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

Blackstone’s Third Quarter 2015 Earnings

October 15, 2015

Exhibit 99.2

Blackstone

1

Blackstone’s Third Quarter 2015 Highlights

Economic

Net

Income

(“ENI”)

was

negative

$416

million,

or

$(0.35)/unit,

in

the

third

quarter,

driven

by

declines

in

the

unrealized

value

of

public

holdings,

despite

strong

underlying

portfolio

fundamentals

across

the

funds.

•

ENI

was

$1.7

billion

($1.45/unit)

year-to-date

on

$3.7

billion

of

Total

Revenues.

Distributable

Earnings

(“DE”)

was

$692

million

($0.58/unit)

in

the

third

quarter,

on

$470

million

of

Realized

Performance

Fees.

•

DE

was

$3.0

billion

($2.51/unit)

year-to-date,

up

54%

from

$1.9

billion

in

the

same

period

last

year,

on

$2.7

billion

of

Realized

Performance

Fees,

up

54%

year-over-year.

Fee

Related

Earnings

(“FRE”)

was

$266

million

in

the

third

quarter,

up

12%

from

$237

million

in

the

same

period

last

year.

GAAP

Net

Income

was

negative

$255

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

$333.9

billion

through

a

combination

of

consistently

strong

fundraising

and

organic

expansion.

•

Gross

inflows

were

$16.1

billion

in

the

third

quarter,

bringing

last

twelve

months

(“LTM”)

inflows

to

a

record

$96.9

billion.

•

Total

AUM

increased

17%

year-over-year,

despite

returning

$59.7

billion

of

capital

to

investors

over

the

LTM

as

asset

growth

and

above-market

appreciation

outpaced

increased

realizations.

Significant

capital

deployment

of

$6.5

billion

in

the

third

quarter

and

$16.6

billion

year-to-date

was

achieved

by

leveraging

Blackstone’s

diverse

platform

to

find

opportunities

globally.

Blackstone

declared

a

third

quarter

distribution

of

$0.49

per

common

unit

payable

on

November

2,

2015;

year-to-date

distributions

were

a

record

$2.12

per

common

unit,

up

58%

over

the

same

period

last

year.

Blackstone

2

Blackstone’s Third Quarter 2015 Earnings

“n/m” = Not Meaningful.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

658,465

$         

707,826

$         

7%

1,889,897

$      

1,913,474

$      

1%

Performance Fees

891,087

(639,349)

n/m

3,068,539

1,604,051

(48)%

Investment Income (Loss)

80,766

(136,131)

n/m

373,204

64,284

(83)%

Interest Income and Dividend Revenue

23,585

35,459

50%

68,041

96,936

42%

Total Revenues

1,653,903

(32,195)

n/m

5,399,681

3,678,745

(32)%

Total Expenses

816,028

356,661

(56)%

2,385,565

1,906,791

(20)%

Taxes

79,519

27,070

(66)%

115,863

57,376

(50)%

Economic Net Income (Loss) (“ENI”)

758,356

$         

(415,926)

$       

n/m

2,898,253

$     

1,714,578

$     

(41)%

ENI per Unit

0.66

$               

(0.35)

$              

n/m

2.51

$               

1.45

$               

(42)%

GAAP Net Income (Loss)

250,505

$         

(254,697)

$        

n/m

1,033,138

$      

508,919

$         

(51)%

Fee Related Earnings (“FRE”)

236,820

$         

265,667

$         

12%

618,287

$         

624,732

$         

1%

Distributable Earnings (“DE”)

686,086

$         

691,534

$         

1%

1,929,904

$     

2,965,661

$     

54%

DE per Common Unit

0.54

$               

0.58

$               

7%

1.59

$               

2.51

$               

58%

Total AUM

284,414,936

$ 

333,925,521

$ 

17%

284,414,936

$ 

333,925,521

$ 

17%

Fee-Earning AUM

214,819,600

$ 

240,939,356

$ 

12%

214,819,600

$ 

240,939,356

$ 

12%

Blackstone

3

Private Equity

9.5%

3Q’15 LTM increase in fund carrying value

$215 million

3Q’15 Realized Performance Fees

$91.5 billion

Total AUM up 31% YoY

Carrying

value

decline

of

2.3%

in

the

quarter

was

driven

principally

by

a

decline

in

public

investment

values

despite

strong

underlying

revenue

and

EBITDA

growth

trends

across

the

portfolio.

•

Overall

appreciation

of

7.7%

year-to-date

and

9.5%

LTM

significantly

outperformed

broader

market

indices.

Realizations

remained

strong

with

$2.7

billion

realized

during

the

quarter

and

$14.2

billion

realized

LTM

on

public

and

strategic

exits

in

corporate

private

equity

funds.

Completed

the

private

sales

of

Center

Parcs,

CMS

Info

Systems

and

Agile

Electric

and

public

share

sales

of

Summit

Materials,

Michaels

Stores

and

Scout24.

Announced

the

strategic

sales

of

AVINTIV,

SunGard

Data

Systems

and

Vivint

Solar,

which

are

expected

to

close

later

this

year.

Deployed

$1.7

billion

and

committed

an

additional

$1.2

billion

of

capital

during

the

quarter

across

several

new

investments

and

accretive

add-on

acquisitions

to

the

portfolio.

Raised

$3.7

billion

across

various

tactical

opportunities

and

corporate

private

equity

mandates;

launched

fundraising

for

the

seventh

secondary

fund.

% Change

% Change

(Dollars in Thousands)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

153,545

$       

126,019

$       

(18)%

421,265

$      

351,261

$      

(17)%

Performance Fees

221,368

(594,831)

n/m

1,222,842

595,971

(51)%

Investment Income (Loss)

7,667

(63,772)

n/m

151,643

40,488

(73)%

Interest Income and Dividend Revenue

5,346

8,119

52%

15,240

23,403

54%

Total Revenues

387,926

(524,465)

n/m

1,810,990

1,011,123

(44)%

Compensation

79,007

69,522

(12)%

225,352

206,690

(8)%

Performance Fee Compensation

124,378

(125,145)

n/m

361,915

173,385

(52)%

Other Operating Expenses

34,109

43,693

28%

106,308

144,906

36%

Total Expenses

237,494

(11,930)

n/m

693,575

524,981

(24)%

Economic Income (Loss)

150,432

$      

(512,535)

$     

n/m

1,117,415

$   

486,142

$      

(56)%

Total AUM

69,890,367

$ 

91,490,669

$ 

31%

69,890,367

$ 

91,490,669

$ 

31%

Fee-Earning AUM

43,817,741

$ 

50,560,404

$ 

15%

43,817,741

$ 

50,560,404

$ 

15%

Blackstone

4

Real Estate

14.2%

3Q’15 LTM increase in fund carrying value

$173 million

3Q’15 Realized Performance Fees

$93.2 billion

Total AUM up 16% YoY

Opportunistic

Real

Estate

funds’

carrying

value

was

down

0.1%

during

the

quarter

as

strong

operating

fundamentals

across

the

portfolio

were

offset

by

declines

in

public

investment

values.

•

Appreciation

of

8.6%

year-to-date

and

14.2%

LTM

significantly

outpaced

broader

market

indices.

Unique

scale

and

reach

of

global

platform

resulted

in

continued

active

investment

pace,

with

$4.3

billion

invested

in

the

third

quarter

and

an

additional

$4.5

billion

committed

as

of

quarter

end.

Active

pace

of

realizations

with

$3.0

billion

in

the

quarter

driven

by

private

sales

including

Center

Parcs

and

the

NY

Times

Office

building,

bringing

LTM

realizations

to

$23.5

billion.

Total

AUM

was

up

16%

year-over-year

to

$93.2

billion

as

a

result

of

record

level

of

fundraising

activity

and

strong

market

appreciation,

while

Fee-Earning

AUM

was

up

24%

year-over-year

to

$64.9

billion.

•

Robust

quarterly

fundraising

of

$3.8

billion,

including

$2.5

billion

for

the

Core+

real

estate

strategy,

bringing

Total

AUM

to

$8.5

billion

less

than

two

years

after

launching

the

business.

% Change

% Change

(Dollars in Thousands)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

185,400

$      

186,015

$       

0%

512,856

$      

502,638

$      

(2)%

Performance Fees

537,197

46,860

(91)%

1,414,677

864,412

(39)%

Investment Income (Loss)

63,665

(55,561)

n/m

172,628

31,034

(82)%

Interest Income and Dividend Revenue

7,135

11,057

55%

21,254

31,313

47%

Total Revenues

793,397

188,371

(76)%

2,121,415

1,429,397

(33)%

Compensation

90,586

99,255

10%

256,401

263,573

3%

Performance Fee Compensation

173,445

36,581

(79)%

455,708

254,434

(44)%

Other Operating Expenses

36,138

42,050

16%

105,787

125,539

19%

Total Expenses

300,169

177,886

(41)%

817,896

643,546

(21)%

Economic Income

493,228

$      

10,485

$         

(98)%

1,303,519

$   

785,851

$      

(40)%

Total AUM

80,188,858

$ 

93,187,556

$ 

16%

80,188,858

$ 

93,187,556

$ 

16%

Fee-Earning AUM

52,308,175

$ 

64,858,622

$ 

24%

52,308,175

$ 

64,858,622

$ 

24%

Blackstone

5

Hedge Fund Solutions

3.6%

3Q’15 LTM Composite Gross Return

$35.8 billion

Incentive Fee Eligible AUM at 3Q’15

$2.2 billion

3Q’15 Fee-Earning Gross Inflows

The

composite

gross

return

was

down

0.9%

for

the

quarter

demonstrating

BAAM’s

ability

to

provide

downside

protection

in

difficult

global

markets.

•

Returns

were

up

2.8%

year-to-date

and

3.6%

LTM,

outperforming

global

markets

with

significantly

lower

volatility.

Fee-Earning

gross

inflows

of

$2.2

billion

during

the

quarter

and

$9.5

billion

LTM

were

driven

by

investments

in

customized

and

commingled

strategies

and

individual

investor

solutions.

•

October

1

subscriptions

of

$557

million

are

not

yet

included

in

Fee-Earning

AUM.

Total

AUM

reached

$68.4

billion

driven

by

customized

strategies

growth

and

continued

platform

diversification.

•

Total

AUM

for

BAAM’s

individual

investor

solutions

platform

reached

$5.8

billion,

up

from

$2.7

billion

as

of

the

third

quarter

of

2014.

•

BAAM’s

third

seeding

vehicle

held

its

first

close

with

$655

million

in

commitments.

•

BAAM

held

its

final

closing

for

its

first

permanent

capital

vehicle

acquiring

general

partner

interests

in

hedge

funds,

bringing

total

commitments

to

$3.3

billion.

The composite gross return is based on the BAAM Principal Solutions (“BPS”) Composite which 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 (1.0)% for 3Q’15, 2.2% for YTD’15 and 2.7% for LTM’15.

% Change

% Change

(Dollars in Thousands)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

121,286

$      

133,238

$       

10%

354,830

$      

392,080

$      

10%

Performance Fees

32,156

(32,322)

n/m

128,615

66,405

(48)%

Investment Income (Loss)

1,525

(6,879)

n/m

26,227

(12,496)

n/m

Interest Income and Dividend Revenue

2,724

4,136

52%

7,725

12,055

56%

Total Revenues

157,691

98,173

(38)%

517,397

458,044

(11)%

Compensation

41,940

44,408

6%

125,852

146,353

16%

Performance Fee Compensation

11,090

(10,488)

n/m

45,292

25,185

(44)%

Other Operating Expenses

20,480

24,147

18%

65,061

65,852

1%

Total Expenses

73,510

58,067

(21)%

236,205

237,390

1%

Economic Income

84,181

$         

40,106

$         

(52)%

281,192

$      

220,654

$      

(22)%

Total AUM

64,183,863

$ 

68,405,948

$ 

7%

64,183,863

$ 

68,405,948

$ 

7%

Fee-Earning AUM

62,037,082

$ 

65,182,338

$ 

5%

62,037,082

$ 

65,182,338

$ 

5%

Blackstone

6

14%

24%

Credit

$80.8 billion

3Q’15 Total AUM

Investment Performance

Gross Returns

Returns

in

all

three

alternative

credit

strategies

were

impacted

by

declines

in

public

markets.

Total

AUM

growth

of

15%

over

the

past

year

was

driven

by

strong

fundraising

for

new

product

launches,

including

$7.7

billion

for

the

new

energy

focused

funds,

credit

alpha

strategies

and

European

senior

debt

strategy.

Fee

Revenues

of

$116

million

in

the

quarter,

up

3%

year-over-year

reflects

a

stable

Fee-Earning

AUM

base

with

a

predictable

Management

Fee

Revenue

stream.

Launched

10

CLOs

over

the

past

year

(six

U.S.

and

four

European)

raising

$5.5

billion

of

capital

including

a

$618

million

U.S.

CLO

during

the

third

quarter.

Deployed

$432

million

and

committed

an

additional

$1.5

billion

of

capital

during

the

quarter

across

the

drawdown

funds.

Robust

realizations

of

$1.1

billion

across

drawdown

funds

in

the

quarter.

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

(3.2)%

for

3Q’15

and

4.4%

for

YTD’15,

Rescue

Lending

Strategies’

net

returns were (5.7)% for 3Q’15 and (1.0)% for YTD’15 and Hedge Fund Strategies’ net returns were (2.4)% for 3Q’15 and 0.1% 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)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

113,240

$      

116,489

$       

3%

330,472

$      

360,957

$      

9%

Performance Fees

100,366

(59,056)

n/m

302,405

77,263

(74)%

Investment Income (Loss)

7,932

(8,442)

n/m

20,826

6,165

(70)%

Interest Income and Dividend Revenue

5,968

6,053

1%

16,721

17,642

6%

Total Revenues

227,506

55,044

(76)%

670,424

462,027

(31)%

Compensation

54,877

51,324

(6)%

156,939

148,325

(5)%

Performance Fee Compensation

51,249

(31,427)

n/m

152,339

35,774

(77)%

Other Operating Expenses

20,860

24,898

19%

75,858

70,273

(7)%

Total Expenses

126,986

44,795

(65)%

385,136

254,372

(34)%

Economic Income

100,520

$      

10,249

$         

(90)%

285,288

$      

207,655

$      

(27)%

Total AUM

70,151,848

$ 

80,841,348

$ 

15%

70,151,848

$ 

80,841,348

$ 

15%

Fee-Earning AUM

56,656,602

$ 

60,337,992

$ 

6%

56,656,602

$ 

60,337,992

$ 

6%

3Q'15

YTD'15

Mezzanine

   Strategies

(3.2)%

6.1%

Rescue Lending

   Strategies

(6.3)%

(0.7)%

Hedge Fund

   Strategies

(2.2)%

1.4%

14%

9%

39%

Hedge Fund Strategies

Rescue Lending

Performing Credit

Blackstone

7

Financial Advisory

The

spin-off

of

Blackstone’s

Advisory

businesses

was

completed

on

October

1,

2015.

The

new

company,

PJT

Partners

Inc.,

is

now

formally

separated

from

Blackstone

and

trades

on

the

New

York

Stock

Exchange

under

the

ticker

PJT.

Fee

Revenues

rose

72%

in

the

third

quarter

compared

to

the

prior

year

primarily

due

to

increased

deal

size

of

closed

Advisory

transactions.

% Change

% Change

(Dollars in Thousands)

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Fee Revenues

84,994

$         

146,065

$      

72%

270,474

$      

306,538

$      

13%

Investment Income (Loss)

(23)

(1,477)

n/m

1,880

(907)

n/m

Interest Income and Dividend Revenue

2,412

6,094

153%

7,101

12,523

76%

Total Revenues

87,383

150,682

72%

279,455

318,154

14%

Compensation

58,016

65,066

12%

189,442

183,824

(3)%

Other Operating Expenses

19,853

22,777

15%

63,311

62,678

(1)%

Total Expenses

77,869

87,843

13%

252,753

246,502

(2)%

Economic Income

9,514

$           

62,839

$         

560%

26,702

$         

71,652

$         

168%

Total

expenses

(which

do

not

include

expenses

related

to

the

spin-off

transaction)

increased

13%

in

the

third

quarter

compared

to

the

prior

year

primarily

due

to

an

increase

in

compensation

expenses

resulting

from

increased

Fee

Revenues.

Blackstone

8

$49.5

$56.7

$60.3

$50.8

$62.0

$65.2

$44.7

$52.3

$64.9

$43.6

$43.8

$50.6

3Q'13

3Q'14

3Q'15

$63.3

$70.2

$80.8

$53.2

$64.2

$68.4

$69.0

$80.2

$93.2

$62.6

$69.9

$91.5

3Q'13

3Q'14

3Q'15

Total AUM by Segment

(Dollars in Billions)

$284.4

$333.9

$248.1

Fee-Earning AUM by Segment

(Dollars in Billions)

$214.8

$240.9

$188.6

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Record Fee-Earning AUM of $240.9 billion was up 12% year-over-year as $66.0 billion of gross inflows

significantly outpaced $37.6 billion of realizations and outflows.

Total AUM increased 17% year-over-year to $333.9 billion driven by $96.9 billion from gross inflows and

$12.3

billion from strong fund appreciation.

•

Each segment had significant growth despite $59.7 billion of capital returned to investors over the LTM period.

Assets Under Management

Blackstone

9

$37.3

$27.0

$4.1

$16.6

Additional Capital Detail

Record

undrawn

capital

(“Total

Dry

Powder”)

of

$84.9

billion,

up

101%

year-over-year,

driven

by

fundraises

for

the

latest

global

private

equity

and

real

estate

funds.

Performance

Fee

Eligible

AUM

reached

$247.1

billion

at

quarter

end,

up

25%

year-over-year,

despite

significant

realizations

in

the

Real

Estate

and

Private

Equity

segments.

•

Consistently

strong

fundraising

drove

a

116%

year-over-year

increase

in

Performance

Fee

Eligible

assets

not

yet

invested

to

$85.1

billion.

Private Equity

Real Estate

Hedge Fund Solutions

Credit

$85 billion 3Q’15

Total Dry Powder

$48 billion Not Currently

Earning Management Fees

$16.0

$7.6

$23.0

Credit

Hedge Fund

Solutions

Real Estate

Private Equity

$47.7

$104.0

$148.8

$138.6

$22.5

$9.8

$23.4

$38.4

$39.4

$85.1

3Q'13

3Q'14

3Q'15

Uninvested

Not Currently

Earning Fees

Currently

Earning Fees

$247 billion Performance

Fee Eligible AUM

$197.9

$247.1

$164.9

Blackstone

10

$2.44

$3.78

$3.03

$2.16

$2.38

$1.74

$1.92

$2.56

$3.51

3Q'13

3Q'14

3Q'15

At

September

30,

2015,

Blackstone

had

$4.2

billion

in

total

cash,

corporate

treasury

and

liquid

investments

and

$9.8

billion

of

total

net

value,

or

$8.28

per

DE

unit,

up

13%

compounded

annually

from

$6.51

at

the

same

period

in

2013.

As

of

the

end

of

the

third

quarter,

Blackstone

had

no

net

debt,

over

$9.8

billion

of

total

net

value

on

the

balance

sheet

and

maintained

its

A+/A+

ratings.

Balance Sheet Highlights

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 $796 million, $1.0 billion, and $259 million, respectively, as of September 30, 2015,

$965

million,

$1.4

billion,

and

$402

million,

respectively,

as

of

September

30,

2014

and

$922

million,

$1.3

billion,

and

$257

million,

respectively,

as

of

September

30,

2013.

Cash

and

Investments

per

unit amounts are calculated using period end DE Units Outstanding (see page 30, Unit Rollforward).

(Dollars in Millions)

3Q’15

Cash and Cash Equivalents

$

1,380

Treasury Cash

Management Strategies

2,602

Liquid Investments

172

Illiquid

Investments

2,066

Net Accrued Performance

Fees

3,585

Total Net Value

$

9,805

Outstanding

Bonds (at par)

$

2,822

A+/A+

rated by S&P and Fitch

$1.1 billion

undrawn credit revolver with

May 2019 maturity

$4.2 billion

total cash, corporate treasury

and liquid investments

Cash and Investments

Net

Performance

Fees

Total Cash

and

Liquids

Illiquids

$8.28

$8.72

$6.51

Blackstone

11

$188

$197

$106

$157

$267

$861

$1,287

$236

$327

$1,242

3Q'13 LTM

3Q'14 LTM

3Q'15 LTM

$1,890

$2,730

$2,316

$589

$1,294

$1,075

3Q'13

3Q'14

3Q'15

Net

Accrued

Performance

Fees

were

$3.6

billion

($3.03/unit)

despite

high

Net

Realized

Performance

Fees

of

$2.7

billion

over

the

LTM

period.

•

Realized

63%

of

the

$4.3

billion

Net

Accrued

Performance

Fees

balance

from

one

year

prior.

Net

Realized

Performance

Fees

grew

at

a

88%

compound

annual

growth

rate

since

the

third

quarter

of

2013,

primarily

driven

by

increased

realizations

in

Private

Equity

and

Real

Estate.

Performance Fees

Net Realized Performance Fees

(Dollars in Millions)

$1,542

$2,715

$768

Net Accrued Performance Fees

(Dollars in Millions)

$4,334

$3,585

$2,769

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$3.6 billion

Net Accrued Performance Fees

58%

Net Accrued

Performance Fees

Related to Publics/Pending Exits

$2.7 billion

3Q’15 LTM Net Realized

Performance Fees

Blackstone

12

GAAP Statement of Operations

% Change

% Change

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

3Q'14

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

Revenues

Management and Advisory Fees, Net

640,949

$        

703,596

$        

10%

1,833,632

$     

1,894,496

$     

3%

Performance Fees

Realized Carried Interest

638,676

435,189

(32)%

1,613,958

2,580,266

60%

Realized Incentive Fees

35,445

33,455

(6)%

118,743

110,775

(7)%

Unrealized Carried Interest

222,105

(1,055,920)

n/m

1,213,181

(1,124,010)

n/m

Unrealized Incentive Fees

(6,163)

(50,832)

725%

112,709

36,274

(68)%

Total Performance Fees

890,063

(638,108)

n/m

3,058,591

1,603,305

(48)%

Investment Income (Loss)

Realized

91,142

99,952

10%

459,878

445,705

(3)%

Unrealized

38,445

(179,298)

n/m

62,754

(262,024)

n/m

Total Investment Income (Loss)

129,587

(79,346)

n/m

522,632

183,681

(65)%

Interest and Dividend Revenue

18,107

26,244

45%

47,516

70,129

48%

Other

720

(813)

n/m

1,583

(2,478)

n/m

Total Revenues

1,679,426

11,573

(99)%

5,463,954

3,749,133

(31)%

Expenses

Compensation and Benefits

Compensation

525,093

393,655

(25)%

1,511,085

1,426,233

(6)%

Performance Fee Compensation

Realized Carried Interest

186,003

97,798

(47)%

595,702

628,079

5%

Realized Incentive Fees

19,029

15,062

(21)%

61,173

49,126

(20)%

Unrealized Carried Interest

164,132

(228,697)

n/m

319,158

(204,876)

n/m

Unrealized Incentive Fees

(9,002)

(14,641)

63%

39,221

16,450

(58)%

Total Compensation and Benefits

885,255

263,177

(70)%

2,526,339

1,915,012

(24)%

General, Administrative and Other

128,015

158,664

24%

400,061

436,496

9%

Interest Expense

31,615

36,860

17%

86,129

105,644

23%

Fund Expenses

10,253

18,296

78%

20,241

76,845

280%

Total Expenses

1,055,138

476,997

(55)%

3,032,770

2,533,997

(16)%

Other Income (Loss)

Net Gains (Losses) from Fund Investment Activities

8,682

(16,867)

n/m

217,422

158,703

(27)%

Income Before Provision for Taxes

632,970

$        

(482,291)

$       

n/m

2,648,606

$     

1,373,839

$     

(48)%

Provision for Taxes

79,108

1,573

(98)%

216,487

144,168

(33)%

Net Income (Loss)

553,862

$        

(483,864)

$       

n/m

2,432,119

$     

1,229,671

$     

(49)%

Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated

(23,328)

(12,520)

(46)%

44,950

8,787

(80)%

55,491

30,671

(45)%

239,513

179,183

(25)%

Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings

271,194

(247,318)

n/m

1,114,518

532,782

(52)%

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

250,505

$        

(254,697)

$       

n/m

1,033,138

$     

508,919

$        

(51)%

Net Income (Loss) per Common Unit, Basic

0.41

$               

(0.40)

$             

n/m

1.70

$               

0.81

$               

(52)%

Net Income (Loss) per Common Unit, Diluted

0.41

$               

(0.40)

$             

n/m

1.69

$               

0.80

$               

(53)%

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

Appendix

*

*

*

*

*

*

*

*

Blackstone

14

Total Segments

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Management and Advisory Fees, Net

Base Management Fees

505,493

$           

508,588

$           

516,397

$           

516,492

$           

564,287

$           

1,478,941

$        

1,597,176

$        

Advisory Fees

84,131

151,837

84,238

76,998

146,153

269,008

307,389

Transaction and Other Fees, Net

90,885

46,446

37,073

11,728

32,403

199,991

81,204

Management Fee Offsets

(22,763)

(27,146)

(17,945)

(18,434)

(34,176)

(59,625)

(70,555)

Total Management and Advisory Fees, Net

657,746

679,725

619,763

586,784

708,667

1,888,315

1,915,214

Performance Fees

Realized Carried Interest

638,752

836,562

1,207,594

937,483

435,189

1,614,034

2,580,266

Realized Incentive Fees

36,840

131,777

29,670

47,819

34,785

129,968

112,274

Unrealized Carried Interest

222,026

495,935

373,852

(441,949)

(1,055,977)

1,213,026

(1,124,074)

Unrealized Incentive Fees

(6,531)

(140,936)

62,620

26,311

(53,346)

111,511

35,585

Total Performance Fees

891,087

1,323,338

1,673,736

569,664

(639,349)

3,068,539

1,604,051

Investment Income (Loss)

Realized

75,832

153,477

107,792

136,497

87,526

389,948

331,815

Unrealized

4,934

(55,053)

81,849

(125,723)

(223,657)

(16,744)

(267,531)

Total Investment Income (Loss)

80,766

98,424

189,641

10,774

(136,131)

373,204

64,284

Interest Income and Dividend Revenue

23,585

28,303

30,451

31,026

35,459

68,041

96,936

Other

719

7,823

(4,872)

3,973

(841)

1,582

(1,740)

Total Revenues

1,653,903

2,137,613

2,508,719

1,202,221

(32,195)

5,399,681

3,678,745

Expenses

Compensation

324,426

199,525

329,838

289,352

329,575

953,986

948,765

Performance Fee Compensation

Realized Carried Interest

186,003

219,941

292,248

238,032

97,799

595,702

628,079

Realized Incentive Fees

19,029

48,926

12,227

21,837

15,061

61,173

49,125

Unrealized Carried Interest

164,132

59,879

74,380

(50,559)

(228,697)

319,158

(204,876)

Unrealized Incentive Fees

(9,002)

(58,497)

24,961

6,131

(14,642)

39,221

16,450

Total Compensation and Benefits

684,588

469,774

733,654

504,793

199,096

1,969,240

1,437,543

Other Operating Expenses

131,440

137,457

143,282

168,401

157,565

416,325

469,248

Total Expenses

816,028

607,231

876,936

673,194

356,661

2,385,565

1,906,791

Economic Income (Loss)

837,875

$           

1,530,382

$        

1,631,783

$        

529,027

$           

(388,856)

$          

3,014,116

$        

1,771,954

$        

Economic Net Income (Loss)

758,356

$           

1,446,733

$        

1,622,064

$        

508,440

$           

(415,926)

$          

2,898,253

$        

1,714,578

$        

Fee Related Earnings

236,820

$           

384,720

$           

180,624

$           

178,441

$           

265,667

$           

618,287

$           

624,732

$           

Distributable Earnings

686,086

$           

1,134,054

$        

1,240,207

$        

1,033,920

$        

691,534

$           

1,929,904

$        

2,965,661

$        

Total Assets Under Management

284,414,936

$    

290,381,069

$    

310,451,289

$    

332,723,546

$    

333,925,521

$    

284,414,936

$    

333,925,521

$    

Fee-Earning Assets Under Management

214,819,600

$    

216,691,799

$    

223,511,700

$    

239,342,214

$    

240,939,356

$    

214,819,600

$    

240,939,356

$    

Weighted Average Fee-Earning AUM

213,525,423

$    

215,196,253

$    

218,241,987

$    

237,576,488

$    

239,786,680

$    

210,597,134

$    

238,291,612

$    

LP Capital Invested

6,664,365

$        

7,810,098

$        

4,765,536

$        

4,814,362

$        

6,145,446

$        

16,559,403

$      

15,725,344

$      

Total Capital Invested

7,619,737

$        

8,090,350

$        

5,052,370

$        

5,048,058

$        

6,507,371

$        

18,285,610

$      

16,607,799

$      

Blackstone

15

Private Equity

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

108,236

$       

105,817

$       

108,383

$       

121,918

$       

128,452

$       

310,024

$       

358,753

$       

Transaction and Other Fees, Net

48,996

15,183

20,359

(12,131)

9,358

119,459

17,586

Management Fee Offsets

(5,837)

(7,350)

(4,949)

(9,028)

(12,262)

(11,796)

(26,239)

Total Management Fees, Net

151,395

113,650

123,793

100,759

125,548

417,687

350,100

Performance Fees

Realized Carried Interest

124,913

297,290

382,978

546,575

214,532

457,112

1,144,085

Unrealized Carried Interest

96,455

457,098

566,822

(305,573)

(809,363)

765,730

(548,114)

Total Performance Fees

221,368

754,388

949,800

241,002

(594,831)

1,222,842

595,971

Investment Income (Loss)

Realized

20,421

46,951

44,816

50,258

46,917

155,768

141,991

Unrealized

(12,754)

(19,789)

31,487

(22,301)

(110,689)

(4,125)

(101,503)

Total Investment Income (Loss)

7,667

27,162

76,303

27,957

(63,772)

151,643

40,488

Interest Income and Dividend Revenue

5,346

6,743

7,617

7,667

8,119

15,240

23,403

Other

2,150

2,991

(1,825)

2,515

471

3,578

1,161

Total Revenues

387,926

904,934

1,155,688

379,900

(524,465)

1,810,990

1,011,123

Expenses

Compensation

79,007

51,095

70,089

67,079

69,522

225,352

206,690

Performance Fee Compensation

Realized Carried Interest

30,944

36,958

39,482

106,502

16,303

229,435

162,287

Unrealized Carried Interest

93,434

77,966

178,120

(25,574)

(141,448)

132,480

11,098

Total Compensation and Benefits

203,385

166,019

287,691

148,007

(55,623)

587,267

380,075

Other Operating Expenses

34,109

36,590

38,755

62,458

43,693

106,308

144,906

Total Expenses

237,494

202,609

326,446

210,465

(11,930)

693,575

524,981

Economic Income (Loss)

150,432

$       

702,325

$       

829,242

$       

169,435

$       

(512,535)

$     

1,117,415

$   

486,142

$       

Total Assets Under Management

69,890,367

$ 

73,073,252

$ 

76,327,189

$ 

92,026,337

$ 

91,490,669

$ 

69,890,367

$ 

91,490,669

$ 

Fee-Earning Assets Under Management

43,817,741

$ 

43,890,167

$ 

49,342,211

$ 

49,537,189

$ 

50,560,404

$ 

43,817,741

$ 

50,560,404

$ 

Weighted Average Fee-Earning AUM

43,838,483

$ 

42,899,791

$ 

45,051,839

$ 

49,925,744

$ 

50,268,174

$ 

44,328,213

$ 

50,307,467

$ 

LP Capital Invested

2,277,861

$    

3,459,063

$    

2,374,599

$    

1,800,854

$    

1,535,702

$    

6,164,210

$    

5,711,155

$    

Total Capital Invested

3,172,660

$    

3,593,887

$    

2,517,769

$    

1,949,748

$    

1,677,876

$    

7,603,111

$    

6,145,393

$    

Blackstone

16

Real Estate

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

155,089

$       

156,208

$       

152,348

$       

140,743

$       

175,710

$       

472,294

$       

468,801

$       

Transaction and Other Fees, Net

38,312

26,220

15,216

21,510

21,390

65,390

58,116

Management Fee Offsets

(8,977)

(8,540)

(4,866)

(5,428)

(10,147)

(25,903)

(20,441)

Total Management Fees, Net

184,424

173,888

162,698

156,825

186,953

511,781

506,476

Performance Fees

Realized Carried Interest

349,237

526,041

811,249

363,983

169,051

961,721

1,344,283

Realized Incentive Fees

1,159

4,296

723

1,220

3,879

7,203

5,822

Unrealized Carried Interest

187,175

77,173

(181,019)

(188,608)

(128,854)

446,873

(498,481)

Unrealized Incentive Fees

(374)

(4,401)

6,069

3,935

2,784

(1,120)

12,788

Total Performance Fees

537,197

603,109

637,022

180,530

46,860

1,414,677

864,412

Investment Income (Loss)

Realized

49,173

105,901

71,344

85,432

39,821

203,194

196,597

Unrealized

14,492

(28,364)

37,510

(107,691)

(95,382)

(30,566)

(165,563)

Total Investment Income (Loss)

63,665

77,537

108,854

(22,259)

(55,561)

172,628

31,034

Interest Income and Dividend Revenue

7,135

8,943

9,997

10,259

11,057

21,254

31,313

Other

976

1,788

(3,977)

1,077

(938)

1,075

(3,838)

Total Revenues

793,397

865,265

914,594

326,432

188,371

2,121,415

1,429,397

Expenses

Compensation

90,586

69,916

84,834

79,484

99,255

256,401

263,573

Performance Fee Compensation

Realized Carried Interest

64,187

173,534

246,496

116,168

52,546

259,462

415,210

Realized Incentive Fees

592

2,323

356

671

1,838

3,657

2,865

Unrealized Carried Interest

108,789

4,061

(98,084)

(50,559)

(23,018)

193,113

(171,661)

Unrealized Incentive Fees

(123)

(2,227)

2,575

230

5,215

(524)

8,020

Total Compensation and Benefits

264,031

247,607

236,177

145,994

135,836

712,109

518,007

Other Operating Expenses

36,138

40,296

40,143

43,346

42,050

105,787

125,539

Total Expenses

300,169

287,903

276,320

189,340

177,886

817,896

643,546

Economic Income

493,228

$       

577,362

$       

638,274

$       

137,092

$       

10,485

$         

1,303,519

$   

785,851

$       

Total Assets Under Management

80,188,858

$ 

80,863,187

$ 

92,785,658

$ 

91,578,634

$ 

93,187,556

$ 

80,188,858

$ 

93,187,556

$ 

Fee-Earning Assets Under Management

52,308,175

$ 

52,563,068

$ 

50,783,247

$ 

62,683,857

$ 

64,858,622

$ 

52,308,175

$ 

64,858,622

$ 

Weighted Average Fee-Earning AUM

52,764,267

$ 

52,236,610

$ 

51,671,739

$ 

60,939,868

$ 

63,492,663

$ 

53,590,344

$ 

62,809,264

$ 

LP Capital Invested

3,046,867

$    

3,478,850

$    

1,443,163

$    

2,963,609

$    

4,118,952

$    

7,756,292

$    

8,525,724

$    

Total Capital Invested

3,071,425

$    

3,584,035

$    

1,405,603

$    

3,035,837

$    

4,326,151

$    

7,946,117

$    

8,767,591

$    

Blackstone

17

Hedge Fund Solutions

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

121,484

$       

125,105

$       

130,637

$       

130,216

$       

133,592

$       

357,876

$       

394,445

$       

Transaction and Other Fees, Net

161

189

25

-

219

380

244

Management Fee Offsets

(1,099)

(929)

(280)

(608)

(507)

(4,085)

(1,395)

Total Management Fees, Net

120,546

124,365

130,382

129,608

133,304

354,171

393,294

Performance Fees

Realized Incentive Fees

6,683

86,028

10,516

16,915

2,783

54,501

30,214

Unrealized Carried Interest

-

-

-

8,014

(5,394)

-

2,620

Unrealized Incentive Fees

25,473

(74,993)

47,427

15,855

(29,711)

74,114

33,571

Total Performance Fees

32,156

11,035

57,943

40,784

(32,322)

128,615

66,405

Investment Income (Loss)

Realized

2,693

(357)

(10,375)

(1,757)

(468)

21,907

(12,600)

Unrealized

(1,168)

812

4,483

2,032

(6,411)

4,320

104

Total Investment Income (Loss)

1,525

455

(5,892)

275

(6,879)

26,227

(12,496)

Interest Income and Dividend Revenue

2,724

3,389

3,949

3,970

4,136

7,725

12,055

Other

740

1,196

(1,607)

459

(66)

659

(1,214)

Total Revenues

157,691

140,440

184,775

175,096

98,173

517,397

458,044

Expenses

Compensation

41,940

5,806

56,104

45,841

44,408

125,852

146,353

Performance Fee Compensation

Realized Incentive Fees

2,312

23,950

3,470

8,711

(436)

18,501

11,745

Unrealized Carried Interest

-

-

-

4,077

(3,041)

-

1,036

Unrealized Incentive Fees

8,778

(27,064)

15,651

3,764

(7,011)

26,791

12,404

Total Compensation and Benefits

53,030

2,692

75,225

62,393

33,920

171,144

171,538

Other Operating Expenses

20,480

21,068

21,206

20,499

24,147

65,061

65,852

Total Expenses

73,510

23,760

96,431

82,892

58,067

236,205

237,390

Economic Income

84,181

$         

116,680

$       

88,344

$         

92,204

$         

40,106

$         

281,192

$       

220,654

$       

Total Assets Under Management

64,183,863

$ 

63,585,670

$ 

66,378,908

$ 

67,829,866

$ 

68,405,948

$ 

64,183,863

$ 

68,405,948

$ 

Fee-Earning Assets Under Management

62,037,082

$ 

61,417,558

$ 

64,114,498

$ 

65,512,170

$ 

65,182,338

$ 

62,037,082

$ 

65,182,338

$ 

Weighted Average Fee-Earning AUM

60,009,283

$ 

61,730,313

$ 

62,910,553

$ 

65,453,883

$ 

65,782,066

$ 

57,522,469

$ 

64,902,211

$ 

LP Capital Invested

473,233

$       

25,489

$         

133,351

$       

2,131

$           

66,427

$         

828,639

$       

201,909

$       

Total Capital Invested

487,398

$       

12,137

$         

139,223

$       

2,136

$           

71,132

$         

886,420

$       

212,491

$       

Blackstone

18

Credit

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Management Fees, Net

Base Management Fees

120,684

$       

121,458

$       

125,029

$       

123,615

$       

126,533

$       

338,747

$       

375,177

$       

Transaction and Other Fees, Net

3,025

4,728

1,457

2,060

1,289

13,433

4,806

Management Fee Offsets

(6,850)

(10,327)

(7,850)

(3,370)

(11,260)

(17,841)

(22,480)

Total Management Fees, Net

116,859

115,859

118,636

122,305

116,562

334,339

357,503

Performance Fees

Realized Carried Interest

164,602

13,231

13,367

26,925

51,606

195,201

91,898

Realized Incentive Fees

28,998

41,453

18,431

29,684

28,123

68,264

76,238

Unrealized Carried Interest

(61,604)

(38,336)

(11,951)

44,218

(112,366)

423

(80,099)

Unrealized Incentive Fees

(31,630)

(61,542)

9,124

6,521

(26,419)

38,517

(10,774)

Total Performance Fees

100,366

(45,194)

28,971

107,348

(59,056)

302,405

77,263

Investment Income (Loss)

Realized

3,040

1,020

2,237

2,723

1,735

8,334

6,695

Unrealized

4,892

(7,437)

6,887

2,760

(10,177)

12,492

(530)

Total Investment Income (Loss)

7,932

(6,417)

9,124

5,483

(8,442)

20,826

6,165

Interest Income and Dividend Revenue

5,968

6,319

5,651

5,938

6,053

16,721

17,642

Other

(3,619)

1,557

3,493

34

(73)

(3,867)

3,454

Total Revenues

227,506

72,124

165,875

241,108

55,044

670,424

462,027

Expenses

Compensation

54,877

31,261

49,877

47,124

51,324

156,939

148,325

Performance Fee Compensation

Realized Carried Interest

90,872

9,449

6,270

15,362

28,950

106,805

50,582

Realized Incentive Fees

16,125

22,653

8,401

12,455

13,659

39,015

34,515

Unrealized Carried Interest

(38,091)

(22,148)

(5,656)

21,497

(61,190)

(6,435)

(45,349)

Unrealized Incentive Fees

(17,657)

(29,206)

6,735

2,137

(12,846)

12,954

(3,974)

Total Compensation and Benefits

106,126

12,009

65,627

98,575

19,897

309,278

184,099

Other Operating Expenses

20,860

14,666

21,836

23,539

24,898

75,858

70,273

Total Expenses

126,986

26,675

87,463

122,114

44,795

385,136

254,372

Economic Income

100,520

$       

45,449

$         

78,412

$         

118,994

$       

10,249

$         

285,288

$       

207,655

$       

Total Assets Under Management

70,151,848

$ 

72,858,960

$ 

74,959,534

$ 

81,288,709

$ 

80,841,348

$ 

70,151,848

$ 

80,841,348

$ 

Fee-Earning Assets Under Management

56,656,602

$ 

58,821,006

$ 

59,271,744

$ 

61,608,998

$ 

60,337,992

$ 

56,656,602

$ 

60,337,992

$ 

Weighted Average Fee-Earning AUM

56,913,390

$ 

58,329,539

$ 

58,607,856

$ 

61,256,993

$ 

60,243,777

$ 

55,156,108

$ 

60,272,670

$ 

LP Capital Invested

866,404

$       

846,696

$       

814,423

$       

47,768

$         

424,365

$       

1,810,262

$    

1,286,556

$    

Total Capital Invested

888,254

$       

900,291

$       

989,775

$       

60,337

$         

432,212

$       

1,849,962

$    

1,482,324

$    

Blackstone

19

Financial Advisory

(Dollars in Thousands)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

YTD'14

YTD'15

Revenues

Advisory Fees

84,131

$         

151,837

$       

84,238

$         

76,998

$         

146,153

$       

269,008

$       

307,389

$       

Transaction and Other Fees, Net

391

126

16

289

147

1,329

452

Total Advisory and Transaction Fees

84,522

151,963

84,254

77,287

146,300

270,337

307,841

Investment Income (Loss)

Realized

505

(38)

(230)

(159)

(479)

745

(868)

Unrealized

(528)

(275)

1,482

(523)

(998)

1,135

(39)

Total Investment Income (Loss)

(23)

(313)

1,252

(682)

(1,477)

1,880

(907)

Interest Income and Dividend Revenue

2,412

2,909

3,237

3,192

6,094

7,101

12,523

Other

472

291

(956)

(112)

(235)

137

(1,303)

Total Revenues

87,383

154,850

87,787

79,685

150,682

279,455

318,154

Expenses

Compensation

58,016

41,447

68,934

49,824

65,066

189,442

183,824

Total Compensation and Benefits

58,016

41,447

68,934

49,824

65,066

189,442

183,824

Other Operating Expenses

19,853

24,837

21,342

18,559

22,777

63,311

62,678

Total Expenses

77,869

66,284

90,276

68,383

87,843

252,753

246,502

Economic Income (Loss)

9,514

$           

88,566

$         

(2,489)

$          

11,302

$         

62,839

$         

26,702

$         

71,652

$         

Blackstone

20

Unitholder

Distribution

Generated

$0.58

of

Distributable

Earnings

per

common

unit

during

the

quarter,

bringing

the

year-to-date

amount

to

$2.51

per

common

unit,

up

58%

compared

to

the

same

period

last

year.

Declared

a

quarterly

distribution

of

$0.49

per

common

unit

to

record

holders

as

of

October

26,

2015;

payable

on

November

2,

2015.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

vs. 3Q'14

YTD'14

YTD'15

vs. YTD'14

686,086

$   

1,134,054

$

1,240,207

$

1,033,920

$

691,534

$   

1%

1,929,904

$

2,965,661

$

54%

Add: Other Payables Attributable

to Common Unitholders

69,707

87,977

7,288

-

-

(100)%

119,447

7,288

(94)%

DE before Certain Payables

755,793

1,222,031

1,247,495

1,033,920

691,534

(9)%

2,049,351

2,972,949

45%

Percent to Common Unitholders

53%

53%

53%

54%

54%

53%

53%

DE before Certain Payables Attributable

to Common Unitholders

400,587

650,899

663,608

554,120

370,902

(7)%

1,082,803

1,588,630

47%

Less: Other Payables Attributable

to Common Unitholders

(69,707)

(87,977)

(7,288)

-

-

(100)%

(119,447)

(7,288)

(94)%

DE Attributable to Common Unitholders

330,880

562,922

656,320

554,120

370,902

12%

963,356

1,581,342

64%

DE per Common Unit

0.54

$         

0.92

$         

1.05

$         

0.88

$         

0.58

$         

7%

1.59

$         

2.51

$         

58%

Less: Retained Capital per Common Unit

(0.10)

$       

(0.14)

$       

(0.16)

$       

(0.14)

$       

(0.09)

$       

(10)%

(0.25)

$       

(0.39)

$       

56%

Actual Distribution per Common Unit

0.44

$         

0.78

$         

0.89

$         

0.74

$         

0.49

$         

11%

1.34

$         

2.12

$         

58%

Record Date

Oct 26, 2015

Payable Date

Nov 2, 2015

Distributable Earnings (“DE”)

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 $57.2 million for 3Q’15 and $245.6 million for YTD’15.

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.

3Q’15 Fee-Earning AUM Rollforward

(Dollars in Millions)

3Q’15 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows: BPP ($1.5 billion); final closing of BREP VIII ($850 million); BREDS II ($786 million).

Realizations: BREDS ($651 million); BREP International II ($212 million); BREP VI ($158 million); BREP Europe III ($166 million).

Inflows:

Individual investor solutions ($1.1 billion); specialized solutions ($476 million); commingled products ($327 million); customized

solutions ($240 million).

Outflows:

Driven by investors’ liquidity needs and certain strategic shifts in their programs.

Inflows: BDCs ($1.1 billion); Hedge Fund Strategies ($594 million); new CLO product ($600 million).

Outflows: BDCs ($647 million); Hedge Fund Strategies ($272 million).

Realizations: Returned to CLO investors ($1.0 billion European, $872 million U.S.); drawdown funds ($719 million).

Inflows: Tactical Opportunities platform ($1.8 billion); Strategic Partners ($285 million).

Realizations: BCP V strategic and public dispositions including Center Parcs, Summit Materials, CMS Info Systems and Michaels Stores;

Strategic Partners fund of fund realizations.

Fee-Earning Assets Under Management

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'15

49,537

$    

62,684

$    

65,512

$    

61,609

$    

239,342

$  

Inflows

2,168

3,505

2,166

3,323

11,162

Outflows

(5)

(6)

(948)

(1,129)

(2,088)

Realizations

(1,017)

(1,559)

(266)

(2,596)

(5,438)

Net Inflows (Outflows)

1,146

1,940

952

(402)

3,636

Market Activity

(122)

234

(1,282)

(869)

(2,039)

3Q'15

50,561

$    

64,858

$    

65,182

$    

60,338

$    

240,939

$  

QoQ Increase (Decrease)

2%

3%

(1)%

(2)%

1%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

3Q'14

43,818

$    

52,308

$    

62,037

$    

56,657

$    

214,820

$  

Inflows

12,654

26,376

9,546

17,389

65,965

Outflows

(1,099)

(4,203)

(6,102)

(6,384)

(17,788)

Realizations

(5,005)

(9,150)

(390)

(5,259)

(19,804)

Net Inflows

6,550

13,023

3,054

5,746

28,373

Market Activity

193

(473)

91

(2,065)

(2,254)

3Q'15

50,561

$    

64,858

$    

65,182

$    

60,338

$    

240,939

$  

YoY Increase

15%

24%

5%

6%

12%

Credit

Total

Blackstone

22

3Q’15 Total AUM Rollforward

(Dollars in Millions)

3Q’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

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows: BPP ($2.5 billion); final closing of BREP VIII ($851 million); BREDS ($422 million).

Realizations: BREP International II ($682 million); BREP VI ($474 million); BREP Europe III ($375 million); BREP VII ($359 million);

BREDS ($467 million).

Inflows:

BAAM’s third seeding vehicle held its first close with $655 million in commitments; additional close of general partner interests vehicle

with $3.3 billion in total commitments. 

Outflows:

Driven by investors’ liquidity needs and certain strategic shifts in their programs.

Inflows: Capital raised in energy focused products ($1.0 billion); European Senior Debt Strategy ($954 million); BDCs ($1.1 billion).

Outflows: BDCs ($647 million); Hedge Fund Strategies ($247 million).

Realizations:

Returned to CLO investors ($1.9 billion); drawdown funds ($1.1 billion).

Inflows: Tactical Opportunities platform ($2.1 billion); fundraising for seventh private equity fund ($1.1 billion).

Realizations: BCP V ($1.7 billion) and Strategic Partners ($522 million).

Private

Real

Hedge Fund

Equity

Estate

Solutions

3Q'14

69,890

$     

80,189

$     

64,184

$     

70,152

$     

284,415

$   

Inflows

31,050

29,341

10,646

25,874

96,911

Outflows

(1,087)

(455)

(6,204)

(7,151)

(14,897)

Realizations

(14,220)

(23,821)

(419)

(6,312)

(44,772)

Net Inflows

15,743

5,065

4,023

12,411

37,242

Market Activity

5,858

7,934

199

(1,722)

12,269

3Q'15

91,491

$     

93,188

$     

68,406

$     

80,841

$     

333,926

$   

YoY Increase

31%

16%

7%

15%

17%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'15

92,026

$    

91,579

$    

67,830

$    

81,289

$    

332,724

$  

Inflows

3,882

4,276

3,126

4,817

16,101

Outflows

(79)

(6)

(958)

(1,198)

(2,241)

Realizations

(2,705)

(3,050)

(277)

(2,962)

(8,994)

Net Inflows

1,098

1,220

1,891

657

4,866

Market Activity

(1,633)

389

(1,315)

(1,105)

(3,664)

3Q'15

91,491

$    

93,188

$    

68,406

$    

80,841

$    

333,926

$  

QoQ Increase (Decrease)

(1)%

2%

1%

(1)%

0%

Credit

Total

Blackstone

23

Net Accrued Performance Fees

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).

$3.6

billion

Net Accrued Performance Fees at 3Q’15

$3.03

per unit

Net Accrued Performance Fees at 3Q’15

63%

of

3Q’14

Net

Accrued

Performance

Fees realized in LTM’15

Net Accrued Performance Fees

(Dollars in Millions, Except per Unit Data)

2Q'15

3Q'15

3Q'15 Per Unit

QoQ Change

Private Equity

BCP IV Carried Interest

186

$                     

156

$                      

0.13

$                     

(30)

$                       

BCP V Carried Interest

1,119

486

0.41

(633)

BCP VI Carried Interest

320

303

0.26

(17)

BEP Carried Interest

82

59

0.05

(23)

Tactical Opportunities Carried Interest

36

42

0.04

6

BTAS Carried Interest

2

1

-

(1)

Strategic Partners Carried Interest

18

27

0.02

9

Other Carried Interest

1

1

-

-

Total Private Equity

1,764

$                 

1,075

$                 

0.91

$                    

(689)

$                   

Real Estate

BREP IV Carried Interest

36

26

0.02

(10)

BREP V Carried Interest

583

542

0.46

(41)

BREP VI Carried Interest

868

720

0.61

(148)

BREP VII Carried Interest

565

613

0.52

48

BREP VIII Carried Interest

-

3

-

3

BREP Europe III Carried Interest

200

195

0.16

(5)

BREP Europe IV Carried Interest

86

112

0.09

26

BREP Asia Carried Interest

43

48

0.04

5

BPP Carried Interest

18

24

0.02

6

BPP Incentive Fees

4

7

0.01

3

BREDS Carried Interest

11

14

0.01

3

BREDS Incentive Fees

3

5

-

2

Asia Platform Incentive Fees

7

7

0.01

-

Total Real Estate

2,424

$                 

2,316

$                 

1.95

$                    

(108)

$                   

Hedge Fund Solutions

Incentive Fees

60

38

0.03

(22)

Total Hedge Fund Solutions

60

$                       

38

$                        

0.03

$                    

(22)

$                      

Credit

Carried Interest

183

134

0.11

(49)

Incentive Fees

41

22

0.02

(19)

Total Credit

224

$                     

156

$                      

0.13

$                     

(68)

$                       

Total Blackstone

Carried Interest

4,357

3,506

2.96

(851)

Incentive Fees

115

79

0.07

(36)

Net Accrued Performance Fees

4,472

$                 

3,585

$                 

3.03

$                    

(887)

$                   

Memo: Net Realized Performance Fees

52

$                      

31

$                       

0.03

$                   

(21)

$                     

Blackstone

24

Investment

Records

as

of

September

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

305,478

1.4x

-

2,619,040

1.4x

2,924,518

1.4x

7%

6%

BCP IV (Nov 2002 / Dec 2005)

6,773,182

221,559

2,360,762

1.3x

27%

18,652,893

3.2x

21,013,655

2.8x

45%

36%

BCP V (Dec 2005 / Jan 2011)

21,024,105

1,330,193

13,220,032

1.6x

59%

23,805,670

2.0x

37,025,702

1.8x

10%

8%

BCP VI (Jan 2011 / Jan 2017)

15,183,973

5,537,622

12,254,533

1.3x

18%

2,004,781

1.9x

14,259,314

1.4x

47%

12%

BEP (Aug 2011 / Feb 2015)

2,438,835

230,025

2,784,328

1.3x

21%

539,484

2.0x

3,323,812

1.4x

56%

20%

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)

16,775,000

16,775,000

-

n/a

-

-

n/a

-

n/a

n/a

n/a

Total Corporate Private Equity

75,471,379

$   

29,245,048

$   

30,925,133

$   

1.4x

36%

61,805,113

$   

2.3x

92,730,246

$   

1.9x

19%

16%

Tactical Opportunities

11,999,235

7,057,842

5,598,643

1.1x

1%

1,208,134

1.5x

6,806,777

1.2x

38%

12%

Strategic Partners

17,280,564

4,227,205

6,971,984

1.7x

n/a

12,720,524

1.1x

19,692,508

1.3x

n/a

15%

Other Funds and Co-Investment (e)

1,868,221

277,682

1,311,485

1.1x

45%

108,013

1.8x

1,419,498

1.1x

n/a

n/m

Total Private Equity

106,619,399

$ 

40,807,777

$   

44,807,245

$   

1.4x

27%

75,841,784

$   

1.9x

120,649,029

$ 

1.7x

19%

15%

Real Estate

Dollar

Pre-BREP

140,714

$         

-

$                  

-

$                  

n/a

-

345,190

$         

2.5x

345,190

$         

2.5x

33%

33%

BREP I (Sep 1994 / Oct 1996)

380,708

-

-

n/a

-

1,327,708

2.8x

1,327,708

2.8x

40%

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

-

-

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

-

3,328,504

2.4x

3,328,504

2.4x

21%

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

-

1,027,268

0.9x

11%

3,632,929

2.2x

4,660,197

1.7x

45%

13%

BREP V (Dec 2005 / Feb 2007)

5,539,418

-

5,071,272

2.3x

30%

7,729,999

2.2x

12,801,271

2.2x

13%

11%

BREP VI (Feb 2007 / Aug 2011)

11,059,523

584,807

8,799,927

2.2x

65%

16,589,673

2.4x

25,389,600

2.3x

15%

13%

BREP VII (Aug 2011 /Apr 2015)

13,486,361

3,002,256

15,819,308

1.6x

1%

7,514,814

1.9x

23,334,122

1.7x

34%

24%

BREP VIII (Apr 2015 / Oct 2020)

15,928,531

14,984,719

1,087,193

1.1x

-

-

n/a

1,087,193

1.1x

n/a

n/m

Total Global BREP

51,454,996

$   

18,571,782

$   

31,804,968

$   

1.7x

24%

43,000,430

$   

2.2x

74,805,398

$   

2.0x

22%

17%

Euro

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

-

€

-

€

n/a

-

1,364,490

€

2.1x

1,364,490

€

2.1x

23%

23%

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

1,629,748

53,252

817,019

1.2x

45%

1,417,697

2.1x

2,234,716

1.6x

10%

6%

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

464,993

3,451,390

1.8x

7%

2,356,583

2.2x

5,807,973

2.0x

25%

20%

BREP Europe IV (Sep 2013 / Mar 2019)

6,693,483

3,064,932

4,836,148

1.3x

-

354,935

1.3x

5,191,083

1.3x

35%

21%

Total Euro BREP

12,352,543

€

3,583,177

€

9,104,557

€

1.4x

7%

5,493,705

€

2.0x

14,598,262

€

1.6x

18%

14%

BREP Co-Investment (f)

5,709,088

$      

-

$                  

5,555,712

$      

1.8x

67%

5,804,079

$      

2.2x

11,359,791

$   

2.0x

16%

16%

BREP Asia (Jun 2013 / Dec 2017)

5,079,687

2,944,998

2,709,568

1.3x

-

52,498

1.4x

2,762,066

1.3x

22%

14%

Total BREP

78,314,999

$   

25,614,141

$   

52,158,982

$   

1.6x

23%

56,167,818

$   

2.2x

108,326,800

$ 

1.9x

21%

17%

BPP (g)

7,925,523

$      

3,278,618

$      

5,400,419

$      

1.2x

-

-

$                  

n/a

5,400,419

$      

1.2x

n/a

20%

BREDS (h)

7,256,058

$      

2,359,876

$      

2,482,860

$      

1.2x

-

5,197,513

$      

1.3x

7,680,373

$      

1.3x

13%

12%

Hedge Fund Solutions

BSCH (Dec 2013 / Jun 2020) (i)

3,301,000

$      

3,015,745

$      

297,429

$         

1.1x

-

54,573

$           

n/a

352,002

$         

1.3x

n/m

8%

Hedge Fund Solutions

3,301,000

$     

3,015,745

$     

297,429

$         

1.1x

-

54,573

$           

n/a

352,002

$         

1.3x

n/m

8%

Credit (j)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

$      

102,380

$         

472,638

$         

1.8x

-

4,384,595

$      

1.6x

4,857,233

$      

1.6x

n/a

18%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

2,731,998

2,507,099

1.2x

-

1,514,372

1.5x

4,021,471

1.3x

n/a

19%

Rescue Lending I (Sep 2009 / May 2013)

3,253,143

552,445

1,848,064

1.3x

-

4,034,599

1.5x

5,882,663

1.4x

n/a

13%

Rescue Lending II (Jun 2013 / Jun 2018)

5,125,000

3,485,668

1,924,642

1.1x

-

88,846

1.1x

2,013,488

1.1x

n/a

22%

Total Credit

14,498,143

$   

6,872,491

$     

6,752,443

$     

1.2x

-

10,022,412

$   

1.5x

16,774,855

$   

1.4x

n/a

16%

Blackstone

25

Investment

Records

as

of

September

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 September 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, 1.6x and 1.3x, 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)

3Q'14

4Q'14

1Q'15

(m)

2Q'15

3Q'15

YTD'14

YTD'15

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

250,505

$    

551,451

$    

629,448

$    

134,168

$    

(254,697)

$  

1,033,138

$

508,919

$    

Net Income (Loss)

Attributable to Non-Controlling Interests in Blackstone Holdings

271,194

586,582

645,230

134,870

(247,318)

1,114,518

532,782

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

55,491

95,557

81,796

66,716

30,671

239,513

179,183

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

(23,328)

29,844

7,527

13,780

(12,520)

44,950

8,787

Net Income (Loss)

553,862

$    

1,263,434

$

1,364,001

$

349,534

$    

(483,864)

$  

2,432,119

$

1,229,671

$

Provision for Taxes

79,108

74,686

99,344

43,251

1,573

216,487

144,168

Income (Loss) Before Provision for Taxes

632,970

$    

1,338,120

$

1,463,345

$

392,785

$    

(482,291)

$  

2,648,606

$

1,373,839

$

Transaction-Related Charges

(a)

209,240

291,550

231,862

192,018

80,962

564,832

504,842

Amortization of Intangibles

(b)

27,828

26,113

25,899

24,720

30,624

85,141

81,243

(Income) Associated with Non-Controlling Interests of Consolidated Entities

(c)

(32,163)

(125,401)

(89,323)

(80,496)

(18,151)

(284,463)

(187,970)

Economic Income (Loss)

837,875

$    

1,530,382

$

1,631,783

$

529,027

$    

(388,856)

$  

3,014,116

$

1,771,954

$

Taxes

(d)

(79,519)

(83,649)

(9,719)

(20,587)

(27,070)

(115,863)

(57,376)

Economic Net Income (Loss)

758,356

$    

1,446,733

$

1,622,064

$

508,440

$    

(415,926)

$  

2,898,253

$

1,714,578

$

Taxes

(d)

79,519

83,649

9,719

20,587

27,070

115,863

57,376

Performance Fee Adjustment

(e)

(891,087)

(1,323,338)

(1,673,736)

(569,664)

639,349

(3,068,539)

(1,604,051)

Investment (Income) Loss Adjustment

(f)

(80,766)

(98,424)

(189,641)

(10,774)

136,131

(373,204)

(64,284)

Net Interest Loss

(g)

10,636

5,851

8,402

14,411

9,522

30,660

32,335

Performance Fee Compensation and Benefits Adjustment

(h)

360,162

270,249

403,816

215,441

(130,479)

1,015,254

488,778

Fee Related Earnings

236,820

$    

384,720

$    

180,624

$    

178,441

$    

265,667

$    

618,287

$    

624,732

$    

Net Realized Performance Fees

(i)

470,560

699,472

932,789

725,433

357,114

1,087,127

2,015,336

Realized Investment Income

(j)

75,832

153,477

107,792

136,497

87,526

389,948

331,815

Net Interest (Loss)

(g)

(10,636)

(5,851)

(8,402)

(14,411)

(9,522)

(30,660)

(32,335)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(k)

(96,437)

(108,456)

(16,994)

(20,587)

(27,070)

(172,332)

(64,651)

Equity-Based Compensation

(l)

9,947

10,692

44,398

28,547

17,819

37,534

90,764

Distributable Earnings

686,086

$    

1,134,054

$

1,240,207

$

1,033,920

$

691,534

$    

1,929,904

$

2,965,661

$

Interest Expense

34,221

34,154

38,853

45,437

44,981

98,701

129,271

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(k)

96,437

108,456

16,994

20,587

27,070

172,332

64,651

Depreciation and Amortization

7,557

7,200

6,927

6,715

6,719

25,100

20,361

Adjusted EBITDA

824,301

$    

1,283,864

$

1,302,981

$

1,106,659

$

770,304

$    

2,226,037

$

3,179,944

$

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

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. 3Q’15 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 3Q’15 DE per Unit is based on DE attributable to Common Unit Holders (see page 20,

Unitholder

Distribution) and end of period Total Common Units Outstanding; and 3Q’15 ENI per Unit is based on Weighted-Average ENI Adjusted Units. YTD’15 per Unit represents the sum of the

last three quarters. See page 30, Unit Rollforward.

(Dollars in Thousands, Except per Unit Data)

3Q'15

YTD'15

Results

Per Unit

Results

Per Unit

Base Management Fees

564,287

$         

1,597,176

$     

Advisory Fees

146,153

307,389

Transaction and Other Fees, Net

32,403

81,204

Management Fee Offsets

(34,176)

(70,555)

Other Revenue

(841)

(1,740)

Compensation

(329,575)

(948,765)

Non-Interest Operating Expenses

(112,584)

(339,977)

Fee Related Earnings

265,667

$         

0.22

$               

624,732

$         

0.52

$               

Net Realized Incentive Fees

19,724

63,149

Net Realized Carried Interest

337,390

1,952,187

Realized Investment Income

87,526

331,815

Net Interest (Loss)

(9,522)

(32,335)

Taxes and Related Payables

(27,070)

(64,651)

Equity-Based Compensation

17,819

90,764

Distributable Earnings

691,534

$         

0.58

$               

2,965,661

$     

2.51

$               

Net Unrealized Incentive Fees

(38,704)

19,135

Net Unrealized Carried Interest

(827,280)

(919,198)

Unrealized Investment (Loss)

(223,657)

(267,531)

Add Back: Related Payables

-

7,275

Less: Equity-Based Compensation

(17,819)

(90,764)

Economic Net Income (Loss)

(415,926)

$       

(0.35)

$              

1,714,578

$     

1.45

$               

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)

3Q'15

YTD'15

Other Operating Expenses

157,565

469,248

Less: Interest Expense

(44,981)

(129,271)

Non-Interest Operating Expenses

112,584

$     

339,977

$     

Realized Incentive Fees

34,785

112,274

Less: Realized Incentive Fee Compensation

(15,061)

(49,125)

Net Realized Incentive Fees

19,724

$        

63,149

$        

Realized Carried Interest

435,189

2,580,266

Less: Realized Carried Interest Compensation

(97,799)

(628,079)

Net Realized Carried Interest

337,390

$     

1,952,187

$  

Interest Income and Dividend Revenue

35,459

96,936

Less: Interest Expense

(44,981)

(129,271)

Net Interest (Loss)

(9,522)

$         

(32,335)

$      

Equity-Based Compensation

(a)

17,819

$        

90,764

$        

Taxes and Related Payables

(b)

(27,070)

$      

(64,651)

$      

Unrealized Incentive Fees

(53,346)

35,585

Less: Unrealized Incentive Fee Compensation

14,642

(16,450)

Net Unrealized Incentive Fees

(38,704)

$      

19,135

$        

Unrealized Carried Interest

(1,055,977)

(1,124,074)

Less: Unrealized Carried Interest Compensation

228,697

204,876

Net Unrealized Carried Interest

(827,280)

$    

(919,198)

$    

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.

3Q'14

4Q'14

1Q'15

2Q'15

3Q'15

Total GAAP Weighted-Average Common Units Outstanding - Basic

611,684,213

615,492,620

625,276,969

631,881,205

638,832,799

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

3,294,657

6,843,140

5,955,072

2,311,444

1,913,028

Total GAAP Weighted-Average Common Units Outstanding - Diluted

614,978,870

622,335,760

631,232,041

634,192,649

640,745,827

Adjustments:

Weighted-Average Blackstone Holdings Partnership Units

539,856,777

536,973,966

548,837,150

555,641,388

550,983,910

Weighted-Average Economic Net Income Adjusted Units

1,154,835,647

1,159,309,726

1,180,069,191

1,189,834,037

1,191,729,737

Economic Net Income Adjusted Units, End of Period

1,155,075,985

1,159,954,181

1,192,529,251

1,190,864,027

1,191,328,573

Total Common Units Outstanding

607,590,602

611,480,457

625,985,058

630,414,455

635,440,608

Adjustments:

Blackstone Holdings Partnership Units

538,760,225

536,543,970

550,783,119

545,861,003

549,317,005

Distributable Earnings Units Outstanding

1,146,350,827

1,148,024,427

1,176,768,177

1,176,275,458

1,184,757,613

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 non-interest 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”, which is derived from segment

results, to assess its ability to service its borrowings. Adjusted EBITDA represents DE plus the addition of (a) Interest Expense, (b) Taxes and Related

Payables Including Payable Under Tax Receivable Agreement, and (c) Depreciation and Amortization.

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.