Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'BX | ' | ' |
Entity Registrant Name | 'BLACKSTONE GROUP L.P. | ' | ' |
Entity Central Index Key | '0001393818 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 500,887,343 | ' |
Entity Public Float | ' | ' | $11,558,300,000 |
Consolidated_Statements_of_Fin
Consolidated Statements of Financial Condition (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and Cash Equivalents | $831,998 | $709,502 |
Cash Held by Blackstone Funds and Other | 1,045,882 | 1,404,411 |
Investments (including assets pledged of $316,564 and $141,931 at December 31, 2013 and December 31, 2012, respectively) | 21,729,523 | 20,847,270 |
Accounts Receivable | 888,356 | 638,164 |
Reverse Repurchase Agreements | 148,984 | 248,018 |
Due from Affiliates | 1,192,044 | 1,120,067 |
Intangible Assets, Net | 560,748 | 598,535 |
Goodwill | 1,787,392 | 1,703,602 |
Other Assets | 284,472 | 376,372 |
Deferred Tax Assets | 1,209,207 | 1,285,611 |
Total Assets | 29,678,606 | 28,931,552 |
Liabilities and Partners' Capital | ' | ' |
Loans Payable | 10,466,504 | 13,051,404 |
Due to Affiliates | 1,436,859 | 2,002,644 |
Accrued Compensation and Benefits | 2,132,939 | 1,254,978 |
Securities Sold, Not Yet Purchased | 76,195 | 226,425 |
Repurchase Agreements | 316,352 | 142,266 |
Accounts Payable, Accrued Expenses and Other Liabilities | 872,086 | 1,038,888 |
Total Liabilities | 15,300,935 | 17,716,605 |
Commitments and Contingencies | ' | ' |
Redeemable Non-Controlling Interests in Consolidated Entities | 1,950,442 | 1,556,185 |
Partners' Capital | ' | ' |
Partners' Capital (common units: 572,592,279 issued and outstanding as of December 31, 2013; 556,354,387 issued and outstanding as of December 31, 2012) | 6,002,592 | 4,955,649 |
Appropriated Partners' Capital | 300,708 | 509,028 |
Accumulated Other Comprehensive Income | 3,466 | 2,170 |
Non-Controlling Interests in Consolidated Entities | 2,464,047 | 1,443,559 |
Non-Controlling Interests in Blackstone Holdings | 3,656,416 | 2,748,356 |
Total Partners' Capital | 12,427,229 | 9,658,762 |
Total Liabilities and Partners' Capital | $29,678,606 | $28,931,552 |
Consolidated_Statements_of_Fin1
Consolidated Statements of Financial Condition (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investments assets pledged | $316,564 | $141,931 |
Partners' Capital, common units: issued | 572,592,279 | 556,354,387 |
Partners' Capital, common units: outstanding | 572,592,279 | 556,354,387 |
Assets | ' | ' |
Cash Held by Blackstone Funds and Other | 1,045,882 | 1,404,411 |
Investments | 21,729,523 | 20,847,270 |
Accounts Receivable | 888,356 | 638,164 |
Due from Affiliates | 1,192,044 | 1,120,067 |
Other Assets | 284,472 | 376,372 |
Total Assets | 29,678,606 | 28,931,552 |
Liabilities | ' | ' |
Loans Payable | 10,466,504 | 13,051,404 |
Due to Affiliates | 1,436,859 | 2,002,644 |
Accounts Payable, Accrued Expenses and Other | 872,086 | 1,038,888 |
Total Liabilities | 15,300,935 | 17,716,605 |
Blackstone Funds And Other | ' | ' |
Assets | ' | ' |
Cash Held by Blackstone Funds and Other | 618,881 | 1,163,915 |
Investments | 9,700,804 | 12,320,611 |
Accounts Receivable | 231,052 | 187,343 |
Due from Affiliates | 27,022 | 27,034 |
Other Assets | 29,755 | 35,447 |
Total Assets | 10,607,514 | 13,734,350 |
Liabilities | ' | ' |
Loans Payable | 8,802,155 | 11,375,877 |
Due to Affiliates | 143,444 | 253,546 |
Accounts Payable, Accrued Expenses and Other | 284,818 | 518,656 |
Total Liabilities | $9,230,417 | $12,148,079 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Management and Advisory Fees, Net | $2,193,985 | $2,030,693 | $1,811,750 |
Performance Fees | ' | ' | ' |
Performance Fees Realized - Carried Interest | 943,958 | 327,422 | 138,907 |
Performance Fees Realized - Incentive Fees | 464,838 | 301,801 | 90,099 |
Performance Fees Unrealized - Carried Interest | 2,158,010 | 994,190 | 971,518 |
Performance Fees Unrealized - Incentive Fees | -22,749 | -30,361 | -17,864 |
Total Performance Fees | 3,544,057 | 1,593,052 | 1,182,660 |
Investment Income | ' | ' | ' |
Realized | 188,644 | 93,963 | 87,542 |
Unrealized | 611,664 | 256,231 | 125,781 |
Total Investment Income | 800,308 | 350,194 | 213,323 |
Interest and Dividend Revenue | 64,511 | 40,354 | 37,427 |
Other | 10,307 | 5,148 | 7,416 |
Total Revenues | 6,613,168 | 4,019,441 | 3,252,576 |
Expenses | ' | ' | ' |
Compensation and Benefits Compensation | 1,844,485 | 2,091,698 | 2,421,712 |
Performance Fee Compensation | ' | ' | ' |
Performance Fee Compensation - Realized Carried Interest | 257,201 | 96,433 | 43,615 |
Performance Fee Compensation - Realized Incentive Fees | 200,915 | 140,042 | 55,912 |
Performance Fee Compensation - Unrealized Carried Interest | 966,717 | 321,599 | 237,945 |
Performance Fee Compensation - Unrealized Incentive Fees | -11,651 | -44,528 | -20,759 |
Total Compensation and Benefits | 3,257,667 | 2,605,244 | 2,738,425 |
General, Administrative and Other | 474,442 | 548,738 | 566,313 |
Interest Expense | 107,973 | 72,870 | 57,824 |
Fund Expenses | 26,658 | 33,829 | 25,507 |
Total Expenses | 3,866,740 | 3,260,681 | 3,388,069 |
Other Income | ' | ' | ' |
Reversal of Tax Receivable Agreement Liability | 20,469 | ' | 197,816 |
Net Gains from Fund Investment Activities | 381,664 | 256,145 | 14,935 |
Total Other Income | 402,133 | 256,145 | 212,751 |
Income Before Provision for Taxes | 3,148,561 | 1,014,905 | 77,258 |
Provision for Taxes | 255,642 | 185,023 | 345,711 |
Net Income (Loss) | 2,892,919 | 829,882 | -268,453 |
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 183,315 | 103,598 | -24,869 |
Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 198,557 | 99,959 | 7,953 |
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings | 1,339,845 | 407,727 | -83,234 |
Net Income (Loss) Attributable to The Blackstone Group L.P. | 1,171,202 | 218,598 | -168,303 |
Net Income (Loss) Per Common Unit | ' | ' | ' |
Common Units, Basic | $2 | $0.41 | ($0.35) |
Common Units, Diluted | $1.98 | $0.41 | ($0.35) |
Weighted-Average Common Units Outstanding | ' | ' | ' |
Common Units, Basic | 587,018,828 | 533,703,606 | 475,582,718 |
Common Units, Diluted | 590,546,640 | 538,669,070 | 475,582,718 |
Revenues Earned from Affiliates | ' | ' | ' |
Management and Advisory Fees, Net | $253,877 | $254,729 | $317,675 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Income (Loss) | $2,892,919 | $829,882 | ($268,453) |
Other Comprehensive Income, Net of Tax-Currency Translation Adjustment | 9,896 | 1,859 | 7,056 |
Comprehensive Income (Loss) | 2,902,815 | 831,741 | -261,397 |
Less: Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 183,315 | 103,598 | -24,869 |
Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities | 207,157 | 101,606 | 17,353 |
Comprehensive Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings | 1,339,845 | 407,727 | -83,234 |
Comprehensive Income (Loss) Attributable to The Blackstone Group L.P. | $1,172,498 | $218,810 | ($170,647) |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Partners' Capital (USD $) | Total | Partners' Capital | Appropriated Partners' Capital | Accumulated Other Comprehensive Income | NonControlling Interests in Consolidated Entities | NonControlling Interests in Blackstone Holdings | Total Partners' Capital | Redeemable NonControlling Interests in Consolidated Entities | Common Units |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Beginning Balance at Dec. 31, 2010 | ' | $3,888,211 | $470,583 | $4,302 | $812,354 | $2,418,517 | $7,593,967 | $659,390 | ' |
Beginning Balance, Units at Dec. 31, 2010 | ' | ' | ' | ' | ' | ' | ' | ' | 416,092,022 |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 8,105,566 |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 62,055,376 |
Issuance of New Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 3,177,943 |
Transition and Acquisition Adjustments Relating to Consolidation of CLO Entities | ' | ' | 97,660 | ' | 113 | ' | 97,773 | ' | ' |
Net Income (Loss) | -268,453 | -168,303 | ' | ' | 7,953 | -83,234 | -243,584 | -24,869 | ' |
Allocation of Losses of Consolidated CLO Entities | ' | ' | -190,780 | ' | 190,780 | ' | ' | ' | ' |
Currency Translation Adjustment | ' | ' | ' | -2,344 | 9,400 | ' | 7,056 | ' | ' |
Allocation of Currency Translation Adjustment of Consolidated CLO Entities | ' | ' | 9,400 | ' | -9,400 | ' | ' | ' | ' |
Capital Contributions | 8,705 | ' | ' | ' | 279,293 | ' | 279,293 | 909,425 | ' |
Capital Distributions | ' | -294,169 | ' | ' | -263,837 | -408,663 | -966,669 | -344,450 | ' |
Transfer of Non-Controlling Interests in Consolidated Entities | ' | ' | ' | ' | 2,614 | -2,614 | ' | ' | ' |
Purchase of Interests from Certain Non-Controlling Interest Holders | ' | -466 | ' | ' | ' | -1,652 | -2,118 | ' | ' |
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | ' | 58,391 | ' | ' | ' | ' | 58,391 | ' | ' |
Equity-Based Compensation | ' | 565,438 | ' | ' | ' | 761,464 | 1,326,902 | ' | ' |
Relinquished with Deconsolidation and Liquidation of Partnership | ' | ' | 1 | ' | ' | ' | 1 | -107,663 | ' |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Value | ' | -34,590 | ' | ' | ' | ' | -34,590 | ' | ' |
Repurchase of Common Units and Blackstone Holdings Partnership Units | ' | ' | ' | ' | ' | -469 | -469 | ' | ' |
Change in The Blackstone Group L.P.'s Ownership Interest | ' | -5,893 | ' | ' | ' | 5,893 | ' | ' | ' |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | ' | 228,722 | ' | ' | ' | -228,722 | ' | ' | ' |
Issuance of New Units, Value | ' | 44,500 | ' | ' | ' | ' | 44,500 | ' | ' |
Ending Balance at Dec. 31, 2011 | ' | 4,281,841 | 386,864 | 1,958 | 1,029,270 | 2,460,520 | 8,160,453 | 1,091,833 | ' |
Ending Balance, Units at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' | ' | ' | 489,430,907 |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 8,748,146 |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 58,175,334 |
Transition and Acquisition Adjustments Relating to Consolidation of CLO Entities | ' | ' | 233,386 | ' | 155 | ' | 233,541 | ' | ' |
Consolidation of Certain Funds | ' | ' | ' | ' | ' | ' | ' | 50,224 | ' |
Net Income (Loss) | 829,882 | 218,598 | ' | ' | 99,959 | 407,727 | 726,284 | 103,598 | ' |
Allocation of Losses of Consolidated CLO Entities | ' | ' | -112,869 | ' | 112,869 | ' | ' | ' | ' |
Currency Translation Adjustment | ' | ' | ' | 212 | 1,647 | ' | 1,859 | ' | ' |
Allocation of Currency Translation Adjustment of Consolidated CLO Entities | ' | ' | 1,647 | ' | -1,647 | ' | ' | ' | ' |
Capital Contributions | 2,017 | ' | ' | ' | 322,562 | 34 | 322,596 | 462,261 | ' |
Capital Distributions | ' | -271,890 | ' | ' | -116,672 | -342,640 | -731,202 | -151,713 | ' |
Transfer of Non-Controlling Interests in Consolidated Entities | ' | ' | ' | ' | -4,584 | -17,392 | -21,976 | ' | ' |
Purchase of Interests from Certain Non-Controlling Interest Holders | ' | -63 | ' | ' | ' | ' | -63 | ' | ' |
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | ' | 57,356 | ' | ' | ' | ' | 57,356 | ' | ' |
Equity-Based Compensation | ' | 437,444 | ' | ' | ' | 494,834 | 932,278 | ' | ' |
Relinquished with Deconsolidation and Liquidation of Partnership | ' | ' | ' | ' | ' | ' | ' | -18 | ' |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Value | ' | -21,453 | ' | ' | ' | -911 | -22,364 | ' | ' |
Change in The Blackstone Group L.P.'s Ownership Interest | ' | -2,423 | ' | ' | ' | 2,423 | ' | ' | ' |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | ' | 256,239 | ' | ' | ' | -256,239 | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | ' | 4,955,649 | 509,028 | 2,170 | 1,443,559 | 2,748,356 | 9,658,762 | 1,556,185 | ' |
Ending Balance, Units at Dec. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | 556,354,387 |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 6,464,259 |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 8,232,434 |
Issuance of New Units, Units | ' | ' | ' | ' | ' | ' | ' | ' | 1,541,199 |
Consolidation of Certain Funds | ' | ' | ' | ' | 659,001 | ' | 659,001 | ' | ' |
Net Income (Loss) | 2,892,919 | 1,171,202 | ' | ' | 198,557 | 1,339,845 | 2,709,604 | 183,315 | ' |
Allocation of Losses of Consolidated CLO Entities | ' | ' | -186,183 | ' | 186,183 | ' | ' | ' | ' |
Currency Translation Adjustment | ' | ' | ' | 1,296 | 8,600 | ' | 9,896 | ' | ' |
Allocation of Currency Translation Adjustment of Consolidated CLO Entities | ' | ' | 8,600 | ' | -8,600 | ' | ' | ' | ' |
Capital Contributions | 2,323 | ' | ' | ' | 285,757 | 262 | 286,019 | 894,792 | ' |
Capital Distributions | ' | -679,082 | ' | ' | -306,605 | -790,397 | -1,776,084 | -555,943 | ' |
Transfer of Non-Controlling Interests in Consolidated Entities | ' | ' | ' | ' | -2,403 | ' | -2,403 | ' | ' |
Purchase of Interests from Certain Non-Controlling Interest Holders | ' | -43 | ' | ' | ' | ' | -43 | ' | ' |
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | ' | 80,580 | ' | ' | ' | ' | 80,580 | ' | ' |
Equity-Based Compensation | ' | 411,516 | ' | ' | ' | 399,567 | 811,083 | ' | ' |
Relinquished with Deconsolidation and Liquidation of Partnership | ' | ' | -30,737 | ' | -2 | ' | -30,739 | -127,907 | ' |
Net Delivery of Vested Holdings Partnership Units and Blackstone Common Units, Value | ' | -20,366 | ' | ' | ' | -481 | -20,847 | ' | ' |
Change in The Blackstone Group L.P.'s Ownership Interest | ' | -2,519 | ' | ' | ' | 2,519 | ' | ' | ' |
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | ' | 43,255 | ' | ' | ' | -43,255 | ' | ' | ' |
Issuance of New Units, Value | ' | 42,400 | ' | ' | ' | ' | 42,400 | ' | ' |
Ending Balance at Dec. 31, 2013 | ' | $6,002,592 | $300,708 | $3,466 | $2,464,047 | $3,656,416 | $12,427,229 | $1,950,442 | ' |
Ending Balance, Units at Dec. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | 572,592,279 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net Income (Loss) | $2,892,919 | $829,882 | ($268,453) |
Blackstone Funds Related | ' | ' | ' |
Unrealized Depreciation (Appreciation) on Investments Allocable to Non-Controlling Interests in Consolidated Entities | -1,069,479 | -397,470 | 59,973 |
Net Realized Gains on Investments | -1,792,106 | -710,755 | -540,353 |
Changes in Unrealized Gains on Investments Allocable to The Blackstone Group L.P. | -506,546 | -181,481 | -116,183 |
Unrealized Depreciation (Appreciation) on Hedge Activities | ' | 22,599 | -1,283 |
Non-Cash Performance Fees | -1,143,903 | -699,711 | -714,830 |
Non-Cash Performance Fee Compensation | 1,413,182 | 513,546 | 316,713 |
Equity-Based Compensation Expense | 855,087 | 949,633 | 1,396,062 |
Excess Tax Benefits Related to Equity-Based Compensation | -5,769 | ' | ' |
Amortization of Intangibles | 95,671 | 139,174 | 207,591 |
Other Non-Cash Amounts Included in Net Income (Loss) | 206,451 | 353,052 | 164,359 |
Cash Flows Due to Changes in Operating Assets and Liabilities | ' | ' | ' |
Cash Held by Blackstone Funds and Other | 371,641 | -367,101 | 545,637 |
Cash Relinquished with Deconsolidation and Liquidation of Partnership | -173,726 | -48,284 | -110,607 |
Accounts Receivable | -46,580 | -60,520 | 116,714 |
Reverse Repurchase Agreements | 99,034 | -108,533 | 41,940 |
Due from Affiliates | 237,169 | -73,485 | -31,403 |
Other Assets | 15,445 | 51,031 | -19,233 |
Accrued Compensation and Benefits | -454,724 | -119,862 | -273,281 |
Securities Sold, Not Yet Purchased | -142,952 | 88,474 | 22,407 |
Accounts Payable, Accrued Expenses and Other Liabilities | -316,082 | -408,256 | -203,419 |
Repurchase Agreements | 174,629 | 40,417 | 39,177 |
Due to Affiliates | -216,671 | -88,425 | -3,439 |
Treasury Cash Management Strategies | ' | ' | ' |
Investments Purchased | -4,368,096 | -3,414,291 | -3,198,632 |
Cash Proceeds from Sale of Investments | 4,643,886 | 2,729,689 | 3,486,836 |
Blackstone Funds Related | ' | ' | ' |
Investments Purchased | -8,245,313 | -6,845,184 | -6,113,038 |
Cash Proceeds from Sale or Pay Down of Investments | 11,024,774 | 8,389,016 | 6,296,358 |
Net Cash Provided by Operating Activities | 3,547,941 | 583,155 | 1,099,613 |
Investing Activities | ' | ' | ' |
Purchase of Furniture, Equipment and Leasehold Improvements | -25,637 | -37,020 | -36,484 |
Net Cash Paid for Acquisitions, Net of Cash Acquired | -146,117 | -188,306 | -23,744 |
Changes in Restricted Cash | 5,850 | 2,345 | 330 |
Net Cash Used in Investing Activities | -165,904 | -222,981 | -59,898 |
Financing Activities | ' | ' | ' |
Distributions to Non-Controlling Interest Holders in Consolidated Entities | -844,011 | -261,582 | -608,287 |
Contributions from Non-Controlling Interest Holders in Consolidated Entities | 1,114,457 | 773,714 | 1,183,952 |
Purchase of Interests from Certain Non-Controlling Interest Holders | -43 | -63 | -466 |
Net Delivery of Vested Common Units and Repurchase of Common and Holdings Units | -24,140 | -22,364 | -36,711 |
Excess Tax Benefits Related to Equity-Based Compensation | 5,769 | ' | ' |
Proceeds from Loans Payable | 11,367 | 633,742 | 13,301 |
Repayment and Repurchase of Loans Payable | -16,777 | -33,168 | -27,424 |
Distributions to Unitholders | -1,469,479 | -614,530 | -702,832 |
Blackstone Funds Related | ' | ' | ' |
Proceeds from Loans Payable | 53,917 | 17,820 | 342,133 |
Repayment of Loans Payable | -2,090,674 | -898,980 | -1,037,181 |
Net Cash Used in Financing Activities | -3,259,614 | -405,411 | -873,515 |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 73 | -5 | -77 |
Net Increase (Decrease) in Cash and Cash Equivalents | 122,496 | -45,242 | 166,123 |
Cash and Cash Equivalents, Beginning of Period | 709,502 | 754,744 | 588,621 |
Cash and Cash Equivalents, End of Period | 831,998 | 709,502 | 754,744 |
Supplemental Disclosure of Cash Flows Information | ' | ' | ' |
Payments for Interest | 125,361 | 80,159 | 81,407 |
Payments for Income Taxes | 69,858 | 30,234 | 43,945 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ' | ' | ' |
Non-Cash Contributions from Non-Controlling Interest Holders | 63,273 | 6,803 | ' |
Non-Cash Distributions to Non-Controlling Interest Holders | -18,537 | -6,803 | ' |
Net Activities Related to Capital Transactions of Consolidated Blackstone Funds | -6,029 | -5,409 | -2,775 |
Net Assets Related to the Consolidation of CLO Vehicles | ' | 233,541 | 97,773 |
Net Assets Related to the Consolidation of Certain Fund Entities | 659,001 | 50,224 | ' |
In-kind Redemption of Capital | ' | -2,017 | -52,467 |
In-kind Contribution of Capital | 2,323 | 2,017 | 8,705 |
Notes Issuance Costs | ' | 4,788 | ' |
Transfer of Interests to Non-Controlling Interest Holders | -2,403 | -4,584 | 2,614 |
Change in The Blackstone Group L.P.'s Ownership Interest | -2,519 | -2,423 | -5,893 |
Net Settlement of Vested Common Units | 153,522 | 167,046 | 186,644 |
Conversion of Blackstone Holdings Units to Common Units | 43,255 | 256,239 | 228,722 |
Acquisition of Ownership Interests from Non-Controlling Interest Holders | ' | ' | ' |
Deferred Tax Asset | -113,757 | -204,320 | -300,471 |
Due to Affiliates | 33,177 | 146,964 | 242,080 |
Partners' Capital | 80,580 | 57,356 | 58,391 |
Issuance of New Units | $42,400 | ' | $44,500 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2013 | |
ORGANIZATION | ' |
1. ORGANIZATION | |
The Blackstone Group L.P., together with its subsidiaries (“Blackstone” or the “Partnership”), is a leading global manager of private capital and provider of financial advisory services. The alternative asset management business includes the management of private equity funds, real estate funds, real estate investment trusts (“REITs”), funds of hedge funds, credit-focused funds, collateralized loan obligation (“CLO”) vehicles, collateralized debt obligation (“CDO”) vehicles, separately managed accounts and registered investment companies (collectively referred to as the “Blackstone Funds”). Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory, capital markets and fund placement services. Blackstone’s business is organized into five segments: private equity, real estate, hedge fund solutions, credit and financial advisory. | |
The Partnership was formed as a Delaware limited partnership on March 12, 2007. The Partnership is managed and operated by its general partner, Blackstone Group Management L.L.C., which is in turn wholly owned and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”), and Blackstone’s other senior managing directors. The activities of the Partnership are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings”, “Blackstone Holdings Partnerships” or the “Holding Partnerships”). The Partnership, through its wholly owned subsidiaries, is the sole general partner in each of these Holding Partnerships. | |
Generally, holders of the limited partner interests in the four Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common units, on a one-to-one basis, exchanging one Partnership Unit in each of the four Holding Partnerships for one Blackstone common unit. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Basis of Presentation | ||||
The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | ||||
The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. | ||||
All intercompany balances and transactions have been eliminated in consolidation. | ||||
Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. | ||||
Use of Estimates | ||||
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable and that it has made all necessary adjustments (consisting of only normal recurring items) so that the consolidated financial statements are presented fairly. Actual results could differ from those estimates and such differences could be material. | ||||
Consolidation | ||||
The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner is presumed to have control. Although the Partnership has a non-controlling interest in the Blackstone Holdings Partnerships, the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the presumption of control by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling interests to reflect the economic interests of the limited partners of Blackstone Holdings. | ||||
In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. VIEs qualify for the deferral of the consolidation guidance if all of the following conditions have been met: | ||||
(a) | The entity has all of the attributes of an investment company as defined in the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies (“Investment Company Guide”), or does not have all the attributes of an investment company but it is an entity for which it is acceptable based on industry practice to apply measurement principles that are consistent with the Investment Company Guide, | |||
(b) | The reporting entity does not have explicit or implicit obligations to fund any losses of the entity that could potentially be significant to the entity, and | |||
(c) | The entity is not a securitization or asset-backed financing entity or an entity that was formerly considered a qualifying special purpose entity. | |||
Where the VIEs have qualified for the deferral of the current consolidation guidance, the analysis is based on previous consolidation guidance. This guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a variable interest entity and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would be expected to absorb a majority of the variability of the entity. Under both guidelines, the Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion continually. In evaluating whether the Partnership is the primary beneficiary, Blackstone evaluates its economic interests in the entity held either directly by the Partnership and its affiliates or indirectly through employees. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. | ||||
Assets of consolidated variable interest entities that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. | ||||
Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. | ||||
Business Combinations | ||||
The Partnership accounts for business combinations using the acquisition method of accounting. On the acquisition date, the Partnership recognizes identifiable assets acquired, liabilities assumed and any non-controlling interests in the acquiree at the acquisition date fair values. Transaction costs are expensed as incurred. | ||||
Revenue Recognition | ||||
Revenues primarily consist of management and advisory fees, performance fees, investment income, interest and dividend revenue and other. | ||||
Management and Advisory Fees, Net—Management and Advisory Fees, Net are comprised of management fees, including base management fees, transaction and other fees, advisory fees and management fee reductions and offsets. | ||||
The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital, or in some cases, a fixed fee. Base management fees are recognized based on contractual terms specified in the underlying investment advisory agreements. | ||||
Transaction and other fees (including monitoring fees) are fees charged directly to managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees directly paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. | ||||
Management fee offsets are reductions to management fees payable by our limited partners, which are granted based on the amount they reimburse Blackstone for placement fees. | ||||
Advisory fees consist of advisory retainer and transaction-based fee arrangements related to financial and strategic advisory services, restructuring and reorganization advisory services, capital markets services and fund placement services for alternative investment funds. Advisory retainer fees are recognized when services for the transactions are complete, in accordance with terms set forth in individual agreements. Transaction-based fees are recognized when (a) there is evidence of an arrangement with a client, (b) agreed upon services have been provided, (c) fees are fixed or determinable, and (d) collection is reasonably assured. Fund placement fees are recognized as earned upon the acceptance by a fund of capital or capital commitments. | ||||
Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Management fees paid by limited partners to the Blackstone Funds and passed on to Blackstone are not considered affiliate revenues. | ||||
Performance Fees—Performance Fees earned on the performance of Blackstone’s hedge fund structures (“Incentive Fees”) are recognized based on fund performance during the period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each hedge fund’s governing agreements. Accrued but unpaid Incentive Fees charged directly to investors in Blackstone’s offshore hedge funds as of the reporting date are recorded within Due from Affiliates in the Consolidated Statements of Financial Condition. Accrued but unpaid Incentive Fees on onshore funds as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition. Incentive Fees are realized at the end of a measurement period, typically annually. Once realized, such fees are not subject to clawback or reversal. | ||||
In certain fund structures, specifically in private equity, real estate and certain Hedge Fund Solutions and credit-focused funds (“Carry Funds”), performance fees (“Carried Interest”) are allocated to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the Carried Interest that would be due to the Partnership for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Carried Interest to reflect either (a) positive performance resulting in an increase in the Carried Interest allocated to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to Carried Interest allocated to the general partner. In each scenario, it is necessary to calculate the Carried Interest on cumulative results compared to the Carried Interest recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Carried Interest allocations once previously recognized Carried Interest allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Carried Interest over the life of a fund. Accrued but unpaid Carried Interest as of the reporting date is reflected in Investments in the Consolidated Statements of Financial Condition. | ||||
Carried Interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Carried Interest is subject to clawback to the extent that the Carried Interest received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Carried Interest, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling interest holders that would need to be repaid to the Blackstone Funds if the Blackstone Carry Funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. | ||||
Investment Income (Loss)—Investment Income (Loss) represents the unrealized and realized gains and losses on the Partnership’s principal investments, including its investments in Blackstone Funds that are not consolidated, its equity method investments, and other principal investments. Investment Income (Loss) is realized when the Partnership redeems all or a portion of its investment or when the Partnership receives cash income, such as dividends or distributions. Unrealized Investment Income (Loss) results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized. | ||||
Interest and Dividend Revenue—Interest and Dividend Revenue comprises primarily interest and dividend income earned on principal investments held by Blackstone. | ||||
Other Revenue—Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars. | ||||
Fair Value of Financial Instruments | ||||
GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. | ||||
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: | ||||
• | Level I—Quoted prices are available in active markets for identical financial instruments as of the reporting date. The type of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. | |||
• | Level II—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, government and agency securities, less liquid and restricted equity securities, certain over-the-counter derivatives where the fair value is based on observable inputs, and certain funds of hedge funds and proprietary investments in which Blackstone has the ability to redeem its investment at net asset value at, or within three months of, the reporting date. | |||
• | Level III—Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment grade residual interests in securitizations, certain corporate bonds and loans held within CLO vehicles, certain over-the-counter derivatives where the fair value is based on unobservable inputs and certain funds of hedge funds that use net asset value per share to determine fair value in which Blackstone may not have the ability to redeem its investment at net asset value at, or within three months of, the reporting date. Blackstone may not have the ability to redeem its investment at net asset value at, or within three months of, the reporting date if an investee fund manager has the ability to limit the amount of redemptions, and/or the ability to side pocket investments, irrespective of whether such ability has been exercised. Senior and subordinate notes issued by CLO vehicles are classified within Level III of the fair value hierarchy. | |||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. | ||||
Transfers between levels of the fair value hierarchy are recognized at the beginning of the reporting period. | ||||
Level II Valuation Techniques | ||||
Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including corporate loans and bonds held by Blackstone’s consolidated CLO vehicles, those held within Blackstone’s Treasury Cash Management Strategies and debt securities sold, not yet purchased and interests in investment funds. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. | ||||
The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: | ||||
• | Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. | |||
• | Investment Funds held by the consolidated Blackstone Funds are valued using net asset value per share as described in Level III Valuation Techniques—Funds of Hedge Funds. Certain investments in investment funds are classified within Level II of the fair value hierarchy as the investment can be redeemed at, or within three months of, the reporting date. | |||
• | Freestanding Derivatives and Derivative Instruments Designated as Fair Value Hedges are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. | |||
Level III Valuation Techniques | ||||
In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies, real estate properties, certain funds of hedge funds and credit-focused investments. | ||||
Private Equity Investments—The fair values of private equity investments are determined by reference to projected net earnings, earnings before interest, taxes, depreciation and amortization (“EBITDA”), the discounted cash flow method, public market or private transactions, valuations for comparable companies and other measures which, in many cases, are unaudited at the time received. Valuations may be derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company such as EBITDA by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. | ||||
Real Estate Investments—The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable assets, if any, and replacement costs among other measures. The methods used to estimate the fair value of real estate investments include the discounted cash flow method and/or capitalization rates (“cap rates”) analysis. Valuations may be derived by reference to observable valuation measures for comparable companies or assets (for example, multiplying a key performance metric of the investee company or asset, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to an exit EBITDA multiple or capitalization rate. Additionally, where applicable, projected distributable cash flow through debt maturity will be considered in support of the investment’s fair value. | ||||
Funds of Hedge Funds—The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. | ||||
Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, the institution of gates on redemptions or the suspension of redemptions or an ability to side pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be redeemable at, or within three months of, the reporting date. A side pocket is used by hedge funds and funds of hedge funds to separate investments that may lack a readily ascertainable value, are illiquid or are subject to liquidity restriction. Redemptions are generally not permitted until the investments within a side pocket are liquidated or it is deemed that the conditions existing at the time that required the investment to be included in the side pocket no longer exist. As the timing of either of these events is uncertain, the timing at which the Partnership may redeem an investment held in a side pocket cannot be estimated. Investments for which fair value is measured using NAV per share are reflected within the fair value hierarchy based on the existence of redemption restrictions, if any, as described above. Further disclosure on instruments for which fair value is measured using NAV per share is presented in Note 5. “Net Asset Value as Fair Value”. | ||||
Credit-Focused Investments—The fair values of credit-focused investments are generally determined on the basis of prices between market participants provided by reputable dealers or pricing services. In some instances, Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. | ||||
Credit-Focused Liabilities—Credit-focused liabilities comprise senior and subordinate loans issued by Blackstone’s consolidated CLO vehicles. Such liabilities are valued using a discounted cash flow method. | ||||
Level III Valuation Process | ||||
Investments classified within Level III of the fair value hierarchy are valued on a quarterly basis, taking into consideration any changes in Blackstone’s weighted-average cost of capital assumptions, discounted cash flow projections and exit multiple assumptions, as well as any changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by an independent valuation party, at least annually for all investments, and quarterly for certain investments, to corroborate the values determined by management. The valuations of Blackstone’s investments are reviewed quarterly by a valuation committee which is chaired by Blackstone’s Vice Chairman and includes senior heads of each of Blackstone’s businesses, as well as representatives of legal and finance. Each quarter, the valuations of Blackstone’s investments are also reviewed by the Audit Committee in a meeting attended by the chairman of the valuation committee. The valuations are further tested by comparison to actual sales prices obtained on disposition of the investments. | ||||
Investments, at Fair Value | ||||
The Blackstone Funds are accounted for as investment companies under the Investment Company Guide, and reflect their investments, including majority-owned and controlled investments (the “Portfolio Companies”), at fair value. Blackstone has retained the specialized accounting for the consolidated Blackstone Funds. Thus, such consolidated funds’ investments are reflected in Investments on the Consolidated Statements of Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the exit price). | ||||
Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). | ||||
For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. Accounting for these financial instruments at fair value is consistent with how the Partnership accounts for its other principal investments. Loans extended to third parties are recorded within Accounts Receivable within the Consolidated Statements of Financial Condition. Debt securities for which the fair value option has been elected are recorded within Investments. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. | ||||
In addition, the Partnership has elected the fair value option for the assets and liabilities of CLO vehicles that are consolidated as of January 1, 2010, as a result of the initial adoption of variable interest entity consolidation guidance. The Partnership has also elected the fair value option for CLO vehicles consolidated as a result of the acquisitions of CLO management contracts or the acquisition of the share capital of CLO managers. The adjustment resulting from the difference between the fair value of assets and liabilities for each of these events is presented as a transition and acquisition adjustment to Appropriated Partners’ Capital. The recognition of the initial difference between the fair value of assets and liabilities of CLO vehicles consolidated as a result of the acquisition of management contracts or CLO managers subsequent to the initial adoption of revised accounting guidance effective January 1, 2010, as an adjustment to Appropriated Partners’ Capital, is currently under review by the Emerging Issues Task Force (“EITF”). Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and Liabilities within Loans Payable for the amounts due to unaffiliated third parties and Due to Affiliates for the amounts held by non-consolidated affiliates. The methodology for measuring the fair value of such assets and liabilities is consistent with the methodology applied to private equity, real estate and credit-focused investments. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income subsequent to adoption and acquisition are presented within Net Gains (Losses) from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses. Amounts attributable to Non-Controlling Interests in Consolidated Entities have a corresponding adjustment to Appropriated Partners’ Capital. | ||||
The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. | ||||
Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option” to the Consolidated Financial Statements. | ||||
Security and loan transactions are recorded on a trade date basis. | ||||
Equity Method Investments | ||||
Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. As the underlying investments of the Partnership’s equity method investments in Blackstone Funds are reported at fair value, the carrying value of the Partnership’s equity method investments approximates fair value. | ||||
Cash and Cash Equivalents | ||||
Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. | ||||
Cash Held By Blackstone Funds and Other | ||||
Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. | ||||
Accounts Receivable | ||||
Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectibility. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. | ||||
Intangibles and Goodwill | ||||
Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Carried Interest. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 3 to 20 years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the accompanying Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||||
Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO, the acquisition of GSO in 2008 and the acquisition of Strategic Partners in 2013. Goodwill is reviewed for impairment at least annually, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value, a two-step quantitative assessment is performed to (a) calculate the fair value of the operating segment and compare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss. | ||||
Furniture, Equipment and Leasehold Improvements | ||||
Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||||
Foreign Currency | ||||
In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are recorded in Other Comprehensive Income and allocated to Non-Controlling Interests in Consolidated Entities, as applicable. | ||||
Comprehensive Income | ||||
Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. | ||||
Non-Controlling Interests in Consolidated Entities | ||||
Non-Controlling Interests in Consolidated Entities represent the component of Partners’ Capital in consolidated Blackstone Funds held by third party investors and employees. The percentage interests held by third parties and employees is adjusted for general partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period. In addition, all non-controlling interests in consolidated Blackstone Funds are attributed a share of income (loss) arising from the respective funds and a share of other comprehensive income, if applicable. Income (Loss) is allocated to non-controlling interests in consolidated entities based on the relative ownership interests of third party investors and employees after considering any contractual arrangements that govern the allocation of income (loss) such as fees allocable to The Blackstone Group L.P. | ||||
Redeemable Non-Controlling Interests in Consolidated Entities | ||||
Non-controlling interests related to funds of hedge funds and certain other credit-focused funds are subject to annual, semi-annual or quarterly redemption by investors in these funds following the expiration of a specified period of time (typically between one and three years), or may be withdrawn subject to a redemption fee in the funds of hedge funds and certain credit-focused funds during the period when capital may not be withdrawn. As limited partners in these types of funds have been granted redemption rights, amounts relating to third party interests in such consolidated funds are presented as Redeemable Non-Controlling Interests in Consolidated Entities within the Consolidated Statements of Financial Condition. When redeemable amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. For all consolidated funds in which redemption rights have not been granted, non-controlling interests are presented within Partners’ Capital in the Consolidated Statements of Financial Condition as Non-Controlling Interests in Consolidated Entities. | ||||
Non-Controlling Interests in Blackstone Holdings | ||||
Non-Controlling Interests in Blackstone Holdings represent the component of Partners’ Capital in the consolidated Blackstone Holdings Partnerships held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. | ||||
Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling Interests in Blackstone Holdings. This residual attribution is based on the year to date average percentage of Holdings Partnership Units held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. | ||||
Compensation and Benefits | ||||
Compensation and Benefits—Compensation—Compensation and Benefits consists of (a) employee compensation, comprising salary and bonus, and benefits paid and payable to employees and senior managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors. Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date, taking into consideration expected forfeitures, and expensed over the vesting period on a straight-line basis. Equity-based awards that do not require future service are expensed immediately. Cash settled equity-based awards are classified as liabilities and are remeasured at the end of each reporting period. | ||||
Compensation and Benefits—Performance Fee—Performance Fee Compensation consists of Carried Interest and Incentive Fee allocations, and may in future periods also include allocations of investment income from Blackstone’s firm investments, to employees and senior managing directors participating in certain profit sharing initiatives. Such compensation expense is subject to both positive and negative adjustments. Unlike Carried Interest and Incentive Fees, compensation expense is based on the performance of individual investments held by a fund rather than on a fund by fund basis. Compensation received from advisory clients in the form of securities of such clients may also be allocated to employees and senior managing directors. | ||||
Other Income | ||||
Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. | ||||
Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. | ||||
In 2013 and 2011, Other Income included the amount attributable to the Reversal of the Tax Receivable Agreement Liability. This is income attributable to a change in tax rate as discussed in Note 14. “Income Taxes”. | ||||
Income Taxes | ||||
The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. jurisdictions. Accordingly, these entities in some cases are subject to New York City unincorporated business taxes or non-U.S. income taxes. In addition, certain of the wholly owned subsidiaries of the Partnership and the Blackstone Holdings Partnerships will be subject to federal, state and local corporate income taxes at the entity level and the related tax provision attributable to the Partnership’s share of this income tax is reflected in the Consolidated Financial Statements. | ||||
Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Position. | ||||
Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. | ||||
Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records uncertain tax positions on the basis of a two-step process: (a) determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (b) those tax positions that meet the more-likely-than-not threshold are recognized as the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Blackstone recognizes accrued interest and penalties related to uncertain tax positions in General, Administrative and Other expenses within the Consolidated Statements of Operations. | ||||
Net Income (Loss) Per Common Unit | ||||
Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units and unvested participating common units outstanding for the period. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. | ||||
Repurchase and Reverse Repurchase Agreements | ||||
Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt, represent collateralized financing transactions. Such transactions are recorded in the Consolidated Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of repurchase and reverse repurchase agreements approximates fair value. | ||||
The Partnership manages credit exposure arising from repurchase agreements and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. | ||||
The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. | ||||
Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. | ||||
Securities Sold, Not Yet Purchased | ||||
Securities Sold, Not Yet Purchased consist of equity and debt securities that the Partnership has borrowed and sold. The Partnership is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. The Partnership is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. | ||||
Securities Sold, Not Yet Purchased are recorded at fair value in the Consolidated Statements of Financial Condition. | ||||
Derivative Instruments | ||||
The Partnership recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date the Partnership enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). For a fair value hedge, Blackstone records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in current period earnings in General, Administrative and Other in the Consolidated Statements of Operations. Changes in the fair value of derivatives designated as hedging instruments caused by factors other than changes in the risk being hedged, which are excluded from the assessment of hedge effectiveness, are recognized in current period earnings. | ||||
The Partnership formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and the Partnership’s evaluation of effectiveness of its hedged transaction. At least monthly, the Partnership also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The Partnership may also at any time remove a designation of a fair value hedge. The fair value of the derivative instrument is reflected within Other Assets in the Consolidated Statements of Financial Condition. | ||||
For freestanding derivative contracts, the Partnership presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are held by the Partnership, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets are recorded within Investments and freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. | ||||
The Partnership has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides the Partnership, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. | ||||
Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. | ||||
Blackstone’s disclosures regarding offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. | ||||
Affiliates | ||||
Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. | ||||
Distributions | ||||
Distributions are reflected in the consolidated financial statements when declared. | ||||
Recent Accounting Developments | ||||
In April 2011, the Financial Accounting Standards Board (“FASB”) amended existing guidance for agreements to transfer financial assets that both entitle and obligate the transferor to repurchase or redeem the financial assets before their maturity. The amendments removed from the assessment of effective control (a) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee and (b) the collateral maintenance implementation guidance related to that criterion. The guidance was effective for the first interim or annual period beginning on or after December 15, 2011. Blackstone enters into repurchase agreements that are currently accounted for as collateralized financing transactions. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In May 2011, the FASB issued amended guidance on fair value measurements to achieve common fair value measurement and disclosure requirements under GAAP and International Financial Reporting Standards. The amended guidance specified that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. The amendments included requirements specific to measuring the fair value of those instruments, such as equity interests used as consideration in a business combination. An entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds the instrument as an asset. With respect to financial instruments that are managed as part of a portfolio, an exception to fair value requirements was provided. That exception permits a reporting entity to measure the fair value of such financial assets and financial liabilities at the price that would be received to sell a net asset position for a particular risk or to transfer a net liability position for a particular risk in an orderly transaction between market participants at the measurement date. The amendments also clarified that premiums and discounts should only be applied if market participants would do so when pricing the asset or liability. Premiums and discounts related to the size of an entity’s holding (for example, a blockage factor) rather than as a characteristic of the asset or liability (for example, a control premium) are not permitted in a fair value measurement. | ||||
The guidance also required enhanced disclosures about fair value measurements, including, among other things, (a) for fair value measurements categorized within Level III of the fair value hierarchy, (1) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (2) the valuation process used by the reporting entity, and (3) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, and (b) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed (for example, a financial instrument that is measured at amortized cost in the statement of financial position but for which fair value is disclosed). The guidance also amended disclosure requirements for significant transfers between Level I and Level II and now requires disclosure of all transfers between Levels I and II in the fair value hierarchy. | ||||
The amended guidance was effective for interim and annual periods beginning after December 15, 2011. As the impact of the guidance is primarily limited to enhanced disclosures, adoption did not have a material impact on the Partnership’s financial statements. | ||||
In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The amendments provided an entity with an option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity was required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. In addition, an entity was required to present on the face of the financial statements reclassification adjustments for items that were reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income were presented. The guidance was effective for fiscal years, and interim periods within those years beginning after December 15, 2011 and was to be applied on a retrospective basis. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In December 2011, the FASB issued a deferral of the effective date for certain disclosures relating to comprehensive income, specifically with respect to the presentation of reclassifications of items out of accumulated other comprehensive income. The deferral was effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. | ||||
In February 2013, the FASB issued guidance on the reporting of amounts reclassified out of accumulated other comprehensive income. The guidance did not change the requirement for reporting net income or other comprehensive income in financial statements. However, the amendments required an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. | ||||
The guidance was effective prospectively for periods beginning after December 15, 2012. Adoption had no impact on the Partnership’s financial statements. | ||||
In September 2011, the FASB issued enhanced guidance on testing goodwill for impairment. The amended guidance provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. Under the amended guidance, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. The amended guidance includes examples of events or circumstances that an entity must consider in evaluating whether it is more likely than not that the fair value of reporting units is less than its carrying amount. The amended guidance no longer permits the carry forward of detailed calculations of a reporting unit’s fair value from a prior year. The guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Blackstone adopted the guidance on October 1, 2012, the date of annual impairment testing. The amended guidance did not have a material impact on the Partnership’s financial statements. | ||||
In December 2011, the FASB issued guidance to enhance disclosures about financial instruments and derivative instruments that are either (a) offset or (b) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset. Under the amended guidance, an entity is required to disclose quantitative information relating to recognized assets and liabilities that are offset or subject to an enforceable master netting arrangement or similar agreement, including (a) the gross amounts of those recognized assets and liabilities, (b) the amounts offset to determine the net amount presented in the statement of financial position, and (c) the net amount presented in the statement of financial position. With respect to amounts subject to an enforceable master netting arrangement or similar agreement which are not offset, disclosure is required of (a) the amounts related to recognized financial instruments and other derivative instruments, (b) the amount related to financial collateral (including cash collateral), and (c) the overall net amount after considering amounts that have not been offset. The guidance was effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods and retrospective application is required. As the amendments were limited to disclosure only, adoption did not have a material impact on the Partnership’s financial statements. | ||||
In January 2013, the FASB issued guidance to clarify the scope of disclosures about offsetting assets and liabilities. The amendments clarified that the scope of guidance issued in December 2011 to enhance disclosures around financial instruments and derivative instruments that are either (a) offset, or (b) subject to a master netting agreement or similar agreement, irrespective of whether they are offset, applies to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments were effective for interim and annual periods beginning on or after January 1, 2013. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In February 2013, the FASB issued guidance on the measurement of joint and several liability arrangements in which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure obligations from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In March 2013, the FASB issued guidance on a parent entity’s accounting for cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a parent entity ceases to have a controlling financial interest in a subsidiary or a group of assets that is a business within a foreign entity, any related portion of the total cumulative translation adjustment should be released into net income if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, partial sale guidance applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. For an equity method investment that is not a foreign entity, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the guidance clarifies that the sale of an investment in a foreign entity includes both (a) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (b) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The guidance shall be applied on a prospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2013. The guidance should be applied to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In April 2013, the FASB issued guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting. The guidance requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Financial statements prepared using the liquidation basis of accounting shall measure and present assets at the amount of the expected cash proceeds from liquidation. The presentation of assets shall include any items that had not previously been recognized under GAAP but that it expects to either sell in liquidation or use in settling liabilities. Liabilities shall be recognized and measured in accordance with GAAP that otherwise applies to those liabilities. The guidance requires an entity to accrue and separately present the costs that it expects to incur and the income that it expects to earn during the expected duration of the liquidation, including any costs associated with sale or settlement of those assets and liabilities. The guidance requires disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The guidance is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013 and interim periods therein. The guidance should be applied prospectively. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In June 2013, the FASB issued guidance to clarify the characteristics of an investment company and to provide guidance for assessing whether an entity is an investment company. Consistent with existing guidance for investment companies, all investments are to be measured at fair value including non-controlling ownership interests in other investment companies. There are no changes to the current requirements relating to the retention of specialized accounting in the consolidated financial statements of a non-investment company parent. The guidance is effective for interim and annual periods beginning after December 15, 2013 and early application is prohibited. Adoption is not expected to have a material impact on the Partnership’s financial statements. |
ACQUISITIONS_GOODWILL_AND_INTA
ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS | ' | ||||||||||||
3. ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS | |||||||||||||
Acquisition of Strategic Partners Fund Solutions | |||||||||||||
On August 5, 2013, Blackstone completed its acquisition of Strategic Partners Fund Solutions, a secondary private fund of funds business, which resulted in an increase in Goodwill of $83.8 million and an increase in Intangible Assets, primarily comprising contractual rights to earn future fee income, of $57.9 million. Goodwill arising from the acquisition has been allocated to the Private Equity segment. | |||||||||||||
Acquisition of Harbourmaster | |||||||||||||
On January 5, 2012, Blackstone completed the acquisition of all of the outstanding share capital of Harbourmaster Capital (Holdings) Limited (“Harbourmaster”), an Island of Jersey entity, in accordance with the sale and purchase agreement entered into on October 6, 2011. The fair value of consideration transferred, comprised entirely of cash, was €181.4 million ($232.0 million). Harbourmaster is a European secured bank loan manager based in Dublin, Ireland. Harbourmaster manages various credit products including CLO vehicles. | |||||||||||||
The following is a summary of the estimated fair values of assets acquired and liabilities assumed for the Harbourmaster acquisition: | |||||||||||||
Purchase Price—Cash | $ | 232,044 | |||||||||||
Fair Value of Assets Acquired and Liabilities Assumed | |||||||||||||
Assets | |||||||||||||
Cash | $ | 75,072 | |||||||||||
Investments in CLOs | 9,305 | ||||||||||||
Accounts Receivable | 9,329 | ||||||||||||
Other Assets | 17,651 | ||||||||||||
Intangible Assets | 142,221 | ||||||||||||
253,578 | |||||||||||||
Liabilities Assumed | |||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 21,534 | ||||||||||||
Net Assets Acquired | $ | 232,044 | |||||||||||
Harbourmaster’s results from the date of acquisition have been included in the Credit segment. | |||||||||||||
The Partnership incurred $2.1 million of acquisition-related costs which were expensed as incurred and are reflected within General, Administrative and Other in the Consolidated Statements of Operations. | |||||||||||||
Goodwill and Intangible Assets | |||||||||||||
Goodwill has been allocated to each of the Partnership’s five segments as follows: Private Equity ($778.3 million), Real Estate ($421.7 million), Hedge Fund Solutions ($172.1 million), Credit ($346.4 million) and Financial Advisory ($68.9 million). | |||||||||||||
The carrying value of goodwill was $1.8 billion as of December 31, 2013 and $1.7 billion as of December 31, 2012. As of December 31, 2013 and 2012, the Partnership evaluated that it was not more likely than not that the fair value of its operating segments was less than their respective carrying values. | |||||||||||||
Intangible Assets, Net consists of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Finite-Lived Intangible Assets / Contractual Rights | $ | 1,594,128 | $ | 1,536,244 | |||||||||
Accumulated Amortization | (1,033,380 | ) | (937,709 | ) | |||||||||
Intangible Assets, Net | $ | 560,748 | $ | 598,535 | |||||||||
Changes in the Partnership’s Intangible Assets, Net consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, Beginning of Year | $ | 598,535 | $ | 595,488 | $ | 779,311 | |||||||
Amortization Expense | (95,671 | ) | (139,174 | ) | (207,591 | ) | |||||||
Acquisitions | 57,884 | 142,221 | 23,768 | ||||||||||
Balance, End of Year | $ | 560,748 | $ | 598,535 | $ | 595,488 | |||||||
Amortization of Intangible Assets held at December 31, 2013 is expected to be $102.3 million, $95.8 million, $85.6 million, $46.5 million, and $46.5 million for each of the years ending December 31, 2014, 2015, 2016, 2017 and 2018, respectively. Blackstone’s intangible assets as of December 31, 2013 are expected to amortize over a weighted-average period of 7.4 years. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||||||||||
4. INVESTMENTS | |||||||||||||||||||||||||
Investments consist of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | $ | 12,521,248 | $ | 14,026,745 | |||||||||||||||||||||
Equity Method Investments | 3,309,879 | 2,582,504 | |||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 1,104,800 | 1,411,680 | |||||||||||||||||||||||
Performance Fees | 4,674,792 | 2,780,217 | |||||||||||||||||||||||
Other Investments | 118,804 | 46,124 | |||||||||||||||||||||||
$ | 21,729,523 | $ | 20,847,270 | ||||||||||||||||||||||
Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $487.8 million and $500.5 million at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income—Net Gains from Fund Investment Activities in the Consolidated Statements of Operations: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains (Losses) | $ | 205,741 | $ | (3,502 | ) | $ | 226,427 | ||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (26,800 | ) | 58,602 | (308,364 | ) | ||||||||||||||||||||
Realized and Net Change in Unrealized Gains (Losses) from Blackstone Funds | 178,941 | 55,100 | (81,937 | ) | |||||||||||||||||||||
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 202,723 | 201,045 | 96,872 | ||||||||||||||||||||||
Other Income—Net Gains from Fund Investment Activities | $ | 381,664 | $ | 256,145 | $ | 14,935 | |||||||||||||||||||
Equity Method Investments | |||||||||||||||||||||||||
Blackstone’s equity method investments include its investments in private equity funds, real estate funds, funds of hedge funds and credit-focused funds and other proprietary investments, which are not consolidated but in which the Partnership exerts significant influence. | |||||||||||||||||||||||||
Blackstone evaluates each of its equity method investments to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission. As of and for the years ended December 31, 2013, 2012 and 2011, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present separate financial statements for any of its equity method investments. | |||||||||||||||||||||||||
Blackstone holds a 40% non-controlling equity interest in Pátria Investments Limited and Pátria Investimentos Ltda. (collectively, “Pátria”) and accounts for this interest using the equity method of accounting. | |||||||||||||||||||||||||
The Partnership recognized net gains related to its equity method investments of $591.9 million, $199.7 million and $135.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The summarized financial information of the Partnership’s equity method investments for December 31, 2013 are as follows: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real | Hedge | Credit | Other (a) | Total | ||||||||||||||||||||
Equity | Estate | Fund | |||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | $ | 35,516,755 | $ | 57,053,881 | $ | 11,529,163 | $ | 12,150,918 | $ | 26,839 | $ | 116,277,556 | |||||||||||||
Other Assets | 389,265 | 3,441,977 | 1,114,404 | 2,678,742 | 128,826 | 7,753,214 | |||||||||||||||||||
Total Assets | $ | 35,906,020 | $ | 60,495,858 | $ | 12,643,567 | $ | 14,829,660 | $ | 155,665 | $ | 124,030,770 | |||||||||||||
Liabilities and Partners’ Capital | |||||||||||||||||||||||||
Debt | $ | 1,691,018 | $ | 3,013,762 | $ | 63,830 | $ | 1,165,405 | $ | 967 | $ | 5,934,982 | |||||||||||||
Other Liabilities | 54,909 | 886,445 | 689,964 | 1,131,557 | 14,222 | 2,777,097 | |||||||||||||||||||
Total Liabilities | 1,745,927 | 3,900,207 | 753,794 | 2,296,962 | 15,189 | 8,712,079 | |||||||||||||||||||
Partners’ Capital | 34,160,093 | 56,595,651 | 11,889,773 | 12,532,698 | 140,476 | 115,318,691 | |||||||||||||||||||
Total Liabilities and Partners’ Capital | $ | 35,906,020 | $ | 60,495,858 | $ | 12,643,567 | $ | 14,829,660 | $ | 155,665 | $ | 124,030,770 | |||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Interest Income | $ | 294,171 | $ | 140,879 | $ | 224 | $ | 630,902 | $ | 4 | $ | 1,066,180 | |||||||||||||
Other Income | 10,580 | 752,184 | 89,632 | 30,937 | 101,214 | 984,547 | |||||||||||||||||||
Interest Expense | (37,846 | ) | (51,544 | ) | (310 | ) | (68,973 | ) | — | (158,673 | ) | ||||||||||||||
Other Expenses | (88,957 | ) | (108,580 | ) | (71,326 | ) | (105,706 | ) | (65,197 | ) | (439,766 | ) | |||||||||||||
Net Realized and Unrealized Gain from Investments | 9,002,197 | 13,225,141 | 1,127,173 | 1,979,078 | 2,944 | 25,336,533 | |||||||||||||||||||
Net Income | $ | 9,180,145 | $ | 13,958,080 | $ | 1,145,393 | $ | 2,466,238 | $ | 38,965 | $ | 26,788,821 | |||||||||||||
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. | ||||||||||||||||||||||||
The summarized financial information of the Partnership’s equity method investments for December 31, 2012 are as follows: | |||||||||||||||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real | Hedge | Credit | Other (a) | Total | ||||||||||||||||||||
Equity | Estate | Fund | |||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | $ | 31,308,915 | $ | 40,230,098 | $ | 8,193,041 | $ | 11,066,214 | $ | 22,345 | $ | 90,820,613 | |||||||||||||
Other Assets | 1,289,961 | 1,714,990 | 1,173,627 | 2,516,388 | 46,178 | 6,741,144 | |||||||||||||||||||
Total Assets | $ | 32,598,876 | $ | 41,945,088 | $ | 9,366,668 | $ | 13,582,602 | $ | 68,523 | $ | 97,561,757 | |||||||||||||
Liabilities and Partners’ Capital | |||||||||||||||||||||||||
Debt | $ | 1,478,929 | $ | 1,336,305 | $ | 65,103 | $ | 1,043,595 | $ | 972 | $ | 3,924,904 | |||||||||||||
Other Liabilities | 91,519 | 703,412 | 642,925 | 1,401,910 | 20,192 | 2,859,958 | |||||||||||||||||||
Total Liabilities | 1,570,448 | 2,039,717 | 708,028 | 2,445,505 | 21,164 | 6,784,862 | |||||||||||||||||||
Partners’ Capital | 31,028,428 | 39,905,371 | 8,658,640 | 11,137,097 | 47,359 | 90,776,895 | |||||||||||||||||||
Total Liabilities and Partners’ Capital | $ | 32,598,876 | $ | 41,945,088 | $ | 9,366,668 | $ | 13,582,602 | $ | 68,523 | $ | 97,561,757 | |||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Interest Income | $ | 350,153 | $ | 128,624 | $ | 194 | $ | 712,490 | $ | — | $ | 1,191,461 | |||||||||||||
Other Income | 13,255 | 294,105 | 36,797 | 7,283 | 76,809 | 428,249 | |||||||||||||||||||
Interest Expense | (23,060 | ) | (39,103 | ) | (1,024 | ) | (60,082 | ) | — | (123,269 | ) | ||||||||||||||
Other Expenses | (48,926 | ) | (64,569 | ) | (60,114 | ) | (101,451 | ) | (48,744 | ) | (323,804 | ) | |||||||||||||
Net Realized and Unrealized Gain from Investments | 3,916,697 | 4,979,027 | 798,892 | 1,362,351 | 1,014 | 11,057,981 | |||||||||||||||||||
Net Income | $ | 4,208,119 | $ | 5,298,084 | $ | 774,745 | $ | 1,920,591 | $ | 29,079 | $ | 12,230,618 | |||||||||||||
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. | ||||||||||||||||||||||||
The summarized financial information of the Partnership’s equity method investments for December 31, 2011 are as follows: | |||||||||||||||||||||||||
December 31, 2011 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real | Hedge Fund | Credit | Other (a) | Total | ||||||||||||||||||||
Equity | Estate | Solutions | |||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | $ | 25,788,678 | $ | 29,856,855 | $ | 6,322,821 | $ | 8,887,081 | $ | 5,018 | $ | 70,860,453 | |||||||||||||
Other Assets | 321,271 | 1,736,245 | 1,167,162 | 2,355,318 | 51,153 | 5,631,149 | |||||||||||||||||||
Total Assets | $ | 26,109,949 | $ | 31,593,100 | $ | 7,489,983 | $ | 11,242,399 | $ | 56,171 | $ | 76,491,602 | |||||||||||||
Liabilities and Partners’ Capital | |||||||||||||||||||||||||
Debt | $ | 863,672 | $ | 1,384,867 | $ | 123,925 | $ | 444,313 | $ | 979 | $ | 2,817,756 | |||||||||||||
Other Liabilities | 194,873 | 334,175 | 461,854 | 848,534 | 25,740 | 1,865,176 | |||||||||||||||||||
Total Liabilities | 1,058,545 | 1,719,042 | 585,779 | 1,292,847 | 26,719 | 4,682,932 | |||||||||||||||||||
Partners’ Capital | 25,051,404 | 29,874,058 | 6,904,204 | 9,949,552 | 29,452 | 71,808,670 | |||||||||||||||||||
Total Liabilities and Partners’ Capital | $ | 26,109,949 | $ | 31,593,100 | $ | 7,489,983 | $ | 11,242,399 | $ | 56,171 | $ | 76,491,602 | |||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Interest Income | $ | 116 | $ | 82,166 | $ | 89 | $ | 581,090 | $ | 2 | $ | 663,463 | |||||||||||||
Other Income | 516,729 | 159,400 | 19,275 | 26,760 | 66,456 | 788,620 | |||||||||||||||||||
Interest Expense | (14,826 | ) | (19,142 | ) | (172 | ) | (24,672 | ) | — | (58,812 | ) | ||||||||||||||
Other Expenses | (50,591 | ) | (54,907 | ) | (51,063 | ) | (78,427 | ) | (25,040 | ) | (260,028 | ) | |||||||||||||
Net Realized and Unrealized Gain (Loss) from Investments | 1,510,622 | 4,086,549 | (71,790 | ) | 380,609 | — | 5,905,990 | ||||||||||||||||||
Net Income (Loss) | $ | 1,962,050 | $ | 4,254,066 | $ | (103,661 | ) | $ | 885,360 | $ | 41,418 | $ | 7,039,233 | ||||||||||||
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. | ||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | |||||||||||||||||||||||||
The portion of Blackstone’s Treasury Cash Management Strategies included in Investments represents the Partnership’s liquid investments in government, other investment and non-investment grade securities and other investments. These strategies are primarily managed by third party institutions. The following table presents the realized and net change in unrealized gains (losses) on investments held by Blackstone’s Treasury Cash Management Strategies: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains (Losses) | $ | (5,793 | ) | $ | 9,095 | $ | 9,738 | ||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (9,342 | ) | (502 | ) | 641 | ||||||||||||||||||||
$ | (15,135 | ) | $ | 8,593 | $ | 10,379 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Performance Fees allocated to the general partner in respect of performance of certain Carry Funds, funds of hedge funds and credit-focused funds were as follows: | |||||||||||||||||||||||||
Private | Real | Hedge Fund | Credit | Total | |||||||||||||||||||||
Equity | Estate | Solutions | |||||||||||||||||||||||
Performance Fees, December 31, 2012 | $ | 780,474 | $ | 1,633,279 | $ | 6,214 | $ | 360,250 | $ | 2,780,217 | |||||||||||||||
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 614,554 | 2,084,222 | 68,609 | 214,372 | 2,981,757 | ||||||||||||||||||||
Foreign Exchange Gain | — | 7,733 | — | — | 7,733 | ||||||||||||||||||||
Fund Distributions | (423,168 | ) | (456,628 | ) | (65,355 | ) | (149,764 | ) | (1,094,915 | ) | |||||||||||||||
Performance Fees, December 31, 2013 | $ | 971,860 | $ | 3,268,606 | $ | 9,468 | $ | 424,858 | $ | 4,674,792 | |||||||||||||||
Other Investments | |||||||||||||||||||||||||
Other Investments consist primarily of proprietary investment securities held by Blackstone. The following table presents Blackstone’s realized and net change in unrealized gains (losses) in other investments: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains | $ | 13,468 | $ | 743 | $ | 948 | |||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (6,758 | ) | (371 | ) | (21,968 | ) | |||||||||||||||||||
$ | 6,710 | $ | 372 | $ | (21,020 | ) | |||||||||||||||||||
NET_ASSET_VALUE_AS_FAIR_VALUE
NET ASSET VALUE AS FAIR VALUE | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
NET ASSET VALUE AS FAIR VALUE | ' | ||||||||||||||||
5. NET ASSET VALUE AS FAIR VALUE | |||||||||||||||||
A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2013 is presented below: | |||||||||||||||||
Strategy | Fair Value | Unfunded | Redemption | Redemption | |||||||||||||
Commitments | Frequency | Notice | |||||||||||||||
(if currently | Period | ||||||||||||||||
eligible) | |||||||||||||||||
Diversified Instruments | $ | 142,547 | $ | 3,590 | (a | ) | (a | ) | |||||||||
Credit Driven | 180,996 | — | (b | ) | (b | ) | |||||||||||
Event Driven | 121,455 | — | (c | ) | (c | ) | |||||||||||
Equity | 424,971 | — | (d | ) | (d | ) | |||||||||||
Commodities | 58,621 | — | (e | ) | (e | ) | |||||||||||
$ | 928,590 | $ | 3,590 | ||||||||||||||
(a) | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 65% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 28% of the fair value of the investments in this category represent investments in hedge funds that are in the process of liquidating. Distributions from these funds will be received as underlying investments are liquidated. The time at which this redemption restriction may lapse cannot be estimated. The remaining 7% of investments in this category are redeemable as of the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 18% of Blackstone’s investments in this category. | ||||||||||||||||
(b) | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 94% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 6% of the total fair value in the credit driven category are subject to redemption restrictions at the discretion of the investee fund manager who may choose (but may not have exercised such ability) to side-pocket such investments. As of the reporting date, the investee fund manager had not elected to side-pocket any of Blackstone’s investments in this category. | ||||||||||||||||
(c) | The Event Driven category includes investments in hedge funds whose primary investing strategy is to identify certain event-driven investments. Withdrawals are not permitted in this category. Distributions will be received as the underlying investments are liquidated. | ||||||||||||||||
(d) | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Withdrawals are generally not permitted for the investments in this category. Distributions will be received as the underlying investments are liquidated. | ||||||||||||||||
(e) | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Withdrawals are not permitted for investments representing 95% of the fair value of investments in this category. Distributions will be received as the underlying investments are liquidated. The remaining 5% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||||||||||||||
6. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||
Blackstone and the Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment purposes. Additionally, Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments. | |||||||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||||||
In June 2012, Blackstone removed the fair value designation of its interest rate swaps that were previously used to hedge a portion of the interest rate risk on the Partnership’s fixed rate borrowings. The impact to the Consolidated Statements of Operations for the period up through the date of de-designation is reflected within “Fair Value Hedges” in the table below. Changes in the fair value of the interest rate swaps subsequent to the date of de-designation are reflected within Freestanding Derivatives within Interest Rate Contracts in the table below. | |||||||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts. | |||||||||||||||||||||||||||||||||
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | ||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Blackstone—Other | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | 1,994,276 | $ | 8,521 | $ | 1,083,140 | $ | 2,676 | $ | 689,300 | $ | 55,270 | $ | 636,555 | $ | 4,116 | |||||||||||||||||
Foreign Currency Contracts | 166,066 | 1,480 | 163,787 | 1,015 | 16,771 | 74 | 7,025 | 81 | |||||||||||||||||||||||||
Total Return Swaps | 326,929 | 342 | — | — | — | — | — | — | |||||||||||||||||||||||||
Credit Default Swaps | — | — | 10,000 | 591 | — | — | — | — | |||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Foreign Currency Contracts | 396,569 | 30,830 | 239,037 | 10,018 | 435,229 | 37,898 | 301,551 | 17,101 | |||||||||||||||||||||||||
Interest Rate Contracts | 62,193 | 3,726 | — | — | 165,517 | 6,132 | 90,500 | 772 | |||||||||||||||||||||||||
Total | $ | 2,946,033 | $ | 44,899 | $ | 1,495,964 | $ | 14,300 | $ | 1,306,817 | $ | 99,374 | $ | 1,035,631 | $ | 22,070 | |||||||||||||||||
The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Fair Value Hedges—Interest Rate Swaps | |||||||||||||||||||||||||||||||||
Hedge Ineffectiveness | $ | — | $ | 548 | $ | 4,649 | |||||||||||||||||||||||||||
Excluded from Assessment of Effectiveness | $ | — | $ | (938 | ) | $ | (3,465 | ) | |||||||||||||||||||||||||
Realized Gain | $ | — | $ | 22,941 | $ | — | |||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Realized Gains (Losses) | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | 34,206 | $ | (2,752 | ) | $ | (8,634 | ) | |||||||||||||||||||||||||
Foreign Currency Contracts | 4,022 | (3,816 | ) | 1,739 | |||||||||||||||||||||||||||||
Credit Default Swaps | 752 | (1 | ) | (111 | ) | ||||||||||||||||||||||||||||
Other | — | — | (153 | ) | |||||||||||||||||||||||||||||
Total | $ | 38,980 | $ | (6,569 | ) | $ | (7,159 | ) | |||||||||||||||||||||||||
Net Change in Unrealized Gains (Losses) | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | (1,947 | ) | $ | 12,134 | $ | 8,718 | ||||||||||||||||||||||||||
Foreign Currency Contracts | 2,636 | (5,523 | ) | (33,408 | ) | ||||||||||||||||||||||||||||
Other | 392 | — | (7 | ) | |||||||||||||||||||||||||||||
Total | $ | 1,081 | $ | 6,611 | $ | (24,697 | ) | ||||||||||||||||||||||||||
Since the inception of the above mentioned hedge designation, Blackstone recognized a $64.2 million increase in the fair value of the hedged borrowing. This basis adjustment is being accreted using the effective interest method through August 15, 2019, the remaining term of the hedged borrowing. | |||||||||||||||||||||||||||||||||
As of December 31, 2013, 2012 and 2011, the Partnership had not designated any derivatives as cash flow hedges or hedges of net investments in foreign operations. |
FAIR_VALUE_OPTION
FAIR VALUE OPTION | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
FAIR VALUE OPTION | ' | ||||||||||||||||||||||||
7. FAIR VALUE OPTION | |||||||||||||||||||||||||
The following table summarizes the financial instruments for which the fair value option has been elected: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Loans and Receivables | $ | 137,788 | $ | 30,663 | |||||||||||||||||||||
Equity and Preferred Securities | 88,568 | 16,147 | |||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | 8,466,889 | 11,053,513 | |||||||||||||||||||||||
Corporate Bonds | 161,382 | 162,456 | |||||||||||||||||||||||
Other | 41,061 | 18,285 | |||||||||||||||||||||||
$ | 8,895,688 | $ | 11,281,064 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Senior Secured Notes | $ | 8,302,572 | $ | 10,695,136 | |||||||||||||||||||||
Subordinated Notes | 610,435 | 846,471 | |||||||||||||||||||||||
$ | 8,913,007 | $ | 11,541,607 | ||||||||||||||||||||||
The following table presents the realized and net change in unrealized gains (losses) on financial instruments on which the fair value option was elected: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized | Net Change | Realized | Net Change | Realized | Net Change | ||||||||||||||||||||
Gains | in Unrealized | Gains | in Unrealized | Gains | in Unrealized | ||||||||||||||||||||
(Losses) | Gains | (Losses) | Gains | Gains | |||||||||||||||||||||
(Losses) | (Losses) | (Losses) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Loans and Receivables | $ | 43 | $ | (1,101 | ) | $ | (308 | ) | $ | (375 | ) | $ | — | $ | (228 | ) | |||||||||
Equity and Preferred Securities | (2,833 | ) | 7,273 | (353 | ) | 500 | — | — | |||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | 37,464 | 172,968 | (35,428 | ) | 554,628 | 76,314 | (396,946 | ) | |||||||||||||||||
Corporate Bonds | 4,510 | (5,058 | ) | 393 | 13,264 | 1,099 | (7,605 | ) | |||||||||||||||||
Other | 2,647 | (476 | ) | 2,425 | 11,889 | 13,296 | 29,908 | ||||||||||||||||||
$ | 41,831 | $ | 173,606 | $ | (33,271 | ) | $ | 579,906 | $ | 90,709 | $ | (374,871 | ) | ||||||||||||
Liabilities | |||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Senior Secured Notes | $ | (6,078 | ) | $ | (485,655 | ) | $ | 17 | $ | (603,250 | ) | $ | 5,798 | $ | 58,067 | ||||||||||
Subordinated Notes | — | 96,991 | — | (69,141 | ) | 4,694 | 44,061 | ||||||||||||||||||
$ | (6,078 | ) | $ | (388,664 | ) | $ | 17 | $ | (672,391 | ) | $ | 10,492 | $ | 102,128 | |||||||||||
The following table presents information for those financial instruments for which the fair value option was elected: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
For Financial Assets Past | For Financial Assets Past | ||||||||||||||||||||||||
Due (a) | Due (a) | ||||||||||||||||||||||||
Excess | Fair | Excess | Excess | Fair | Excess | ||||||||||||||||||||
(Deficiency) | Value | (Deficiency) | (Deficiency) | Value | (Deficiency) | ||||||||||||||||||||
of Fair Value | of Fair Value | of Fair Value | of Fair Value | ||||||||||||||||||||||
Over Principal | Over Principal | Over Principal | Over Principal | ||||||||||||||||||||||
Loans and Receivables | $ | (533 | ) | $ | — | $ | — | $ | (292 | ) | $ | — | $ | — | |||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | (281,254 | ) | 57,837 | (176,379 | ) | (586,450 | ) | 35,322 | (73,291 | ) | |||||||||||||||
Corporate Bonds | (1,789 | ) | — | — | (984 | ) | 831 | (44 | ) | ||||||||||||||||
$ | (283,576 | ) | $ | 57,837 | $ | (176,379 | ) | $ | (587,726 | ) | $ | 36,153 | $ | (73,335 | ) | ||||||||||
(a) | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, no Loans and Receivables for which the fair value option was elected were past due or in non-accrual status. As of December 31, 2013, no Corporate Bonds included within the Assets of Consolidated CLO Vehicles for which the fair value option was elected were past due or in non-accrual status. |
FAIR_VALUE_MEASUREMENTS_OF_FIN
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||||||||||||||
8. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||
The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) | |||||||||||||||||||||||||||||||||
Investment Funds | $ | — | $ | — | $ | 897,843 | $ | 897,843 | |||||||||||||||||||||||||
Equity Securities | 51,147 | 130,816 | 193,699 | 375,662 | |||||||||||||||||||||||||||||
Partnership and LLC Interests | — | 88,555 | 1,254,903 | 1,343,458 | |||||||||||||||||||||||||||||
Debt Instruments | — | 1,154,902 | 45,495 | 1,200,397 | |||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||||||||||
Corporate Loans | 7,537,661 | 929,228 | 8,466,889 | ||||||||||||||||||||||||||||||
Corporate Bonds | — | 161,382 | — | 161,382 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 30,830 | — | 30,830 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 3,726 | — | 3,726 | |||||||||||||||||||||||||||||
Other | 3,477 | — | 37,584 | 41,061 | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 54,624 | 9,107,872 | 3,358,752 | 12,521,248 | |||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 19,629 | 1,041,039 | 44,132 | 1,104,800 | |||||||||||||||||||||||||||||
Money Market Funds | 173,781 | — | — | 173,781 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 7,423 | 1,098 | — | 8,521 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 1,480 | — | 1,480 | |||||||||||||||||||||||||||||
Total Return Swaps | — | 342 | — | 342 | |||||||||||||||||||||||||||||
Loans and Receivables | — | — | 137,788 | 137,788 | |||||||||||||||||||||||||||||
Other Investments | 87,068 | 17,270 | 14,466 | 118,804 | |||||||||||||||||||||||||||||
$ | 342,525 | $ | 10,169,101 | $ | 3,555,138 | $ | 14,066,764 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles (a) | |||||||||||||||||||||||||||||||||
Senior Secured Notes | $ | — | $ | — | $ | 8,302,572 | $ | 8,302,572 | |||||||||||||||||||||||||
Subordinated Notes | — | — | 610,435 | 610,435 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 10,018 | — | 10,018 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 2,484 | 192 | — | 2,676 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 1,015 | — | 1,015 | |||||||||||||||||||||||||||||
Credit Default Swaps | — | 591 | — | 591 | |||||||||||||||||||||||||||||
Securities Sold, Not Yet Purchased | — | 76,195 | — | 76,195 | |||||||||||||||||||||||||||||
$ | 2,484 | $ | 88,011 | $ | 8,913,007 | $ | 9,003,502 | ||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) | |||||||||||||||||||||||||||||||||
Investment Funds | $ | — | $ | 1,799 | $ | 890,465 | $ | 892,264 | |||||||||||||||||||||||||
Equity Securities | 95,898 | 28,654 | 217,060 | 341,612 | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 212 | 12,375 | 581,151 | 593,738 | |||||||||||||||||||||||||||||
Debt Instruments | — | 903,123 | 17,724 | 920,847 | |||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||||||||||
Corporate Loans | — | 9,775,070 | 1,278,443 | 11,053,513 | |||||||||||||||||||||||||||||
Corporate Bonds | — | 146,625 | 15,831 | 162,456 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 37,898 | — | 37,898 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 6,132 | — | 6,132 | |||||||||||||||||||||||||||||
Other | — | 1,260 | 17,025 | 18,285 | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 96,110 | 10,912,936 | 3,017,699 | 14,026,745 | |||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 672,766 | 737,708 | 1,206 | 1,411,680 | |||||||||||||||||||||||||||||
Money Market Funds | 129,549 | — | — | 129,549 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 486 | 54,784 | — | 55,270 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 74 | — | 74 | |||||||||||||||||||||||||||||
Loans and Receivables | — | — | 30,663 | 30,663 | |||||||||||||||||||||||||||||
Other Investments | 12,443 | 6,783 | 26,898 | 46,124 | |||||||||||||||||||||||||||||
$ | 911,354 | $ | 11,712,285 | $ | 3,076,466 | $ | 15,700,105 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles (a) | |||||||||||||||||||||||||||||||||
Senior Secured Notes | $ | — | $ | — | $ | 10,695,136 | $ | 10,695,136 | |||||||||||||||||||||||||
Subordinated Notes | — | — | 846,471 | 846,471 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 17,101 | — | 17,101 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 772 | — | 772 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 277 | 3,839 | — | 4,116 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 81 | — | 81 | |||||||||||||||||||||||||||||
Securities Sold, Not Yet Purchased | — | 226,425 | — | 226,425 | |||||||||||||||||||||||||||||
$ | 277 | $ | 248,218 | $ | 11,541,607 | $ | 11,790,102 | ||||||||||||||||||||||||||
(a) | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, is presumed to have control. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. | ||||||||||||||||||||||||||||||||
The following table summarizes the fair value transfers between Level I and Level II for positions that existed as of December 31, 2013 and 2012, respectively: | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Transfers from Level I into Level II (a) | $ | 28,670 | $ | 15,928 | |||||||||||||||||||||||||||||
Transfers from Level II into Level I (b) | $ | 1,308 | $ | 588 | |||||||||||||||||||||||||||||
(a) | Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. | ||||||||||||||||||||||||||||||||
(b) | Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. | ||||||||||||||||||||||||||||||||
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2013: | |||||||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Ranges | Weighted | |||||||||||||||||||||||||||||
Techniques | Inputs | Average (a) | |||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Investment Funds | $ | 897,843 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||
Equity Securities | 112,117 | Discounted Cash Flows | Discount Rate | 9.2% - 26.3% | 12.4 | % | |||||||||||||||||||||||||||
Revenue CAGR | 0.9% - 46.2% | 6.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.0x - 14.0x | 8.9 | x | ||||||||||||||||||||||||||||||
Exit Multiple-P/E | 8.5x - 17.0x | 9.8 | x | ||||||||||||||||||||||||||||||
78,154 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
275 | Market Comparable | EBITDA Multiple | 6.3x - 7.5x | 6.9 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
50 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
3,103 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 557,534 | Discounted Cash Flows | Discount Rate | 5.0% - 22.5% | 9 | % | |||||||||||||||||||||||||||
Revenue CAGR | -0.7% - 17.7% | 5.5 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 3.0x - 23.3x | 9.4 | x | ||||||||||||||||||||||||||||||
Exit Capitalization Rate | 4.3% - 10.5% | 7 | % | ||||||||||||||||||||||||||||||
687,246 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
9,181 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
942 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Debt Instruments | 11,814 | Discounted Cash Flows | Discount Rate | 10.7% - 21.0% | 19.2 | % | |||||||||||||||||||||||||||
Revenue CAGR | 4.8% - 5.5% | 4.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.8x - 11.1x | 10.8 | x | ||||||||||||||||||||||||||||||
Exit Capitalization Rate | 6.4% - 7.5% | 6.7 | % | ||||||||||||||||||||||||||||||
Default Rate | 2.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Rate | 67.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
31,675 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,772 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
234 | Market Comparable | EBITDA Multiple | 6.2x - 8.0x | 6.2 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | $ | 615,414 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||
293,382 | Market Comparable | EBITDA Multiple | 3.5x - 11.3x | 7.3 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
57,936 | Discounted Cash Flows | Discount Rate | 7.0% - 14.0% | 7.8 | % | ||||||||||||||||||||||||||||
Revenue CAGR | 4.20% | N/A | |||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 8.0x | N/A | |||||||||||||||||||||||||||||||
80 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 3,358,752 | ||||||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 17,040 | Discounted Cash Flows | Default Rate | 2.00% | N/A | ||||||||||||||||||||||||||||
Recovery Rate | 30.0% - 70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
Discount Rate | 6.0% - 8.6% | 6.6 | % | ||||||||||||||||||||||||||||||
16,993 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
10,099 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Loans and Receivables | 137,788 | Discounted Cash Flows | Discount Rate | 11.0% - 14.8% | 12.6 | % | |||||||||||||||||||||||||||
Other Investments | 7,927 | Transaction Price | N/A | N/A | N/A | ||||||||||||||||||||||||||||
3,725 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
2,814 | Discounted Cash Flows | Discount Rate | 12.50% | N/A | |||||||||||||||||||||||||||||
Total | $ | 3,555,138 | |||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | $ | 8,913,007 | Discounted Cash Flows | Default Rate | 2.0% -3.0% | 2.1 | % | ||||||||||||||||||||||||||
Recovery Rate | 30.0% - 70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 5.0% -20.0% | 18 | % | ||||||||||||||||||||||||||||||
Discount Rate | 0.4% - 24.2% | 2.6 | % | ||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Ranges | Weighted | |||||||||||||||||||||||||||||
Techniques | Inputs | Average (a) | |||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Investment Funds | $ | 890,465 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||
Equity Securities | 151,899 | Discounted Cash Flows | Discount Rate | 8.4% - 25.1% | 11.2 | % | |||||||||||||||||||||||||||
Revenue CAGR | 0.7% -83.4% | 5.6 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.8x - 11.5x | 9.2 | x | ||||||||||||||||||||||||||||||
Exit Multiple-P/E | 8.5x - 17.0x | 10.1x | |||||||||||||||||||||||||||||||
61,479 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,602 | Market Comparable | Book Value Multiple | 0.9x | N/A | |||||||||||||||||||||||||||||
Companies | EBITDA Multiple | 5.0x - 8.7x | 7.8x | ||||||||||||||||||||||||||||||
200 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,880 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 562,678 | Discounted Cash Flows | Discount Rate | 5.3% - 22.6% | 8.9 | % | |||||||||||||||||||||||||||
Revenue CAGR | -8.2% - 62.0% | 5.3 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 4.5x - 15.4x | 10.0x | |||||||||||||||||||||||||||||||
Exit Capitalization Rate | 1.0% - 10.5% | 7 | % | ||||||||||||||||||||||||||||||
13,316 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
5,157 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Debt Instruments | $ | 13,056 | Discounted Cash Flows | Discount Rate | 7.8% - 42.0% | 15.6 | % | ||||||||||||||||||||||||||
Revenue CAGR | 2.9% -5.1% | 3.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 9.5x | N/A | |||||||||||||||||||||||||||||||
Exit Capitalization Rate | 7.0% -7.5% | 7.1 | % | ||||||||||||||||||||||||||||||
Default Rate | 2.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Rate | 70.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
4,004 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
664 | Market Comparable | EBITDA Multiple | 6.5x-7.5x | 6.7x | |||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Assets of Consolidated | 900,146 | Third Party Pricing | N/A | N/A | N/A | ||||||||||||||||||||||||||||
CLO Vehicles | 278,972 | Market Comparable | EBITDA Multiple | 2.0x - 13.0x | 6.5x | ||||||||||||||||||||||||||||
Companies | Liquidity Discount | 1.0% - 25.0% | 8.4 | % | |||||||||||||||||||||||||||||
132,171 | Discounted Cash Flows | Discount Rate | 7.0% - 15.7% | 9.3 | % | ||||||||||||||||||||||||||||
10 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 3,017,699 | ||||||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 1,006 | Discounted Cash Flows | Default Rate | 2.00% | N/A | ||||||||||||||||||||||||||||
Recovery Rate | 70.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Discount Rate | 12.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
200 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Loans and Receivables | 30,620 | Discounted Cash Flows | Discount Rate | 11.8% - 25.9% | 13.7 | % | |||||||||||||||||||||||||||
43 | Market Comparable | EBITDA Multiple | 8.7x | N/A | |||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Other Investments | 17,901 | NAV as Fair Value | N/A | N/A | N/A | ||||||||||||||||||||||||||||
5,647 | Discounted Cash Flows | Discount Rate | 12.50% | N/A | |||||||||||||||||||||||||||||
3,350 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total | $ | 3,076,466 | |||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | $ | 11,541,607 | Discounted Cash Flows | Default Rate | 2.0% - 5.0% | 2.1 | % | ||||||||||||||||||||||||||
Recovery Rate | 30.0% -70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 5.0% - 20.0% | 18 | % | ||||||||||||||||||||||||||||||
Discount Rate | 1.1% - 50.0% | 3.9 | % | ||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
N/A | Not applicable. | ||||||||||||||||||||||||||||||||
CAGR | Compound annual growth rate. | ||||||||||||||||||||||||||||||||
EBITDA | Earnings before interest, taxes, depreciation and amortization. | ||||||||||||||||||||||||||||||||
Exit Multiple | Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. | ||||||||||||||||||||||||||||||||
(a) | Unobservable inputs were weighted based on the fair value of the investments included in the range. | ||||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of the assets, Blackstone’s Treasury Cash Management Strategies, debt instruments and obligations of consolidated CLO vehicles are discount rates, default rates, recovery rates, recovery lag, pre-payment rates and reinvestment rates. Increases (decreases) in any of the discount rates, default rates, recovery lag and pre-payment rates in isolation would result in a lower (higher) fair value measurement. Increases (decreases) in any of the recovery rates and reinvestment rates in isolation would result in a higher (lower) fair value measurement. Generally, a change in the assumption used for default rates may be accompanied by a directionally similar change in the assumption used for recovery lag and a directionally opposite change in the assumption used for recovery rates and pre-payment rates. | |||||||||||||||||||||||||||||||||
The significant unobservable inputs used in the fair value measurement of equity securities, partnership and LLC interests, debt instruments, assets of consolidated CLO vehicles and loans and receivables are discount rates, exit capitalization rates, exit multiples, book value multiples, EBITDA multiples, liquidity discount and revenue compound annual growth rates. Increases (decreases) in any of discount rates and exit capitalization rates in isolation can result in a lower (higher) fair value measurement. Increases (decreases) in any of exit multiples, book value multiples and revenue compound annual growth rates in isolation can result in a higher (lower) fair value measurement. | |||||||||||||||||||||||||||||||||
Since December 31, 2012, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments. | |||||||||||||||||||||||||||||||||
The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Partnership has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in Investment Income (Loss) and Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. | |||||||||||||||||||||||||||||||||
Level III Financial Assets at Fair Value | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Investments of | Loans and | Other | Total | Investments of | Loans and | Other | Total | ||||||||||||||||||||||||||
Consolidated | Receivables | Investments (c) | Consolidated | Receivables | Investments (c) | ||||||||||||||||||||||||||||
Funds | Funds | ||||||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | 3,017,699 | $ | 30,663 | $ | 28,104 | $ | 3,076,466 | $ | 2,103,769 | $ | 8,555 | $ | 20,164 | $ | 2,132,488 | |||||||||||||||||
Transfer In Due to Consolidation and Acquisition (a) | 673,031 | — | 11,960 | 684,991 | 246,022 | — | — | 246,022 | |||||||||||||||||||||||||
Transfer Out Due to Deconsolidation | (284,960 | ) | — | — | (284,960 | ) | (1,599 | ) | — | — | (1,599 | ) | |||||||||||||||||||||
Transfer In to | 624,450 | — | 12,627 | 637,077 | 687,225 | — | — | 687,225 | |||||||||||||||||||||||||
Level III (b) | |||||||||||||||||||||||||||||||||
Transfer Out of | (481,637 | ) | — | (9,241 | ) | (490,878 | ) | (150,097 | ) | — | — | (150,097 | ) | ||||||||||||||||||||
Level III (b) | |||||||||||||||||||||||||||||||||
Purchases | 733,356 | 370,508 | 129,122 | 1,232,986 | 772,305 | 176,641 | 7,700 | 956,646 | |||||||||||||||||||||||||
Sales | (1,249,271 | ) | (265,996 | ) | (112,833 | ) | (1,628,100 | ) | (809,367 | ) | (154,293 | ) | (703 | ) | (964,363 | ) | |||||||||||||||||
Settlements | — | 2,312 | (1,958 | ) | 354 | — | (46 | ) | — | (46 | ) | ||||||||||||||||||||||
Realized Gains (Losses), Net | 64,681 | 43 | 13,934 | 78,658 | (17,201 | ) | (308 | ) | 449 | (17,060 | ) | ||||||||||||||||||||||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 261,403 | 258 | (13,117 | ) | 248,544 | 186,642 | 114 | 494 | 187,250 | ||||||||||||||||||||||||
Balance, End of Period | $ | 3,358,752 | $ | 137,788 | $ | 58,598 | $ | 3,555,138 | $ | 3,017,699 | $ | 30,663 | $ | 28,104 | $ | 3,076,466 | |||||||||||||||||
Level III Financial Liabilities at Fair Value Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Collateralized | Collateralized | Total | Collateralized | Collateralized | Total | ||||||||||||||||||||||||||||
Loan | Loan | Loan | Loan | ||||||||||||||||||||||||||||||
Obligations | Obligations | Obligations | Obligations | ||||||||||||||||||||||||||||||
Senior | Subordinated | Senior | Subordinated | ||||||||||||||||||||||||||||||
Notes | Notes | Notes | Notes | ||||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | 10,695,136 | $ | 846,471 | $ | 11,541,607 | $ | 7,449,766 | $ | 630,236 | $ | 8,080,002 | |||||||||||||||||||||
Transfer In Due to Consolidation and Acquisition (a) | — | — | — | 3,419,084 | 149,225 | 3,568,309 | |||||||||||||||||||||||||||
Transfer Out Due to Deconsolidation | (1,100,842 | ) | (150,925 | ) | (1,251,767 | ) | — | — | — | ||||||||||||||||||||||||
Issuances | 41,233 | 784 | 42,017 | 15,602 | 2,218 | 17,820 | |||||||||||||||||||||||||||
Settlements | (2,034,367 | ) | (530 | ) | (2,034,897 | ) | (895,302 | ) | (3,588 | ) | (898,890 | ) | |||||||||||||||||||||
Realized (Gains) Losses, Net | 6,078 | — | 6,078 | (17 | ) | — | (17 | ) | |||||||||||||||||||||||||
Changes in Unrealized (Gains) Losses Included in Earnings Related to Liabilities Still Held at the Reporting Date | 695,334 | (85,365 | ) | 609,969 | 706,003 | 68,380 | 774,383 | ||||||||||||||||||||||||||
Balance, End of Period | $ | 8,302,572 | $ | 610,435 | $ | 8,913,007 | $ | 10,695,136 | $ | 846,471 | $ | 11,541,607 | |||||||||||||||||||||
(a) | Represents the transfer into Level III of financial assets and liabilities as a result of the consolidation of certain fund entities, the acquisition of management contracts and the Harbourmaster acquisition. | ||||||||||||||||||||||||||||||||
(b) | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. | ||||||||||||||||||||||||||||||||
(c) | Represents Blackstone’s Treasury Cash Management Strategies and Other Investments. |
VARIABLE_INTEREST_ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
VARIABLE INTEREST ENTITIES | ' | ||||||||
9. VARIABLE INTEREST ENTITIES | |||||||||
Pursuant to GAAP consolidation guidance, the Partnership consolidates certain VIEs in which it is determined that the Partnership is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds have similar characteristics, including loss of invested capital and loss of management fees and performance based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. The Partnership does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments. | |||||||||
The assets of consolidated variable interest entities may only be used to settle obligations of these consolidated Blackstone Funds. In addition, there is no recourse to the Partnership for the consolidated VIEs’ liabilities including the liabilities of the consolidated CLO vehicles. | |||||||||
The Partnership holds variable interests in certain VIEs which are not consolidated as it is determined that the Partnership is not the primary beneficiary. The Partnership’s involvement with such entities is in the form of direct equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to non-consolidated entities, any amounts due to non-consolidated entities and any clawback obligation relating to previously distributed Carried Interest. The assets and liabilities recognized in the Partnership’s Consolidated Statements of Financial Condition related to the Partnership’s interest in these non-consolidated VIEs and the Partnership’s maximum exposure to loss relating to non-consolidated VIEs were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investments | $ | 758,304 | $ | 364,709 | |||||
Accounts Receivable | 166,908 | 1,885 | |||||||
Due from Affiliates | 86,246 | 112,686 | |||||||
Total VIE Assets | 1,011,458 | 479,280 | |||||||
Due to Affiliates | 397 | 2,657 | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 2 | — | |||||||
Potential Clawback Obligation | 63,290 | 36,040 | |||||||
Maximum Exposure to Loss | $ | 1,075,147 | $ | 517,977 | |||||
REVERSE_REPURCHASE_AND_REPURCH
REVERSE REPURCHASE AND REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
REVERSE REPURCHASE AND REPURCHASE AGREEMENTS | ' |
10. REVERSE REPURCHASE AND REPURCHASE AGREEMENTS | |
At December 31, 2013, the Partnership received securities, primarily U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt, with a fair value of $148.4 million and cash as collateral for reverse repurchase agreements that could be repledged, delivered or otherwise used. Securities with a fair value of $148.4 million were used to cover Securities Sold, Not Yet Purchased and Repurchase Agreements. The Partnership also pledged securities with a carrying value of $316.6 million and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. | |
At December 31, 2012, the Partnership received securities, primarily U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt, with a fair value of $247.4 million and cash as collateral for reverse repurchase agreements that could be repledged, delivered or otherwise used. Securities with a fair value of $226.4 million were used to cover Securities Sold, Not Yet Purchased. The Partnership also pledged securities with a carrying value of $141.9 million and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. |
OTHER_ASSETS_AND_ACCOUNTS_PAYA
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | ' | ||||||||
11. OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | |||||||||
Other Assets consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture, Equipment and Leasehold Improvements | $ | 325,700 | $ | 300,105 | |||||
Less: Accumulated Depreciation | (188,612 | ) | (157,715 | ) | |||||
Furniture, Equipment and Leasehold Improvements, Net | 137,088 | 142,390 | |||||||
Prepaid Expenses | 61,226 | 81,498 | |||||||
Other Assets | 75,815 | 97,140 | |||||||
Freestanding Derivatives | 10,343 | 55,344 | |||||||
$ | 284,472 | $ | 376,372 | ||||||
Depreciation expense of $33.6 million, $34.0 million and $31.6 million related to furniture, equipment and leasehold improvements for the years ended December 31, 2013, 2012 and 2011, respectively, is included in General, Administrative and Other in the accompanying Consolidated Statements of Operations. | |||||||||
Accounts Payable, Accrued Expenses and Other Liabilities includes $57.0 million and $170.4 million as of December 31, 2013 and 2012, respectively, relating to redemptions that were legally payable to investors as of the balance sheet dates and $229.1 million and $352.3 million of payables relating to unsettled purchases within Blackstone’s consolidated funds, respectively. |
OFFSETTING_OF_ASSETS_AND_LIABI
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
OFFSETTING OF ASSETS AND LIABILITIES | ' | ||||||||||||||||
12. OFFSETTING OF ASSETS AND LIABILITIES | |||||||||||||||||
The following tables present the offsetting of assets and liabilities as of December 31, 2013: | |||||||||||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Assets | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Received | ||||||||||||||||
Assets | |||||||||||||||||
Freestanding Derivatives | $ | 10,343 | $ | 3,025 | $ | 582 | $ | 6,736 | |||||||||
Reverse Repurchase Agreements | 148,984 | 148,394 | — | 590 | |||||||||||||
Total | $ | 159,327 | $ | 151,419 | $ | 582 | $ | 7,326 | |||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Liabilities | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Pledged | ||||||||||||||||
Liabilities | |||||||||||||||||
Freestanding Derivatives | $ | 4,282 | $ | 3,025 | $ | 1,257 | $ | — | |||||||||
Repurchase Agreements | 316,352 | 316,352 | — | — | |||||||||||||
Total | $ | 320,634 | $ | 319,377 | $ | 1,257 | $ | — | |||||||||
The following tables present the offsetting of assets and liabilities as of December 31, 2012: | |||||||||||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Assets | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Received | ||||||||||||||||
Assets | |||||||||||||||||
Freestanding Derivatives | $ | 55,344 | $ | 3,983 | $ | 36,748 | $ | 14,613 | |||||||||
Reverse Repurchase Agreements | 248,018 | 248,018 | — | — | |||||||||||||
Total | $ | 303,362 | $ | 252,001 | $ | 36,748 | $ | 14,613 | |||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Liabilities | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Pledged | ||||||||||||||||
Liabilities | |||||||||||||||||
Freestanding Derivatives | $ | 4,197 | $ | 3,983 | $ | — | $ | 214 | |||||||||
Repurchase Agreements | 142,266 | 142,266 | — | — | |||||||||||||
Total | $ | 146,463 | $ | 146,249 | $ | — | $ | 214 | |||||||||
Reverse Repurchase Agreements and Repurchase Agreements are presented separately on the Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Statements of Financial Condition. See Note 11. “Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities” for the components of Other Assets. | |||||||||||||||||
Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Statements of Financial Condition and are not a significant component thereof. |
BORROWINGS
BORROWINGS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
BORROWINGS | ' | ||||||||||||||||||||||||
13. BORROWINGS | |||||||||||||||||||||||||
The Partnership borrows and enters into credit agreements for its general operating and investment purposes and certain Blackstone Funds borrow to meet financing needs of their operating and investing activities. Borrowing facilities have been established for the benefit of selected Blackstone Funds. When a Blackstone Fund borrows from the facility in which it participates, the proceeds from the borrowing are strictly limited for its intended use by the borrowing fund and not available for other Partnership purposes. The Partnership’s credit facilities consist of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Credit | Borrowing | Weighted | Credit | Borrowing | Weighted | ||||||||||||||||||||
Available | Outstanding | Average | Available | Outstanding | Average | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Revolving Credit Facility (a) | $ | 1,100,000 | $ | 717 | 1.25 | % | $ | 1,100,000 | $ | 717 | 1.25 | % | |||||||||||||
Blackstone Issued 6.625% Notes Due 8/15/2019 (b) (e) | 585,000 | 585,000 | 6.63 | % | 585,000 | 585,000 | 6.63 | % | |||||||||||||||||
Blackstone Issued 5.875% Notes Due 3/15/2021 (c) (e) | 400,000 | 400,000 | 5.88 | % | 400,000 | 400,000 | 5.88 | % | |||||||||||||||||
Blackstone Issued 4.750% Notes Due 2/15/2023 (d) (e) | 400,000 | 400,000 | 4.75 | % | 400,000 | 400,000 | 4.75 | % | |||||||||||||||||
Blackstone Issued 6.250% Notes Due 8/15/2042 (d) (e) | 250,000 | 250,000 | 6.25 | % | 250,000 | 250,000 | 6.25 | % | |||||||||||||||||
Operating Entities Facilities (f) | — | — | n/a | 6,228 | 6,228 | 1.03 | % | ||||||||||||||||||
2,735,000 | 1,635,717 | 5.92 | % | 2,741,228 | 1,641,945 | 5.9 | % | ||||||||||||||||||
Blackstone Fund Facilities (g) | 13,075 | 13,075 | 3.19 | % | 23,842 | 23,842 | 2.03 | % | |||||||||||||||||
CLO Vehicles (h) | 9,891,473 | 9,826,621 | 1.09 | % | 13,055,784 | 12,967,302 | 1.34 | % | |||||||||||||||||
$ | 12,639,548 | $ | 11,475,413 | 1.78 | % | $ | 15,820,854 | $ | 14,633,089 | 1.86 | % | ||||||||||||||
(a) | Blackstone, through indirect subsidiaries, has a $1.1 billion unsecured revolving credit facility (the “Credit Facility”) with Citibank, N.A., as Administrative Agent with a maturity date of July 13, 2017. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, 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. As of December 31, 2013, there was an outstanding but undrawn letter of credit against the credit facility for $0.7 million. | ||||||||||||||||||||||||
(b) | On August 20, 2009, Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of the Partnership, issued $600 million of senior notes. The notes, which were issued at a discount, accrue interest from August 20, 2009. Interest is paid semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2010. Interest expense on the notes was $38.8 million, $39.4 million and $39.8 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||||||||||||||||||||||
(c) | On September 15, 2010, the Issuer issued $400 million of senior notes. The notes, which were issued at a discount, accrue interest from September 20, 2010. Interest is payable semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011. Interest expense on the notes was $23.5 million, $23.5 million and $23.5 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||||||
(d) | On August 17, 2012, the Issuer issued $400 million of senior notes due February 15, 2023 and $250 million of senior notes maturing August 15, 2042. The notes, which were issued at a discount, accrue interest from August 17, 2012. Interest is payable semiannually in arrears on February 15 and September 15 of each year, commencing on February 15, 2013. Interest expense on the $400 million note was $19.0 million and $7.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. Interest expense on the $250 million note was $15.6 million and $5.8 million for the years ended December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
(e) | Represents long term borrowings in the form of senior notes (the “Notes”) issued by the Issuer. The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings, and the Issuer (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been capitalized and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. | ||||||||||||||||||||||||
(f) | Represents borrowings under a capital asset purchase facility. The capital asset purchase facility is secured by the purchased asset and borrowings bear interest at a spread to LIBOR. The borrowings were paid down during 2013. | ||||||||||||||||||||||||
(g) | Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. | ||||||||||||||||||||||||
(h) | Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||||
The carrying value and fair value of the Blackstone issued notes, included in Loans Payable within the Consolidated Statements of Financial Condition, were: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Value | Value (a) | Value | Value (a) | ||||||||||||||||||||||
Blackstone Issued 6.625%, $600 Million Par, Notes | $ | 632,823 | $ | 684,860 | $ | 640,220 | $ | 682,344 | |||||||||||||||||
Due 8/15/2019 (b) | |||||||||||||||||||||||||
Blackstone Issued 5.875%, $400 Million Par, Notes | $ | 398,543 | $ | 447,120 | $ | 398,386 | $ | 456,200 | |||||||||||||||||
Due 3/15/2021 | |||||||||||||||||||||||||
Blackstone Issued 4.750%, $400 Million Par, Notes | $ | 393,202 | $ | 415,760 | $ | 392,629 | $ | 426,160 | |||||||||||||||||
Due 2/15/2023 | |||||||||||||||||||||||||
Blackstone Issued 6.250%, $250 Million Par, Notes | $ | 239,738 | $ | 278,550 | $ | 239,619 | $ | 275,275 | |||||||||||||||||
Due 8/15/2042 | |||||||||||||||||||||||||
(a) | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. | ||||||||||||||||||||||||
(b) | The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||||||||||||||||||||||
Included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition are amounts due to holders of debt securities issued by Blackstone’s consolidated CLO vehicles. Borrowings through the consolidated CLO vehicles consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Borrowing | Weighted | Weighted | Borrowing | Weighted | Weighted | ||||||||||||||||||||
Outstanding | Average | Average | Outstanding | Average | Average | ||||||||||||||||||||
Interest | Remaining | Interest | Remaining | ||||||||||||||||||||||
Rate | Maturity in | Rate | Maturity in | ||||||||||||||||||||||
Years | Years | ||||||||||||||||||||||||
Senior Secured Notes | $ | 8,605,553 | 1.09 | % | 4.1 | $ | 11,518,111 | 1.34 | % | 4.6 | |||||||||||||||
Subordinated Notes | 1,221,068 | (a | ) | N/A | 1,449,191 | (a | ) | 2.6 | |||||||||||||||||
$ | 9,826,621 | $ | 12,967,302 | ||||||||||||||||||||||
(a) | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. | ||||||||||||||||||||||||
Senior Secured Notes and Subordinated Notes comprise the following amounts: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair Value | Amounts Due to Non- | Fair Value | Amounts Due to Non- | ||||||||||||||||||||||
Consolidated Affiliates | Consolidated Affiliates | ||||||||||||||||||||||||
Borrowing | Fair Value | Borrowing | Fair Value | ||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||
Senior Secured Notes | $ | 8,302,572 | $ | 14,500 | $ | 13,732 | $ | 10,695,136 | $ | 22,000 | $ | 18,229 | |||||||||||||
Subordinated Notes | $ | 610,435 | $ | 224,444 | $ | 110,197 | $ | 846,471 | $ | 258,156 | $ | 172,899 | |||||||||||||
The Loans Payable of the consolidated CLO vehicles are collateralized by assets held by each respective CLO vehicle and assets of one vehicle may not be used to satisfy the liabilities of another. As of December 31, 2013 and 2012, the fair value of the consolidated CLO assets was $9.5 billion and $12.5 billion, respectively. This collateral consisted of Cash, Corporate Loans, Corporate Bonds and other securities. | |||||||||||||||||||||||||
As part of Blackstone’s borrowing arrangements, the Partnership is subject to certain financial and operating covenants. The Partnership was in compliance with all of its loan covenants as of December 31, 2013. | |||||||||||||||||||||||||
Scheduled principal payments for borrowings at December 31, 2013 are as follows: | |||||||||||||||||||||||||
Operating | Blackstone Fund | Total Borrowings | |||||||||||||||||||||||
Borrowings | Facilities / CLO | ||||||||||||||||||||||||
Vehicles | |||||||||||||||||||||||||
2014 | $ | — | $ | 8,066 | $ | 8,066 | |||||||||||||||||||
2015 | — | 5,009 | 5,009 | ||||||||||||||||||||||
2018 and Thereafter | 1,635,000 | 9,826,621 | 11,461,621 | ||||||||||||||||||||||
Total | $ | 1,635,000 | $ | 9,839,696 | $ | 11,474,696 | |||||||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES | ' | ||||||||||||
14. INCOME TAXES | |||||||||||||
The Provision for Income Taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal Income Tax | $ | 19,237 | $ | 5,928 | $ | 4,509 | |||||||
Foreign Income Tax | 13,302 | 16,921 | 22,741 | ||||||||||
State and Local Income Tax | 33,273 | 36,022 | 8,997 | ||||||||||
65,812 | 58,871 | 36,247 | |||||||||||
Deferred | |||||||||||||
Federal Income Tax | 157,962 | 100,875 | 226,153 | ||||||||||
Foreign Income Tax | (638 | ) | (691 | ) | 403 | ||||||||
State and Local Income Tax | 32,506 | 25,968 | 82,908 | ||||||||||
189,830 | 126,152 | 309,464 | |||||||||||
Provision for Taxes | $ | 255,642 | $ | 185,023 | $ | 345,711 | |||||||
The following table summarizes Blackstone’s tax position: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income Before Provision for Taxes | $ | 3,148,561 | $ | 1,014,905 | $ | 77,258 | |||||||
Total Provision for Taxes | $ | 255,642 | $ | 185,023 | $ | 345,711 | |||||||
Effective Income Tax Rate | 8.1 | % | 18.2 | % | 447.5 | % | |||||||
The following table reconciles the Provision for Taxes to the U.S. federal statutory tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | |||||||
Income Passed Through to Common Unitholders and Non-Controlling Interest | -28.7 | % | -23.6 | % | 76.9 | % | |||||||
Holders (a) | |||||||||||||
Interest Expense | -0.9 | % | -3.4 | % | -47 | % | |||||||
Foreign Income Taxes | -0.2 | % | -3.2 | % | 10.5 | % | |||||||
State and Local Income Taxes | 1.7 | % | 3 | % | 38.7 | % | |||||||
Equity-Based Compensation | 1.6 | % | 9.3 | % | 132.4 | % | |||||||
Change in Tax Rate | 0.6 | % | -0.1 | % | 202.9 | % | |||||||
Net Unrecognized Tax Positions | -0.2 | % | 0.7 | % | 7.8 | % | |||||||
Non Deductible Expenses | 0 | % | 0.6 | % | 2.5 | % | |||||||
Tax Deductible Compensation | -0.3 | % | -0.4 | % | -10.2 | % | |||||||
Other | -0.5 | % | 0.3 | % | -2 | % | |||||||
Effective Income Tax Rate (b) | 8.1 | % | 18.2 | % | 447.5 | % | |||||||
(a) | Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling interest holders. | ||||||||||||
(b) | The effective tax rate is calculated on Income (Loss) Before Provision for Taxes. | ||||||||||||
In 2013, a subsidiary of the Partnership received Letter Rulings allowing the application of New York State and New York City laws that prescribe the sourcing of income of a registered securities or commodities broker resulting in a reduction to the rate of tax for 2013 and the rate of tax that Blackstone will pay in the future. In 2011, application of the New York State and New York City tax laws that source various types of receipts from services performed by registered brokers and dealers of securities and commodities for purposes of apportioning income resulted in a reduction to Blackstone’s rate of tax for that year and to the rate of tax that Blackstone will pay in subsequent years. The reduction in the rate of tax resulted in a reduction in the 2013 and 2011 current tax provision and an increase in the 2013 and 2011 deferred tax provision with a corresponding reduction to the net Deferred Tax Assets of $22.7 million and $233.7 million, respectively, with the net result an increase to the effective income tax rate as reflected in the table above. | |||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Fund Management Fees | $ | 8,728 | $ | 16,719 | |||||||||
Equity-Based Compensation | 54,810 | 45,329 | |||||||||||
Unrealized Gains from Investments | (117,685 | ) | (58,499 | ) | |||||||||
Depreciation and Amortization | 1,285,042 | 1,257,145 | |||||||||||
Net Operating Loss Carry Forward | 12 | 18,780 | |||||||||||
Other | (21,700 | ) | 6,137 | ||||||||||
Total Deferred Tax Assets | $ | 1,209,207 | $ | 1,285,611 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation and Amortization | $ | 10 | $ | 143 | |||||||||
Total Deferred Tax Liabilities | $ | 10 | $ | 143 | |||||||||
Future realization of tax benefits depends on the expectation of taxable income within a period of time that the tax benefits will reverse. The Partnership has recorded a significant deferred tax asset for the future amortization of tax basis intangibles acquired from the predecessor owners and current owners. The amortization period for these tax basis intangibles is 15 years; accordingly, the related deferred tax assets will reverse over the same period. The Partnership had a taxable loss of $56.8 million and $81.4 million for the years ended December 31, 2011 and 2010, respectively, of which $8.8 million was carried back and utilized against prior year taxable income, $74.9 million was utilized against taxable income generated in the tax year ended December 31, 2012 and $54.6 million will be utilized against taxable income generated in the tax year ended December 31, 2013. The Partnership has considered the 15 year amortization period for the tax basis intangibles and the 20 year carryforward period for its taxable loss in evaluating whether it should establish a valuation allowance. | |||||||||||||
The Partnership also considers projections of taxable income in evaluating its ability to utilize deferred tax assets. In projecting its taxable income, the Partnership begins with historic results and incorporates assumptions of the amount of future pretax operating income. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that the Partnership uses to manage its business. At this time, the Partnership’s projections of future taxable income that include the effects of originating and reversing temporary differences, including those for the tax basis intangibles, indicate that it is more likely than not that the benefits from the deferred tax asset will be realized. Therefore, the Partnership has determined that no valuation allowance is needed at December 31, 2013. | |||||||||||||
Currently, the Partnership does not believe it meets the indefinite reversal criteria that would cause the Partnership to not recognize a deferred tax liability with respect to its foreign subsidiaries. Where applicable, Blackstone will record a deferred tax liability for any outside basis difference of an investment in a foreign subsidiary. | |||||||||||||
Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is subject to examination by federal and certain state, local and foreign tax regulators. As of December 31, 2013, Blackstone’s U.S. federal income tax returns for the years 2010 through 2012 are open under the normal three-year statute of limitations and therefore subject to examination. The Internal Revenue Service is examining certain corporate subsidiaries’ 2007 through 2011 U.S. federal income tax returns. State and local tax returns are generally subject to audit from 2009 through 2012. Currently, the State of New York is examining the tax returns filed by Blackstone and certain of its subsidiaries for the years 2010 through 2011 and the City of New York is examining certain other subsidiaries’ tax returns for the years 2007 through 2009. The Income Tax Department of the Government of India is examining the tax returns of the Indian subsidiaries for the years 2008 and 2009. Blackstone believes that during 2014 certain tax audits have a reasonable possibility of being completed and does not expect the results of these audits to have a material impact on the consolidated financial statements. | |||||||||||||
Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Unrecognized Tax Benefits—January 1 | $ | 30,742 | $ | 12,234 | |||||||||
Additions based on Tax Positions Related to Current Year | 6,517 | 6,117 | |||||||||||
Additions for Tax Positions of Prior Years | 3,435 | 16,733 | |||||||||||
Reductions for Tax Positions of Prior Years | (17,686 | ) | (3,215 | ) | |||||||||
Settlements | (3,538 | ) | (1,596 | ) | |||||||||
Exchange Rate Fluctuations | (608 | ) | 469 | ||||||||||
Unrecognized Tax Benefits—December 31 | $ | 18,862 | $ | 30,742 | |||||||||
If the above tax benefits were recognized, $18.9 million and $26.8 million for the years ended December 31, 2013 and 2012, respectively would reduce the annual effective rate. Blackstone does not believe that it will have a material increase or decrease in its unrecognized tax benefits during the coming year. | |||||||||||||
The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expense and Other Liabilities in the Consolidated Statements of Financial Condition. | |||||||||||||
Blackstone recognizes interest and penalties accrued related to unrecognized tax positions in General, Administrative and Other Expense. During the year ended December 31, 2013, $1.0 million of interest expense and no penalties were accrued. During the year ended December 31, 2012, $5.8 million of interest expense and $0.5 million of penalties were accrued. During the year ended December 31, 2011, $1.5 million of interest expense and no penalties were accrued. | |||||||||||||
On September 13, 2013, the U.S. Treasury Department and the IRS issued final regulations that address costs incurred in acquiring, producing, or improving tangible property (“the tangible property regulations”). The tangible property regulations are generally effective for tax years beginning on or after January 1, 2014, and may be adopted in earlier years. Management does not anticipate the impact of these changes to be material to the Partnership’s consolidated financial condition or results of operations. |
NET_INCOME_LOSS_PER_COMMON_UNI
NET INCOME (LOSS) PER COMMON UNIT | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
NET INCOME (LOSS) PER COMMON UNIT | ' | ||||||||||||
15. NET INCOME (LOSS) PER COMMON UNIT | |||||||||||||
Basic and diluted net income (loss) per common unit for the years ended December 31, 2013, 2012 and 2011 was calculated as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $ | 1,171,202 | $ | 218,598 | $ | (168,303 | ) | ||||||
Basic Net Income (Loss) Per Common Unit | |||||||||||||
Weighted-Average Common Units Outstanding | 587,018,828 | 533,703,606 | 475,582,718 | ||||||||||
Basic Net Income (Loss) Per Common Unit | $ | 2 | $ | 0.41 | $ | (0.35 | ) | ||||||
Diluted Net Income (Loss) Per Common Unit | |||||||||||||
Weighted-Average Common Units Outstanding | 587,018,828 | 533,703,606 | 475,582,718 | ||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | 3,527,812 | 4,965,464 | — | ||||||||||
Weighted-Average Diluted Common Units Outstanding | 590,546,640 | 538,669,070 | 475,582,718 | ||||||||||
Diluted Net Income (Loss) Per Common Unit | $ | 1.98 | $ | 0.41 | $ | (0.35 | ) | ||||||
The following table summarizes the anti-dilutive securities for the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | — | — | 22,529,309 | ||||||||||
Weighted-Average Blackstone Holdings Partnership Units | 553,579,525 | 590,446,577 | 628,115,753 | ||||||||||
Unit Repurchase Program | |||||||||||||
In January 2008, Blackstone announced that the Board of Directors of its general partner, Blackstone Group Management L.L.C., had authorized the repurchase by Blackstone of up to $500 million of Blackstone common units and Blackstone Holdings Partnership Units. Under this unit repurchase program, units may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of Blackstone common units and Blackstone Holdings Partnership Units repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This unit repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. | |||||||||||||
During the years ended December 31, 2013 and 2012, no units were repurchased. As of December 31, 2013, the amount remaining available for repurchases under this program was $335.8 million. | |||||||||||||
During the year ended December 31, 2011, Blackstone repurchased 116,270 vested Blackstone Holdings Partnership Units as part of the unit repurchase program for a total fair value of $2.1 million. |
EQUITYBASED_COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
EQUITY-BASED COMPENSATION | ' | ||||||||||||||||||||||||
16. EQUITY-BASED COMPENSATION | |||||||||||||||||||||||||
The Partnership has granted equity-based compensation awards to Blackstone’s senior managing directors, non-partner professionals, non-professionals and selected external advisers under the Partnership’s 2007 Equity Incentive Plan (the “Equity Plan”), the majority of which to date were granted in connection with Blackstone’s initial public offering (“IPO”). The Equity Plan allows for the granting of options, unit appreciation rights or other unit-based awards (units, restricted units, restricted common units, deferred restricted common units, phantom restricted common units or other unit-based awards based in whole or in part on the fair value of the Blackstone common units or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1, 2013, the Partnership had the ability to grant 163,217,431 units under the Equity Plan. | |||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011 the Partnership recorded compensation expense of $855.1 million, $949.6 million, and $1.4 billion, respectively, in relation to its equity-based awards with corresponding tax benefits of $33.3 million, $25.0 million, and $22.4 million, respectively. | |||||||||||||||||||||||||
As of December 31, 2013, there was $1.3 billion of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 1.9 years. | |||||||||||||||||||||||||
Total vested and unvested outstanding units, including Blackstone common units, Blackstone Holdings Partnership Units and deferred restricted common units, were 1,153,844,153 as of December 31, 2013. Total outstanding unvested phantom units were 147,169 as of December 31, 2013. | |||||||||||||||||||||||||
A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2013 and of changes during the period January 1, 2013 through December 31, 2013 is presented below: | |||||||||||||||||||||||||
Blackstone Holdings | The Blackstone Group L.P. | ||||||||||||||||||||||||
Partnership | Weighted- | Equity Settled Awards | Cash Settled Awards | ||||||||||||||||||||||
Units | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Unvested Units | Fair Value | Deferred | Weighted- | Phantom | Weighted- | ||||||||||||||||||||
Restricted | Average | Units | Average | ||||||||||||||||||||||
Common | Grant Date | Grant Date | |||||||||||||||||||||||
Units and | Fair Value | Fair Value | |||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Balance, December 31, 2012 | 66,591,089 | $ | 28.19 | 20,199,382 | $ | 15.76 | 221,356 | $ | 14.89 | ||||||||||||||||
Granted | 4,645,938 | 20.65 | 7,245,002 | 22.56 | 7,687 | 22.85 | |||||||||||||||||||
Vested | (21,385,204 | ) | 29.91 | (6,458,664 | ) | 23.77 | (78,318 | ) | 20.82 | ||||||||||||||||
Forfeited | (1,794,007 | ) | 29.69 | (981,581 | ) | 17.27 | (3,556 | ) | 23.7 | ||||||||||||||||
Balance, December 31, 2013 | 48,057,816 | $ | 26.64 | 20,004,139 | $ | 15.57 | 147,169 | $ | 12 | ||||||||||||||||
Units Expected to Vest | |||||||||||||||||||||||||
The following unvested units, after expected forfeitures, as of December 31, 2013, are expected to vest: | |||||||||||||||||||||||||
Units | Weighted-Average | ||||||||||||||||||||||||
Service Period | |||||||||||||||||||||||||
in Years | |||||||||||||||||||||||||
Blackstone Holdings Partnership Units | 44,277,748 | 1.9 | |||||||||||||||||||||||
Deferred Restricted Blackstone Common Units and Options | 16,515,381 | 2.3 | |||||||||||||||||||||||
Total Equity-Based Awards | 60,793,129 | 2 | |||||||||||||||||||||||
Phantom Units | 146,520 | 0.03 | |||||||||||||||||||||||
Deferred Restricted Common Units and Phantom Units | |||||||||||||||||||||||||
The Partnership has granted deferred restricted common units to certain senior and non-senior managing director professionals, analysts and senior finance and administrative personnel and selected external advisers and phantom units (cash settled equity-based awards) to other senior and non-senior managing director employees. Holders of deferred restricted common units and phantom units are not entitled to any voting rights. Only phantom units are to be settled in cash. | |||||||||||||||||||||||||
The fair values of deferred restricted common units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 8 years. Additionally, the calculation of the compensation expense assumes forfeiture rates based upon historical turnover rates, ranging from 1% to 12.5% annually by employee class, and a per unit discount, ranging from $0.01 to $10.33 as a majority of these unvested awards do not contain distribution participation rights. In most cases, the Partnership will not make any distributions with respect to unvested deferred restricted common units. However, there are certain grantees who receive distributions on both vested and unvested deferred restricted common units. | |||||||||||||||||||||||||
The phantom units vest over the assumed service period, which ranges from 2 to 4 years. On each such vesting date, Blackstone delivered or will deliver cash to the holder in an amount equal to the number of phantom units held multiplied by the then fair market value of the Blackstone common units on such date. Additionally, the calculation of the compensation expense assumes forfeiture rates based upon historical turnover rates, ranging from 4.2% to 12.5% annually by employee class. Blackstone is accounting for these cash settled awards as a liability. | |||||||||||||||||||||||||
Blackstone paid $0.6 million, $0.4 million and $0.4 million to non-senior managing director employees in settlement of phantom units for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Blackstone Holdings Partnership Units | |||||||||||||||||||||||||
At the time of the Reorganization, Blackstone’s predecessor owners and selected advisers received 827,516,625 Blackstone Holdings Partnership Units, of which 387,805,088 were vested and 439,711,537 were to vest over a period of up to 8 years from the IPO date. Subsequent to the Reorganization, the Partnership has granted Blackstone Holdings Partnership Units to newly hired senior managing directors. The Partnership has accounted for the unvested Blackstone Holdings Partnership Units as compensation expense over the vesting period. The fair values have been derived based on the closing price of Blackstone’s common units on the date of the grant, or $31 (based on the initial public offering price per Blackstone common unit) for those units issued at the time of the Reorganization, multiplied by the number of unvested awards and expensed over the assumed service period which ranges from 1 to 9 years. Additionally, the calculation of the compensation expense assumes a forfeiture rate of up to 12.5%, based on historical experience. | |||||||||||||||||||||||||
In November 2009, the Partnership modified equity awards issued in connection with a deferred compensation plan to, among other things: (a) provide that deferred compensation payments to participating employees and senior managing directors generally would be satisfied by delivery of Blackstone common units instead of delivery of Partnership Units, (b) delay the delivery of common units (following the applicable vesting dates) until anticipated trading window periods, to better facilitate participants’ liquidity to meet tax obligations, and (c) ensure compliance with deferred compensation taxation rules. As the fair value of Partnership Units on grant date is based on the closing price of Blackstone common units, there was no change in the fair value of these awards as a result of the modification. As a result, there was no additional impact to compensation expense. | |||||||||||||||||||||||||
Equity-Based Awards with Performance Conditions | |||||||||||||||||||||||||
The Partnership has also granted certain equity-based awards with performance requirements. These awards are based on the performance of certain businesses over a three to five year period beginning January 2012, relative to a predetermined threshold. Blackstone has determined that it is probable that the relevant performance thresholds will be exceeded in future periods and, therefore, has recorded compensation expense since the beginning of the performance period of $61.8 million. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
17. RELATED PARTY TRANSACTIONS | |||||||||
Affiliate Receivables and Payables | |||||||||
Due from Affiliates and Due to Affiliates consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Due from Affiliates | |||||||||
Accrual for Potential Clawback of Previously Distributed Carried Interest | $ | 1,561 | $ | 165,322 | |||||
Primarily Interest Bearing Advances Made on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees for Investments in Blackstone Funds | 151,493 | 155,302 | |||||||
Amounts Due from Portfolio Companies and Funds | 307,926 | 259,196 | |||||||
Investments Redeemed in Non-Consolidated Funds of Hedge Funds | 259,787 | 39,507 | |||||||
Management and Performance Fees Due from Non-Consolidated Funds | 325,389 | 343,846 | |||||||
Payments Made on Behalf of Non-Consolidated Entities | 133,790 | 150,317 | |||||||
Advances Made to Certain Non-Controlling Interest Holders and Blackstone Employees | 12,098 | 6,577 | |||||||
$ | 1,192,044 | $ | 1,120,067 | ||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Due to Affiliates | |||||||||
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | $ | 1,235,168 | $ | 1,218,488 | |||||
Accrual for Potential Repayment of Previously Received Performance Fees | 4,270 | 267,116 | |||||||
Due to Note Holders of Consolidated CLO Vehicles | 123,929 | 191,128 | |||||||
Due to Certain Non-Controlling Interest Holders | — | 201,286 | |||||||
Distributions Received on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees | 11,293 | 12,506 | |||||||
Payable to Affiliates for Consolidated Funds | 29,803 | 81,589 | |||||||
Distributions Received on Behalf of Blackstone Entities | 22,815 | 20,295 | |||||||
Payments Made by Non-Consolidated Entities | 9,581 | 10,236 | |||||||
$ | 1,436,859 | $ | 2,002,644 | ||||||
Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties | |||||||||
The founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of December 31, 2013 and 2012, such investments aggregated $1.0 billion and $939.4 million, respectively. Their share of the Net Income Attributable to Redeemable Non-Controlling and Non-Controlling Interests in Consolidated Entities aggregated $224.7 million, $114.1 million and $109.4 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Revenues Earned from Affiliates | |||||||||
Management and Advisory Fees, Net earned from affiliates totaled $253.9 million, $254.7 million and $317.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. Fees relate primarily to transaction and monitoring fees which are made in the ordinary course of business and under terms that would have been obtained from unaffiliated third parties. | |||||||||
Loans to Affiliates | |||||||||
Loans to affiliates consist of interest-bearing advances to certain Blackstone individuals to finance their investments in certain Blackstone Funds. These loans earn interest at Blackstone’s cost of borrowing and such interest totaled $3.4 million, $4.4 million and $3.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Contingent Repayment Guarantee | |||||||||
Blackstone and its personnel who have received Carried Interest distributions have guaranteed payment on a several basis (subject to a cap) to the Carry Funds of any clawback obligation with respect to the excess Carried Interest allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Fees represents amounts previously paid to Blackstone Holdings and non-controlling interest holders that would need to be repaid to the Blackstone Funds if the Carry Funds were to be liquidated based on the fair value of their underlying investments as of December 31, 2013. See Note 18. “Commitments and Contingencies—Contingencies—Contingent Obligations (Clawback)”. | |||||||||
Aircraft and Other Services | |||||||||
In the normal course of business, Blackstone personnel have made use of aircraft owned as personal assets by Stephen A. Schwarzman and an aircraft owned jointly as a personal asset by Hamilton E. James, Blackstone’s President and Chief Operating Officer, and Jonathan D. Gray, Blackstone’s Global Head of Real Estate and a Director of Blackstone (each such aircraft, “Personal Aircraft”). Mr. Schwarzman paid for his purchases of his Personal Aircraft himself and bears all operating, personnel and maintenance costs associated with their operation. Each of Mr. James and Mr. Gray paid for his respective interest in their jointly owned Personal Aircraft himself and bears all operating, personnel and maintenance costs associated with its operation. Payment by Blackstone for the use of the Personal Aircraft by Blackstone employees is made at market rates. | |||||||||
In addition, on occasion, Mr. Schwarzman and his family have made use of an aircraft in which Blackstone owns a fractional interest, as well as other assets of Blackstone. Mr. Schwarzman is charged for his and his family’s personal use of Blackstone assets based on market rates and usage. Personal use of Blackstone resources is also reimbursed to Blackstone at market rates. | |||||||||
The transactions described herein are not material to the Consolidated Financial Statements. | |||||||||
Tax Receivable Agreements | |||||||||
Blackstone used a portion of the proceeds from the IPO and the sale of non-voting common units to Beijing Wonderful Investments to purchase interests in the predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for Blackstone common units on a one-for-one basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone’s wholly owned subsidiaries would otherwise be required to pay in the future. | |||||||||
One of the subsidiaries of the Partnership which is a corporate taxpayer has entered into tax receivable agreements with each of the predecessor owners and additional tax receivable agreements have been executed, and will continue to be executed, with newly-admitted senior managing directors and others who acquire Blackstone Holdings Partnership Units. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements. | |||||||||
During the fourth quarter of 2013 and 2011, the effective tax rate of the corporate taxpayers was reduced due to the adoption of New York State and New York City tax laws for sourcing of revenue for apportionment purposes. This resulted in a reduction of $20.5 million and $197.8 million, respectively, due to pre-IPO owners and the others mentioned above. Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $1.2 billion over the next 15 years. The after-tax net present value of these estimated payments totals $407.4 million assuming a 15% discount rate and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not conditioned upon continued ownership of Blackstone equity interests by the pre-IPO owners and the others mentioned above. Subsequent to December 31, 2013, payments totaling $80.6 million were made to certain pre-IPO owners in accordance with the tax receivable agreements and related tax benefits the Partnership received for the 2012 taxable year. | |||||||||
Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to Blackstone common units, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Acquisition of Ownership Interests from Non-Controlling Interest Holders in the Supplemental Disclosure of Non-Cash Investing and Financing Activities in the Consolidated Statements of Cash Flows. | |||||||||
Other | |||||||||
Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||||||||||
18. COMMITMENTS AND CONTINGENCIES | |||||||||||||||||||||||||
Commitments | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
The Partnership leases office space under non-cancelable lease and sublease agreements, which expire on various dates through 2032. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord, and are recognized on a straight-line basis over the term of the lease agreement. Rent expense includes base contractual rent and variable costs such as building expenses, utilities, taxes and insurance. Rent expense for the years ended December 31, 2013, 2012 and 2011, was $78.6 million, $74.8 million and $72.7 million, respectively. At December 31, 2013 and 2012, the Partnership maintained irrevocable standby letters of credit and cash deposits as security for the leases of $9.0 million and $9.4 million, respectively. As of December 31, 2013, the aggregate minimum future payments, net of sublease income, required on the operating leases are as follows: | |||||||||||||||||||||||||
2014 | $ | 71,286 | |||||||||||||||||||||||
2015 | 67,388 | ||||||||||||||||||||||||
2016 | 61,299 | ||||||||||||||||||||||||
2017 | 56,379 | ||||||||||||||||||||||||
2018 | 54,279 | ||||||||||||||||||||||||
Thereafter | 189,150 | ||||||||||||||||||||||||
Total | $ | 499,781 | |||||||||||||||||||||||
Investment Commitments | |||||||||||||||||||||||||
Blackstone had $1.5 billion of investment commitments as of December 31, 2013 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. The consolidated Blackstone Funds had signed investment commitments of $54.6 million as of December 31, 2013 which includes $25.2 million of signed investment commitments for portfolio company acquisitions in the process of closing. | |||||||||||||||||||||||||
Contingencies | |||||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||||
Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the on-going business activities and/or acquisitions of their Portfolio Companies. There is no direct recourse to the Partnership to fulfill such obligations. To the extent that underlying funds are required to fulfill guarantee obligations, the Partnership’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated real estate funds was $4.9 million as of December 31, 2013. | |||||||||||||||||||||||||
On March 28, 2012, the Blackstone Holdings Partnerships entered into a guaranty agreement with a lending institution in which the Holdings Partnerships guarantee certain loans held by employees for investment in Blackstone funds. The amount guaranteed as of December 31, 2013 was $60.3 million. | |||||||||||||||||||||||||
Litigation | |||||||||||||||||||||||||
From time to time, Blackstone is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, Blackstone does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows. | |||||||||||||||||||||||||
Contingent Obligations (Clawback) | |||||||||||||||||||||||||
Carried Interest is subject to clawback to the extent that the Carried Interest received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. The lives of the carry funds with a potential clawback obligation, including available contemplated extensions, are currently anticipated to expire at various points through 2018. Further extensions of such terms may be implemented under given circumstances. | |||||||||||||||||||||||||
For financial reporting purposes, the general partners have recorded a liability for potential clawback obligations to the limited partners of some of the carry funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Carried Interest distributions with respect to such fund’s realized investments. | |||||||||||||||||||||||||
During the year ended December 31, 2013, the Blackstone general partners paid a cash clawback obligation of $89.7 million relating to Blackstone Communications Partners (“BCOM”) of which $70.6 million was paid by Blackstone Holdings and $19.1 million by current and former Blackstone personnel. | |||||||||||||||||||||||||
The following table presents the clawback obligations by segment: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Segment | Blackstone | Current and | Total | Blackstone | Current and | Total | |||||||||||||||||||
Holdings | Former | Holdings | Former | ||||||||||||||||||||||
Personnel | Personnel | ||||||||||||||||||||||||
Private Equity | $ | (5 | ) | $ | 151 | $ | 146 | $ | 69,302 | $ | 133,852 | $ | 203,154 | ||||||||||||
Real Estate | 1,501 | 518 | 2,019 | 32,152 | 31,223 | 63,375 | |||||||||||||||||||
Credit | 1,213 | 892 | 2,105 | 340 | 247 | 587 | |||||||||||||||||||
Total | $ | 2,709 | $ | 1,561 | $ | 4,270 | $ | 101,794 | $ | 165,322 | $ | 267,116 | |||||||||||||
A portion of the Carried Interest paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Consolidated Financial Statements of the Partnership, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At December 31, 2013, $420.9 million was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
EMPLOYEE BENEFIT PLANS | ' |
19. EMPLOYEE BENEFIT PLANS | |
The Partnership provides a 401(k) plan (the “Plan”) for eligible employees in the United States. For certain administrative employees who are eligible for participation in the Plan, the Partnership makes a non-elective contribution of 2% of such employee’s annual compensation up to a maximum of one thousand six hundred dollars regardless of whether the employee makes any elective contributions to the Plan. In addition, the Partnership will also contribute 50% of certain eligible employee’s contribution to the Plan with a maximum matching contribution of one thousand six hundred dollars. For the years ended December 31, 2013, 2012 and 2011, the Partnership incurred expenses of $1.7 million, $1.5 million and $1.4 million in connection with such Plan. | |
The Partnership provides a defined contribution plan for eligible employees in the United Kingdom (“U.K. Plan”). All United Kingdom employees are eligible to contribute to the U.K. Plan after three months of qualifying service. The Partnership contributes a percentage of an employee’s annual salary, subject to United Kingdom statutory restrictions, on a monthly basis for administrative employees of the Partnership based upon the age of the employee. For the years ended December 31, 2013, 2012 and 2011, the Partnership incurred expenses of $0.4 million, $0.4 million and $0.3 million, respectively, in connection with the U.K. Plan. |
REGULATED_ENTITIES
REGULATED ENTITIES | 12 Months Ended |
Dec. 31, 2013 | |
REGULATED ENTITIES | ' |
20. REGULATED ENTITIES | |
The Partnership has certain entities that are registered broker-dealers that are subject to the minimum net capital requirements of the United States Securities and Exchange Commission (“SEC”). These entities have continuously operated in excess of these requirements. The Partnership also has two entities based in London which are subject to the capital requirements of the U.K. Financial Conduct Authority. These entities have continuously operated in excess of their regulatory capital requirements. | |
Certain other U.S. and non-U.S. entities are subject to various investment adviser, commodity pool operator and trader regulations. This includes a number of U.S. entities that are registered as investment advisers with the SEC. | |
The regulatory capital requirements referred to above may restrict the Partnership’s ability to withdraw capital from its entities. At December 31, 2013, $24.3 million of net assets of consolidated entities may be restricted as to the payment of cash dividends and advances to the Partnership. |
SEGMENT_REPORTING
SEGMENT REPORTING | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SEGMENT REPORTING | ' | ||||||||||||||||||||||||
21. SEGMENT REPORTING | |||||||||||||||||||||||||
Blackstone transacts its primary business in the United States and substantially all of its revenues are generated domestically. | |||||||||||||||||||||||||
Blackstone conducts its alternative asset management and financial advisory businesses through five segments: | |||||||||||||||||||||||||
• | Private Equity—Blackstone’s Private Equity segment comprises its management of private equity funds and certain multi-asset class investment funds. | ||||||||||||||||||||||||
• | Real Estate—Blackstone’s Real Estate segment primarily comprises its management of global, European focused and Asian focused opportunistic real estate funds. In addition, the segment has debt investment funds and a publicly traded REIT targeting non-controlling real estate debt-related investment opportunities in the public and private markets, primarily in the United States and Europe. | ||||||||||||||||||||||||
• | Hedge Fund Solutions—Blackstone’s Hedge Fund Solutions segment is comprised principally of Blackstone Alternative Asset Management (“BAAM”), an institutional solutions provider utilizing hedge funds across a variety of strategies. | ||||||||||||||||||||||||
• | Credit—Blackstone’s Credit segment, which principally includes GSO Capital Partners LP (“GSO”), manages credit-focused products within private debt and public market strategies. GSO’s products include senior credit-focused funds, distressed debt funds, mezzanine funds, general credit-focused funds, registered investment companies, separately managed accounts and CLO vehicles. | ||||||||||||||||||||||||
• | Financial Advisory—Blackstone’s Financial Advisory segment comprises its financial and strategic advisory services, restructuring and reorganization advisory services, capital markets services and Park Hill Group, which provides fund placement services for alternative investment funds. | ||||||||||||||||||||||||
These business segments are differentiated by their various sources of income. The Private Equity, Real Estate, Hedge Fund Solutions and Credit segments primarily earn their income from management fees and investment returns on assets under management, while the Financial Advisory segment primarily earns its income from fees related to investment banking services and advice and fund placement services. | |||||||||||||||||||||||||
Blackstone uses Economic Income (“EI”) as a key measure of value creation, a benchmark of its performance and in making resource deployment and compensation decisions across its five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstone’s IPO and long-term retention programs outside of annual deferred compensation and other corporate actions, including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages. Economic Net Income (“ENI”) represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes. | |||||||||||||||||||||||||
Management makes operating decisions and assesses the performance of each of Blackstone’s business segments based on financial and operating metrics and data that is presented without the consolidation of any of the Blackstone Funds that are consolidated into the Consolidated Financial Statements. Consequently, all segment data excludes the assets, liabilities and operating results related to the Blackstone Funds. | |||||||||||||||||||||||||
The following table presents the financial data for Blackstone’s five segments as of and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge Fund | Credit | Financial | Total | ||||||||||||||||||||
Equity | Solutions | Advisory | Segments | ||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 368,146 | $ | 565,182 | $ | 409,321 | $ | 398,158 | $ | — | $ | 1,740,807 | |||||||||||||
Advisory Fees | — | — | — | — | 410,514 | 410,514 | |||||||||||||||||||
Transaction and Other Fees, Net | 96,988 | 79,675 | 623 | 28,586 | 1,105 | 206,977 | |||||||||||||||||||
Management Fee Offsets | (5,683 | ) | (22,821 | ) | (3,387 | ) | (40,329 | ) | — | (72,220 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 459,451 | 622,036 | 406,557 | 386,415 | 411,619 | 2,286,078 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 329,993 | 486,773 | — | 127,192 | — | 943,958 | |||||||||||||||||||
Incentive Fees | — | 45,862 | 207,735 | 220,736 | — | 474,333 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 398,232 | 1,651,700 | — | 108,078 | — | 2,158,010 | |||||||||||||||||||
Incentive Fees | — | (28,753 | ) | 7,718 | 1,107 | — | (19,928 | ) | |||||||||||||||||
Total Performance Fees | 728,225 | 2,155,582 | 215,453 | 457,113 | — | 3,556,373 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Realized | 88,026 | 52,359 | 27,613 | 4,098 | (1,625 | ) | 170,471 | ||||||||||||||||||
Unrealized | 161,749 | 350,201 | (9,306 | ) | 13,951 | 739 | 517,334 | ||||||||||||||||||
Total Investment Income (Loss) | 249,775 | 402,560 | 18,307 | 18,049 | (886 | ) | 687,805 | ||||||||||||||||||
Interest and Dividend Revenue | 15,602 | 21,563 | 7,605 | 18,146 | 8,020 | 70,936 | |||||||||||||||||||
Other | 4,259 | 3,384 | 688 | 527 | 1,450 | 10,308 | |||||||||||||||||||
Total Revenues | 1,457,312 | 3,205,125 | 648,610 | 880,250 | 420,203 | 6,611,500 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 236,120 | 294,222 | 136,470 | 186,514 | 262,314 | 1,115,640 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 38,953 | 148,837 | — | 69,411 | — | 257,201 | |||||||||||||||||||
Incentive Fees | — | 23,878 | 65,793 | 111,244 | — | 200,915 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 342,733 | 566,837 | — | 57,147 | — | 966,717 | |||||||||||||||||||
Incentive Fees | — | (15,015 | ) | 2,856 | 508 | — | (11,651 | ) | |||||||||||||||||
Total Compensation and Benefits | 617,806 | 1,018,759 | 205,119 | 424,824 | 262,314 | 2,528,822 | |||||||||||||||||||
Other Operating Expenses | 124,137 | 116,391 | 66,966 | 96,940 | 82,205 | 486,639 | |||||||||||||||||||
Total Expenses | 741,943 | 1,135,150 | 272,085 | 521,764 | 344,519 | 3,015,461 | |||||||||||||||||||
Economic Income | $ | 715,369 | $ | 2,069,975 | $ | 376,525 | $ | 358,486 | $ | 75,684 | $ | 3,596,039 | |||||||||||||
Segment Assets | $ | 4,444,227 | $ | 7,496,591 | $ | 1,325,631 | $ | 2,381,603 | $ | 781,469 | $ | 16,429,521 | |||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge Fund | Credit | Financial | Total | ||||||||||||||||||||
Equity | Solutions | Advisory | Segments | ||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 348,594 | $ | 551,322 | $ | 346,210 | $ | 345,277 | $ | — | $ | 1,591,403 | |||||||||||||
Advisory Fees | — | — | — | — | 357,417 | 357,417 | |||||||||||||||||||
Transaction and Other Fees, Net | 100,080 | 85,681 | 188 | 40,875 | 295 | 227,119 | |||||||||||||||||||
Management Fee Offsets | (5,926 | ) | (28,609 | ) | (1,414 | ) | (5,004 | ) | — | (40,953 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 442,748 | 608,394 | 344,984 | 381,148 | 357,712 | 2,134,986 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 109,797 | 165,114 | — | 52,511 | — | 327,422 | |||||||||||||||||||
Incentive Fees | — | 25,656 | 83,433 | 192,375 | — | 301,464 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 148,381 | 683,764 | — | 162,045 | — | 994,190 | |||||||||||||||||||
Incentive Fees | — | (119 | ) | 9,042 | (38,234 | ) | — | (29,311 | ) | ||||||||||||||||
Total Performance Fees | 258,178 | 874,415 | 92,475 | 368,697 | — | 1,593,765 | |||||||||||||||||||
Investment Income | |||||||||||||||||||||||||
Realized | 25,823 | 45,302 | 7,270 | 15,611 | 1,392 | 95,398 | |||||||||||||||||||
Unrealized | 85,337 | 90,875 | 8,517 | 4,769 | 1,348 | 190,846 | |||||||||||||||||||
Total Investment Income | 111,160 | 136,177 | 15,787 | 20,380 | 2,740 | 286,244 | |||||||||||||||||||
Interest and Dividend Revenue | 13,556 | 14,448 | 2,139 | 9,330 | 7,157 | 46,630 | |||||||||||||||||||
Other | 2,417 | 894 | 3,816 | (1,174 | ) | (804 | ) | 5,149 | |||||||||||||||||
Total Revenues | 828,059 | 1,634,328 | 459,201 | 778,381 | 366,805 | 4,066,774 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 222,709 | 271,122 | 119,731 | 182,077 | 235,137 | 1,030,776 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 3,679 | 62,418 | — | 30,336 | — | 96,433 | |||||||||||||||||||
Incentive Fees | — | 13,060 | 23,080 | 103,902 | — | 140,042 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 58,555 | 165,482 | — | 97,562 | — | 321,599 | |||||||||||||||||||
Incentive Fees | — | (583 | ) | 1,317 | (45,262 | ) | — | (44,528 | ) | ||||||||||||||||
Total Compensation and Benefits | 284,943 | 511,499 | 144,128 | 368,615 | 235,137 | 1,544,322 | |||||||||||||||||||
Other Operating Expenses | 130,845 | 123,714 | 57,809 | 84,488 | 84,589 | 481,445 | |||||||||||||||||||
Total Expenses | 415,788 | 635,213 | 201,937 | 453,103 | 319,726 | 2,025,767 | |||||||||||||||||||
Economic Income | $ | 412,271 | $ | 999,115 | $ | 257,264 | $ | 325,278 | $ | 47,079 | $ | 2,041,007 | |||||||||||||
Segment Assets | $ | 4,625,310 | $ | 5,599,759 | $ | 876,881 | $ | 2,004,529 | $ | 749,000 | $ | 13,855,479 | |||||||||||||
December 31, 2011 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge | Credit | Financial | Total | ||||||||||||||||||||
Equity | Fund | Advisory | Segments | ||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 331,997 | $ | 394,778 | $ | 315,863 | $ | 238,547 | $ | — | $ | 1,281,185 | |||||||||||||
Advisory Fees | — | — | — | — | 382,240 | 382,240 | |||||||||||||||||||
Transaction and Other Fees, Net | 133,004 | 109,510 | 2,798 | 1,880 | 321 | 247,513 | |||||||||||||||||||
Management Fee Offsets | (27,073 | ) | (4,950 | ) | (980 | ) | (390 | ) | — | (33,393 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 437,928 | 499,338 | 317,681 | 240,037 | 382,561 | 1,877,545 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 37,393 | 22,844 | — | 78,670 | — | 138,907 | |||||||||||||||||||
Incentive Fees | — | 9,629 | 11,472 | 67,928 | — | 89,029 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 33,490 | 913,418 | — | 24,610 | — | 971,518 | |||||||||||||||||||
Incentive Fees | — | 3,658 | 774 | (29,360 | ) | — | (24,928 | ) | |||||||||||||||||
Total Performance Fees | 70,883 | 949,549 | 12,246 | 141,848 | — | 1,174,526 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Realized | 44,988 | 27,972 | 17,722 | 11,299 | 594 | 102,575 | |||||||||||||||||||
Unrealized | 9,476 | 92,648 | (19,031 | ) | (708 | ) | 304 | 82,689 | |||||||||||||||||
Total Investment Income (Loss) | 54,464 | 120,620 | (1,309 | ) | 10,591 | 898 | 185,264 | ||||||||||||||||||
Interest and Dividend Revenue | 13,749 | 12,902 | 2,025 | 3,369 | 6,799 | 38,844 | |||||||||||||||||||
Other | 1,810 | (1,061 | ) | 7,902 | (853 | ) | (383 | ) | 7,415 | ||||||||||||||||
Total Revenues | 578,834 | 1,581,348 | 338,545 | 394,992 | 389,875 | 3,283,594 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 217,556 | 236,771 | 128,959 | 128,588 | 248,695 | 960,569 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 1,465 | 10,103 | — | 32,047 | — | 43,615 | |||||||||||||||||||
Incentive Fees | — | 4,564 | 3,498 | 47,850 | — | 55,912 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | (2,229 | ) | 221,140 | — | 19,033 | — | 237,944 | ||||||||||||||||||
Incentive Fees | — | 3,106 | 234 | (24,099 | ) | — | (20,759 | ) | |||||||||||||||||
Total Compensation and Benefits | 216,792 | 475,684 | 132,691 | 203,419 | 248,695 | 1,277,281 | |||||||||||||||||||
Other Operating Expenses | 120,918 | 103,859 | 65,072 | 49,955 | 81,538 | 421,342 | |||||||||||||||||||
Total Expenses | 337,710 | 579,543 | 197,763 | 253,374 | 330,233 | 1,698,623 | |||||||||||||||||||
Economic Income | $ | 241,124 | $ | 1,001,805 | $ | 140,782 | $ | 141,618 | $ | 59,642 | $ | 1,584,971 | |||||||||||||
The following table reconciles the Total Segments to Blackstone’s Income Before Provision for Taxes and Total Assets as of and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 6,611,500 | $ | 1,668 | (a) | $ | 6,613,168 | ||||||||||||||||||
Expenses | $ | 3,015,461 | $ | 851,279 | (b) | $ | 3,866,740 | ||||||||||||||||||
Other Income | $ | — | $ | 402,133 | (c) | $ | 402,133 | ||||||||||||||||||
Economic Income | $ | 3,596,039 | $ | (447,478 | )(d) | $ | 3,148,561 | ||||||||||||||||||
Total Assets | $ | 16,429,521 | $ | 13,249,085 | (e) | $ | 29,678,606 | ||||||||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 4,066,774 | $ | (47,333 | )(a) | $ | 4,019,441 | ||||||||||||||||||
Expenses | $ | 2,025,767 | $ | 1,234,914 | (b) | $ | 3,260,681 | ||||||||||||||||||
Other Income | $ | — | $ | 256,145 | (c) | $ | 256,145 | ||||||||||||||||||
Economic Income | $ | 2,041,007 | $ | (1,026,102 | )(d) | $ | 1,014,905 | ||||||||||||||||||
Total Assets | $ | 13,855,479 | $ | 15,076,073 | (e) | $ | 28,931,552 | ||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 3,283,594 | $ | (31,018 | )(a) | $ | 3,252,576 | ||||||||||||||||||
Expenses | $ | 1,698,623 | $ | 1,689,446 | (b) | $ | 3,388,069 | ||||||||||||||||||
Other Income | $ | — | $ | 212,751 | (c) | $ | 212,751 | ||||||||||||||||||
Economic Income | $ | 1,584,971 | $ | (1,507,713 | )(d) | $ | 77,258 | ||||||||||||||||||
(a) | The Revenues adjustment represents management and performance fees earned from Blackstone Funds which were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues. | ||||||||||||||||||||||||
(b) | The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses. | ||||||||||||||||||||||||
(c) | The Other Income adjustment results from the following: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss | $ | (5,575 | ) | $ | 43,393 | $ | 21,000 | ||||||||||||||||||
Fund Expenses Added in Consolidation | 30,727 | 37,548 | 30,129 | ||||||||||||||||||||||
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | (16,916 | ) | |||||||||||||||||||||
Transaction-Related Other Income (Loss) | (4,891 | ) | (28,353 | ) | 178,538 | ||||||||||||||||||||
Total Consolidation Adjustments and Reconciling Items | $ | 402,133 | $ | 256,145 | $ | 212,751 | |||||||||||||||||||
(d) | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Economic Income | $ | 3,596,039 | $ | 2,041,007 | $ | 1,584,971 | |||||||||||||||||||
Adjustments | |||||||||||||||||||||||||
Amortization of Intangibles | (106,643 | ) | (150,148 | ) | (220,865 | ) | |||||||||||||||||||
IPO and Acquisition-Related Charges | (722,707 | ) | (1,079,511 | ) | (1,269,932 | ) | |||||||||||||||||||
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | (16,916 | ) | |||||||||||||||||||||
Total Consolidation Adjustments and Reconciling Items | (447,478 | ) | (1,026,102 | ) | (1,507,713 | ) | |||||||||||||||||||
Income Before Provision for Taxes | $ | 3,148,561 | $ | 1,014,905 | $ | 77,258 | |||||||||||||||||||
(e) | The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
22. SUBSEQUENT EVENTS | |
There have been no events since December 31, 2013 that require recognition or disclosure in the Consolidated Financial Statements. |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||
23. QUARTERLY FINANCIAL DATA (UNAUDITED) | |||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 1,246,473 | $ | 1,440,470 | $ | 1,216,845 | $ | 2,709,380 | |||||||||
Expenses | 835,101 | 914,762 | 786,405 | 1,330,472 | |||||||||||||
Other Income | 67,210 | 40,966 | 87,952 | 206,005 | |||||||||||||
Income Before Provision for Taxes | $ | 478,582 | $ | 566,674 | $ | 518,392 | $ | 1,584,913 | |||||||||
Net Income | $ | 427,589 | $ | 510,592 | $ | 460,915 | $ | 1,493,823 | |||||||||
Net Income Attributable to The Blackstone Group L.P. | $ | 167,635 | $ | 211,148 | $ | 171,164 | $ | 621,255 | |||||||||
Net Income Per Common Unit—Basic and Diluted | |||||||||||||||||
Common Units—Basic | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 1.05 | |||||||||
Common Units—Diluted | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 1.04 | |||||||||
Distributions Declared (a) | $ | 0.42 | $ | 0.3 | $ | 0.23 | $ | 0.23 | |||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Revenues | $ | 952,036 | $ | 627,203 | $ | 1,223,089 | $ | 1,217,113 | |||||||||
Expenses | 783,793 | 739,819 | 851,390 | 885,679 | |||||||||||||
Other Income (Loss) | 288,142 | 248,230 | (135,960 | ) | (144,267 | ) | |||||||||||
Income Before Provision for Taxes | $ | 456,385 | $ | 135,614 | $ | 235,739 | $ | 187,167 | |||||||||
Net Income | $ | 417,632 | $ | 94,277 | $ | 196,502 | $ | 121,471 | |||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $ | 58,325 | $ | (74,964 | ) | $ | 128,824 | $ | 106,413 | ||||||||
Net Income (Loss) Per Common Unit—Basic and Diluted | |||||||||||||||||
Common Units—Basic | $ | 0.12 | $ | (0.14 | ) | $ | 0.24 | $ | 0.19 | ||||||||
Common Units—Diluted | $ | 0.11 | $ | (0.14 | ) | $ | 0.24 | $ | 0.19 | ||||||||
Distributions Declared (a) | $ | 0.22 | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||
(a) | Distributions declared reflects the calendar date of the declaration of each distribution. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | ||||
The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. | ||||
All intercompany balances and transactions have been eliminated in consolidation. | ||||
Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable and that it has made all necessary adjustments (consisting of only normal recurring items) so that the consolidated financial statements are presented fairly. Actual results could differ from those estimates and such differences could be material. | ||||
Consolidation | ' | |||
Consolidation | ||||
The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner is presumed to have control. Although the Partnership has a non-controlling interest in the Blackstone Holdings Partnerships, the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the presumption of control by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling interests to reflect the economic interests of the limited partners of Blackstone Holdings. | ||||
In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. VIEs qualify for the deferral of the consolidation guidance if all of the following conditions have been met: | ||||
(a) | The entity has all of the attributes of an investment company as defined in the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies (“Investment Company Guide”), or does not have all the attributes of an investment company but it is an entity for which it is acceptable based on industry practice to apply measurement principles that are consistent with the Investment Company Guide, | |||
(b) | The reporting entity does not have explicit or implicit obligations to fund any losses of the entity that could potentially be significant to the entity, and | |||
(c) | The entity is not a securitization or asset-backed financing entity or an entity that was formerly considered a qualifying special purpose entity. | |||
Where the VIEs have qualified for the deferral of the current consolidation guidance, the analysis is based on previous consolidation guidance. This guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a variable interest entity and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would be expected to absorb a majority of the variability of the entity. Under both guidelines, the Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion continually. In evaluating whether the Partnership is the primary beneficiary, Blackstone evaluates its economic interests in the entity held either directly by the Partnership and its affiliates or indirectly through employees. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. | ||||
Assets of consolidated variable interest entities that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. | ||||
Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. | ||||
Business Combinations | ' | |||
Business Combinations | ||||
The Partnership accounts for business combinations using the acquisition method of accounting. On the acquisition date, the Partnership recognizes identifiable assets acquired, liabilities assumed and any non-controlling interests in the acquiree at the acquisition date fair values. Transaction costs are expensed as incurred. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
Revenues primarily consist of management and advisory fees, performance fees, investment income, interest and dividend revenue and other. | ||||
Management and Advisory Fees, Net—Management and Advisory Fees, Net are comprised of management fees, including base management fees, transaction and other fees, advisory fees and management fee reductions and offsets. | ||||
The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital, or in some cases, a fixed fee. Base management fees are recognized based on contractual terms specified in the underlying investment advisory agreements. | ||||
Transaction and other fees (including monitoring fees) are fees charged directly to managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees directly paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. | ||||
Management fee offsets are reductions to management fees payable by our limited partners, which are granted based on the amount they reimburse Blackstone for placement fees. | ||||
Advisory fees consist of advisory retainer and transaction-based fee arrangements related to financial and strategic advisory services, restructuring and reorganization advisory services, capital markets services and fund placement services for alternative investment funds. Advisory retainer fees are recognized when services for the transactions are complete, in accordance with terms set forth in individual agreements. Transaction-based fees are recognized when (a) there is evidence of an arrangement with a client, (b) agreed upon services have been provided, (c) fees are fixed or determinable, and (d) collection is reasonably assured. Fund placement fees are recognized as earned upon the acceptance by a fund of capital or capital commitments. | ||||
Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Management fees paid by limited partners to the Blackstone Funds and passed on to Blackstone are not considered affiliate revenues. | ||||
Performance Fees—Performance Fees earned on the performance of Blackstone’s hedge fund structures (“Incentive Fees”) are recognized based on fund performance during the period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each hedge fund’s governing agreements. Accrued but unpaid Incentive Fees charged directly to investors in Blackstone’s offshore hedge funds as of the reporting date are recorded within Due from Affiliates in the Consolidated Statements of Financial Condition. Accrued but unpaid Incentive Fees on onshore funds as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition. Incentive Fees are realized at the end of a measurement period, typically annually. Once realized, such fees are not subject to clawback or reversal. | ||||
In certain fund structures, specifically in private equity, real estate and certain Hedge Fund Solutions and credit-focused funds (“Carry Funds”), performance fees (“Carried Interest”) are allocated to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the Carried Interest that would be due to the Partnership for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Carried Interest to reflect either (a) positive performance resulting in an increase in the Carried Interest allocated to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to Carried Interest allocated to the general partner. In each scenario, it is necessary to calculate the Carried Interest on cumulative results compared to the Carried Interest recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Carried Interest allocations once previously recognized Carried Interest allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Carried Interest over the life of a fund. Accrued but unpaid Carried Interest as of the reporting date is reflected in Investments in the Consolidated Statements of Financial Condition. | ||||
Carried Interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Carried Interest is subject to clawback to the extent that the Carried Interest received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Carried Interest, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling interest holders that would need to be repaid to the Blackstone Funds if the Blackstone Carry Funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. | ||||
Investment Income (Loss)—Investment Income (Loss) represents the unrealized and realized gains and losses on the Partnership’s principal investments, including its investments in Blackstone Funds that are not consolidated, its equity method investments, and other principal investments. Investment Income (Loss) is realized when the Partnership redeems all or a portion of its investment or when the Partnership receives cash income, such as dividends or distributions. Unrealized Investment Income (Loss) results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized. | ||||
Interest and Dividend Revenue—Interest and Dividend Revenue comprises primarily interest and dividend income earned on principal investments held by Blackstone. | ||||
Other Revenue—Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars. | ||||
Fair Value of Financial Instruments | ' | |||
Fair Value of Financial Instruments | ||||
GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. | ||||
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: | ||||
• | Level I—Quoted prices are available in active markets for identical financial instruments as of the reporting date. The type of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. | |||
• | Level II—Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, government and agency securities, less liquid and restricted equity securities, certain over-the-counter derivatives where the fair value is based on observable inputs, and certain funds of hedge funds and proprietary investments in which Blackstone has the ability to redeem its investment at net asset value at, or within three months of, the reporting date. | |||
• | Level III—Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment grade residual interests in securitizations, certain corporate bonds and loans held within CLO vehicles, certain over-the-counter derivatives where the fair value is based on unobservable inputs and certain funds of hedge funds that use net asset value per share to determine fair value in which Blackstone may not have the ability to redeem its investment at net asset value at, or within three months of, the reporting date. Blackstone may not have the ability to redeem its investment at net asset value at, or within three months of, the reporting date if an investee fund manager has the ability to limit the amount of redemptions, and/or the ability to side pocket investments, irrespective of whether such ability has been exercised. Senior and subordinate notes issued by CLO vehicles are classified within Level III of the fair value hierarchy. | |||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. | ||||
Transfers between levels of the fair value hierarchy are recognized at the beginning of the reporting period. | ||||
Level II Valuation Techniques | ||||
Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including corporate loans and bonds held by Blackstone’s consolidated CLO vehicles, those held within Blackstone’s Treasury Cash Management Strategies and debt securities sold, not yet purchased and interests in investment funds. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. | ||||
The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: | ||||
• | Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. | |||
• | Investment Funds held by the consolidated Blackstone Funds are valued using net asset value per share as described in Level III Valuation Techniques—Funds of Hedge Funds. Certain investments in investment funds are classified within Level II of the fair value hierarchy as the investment can be redeemed at, or within three months of, the reporting date. | |||
• | Freestanding Derivatives and Derivative Instruments Designated as Fair Value Hedges are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. | |||
Level III Valuation Techniques | ||||
In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies, real estate properties, certain funds of hedge funds and credit-focused investments. | ||||
Private Equity Investments—The fair values of private equity investments are determined by reference to projected net earnings, earnings before interest, taxes, depreciation and amortization (“EBITDA”), the discounted cash flow method, public market or private transactions, valuations for comparable companies and other measures which, in many cases, are unaudited at the time received. Valuations may be derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company such as EBITDA by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. | ||||
Real Estate Investments—The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable assets, if any, and replacement costs among other measures. The methods used to estimate the fair value of real estate investments include the discounted cash flow method and/or capitalization rates (“cap rates”) analysis. Valuations may be derived by reference to observable valuation measures for comparable companies or assets (for example, multiplying a key performance metric of the investee company or asset, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to an exit EBITDA multiple or capitalization rate. Additionally, where applicable, projected distributable cash flow through debt maturity will be considered in support of the investment’s fair value. | ||||
Funds of Hedge Funds—The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. | ||||
Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, the institution of gates on redemptions or the suspension of redemptions or an ability to side pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be redeemable at, or within three months of, the reporting date. A side pocket is used by hedge funds and funds of hedge funds to separate investments that may lack a readily ascertainable value, are illiquid or are subject to liquidity restriction. Redemptions are generally not permitted until the investments within a side pocket are liquidated or it is deemed that the conditions existing at the time that required the investment to be included in the side pocket no longer exist. As the timing of either of these events is uncertain, the timing at which the Partnership may redeem an investment held in a side pocket cannot be estimated. Investments for which fair value is measured using NAV per share are reflected within the fair value hierarchy based on the existence of redemption restrictions, if any, as described above. Further disclosure on instruments for which fair value is measured using NAV per share is presented in Note 5. “Net Asset Value as Fair Value”. | ||||
Credit-Focused Investments—The fair values of credit-focused investments are generally determined on the basis of prices between market participants provided by reputable dealers or pricing services. In some instances, Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. | ||||
Credit-Focused Liabilities—Credit-focused liabilities comprise senior and subordinate loans issued by Blackstone’s consolidated CLO vehicles. Such liabilities are valued using a discounted cash flow method. | ||||
Level III Valuation Process | ||||
Investments classified within Level III of the fair value hierarchy are valued on a quarterly basis, taking into consideration any changes in Blackstone’s weighted-average cost of capital assumptions, discounted cash flow projections and exit multiple assumptions, as well as any changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by an independent valuation party, at least annually for all investments, and quarterly for certain investments, to corroborate the values determined by management. The valuations of Blackstone’s investments are reviewed quarterly by a valuation committee which is chaired by Blackstone’s Vice Chairman and includes senior heads of each of Blackstone’s businesses, as well as representatives of legal and finance. Each quarter, the valuations of Blackstone’s investments are also reviewed by the Audit Committee in a meeting attended by the chairman of the valuation committee. The valuations are further tested by comparison to actual sales prices obtained on disposition of the investments. | ||||
Investments, at Fair Value | ' | |||
Investments, at Fair Value | ||||
The Blackstone Funds are accounted for as investment companies under the Investment Company Guide, and reflect their investments, including majority-owned and controlled investments (the “Portfolio Companies”), at fair value. Blackstone has retained the specialized accounting for the consolidated Blackstone Funds. Thus, such consolidated funds’ investments are reflected in Investments on the Consolidated Statements of Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date (i.e., the exit price). | ||||
Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). | ||||
For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. Accounting for these financial instruments at fair value is consistent with how the Partnership accounts for its other principal investments. Loans extended to third parties are recorded within Accounts Receivable within the Consolidated Statements of Financial Condition. Debt securities for which the fair value option has been elected are recorded within Investments. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. | ||||
In addition, the Partnership has elected the fair value option for the assets and liabilities of CLO vehicles that are consolidated as of January 1, 2010, as a result of the initial adoption of variable interest entity consolidation guidance. The Partnership has also elected the fair value option for CLO vehicles consolidated as a result of the acquisitions of CLO management contracts or the acquisition of the share capital of CLO managers. The adjustment resulting from the difference between the fair value of assets and liabilities for each of these events is presented as a transition and acquisition adjustment to Appropriated Partners’ Capital. The recognition of the initial difference between the fair value of assets and liabilities of CLO vehicles consolidated as a result of the acquisition of management contracts or CLO managers subsequent to the initial adoption of revised accounting guidance effective January 1, 2010, as an adjustment to Appropriated Partners’ Capital, is currently under review by the Emerging Issues Task Force (“EITF”). Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and Liabilities within Loans Payable for the amounts due to unaffiliated third parties and Due to Affiliates for the amounts held by non-consolidated affiliates. The methodology for measuring the fair value of such assets and liabilities is consistent with the methodology applied to private equity, real estate and credit-focused investments. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income subsequent to adoption and acquisition are presented within Net Gains (Losses) from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses. Amounts attributable to Non-Controlling Interests in Consolidated Entities have a corresponding adjustment to Appropriated Partners’ Capital. | ||||
The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. | ||||
Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option” to the Consolidated Financial Statements. | ||||
Security and loan transactions are recorded on a trade date basis. | ||||
Equity Method Investments | ' | |||
Equity Method Investments | ||||
Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. As the underlying investments of the Partnership’s equity method investments in Blackstone Funds are reported at fair value, the carrying value of the Partnership’s equity method investments approximates fair value. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. | ||||
Cash Held By Blackstone Funds and Other | ' | |||
Cash Held By Blackstone Funds and Other | ||||
Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. | ||||
Accounts Receivable | ' | |||
Accounts Receivable | ||||
Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectibility. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. | ||||
Intangibles and Goodwill | ' | |||
Intangibles and Goodwill | ||||
Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Carried Interest. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from 3 to 20 years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the accompanying Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. | ||||
Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO, the acquisition of GSO in 2008 and the acquisition of Strategic Partners in 2013. Goodwill is reviewed for impairment at least annually, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value, a two-step quantitative assessment is performed to (a) calculate the fair value of the operating segment and compare it to its carrying value, and (b) if the carrying value exceeds its fair value, to measure an impairment loss | ||||
Furniture, Equipment and Leasehold Improvements | ' | |||
Furniture, Equipment and Leasehold Improvements | ||||
Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. | ||||
Foreign Currency | ' | |||
Foreign Currency | ||||
In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are recorded in Other Comprehensive Income and allocated to Non-Controlling Interests in Consolidated Entities, as applicable. | ||||
Comprehensive Income | ' | |||
Comprehensive Income | ||||
Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. | ||||
Non-Controlling Interests in Consolidated Entities | ' | |||
Non-Controlling Interests in Consolidated Entities | ||||
Non-Controlling Interests in Consolidated Entities represent the component of Partners’ Capital in consolidated Blackstone Funds held by third party investors and employees. The percentage interests held by third parties and employees is adjusted for general partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period. In addition, all non-controlling interests in consolidated Blackstone Funds are attributed a share of income (loss) arising from the respective funds and a share of other comprehensive income, if applicable. Income (Loss) is allocated to non-controlling interests in consolidated entities based on the relative ownership interests of third party investors and employees after considering any contractual arrangements that govern the allocation of income (loss) such as fees allocable to The Blackstone Group L.P. | ||||
Redeemable Non-Controlling Interests in Consolidated Entities | ' | |||
Redeemable Non-Controlling Interests in Consolidated Entities | ||||
Non-controlling interests related to funds of hedge funds and certain other credit-focused funds are subject to annual, semi-annual or quarterly redemption by investors in these funds following the expiration of a specified period of time (typically between one and three years), or may be withdrawn subject to a redemption fee in the funds of hedge funds and certain credit-focused funds during the period when capital may not be withdrawn. As limited partners in these types of funds have been granted redemption rights, amounts relating to third party interests in such consolidated funds are presented as Redeemable Non-Controlling Interests in Consolidated Entities within the Consolidated Statements of Financial Condition. When redeemable amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. For all consolidated funds in which redemption rights have not been granted, non-controlling interests are presented within Partners’ Capital in the Consolidated Statements of Financial Condition as Non-Controlling Interests in Consolidated Entities. | ||||
Non-Controlling Interests in Blackstone Holdings | ' | |||
Non-Controlling Interests in Blackstone Holdings | ||||
Non-Controlling Interests in Blackstone Holdings represent the component of Partners’ Capital in the consolidated Blackstone Holdings Partnerships held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. | ||||
Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling Interests in Blackstone Holdings. This residual attribution is based on the year to date average percentage of Holdings Partnership Units held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. | ||||
Compensation and Benefits | ' | |||
Compensation and Benefits | ||||
Compensation and Benefits—Compensation—Compensation and Benefits consists of (a) employee compensation, comprising salary and bonus, and benefits paid and payable to employees and senior managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors. Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date, taking into consideration expected forfeitures, and expensed over the vesting period on a straight-line basis. Equity-based awards that do not require future service are expensed immediately. Cash settled equity-based awards are classified as liabilities and are remeasured at the end of each reporting period. | ||||
Compensation and Benefits—Performance Fee—Performance Fee Compensation consists of Carried Interest and Incentive Fee allocations, and may in future periods also include allocations of investment income from Blackstone’s firm investments, to employees and senior managing directors participating in certain profit sharing initiatives. Such compensation expense is subject to both positive and negative adjustments. Unlike Carried Interest and Incentive Fees, compensation expense is based on the performance of individual investments held by a fund rather than on a fund by fund basis. Compensation received from advisory clients in the form of securities of such clients may also be allocated to employees and senior managing directors. | ||||
Other Income | ' | |||
Other Income | ||||
Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. | ||||
Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. | ||||
In 2013 and 2011, Other Income included the amount attributable to the Reversal of the Tax Receivable Agreement Liability. This is income attributable to a change in tax rate as discussed in Note 14. “Income Taxes”. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. jurisdictions. Accordingly, these entities in some cases are subject to New York City unincorporated business taxes or non-U.S. income taxes. In addition, certain of the wholly owned subsidiaries of the Partnership and the Blackstone Holdings Partnerships will be subject to federal, state and local corporate income taxes at the entity level and the related tax provision attributable to the Partnership’s share of this income tax is reflected in the Consolidated Financial Statements. | ||||
Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Position. | ||||
Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. | ||||
Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records uncertain tax positions on the basis of a two-step process: (a) determination is made whether it is more likely than not that the tax positions will be sustained based on the technical merits of the position and (b) those tax positions that meet the more-likely-than-not threshold are recognized as the largest amount of tax benefit that is greater than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Blackstone recognizes accrued interest and penalties related to uncertain tax positions in General, Administrative and Other expenses within the Consolidated Statements of Operations. | ||||
Net Income (Loss) Per Common Unit | ' | |||
Net Income (Loss) Per Common Unit | ||||
Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units and unvested participating common units outstanding for the period. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. | ||||
Repurchase and Reverse Repurchase Agreements | ' | |||
Repurchase and Reverse Repurchase Agreements | ||||
Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt, represent collateralized financing transactions. Such transactions are recorded in the Consolidated Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of repurchase and reverse repurchase agreements approximates fair value. | ||||
The Partnership manages credit exposure arising from repurchase agreements and reverse repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. | ||||
The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. | ||||
Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. | ||||
Securities Sold, Not Yet Purchased | ' | |||
Securities Sold, Not Yet Purchased | ||||
Securities Sold, Not Yet Purchased consist of equity and debt securities that the Partnership has borrowed and sold. The Partnership is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. The Partnership is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. | ||||
Securities Sold, Not Yet Purchased are recorded at fair value in the Consolidated Statements of Financial Condition. | ||||
Derivative Instruments | ' | |||
Derivative Instruments | ||||
The Partnership recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date the Partnership enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). For a fair value hedge, Blackstone records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in current period earnings in General, Administrative and Other in the Consolidated Statements of Operations. Changes in the fair value of derivatives designated as hedging instruments caused by factors other than changes in the risk being hedged, which are excluded from the assessment of hedge effectiveness, are recognized in current period earnings. | ||||
The Partnership formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and the Partnership’s evaluation of effectiveness of its hedged transaction. At least monthly, the Partnership also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The Partnership may also at any time remove a designation of a fair value hedge. The fair value of the derivative instrument is reflected within Other Assets in the Consolidated Statements of Financial Condition. | ||||
For freestanding derivative contracts, the Partnership presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are held by the Partnership, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets are recorded within Investments and freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. | ||||
The Partnership has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides the Partnership, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. | ||||
Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. | ||||
Blackstone’s disclosures regarding offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. | ||||
Affiliates | ' | |||
Affiliates | ||||
Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. | ||||
Distributions | ' | |||
Distributions | ||||
Distributions are reflected in the consolidated financial statements when declared. | ||||
Recent Accounting Developments | ' | |||
Recent Accounting Developments | ||||
In April 2011, the Financial Accounting Standards Board (“FASB”) amended existing guidance for agreements to transfer financial assets that both entitle and obligate the transferor to repurchase or redeem the financial assets before their maturity. The amendments removed from the assessment of effective control (a) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee and (b) the collateral maintenance implementation guidance related to that criterion. The guidance was effective for the first interim or annual period beginning on or after December 15, 2011. Blackstone enters into repurchase agreements that are currently accounted for as collateralized financing transactions. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In May 2011, the FASB issued amended guidance on fair value measurements to achieve common fair value measurement and disclosure requirements under GAAP and International Financial Reporting Standards. The amended guidance specified that the concepts of highest and best use and valuation premise in a fair value measurement are relevant only when measuring the fair value of nonfinancial assets and are not relevant when measuring the fair value of financial assets or of liabilities. The amendments included requirements specific to measuring the fair value of those instruments, such as equity interests used as consideration in a business combination. An entity should measure the fair value of its own equity instrument from the perspective of a market participant that holds the instrument as an asset. With respect to financial instruments that are managed as part of a portfolio, an exception to fair value requirements was provided. That exception permits a reporting entity to measure the fair value of such financial assets and financial liabilities at the price that would be received to sell a net asset position for a particular risk or to transfer a net liability position for a particular risk in an orderly transaction between market participants at the measurement date. The amendments also clarified that premiums and discounts should only be applied if market participants would do so when pricing the asset or liability. Premiums and discounts related to the size of an entity’s holding (for example, a blockage factor) rather than as a characteristic of the asset or liability (for example, a control premium) are not permitted in a fair value measurement. | ||||
The guidance also required enhanced disclosures about fair value measurements, including, among other things, (a) for fair value measurements categorized within Level III of the fair value hierarchy, (1) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (2) the valuation process used by the reporting entity, and (3) a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs, if any, and (b) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed (for example, a financial instrument that is measured at amortized cost in the statement of financial position but for which fair value is disclosed). The guidance also amended disclosure requirements for significant transfers between Level I and Level II and now requires disclosure of all transfers between Levels I and II in the fair value hierarchy. | ||||
The amended guidance was effective for interim and annual periods beginning after December 15, 2011. As the impact of the guidance is primarily limited to enhanced disclosures, adoption did not have a material impact on the Partnership’s financial statements. | ||||
In June 2011, the FASB issued amended guidance on the presentation of comprehensive income. The amendments provided an entity with an option to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity was required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. In addition, an entity was required to present on the face of the financial statements reclassification adjustments for items that were reclassified from other comprehensive income to net income in the statement(s) where the components of net income and the components of other comprehensive income were presented. The guidance was effective for fiscal years, and interim periods within those years beginning after December 15, 2011 and was to be applied on a retrospective basis. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In December 2011, the FASB issued a deferral of the effective date for certain disclosures relating to comprehensive income, specifically with respect to the presentation of reclassifications of items out of accumulated other comprehensive income. The deferral was effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. | ||||
In February 2013, the FASB issued guidance on the reporting of amounts reclassified out of accumulated other comprehensive income. The guidance did not change the requirement for reporting net income or other comprehensive income in financial statements. However, the amendments required an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. | ||||
The guidance was effective prospectively for periods beginning after December 15, 2012. Adoption had no impact on the Partnership’s financial statements. | ||||
In September 2011, the FASB issued enhanced guidance on testing goodwill for impairment. The amended guidance provides an entity with the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. Under the amended guidance, an entity has the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. The amended guidance includes examples of events or circumstances that an entity must consider in evaluating whether it is more likely than not that the fair value of reporting units is less than its carrying amount. The amended guidance no longer permits the carry forward of detailed calculations of a reporting unit’s fair value from a prior year. The guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Blackstone adopted the guidance on October 1, 2012, the date of annual impairment testing. The amended guidance did not have a material impact on the Partnership’s financial statements. | ||||
In December 2011, the FASB issued guidance to enhance disclosures about financial instruments and derivative instruments that are either (a) offset or (b) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset. Under the amended guidance, an entity is required to disclose quantitative information relating to recognized assets and liabilities that are offset or subject to an enforceable master netting arrangement or similar agreement, including (a) the gross amounts of those recognized assets and liabilities, (b) the amounts offset to determine the net amount presented in the statement of financial position, and (c) the net amount presented in the statement of financial position. With respect to amounts subject to an enforceable master netting arrangement or similar agreement which are not offset, disclosure is required of (a) the amounts related to recognized financial instruments and other derivative instruments, (b) the amount related to financial collateral (including cash collateral), and (c) the overall net amount after considering amounts that have not been offset. The guidance was effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods and retrospective application is required. As the amendments were limited to disclosure only, adoption did not have a material impact on the Partnership’s financial statements. | ||||
In January 2013, the FASB issued guidance to clarify the scope of disclosures about offsetting assets and liabilities. The amendments clarified that the scope of guidance issued in December 2011 to enhance disclosures around financial instruments and derivative instruments that are either (a) offset, or (b) subject to a master netting agreement or similar agreement, irrespective of whether they are offset, applies to derivatives, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset or subject to an enforceable master netting arrangement or similar agreement. The amendments were effective for interim and annual periods beginning on or after January 1, 2013. Adoption did not have a material impact on the Partnership’s financial statements. | ||||
In February 2013, the FASB issued guidance on the measurement of joint and several liability arrangements in which the total amount of the obligation is fixed at the reporting date. The guidance requires entities to measure obligations from joint and several liability arrangements for which the total amount of the obligation within the scope of the guidance is fixed at the reporting date as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In March 2013, the FASB issued guidance on a parent entity’s accounting for cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity. When a parent entity ceases to have a controlling financial interest in a subsidiary or a group of assets that is a business within a foreign entity, any related portion of the total cumulative translation adjustment should be released into net income if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For an equity method investment that is a foreign entity, partial sale guidance applies. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. For an equity method investment that is not a foreign entity, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the guidance clarifies that the sale of an investment in a foreign entity includes both (a) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment) and (b) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The guidance shall be applied on a prospective basis for fiscal years, and interim periods within those years, beginning after December 15, 2013. The guidance should be applied to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In April 2013, the FASB issued guidance on when and how an entity should prepare its financial statements using the liquidation basis of accounting. The guidance requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Financial statements prepared using the liquidation basis of accounting shall measure and present assets at the amount of the expected cash proceeds from liquidation. The presentation of assets shall include any items that had not previously been recognized under GAAP but that it expects to either sell in liquidation or use in settling liabilities. Liabilities shall be recognized and measured in accordance with GAAP that otherwise applies to those liabilities. The guidance requires an entity to accrue and separately present the costs that it expects to incur and the income that it expects to earn during the expected duration of the liquidation, including any costs associated with sale or settlement of those assets and liabilities. The guidance requires disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The guidance is effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013 and interim periods therein. The guidance should be applied prospectively. Adoption is not expected to have a material impact on the Partnership’s financial statements. | ||||
In June 2013, the FASB issued guidance to clarify the characteristics of an investment company and to provide guidance for assessing whether an entity is an investment company. Consistent with existing guidance for investment companies, all investments are to be measured at fair value including non-controlling ownership interests in other investment companies. There are no changes to the current requirements relating to the retention of specialized accounting in the consolidated financial statements of a non-investment company parent. The guidance is effective for interim and annual periods beginning after December 15, 2013 and early application is prohibited. Adoption is not expected to have a material impact on the Partnership’s financial statements. |
ACQUISITIONS_GOODWILL_AND_INTA1
ACQUISITIONS, GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | ' | ||||||||||||
The following is a summary of the estimated fair values of assets acquired and liabilities assumed for the Harbourmaster acquisition: | |||||||||||||
Purchase Price—Cash | $ | 232,044 | |||||||||||
Fair Value of Assets Acquired and Liabilities Assumed | |||||||||||||
Assets | |||||||||||||
Cash | $ | 75,072 | |||||||||||
Investments in CLOs | 9,305 | ||||||||||||
Accounts Receivable | 9,329 | ||||||||||||
Other Assets | 17,651 | ||||||||||||
Intangible Assets | 142,221 | ||||||||||||
253,578 | |||||||||||||
Liabilities Assumed | |||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 21,534 | ||||||||||||
Net Assets Acquired | $ | 232,044 | |||||||||||
Intangible Assets, Net | ' | ||||||||||||
Intangible Assets, Net consists of the following: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Finite-Lived Intangible Assets / Contractual Rights | $ | 1,594,128 | $ | 1,536,244 | |||||||||
Accumulated Amortization | (1,033,380 | ) | (937,709 | ) | |||||||||
Intangible Assets, Net | $ | 560,748 | $ | 598,535 | |||||||||
Changes in Partnership's Intangible Assets, Net | ' | ||||||||||||
Changes in the Partnership’s Intangible Assets, Net consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, Beginning of Year | $ | 598,535 | $ | 595,488 | $ | 779,311 | |||||||
Amortization Expense | (95,671 | ) | (139,174 | ) | (207,591 | ) | |||||||
Acquisitions | 57,884 | 142,221 | 23,768 | ||||||||||
Balance, End of Year | $ | 560,748 | $ | 598,535 | $ | 595,488 | |||||||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
Investments consist of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | $ | 12,521,248 | $ | 14,026,745 | |||||||||||||||||||||
Equity Method Investments | 3,309,879 | 2,582,504 | |||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 1,104,800 | 1,411,680 | |||||||||||||||||||||||
Performance Fees | 4,674,792 | 2,780,217 | |||||||||||||||||||||||
Other Investments | 118,804 | 46,124 | |||||||||||||||||||||||
$ | 21,729,523 | $ | 20,847,270 | ||||||||||||||||||||||
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income - Net Gains from Fund Investment Activities in Condensed Consolidated Statements of Operations | ' | ||||||||||||||||||||||||
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income—Net Gains from Fund Investment Activities in the Consolidated Statements of Operations: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains (Losses) | $ | 205,741 | $ | (3,502 | ) | $ | 226,427 | ||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (26,800 | ) | 58,602 | (308,364 | ) | ||||||||||||||||||||
Realized and Net Change in Unrealized Gains (Losses) from Blackstone Funds | 178,941 | 55,100 | (81,937 | ) | |||||||||||||||||||||
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 202,723 | 201,045 | 96,872 | ||||||||||||||||||||||
Other Income—Net Gains from Fund Investment Activities | $ | 381,664 | $ | 256,145 | $ | 14,935 | |||||||||||||||||||
Summarized Financial Information of Partnership's Equity Method Investments | ' | ||||||||||||||||||||||||
The summarized financial information of the Partnership’s equity method investments for December 31, 2013 are as follows: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real | Hedge | Credit | Other (a) | Total | ||||||||||||||||||||
Equity | Estate | Fund | |||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | $ | 35,516,755 | $ | 57,053,881 | $ | 11,529,163 | $ | 12,150,918 | $ | 26,839 | $ | 116,277,556 | |||||||||||||
Other Assets | 389,265 | 3,441,977 | 1,114,404 | 2,678,742 | 128,826 | 7,753,214 | |||||||||||||||||||
Total Assets | $ | 35,906,020 | $ | 60,495,858 | $ | 12,643,567 | $ | 14,829,660 | $ | 155,665 | $ | 124,030,770 | |||||||||||||
Liabilities and Partners’ Capital | |||||||||||||||||||||||||
Debt | $ | 1,691,018 | $ | 3,013,762 | $ | 63,830 | $ | 1,165,405 | $ | 967 | $ | 5,934,982 | |||||||||||||
Other Liabilities | 54,909 | 886,445 | 689,964 | 1,131,557 | 14,222 | 2,777,097 | |||||||||||||||||||
Total Liabilities | 1,745,927 | 3,900,207 | 753,794 | 2,296,962 | 15,189 | 8,712,079 | |||||||||||||||||||
Partners’ Capital | 34,160,093 | 56,595,651 | 11,889,773 | 12,532,698 | 140,476 | 115,318,691 | |||||||||||||||||||
Total Liabilities and Partners’ Capital | $ | 35,906,020 | $ | 60,495,858 | $ | 12,643,567 | $ | 14,829,660 | $ | 155,665 | $ | 124,030,770 | |||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Interest Income | $ | 294,171 | $ | 140,879 | $ | 224 | $ | 630,902 | $ | 4 | $ | 1,066,180 | |||||||||||||
Other Income | 10,580 | 752,184 | 89,632 | 30,937 | 101,214 | 984,547 | |||||||||||||||||||
Interest Expense | (37,846 | ) | (51,544 | ) | (310 | ) | (68,973 | ) | — | (158,673 | ) | ||||||||||||||
Other Expenses | (88,957 | ) | (108,580 | ) | (71,326 | ) | (105,706 | ) | (65,197 | ) | (439,766 | ) | |||||||||||||
Net Realized and Unrealized Gain from Investments | 9,002,197 | 13,225,141 | 1,127,173 | 1,979,078 | 2,944 | 25,336,533 | |||||||||||||||||||
Net Income | $ | 9,180,145 | $ | 13,958,080 | $ | 1,145,393 | $ | 2,466,238 | $ | 38,965 | $ | 26,788,821 | |||||||||||||
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. | ||||||||||||||||||||||||
The summarized financial information of the Partnership’s equity method investments for December 31, 2012 are as follows: | |||||||||||||||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real | Hedge | Credit | Other (a) | Total | ||||||||||||||||||||
Equity | Estate | Fund | |||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Statement of Financial Condition | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Investments | $ | 31,308,915 | $ | 40,230,098 | $ | 8,193,041 | $ | 11,066,214 | $ | 22,345 | $ | 90,820,613 | |||||||||||||
Other Assets | 1,289,961 | 1,714,990 | 1,173,627 | 2,516,388 | 46,178 | 6,741,144 | |||||||||||||||||||
Total Assets | $ | 32,598,876 | $ | 41,945,088 | $ | 9,366,668 | $ | 13,582,602 | $ | 68,523 | $ | 97,561,757 | |||||||||||||
Liabilities and Partners’ Capital | |||||||||||||||||||||||||
Debt | $ | 1,478,929 | $ | 1,336,305 | $ | 65,103 | $ | 1,043,595 | $ | 972 | $ | 3,924,904 | |||||||||||||
Other Liabilities | 91,519 | 703,412 | 642,925 | 1,401,910 | 20,192 | 2,859,958 | |||||||||||||||||||
Total Liabilities | 1,570,448 | 2,039,717 | 708,028 | 2,445,505 | 21,164 | 6,784,862 | |||||||||||||||||||
Partners’ Capital | 31,028,428 | 39,905,371 | 8,658,640 | 11,137,097 | 47,359 | 90,776,895 | |||||||||||||||||||
Total Liabilities and Partners’ Capital | $ | 32,598,876 | $ | 41,945,088 | $ | 9,366,668 | $ | 13,582,602 | $ | 68,523 | $ | 97,561,757 | |||||||||||||
Statement of Operations | |||||||||||||||||||||||||
Interest Income | $ | 350,153 | $ | 128,624 | $ | 194 | $ | 712,490 | $ | — | $ | 1,191,461 | |||||||||||||
Other Income | 13,255 | 294,105 | 36,797 | 7,283 | 76,809 | 428,249 | |||||||||||||||||||
Interest Expense | (23,060 | ) | (39,103 | ) | (1,024 | ) | (60,082 | ) | — | (123,269 | ) | ||||||||||||||
Other Expenses | (48,926 | ) | (64,569 | ) | (60,114 | ) | (101,451 | ) | (48,744 | ) | (323,804 | ) | |||||||||||||
Net Realized and Unrealized Gain from Investments | 3,916,697 | 4,979,027 | 798,892 | 1,362,351 | 1,014 | 11,057,981 | |||||||||||||||||||
Net Income | $ | 4,208,119 | $ | 5,298,084 | $ | 774,745 | $ | 1,920,591 | $ | 29,079 | $ | 12,230,618 | |||||||||||||
(a) | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. | ||||||||||||||||||||||||
Realized and Net Change in Unrealized Gains (Losses) on Investments Held by Blackstone's Treasury Cash Management Strategies | ' | ||||||||||||||||||||||||
The following table presents the realized and net change in unrealized gains (losses) on investments held by Blackstone’s Treasury Cash Management Strategies: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains (Losses) | $ | (5,793 | ) | $ | 9,095 | $ | 9,738 | ||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (9,342 | ) | (502 | ) | 641 | ||||||||||||||||||||
$ | (15,135 | ) | $ | 8,593 | $ | 10,379 | |||||||||||||||||||
Performance Fees Allocated to Funds | ' | ||||||||||||||||||||||||
Performance Fees allocated to the general partner in respect of performance of certain Carry Funds, funds of hedge funds and credit-focused funds were as follows: | |||||||||||||||||||||||||
Private | Real | Hedge Fund | Credit | Total | |||||||||||||||||||||
Equity | Estate | Solutions | |||||||||||||||||||||||
Performance Fees, December 31, 2012 | $ | 780,474 | $ | 1,633,279 | $ | 6,214 | $ | 360,250 | $ | 2,780,217 | |||||||||||||||
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 614,554 | 2,084,222 | 68,609 | 214,372 | 2,981,757 | ||||||||||||||||||||
Foreign Exchange Gain | — | 7,733 | — | — | 7,733 | ||||||||||||||||||||
Fund Distributions | (423,168 | ) | (456,628 | ) | (65,355 | ) | (149,764 | ) | (1,094,915 | ) | |||||||||||||||
Performance Fees, December 31, 2013 | $ | 971,860 | $ | 3,268,606 | $ | 9,468 | $ | 424,858 | $ | 4,674,792 | |||||||||||||||
Realized and Net Change in Unrealized Gains (Losses), Other Investments | ' | ||||||||||||||||||||||||
The following table presents Blackstone’s realized and net change in unrealized gains (losses) in other investments: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized Gains | $ | 13,468 | $ | 743 | $ | 948 | |||||||||||||||||||
Net Change in Unrealized Gains (Losses) | (6,758 | ) | (371 | ) | (21,968 | ) | |||||||||||||||||||
$ | 6,710 | $ | 372 | $ | (21,020 | ) | |||||||||||||||||||
NET_ASSET_VALUE_AS_FAIR_VALUE_
NET ASSET VALUE AS FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments | ' | ||||||||||||||||
A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2013 is presented below: | |||||||||||||||||
Strategy | Fair Value | Unfunded | Redemption | Redemption | |||||||||||||
Commitments | Frequency | Notice | |||||||||||||||
(if currently | Period | ||||||||||||||||
eligible) | |||||||||||||||||
Diversified Instruments | $ | 142,547 | $ | 3,590 | (a | ) | (a | ) | |||||||||
Credit Driven | 180,996 | — | (b | ) | (b | ) | |||||||||||
Event Driven | 121,455 | — | (c | ) | (c | ) | |||||||||||
Equity | 424,971 | — | (d | ) | (d | ) | |||||||||||
Commodities | 58,621 | — | (e | ) | (e | ) | |||||||||||
$ | 928,590 | $ | 3,590 | ||||||||||||||
(a) | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 65% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 28% of the fair value of the investments in this category represent investments in hedge funds that are in the process of liquidating. Distributions from these funds will be received as underlying investments are liquidated. The time at which this redemption restriction may lapse cannot be estimated. The remaining 7% of investments in this category are redeemable as of the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 18% of Blackstone’s investments in this category. | ||||||||||||||||
(b) | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 94% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 6% of the total fair value in the credit driven category are subject to redemption restrictions at the discretion of the investee fund manager who may choose (but may not have exercised such ability) to side-pocket such investments. As of the reporting date, the investee fund manager had not elected to side-pocket any of Blackstone’s investments in this category. | ||||||||||||||||
(c) | The Event Driven category includes investments in hedge funds whose primary investing strategy is to identify certain event-driven investments. Withdrawals are not permitted in this category. Distributions will be received as the underlying investments are liquidated. | ||||||||||||||||
(d) | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Withdrawals are generally not permitted for the investments in this category. Distributions will be received as the underlying investments are liquidated. | ||||||||||||||||
(e) | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Withdrawals are not permitted for investments representing 95% of the fair value of investments in this category. Distributions will be received as the underlying investments are liquidated. The remaining 5% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments | ' | ||||||||||||||||||||||||||||||||
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. | |||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | ||||||||||||||||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | ||||||||||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Blackstone—Other | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | 1,994,276 | $ | 8,521 | $ | 1,083,140 | $ | 2,676 | $ | 689,300 | $ | 55,270 | $ | 636,555 | $ | 4,116 | |||||||||||||||||
Foreign Currency Contracts | 166,066 | 1,480 | 163,787 | 1,015 | 16,771 | 74 | 7,025 | 81 | |||||||||||||||||||||||||
Total Return Swaps | 326,929 | 342 | — | — | — | — | — | — | |||||||||||||||||||||||||
Credit Default Swaps | — | — | 10,000 | 591 | — | — | — | — | |||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Foreign Currency Contracts | 396,569 | 30,830 | 239,037 | 10,018 | 435,229 | 37,898 | 301,551 | 17,101 | |||||||||||||||||||||||||
Interest Rate Contracts | 62,193 | 3,726 | — | — | 165,517 | 6,132 | 90,500 | 772 | |||||||||||||||||||||||||
Total | $ | 2,946,033 | $ | 44,899 | $ | 1,495,964 | $ | 14,300 | $ | 1,306,817 | $ | 99,374 | $ | 1,035,631 | $ | 22,070 | |||||||||||||||||
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations | ' | ||||||||||||||||||||||||||||||||
The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Fair Value Hedges—Interest Rate Swaps | |||||||||||||||||||||||||||||||||
Hedge Ineffectiveness | $ | — | $ | 548 | $ | 4,649 | |||||||||||||||||||||||||||
Excluded from Assessment of Effectiveness | $ | — | $ | (938 | ) | $ | (3,465 | ) | |||||||||||||||||||||||||
Realized Gain | $ | — | $ | 22,941 | $ | — | |||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Realized Gains (Losses) | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | 34,206 | $ | (2,752 | ) | $ | (8,634 | ) | |||||||||||||||||||||||||
Foreign Currency Contracts | 4,022 | (3,816 | ) | 1,739 | |||||||||||||||||||||||||||||
Credit Default Swaps | 752 | (1 | ) | (111 | ) | ||||||||||||||||||||||||||||
Other | — | — | (153 | ) | |||||||||||||||||||||||||||||
Total | $ | 38,980 | $ | (6,569 | ) | $ | (7,159 | ) | |||||||||||||||||||||||||
Net Change in Unrealized Gains (Losses) | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | $ | (1,947 | ) | $ | 12,134 | $ | 8,718 | ||||||||||||||||||||||||||
Foreign Currency Contracts | 2,636 | (5,523 | ) | (33,408 | ) | ||||||||||||||||||||||||||||
Other | 392 | — | (7 | ) | |||||||||||||||||||||||||||||
Total | $ | 1,081 | $ | 6,611 | $ | (24,697 | ) | ||||||||||||||||||||||||||
FAIR_VALUE_OPTION_Tables
FAIR VALUE OPTION (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Financial Instruments for Which Fair Value Option Has Been Elected | ' | ||||||||||||||||||||||||
The following table summarizes the financial instruments for which the fair value option has been elected: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Loans and Receivables | $ | 137,788 | $ | 30,663 | |||||||||||||||||||||
Equity and Preferred Securities | 88,568 | 16,147 | |||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | 8,466,889 | 11,053,513 | |||||||||||||||||||||||
Corporate Bonds | 161,382 | 162,456 | |||||||||||||||||||||||
Other | 41,061 | 18,285 | |||||||||||||||||||||||
$ | 8,895,688 | $ | 11,281,064 | ||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Senior Secured Notes | $ | 8,302,572 | $ | 10,695,136 | |||||||||||||||||||||
Subordinated Notes | 610,435 | 846,471 | |||||||||||||||||||||||
$ | 8,913,007 | $ | 11,541,607 | ||||||||||||||||||||||
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected | ' | ||||||||||||||||||||||||
The following table presents the realized and net change in unrealized gains (losses) on financial instruments on which the fair value option was elected: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Realized | Net Change | Realized | Net Change | Realized | Net Change | ||||||||||||||||||||
Gains | in Unrealized | Gains | in Unrealized | Gains | in Unrealized | ||||||||||||||||||||
(Losses) | Gains | (Losses) | Gains | Gains | |||||||||||||||||||||
(Losses) | (Losses) | (Losses) | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Loans and Receivables | $ | 43 | $ | (1,101 | ) | $ | (308 | ) | $ | (375 | ) | $ | — | $ | (228 | ) | |||||||||
Equity and Preferred Securities | (2,833 | ) | 7,273 | (353 | ) | 500 | — | — | |||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | 37,464 | 172,968 | (35,428 | ) | 554,628 | 76,314 | (396,946 | ) | |||||||||||||||||
Corporate Bonds | 4,510 | (5,058 | ) | 393 | 13,264 | 1,099 | (7,605 | ) | |||||||||||||||||
Other | 2,647 | (476 | ) | 2,425 | 11,889 | 13,296 | 29,908 | ||||||||||||||||||
$ | 41,831 | $ | 173,606 | $ | (33,271 | ) | $ | 579,906 | $ | 90,709 | $ | (374,871 | ) | ||||||||||||
Liabilities | |||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Senior Secured Notes | $ | (6,078 | ) | $ | (485,655 | ) | $ | 17 | $ | (603,250 | ) | $ | 5,798 | $ | 58,067 | ||||||||||
Subordinated Notes | — | 96,991 | — | (69,141 | ) | 4,694 | 44,061 | ||||||||||||||||||
$ | (6,078 | ) | $ | (388,664 | ) | $ | 17 | $ | (672,391 | ) | $ | 10,492 | $ | 102,128 | |||||||||||
Information for Financial Instruments on Which Fair Value Option was Elected | ' | ||||||||||||||||||||||||
The following table presents information for those financial instruments for which the fair value option was elected: | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||
For Financial Assets Past | For Financial Assets Past | ||||||||||||||||||||||||
Due (a) | Due (a) | ||||||||||||||||||||||||
Excess | Fair | Excess | Excess | Fair | Excess | ||||||||||||||||||||
(Deficiency) | Value | (Deficiency) | (Deficiency) | Value | (Deficiency) | ||||||||||||||||||||
of Fair Value | of Fair Value | of Fair Value | of Fair Value | ||||||||||||||||||||||
Over Principal | Over Principal | Over Principal | Over Principal | ||||||||||||||||||||||
Loans and Receivables | $ | (533 | ) | $ | — | $ | — | $ | (292 | ) | $ | — | $ | — | |||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||
Corporate Loans | (281,254 | ) | 57,837 | (176,379 | ) | (586,450 | ) | 35,322 | (73,291 | ) | |||||||||||||||
Corporate Bonds | (1,789 | ) | — | — | (984 | ) | 831 | (44 | ) | ||||||||||||||||
$ | (283,576 | ) | $ | 57,837 | $ | (176,379 | ) | $ | (587,726 | ) | $ | 36,153 | $ | (73,335 | ) | ||||||||||
(a) | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
FAIR_VALUE_MEASUREMENTS_OF_FIN1
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Financial Assets and Liabilities at Fair Value | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) | |||||||||||||||||||||||||||||||||
Investment Funds | $ | — | $ | — | $ | 897,843 | $ | 897,843 | |||||||||||||||||||||||||
Equity Securities | 51,147 | 130,816 | 193,699 | 375,662 | |||||||||||||||||||||||||||||
Partnership and LLC Interests | — | 88,555 | 1,254,903 | 1,343,458 | |||||||||||||||||||||||||||||
Debt Instruments | — | 1,154,902 | 45,495 | 1,200,397 | |||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||||||||||
Corporate Loans | 7,537,661 | 929,228 | 8,466,889 | ||||||||||||||||||||||||||||||
Corporate Bonds | — | 161,382 | — | 161,382 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 30,830 | — | 30,830 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 3,726 | — | 3,726 | |||||||||||||||||||||||||||||
Other | 3,477 | — | 37,584 | 41,061 | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 54,624 | 9,107,872 | 3,358,752 | 12,521,248 | |||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 19,629 | 1,041,039 | 44,132 | 1,104,800 | |||||||||||||||||||||||||||||
Money Market Funds | 173,781 | — | — | 173,781 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 7,423 | 1,098 | — | 8,521 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 1,480 | — | 1,480 | |||||||||||||||||||||||||||||
Total Return Swaps | — | 342 | — | 342 | |||||||||||||||||||||||||||||
Loans and Receivables | — | — | 137,788 | 137,788 | |||||||||||||||||||||||||||||
Other Investments | 87,068 | 17,270 | 14,466 | 118,804 | |||||||||||||||||||||||||||||
$ | 342,525 | $ | 10,169,101 | $ | 3,555,138 | $ | 14,066,764 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles (a) | |||||||||||||||||||||||||||||||||
Senior Secured Notes | $ | — | $ | — | $ | 8,302,572 | $ | 8,302,572 | |||||||||||||||||||||||||
Subordinated Notes | — | — | 610,435 | 610,435 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 10,018 | — | 10,018 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 2,484 | 192 | — | 2,676 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 1,015 | — | 1,015 | |||||||||||||||||||||||||||||
Credit Default Swaps | — | 591 | — | 591 | |||||||||||||||||||||||||||||
Securities Sold, Not Yet Purchased | — | 76,195 | — | 76,195 | |||||||||||||||||||||||||||||
$ | 2,484 | $ | 88,011 | $ | 8,913,007 | $ | 9,003,502 | ||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||
Level I | Level II | Level III | Total | ||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) | |||||||||||||||||||||||||||||||||
Investment Funds | $ | — | $ | 1,799 | $ | 890,465 | $ | 892,264 | |||||||||||||||||||||||||
Equity Securities | 95,898 | 28,654 | 217,060 | 341,612 | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 212 | 12,375 | 581,151 | 593,738 | |||||||||||||||||||||||||||||
Debt Instruments | — | 903,123 | 17,724 | 920,847 | |||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | |||||||||||||||||||||||||||||||||
Corporate Loans | — | 9,775,070 | 1,278,443 | 11,053,513 | |||||||||||||||||||||||||||||
Corporate Bonds | — | 146,625 | 15,831 | 162,456 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 37,898 | — | 37,898 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 6,132 | — | 6,132 | |||||||||||||||||||||||||||||
Other | — | 1,260 | 17,025 | 18,285 | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 96,110 | 10,912,936 | 3,017,699 | 14,026,745 | |||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 672,766 | 737,708 | 1,206 | 1,411,680 | |||||||||||||||||||||||||||||
Money Market Funds | 129,549 | — | — | 129,549 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 486 | 54,784 | — | 55,270 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 74 | — | 74 | |||||||||||||||||||||||||||||
Loans and Receivables | — | — | 30,663 | 30,663 | |||||||||||||||||||||||||||||
Other Investments | 12,443 | 6,783 | 26,898 | 46,124 | |||||||||||||||||||||||||||||
$ | 911,354 | $ | 11,712,285 | $ | 3,076,466 | $ | 15,700,105 | ||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles (a) | |||||||||||||||||||||||||||||||||
Senior Secured Notes | $ | — | $ | — | $ | 10,695,136 | $ | 10,695,136 | |||||||||||||||||||||||||
Subordinated Notes | — | — | 846,471 | 846,471 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Foreign Currency Contracts | — | 17,101 | — | 17,101 | |||||||||||||||||||||||||||||
Freestanding Derivatives—Interest Rate Contracts | — | 772 | — | 772 | |||||||||||||||||||||||||||||
Freestanding Derivatives | |||||||||||||||||||||||||||||||||
Interest Rate Contracts | 277 | 3,839 | — | 4,116 | |||||||||||||||||||||||||||||
Foreign Currency Contracts | — | 81 | — | 81 | |||||||||||||||||||||||||||||
Securities Sold, Not Yet Purchased | — | 226,425 | — | 226,425 | |||||||||||||||||||||||||||||
$ | 277 | $ | 248,218 | $ | 11,541,607 | $ | 11,790,102 | ||||||||||||||||||||||||||
(a) | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, is presumed to have control. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. | ||||||||||||||||||||||||||||||||
Summary of Fair Value Transfers Between Level I and Level II | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the fair value transfers between Level I and Level II for positions that existed as of December 31, 2013 and 2012, respectively: | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Transfers from Level I into Level II (a) | $ | 28,670 | $ | 15,928 | |||||||||||||||||||||||||||||
Transfers from Level II into Level I (b) | $ | 1,308 | $ | 588 | |||||||||||||||||||||||||||||
(a) | Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. | ||||||||||||||||||||||||||||||||
(b) | Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. | ||||||||||||||||||||||||||||||||
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy | ' | ||||||||||||||||||||||||||||||||
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2013: | |||||||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Ranges | Weighted | |||||||||||||||||||||||||||||
Techniques | Inputs | Average (a) | |||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Investment Funds | $ | 897,843 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||
Equity Securities | 112,117 | Discounted Cash Flows | Discount Rate | 9.2% - 26.3% | 12.4 | % | |||||||||||||||||||||||||||
Revenue CAGR | 0.9% - 46.2% | 6.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.0x - 14.0x | 8.9 | x | ||||||||||||||||||||||||||||||
Exit Multiple-P/E | 8.5x - 17.0x | 9.8 | x | ||||||||||||||||||||||||||||||
78,154 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
275 | Market Comparable | EBITDA Multiple | 6.3x - 7.5x | 6.9 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
50 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
3,103 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 557,534 | Discounted Cash Flows | Discount Rate | 5.0% - 22.5% | 9 | % | |||||||||||||||||||||||||||
Revenue CAGR | -0.7% - 17.7% | 5.5 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 3.0x - 23.3x | 9.4 | x | ||||||||||||||||||||||||||||||
Exit Capitalization Rate | 4.3% - 10.5% | 7 | % | ||||||||||||||||||||||||||||||
687,246 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
9,181 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
942 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Debt Instruments | 11,814 | Discounted Cash Flows | Discount Rate | 10.7% - 21.0% | 19.2 | % | |||||||||||||||||||||||||||
Revenue CAGR | 4.8% - 5.5% | 4.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.8x - 11.1x | 10.8 | x | ||||||||||||||||||||||||||||||
Exit Capitalization Rate | 6.4% - 7.5% | 6.7 | % | ||||||||||||||||||||||||||||||
Default Rate | 2.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Rate | 67.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
31,675 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,772 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
234 | Market Comparable | EBITDA Multiple | 6.2x - 8.0x | 6.2 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Assets of Consolidated CLO Vehicles | $ | 615,414 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||
293,382 | Market Comparable | EBITDA Multiple | 3.5x - 11.3x | 7.3 | x | ||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
57,936 | Discounted Cash Flows | Discount Rate | 7.0% - 14.0% | 7.8 | % | ||||||||||||||||||||||||||||
Revenue CAGR | 4.20% | N/A | |||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 8.0x | N/A | |||||||||||||||||||||||||||||||
80 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 3,358,752 | ||||||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 17,040 | Discounted Cash Flows | Default Rate | 2.00% | N/A | ||||||||||||||||||||||||||||
Recovery Rate | 30.0% - 70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
Discount Rate | 6.0% - 8.6% | 6.6 | % | ||||||||||||||||||||||||||||||
16,993 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
10,099 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Loans and Receivables | 137,788 | Discounted Cash Flows | Discount Rate | 11.0% - 14.8% | 12.6 | % | |||||||||||||||||||||||||||
Other Investments | 7,927 | Transaction Price | N/A | N/A | N/A | ||||||||||||||||||||||||||||
3,725 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||||
2,814 | Discounted Cash Flows | Discount Rate | 12.50% | N/A | |||||||||||||||||||||||||||||
Total | $ | 3,555,138 | |||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | $ | 8,913,007 | Discounted Cash Flows | Default Rate | 2.0% -3.0% | 2.1 | % | ||||||||||||||||||||||||||
Recovery Rate | 30.0% - 70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 5.0% -20.0% | 18 | % | ||||||||||||||||||||||||||||||
Discount Rate | 0.4% - 24.2% | 2.6 | % | ||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2012: | |||||||||||||||||||||||||||||||||
Fair Value | Valuation | Unobservable | Ranges | Weighted | |||||||||||||||||||||||||||||
Techniques | Inputs | Average (a) | |||||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||||||
Investments of Consolidated Blackstone Funds | |||||||||||||||||||||||||||||||||
Investment Funds | $ | 890,465 | NAV as Fair Value | N/A | N/A | N/A | |||||||||||||||||||||||||||
Equity Securities | 151,899 | Discounted Cash Flows | Discount Rate | 8.4% - 25.1% | 11.2 | % | |||||||||||||||||||||||||||
Revenue CAGR | 0.7% -83.4% | 5.6 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 5.8x - 11.5x | 9.2 | x | ||||||||||||||||||||||||||||||
Exit Multiple-P/E | 8.5x - 17.0x | 10.1x | |||||||||||||||||||||||||||||||
61,479 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,602 | Market Comparable | Book Value Multiple | 0.9x | N/A | |||||||||||||||||||||||||||||
Companies | EBITDA Multiple | 5.0x - 8.7x | 7.8x | ||||||||||||||||||||||||||||||
200 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
1,880 | Other | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Partnership and LLC Interests | 562,678 | Discounted Cash Flows | Discount Rate | 5.3% - 22.6% | 8.9 | % | |||||||||||||||||||||||||||
Revenue CAGR | -8.2% - 62.0% | 5.3 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 4.5x - 15.4x | 10.0x | |||||||||||||||||||||||||||||||
Exit Capitalization Rate | 1.0% - 10.5% | 7 | % | ||||||||||||||||||||||||||||||
13,316 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
5,157 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Debt Instruments | $ | 13,056 | Discounted Cash Flows | Discount Rate | 7.8% - 42.0% | 15.6 | % | ||||||||||||||||||||||||||
Revenue CAGR | 2.9% -5.1% | 3.8 | % | ||||||||||||||||||||||||||||||
Exit Multiple-EBITDA | 9.5x | N/A | |||||||||||||||||||||||||||||||
Exit Capitalization Rate | 7.0% -7.5% | 7.1 | % | ||||||||||||||||||||||||||||||
Default Rate | 2.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Rate | 70.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
4,004 | Third Party Pricing | N/A | N/A | N/A | |||||||||||||||||||||||||||||
664 | Market Comparable | EBITDA Multiple | 6.5x-7.5x | 6.7x | |||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Assets of Consolidated | 900,146 | Third Party Pricing | N/A | N/A | N/A | ||||||||||||||||||||||||||||
CLO Vehicles | 278,972 | Market Comparable | EBITDA Multiple | 2.0x - 13.0x | 6.5x | ||||||||||||||||||||||||||||
Companies | Liquidity Discount | 1.0% - 25.0% | 8.4 | % | |||||||||||||||||||||||||||||
132,171 | Discounted Cash Flows | Discount Rate | 7.0% - 15.7% | 9.3 | % | ||||||||||||||||||||||||||||
10 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total Investments of Consolidated Blackstone Funds | 3,017,699 | ||||||||||||||||||||||||||||||||
Blackstone’s Treasury Cash Management Strategies | 1,006 | Discounted Cash Flows | Default Rate | 2.00% | N/A | ||||||||||||||||||||||||||||
Recovery Rate | 70.00% | N/A | |||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 20.00% | N/A | |||||||||||||||||||||||||||||||
Discount Rate | 12.00% | N/A | |||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
200 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Loans and Receivables | 30,620 | Discounted Cash Flows | Discount Rate | 11.8% - 25.9% | 13.7 | % | |||||||||||||||||||||||||||
43 | Market Comparable | EBITDA Multiple | 8.7x | N/A | |||||||||||||||||||||||||||||
Companies | |||||||||||||||||||||||||||||||||
Other Investments | 17,901 | NAV as Fair Value | N/A | N/A | N/A | ||||||||||||||||||||||||||||
5,647 | Discounted Cash Flows | Discount Rate | 12.50% | N/A | |||||||||||||||||||||||||||||
3,350 | Transaction Price | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Total | $ | 3,076,466 | |||||||||||||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||||||
Liabilities of Consolidated CLO Vehicles | $ | 11,541,607 | Discounted Cash Flows | Default Rate | 2.0% - 5.0% | 2.1 | % | ||||||||||||||||||||||||||
Recovery Rate | 30.0% -70.0% | 66 | % | ||||||||||||||||||||||||||||||
Recovery Lag | 12 months | N/A | |||||||||||||||||||||||||||||||
Pre-payment Rate | 5.0% - 20.0% | 18 | % | ||||||||||||||||||||||||||||||
Discount Rate | 1.1% - 50.0% | 3.9 | % | ||||||||||||||||||||||||||||||
Reinvestment Rate | LIBOR + 400 bps | N/A | |||||||||||||||||||||||||||||||
N/A | Not applicable. | ||||||||||||||||||||||||||||||||
CAGR | Compound annual growth rate. | ||||||||||||||||||||||||||||||||
EBITDA | Earnings before interest, taxes, depreciation and amortization. | ||||||||||||||||||||||||||||||||
Exit Multiple | Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. | ||||||||||||||||||||||||||||||||
(a) | Unobservable inputs were weighted based on the fair value of the investments included in the range. | ||||||||||||||||||||||||||||||||
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used | ' | ||||||||||||||||||||||||||||||||
Level III Financial Assets at Fair Value | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Investments of | Loans and | Other | Total | Investments of | Loans and | Other | Total | ||||||||||||||||||||||||||
Consolidated | Receivables | Investments (c) | Consolidated | Receivables | Investments (c) | ||||||||||||||||||||||||||||
Funds | Funds | ||||||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | 3,017,699 | $ | 30,663 | $ | 28,104 | $ | 3,076,466 | $ | 2,103,769 | $ | 8,555 | $ | 20,164 | $ | 2,132,488 | |||||||||||||||||
Transfer In Due to Consolidation and Acquisition (a) | 673,031 | — | 11,960 | 684,991 | 246,022 | — | — | 246,022 | |||||||||||||||||||||||||
Transfer Out Due to Deconsolidation | (284,960 | ) | — | — | (284,960 | ) | (1,599 | ) | — | — | (1,599 | ) | |||||||||||||||||||||
Transfer In to | 624,450 | — | 12,627 | 637,077 | 687,225 | — | — | 687,225 | |||||||||||||||||||||||||
Level III (b) | |||||||||||||||||||||||||||||||||
Transfer Out of | (481,637 | ) | — | (9,241 | ) | (490,878 | ) | (150,097 | ) | — | — | (150,097 | ) | ||||||||||||||||||||
Level III (b) | |||||||||||||||||||||||||||||||||
Purchases | 733,356 | 370,508 | 129,122 | 1,232,986 | 772,305 | 176,641 | 7,700 | 956,646 | |||||||||||||||||||||||||
Sales | (1,249,271 | ) | (265,996 | ) | (112,833 | ) | (1,628,100 | ) | (809,367 | ) | (154,293 | ) | (703 | ) | (964,363 | ) | |||||||||||||||||
Settlements | — | 2,312 | (1,958 | ) | 354 | — | (46 | ) | — | (46 | ) | ||||||||||||||||||||||
Realized Gains (Losses), Net | 64,681 | 43 | 13,934 | 78,658 | (17,201 | ) | (308 | ) | 449 | (17,060 | ) | ||||||||||||||||||||||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 261,403 | 258 | (13,117 | ) | 248,544 | 186,642 | 114 | 494 | 187,250 | ||||||||||||||||||||||||
Balance, End of Period | $ | 3,358,752 | $ | 137,788 | $ | 58,598 | $ | 3,555,138 | $ | 3,017,699 | $ | 30,663 | $ | 28,104 | $ | 3,076,466 | |||||||||||||||||
Summary of Changes in Financial Liabilities Measured at Fair Value for Which Level III Inputs Were Used | ' | ||||||||||||||||||||||||||||||||
Level III Financial Liabilities at Fair Value Year Ended December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Collateralized | Collateralized | Total | Collateralized | Collateralized | Total | ||||||||||||||||||||||||||||
Loan | Loan | Loan | Loan | ||||||||||||||||||||||||||||||
Obligations | Obligations | Obligations | Obligations | ||||||||||||||||||||||||||||||
Senior | Subordinated | Senior | Subordinated | ||||||||||||||||||||||||||||||
Notes | Notes | Notes | Notes | ||||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | 10,695,136 | $ | 846,471 | $ | 11,541,607 | $ | 7,449,766 | $ | 630,236 | $ | 8,080,002 | |||||||||||||||||||||
Transfer In Due to Consolidation and Acquisition (a) | — | — | — | 3,419,084 | 149,225 | 3,568,309 | |||||||||||||||||||||||||||
Transfer Out Due to Deconsolidation | (1,100,842 | ) | (150,925 | ) | (1,251,767 | ) | — | — | — | ||||||||||||||||||||||||
Issuances | 41,233 | 784 | 42,017 | 15,602 | 2,218 | 17,820 | |||||||||||||||||||||||||||
Settlements | (2,034,367 | ) | (530 | ) | (2,034,897 | ) | (895,302 | ) | (3,588 | ) | (898,890 | ) | |||||||||||||||||||||
Realized (Gains) Losses, Net | 6,078 | — | 6,078 | (17 | ) | — | (17 | ) | |||||||||||||||||||||||||
Changes in Unrealized (Gains) Losses Included in Earnings Related to Liabilities Still Held at the Reporting Date | 695,334 | (85,365 | ) | 609,969 | 706,003 | 68,380 | 774,383 | ||||||||||||||||||||||||||
Balance, End of Period | $ | 8,302,572 | $ | 610,435 | $ | 8,913,007 | $ | 10,695,136 | $ | 846,471 | $ | 11,541,607 | |||||||||||||||||||||
(a) | Represents the transfer into Level III of financial assets and liabilities as a result of the consolidation of certain fund entities, the acquisition of management contracts and the Harbourmaster acquisition. | ||||||||||||||||||||||||||||||||
(b) | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. | ||||||||||||||||||||||||||||||||
(c) | Represents Blackstone’s Treasury Cash Management Strategies and Other Investments. |
VARIABLE_INTEREST_ENTITIES_Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Assets and Liabilities Related to Interest in Non-Consolidated VIEs and Maximum Exposure to Loss | ' | ||||||||
The assets and liabilities recognized in the Partnership’s Consolidated Statements of Financial Condition related to the Partnership’s interest in these non-consolidated VIEs and the Partnership’s maximum exposure to loss relating to non-consolidated VIEs were as follows: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Investments | $ | 758,304 | $ | 364,709 | |||||
Accounts Receivable | 166,908 | 1,885 | |||||||
Due from Affiliates | 86,246 | 112,686 | |||||||
Total VIE Assets | 1,011,458 | 479,280 | |||||||
Due to Affiliates | 397 | 2,657 | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | 2 | — | |||||||
Potential Clawback Obligation | 63,290 | 36,040 | |||||||
Maximum Exposure to Loss | $ | 1,075,147 | $ | 517,977 | |||||
OTHER_ASSETS_AND_ACCOUNTS_PAYA1
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets | ' | ||||||||
Other Assets consists of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Furniture, Equipment and Leasehold Improvements | $ | 325,700 | $ | 300,105 | |||||
Less: Accumulated Depreciation | (188,612 | ) | (157,715 | ) | |||||
Furniture, Equipment and Leasehold Improvements, Net | 137,088 | 142,390 | |||||||
Prepaid Expenses | 61,226 | 81,498 | |||||||
Other Assets | 75,815 | 97,140 | |||||||
Freestanding Derivatives | 10,343 | 55,344 | |||||||
$ | 284,472 | $ | 376,372 | ||||||
OFFSETTING_OF_ASSETS_AND_LIABI1
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Offsetting of Assets and Liabilities | ' | ||||||||||||||||
The following tables present the offsetting of assets and liabilities as of December 31, 2013: | |||||||||||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Assets | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Received | ||||||||||||||||
Assets | |||||||||||||||||
Freestanding Derivatives | $ | 10,343 | $ | 3,025 | $ | 582 | $ | 6,736 | |||||||||
Reverse Repurchase Agreements | 148,984 | 148,394 | — | 590 | |||||||||||||
Total | $ | 159,327 | $ | 151,419 | $ | 582 | $ | 7,326 | |||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Liabilities | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Pledged | ||||||||||||||||
Liabilities | |||||||||||||||||
Freestanding Derivatives | $ | 4,282 | $ | 3,025 | $ | 1,257 | $ | — | |||||||||
Repurchase Agreements | 316,352 | 316,352 | — | — | |||||||||||||
Total | $ | 320,634 | $ | 319,377 | $ | 1,257 | $ | — | |||||||||
The following tables present the offsetting of assets and liabilities as of December 31, 2012: | |||||||||||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Assets | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Received | ||||||||||||||||
Assets | |||||||||||||||||
Freestanding Derivatives | $ | 55,344 | $ | 3,983 | $ | 36,748 | $ | 14,613 | |||||||||
Reverse Repurchase Agreements | 248,018 | 248,018 | — | — | |||||||||||||
Total | $ | 303,362 | $ | 252,001 | $ | 36,748 | $ | 14,613 | |||||||||
Gross and Net | Gross Amounts Not Offset | ||||||||||||||||
Amounts of Liabilities | in the Statement of | ||||||||||||||||
Presented in the | Financial Condition | ||||||||||||||||
Statement of | |||||||||||||||||
Financial | |||||||||||||||||
Condition | Financial | Cash Collateral | Net Amount | ||||||||||||||
Instruments | Pledged | ||||||||||||||||
Liabilities | |||||||||||||||||
Freestanding Derivatives | $ | 4,197 | $ | 3,983 | $ | — | $ | 214 | |||||||||
Repurchase Agreements | 142,266 | 142,266 | — | — | |||||||||||||
Total | $ | 146,463 | $ | 146,249 | $ | — | $ | 214 | |||||||||
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Partnership's Credit Facilities | ' | ||||||||||||||||||||||||
The Partnership’s credit facilities consist of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Credit | Borrowing | Weighted | Credit | Borrowing | Weighted | ||||||||||||||||||||
Available | Outstanding | Average | Available | Outstanding | Average | ||||||||||||||||||||
Interest | Interest | ||||||||||||||||||||||||
Rate | Rate | ||||||||||||||||||||||||
Revolving Credit Facility (a) | $ | 1,100,000 | $ | 717 | 1.25 | % | $ | 1,100,000 | $ | 717 | 1.25 | % | |||||||||||||
Blackstone Issued 6.625% Notes Due 8/15/2019 (b) (e) | 585,000 | 585,000 | 6.63 | % | 585,000 | 585,000 | 6.63 | % | |||||||||||||||||
Blackstone Issued 5.875% Notes Due 3/15/2021 (c) (e) | 400,000 | 400,000 | 5.88 | % | 400,000 | 400,000 | 5.88 | % | |||||||||||||||||
Blackstone Issued 4.750% Notes Due 2/15/2023 (d) (e) | 400,000 | 400,000 | 4.75 | % | 400,000 | 400,000 | 4.75 | % | |||||||||||||||||
Blackstone Issued 6.250% Notes Due 8/15/2042 (d) (e) | 250,000 | 250,000 | 6.25 | % | 250,000 | 250,000 | 6.25 | % | |||||||||||||||||
Operating Entities Facilities (f) | — | — | n/a | 6,228 | 6,228 | 1.03 | % | ||||||||||||||||||
2,735,000 | 1,635,717 | 5.92 | % | 2,741,228 | 1,641,945 | 5.9 | % | ||||||||||||||||||
Blackstone Fund Facilities (g) | 13,075 | 13,075 | 3.19 | % | 23,842 | 23,842 | 2.03 | % | |||||||||||||||||
CLO Vehicles (h) | 9,891,473 | 9,826,621 | 1.09 | % | 13,055,784 | 12,967,302 | 1.34 | % | |||||||||||||||||
$ | 12,639,548 | $ | 11,475,413 | 1.78 | % | $ | 15,820,854 | $ | 14,633,089 | 1.86 | % | ||||||||||||||
(a) | Blackstone, through indirect subsidiaries, has a $1.1 billion unsecured revolving credit facility (the “Credit Facility”) with Citibank, N.A., as Administrative Agent with a maturity date of July 13, 2017. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, 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. As of December 31, 2013, there was an outstanding but undrawn letter of credit against the credit facility for $0.7 million. | ||||||||||||||||||||||||
(b) | On August 20, 2009, Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of the Partnership, issued $600 million of senior notes. The notes, which were issued at a discount, accrue interest from August 20, 2009. Interest is paid semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2010. Interest expense on the notes was $38.8 million, $39.4 million and $39.8 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||||||||||||||||||||||
(c) | On September 15, 2010, the Issuer issued $400 million of senior notes. The notes, which were issued at a discount, accrue interest from September 20, 2010. Interest is payable semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011. Interest expense on the notes was $23.5 million, $23.5 million and $23.5 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. | ||||||||||||||||||||||||
(d) | On August 17, 2012, the Issuer issued $400 million of senior notes due February 15, 2023 and $250 million of senior notes maturing August 15, 2042. The notes, which were issued at a discount, accrue interest from August 17, 2012. Interest is payable semiannually in arrears on February 15 and September 15 of each year, commencing on February 15, 2013. Interest expense on the $400 million note was $19.0 million and $7.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. Interest expense on the $250 million note was $15.6 million and $5.8 million for the years ended December 31, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||||||
(e) | Represents long term borrowings in the form of senior notes (the “Notes”) issued by the Issuer. The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings, and the Issuer (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been capitalized and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. | ||||||||||||||||||||||||
(f) | Represents borrowings under a capital asset purchase facility. The capital asset purchase facility is secured by the purchased asset and borrowings bear interest at a spread to LIBOR. The borrowings were paid down during 2013. | ||||||||||||||||||||||||
(g) | Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. | ||||||||||||||||||||||||
(h) | Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. | ||||||||||||||||||||||||
Carrying Value and Fair Value of Blackstone Issued Notes | ' | ||||||||||||||||||||||||
The carrying value and fair value of the Blackstone issued notes, included in Loans Payable within the Consolidated Statements of Financial Condition, were: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||||||
Value | Value (a) | Value | Value (a) | ||||||||||||||||||||||
Blackstone Issued 6.625%, $600 Million Par, Notes | $ | 632,823 | $ | 684,860 | $ | 640,220 | $ | 682,344 | |||||||||||||||||
Due 8/15/2019 (b) | |||||||||||||||||||||||||
Blackstone Issued 5.875%, $400 Million Par, Notes | $ | 398,543 | $ | 447,120 | $ | 398,386 | $ | 456,200 | |||||||||||||||||
Due 3/15/2021 | |||||||||||||||||||||||||
Blackstone Issued 4.750%, $400 Million Par, Notes | $ | 393,202 | $ | 415,760 | $ | 392,629 | $ | 426,160 | |||||||||||||||||
Due 2/15/2023 | |||||||||||||||||||||||||
Blackstone Issued 6.250%, $250 Million Par, Notes | $ | 239,738 | $ | 278,550 | $ | 239,619 | $ | 275,275 | |||||||||||||||||
Due 8/15/2042 | |||||||||||||||||||||||||
(a) | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. | ||||||||||||||||||||||||
(b) | The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||||||||||||||||||||||
Partnership's Borrowings Through Consolidated CLO Vehicles | ' | ||||||||||||||||||||||||
Borrowings through the consolidated CLO vehicles consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Borrowing | Weighted | Weighted | Borrowing | Weighted | Weighted | ||||||||||||||||||||
Outstanding | Average | Average | Outstanding | Average | Average | ||||||||||||||||||||
Interest | Remaining | Interest | Remaining | ||||||||||||||||||||||
Rate | Maturity in | Rate | Maturity in | ||||||||||||||||||||||
Years | Years | ||||||||||||||||||||||||
Senior Secured Notes | $ | 8,605,553 | 1.09 | % | 4.1 | $ | 11,518,111 | 1.34 | % | 4.6 | |||||||||||||||
Subordinated Notes | 1,221,068 | (a | ) | N/A | 1,449,191 | (a | ) | 2.6 | |||||||||||||||||
$ | 9,826,621 | $ | 12,967,302 | ||||||||||||||||||||||
(a) | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. | ||||||||||||||||||||||||
Components of Senior Secured Notes and Subordinated Notes | ' | ||||||||||||||||||||||||
Senior Secured Notes and Subordinated Notes comprise the following amounts: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Fair Value | Amounts Due to Non- | Fair Value | Amounts Due to Non- | ||||||||||||||||||||||
Consolidated Affiliates | Consolidated Affiliates | ||||||||||||||||||||||||
Borrowing | Fair Value | Borrowing | Fair Value | ||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||||
Senior Secured Notes | $ | 8,302,572 | $ | 14,500 | $ | 13,732 | $ | 10,695,136 | $ | 22,000 | $ | 18,229 | |||||||||||||
Subordinated Notes | $ | 610,435 | $ | 224,444 | $ | 110,197 | $ | 846,471 | $ | 258,156 | $ | 172,899 | |||||||||||||
Scheduled Principal Payments for Borrowings | ' | ||||||||||||||||||||||||
Scheduled principal payments for borrowings at December 31, 2013 are as follows: | |||||||||||||||||||||||||
Operating | Blackstone Fund | Total Borrowings | |||||||||||||||||||||||
Borrowings | Facilities / CLO | ||||||||||||||||||||||||
Vehicles | |||||||||||||||||||||||||
2014 | $ | — | $ | 8,066 | $ | 8,066 | |||||||||||||||||||
2015 | — | 5,009 | 5,009 | ||||||||||||||||||||||
2018 and Thereafter | 1,635,000 | 9,826,621 | 11,461,621 | ||||||||||||||||||||||
Total | $ | 1,635,000 | $ | 9,839,696 | $ | 11,474,696 | |||||||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Provision (Benefit) for Income Taxes | ' | ||||||||||||
The Provision for Income Taxes consists of the following: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal Income Tax | $ | 19,237 | $ | 5,928 | $ | 4,509 | |||||||
Foreign Income Tax | 13,302 | 16,921 | 22,741 | ||||||||||
State and Local Income Tax | 33,273 | 36,022 | 8,997 | ||||||||||
65,812 | 58,871 | 36,247 | |||||||||||
Deferred | |||||||||||||
Federal Income Tax | 157,962 | 100,875 | 226,153 | ||||||||||
Foreign Income Tax | (638 | ) | (691 | ) | 403 | ||||||||
State and Local Income Tax | 32,506 | 25,968 | 82,908 | ||||||||||
189,830 | 126,152 | 309,464 | |||||||||||
Provision for Taxes | $ | 255,642 | $ | 185,023 | $ | 345,711 | |||||||
Summary of Blackstone's Tax Position | ' | ||||||||||||
The following table summarizes Blackstone’s tax position: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income Before Provision for Taxes | $ | 3,148,561 | $ | 1,014,905 | $ | 77,258 | |||||||
Total Provision for Taxes | $ | 255,642 | $ | 185,023 | $ | 345,711 | |||||||
Effective Income Tax Rate | 8.1 | % | 18.2 | % | 447.5 | % | |||||||
Reconciles The Provision (Benefit) for Taxes to U.S. Federal Statutory Tax Rate | ' | ||||||||||||
The following table reconciles the Provision for Taxes to the U.S. federal statutory tax rate: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. Federal Income Tax Rate | 35 | % | 35 | % | 35 | % | |||||||
Income Passed Through to Common Unitholders and Non-Controlling Interest | -28.7 | % | -23.6 | % | 76.9 | % | |||||||
Holders (a) | |||||||||||||
Interest Expense | -0.9 | % | -3.4 | % | -47 | % | |||||||
Foreign Income Taxes | -0.2 | % | -3.2 | % | 10.5 | % | |||||||
State and Local Income Taxes | 1.7 | % | 3 | % | 38.7 | % | |||||||
Equity-Based Compensation | 1.6 | % | 9.3 | % | 132.4 | % | |||||||
Change in Tax Rate | 0.6 | % | -0.1 | % | 202.9 | % | |||||||
Net Unrecognized Tax Positions | -0.2 | % | 0.7 | % | 7.8 | % | |||||||
Non Deductible Expenses | 0 | % | 0.6 | % | 2.5 | % | |||||||
Tax Deductible Compensation | -0.3 | % | -0.4 | % | -10.2 | % | |||||||
Other | -0.5 | % | 0.3 | % | -2 | % | |||||||
Effective Income Tax Rate (b) | 8.1 | % | 18.2 | % | 447.5 | % | |||||||
(a) | Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling interest holders. | ||||||||||||
(b) | The effective tax rate is calculated on Income (Loss) Before Provision for Taxes. | ||||||||||||
Summary of Tax Effects of Temporary Differences | ' | ||||||||||||
A summary of the tax effects of the temporary differences is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Fund Management Fees | $ | 8,728 | $ | 16,719 | |||||||||
Equity-Based Compensation | 54,810 | 45,329 | |||||||||||
Unrealized Gains from Investments | (117,685 | ) | (58,499 | ) | |||||||||
Depreciation and Amortization | 1,285,042 | 1,257,145 | |||||||||||
Net Operating Loss Carry Forward | 12 | 18,780 | |||||||||||
Other | (21,700 | ) | 6,137 | ||||||||||
Total Deferred Tax Assets | $ | 1,209,207 | $ | 1,285,611 | |||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation and Amortization | $ | 10 | $ | 143 | |||||||||
Total Deferred Tax Liabilities | $ | 10 | $ | 143 | |||||||||
Blackstone's Unrecognized Tax Benefits Excluding Related Interest and Penalties | ' | ||||||||||||
Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Unrecognized Tax Benefits—January 1 | $ | 30,742 | $ | 12,234 | |||||||||
Additions based on Tax Positions Related to Current Year | 6,517 | 6,117 | |||||||||||
Additions for Tax Positions of Prior Years | 3,435 | 16,733 | |||||||||||
Reductions for Tax Positions of Prior Years | (17,686 | ) | (3,215 | ) | |||||||||
Settlements | (3,538 | ) | (1,596 | ) | |||||||||
Exchange Rate Fluctuations | (608 | ) | 469 | ||||||||||
Unrecognized Tax Benefits—December 31 | $ | 18,862 | $ | 30,742 | |||||||||
NET_INCOME_LOSS_PER_COMMON_UNI1
NET INCOME (LOSS) PER COMMON UNIT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Basic and Diluted Net Income (Loss) Per Common Unit | ' | ||||||||||||
Basic and diluted net income (loss) per common unit for the years ended December 31, 2013, 2012 and 2011 was calculated as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $ | 1,171,202 | $ | 218,598 | $ | (168,303 | ) | ||||||
Basic Net Income (Loss) Per Common Unit | |||||||||||||
Weighted-Average Common Units Outstanding | 587,018,828 | 533,703,606 | 475,582,718 | ||||||||||
Basic Net Income (Loss) Per Common Unit | $ | 2 | $ | 0.41 | $ | (0.35 | ) | ||||||
Diluted Net Income (Loss) Per Common Unit | |||||||||||||
Weighted-Average Common Units Outstanding | 587,018,828 | 533,703,606 | 475,582,718 | ||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | 3,527,812 | 4,965,464 | — | ||||||||||
Weighted-Average Diluted Common Units Outstanding | 590,546,640 | 538,669,070 | 475,582,718 | ||||||||||
Diluted Net Income (Loss) Per Common Unit | $ | 1.98 | $ | 0.41 | $ | (0.35 | ) | ||||||
Summary of Anti-Dilutive Securities | ' | ||||||||||||
The following table summarizes the anti-dilutive securities for the periods indicated: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | — | — | 22,529,309 | ||||||||||
Weighted-Average Blackstone Holdings Partnership Units | 553,579,525 | 590,446,577 | 628,115,753 |
EQUITYBASED_COMPENSATION_Table
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Status of Partnership's Unvested Equity-Based Awards | ' | ||||||||||||||||||||||||
A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2013 and of changes during the period January 1, 2013 through December 31, 2013 is presented below: | |||||||||||||||||||||||||
Blackstone Holdings | The Blackstone Group L.P. | ||||||||||||||||||||||||
Partnership | Weighted- | Equity Settled Awards | Cash Settled Awards | ||||||||||||||||||||||
Units | Average | ||||||||||||||||||||||||
Grant Date | |||||||||||||||||||||||||
Unvested Units | Fair Value | Deferred | Weighted- | Phantom | Weighted- | ||||||||||||||||||||
Restricted | Average | Units | Average | ||||||||||||||||||||||
Common | Grant Date | Grant Date | |||||||||||||||||||||||
Units and | Fair Value | Fair Value | |||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Balance, December 31, 2012 | 66,591,089 | $ | 28.19 | 20,199,382 | $ | 15.76 | 221,356 | $ | 14.89 | ||||||||||||||||
Granted | 4,645,938 | 20.65 | 7,245,002 | 22.56 | 7,687 | 22.85 | |||||||||||||||||||
Vested | (21,385,204 | ) | 29.91 | (6,458,664 | ) | 23.77 | (78,318 | ) | 20.82 | ||||||||||||||||
Forfeited | (1,794,007 | ) | 29.69 | (981,581 | ) | 17.27 | (3,556 | ) | 23.7 | ||||||||||||||||
Balance, December 31, 2013 | 48,057,816 | $ | 26.64 | 20,004,139 | $ | 15.57 | 147,169 | $ | 12 | ||||||||||||||||
Unvested Units, After Expected Forfeitures | ' | ||||||||||||||||||||||||
The following unvested units, after expected forfeitures, as of December 31, 2013, are expected to vest: | |||||||||||||||||||||||||
Units | Weighted-Average | ||||||||||||||||||||||||
Service Period | |||||||||||||||||||||||||
in Years | |||||||||||||||||||||||||
Blackstone Holdings Partnership Units | 44,277,748 | 1.9 | |||||||||||||||||||||||
Deferred Restricted Blackstone Common Units and Options | 16,515,381 | 2.3 | |||||||||||||||||||||||
Total Equity-Based Awards | 60,793,129 | 2 | |||||||||||||||||||||||
Phantom Units | 146,520 | 0.03 | |||||||||||||||||||||||
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Due From Affiliates and Due to Affiliates | ' | ||||||||
Due from Affiliates and Due to Affiliates consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Due from Affiliates | |||||||||
Accrual for Potential Clawback of Previously Distributed Carried Interest | $ | 1,561 | $ | 165,322 | |||||
Primarily Interest Bearing Advances Made on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees for Investments in Blackstone Funds | 151,493 | 155,302 | |||||||
Amounts Due from Portfolio Companies and Funds | 307,926 | 259,196 | |||||||
Investments Redeemed in Non-Consolidated Funds of Hedge Funds | 259,787 | 39,507 | |||||||
Management and Performance Fees Due from Non-Consolidated Funds | 325,389 | 343,846 | |||||||
Payments Made on Behalf of Non-Consolidated Entities | 133,790 | 150,317 | |||||||
Advances Made to Certain Non-Controlling Interest Holders and Blackstone Employees | 12,098 | 6,577 | |||||||
$ | 1,192,044 | $ | 1,120,067 | ||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Due to Affiliates | |||||||||
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | $ | 1,235,168 | $ | 1,218,488 | |||||
Accrual for Potential Repayment of Previously Received Performance Fees | 4,270 | 267,116 | |||||||
Due to Note Holders of Consolidated CLO Vehicles | 123,929 | 191,128 | |||||||
Due to Certain Non-Controlling Interest Holders | — | 201,286 | |||||||
Distributions Received on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees | 11,293 | 12,506 | |||||||
Payable to Affiliates for Consolidated Funds | 29,803 | 81,589 | |||||||
Distributions Received on Behalf of Blackstone Entities | 22,815 | 20,295 | |||||||
Payments Made by Non-Consolidated Entities | 9,581 | 10,236 | |||||||
$ | 1,436,859 | $ | 2,002,644 | ||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases | ' | ||||||||||||||||||||||||
As of December 31, 2013, the aggregate minimum future payments, net of sublease income, required on the operating leases are as follows: | |||||||||||||||||||||||||
2014 | $ | 71,286 | |||||||||||||||||||||||
2015 | 67,388 | ||||||||||||||||||||||||
2016 | 61,299 | ||||||||||||||||||||||||
2017 | 56,379 | ||||||||||||||||||||||||
2018 | 54,279 | ||||||||||||||||||||||||
Thereafter | 189,150 | ||||||||||||||||||||||||
Total | $ | 499,781 | |||||||||||||||||||||||
Clawback Obligations by Segment | ' | ||||||||||||||||||||||||
The following table presents the clawback obligations by segment: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Segment | Blackstone | Current and | Total | Blackstone | Current and | Total | |||||||||||||||||||
Holdings | Former | Holdings | Former | ||||||||||||||||||||||
Personnel | Personnel | ||||||||||||||||||||||||
Private Equity | $ | (5 | ) | $ | 151 | $ | 146 | $ | 69,302 | $ | 133,852 | $ | 203,154 | ||||||||||||
Real Estate | 1,501 | 518 | 2,019 | 32,152 | 31,223 | 63,375 | |||||||||||||||||||
Credit | 1,213 | 892 | 2,105 | 340 | 247 | 587 | |||||||||||||||||||
Total | $ | 2,709 | $ | 1,561 | $ | 4,270 | $ | 101,794 | $ | 165,322 | $ | 267,116 | |||||||||||||
SEGMENT_REPORTING_Tables
SEGMENT REPORTING (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Financial Data of Segments | ' | ||||||||||||||||||||||||
The following table presents the financial data for Blackstone’s five segments as of and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge Fund | Credit | Financial | Total | ||||||||||||||||||||
Equity | Solutions | Advisory | Segments | ||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 368,146 | $ | 565,182 | $ | 409,321 | $ | 398,158 | $ | — | $ | 1,740,807 | |||||||||||||
Advisory Fees | — | — | — | — | 410,514 | 410,514 | |||||||||||||||||||
Transaction and Other Fees, Net | 96,988 | 79,675 | 623 | 28,586 | 1,105 | 206,977 | |||||||||||||||||||
Management Fee Offsets | (5,683 | ) | (22,821 | ) | (3,387 | ) | (40,329 | ) | — | (72,220 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 459,451 | 622,036 | 406,557 | 386,415 | 411,619 | 2,286,078 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 329,993 | 486,773 | — | 127,192 | — | 943,958 | |||||||||||||||||||
Incentive Fees | — | 45,862 | 207,735 | 220,736 | — | 474,333 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 398,232 | 1,651,700 | — | 108,078 | — | 2,158,010 | |||||||||||||||||||
Incentive Fees | — | (28,753 | ) | 7,718 | 1,107 | — | (19,928 | ) | |||||||||||||||||
Total Performance Fees | 728,225 | 2,155,582 | 215,453 | 457,113 | — | 3,556,373 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Realized | 88,026 | 52,359 | 27,613 | 4,098 | (1,625 | ) | 170,471 | ||||||||||||||||||
Unrealized | 161,749 | 350,201 | (9,306 | ) | 13,951 | 739 | 517,334 | ||||||||||||||||||
Total Investment Income (Loss) | 249,775 | 402,560 | 18,307 | 18,049 | (886 | ) | 687,805 | ||||||||||||||||||
Interest and Dividend Revenue | 15,602 | 21,563 | 7,605 | 18,146 | 8,020 | 70,936 | |||||||||||||||||||
Other | 4,259 | 3,384 | 688 | 527 | 1,450 | 10,308 | |||||||||||||||||||
Total Revenues | 1,457,312 | 3,205,125 | 648,610 | 880,250 | 420,203 | 6,611,500 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 236,120 | 294,222 | 136,470 | 186,514 | 262,314 | 1,115,640 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 38,953 | 148,837 | — | 69,411 | — | 257,201 | |||||||||||||||||||
Incentive Fees | — | 23,878 | 65,793 | 111,244 | — | 200,915 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 342,733 | 566,837 | — | 57,147 | — | 966,717 | |||||||||||||||||||
Incentive Fees | — | (15,015 | ) | 2,856 | 508 | — | (11,651 | ) | |||||||||||||||||
Total Compensation and Benefits | 617,806 | 1,018,759 | 205,119 | 424,824 | 262,314 | 2,528,822 | |||||||||||||||||||
Other Operating Expenses | 124,137 | 116,391 | 66,966 | 96,940 | 82,205 | 486,639 | |||||||||||||||||||
Total Expenses | 741,943 | 1,135,150 | 272,085 | 521,764 | 344,519 | 3,015,461 | |||||||||||||||||||
Economic Income | $ | 715,369 | $ | 2,069,975 | $ | 376,525 | $ | 358,486 | $ | 75,684 | $ | 3,596,039 | |||||||||||||
Segment Assets | $ | 4,444,227 | $ | 7,496,591 | $ | 1,325,631 | $ | 2,381,603 | $ | 781,469 | $ | 16,429,521 | |||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge Fund | Credit | Financial | Total | ||||||||||||||||||||
Equity | Solutions | Advisory | Segments | ||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 348,594 | $ | 551,322 | $ | 346,210 | $ | 345,277 | $ | — | $ | 1,591,403 | |||||||||||||
Advisory Fees | — | — | — | — | 357,417 | 357,417 | |||||||||||||||||||
Transaction and Other Fees, Net | 100,080 | 85,681 | 188 | 40,875 | 295 | 227,119 | |||||||||||||||||||
Management Fee Offsets | (5,926 | ) | (28,609 | ) | (1,414 | ) | (5,004 | ) | — | (40,953 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 442,748 | 608,394 | 344,984 | 381,148 | 357,712 | 2,134,986 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 109,797 | 165,114 | — | 52,511 | — | 327,422 | |||||||||||||||||||
Incentive Fees | — | 25,656 | 83,433 | 192,375 | — | 301,464 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 148,381 | 683,764 | — | 162,045 | — | 994,190 | |||||||||||||||||||
Incentive Fees | — | (119 | ) | 9,042 | (38,234 | ) | — | (29,311 | ) | ||||||||||||||||
Total Performance Fees | 258,178 | 874,415 | 92,475 | 368,697 | — | 1,593,765 | |||||||||||||||||||
Investment Income | |||||||||||||||||||||||||
Realized | 25,823 | 45,302 | 7,270 | 15,611 | 1,392 | 95,398 | |||||||||||||||||||
Unrealized | 85,337 | 90,875 | 8,517 | 4,769 | 1,348 | 190,846 | |||||||||||||||||||
Total Investment Income | 111,160 | 136,177 | 15,787 | 20,380 | 2,740 | 286,244 | |||||||||||||||||||
Interest and Dividend Revenue | 13,556 | 14,448 | 2,139 | 9,330 | 7,157 | 46,630 | |||||||||||||||||||
Other | 2,417 | 894 | 3,816 | (1,174 | ) | (804 | ) | 5,149 | |||||||||||||||||
Total Revenues | 828,059 | 1,634,328 | 459,201 | 778,381 | 366,805 | 4,066,774 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 222,709 | 271,122 | 119,731 | 182,077 | 235,137 | 1,030,776 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 3,679 | 62,418 | — | 30,336 | — | 96,433 | |||||||||||||||||||
Incentive Fees | — | 13,060 | 23,080 | 103,902 | — | 140,042 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 58,555 | 165,482 | — | 97,562 | — | 321,599 | |||||||||||||||||||
Incentive Fees | — | (583 | ) | 1,317 | (45,262 | ) | — | (44,528 | ) | ||||||||||||||||
Total Compensation and Benefits | 284,943 | 511,499 | 144,128 | 368,615 | 235,137 | 1,544,322 | |||||||||||||||||||
Other Operating Expenses | 130,845 | 123,714 | 57,809 | 84,488 | 84,589 | 481,445 | |||||||||||||||||||
Total Expenses | 415,788 | 635,213 | 201,937 | 453,103 | 319,726 | 2,025,767 | |||||||||||||||||||
Economic Income | $ | 412,271 | $ | 999,115 | $ | 257,264 | $ | 325,278 | $ | 47,079 | $ | 2,041,007 | |||||||||||||
Segment Assets | $ | 4,625,310 | $ | 5,599,759 | $ | 876,881 | $ | 2,004,529 | $ | 749,000 | $ | 13,855,479 | |||||||||||||
December 31, 2011 and the Year Then Ended | |||||||||||||||||||||||||
Private | Real Estate | Hedge | Credit | Financial | Total | ||||||||||||||||||||
Equity | Fund | Advisory | Segments | ||||||||||||||||||||||
Solutions | |||||||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management and Advisory Fees, Net | |||||||||||||||||||||||||
Base Management Fees | $ | 331,997 | $ | 394,778 | $ | 315,863 | $ | 238,547 | $ | — | $ | 1,281,185 | |||||||||||||
Advisory Fees | — | — | — | — | 382,240 | 382,240 | |||||||||||||||||||
Transaction and Other Fees, Net | 133,004 | 109,510 | 2,798 | 1,880 | 321 | 247,513 | |||||||||||||||||||
Management Fee Offsets | (27,073 | ) | (4,950 | ) | (980 | ) | (390 | ) | — | (33,393 | ) | ||||||||||||||
Total Management and Advisory Fees, Net | 437,928 | 499,338 | 317,681 | 240,037 | 382,561 | 1,877,545 | |||||||||||||||||||
Performance Fees | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 37,393 | 22,844 | — | 78,670 | — | 138,907 | |||||||||||||||||||
Incentive Fees | — | 9,629 | 11,472 | 67,928 | — | 89,029 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | 33,490 | 913,418 | — | 24,610 | — | 971,518 | |||||||||||||||||||
Incentive Fees | — | 3,658 | 774 | (29,360 | ) | — | (24,928 | ) | |||||||||||||||||
Total Performance Fees | 70,883 | 949,549 | 12,246 | 141,848 | — | 1,174,526 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Realized | 44,988 | 27,972 | 17,722 | 11,299 | 594 | 102,575 | |||||||||||||||||||
Unrealized | 9,476 | 92,648 | (19,031 | ) | (708 | ) | 304 | 82,689 | |||||||||||||||||
Total Investment Income (Loss) | 54,464 | 120,620 | (1,309 | ) | 10,591 | 898 | 185,264 | ||||||||||||||||||
Interest and Dividend Revenue | 13,749 | 12,902 | 2,025 | 3,369 | 6,799 | 38,844 | |||||||||||||||||||
Other | 1,810 | (1,061 | ) | 7,902 | (853 | ) | (383 | ) | 7,415 | ||||||||||||||||
Total Revenues | 578,834 | 1,581,348 | 338,545 | 394,992 | 389,875 | 3,283,594 | |||||||||||||||||||
Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Compensation | 217,556 | 236,771 | 128,959 | 128,588 | 248,695 | 960,569 | |||||||||||||||||||
Performance Fee Compensation | |||||||||||||||||||||||||
Realized | |||||||||||||||||||||||||
Carried Interest | 1,465 | 10,103 | — | 32,047 | — | 43,615 | |||||||||||||||||||
Incentive Fees | — | 4,564 | 3,498 | 47,850 | — | 55,912 | |||||||||||||||||||
Unrealized | |||||||||||||||||||||||||
Carried Interest | (2,229 | ) | 221,140 | — | 19,033 | — | 237,944 | ||||||||||||||||||
Incentive Fees | — | 3,106 | 234 | (24,099 | ) | — | (20,759 | ) | |||||||||||||||||
Total Compensation and Benefits | 216,792 | 475,684 | 132,691 | 203,419 | 248,695 | 1,277,281 | |||||||||||||||||||
Other Operating Expenses | 120,918 | 103,859 | 65,072 | 49,955 | 81,538 | 421,342 | |||||||||||||||||||
Total Expenses | 337,710 | 579,543 | 197,763 | 253,374 | 330,233 | 1,698,623 | |||||||||||||||||||
Economic Income | $ | 241,124 | $ | 1,001,805 | $ | 140,782 | $ | 141,618 | $ | 59,642 | $ | 1,584,971 | |||||||||||||
Reconciliation of Total Segments to Income Before Provision for Taxes and Total Assets | ' | ||||||||||||||||||||||||
The following table reconciles the Total Segments to Blackstone’s Income Before Provision for Taxes and Total Assets as of and for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||||||
December 31, 2013 and the Year Then Ended | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 6,611,500 | $ | 1,668 | (a) | $ | 6,613,168 | ||||||||||||||||||
Expenses | $ | 3,015,461 | $ | 851,279 | (b) | $ | 3,866,740 | ||||||||||||||||||
Other Income | $ | — | $ | 402,133 | (c) | $ | 402,133 | ||||||||||||||||||
Economic Income | $ | 3,596,039 | $ | (447,478 | )(d) | $ | 3,148,561 | ||||||||||||||||||
Total Assets | $ | 16,429,521 | $ | 13,249,085 | (e) | $ | 29,678,606 | ||||||||||||||||||
December 31, 2012 and the Year Then Ended | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 4,066,774 | $ | (47,333 | )(a) | $ | 4,019,441 | ||||||||||||||||||
Expenses | $ | 2,025,767 | $ | 1,234,914 | (b) | $ | 3,260,681 | ||||||||||||||||||
Other Income | $ | — | $ | 256,145 | (c) | $ | 256,145 | ||||||||||||||||||
Economic Income | $ | 2,041,007 | $ | (1,026,102 | )(d) | $ | 1,014,905 | ||||||||||||||||||
Total Assets | $ | 13,855,479 | $ | 15,076,073 | (e) | $ | 28,931,552 | ||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||||||
Total | Consolidation | Blackstone | |||||||||||||||||||||||
Segments | Adjustments | Consolidated | |||||||||||||||||||||||
and Reconciling | |||||||||||||||||||||||||
Items | |||||||||||||||||||||||||
Revenues | $ | 3,283,594 | $ | (31,018 | )(a) | $ | 3,252,576 | ||||||||||||||||||
Expenses | $ | 1,698,623 | $ | 1,689,446 | (b) | $ | 3,388,069 | ||||||||||||||||||
Other Income | $ | — | $ | 212,751 | (c) | $ | 212,751 | ||||||||||||||||||
Economic Income | $ | 1,584,971 | $ | (1,507,713 | )(d) | $ | 77,258 | ||||||||||||||||||
(a) | The Revenues adjustment represents management and performance fees earned from Blackstone Funds which were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues. | ||||||||||||||||||||||||
(b) | The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses. | ||||||||||||||||||||||||
(c) | The Other Income adjustment results from the following: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss | $ | (5,575 | ) | $ | 43,393 | $ | 21,000 | ||||||||||||||||||
Fund Expenses Added in Consolidation | 30,727 | 37,548 | 30,129 | ||||||||||||||||||||||
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | (16,916 | ) | |||||||||||||||||||||
Transaction-Related Other Income (Loss) | (4,891 | ) | (28,353 | ) | 178,538 | ||||||||||||||||||||
Total Consolidation Adjustments and Reconciling Items | $ | 402,133 | $ | 256,145 | $ | 212,751 | |||||||||||||||||||
(d) | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Economic Income | $ | 3,596,039 | $ | 2,041,007 | $ | 1,584,971 | |||||||||||||||||||
Adjustments | |||||||||||||||||||||||||
Amortization of Intangibles | (106,643 | ) | (150,148 | ) | (220,865 | ) | |||||||||||||||||||
IPO and Acquisition-Related Charges | (722,707 | ) | (1,079,511 | ) | (1,269,932 | ) | |||||||||||||||||||
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | (16,916 | ) | |||||||||||||||||||||
Total Consolidation Adjustments and Reconciling Items | (447,478 | ) | (1,026,102 | ) | (1,507,713 | ) | |||||||||||||||||||
Income Before Provision for Taxes | $ | 3,148,561 | $ | 1,014,905 | $ | 77,258 | |||||||||||||||||||
(e) | The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data | ' | ||||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
Revenues | $ | 1,246,473 | $ | 1,440,470 | $ | 1,216,845 | $ | 2,709,380 | |||||||||
Expenses | 835,101 | 914,762 | 786,405 | 1,330,472 | |||||||||||||
Other Income | 67,210 | 40,966 | 87,952 | 206,005 | |||||||||||||
Income Before Provision for Taxes | $ | 478,582 | $ | 566,674 | $ | 518,392 | $ | 1,584,913 | |||||||||
Net Income | $ | 427,589 | $ | 510,592 | $ | 460,915 | $ | 1,493,823 | |||||||||
Net Income Attributable to The Blackstone Group L.P. | $ | 167,635 | $ | 211,148 | $ | 171,164 | $ | 621,255 | |||||||||
Net Income Per Common Unit—Basic and Diluted | |||||||||||||||||
Common Units—Basic | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 1.05 | |||||||||
Common Units—Diluted | $ | 0.29 | $ | 0.36 | $ | 0.29 | $ | 1.04 | |||||||||
Distributions Declared (a) | $ | 0.42 | $ | 0.3 | $ | 0.23 | $ | 0.23 | |||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2012 | ||||||||||||||
Revenues | $ | 952,036 | $ | 627,203 | $ | 1,223,089 | $ | 1,217,113 | |||||||||
Expenses | 783,793 | 739,819 | 851,390 | 885,679 | |||||||||||||
Other Income (Loss) | 288,142 | 248,230 | (135,960 | ) | (144,267 | ) | |||||||||||
Income Before Provision for Taxes | $ | 456,385 | $ | 135,614 | $ | 235,739 | $ | 187,167 | |||||||||
Net Income | $ | 417,632 | $ | 94,277 | $ | 196,502 | $ | 121,471 | |||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $ | 58,325 | $ | (74,964 | ) | $ | 128,824 | $ | 106,413 | ||||||||
Net Income (Loss) Per Common Unit—Basic and Diluted | |||||||||||||||||
Common Units—Basic | $ | 0.12 | $ | (0.14 | ) | $ | 0.24 | $ | 0.19 | ||||||||
Common Units—Diluted | $ | 0.11 | $ | (0.14 | ) | $ | 0.24 | $ | 0.19 | ||||||||
Distributions Declared (a) | $ | 0.22 | $ | 0.1 | $ | 0.1 | $ | 0.1 | |||||||||
(a) | Distributions declared reflects the calendar date of the declaration of each distribution. |
Organization_Additional_Inform
Organization - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Times | |
Segment | |
Person | |
Organization [Line Items] | ' |
Number of business segments | 5 |
Number of Blackstone founders managing the Partnership | 1 |
Number of times per year, holders of limited partnership interest can exchange their limited partnership interest | 4 |
Partnership Unit to Blackstone Common Unit ratio | 1 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ' |
Cash and cash equivalents maximum maturity term, months | '3 months |
Finite-lived intangible assets, useful life, years | '7 years 4 months 24 days |
Non-controlling interest, expiration period, minimum, years | '1 year |
Non-controlling interest, expiration period, maximum, years | '3 years |
Minimum | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Finite-lived intangible assets, useful life, years | '3 years |
Minimum | Leasehold Improvements | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life, years | '10 years |
Minimum | Other Long Lived Assets | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life, years | '3 years |
Maximum | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Finite-lived intangible assets, useful life, years | '20 years |
Maximum | Leasehold Improvements | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life, years | '15 years |
Maximum | Other Long Lived Assets | ' |
Summary Of Significant Accounting Policies [Line Items] | ' |
Property, plant and equipment, useful life, years | '7 years |
Recovered_Sheet2
Acquisitions, Goodwill and Intangible Assets - Additional Information (Detail) | 12 Months Ended | 1 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 05, 2013 | Jan. 05, 2012 | Jan. 05, 2012 | |
USD ($) | USD ($) | Private Equity | Real Estate | Hedge Fund Solutions | Credit | Financial Advisory | Strategic Partners Fund Solutions | Harbourmaster | Harbourmaster | |
Segment | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | ||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in goodwill | ' | ' | ' | ' | ' | ' | ' | $83,800,000 | ' | ' |
Increase in intangible assets | ' | ' | ' | ' | ' | ' | ' | 57,900,000 | ' | ' |
Purchase price in cash | ' | ' | ' | ' | ' | ' | ' | ' | 232,044,000 | 181,400,000 |
Acquisition-related costs | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business segments | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, carrying value | 1,787,392,000 | 1,703,602,000 | 778,300,000 | 421,700,000 | 172,100,000 | 346,400,000 | 68,900,000 | ' | ' | ' |
Expected amortization of intangibles, 2014 | 102,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization of intangibles, 2015 | 95,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization of intangibles, 2016 | 85,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization of intangibles, 2017 | 46,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected amortization of intangibles, 2018 | $46,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets expected to amortize over a weighted-average period | '7 years 4 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Estimated_Fair_Valu
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) (Harbourmaster) | 0 Months Ended | |
Jan. 05, 2012 | Jan. 05, 2012 | |
USD ($) | EUR (€) | |
Business Acquisition [Line Items] | ' | ' |
Purchase Price-Cash | $232,044,000 | € 181,400,000 |
Cash | 75,072,000 | ' |
Investments in CLOs | 9,305,000 | ' |
Accounts Receivable | 9,329,000 | ' |
Other Assets | 17,651,000 | ' |
Intangible Assets | 142,221,000 | ' |
Assets Acquired | 253,578,000 | ' |
Accounts Payable, Accrued Expenses and Other Liabilities | 21,534,000 | ' |
Net Assets Acquired | $232,044,000 | ' |
Intangible_Assets_Net_Detail
Intangible Assets, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Finite-Lived Intangible Assets / Contractual Rights | $1,594,128 | $1,536,244 | ' | ' |
Accumulated Amortization | -1,033,380 | -937,709 | ' | ' |
Intangible Assets, Net | $560,748 | $598,535 | $595,488 | $779,311 |
Changes_in_Partnerships_Intang
Changes in Partnership's Intangible Assets, Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Balance, Beginning of Year | $598,535 | $595,488 | $779,311 |
Amortization Expense | -95,671 | -139,174 | -207,591 |
Acquisitions | 57,884 | 142,221 | 23,768 |
Balance, End of Year | $560,748 | $598,535 | $595,488 |
Investments_Detail
Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ' | ' |
Equity Method Investments | $3,309,879 | $2,582,504 |
Blackstone's Treasury Cash Management Strategies | 1,104,800 | 1,411,680 |
Performance Fees | 4,674,792 | 2,780,217 |
Other Investments | 118,804 | 46,124 |
Investments | 21,729,523 | 20,847,270 |
Consolidated Blackstone Funds | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Investments of Consolidated Blackstone Funds | $12,521,248 | $14,026,745 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Investment [Line Items] | ' | ' | ' |
Equity method investment, percentage | 40.00% | ' | ' |
Recognized net gains related to equity method investments | $591.90 | $199.70 | $135.70 |
Consolidated Blackstone Funds | ' | ' | ' |
Investment [Line Items] | ' | ' | ' |
Investments | $487.80 | $500.50 | ' |
Reconciliation_of_Realized_and
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income - Net Gains from Fund Investment Activities in Condensed Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | $205,741 | ($3,502) | $226,427 |
Net Change in Unrealized Gains (Losses) | -26,800 | 58,602 | -308,364 |
Realized and Net Change in Unrealized Gains (Losses) from Blackstone Funds | 178,941 | 55,100 | -81,937 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 202,723 | 201,045 | 96,872 |
Other Income-Net Gains from Fund Investment Activities | $381,664 | $256,145 | $14,935 |
Summarized_Financial_Informati
Summarized Financial Information of Partnership's Equity Method Investments (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | $116,277,556 | $90,820,613 | $70,860,453 | |||
Other Assets | 7,753,214 | 6,741,144 | 5,631,149 | |||
Total Assets | 124,030,770 | 97,561,757 | 76,491,602 | |||
Debt | 5,934,982 | 3,924,904 | 2,817,756 | |||
Other Liabilities | 2,777,097 | 2,859,958 | 1,865,176 | |||
Total Liabilities | 8,712,079 | 6,784,862 | 4,682,932 | |||
Partners' Capital | 115,318,691 | 90,776,895 | 71,808,670 | |||
Total Liabilities and Partners' Capital | 124,030,770 | 97,561,757 | 76,491,602 | |||
Interest Income | 1,066,180 | 1,191,461 | 663,463 | |||
Other Income | 984,547 | 428,249 | 788,620 | |||
Interest Expense | -158,673 | -123,269 | -58,812 | |||
Other Expenses | -439,766 | -323,804 | -260,028 | |||
Net Realized and Unrealized Gain from Investments | 25,336,533 | 11,057,981 | 5,905,990 | |||
Net Income | 26,788,821 | 12,230,618 | 7,039,233 | |||
Private Equity | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | 35,516,755 | 31,308,915 | 25,788,678 | |||
Other Assets | 389,265 | 1,289,961 | 321,271 | |||
Total Assets | 35,906,020 | 32,598,876 | 26,109,949 | |||
Debt | 1,691,018 | 1,478,929 | 863,672 | |||
Other Liabilities | 54,909 | 91,519 | 194,873 | |||
Total Liabilities | 1,745,927 | 1,570,448 | 1,058,545 | |||
Partners' Capital | 34,160,093 | 31,028,428 | 25,051,404 | |||
Total Liabilities and Partners' Capital | 35,906,020 | 32,598,876 | 26,109,949 | |||
Interest Income | 294,171 | 350,153 | 116 | |||
Other Income | 10,580 | 13,255 | 516,729 | |||
Interest Expense | -37,846 | -23,060 | -14,826 | |||
Other Expenses | -88,957 | -48,926 | -50,591 | |||
Net Realized and Unrealized Gain from Investments | 9,002,197 | 3,916,697 | 1,510,622 | |||
Net Income | 9,180,145 | 4,208,119 | 1,962,050 | |||
Real Estate | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | 57,053,881 | 40,230,098 | 29,856,855 | |||
Other Assets | 3,441,977 | 1,714,990 | 1,736,245 | |||
Total Assets | 60,495,858 | 41,945,088 | 31,593,100 | |||
Debt | 3,013,762 | 1,336,305 | 1,384,867 | |||
Other Liabilities | 886,445 | 703,412 | 334,175 | |||
Total Liabilities | 3,900,207 | 2,039,717 | 1,719,042 | |||
Partners' Capital | 56,595,651 | 39,905,371 | 29,874,058 | |||
Total Liabilities and Partners' Capital | 60,495,858 | 41,945,088 | 31,593,100 | |||
Interest Income | 140,879 | 128,624 | 82,166 | |||
Other Income | 752,184 | 294,105 | 159,400 | |||
Interest Expense | -51,544 | -39,103 | -19,142 | |||
Other Expenses | -108,580 | -64,569 | -54,907 | |||
Net Realized and Unrealized Gain from Investments | 13,225,141 | 4,979,027 | 4,086,549 | |||
Net Income | 13,958,080 | 5,298,084 | 4,254,066 | |||
Hedge Fund Solutions | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | 11,529,163 | 8,193,041 | 6,322,821 | |||
Other Assets | 1,114,404 | 1,173,627 | 1,167,162 | |||
Total Assets | 12,643,567 | 9,366,668 | 7,489,983 | |||
Debt | 63,830 | 65,103 | 123,925 | |||
Other Liabilities | 689,964 | 642,925 | 461,854 | |||
Total Liabilities | 753,794 | 708,028 | 585,779 | |||
Partners' Capital | 11,889,773 | 8,658,640 | 6,904,204 | |||
Total Liabilities and Partners' Capital | 12,643,567 | 9,366,668 | 7,489,983 | |||
Interest Income | 224 | 194 | 89 | |||
Other Income | 89,632 | 36,797 | 19,275 | |||
Interest Expense | -310 | -1,024 | -172 | |||
Other Expenses | -71,326 | -60,114 | -51,063 | |||
Net Realized and Unrealized Gain from Investments | 1,127,173 | 798,892 | -71,790 | |||
Net Income | 1,145,393 | 774,745 | -103,661 | |||
Credit | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | 12,150,918 | 11,066,214 | 8,887,081 | |||
Other Assets | 2,678,742 | 2,516,388 | 2,355,318 | |||
Total Assets | 14,829,660 | 13,582,602 | 11,242,399 | |||
Debt | 1,165,405 | 1,043,595 | 444,313 | |||
Other Liabilities | 1,131,557 | 1,401,910 | 848,534 | |||
Total Liabilities | 2,296,962 | 2,445,505 | 1,292,847 | |||
Partners' Capital | 12,532,698 | 11,137,097 | 9,949,552 | |||
Total Liabilities and Partners' Capital | 14,829,660 | 13,582,602 | 11,242,399 | |||
Interest Income | 630,902 | 712,490 | 581,090 | |||
Other Income | 30,937 | 7,283 | 26,760 | |||
Interest Expense | -68,973 | -60,082 | -24,672 | |||
Other Expenses | -105,706 | -101,451 | -78,427 | |||
Net Realized and Unrealized Gain from Investments | 1,979,078 | 1,362,351 | 380,609 | |||
Net Income | 2,466,238 | 1,920,591 | 885,360 | |||
Other | ' | ' | ' | |||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | |||
Investments | 26,839 | [1] | 22,345 | [1] | 5,018 | [1] |
Other Assets | 128,826 | [1] | 46,178 | [1] | 51,153 | [1] |
Total Assets | 155,665 | [1] | 68,523 | [1] | 56,171 | [1] |
Debt | 967 | [1] | 972 | [1] | 979 | [1] |
Other Liabilities | 14,222 | [1] | 20,192 | [1] | 25,740 | [1] |
Total Liabilities | 15,189 | [1] | 21,164 | [1] | 26,719 | [1] |
Partners' Capital | 140,476 | [1] | 47,359 | [1] | 29,452 | [1] |
Total Liabilities and Partners' Capital | 155,665 | [1] | 68,523 | [1] | 56,171 | [1] |
Interest Income | 4 | [1] | ' | 2 | [1] | |
Other Income | 101,214 | [1] | 76,809 | [1] | 66,456 | [1] |
Other Expenses | -65,197 | [1] | -48,744 | [1] | -25,040 | [1] |
Net Realized and Unrealized Gain from Investments | 2,944 | [1] | 1,014 | [1] | ' | |
Net Income | $38,965 | [1] | $29,079 | [1] | $41,418 | [1] |
[1] | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone's segments. |
Realized_and_Net_Change_in_Unr
Realized and Net Change in Unrealized Gains (Losses) on Investments Held by Blackstone's Treasury Cash Management Strategies (Detail) (Blackstone's Treasury Cash Management Strategies, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Blackstone's Treasury Cash Management Strategies | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | ($5,793) | $9,095 | $9,738 |
Net Change in Unrealized Gains (Losses) | -9,342 | -502 | 641 |
Total realized and net change in unrealized gains (losses) | ($15,135) | $8,593 | $10,379 |
Performance_Fees_Allocated_to_
Performance Fees Allocated to Funds (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | ' |
Performance Fees, December 31, 2012 | $2,780,217 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 2,981,757 |
Foreign Exchange Gain | 7,733 |
Fund Distributions | -1,094,915 |
Performance Fees, December 31, 2013 | 4,674,792 |
Private Equity | ' |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | ' |
Performance Fees, December 31, 2012 | 780,474 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 614,554 |
Fund Distributions | -423,168 |
Performance Fees, December 31, 2013 | 971,860 |
Real Estate | ' |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | ' |
Performance Fees, December 31, 2012 | 1,633,279 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 2,084,222 |
Foreign Exchange Gain | 7,733 |
Fund Distributions | -456,628 |
Performance Fees, December 31, 2013 | 3,268,606 |
Hedge Fund Solutions | ' |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | ' |
Performance Fees, December 31, 2012 | 6,214 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 68,609 |
Fund Distributions | -65,355 |
Performance Fees, December 31, 2013 | 9,468 |
Credit | ' |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | ' |
Performance Fees, December 31, 2012 | 360,250 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 214,372 |
Fund Distributions | -149,764 |
Performance Fees, December 31, 2013 | $424,858 |
Realized_and_Net_Change_in_Unr1
Realized and Net Change in Unrealized Gains (Losses) on Investments (Detail) (Other, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other | ' | ' | ' |
Gain (Loss) on Investments [Line Items] | ' | ' | ' |
Realized Gains | $13,468 | $743 | $948 |
Net Change in Unrealized Gains (Losses) | -6,758 | -371 | -21,968 |
Total realized and net change in unrealized gains (losses) | $6,710 | $372 | ($21,020) |
Summary_of_Fair_Value_by_Strat
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Detail) (USD $) | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | $928,590 | |
Unfunded Commitments | 3,590 | |
Diversified Instruments | ' | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | 142,547 | [1] |
Unfunded Commitments | 3,590 | [1] |
Credit Driven | ' | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | 180,996 | [2] |
Event Driven | ' | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | 121,455 | [3] |
Equity | ' | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | 424,971 | [4] |
Commodities | ' | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' | |
Fair Value | $58,621 | [5] |
[1] | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 65% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 28% of the fair value of the investments in this category represent investments in hedge funds that are in the process of liquidating. Distributions from these funds will be received as underlying investments are liquidated. The time at which this redemption restriction may lapse cannot be estimated. The remaining 7% of investments in this category are redeemable as of the reporting date. As of the reporting date, the investee fund manager had elected to side-pocket 18% of Blackstone's investments in this category. | |
[2] | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 94% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 6% of the total fair value in the credit driven category are subject to redemption restrictions at the discretion of the investee fund manager who may choose (but may not have exercised such ability) to side-pocket such investments. As of the reporting date, the investee fund manager had not elected to side-pocket any of Blackstone's investments in this category. | |
[3] | The Event Driven category includes investments in hedge funds whose primary investing strategy is to identify certain event-driven investments. Withdrawals are not permitted in this category. Distributions will be received as the underlying investments are liquidated. | |
[4] | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Withdrawals are generally not permitted for the investments in this category. Distributions will be received as the underlying investments are liquidated. | |
[5] | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Withdrawals are not permitted for investments representing 95% of the fair value of investments in this category. Distributions will be received as the underlying investments are liquidated. The remaining 5% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
Summary_of_Fair_Value_by_Strat1
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Parenthetical) (Detail) | Dec. 31, 2013 |
Diversified Instruments | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 65.00% |
Percentage of investments in hedge funds in process of liquidation | 28.00% |
Percentage of investments side pocketed as of reporting date | 18.00% |
Percentage of investments redeemable as of reporting date | 7.00% |
Credit Driven | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 94.00% |
Percentage of investments elected to side pocket | 6.00% |
Commodities | ' |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ' |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 5.00% |
Percentage of investment for which withdrawals are not permitted | 95.00% |
Summary_of_Aggregate_Notional_
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | $2,946,033 | $1,306,817 |
Derivative Liabilities, Notional | 1,495,964 | 1,035,631 |
Derivative Assets, Fair Value | 44,899 | 99,374 |
Derivative Liabilities, Fair Value | 14,300 | 22,070 |
Freestanding Derivatives | Interest Rate Contracts | Blackstone - Other | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | 1,994,276 | 689,300 |
Derivative Liabilities, Notional | 1,083,140 | 636,555 |
Derivative Assets, Fair Value | 8,521 | 55,270 |
Derivative Liabilities, Fair Value | 2,676 | 4,116 |
Freestanding Derivatives | Interest Rate Contracts | Investments Of Consolidated Blackstone Funds | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | 62,193 | 165,517 |
Derivative Liabilities, Notional | ' | 90,500 |
Derivative Assets, Fair Value | 3,726 | 6,132 |
Derivative Liabilities, Fair Value | ' | 772 |
Freestanding Derivatives | Foreign Currency Contracts | Blackstone - Other | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | 166,066 | 16,771 |
Derivative Liabilities, Notional | 163,787 | 7,025 |
Derivative Assets, Fair Value | 1,480 | 74 |
Derivative Liabilities, Fair Value | 1,015 | 81 |
Freestanding Derivatives | Foreign Currency Contracts | Investments Of Consolidated Blackstone Funds | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | 396,569 | 435,229 |
Derivative Liabilities, Notional | 239,037 | 301,551 |
Derivative Assets, Fair Value | 30,830 | 37,898 |
Derivative Liabilities, Fair Value | 10,018 | 17,101 |
Freestanding Derivatives | Total Return Swaps | Blackstone - Other | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Assets, Notional | 326,929 | ' |
Derivative Assets, Fair Value | 342 | ' |
Freestanding Derivatives | Credit Default Swaps | Blackstone - Other | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liabilities, Notional | 10,000 | ' |
Derivative Liabilities, Fair Value | $591 | ' |
Summary_of_Impact_of_Derivativ
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Financial Instruments [Line Items] | ' | ' | ' |
Hedge Ineffectiveness | ' | $548 | $4,649 |
Excluded from Assessment of Effectiveness | ' | -938 | -3,465 |
Realized Gain | ' | 22,941 | ' |
Realized Gains (Losses) | 38,980 | -6,569 | -7,159 |
Net Change in Unrealized Gain (Loss) | 1,081 | 6,611 | -24,697 |
Freestanding Derivatives | Interest Rate Contracts | ' | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | 34,206 | -2,752 | -8,634 |
Net Change in Unrealized Gain (Loss) | -1,947 | 12,134 | 8,718 |
Freestanding Derivatives | Foreign Currency Contracts | ' | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | 4,022 | -3,816 | 1,739 |
Net Change in Unrealized Gain (Loss) | 2,636 | -5,523 | -33,408 |
Freestanding Derivatives | Credit Default Swaps | ' | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | 752 | -1 | -111 |
Freestanding Derivatives | Other | ' | ' | ' |
Derivative Financial Instruments [Line Items] | ' | ' | ' |
Realized Gains (Losses) | ' | ' | -153 |
Net Change in Unrealized Gain (Loss) | $392 | ' | ($7) |
Recovered_Sheet3
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Derivative [Line Items] | ' |
Net gain (loss) on hedged items | $64.20 |
Hedged gain (loss) remaining amortization period end date | 15-Aug-19 |
Summary_of_Financial_Instrumen
Summary of Financial Instruments for Which Fair Value Option Has Been Elected (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets of Consolidated CLO Vehicles: Corporate Loans | $8,466,889 | [1] | $11,053,513 | [1] |
Assets of Consolidated CLO Vehicles: Corporate Bonds | 161,382 | [1] | 162,456 | [1] |
Assets of Consolidated CLO Vehicles: Other | 41,061 | [1] | 18,285 | [1] |
Total Assets | 8,895,688 | 11,281,064 | ||
Liabilities of Consolidated CLO Vehicles: Senior Secured Notes | 8,302,572 | [1] | 10,695,136 | [1] |
Liabilities of Consolidated CLO Vehicles: Subordinated Notes | 610,435 | [1] | 846,471 | [1] |
Total Liabilities | 8,913,007 | 11,541,607 | ||
Loans And Receivables | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Loans and Receivables | 137,788 | 30,663 | ||
Equity and Preferred Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Equity and Preferred Securities | 88,568 | 16,147 | ||
Corporate Loans | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets of Consolidated CLO Vehicles: Corporate Loans | 8,466,889 | 11,053,513 | ||
Corporate Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets of Consolidated CLO Vehicles: Corporate Bonds | 161,382 | 162,456 | ||
Other | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Assets of Consolidated CLO Vehicles: Other | 41,061 | 18,285 | ||
Senior Secured Notes | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities of Consolidated CLO Vehicles: Senior Secured Notes | 8,302,572 | 10,695,136 | ||
Subordinated Notes | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Liabilities of Consolidated CLO Vehicles: Subordinated Notes | $610,435 | $846,471 | ||
[1] | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, is presumed to have control. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. |
Realized_and_Net_Change_in_Unr2
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Realized Gains (Losses) | Assets | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | $41,831 | ($33,271) | $90,709 |
Realized Gains (Losses) | Liabilities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -6,078 | 17 | 10,492 |
Realized Gains (Losses) | Loans And Receivables | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 43 | -308 | ' |
Realized Gains (Losses) | Equity and Preferred Securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -2,833 | -353 | ' |
Realized Gains (Losses) | Corporate Loans | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 37,464 | -35,428 | 76,314 |
Realized Gains (Losses) | Corporate Bonds | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 4,510 | 393 | 1,099 |
Realized Gains (Losses) | Other | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 2,647 | 2,425 | 13,296 |
Realized Gains (Losses) | Senior Secured Notes | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -6,078 | 17 | 5,798 |
Realized Gains (Losses) | Subordinated Notes | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | ' | ' | 4,694 |
Net Change In Unrealized Gains (Losses) | Assets | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 173,606 | 579,906 | -374,871 |
Net Change In Unrealized Gains (Losses) | Liabilities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -388,664 | -672,391 | 102,128 |
Net Change In Unrealized Gains (Losses) | Loans And Receivables | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -1,101 | -375 | -228 |
Net Change In Unrealized Gains (Losses) | Equity and Preferred Securities | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 7,273 | 500 | ' |
Net Change In Unrealized Gains (Losses) | Corporate Loans | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | 172,968 | 554,628 | -396,946 |
Net Change In Unrealized Gains (Losses) | Corporate Bonds | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -5,058 | 13,264 | -7,605 |
Net Change In Unrealized Gains (Losses) | Other | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -476 | 11,889 | 29,908 |
Net Change In Unrealized Gains (Losses) | Senior Secured Notes | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | -485,655 | -603,250 | 58,067 |
Net Change In Unrealized Gains (Losses) | Subordinated Notes | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' |
Realized and net change in unrealized gains (losses) on financial instruments | $96,991 | ($69,141) | $44,061 |
Information_for_Financial_Inst
Information for Financial Instruments on Which Fair Value Option was Elected (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Uncollected principal balance on financial instruments that exceeded fair value total | ($283,576) | ($587,726) | ||
Fair value of financial instruments more than one day past due | 57,837 | [1] | 36,153 | [1] |
Uncollected principal balance on financial instruments that exceeds fair value more than one day past due | -176,379 | [1] | -73,335 | [1] |
Loans And Receivables | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Uncollected principal balance on financial instruments that exceeded fair value total | -533 | -292 | ||
Corporate Loans | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Uncollected principal balance on financial instruments that exceeded fair value total | -281,254 | -586,450 | ||
Fair value of financial instruments more than one day past due | 57,837 | [1] | 35,322 | [1] |
Uncollected principal balance on financial instruments that exceeds fair value more than one day past due | -176,379 | [1] | -73,291 | [1] |
Corporate Bonds | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Uncollected principal balance on financial instruments that exceeded fair value total | -1,789 | -984 | ||
Fair value of financial instruments more than one day past due | ' | 831 | [1] | |
Uncollected principal balance on financial instruments that exceeds fair value more than one day past due | ' | ($44) | [1] | |
[1] | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
Information_for_Financial_Inst1
Information for Financial Instruments on Which Fair Value Option was Elected (Parenthetical) (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' |
Loans and bonds contractual payment past due, number days | '1 day | '1 day |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities at Fair Value (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investment Funds | $897,843 | [1] | $892,264 | [1] |
Equity Securities | 375,662 | [1] | 341,612 | [1] |
Partnership and LLC Interests | 1,343,458 | [1] | 593,738 | [1] |
Debt Instruments | 1,200,397 | [1] | 920,847 | [1] |
Corporate Loans | 8,466,889 | [1] | 11,053,513 | [1] |
Corporate Bonds | 161,382 | [1] | 162,456 | [1] |
Other | 41,061 | [1] | 18,285 | [1] |
Investments of Consolidated Funds | 12,521,248 | [1] | 14,026,745 | [1] |
Blackstone's Treasury Cash Management Strategies | 1,104,800 | 1,411,680 | ||
Money Market Funds | 173,781 | 129,549 | ||
Freestanding Derivatives, Assets | 44,899 | 99,374 | ||
Securities Sold, Not Yet Purchased | 76,195 | 226,425 | ||
Total Financial Liabilities | 9,003,502 | 11,790,102 | ||
Loans and Receivables | 137,788 | 30,663 | ||
Other Investments | 118,804 | 46,124 | ||
Total Financial Assets | 14,066,764 | 15,700,105 | ||
Senior Secured Notes | 8,302,572 | [1] | 10,695,136 | [1] |
Subordinated Notes | 610,435 | [1] | 846,471 | [1] |
Freestanding Derivatives-Foreign Currency Contracts | 10,018 | [1] | 17,101 | [1] |
Freestanding Derivatives-Interest Rate Contracts | ' | 772 | [1] | |
Foreign Currency Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives - Foreign Currency Contracts | 30,830 | [1] | 37,898 | [1] |
Freestanding Derivatives, Assets | 1,480 | 74 | ||
Freestanding Derivatives, Liabilities | 1,015 | 81 | ||
Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives - Interest Rate Contracts | 3,726 | [1] | 6,132 | [1] |
Freestanding Derivatives, Assets | 8,521 | 55,270 | ||
Freestanding Derivatives, Liabilities | 2,676 | 4,116 | ||
Total Return Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives, Assets | 342 | ' | ||
Credit Default Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives, Liabilities | 591 | ' | ||
Level 1 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Equity Securities | 51,147 | [1] | 95,898 | [1] |
Partnership and LLC Interests | ' | 212 | [1] | |
Other | 3,477 | [1] | ' | |
Investments of Consolidated Funds | 54,624 | [1] | 96,110 | [1] |
Blackstone's Treasury Cash Management Strategies | 19,629 | 672,766 | ||
Money Market Funds | 173,781 | 129,549 | ||
Total Financial Liabilities | 2,484 | 277 | ||
Other Investments | 87,068 | 12,443 | ||
Total Financial Assets | 342,525 | 911,354 | ||
Level 1 | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives, Assets | 7,423 | 486 | ||
Freestanding Derivatives, Liabilities | 2,484 | 277 | ||
Level 2 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investment Funds | ' | 1,799 | [1] | |
Equity Securities | 130,816 | [1] | 28,654 | [1] |
Partnership and LLC Interests | 88,555 | [1] | 12,375 | [1] |
Debt Instruments | 1,154,902 | [1] | 903,123 | [1] |
Corporate Loans | 7,537,661 | [1] | 9,775,070 | [1] |
Corporate Bonds | 161,382 | [1] | 146,625 | [1] |
Other | ' | 1,260 | [1] | |
Investments of Consolidated Funds | 9,107,872 | [1] | 10,912,936 | [1] |
Blackstone's Treasury Cash Management Strategies | 1,041,039 | 737,708 | ||
Securities Sold, Not Yet Purchased | 76,195 | 226,425 | ||
Total Financial Liabilities | 88,011 | 248,218 | ||
Other Investments | 17,270 | 6,783 | ||
Total Financial Assets | 10,169,101 | 11,712,285 | ||
Freestanding Derivatives-Foreign Currency Contracts | 10,018 | [1] | 17,101 | [1] |
Freestanding Derivatives-Interest Rate Contracts | ' | 772 | [1] | |
Level 2 | Foreign Currency Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives - Foreign Currency Contracts | 30,830 | [1] | 37,898 | [1] |
Freestanding Derivatives, Assets | 1,480 | 74 | ||
Freestanding Derivatives, Liabilities | 1,015 | 81 | ||
Level 2 | Interest Rate Contracts | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives - Interest Rate Contracts | 3,726 | [1] | 6,132 | [1] |
Freestanding Derivatives, Assets | 1,098 | 54,784 | ||
Freestanding Derivatives, Liabilities | 192 | 3,839 | ||
Level 2 | Total Return Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives, Assets | 342 | ' | ||
Level 2 | Credit Default Swaps | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Freestanding Derivatives, Liabilities | 591 | ' | ||
Level 3 | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Investment Funds | 897,843 | [1] | 890,465 | [1] |
Equity Securities | 193,699 | [1] | 217,060 | [1] |
Partnership and LLC Interests | 1,254,903 | [1] | 581,151 | [1] |
Debt Instruments | 45,495 | [1] | 17,724 | [1] |
Corporate Loans | 929,228 | [1] | 1,278,443 | [1] |
Corporate Bonds | ' | 15,831 | [1] | |
Other | 37,584 | [1] | 17,025 | [1] |
Investments of Consolidated Funds | 3,358,752 | [1] | 3,017,699 | [1] |
Blackstone's Treasury Cash Management Strategies | 44,132 | 1,206 | ||
Total Financial Liabilities | 8,913,007 | 11,541,607 | ||
Loans and Receivables | 137,788 | 30,663 | ||
Other Investments | 14,466 | 26,898 | ||
Total Financial Assets | 3,555,138 | 3,076,466 | ||
Senior Secured Notes | 8,302,572 | [1] | 10,695,136 | [1] |
Subordinated Notes | $610,435 | [1] | $846,471 | [1] |
[1] | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, is presumed to have control. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. |
Summary_of_Fair_Value_Transfer
Summary of Fair Value Transfers Between Level I and Level II (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Transfers from Level I into Level II | $28,670 | [1] | $15,928 | [1] |
Transfers from Level II into Level I | $1,308 | [2] | $588 | [2] |
[1] | Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. | |||
[2] | Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. |
Summary_of_Quantitative_Inputs
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 8,895,688 | 11,281,064 | ||
Fair value liabilities | 8,913,007 | 11,541,607 | ||
Discounted Cash Flows | Collateralized Loan Obligations | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Recovery Lag | '12 months | '12 months | ||
Discounted Cash Flows | Collateralized Loan Obligations | LIBOR | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Reinvestment Rate | 4.00% | 4.00% | ||
Discounted Cash Flows | Collateralized Loan Obligations | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 2.60% | [1] | 3.90% | [1] |
Pre-payment Rate | 18.00% | [1] | 18.00% | [1] |
Recovery Rate | 66.00% | [1] | 66.00% | [1] |
Default Rate | 2.10% | [1] | 2.10% | [1] |
Discounted Cash Flows | Collateralized Loan Obligations | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 0.40% | 1.10% | ||
Pre-payment Rate | 5.00% | 5.00% | ||
Recovery Rate | 30.00% | 30.00% | ||
Default Rate | 2.00% | 2.00% | ||
Discounted Cash Flows | Collateralized Loan Obligations | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 24.20% | 50.00% | ||
Pre-payment Rate | 20.00% | 20.00% | ||
Recovery Rate | 70.00% | 70.00% | ||
Default Rate | 3.00% | 5.00% | ||
Level 3 | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 3,555,138 | 3,076,466 | ||
Level 3 | Discounted Cash Flows | Collateralized Loan Obligations | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value liabilities | 8,913,007 | 11,541,607 | ||
Blackstone's Treasury Cash Management Strategies | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | ' | 12.00% | ||
Pre-payment Rate | 20.00% | 20.00% | ||
Recovery Lag | '12 months | '12 months | ||
Recovery Rate | ' | 70.00% | ||
Default Rate | 2.00% | 2.00% | ||
Blackstone's Treasury Cash Management Strategies | Discounted Cash Flows | LIBOR | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Reinvestment Rate | 4.00% | 4.00% | ||
Blackstone's Treasury Cash Management Strategies | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 6.60% | [1] | ' | |
Recovery Rate | 66.00% | [1] | ' | |
Blackstone's Treasury Cash Management Strategies | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 6.00% | ' | ||
Recovery Rate | 30.00% | ' | ||
Blackstone's Treasury Cash Management Strategies | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 8.60% | ' | ||
Recovery Rate | 70.00% | ' | ||
Blackstone's Treasury Cash Management Strategies | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 17,040 | 1,006 | ||
Blackstone's Treasury Cash Management Strategies | Level 3 | Net Asset Value Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 10,099 | ' | ||
Blackstone's Treasury Cash Management Strategies | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | ' | 200 | ||
Blackstone's Treasury Cash Management Strategies | Level 3 | Third Party Pricing Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 16,993 | ' | ||
Loans And Receivables | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 12.60% | [1] | 13.70% | [1] |
Loans And Receivables | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 11.00% | 11.80% | ||
Loans And Receivables | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 14.80% | 25.90% | ||
Loans And Receivables | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | ' | 8.7 | ||
Loans And Receivables | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 137,788 | 30,620 | ||
Loans And Receivables | Level 3 | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | ' | 43 | ||
Other | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 12.50% | 12.50% | ||
Other | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 2,814 | 5,647 | ||
Other | Level 3 | Net Asset Value Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 3,725 | 17,901 | ||
Other | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 7,927 | 3,350 | ||
Investments Of Consolidated Blackstone Funds | Level 3 | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 3,358,752 | 3,017,699 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 12.40% | [1] | 11.20% | [1] |
Revenue CAGR | 6.80% | [1] | 5.60% | [1] |
Exit Multiple - EBITDA | 8.9 | [1] | 9.2 | [1] |
Exit Multiple - P/E | 9.8 | [1] | 10.1 | [1] |
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 9.20% | 8.40% | ||
Revenue CAGR | 0.90% | 0.70% | ||
Exit Multiple - EBITDA | 5 | 5.8 | ||
Exit Multiple - P/E | 8.5 | 8.5 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 26.30% | 25.10% | ||
Revenue CAGR | 46.20% | 83.40% | ||
Exit Multiple - EBITDA | 14 | 11.5 | ||
Exit Multiple - P/E | 17 | 17 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Book Value Multiple | ' | 0.9 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Market Comparable Companies | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 6.9 | [1] | 7.8 | [1] |
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Market Comparable Companies | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 6.3 | 5 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Market Comparable Companies | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 7.5 | 8.7 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 112,117 | 151,899 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Level 3 | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 275 | 1,602 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 78,154 | 61,479 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Level 3 | Third Party Pricing Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 50 | 200 | ||
Investments Of Consolidated Blackstone Funds | Consolidated Equity Securities | Level 3 | Other | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 3,103 | 1,880 | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 9.00% | [1] | 8.90% | [1] |
Revenue CAGR | 5.50% | [1] | 5.30% | [1] |
Exit Multiple - EBITDA | 9.4 | [1] | 10 | [1] |
Exit Capitalization Rate | 7.00% | [1] | 7.00% | [1] |
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 5.00% | 5.30% | ||
Revenue CAGR | -0.70% | -8.20% | ||
Exit Multiple - EBITDA | 3 | 4.5 | ||
Exit Capitalization Rate | 4.30% | 1.00% | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 22.50% | 22.60% | ||
Revenue CAGR | 17.70% | 62.00% | ||
Exit Multiple - EBITDA | 23.3 | 15.4 | ||
Exit Capitalization Rate | 10.50% | 10.50% | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 557,534 | 562,678 | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 687,246 | 13,316 | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Level 3 | Third Party Pricing Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 9,181 | 5,157 | ||
Investments Of Consolidated Blackstone Funds | Partnership And LLC Interests | Level 3 | Other | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 942 | ' | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Pre-payment Rate | 20.00% | 20.00% | ||
Recovery Lag | '12 months | '12 months | ||
Recovery Rate | 67.00% | 70.00% | ||
Default Rate | 2.00% | 2.00% | ||
Exit Multiple - EBITDA | ' | 9.5 | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | LIBOR | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Reinvestment Rate | 4.00% | 4.00% | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 19.20% | [1] | 15.60% | [1] |
Revenue CAGR | 4.80% | [1] | 3.80% | [1] |
Exit Multiple - EBITDA | 10.8 | [1] | ' | |
Exit Capitalization Rate | 6.70% | [1] | 7.10% | [1] |
Investments Of Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 10.70% | 7.80% | ||
Revenue CAGR | 4.80% | 2.90% | ||
Exit Multiple - EBITDA | 5.8 | ' | ||
Exit Capitalization Rate | 6.40% | 7.00% | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 21.00% | 42.00% | ||
Revenue CAGR | 5.50% | 5.10% | ||
Exit Multiple - EBITDA | 11.1 | ' | ||
Exit Capitalization Rate | 7.50% | 7.50% | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Market Comparable Companies | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 6.2 | [1] | 6.7 | [1] |
Investments Of Consolidated Blackstone Funds | Debt Instruments | Market Comparable Companies | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 6.2 | 6.5 | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Market Comparable Companies | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 8 | 7.5 | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 11,814 | 13,056 | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Level 3 | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 234 | 664 | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 1,772 | ' | ||
Investments Of Consolidated Blackstone Funds | Debt Instruments | Level 3 | Third Party Pricing Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 31,675 | 4,004 | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Revenue CAGR | 4.20% | ' | ||
Exit Multiple - EBITDA | 8 | ' | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 7.80% | [1] | 9.30% | [1] |
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 7.00% | 7.00% | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Discounted Cash Flows | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Discount Rate | 14.00% | 15.70% | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | Weighted Average | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 7.3 | [1] | 6.5 | [1] |
Liquidity Discount | ' | 8.40% | [1] | |
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | Minimum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 3.5 | 2 | ||
Liquidity Discount | ' | 1.00% | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | Maximum | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
EBITDA Multiple | 11.3 | 13 | ||
Liquidity Discount | ' | 25.00% | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Level 3 | Discounted Cash Flows | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 57,936 | 132,171 | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Level 3 | Market Comparable Companies | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 293,382 | 278,972 | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Level 3 | Transaction Price Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 80 | 10 | ||
Investments Of Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Level 3 | Third Party Pricing Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 615,414 | 900,146 | ||
Investments Of Consolidated Blackstone Funds | Investment Funds | Level 3 | Net Asset Value Valuation Technique | ' | ' | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | ||
Fair value assets | 897,843 | 890,465 | ||
[1] | Unobservable inputs were weighted based on the fair value of the investments included in the range. |
Summary_of_Changes_in_Financia
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used (Detail) (Level 3, USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Balance, Beginning of Period | $3,076,466 | $2,132,488 | ||
Transfer In Due to Consolidation and Acquisition | 684,991 | [1] | 246,022 | [1] |
Transfer Out Due to Deconsolidation | -284,960 | -1,599 | ||
Transfer In to Level III | 637,077 | [2] | 687,225 | [2] |
Transfer Out of Level III | -490,878 | [2] | -150,097 | [2] |
Purchases | 1,232,986 | 956,646 | ||
Sales | -1,628,100 | -964,363 | ||
Settlements | 354 | -46 | ||
Realized Gains (Losses), Net | 78,658 | -17,060 | ||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 248,544 | 187,250 | ||
Balance, End of Period | 3,555,138 | 3,076,466 | ||
Investments Of Consolidated Funds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Balance, Beginning of Period | 3,017,699 | 2,103,769 | ||
Transfer In Due to Consolidation and Acquisition | 673,031 | [1] | 246,022 | [1] |
Transfer Out Due to Deconsolidation | -284,960 | -1,599 | ||
Transfer In to Level III | 624,450 | [2] | 687,225 | [2] |
Transfer Out of Level III | -481,637 | [2] | -150,097 | [2] |
Purchases | 733,356 | 772,305 | ||
Sales | -1,249,271 | -809,367 | ||
Realized Gains (Losses), Net | 64,681 | -17,201 | ||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 261,403 | 186,642 | ||
Balance, End of Period | 3,358,752 | 3,017,699 | ||
Loans And Receivables | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Balance, Beginning of Period | 30,663 | 8,555 | ||
Purchases | 370,508 | 176,641 | ||
Sales | -265,996 | -154,293 | ||
Settlements | 2,312 | -46 | ||
Realized Gains (Losses), Net | 43 | -308 | ||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 258 | 114 | ||
Balance, End of Period | 137,788 | 30,663 | ||
Other | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Balance, Beginning of Period | 28,104 | [3] | 20,164 | [3] |
Transfer In Due to Consolidation and Acquisition | 11,960 | [1],[3] | ' | |
Transfer In to Level III | 12,627 | [2],[3] | ' | |
Transfer Out of Level III | -9,241 | [2],[3] | ' | |
Purchases | 129,122 | [3] | 7,700 | [3] |
Sales | -112,833 | [3] | -703 | [3] |
Settlements | -1,958 | [3] | ' | |
Realized Gains (Losses), Net | 13,934 | [3] | 449 | [3] |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | -13,117 | [3] | 494 | [3] |
Balance, End of Period | $58,598 | [3] | $28,104 | [3] |
[1] | Represents the transfer into Level III of financial assets and liabilities as a result of the consolidation of certain fund entities, the acquisition of management contracts and the Harbourmaster acquisition. | |||
[2] | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. | |||
[3] | Represents Blackstone's Treasury Cash Management Strategies and Other Investments. |
Summary_of_Changes_in_Financia1
Summary of Changes in Financial Liabilities Measured at Fair Value for Which Level III Inputs Were Used (Detail) (Level 3, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Balance, Beginning of Period | $11,541,607 | $8,080,002 | |
Transfer In Due to Consolidation and Acquisition | ' | 3,568,309 | [1] |
Transfer Out Due to Deconsolidation | -1,251,767 | ' | |
Issuances | 42,017 | 17,820 | |
Settlements | -2,034,897 | -898,890 | |
Realized (Gains) Losses, Net | 6,078 | -17 | |
Changes in Unrealized (Gains) Losses Included in Earnings Related to Liabilities Still Held at the Reporting Date | 609,969 | 774,383 | |
Balance, End of Period | 8,913,007 | 11,541,607 | |
Collateralized Loan Obligations Senior Notes | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Balance, Beginning of Period | 10,695,136 | 7,449,766 | |
Transfer In Due to Consolidation and Acquisition | ' | 3,419,084 | [1] |
Transfer Out Due to Deconsolidation | -1,100,842 | ' | |
Issuances | 41,233 | 15,602 | |
Settlements | -2,034,367 | -895,302 | |
Realized (Gains) Losses, Net | 6,078 | -17 | |
Changes in Unrealized (Gains) Losses Included in Earnings Related to Liabilities Still Held at the Reporting Date | 695,334 | 706,003 | |
Balance, End of Period | 8,302,572 | 10,695,136 | |
Collateralized Loan Obligations Subordinated Notes | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Balance, Beginning of Period | 846,471 | 630,236 | |
Transfer In Due to Consolidation and Acquisition | ' | 149,225 | [1] |
Transfer Out Due to Deconsolidation | -150,925 | ' | |
Issuances | 784 | 2,218 | |
Settlements | -530 | -3,588 | |
Changes in Unrealized (Gains) Losses Included in Earnings Related to Liabilities Still Held at the Reporting Date | -85,365 | 68,380 | |
Balance, End of Period | $610,435 | $846,471 | |
[1] | Represents the transfer into Level III of financial assets and liabilities as a result of the consolidation of certain fund entities, the acquisition of management contracts and the Harbourmaster acquisition. |
Assets_and_Liabilities_Related
Assets and Liabilities Related to Interest in Non-Consolidated VIEs and Maximum Exposure to Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Variable Interest Entity [Line Items] | ' | ' |
Investments | $758,304 | $364,709 |
Accounts Receivable | 166,908 | 1,885 |
Due from Affiliates | 86,246 | 112,686 |
Total VIE Assets | 1,011,458 | 479,280 |
Due to Affiliates | 397 | 2,657 |
Accounts Payable, Accrued Expenses and Other Liabilities | 2 | ' |
Potential Clawback Obligation | 63,290 | 36,040 |
Maximum Exposure to Loss | $1,075,147 | $517,977 |
Recovered_Sheet4
Reverse Repurchase and Repurchase Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Securities Financing Transaction [Line Items] | ' | ' |
U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt | $148.40 | $247.40 |
Securities repledged, delivered or used to settle Securities Sold, Not Yet Purchased | 148.4 | 226.4 |
Pledged securities with carrying value to collateralize its repurchase agreements | $316.60 | $141.90 |
Other_Assets_Detail
Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Other Assets [Line Items] | ' | ' |
Furniture, Equipment and Leasehold Improvements | $325,700 | $300,105 |
Less: Accumulated Depreciation | -188,612 | -157,715 |
Furniture, Equipment and Leasehold Improvements, Net | 137,088 | 142,390 |
Prepaid Expenses | 61,226 | 81,498 |
Other Assets | 75,815 | 97,140 |
Freestanding Derivatives | 10,343 | 55,344 |
Total Other Assets | $284,472 | $376,372 |
Recovered_Sheet5
Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Other Assets [Line Items] | ' | ' | ' |
Depreciation expense | $33.60 | $34 | $31.60 |
Accounts Payable, Accrued Expenses and Other Liabilities for redemption to investors | 57 | 170.4 | ' |
Payables relating to unsettled purchases | $229.10 | $352.30 | ' |
Recovered_Sheet6
Offsetting of Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | $159,327 | $303,362 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 151,419 | 252,001 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 582 | 36,748 |
Asset Net Amount | 7,326 | 14,613 |
Gross And Net Amounts Of Liabilities Presented In the Statement Of Financial Condition | 320,634 | 146,463 |
Gross Amount of Liabilities Not Offset in the Statement of Financial Condition, Financial Instruments | 319,377 | 146,249 |
Cash Collateral Pledged | 1,257 | ' |
Liability Net Amount | ' | 214 |
Freestanding Derivatives | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 10,343 | 55,344 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 3,025 | 3,983 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 582 | 36,748 |
Asset Net Amount | 6,736 | 14,613 |
Gross And Net Amounts Of Liabilities Presented In the Statement Of Financial Condition | 4,282 | 4,197 |
Gross Amount of Liabilities Not Offset in the Statement of Financial Condition, Financial Instruments | 3,025 | 3,983 |
Cash Collateral Pledged | 1,257 | ' |
Liability Net Amount | ' | 214 |
Reverse Repurchase Agreements | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 148,984 | 248,018 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 148,394 | 248,018 |
Asset Net Amount | 590 | ' |
Repurchase Agreements | ' | ' |
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Gross And Net Amounts Of Liabilities Presented In the Statement Of Financial Condition | 316,352 | 142,266 |
Gross Amount of Liabilities Not Offset in the Statement of Financial Condition, Financial Instruments | $316,352 | $142,266 |
Partnership_Credit_Facilities_
Partnership Credit Facilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | $12,639,548 | $15,820,854 | ||
Borrowing Outstanding | 11,475,413 | 14,633,089 | ||
Weighted Average Interest Rate | 1.78% | 1.86% | ||
6.625% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 6.63% | ' | ||
5.875% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 5.88% | ' | ||
4.750% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Weighted Average Interest Rate | 4.75% | ' | ||
Operating Entities Facilities | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | ' | 6,228 | [1] | |
Borrowing Outstanding | ' | 6,228 | [1] | |
Weighted Average Interest Rate | ' | 1.03% | [1] | |
Revolving Credit Facility | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 1,100,000 | [2] | 1,100,000 | [2] |
Borrowing Outstanding | 717 | [2] | 717 | [2] |
Weighted Average Interest Rate | 1.25% | [2] | 1.25% | [2] |
Senior Secured Note | 6.625% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 585,000 | [3],[4] | 585,000 | [3],[4] |
Borrowing Outstanding | 585,000 | [3],[4] | 585,000 | [3],[4] |
Weighted Average Interest Rate | 6.63% | [3],[4] | 6.63% | [3],[4] |
Senior Secured Note | 5.875% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 400,000 | [3],[5] | 400,000 | [3],[5] |
Borrowing Outstanding | 400,000 | [3],[5] | 400,000 | [3],[5] |
Weighted Average Interest Rate | 5.88% | [3],[5] | 5.88% | [3],[5] |
Senior Secured Note | 4.750% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 400,000 | [3],[6] | 400,000 | [3],[6] |
Borrowing Outstanding | 400,000 | [3],[6] | 400,000 | [3],[6] |
Weighted Average Interest Rate | 4.75% | [3],[6] | 4.75% | [3],[6] |
Senior Secured Note | 6.25% Notes | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 250,000 | [3],[6] | 250,000 | [3],[6] |
Borrowing Outstanding | 250,000 | [3],[6] | 250,000 | [3],[6] |
Weighted Average Interest Rate | 6.25% | [3],[6] | 6.25% | [3],[6] |
Partnership's Credit Facilities | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 2,735,000 | 2,741,228 | ||
Borrowing Outstanding | 1,635,717 | 1,641,945 | ||
Weighted Average Interest Rate | 5.92% | 5.90% | ||
Blackstone Fund Facilities | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 13,075 | [7] | 23,842 | [7] |
Borrowing Outstanding | 13,075 | [7] | 23,842 | [7] |
Weighted Average Interest Rate | 3.19% | [7] | 2.03% | [7] |
Clo Vehicles | ' | ' | ||
Line of Credit Facility [Line Items] | ' | ' | ||
Credit Available | 9,891,473 | [8] | 13,055,784 | [8] |
Borrowing Outstanding | $9,826,621 | [8] | $12,967,302 | [8] |
Weighted Average Interest Rate | 1.09% | [8] | 1.34% | [8] |
[1] | Represents borrowings under a capital asset purchase facility. The capital asset purchase facility is secured by the purchased asset and borrowings bear interest at a spread to LIBOR. The borrowings were paid down during 2013. | |||
[2] | Blackstone, through indirect subsidiaries, has a $1.1 billion unsecured revolving credit facility (the "Credit Facility") with Citibank, N.A., as Administrative Agent with a maturity date of July 13, 2017. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, 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. As of December 31, 2013, there was an outstanding but undrawn letter of credit against the credit facility for $0.7 million. | |||
[3] | Represents long term borrowings in the form of senior notes (the "Notes") issued by the Issuer. The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings, and the Issuer (the "Guarantors"). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been capitalized and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. | |||
[4] | On August 20, 2009, Blackstone Holdings Finance Co. L.L.C. (the "Issuer"), an indirect subsidiary of the Partnership, issued $600 million of senior notes. The notes, which were issued at a discount, accrue interest from August 20, 2009. Interest is paid semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2010. Interest expense on the notes was $38.8 million, $39.4 million and $39.8 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | |||
[5] | On September 15, 2010, the Issuer issued $400 million of senior notes. The notes, which were issued at a discount, accrue interest from September 20, 2010. Interest is payable semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011. Interest expense on the notes was $23.5 million, $23.5 million and $23.5 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. | |||
[6] | On August 17, 2012, the Issuer issued $400 million of senior notes due February 15, 2023 and $250 million of senior notes maturing August 15, 2042. The notes, which were issued at a discount, accrue interest from August 17, 2012. Interest is payable semiannually in arrears on February 15 and September 15 of each year, commencing on February 15, 2013. Interest expense on the $400 million note was $19.0 million and $7.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. Interest expense on the $250 million note was $15.6 million and $5.8 million for the years ended December 31, 2013 and December 31, 2012, respectively. | |||
[7] | Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. | |||
[8] | Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Statements of Financial Condition. |
Partnership_Credit_Facilities_1
Partnership Credit Facilities (Parenthetical) (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 20, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 15, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |||||
6.625% Notes | 6.625% Notes | 6.625% Notes | 6.625% Notes | 5.875% Notes | 5.875% Notes | 5.875% Notes | 5.875% Notes | 4.750% Notes | 4.750% Notes | 4.750% Notes | 6.25% Notes | 6.25% Notes | 6.25% Notes | Before Amendment | After Amendment | |||||||
Revolving Credit Facility | ||||||||||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Maturity Date | ' | ' | 15-Aug-19 | [1],[2] | ' | ' | ' | 15-Mar-21 | [1],[3] | ' | ' | ' | 15-Feb-23 | [1],[4] | ' | ' | 15-Aug-42 | [1],[4] | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,100,000,000 | ' | ||||
Revolving credit facility, final maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13-Jul-17 | ||||
Borrowing Outstanding | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Senior notes issued | ' | 600,000,000 | 600,000,000 | ' | ' | 600,000,000 | 400,000,000 | ' | ' | 400,000,000 | 400,000,000 | ' | 400,000,000 | ' | ' | 250,000,000 | ' | ' | ||||
Notes acquired not retired | ' | 15,000,000 | ' | 15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Interest expense | ' | ' | $38,800,000 | $39,400,000 | $39,800,000 | ' | $23,500,000 | $23,500,000 | $23,500,000 | ' | $19,000,000 | $7,100,000 | ' | $15,600,000 | $5,800,000 | ' | ' | ' | ||||
Maximum percentage of aggregate principal amount of the outstanding notes | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Percentage of repurchase of note on principal amount of notes | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
[1] | Represents long term borrowings in the form of senior notes (the "Notes") issued by the Issuer. The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings, and the Issuer (the "Guarantors"). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been capitalized and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. | |||||||||||||||||||||
[2] | On August 20, 2009, Blackstone Holdings Finance Co. L.L.C. (the "Issuer"), an indirect subsidiary of the Partnership, issued $600 million of senior notes. The notes, which were issued at a discount, accrue interest from August 20, 2009. Interest is paid semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2010. Interest expense on the notes was $38.8 million, $39.4 million and $39.8 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | |||||||||||||||||||||
[3] | On September 15, 2010, the Issuer issued $400 million of senior notes. The notes, which were issued at a discount, accrue interest from September 20, 2010. Interest is payable semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011. Interest expense on the notes was $23.5 million, $23.5 million and $23.5 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. | |||||||||||||||||||||
[4] | On August 17, 2012, the Issuer issued $400 million of senior notes due February 15, 2023 and $250 million of senior notes maturing August 15, 2042. The notes, which were issued at a discount, accrue interest from August 17, 2012. Interest is payable semiannually in arrears on February 15 and September 15 of each year, commencing on February 15, 2013. Interest expense on the $400 million note was $19.0 million and $7.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. Interest expense on the $250 million note was $15.6 million and $5.8 million for the years ended December 31, 2013 and December 31, 2012, respectively. |
Carrying_Value_and_Fair_Value_
Carrying Value and Fair Value of Blackstone Issued Notes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
6.625% Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying value of issued notes | $632,823 | [1] | $640,220 | [1] |
Debt instrument, fair value | 684,860 | [1],[2] | 682,344 | [1],[2] |
5.875% Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying value of issued notes | 398,543 | 398,386 | ||
Debt instrument, fair value | 447,120 | [2] | 456,200 | [2] |
4.750% Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying value of issued notes | 393,202 | 392,629 | ||
Debt instrument, fair value | 415,760 | [2] | 426,160 | [2] |
6.250% Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Carrying value of issued notes | 239,738 | 239,619 | ||
Debt instrument, fair value | $278,550 | [2] | $275,275 | [2] |
[1] | The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | |||
[2] | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
Carrying_Value_and_Fair_Value_1
Carrying Value and Fair Value of Blackstone Issued Notes (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 20, 2009 | Dec. 31, 2013 | Sep. 15, 2010 | Dec. 31, 2013 | Aug. 17, 2012 | Dec. 31, 2013 | |||
In Millions, unless otherwise specified | 6.625% Notes | 6.625% Notes | 6.625% Notes | 5.875% Notes | 5.875% Notes | 4.750% Notes | 4.750% Notes | 6.250% Notes | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Debt instrument, interest rate | 1.78% | 1.86% | 6.63% | ' | ' | 5.88% | ' | 4.75% | ' | 6.25% | |||
Debt instrument, maturity date | ' | ' | 15-Aug-19 | [1],[2] | ' | ' | 15-Mar-21 | [1],[3] | ' | 15-Feb-23 | [1],[4] | ' | 15-Aug-42 |
Senior Notes | ' | $600 | $600 | ' | $600 | $400 | $400 | $400 | $400 | $250 | |||
Notes acquired not retired | ' | $15 | ' | $15 | ' | ' | ' | ' | ' | ' | |||
[1] | Represents long term borrowings in the form of senior notes (the "Notes") issued by the Issuer. The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings, and the Issuer (the "Guarantors"). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been capitalized and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, 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 indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's 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 holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. | ||||||||||||
[2] | On August 20, 2009, Blackstone Holdings Finance Co. L.L.C. (the "Issuer"), an indirect subsidiary of the Partnership, issued $600 million of senior notes. The notes, which were issued at a discount, accrue interest from August 20, 2009. Interest is paid semi-annually in arrears on February 15 and August 15 of each year, commencing on February 15, 2010. Interest expense on the notes was $38.8 million, $39.4 million and $39.8 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||||||||||
[3] | On September 15, 2010, the Issuer issued $400 million of senior notes. The notes, which were issued at a discount, accrue interest from September 20, 2010. Interest is payable semiannually in arrears on March 15 and September 15 of each year, commencing on March 15, 2011. Interest expense on the notes was $23.5 million, $23.5 million and $23.5 million for the years ended December 31, 2013, December 31, 2012 and December 31, 2011, respectively. | ||||||||||||
[4] | On August 17, 2012, the Issuer issued $400 million of senior notes due February 15, 2023 and $250 million of senior notes maturing August 15, 2042. The notes, which were issued at a discount, accrue interest from August 17, 2012. Interest is payable semiannually in arrears on February 15 and September 15 of each year, commencing on February 15, 2013. Interest expense on the $400 million note was $19.0 million and $7.1 million for the years ended December 31, 2013 and December 31, 2012, respectively. Interest expense on the $250 million note was $15.6 million and $5.8 million for the years ended December 31, 2013 and December 31, 2012, respectively. |
Partnerships_Borrowings_Throug
Partnership's Borrowings Through Consolidated CLO Vehicles (Detail) (Partnership's Borrowings Through Consolidated CLO Vehicles, USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Borrowing Outstanding | $9,826,621 | $12,967,302 | ||
Senior Secured Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Borrowing Outstanding | 8,605,553 | 11,518,111 | ||
Weighted Average Interest Rate | 1.09% | 1.34% | ||
Weighted Average Remaining Maturity in Years | '4 years 1 month 6 days | '4 years 7 months 6 days | ||
Subordinated Notes | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Borrowing Outstanding | $1,221,068 | $1,449,191 | ||
Weighted Average Interest Rate | ' | [1] | ' | [1] |
Weighted Average Remaining Maturity in Years | ' | '2 years 7 months 6 days | ||
[1] | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Senior_Secured_Notes_and_Subor
Senior Secured Notes and Subordinated Notes (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Senior Secured Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value | $8,302,572 | $10,695,136 |
Subordinated Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair Value | 610,435 | 846,471 |
Non-Consolidated Affiliates Senior Secured Notes | Senior Secured Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowing Outstanding | 14,500 | 22,000 |
Fair Value | 13,732 | 18,229 |
Non-Consolidated Affiliates Senior Secured Notes | Subordinated Notes | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowing Outstanding | 224,444 | 258,156 |
Fair Value | $110,197 | $172,899 |
Borrowings_Additional_Informat
Borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Billions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Fair value of the CLO assets | $9.50 | $12.50 |
Scheduled_Principal_Payments_f
Scheduled Principal Payments for Borrowings (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Borrowings | ' |
Debt Instrument [Line Items] | ' |
2018 and Thereafter | $1,635,000 |
Total | 1,635,000 |
Blackstone Fund Facilities / CLO Vehicles | ' |
Debt Instrument [Line Items] | ' |
2014 | 8,066 |
2015 | 5,009 |
2018 and Thereafter | 9,826,621 |
Total | 9,839,696 |
Total Borrowings | ' |
Debt Instrument [Line Items] | ' |
2014 | 8,066 |
2015 | 5,009 |
2018 and Thereafter | 11,461,621 |
Total | $11,474,696 |
Provision_Benefit_for_Income_T
Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Federal Income Tax | $19,237 | $5,928 | $4,509 |
Foreign Income Tax | 13,302 | 16,921 | 22,741 |
State and Local Income Tax | 33,273 | 36,022 | 8,997 |
Current Income Tax Expense (Benefit), Total | 65,812 | 58,871 | 36,247 |
Federal Income Tax | 157,962 | 100,875 | 226,153 |
Foreign Income Tax | -638 | -691 | 403 |
State and Local Income Tax | 32,506 | 25,968 | 82,908 |
Deferred Income Tax Expense (Benefit), Total | 189,830 | 126,152 | 309,464 |
Provision (Benefit) for Taxes | $255,642 | $185,023 | $345,711 |
Summary_of_Tax_Positions_Detai
Summary of Tax Positions (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income Tax [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Income Before Provision for Taxes | $1,584,913 | $518,392 | $566,674 | $478,582 | $187,167 | $235,739 | $135,614 | $456,385 | $3,148,561 | $1,014,905 | $77,258 | |||
Total Provision for Taxes | ' | ' | ' | ' | ' | ' | ' | ' | $255,642 | $185,023 | $345,711 | |||
Effective Income Tax Rate | ' | ' | ' | ' | ' | ' | ' | ' | 8.10% | [1] | 18.20% | [1] | 447.50% | [1] |
[1] | The effective tax rate is calculated on Income (Loss) Before Provision for Taxes. |
Reconciliations_of_Provision_B
Reconciliations of Provision (Benefits) for Taxes to Federal Statutory Tax Rate (Detail) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Schedule of Effective Tax Rate Reconciliation [Line Items] | ' | ' | ' | |||
Statutory U.S. Federal Income Tax Rate | 35.00% | 35.00% | 35.00% | |||
Income Passed Through to Common Unitholders and Non-Controlling Interest Holders | -28.70% | [1] | -23.60% | [1] | 76.90% | [1] |
Interest Expense | -0.90% | -3.40% | -47.00% | |||
Foreign Income Taxes | -0.20% | -3.20% | 10.50% | |||
State and Local Income Taxes | 1.70% | 3.00% | 38.70% | |||
Equity-Based Compensation | 1.60% | 9.30% | 132.40% | |||
Change in Tax Rate | 0.60% | -0.10% | 202.90% | |||
Net Unrecognized Tax Positions | -0.20% | 0.70% | 7.80% | |||
Non Deductible Expenses | 0.00% | 0.60% | 2.50% | |||
Tax Deductible Compensation | -0.30% | -0.40% | -10.20% | |||
Other | -0.50% | 0.30% | -2.00% | |||
Effective Income Tax Rate | 8.10% | [2] | 18.20% | [2] | 447.50% | [2] |
[1] | Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership's unitholders and the non-controlling interest holders. | |||||
[2] | The effective tax rate is calculated on Income (Loss) Before Provision for Taxes. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2010 |
Income Taxes [Line Items] | ' | ' | ' | ' |
Reduction in net deferred tax assets | $22.70 | $233.70 | ' | ' |
Amortization period for tax basis intangibles, years | '15 years | ' | ' | ' |
Taxable loss of partnership | ' | 56.8 | ' | 81.4 |
Taxable loss carried back and utilized against prior year taxable income | 8.8 | ' | ' | ' |
Taxable loss, utilized against taxable income | 54.6 | ' | 74.9 | ' |
Carryforward period for tax basis intangibles, years | '20 years | ' | ' | ' |
Unrecognized tax benefits that if recognized would affect the annual effective rate | 18.9 | ' | 26.8 | ' |
Interest expense accrued | 1 | 1.5 | 5.8 | ' |
Accrued Penalties | $0 | $0 | $0.50 | ' |
Summary_of_Tax_Effects_of_Temp
Summary of Tax Effects of Temporary Differences (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Fund Management Fees | $8,728 | $16,719 |
Equity-Based Compensation | 54,810 | 45,329 |
Unrealized Gains from Investments | -117,685 | -58,499 |
Depreciation and Amortization | 1,285,042 | 1,257,145 |
Net Operating Loss Carry Forward | 12 | 18,780 |
Other | -21,700 | 6,137 |
Total Deferred Tax Assets | 1,209,207 | 1,285,611 |
Deferred Tax Liabilities | ' | ' |
Depreciation and Amortization | 10 | 143 |
Total Deferred Tax Liabilities | $10 | $143 |
Unrecognized_Tax_Benefits_Excl
Unrecognized Tax Benefits Excluding Related Interest and Penalties (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' |
Unrecognized Tax Benefits-January 1 | $30,742 | $12,234 |
Additions based on Tax Positions Related to Current Year | 6,517 | 6,117 |
Additions for Tax Positions of Prior Years | 3,435 | 16,733 |
Reductions for Tax Positions of Prior Years | -17,686 | -3,215 |
Settlements | -3,538 | -1,596 |
Exchange Rate Fluctuations | -608 | 469 |
Unrecognized Tax Benefits-December 31 | $18,862 | $30,742 |
Basic_and_Diluted_Net_Income_P
Basic and Diluted Net Income Per Common Unit (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to The Blackstone Group L.P. | $621,255 | $171,164 | $211,148 | $167,635 | $106,413 | $128,824 | ($74,964) | $58,325 | $1,171,202 | $218,598 | ($168,303) |
Weighted-Average Common Units Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 587,018,828 | 533,703,606 | 475,582,718 |
Basic Net Income (Loss) Per Common Unit | $1.05 | $0.29 | $0.36 | $0.29 | $0.19 | $0.24 | ($0.14) | $0.12 | $2 | $0.41 | ($0.35) |
Weighted-Average Common Units Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 587,018,828 | 533,703,606 | 475,582,718 |
Weighted-Average Unvested Deferred Restricted Common Units | ' | ' | ' | ' | ' | ' | ' | ' | 3,527,812 | 4,965,464 | ' |
Weighted-Average Diluted Common Units Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 590,546,640 | 538,669,070 | 475,582,718 |
Diluted Net Income (Loss) Per Common Unit | $1.04 | $0.29 | $0.36 | $0.29 | $0.19 | $0.24 | ($0.14) | $0.11 | $1.98 | $0.41 | ($0.35) |
Summary_of_AntiDilutive_Securi
Summary of Anti-Dilutive Securities (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted-Average Unvested Deferred Restricted Common Units | ' | ' | 22,529,309 |
Blackstone Partnership Units | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Weighted-Average Units | 553,579,525 | 590,446,577 | 628,115,753 |
Net_Income_Per_Common_Unit_Add
Net Income Per Common Unit - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2011 | Jan. 31, 2008 |
Blackstone Common Units | Blackstone | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Amount authorized to repurchase under unit repurchase program | ' | ' | $500 |
Amount remaining available for repurchases | 335.8 | ' | ' |
Common stock repurchased, units | ' | 116,270 | ' |
Common stock repurchased, value | ' | $2.10 | ' |
EquityBased_Compensation_Addit
Equity-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation [Line Items] | ' | ' | ' |
Partnership grant units | 163,217,431 | ' | ' |
Compensation expense in relation to equity-based awards | $855,087,000 | $949,633,000 | $1,396,062,000 |
Tax benefits in relation to equity-based awards | 33,300,000 | 25,000,000 | 22,400,000 |
Estimated unrecognized compensation expense related to unvested awards | 1,300,000,000 | ' | ' |
Weighted-average period for recognized compensation expense related to unvested awards, years | '1 year 10 months 24 days | ' | ' |
Total vested and unvested outstanding units | 1,153,844,153 | ' | ' |
Total outstanding unvested phantom units | 147,169 | ' | ' |
Phantom units vesting period | '11 days | ' | ' |
Payment in settlement of phantom units | 600,000 | 400,000 | 400,000 |
Predecessor owners and selected advisors received, units | 827,516,625 | ' | ' |
Equity-Based Awards With Performance Conditions | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Compensation expense in relation to equity-based awards | $61,800,000 | ' | ' |
Equity-Based Awards With Performance Conditions | Minimum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Performance period of equity-based awards, in years | 3 | ' | ' |
Equity-Based Awards With Performance Conditions | Maximum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Performance period of equity-based awards, in years | 5 | ' | ' |
Equity Settled Awards - Deferred Restricted Common Units And Options | Minimum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed service period, in years | '1 year | ' | ' |
Assumed forfeiture rate | 1.00% | ' | ' |
Per unit discount | $0.01 | ' | ' |
Equity Settled Awards - Deferred Restricted Common Units And Options | Maximum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed service period, in years | '8 years | ' | ' |
Assumed forfeiture rate | 12.50% | ' | ' |
Per unit discount | $10.33 | ' | ' |
Cash Settled Awards - Phantom Units | Minimum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed forfeiture rate | 4.20% | ' | ' |
Phantom units vesting period | '2 years | ' | ' |
Cash Settled Awards - Phantom Units | Maximum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed forfeiture rate | 12.50% | ' | ' |
Phantom units vesting period | '4 years | ' | ' |
Blackstone Partnership Units | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed forfeiture rate | 12.50% | ' | ' |
Vested, units | 387,805,088 | ' | ' |
Non-vested, units | 439,711,537 | ' | ' |
Closing share price | $31 | ' | ' |
Blackstone Partnership Units | Minimum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed service period, in years | '1 year | ' | ' |
Blackstone Partnership Units | Maximum | ' | ' | ' |
Share Based Compensation [Line Items] | ' | ' | ' |
Assumed service period, in years | '9 years | ' | ' |
Summary_of_Status_of_Partnersh
Summary of Status of Partnership's Unvested Equity-Based Awards (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Blackstone | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | $28.19 |
Granted (Weighted-Average Grant Date Fair Value) | $20.65 |
Vested (Weighted-Average Grant Date Fair Value) | $29.91 |
Forfeited (Weighted-Average Grant Date Fair Value) | $29.69 |
Ending Balance | $26.64 |
Blackstone | Blackstone Partnership Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | 66,591,089 |
Granted (Units) | 4,645,938 |
Vested (Units) | -21,385,204 |
Forfeited (Units) | -1,794,007 |
Ending Balance | 48,057,816 |
The Blackstone Group L.P. | Equity Settled Awards - Weighted-Average Grant Date Fair Value | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | $15.76 |
Granted (Weighted-Average Grant Date Fair Value) | $22.56 |
Vested (Weighted-Average Grant Date Fair Value) | $23.77 |
Forfeited (Weighted-Average Grant Date Fair Value) | $17.27 |
Ending Balance | $15.57 |
The Blackstone Group L.P. | Cash Settled Awards - Weighted-Average Grant Date Fair Value | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | $14.89 |
Granted (Weighted-Average Grant Date Fair Value) | $22.85 |
Vested (Weighted-Average Grant Date Fair Value) | $20.82 |
Forfeited (Weighted-Average Grant Date Fair Value) | $23.70 |
Ending Balance | $12 |
The Blackstone Group L.P. | Equity Settled Awards - Deferred Restricted Common Units And Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | 20,199,382 |
Granted (Units) | 7,245,002 |
Vested (Units) | -6,458,664 |
Forfeited (Units) | -981,581 |
Ending Balance | 20,004,139 |
The Blackstone Group L.P. | Cash Settled Awards - Phantom Units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Beginning Balance | 221,356 |
Granted (Units) | 7,687 |
Vested (Units) | -78,318 |
Forfeited (Units) | -3,556 |
Ending Balance | 147,169 |
Unvested_Units_After_Expected_
Unvested Units, After Expected Forfeitures (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Blackstone Holdings Partnership Units (Units) | 44,277,748 |
Deferred Restricted Blackstone Common Units and Options (Units) | 16,515,381 |
Total Equity-Based Awards (Units) | 60,793,129 |
Phantom Units (Units) | 146,520 |
Blackstone Holdings Partnership Units (Weighted-Average Service Period in Years) | '1 year 10 months 24 days |
Deferred Restricted Blackstone Common Units and Options (Weighted-Average Service Period in Years) | '2 years 3 months 18 days |
Total Equity-Based Awards (Weighted-Average Service Period in Years) | '2 years |
Phantom Units (Weighted-Average Service Period in Years) | '11 days |
Due_from_Affiliates_and_Due_to
Due from Affiliates and Due to Affiliates (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Accrual for Potential Clawback of Previously Distributed Carried Interest | $1,561 | $165,322 |
Primarily Interest Bearing Advances Made on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees for Investments in Blackstone Funds | 151,493 | 155,302 |
Amounts Due from Portfolio Companies and Funds | 307,926 | 259,196 |
Investments Redeemed in Non-Consolidated Funds of Hedge Funds | 259,787 | 39,507 |
Management and Performance Fees Due from Non-Consolidated Funds | 325,389 | 343,846 |
Payments Made on Behalf of Non-Consolidated Entities | 133,790 | 150,317 |
Advances Made to Certain Non-Controlling Interest Holders and Blackstone Employees | 12,098 | 6,577 |
Due from Affiliates, total | 1,192,044 | 1,120,067 |
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | 1,235,168 | 1,218,488 |
Accrual for Potential Repayment of Previously Received Performance Fees | 4,270 | 267,116 |
Due to Note Holders of Consolidated CLO Vehicles | 123,929 | 191,128 |
Due to Certain Non-Controlling Interest Holders | ' | 201,286 |
Distributions Received on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees | 11,293 | 12,506 |
Payable to Affiliates for Consolidated Funds | 29,803 | 81,589 |
Distributions Received on Behalf of Blackstone Entities | 22,815 | 20,295 |
Payments Made by Non-Consolidated Entities | 9,581 | 10,236 |
Due to Affiliates, total | $1,436,859 | $2,002,644 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Founder's, other senior managing directors' and employees' investments | $1,000,000,000 | ' | $1,000,000,000 | $939,400,000 | ' |
Founder's, other senior managing directors' and employees' share of the Net Income Attributable to Redeemable Non-Controlling Interests | ' | ' | 224,700,000 | 114,100,000 | 109,400,000 |
Management and Advisory Fees, Net from Affiliates | ' | ' | 253,900,000 | 254,700,000 | 317,700,000 |
Interest from loans to affiliates | ' | ' | 3,400,000 | 4,400,000 | 3,700,000 |
Partnership Unit to Blackstone Common Unit ratio | ' | ' | 1 | ' | ' |
Cash saving in tax receivable agreements, percentage | ' | ' | 85.00% | ' | ' |
Reduction in due to pre IPO owners and others resulted from change in effective tax rate of corporate tax payers | 20,500,000 | 197,800,000 | ' | ' | ' |
Expected future payments under the tax receivable agreements | 1,200,000,000 | ' | 1,200,000,000 | ' | ' |
Expected future payments under the tax receivable agreements in years | '15 years | ' | '15 years | ' | ' |
After-tax net present value estimated payments | 407,400,000 | ' | 407,400,000 | ' | ' |
After-tax net present value discount rate assumption | 15.00% | ' | 15.00% | ' | ' |
Payments made under tax receivable agreements and related tax benefits | ' | ' | ' | $80,600,000 | ' |
Recovered_Sheet7
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Rent expense | $78,600,000 | $74,800,000 | $72,700,000 |
Leases | 9,000,000 | 9,400,000 | ' |
General partner capital funding | 1,500,000,000 | ' | ' |
Total investments at risk in respect of guarantees extended | 4,900,000 | ' | ' |
Loans held By employees for investment guaranteed | 60,300,000 | ' | ' |
Contingent obligations currently anticipated to expire end | '2018 | ' | ' |
Cash clawback obligation | 89,700,000 | ' | ' |
Provision for cash clawback | 420,900,000 | ' | ' |
Blackstone Holdings Finance Co. L.L.C. | ' | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Cash clawback obligation | 70,600,000 | ' | ' |
Current And Former Blackstone Personnel | ' | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Cash clawback obligation | 19,100,000 | ' | ' |
Blackstone Funds | ' | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Funds signed investment commitments | 54,600,000 | ' | ' |
Blackstone Funds | Portfolio Company Acquisition | ' | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Signed investment commitments for portfolio company acquisitions in process of closing | $25,200,000 | ' | ' |
Maximum | ' | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' | ' |
Operating lease expiration year | '2032 | ' | ' |
Aggregate_Minimum_Future_Payme
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $71,286 |
2015 | 67,388 |
2016 | 61,299 |
2017 | 56,379 |
2018 | 54,279 |
Thereafter | 189,150 |
Total | $499,781 |
Clawback_Obligations_by_Segmen
Clawback Obligations by Segment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations | $4,270 | $267,116 |
Private Equity | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations | 146 | 203,154 |
Real Estate | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations | 2,019 | 63,375 |
Credit | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations | 2,105 | 587 |
Blackstone Holdings Finance Co. L.L.C. | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations partnerships | 2,709 | 101,794 |
Blackstone Holdings Finance Co. L.L.C. | Private Equity | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations partnerships | -5 | 69,302 |
Blackstone Holdings Finance Co. L.L.C. | Real Estate | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations partnerships | 1,501 | 32,152 |
Blackstone Holdings Finance Co. L.L.C. | Credit | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations partnerships | 1,213 | 340 |
Current And Former Blackstone Personnel | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations Current and Former Personnel | 1,561 | 165,322 |
Current And Former Blackstone Personnel | Private Equity | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations Current and Former Personnel | 151 | 133,852 |
Current And Former Blackstone Personnel | Real Estate | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations Current and Former Personnel | 518 | 31,223 |
Current And Former Blackstone Personnel | Credit | ' | ' |
Schedule Of Commitments And Contingencies [Line Items] | ' | ' |
Clawback obligations Current and Former Personnel | $892 | $247 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Percentage of partnership contribution in professionals pre-tax annual compensation | 2.00% | ' | ' |
Annual maximum contribution professionals are able to receive from Plan Partnerships | $1,600 | ' | ' |
Additional percentage of partnership contribution in professionals pre-tax annual compensation | 50.00% | ' | ' |
401(k) Plan | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expenses incurred by partnership in connection with employee benefit plan | 1,700,000 | 1,500,000 | 1,400,000 |
Defined Contribution Pension | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Expenses incurred by partnership in connection with employee benefit plan | $400,000 | $400,000 | $300,000 |
Regulated_Entities_Additional_
Regulated Entities - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Regulatory Matters [Line Items] | ' |
Consolidated entities net assets restricted as to payment of cash dividends and advances to partnership | $24.30 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of business segments | 5 |
Financial_Data_of_Segments_Det
Financial Data of Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | $2,193,985 | $2,030,693 | $1,811,750 |
Performance Fees Realized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 943,958 | 327,422 | 138,907 |
Performance Fees Realized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 464,838 | 301,801 | 90,099 |
Performance Fees Unrealized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,158,010 | 994,190 | 971,518 |
Performance Fees Unrealized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -22,749 | -30,361 | -17,864 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 3,544,057 | 1,593,052 | 1,182,660 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 188,644 | 93,963 | 87,542 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 611,664 | 256,231 | 125,781 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 800,308 | 350,194 | 213,323 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 64,511 | 40,354 | 37,427 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 10,307 | 5,148 | 7,416 |
Total Revenues | 2,709,380 | 1,216,845 | 1,440,470 | 1,246,473 | 1,217,113 | 1,223,089 | 627,203 | 952,036 | 6,613,168 | 4,019,441 | 3,252,576 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 1,844,485 | 2,091,698 | 2,421,712 |
Performance Fee Compensation - Realized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 257,201 | 96,433 | 43,615 |
Performance Fee Compensation - Realized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 200,915 | 140,042 | 55,912 |
Performance Fee Compensation - Unrealized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 966,717 | 321,599 | 237,945 |
Performance Fee Compensation - Unrealized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -11,651 | -44,528 | -20,759 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 3,257,667 | 2,605,244 | 2,738,425 |
Total Expenses | 1,330,472 | 786,405 | 914,762 | 835,101 | 885,679 | 851,390 | 739,819 | 783,793 | 3,866,740 | 3,260,681 | 3,388,069 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,148,561 | 1,014,905 | 77,258 |
Segment Assets | 29,678,606 | ' | ' | ' | 28,931,552 | ' | ' | ' | 29,678,606 | 28,931,552 | ' |
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Base Management Fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,740,807 | 1,591,403 | 1,281,185 |
Management and Advisory Fees, Advisory Fees | ' | ' | ' | ' | ' | ' | ' | ' | 410,514 | 357,417 | 382,240 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 206,977 | 227,119 | 247,513 |
Management and Advisory Fees, Management Fee Offsets | ' | ' | ' | ' | ' | ' | ' | ' | -72,220 | -40,953 | -33,393 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 2,286,078 | 2,134,986 | 1,877,545 |
Performance Fees Realized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 943,958 | 327,422 | 138,907 |
Performance Fees Realized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 474,333 | 301,464 | 89,029 |
Performance Fees Unrealized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 2,158,010 | 994,190 | 971,518 |
Performance Fees Unrealized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -19,928 | -29,311 | -24,928 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 3,556,373 | 1,593,765 | 1,174,526 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 170,471 | 95,398 | 102,575 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 517,334 | 190,846 | 82,689 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 687,805 | 286,244 | 185,264 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 70,936 | 46,630 | 38,844 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 10,308 | 5,149 | 7,415 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,611,500 | 4,066,774 | 3,283,594 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 1,115,640 | 1,030,776 | 960,569 |
Performance Fee Compensation - Realized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 257,201 | 96,433 | 43,615 |
Performance Fee Compensation - Realized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 200,915 | 140,042 | 55,912 |
Performance Fee Compensation - Unrealized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 966,717 | 321,599 | 237,944 |
Performance Fee Compensation - Unrealized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -11,651 | -44,528 | -20,759 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 2,528,822 | 1,544,322 | 1,277,281 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 486,639 | 481,445 | 421,342 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,015,461 | 2,025,767 | 1,698,623 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,596,039 | 2,041,007 | 1,584,971 |
Segment Assets | 16,429,521 | ' | ' | ' | 13,855,479 | ' | ' | ' | 16,429,521 | 13,855,479 | ' |
Operating Segments | Private Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Base Management Fees | ' | ' | ' | ' | ' | ' | ' | ' | 368,146 | 348,594 | 331,997 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 96,988 | 100,080 | 133,004 |
Management and Advisory Fees, Management Fee Offsets | ' | ' | ' | ' | ' | ' | ' | ' | -5,683 | -5,926 | -27,073 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 459,451 | 442,748 | 437,928 |
Performance Fees Realized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 329,993 | 109,797 | 37,393 |
Performance Fees Unrealized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 398,232 | 148,381 | 33,490 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 728,225 | 258,178 | 70,883 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 88,026 | 25,823 | 44,988 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 161,749 | 85,337 | 9,476 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 249,775 | 111,160 | 54,464 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 15,602 | 13,556 | 13,749 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 4,259 | 2,417 | 1,810 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,457,312 | 828,059 | 578,834 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 236,120 | 222,709 | 217,556 |
Performance Fee Compensation - Realized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 38,953 | 3,679 | 1,465 |
Performance Fee Compensation - Unrealized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 342,733 | 58,555 | -2,229 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 617,806 | 284,943 | 216,792 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 124,137 | 130,845 | 120,918 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 741,943 | 415,788 | 337,710 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 715,369 | 412,271 | 241,124 |
Segment Assets | 4,444,227 | ' | ' | ' | 4,625,310 | ' | ' | ' | 4,444,227 | 4,625,310 | ' |
Operating Segments | Real Estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Base Management Fees | ' | ' | ' | ' | ' | ' | ' | ' | 565,182 | 551,322 | 394,778 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 79,675 | 85,681 | 109,510 |
Management and Advisory Fees, Management Fee Offsets | ' | ' | ' | ' | ' | ' | ' | ' | -22,821 | -28,609 | -4,950 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 622,036 | 608,394 | 499,338 |
Performance Fees Realized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 486,773 | 165,114 | 22,844 |
Performance Fees Realized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 45,862 | 25,656 | 9,629 |
Performance Fees Unrealized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 1,651,700 | 683,764 | 913,418 |
Performance Fees Unrealized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -28,753 | -119 | 3,658 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 2,155,582 | 874,415 | 949,549 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 52,359 | 45,302 | 27,972 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 350,201 | 90,875 | 92,648 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 402,560 | 136,177 | 120,620 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 21,563 | 14,448 | 12,902 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 3,384 | 894 | -1,061 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,205,125 | 1,634,328 | 1,581,348 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 294,222 | 271,122 | 236,771 |
Performance Fee Compensation - Realized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 148,837 | 62,418 | 10,103 |
Performance Fee Compensation - Realized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 23,878 | 13,060 | 4,564 |
Performance Fee Compensation - Unrealized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 566,837 | 165,482 | 221,140 |
Performance Fee Compensation - Unrealized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | -15,015 | -583 | 3,106 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 1,018,759 | 511,499 | 475,684 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 116,391 | 123,714 | 103,859 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,135,150 | 635,213 | 579,543 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,069,975 | 999,115 | 1,001,805 |
Segment Assets | 7,496,591 | ' | ' | ' | 5,599,759 | ' | ' | ' | 7,496,591 | 5,599,759 | ' |
Operating Segments | Hedge Fund Solutions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Base Management Fees | ' | ' | ' | ' | ' | ' | ' | ' | 409,321 | 346,210 | 315,863 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 623 | 188 | 2,798 |
Management and Advisory Fees, Management Fee Offsets | ' | ' | ' | ' | ' | ' | ' | ' | -3,387 | -1,414 | -980 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 406,557 | 344,984 | 317,681 |
Performance Fees Realized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 207,735 | 83,433 | 11,472 |
Performance Fees Unrealized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 7,718 | 9,042 | 774 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 215,453 | 92,475 | 12,246 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 27,613 | 7,270 | 17,722 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | -9,306 | 8,517 | -19,031 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 18,307 | 15,787 | -1,309 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 7,605 | 2,139 | 2,025 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 688 | 3,816 | 7,902 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 648,610 | 459,201 | 338,545 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 136,470 | 119,731 | 128,959 |
Performance Fee Compensation - Realized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 65,793 | 23,080 | 3,498 |
Performance Fee Compensation - Unrealized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 2,856 | 1,317 | 234 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 205,119 | 144,128 | 132,691 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 66,966 | 57,809 | 65,072 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 272,085 | 201,937 | 197,763 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 376,525 | 257,264 | 140,782 |
Segment Assets | 1,325,631 | ' | ' | ' | 876,881 | ' | ' | ' | 1,325,631 | 876,881 | ' |
Operating Segments | Credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Base Management Fees | ' | ' | ' | ' | ' | ' | ' | ' | 398,158 | 345,277 | 238,547 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 28,586 | 40,875 | 1,880 |
Management and Advisory Fees, Management Fee Offsets | ' | ' | ' | ' | ' | ' | ' | ' | -40,329 | -5,004 | -390 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 386,415 | 381,148 | 240,037 |
Performance Fees Realized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 127,192 | 52,511 | 78,670 |
Performance Fees Realized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 220,736 | 192,375 | 67,928 |
Performance Fees Unrealized - Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 108,078 | 162,045 | 24,610 |
Performance Fees Unrealized - Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 1,107 | -38,234 | -29,360 |
Total Performance Fees | ' | ' | ' | ' | ' | ' | ' | ' | 457,113 | 368,697 | 141,848 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | 4,098 | 15,611 | 11,299 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 13,951 | 4,769 | -708 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 18,049 | 20,380 | 10,591 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 18,146 | 9,330 | 3,369 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 527 | -1,174 | -853 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 880,250 | 778,381 | 394,992 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 186,514 | 182,077 | 128,588 |
Performance Fee Compensation - Realized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 69,411 | 30,336 | 32,047 |
Performance Fee Compensation - Realized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 111,244 | 103,902 | 47,850 |
Performance Fee Compensation - Unrealized Carried Interest | ' | ' | ' | ' | ' | ' | ' | ' | 57,147 | 97,562 | 19,033 |
Performance Fee Compensation - Unrealized Incentive Fees | ' | ' | ' | ' | ' | ' | ' | ' | 508 | -45,262 | -24,099 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 424,824 | 368,615 | 203,419 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 96,940 | 84,488 | 49,955 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 521,764 | 453,103 | 253,374 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 358,486 | 325,278 | 141,618 |
Segment Assets | 2,381,603 | ' | ' | ' | 2,004,529 | ' | ' | ' | 2,381,603 | 2,004,529 | ' |
Operating Segments | Financial Advisory | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management and Advisory Fees, Advisory Fees | ' | ' | ' | ' | ' | ' | ' | ' | 410,514 | 357,417 | 382,240 |
Management and Advisory Fees, Transaction and Other Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 1,105 | 295 | 321 |
Total Management and Advisory Fees, Net | ' | ' | ' | ' | ' | ' | ' | ' | 411,619 | 357,712 | 382,561 |
Investment Income (Loss), Realized | ' | ' | ' | ' | ' | ' | ' | ' | -1,625 | 1,392 | 594 |
Investment Income (Loss), Unrealized | ' | ' | ' | ' | ' | ' | ' | ' | 739 | 1,348 | 304 |
Total Investment Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -886 | 2,740 | 898 |
Interest and Dividend Revenue | ' | ' | ' | ' | ' | ' | ' | ' | 8,020 | 7,157 | 6,799 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 1,450 | -804 | -383 |
Total Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 420,203 | 366,805 | 389,875 |
Compensation | ' | ' | ' | ' | ' | ' | ' | ' | 262,314 | 235,137 | 248,695 |
Total Compensation and Benefits | ' | ' | ' | ' | ' | ' | ' | ' | 262,314 | 235,137 | 248,695 |
Other Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 82,205 | 84,589 | 81,538 |
Total Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 344,519 | 319,726 | 330,233 |
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 75,684 | 47,079 | 59,642 |
Segment Assets | $781,469 | ' | ' | ' | $749,000 | ' | ' | ' | $781,469 | $749,000 | ' |
Reconciliation_of_Total_Segmen
Reconciliation of Total Segments to Income Before Provision for Taxes and Total Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | $2,709,380 | $1,216,845 | $1,440,470 | $1,246,473 | $1,217,113 | $1,223,089 | $627,203 | $952,036 | $6,613,168 | $4,019,441 | $3,252,576 | |||||
Expenses | 1,330,472 | 786,405 | 914,762 | 835,101 | 885,679 | 851,390 | 739,819 | 783,793 | 3,866,740 | 3,260,681 | 3,388,069 | |||||
Other Income | ' | ' | ' | ' | ' | ' | ' | ' | 402,133 | 256,145 | 212,751 | |||||
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,148,561 | 1,014,905 | 77,258 | |||||
Total Assets | 29,678,606 | ' | ' | ' | 28,931,552 | ' | ' | ' | 29,678,606 | 28,931,552 | ' | |||||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 6,611,500 | 4,066,774 | 3,283,594 | |||||
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 3,015,461 | 2,025,767 | 1,698,623 | |||||
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | 3,596,039 | 2,041,007 | 1,584,971 | |||||
Total Assets | 16,429,521 | ' | ' | ' | 13,855,479 | ' | ' | ' | 16,429,521 | 13,855,479 | ' | |||||
Consolidation Adjustments and Reconciling Items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,668 | [1] | -47,333 | [1] | -31,018 | [1] | ||
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 851,279 | [2] | 1,234,914 | [2] | 1,689,446 | [2] | ||
Other Income | ' | ' | ' | ' | ' | ' | ' | ' | 402,133 | [3] | 256,145 | [3] | 212,751 | [3] | ||
Economic Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | -447,478 | [4] | -1,026,102 | [4] | -1,507,713 | [4] | ||
Total Assets | $13,249,085 | [5] | ' | ' | ' | $15,076,073 | [5] | ' | ' | ' | $13,249,085 | [5] | $15,076,073 | [5] | ' | |
[1] | The Revenues adjustment represents management and performance fees earned from Blackstone Funds which were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income, which is included in Blackstone consolidated revenues. | |||||||||||||||
[2] | The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation to arrive at Blackstone consolidated expenses. | |||||||||||||||
[3] | The Other Income adjustment results from the following: Year Ended December 31, 2013 2012 2011 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (5,575 ) $ 43,393 $ 21,000 Fund Expenses Added in Consolidation 30,727 37,548 30,129 Non-Controlling Interests in Income (Loss) of Consolidated Entities 381,872 203,557 (16,916 ) Transaction-Related Other Income (Loss) (4,891 ) (28,353 ) 178,538 Total Consolidation Adjustments and Reconciling Items $ 402,133 $ 256,145 $ 212,751 | |||||||||||||||
[4] | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2013 2012 2011 Economic Income $ 3,596,039 $ 2,041,007 $ 1,584,971 Adjustments Amortization of Intangibles (106,643 ) (150,148 ) (220,865 ) IPO and Acquisition-Related Charges (722,707 ) (1,079,511 ) (1,269,932 ) Non-Controlling Interests in Income (Loss) of Consolidated Entities 381,872 203,557 (16,916 ) Total Consolidation Adjustments and Reconciling Items (447,478 ) (1,026,102 ) (1,507,713 ) Income Before Provision for Taxes $ 3,148,561 $ 1,014,905 $ 77,258 | |||||||||||||||
[5] | The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
Reconciliation_of_Total_Segmen1
Reconciliation of Total Segments to Income Before Provision for Taxes and Total Assets (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss | ($5,575) | $43,393 | $21,000 |
Fund Expenses Added in Consolidation | 30,727 | 37,548 | 30,129 |
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | -16,916 |
Transaction-Related Other Income | -4,891 | -28,353 | 178,538 |
Total Consolidation Adjustments and Reconciling Items | 402,133 | 256,145 | 212,751 |
Economic Income | 3,596,039 | 2,041,007 | 1,584,971 |
Amortization of Intangibles | -106,643 | -150,148 | -220,865 |
IPO and Acquisition-Related Charges | -722,707 | -1,079,511 | -1,269,932 |
Non-Controlling Interests in Income (Loss) of Consolidated Entities | 381,872 | 203,557 | -16,916 |
Total Consolidation Adjustments and Reconciling Items | -447,478 | -1,026,102 | -1,507,713 |
Income Before Provision for Taxes | $3,148,561 | $1,014,905 | $77,258 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $2,709,380 | $1,216,845 | $1,440,470 | $1,246,473 | $1,217,113 | $1,223,089 | $627,203 | $952,036 | $6,613,168 | $4,019,441 | $3,252,576 | ||||||||
Expenses | 1,330,472 | 786,405 | 914,762 | 835,101 | 885,679 | 851,390 | 739,819 | 783,793 | 3,866,740 | 3,260,681 | 3,388,069 | ||||||||
Other Income (Loss) | 206,005 | 87,952 | 40,966 | 67,210 | -144,267 | -135,960 | 248,230 | 288,142 | 402,133 | 256,145 | 212,751 | ||||||||
Income Before Provision for Taxes | 1,584,913 | 518,392 | 566,674 | 478,582 | 187,167 | 235,739 | 135,614 | 456,385 | 3,148,561 | 1,014,905 | 77,258 | ||||||||
Net Income (Loss) | 1,493,823 | 460,915 | 510,592 | 427,589 | 121,471 | 196,502 | 94,277 | 417,632 | 2,892,919 | 829,882 | -268,453 | ||||||||
Net Income (Loss) Attributable to The Blackstone Group L.P. | $621,255 | $171,164 | $211,148 | $167,635 | $106,413 | $128,824 | ($74,964) | $58,325 | $1,171,202 | $218,598 | ($168,303) | ||||||||
Net Income (Loss) Per Common Unit - Basic and Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Common Units-Basic | $1.05 | $0.29 | $0.36 | $0.29 | $0.19 | $0.24 | ($0.14) | $0.12 | $2 | $0.41 | ($0.35) | ||||||||
Common Units-Diluted | $1.04 | $0.29 | $0.36 | $0.29 | $0.19 | $0.24 | ($0.14) | $0.11 | $1.98 | $0.41 | ($0.35) | ||||||||
Distributions Declared | $0.23 | [1] | $0.23 | [1] | $0.30 | [1] | $0.42 | [1] | $0.10 | [1] | $0.10 | [1] | $0.10 | [1] | $0.22 | [1] | ' | ' | ' |
[1] | Distributions declared reflects the calendar date of the declaration of each distribution. |