Blackstone (BX) 8-K Blackstone Reports Fourth Quarter and Full Year 2016 Results

Exhibit 99.1

Blackstone Reports Fourth Quarter and Full Year 2016 Results

New York, January 26, 2017: Blackstone (NYSE:BX) today reported its fourth quarter and full year 2016 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone’s most recent results marked a strong finish to a turbulent year, as fourth quarter earnings nearly doubled versus the prior year period. Full year earnings rose significantly due to greater appreciation across the investment funds as well as strong growth in fee related income. Our robust investment returns attractedbest-in-class capital inflows, driving Total Assets Under Management to $367 billion, another record. And we continue to pay substantial distributions to our unitholders, delivering over $8 billion of value in the past three years, which is the highest of any public firm in our industry.”

Blackstone issued a full detailed presentation of its fourth quarter and full year 2016 results, which can be viewed atwww.blackstone.com.

Distribution

Blackstone has declared a quarterly distribution of $0.47 per common unit to record holders of common units at the close of business on February 6, 2017. This distribution will be paid on February 13, 2017.

Quarterly Investor Call Details

Blackstone will host a conference call on January 26, 2017 at 11:00 a.m. ET to discuss fourth quarter and full year 2016 results. The conference call can be accessed via the Investors section of Blackstone’s website atwww.blackstone.com or by dialing+1 (877) 391-6747 (U.S. domestic) or+1 (617) 597-9291 (international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available onwww.blackstone.com or by dialing+1 (888) 286-8010 (U.S. domestic) or+1 (617) 801-6888 (international), pass code 453 218 99#.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $360 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity,non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available atwww.blackstone.com. Follow Blackstone on Twitter@Blackstone.

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

Forward-Looking Statements

This release 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 Form10-K for the fiscal year ended December 31, 2015, 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 release 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 release does not constitute an offer of any Blackstone Fund.

Investor and Media Relations Contacts

Joan Solotar Blackstone Tel: +1 (212)583-5068 solotar@blackstone.com Weston Tucker Blackstone Tel: +1 (212)583-5231 tucker@blackstone.com Christine Anderson Blackstone Tel: +1 (212)583-5182 Christine.Anderson@blackstone.com

2

Blackstone’s Fourth Quarter and Full Year

2016 Earnings

January 26, 2017

Blackstone

1

Blackstone’s

Fourth

Quarter

and

Full

Year

2016

GAAP

Results

GAAP

Net

Income

was

$770

million

for

the

quarter,

and

$2.2

billion

for

the

year.

GAAP

Net

Income

Attributable

to

The

Blackstone

Group

L.P.

was

$368

million

for

the

quarter

and

$1.0

billion

for

the

year.

n/m = not meaningful.

% Change

% Change

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

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Revenues

Management and Advisory Fees, Net

648,009

$    

630,092

$           

(3)%

2,542,505

$       

2,442,975

$       

(4)%

Performance Fees

Realized Carried Interest

625,024

416,197

(33)%

3,205,290

1,474,830

(54)%

Realized Incentive Fees

82,463

82,382

(0)%

193,238

170,537

(12)%

Unrealized Carried Interest

(471,164)

239,224

n/m

(1,595,174)

481,304

n/m

Unrealized Incentive Fees

(42,962)

3,760

n/m

(6,688)

49,660

n/m

Total Performance Fees

193,361

741,563

284%

1,796,666

2,176,331

21%

Investment Income (Loss)

Realized

109,466

106,350

(3)%

555,171

278,737

(50)%

Unrealized

(88,505)

9,967

n/m

(350,529)

77,314

n/m

Total Investment Income

20,961

116,317

455%

204,642

356,051

74%

Interest and Dividend Revenue

24,828

28,544

15%

94,957

95,724

1%

Other

10,260

52,853

415%

7,782

54,753

604%

Total Revenues

897,419

1,569,369

75%

4,646,552

5,125,834

10%

Expenses

Compensation and Benefits

Compensation

299,958

304,347

1%

1,726,191

1,335,408

(23)%

Performance Fee Compensation

Realized Carried Interest

165,722

141,443

(15)%

793,801

455,954

(43)%

Realized Incentive Fees

36,819

33,286

(10)%

85,945

78,096

(9)%

Unrealized Carried Interest

(107,820)

137,591

n/m

(312,696)

312,838

n/m

Unrealized Incentive Fees

(18,940)

1,489

n/m

(2,490)

21,134

n/m

Total Compensation and Benefits

375,739

618,156

65%

2,290,751

2,203,430

(4)%

General, Administrative and Other

139,607

141,954

2%

576,103

520,309

(10)%

Interest Expense

38,878

41,142

6%

144,522

152,654

6%

Fund Expenses

2,654

23,232

775%

79,499

52,181

(34)%

Total Expenses

556,878

824,484

48%

3,090,875

2,928,574

(5)%

Other Income

Reversal of Tax Receivable Agreement Liability

82,707

-

(100)%

82,707

-

(100)%

Net Gains from Fund Investment Activities

17,661

73,510

316%

176,364

184,750

5%

Income Before Provision for Taxes

440,909

$    

818,395

$          

86%

1,814,748

$       

2,382,010

$       

31%

Provision for Taxes

46,230

48,087

4%

190,398

132,362

(30)%

Net Income

394,679

$    

770,308

$          

95%

1,624,350

$       

2,249,648

$       

38%

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

2,358

1,663

(29)%

11,145

3,977

(64)%

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

40,717

58,684

44%

219,900

246,152

12%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

150,734

342,010

127%

683,516

960,284

40%

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

200,870

$    

367,951

$          

83%

709,789

$          

1,039,235

$       

46%

Net Income per Common Unit, Basic

0.31

$          

0.56

$                 

81%

1.12

$                 

1.60

$                 

43%

Net Income per Common Unit, Diluted

0.23

$          

0.55

$                 

139%

1.04

$                 

1.56

$                 

50%

Blackstone

2

Blackstone’s Fourth Quarter and Full Year 2016 Highlights

Economic

Net

Income

(“ENI”)

was

$812

million

($0.68/unit)

in

the

quarter,

up

86%

year-over-year,

on

$1.6

billion

of

Total

Segment

Revenues.

•

ENI

was

$2.4

billion

($2.00/unit)

for

the

year

on

$5.1

billion

of

Total

Segment

Revenues.

Distributable

Earnings

(“DE”)

was

$692

million

($0.55/unit)

in

the

quarter,

on

$500

million

of

Realized

Performance

Fees.

•

DE

was

$2.2

billion

($1.78/unit)

for

the

year

on

$1.6

billion

of

Realized

Performance

Fees.

Fee

Related

Earnings

(“FRE”)

was

$328

million

in

the

fourth

quarter,

on

$689

million

of

Fee

Revenues.

•

FRE

was

$1.0

billion

for

the

year,

up

7%

year-over-year,

on

$2.5

billion

of

Fee

Revenues,

despite

the

spin-off

of

Blackstone’s

Advisory

businesses

completed

in

October

2015.

Total

Assets

Under

Management

(“AUM”)

reached

a

record

$366.6

billion

through

a

combination

of

strong

fundraising

and

organic

expansion.

•

Gross

inflows

were

$16.7

billion

in

the

quarter,

bringing

full

year

inflows

to

$69.7

billion.

•

Total

AUM

increased

9%

year-over-year

and

Fee-Earning

AUM

was

up

13%

to

$277.1

billion.

Capital

deployed

of

$8.0

billion

in

the

quarter

and

$23.1

billion

in

the

year

was

achieved

by

leveraging

Blackstone’s

diverse

platform

to

find

opportunities

globally.

Blackstone

declared

a

fourth

quarter

distribution

of

$0.47

per

common

unit

payable

on

February

13,

2017,

bringing

the

full

year

distribution

to

$1.52

per

common

unit.

Blackstone

3

Blackstone’s Fourth Quarter and Full Year 2016 Segment Earnings

The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable Blackstone Funds and not those of The

Blackstone Group L.P.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Fee Revenues

659,931

$        

688,731

$        

4%

2,573,405

$     

2,517,705

$     

(2)%

Performance Fees

194,026

741,903

282%

1,798,077

2,177,986

21%

Investment Income (Loss)

(11,435)

99,282

n/m

52,849

220,290

317%

Interest Income and Dividend Revenue

34,665

42,488

23%

131,601

145,883

11%

Total Revenues

877,187

1,572,404

79%

4,555,932

5,061,864

11%

Total Expenses

471,345

727,544

54%

2,378,136

2,580,580

9%

Taxes

(29,849)

33,250

n/m

27,527

92,263

235%

Economic Net Income

435,691

$        

811,610

$        

86%

2,150,269

$    

2,389,021

$    

11%

ENI per Unit

0.37

$              

0.68

$              

84%

1.82

$              

2.00

$              

10%

Fee Related Earnings

310,879

$        

328,026

$        

6%

935,611

$        

1,002,653

$     

7%

Distributable Earnings

878,027

$        

691,833

$        

(21)%

3,843,688

$    

2,176,287

$    

(43)%

DE per Common Unit

0.72

$              

0.55

$              

(24)%

3.23

$              

1.78

$              

(45)%

Total AUM

336,384,575

$

366,553,465

$

9%

336,384,575

$

366,553,465

$

9%

Fee-Earning AUM

246,146,372

$

277,092,672

$

13%

246,146,372

$

277,092,672

$

13%

Blackstone

4

Private Equity

10.7%

FY’16 Increase in Corporate

Private Equity Carrying Value

$14.2

billion

FY’16 Realizations

$100.2

billion

Total AUM up 6% YoY

Corporate

Private

Equity

carrying

value

increased

4.5%

in

the

quarter,

driven

by

appreciation

in

the

private

investment

portfolio,

and

increased

10.7%

for

the

year.

Realizations

of

$3.8

billion

in

the

quarter

were

driven

mainly

by

public

and

strategic

sales

across

the

segment,

bringing

full

year

realizations

to

$14.2

billion.

Invested

or

committed

$4.7

billion

during

the

quarter

and

$11.1

billion

for

the

year

across

the

segment.

Inflows

of

$3.2

billion

in

the

quarter

included

closings

for

Tactical

Opportunities,

the

core

private

equity

fund

and

Strategic

Partners

bringing

full

year

inflows

to

$16.9

billion.

Total

AUM

increased

6%

year-over-year

to

$100.2

billion,

driven

by

fundraising

across

all

strategies

within

the

segment,

which

more

than

offset

significant

realization

activity.

Fee-Earning

AUM

increased

34%

year-over-year

due

to

the

commencement

of

investment

periods

of

various

flagship

funds

across

the

segment.

% Change

% Change

(Dollars in Thousands)

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Fee Revenues

157,183

$      

176,662

$        

12%

518,553

$     

581,655

$        

12%

Performance Fees

161,061

252,794

57%

757,032

670,049

(11)%

Investment Income

32,823

23,938

(27)%

73,311

68,534

(7)%

Interest Income and Dividend Revenue

9,812

11,746

20%

33,218

40,271

21%

Total Revenues

360,879

465,140

29%

1,382,114

1,360,509

(2)%

Compensation

70,651

73,154

4%

280,248

310,457

11%

Performance Fee Compensation

73,365

116,659

59%

246,750

274,819

11%

Other Operating Expenses

53,900

52,465

(3)%

199,158

196,433

(1)%

Total Expenses

197,916

242,278

22%

726,156

781,709

8%

Economic Income

162,963

$     

222,862

$        

37%

655,958

$     

578,800

$        

(12)%

Total AUM

94,280,074

$

100,192,950

$

6%

94,280,074

$

100,192,950

$

6%

Fee-Earning AUM

51,451,196

$

69,113,409

$   

34%

51,451,196

$

69,113,409

$   

34%

Blackstone

5

Real Estate

11.1%

FY’16 Increase in Opportunistic

Funds’ Carrying Value

$102.0

billion

Total AUM up 9% YoY

$17.6

billion

FY’16 Realizations

Scale

and

reach

of

global

platform

resulted

in

$17.6

billion

of

realizations,

$12.6

billion

capital

invested

or

committed

and

$15.2

billion

capital

raised

in

2016.

Opportunistic

funds’

carrying

value

was

up

4.6%

during

the

quarter

and

11.1%

for

the

full

year;

core+

funds’

carrying

value

was

up

2.0%

in

the

quarter

and

10.9%

for

the

year.

Realizations

of

$3.5

billion

in

the

quarter,

driven

by

the

public

stock

sales

of

Hilton

and

Hudson

Pacific

Properties.

•

Additionally,

more

than

$5.0

billion

of

realizations

closed

or

under

contract

and

expected

to

close

in

early

2017.

Invested

or

committed

$5.3

billion

in

the

quarter,

including

the

closing

of

several

large

U.S.

core+

acquisitions.

Inflows

of

$2.3

billion

in

the

quarter

across

the

platform

include

$904

million

in

core+

funds,

$754

million

in

BREDS

funds,

and

a

closing

for

the

fifth

European

opportunistic

fund

of

$379

million.

Total

AUM

up

9%

and

Fee-Earning

AUM

up

7%

year-over-year

to

$102.0

billion

and

$72.0

billion,

respectively.

•

Total

AUM

is

up

28%

in

the

past

three

years

despite

$58.4

billion

of

realizations.

% Change

% Change

(Dollars in Thousands)

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Fee Revenues

248,252

$      

235,932

$         

(5)%

750,890

$     

899,686

$         

20%

Performance Fees

127,734

358,319

181%

992,146

1,121,639

13%

Investment Income (Loss)

(27,341)

59,749

n/m

3,693

121,593

n/m

Interest Income and Dividend Revenue

12,677

15,508

22%

43,990

54,240

23%

Total Revenues

361,322

669,508

85%

1,790,719

2,197,158

23%

Compensation

94,808

82,000

(14)%

358,381

385,352

8%

Performance Fee Compensation

50,751

136,304

169%

305,185

406,354

33%

Other Operating Expenses

53,636

55,756

4%

179,175

203,962

14%

Total Expenses

199,195

274,060

38%

842,741

995,668

18%

Economic Income

162,127

$     

395,448

$        

144%

947,978

$     

1,201,490

$     

27%

Total AUM

93,917,824

$

101,963,652

$ 

9%

93,917,824

$

101,963,652

$ 

9%

Fee-Earning AUM

67,345,357

$

72,030,054

$   

7%

67,345,357

$

72,030,054

$   

7%

Blackstone

6

Hedge Fund Solutions

3.5%

FY’16 BPS Composite Gross Return

The BPS Composite gross return is based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM's individual investor solutions (liquid alternatives), long-biased commodities, ventures (seeding and minority

interests), strategic opportunities (co-invests), 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. The

funds/accounts that comprise the BPS Composite are not managed within a single fund or account and are managed with different

mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-alone

fund/account. The BPS Composite is not an investible product and, as such, the performance of the Composite does not represent the performance of an actual fund or account. On a net of fees basis, the BPS Composite was 2.1% for 4Q’16,

2.7% for FY’16, and 6.1% for the nine months ended December 31, 2016. The BPS Composite return for the six months ended December

31, 2016 was 5.3% gross, 4.9% net.

The

BPS

Composite

gross

return

was

2.3%

in

the

fourth

quarter,

and

3.5%

for

the

year,

including

6.7%

in

the

last

nine

months,

demonstrating

a

strong

recovery

from

challenging

market

conditions

in

the

first

quarter.

Total

AUM

inflows

of

$3.2

billion

during

the

quarter

and

$10.8

billion

for

the

year,

driven

by

customized

solutions,

commingled

products

and

individual

investor

and

specialized

solutions.

•

Despite

challenging

market

conditions

for

hedge

funds,

continued

investor

confidence

in

BAAM’s

ability

to

identify

strategic

opportunities

while

managing

risk

led

to

positive

Net

Inflows

for

the

year.

•

January

1

subscriptions

of

$675

million

are

not

yet

included

in

AUM.

Total

AUM

reached

$71.1

billion

in

the

quarter,

driven

by

continued

platform

diversification

and

growth

in

customized

strategies.

$10.8

billion

FY’16

Total AUM

Inflows

$71.1

billion

Total AUM up 3% YoY

% Change

% Change

(Dollars in Thousands)

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Fee Revenues

132,994

$      

140,237

$      

5%

525,074

$     

530,954

$     

1%

Performance Fees

(4,271)

25,573

n/m

62,134

43,466

(30)%

Investment Income (Loss)

(1,680)

5,424

n/m

(14,176)

8,238

n/m

Interest Income and Dividend Revenue

5,219

7,890

51%

17,274

23,083

34%

Total Revenues

132,262

179,124

35%

590,306

605,741

3%

Compensation

33,131

39,509

19%

179,484

185,320

3%

Performance Fee Compensation

(119)

9,665

n/m

25,066

19,870

(21)%

Other Operating Expenses

24,220

27,840

15%

90,072

108,636

21%

Total Expenses

57,232

77,014

35%

294,622

313,826

7%

Economic Income

75,030

$        

102,110

$     

36%

295,684

$     

291,915

$     

(1)%

Total AUM

69,105,425

$

71,119,718

$

3%

69,105,425

$

71,119,718

$

3%

Fee-Earning AUM

65,665,439

$

66,987,553

$

2%

65,665,439

$

66,987,553

$

2%

Blackstone

7

Credit

Performing Credit Strategies include mezzanine lending funds, Business Development Companies (“BDCs”) and other performing credit strategy funds. Distressed Strategies include hedge fund strategies, rescue lending funds and distressed energy

strategies. The composite gross returns represent a weighted-average composite of the fee-earning funds exceeding $100 million of fair value at each respective quarter end for each strategy. Composite gross returns exclude the Blackstone Funds

that were contributed to GSO

as part of Blackstone’s acquisition of GSO

in March 2008. Performing Credit Strategies’ net returns were 3.4% and 16.7% for 4Q’16

and FY'16. Distressed Strategies’ net returns were 5.4% and 13.3% for 4Q’16

and FY'16.

The breakdown of Total AUM for 4Q’16

is as follows: Distressed Strategies $22.7 billion (33% Incentive Fee, 67% Carried Interest), Performing Credit Strategies $36.8 billion (49% Incentive Fee, 51% Carried Interest), and Long Only $33.8 billion. The

breakdown of Fee-Earning AUM for 4Q’16

is as follows: Distressed Strategies $13.1 billion (51% Incentive Fee, 49% Carried Interest), Performing Credit Strategies $22.7 billion (80% Incentive Fee, 20% Carried Interest), and Long Only $33.2 billion.

$23.0

billion

FY’16

Total AUM

Inflows

$93.3

billion

Total AUM up 18% YoY

FY’16 Composite Gross Returns

Performing Credit

22.6%

Distressed

17.5%

Strong

performance

across

strategies

during

the

year,

resulting

in

gross

returns

of

22.6%

in

Performing

Credit

and

17.5%

in

Distressed

Strategies.

•

Gross

composite

returns

for

the

quarter

were

up

4.7%

and

6.4%

for

Performing

Credit

and

Distressed

Strategies,

respectively.

•

Performance

was

driven

by

appreciation

of

energy

investments

and

distressed

debt

positions

across

funds.

Total

AUM

reached

a

record

$93.3

billion,

up

18%

year-over-year,

driven

by

capital

raised

across

strategies.

•

Launched

five

CLOs

during

the

quarter

which

totaled

$2.6

billion,

ending

the

year

with

nine

new

CLOs

totaling

$4.8

billion

of

AUM.

•

The

SPDR

Blackstone

/

GSO

Senior

Loan

ETF

crossed

the

$1.0

billion

mark

with

$219

million

of

capital

added

in

the

fourth

quarter.

•

Raised

$2.9

billion

in

the

quarter

for

a

co-investment

fund

designed

to

invest

in

parallel

with

the

newest

mezzanine

fund.

Invested

or

committed

$3.1

billion

during

the

quarter

and

$5.7

billion

for

the

year

across

the

segment.

% Change

% Change

(Dollars in Thousands)

4Q'15

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Fee Revenues

121,502

$      

135,900

$      

12%

482,459

$     

505,410

$     

5%

Performance Fees

(90,498)

105,217

n/m

(13,235)

342,832

n/m

Investment Income (Loss)

(15,237)

10,171

n/m

(9,072)

21,925

n/m

Interest Income and Dividend Revenue

6,957

7,344

6%

24,599

28,289

15%

Total Revenues

22,724

258,632

n/m

484,751

898,456

85%

Compensation

41,864

46,400

11%

190,189

202,087

6%

Performance Fee Compensation

(48,215)

51,181

n/m

(12,441)

166,979

n/m

Other Operating Expenses

23,353

36,611

57%

93,626

120,311

29%

Total Expenses

17,002

134,192

689%

271,374

489,377

80%

Economic Income

5,722

$          

124,440

$     

n/m

213,377

$     

409,079

$     

92%

Total AUM

79,081,252

$

93,277,145

$

18%

79,081,252

$

93,277,145

$

18%

Fee-Earning AUM

61,684,380

$

68,961,656

$

12%

61,684,380

$

68,961,656

$

12%

Blackstone

8

$72.9

$79.1

$93.3

$63.6

$69.1

$71.1

$80.9

$93.9

$102.0

$73.1

$94.3

$100.2

4Q'14

4Q'15

4Q'16

Fee-Earning AUM by Segment

(Dollars in Billions)

Total AUM by Segment

(Dollars in Billions)

$290.4

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Assets Under Management

$58.8

$61.7

$69.0

$61.4

$65.7

$67.0

$52.6

$67.3

$72.0

$43.9

$51.5

$69.1

4Q'14

4Q'15

4Q'16

$336.4

$366.6

$216.7

$246.1

$277.1

Total AUM increased 9% year-over-year to $366.6 billion driven by $69.7 billion of gross inflows.

•

Each segment experienced growth despite $57.7 billion of capital returned to investors during the year.

Fee-Earning AUM of $277.1 billion was up 13% year-over-year as $68.3 billion of gross inflows significantly

outpaced $42.3 billion of realizations and outflows.

Blackstone

9

$16.6

$2.0

$11.7

$13.5

$149.6

$143.8

$149.8

$12.9

$25.8

$25.3

$42.5

$80.0

$97.2

4Q'14

4Q'15

4Q'16

$43.6

$32.1

$4.3

$21.3

Additional Capital Detail

Undrawn

capital

(“Total

Dry

Powder”)

was

$101.3

billion,

up

27%

year-over-year,

driven

by

recent

fundraises

for

the

latest

global

private

equity

fund

and

the

latest

European

opportunistic

real

estate

fund.

•

77%

of

Total

Dry

Powder

was

raised

in

2015

and

2016.

Performance

Fee

Eligible

AUM

reached

$272.3

billion

at

quarter

end,

up

9%

year-over-year,

despite

significant

realizations

in

the

Real

Estate

and

Private

Equity

segments.

Uninvested

Not Currently

Earning

Performance

Fees

Currently

Earning

Performance

Fees

Private Equity

Real Estate

Hedge Fund Solutions

Credit

$101 billion 4Q’16

Total Dry Powder

$272 billion Performance

Fee Eligible AUM

$44 billion Not Currently

Earning Management Fees

$249.6

$272.3

$205.1

Credit

Hedge Fund

Solutions

Real Estate

Private Equity

$43.7

Blackstone

10

4Q'14

4Q'15

4Q'16

At

December

31,

2016,

Blackstone

had

$4.6

billion

in

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$10.3

billion

of

cash

and

net

investments,

or

$8. 61

per

unit.

Blackstone

has

no

net

debt,

a

$1.5

billion

undrawn

credit

revolver

and

maintained

A+/A+

ratings.

•

On

October

5,

2016,

Blackstone

issued

€600

million

of

10-year

notes

at

a

1%

coupon.

Deconsolidated Balance Sheet Highlights

Balance Sheet Highlights are preliminary, and exclude the consolidated Blackstone Funds. Investments include Blackstone investments in Private Equity, Real Estate, Hedge Fund

Solutions, and Credit, which were $758 million, $1.0 billion, $128 million, and $272 million, respectively, as of December 31, 2016, $860 million, $972 million, $125 million, and

$213

million, respectively, as of December 31, 2015 and $994 million, $1.3 billion, $126 million, and $247 million, respectively, as of December 31, 2014. Total Net Value per unit amounts

are calculated using period end DE Units Outstanding.

A+/A+

Rated by S&P and Fitch

$1.5 billion

Undrawn Credit Revolver with

August 2021 Maturity

$4.6 billion

Total Cash and

Corporate Treasury

$8.61

$8.01

$9.05

Cash and Net Investments

(Per Unit)

(Dollars in Millions)

4Q’16

Cash and Cash Equivalents

$

1,837

Corporate Treasury

Investments

2,792

GP/Fund Investments

2,161

Net Accrued Performance

Fees

3,470

Cash

and Net Investments

$

10,260

Outstanding

Bonds (at par)

$

3,432

Blackstone

11

$1,060

$1,159

$888

$488

$1,218

$134

2014

2015

2016

$2,612

$2,186

$1,986

$1,657

$931

$1,268

4Q'14

4Q'15

4Q'16

Performance Fees

Net Realized Performance Fees

(Dollars in Millions)

$2,521

$1,113

$1,787

Net Accrued Performance Fees

(Dollars in Millions)

$3,251

$3,470

$4,552

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$3.5

billion

Net Accrued Performance Fees

at 4Q’16

7%

YoY

Growth in

Net Accrued

Performance Fees

$2.91

per unit

Net Accrued Performance Fees

at 4Q’16

Net Accrued Performance Fees per unit is calculated using period end DE Units Outstanding (see page 31, Unit Rollforward).

Net

Accrued

Performance

Fees

were

$3.5

billion

($2.91/unit),

up

7%

year-over-year,

despite

realizing

Net

Performance

Fees

of

$1.1

billion

during

the

year.

Appendix

Blackstone

13

Total Segments

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Management and Advisory Fees, Net

Base Management Fees

599,407

$             

586,703

$             

593,996

$             

593,509

$             

623,571

$             

2,196,583

$          

2,397,779

$          

Advisory Fees

742

481

1,277

1,106

343

308,131

3,207

Transaction and Other Fees, Net

72,481

46,118

32,343

27,915

35,275

153,685

141,651

Management Fee Offsets

(22,939)

(20,101)

(15,396)

(20,850)

(23,297)

(93,494)

(79,644)

Total Management and Advisory Fees, Net

649,691

613,201

612,220

601,680

635,892

2,564,905

2,462,993

Performance Fees

Realized Carried Interest

625,610

230,909

323,734

504,022

416,250

3,205,876

1,474,915

Realized Incentive Fees

82,472

28,450

29,363

30,295

83,993

194,746

172,101

Unrealized Carried Interest

(471,222)

47,606

88,268

106,157

239,210

(1,595,296)

481,241

Unrealized Incentive Fees

(42,834)

7,100

8,007

32,172

2,450

(7,249)

49,729

Total Performance Fees

194,026

314,065

449,372

672,646

741,903

1,798,077

2,177,986

Investment Income (Loss)

Realized

86,993

(10,101)

53,670

60,634

95,666

418,808

199,869

Unrealized

(98,428)

(16,549)

6,101

27,253

3,616

(365,959)

20,421

Total Investment Income (Loss)

(11,435)

(26,650)

59,771

87,887

99,282

52,849

220,290

Interest Income and Dividend Revenue

34,665

35,081

35,233

33,081

42,488

131,601

145,883

Other

10,240

(6,248)

8,546

(425)

52,839

8,500

54,712

Total Revenues

877,187

929,449

1,165,142

1,394,869

1,572,404

4,555,932

5,061,864

Expenses

Compensation

240,454

287,403

286,155

268,595

241,063

1,189,219

1,083,216

Performance Fee Compensation

Realized Carried Interest

165,721

58,503

87,581

168,427

141,443

793,800

455,954

Realized Incentive Fees

36,821

14,123

15,251

15,436

33,286

85,946

78,096

Unrealized Carried Interest

(107,820)

30,001

75,202

70,044

137,591

(312,696)

312,838

Unrealized Incentive Fees

(18,940)

3,448

2,689

13,508

1,489

(2,490)

21,134

Total Compensation and Benefits

316,236

393,478

466,878

536,010

554,872

1,753,779

1,951,238

Other Operating Expenses

155,109

148,526

157,254

150,890

172,672

624,357

629,342

Total Expenses

471,345

542,004

624,132

686,900

727,544

2,378,136

2,580,580

Economic Income

405,842

$             

387,445

$             

541,010

$             

707,969

$             

844,860

$             

2,177,796

$         

2,481,284

$         

Economic Net Income

435,691

$             

370,651

$             

519,776

$             

686,984

$             

811,610

$             

2,150,269

$         

2,389,021

$         

Fee Related Earnings

310,879

$             

219,456

$             

226,136

$             

229,035

$             

328,026

$             

935,611

$             

1,002,653

$         

Distributable Earnings

878,027

$             

387,967

$             

503,459

$             

593,028

$             

691,833

$             

3,843,688

$         

2,176,287

$         

Total Assets Under Management

336,384,575

$     

343,705,462

$     

356,281,669

$     

361,040,173

$     

366,553,465

$     

336,384,575

$     

366,553,465

$     

Fee-Earning Assets Under Management

246,146,372

$     

244,452,764

$     

266,006,713

$     

267,757,727

$     

277,092,672

$     

246,146,372

$     

277,092,672

$     

Weighted Average Fee-Earning AUM

242,942,380

$     

244,891,488

$     

259,476,010

$     

268,503,412

$     

274,475,842

$     

240,378,333

$     

264,986,623

$     

LP Capital Invested

14,779,702

$       

6,515,571

$          

3,795,171

$          

4,127,005

$          

7,770,798

$          

30,505,046

$       

22,208,545

$       

Total Capital Invested

15,747,511

$       

6,693,375

$          

4,049,774

$          

4,301,164

$          

8,017,721

$          

32,355,310

$       

23,062,034

$       

Blackstone

14

Private Equity

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Management Fees, Net

Base Management Fees

143,887

$             

130,648

$             

131,477

$             

131,708

$             

160,301

$             

502,640

$             

554,134

$             

Advisory Fees

742

481

1,277

1,106

343

10,561

3,207

Transaction and Other Fees, Net

18,382

8,439

9,812

11,786

8,629

36,258

38,666

Management Fee Offsets

(10,521)

(6,848)

(4,195)

(12,917)

(10,850)

(36,760)

(34,810)

Total Management and Advisory Fees, Net

152,490

132,720

138,371

131,683

158,423

512,699

561,197

Performance Fees

Realized Carried Interest

330,902

30,282

57,056

26,398

131,532

1,474,987

245,268

Unrealized Carried Interest

(169,841)

73,875

85,047

144,597

121,262

(717,955)

424,781

Total Performance Fees

161,061

104,157

142,103

170,995

252,794

757,032

670,049

Investment Income (Loss)

Realized

47,658

(15,357)

22,926

15,469

50,339

189,649

73,377

Unrealized

(14,835)

15,440

(2,766)

8,884

(26,401)

(116,338)

(4,843)

Total Investment Income

32,823

83

20,160

24,353

23,938

73,311

68,534

Interest Income and Dividend Revenue

9,812

9,849

9,516

9,160

11,746

33,218

40,271

Other

4,693

(1,587)

3,395

411

18,239

5,854

20,458

Total Revenues

360,879

245,222

313,545

336,602

465,140

1,382,114

1,360,509

Expenses

Compensation

70,651

80,274

83,140

73,889

73,154

280,248

310,457

Performance Fee Compensation

Realized Carried Interest

94,635

15,427

30,946

13,741

50,768

256,922

110,882

Unrealized Carried Interest

(21,270)

9,296

19,450

69,300

65,891

(10,172)

163,937

Total Compensation and Benefits

144,016

104,997

133,536

156,930

189,813

526,998

585,276

Other Operating Expenses

53,900

48,063

48,371

47,534

52,465

199,158

196,433

Total Expenses

197,916

153,060

181,907

204,464

242,278

726,156

781,709

Economic Income

162,963

$             

92,162

$               

131,638

$             

132,138

$             

222,862

$             

655,958

$             

578,800

$             

Total Assets Under Management

94,280,074

$       

95,466,227

$       

99,685,655

$       

99,722,322

$       

100,192,950

$     

94,280,074

$       

100,192,950

$     

Fee-Earning Assets Under Management

51,451,196

$       

50,228,312

$       

69,467,174

$       

69,347,910

$       

69,113,409

$       

51,451,196

$       

69,113,409

$       

Weighted Average Fee-Earning AUM

51,185,170

$       

51,240,819

$       

63,083,579

$       

69,546,251

$       

69,616,781

$       

51,008,387

$       

66,124,199

$       

LP Capital Invested

4,508,023

$          

1,865,698

$          

1,538,436

$          

1,683,747

$          

2,355,726

$          

10,219,178

$       

7,443,607

$          

Total Capital Invested

5,270,078

$          

1,974,391

$          

1,637,601

$          

1,804,304

$          

2,495,215

$          

11,415,471

$       

7,911,511

$          

Blackstone

15

Real Estate

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Management Fees, Net

Base Management Fees

199,774

$             

199,907

$             

201,004

$             

197,629

$             

196,621

$             

668,575

$             

795,161

$             

Transaction and Other Fees, Net

52,461

35,794

21,112

14,190

24,228

110,577

95,324

Management Fee Offsets

(6,399)

(3,595)

(1,219)

(842)

(1,666)

(26,840)

(7,322)

Total Management Fees, Net

245,836

232,106

220,897

210,977

219,183

752,312

883,163

Performance Fees

Realized Carried Interest

290,450

200,627

266,382

461,980

274,495

1,634,733

1,203,484

Realized Incentive Fees

11,331

4,069

6,099

3,857

15,600

17,153

29,625

Unrealized Carried Interest

(182,061)

(11,522)

(84,875)

(113,449)

58,849

(680,542)

(150,997)

Unrealized Incentive Fees

8,014

9,765

5,942

14,445

9,375

20,802

39,527

Total Performance Fees

127,734

202,939

193,548

366,833

358,319

992,146

1,121,639

Investment Income (Loss)

Realized

38,985

12,975

19,929

46,704

43,104

235,582

122,712

Unrealized

(66,326)

(2,137)

(8,902)

(6,725)

16,645

(231,889)

(1,119)

Total Investment Income (Loss)

(27,341)

10,838

11,027

39,979

59,749

3,693

121,593

Interest Income and Dividend Revenue

12,677

13,188

13,084

12,460

15,508

43,990

54,240

Other

2,416

(1,909)

2,231

(548)

16,749

(1,422)

16,523

Total Revenues

361,322

457,162

440,787

629,701

669,508

1,790,719

2,197,158

Expenses

Compensation

94,808

100,578

102,888

99,886

82,000

358,381

385,352

Performance Fee Compensation

Realized Carried Interest

68,827

43,076

56,441

147,419

85,686

484,037

332,622

Realized Incentive Fees

5,813

2,133

3,300

1,764

4,888

8,678

12,085

Unrealized Carried Interest

(24,686)

27,703

14,257

(38,972)

41,787

(196,347)

44,775

Unrealized Incentive Fees

797

4,158

2,542

6,229

3,943

8,817

16,872

Total Compensation and Benefits

145,559

177,648

179,428

216,326

218,304

663,566

791,706

Other Operating Expenses

53,636

48,097

52,201

47,908

55,756

179,175

203,962

Total Expenses

199,195

225,745

231,629

264,234

274,060

842,741

995,668

Economic Income

162,127

$             

231,417

$             

209,158

$             

365,467

$             

395,448

$             

947,978

$             

1,201,490

$         

Total Assets Under Management

93,917,824

$       

101,107,528

$     

103,197,060

$     

101,876,562

$     

101,963,652

$     

93,917,824

$       

101,963,652

$     

Fee-Earning Assets Under Management

67,345,357

$       

67,298,439

$       

66,744,550

$       

65,785,083

$       

72,030,054

$       

67,345,357

$       

72,030,054

$       

Weighted Average Fee-Earning AUM

65,356,567

$       

66,943,268

$       

67,215,301

$       

66,708,328

$       

68,688,082

$       

63,722,064

$       

67,503,830

$       

LP Capital Invested

7,733,638

$          

3,747,181

$          

1,524,415

$          

1,719,764

$          

3,978,386

$          

16,259,362

$       

10,969,746

$       

Total Capital Invested

7,835,881

$          

3,820,460

$          

1,557,192

$          

1,749,778

$          

4,048,827

$          

16,603,472

$       

11,176,257

$       

Blackstone

16

Hedge Fund Solutions

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Management Fees, Net

Base Management Fees

129,941

$             

130,158

$             

130,123

$             

130,305

$             

131,150

$             

524,386

$             

521,736

$             

Transaction and Other Fees, Net

73

543

(5)

116

407

317

1,061

Management Fee Offsets

1,566

-

-

-

-

171

-

Total Management Fees, Net

131,580

130,701

130,118

130,421

131,557

524,874

522,797

Performance Fees

Realized Incentive Fees

37,983

2,684

(251)

4,572

35,172

68,197

42,177

Unrealized Carried Interest

(599)

32

801

(84)

(245)

2,021

504

Unrealized Incentive Fees

(41,655)

(2,935)

1,036

12,038

(9,354)

(8,084)

785

Total Performance Fees

(4,271)

(219)

1,586

16,526

25,573

62,134

43,466

Investment Income (Loss)

Realized

(141)

(4,745)

(515)

(1,211)

(753)

(12,741)

(7,224)

Unrealized

(1,539)

(12,291)

9,357

12,219

6,177

(1,435)

15,462

Total Investment Income (Loss)

(1,680)

(17,036)

8,842

11,008

5,424

(14,176)

8,238

Interest Income and Dividend Revenue

5,219

5,296

5,205

4,692

7,890

17,274

23,083

Other

1,414

(1,388)

1,125

(260)

8,680

200

8,157

Total Revenues

132,262

117,354

146,876

162,387

179,124

590,306

605,741

Expenses

Compensation

33,131

54,169

44,436

47,206

39,509

179,484

185,320

Performance Fee Compensation

Realized Incentive Fees

15,410

1,863

1,325

2,902

13,307

27,155

19,397

Unrealized Carried Interest

(213)

-

238

35

(92)

823

181

Unrealized Incentive Fees

(15,316)

(1,195)

480

4,557

(3,550)

(2,912)

292

Total Compensation and Benefits

33,012

54,837

46,479

54,700

49,174

204,550

205,190

Other Operating Expenses

24,220

26,146

27,218

27,432

27,840

90,072

108,636

Total Expenses

57,232

80,983

73,697

82,132

77,014

294,622

313,826

Economic Income

75,030

$               

36,371

$               

73,179

$               

80,255

$               

102,110

$             

295,684

$             

291,915

$             

Total Assets Under Management

69,105,425

$       

68,475,416

$       

68,649,878

$       

70,113,508

$       

71,119,718

$       

69,105,425

$       

71,119,718

$       

Fee-Earning Assets Under Management

65,665,439

$       

64,831,253

$       

64,973,999

$       

66,434,971

$       

66,987,553

$       

65,665,439

$       

66,987,553

$       

Weighted Average Fee-Earning AUM

65,802,335

$       

65,123,126

$       

65,520,626

$       

66,600,260

$       

67,993,100

$       

65,203,649

$       

66,585,721

$       

LP Capital Invested

41,332

$               

315,757

$             

32,804

$               

135,105

$             

56,677

$               

243,241

$             

540,343

$             

Total Capital Invested

39,877

$               

329,793

$             

32,809

$               

141,699

$             

56,766

$               

252,368

$             

561,067

$             

Blackstone

17

Credit

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Management Fees, Net

Base Management Fees

125,805

$             

125,990

$             

131,392

$             

133,867

$             

135,499

$             

500,982

$             

526,748

$             

Transaction and Other Fees, Net

1,565

1,342

1,424

1,823

2,011

6,371

6,600

Management Fee Offsets

(7,585)

(9,658)

(9,982)

(7,091)

(10,781)

(30,065)

(37,512)

Total Management Fees, Net

119,785

117,674

122,834

128,599

126,729

477,288

495,836

Performance Fees

Realized Carried Interest

4,258

-

296

15,644

10,223

96,156

26,163

Realized Incentive Fees

33,158

21,697

23,515

21,866

33,221

109,396

100,299

Unrealized Carried Interest

(118,721)

(14,779)

87,295

75,093

59,344

(198,820)

206,953

Unrealized Incentive Fees

(9,193)

270

1,029

5,689

2,429

(19,967)

9,417

Total Performance Fees

(90,498)

7,188

112,135

118,292

105,217

(13,235)

342,832

Investment Income (Loss)

Realized

491

(2,974)

11,330

(328)

2,976

7,186

11,004

Unrealized

(15,728)

(17,561)

8,412

12,875

7,195

(16,258)

10,921

Total Investment Income (Loss)

(15,237)

(20,535)

19,742

12,547

10,171

(9,072)

21,925

Interest Income and Dividend Revenue

6,957

6,748

7,428

6,769

7,344

24,599

28,289

Other

1,717

(1,364)

1,795

(28)

9,171

5,171

9,574

Total Revenues

22,724

109,711

263,934

266,179

258,632

484,751

898,456

Expenses

Compensation

41,864

52,382

55,691

47,614

46,400

190,189

202,087

Performance Fee Compensation

Realized Carried Interest

2,259

-

194

7,267

4,989

52,841

12,450

Realized Incentive Fees

15,598

10,127

10,626

10,770

15,091

50,113

46,614

Unrealized Carried Interest

(61,651)

(6,998)

41,257

39,681

30,005

(107,000)

103,945

Unrealized Incentive Fees

(4,421)

485

(333)

2,722

1,096

(8,395)

3,970

Total Compensation and Benefits

(6,351)

55,996

107,435

108,054

97,581

177,748

369,066

Other Operating Expenses

23,353

26,220

29,464

28,016

36,611

93,626

120,311

Total Expenses

17,002

82,216

136,899

136,070

134,192

271,374

489,377

Economic Income

5,722

$                 

27,495

$               

127,035

$             

130,109

$             

124,440

$             

213,377

$             

409,079

$             

Total Assets Under Management

79,081,252

$       

78,656,291

$       

84,749,076

$       

89,327,781

$       

93,277,145

$       

79,081,252

$       

93,277,145

$       

Fee-Earning Assets Under Management

61,684,380

$       

62,094,760

$       

64,820,990

$       

66,189,763

$       

68,961,656

$       

61,684,380

$       

68,961,656

$       

Weighted Average Fee-Earning AUM

60,598,308

$       

61,584,275

$       

63,656,504

$       

65,648,573

$       

68,177,879

$       

60,444,233

$       

64,772,873

$       

LP Capital Invested

2,496,709

$          

586,935

$             

699,516

$             

588,389

$             

1,380,009

$          

3,783,265

$          

3,254,849

$          

Total Capital Invested

2,601,675

$          

568,731

$             

822,172

$             

605,383

$             

1,416,913

$          

4,083,999

$          

3,413,199

$          

Blackstone

18

Financial Advisory

Note: On October 1, 2015, Blackstone spun-off its Financial Advisory businesses, which did not include Blackstone’s capital markets services business. The results of Blackstone’s

capital markets services business have been reclassified from the Financial Advisory segment to the Private Equity segment. All prior periods have been recast to reflect this

reclassification.

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Revenues

Advisory Fees

-

$                     

-

$                      

-

$                     

-

$                      

-

$                     

297,570

$             

-

$                      

Transaction and Other Fees, Net

-

-

-

-

-

162

-

Total Advisory and Transaction Fees

-

-

-

-

-

297,732

-

Investment (Loss)

Realized

-

-

-

-

-

(868)

-

Unrealized

-

-

-

-

-

(39)

-

Total Investment (Loss)

-

-

-

-

-

(907)

-

Interest Income and Dividend Revenue

-

-

-

-

-

12,520

-

Other

-

-

-

-

-

(1,303)

-

Total Revenues

-

-

-

-

-

308,042

-

Expenses

Compensation

-

-

-

-

-

180,917

-

Total Compensation and Benefits

-

-

-

-

-

180,917

-

Other Operating Expenses

-

-

-

-

-

62,326

-

Total Expenses

-

-

-

-

-

243,243

-

Economic Income

-

$                     

-

$                      

-

$                      

-

$                      

-

$                      

64,799

$               

-

$                     

Blackstone

19

Unitholder Distribution

A

detailed

description

of

Blackstone’s

distribution

policy

and

the

definition

of

Distributable

Earnings

can

be

found

on

page

32,

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

31, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common

unitholders’

share was $52 million for 4Q’16

and $169 million for FY’16.

Generated

$0.55

of

Distributable

Earnings

per

common

unit

during

the

quarter,

up

15%

from

the

prior

quarter,

bringing

the

full

year

amount

to

$1.78

per

common

unit.

Declared

a

quarterly

distribution

of

$0.47

per

common

unit

to

record

holders

as

of

February

6,

2017;

payable

on

February

13,

2017.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

vs. 4Q'15

FY'15

FY'16

vs. FY'15

Distributable Earnings

878,027

$   

387,967

$   

503,459

$   

593,028

$   

691,833

$     

(21)%

3,843,688

$

2,176,287

$

(43)%

Add: Other Payables Attributable

to Common Unitholders

26,918

-

10,438

30,576

41,304

53%

34,206

82,318

141%

DE before Certain Payables

904,945

387,967

513,897

623,604

733,137

(19)%

3,877,894

2,258,605

(42)%

Percent to Common Unitholders

54%

54%

54%

54%

55%

54%

55%

DE before Certain Payables Attributable

to Common Unitholders

487,075

210,286

279,357

339,837

402,677

(17)%

2,075,705

1,232,157

(41)%

Less: Other Payables Attributable

to Common Unitholders

(26,918)

-

(10,438)

(30,576)

(41,304)

53%

(34,206)

(82,318)

141%

DE Attributable to Common Unitholders

460,157

210,286

268,919

309,261

361,373

(21)%

2,041,499

1,149,839

(44)%

DE per Common Unit

0.72

$         

0.33

$         

0.42

$         

0.48

$         

0.55

$           

(24)%

3.23

$         

1.78

$         

(45)%

Less: Retained Capital per Common Unit

(0.11)

$        

(0.05)

$        

(0.06)

$        

(0.07)

$        

(0.08)

$          

(27)%

(0.50)

$        

(0.26)

$        

(48)%

Actual Distribution per Common Unit

0.61

$         

0.28

$         

0.36

$         

0.41

$         

0.47

$           

(23)%

2.73

$         

1.52

$         

(44)%

Record Date

Feb 6, 2017

Payable Date

Feb 13, 2017

Blackstone

20

4Q’16

Total AUM Rollforward

(Dollars in Millions)

FY’16 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

4Q'15

94,280

$     

93,918

$     

69,105

$     

79,081

$     

336,385

$   

Inflows

16,868

19,047

10,783

22,963

69,661

Outflows

(1,545)

(501)

(9,872)

(6,514)

(18,432)

Realizations

(14,222)

(17,926)

(437)

(6,674)

(39,259)

Net Inflows

1,101

621

474

9,775

11,970

Market Activity

4,812

7,425

1,540

4,421

18,199

4Q'16

100,193

$   

101,964

$   

71,120

$     

93,277

$     

366,553

$   

YoY Increase

6%

9%

3%

18%

9%

Credit

Total

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows: U.S. core+ funds ($904 million); BREDS ($610 million); fifth European opportunistic fund ($379 million); recycled capital from BREP

opportunistic funds ($265 million) and BREDS ($144 million).

Realizations: BREP opportunistic funds ($2.7 billion); BREDS ($613 million); BREP co-investment ($247 million).

Market Activity:

Carrying value increases of 4.6% and 2.0% within the opportunistic and core+ funds, respectively.

Inflows: Customized solutions ($1.3 billion); commingled products ($1.0 billion); individual investor and specialized solutions ($857 million).

Outflows:

Commingled products ($1.4 billion); individual investor and specialized solutions ($934 million); customized solutions

($869 million).

Market Activity:

BAAM’s Principal Solutions Composite up 2.3% gross (2.1% net) during the quarter.

Inflows: New mezzanine co-invest fund ($2.9 billion); five new CLOs ($2.6 billion); Long Only ($1.4 billion); BDCs ($549 million).

Outflows: Long Only ($694 million); Hedge fund strategies ($303 million).

Inflows: Tactical Opportunities ($1.6 billion); Core Private Equity ($447 million); BCP co-investment ($380 million); Strategic Partners

($366

million); Total Alternatives Solution ($304 million).

Realizations: Corporate Private Equity funds ($2.5 billion); Strategic Partners ($669 million); Tactical Opportunities ($455 million).

Market Activity: Corporate Private Equity funds ($1.2 billion); Tactical Opportunities ($176 million).

Private

Real

Hedge Fund

Equity

Estate

Solutions

3Q'16

99,722

$    

101,877

$  

70,114

$    

89,328

$    

361,040

$  

Inflows

3,160

2,315

3,152

8,051

16,677

Outflows

(427)

(64)

(3,186)

(2,499)

(6,175)

Realizations

(3,820)

(3,644)

(234)

(2,306)

(10,005)

Net Inflows (Outflows)

(1,087)

(1,394)

(268)

3,246

497

Market Activity

1,557

1,481

1,275

703

5,016

4Q'16

100,193

$  

101,964

$  

71,120

$    

93,277

$    

366,553

$  

QoQ Increase

0%

0%

1%

4%

2%

Credit

Total

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.

4Q’16 Fee-Earning AUM Rollforward

(Dollars in Millions)

FY’16 Fee-Earning AUM Rollforward

(Dollars in Millions)

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows: Fifth European opportunistic fund ($7.2 billion); BPP ($1.9 billion); BREDS ($1.4 billion).

Outflows:

Investment period ended for BREP Europe IV ($2.0 billion).

Realizations: BREDS ($1.0 billion); BREP opportunistic funds ($957 million).

Inflows: Customized solutions ($1.2 billion); commingled products ($1.0 billion); individual investor and specialized solutions ($603 million).

Outflows:

Commingled products ($1.3 billion); individual investor and specialized solutions ($934 million); customized solutions

($869 million).

Inflows: Five new CLOs ($2.6 billion); Long Only ($1.3 billion); Rescue lending ($689 million); BDCs ($549 million); Mezzanine strategies

($508 million).

Outflows: Long Only ($694 million); Hedge fund strategies ($324 million).

Realizations: Capital returned to investors for CLOs outside investment periods ($967 million); Rescue lending ($408 million); dividends from

BDCs ($242 million); Mezzanine strategies ($204 million).

Inflows:

Tactical Opportunities ($1.2 billion); Strategic Partners ($424 million); Total Alternatives Solution ($290 million);

Corporate Private Equity funds ($197 million).

Realizations: Corporate Private Equity  funds ($1.1 billion); Strategic Partners ($748 million); Tactical Opportunities ($249 million).

Fee-Earning Assets Under Management

Private

Real

Hedge Fund

Equity

Estate

Solutions

3Q'16

69,348

$    

65,785

$    

66,435

$    

66,190

$    

267,758

$  

Inflows

2,137

10,718

2,797

5,852

21,503

Outflows

(278)

(2,029)

(3,111)

(1,508)

(6,926)

Realizations

(2,165)

(2,128)

(223)

(1,945)

(6,462)

Net Inflows (Outflows)

(307)

6,561

(536)

2,398

8,116

Market Activity

72

(316)

1,089

374

1,219

4Q'16

69,113

$    

72,030

$    

66,988

$    

68,962

$    

277,093

$  

QoQ Increase (Decrease)

(0)%

9%

1%

4%

3%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

4Q'15

51,451

$    

67,345

$    

65,665

$    

61,684

$    

246,146

$  

Inflows

28,918

14,230

10,132

15,045

68,326

Outflows

(3,154)

(2,180)

(9,744)

(4,757)

(19,835)

Realizations

(8,193)

(8,019)

(417)

(5,818)

(22,447)

Net Inflows (Outflows)

17,570

4,031

(28)

4,470

26,043

Market Activity

92

654

1,350

2,807

4,903

4Q'16

69,113

$    

72,030

$    

66,988

$    

68,962

$    

277,093

$  

YoY Increase

34%

7%

2%

12%

13%

Credit

Total

Blackstone

22

Net Accrued Performance Fees

$3.5

billion

Net Accrued Performance Fees at 4Q’16

$2.91

per unit

Net Accrued Performance Fees at 4Q’16

Net Accrued Performance Fees

(Dollars in Millions, Except per Unit Data)

3Q'16

4Q'16

4Q'16 Per Unit

QoQ Change

Private Equity

BCP IV Carried Interest

158

$                     

186

$                      

0.16

$                     

28

$                        

BCP V Carried Interest

306

323

0.27

17

BCP VI Carried Interest

484

548

0.46

64

BEP I Carried Interest

70

71

0.06

1

BEP II Carried Interest

-

2

-

2

Tactical Opportunities Carried Interest

79

83

0.07

4

BTAS Carried Interest

10

17

0.01

7

Strategic Partners Carried Interest

35

34

0.03

(1)

Other Carried Interest

2

4

-

2

Total Private Equity

1,144

$                 

1,268

$                 

1.06

$                    

124

$                     

Real Estate

BREP IV Carried Interest

8

8

0.01

-

BREP V Carried Interest

331

300

0.25

(31)

BREP VI Carried Interest

488

510

0.43

22

BREP VII Carried Interest

551

504

0.42

(47)

BREP VIII Carried Interest

132

143

0.12

11

BREP Europe III Carried Interest

152

140

0.12

(12)

BREP Europe IV Carried Interest

150

184

0.15

34

BREP Asia Carried Interest

102

79

0.07

(23)

BPP Carried Interest

52

57

0.05

5

BPP Incentive Fees

28

34

0.03

6

BREDS Carried Interest

14

16

0.01

2

BREDS Incentive Fees

2

4

-

2

Asia Platform Incentive Fees

7

7

0.01

-

Total Real Estate

2,017

$                 

1,986

$                 

1.67

$                    

(31)

$                      

Hedge Fund Solutions

Incentive Fees

15

24

0.02

9

Total Hedge Fund Solutions

15

$                       

24

$                        

0.02

$                    

9

$                          

Credit

Carried Interest

139

168

0.14

29

Incentive Fees

20

24

0.02

4

Total Credit

159

$                     

192

$                      

0.16

$                     

33

$                        

Total Blackstone

Carried Interest

3,263

3,377

2.83

114

Incentive Fees

72

93

0.08

21

Net Accrued Performance Fees

3,335

$                 

3,470

$                 

2.91

$                    

135

$                     

Memo: Net Realized Performance Fees

85

$                      

119

$                     

0.10

$                    

35

$                       

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. Net Realized Performance Fees represents Performance Fees realized, but not yet distributed as of the reporting

date and included in the Net Accrued Performance Fee balance. 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 31, Unit Rollforward).

Blackstone

23

Investment

Records

as

of

December

31,

2016

(a)

Continued...

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

24,575

22,632

1.8x

-

2,951,018

1.4x

2,973,650

1.4x

6%

6%

BCP IV (Nov 2002 / Dec 2005)

6,773,182

216,926

1,460,777

1.3x

46%

19,952,530

3.1x

21,413,307

2.8x

41%

36%

BCP V (Dec 2005 / Jan 2011)

21,017,433

1,253,663

5,957,077

1.7x

72%

31,821,687

1.9x

37,778,764

1.9x

9%

8%

BCP VI (Jan 2011 / May 2016)

15,189,353

1,776,532

15,854,868

1.4x

22%

3,942,475

1.8x

19,797,343

1.5x

32%

11%

BEP I (Aug 2011 / Feb 2015)

2,436,078

187,672

2,659,738

1.4x

29%

829,913

1.9x

3,489,651

1.5x

42%

13%

BEP II (Feb 2015 / Feb 2021)

4,951,351

4,089,146

641,600

1.4x

-

-

n/a

641,600

1.4x

n/a

36%

BCP VII (May 2016 / May 2022)

18,898,630

18,254,809

370,284

1.1x

-

-

n/a

370,284

1.1x

n/a

n/m

Total Corporate Private Equity

77,590,960

$   

25,803,323

$   

26,966,976

$   

1.4x

34%

73,680,868

$   

2.2x

100,647,844

$ 

1.9x

18%

15%

Tactical Opportunities

13,447,861

6,215,643

7,824,565

1.2x

6%

2,247,290

1.5x

10,071,855

1.2x

26%

11%

Tactical Opportunities Co-Investment and Other

2,873,160

1,056,397

1,752,248

1.1x

-

308,807

1.4x

2,061,055

1.1x

n/a

9%

Strategic Partners I-V and Co-Investment (e)

12,143,335

2,018,981

3,120,054

n/m

-

14,058,294

n/m

17,178,348

1.5x

n/a

13%

Strategic Partners VI LBO, RE and SMA (e)

7,402,171

2,505,871

3,532,679

n/m

-

1,009,080

n/m

4,541,759

1.3x

n/a

24%

Strategic Partners VII (e)

7,489,970

6,822,033

374,012

n/m

-

-

n/a

374,012

1.0x

n/a

n/m

BCEP (f)

3,871,770

3,871,770

-

n/a

-

-

n/a

-

n/a

n/a

n/a

Other Funds and Co-Investment (g)

1,799,293

760,624

45,093

0.9x

77%

618,429

1.0x

663,522

1.0x

n/m

n/m

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

-

2,531,614

2.1x

2,531,614

2.1x

19%

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

-

-

n/a

-

3,330,406

2.4x

3,330,406

2.4x

21%

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

-

374,698

0.5x

28%

4,160,509

2.2x

4,535,207

1.7x

31%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

-

2,771,759

2.2x

24%

10,308,751

2.3x

13,080,510

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

554,233

6,109,036

2.4x

68%

20,486,220

2.4x

26,595,256

2.4x

14%

13%

BREP VII (Aug 2011 / Apr 2015)

13,493,022

2,291,266

14,296,739

1.6x

-

10,966,655

1.9x

25,263,394

1.7x

29%

19%

BREP VIII (Apr 2015 / Oct 2020)

16,152,228

10,654,202

7,015,649

1.3x

1%

1,753,982

1.2x

8,769,631

1.3x

17%

19%

Total Global BREP

51,686,275

$   

13,499,701

$   

30,567,881

$   

1.6x

16%

55,211,035

$   

2.2x

85,778,916

$   

1.9x

20%

16%

Euro

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

-

€

-

€

n/a

-

1,369,016

€

2.1x

1,369,016

€

2.1x

23%

23%

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

1,629,748

-

577,893

1.3x

70%

1,772,031

1.9x

2,349,924

1.7x

8%

6%

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

476,226

2,847,028

1.8x

-

2,920,752

2.2x

5,767,780

2.0x

23%

16%

BREP Europe IV (Sep 2013 / Dec 2016)

6,726,403

1,677,028

7,449,000

1.4x

3%

893,829

1.5x

8,342,829

1.4x

24%

14%

BREP Europe V (Dec 2016 / Jun 2022)

6,588,051

6,688,769

133,800

1.0x

-

-

n/a

133,800

1.0x

n/a

n/a

Total Euro BREP

18,973,514

€

8,842,023

€

11,007,721

€

1.4x

6%

6,955,628

€

2.0x

17,963,349

€

1.6x

16%

13%

BREP Co-Investment (h)

6,819,065

$     

146,573

$         

3,997,959

$     

1.8x

40%

9,162,086

$     

2.1x

13,160,045

$   

2.0x

17%

16%

BREP Asia (Jun 2013 / Dec 2017)

5,084,905

3,054,509

2,931,392

1.4x

1%

1,373,173

1.6x

4,304,565

1.5x

17%

17%

Total BREP

86,954,232

$   

25,999,938

$   

51,144,228

$   

1.5x

15%

74,961,402

$   

2.1x

126,105,630

$ 

1.8x

19%

16%

BPP (i)

13,027,535

$   

2,394,321

$     

12,533,099

$   

1.2x

-

107,286

$         

1.9x

12,640,385

$   

1.2x

36%

13%

BREDS (j)

11,576,788

$   

6,996,094

$     

2,352,803

$     

1.2x

-

6,632,401

$     

1.3x

8,985,204

$     

1.3x

13%

11%

Blackstone

24

Investment

Records

as

of

December

31,

2016

(a)

–

Continued

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

and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.

(c)

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

(d)

Net

Internal

Rate

of

Return

(“IRR”)

represents

the

annualized

inception

to

December

31,

2016

IRR

on

total

invested

capital

based

on

realized

proceeds

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

(e)

Realizations

are

treated

as

return

of

capital

until

fully

recovered

and

therefore

unrealized

and

realized

MOICs

are

not

meaningful.

(f)

BCEP, or Blackstone Core Equity Partners, is a core private equity fund which invests with a more modest risk profile and longer hold period.

(g)

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

(h)

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.

(i)

BPP represents the core+ real estate funds which invest with a more modest risk profile and lower leverage.

(j)

Excludes Capital Trust drawdown funds.

(k)

BSCH,

or

Blackstone

Strategic

Capital

Holdings,

is

a

permanent

capital

vehicle

focused

on

acquiring

strategic

minority

positions

in

alternative

asset

managers.

(l)

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

presented.

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

Hedge Fund Solutions

BSCH (Dec 2013 / Jun 2020) (k)

3,300,600

$     

2,630,702

$     

677,437

$         

1.0x

-

88,515

$           

n/a

765,952

$         

1.2x

n/a

3%

BSCH Co-Investment

75,500

31,237

44,495

1.0x

-

1,427

n/a

45,922

1.0x

n/a

0%

Total Hedge Fund Solutions

3,376,100

$     

2,661,939

$     

721,932

$         

1.0x

-

89,942

$           

n/a

811,874

$         

1.2x

n/a

2%

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

$     

99,280

$           

194,993

$         

1.4x

-

4,635,213

$     

1.6x

4,830,206

$     

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

990,002

3,354,761

1.1x

-

2,177,780

1.5x

5,532,541

1.2x

n/a

13%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

6,331,744

316,601

1.0x

-

-

n/a

316,601

1.0x

n/a

n/m

Rescue Lending I (Sep 2009 / May 2013)

3,253,143

400,900

1,096,764

1.1x

-

4,826,251

1.5x

5,923,015

1.4x

n/a

11%

Rescue Lending II (Jun 2013 / Jun 2018)

5,125,000

2,072,032

3,703,422

1.2x

-

551,534

1.2x

4,254,956

1.2x

n/a

18%

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,866

2,541,537

438,805

1.2x

-

158,347

1.6x

597,152

1.3x

n/a

36%

Euro

European Senior Debt Fund (Feb 2015 / Feb 2018)

1,964,689

€

2,960,224

€

855,997

€

1.0x

-

142,288

€

1.2x

998,285

€

1.0x

n/a

0%

Total Credit

26,260,552

$   

15,567,412

$   

10,011,237

$   

1.1x

-

12,506,594

$   

1.5x

22,517,831

$   

1.3x

n/a

14%

Blackstone

25

Reconciliation of GAAP to Non-GAAP Measures

Notes on page 26.

(Dollars in Thousands)

4Q'15

1Q'16

(m)

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Net Income Attributable to The Blackstone Group L.P.

200,870

$    

159,753

$    

198,626

$    

312,905

$    

367,951

$    

709,789

$    

1,039,235

$

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

150,734

131,202

201,805

285,267

342,010

683,516

960,284

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

40,717

40,086

64,729

82,653

58,684

219,900

246,152

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

2,358

(6,401)

(2,049)

10,764

1,663

11,145

3,977

Net Income

394,679

$    

324,640

$    

463,111

$    

691,589

$    

770,308

$    

1,624,350

$

2,249,648

$

Provision for Taxes

46,230

9,146

47,415

27,714

48,087

190,398

132,362

Income Before Provision for Taxes

440,909

$    

333,786

$    

510,526

$    

719,303

$    

818,395

$    

1,814,748

$

2,382,010

$

Transaction-Related Charges

(a)

(15,279)

64,136

69,956

60,029

70,816

489,563

264,937

Amortization of Intangibles

(b)

23,287

23,208

23,208

22,054

15,996

104,530

84,466

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

(c)

(43,075)

(33,685)

(62,680)

(93,417)

(60,347)

(231,045)

(250,129)

Economic Income

405,842

$    

387,445

$    

541,010

$    

707,969

$    

844,860

$    

2,177,796

$

2,481,284

$

Taxes

(d)

29,849

(16,794)

(21,234)

(20,985)

(33,250)

(27,527)

(92,263)

Economic Net Income

435,691

$    

370,651

$    

519,776

$    

686,984

$    

811,610

$    

2,150,269

$

2,389,021

$

Taxes

(d)

(29,849)

16,794

21,234

20,985

33,250

27,527

92,263

Performance Fee Adjustment

(e)

(194,026)

(314,065)

(449,372)

(672,646)

(741,903)

(1,798,077)

(2,177,986)

Investment (Income) Loss Adjustment

(f)

11,435

26,650

(59,771)

(87,887)

(99,282)

(52,849)

(220,290)

Net Interest Loss

(g)

11,846

13,351

13,546

14,184

10,542

44,181

51,623

Performance Fee Compensation and Benefits Adjustment

(h)

75,782

106,075

180,723

267,415

313,809

564,560

868,022

Fee Related Earnings

310,879

$    

219,456

$    

226,136

$    

229,035

$    

328,026

$    

935,611

$    

1,002,653

$

Net Realized Performance Fees

(i)

505,540

186,733

250,265

350,454

325,514

2,520,876

1,112,966

Realized Investment Income (Loss)

(j)

86,993

(10,101)

53,670

60,634

95,666

418,808

199,869

Net Interest (Loss)

(g)

(11,846)

(13,351)

(13,546)

(14,184)

(10,542)

(44,181)

(51,623)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(k)

(25,819)

(16,794)

(31,588)

(51,089)

(67,678)

(90,470)

(167,149)

Equity-Based Compensation

(l)

12,280

22,024

18,522

18,178

20,847

103,044

79,571

Distributable Earnings

878,027

$    

387,967

$    

503,459

$    

593,028

$    

691,833

$    

3,843,688

$

2,176,287

$

Interest Expense

46,511

48,432

48,779

47,265

53,030

175,782

197,506

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(k)

25,819

16,794

31,588

51,089

67,678

90,470

167,149

Depreciation and Amortization

6,852

6,292

6,331

7,338

12,010

27,213

31,971

Adjusted EBITDA

957,209

$    

459,485

$    

590,157

$    

698,720

$    

824,551

$    

4,137,153

$

2,572,913

$

Blackstone

26

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Notes

Note:

See page 32, 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 total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss)

Before Provision 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. Equals the sum of Net Realized Incentive Fees and Net Realized Carried Interest.

(j)

Represents the adjustment for Blackstone’s Realized Investment Income (Loss).

(k)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the total GAAP tax provision adjusted to

include only the current tax provision (benefit)

calculated on Income (Loss) Before Provision for Taxes and the Payable Under Tax

Receivable Agreement.

(l)

Represents equity-based award expense included in EI, which excludes all transaction-related equity-based charges.

(m)

Blackstone adopted new GAAP stock compensation guidance in 2Q’16 as of January 1, 2016. Adoption changed Provision for Taxes,

Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted-Average Units

Outstanding

-

Diluted in 1Q’16. Such amounts have been recast in this presentation from the amounts originally reported in 1Q’16.

Blackstone

27

Reconciliation of GAAP to Total Segment Measures

Notes on page 28.

Continued...

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Fee Revenues

GAAP

Management and Advisory Fees, Net

648,009

$        

608,906

$        

607,823

$        

596,154

$        

630,092

$        

2,542,505

$     

2,442,975

$     

Other

10,260

(5,612)

7,935

(423)

52,853

7,782

54,753

GAAP

658,269

$        

603,294

$        

615,758

$        

595,731

$        

682,945

$        

2,550,287

$     

2,497,728

$     

Elimination Adjustment

(a)

1,662

3,659

5,008

5,524

5,786

23,118

19,977

Segment

Management and Advisory Fees, Net

649,691

613,201

612,220

601,680

635,892

2,564,905

2,462,993

Other

10,240

(6,248)

8,546

(425)

52,839

8,500

54,712

Total Segment

659,931

$        

606,953

$        

620,766

$        

601,255

$        

688,731

$        

2,573,405

$     

2,517,705

$     

Performance Fees

GAAP

193,361

314,493

449,243

671,032

741,563

1,796,666

2,176,331

Elimination Adjustment

(a)

665

(428)

129

1,614

340

1,411

1,655

Total Segment

194,026

$        

314,065

$        

449,372

$        

672,646

$        

741,903

$        

1,798,077

$     

2,177,986

$     

Investment Income (Loss)

GAAP

20,961

(8,508)

105,139

143,103

116,317

204,642

356,051

Consolidation and Elimination Adjustment

(b)

(32,396)

(18,142)

(45,368)

(55,216)

(17,035)

(151,793)

(135,761)

Total Segment

(11,435)

$         

(26,650)

$         

59,771

$          

87,887

$          

99,282

$          

52,849

$          

220,290

$        

Interest and Dividend Revenue

GAAP

24,828

23,075

22,286

21,819

28,544

94,957

95,724

Elimination Adjustment

(c)

9,837

12,006

12,947

11,262

13,944

36,644

50,159

Total Segment

34,665

$          

35,081

$          

35,233

$          

33,081

$          

42,488

$          

131,601

$        

145,883

$        

Total Revenues

GAAP

897,419

932,354

1,192,426

1,431,685

1,569,369

4,646,552

5,125,834

Consolidation and Elimination Adjustment

(d)

(20,232)

(2,905)

(27,284)

(36,816)

3,035

(90,620)

(63,970)

Total Segment

877,187

$        

929,449

$        

1,165,142

$     

1,394,869

$     

1,572,404

$     

4,555,932

$     

5,061,864

$     

Compensation

GAAP

299,958

346,003

355,424

329,634

304,347

1,726,191

1,335,408

Consolidation Adjustment

(e)

(59,504)

(58,600)

(69,269)

(61,039)

(63,284)

(536,972)

(252,192)

Total Segment

240,454

$        

287,403

$        

286,155

$        

268,595

$        

241,063

$        

1,189,219

$     

1,083,216

$     

Blackstone

28

Reconciliation

of

GAAP

to

Total

Segment

Measures

–

Continued

This analysis reconciles the summarized components of Total Segments (pages 3-7) to their respective Total Segment amounts (page 13) and to their equivalent GAAP

measures

as

reported

on

the

Consolidated

Statements

of

Operations

(page

1).

(a)

Represents the add back of the management and performance fees earned from consolidated Blackstone Funds which have been eliminated in consolidation.

(b)

Represents the add back of investment income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in

consolidation

and

the

inclusion

of

investment

income

on

non-consolidated

Blackstone

Funds

which

in

GAAP

is

recorded

as

Other

Income

(Loss)

-

Net

Gains

(Losses) from Fund Investment Activities.

(c)

Represents the elimination of inter-segment interest income and the related expense.

(d)

Represents the total consolidation and elimination adjustments for Total Revenues and Total Expenses, respectively.

(e)

Represents transaction-based equity compensation that is not recorded in the segments.

(f)

Represents the add back for the amortization of transaction based intangibles, which is not recorded in the segments, and the elimination of inter-segment

interest expense.

(g)

Represents the reversal of Fund Expenses which are attributable to consolidated Blackstone Funds and not a component of the segments.

(h)

Represents the inclusion of Other Income (Loss) which is a consolidation amount not recorded in the segments.

(i)

Represents the total consolidation and elimination adjustment between GAAP and Total Segments.

(Dollars in Thousands)

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

FY'15

FY'16

Other Operating Expenses

GAAP

General, Administrative and Other

139,607

$        

123,045

$        

130,988

$        

124,322

$        

141,954

$        

576,103

$        

520,309

$        

Interest Expense

38,878

37,356

36,878

37,278

41,142

144,522

152,654

GAAP

178,485

$        

160,401

$        

167,866

$        

161,600

$        

183,096

$        

720,625

$        

672,963

$        

Consolidation

and

Elimination

Adjustment

(f)

(23,376)

(11,875)

(10,612)

(10,710)

(10,424)

(96,268)

(43,621)

Total Segment

155,109

$        

148,526

$        

157,254

$        

150,890

$        

172,672

$        

624,357

$        

629,342

$        

Total Expenses

GAAP

556,878

617,710

712,603

773,777

824,484

3,090,875

2,928,574

Less:

GAAP

Fund

Expenses

(g)

(2,654)

(5,229)

(8,592)

(15,128)

(23,232)

(79,499)

(52,181)

Consolidation

and

Elimination

Adjustment

(d)

(82,879)

(70,477)

(79,879)

(71,749)

(73,708)

(633,240)

(295,813)

Total Segment

471,345

$        

542,004

$        

624,132

$        

686,900

$        

727,544

$        

2,378,136

$     

2,580,580

$     

GAAP Income (Loss) Before Provision for Taxes to Total Segment Economic Income

GAAP

Revenues Less Expenses

340,541

314,644

479,823

657,908

744,885

1,555,677

2,197,260

Other

Income

(h)

100,368

19,142

30,703

61,395

73,510

259,071

184,750

Income Before Provision for Taxes

440,909

333,786

510,526

719,303

818,395

1,814,748

2,382,010

Consolidation

and

Elimination

Adjustment

(i)

(35,067)

53,659

30,484

(11,334)

26,465

363,048

99,274

Total Segment

405,842

$        

387,445

$        

541,010

$        

707,969

$        

844,860

$        

2,177,796

$     

2,481,284

$     

Blackstone

29

Walkdown of Financial Metrics

See page 30, 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

13,

Total

Segments.

4Q’16

Fee

Related

Earnings

per

Unit

is

based

on

end

of

period

DE

Units

Outstanding;

4Q’16

DE

per

Unit

is

based

on

DE

attributable

to

Common

Unitholders

(see

page

19,

Unitholder Distribution) and end of period Total Common Units Outstanding; and 4Q’16 ENI per Unit is based on Weighted-Average ENI Adjusted Units. FY’16 per Unit represents the sum of the last

four quarters. See page 31, Unit Rollforward.

(Dollars in Thousands, Except per Unit Data)

4Q'16

FY'16

Results

Per Unit

Results

Per Unit

Base Management Fees

623,571

$         

2,397,779

$     

Advisory Fees

343

3,207

Transaction and Other Fees, Net

35,275

141,651

Management Fee Offsets

(23,297)

(79,644)

Other Revenue

52,839

54,712

Compensation

(241,063)

(1,083,216)

Non-Interest Operating Expenses

(119,642)

(431,836)

Fee Related Earnings

328,026

$         

0.28

$               

1,002,653

$     

0.84

$               

Net Realized Incentive Fees

50,707

94,005

Net Realized Carried Interest

274,807

1,018,961

Realized Investment Income

95,666

199,869

Net Interest (Loss)

(10,542)

(51,623)

Taxes and Related Payables

(67,678)

(167,149)

Equity-Based Compensation

20,847

79,571

Distributable Earnings

691,833

$         

0.55

$               

2,176,287

$     

1.78

$               

Net Unrealized Incentive Fees

961

28,595

Net Unrealized Carried Interest

101,619

168,403

Unrealized Investment Income

3,616

20,421

Add Back: Related Payables

34,428

74,886

Less: Equity-Based Compensation

(20,847)

(79,571)

Economic Net Income

811,610

$         

0.68

$               

2,389,021

$     

2.00

$               

Blackstone

30

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, which excludes all transaction-related equity-based charges.

(b)

See page 25, 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)

4Q'16

FY'16

Other Operating Expenses

172,672

$      

629,342

$      

Less: Interest Expense

(53,030)

(197,506)

Non-Interest Operating Expenses

119,642

$     

431,836

$     

Realized Incentive Fees

83,993

172,101

Less: Realized Incentive Fee Compensation

(33,286)

(78,096)

Net Realized Incentive Fees

50,707

$        

94,005

$        

Realized Carried Interest

416,250

1,474,915

Less: Realized Carried Interest Compensation

(141,443)

(455,954)

Net Realized Carried Interest

274,807

$     

1,018,961

$  

Interest Income and Dividend Revenue

42,488

145,883

Less: Interest Expense

(53,030)

(197,506)

Net Interest (Loss)

(10,542)

$      

(51,623)

$      

Equity-Based Compensation

(a)

20,847

$        

79,571

$        

Taxes and Related Payables

(b)

(67,678)

$      

(167,149)

$    

Unrealized Incentive Fees

2,450

49,729

Less: Unrealized Incentive Fee Compensation

(1,489)

(21,134)

Net Unrealized Incentive Fees

961

$              

28,595

$        

Unrealized Carried Interest

239,210

481,241

Less: Unrealized Carried Interest Compensation

(137,591)

(312,838)

Net Unrealized Carried Interest

101,619

$     

168,403

$     

Related Payables

(c)

34,428

$        

74,886

$        

Blackstone

31

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.

(a)

See

page

26

note

(m)

for

information

on

the

1Q’16

GAAP

Weighted-Average

Units

Outstanding

-

Diluted.

4Q'15

1Q'16

(a)

2Q'16

3Q'16

4Q'16

Total GAAP Weighted-Average Common Units Outstanding - Basic

641,134,086

644,897,849

646,933,698

650,917,510

655,074,617

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

1,794,046

1,332,772

1,309,402

1,495,331

1,643,603

Weighted-Average Blackstone Holdings Partnership Units

547,495,655

-

546,235,112

543,392,474

539,139,078

Total GAAP Weighted-Average Units Outstanding - Diluted

1,190,423,787

646,230,621

1,194,478,212

1,195,805,315

1,195,857,298

Adjustments:

Weighted-Average Blackstone Holdings Partnership Units

-

548,042,780

-

-

-

Weighted-Average Economic Net Income Adjusted Units

1,190,423,787

1,194,273,401

1,194,478,212

1,195,805,315

1,195,857,298

Economic Net Income Adjusted Units, End of Period

1,190,361,741

1,194,083,538

1,194,567,513

1,195,797,124

1,196,223,079

Total Common Units Outstanding

637,410,828

643,789,108

645,810,990

649,587,761

654,833,530

Adjustments:

Blackstone Holdings Partnership Units

546,844,892

543,969,293

542,206,078

542,410,515

537,393,402

Distributable Earnings Units Outstanding

1,184,255,720

1,187,758,401

1,188,017,068

1,191,998,276

1,192,226,932

Blackstone

32

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

four

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 total GAAP tax provision adjusted to

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

•

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

related to performance fees and related performance fee compensation, (b) income earned from Blackstone’s investments in the Blackstone Funds

and (c) net interest income (loss). 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) 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

Under

the

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 supplemental non-GAAP

measure derived from segment reported results and may be used 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 to common unitholders 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 its distribution policy at any

time, including, without limitation, to eliminate such distributions entirely.

Blackstone

33

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, 2015, 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.