Blackstone (BX) 8-K Blackstone Reports Second Quarter Results

Blackstone’s Second Quarter 2015 Earnings

July 16, 2015

Exhibit 99.2

Blackstone

1

Blackstone’s Second Quarter 2015 Highlights

Economic

Net

Income

(“ENI”)

was

$508

million

($0.43/unit)

in

the

second

quarter,

and

$2.1

billion

($1.80/unit)

year-to-date,

on

continued

record

organic

inflows

and

consistently

positive

fund

returns.

All

investing

businesses

had

favorable

investment

performance

in

the

second

quarter,

substantially

outperforming

relevant

markets

across

asset

classes.

•

Second

quarter

and

year-to-date

results,

while

uniformly

positive,

reflect

lower

levels

of

appreciation,

particularly

in

Real

Estate

public

holdings

and

the

catch-up

in

BCP

V,

both

of

which

affect

comparability

to

the

prior

periods.

Distributable

Earnings

(“DE”)

reached

a

second

quarter

record

of

$1.0

billion

($0.88/unit),

up

35%

from

the

same

period

last

year,

on

$985

million

of

Realized

Performance

Fees,

up

45%

year-over-year.

•

DE

was

$2.3

billion

year-to-date

($1.93/unit),

up

83%

from

$1.2

billion

in

the

same

period

last

year,

on

$2.2

billion

of

Realized

Performance

Fees,

up

108%

year-over-year.

GAAP

Net

Income

was

$134

million

for

the

quarter,

net

of

certain

non-cash

IPO

and

transaction

related

expenses

and

net

income

attributable

to

non-controlling

interests,

primarily

inside

ownership.

Total

Assets

Under

Management

(“AUM”)

reached

a

record

$332.7

billion

through

a

combination

of

continued

strong

and

consistent

fundraising,

organic

growth

and

above-market

appreciation.

•

Gross

inflows

were

a

record

$31.3

billion

in

the

second

quarter,

bringing

LTM

inflows

to

$93.9

billion.

•

Total

AUM

was

up

19%

year-over-year,

despite

returning

$60.3

billion

of

capital

to

investors

over

the

last

twelve

months

(“LTM”)

as

asset

growth

and

appreciation

outpaced

increased

realizations.

Significant

capital

deployment

of

$5.0

billion

in

the

second

quarter

and

$10.1

billion

year-to-date

achieved

by

leveraging

a

unique

global

platform

to

find

opportunities,

particularly

in

the

energy

sector

and

Europe.

Blackstone

declared

a

second

quarter

distribution

of

$0.74

per

common

unit

payable

on

August

3,

2015,

up

35%

from

last

year;

year-to-date

distributions

were

a

record

$1.63

per

common

unit,

up

81%.

Blackstone

2

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

640,456

$        

590,757

$        

(8)%

1,231,432

$     

1,205,648

$     

(2)%

Performance Fees

1,398,438

569,664

(59)%

2,177,452

2,243,400

3%

Investment Income

175,971

10,774

(94)%

292,438

200,415

(31)%

Interest Income and Dividend Revenue

22,094

31,026

40%

44,456

61,477

38%

Total Revenues

2,236,959

1,202,221

(46)%

3,745,778

3,710,940

(1)%

Total Expenses

885,964

673,194

(24)%

1,569,537

1,550,130

(1)%

Taxes

25,032

20,587

(18)%

36,344

30,306

(17)%

Economic Net Income (“ENI”)

1,325,963

$    

508,440

$        

(62)%

2,139,897

$    

2,130,504

$    

(0)%

ENI per Unit

1.15

$              

0.43

$              

(63)%

1.85

$              

1.80

$              

(3)%

GAAP Net Income

517,016

$        

134,168

$        

(74)%

782,633

$        

763,616

$        

(2)%

Fee Related Earnings (“FRE”)

206,412

$        

178,441

$        

(14)%

381,467

$        

359,065

$        

(6)%

Distributable Earnings (“DE”)

765,172

$        

1,033,920

$    

35%

1,243,818

$    

2,274,127

$    

83%

DE per Common Unit

0.65

$              

0.88

$              

35%

1.05

$              

1.93

$              

84%

Total AUM

278,917,713

$

332,723,546

$

19%

278,917,713

$

332,723,546

$

19%

Fee-Earning AUM

209,913,760

$

239,342,214

$

14%

209,913,760

$

239,342,214

$

14%

Blackstone’s Second Quarter 2015 Earnings

Blackstone

3

Private Equity

16.5%

2Q’15 LTM increase in fund carrying value

$547 million

2Q’15 Realized Performance Fees

$92.0 billion

Total AUM up 35% YoY

Quarterly

appreciation

of

3.5%

was

driven

by

positive

operating

fundamentals

despite

challenging

markets;

up

9.4%

year-to-date

and

16.5%

LTM,

widely

outpacing

broader

market

indices.

Realizations

remained

strong

with

$4.0

billion

during

the

quarter

and

$13.9

billion

LTM

on

public

and

strategic

exits

in

corporate

private

equity

funds.

•

Completed

the

strategic

sale

of

Biomet,

including

a

$1.2

billion

cash

component.

•

Second

quarter

public

share

sales

included

Hilton,

Nielsen,

Catalent

and

Pinnacle

Foods.

•

Announced

the

strategic

sales

of

Center

Parcs

and

Allied

Barton

which

will

close

later

this

year.

Deployed

$1.9

billion

of

capital

during

the

quarter,

leveraging

unique

global

mandates

and

a

wide

breadth

of

fund

strategies

to

identify

capital

investment

opportunities

at

attractive

values.

Raised

$16.7

billion

of

commitments,

including

$961

million

in

July,

for

the

seventh

global

private

equity

fund

while

receiving

third

party

subscriptions

well

in

excess

of

the

$17.5

billion

cap.

Raised

$1.2

billion

of

capital

for

the

second

Tactical

Opportunities

platform

bringing

total

closings

to

$4.3

billion

and

total

platform

AUM

to

$11.3

billion

three

years

after

its

initial

launch.

% Change

% Change

(Dollars in Thousands)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

127,138

$      

103,274

$      

(19)%

267,720

$     

225,242

$     

(16)%

Performance Fees

714,604

241,002

(66)%

1,001,474

1,190,802

19%

Investment Income

92,474

27,957

(70)%

143,976

104,260

(28)%

Interest Income and Dividend Revenue

4,666

7,667

64%

9,894

15,284

54%

Total Revenues

938,882

379,900

(60)%

1,423,064

1,535,588

8%

Compensation

73,038

67,079

(8)%

146,345

137,168

(6)%

Performance Fee Compensation

178,914

80,928

(55)%

237,537

298,530

26%

Other Operating Expenses

39,193

62,458

59%

72,199

101,213

40%

Total Expenses

291,145

210,465

(28)%

456,081

536,911

18%

Economic Income

647,737

$     

169,435

$     

(74)%

966,983

$     

998,677

$     

3%

Total AUM

68,294,162

$

92,026,337

$

35%

68,294,162

$

92,026,337

$

35%

Fee-Earning AUM

42,888,756

$

49,537,189

$

16%

42,888,756

$

49,537,189

$

16%

Blackstone

4

Real Estate

20.3%

2Q’15 LTM increase in fund carrying value

$365 million

2Q’15 Realized Performance Fees

$91.6 billion

Total AUM up 14% YoY

Opportunistic

Real

Estate

funds’

carrying

value

appreciated

1.2%

during

the

quarter

on

continued

strong

operating

fundamentals

across

the

portfolio

partially

offset

by

declines

in

public

investment

values.

•

Appreciation

of

9.0%

year-to-date

and

20.3%

LTM,

significantly

outpacing

broader

market

indices.

Continued

active

pace

of

realizations

with

$4.7

billion

in

the

quarter

driven

by

a

Hilton

secondary

equity

offering

and

several

private

exits

and

refinancings,

bringing

LTM

capital

returned

to

investors

to

$25.0

billion.

Record

level

of

investment

activity

with

$8.0

billion

invested

or

committed

as

of

quarter

end,

driven

by

broad-based

deployment

across

BREP,

BREDS

and

BPP.

Capital

invested

in

the

second

quarter

was

$3.0

billion.

Raised

$1.9

billion

during

the

quarter,

and

$18.3

billion

year-to-date,

driven

by

all

three

fund

groups.

BXMT

raised

$1.0

billion

in

two

accretive

equity

offerings,

bringing

its

market

capitalization

to

$2.6

billion

just

two

years

after

launching

the

platform.

Total

AUM

of

$91.6

billion

up

14%

from

the

prior

year

on

significant

fundraising

activity

and

market

appreciation.

% Change

% Change

(Dollars in Thousands)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

163,463

$      

157,902

$       

(3)%

327,456

$      

316,623

$      

(3)%

Performance Fees

539,874

180,530

(67)%

877,480

817,552

(7)%

Investment Income (Loss)

72,227

(22,259)

n/m

108,963

86,595

(21)%

Interest Income and Dividend Revenue

8,009

10,259

28%

14,119

20,256

43%

Total Revenues

783,573

326,432

(58)%

1,328,018

1,241,026

(7)%

Compensation

85,582

79,484

(7)%

165,815

164,318

(1)%

Performance Fee Compensation

172,079

66,510

(61)%

282,263

217,853

(23)%

Other Operating Expenses

36,542

43,346

19%

69,649

83,489

20%

Total Expenses

294,203

189,340

(36)%

517,727

465,660

(10)%

Economic Income

489,370

$      

137,092

$      

(72)%

810,291

$      

775,366

$      

(4)%

Total AUM

80,410,988

$ 

91,578,634

$ 

14%

80,410,988

$ 

91,578,634

$ 

14%

Fee-Earning AUM

52,823,975

$ 

62,683,857

$ 

19%

52,823,975

$ 

62,683,857

$ 

19%

Blackstone

5

Hedge Fund Solutions

4.1%

2Q’15 YTD Composite Gross Return

$36.6 billion

Incentive Fee Eligible AUM at 2Q’15

$2.4 billion

2Q’15 Fee-Earning Gross Inflows

Total

Revenues

and

Economic

Income

of

$175

million

and

$92

million

for

the

quarter

were

up

6%

and

11%

year-

over-year,

respectively,

driven

by

a

13%

increase

in

Fee-Earning

AUM

over

the

same

period

on

continued

steady

organic

growth

and

above-market

appreciation.

Despite

more

difficult

markets

globally,

the

composite

gross

return

was

up

1.1%

for

the

quarter

and

4.1%

year-to-

date,

outperforming

global

markets

with

less

volatility.

Fee-Earning

gross

inflows

of

$2.4

billion

during

the

quarter

and

$11.7

billion

LTM,

were

driven

by

significant

investments

in

customized

and

commingled

strategies.

•

July

1

subscriptions

of

$714

million

are

not

yet

included

in

Fee-Earning

AUM.

Total

AUM

reached

a

record

$67.8

billion

on

the

growth

of

customized

strategies

and

continued

diversification

of

the

platform.

•

Total

AUM

for

BAAM’s

individual

investor

solutions

platform

reached

$4.6

billion,

up

from

$2.2

billion

as

of

July

1,

2014.

% Change

% Change

(Dollars in Thousands)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

121,400

$      

130,067

$       

7%

233,544

$      

258,842

$      

11%

Performance Fees

38,529

40,784

6%

96,459

98,727

2%

Investment Income (Loss)

3,451

275

(92)%

24,702

(5,617)

n/m

Interest Income and Dividend Revenue

2,340

3,970

70%

5,001

7,919

58%

Total Revenues

165,720

175,096

6%

359,706

359,871

0%

Compensation

43,341

45,841

6%

83,912

101,945

21%

Performance Fee Compensation

14,170

16,552

17%

34,202

35,673

4%

Other Operating Expenses

25,101

20,499

(18)%

44,581

41,705

(6)%

Total Expenses

82,612

82,892

0%

162,695

179,323

10%

Economic Income

83,108

$         

92,204

$         

11%

197,011

$      

180,548

$      

(8)%

Total AUM

60,672,759

$ 

67,829,866

$ 

12%

60,672,759

$ 

67,829,866

$ 

12%

Fee-Earning AUM

58,084,020

$ 

65,512,170

$ 

13%

58,084,020

$ 

65,512,170

$ 

13%

The BAAM Principal Solutions (“BPS”) Composite does not include BAAM’s individual investor solutions (liquid alternatives), long-only equity, long-biased commodities, ventures

(seeding and minority interests), strategic opportunities (co-investments), Senfina (direct trading) and advisory (non-discretionary) platforms, except for investments by BPS funds directly

into those platforms. BAAM-managed funds in liquidation are also excluded. On a net of fees basis, the BPS Composite was up 0.9% for the quarter and 3.6% year-to-date.

Blackstone

6

Credit

$81.3 billion

2Q’15 Total AUM

Investment Performance

Gross Returns

Consistently

strong

performance

and

diverse

organic

inflows

across

a

broad

range

of

funds

generated

Total

Revenues

and

Economic

Income

of

$241

million

and

$119

million,

respectively,

for

the

second

quarter.

Total

AUM

reached

a

record

$81.3

billion

driven

by

new

product

launches,

including

$2.6

billion

of

capital

raised

in

energy

focused

products

and

subsequent

closings

of

$893

million

in

the

European

senior

debt

strategy,

bringing

that

strategy’s

total

to

$1.8

billion.

Launched

11

CLOs

over

the

LTM

with

$6.0

billion

of

Total

AUM,

including

six

during

the

first

half

of

2015.

Record

Fee-Earning

AUM

up

10%

year-over-year

driven

by

capital

deployed

in

the

drawdown

funds

and

capital

raised

in

the

Hedge

Fund

Strategies

and

Performing

Credit

businesses.

Long

Only

Funds

Alternative

Strategies

Funds

For Mezzanine and Rescue Lending Strategies, Investment Performance represents the combined cash flows of the fee-earning funds exceeding $100 million of fair value at each respective quarter end.

For Hedge Fund Strategies, Investment Performance represents the weighted-average composite of the fee-earning funds exceeding $100 million of fair value at each respective quarter end. Investment

Performance excludes the Blackstone Funds that were contributed to GSO as part of Blackstone’s acquisition of GSO in March 2008. Mezzanine Strategies’ net returns were 5.0% for 2Q’15 and 7.5% for

YTD’15, Rescue Lending Strategies’ net returns were 5.3% for 2Q’15 and 4.9% for YTD’15 and Hedge Fund Strategies’ net returns were 1.4% for 2Q’15 and 2.6% for YTD’15. Performing Credit includes

Mezzanine Funds and business development companies (“BDCs”). Customized Credit Strategies (“CCS”) include closed-end funds, commingled funds, the exchange traded fund and separately managed accounts.

CLOs

CCS

% Change

% Change

(Dollars in Thousands)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

112,825

$      

122,339

$       

8%

217,232

$      

244,468

$      

13%

Performance Fees

105,431

107,348

2%

202,039

136,319

(33)%

Investment Income

6,744

5,483

(19)%

12,894

14,607

13%

Interest Income and Dividend Revenue

4,892

5,938

21%

10,753

11,589

8%

Total Revenues

229,892

241,108

5%

442,918

406,983

(8)%

Compensation

51,310

47,124

(8)%

102,062

97,001

(5)%

Performance Fee Compensation

52,675

51,451

(2)%

101,090

67,201

(34)%

Other Operating Expenses

22,159

23,539

6%

54,998

45,375

(17)%

Total Expenses

126,144

122,114

(3)%

258,150

209,577

(19)%

Economic Income

103,748

$      

118,994

$      

15%

184,768

$      

197,406

$      

7%

Total AUM

69,539,804

$ 

81,288,709

$ 

17%

69,539,804

$ 

81,288,709

$ 

17%

Fee-Earning AUM

56,117,009

$ 

61,608,998

$ 

10%

56,117,009

$ 

61,608,998

$ 

10%

2Q'15

YTD'15

Mezzanine

   Strategies

6.2%

9.0%

Rescue Lending

   Strategies

6.3%

5.7%

Hedge Fund

   Strategies

2.0%

3.6%

14%

25%

14%

10%

37%

Hedge Fund Strategies

Rescue Lending

Performing Credit

Blackstone

7

Financial Advisory

Fee

Revenues

decreased

in

the

second

quarter

compared

to

the

prior

year

on

a

decline

in

the

number

of

closed

transactions

during

the

quarter.

Heightened

merger

and

acquisition

volume

and

an

increase

in

energy-related

restructuring

opportunities

has

continued

to

keep

the

advisory

pipeline

robust.

The

fundraising

environment

for

alternative

assets

continues

to

remain

strong

as

increased

distributions

from

legacy

investments

are

re-invested

across

the

fastest

growing

segment

of

asset

management.

Given

the

strong

level

of

backlog

activity

entering

the

third

quarter,

Fee

Revenues

for

the

first

nine

months

of

2015

are

expected

to

exceed

the

prior

year

period.

The

spin-off

transaction,

announced

on

October

10,

2014,

continues

to

progress

as

planned

and

is

on

target

to

occur

in

the

second

half

of

2015.

Long-term

growth

plans

are

steadily

progressing

with

several

key

senior

hires

announced

year-to-date.

% Change

% Change

(Dollars in Thousands)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

115,630

$     

77,175

$        

(33)%

185,480

$     

160,473

$     

(13)%

Investment Income (Loss)

1,075

(682)

n/m

1,903

570

(70)%

Interest Income and Dividend Revenue

2,187

3,192

46%

4,689

6,429

37%

Total Revenues

118,892

79,685

(33)%

192,072

167,472

(13)%

Compensation

69,744

49,824

(29)%

131,426

118,758

(10)%

Other Operating Expenses

22,116

18,559

(16)%

43,458

39,901

(8)%

Total Expenses

91,860

68,383

(26)%

174,884

158,659

(9)%

Economic Income

27,032

$        

11,302

$        

(58)%

17,188

$        

8,813

$          

(49)%

Blackstone

8

Total AUM by Segment

(Dollars in Billions)

$278.9

$332.7

$229.6

Fee-Earning AUM by Segment

(Dollars in Billions)

$209.9

$239.3

$176.3

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Record Fee-Earning AUM of $239.3 billion was up 14% year-over-year as $68.0 billion of gross inflows easily

outpaced $37.3 billion of realizations and outflows.

Fee-Earning AUM now includes $14.8 billion from the eighth global real estate fund, but does not yet include the

seventh global private equity fund which had $15.7 billion of closings in the second quarter.

•

Both are on target to reach their fundraising caps as investor demand continues to exceed fund size, and capital

commitments are originating from innovative sources (e.g., international investors and high net worth).

Total AUM increased 19% year-over-year to $332.7 billion driven by $93.9 billion from gross inflows and

$20.2

billion from consistently strong fund appreciation.

•

Each segment had double digit growth despite $60.3 billion of capital returned to investors over the LTM.

Assets Under Management

$48.5

$56.1

$61.6

$47.6

$58.1

$65.5

$43.6

$52.8

$62.7

$36.6

$42.9

$49.5

2Q'13

2Q'14

2Q'15

$62.2

$69.5

$81.3

$50.1

$60.7

$67.8

$63.9

$80.4

$91.6

$53.3

$68.3

$92.0

2Q'13

2Q'14

2Q'15

Blackstone

9

Additional Capital Detail

Record

undrawn

capital

(“Total

Dry

Powder”)

of

$82.1

billion,

up

81%

year-over-year,

driven

by

fundraises

for

the

latest

global

private

equity

and

real

estate

funds.

Performance

Fee

Eligible

AUM

reached

$248.7

billion

at

quarter

end,

up

30%

year-over-year,

despite

significant

realizations

in

the

Real

Estate

and

Private

Equity

segments.

•

Net

inflows

and

consistently

strong

investment

performance

drove

a

13%

year-over-year

increase

in

assets

currently

earning

Performance

Fees

to

$157.6

billion.

51%

of

the

$10.1

billion

capital

invested

year-to-date

was

in

non-North

American

investments,

leveraging

product

diversity

and

unique

global

fund

mandates.

Uninvested

Not Earning

Fees

Currently

Earning Fees

Private Equity

Real Estate

Hedge Fund Solutions

Credit

North America

Europe

Asia

Global Secondaries

and Other

$82 billion 2Q’15

Total Dry Powder

$249 billion

Performance Fee Eligible AUM

$10 billion YTD’15

Capital Invested by Region

$191.0

$248.7

$156.8

$4.9/

49%

$2.7/

27%

$0.3/

3%

$2.1/

21%

$95.7

$139.7

$157.6

$23.9

$9.0

$13.4

$37.2

$42.2

$77.7

2Q'13

2Q'14

2Q'15

$36.8/

45%

$27.2/

33%

$3.0/

4%

$15.1/

18%

Blackstone

10

At

June

30,

2015,

Blackstone

had

$4.3

billion

in

total

cash,

corporate

treasury

and

liquid

investments

and

$11.1

billion

of

total

net

value,

or

$9.43

per

DE

unit,

up

10%

from

$8.60

a

year

ago.

During

the

second

quarter,

Blackstone

raised

$350

million

of

30-year

notes

at

a

4.50%

yield

and

€300

million

of

10-year

notes

at

a

2.10%

yield,

bringing

total

long-term

borrowings

to

$2.8

billion.

Blackstone

has

no

net

debt,

over

$11

billion

of

total

net

value

on

the

balance

sheet

and

maintained

its

A+/A+

ratings.

Balance Sheet Highlights

(Dollars in Millions)

2Q’15

Cash and Cash Equivalents

$

2,165

Treasury Cash

Management Strategies

1,967

Liquid Investments

178

Illiquid

Investments

2,307

Net Accrued Performance

Fees

4,472

Total Net Value

$

11,089

Outstanding

Bonds (at par)

$

2,822

A+/A+

rated by S&P and Fitch

$1.1 billion

undrawn credit revolver with

May 2019 maturity

$4.3 billion

total cash, corporate treasury

and liquid investments

Cash and Investments

Net

Performance

Fees

Total Cash

and

Liquids

Illiquids

$9.43

$8.60

$6.31

$2.24

$3.72

$3.80

$2.06

$2.57

$1.96

$2.01

$2.32

$3.66

2Q'13

2Q'14

2Q'15

Balance Sheet Highlights are preliminary, and exclude the consolidated Blackstone funds. Liquid Investments are primarily Blackstone investments in Hedge Fund Solutions and non-drawdown Credit. Illiquid

Investments include Blackstone investments in Private Equity, Real Estate and Other, which were $944 million, $1.1 billion, and $272 million, respectively, as of June 30, 2015, $1.0 billion, $1.5 billion, and $412

million, respectively, as of June 30, 2014 and $911 million, $1.2 billion, and $193 million, respectively, as of June 30, 2013. Cash and Investments per unit amounts are calculated using period end DE Units

Outstanding (see page 30, Unit Rollforward).

Blackstone

11

Despite

Net

Realized

Performance

Fees

of

$2.8

billion

over

the

LTM,

Net

Accrued

Performance

Fees

remained

steady

year-over-year

at

$4.5

billion

($3.80/unit),

up

$231

million

from

the

same

period

last

year.

Net

Accrued

Performance

Fees

grew

at

a

33%

CAGR

since

the

second

quarter

of

2013,

primarily

driven

by

continued

appreciation

in

Real

Estate

and

Private

Equity.

Performance Fees

Net Realized Performance Fees

(Dollars in Millions)

$1,211

$2,828

$698

Net Accrued Performance Fees

(Dollars in Millions)

$4,241

$4,472

$2,529

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$4.5 billion

Net Accrued Performance Fees

62%

Net Accrued

Performance Fees

Related to Publics/Pending Exits

$2.8 billion

Record 2Q’15 LTM Net

Realized Performance Fees

$177

$155

$156

$245

$632

$1,454

$201

$298

$1,138

2Q'13 LTM

2Q'14 LTM

2Q'15 LTM

$1,635

$2,664

$2,424

$633

$1,275

$1,764

2Q'13

2Q'14

2Q'15

Blackstone

12

GAAP Statement of Operations

% Change

% Change

(Dollars in Thousands, Except per Unit Data) (Unaudited)

2Q'14

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Revenues

Management and Advisory Fees, Net

619,523

$        

574,132

$        

(7)%

1,192,683

$     

1,190,900

$     

(0)%

Performance Fees

Realized Carried Interest

641,659

937,483

46%

975,282

2,145,077

120%

Realized Incentive Fees

39,504

47,682

21%

83,298

77,320

(7)%

Unrealized Carried Interest

660,682

(441,930)

n/m

991,076

(68,090)

n/m

Unrealized Incentive Fees

54,639

25,070

(54)%

118,872

87,106

(27)%

Total Performance Fees

1,396,484

568,305

(59)%

2,168,528

2,241,413

3%

Investment Income (Loss)

Realized

215,710

157,823

(27)%

368,736

345,753

(6)%

Unrealized

10,809

(100,999)

n/m

24,309

(82,726)

n/m

Total Investment Income

226,519

56,824

(75)%

393,045

263,027

(33)%

Interest and Dividend Revenue

15,340

21,965

43%

29,409

43,885

49%

Other

(6)

3,976

n/m

863

(1,665)

n/m

Total Revenues

2,257,860

1,225,202

(46)%

3,784,528

3,737,560

(1)%

Expenses

Compensation and Benefits

Compensation

500,641

473,019

(6)%

985,992

1,032,578

5%

Performance Fee Compensation

Realized Carried Interest

260,301

238,033

(9)%

409,699

530,281

29%

Realized Incentive Fees

18,509

21,837

18%

42,144

34,064

(19)%

Unrealized Carried Interest

114,296

(50,559)

n/m

155,026

23,821

(85)%

Unrealized Incentive Fees

24,692

6,130

(75)%

48,223

31,091

(36)%

Total Compensation and Benefits

918,439

688,460

(25)%

1,641,084

1,651,835

1%

General, Administrative and Other

136,492

146,859

8%

272,046

277,832

2%

Interest Expense

29,847

37,414

25%

54,514

68,784

26%

Fund Expenses

5,003

41,699

733%

9,988

58,549

486%

Total Expenses

1,089,781

914,432

(16)%

1,977,632

2,057,000

4%

Other Income

Net Gains from Fund Investment Activities

138,585

82,015

(41)%

208,740

175,570

(16)%

Income Before Provision for Taxes

1,306,664

$     

392,785

$        

(70)%

2,015,636

$     

1,856,130

$     

(8)%

Provision for Taxes

83,282

43,251

(48)%

137,379

142,595

4%

Net Income

1,223,382

$     

349,534

$        

(71)%

1,878,257

$     

1,713,535

$     

(9)%

Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities

22,486

13,780

(39)%

68,278

21,307

(69)%

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

140,061

66,716

(52)%

184,022

148,512

(19)%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

543,819

134,870

(75)%

843,324

780,100

(7)%

Net Income Attributable to The Blackstone Group L.P. ("BX")

517,016

$        

134,168

$        

(74)%

782,633

$        

763,616

$        

(2)%

Net Income per Common Unit, Basic

0.85

$               

0.21

$               

(75)%

1.30

$               

1.21

$               

(7)%

Net Income per Common Unit, Diluted

0.85

$               

0.21

$               

(75)%

1.29

$               

1.21

$               

(6)%

Appendix

Blackstone

14

Total Segments

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Management and Advisory Fees, Net

Base Management Fees

496,570

$          

505,493

$          

508,588

$          

516,397

$          

516,492

$          

973,448

$          

1,032,889

$       

Advisory Fees

114,914

84,131

151,837

84,238

76,998

184,877

161,236

Transaction and Other Fees, Net

49,196

90,885

46,446

37,073

11,728

109,106

48,801

Management Fee Offsets

(20,218)

(22,763)

(27,146)

(17,945)

(18,434)

(36,862)

(36,379)

Total Management and Advisory Fees, Net

640,462

657,746

679,725

619,763

586,784

1,230,569

1,206,547

Performance Fees

Realized Carried Interest

641,659

638,752

836,562

1,207,594

937,483

975,282

2,145,077

Realized Incentive Fees

39,291

36,840

131,777

29,670

47,819

93,128

77,489

Unrealized Carried Interest

660,712

222,026

495,935

373,852

(441,949)

991,000

(68,097)

Unrealized Incentive Fees

56,776

(6,531)

(140,936)

62,620

26,311

118,042

88,931

Total Performance Fees

1,398,438

891,087

1,323,338

1,673,736

569,664

2,177,452

2,243,400

Investment Income (Loss)

Realized

202,199

75,832

153,477

107,792

136,497

314,116

244,289

Unrealized

(26,228)

4,934

(55,053)

81,849

(125,723)

(21,678)

(43,874)

Total Investment Income

175,971

80,766

98,424

189,641

10,774

292,438

200,415

Interest Income and Dividend Revenue

22,094

23,585

28,303

30,451

31,026

44,456

61,477

Other

(6)

719

7,823

(4,872)

3,973

863

(899)

Total Revenues

2,236,959

1,653,903

2,137,613

2,508,719

1,202,221

3,745,778

3,710,940

Expenses

Compensation

323,015

324,426

199,525

329,838

289,352

629,560

619,190

Performance Fee Compensation

Realized Carried Interest

260,301

186,003

219,941

292,248

238,032

409,699

530,280

Realized Incentive Fees

18,509

19,029

48,926

12,227

21,837

42,144

34,064

Unrealized Carried Interest

114,336

164,132

59,879

74,380

(50,559)

155,026

23,821

Unrealized Incentive Fees

24,692

(9,002)

(58,497)

24,961

6,131

48,223

31,092

Total Compensation and Benefits

740,853

684,588

469,774

733,654

504,793

1,284,652

1,238,447

Other Operating Expenses

145,111

131,440

137,457

143,282

168,401

284,885

311,683

Total Expenses

885,964

816,028

607,231

876,936

673,194

1,569,537

1,550,130

Economic Income

1,350,995

$       

837,875

$          

1,530,382

$       

1,631,783

$       

529,027

$          

2,176,241

$       

2,160,810

$       

Economic Net Income

1,325,963

$       

758,356

$          

1,446,733

$       

1,622,064

$       

508,440

$          

2,139,897

$       

2,130,504

$       

Fee Related Earnings

206,412

$          

236,820

$          

384,720

$          

180,624

$          

178,441

$          

381,467

$          

359,065

$          

Distributable Earnings

765,172

$          

686,086

$          

1,134,054

$       

1,240,207

$       

1,033,920

$       

1,243,818

$       

2,274,127

$       

Total Assets Under Management

278,917,713

$   

284,414,936

$   

290,381,069

$   

310,451,289

$   

332,723,546

$   

278,917,713

$   

332,723,546

$   

Fee-Earning Assets Under Management

209,913,760

$   

214,819,600

$   

216,691,799

$   

223,511,700

$   

239,342,214

$   

209,913,760

$   

239,342,214

$   

Weighted Average Fee-Earning AUM

209,251,436

$   

213,525,423

$   

215,196,253

$   

218,241,987

$   

237,576,488

$   

205,257,277

$   

230,738,845

$   

LP Capital Invested

5,426,511

$       

6,664,365

$       

7,810,098

$       

4,765,536

$       

4,814,362

$       

9,895,038

$       

9,579,898

$       

Total Capital Invested

5,858,210

$       

7,619,737

$       

8,090,350

$       

5,052,370

$       

5,048,058

$       

10,665,873

$     

10,100,428

$     

Blackstone

15

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

103,204

$      

108,236

$      

105,817

$      

108,383

$      

121,918

$      

201,788

$      

230,301

$      

Transaction and Other Fees, Net

27,616

48,996

15,183

20,359

(12,131)

70,463

8,228

Management Fee Offsets

(4,246)

(5,837)

(7,350)

(4,949)

(9,028)

(5,959)

(13,977)

Total Management Fees, Net

126,574

151,395

113,650

123,793

100,759

266,292

224,552

Performance Fees

Realized Carried Interest

212,394

124,913

297,290

382,978

546,575

332,199

929,553

Unrealized Carried Interest

502,210

96,455

457,098

566,822

(305,573)

669,275

261,249

Total Performance Fees

714,604

221,368

754,388

949,800

241,002

1,001,474

1,190,802

Investment Income (Loss)

Realized

74,812

20,421

46,951

44,816

50,258

135,347

95,074

Unrealized

17,662

(12,754)

(19,789)

31,487

(22,301)

8,629

9,186

Total Investment Income

92,474

7,667

27,162

76,303

27,957

143,976

104,260

Interest Income and Dividend Revenue

4,666

5,346

6,743

7,617

7,667

9,894

15,284

Other

564

2,150

2,991

(1,825)

2,515

1,428

690

Total Revenues

938,882

387,926

904,934

1,155,688

379,900

1,423,064

1,535,588

Expenses

Compensation

73,038

79,007

51,095

70,089

67,079

146,345

137,168

Performance Fee Compensation

Realized Carried Interest

112,720

30,944

36,958

39,482

106,502

198,491

145,984

Unrealized Carried Interest

66,194

93,434

77,966

178,120

(25,574)

39,046

152,546

Total Compensation and Benefits

251,952

203,385

166,019

287,691

148,007

383,882

435,698

Other Operating Expenses

39,193

34,109

36,590

38,755

62,458

72,199

101,213

Total Expenses

291,145

237,494

202,609

326,446

210,465

456,081

536,911

Economic Income

647,737

$      

150,432

$      

702,325

$      

829,242

$      

169,435

$      

966,983

$      

998,677

$      

Total Assets Under Management

68,294,162

$

69,890,367

$

73,073,252

$

76,327,189

$

92,026,337

$

68,294,162

$

92,026,337

$

Fee-Earning Assets Under Management

42,888,756

$

43,817,741

$

43,890,167

$

49,342,211

$

49,537,189

$

42,888,756

$

49,537,189

$

Weighted Average Fee-Earning AUM

43,702,379

$

43,838,483

$

42,899,791

$

45,051,839

$

49,925,744

$

44,235,482

$

49,878,703

$

LP Capital Invested

1,857,330

$   

2,277,861

$   

3,459,063

$   

2,374,599

$   

1,800,854

$   

3,886,349

$   

4,175,453

$   

Total Capital Invested

2,159,178

$   

3,172,660

$   

3,593,887

$   

2,517,769

$   

1,949,748

$   

4,430,451

$   

4,467,517

$   

Private Equity

Blackstone

16

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

157,869

$      

155,089

$      

156,208

$      

152,348

$      

140,743

$      

317,205

$      

293,091

$      

Transaction and Other Fees, Net

13,514

38,312

26,220

15,216

21,510

27,078

36,726

Management Fee Offsets

(7,702)

(8,977)

(8,540)

(4,866)

(5,428)

(16,926)

(10,294)

Total Management Fees, Net

163,681

184,424

173,888

162,698

156,825

327,357

319,523

Performance Fees

Realized Carried Interest

417,826

349,237

526,041

811,249

363,983

612,484

1,175,232

Realized Incentive Fees

6,070

1,159

4,296

723

1,220

6,044

1,943

Unrealized Carried Interest

119,461

187,175

77,173

(181,019)

(188,608)

259,698

(369,627)

Unrealized Incentive Fees

(3,483)

(374)

(4,401)

6,069

3,935

(746)

10,004

Total Performance Fees

539,874

537,197

603,109

637,022

180,530

877,480

817,552

Investment Income (Loss)

Realized

122,664

49,173

105,901

71,344

85,432

154,021

156,776

Unrealized

(50,437)

14,492

(28,364)

37,510

(107,691)

(45,058)

(70,181)

Total Investment Income (Loss)

72,227

63,665

77,537

108,854

(22,259)

108,963

86,595

Interest Income and Dividend Revenue

8,009

7,135

8,943

9,997

10,259

14,119

20,256

Other

(218)

976

1,788

(3,977)

1,077

99

(2,900)

Total Revenues

783,573

793,397

865,265

914,594

326,432

1,328,018

1,241,026

Expenses

Compensation

85,582

90,586

69,916

84,834

79,484

165,815

164,318

Performance Fee Compensation

Realized Carried Interest

143,442

64,187

173,534

246,496

116,168

195,275

362,664

Realized Incentive Fees

3,081

592

2,323

356

671

3,065

1,027

Unrealized Carried Interest

27,339

108,789

4,061

(98,084)

(50,559)

84,324

(148,643)

Unrealized Incentive Fees

(1,783)

(123)

(2,227)

2,575

230

(401)

2,805

Total Compensation and Benefits

257,661

264,031

247,607

236,177

145,994

448,078

382,171

Other Operating Expenses

36,542

36,138

40,296

40,143

43,346

69,649

83,489

Total Expenses

294,203

300,169

287,903

276,320

189,340

517,727

465,660

Economic Income

489,370

$      

493,228

$      

577,362

$      

638,274

$      

137,092

$      

810,291

$      

775,366

$      

Total Assets Under Management

80,410,988

$

80,188,858

$

80,863,187

$

92,785,658

$

91,578,634

$

80,410,988

$

91,578,634

$

Fee-Earning Assets Under Management

52,823,975

$

52,308,175

$

52,563,068

$

50,783,247

$

62,683,857

$

52,823,975

$

62,683,857

$

Weighted Average Fee-Earning AUM

53,233,974

$

52,764,267

$

52,236,610

$

51,671,739

$

60,939,868

$

50,579,804

$

56,168,300

$

LP Capital Invested

3,017,193

$   

3,046,867

$   

3,478,850

$   

1,443,163

$   

2,963,609

$   

4,709,425

$   

4,406,772

$   

Total Capital Invested

3,128,232

$   

3,071,425

$   

3,584,035

$   

1,405,603

$   

3,035,837

$   

4,874,692

$   

4,441,440

$   

Real Estate

Blackstone

17

Hedge Fund Solutions

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

123,008

$       

121,484

$       

125,105

$       

130,637

$       

130,216

$       

236,392

$       

260,853

$       

Transaction and Other Fees, Net

126

161

189

25

-

219

25

Management Fee Offsets

(1,531)

(1,099)

(929)

(280)

(608)

(2,986)

(888)

Total Management Fees, Net

121,603

120,546

124,365

130,382

129,608

233,625

259,990

Performance Fees

Realized Incentive Fees

7,973

6,683

86,028

10,516

16,915

47,818

27,431

Unrealized Carried Interest

-

-

-

-

8,014

-

8,014

Unrealized Incentive Fees

30,556

25,473

(74,993)

47,427

15,855

48,641

63,282

Total Performance Fees

38,529

32,156

11,035

57,943

40,784

96,459

98,727

Investment Income (Loss)

Realized

2,394

2,693

(357)

(10,375)

(1,757)

19,214

(12,132)

Unrealized

1,057

(1,168)

812

4,483

2,032

5,488

6,515

Total Investment Income (Loss)

3,451

1,525

455

(5,892)

275

24,702

(5,617)

Interest Income and Dividend Revenue

2,340

2,724

3,389

3,949

3,970

5,001

7,919

Other

(203)

740

1,196

(1,607)

459

(81)

(1,148)

Total Revenues

165,720

157,691

140,440

184,775

175,096

359,706

359,871

Expenses

Compensation

43,341

41,940

5,806

56,104

45,841

83,912

101,945

Performance Fee Compensation

Realized Incentive Fees

2,918

2,312

23,950

3,470

8,711

16,189

12,181

Unrealized Carried Interest

-

-

-

-

4,077

-

4,077

Unrealized Incentive Fees

11,252

8,778

(27,064)

15,651

3,764

18,013

19,415

Total Compensation and Benefits

57,511

53,030

2,692

75,225

62,393

118,114

137,618

Other Operating Expenses

25,101

20,480

21,068

21,206

20,499

44,581

41,705

Total Expenses

82,612

73,510

23,760

96,431

82,892

162,695

179,323

Economic Income

83,108

$         

84,181

$         

116,680

$       

88,344

$         

92,204

$         

197,011

$       

180,548

$       

Total Assets Under Management

60,672,759

$ 

64,183,863

$ 

63,585,670

$ 

66,378,908

$ 

67,829,866

$ 

60,672,759

$ 

67,829,866

$ 

Fee-Earning Assets Under Management

58,084,020

$ 

62,037,082

$ 

61,417,558

$ 

64,114,498

$ 

65,512,170

$ 

58,084,020

$ 

65,512,170

$ 

Weighted Average Fee-Earning AUM

56,793,206

$ 

60,009,283

$ 

61,730,313

$ 

62,910,553

$ 

65,453,883

$ 

55,958,185

$ 

64,405,449

$ 

LP Capital Invested

188,236

$       

473,233

$       

25,489

$         

133,351

$       

2,131

$           

355,406

$       

135,482

$       

Total Capital Invested

196,348

$       

487,398

$       

12,137

$         

139,223

$       

2,136

$           

399,022

$       

141,359

$       

Blackstone

18

Credit

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

112,489

$      

120,684

$      

121,458

$      

125,029

$      

123,615

$      

218,063

$      

248,644

$      

Transaction and Other Fees, Net

7,064

3,025

4,728

1,457

2,060

10,408

3,517

Management Fee Offsets

(6,739)

(6,850)

(10,327)

(7,850)

(3,370)

(10,991)

(11,220)

Total Management Fees, Net

112,814

116,859

115,859

118,636

122,305

217,480

240,941

Performance Fees

Realized Carried Interest

11,439

164,602

13,231

13,367

26,925

30,599

40,292

Realized Incentive Fees

25,248

28,998

41,453

18,431

29,684

39,266

48,115

Unrealized Carried Interest

39,041

(61,604)

(38,336)

(11,951)

44,218

62,027

32,267

Unrealized Incentive Fees

29,703

(31,630)

(61,542)

9,124

6,521

70,147

15,645

Total Performance Fees

105,431

100,366

(45,194)

28,971

107,348

202,039

136,319

Investment Income (Loss)

Realized

2,223

3,040

1,020

2,237

2,723

5,294

4,960

Unrealized

4,521

4,892

(7,437)

6,887

2,760

7,600

9,647

Total Investment Income (Loss)

6,744

7,932

(6,417)

9,124

5,483

12,894

14,607

Interest Income and Dividend Revenue

4,892

5,968

6,319

5,651

5,938

10,753

11,589

Other

11

(3,619)

1,557

3,493

34

(248)

3,527

Total Revenues

229,892

227,506

72,124

165,875

241,108

442,918

406,983

Expenses

Compensation

51,310

54,877

31,261

49,877

47,124

102,062

97,001

Performance Fee Compensation

Realized Carried Interest

4,139

90,872

9,449

6,270

15,362

15,933

21,632

Realized Incentive Fees

12,510

16,125

22,653

8,401

12,455

22,890

20,856

Unrealized Carried Interest

20,803

(38,091)

(22,148)

(5,656)

21,497

31,656

15,841

Unrealized Incentive Fees

15,223

(17,657)

(29,206)

6,735

2,137

30,611

8,872

Total Compensation and Benefits

103,985

106,126

12,009

65,627

98,575

203,152

164,202

Other Operating Expenses

22,159

20,860

14,666

21,836

23,539

54,998

45,375

Total Expenses

126,144

126,986

26,675

87,463

122,114

258,150

209,577

Economic Income

103,748

$      

100,520

$      

45,449

$        

78,412

$        

118,994

$      

184,768

$      

197,406

$      

Total Assets Under Management

69,539,804

$

70,151,848

$

72,858,960

$

74,959,534

$

81,288,709

$

69,539,804

$

81,288,709

$

Fee-Earning Assets Under Management

56,117,009

$

56,656,602

$

58,821,006

$

59,271,744

$

61,608,998

$

56,117,009

$

61,608,998

$

Weighted Average Fee-Earning AUM

55,521,877

$

56,913,390

$

58,329,539

$

58,607,856

$

61,256,993

$

54,483,806

$

60,286,393

$

LP Capital Invested

363,752

$      

866,404

$      

846,696

$      

814,423

$      

47,768

$        

943,858

$      

862,191

$      

Total Capital Invested

374,452

$      

888,254

$      

900,291

$      

989,775

$      

60,337

$        

961,708

$      

1,050,112

$   

Blackstone

19

Financial Advisory

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

YTD'14

YTD'15

Revenues

Advisory Fees

114,914

$      

84,131

$        

151,837

$      

84,238

$        

76,998

$        

184,877

$      

161,236

$      

Transaction and Other Fees, Net

876

391

126

16

289

938

305

Total Advisory and Transaction Fees

115,790

84,522

151,963

84,254

77,287

185,815

161,541

Investment Income (Loss)

Realized

106

505

(38)

(230)

(159)

240

(389)

Unrealized

969

(528)

(275)

1,482

(523)

1,663

959

Total Investment Income (Loss)

1,075

(23)

(313)

1,252

(682)

1,903

570

Interest Income and Dividend Revenue

2,187

2,412

2,909

3,237

3,192

4,689

6,429

Other

(160)

472

291

(956)

(112)

(335)

(1,068)

Total Revenues

118,892

87,383

154,850

87,787

79,685

192,072

167,472

Expenses

Compensation

69,744

58,016

41,447

68,934

49,824

131,426

118,758

Total Compensation and Benefits

69,744

58,016

41,447

68,934

49,824

131,426

118,758

Other Operating Expenses

22,116

19,853

24,837

21,342

18,559

43,458

39,901

Total Expenses

91,860

77,869

66,284

90,276

68,383

174,884

158,659

Economic Income (Loss)

27,032

$        

9,514

$          

88,566

$        

(2,489)

$         

11,302

$        

17,188

$        

8,813

$          

Blackstone

20

Unitholder

Distribution

Generated

$0.88

of

Distributable

Earnings

per

common

unit

during

the

quarter,

up

35%

year-over-year,

bringing

the

year-to-date

amount

to

$1.93

per

common

unit.

Declared

a

quarterly

distribution

of

$0.74

per

common

unit

to

record

holders

as

of

July

27,

2015;

payable

on

August

3,

2015.

A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on page 31, Definitions and Distribution Policy. DE before Certain Payables represents Distributable Earnings

before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Per Unit calculations are based on end of period Total Common Units Outstanding (page 30, Unit

Rollforward); actual distributions are paid to unitholders as of the applicable record date. For the periods presented, Net Cash Available for Distribution per Common Unit equals the Actual Distribution per Common Unit.

Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common unitholders’ share was $88.3 million for 2Q’15 and $188.4 million for YTD’15.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

vs. 2Q'14

YTD'14

YTD'15

vs. YTD'14

Distributable

Earnings

(“DE”)

765,172

$   

686,086

$   

1,134,054

$

1,240,207

$

1,033,920

$

35%

1,243,818

$

2,274,127

$

83%

Add: Other Payables Attributable

to Common Unitholders

29,884

69,707

87,977

7,288

-

(100)%

49,740

7,288

(85)%

DE before Certain Payables

795,056

755,793

1,222,031

1,247,495

1,033,920

30%

1,293,558

2,281,415

76%

Percent to Common Unitholders

53%

53%

53%

53%

54%

1%

53%

53%

1%

DE before Certain Payables Attributable

to Common Unitholders

420,236

400,587

650,899

663,608

554,120

32%

682,216

1,217,728

78%

Less: Other Payables Attributable

to Common Unitholders

(29,884)

(69,707)

(87,977)

(7,288)

-

100%

(49,740)

(7,288)

85%

DE Attributable to Common Unitholders

390,352

330,880

562,922

656,320

554,120

42%

632,476

1,210,440

91%

DE per Common Unit

0.65

$         

0.54

$         

0.92

$         

1.05

$         

0.88

$         

35%

1.05

$         

1.93

$         

84%

Less: Retained Capital per Common Unit

(0.10)

$       

(0.10)

$       

(0.14)

$       

(0.16)

$       

(0.14)

$       

(40)%

(0.15)

$       

(0.30)

$       

(100)%

Actual Distribution per Common Unit

0.55

$         

0.44

$         

0.78

$         

0.89

$         

0.74

$         

35%

0.90

$         

1.63

$         

81%

Record Date

July 27, 2015

Payable Date

Aug 3, 2015

Blackstone

21

Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases

in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign

exchange rate fluctuations.

2Q’15 Fee-Earning AUM Rollforward

(Dollars in Millions)

2Q’15 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows:

Eighth

global

opportunistic

fund

($14.8

billion);

BXMT

($1.0

billion).

Outflows:

Uninvested

reserves

at

close

of

BREP

VII

investment

period

($4.0

billion).

Realizations:

BREP

VI

($523

million);

co-investment

($424

million);

BREP

Europe

III

($275

million);

BREP

VII

($187

million).

Inflows:

Individual investor solutions ($931 million); customized solutions ($661 million); specialized solutions ($511 million); commingled

products  ($298 million).

Outflows:

Driven

by

the

liquidity

needs

and

certain

strategic

shifts

in

investors’

programs.

Inflows:

Three

CLO

launches

($1.7

billion);

capital

raised

in

BDCs

($1.6

billion);

Hedge

Fund

Strategies

($461

million).

Outflows:

Hedge

Fund

Strategies

($503

million);

BDCs

($793

million);

Long

Only

platform

($642

million).

Inflows:

Tactical

Opportunities

platform

($822

million);

Strategic

Partners

($516

million);

total

alternative

solutions

($226

million).

Realizations:

BCP

V

strategic

and

public

dispositions

including

Biomet,

Hilton,

Catalent,

Nielsen

and

Pinnacle;

Strategic

Partners

fund

of

funds realizations.

Fee-Earning Assets Under Management

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'15

49,342

$     

50,783

$     

64,115

$     

59,272

$     

223,512

$   

Inflows

1,664

17,965

2,401

4,556

26,587

Outflows

(106)

(4,095)

(1,741)

(1,978)

(7,920)

Realizations

(1,517)

(2,360)

(92)

(965)

(4,933)

Net Inflows

42

11,510

568

1,614

13,735

Market Activity

153

390

829

723

2,096

2Q'15

49,537

$     

62,684

$     

65,512

$     

61,609

$     

239,342

$   

QoQ Increase

0%

23%

2%

4%

7%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'14

42,889

$     

52,824

$     

58,084

$     

56,117

$     

209,914

$   

Inflows

12,227

25,253

11,683

18,878

68,040

Outflows

(1,271)

(4,264)

(5,772)

(6,162)

(17,470)

Realizations

(4,534)

(10,029)

(229)

(5,035)

(19,828)

Net Inflows

6,421

10,959

5,682

7,680

30,742

Market Activity

228

(1,099)

1,746

(2,188)

(1,313)

2Q'15

49,537

$     

62,684

$     

65,512

$     

61,609

$     

239,342

$   

YoY Increase

16%

19%

13%

10%

14%

Credit

Total

Blackstone

22

Inflows:

BXMT ($1.0 billion); eighth global real estate fund ($507 million); BPP ($321 million).

Realizations:

BREP

VI

($1.6

billion);

co-investments

($1.0

billion);

BREP

VII

($616

million);

BREP

Europe

III

($550

million).

Market

Activity:

Strong

operating

fundamentals

drove

1.2%

appreciation

in

opportunistic

funds

despite

declines

in

public

investment

values.

Market

Activity:

BAAM’s

Principal

Solutions

Composite

up

1.1%

gross

(0.9%

net).

Inflows:

Energy

focused

products

($2.6

billion);

three

CLO

launches

($1.7

billion);

the

European

senior

debt

strategy

($893

million);

BDCs

($1.6

billion).

Realizations:

Capital

returned

to

CLO

investors

for

CLOs

outside

their

re-investment

periods

($944

million);

capital

realized

across

the

drawdown funds ($389 million).

Inflows:

Seventh

private

equity

fund

($15.7

billion);

Tactical

Opportunities

platform

($1.2

billion);

Strategic

Partners ($625 million).

Realizations:

BCP

V

($2.8

billion);

Strategic

Partners

($527

million);

BCP

VI

($265

million).

Market

Activity:

3.5%

appreciation

driven

by

the

private

portfolio

(up

4.0%)

services,

retail

and

healthcare

sectors.

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

2Q’15 Total AUM Rollforward

(Dollars in Millions)

2Q’15 LTM Total AUM Rollforward

(Dollars in Millions)

Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases

in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign

exchange rate fluctuations.

Total Assets Under Management

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'15

76,327

$     

92,786

$     

66,379

$     

74,960

$     

310,451

$   

Inflows

18,131

2,227

2,479

8,412

31,250

Outflows

(118)

(94)

(1,791)

(2,207)

(4,210)

Realizations

(4,036)

(4,817)

(100)

(1,338)

(10,290)

Net Inflows (Outflows)

13,978

(2,685)

588

4,867

16,749

Market Activity

1,721

1,478

863

1,462

5,524

2Q'15

92,026

$     

91,579

$     

67,830

$     

81,289

$     

332,724

$   

QoQ Increase (Decrease)

21%

(1)%

2%

8%

7%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'14

68,294

$     

80,411

$     

60,673

$     

69,540

$     

278,918

$   

Inflows

29,837

26,784

11,397

25,888

93,906

Outflows

(1,255)

(482)

(5,885)

(6,912)

(14,533)

Realizations

(13,881)

(25,389)

(256)

(6,229)

(45,754)

Net Inflows

14,701

913

5,256

12,748

33,618

Market Activity

9,031

10,254

1,901

(999)

20,187

2Q'15

92,026

$     

91,579

$     

67,830

$     

81,289

$     

332,724

$   

YoY Increase

35%

14%

12%

17%

19%

Credit

Total

Inflows:

Individual investor solutions ($931 million); customized solutions ($661 million); specialized solutions ($511 million).

Blackstone

23

Net Accrued Performance Fees

Blackstone

had

$4.5

billion

of

accrued

performance

fees,

net

of

performance

fee

compensation

and

distributed

Realized

Performance

Fees,

at

the

end

of

the

quarter.

$4.5 billion

Net Accrued Performance Fees at 2Q’15

$3.80 per unit

Net Accrued Performance Fees at 2Q’15

5.4% increase

in Net Accrued Performance Fees since 2Q’14

Net Accrued Performance Fees

(Dollars in Millions, Except per Unit Data)

1Q'15

2Q'15

2Q'15 Per Unit

QoQ Change

Private Equity

BCP IV Carried Interest

178

$                     

186

$                      

0.16

$                    

8

$                          

BCP V Carried Interest

1,479

1,119

0.95

(360)

BCP VI Carried Interest

270

320

0.27

50

BEP Carried Interest

64

82

0.07

18

Tactical Opportunities Carried Interest

24

36

0.03

12

BTAS Carried Interest

2

2

Strategic Partners Carried Interest

11

18

0.02

7

Other Carried Interest

1

1

-

Total Private Equity

2,027

1,764

1.50

(263)

Real Estate

BREP IV Carried Interest

30

36

0.03

6

BREP V Carried Interest

652

583

0.50

(69)

BREP VI Carried Interest

1,109

868

0.74

(241)

BREP VII Carried Interest

527

565

0.48

38

BREP Int'l I Carried Interest

1

200

0.17

(1)

BREP Europe III Carried Interest

201

86

0.07

(1)

BREP Europe IV Carried Interest

56

-

30

BREP Asia Carried Interest

30

43

0.04

13

BPP Carried Interest

14

18

0.02

4

BPP Incentive Fees

-

4

4

BREDS Carried Interest

17

11

0.01

(6)

BREDS Incentive Fees

4

3

(1)

Asia Platform Incentive Fees

7

7

0.01

-

Total Real Estate

2,648

2,424

2.06

(224)

Hedge Fund Solutions

Incentive Fees

40

60

0.05

20

Total Hedge Fund Solutions

40

60

0.05

20

Credit

Carried Interest

165

183

0.16

18

Incentive Fees

30

41

0.03

11

Total Credit

195

224

0.19

29

Total Blackstone

Carried Interest

4,829

4,357

3.70

(472)

Incentive Fees

81

115

0.10

34

Net Accrued Performance Fees

4,910

$                 

4,472

$                 

3.80

$                    

(438)

$                   

Memo: Net Realized Performance Fees

130

$                    

52

$                      

0.04

$                    

(78)

$                      

Net Accrued Performance Fees are presented net of performance fee compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized

Performance Fees are included in DE. When these fees are received, the receivable is reduced without further impacting DE. Per Unit calculations are based on end of period DE Units

Outstanding (see page 30, Unit Rollforward).

$

$                     

$

$

$

$                     

$

$

$

$                     

$

$

$

$                     

$

$

-

-

-

-

-

-

Blackstone

24

Investment

Records

as

of

June

30,

2015

(a)

Notes on page 25.

Committed

Available

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

(Dollars in Thousands, Except Where Noted)

Capital

Capital (b)

Value

MOIC (c)

% Public

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Private Equity

BCP I (Oct 1987 / Oct 1993)

859,081

$          

-

$                   

-

$                   

n/a

-

1,741,738

$       

2.6x

1,741,738

$       

2.6x

19%

19%

BCP II (Oct 1993 / Aug 1997)

1,361,100

-

-

n/a

-

3,256,819

2.5x

3,256,819

2.5x

32%

32%

BCP III (Aug 1997 / Nov 2002)

3,967,422

-

-

n/a

-

9,184,688

2.3x

9,184,688

2.3x

14%

14%

BCOM (Jun 2000 / Jun 2006)

2,137,330

199,298

244,793

1.2x

-

2,619,040

1.4x

2,863,833

1.3x

7%

6%

BCP IV (Nov 2002 / Dec 2005)

6,773,182

221,559

2,552,980

1.4x

38%

18,651,006

3.2x

21,203,986

2.8x

45%

36%

BCP V (Dec 2005 / Jan 2011)

21,028,965

1,308,522

15,918,338

1.8x

62%

22,107,154

1.9x

38,025,492

1.9x

10%

9%

BCP VI (Jan 2011 / Jan 2017)

15,182,283

5,981,314

12,028,108

1.4x

17%

1,776,759

1.8x

13,804,867

1.4x

49%

14%

BEP (Aug 2011 / Aug 2017)

2,438,402

300,285

2,917,957

1.5x

25%

537,505

2.0x

3,455,462

1.5x

56%

28%

BEP II (Feb 2015 / Feb 2021)

4,951,351

4,951,351

-

n/a

-

-

n/a

-

n/a

n/a

n/a

BCP VII (TBD)

15,723,875

15,723,875

-

n/a

-

-

n/a

-

n/a

n/a

n/a

Total Corporate Private Equity

74,422,991

$    

28,686,204

$    

33,662,176

$    

1.6x

40%

59,874,709

$    

2.3x

93,536,885

$    

1.9x

20%

16%

Tactical Opportunities

10,052,258

5,553,528

5,178,390

1.1x

2%

1,072,776

1.5x

6,251,166

1.2x

35%

14%

Strategic Partners

17,157,488

4,600,759

6,716,759

1.7x

n/a

12,162,598

1.2x

18,879,357

1.3x

n/a

15%

Other Funds and Co-Investment (e)

1,890,393

363,521

1,251,384

1.1x

51%

105,614

1.7x

1,356,998

1.1x

n/a

n/a

Total Private Equity

103,523,130

$  

39,204,012

$    

46,808,709

$    

1.5x

30%

73,215,697

$    

2.0x

120,024,406

$  

1.7x

19%

16%

Real Estate

Dollar

Pre-BREP

140,714

$          

-

$                   

-

$                   

     n/a

n/a

345,190

$          

2.5x

345,190

$          

2.5x

33%

33%

BREP I (Sep 1994 / Oct 1996)

380,708

-

-

     n/a

n/a

1,327,708

2.8x

1,327,708

2.8x

40%

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

-

-

     n/a

n/a

2,531,613

2.1x

2,531,613

2.1x

19%

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

-

-

     n/a

n/a

3,328,504

2.4x

3,328,504

2.4x

21%

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

-

1,095,583

1.0x

15%

3,627,456

2.2x

4,723,039

1.7x

45%

14%

BREP V (Dec 2005 / Feb 2007)

5,539,418

-

5,402,980

2.3x

31%

7,458,152

2.2x

12,861,132

2.2x

14%

12%

BREP VI (Feb 2007 / Aug 2011)

11,059,523

584,641

10,191,646

2.5x

66%

16,123,433

2.4x

26,315,079

2.4x

15%

14%

BREP VII (Aug 2011 /Apr 2015)

13,484,365

3,163,143

15,111,273

1.5x

1%

7,338,402

1.9x

22,449,675

1.6x

35%

25%

BREP VIII (Apr 2015 / Oct 2020)

15,060,000

15,041,248

102,944

1.0x

n/a

-

n/a

102,944

1.0x

n/a

n/a

Total Global BREP

50,584,469

$    

18,789,032

$    

31,904,426

$    

1.8x

28%

42,080,458

$    

2.2x

73,984,884

$    

2.0x

22%

18%

Euro

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€          

-

€                   

1,547

€              

0.2x

n/a

1,362,975

€       

2.1x

1,364,522

€       

2.1x

24%

23%

BREP Int'l II (Sep 2005 / Jun 2008)

1,629,748

53,416

1,500,586

1.5x

32%

785,346

2.0x

2,285,932

1.6x

11%

6%

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

465,841

3,631,038

1.8x

9%

2,005,051

2.1x

5,636,089

1.9x

25%

20%

BREP Europe IV (Sep 2013 / Mar 2019)

6,691,740

3,664,780

4,250,499

1.2x

n/a

261,576

1.3x

4,512,075

1.3x

38%

22%

Total Euro BREP

12,350,800

€    

4,184,037

€       

9,383,670

€       

1.5x

9%

4,414,948

€       

2.0x

13,798,618

€    

1.6x

21%

14%

BREP Co-Investment (f)

5,571,295

$       

-

$                   

5,848,998

$       

2.0x

69%

5,766,461

$       

2.2x

11,615,459

$    

2.1x

16%

17%

BREP Asia (Jun 2013 / Dec 2017)

5,075,917

3,130,004

2,463,724

1.3x

n/a

28,400

1.1x

2,492,124

1.3x

10%

16%

Total BREP

77,300,971

$    

26,671,685

$    

52,492,491

$    

1.7x

26%

53,743,005

$    

2.2x

106,235,496

$  

1.9x

21%

17%

BPP (g)

5,383,751

$       

2,242,222

$       

3,661,781

$       

1.2x

n/a

-

$                   

n/a

3,661,783

$       

1.2x

n/a

19%

BREDS (h)

7,256,058

$       

2,365,171

$       

2,603,472

$       

1.2x

-

4,282,116

$       

1.3x

6,885,588

$       

1.3x

14%

12%

Hedge Fund Solutions

BSCH (Dec 2013 / Jun 2020) (i)

3,301,000

$       

3,016,230

$       

287,881

$          

1.1x

-

25,782

$            

     n/a

313,663

$          

1.2x

n/a

16%

Hedge Fund Solutions

3,301,000

$      

3,016,230

$      

287,881

$          

1.1x

-

25,782

$            

     n/a

313,663

$          

1.2x

n/a

16%

Credit (j)

Mezzanine I (Jul 2007 / Jul 2012)

2,000,000

$       

108,801

$          

731,424

$          

1.7x

-

4,117,474

$       

1.6x

4,848,898

$       

1.6x

n/a

18%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

2,624,554

2,765,478

1.3x

-

1,225,751

1.5x

3,991,229

1.3x

n/a

23%

Rescue Lending I (Sep 2009 / May 2013)

3,253,143

550,910

2,407,564

1.4x

-

3,532,791

1.5x

5,940,355

1.5x

n/a

14%

Rescue Lending II (Jun 2013 / Jun 2018)

5,125,000

3,761,279

1,778,060

1.3x

-

88,846

1.1x

1,866,906

1.2x

n/a

n/m

Total Credit

14,498,143

$    

7,045,544

$      

7,682,526

$      

1.4x

-

8,964,862

$      

1.5x

16,647,388

$    

1.4x

n/a

18%

Blackstone

25

Investment

Records

as

of

June

30,

2015

–

Notes

The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P.

n/m

Not meaningful.

n/a

Not applicable.

(a)

Preliminary.

(b)

Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and

expired or recallable capital, less invested capital. This amount is not reduced by outstanding commitments to investments.

(c)

Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Carried Interest,

divided by invested capital.

(d)

Net Internal Rate of Return (“IRR”) represents the annualized inception to June 30, 2015 IRR on total invested capital based on

realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest.

(e)

Returns for Other Funds and Co-Invest are not meaningful as these funds have limited transaction activity.

(f)

BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated

by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses

and Carried Interest.

(g)

BPP, or Blackstone Property Partners, are the core+ real estate funds which invest with a more modest risk profile and lower

leverage.

(h)

Excludes Capital Trust drawdown funds.

(i)

BSCH is a permanent capital

vehicle focused on acquiring strategic minority positions in alternative asset managers.

(j)

The Total Investments MOIC for Mezzanine I, Mezzanine II, Rescue Lending I and Rescue Lending II Funds, excluding recycled

capital during the investment period, was 2.0x, 1.7x, 1.7x and 1.5x, respectively. Funds presented represent the flagship credit

drawdown funds only. The Total Credit Net IRR is the combined IRR of the four flagship credit drawdown funds presented.

Blackstone

26

Reconciliation of GAAP to Non-GAAP Measures

Notes on page 27.

(Dollars in Thousands)

2Q'14

3Q'14

4Q'14

1Q'15

(m)

2Q'15

YTD'14

YTD'15

Net Income Attributable to The Blackstone Group L.P.

517,016

$    

250,505

$    

551,451

$    

629,448

$    

134,168

$    

782,633

$    

763,616

$    

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

543,819

271,194

586,582

645,230

134,870

843,324

780,100

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

140,061

55,491

95,557

81,796

66,716

184,022

148,512

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

22,486

(23,328)

29,844

7,527

13,780

68,278

21,307

Net Income

1,223,382

$

553,862

$    

1,263,434

$

1,364,001

$

349,534

$    

1,878,257

$

1,713,535

$

Provision for Taxes

83,282

79,108

74,686

99,344

43,251

137,379

142,595

Income Before Provision for Taxes

1,306,664

$

632,970

$    

1,338,120

$

1,463,345

$

392,785

$    

2,015,636

$

1,856,130

$

IPO

and

Acquisition-Related

Charges

(a)

178,568

209,240

291,550

231,862

192,018

355,592

423,880

Amortization

of

Intangibles

(b)

28,310

27,828

26,113

25,899

24,720

57,313

50,619

(Income)

Associated

with

Non-Controlling

Interests

of

Consolidated

Entities

(c)

(162,547)

(32,163)

(125,401)

(89,323)

(80,496)

(252,300)

(169,819)

Economic Income

1,350,995

$

837,875

$    

1,530,382

$

1,631,783

$

529,027

$    

2,176,241

$

2,160,810

$

Taxes

(d)

(25,032)

(79,519)

(83,649)

(9,719)

(20,587)

(36,344)

(30,306)

Economic Net Income

1,325,963

$

758,356

$    

1,446,733

$

1,622,064

$

508,440

$    

2,139,897

$

2,130,504

$

Taxes

(d)

25,032

79,519

83,649

9,719

20,587

36,344

30,306

Performance Fee Adjustment

(e)

(1,398,438)

(891,087)

(1,323,338)

(1,673,736)

(569,664)

(2,177,452)

(2,243,400)

Investment

(Income)

Adjustment

(f)

(175,971)

(80,766)

(98,424)

(189,641)

(10,774)

(292,438)

(200,415)

Net Interest Loss

(g)

11,988

10,636

5,851

8,402

14,411

20,024

22,813

Performance Fee Compensation and Benefits Adjustment

(h)

417,838

360,162

270,249

403,816

215,441

655,092

619,257

Fee Related Earnings

206,412

$    

236,820

$    

384,720

$    

180,624

$    

178,441

$    

381,467

$    

359,065

$    

Net

Realized

Performance

Fees

(i)

402,140

470,560

699,472

932,789

725,433

616,567

1,658,222

Realized

Investment

Income

(j)

202,199

75,832

153,477

107,792

136,497

314,116

244,289

Net Interest (Loss)

(g)

(11,988)

(10,636)

(5,851)

(8,402)

(14,411)

(20,024)

(22,813)

Taxes

and

Related

Payables

Including

Payable

Under

Tax

Receivable

Agreement

(k)

(44,841)

(96,437)

(108,456)

(16,994)

(20,587)

(75,895)

(37,581)

Equity-Based

Compensation

(l)

11,250

9,947

10,692

44,398

28,547

27,587

72,945

Distributable Earnings

765,172

$    

686,086

$    

1,134,054

$

1,240,207

$

1,033,920

$

1,243,818

$

2,274,127

$

Interest Expense

34,082

34,221

34,154

38,853

45,437

64,480

84,290

Taxes

and

Related

Payables

Including

Payable

Under

Tax

Receivable

Agreement

(k)

44,841

96,437

108,456

16,994

20,587

75,895

37,581

Depreciation and Amortization

7,170

7,557

7,200

6,927

6,715

17,543

13,642

Adjusted EBITDA

851,265

$    

824,301

$    

1,283,864

$

1,302,981

$

1,106,659

$

1,401,736

$

2,409,640

$

Blackstone

27

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Notes

Note:

See page 31, Definitions and Distribution Policy.

(a)

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which

include principally equity-based compensation charges associated with Blackstone’s initial public offering and long-term retention

programs outside of annual deferred compensation and other corporate actions.

(b)

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which

are associated with Blackstone’s initial public offering and other corporate actions.

(c)

This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes the amount of (Income) Loss Associated with Non-

Controlling Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated

CLO Entities.

(d)

Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.

(e)

This adjustment removes from EI the total segment amount of Performance Fees.

(f)

This adjustment removes from EI the total segment amount of Investment Income (Loss).

(g)

This adjustment represents Interest Income and Dividend Revenue less Interest Expense.

(h)

This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related

to Performance Fees.

(i)

Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone’s profit

sharing plans related thereto.

(j)

Represents

the

adjustment

for

Blackstone’s

Investment

Income

(Loss)

-

Realized.

(k)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the current tax provision (benefit)

calculated on Income (Loss) Before Provision (Benefit) for Taxes and the Payable Under Tax Receivable Agreement.

(l)

Represents equity-based award expense included in EI.

(m)

Blackstone adopted new GAAP consolidation guidance in 2Q’15 which resulted in the deconsolidation of certain Blackstone Funds

as of January 1, 2015. Adoption did not change Net Income Attributable to The Blackstone Group L.P. in 1Q’15, but did change

Income Before Taxes, Net Income and Net Income Attributable to Non-Controlling and Redeemable Non-Controlling Interests in

Consolidated Entities. Such amounts have been recast here from the amounts originally reported in 1Q’15.

Blackstone

28

Walkdown of Financial Metrics

(Dollars in Thousands, Except per Unit Data)

2Q'15

YTD'15

Results

Per Unit

Results

Per Unit

Base Management Fees

516,492

$         

1,032,889

$     

Advisory Fees

76,998

161,236

Transaction and Other Fees, Net

11,728

48,801

Management Fee Offsets

(18,434)

(36,379)

Other Revenue

3,973

(899)

Compensation

(289,352)

(619,190)

Non-Interest Operating Expenses

(122,964)

(227,393)

Fee Related Earnings

178,441

$         

0.15

$               

359,065

$         

0.31

$               

Net Realized Incentive Fees

25,982

43,425

Net Realized Carried Interest

699,451

1,614,797

Realized Investment Income

136,497

244,289

Net Interest (Loss)

(14,411)

(22,813)

Taxes and Related Payables

(20,587)

(37,581)

Equity-Based Compensation

28,547

72,945

Distributable Earnings

1,033,920

$     

0.88

$               

2,274,127

$     

1.93

$               

Net Unrealized Incentive Fees

20,180

57,839

Net Unrealized Carried Interest

(391,390)

(91,918)

Unrealized Investment (Loss)

(125,723)

(43,874)

Add Back: Related Payables

-

7,275

Less: Equity-Based Compensation

(28,547)

(72,945)

Economic Net Income

508,440

$         

0.43

$               

2,130,504

$     

1.80

$               

See page 29, Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on page 14,

Total Segments. 2Q’15 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 2Q’15 DE per Unit is based on end of period Total Common Units Outstanding; and 2Q’15 ENI per

Unit is based on Weighted-Average ENI Adjusted Units. YTD’15 per Unit represents the sum of the last two quarters. See page 30, Unit Rollforward.

Blackstone

29

Walkdown

of

Financial

Metrics

–

Calculation

of

Certain

Non-GAAP

Financial

Metrics

Unless otherwise noted, all amounts are the respective captions from the Total Segment information.

(a)

Represents equity-based award expense included in Economic Income.

(b)

See page 26, Reconciliation of GAAP to Non-GAAP Measures for this adjustment.

(c)

Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related Payables.

(Dollars in Thousands)

2Q'15

YTD'15

Operating Expenses

168,401

311,683

Less: Interest Expense

(45,437)

(84,290)

Non-Interest Operating Expenses

122,964

$      

227,393

$      

Realized Incentive Fees

47,819

77,489

Less: Realized Incentive Fee Compensation

(21,837)

(34,064)

Net Realized Incentive Fees

25,982

$         

43,425

$         

Realized Carried Interest

937,483

2,145,077

Less: Realized Carried Interest Compensation

(238,032)

(530,280)

Net Realized Carried Interest

699,451

$      

1,614,797

$   

Interest Income and Dividend Revenue

31,026

61,477

Less: Interest Expense

(45,437)

(84,290)

Net Interest (Loss)

(14,411)

$       

(22,813)

$       

Equity-Based Compensation

(a)

28,547

$         

72,945

$         

Taxes and Related Payables

(b)

(20,587)

$       

(37,581)

$       

Unrealized Incentive Fees

26,311

88,931

Less: Unrealized Incentive Fee Compensation

(6,131)

(31,092)

Net Unrealized Incentive Fees

20,180

$         

57,839

$         

Unrealized Carried Interest

(441,949)

(68,097)

Less: Unrealized Carried Interest Compensation

50,559

(23,821)

Net Unrealized Carried Interest

(391,390)

$     

(91,918)

$       

Related Payables

(c)

-

$               

7,275

$           

Blackstone

30

Unit Rollforward

Common Unitholders receive tax benefits from deductions taken by Blackstone’s corporate tax paying subsidiaries and bear responsibility for the deduction from Distributable Earnings

of the Payable Under Tax Receivable Agreement and certain other tax-related payables. Distributable Earnings Units Outstanding excludes units which are not entitled to distributions.

2Q'14

3Q'14

4Q'14

1Q'15

2Q'15

606,690,740

611,684,213

615,492,620

625,276,969

631,881,205

Adjustments:

3,207,089

3,294,657

6,843,140

5,955,072

2,311,444

609,897,829

614,978,870

622,335,760

631,232,041

634,192,649

Adjustments:

Weighted-Average Blackstone Holdings Partnership Units

544,158,132

539,856,777

536,973,966

548,837,150

555,641,388

Weighted-Average Economic Net Income Adjusted Units

1,154,055,961

1,154,835,647

1,159,309,726

1,180,069,191

1,189,834,037

Economic Net Income Adjusted Units, End of Period

1,154,840,023

1,155,075,985

1,159,954,181

1,192,529,251

1,190,864,027

Total Common Units Outstanding

603,270,771

607,590,602

611,480,457

625,985,058

630,414,455

Adjustments:

Blackstone Holdings Partnership Units

538,074,958

538,760,225

536,543,970

550,783,119

545,861,003

Distributable Earnings Units Outstanding

1,141,345,729

1,146,350,827

1,148,024,427

1,176,768,177

1,176,275,458

Total GAAP Weighted-Average Common Units Outstanding - Basic

Weighted-Average Unvested Deferred Restricted Common Units 

Total GAAP Weighted-Average Common Units Outstanding - Diluted

Blackstone

31

Definitions and Distribution Policy

Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with 

generally accepted accounting principles in the United States of America (“non-GAAP”) in this presentation:

Blackstone uses Economic Income, or “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 initial public offering (“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, or “ENI”, represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated 

on Income (Loss) Before Provision for Taxes.

Blackstone uses Fee Related Earnings, or “FRE”, as a key measure to highlight earnings from operations excluding:  (a) the income related to 

performance fees and related carry plan costs and (b) income earned from Blackstone’s investments in the Blackstone Funds. Blackstone 

uses FRE as a measure to assess whether recurring revenue from its businesses is sufficient to adequately cover all of its operating expenses and 

generate profits. FRE equals contractual fee revenues less (a) compensation expenses (which includes amortization of non-IPO and non-acquisition-

related equity-based awards, but excludes amortization of IPO and acquisition-related equity-based awards, carried interest and incentive fee

compensation), and (b) other operating expenses.

Distributable Earnings, or “DE”, which is derived from Blackstone’s segment reported results, is a supplemental measure to assess performance and 

amounts available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone 

Holdings partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, 

which is a component of ENI, is the sum across all segments of:  (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other

Revenue, (d) Realized Performance Fees, and (e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based

awards, (b) Realized Performance Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and Related Payables Including the Payable Under Tax

Receivable Agreement. DE is reconciled to Blackstone’s Consolidated Statement of Operations. 

Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, as a measure of segment 

performance and an indicator of its ability to cover recurring operating expenses. Adjusted EBITDA equals DE before segment interest expense, 

segment depreciation and amortization, and the taxes and related payables including the Payable Under Tax Receivable Agreement.

Distribution Policy. Blackstone’s intention is to distribute quarterly approximately 85% of The Blackstone Group L.P.’s share of Distributable Earnings, 

subject to adjustment by amounts determined by Blackstone’s general partner to be necessary or appropriate to provide for the conduct of its business, 

to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide 

for future cash requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter. The amount to 

be distributed could also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration and payment of 

any distributions are at the sole discretion of Blackstone’s general partner and may change at any time, including, without limitation, to eliminate such 

distributions entirely.

Blackstone

32

Forward-Looking Statements

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things,

Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as

“outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,”

“intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking

statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual

outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but

are

not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended

December 31, 2014, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange

Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and

should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings. Blackstone

undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future

developments or otherwise.

This presentation does not constitute an offer of any Blackstone Fund.