—Blackstone Private Credit Fund (2021) (u) | | | U.S. Direct Lending | | | | 66,357 | | | | 10 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | BSCH—Blackstone Strategic Capital Holdings (2014) (w) | | | GP Stakes | | | | 9,782 | | | | 12 | % |
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. |
| 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 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, 2023March 31, 2024 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) | Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC and Total Net IRRs are reported on a three-month lag 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 |
| 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 PartnersI-V
Committed Capital and Strategic Partners Real Estate, SMA and Other amounts exclude investment vehicles where Blackstone does not earn fees, which were previously included.Available Capital are presented as of the current quarter. |
| (j) | European Senior Debt II Levered has a net return of 16%, European Senior Debt II Unlevered has a net return of 8%. |
| (k) | Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented. |
(k)(l) | 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) perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees. |
(l)(m) | Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, 2023March 31, 2024 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)(n) | 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, 2023,March 31, 2024, these vehicles represented $2.9$2.3 billion of Total Assets Under Management. |
(n)(o) | 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. This return is not representative of the 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)(p) | 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)(q) | 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)(r) | Including co-investment vehicles, BIP Total Assets Under Management is $37.0$43.9 billion. |
(r)(s) | BXPE Fund Program’s Total Assets Under Management reflects net asset value as of February 29, 2024 plus net subscriptions as of March 1, 2024. For purposes of segment Assets Under Management reporting, BXPE’s Assets Under Management are reported by the business managing the assets. |
| (t) | The BXSL Total Assets Under Management and Total Net Return are reported on aone-quarter
lag.presented as of December 31, 2023. 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 November 20, 2018. |
(s)(u) | 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. This return is not representative of the return experienced by any particular investor or share class. Total Net Return 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, 2023March 31, 2024 was $23.8$31.0 billion. |
(t)(v) | 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 January 7, 2021. |
(u)(w) | 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 $10.0$10.8 billion. |
Discussed below is our Segment Distributable Earnings for each of our segments. This information is reflected in the manner utilized by our senior management to make operating decisions, assess performance and allocate resources. References to “our” sectors or investments may also refer to portfolio companies and investments of the underlying funds that we manage. The following table presents the results of operations for our Real Estate segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 709,977 | | | $ | 611,751 | | | $ | 98,226 | | | | 16% | | | $ | 1,415,364 | | | $ | 1,191,937 | | | $ | 223,427 | | | | 19% | | | $ | 694,179 | | | $ | 705,387 | | | $ | (11,208 | ) | | | -2% | | Transaction and Other Fees, Net | | | 27,066 | | | | 46,974 | | | | (19,908 | ) | | | -42% | | | | 47,627 | | | | 87,459 | | | | (39,832 | ) | | | -46% | | | | 29,190 | | | | 20,561 | | | | 8,629 | | | | 42% | | | | | (8,307 | ) | | | (689 | ) | | | (7,618 | ) | | | n/m | | | | (18,764 | ) | | | (1,649 | ) | | | (17,115 | ) | | | n/m | | | | (2,930 | ) | | | (10,457 | ) | | | 7,527 | | | | -72% | | | | | | | | | | | | | | | | | | | | | | | | | | Total Management Fees, Net | | | 728,736 | | | | 658,036 | | | | 70,700 | | | | 11% | | | | 1,444,227 | | | | 1,277,747 | | | | 166,480 | | | | 13% | | | | 720,439 | | | | 715,491 | | | | 4,948 | | | | 1% | | Fee Related Performance Revenues | | | 131,299 | | | | 265,507 | | | | (134,208 | ) | | | -51% | | | | 152,047 | | | | 757,024 | | | | (604,977 | ) | | | -80% | | | | 129,958 | | | | 20,748 | | | | 109,210 | | | | 526% | | | | | (199,006 | ) | | | (273,893 | ) | | | 74,887 | | | | -27% | | | | (336,616 | ) | | | (618,735 | ) | | | 282,119 | | | | -46% | | | | (174,569 | ) | | | (137,610 | ) | | | (36,959 | ) | | | 27% | | | | | (71,949 | ) | | | (88,329 | ) | | | 16,380 | | | | -19% | | | | (146,130 | ) | | | (154,332 | ) | | | 8,202 | | | | -5% | | | | (89,762 | ) | | | (74,181 | ) | | | (15,581 | ) | | | 21% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 589,080 | | | | 561,321 | | | | 27,759 | | | | 5% | | | | 1,113,528 | | | | 1,261,704 | | | | (148,176 | ) | | | -12% | | | | 586,066 | | | | 524,448 | | | | 61,618 | | | | 12% | | | | | | | | | | | | | | | | | | | | | | | | | | Realized Performance Revenues | | | 119,721 | | | | 1,997,720 | | | | (1,877,999 | ) | | | -94% | | | | 130,817 | | | | 2,800,636 | | | | (2,669,819 | ) | | | -95% | | | | 49,967 | | | | 11,096 | | | | 38,871 | | | | 350% | | Realized Performance Compensation | | | (69,593 | ) | | | (831,402 | ) | | | 761,809 | | | | -92% | | | | (72,758 | ) | | | (1,121,433 | ) | | | 1,048,675 | | | | -94% | | | | (21,863 | ) | | | (3,165 | ) | | | (18,698 | ) | | | 591% | | Realized Principal Investment Income (Loss) | | | (70 | ) | | | 29,116 | | | | (29,186 | ) | | | n/m | | | | 2,154 | | | | 83,091 | | | | (80,937 | ) | | | -97% | | Realized Principal Investment Income | | | | 2,193 | | | | 2,224 | | | | (31 | ) | | | -1% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 50,058 | | | | 1,195,434 | | | | (1,145,376 | ) | | | -96% | | | | 60,213 | | | | 1,762,294 | | | | (1,702,081 | ) | | | -97% | | | | 30,297 | | | | 10,155 | | | | 20,142 | | | | 198% | | | | | | | | | | | | | | | | | | | | | | | | | | Segment Distributable Earnings | | $ | 639,138 | | | $ | 1,756,755 | | | $ | (1,117,617 | ) | | | | | | $ | 1,173,741 | | | $ | 3,023,998 | | | $ | (1,850,257 | ) | | | | | | $ | 616,363 | | | $ | 534,603 | | | $ | 81,760 | | | | 15% | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2023March 31, 2024 Compared to Three Months Ended June 30, 2022March 31, 2023 Segment Distributable Earnings were $639.1$616.4 million for the three months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $1.1 billion,$81.8 million, compared to $1.8 billion$534.6 million for the three months ended June 30, 2022.March 31, 2023. The decreaseincrease in Segment Distributable Earnings was primarily attributable to a decreaseincreases of $1.1 billion in Net Realizations, partially offset by an increase of $27.8$61.6 million in Fee Related Earnings.Earnings and $20.1 million in Net Realizations. Our global opportunistic and core+Core+ real estate portfolios are concentratedportfolios’ concentration in high-conviction sectors where we see favorable long-term fundamentals helped support performance in the first quarter of 2024. Demand drivers remain in place across key sectors, including certain sectors that have demonstrated outsized market rent growth. Notwithstanding this strength,digital infrastructure, logistics and student housing. Nevertheless, the real estate market has been characterized by divergent performance across sectors. WeakeningGrowth has slowed and may moderate further in certain sectors with elevated near-term supply, including U.S. multifamily and life sciences office, which has negatively impacted valuations of such assets. Weak fundamentals persistpersisted in the office sector and traditional U.S. office market, where traditional office buildings remainremained particularly challenged. Traditional U.S. office, however, represents less than 2% of the aggregate net asset value of our global opportunistic and core+Core+ real estate portfolios. Increasing interest rates, continued economic uncertainty and capital markets volatility have contributed to relatively lower realization and deployment activity
in recent quarters, although overallportfolios. High interest rates, which have negatively impacted real estate valuations, could continue to be a challenge should they remain at high levels for an extended period. The high interest rate environment has also contributed to lower realizations, and deployment increased moderatelywe expect a lag between an improving market environment and a reacceleration of realizations. With signs of the debt markets reopening, we believe a more favorable period for the cost and availability of financing, together with the steep decline in the second quarter as compared tofuture new supply in certain sectors, should be supportive of real estate valuations over time.
In our perpetual capital strategies, in the first quarter of 2023. Coupled with expectations of a more constrained financing market, these conditions are likely to continue to result in reduced realizations for a period of time, which would negatively impact Segment Distributable Earnings in our Real Estate segment. Nevertheless, we believe that in the context of decelerating inflation and more supportive markets, realizations should re-accelerate over time. Although deployment has been more challenging in recent quarters, we believe our real estate segment funds are well positioned to take advantage of deployment opportunities that arise. Fundraising in the second quarter of 2023 remained positive despite a challenging market backdrop. Perpetual capital strategies, including BREIT, represent an increasing percentage of Total Assets Under Management in our Real Estate segment. While2024, BREIT repurchase requests fell to their lowest in Junenearly two years, and July were materially down from their peakthe vehicle ceased to be in January 2023, BREIT continued to experience net outflows in the second quarter. A continuation or worseningproration. While a deterioration of the current market environment however, could further adversely affect net flowsinflows in certain perpetual capital strategies, for an extended period of time. Wewe believe the long-term growth trajectory remains positive and that strong investment performance and investor under-allocation to such strategies should drive flows over the long-term. See “Part I. Item 1A. Risk Factors — Risks Related to our Business — We have increasingly undertaken business initiatives to increase the number and type of investment products we offer to individual investors, which could expose us to new and greater levels of risk” in our Annual Report on Form10-K
for the year ended December 31, 2022.Fee Related Earnings were $589.1$586.1 million for the three months ended June 30, 2023,March 31, 2024, an increase of $27.8$61.6 million, compared to $561.3$524.4 million for the three months ended June 30, 2022.March 31, 2023. The increase in Fee Related Earnings was primarily attributable to a decrease of $74.9 million in Fee Related Compensation, an increase of $70.7$109.2 million in Management Fees, Net and a decrease of $16.4 million in Other Operating Expenses, partially offset by a decrease of $134.2 million in Fee Related Performance Revenues. Fee Related Compensation was $199.0 million for the three months ended June 30, 2023, a decrease of $74.9 million, compared to $273.9 million for the three months ended June 30, 2022. The decrease was primarily due to a decrease in Fee Related Performance Revenues, partially offset by an increaseincreases of $37.0 million in Management Fees, Net, both of which impact Fee Related Compensation.
Management Fees, Net were $728.7Compensation and $15.6 million for the three months ended June 30, 2023, an increase of $70.7 million, compared to $658.0 million for the three months ended June 30, 2022, primarily driven by an increase in Base Management Fees, partially offset by a decrease in Transaction and Other Fees, Net. Base Management Fees increased $98.2 million primarily due toFee-Earning
Assets Under Management growth in BREP and BREDS. Transaction and Other Fees, Net decreased $19.9 million primarily due to a decrease in acquisition fees.Other Operating Expenses were $71.9 million for three months ended June 30, 2023, a decrease of $16.4 million, compared to $88.3 million for three months ended June 30, 2022. The decrease was primarily due to professional fees and travel and entertainment.Expenses. Fee Related Performance Revenues were $131.3$130.0 million for the three months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $134.2$109.2 million, compared to $265.5$20.7 million for the three months ended June 30, 2022.March 31, 2023. The decreaseincrease was primarily due to lowerhigher Fee Related Performance Revenues in BREIT.Core+ real estate. Fee Related Compensation was $174.6 million for the three months ended March 31, 2024, an increase of $37.0 million, compared to $137.6 million for the three months ended March 31, 2023. The increase was primarily due to an increase in Fee Related Performance Revenues, on which a portion of Fee Related Compensation is based. Other Operating Expenses were $89.8 million for the three months ended March 31, 2024, an increase of $15.6 million, compared to $74.2 million for the three months ended March 31, 2023. The increase was primarily due to occupancy costs and loan servicing expenses. Net Realizations were $50.1$30.3 million for the three months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $1.1 billion,$20.1 million, compared to $1.2 billion$10.2 million for the three months ended June 30, 2022.March 31, 2023. The decreaseincrease in Net Realizations was primarily attributable to a decreasean increase of $1.9 billion$38.9 million in Realized Performance Revenues, partially offset by a decrease of $761.8 million in Realized Performance Compensation.
Realized Performance Revenues were $119.7 million for the three months ended June 30, 2023, a decrease of $1.9 billion, compared to $2.0 billion for the three months ended June 30, 2022. The decrease was primarily due to lower Realized Performance Revenues in BREP.
Realized Performance Compensation was $69.6 million for the three months ended June 30, 2023, a decrease of $761.8 million, compared to $831.4 million for the three months ended June 30, 2022. The decrease was primarily due to the decrease in Realized Performance Revenues.
Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Segment Distributable Earnings were $1.2 billion for the six months ended June 30, 2023, a decrease of $1.9 billion, compared to $3.0 billion for the six months ended June 30, 2022. The decrease in Segment Distributable Earnings was attributable to decreases of $1.7 billion in Net Realizations and $148.2 million in Fee Related Earnings.
Fee Related Earnings were $1.1 billion for the six months ended June 30, 2023, a decrease of $148.2 million, compared to $1.3 billion for the six months ended June 30, 2022. The decrease in Fee Related Earnings was attributable to a decrease of $605.0 million in Fee Related Performance Revenues, partially offset by a decrease of $282.1 million in Fee Related Compensation and an increase of $166.5$18.7 million in Management Fees, Net.
Fee Related Performance Revenues were $152.0 million for the six months ended June 30, 2023, a decrease of $605.0 million, compared to $757.0 million for the six months ended June 30, 2022. The decrease was primarily due to lower Fee Related Performance Revenues in BREIT.
Fee Related Compensation was $336.6 million for the six months ended June 30, 2023, a decrease of $282.1 million, compared to $618.7 million for the six months ended June 30, 2022. The decrease was primarily due to a decrease in Fee Related Performance Revenues, partially offset by an increase in Management Fees, Net, both of which impact Fee Related Compensation.
Management Fees, Net were $1.4 billion for the six months ended June 30, 2023, an increase of $166.5 million, compared to $1.3 billion for the six months ended June 30, 2022, primarily driven by an increase in Base Management Fees. Base Management Fees increased $223.4 million primarily due toFee-Earning
Assets Under Management growth in BREP and BREDS.Net Realizations were $60.2 million for the six months ended June 30, 2023, a decrease of $1.7 billion, compared to $1.8 billion for the six months ended June 30, 2022. The decrease in Net Realizations was attributable to a decrease of $2.7 billion in Realized Performance Revenues, partially offset by a decrease of $1.0 billion in Realized Performance Compensation.
Realized Performance Revenues were $130.8$50.0 million for the sixthree months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $2.7 billion,$38.9 million, compared to $2.8 billion$11.1 million for the sixthree months ended June 30, 2022.March 31, 2023. The decreaseincrease was primarily due to lowerhigher Realized Performance Revenues in BREP.BREDS and BPP and co-investment. Realized Performance Compensation was $72.8$21.9 million for the sixthree months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $1.0 billion,$18.7 million, compared to $1.1 billion$3.2 million for the sixthree months ended June 30, 2022.March 31, 2023. The decreaseincrease was primarily due to the decreaseincrease in Realized Performance Revenues.
Fund return information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund 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 performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table presents the internal rates of return, except where noted, of our significant real estate funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -8% | | | | -6% | | | | 1% | | | | 1% | | | | -15% | | | | -12% | | | | 9% | | | | 7% | | | | 29% | | | | 22% | | | | 21% | | | | 14% | | | | -5% | | | | -5% | | | | -7% | | | | -6% | | | | 27% | | | | 20% | | | | 21% | | | | 14% | | | | | - | | | | -1% | | | | -2% | | | | -2% | | | | -2% | | | | -2% | | | | 12% | | | | 10% | | | | 35% | | | | 28% | | | | 22% | | | | 16% | | | | 1% | | | | 1% | | | | -2% | | | | -2% | | | | 31% | | | | 24% | | | | 20% | | | | 14% | | | | | 1% | | | | - | | | | -1% | | | | -1% | | | | 1% | | | | - | | | | 18% | | | | 14% | | | | 89% | | | | 61% | | | | 34% | | | | 24% | | | | - | | | | - | | | | - | | | | - | | | | 86% | | | | 59% | | | | 22% | | | | 15% | | | | | -3% | | | | -3% | | | | -2% | | | | -2% | | | | -6% | | | | -6% | | | | 2% | | | | - | | | | 27% | | | | 19% | | | | 19% | | | | 13% | | | | 2% | | | | 1% | | | | -3% | | | | -3% | | | | 27% | | | | 19% | | | | 18% | | | | 12% | | | | | -1% | | | | -1% | | | | - | | | | - | | | | -3% | | | | -3% | | | | 6% | | | | 5% | | | | 51% | | | | 42% | | | | 16% | | | | 11% | | | | - | | | | - | | | | -2% | | | | -2% | | | | 49% | | | | 41% | | | | 13% | | | | 9% | | | | | 4% | | | | 2% | | | | 1% | | | | - | | | | 8% | | | | 5% | | | | 11% | | | | 8% | | | | 97% | | | | 72% | | | | 30% | | | | 19% | | | | 1% | | | | 1% | | | | 4% | | | | 2% | | | | 97% | | | | 72% | | | | 24% | | | | 15% | | | | | -1% | | | | - | | | | -3% | | | | -3% | | | | -1% | | | | -1% | | | | - | | | | - | | | | 25% | | | | 17% | | | | 18% | | | | 12% | | | | -1% | | | | -1% | | | | -1% | | | | -1% | | | | 23% | | | | 16% | | | | 18% | | | | 12% | | | | | -1% | | | | -1% | | | | -4% | | | | -4% | | | | -2% | | | | - | | | | - | | | | -1% | | | | 47% | | | | 32% | | | | 11% | | | | 7% | | | | -2% | | | | -2% | | | | - | | | | 1% | | | | 45% | | | | 31% | | | | 9% | | | | 5% | | | | | - | | | | -4% | | | | n/a | | | | n/a | | | | 3% | | | | -7% | | | | n/a | | | | n/a | | | | n/a | | | | n/a | | | | - | | | | -20% | | | | -2% | | | | -5% | | | | n/m | | | | n/m | | | | n/a | | | | n/a | | | | -5% | | | | -21% | | | | | 2% | | | | 2% | | | | - | | | | - | | | | 3% | | | | 2% | | | | 22% | | | | 21% | | | | 18% | | | | 16% | | | | 18% | | | | 16% | | | | -2% | | | | -2% | | | | 1% | | | | 1% | | | | 18% | | | | 16% | | | | 18% | | | | 16% | | | | | 1% | | | | 1% | | | | 2% | | | | 1% | | | | -2% | | | | -2% | | | | 12% | | | | 11% | | | | n/a | | | | n/a | | | | 11% | | | | 9% | | | | - | | | | - | | | | -3% | | | | -3% | | | | n/a | | | | n/a | | | | 8% | | | | 6% | | | | | n/a | | | | 2% | | | | n/a | | | | 2% | | | | n/a | | | | 1% | | | | n/a | | | | 7% | | | | n/a | | | | n/a | | | | n/a | | | | 11% | | | | n/a | | | | 2% | | | | n/a | | | | -1% | | | | n/a | | | | n/a | | | | n/a | | | | 10% | | | | | n/a | | | | 2% | | | | n/a | | | | 2% | | | | n/a | | | | 1% | | | | n/a | | | | 7% | | | | n/a | | | | n/a | | | | n/a | | | | 12% | | | | | | n/a | | | | 2% | | | | n/a | | | | -1% | | | | n/a | | | | n/a | | | | n/a | | | | 10% | | | | | 3% | | | | 2% | | | | -2% | | | | -2% | | | | 4% | | | | 3% | | | | - | | | | -1% | | | | 14% | | | | 10% | | | | 13% | | | | 9% | | | | 5% | | | | 3% | | | | 1% | | | | - | | | | 14% | | | | 10% | | | | 14% | | | | 9% | | | | | n/a | | | | 20% | | | | n/a | | | | -11% | | | | n/a | | | | 5% | | | | n/a | | | | -7% | | | | n/a | | | | n/a | | | | n/a | | | | 6% | | | | n/a | | | | -3% | | | | n/a | | | | -13% | | | | n/a | | | | n/a | | | | n/a | | | | 6% | |
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. |
| (a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. Excludes investment vehicles where Blackstone does not earn fees. |
| (b) | Fund return information for the BREP funds for the three months ended March 31, 2023 previously presented in our Quarterly Report on Form 10-Q for such period reflected computational errors that resulted in the presentation of annualized returns instead of quarterly returns. The corrected internal rates of return (gross and net) for such period for such funds were as follows: BREP VII(-7%,
-6%),
BREP VIII (-2%,
-2%),
BREP IX (—, —), BREP Europe IV(-3%,
-3%),
BREP Europe V(-2%,
-2%),
BREP Europe VI (4%, 2%), BREP Asia I(-1%,
-1%),
BREP Asia II (—, 1%), and BREPCo-Investment
(1%, 1%).are reflected in the table. |
| (c) | Euro-based internal rates of return. |
| (d) | 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. |
| (e) | The BPP platform, which comprises over 30 funds, co-investment and separately managed account vehicles, represents the Core+ real estate funds which invest with a more modest risk profile and lower leverage. |
| (f) | Reflects a per share blended return for each respective period, 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 not representative of the returns experienced by any particular investor or share class. Inception to date returns are presented on an annualized basis and are from January 1, 2017. |
| (g) | 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. Inception to date return is from January 1, 2017. |
| (h) | BREDS High-Yield represents the flagship real estate debt drawdown funds only. Inception to date returns are from July 1, 2009. |
| (i) | Reflects annualized return of a shareholder invested in BXMT as of the beginning of each period presented, assuming reinvestment of all dividends received during the period, and net of all fees and expenses incurred by BXMT. Return incorporates the closing NYSE stock price as of each period end. Inception to date returns are from May 22, 2013. |
Funds With Closed Investment Periods as of June 30, 2023March 31, 2024 The Real Estate segment has twelvefourteen funds with closed investment periods as of June 30, 2023:March 31, 2024: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP IV, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of June 30, 2023,March 31, 2024, BREP VII, BREP VI, BREP V, BREP IV, BREP Europe IV, and BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP IX, BREP VIII, BREP Europe VI, BREP Europe V, BREP Asia II, BREP Asia IBREDS IV and BREDS III were above their carried interest thresholds.thresholds as of March 31, 2024, and BREP Asia II was below its carried interest threshold. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.
The following table presents the results of operations for our Private Equity segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Management and Advisory Fees, Net | | | | | | | | | | | | | | | | | | | $ | 443,012 | | | $ | 433,459 | | | $ | 9,553 | | | | 2% | | | $ | 894,622 | | | $ | 854,931 | | | $ | 39,691 | | | | 5% | | | $ | 450,283 | | | $ | 451,610 | | | $ | (1,327) | | | | - | | Transaction, Advisory and Other Fees, Net | | | 48,825 | | | | 27,551 | | | | 21,274 | | | | 77% | | | | 63,609 | | | | 40,209 | | | | 23,400 | | | | 58% | | | | 26,149 | | | | 14,784 | | | | 11,365 | | | | 77% | | | | | (766) | | | | (23,157) | | | | 22,391 | | | | -97% | | | | (2,076) | | | | (50,299) | | | | 48,223 | | | | -96% | | | | (267) | | | | (1,310) | | | | 1,043 | | | | -80% | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Management and Advisory Fees, Net | | | 491,071 | | | | 437,853 | | | | 53,218 | | | | 12% | | | | 956,155 | | | | 844,841 | | | | 111,314 | | | | 13% | | | | 476,165 | | | | 465,084 | | | | 11,081 | | | | 2% | | Fee Related Performance Revenues | | | - | | | | - | | | | - | | | | n/a | | | | - | | | | (648) | | | | 648 | | | | -100% | | | | | (155,680) | | | | (152,622) | | | | (3,058) | | | | 2% | | | | (317,306) | | | | (303,672) | | | | (13,634) | | | | 4% | | | | (157,392) | | | | (161,626) | | | | 4,234 | | | | -3% | | | | | (74,403) | | | | (83,233) | | | | 8,830 | | | | -11% | | | | (151,166) | | | | (150,977) | | | | (189) | | | | - | | | | (86,879) | | | | (76,763) | | | | (10,116) | | | | 13% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 260,988 | | | | 201,998 | | | | 58,990 | | | | 29% | | | | 487,683 | | | | 389,544 | | | | 98,139 | | | | 25% | | | | 231,894 | | | | 226,695 | | | | 5,199 | | | | 2% | | | | | | | | | | | | | | | | | | | | | | | | | | | Realized Performance Revenues | | | 147,176 | | | | 122,884 | | | | 24,292 | | | | 20% | | | | 646,498 | | | | 573,122 | | | | 73,376 | | | | 13% | | | | 446,455 | | | | 499,322 | | | | (52,867) | | | | -11% | | Realized Performance Compensation | | | (62,641) | | | | (57,380) | | | | (5,261) | | | | 9% | | | | (295,575) | | | | (264,083) | | | | (31,492) | | | | 12% | | | | (218,938) | | | | (232,934) | | | | 13,996 | | | | -6% | | Realized Principal Investment Income | | | 3,967 | | | | 8,904 | | | | (4,937) | | | | -55% | | | | 36,856 | | | | 74,342 | | | | (37,486) | | | | -50% | | | | 22,208 | | | | 32,889 | | | | (10,681) | | | | -32% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 88,502 | | | | 74,408 | | | | 14,094 | | | | 19% | | | | 387,779 | | | | 383,381 | | | | 4,398 | | | | 1% | | | | 249,725 | | | | 299,277 | | | | (49,552) | | | | -17% | | | | | | | | | | | | | | | | | | | | | | | | | | | Segment Distributable Earnings | | $ | 349,490 | | | $ | 276,406 | | | $ | 73,084 | | | | 26% | | | $ | 875,462 | | | $ | 772,925 | | | $ | 102,537 | | | | 13% | | | $ | 481,619 | | | $ | 525,972 | | | $ | (44,353) | | | | -8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2023March 31, 2024 Compared to Three Months Ended June 30, 2022March 31, 2023 Segment Distributable Earnings were $349.5$481.6 million for the three months ended June 30, 2023, an increaseMarch 31, 2024, a decrease of $73.1$44.4 million, or 26%, compared to $276.4$526.0 million for the three months ended June 30,2022
.March 31, 2023. The increasedecrease in Segment Distributable Earnings was attributable to increasesa decrease of $59.0$49.6 million in Net Realizations, partially offset by an increase of $5.2 million in Fee Related Earnings and $14.1 million in Net Realizations.Earnings.Our Private Equity segment has benefited from our thematic investing approach, including our recent focus on sectors such as digital infrastructure and energy transition. Energy transition investments were a substantial driverdemonstrated resilient performance across nearly all of appreciationits strategies in the segmentfirst quarter of 2024. In Corporate Private Equity, our operating companies saw resilient, albeit decelerating, revenue growth overall in the second quarter, particularly in corporate private equity. These sectors have also been active investment areas for BIP, one of our fastest growing strategies. As inflation in the U.S.quarter. Economic uncertainty has decelerated, overall margins in the corporate private equity portfolio have expanded modestly. Wage inflation, while moderating, continues to put some pressure on profits margins of certain private equity portfolio companies, particularly in labor intensive businesses. Continued economic uncertainty contributed to muted realizations, in the second quarter, although we have seen some recent acceleration in deployment. Nonetheless,and we expect that any meaningful increase in deployment in our Private Equity segment would be tied to an overall improvement in capitala lag between improving markets conditions and market sentiment. Difficult market conditions (and lower realizations) have pressured investors’a re-acceleration of realizations. Investors’ ability to allocate to private equity strategies amidst difficult market conditions and lower realizations have contributed to an already difficultdemanding fundraising environment. Givenenvironment, and these near-term headwinds have made fundraising for our flagship corporate private equity fund has remained challenging.
Fee Related Earnings were $261.0$231.9 million for the three months ended June 30, 2023,March 31, 2024, an increase of $59.0$5.2 million, or 29%, compared to $202.0$226.7 million for the three months ended June 30, 2022.March 31, 2023. The increase in Fee Related Earnings was primarily attributable to an increase of $53.2$11.1 million in Management and Advisory Fees, Net and a decrease of $8.8$4.2 million in Fee Related Compensation, partially offset by an increase of $10.1 million in Other Operating Expenses. Management and Advisory Fees, Net were $491.1$476.2 million for the three months ended June 30, 2023,March 31, 2024, an increase of $53.2$11.1 million, compared to $437.9$465.1 million for the three months ended June 30, 2022,March 31, 2023, primarily driven by a decrease in Management Fee Offsets and increasesan increase in Transaction, Advisory and Other Fees, Net and Base Management Fees. Management Fee Offsets decreased $22.4 million primarily due to a reduction in Management Fee Offsets in from Strategic Partners IX.Net. Transaction, Advisory and Other Fees, Net increased $21.3$11.4 million primarily due to deal activity in BXCM. Base Management Fees increased $9.6 Fee Related Compensation was $157.4 million for the three months ended March 31, 2024, a decrease of $4.2 million, compared to $161.6 million for the three months ended March 31, 2023. The decrease was primarily due to (a) additional commitments from limited partners to Strategic Partners IX and Strategic Partners GP Solutions and the commencement of Strategic Partners Real Estate VIII’s investment period in the second quarter of 2022, and(b) Fee-Earning
Assets Under Management Growth in BIP.lower compensation accruals. Other Operating Expenses were $74.4$86.9 million for the three months ended June 30, 2023, a decreaseMarch 31, 2024, an increase of $8.8$10.1 million, compared to $83.2$76.8 million for the three months ended June 30, 2022.March 31, 2023. The decreaseincrease was primarily due to occupancy costs and professional fees, including placement fees. Net Realizations were $88.5$249.7 million for the three months ended June 30, 2023, an increaseMarch 31, 2024, a decrease of $14.1$49.6 million, or 19%, compared to $74.4$299.3 million for the three months ended June 30, 2022.March 31, 2023. The increasedecrease in Net Realizations was primarily attributable to an increasedecreases of $24.3$52.9 million in Realized Performance Revenues. Realized Performance Revenues were $147.2 million for the three months ended June 30, 2023, an increase of $24.3 million, compared to $122.9 million for the three months ended June 30, 2022. The increase was primarily due to higher realized performance revenues in corporate private equity, partially offset by lower realized performance revenues in Tactical Opportunities.
Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Segment Distributable Earnings were $875.5 million for the six months ended June 30, 2023, an increase of $102.5 million, or 13%, compared to $772.9 million for the six months ended June 30, 2022. The increase in Segment Distributable Earnings was attributable to increases of $98.1 million in Fee Related Earnings and $4.4 million in Net Realizations.
Fee Related Earnings were $487.7 million for the six months ended June 30, 2023, an increase of $98.1 million, or 25%, compared to $389.5 million for the six months ended June 30, 2022. The increase in Fee Related Earnings was attributable to an increase of $111.3 million in Management and Advisory Fees, Net, partially offset by an increase of $13.6 million in Fee Related Compensation.
Management and Advisory Fees, Net were $956.2 million for the six months ended June 30, 2023, an increase of $111.3 million, compared to $844.8 million for the six months ended June 30, 2022, primarily driven by a decrease in Management Fee Offsets and increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Management Fee Offsets decreased $48.2 million primarily due to a reduction in Management Fee Offsets in Strategic Partners IX. Base Management Fees increased $39.7 million primarily due to (a) additional commitments from limited partners to Strategic Partners IX and Strategic Partners GP Solutions and the commencement of Strategic Partners Real Estate VIII’s investment period in the second quarter of 2022, and(b) Fee-Earning
Assets Under Management Growth in BIP. Transaction, Advisory and Other Fees, Net increased $23.4 million primarily due to deal activity in BXCM.
Fee Related Compensation was $317.3 million for the six months ended June 30, 2023, an increase of $13.6 million, compared to $303.7 million for the six months ended June 30, 2022. The increase was primarily due to an increase in Management Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations were $387.8 million for the six months ended June 30, 2023, an increase of $4.4 million, compared to $383.4 million for the six months ended June 30, 2022. The increase in Net Realizations was attributable to an increase of $73.4$10.7 million in Realized Performance Revenues,Principal Investment Income, partially offset by a decrease of $37.5 million in Realized Principal Investment Income and an increase of $31.5$14.0 million in Realized Performance Compensation.
Realized Performance Revenues were $646.5$446.5 million for the sixthree months ended June 30, 2023, an increaseMarch 31, 2024, a decrease of $73.4$52.9 million, compared to $573.1$499.3 million for the sixthree months ended June 30, 2022.March 31, 2023. The increasedecrease was primarily due to lower Realized Performance Revenues in Corporate Private Equity, partially offset by higher Realized Performance Revenues in corporate private equity, partially offset by lower Realized Performance Revenues in Tactical Opportunities and Strategic Partners.Opportunities.
Realized Principal Investment Income was $36.9$22.2 million for the sixthree months ended June 30, 2023,March 31, 2024, a decrease of $37.5$10.7 million, compared to $74.3$32.9 million for the sixthree months ended June 30, 2022.March 31, 2023. The decrease was primarily due to lower Realized Principal Investment Income in corporate private equity and Tactical Opportunities.Corporate Private Equity. Realized Performance Compensation was $295.6$218.9 million for the sixthree months ended June 30, 2023, an increaseMarch 31, 2024, a decrease of $31.5$14.0 million, compared to $264.1$232.9 million for the sixthree months ended June 30, 2022.March 31, 2023. The increasedecrease was primarily due to an increase inlower Realized Performance Revenues.Revenues in Corporate Private Equity, partially offset by higher Realized Performance Revenues in Tactical Opportunities. Fund returns information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund 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 performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table presents the internal rates of return of our significant private equity funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3% | | | | 3% | | | | -6% | | | | -6% | | | | 5% | | | | 4% | | | | -3% | | | | -2% | | | | 20% | | | | 15% | | | | 17% | | | | 13% | | | | 4% | | | | 4% | | | | 2% | | | | 1% | | | | 19% | | | | 15% | | | | 17% | | | | 12% | | | | | 4% | | | | 4% | | | | -10% | | | | -9% | | | | 9% | | | | 8% | | | | -10% | | | | -9% | | | | 42% | | | | 33% | | | | 20% | | | | 14% | | | | 4% | | | | 3% | | | | 5% | | | | 4% | | | | 37% | | | | 27% | | | | 19% | | | | 13% | | | | | 2% | | | | 1% | | | | -4% | | | | -5% | | | | 5% | | | | 2% | | | | -1% | | | | -2% | | | | n/m | | | | n/m | | | | 24% | | | | 13% | | | | 2% | | | | 1% | | | | 2% | | | | 1% | | | | n/m | | | | n/m | | | | 20% | | | | 11% | | | | | 7% | | | | 6% | | | | 5% | | | | 4% | | | | -9% | | | | -8% | | | | 32% | | | | 25% | | | | 15% | | | | 12% | | | | 15% | | | | 12% | | | | 11% | | | | 10% | | | | -15% | | | | -13% | | | | 18% | | | | 14% | | | | 15% | | | | 11% | | | | | 6% | | | | 2% | | | | 6% | | | | 6% | | | | 6% | | | | 4% | | | | 25% | | | | 24% | | | | 13% | | | | 9% | | | | 12% | | | | 8% | | | | 11% | | | | 5% | | | | 1% | | | | 1% | | | | 15% | | | | 12% | | | | 13% | | | | 8% | | | | | 13% | | | | 10% | | | | -4% | | | | -4% | | | | 23% | | | | 18% | | | | 5% | | | | 2% | | | | 91% | | | | 63% | | | | 65% | | | | 43% | | | | 5% | | | | 4% | | | | 9% | | | | 7% | | | | 78% | | | | 55% | | | | 49% | | | | 33% | | | | | - | | | | - | | | | -26% | | | | -25% | | | | -3% | | | | -3% | | | | -33% | | | | -31% | | | | 128% | | | | 96% | | | | 40% | | | | 27% | | | | -3% | | | | -2% | | | | -3% | | | | -3% | | | | 128% | | | | 95% | | | | 37% | | | | 26% | | | | | | 5% | | | | 3% | | | | n/m | | | | n/m | | | | n/a | | | | n/a | | | | 54% | | | | 19% | | | | | -2% | | | | -2% | | | | - | | | | - | | | | -1% | | | | -1% | | | | 5% | | | | 4% | | | | 62% | | | | 56% | | | | 22% | | | | 19% | | | | 3% | | | | 2% | | | | 1% | | | | 1% | | | | 64% | | | | 58% | | | | 20% | | | | 18% | | | | | 2% | | | | 1% | | | | 3% | | | | 1% | | | | 7% | | | | 5% | | | | 5% | | | | 3% | | | | n/a | | | | n/a | | | | 15% | | | | 9% | | | | 2% | | | | 2% | | | | 6% | | | | 4% | | | | n/a | | | | n/a | | | | 21% | | | | 15% | | | | | 2% | | | | - | | | | -2% | | | | -3% | | | | 4% | | | | 1% | | | | - | | | | -1% | | | | 20% | | | | 16% | | | | 15% | | | | 11% | | | | 2% | | | | 1% | | | | 2% | | | | 2% | | | | 19% | | | | 16% | | | | 15% | | | | 10% | | Tactical Opportunities Co-Investment and Other | | | 1% | | | | 1% | | | | - | | | | - | | | | 3% | | | | 4% | | | | - | | | | 2% | | | | 19% | | | | 18% | | | | 20% | | | | 17% | | | | 2% | | | | 2% | | | | 3% | | | | 4% | | | | 22% | | | | 20% | | | | 19% | | | | 16% | | | | | -2% | | | | -2% | | | | -8% | | | | -8% | | | | -2% | | | | -3% | | | | -14% | | | | -13% | | | | n/m | | | | n/m | | | | 4% | | | | -2% | | | | - | | | | -1% | | | | - | | | | -1% | | | | n/m | | | | n/m | | | | 2% | | | | -3% | | Strategic Partners VI (c) | | | 1% | | | | 1% | | | | -1% | | | | -2% | | | | -1% | | | | -1% | | | | -1% | | | | -1% | | | | n/a | | | | n/a | | | | 18% | | | | 14% | | | | 1% | | | | - | | | | -2% | | | | -2% | | | | n/a | | | | n/a | | | | 18% | | | | 14% | | Strategic Partners VII (c) | | | - | | | | -1% | | | | 1% | | | | 1% | | | | 1% | | | | - | | | | 4% | | | | 4% | | | | n/a | | | | n/a | | | | 23% | | | | 19% | | | | 2% | | | | 2% | | | | 1% | | | | 1% | | | | n/a | | | | n/a | | | | 22% | | | | 17% | | Strategic Partners Real Assets II (c) | | | 17% | | | | 15% | | | | 10% | | | | 9% | | | | 18% | | | | 15% | | | | 12% | | | | 11% | | | | n/a | | | | n/a | | | | 21% | | | | 17% | | | | 8% | | | | 7% | | | | 1% | | | | - | | | | n/a | | | | n/a | | | | 20% | | | | 17% | | Strategic Partners VIII (c) | | | - | | | | - | | | | 5% | | | | 5% | | | | 2% | | | | 1% | | | | 12% | | | | 11% | | | | n/a | | | | n/a | | | | 44% | | | | 35% | | | | - | | | | - | | | | 2% | | | | 1% | | | | n/a | | | | n/a | | | | 35% | | | | 27% | | Strategic Partners Real Estate, SMA and Other (c) | | | 1% | | | | - | | | | 8% | | | | 7% | | | | -1% | | | | -1% | | | | 24% | | | | 22% | | | | n/a | | | | n/a | | | | 19% | | | | 17% | | | | -1% | | | | -1% | | | | - | | | | - | | | | n/a | | | | n/a | | | | 15% | | | | 13% | | Strategic Partners Infrastructure III (c) | | | 3% | | | | 2% | | | | 22% | | | | 19% | | | | 5% | | | | 2% | | | | 39% | | | | 32% | | | | n/a | | | | n/a | | | | 64% | | | | 40% | | | | 1% | | | | - | | | | 1% | | | | - | | | | n/a | | | | n/a | | | | 39% | | | | 26% | | Strategic Partners IX (c) | | | 13% | | | | 10% | | | | n/m | | | | n/m | | | | 15% | | | | 10% | | | | n/m | | | | n/m | | | | n/a | | | | n/a | | | | 52% | | | | 32% | | | | 6% | | | | 4% | | | | 2% | | | | - | | | | n/a | | | | n/a | | | | 30% | | | | 18% | | Strategic Partners GP Solutions (c) | | | -7% | | | | -7% | | | | 11% | | | | 9% | | | | -7% | | | | -7% | | | | 47% | | | | 39% | | | | n/a | | | | n/a | | | | 14% | | | | 7% | | | | 3% | | | | 1% | | | | 1% | | | | - | | | | n/a | | | | n/a | | | | 3% | | | | -2% | | | | | 3% | | | | 2% | | | | -4% | | | | -3% | | | | - | | | | - | | | | 9% | | | | 7% | | | | n/a | | | | n/a | | | | 19% | | | | 14% | | | | 5% | | | | 4% | | | | -3% | | | | -2% | | | | n/a | | | | n/a | | | | 20% | | | | 15% | | | | | -5% | | | | -5% | | | | 3% | | | | 2% | | | | 2% | | | | 1% | | | | 3% | | | | 2% | | | | 30% | | | | 24% | | | | 19% | | | | 11% | | | | 2% | | | | 1% | | | | 7% | | | | 6% | | | | 6% | | | | - | | | | 15% | | | | 9% | | | | | - | | | | -2% | | | | 6% | | | | 4% | | | | 6% | | | | 2% | | | | 1% | | | | -3% | | | | n/m | | | | n/m | | | | 16% | | | | 3% | | | | 2% | | | | 1% | | | | 6% | | | | 4% | | | | n/m | | | | n/m | | | | 25% | | | | 12% | |
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. |
| SMA | Separately managed account. |
| (a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. Excludes investment vehicles where Blackstone does not earn fees. |
| (b) | BCEP is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity. |
| (c) | Strategic Partners’ grossGross and net returns are reported on a three-month lag, reflect Strategic Partners’ fund financial performance as of the prior quarter 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. We believe the updated presentation is more reflective of the Strategic Partners’ investor experience. Prior periods have been recast. Realizations are treated as returns of capital until fully recovered and therefore Unrealized and Realized MOICs and Realized Net IRRsinception to date realized returns are not applicable. Effective June 30, 2023, Strategic PartnersI-V
and Strategic Partners Real Estate, SMA and Other amounts exclude investment vehicles where Blackstone does not earn fees, which were previously included. |
Funds With Closed Investment Periods as of June 30, 2023March 31, 2024 The corporate private equity funds within theCorporate Private Equity segmentfunds have nine funds with closed investment periods: BCP IV, BCP V, BCP VI, BCP VII, BCOM, BEP I, BEP II, BCEP I and BCP Asia I. As of June 30, 2023,March 31, 2024, BCP IV was above its carried interest threshold (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would still be above its carried interest threshold even if all remaining investments were valued at zero. BCP V is comprised of two fund classes, the BCP V “main fund” and BCP V-AC fund. Within these fund classes, the general partner is subject to equalization such that (a) the general partner accrues carried interest when the respective carried interest for either fund class is positive and (b) the general partner realizes carried interest so long as clawback obligations, if any, for either of the respective fund classes are fully satisfied. BCP V, BCP VI, BCP VII, BCOM, BEP I, BEP II, BCEP I and BCP Asia I were above their respective carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds. We are entitled to retain previously realized carried interest up to 20% of BCOM’s net gains. As a result, Performance Revenues are recognized from BCOM on current period gains and losses.The Tactical Opportunities funds within the Private Equity segment have various funds with closed investment periods, including but not limited to: BTOF-POOL, BTOF-POOL II, and BTOF-POOL III, which are each above their carried interest thresholds based on aggregate fund position. Blackstone Growth funds have no funds with closed investment periods. Strategic Partners funds within the Private Equity segment have various funds with closed investment periods, including but not limited to: Strategic Partners Real Assets II, Strategic Partners VIII and Strategic Partners Real Estate VII, which are above their respective carried interest thresholds based on aggregate fund position. Certain Strategic Partners funds with closed investment periods do not generate carried interest for Blackstone as agreed to at the time the Strategic Partners business was acquired. The Blackstone Life Sciences funds within the Private Equity segment has one fund with a closed investment period: Clarus IV, which was above its carried interest threshold.
The following table presents the results of operations for our Credit & Insurance segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 335,308 | | | $ | 306,589 | | | $ | 28,719 | | | | 9% | | | $ | 662,087 | | | $ | 599,034 | | | $ | 63,053 | | | | 11% | | | $ | 370,998 | | | $ | 326,779 | | | $ | 44,219 | | | | 14% | | Transaction and Other Fees, Net | | | 15,002 | | | | 7,117 | | | | 7,885 | | | | 111% | | | | 23,453 | | | | 16,514 | | | | 6,939 | | | | 42% | | | | 9,790 | | | | 8,451 | | | | 1,339 | | | | 16% | | | | | (1,056 | ) | | | (1,165 | ) | | | 109 | | | | -9% | | | | (2,157 | ) | | | (2,784 | ) | | | 627 | | | | -23% | | | | (892 | ) | | | (1,101 | ) | | | 209 | | | | -19% | | | | | | | | | | | | | | | | | | | | | | | | | | Total Management Fees, Net | | | 349,254 | | | | 312,541 | | | | 36,713 | | | | 12% | | | | 683,383 | | | | 612,764 | | | | 70,619 | | | | 12% | | | | 379,896 | | | | 334,129 | | | | 45,767 | | | | 14% | | Fee Related Performance Revenues | | | 135,439 | | | | 81,086 | | | | 54,353 | | | | 67% | | | | 262,935 | | | | 148,282 | | | | 114,653 | | | | 77% | | | | 165,543 | | | | 127,496 | | | | 38,047 | | | | 30% | | | | | (168,234 | ) | | | (137,035 | ) | | | (31,199 | ) | | | 23% | | | | (332,233 | ) | | | (264,379 | ) | | | (67,854 | ) | | | 26% | | | | (181,337 | ) | | | (163,999 | ) | | | (17,338 | ) | | | 11% | | | | | (81,375 | ) | | | (63,882 | ) | | | (17,493 | ) | | | 27% | | | | (155,613 | ) | | | (121,049 | ) | | | (34,564 | ) | | | 29% | | | | (85,530 | ) | | | (74,238 | ) | | | (11,292 | ) | | | 15% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 235,084 | | | | 192,710 | | | | 42,374 | | | | 22% | | | | 458,472 | | | | 375,618 | | | | 82,854 | | | | 22% | | | | 278,572 | | | | 223,388 | | | | 55,184 | | | | 25% | | | | | | | | | | | | | | | | | | | | | | | | | | Realized Performance Revenues | | | 42,344 | | | | 78,973 | | | | (36,629 | ) | | | -46% | | | | 167,525 | | | | 109,716 | | | | 57,809 | | | | 53% | | | | 15,120 | | | | 125,181 | | | | (110,061 | ) | | | -88% | | Realized Performance Compensation | | | (17,571 | ) | | | (36,109 | ) | | | 18,538 | | | | -51% | | | | (74,343 | ) | | | (49,495 | ) | | | (24,848 | ) | | | 50% | | | | (5,445 | ) | | | (56,772 | ) | | | 51,327 | | | | -90% | | Realized Principal Investment Income (Loss) | | | (19,356 | ) | | | 7,019 | | | | (26,375 | ) | | | n/m | | | | (13,347 | ) | | | 29,800 | | | | (43,147 | ) | | | n/m | | Realized Principal Investment Income | | | | 3,597 | | | | 6,009 | | | | (2,412 | ) | | | -40% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,417 | | | | 49,883 | | | | (44,466 | ) | | | -89% | | | | 79,835 | | | | 90,021 | | | | (10,186 | ) | | | -11% | | | | 13,272 | | | | 74,418 | | | | (61,146 | ) | | | -82% | | | | | | | | | | | | | | | | | | | | | | | | | | Segment Distributable Earnings | | $ | 240,501 | | | $ | 242,593 | | | $ | (2,092 | ) | | | -1% | | | $ | 538,307 | | | $ | 465,639 | | | $ | 72,668 | | | | 16% | | | $ | 291,844 | | | $ | 297,806 | | | $ | (5,962 | ) | | | -2% | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2023March 31, 2024 Compared to Three Months Ended June 30, 2022March 31, 2023 Segment Distributable Earnings were $240.5$291.8 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $2.1$6.0 million, compared to $242.6$297.8 million for the three months ended June 30, 2022.March 31, 2023. The decrease in Segment Distributable Earnings was attributable to a decrease of $44.5$61.1 million in Net Realizations, partially offset by an increase of $42.4$55.2 million in Fee Related Earnings. The performanceIn an environment of tightening of credit spreads, our credit funds has generally benefited from a higher interest rate environment as a substantial majoritycontinued to demonstrate strong performance in the first quarter of the portfolio is floating rate.2024. Longer-term structural shifts in the lending market, combined with a more constrained financing market have contributed and are likely to continue to contribute to attractive and sizeable deployment opportunities for our credit funds as banks and other originators seek capital and borrowers seek alternative financing sources. Additionally, we continue to see opportunities for growthfunds. Default rates across corporate issuers in our insurance and energy transition strategies. Fundraisingcredit funds’ portfolios remained low in the first quarter of 2024 relative to our Credit & Insurance segment, including in our perpetual capital strategies, has been positively impacted by these trends. Nevertheless, a higher costhistorical levels. A sustained period of capital as a result of historically high interest rates, may negatively impactwhile overall positive for revenues in the free cash flow andpredominantly floating rate portfolios of our credit quality of certain borrowers andfunds, could increase the potential for defaults. Heightened input and wage costs also continuedefaults by corporate issuers in such portfolios. Conversely, a material decline in interest rates and/or widening of credit spreads would make it more difficult for our credit funds to put some profit margin pressures on certain of our Credit & Insurance segment investments even as overall inflation in the U.S. has decelerated. Areplicate their recent strong performance. In addition, a period of significant market dislocation could limit the liquidity of certain assets traded in the credit markets. Thismarkets, which would impact our funds’ ability to sell such assets at attractive prices or in a timely manner.
Perpetual capital strategies, including BCRED, represent an increasing percentage of Total Assets Under ManagementFundraising in our Credit & Insurance segment. Compellingsegment, including in our perpetual capital strategies, continued to be positively impacted by the long-term structural shifts in the lending market. We continue to see strong interest in non-investment grade strategies such as opportunistic and direct lending as well as significant demand for investment grade private credit. In our perpetual capital strategies, compelling private credit fundamentals contributed to an acceleration of BCREDstrong inflows in BCRED in the second quarter, with inflows representing the highest quarter since the third quarter of 2022.first quarter. We believe the long-term growth trajectory remainsis positive and that strong investment performance and investor under-allocation to such private wealth strategies should continue to drive flows over the long-term. See “Item 1A. Risk Factors – Risks Related to Our Business – We have increasingly undertaken business initiatives to increase the number and type
ContentsFee Related Earnings were $235.1$278.6 million for the three months ended June 30, 2023,March 31, 2024, an increase of $42.4$55.2 million, or 22%, compared to $192.7$223.4 million for the three months ended June 30, 2022.March 31, 2023. The increase in Fee Related Earnings was primarily attributable to increases of $54.4$45.8 million in Management Fees, Net and $38.0 million in Fee Related Performance Revenues, and $36.7 million in Management Fees, Net, partially offset by increases of $31.2$17.3 million in Fee Related Compensation and $17.5$11.3 million in Other Operating Expenses. Fee Related Performance RevenuesManagement Fees, Net were $135.4$379.9 million for the three months ended June 30, 2023,March 31, 2024, an increase of $54.4$45.8 million, compared to $81.1$334.1 million for the three months ended June 30, 2022. The increase was primarily due to performance and higherFee-Earning
Assets Under Management in BCRED.Management Fees, Net were $349.3 million for the three months ended June 30,March 31, 2023, an increase of $36.7 million, compared to $312.5 million for the three months ended June 30, 2022, primarily driven by an increase in Base Management Fees. Base Management Fees increased $28.7$44.2 million primarily due to inflows from Fee-Earning Assets Under Management in BCREDdirect lending and BIS.infrastructure and asset based credit strategies.Fee Related Performance Revenues were $165.5 million for the three months ended March 31, 2024, an increase of $38.0 million, compared to $127.5 million for the three months ended March 31, 2023. The increase was primarily due to higher net investment income in BCRED. Fee Related Compensation was $168.2$181.3 million for the three months ended June 30, 2023,March 31, 2024, an increase of $31.2$17.3 million, compared to $137.0$164.0 million for the three months ended June 30, 2022.March 31, 2023. The increase was primarily due to increases in Management Fees, Net and Fee Related Performance Revenues and Management Fees, Net, both of which impact Fee Related Compensation. Other Operating Expenses were $81.4$85.5 million for the three months ended June 30, 2023,March 31, 2024, an increase of $17.5$11.3 million, compared to $63.9$74.2 million for the three months ended June 30, 2022.March 31, 2023. The increase was primarily due to technology-related expenses, as well as travel and entertainmentorganizational and occupancy costs. Net Realizations were $5.4$13.3 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $44.5$61.1 million, compared to $49.9$74.4 million for the three months ended June 30, 2022.March 31, 2023. The decrease in Net Realizations was primarily attributable to decreasesa decrease of $36.6$110.1 million in Realized Performance Revenues, and $26.4 million in Realized Principal Investment Income (Loss), partially offset by a decrease of $18.5$51.3 million in Realized Performance Compensation. Realized Performance Revenues were $42.3$15.1 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $36.6$110.1 million, compared to $79.0$125.2 million for the three months ended June 30, 2022.March 31, 2023. The decrease was primarily attributabledue to lower realized performance revenues in our energy and mezzanine funds. Realized Principal Investment Income (Loss)Performance Compensation was $(19.4)$5.4 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $26.4$51.3 million, compared to $7.0$56.8 million for the three months ended June 30, 2022. The decrease was primarily due to an increase in realized principal investment loss in BIS. Realized Performance Compensation was $17.6 million for the three months ended June 30, 2023, a decrease of $18.5 million, compared to $36.1 million for the three months ended June 30, 2022.March 31, 2023. The decrease was primarily due to the decrease in Realized Performance Revenues.
Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Segment Distributable Earnings were $538.3 million for the six months ended June 30, 2023, an increase of $72.7 million, or 16%, compared to $465.6 million for the six months ended June 30, 2022. The increase in Segment Distributable Earnings was primarily attributable to an increase of $82.9 million in Fee Related Earnings, partially offset by a decrease of $10.2 million in Net Realizations.
Fee Related Earnings were $458.5 million for the six months ended June 30, 2023, an increase of $82.9 million, or 22%, compared to $375.6 million for the six months ended June 30, 2022. The increase in Fee Related Earnings was primarily attributable to increases of $114.7 million in Fee Related Performance Revenues and $70.6 million in Management Fees, Net, partially offset by increases of $67.9 million in Fee Related Compensation and $34.6 million in Other Operating Expenses.
Fee Related Performance Revenues were $262.9 million for the six months ended June 30, 2023, an increase of $114.7 million, compared to $148.3 million for the six months ended June 30, 2022. The increase was primarily due to performance and higherFee-Earning
Assets Under Management in BCRED.Management Fees, Net were $683.4 million for the six months ended June 30, 2023, an increase of $70.6 million, compared to $612.8 million for the six months ended June 30, 2022, primarily driven by an increase in Base Management Fees. Base Management Fees increased $63.1 million primarily due to inflows fromFee-Earning
Assets Under Management in BCRED and BIS.Fee Related Compensation was $332.2 million for the six months ended June 30, 2023, an increase of $67.9 million, compared to $264.4 million for the six months ended June 30, 2022. The increase was primarily due to increases in Management Fees, Net and Fee Related Performance Revenues, both of which impact Fee Related Compensation.
Other Operating Expenses were $155.6 million for the six months ended June 30, 2023, an increase of $34.6 million, compared to $121.0 million for the six months ended June 30, 2022. The increase was primarily due to technology-related expenses, as well as travel and entertainment and occupancy costs.
Net Realizations were $79.8 million for the six months ended June 30, 2023, a decrease of $10.2 million, compared to $90.0 million for the six months ended June 30, 2022. The decrease in Net Realizations was attributable to a decrease of $43.1 million in Realized Principal Investment Income (Loss) and an increase of $24.8 million in Realized Performance Compensation, partially offset by an increase of $57.8 million in Realized Performance Revenues.
Realized Principal Investment Income (Loss) was $(13.3) million for the six months ended June 30, 2023, a decrease of $43.1 million, compared to $29.8 million for the six months ended June 30, 2022. The decrease was primarily due to an increase in realized principal investment loss in BIS.
Realized Performance Compensation was $74.3 million for the six months ended June 30, 2023, an increase of $24.8 million, compared to $49.5 million for the six months ended June 30, 2022. The increase was primarily due to the increase in Realized Performance Revenues.
Realized Performance Revenues were $167.5 million for the six months ended June 30, 2023, an increase of $57.8 million, compared to $109.7 million for the six months ended June 30, 2022. The increase was primarily due to higher realized performance revenues in our energy and mezzanine funds.
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 for the Private Credit and Liquid Credit composites: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3% | | | | 3% | | | | - | | | | -1% | | | | 7% | | | | 5% | | | | 2% | | | | - | | | | 11% | | | | 7% | | | | 4% | | | | 3% | | | | 3% | | | | 3% | | | | 12% | | | | 8% | | | | | 3% | | | | 3% | | | | -5% | | | | -6% | | | | 6% | | | | 6% | | | | -6% | | | | -6% | | | | 5% | | | | 4% | | | | 2% | | | | 2% | | | | 3% | | | | 3% | | | | 5% | | | | 5% | |
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone. | (a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Allocations, net of tax advances. |
| (b) | Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and credit alpha strategies) and energy strategies. Liquid Credit returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included. Funds in liquidation, funds investing primarily in investment grade corporate credit and asset-basedasset based finance funds are excluded. Blackstone Funds that were contributed to BXC as part of Blackstone’s acquisition of BXC in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by BXC subsequent to March 2008, are also excluded. Private Credit and Liquid Credit’s inception to date returns are from December 31, 2005. |
The following table presents information regarding our Invested Performance Eligible Assets Under Management: | | | | | | | | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 84,451,519 | | | $ | 80,993,494 | | | 93% | | 92% |
| | | | | | | | | | | | | | | | Invested Performance Eligible
Assets Under Management | | Estimated % Above
High Water Mark/
Hurdle (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 92,811,285 | | | $ | 85,672,809 | | | 96% | | 93% |
| (a) | Estimated % Above High Water Mark/Hurdle represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Credit & Insurance managed fund has positive investment performance relative to a hurdle, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a hurdle return, thereby resulting in an increase in Estimated % Above High Water Mark/Hurdle. |
| (b) | For the Credit & Insurance managed funds, at June 30, 2023,March 31, 2024, the incremental appreciation needed for the 7%4% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles to reach their respective High Water Marks/Hurdles was $2.2 billion,$918.8 million, a decrease of $(18.3)$(939.9) million, compared to $2.3$1.9 billion at June 30, 2022.March 31, 2023. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Hurdles as of June 30, 2023, 52%March 31, 2024, 3% were within 5% of reaching their respective High Water Mark. |
The following table presents the results of operations for our Hedge Fund SolutionsMulti-Asset Investing segment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 132,312 | | | $ | 145,077 | | | $ | (12,765 | ) | | | -9% | | | $ | 268,083 | | | $ | 290,123 | | | $ | (22,040 | ) | | | -8% | | | $ | 129,270 | | | $ | 135,771 | | | $ | (6,501 | ) | | | -5% | | Transaction and Other Fees, Net | | | 1,842 | | | | 3,450 | | | | (1,608 | ) | | | -47% | | | | 3,756 | | | | 4,919 | | | | (1,163 | ) | | | -24% | | | | 1,809 | | | | 1,914 | | | | (105 | ) | | | -5% | | | | | (29 | ) | | | (40 | ) | | | 11 | | | | -28% | | | | (31 | ) | | | (109 | ) | | | 78 | | | | -72% | | | | (8 | ) | | | (2 | ) | | | (6 | ) | | | 300% | | | | | | | | | | | | | | | | | | | | | | | | | | Total Management Fees, Net | | | 134,125 | | | | 148,487 | | | | (14,362 | ) | | | -10% | | | | 271,808 | | | | 294,933 | | | | (23,125 | ) | | | -8% | | | | 131,071 | | | | 137,683 | | | | (6,612 | ) | | | -5% | | | | | (45,888 | ) | | | (57,863 | ) | | | 11,975 | | | | -21% | | | | (91,624 | ) | | | (105,098 | ) | | | 13,474 | | | | -13% | | | | (40,779 | ) | | | (45,736 | ) | | | 4,957 | | | | -11% | | | | | (29,639 | ) | | | (26,066 | ) | | | (3,573 | ) | | | 14% | | | | (56,105 | ) | | | (49,250 | ) | | | (6,855 | ) | | | 14% | | | | (26,807 | ) | | | (26,466 | ) | | | (341 | ) | | | 1% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 58,598 | | | | 64,558 | | | | (5,960 | ) | | | -9% | | | | 124,079 | | | | 140,585 | | | | (16,506 | ) | | | -12% | | | | 63,485 | | | | 65,481 | | | | (1,996 | ) | | | -3% | | | | | | | | | | | | | | | | | | | | | | | | | | Realized Performance Revenues | | | 79,182 | | | | 7,197 | | | | 71,985 | | | | n/m | | | | 85,109 | | | | 36,110 | | | | 48,999 | | | | 136% | | | | 24,851 | | | | 5,927 | | | | 18,924 | | | | 319% | | Realized Performance Compensation | | | (28,565 | ) | | | (2,083 | ) | | | (26,482 | ) | | | n/m | | | | (31,718 | ) | | | (11,083 | ) | | | (20,635 | ) | | | 186% | | | | (6,778 | ) | | | (3,153 | ) | | | (3,625 | ) | | | 115% | | Realized Principal Investment Income (Loss) | | | 7,998 | | | | (1,530 | ) | | | 9,528 | | | | n/m | | | | 10,567 | | | | 13,371 | | | | (2,804 | ) | | | -21% | | | | (18,060 | ) | | | 2,569 | | | | (20,629 | ) | | | n/m | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 58,615 | | | | 3,584 | | | | 55,031 | | | | n/m | | | | 63,958 | | | | 38,398 | | | | 25,560 | | | | 67% | | | | 13 | | | | 5,343 | | | | (5,330 | ) | | | -100% | | | | | | | | | | | | | | | | | | | | | | | | | | Segment Distributable Earnings | | $ | 117,213 | | | $ | 68,142 | | | $ | 49,071 | | | | 72% | | | $ | 188,037 | | | $ | 178,983 | | | $ | 9,054 | | | | 5% | | | $ | 63,498 | | | $ | 70,824 | | | $ | (7,326 | ) | | | -10% | | | | | | | | | | | | | | | | | | | | | | | | | |
Three Months Ended June 30, 2023March 31, 2024 Compared to Three Months Ended June 30, 2022March 31, 2023 Segment Distributable Earnings were $117.2$63.5 million for the three months ended June 30, 2023, an increaseMarch 31, 2024, a decrease of $49.1$7.3 million, or 72%, compared to $68.1$70.8 million for the three months ended June 30, 2022.March 31, 2023. The increasedecrease in Segment Distributable Earnings was attributable to an increasedecreases of $55.0 million in Net Realizations, partially offset by a decrease of $6.0$2.0 million in Fee Related Earnings.Earnings and $5.3 million in Net Realizations. Our Hedge Fund SolutionsNearly all strategies across our Multi-Asset Investing segment funds continued to navigate liquid market volatility in the second quarter of 2023. The overwhelming majority of Hedge Fund Solutions strategies hadexhibited positive performance in the secondfirst quarter of 2023,2024, with significantly less volatility than the broader markets. The Absolute Return Composite had its best quarterly performance in over three years, benefiting from performance across strategies, including quantitative, equities, macro and credit. Segment Distributable Earnings in the Hedge Fund SolutionsMulti-Asset Investing segment would likely be negatively impacted, however, by a significant or sustained weak market environment or decline in asset prices, including as a result of concerns over macroeconomic factors. In addition, whilealthough certain of our strategies are designed to benefit from a high interest rate environment, in an environment concurrently characterized bya period of sustained high interest rates andcombined with weak equity markets would make it may be difficult for funds in certain of our strategies to exceed interest rate-based performance hurdles to which such funds are subject. This would negatively impact our Segment Distributable Earnings.
Despite significant volatility in recent quarters, overall in recent years markets have experienced relatively low volatility, which has In addition, if interest rates remain at times resulted insustained high levels for an extended period, certain investors reallocating capital away from traditional hedge fund strategies. To the extent markets experience a prolonged period of low volatility and outperform our hedge fund strategies, investors may seek to reallocate capital away from traditional hedge fundMulti-Asset Investing strategies which could negatively impact net flows in our Hedge Fund Solutions segment.favor of fixed income investments. Conversely, outperformance by our Hedge Fund SolutionsMulti-Asset Investing segment strategies in a weak market environment has in some cases resulted in such strategies representing an increasing portion of the value of certain investors’ portfolios, which may limit such investors’ ability to allocate additional capital to certain funds in the segment, or result in such investors seeking to withdraw capital from such funds. The Hedge Fund Solutions segment operates multiple business lines, manages strategies that are both long and short asset classes and generates a majority of its revenue through management fees. In that regard, the segment’s revenues depend in part on our ability to successfully grow such existing, diverse business lines and strategies and to identify and scale new ones to meet evolving investor appetites. In recent years, however, we have shifted the mix of our product offerings to include more products whose performance-based fees represent a more significant proportion of the fees earned from such products than has historically been the case.
Fee Related Earnings were $58.6$63.5 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $6.0$2.0 million, compared to $64.6$65.5 million for the three months ended June 30, 2022.March 31, 2023. The decrease in Fee Related Earnings was primarily attributable to decreasesa decrease of $14.4$6.6 million in Management Fees, Net, and $12.0partially offset by a decrease of $5.0 million in Fee Related Compensation. Management Fees, Net were $134.1$131.1 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $14.4$6.6 million, compared to $148.5$137.7 million for the three months ended June 30, 2022,March 31, 2023. The decrease was primarily driven by a decrease in Base Management Fees. Base Management Fees decreased $12.8$6.5 million primarily due to a decrease in Fee-Earning Assets Under Management in commingled products and liquid and specialized solutions.Absolute Return.Fee Related Compensation were $45.9was $40.8 million for the three months ended June 30, 2023,March 31, 2024, a decrease of $12.0$5.0 million, compared to $57.9$45.7 million for the three months ended June 30, 2022.March 31, 2023. The decrease was primarily due to a decrease in Management Fees, Net, on which a portion of Fee Related Compensation is based. Net Realizations were $58.6$13.0 thousand for the three months ended March 31, 2024, a decrease of $5.3 million, compared to $5.3 million for the three months ended June 30, 2023,March 31, 2023. The decrease was primarily attributable to a decrease of $20.6 million in Realized Principal Investment Income (Loss), partially offset by an increase of $55.0$18.9 million compared to $3.6in Realized Performance Revenues. Realized Principal Investment Income (Loss) was $(18.1) million for the three months ended June 30, 2022.March 31, 2024, a decrease of $20.6 million, compared to $2.6 million for the three months ended March 31, 2023. The increase in Net Realizationsdecrease was primarily attributabledue to increases of $72.0 millionrealized losses in Realized Performance Revenues and $9.5 million in Realized Principal Investment Income, partially offset by an increase of $26.5 million in Realized Performance Compensation.Multi-Strategy. Realized Performance Revenues were $79.2$24.9 million for the three months ended June 30, 2023,March 31, 2024, an increase of $72.0$18.9 million, compared to $7.2$5.9 million for the three months ended June 30, 2022. The increase was primarily driven by increased Realized Performance Revenues in liquid and specialized solutions. Realized Principal Investment Income was $8.0 million for the three months ended June 30, 2023, an increase of $9.5 million, compared to $(1.5) million for the three months ended June 30, 2022.March 31, 2023. The increase was primarily due to increased Realized Principal Investment Income in liquid and specialized solutions.
Six Months Ended June 30, 2023 Compared to Six Months Ended June 30, 2022
Segment Distributable Earnings were $188.0 million for the six months ended June 30, 2023, an increase of $9.1 million, compared to $179.0 million for the six months ended June 30, 2022. The increase in Segment Distributable Earnings was attributable to an increase of $25.6 million in Net Realizations, partially offset by a decrease of $16.5 million in Fee Related Earnings.
Fee Related Earnings were $124.1 million for the six months ended June 30, 2023, a decrease of $16.5 million, compared to $140.6 million for the six months ended June 30, 2022. The decrease in Fee Related Earnings was primarily attributable to a decrease of $23.1 million in Management Fees, Net, partially offset by a decrease of $13.5 million in Fee Related Compensation.
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 $22.0 million primarily driven by a decrease inFee-Earning
Assets Under Management in commingled products and liquid and specialized solutions.Fee Related Compensation was $91.6 million for the six months ended June 30, 2023, a decrease of $13.5 million, compared to $105.1 million for the six months ended June 30, 2022. The decrease was primarily due to a decrease in Management Fees, Net, on which a portion of Fee Related Compensation is based.
Net Realizations were $64.0 million for the six months ended June 30, 2023, an increase of $25.6 million, or 67%, compared to $38.4 million for the six months ended June 30, 2022. The increase in Net Realizations was attributable to an increase of $49.0 million 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, 2023, an increase of $49.0 million, compared to $36.1 million for the six months ended June 30, 2022. The increase was primarily due to reduced Realized Performance Revenues in liquidAbsolute Return and specialized solutions offset by a decrease in customized solutions.
Realized Performance Compensation was $31.7 million for the six months ended June 30, 2023, an increase of $20.6 million, compared to $11.1 million for the six months ended June 30, 2022. The increase was primarily due to the increase in Realized Performance Revenues.Multi-Strategy.
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 SolutionsAbsolute Return Composite: | | | | | | | | Average Annual Returns (a) | | | | Average Annual Returns (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | BAAM Principal Solutions Composite (b) | | | 2 | % | | | 2 | % | | | 1 | % | | | - | | | | 3 | % | | | 2 | % | | | 2 | % | | | 1 | % | | | 6 | % | | | 5 | % | | | 8 | % | | | 7 | % | | | 6 | % | | | 5 | % | | | 7 | % | | | 6 | % | Absolute Return Composite (b) | | | | 5 | % | | | 4 | % | | | 1 | % | | | 1 | % | | | 12 | % | | | 11 | % | | | 8 | % | | | 7 | % | | | 7 | % | | | 6 | % | | | 7 | % | | | 6 | % |
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’sEffective the first quarter of 2024, Blackstone Alternative Asset Management Principal Solutions (“BPS”) Composite was renamed to “Absolute Return Composite.” Absolute Return Composite covers the period from January 2000 to present, although BAAM’sBXMA’s inception date is September 1990. The BPSAbsolute Return Composite includes only BAAM-managedBXMA-managed commingled and customized multi-manager funds and accounts and does not include BAAM’s individual investorBXMA’s liquid solutions, (liquid alternatives), strategic capital (seedingseeding and GP minority stakes), strategic opportunities(co-invests),
Stakes, Multi-Strategy, and advisory (non-discretionary) platforms, except for investments by BPSAbsolute Return funds directly into those platforms. BAAM-managedBXMA-managed funds in liquidation and, in the case of net returns, assets are also excluded. The funds/accounts that comprise the BPSAbsolute Return Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BAAMBXMA would have made the same mix of investments in a stand-alone fund/account. The BPSAbsolute Return Composite is not an investible product and, as such, the performance of the BPSAbsolute Return Composite does not represent the performance of an actual fund or account. The historical return is from January 1, 2000. |
The following table presents information regarding our Invested Performance Eligible Assets Under Management: | | | | | | | | | | | | | | | |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Hedge Fund Solutions Managed Funds (b) | | $ | 50,436,939 | | | $ | 48,902,089 | | | 80% | | 64% |
| | | | | | | | | | | | | | | |
| | Estimated % Above
High Water Mark/
Benchmark (a) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Multi-Asset Investing Managed Funds (b) | | $ | 54,375,478 | | | $ | 51,134,869 | | | 98% | | 82% |
| (a) | Estimated % Above High Water Mark/Benchmark represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Hedge Fund SolutionsMulti-Asset Investing managed fund has positive investment performance relative to a benchmark, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a benchmark return, thereby resulting in an increase in Estimated % Above High Water Mark/Benchmark. |
| (b) | For the Hedge Fund SolutionsMulti-Asset Investing managed funds, at June 30, 2023,March 31, 2024, the incremental appreciation needed for the 20%2% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was $640.5$183.7 million, a decrease of $(193.6)$(458.7) million, compared to $834.1$642.4 million at June 30, 2022.March 31, 2023. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks as of June 30, 2023, 73%March 31, 2024, 33% were within 5% of reaching their respective High Water Mark. |
Non-GAAP Financial Measures These non-GAAP financial measures are presented without the consolidation of any Blackstone Funds that are consolidated into the Condensed Consolidated Financial Statements.condensed consolidated financial statements. Consequently, all non-GAAP financial measures exclude the assets, liabilities and operating results related to the Blackstone Funds. See “—Key Financial Measures and Indicators” for our definitions of Distributable Earnings, Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA.
The following table is a reconciliation of Net Income (Loss) Attributable to Blackstone Inc. to Distributable Earnings, Total Segment Distributable Earnings, Fee Related Earnings and Adjusted EBITDA: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Net Income (Loss) Attributable to Blackstone Inc. | | $ | 601,274 | | | $ | (29,393 | ) | | $ | 687,086 | | | $ | 1,187,481 | | 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 Non-Controlling Interests in Consolidated Entities | | | 89,436 | | | | (216,707 | ) | | | 164,305 | | | | (332 | ) | Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | | | 17,688 | | | | 25,875 | | | | 10,988 | | | | 30,927 | | Net Income Attributable to Blackstone Inc. | | | $ | 847,386 | | | $ | 85,812 | | Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | | | | 685,439 | | | | 56,700 | | Net Income Attributable to Non-Controlling Interests in Consolidated Entities | | | | 102,827 | | | | 74,869 | | Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | | | | (39,669 | ) | | | (6,700 | ) | | | | | | | | | | | | | | | | 1,203,707 | | | | (255,746 | ) | | | 1,414,388 | | | | 2,241,868 | | | | | | 1,595,983 | | | | 210,681 | | | | | 223,269 | | | | 36,514 | | | | 270,944 | | | | 519,795 | | | | 283,671 | | | | 47,675 | | | | | | | | | | | | | | Net Income (Loss) Before Provision for Taxes | | | 1,426,976 | | | | (219,232 | ) | | | 1,685,332 | | | | 2,761,663 | | Transaction-Related Charges (a) | | | 2,228 | | | | 25,141 | | | | 10,849 | | | | 50,474 | | Net Income Before Provision for Taxes | | | | 1,879,654 | | | | 258,356 | | Transaction-Related and Non-Recurring Items (a) | | | | 52,197 | | | | 8,621 | | Amortization of Intangibles (b) | | | 7,412 | | | | 17,044 | | | | 18,753 | | | | 34,088 | | | | 7,333 | | | | 11,341 | | Impact of Consolidation (c) | | | (107,124 | ) | | | 190,832 | | | | (175,293 | ) | | | (30,595 | ) | | | (63,158 | ) | | | (68,169 | ) | Unrealized Performance Revenues (d) | | | (114,379 | ) | | | 3,467,668 | | | | 644,937 | | | | 2,174,618 | | | | (445,936 | ) | | | 759,316 | | Unrealized Performance Allocations Compensation (e) | | | 54,155 | | | | (1,386,543 | ) | | | (259,094 | ) | | | (914,259 | ) | | | 180,900 | | | | (313,249 | ) | Unrealized Principal Investment (Income) Loss (f) | | | (160,702 | ) | | | 203,288 | | | | 318,418 | | | | 176,530 | | | | (442,976 | ) | | | 479,120 | | | | | 31,718 | | | | (155,704 | ) | | | 45,898 | | | | (228,523 | ) | | | (44,747 | ) | | | 14,180 | | Equity-Based Compensation (h) | | | 249,755 | | | | 195,644 | | | | 517,889 | | | | 397,189 | | | | 317,779 | | | | 268,134 | | Administrative Fee Adjustment (i) | | | 2,413 | | | | 2,476 | | | | 4,860 | | | | 4,961 | | | | 2,477 | | | | 2,447 | | Taxes and Related Payables (j) | | | (180,380 | ) | | | (354,789 | ) | | | (351,385 | ) | | | (502,441 | ) | | | (177,145 | ) | | | (171,005 | ) | | | | | | | | | | | | | | | | 1,212,072 | | | | 1,985,825 | | | | 2,461,164 | | | | 3,923,705 | | | | 1,266,378 | | | | 1,249,092 | | Taxes and Related Payables (j) | | | 180,380 | | | | 354,789 | | | | 351,385 | | | | 502,441 | | | | 177,145 | | | | 171,005 | | Net Interest and Dividend (Income) Loss (k) | | | (46,110 | ) | | | 3,282 | | | | (37,002 | ) | | | 15,399 | | Net Interest and Dividend Loss (k) | | | | 9,801 | | | | 9,108 | | | | | | | | | | | | | | Total Segment Distributable Earnings | | | 1,346,342 | | | | 2,343,896 | | | | 2,775,547 | | | | 4,441,545 | | | | 1,453,324 | | | | 1,429,205 | | Realized Performance Revenues (l) | | | (388,423 | ) | | | (2,206,774 | ) | | | (1,029,949 | ) | | | (3,519,584 | ) | | | (536,393 | ) | | | (641,526 | ) | Realized Performance Compensation (m) | | | 178,370 | | | | 926,974 | | | | 474,394 | | | | 1,446,094 | | | | 253,024 | | | | 296,024 | | Realized Principal Investment Income (n) | | | 7,461 | | | | (43,509 | ) | | | (36,230 | ) | | | (200,604 | ) | | | (9,938 | ) | | | (43,691 | ) | | | | | | | | | | | | | | | $ | 1,143,750 | | | $ | 1,020,587 | | | $ | 2,183,762 | | | $ | 2,167,451 | | | $ | 1,160,017 | | | $ | 1,040,012 | | | | | | | | | | | | | | Adjusted EBITDA Reconciliation | | | | | | | | | | | $ | 1,212,072 | | | $ | 1,985,825 | | | $ | 2,461,164 | | | $ | 3,923,705 | | | $ | 1,266,378 | | | $ | 1,249,092 | | | | | 107,130 | | | | 69,425 | | | | 211,339 | | | | 136,027 | | | | 107,640 | | | | 104,209 | | Taxes and Related Payables (j) | | | 180,380 | | | | 354,789 | | | | 351,385 | | | | 502,441 | | | | 177,145 | | | | 171,005 | | Depreciation and Amortization (p) | | | 24,100 | | | | 15,644 | | | | 47,275 | | | | 29,960 | | | | 26,053 | | | | 23,175 | | | | | | | | | | | | | | | | $ | 1,523,682 | | | $ | 2,425,683 | | | $ | 3,071,163 | | | $ | 4,592,133 | | | $ | 1,577,216 | | | $ | 1,547,481 | | | | | | | | | | | | | |
| (a) | This adjustment removes Transaction-Related Charges,and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related Chargesand Non-Recurring Items arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering.offering and non-recurring gains, losses, or other charges, if any. 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.actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of Blackstone’s operational performance. For the three months ended March 31, 2024, this adjustment includes removal of an accrual for an estimated liability for a legal matter. |
| (b) | This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation. |
| (c) | This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
| (d) | This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back of performance revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
March 31, | | | | | | | | | | | | | | | | | | | | | GAAP Unrealized Performance Allocations | | $ | 114,395 | | | $ | (3,467,668 | ) | | $ | (644,817 | ) | | $ | (2,174,618 | ) | | $ | 445,943 | | | $ | (759,212 | ) | | | | (16 | ) | | | — | | | | (120 | ) | | | — | | | | (7 | ) | | | (104 | ) | | | | | | | | | | | | | Unrealized Performance Revenues | | $ | 114,379 | | | $ | (3,467,668 | ) | | $ | (644,937 | ) | | $ | (2,174,618 | ) | | $ | 445,936 | | | $ | (759,316 | ) | | | | | | | | | | | | |
| (e) | This adjustment removes Unrealized Performance Allocations Compensation. |
| (f) | This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended
March 31, | | | | | | | | | | | | | | | | | | | | | GAAP Unrealized Principal Investment Income (Loss) | | $ | 164,089 | | | $ | (500,490 | ) | | $ | (327,328 | ) | | $ | (426,529 | ) | | $ | 461,623 | | | $ | (491,417 | ) | | | | (3,387 | ) | | | 297,202 | | | | 8,910 | | | | 249,999 | | | | (18,647 | ) | | | 12,297 | | | | | | | | | | | | | | Unrealized Principal Investment Income (Loss) | | $ | 160,702 | | | $ | (203,288 | ) | | $ | (318,418 | ) | | $ | (176,530 | ) | | $ | 442,976 | | | $ | (479,120 | ) | | | | | | | | | | | | |
| (g) | This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of certain Transaction-Related Charges.and Non-Recurring Items. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (31,664 | ) | | $ | 155,588 | | | $ | (45,818 | ) | | $ | 228,457 | | | $ | 44,820 | | | $ | (14,154 | ) | | | | (54 | ) | | | 116 | | | | (80 | ) | | | 66 | | | | (73 | ) | | | (26 | ) | | | | | | | | | | | | | | | $ | (31,718 | ) | | $ | 155,704 | | | $ | (45,898 | ) | | $ | 228,523 | | | $ | 44,747 | | | $ | (14,180 | ) | | | | | | | | | | | | |
| (h) | This adjustment removes Equity-Based Compensation on a segment basis. |
| (i) | This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation. |
| (j) | Taxes 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 adjusted to exclude the tax impact of any divestitures. For interim periods, taxes are calculated using the preferred annualized effective tax rate approach. Related Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. See “—Key Financial Measures and Indicators — Distributable Earnings” for the full definition of Taxes and Related Payables. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 155,873 | | | $ | 151,002 | | | | | 21,272 | | | | 20,003 | | | | | | | | | | | Taxes and Related Payables | | $ | 177,145 | | | $ | 171,005 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 156,956 | | | $ | 324,954 | | | $ | 307,958 | | | $ | 449,599 | | | | | 23,424 | | | | 29,835 | | | | 43,427 | | | | 52,842 | | | | | | | | | | | | | | | | | | | Taxes and Related Payables | | $ | 180,380 | | | $ | 354,789 | | | $ | 351,385 | | | $ | 502,441 | | | | | | | | | | | | | | | | | | |
| (k) | This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP Interest and Dividend Revenue | | $ | 97,839 | | | $ | 90,485 | | | | | | | | | | | | | | — | | | | 4,616 | | | | | | | | | | | Interest and Dividend Revenue | | | 97,839 | | | | 95,101 | | | | | | | | | | | | | | 108,203 | | | | 104,441 | | | | | (563 | ) | | | (232 | ) | | | | | | | | | | | | | 107,640 | | | | 104,209 | | | | | | | | | | | Net Interest and Dividend Loss | | $ | (9,801 | ) | | $ | (9,108 | ) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | GAAP Interest and Dividend Revenue | | $ | 148,505 | | | $ | 62,075 | | | $ | 238,990 | | | $ | 116,560 | | | | | 4,735 | | | | 4,068 | | | | 9,351 | | | | 4,068 | | | | | | | | | | | | | | | | | | | Interest and Dividend Revenue | | | 153,240 | | | | 66,143 | | | | 248,341 | | | | 120,628 | | | | | | | | | | | | | | | | | | | | | | 108,096 | | | | 69,642 | | | | 212,537 | | | | 136,389 | | | | | (966 | ) | | | (217 | ) | | | (1,198 | ) | | | (362 | ) | | | | | | | | | | | | | | | | | | | | | 107,130 | | | | 69,425 | | | | 211,339 | | | | 136,027 | | | | | | | | | | | | | | | | | | | Net Interest and Dividend Income (Loss) | | $ | 46,110 | | | $ | (3,282 | ) | | $ | 37,002 | | | $ | (15,399 | ) | | | | | | | | | | | | | | | | | |
| (l) | This adjustment removes the total segment amount of Realized Performance Revenues. |
| (m) | This adjustment removes the total segment amount of Realized Performance Compensation. |
| (n) | This adjustment removes the total segment amount of Realized Principal Investment Income. |
| (o) | This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement. |
| (p) | This adjustment adds back Depreciation and Amortization on a segment basis. |
The following tables are a reconciliation of Total GAAP Investments to Net Accrued Performance Revenues. Total GAAP Investments and Net Accrued Performance Revenues consist of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Investments of Consolidated Blackstone Funds | | $ | 5,490,773 | | | $ | 3,764,850 | | | $ | 3,458,911 | | | $ | 5,443,867 | | Equity Method Investments | | | | | | | | 5,585,603 | | | | 5,446,688 | | | | 6,100,640 | | | | 5,598,552 | | Accrued Performance Allocations | | | 11,496,244 | | | | 13,544,855 | | | | 11,163,116 | | | | 11,517,750 | | Corporate Treasury Investments | | | 707,079 | | | | 810,672 | | | | 197,976 | | | | 958,632 | | | | | 3,768,922 | | | | 3,756,693 | | | | 5,001,647 | | | | 3,467,150 | | | | | | | | | | | | $ | 27,048,621 | | | $ | 27,323,758 | | | $ | 25,922,290 | | | $ | 26,985,951 | | | | | | | | | | | Accrued Performance Allocations - GAAP | | $ | 11,496,244 | | | $ | 13,544,855 | | Impact of Consolidation (a) | | | — | | | | 12,475 | | Due from Affiliates - GAAP (b) | | | 197,998 | | | | 136,631 | | Less: Net Realized Performance Revenues (c) | | | (283,131 | ) | | | (262,083 | ) | Less: Accrued Performance Compensation - GAAP (d) | | | (4,941,915 | ) | | | (5,955,982 | ) | Accrued Performance Allocations - GAAP | | Accrued Performance Allocations - GAAP | | Accrued Performance Allocations - GAAP | | | $ | 11,163,116 | | | $ | 11,517,750 | | Due from Affiliates - GAAP (a) | | | | 249,968 | | | | 190,337 | | Less: Net Realized Performance Revenues (b) | | | | (448,811 | ) | | | (379,453 | ) | Less: Accrued Performance Compensation - GAAP (c) | | | | (4,880,191 | ) | | | (4,956,515 | ) | | | | | | | | | Net Accrued Performance Revenues | | $ | 6,469,196 | | | $ | 7,475,896 | | | $ | 6,084,082 | | | $ | 6,372,119 | | | | | | | | | |
| (a) | This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.
|
(b) | Represents GAAP accrued performance revenue recorded within Due from Affiliates. |
(c)(b) | Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized. |
(d)(c) | Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to Affiliates. |
Liquidity and Capital Resources Blackstone’s business model derives revenue primarily from third party Assets Under Management. Blackstone is not a capital or balance sheet intensive business and targets operating expense levels such that total management and advisory fees exceed total operating expenses each period. As a result, we require limited capital resources to support the working capital or operating needs of our businesses. We draw primarily on the long-term committed or invested capital of investors in our limited partner investorsinvestment vehicles to fund the investment requirements of the Blackstone Funds and use our own realizations and cash flows to invest in growth initiatives, make commitments to our own funds, where our minimum general partner commitments are generally less than 5% of the limited partner commitments of a fund, and pay dividends to stockholders and distributions to holders of Holdings Units. Fluctuations in our statement of financial condition result primarily from activities of the Blackstone Funds that are consolidated as well as business transactions, such as the issuance of senior notes. The majority economic ownership interests of such consolidated Blackstone Funds are reflected as Redeemable Non-Controlling Interests in Consolidated Entities, and Non-Controlling Interests in Consolidated Entities in the Consolidated Financial Statements. The consolidation of these Blackstone Funds has no net effect on Blackstone’s Net Income or Equity. Additionally, fluctuations in our statement of financial condition also include appreciation or depreciation in Blackstone investments in the non-consolidated Blackstone Funds, additional investments and redemptions of such interests in the non-consolidated Blackstone Funds and the collection of receivables related to management and advisory fees.
Total Assets were $41.6$39.7 billion as of June 30, 2023,March 31, 2024, a decrease of $941.4$581.2 million from December 31, 2022.2023. The decrease in Total Assets was principally due to a decrease of $1.3$1.0 billion in total assets attributable to consolidated operating partnerships,Blackstone Funds, partially offset by an increase of $284.6$387.4 million in total assets attributable to consolidated Blackstone Funds.operating partnerships. The decrease in total assets attributable to consolidated Blackstone Funds was primarily due to decreases of $860.6 million in Investments and $148.5 million in Cash and Cash Equivalents, which were primarily due to the deconsolidation of two CLOs during the three months ended March 31, 2024. The increase in total assets attributable to consolidated operating partnerships was primarily due to decreasesincreases of $971.8$593.1 million in Investments and $228.9 million in Due from Affiliates, partially offset by a decrease of $451.4 million in Cash and Cash Equivalents and $970.7 millionEquivalents. The increase in Investments respectively.was primarily due to unrealized appreciation across our Credit & Insurance segment, partially offset by unrealized depreciation in our Real Estate segment. The increase in Due from Affiliates was primarily due to an increase in management fees, performance revenues and reimbursable expenses due from non-consolidated Blackstone Funds. The decrease in Cash and Cash Equivalents was primarily due to ongoing operating activities including the payoff at maturity of 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 investments within Corporate Treasury Investments. The increase in total assets attributable to consolidated Blackstone 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.activities. Total Liabilities were $22.5$21.2 billion as of June 30, 2023,March 31, 2024, a decrease of $350.9$983.4 million from December 31, 2022.2023. The decrease in Total Liabilities was principally due to a decrease of $745.9 million in total liabilities attributable to consolidated operating partnerships, partially offset by an increase of $393.6$902.4 million in total liabilities attributable to consolidated Blackstone Funds. The decrease in total liabilities attributable to consolidated operating partnershipsBlackstone Funds was primarily due to decreases of $415.9 million in Accrued Compensation and Benefits and $314.0$517.3 million in Loans Payable. The decreasePayable and $322.2 million in Accounts Payable, Accrued CompensationExpenses and Benefits was primarily due to a decrease in performance compensation. The decrease in Loans Payable wasOther Liabilities, which were primarily due to the payoff at maturitydeconsolidation 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 consolidation of one CLO. In light of the disruption to the U.S. regional banking systemtwo CLOs during the sixthree 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.March 31, 2024.
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 $4.135$4.325 billion committed revolving credit facility. As of June 30, 2023,March 31, 2024, Blackstone had $3.3$2.5 billion in Cash and Cash Equivalents, $707.1$198.0 million invested in Corporate Treasury Investments and $3.8$5.0 billion in Other Investments (which included $3.4$4.6 billion of liquid investments), against $10.7 billion in borrowings from our bond issuances, and no borrowings outstanding under our revolving credit facility. In addition to the cash we receivedreceive from our notes offerings and availability under our revolving credit facility, we expect to receive (a) cash generated from operating activities, (b) Performance 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.
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 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.”
Our own capital commitments to our funds, the funds we invest in and our investment strategies as of June 30, 2023March 31, 2024 consisted of the following: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 750,000 | | | $ | 36,809 | | | $ | 150,000 | | | $ | 12,270 | | | | | 300,000 | | | | 31,843 | | | | 100,000 | | | | 10,614 | | | | | 300,000 | | | | 41,613 | | | | 100,000 | | | | 13,871 | | | | | 300,000 | | | | 54,549 | | | | 100,000 | | | | 18,183 | | | | | 300,000 | | | | 285,361 | | | | 100,000 | | | | 95,120 | | | | | 100,000 | | | | 11,257 | | | | 35,000 | | | | 3,752 | | | | | 130,000 | | | | 22,477 | | | | 43,333 | | | | 7,492 | | | | | 150,000 | | | | 25,647 | | | | 43,333 | | | | 7,409 | | | | | 130,000 | | | | 52,892 | | | | 43,333 | | | | 17,631 | | | | | 130,000 | | | | 130,000 | | | | 43,333 | | | | 43,333 | | | | | 50,392 | | | | 10,342 | | | | 16,797 | | | | 3,447 | | | | | 70,707 | | | | 14,452 | | | | 23,569 | | | | 4,817 | | | | | 81,078 | | | | 70,036 | | | | 27,026 | | | | 23,345 | | | | | 50,000 | | | | 13,499 | | | | 16,667 | | | | 4,500 | | | | | 50,000 | | | | 15,910 | | | | 49,113 | | | | 15,628 | | | | | 50,000 | | | | 50,000 | | | | 49,660 | | | | 49,660 | | | | | 312,821 | | | | 32,132 | | | | — | | | | — | | | | | 29,597 | | | | 8,720 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | 3,284,595 | | | | 907,539 | | | | 941,164 | | | | 331,072 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 629,356 | | | $ | 30,642 | | | $ | — | | | $ | — | | | | | 719,718 | | | | 81,403 | | | | 250,000 | | | | 28,276 | | | | | 500,000 | | | | 36,635 | | | | 225,000 | | | | 16,486 | | | | | 500,000 | | | | 211,001 | | | | 225,000 | | | | 94,951 | | | | | 500,000 | | | | 500,000 | | | | 225,000 | | | | 225,000 | | | | | 50,000 | | | | 4,728 | | | | — | | | | — | | | | | 80,000 | | | | 12,018 | | | | 26,667 | | | | 4,006 | | | | | 80,000 | | | | 42,850 | | | | 26,667 | | | | 14,283 | | | | | 41,092 | | | | 41,092 | | | | 13,697 | | | | 13,697 | | | | | 117,747 | | | | 27,016 | | | | 18,992 | | | | 4,358 | | | | | 160,000 | | | | 112,943 | | | | 32,640 | | | | 23,040 | | | | | 40,000 | | | | 5,869 | | | | 13,333 | | | | 1,956 | | | | | 100,000 | | | | 89,186 | | | | 33,333 | | | | 29,729 | | | | | 480,535 | | | | 234,416 | | | | 160,178 | | | | 78,139 | | | | | 1,229,770 | | | | 739,646 | | | | 1,150,817 | | | | 696,099 | | | | | 322,433 | | | | 85,486 | | | | — | | | | — | | | | | 142,057 | | | | 92,543 | | | | 37,353 | | | | 28,886 | | | | | 161,651 | | | | 104,824 | | | | 53,715 | | | | 34,929 | | | | | 290,209 | | | | 25,651 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | 6,144,568 | | | | 2,477,949 | | | | 2,492,392 | | | | 1,293,835 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mezzanine / Opportunistic II | | | 120,000 | | | | 29,182 | | | | 110,101 | | | | 26,774 | | Mezzanine / Opportunistic III | | | 130,783 | | | | 38,331 | | | | 96,654 | | | | 28,328 | | Mezzanine / Opportunistic IV | | | 122,000 | | | | 85,626 | | | | 115,604 | | | | 81,137 | | | | | 63,000 | | | | 10,137 | | | | 56,882 | | | | 9,153 | | | | | 92,574 | | | | 34,854 | | | | 89,670 | | | | 33,785 | | | | | 54,550 | | | | 54,550 | | | | 18,183 | | | | 18,183 | | | | | 125,000 | | | | 51,695 | | | | 119,878 | | | | 49,576 | | Stressed / Distressed III | | | 151,000 | | | | 93,835 | | | | 146,729 | | | | 91,181 | | | | | 80,000 | | | | 37,627 | | | | 75,445 | | | | 35,484 | | | | | 150,000 | | | | 104,410 | | | | 148,601 | | | | 103,437 | | | | | 118,811 | | | | 118,811 | | | | 39,604 | | | | 39,604 | | | | | 52,102 | | | | 19,752 | | | | 50,670 | | | | 19,209 | | | | | 25,500 | | | | 12,550 | | | | 24,385 | | | | 12,001 | | | | | 153,605 | | | | 64,628 | | | | 39,633 | | | | 7,129 | | | | | | | | | | | | | | | | | | | | | | 1,438,925 | | | | 755,988 | | | | 1,132,039 | | | | 554,981 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 300,000 | | | $ | 27,172 | | | $ | 100,000 | | | $ | 9,057 | | | | | 300,000 | | | | 39,452 | | | | 100,000 | | | | 13,151 | | | | | 300,000 | | | | 47,414 | | | | 100,000 | | | | 15,805 | | | | | 300,000 | | | | 276,826 | | | | 100,000 | | | | 92,275 | | | | | 100,000 | | | | 11,257 | | | | 35,000 | | | | 3,752 | | | | | 130,000 | | | | 19,077 | | | | 43,333 | | | | 6,359 | | | | | 150,000 | | | | 21,616 | | | | 43,333 | | | | 6,245 | | | | | 130,000 | | | | 44,439 | | | | 43,333 | | | | 14,813 | | | | | 130,000 | | | | 120,025 | | | | 43,333 | | | | 40,008 | | | | | 50,392 | | | | 10,342 | | | | 16,797 | | | | 3,447 | | | | | 70,707 | | | | 12,877 | | | | 23,569 | | | | 4,292 | | | | | 81,078 | | | | 66,882 | | | | 27,026 | | | | 22,294 | | | | | 50,000 | | | | 13,499 | | | | 16,667 | | | | 4,500 | | | | | 50,000 | | | | 15,702 | | | | 49,113 | | | | 15,423 | | | | | 50,000 | | | | 50,000 | | | | 48,070 | | | | 48,070 | | | | | 310,581 | | | | 18,279 | | | | — | | | | — | | | | | 35,156 | | | | 14,935 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | 2,537,914 | | | | 809,794 | | | | 789,574 | | | | 299,491 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 50,000 | | | $ | 1,482 | | | $ | — | | | $ | — | | | | | 22,000 | | | | 15,591 | | | | — | | | | — | | | | | 15,000 | | | | 15,000 | | | | — | | | | — | | | | | 154,610 | | | | 24,370 | | | | — | | | | — | | | | | 50,000 | | | | 24,127 | | | | — | | | | — | | | | | 100,000 | | | | 27,765 | | | | — | | | | — | | | | | 10,000 | | | | 6,710 | | | | — | | | | — | | | | | 17,941 | | | | 8,817 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | Total Hedge Fund Solutions | | | 419,551 | | | | 123,862 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 477,534 | | | | 325,947 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | $ | 11,765,173 | | | $ | 4,591,285 | | | $ | 4,565,595 | | | $ | 2,179,888 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 629,356 | | | $ | 30,642 | | | $ | — | | | $ | — | | | | | 719,718 | | | | 81,400 | | | | 250,000 | | | | 28,275 | | | | | 500,000 | | | | 36,635 | | | | 225,000 | | | | 16,486 | | | | | 500,000 | | | | 197,551 | | | | 225,000 | | | | 88,898 | | | | | 500,000 | | | | 500,000 | | | | 225,000 | | | | 225,000 | | | | | 50,000 | | | | 4,728 | | | | — | | | | — | | | | | 80,000 | | | | 12,018 | | | | 26,667 | | | | 4,006 | | | | | 80,000 | | | | 27,907 | | | | 26,667 | | | | 9,302 | | | | | 64,827 | | | | 64,827 | | | | 21,609 | | | | 21,609 | | | | | 117,747 | | | | 27,016 | | | | 18,992 | | | | 4,358 | | | | | 160,000 | | | | 112,965 | | | | 32,640 | | | | 23,045 | | | | | 40,000 | | | | 5,869 | | | | 13,333 | | | | 1,956 | | | | | 100,000 | | | | 74,993 | | | | 33,333 | | | | 24,998 | | | | | 491,600 | | | | 219,906 | | | | 163,867 | | | | 73,302 | | | | | 1,269,930 | | | | 697,008 | | | | 1,165,195 | | | | 633,919 | | | | | 356,738 | | | | 65,912 | | | | — | | | | — | | | | | 142,057 | | | | 83,247 | | | | 37,351 | | | | 25,941 | | | | | 162,861 | | | | 106,032 | | | | 54,119 | | | | 35,333 | | | | | 290,209 | | | | 22,534 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | 6,255,043 | | | | 2,371,190 | | | | 2,518,773 | | | | 1,216,428 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Mezzanine / Opportunistic II | | | 120,000 | | | | 29,182 | | | | 110,101 | | | | 26,774 | | Mezzanine / Opportunistic III | | | 130,783 | | | | 34,664 | | | | 98,127 | | | | 26,008 | | Mezzanine / Opportunistic IV | | | 122,000 | | | | 60,699 | | | | 115,928 | | | | 57,677 | | | | | 63,000 | | | | 5,084 | | | | 56,882 | | | | 4,590 | | | | | 92,503 | | | | 34,771 | | | | 89,599 | | | | 33,703 | | | | | 22,835 | | | | 18,644 | | | | 7,612 | | | | 6,215 | | | | | 125,000 | | | | 51,612 | | | | 119,878 | | | | 49,497 | | Stressed / Distressed III | | | 151,000 | | | | 93,835 | | | | 146,432 | | | | 90,997 | | | | | 80,000 | | | | 36,785 | | | | 75,445 | | | | 34,691 | | | | | 150,000 | | | | 104,262 | | | | 148,577 | | | | 103,273 | | | | | 127,000 | | | | 118,110 | | | | 117,935 | | | | 109,680 | | | | | 52,102 | | | | 19,752 | | | | 50,670 | | | | 19,209 | | | | | 25,500 | | | | 12,550 | | | | 24,385 | | | | 12,001 | | | | | 501,600 | | | | 129,053 | | | | 1,600 | | | | 412 | | | | | 180,904 | | | | 80,479 | | | | 47,700 | | | | 11,673 | | | | | | | | | | | | | | | | | | | | | | 1,944,227 | | | | 829,482 | | | | 1,210,871 | | | | 586,400 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | Senior Managing Directors | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 50,000 | | | $ | 1,482 | | | $ | — | | | $ | — | | | | | 22,000 | | | | 17,515 | | | | — | | | | — | | | | | 15,000 | | | | 13,411 | | | | — | | | | — | | | | | 154,610 | | | | 19,678 | | | | — | | | | — | | | | | 50,000 | | | | 18,845 | | | | — | | | | — | | | | | 20,000 | | | | 12,274 | | | | — | | | | — | | | | | 7,498 | | | | 2,230 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | Total Multi-Asset Investing | | | 319,108 | | | | 85,435 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 654,415 | | | | 573,955 | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | $ | 11,710,707 | | | $ | 4,669,856 | | | $ | 4,519,218 | | | $ | 2,102,319 | | | | | | | | | | | | | | | | | | |
| (a) | We expect our commitments to be drawn down over time and to be funded by available cash and cash generated from operations and realizations. Taking into account prevailing market conditions and both the liquidity and cash or liquid investment balances, we believe that the sources of liquidity described above will be more than sufficient to fund our working capital requirements. Additionally, for some of the general partner commitments shown in the table above, we require our senior managing directors and certain other professionals to fund a portion of the commitment even though the ultimate obligation to fund the aggregate commitment is ours pursuant to the governing agreements of the respective funds. The amounts of the aggregate applicable general partner original and remaining commitment are shown in the table above. |
| (b) | Includes the full portion of our commitments (i) required to be funded by senior managing directors and certain other professionals and (ii) that are elected by such individuals to be funded for the life of a fund, where such fund permits such election. Excludes amounts that are elected by such individuals to be funded on an annual basis and certain de minimis commitments funded by such individuals in certain carry funds. |
| (c) | Represents capital commitments to a number of other funds in each respective segment. |
| (d) | Represents loan origination commitments, revolver commitments and capital market commitments. |
For a tabular presentation of the timing of Blackstone’s remaining capital commitments to our funds, the funds we invest in and our investment strategies see “—Contractual Obligations.”Obligations”.
As of June 30, 2023,March 31, 2024, Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of Blackstone, had issued and outstanding the following senior notes (collectively the “Notes”): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 300,000 | | | | | 600,000 | | | | $ | 300,000 | | | | $ | 600,000 | | | | $ | 650,000 | | | | | 600,000 | | | | $ | 500,000 | | | | $ | 500,000 | | | | $ | 800,000 | | | | $ | 500,000 | | | | $ | 900,000 | | | | | 500,000 | | | | $ | 250,000 | | | | $ | 500,000 | | | | $ | 350,000 | | | | $ | 300,000 | | | | $ | 400,000 | | | | $ | 400,000 | | | | $ | 550,000 | | | | $ | 1,000,000 | | | | | | | | | $ | 10,681,80010,658,000 | | | | | | |
| (a) | The Notes are unsecured and unsubordinated obligations of the Issuer and are fully and unconditionally guaranteed, jointly and severally, by Blackstone Inc. and each of the Blackstone Holdings Partnerships. The Notes contain customary covenants and financial restrictions that, among other things, limit the Issuer and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The Notes also contain customary events of default. All or a portion of the Notes may be redeemed at our option, in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the Notes are subject to repurchase at the repurchase price as set forth in the Notes. |
Blackstone, through its indirect subsidiary Blackstone Holdings Finance Co. L.L.C.,the Issuer, has a $4.135$4.325 billion unsecured revolving credit facility (the “Credit Facility”) with Citibank, N.A., as administrative agent with a maturity date of June 3, 2027.December 15, 2028. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly.
For a tabular presentation of the payment timing of principal and interest due on Blackstone’s issued notes and revolving credit facilitythe Credit Facility see “—Contractual Obligations.”Obligations”. The following table sets forth information relating to our contractual obligations as of June 30, 2023March 31, 2024 on a consolidated basis and on a basis deconsolidating the Blackstone Funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating Lease Obligations (a) | | $ | 76,053 | | | $ | 328,061 | | | $ | 324,840 | | | $ | 744,772 | | | $ | 1,473,726 | | | $ | 124,596 | | | $ | 338,022 | | | $ | 326,584 | | | $ | 571,429 | | | $ | 1,360,631 | | | | | 88,136 | | | | 162,585 | | | | 52,026 | | | | — | | | | 302,747 | | | | 120,553 | | | | 126,253 | | | | 36,388 | | | | 4,058 | | | | 287,252 | | Blackstone Operating Borrowings (b) | | | 51 | | | | 335,493 | | | | 1,572,159 | | | | 8,814,080 | | | | 10,721,783 | | | | - | | | | 985,371 | | | | 1,575,679 | | | | 8,136,900 | | | | 10,697,950 | | Interest on Blackstone Operating Borrowings (c) | | | 159,673 | | | | 696,139 | | | | 673,647 | | | | 3,552,705 | | | | 5,082,164 | | | | 281,362 | | | | 689,746 | | | | 623,169 | | | | 3,265,431 | | | | 4,859,708 | | Borrowings of Consolidated Blackstone Funds | | | — | | | | — | | | | — | | | | 1,751,546 | | | | 1,751,546 | | | | - | | | | - | | | | - | | | | 180,131 | | | | 180,131 | | Interest on Borrowings of Consolidated Blackstone Funds | | | 9,891 | | | | 39,562 | | | | 39,562 | | | | 35,444 | | | | 124,459 | | | | 10,551 | | | | 28,137 | | | | 28,137 | | | | 25,208 | | | | 92,033 | | Blackstone Funds Capital Commitments to Investee Funds (d) | | | 97,072 | | | | — | | | | — | | | | — | | | | 97,072 | | | | 324,221 | | | | - | | | | - | | | | - | | | | 324,221 | | Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (e) | | | — | | | | 187,779 | | | | 235,373 | | | | 1,168,939 | | | | 1,592,091 | | | | - | | | | 194,364 | | | | 261,796 | | | | 1,168,595 | | | | 1,624,755 | | Unrecognized Tax Benefits, Including Interest and Penalties (f) | | | — | | | | — | | | | — | | | | — | | | | — | | | | - | | | | - | | | | - | | | | - | | | | - | | Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (g) | | | 4,591,285 | | | | — | | | | — | | | | — | | | | 4,591,285 | | | | 4,669,856 | | | | - | | | | - | | | | - | | | | 4,669,856 | | | | | | | | | | | | | | | | | | | | | | Consolidated Contractual Obligations | | | 5,022,161 | | | | 1,749,619 | | | | 2,897,607 | | | | 16,067,486 | | | | 25,736,873 | | | | 5,531,139 | | | | 2,361,893 | | | | 2,851,753 | | | | 13,351,752 | | | | 24,096,537 | | Borrowings of Consolidated Blackstone Funds | | | — | | | | — | | | | — | | | | (1,751,546 | ) | | | (1,751,546 | ) | | | - | | | | - | | | | - | | | | (180,131 | ) | | | (180,131 | ) | Interest on Borrowings of Consolidated Blackstone Funds | | | (9,891 | ) | | | (39,562 | ) | | | (39,562 | ) | | | (35,444 | ) | | | (124,459 | ) | | | (10,551 | ) | | | (28,137 | ) | | | (28,137 | ) | | | (25,208 | ) | | | (92,033 | ) | Blackstone Funds Capital Commitments to Investee Funds (d) | | | (97,072 | ) | | | — | | | | — | | | | — | | | | (97,072 | ) | | | (324,221 | ) | | | - | | | | - | | | | - | | | | (324,221 | ) | | | | | | | | | | | | | | | | | | | | | Blackstone Operating Entities Contractual Obligations | | $ | 4,915,198 | | | $ | 1,710,057 | | | $ | 2,858,045 | | | $ | 14,280,496 | | | $ | 23,763,796 | | | $ | 5,196,367 | | | $ | 2,333,756 | | | $ | 2,823,616 | | | $ | 13,146,413 | | | $ | 23,500,152 | | | | | | | | | | | | | | | | | | | | | |
| (a) | We lease our primary office space and certain office equipment under agreements that expire through 2043. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable they are included in the table above. The table above includes operating leases that are recognized as Operating Lease Liabilities, short-term leases that are not recorded as Operating Lease Liabilities and leases that have been signed but not yet commenced which are not recorded as Operating Lease Liabilities. The amounts in this table are presented net of contractual sublease commitments. |
| (b) | Represents the principal amounts due on our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. For our secured borrowings we project prepayments based on the performance of the underlying assets and principal may be paid down in full prior to their stated maturity. As of June 30, 2023,March 31, 2024, we had no borrowings outstanding under our revolver. |
| (c) | Represents interest to be paid over the maturity of our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the borrowings are held until their final maturity. For our secured borrowings, we project pre-payments based on the performance of the underlying assets with interest payments based on the estimated principal outstanding, inclusive of projected pre-payments. These amounts include commitment fees for unutilized borrowings under our revolver. |
| (d) | These obligations represent commitments of the consolidated Blackstone Funds to make capital contributions to investee funds and portfolio companies. These amounts are generally due on demand and are therefore presented in the less than one year category. |
| (e) | Represents obligations by Blackstone’s corporate subsidiary to make payments under the Tax Receivable Agreements to certain non-controlling interest holders for the tax savings realized from the taxable purchases of their interests in connection with the reorganization at the time of Blackstone’s initial public offering (“IPO”) in 2007 and subsequent purchases. The obligation represents the amount of the payments currently expected to be made, which are dependent on the tax savings actually realized as determined annually without discounting for the timing of the payments. As required by GAAP, the amount of the obligation included in the Condensed Consolidated Financial Statementscondensed consolidated financial statements and shown in Note 16.15. “Related Party Transactions” (see “Part I. Item 1. Financial Statements”) differs to reflect the net present value of the payments due to certain non-controlling interest holders. |
| (f) | As of June 30, 2023, there were no Unrecognized Tax Benefits, including Interest and Penalties. In addition, Blackstone is not able to make a reasonably reliable estimate of the timing of payments in individual years in connection with gross unrecognized benefits of $165.7$223.7 million and interest of $44.5$66.3 million as of March 31, 2024; therefore, such amounts are not included in the above contractual obligations table.
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| (g) | These obligations represent commitments by us to provide general partner capital funding to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. These amounts are generally due on demand and are therefore presented in the less than one year category; however, a substantial amount of the capital commitments are expected to be called over the next three years. We expect to continue to make these general partner capital commitments as we raise additional amounts for our investment funds over time. |
Blackstone and certain of its consolidated funds provide financial guarantees. The amounts and nature of these guarantees are described in Note 17.16. “Commitments and Contingencies — Contingencies — Guarantees” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. In many of its service contracts, Blackstone agrees to indemnify the third-partythird party service provider under certain circumstances. The terms of the indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined and has not been included in the above contractual obligations table or recorded in our Condensed Consolidated Financial Statementscondensed consolidated financial statements as of June 30, 2023.March 31, 2024. Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceed the amount due to Blackstone based on cumulative results of that fund. The amounts and nature of Blackstone’s clawback obligations are described in Note 17.16. “Commitments and Contingencies — Contingencies—Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.
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 number 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,March 31, 2024, Blackstone repurchased 1.0 million and 2.00.7 million shares of common stock at a total cost of $86.0 million and $176.1 million, respectively.$88.4 million. As of June 30, 2023,March 31, 2024, the amount remaining available for repurchases under the program was $931.9$668.4 million. Our intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by our board of directors to be necessary or appropriate to provide for the conduct of our business, to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and dividends to stockholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter. For Blackstone’s definition of Distributable Earnings, see “—Key Financial Measures and Indicators.” All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our board of directors, and our board of directors may change our dividend policy at any time, including, without limitation, to reduce such quarterly dividends or even to eliminate such dividends entirely. Because the publicly traded entity and/or its wholly owned subsidiaries must pay taxes and make payments under the tax receivable agreements, the amounts ultimately paid as dividends by Blackstone to common stockholders in respect of each fiscal year are generally expected to be less, on a per share or per unit basis, than the amounts distributed by the Blackstone Holdings Partnerships to the Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships in respect of their Blackstone Holdings Partnership Units. Following Blackstone’s conversion from a limited partnership to a corporation, we expect to pay more corporate income taxes than we would have as a limited partnership, which will increase this difference between the per share dividend and per unit distribution amounts. Dividends are treated as qualified dividends to the extent of Blackstone’s current and accumulated earnings and profits, with any excess dividends treated as a return of capital to the extent of the stockholder’s basis.
The following graph shows fiscal quarterly and annual per common stockholder dividends for 20232024 and 2022.2023. Dividends are declared and paid in the quarter subsequent to the quarter in which they are earned. With respect to the secondfirst quarter of fiscal year 2023,2024, we paid to stockholders of our common stock a dividend of $0.79$0.83 per share, aggregating to $1.61 per share of common stock in respect of the six months ended June 30, 2023.share. With respect to fiscal year 2022,2023, we paid stockholders aggregate dividends of $4.40$3.35 per share. We may under certain circumstances use leverage opportunistically and over time to create the most efficient capital structure for Blackstone and our stockholders. In addition to the borrowings from our notenotes issuances and our revolving credit facility, we may use reverse repurchase agreements, repurchase agreements and securities sold, not yet purchased. Reverse repurchase agreements are entered into primarily to take advantage of opportunistic yields otherwise absent in the overnight markets and also to use the collateral received to cover securities sold, not yet purchased. Repurchase agreements are entered into primarily to opportunistically yield higher spreads on purchased securities. The balances held in these financial instruments fluctuate based on Blackstone’s liquidity needs, market conditions and investment risk profiles.
The following table presents information regarding these financial instruments which are included in Accounts Payable, Accrued Expenses and Other Liabilities in our Condensed Consolidated Statements of Financial Condition: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 18.3 | | | $ | 3.8 | | Balance, December 31, 2022 | | $ | 89.9 | | | $ | 3.8 | | Six Months Ended June 30, 2023 | | | | | | | | | | | $ | 44.5 | | | $ | 3.9 | | | | $ | 90.1 | | | $ | 3.9 | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 3.9 | | Balance, December 31, 2023 | | $ | 3.9 | | Three Months Ended March 31, 2024 | | | | | | | $ | 3.9 | | | | $ | 3.9 | |
Critical Accounting Policies We prepare our Condensed Consolidated Financial Statementscondensed consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make assumptions, estimates and/or judgments that affect the reported amounts of assets, liabilities, revenues and expenses in our Condensed Consolidated Financial Statements.condensed consolidated financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. These assumptions, estimates and/or judgments, however, are often subjective. Actual results may be affected negatively based on changing circumstances. If actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts become known. We believe the following critical accounting policies could potentially produce materially different results if we were to change underlying assumptions, estimates and/or judgments. For a description of our accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. Principles of Consolidation For a description of our accounting policy on consolidation, see Note 2. “Summary of Significant Accounting Policies — Consolidation” and Note 9. “Variable Interest Entities” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing for detailed information on Blackstone’s involvement with VIEs. The following discussion is intended to provide supplemental information about how the application of consolidation principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment. The determination that Blackstone holds a controlling financial interest in a Blackstone Fund or investment vehicle significantly changes the presentation of our condensed consolidated financial statements. In our Condensed Consolidated Statements of Financial Position included in this filing, we present 100% of the assets and liabilities of consolidated VIEs along with a non-controlling interest which represents the portion of the consolidated vehicle’s interests held by third parties. However, assets of our consolidated VIEs can only be used to settle obligations of the consolidated VIE and are not available for general use by Blackstone. Further, the liabilities of our consolidated VIEs do not have recourse to the general credit of Blackstone. In the Condensed Consolidated Statements of Operations, we eliminate any management fees, Incentive Fees, or Performance Allocations received or accrued from consolidated VIEs as they are considered intercompany transactions. We recognize 100% of the consolidated VIE’s investment income (loss) and allocate the portion of that income (loss) attributable to third party ownership to non-controlling interests in arriving at Net Income Attributable to Blackstone Inc.
The assessment of whether we consolidate a Blackstone Fund or investment vehicle we manage requires the application of significant judgment. These judgments are applied both at the time we become involved with the VIE and on an ongoing basis and include, but are not limited to: Determining whether our management fees, Incentive Fees or Performance Allocations represent variable interests – We make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we consider, among other things, the extent of third party investment in the entity and the terms of any other interests we hold in the VIE. Determining whether kick-out rights are substantive – We make judgments as to whether the third party investors in a partnership entity have the ability to remove the general partner, the investment manager or its equivalent, or to dissolve (liquidate) the partnership entity, through a simple majority vote. This includes an evaluation of whether barriers to exercise these rights exist. Concluding whether Blackstone has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE – As there is no explicit threshold in GAAP to define “potentially significant,” management must apply judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met. For a description of our accounting policy on revenue recognition, see Note 2. “Summary of Significant Accounting Policies — Revenue Recognition” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements.” For an additional description of the nature of our revenue arrangements, including how management fees, Incentive Fees, and Performance Allocations are generated, please refer to “Part I. Item 1. Business — Fee Structure/Incentive Arrangements” in our Annual Report on Form 10-K for the year ended December 31, 2022.2023. The following discussion is intended to provide supplemental information about how the application of revenue recognition principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment. Management and Advisory Fees, Net — 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. The range of management fee rates and the calculation base from which they are earned, generally, are as follows: On private equity, real estate, and certain of our hedge fund solutionsmulti-asset investing and credit-focused funds: 0.25% to 1.75% of committed capital or invested capital during the investment period, 0.25% to 1.50% of invested capital, committed capital or investment fair value subsequent to the investment period for private equity and real estate funds, and 1.00% to 1.75% of invested capital or net asset value subsequent to the investment period for certain of our hedge fund solutionsmulti-asset investing and credit-focused funds. On real estate and credit-focused funds structured like hedge funds: 0.50% to 1.00% of net asset value. On credit separately managed accounts: 0.20% to 1.35% of net asset value or total assets. On real estate separately managed accounts: 0.65%0.35% to 2.00% of invested capital, net operating income or net asset value.
On insurance separately managed accounts and investment vehicles: 0.25% to 1.00% of net asset value. On funds of hedge funds, certain hedge funds and separately managed accounts invested in hedge funds: 0.20% to 1.50% of net asset value. 0.20% to 0.50% of the aggregate par amount of collateral assets, including principal cash. On credit-focused registered and non-registered investment companies: 0.25% to 1.25% of total assets or net asset value. On certain real estate and private equity-focused registered funds or companies: 1.25% of net asset value. The investment adviser of BXMT receives annual management fees based on 1.50% of BXMT’s net proceeds received from equity offerings and accumulated “distributable earnings” (which is generally equal to its GAAP net income excluding certain non-cash and other items), subject to certain adjustments. The investment advisers of BREIT and BEPIF receive a management fee of 1.25% per annum of net asset value, payable monthly.Management fee calculations based on committed capital or invested capital are mechanical in nature and therefore do not require the use of significant estimates or judgments. Management fee calculations based on net asset value, total assets, or investment fair value depend on the fair value of the underlying investments within the funds. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and could vary depending on the valuation methodology that is used as well as economic conditions. See “—Fair Value” below for further discussion of the judgment required for determining the fair value of the underlying investments. — Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. Blackstone has concluded that investments made alongside its limited partners in a partnership which entitle Blackstone to a Performance Allocation represent equity method investments that are not in the scope of the GAAP guidance on accounting for revenues from contracts with customers. Blackstone accounts for these arrangements under the equity method of accounting. Under the equity method, 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. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. The change in the fair value of the investments held by certain Blackstone Funds is a significant input into the accrued Performance Allocation calculation and accrual for potential repayment of previously received Performance Allocations. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds. See “—Fair Value” below for further discussion related to significant estimates and assumptions used for determining fair value of the underlying investments.
Blackstone uses fair value throughout the reporting process. For a description of our accounting policies related to valuation, see Note 2. “Summary of Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Investments, at Fair Value” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. The following discussion is intended to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
The fair value of the investments held by Blackstone Funds is the primary input to the calculation of certain of our management fees, Incentive Fees, Performance Allocations and the related Compensation we recognize. Generally, Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Audit and Accounting Guide, , and in accordance with the GAAP guidance on investment companies and reflect their investments, including majority-owned and controlled investments (the “Portfolio Companies”), at fair value. In the absence of observable market prices, we utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Blackstone has also elected the fair value option for certain instruments it owns directly, including loans and receivables, investments in private debt securities and other proprietary investments. Blackstone is required to measure certain financial instruments at fair value, including debt instruments, equity securities and freestanding derivatives. Fair Value of Investments or Instruments that are Publicly Traded Securities that are publicly traded and for which a quoted market exists will be valued at the closing price of such securities in the principal market in which the security trades, or in the absence of a principal market, in the most advantageous market on the valuation date. When a quoted price in an active market exists, no block discounts or control premiums are permitted regardless of the size of the public security held. In some cases, securities will include legal and contractual restrictions limiting their purchase and sale for a period of time. A discount to publicly traded price may be appropriate in instances where a legal restriction is a characteristic of the security, such as may be required under SEC Rule 144. The amount of the discount, if taken, shall be determined based on the time period that must pass before the restricted security becomes unrestricted or otherwise available for sale. Fair Value of Investments or Instruments that are not Publicly Traded Investments for which market prices are not observable include private investments in the equity or debt of operating companies or real estate properties. Our primary methodology for determining the fair values of such investments is generally the income approach which provides an indication of fair value based on the present value of cash flows that a business, security, or property is expected to generate in the future. The most widely used methodology under the income approach is the discounted cash flow method which includes significant assumptions about the underlying investment’s projected net earnings or cash flows, discount rate, capitalization rate and exit multiple. Our secondary methodology, generally used to corroborate the results of the income approach, is typically the market approach. The most widely used methodology under the market approach relies upon valuations for comparable public companies, transactions, or assets, and includes making judgments about
which companies, transactions, or assets are comparable. Depending on the facts and circumstances associated with the investment, different primary and secondary methodologies may be used including option value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability weighted methods or recent round of financing. In certain cases debt and equity securities are valued on the basis of prices from an orderly transaction between market participants 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.
Management Process on Fair Value Due to the importance of fair value throughout the condensed consolidated financial statements and the significant judgment required to be applied in arriving at those fair values, we have developed a process around valuation that incorporates several levels of approval and review from both internal and external sources. Investments held by Blackstone Funds and investment vehicles are valued on at least a quarterly basis by our internal valuation or asset management teams, which are independent from our investment teams. For investments held by vehicles managed by more than one business unit, Blackstone has developed a process designed to facilitate coordination and alignment, as appropriate, of the fair value of in-scope investments across business units. For investments valued utilizing the income method and where Blackstone has information rights, we generally have a direct line of communication with each of the Portfolio Companies’ and underlying assets’ finance teams and collect financial data used to support projections used in a discounted cash flow analysis. The valuation team then analyzes the data received and updates the valuation models reflecting any changes in the underlying cash flow projections, weighted-average cost of capital, exit multiple or capitalization rate, and any other valuation input relevant to economic conditions. The results of all valuations of investments held by Blackstone Funds and investment vehicles are reviewed by the relevant business unit’s valuation sub-committee, which is comprised of key personnel from the business unit, typically the chief investment officer, chief operating officer, chief financial officer, chief compliance officer (or their respective equivalents where applicable) and other senior managing directors in the business. To further corroborate results, each business unit also generally obtains either a positive assurance opinion or a range of value from an independent valuation party, at least annually for internally prepared valuations for investments that have been held by Blackstone Funds and investment vehicles for greater than a year and quarterly for certain investments. Our firmwide valuation committee, chaired by our Chief Financial Officer and comprised of senior members of our businesses and representatives from corporate functions, including legal and finance, reviews the valuation process for investments held by us and our investment vehicles, including the application of appropriate valuation standards on a consistent basis. Each quarter, the valuation process is also reviewed by the audit committee of our board of directors, which is comprised of our non-employee directors. For a description of our accounting policy on taxes and additional information on taxes see Note 2. “Summary of Significant Accounting Policies” and Note 13.12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. Our provision for income taxes is composed of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.
Additionally, significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax balances (including valuation allowance), accrued interest or penalties and uncertain tax positions. In evaluating these judgments, we consider, among other items, projections of taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that Blackstone uses to manage its business. To the extent any portion of the deferred tax assets are not considered to be more likely than not to be realized, a valuation allowance is recorded. Revisions in estimates and/or actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any.
Recent Accounting Developments Information regarding recent accounting developments and their impact on Blackstone, if any, can be found in Note 2. “Summary of Significant Accounting Policies” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. Interbank Offered Rates Transition
Certain jurisdictions are currently reforming or phasing out their benchmark interest rates, most notably the London Interbank Offered Rates (“LIBOR”) across multiple currencies. Most such reforms and phase outs, including all tenors of U.S. dollar LIBOR, became effective on or prior to June 30, 2023, though some rates may persist on a synthetic basis through September 2024. Blackstone has taken steps to prepare for and mitigate the impact of changing base rates and continues to manage transition efforts and evaluate the impact of prospective changes on existing transactions and contractual arrangements. See “Part I. Item 1A. Risk Factors — Risks Related to Our Business — Interest rates on our and our portfolio companies’ outstanding financial instruments might be subject to change based on regulatory developments, which could adversely affect our revenue, expenses and the value of those financial instruments.” in our Annual Report on Form10-K
for the year ended December 31, 2022.Item 3. Quantitative and Qualitative Disclosures About Market Risk Our predominant exposure to market risk is related to our role as general partner or investment adviser to the Blackstone Funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees, performance revenues and investment income. There were no material changes in our market risks as of June 30, 2023March 31, 2024 as compared to March 31, 2023 and December 31, 2022.2023. For additional information, refer to our QuarterlyAnnual Report on Form 10-Q
for the quarter ended March 31, 2023 and our Annual Report onForm 10-K
for the year ended December 31, 2022.2023.Item 4. Controls and Procedures Evaluation of Disclosure Controls and Procedures We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired objectives. Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting No change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during our most recent quarter, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Part II. Other Information Item 1. Legal Proceedings We may from time to time be involved in litigation and claims incidental to the conduct of our business. Our businesses are also subject to extensive regulation, which may result in regulatory proceedings against us. See “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2022.2023. We are not currently subject to any pending legal (including judicial, regulatory, administrative or arbitration) proceedings that we expect to have a material impact on our condensed consolidated financial statements. However, given the inherent unpredictability of these types of proceedings and the potentially large and/or indeterminate amounts that could be sought, an adverse outcome in certain matters could have a material effect on Blackstone’s financial results in any particular period. See “Part I. Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 17.16. Commitments and Contingencies — Contingencies — Litigation.” For a discussion of our potential risks and uncertainties, see the information under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 20222023 and in our subsequently filed periodic reports as such factors may be updated from time to time, all of which are accessible on the Securities and Exchange Commission’s website at www.sec.gov. See “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Business Environment” in this report for a discussion of the conditions in the financial markets and economic conditions affecting our businesses. This discussion updates, and should be read together with, the risk factor entitled “Difficult market and geopolitical conditions can adversely affect our business in many ways, each of which could materially reduce our revenue, earnings and cash flow and adversely affect our financial prospects and condition.” in our Annual Report on Form 10-K for the year ended December 31, 2022.2023.The risks described in our Annual Report on Form 10-K and in our subsequently filed periodic reports are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Purchases of Equity Securities The following table sets forth information regarding repurchases of shares of our common stock during the three months ended June 30, 2023:March 31, 2024: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in Thousands) (a) | | | | — | | | $ | — | | | | — | | | $ | 1,017,935 | | | | | 550,000 | | | $ | 83.50 | | | | 550,000 | | | $ | 972,011 | | | | | 450,000 | | | $ | 89.13 | | | | 450,000 | | | $ | 931,901 | | | | | | | | | | | | | | | | | | | | | | 1,000,000 | | | | | | | | 1,000,000 | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in Thousands) (a) | | | | — | | | $ | — | | | | — | | | $ | 756,769 | | | | | 263,156 | | | $ | 126.05 | | | | 263,156 | | | $ | 723,597 | | | | | 436,844 | | | $ | 126.44 | | | | 436,844 | | | $ | 668,363 | | | | | | | | | | | | | | | | | | | | | | 700,000 | | | | | | | | 700,000 | | | | | | | | | | | | | | | | | | | | | | |
| (a) | 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. See “Part I. Item 1. Financial Statements –— Notes to Condensed Consolidated Financial Statements –— Note 14.13. Earnings Per Share and Stockholders’ Equity — Share Repurchase Program” and “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations –— Liquidity and Capital Resources –— Share Repurchase Program” for further information regarding this repurchase program. |
As permitted by our policies and procedures governing transactions in our securities by our directors, executive officers and other employees, from time to time some of these persons may establish plans or arrangements complying with Rule 10b5-1 under the Exchange Act, and similar plans and arrangements relating to our common stock and Blackstone Holdings Partnership Units. Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information On August 2, 2023, Blackstone Group Management L.L.C., by a written consent as the sole holder of our Series II preferred stock, elected Stephen A. Schwarzman, Jonathan D. Gray, Joseph P. Baratta, William G. Parrett, Kelly A. Ayotte, James W. Breyer, Reginald J. Brown, Sir John Antony Hood, Rochelle B. Lazarus, The Right Honorable Brian Mulroney and Ruth Porat as directors of Blackstone Inc. Each director was serving as a director of Blackstone Inc. at the time of election.
Annual Meeting of Stockholders
We will hold our 2023 annual meeting of stockholders (the “Annual Meeting”) at 9:00 a.m., Eastern Time, on September 19, 2023. The Annual Meeting will be held in a virtual meeting format only. Stockholders of record at the close of business on August 14, 2023 (the “Record Date”) can attend the meeting at https://event.webcasts.com/starthere.jsp?ei=1619587&tp_key=154f369d45. In order to access the Annual Meeting, please be prepared to confirm your ownership of common stock as of the Record Date. Please note that there will not be any matter for stockholders to vote on at the Annual Meeting, and, as such, no action is expected to be taken at the Annual Meeting. Please note that we are not planning on providing any update on our business during the Annual Meeting.
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, Blackstone hereby incorporates by reference herein Exhibit 99.1 of this report, which includes disclosures provided to us by Mundys S.p.A.
| | | | | | | | | | 10.1*+ | | | | | | 10.2*+ | | | | | | 31.1* | | | | | | 31.2* | | | | | | 32.1** | | | | | | 32.2** | | | | | | 99.1* | | | | | | 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. | | | 104.104* | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
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| + | Management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate. |
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrantregistrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 4, 2023May 3, 2024 | | | | Blackstone Inc. | | | | Name: | | Michael S. Chae | | Title: | | Chief Financial Officer | | | (Principal Financial Officer and | | | Authorized Signatory) |
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