Blackstone 8K Reports First Quarter 2017 Results | BX 20 Apr 17

Exhibit 99.1

LOGO

Blackstone Reports First Quarter 2017 Results

New York, April 20, 2017: Blackstone (NYSE:BX) today reported its first quarter 2017 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported outstanding results in the first quarter, marked by strong returns across our major fund strategies as well as our best quarter for realizations on record. The result was a more than doubling of revenue and earnings versus the prior-year period, and our second best quarterly distribution ever, at $0.87 per common unit. In total, we will have distributed nearly $14 per common unit of value since the IPO, including $2.50 per year on average over the past three years^(a), making Blackstone consistently one of the highest yielding large-capitalization companies in the world.”

Blackstone issued a full detailed presentation of its first quarter 2017 results, which can be viewed atwww.blackstone.com.

Distribution

Blackstone has declared a quarterly distribution of $0.87 per common unit to record holders of common units at the close of business on May 1, 2017. This distribution will be paid on May 8, 2017.

Quarterly Investor Call Details

Blackstone will host a conference call on April 20, 2017 at 11:00 a.m. ET to discuss first quarter 2017 results. The conference call can be accessed via the Shareholders 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 188 08 979#.

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.

^(a)	Includes $0.59 per common unit of value for the spin of PJT Partners on October 1, 2015, which increases the 3-year average of value distributed by $0.20/year.

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, 2016, 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

Blackstone’s First Quarter 2017 Earnings

April 20, 2017

Blackstone

% Change

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

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Revenues

Management and Advisory Fees, Net

608,906

642,142

2,534,643

2,476,211

(2)%

Performance Fees

Realized Carried Interest

230,909

1,111,256

381%

2,228,605

2,355,177

Realized Incentive Fees

28,419

47,160

66%

192,019

189,278

(1)%

Unrealized Carried Interest

47,586

(154,683)

n/m

(1,921,428)

279,035

n/m

Unrealized Incentive Fees

7,579

59,409

684%

(61,145)

101,490

n/m

Total Performance Fees

314,493

1,063,142

238%

438,051

2,924,980

568%

Investment Income (Loss)

Realized

(12,001)

251,344

n/m

355,240

542,082

53%

Unrealized

3,493

(40,188)

n/m

(365,309)

33,633

n/m

Total Investment Income (Loss)

(8,508)

211,156

n/m

(10,069)

575,715

n/m

Interest and Dividend Revenue

23,075

28,495

23%

96,112

101,144

Other

(5,612)

(4,212)

(25)%

7,811

56,153

619%

Total Revenues

932,354

1,940,723

108%

3,066,548

6,134,203

100%

Expenses

Compensation and Benefits

Compensation

346,003

351,589

1,512,635

1,340,994

(11)%

Performance Fee Compensation

Realized Carried Interest

58,504

366,191

526%

560,057

763,641

36%

Realized Incentive Fees

14,124

22,752

61%

87,842

86,724

(1)%

Unrealized Carried Interest

30,001

(4,387)

n/m

(357,075)

278,450

n/m

Unrealized Incentive Fees

3,448

23,139

571%

(24,003)

40,825

n/m

Total Compensation and Benefits

452,080

759,284

68%

1,779,456

2,510,634

41%

General, Administrative and Other

123,045

106,044

(14)%

568,175

503,308

(11)%

Interest Expense

37,356

40,246

150,508

155,544

Fund Expenses

5,229

24,076

360%

67,878

71,028

Total Expenses

617,710

929,650

50%

2,566,017

3,240,514

26%

Other Income

Reversal of Tax Receivable Agreement Liability

n/m

82,707

(100)%

Net Gains from Fund Investment Activities

19,142

66,132

245%

101,951

231,740

127%

Income Before Provision for Taxes

333,786

1,077,205

223%

685,189

3,125,429

356%

Provision for Taxes

9,146

57,437

528%

100,200

180,653

80%

Net Income

324,640

1,019,768

214%

584,989

2,944,776

403%

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

(6,401)

2,000

n/m

(2,783)

12,378

n/m

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

40,086

138,685

246%

178,190

344,751

93%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

131,202

417,258

218%

169,488

1,246,340

635%

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

159,753

461,825

189%

240,094

1,341,307

459%

Net Income per Common Unit, Basic

0.25

0.70

180%

0.38

2.05

439%

Net Income per Common Unit, Diluted

0.23

0.69

200%

0.34

2.02

494%

Blackstone’s First Quarter 2017 GAAP Results

GAAP

Net

Income

was

$1.0

billion

for

the

quarter,

and

$2.9

billion

over

the

last

twelve

months

(“LTM”).

GAAP

Net

Income

Attributable

The

Blackstone

Group

L.P.

was

$462

million

for

the

quarter

and

$1.3

billion

over

the

LTM.

n/m = not meaningful.

Blackstone

Blackstone’s First Quarter 2017 Highlights

Economic

Net

Income

(“ENI”)

was

$986

million

($0.82/unit)

the

quarter,

166%

year-over-year,

$1.9

billion

Total

Segment

Revenues

from

management

fee

growth

and

strong

fund

returns.

•

ENI

was

$3.0

billion

($2.51/unit)

for

the

LTM

$6.0

billion

Total

Segment

Revenues.

Distributable

Earnings

(“DE”)

was

$1.2

billion

($1.02/unit)

the

quarter,

with

record

realizations

resulting

$1.2

billion

Realized

Performance

Fees.

•

was

$3.0

billion

($2.42/unit)

for

the

LTM

$2.5

billion

Realized

Performance

Fees.

Fee

Earnings

(“FRE”)

was

$291

million

the

quarter,

18%

year-over-year,

$650

million

Management

and

Advisory

Fees,

Net.

•

FRE

was

$1.1

billion

for

the

LTM,

year-over-year,

$2.5

billion

Management

and

Advisory

Fees,

Net,

despite

the

spin-off

Blackstone’s

Advisory

businesses

completed

the

prior

LTM

period.

Total

Assets

Under

Management

(“AUM”)

grew

record

$368.2

billion

through

combination

continued

fundraising,

organic

platform

expansion

and

strong

fund

appreciation.

•

Gross

inflows

were

$14.0

billion

the

quarter,

bringing

LTM

inflows

$66.5

billion.

•

Total

AUM

increased

year-over-year

and

Fee-Earning

AUM

was

15%

$280.2

billion.

Capital

deployed

$11.7

billion

the

quarter

and

$28.1

billion

the

LTM

across

the

businesses,

with

significant

deal

flow

outside

the

U.S.

Blackstone

declared

first

quarter

distribution

$0.87

per

common

unit

payable

May

2017.

Fee Related Earnings, a Total Segment measure, has been redefined to exclude all Equity-Based Compensation and Other Revenue. Distributable Earnings, a Total Segment measure,

has been redefined to exclude Other Revenue. All prior periods have been recast to reflect this definition.

Blackstone

Blackstone’s First Quarter 2017 Segment Earnings

% Change

(Dollars in Thousands, Except per Unit Data)

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Management and Advisory Fees, Net

613,201

649,581

2,558,343

2,499,373

(2)%

Performance Fees

314,065

1,063,728

239%

438,406

2,927,649

568%

Investment Income (Loss)

(26,650)

103,959

n/m

(163,442)

350,899

n/m

Interest Income and Dividend Revenue

35,081

45,876

31%

136,231

156,678

15%

Other

(6,248)

(8,287)

n/m

7,124

52,673

639%

Total Revenues

929,449

1,854,857

100%

2,976,662

5,987,272

101%

Total Expenses

542,004

850,014

57%

2,043,204

2,888,590

41%

Taxes

16,794

18,805

12%

34,602

94,274

172%

Economic Net Income

370,651

986,038

166%

898,856

3,004,408

234%

ENI per Unit

0.31

0.82

165%

0.76

2.51

230%

Fee Related Earnings

246,667

290,742

18%

1,042,935

1,065,763

Distributable Earnings

394,215

1,230,138

212%

2,984,324

2,957,498

(1)%

DE per Common Unit

0.33

1.02

209%

2.50

2.42

(3)%

Total AUM

343,705,462

368,196,917

343,705,462

368,196,917

Fee-Earning AUM

244,452,764

280,215,551

15%

244,452,764

280,215,551

15%

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. Fee Related Earnings,

a Total Segment measure, has been redefined to exclude all Equity-Based Compensation and Other Revenue. Distributable Earnings, a Total Segment measure, has been redefined to exclude Other Revenue. Calculated under

the prior methodology, the 1Q’17 FRE and DE would have been $35 million lower and $8 million lower, respectively, and the 1Q’17 LTM FRE and DE would have been $27 million lower and $53 million higher, respectively. All

prior periods have been recast to reflect this definition. Please see page 34 for Blackstone’s Definitions and the 1Q’17 Supplemental Financial Data available at ir.blackstone.com for additional historical periods.

Blackstone

Private Equity

6.9%

1Q’17 increase in Corporate

Private Equity carrying value

$6.2

billion

1Q’17 Realizations

$99.7

billion

Total AUM up 4% YoY

Corporate

Private

Equity

carrying

value

increased

6.9%

the

quarter,

driven

appreciation

the

private

and

public

investment

portfolio.

Record

realizations

$6.2

billion

the

quarter

were

primarily

driven

private

and

public

sales

across

the

segment,

bringing

LTM

realizations

$18.3

billion.

Invested

$6.7

billion

the

quarter,

primarily

the

healthcare

and

energy

sectors.

•

Committed

additional

$1.0

billion

during

the

quarter.

Total

AUM

increased

year-over-year

$99.7

billion,

driven

fundraising

across

all

strategies,

which

than

offset

significant

realization

activity.

•

AUM

inflows

were

$2.6

billion

the

quarter

bringing

LTM

inflows

$16.5

billion.

Fee-Earning

AUM

increased

36%

year-over-year

$68.2

billion

due

the

commencement

the

investment

periods

for

flagship

funds.

% Change

(Dollars in Thousands)

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Management and Advisory Fees, Net

132,720

182,474

37%

519,197

610,951

18%

Performance Fees

104,157

397,848

282%

(88,611)

963,740

n/m

Investment Income (Loss)

40,065

n/m

(2,909)

108,516

n/m

Interest Income and Dividend Revenue

9,849

10,922

11%

35,449

41,344

17%

Other

(1,587)

(1,800)

13%

6,092

20,245

232%

Total Revenues

245,222

629,509

157%

469,218

1,744,796

272%

Compensation

80,274

83,742

289,450

313,925

Performance Fee Compensation

24,723

142,277

475%

53,871

392,373

628%

Other Operating Expenses

48,063

42,822

(11)%

208,346

191,192

(8)%

Total Expenses

153,060

268,841

76%

551,667

897,490

63%

Economic Income (Loss)

92,162

360,668

291%

(82,449)

847,306

n/m

Total AUM

95,466,227

99,711,406

95,466,227

99,711,406

Fee-Earning AUM

50,228,312

68,231,620

36%

50,228,312

68,231,620

36%

Blackstone

Real Estate

5.7%

1Q’17 increase in opportunistic

funds’ carrying value

$102.1

billion

Total AUM up 1% YoY

Opportunistic

funds’

carrying

value

was

5.7%

the

quarter

primarily

due

gains

private

investment

values;

core+

funds’

carrying

value

was

3.1%

the

quarter.

Realizations

$6.7

billion

the

quarter,

driven

the

sale

25%

stake

Hilton

and

the

disposition

Japanese

residential

property

portfolio.

•

Completed

the

$1.8

billion

initial

public

offering

for

Invitation

Homes,

the

second

largest

REIT

IPO

ever.

Invested

$2.7

billion

the

quarter

including

OfficeFirst,

leading

office-focused

German

real

estate

business.

•

Committed an additional $1.4 billion, including for a 2.4 million square meter European urban logistics portfolio.

Total

AUM

reached

$102.1

billion

during

the

quarter

despite

$21.2

billion

realizations

over

the

LTM.

•

Raised

$2.5

billion

during

the

quarter,

including

$1.1

billion

core+

funds,

$630

million

BREDS

and

$478

million

from

the

initial

launch

Blackstone’s

non-traded

REIT.

Fee-Earning

AUM

year-over-year

$71.9

billion

driven

growth

core+

funds

and

BREDS.

% Change

(Dollars in Thousands)

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Management Fees, Net

232,106

215,608

(7)%

821,720

866,665

Performance Fees

202,939

519,200

156%

558,063

1,437,900

158%

Investment Income (Loss)

10,838

35,726

230%

(94,323)

146,481

n/m

Interest Income and Dividend Revenue

13,188

18,167

38%

47,181

59,219

26%

Other

(1,909)

(3,150)

65%

646

15,282

n/m

Total Revenues

457,162

785,551

72%

1,333,287

2,525,547

89%

Compensation

100,578

102,702

374,125

387,476

Performance Fee Compensation

77,070

201,596

162%

230,912

530,880

130%

Other Operating Expenses

48,097

51,969

187,129

207,834

11%

Total Expenses

225,745

356,267

58%

792,166

1,126,190

42%

Economic Income

231,417

429,284

86%

541,121

1,399,357

159%

Total AUM

101,107,528

102,070,930

101,107,528

102,070,930

Fee-Earning AUM

67,298,439

71,904,741

67,298,439

71,904,741

$6.7

billion

1Q’17 Realizations

Blackstone

Hedge Fund Solutions

2.7%

1Q’17 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.

$3.6

billion

1Q’17 Total AUM Inflows

$73.3

billion

Total AUM up 7% YoY

% Change

(Dollars in Thousands)

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Management Fees, Net

130,701

128,727

(2)%

525,193

520,823

(1)%

Performance Fees

(219)

58,792

n/m

3,972

102,477

n/m

Investment Income (Loss)

(17,036)

17,661

n/m

(25,320)

42,935

n/m

Interest Income and Dividend Revenue

5,296

7,554

43%

18,621

25,341

36%

Other

(1,388)

(1,610)

16%

419

7,935

n/m

Total Revenues

117,354

211,124

80%

522,885

699,511

34%

Compensation

54,169

47,604

(12)%

177,549

178,755

Performance Fee Compensation

668

22,530

n/m

6,613

41,732

531%

Other Operating Expenses

26,146

25,800

(1)%

95,012

108,290

14%

Total Expenses

80,983

95,934

18%

279,174

328,777

18%

Economic Income

36,371

115,190

217%

243,711

370,734

52%

Total AUM

68,475,416

73,303,381

68,475,416

73,303,381

Fee-Earning AUM

64,831,253

68,812,528

64,831,253

68,812,528

The

BPS

Composite

gross

return

was

2.7%

the

quarter

(2.5%

net),

and

9.6%

for

the

LTM

(8.7%

net),

continuing

the

strong

recovery

from

the

challenging

market

conditions

the

first

quarter

last

year.

Total

gross

inflows

$3.6

billion

during

the

quarter

and

$11.2

billion

for

the

LTM,

driven

customized

solutions,

commingled

products

and

individual

investor

and

specialized

solutions.

•

April

subscriptions

$561

million

are

not

yet

included

AUM.

•

BAAM’s

third

seeding

fund

held

its

final

closing

during

the

quarter,

closing

the

fund

$1.4

billion.

Total

AUM

reached

record

$73.3

billion

the

quarter,

driven

continued

platform

diversification

and

sustained

growth

customized

solutions.

•

Fee-Earning

AUM

year-over-year

$68.8

billion.

Blackstone

Credit

$3.6

billion

1Q’17 Total Capital Deployed

or Committed

$93.1

billion

Total AUM up 18% YoY

1Q’17 Composite Gross Returns

Performing Credit

3.5%

Distressed

2.8%

Composite

gross

returns

for

the

quarter

were

3.5%

and

2.8%

for

Performing

Credit

and

Distressed

Strategies,

respectively.

•

Strong

performance

across

strategies

during

the

LTM,

resulting

gross

returns

26.2%

and

24.9%

for

Performing

Credit

and

Distressed

Strategies,

respectively.

Strong

realization

activity

$3.3

billion

during

the

quarter,

including

$1.7

billion

across

drawdown

funds.

Deployed

committed

$3.6

billion

capital

during

the

quarter,

capitalizing

investment

opportunities

predominately

Europe

and

the

energy

sector.

Total

AUM

growth

18%

year-over-year

$93.1

billion.

Fee-Earning

AUM

increased

15%

year-over-year

record

$71.3

billion,

driven

nine

new

CLOs,

significant

investment

activity

and

record

investment

performance.

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 composite returns were 2.4% and 20.0% for 1Q’17 and 1Q'17 LTM. Distressed Strategies’ net composite returns were 2.0% and 19.7% for 1Q’17

and 1Q'17 LTM. The breakdown of Total AUM for 1Q’17 is as follows: Distressed Strategies $20.2 billion (36% Incentive Fee, 64% Carried Interest), Performing Credit Strategies $38.1 billion (50% Incentive Fee, 50% Carried Interest), and Long Only $34.8 billion.

The breakdown of Fee-Earning AUM for 1Q’17 is as follows: Distressed Strategies $12.8 billion (51% Incentive Fee, 49% Carried Interest), Performing Credit Strategies $24.3 billion (78% Incentive Fee, 22% Carried Interest), and Long Only $34.1 billion.

% Change

(Dollars in Thousands)

1Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Management Fees, Net

117,674

122,772

476,326

500,934

Performance Fees

7,188

87,888

n/m

(35,018)

423,532

n/m

Investment Income (Loss)

(20,535)

10,507

n/m

(38,731)

52,967

n/m

Interest Income and Dividend Revenue

6,748

9,233

37%

25,696

30,774

20%

Other

(1,364)

(1,727)

27%

314

9,211

n/m

Total Revenues

109,711

228,673

108%

428,587

1,017,418

137%

Compensation

52,382

54,979

192,694

204,684

Performance Fee Compensation

3,614

41,292

n/m

(24,577)

204,657

n/m

Other Operating Expenses

26,220

32,701

25%

98,010

126,792

29%

Total Expenses

82,216

128,972

57%

266,127

536,133

101%

Economic Income

27,495

99,701

263%

162,460

481,285

196%

Total AUM

78,656,291

93,111,200

18%

78,656,291

93,111,200

18%

Fee-Earning AUM

62,094,760

71,266,662

15%

62,094,760

71,266,662

15%

Blackstone

$75.0

$78.7

$93.1

$66.4

$68.5

$73.3

$92.8

$101.1

$102.1

$76.3

$95.5

$99.7

1Q'15

1Q'16

1Q'17

Fee-Earning AUM by Segment

(Dollars in Billions)

Total AUM by Segment

(Dollars in Billions)

$310.5

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Assets Under Management

$59.3

$62.1

$71.3

$64.1

$64.8

$68.8

$50.8

$67.3

$71.9

$49.3

$50.2

$68.2

1Q'15

1Q'16

1Q'17

$343.7

$368.2

$223.5

$244.5

$280.2

Total AUM increased 7% year-over-year to $368.2 billion driven by $66.5 billion of gross inflows.

•

Each segment experienced year-over-year growth despite $69.2 billion of capital returned to investors during

the LTM.

Record Fee-Earning AUM of $280.2 billion up 15% year-over-year as $72.9 billion of gross inflows significantly

outpaced $46.3 billion of realizations and outflows.

Blackstone

$13.9

$2.3

$12.7

$13.8

$150.8

$121.4

$154.8

$13.9

$50.4

$23.9

$60.6

$85.6

$92.3

1Q'15

1Q'16

1Q'17

Additional Capital Detail

Undrawn

capital

(“Total

Dry

Powder”)

was

$94.3

billion,

year-over-year,

driven

recent

fundraises

for

the

latest

global

private

equity

fund

and

the

latest

European

opportunistic

real

estate

fund.

•

75%

Total

Dry

Powder

was

raised

since

the

beginning

2015.

Performance

Fee

Eligible

AUM

reached

$271.0

billion

quarter

end,

year-over-year,

despite

significant

realizations

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

$94 billion 1Q’17

Total Dry Powder

$271 billion Performance

Fee Eligible AUM

$43 billion Not Currently

Earning Management Fees

$257.4

$271.0

$225.4

Credit

Hedge Fund

Solutions

Real Estate

Private Equity

$42.7

$40.6

$32.3

$4.6

$16.8

Blackstone

1Q'15

1Q'16

1Q'17

March

31,

2017,

Blackstone

had

$5.0

billion

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$10.2

billion

cash

and

net

investments,

$8.55

per

unit.

Blackstone

has

net

debt,

$1.5

billion

undrawn

credit

revolver

and

maintained

A+/A+

ratings.

Deconsolidated Balance Sheet Highlights

Balance

Sheet

Highlights

are

preliminary,

and

exclude

the

consolidated

Blackstone

Funds.

Investments

include

Blackstone

investments

Private

Equity,

Real

Estate,

Hedge

Fund

Solutions,

and

Credit,

which

were

$643

million,

$866

million,

$111

million,

and

$299

million,

respectively,

March

31,

2017,

$805

million,

$1.1

billion,

$125

million,

and

$257

million,

respectively,

March

31,

2016

and

$1.0

billion,

$1.3

billion,

$128

million,

and

$236

million,

respectively,

March

31,

2015.

Total

Net

Value

per

unit

amounts

are

calculated

using

period

end

Units

Outstanding.

A+/A+

Rated by S&P and Fitch

$1.5 billion

Undrawn Credit Revolver

with August 2021 Maturity

$5.0 billion

Total Cash and

Corporate Treasury

$8.55

$7.39

$8.94

Cash and Net Investments

(Per Unit)

(Dollars in Millions)

1Q’17

Cash and Cash Equivalents

2,304

Corporate Treasury

Investments

2,676

GP/Fund Investments

1,919

Net Accrued Performance

Fees

3,330

Cash

and Net Investments

10,229

Outstanding

Bonds (at par)

3,444

Blackstone

$1,483

$754

$1,070

$797

$889

$521

1Q'15 LTM

1Q'16 LTM

1Q'17 LTM

$2,648

$2,127

$1,998

$2,027

$1,000

$1,073

1Q'15

1Q'16

1Q'17

Performance Fees

Net Realized Performance Fees

(Dollars in Millions)

$1,780

$1,704

$2,510

Net Accrued Performance Fees

(Dollars in Millions)

$3,212

$3,330

$4,910

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$3.3

billion

Net Accrued Performance Fees

at 1Q’17

YoY

Growth in

Net Accrued

Performance Fees

$2.78

per unit

Net Accrued Performance Fees

at 1Q’17

Net Accrued Performance Fees per unit is calculated using period end DE Units Outstanding (see page 33, Unit Rollforward).

Net

Accrued

Performance

Fees

were

$3.3

billion

($2.78/unit),

year-over-year,

despite

realizing

Net

Performance

Fees

$1.7

billion

during

the

year.

Appendix

Blackstone

Total Segments

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Management and Advisory Fees, Net

Base Management Fees

586,703

593,996

593,509

623,571

642,958

2,266,889

2,454,034

Transaction, Advisory and Other Fees, Net

46,599

33,620

29,021

35,618

40,222

387,104

138,481

Management Fee Offsets

(20,101)

(15,396)

(20,850)

(23,297)

(33,599)

(95,650)

(93,142)

Total Management and Advisory Fees, Net

613,201

612,220

601,680

635,892

649,581

2,558,343

2,499,373

Performance Fees

Realized Carried Interest

230,909

323,734

504,022

416,250

1,111,322

2,229,191

2,355,328

Realized Incentive Fees

28,450

29,363

30,295

83,993

47,137

193,526

190,788

Unrealized Carried Interest

47,606

88,268

106,157

239,210

(154,747)

(1,921,542)

278,888

Unrealized Incentive Fees

7,100

8,007

32,172

2,450

60,016

(62,769)

102,645

Total Performance Fees

314,065

449,372

672,646

741,903

1,063,728

438,406

2,927,649

Investment Income (Loss)

Realized

(10,101)

53,670

60,634

95,666

202,894

300,915

412,864

Unrealized

(16,549)

6,101

27,253

3,616

(98,935)

(464,357)

(61,965)

Total Investment Income (Loss)

(26,650)

59,771

87,887

99,282

103,959

(163,442)

350,899

Interest Income and Dividend Revenue

35,081

35,233

33,081

42,488

45,876

136,231

156,678

Other

(6,248)

8,546

(425)

52,839

(8,287)

7,124

52,673

Total Revenues

929,449

1,165,142

1,394,869

1,572,404

1,854,857

2,976,662

5,987,272

Expenses

Compensation

287,403

286,155

268,595

241,063

289,027

1,146,784

1,084,840

Performance Fee Compensation

Realized Carried Interest

58,503

87,581

168,427

141,443

366,191

560,055

763,642

Realized Incentive Fees

14,123

15,251

15,436

33,286

22,752

87,842

86,725

Unrealized Carried Interest

30,001

75,202

70,044

137,591

(4,387)

(357,075)

278,450

Unrealized Incentive Fees

3,448

2,689

13,508

1,489

23,139

(24,003)

40,825

Total Compensation and Benefits

393,478

466,878

536,010

554,872

696,722

1,413,603

2,254,482

Other Operating Expenses

148,526

157,254

150,890

172,672

153,292

629,601

634,108

Total Expenses

542,004

624,132

686,900

727,544

850,014

2,043,204

2,888,590

Economic Income

387,445

541,010

707,969

844,860

1,004,843

933,458

3,098,682

Economic Net Income

370,651

519,776

686,984

811,610

986,038

898,856

3,004,408

Fee Related Earnings

246,667

234,442

246,084

294,495

290,742

1,042,935

1,065,763

Distributable Earnings

394,215

494,913

593,453

638,994

1,230,138

2,984,324

2,957,498

Total Assets Under Management

343,705,462

356,281,669

361,040,173

366,553,465

368,196,917

343,705,462

368,196,917

Fee-Earning Assets Under Management

244,452,764

266,006,713

267,757,727

277,092,672

280,215,551

244,452,764

280,215,551

Weighted Average Fee-Earning AUM

244,891,488

259,476,010

268,503,412

274,475,842

279,582,971

243,023,461

271,944,095

LP Capital Invested

6,515,571

3,795,171

4,127,005

7,770,798

9,616,665

32,255,081

25,309,639

Total Capital Invested

6,693,375

4,049,774

4,301,164

8,017,721

11,747,617

33,996,315

28,116,276

Blackstone

Private Equity

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Management and Advisory Fees, Net

Base Management Fees

130,648

131,477

131,708

160,301

177,464

524,905

600,950

Transaction, Advisory and Other Fees, Net

8,920

11,089

12,892

8,972

17,200

32,951

50,153

Management Fee Offsets

(6,848)

(4,195)

(12,917)

(10,850)

(12,190)

(38,659)

(40,152)

Total Management and Advisory Fees, Net

132,720

138,371

131,683

158,423

182,474

519,197

610,951

Performance Fees

Realized Carried Interest

30,282

57,056

26,398

131,532

582,681

1,122,291

797,667

Unrealized Carried Interest

73,875

85,047

144,597

121,262

(184,833)

(1,210,902)

166,073

Total Performance Fees

104,157

142,103

170,995

252,794

397,848

(88,611)

963,740

Investment Income (Loss)

Realized

(15,357)

22,926

15,469

50,339

80,889

129,476

169,623

Unrealized

15,440

(2,766)

8,884

(26,401)

(40,824)

(132,385)

(61,107)

Total Investment Income (Loss)

20,160

24,353

23,938

40,065

(2,909)

108,516

Interest Income and Dividend Revenue

9,849

9,516

9,160

11,746

10,922

35,449

41,344

Other

(1,587)

3,395

411

18,239

(1,800)

6,092

20,245

Total Revenues

245,222

313,545

336,602

465,140

629,509

469,218

1,744,796

Expenses

Compensation

80,274

83,140

73,889

73,154

83,742

289,450

313,925

Performance Fee Compensation

Realized Carried Interest

15,427

30,946

13,741

50,768

181,633

232,867

277,088

Unrealized Carried Interest

9,296

19,450

69,300

65,891

(39,356)

(178,996)

115,285

Total Compensation and Benefits

104,997

133,536

156,930

189,813

226,019

343,321

706,298

Other Operating Expenses

48,063

48,371

47,534

52,465

42,822

208,346

191,192

Total Expenses

153,060

181,907

204,464

242,278

268,841

551,667

897,490

Economic Income (Loss)

92,162

131,638

132,138

222,862

360,668

(82,449)

847,306

Total Assets Under Management

95,466,227

99,685,655

99,722,322

100,192,950

99,711,406

95,466,227

99,711,406

Fee-Earning Assets Under Management

50,228,312

69,467,174

69,347,910

69,113,409

68,231,620

50,228,312

68,231,620

Weighted Average Fee-Earning AUM

51,240,819

63,083,579

69,546,251

69,616,781

68,618,130

52,093,539

68,430,645

LP Capital Invested

1,865,698

1,538,436

1,683,747

2,355,726

4,736,388

9,710,277

10,314,297

Total Capital Invested

1,974,391

1,637,601

1,804,304

2,495,215

6,748,859

10,872,093

12,685,979

Blackstone

Real Estate

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Management Fees, Net

Base Management Fees

199,907

201,004

197,629

196,621

197,879

716,134

793,133

Transaction and Other Fees, Net

35,794

21,112

14,190

24,228

21,279

131,155

80,809

Management Fee Offsets

(3,595)

(1,219)

(842)

(1,666)

(3,550)

(25,569)

(7,277)

Total Management Fees, Net

232,106

220,897

210,977

219,183

215,608

821,720

866,665

Performance Fees

Realized Carried Interest

200,627

266,382

461,980

274,495

519,841

1,024,111

1,522,698

Realized Incentive Fees

4,069

6,099

3,857

15,600

2,914

20,499

28,470

Unrealized Carried Interest

(11,522)

(84,875)

(113,449)

58,849

(22,268)

(511,045)

(161,743)

Unrealized Incentive Fees

9,765

5,942

14,445

9,375

18,713

24,498

48,475

Total Performance Fees

202,939

193,548

366,833

358,319

519,200

558,063

1,437,900

Investment Income (Loss)

Realized

12,975

19,929

46,704

43,104

119,579

177,213

229,316

Unrealized

(2,137)

(8,902)

(6,725)

16,645

(83,853)

(271,536)

(82,835)

Total Investment Income (Loss)

10,838

11,027

39,979

59,749

35,726

(94,323)

146,481

Interest Income and Dividend Revenue

13,188

13,084

12,460

15,508

18,167

47,181

59,219

Other

(1,909)

2,231

(548)

16,749

(3,150)

646

15,282

Total Revenues

457,162

440,787

629,701

669,508

785,551

1,333,287

2,525,547

Expenses

Compensation

100,578

102,888

99,886

82,000

102,702

374,125

387,476

Performance Fee Compensation

Realized Carried Interest

43,076

56,441

147,419

85,686

179,925

280,617

469,471

Realized Incentive Fees

2,133

3,300

1,764

4,888

1,364

10,455

11,316

Unrealized Carried Interest

27,703

14,257

(38,972)

41,787

11,798

(70,560)

28,870

Unrealized Incentive Fees

4,158

2,542

6,229

3,943

8,509

10,400

21,223

Total Compensation and Benefits

177,648

179,428

216,326

218,304

304,298

605,037

918,356

Other Operating Expenses

48,097

52,201

47,908

55,756

51,969

187,129

207,834

Total Expenses

225,745

231,629

264,234

274,060

356,267

792,166

1,126,190

Economic Income

231,417

209,158

365,467

395,448

429,284

541,121

1,399,357

Total Assets Under Management

101,107,528

103,197,060

101,876,562

101,963,652

102,070,930

101,107,528

102,070,930

Fee-Earning Assets Under Management

67,298,439

66,744,550

65,785,083

72,030,054

71,904,741

67,298,439

71,904,741

Weighted Average Fee-Earning AUM

66,943,268

67,215,301

66,708,328

68,688,082

72,268,792

64,197,410

68,760,233

LP Capital Invested

3,747,181

1,524,415

1,719,764

3,978,386

2,590,419

18,563,380

9,812,984

Total Capital Invested

3,820,460

1,557,192

1,749,778

4,048,827

2,651,965

19,018,329

10,007,762

Blackstone

Hedge Fund Solutions

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Management Fees, Net

Base Management Fees

130,158

130,123

130,305

131,150

128,468

523,907

520,046

Transaction and Other Fees, Net

543

(5)

116

407

259

835

777

Management Fee Offsets

451

Total Management Fees, Net

130,701

130,118

130,421

131,557

128,727

525,193

520,823

Performance Fees

Realized Incentive Fees

2,684

(251)

4,572

35,172

14,684

60,365

54,177

Unrealized Carried Interest

801

(84)

(245)

3,797

2,053

4,269

Unrealized Incentive Fees

(2,935)

1,036

12,038

(9,354)

40,311

(58,446)

44,031

Total Performance Fees

(219)

1,586

16,526

25,573

58,792

3,972

102,477

Investment Income (Loss)

Realized

(4,745)

(515)

(1,211)

(753)

(632)

(7,111)

(3,111)

Unrealized

(12,291)

9,357

12,219

6,177

18,293

(18,209)

46,046

Total Investment Income (Loss)

(17,036)

8,842

11,008

5,424

17,661

(25,320)

42,935

Interest Income and Dividend Revenue

5,296

5,205

4,692

7,890

7,554

18,621

25,341

Other

(1,388)

1,125

(260)

8,680

(1,610)

419

7,935

Total Revenues

117,354

146,876

162,387

179,124

211,124

522,885

699,511

Expenses

Compensation

54,169

44,436

47,206

39,509

47,604

177,549

178,755

Performance Fee Compensation

Realized Incentive Fees

1,863

1,325

2,902

13,307

7,317

25,548

24,851

Unrealized Carried Interest

238

(92)

1,209

823

1,390

Unrealized Incentive Fees

(1,195)

480

4,557

(3,550)

14,004

(19,758)

15,491

Total Compensation and Benefits

54,837

46,479

54,700

49,174

70,134

184,162

220,487

Other Operating Expenses

26,146

27,218

27,432

27,840

25,800

95,012

108,290

Total Expenses

80,983

73,697

82,132

77,014

95,934

279,174

328,777

Economic Income

36,371

73,179

80,255

102,110

115,190

243,711

370,734

Total Assets Under Management

68,475,416

68,649,878

70,113,508

71,119,718

73,303,381

68,475,416

73,303,381

Fee-Earning Assets Under Management

64,831,253

64,973,999

66,434,971

66,987,553

68,812,528

64,831,253

68,812,528

Weighted Average Fee-Earning AUM

65,123,126

65,520,626

66,600,260

67,993,100

68,406,531

65,763,940

67,206,240

LP Capital Invested

315,757

32,804

135,105

56,677

28,592

425,647

253,178

Total Capital Invested

329,793

32,809

141,699

56,766

28,592

442,938

259,866

Blackstone

Credit

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Management Fees, Net

Base Management Fees

125,990

131,392

133,867

135,499

139,147

501,943

539,905

Transaction and Other Fees, Net

1,342

1,424

1,823

2,011

1,484

6,256

6,742

Management Fee Offsets

(9,658)

(9,982)

(7,091)

(10,781)

(17,859)

(31,873)

(45,713)

Total Management Fees, Net

117,674

122,834

128,599

126,729

122,772

476,326

500,934

Performance Fees

Realized Carried Interest

296

15,644

10,223

8,800

82,789

34,963

Realized Incentive Fees

21,697

23,515

21,866

33,221

29,539

112,662

108,141

Unrealized Carried Interest

(14,779)

87,295

75,093

59,344

48,557

(201,648)

270,289

Unrealized Incentive Fees

270

1,029

5,689

2,429

992

(28,821)

10,139

Total Performance Fees

7,188

112,135

118,292

105,217

87,888

(35,018)

423,532

Investment Income (Loss)

Realized

(2,974)

11,330

(328)

2,976

3,058

1,975

17,036

Unrealized

(17,561)

8,412

12,875

7,195

7,449

(40,706)

35,931

Total Investment Income (Loss)

(20,535)

19,742

12,547

10,171

10,507

(38,731)

52,967

Interest Income and Dividend Revenue

6,748

7,428

6,769

7,344

9,233

25,696

30,774

Other

(1,364)

1,795

(28)

9,171

(1,727)

314

9,211

Total Revenues

109,711

263,934

266,179

258,632

228,673

428,587

1,017,418

Expenses

Compensation

52,382

55,691

47,614

46,400

54,979

192,694

204,684

Performance Fee Compensation

Realized Carried Interest

194

7,267

4,989

4,633

46,571

17,083

Realized Incentive Fees

10,127

10,626

10,770

15,091

14,071

51,839

50,558

Unrealized Carried Interest

(6,998)

41,257

39,681

30,005

21,962

(108,342)

132,905

Unrealized Incentive Fees

485

(333)

2,722

1,096

626

(14,645)

4,111

Total Compensation and Benefits

55,996

107,435

108,054

97,581

96,271

168,117

409,341

Other Operating Expenses

26,220

29,464

28,016

36,611

32,701

98,010

126,792

Total Expenses

82,216

136,899

136,070

134,192

128,972

266,127

536,133

Economic Income

27,495

127,035

130,109

124,440

99,701

162,460

481,285

Total Assets Under Management

78,656,291

84,749,076

89,327,781

93,277,145

93,111,200

78,656,291

93,111,200

Fee-Earning Assets Under Management

62,094,760

64,820,990

66,189,763

68,961,656

71,266,662

62,094,760

71,266,662

Weighted Average Fee-Earning AUM

61,584,275

63,656,504

65,648,573

68,177,879

70,289,518

60,968,572

67,546,977

LP Capital Invested

586,935

699,516

588,389

1,380,009

2,261,266

3,555,777

4,929,180

Total Capital Invested

568,731

822,172

605,383

1,416,913

2,318,201

3,662,955

5,162,669

Blackstone

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)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Revenues

Transaction and Advisory Fees, Net

215,907

Total Transaction and Advisory Fees

215,907

Investment (Loss)

Realized

(638)

Unrealized

(1,521)

Total Investment (Loss)

(2,159)

Interest Income and Dividend Revenue

9,284

Other

(347)

Total Revenues

222,685

Expenses

Compensation

112,966

Total Compensation and Benefits

112,966

Other Operating Expenses

41,104

Total Expenses

154,070

Economic Income

68,615

Blackstone

Unitholder Distribution

A detailed

description

Blackstone’s

distribution

policy

and

the

definition

Distributable

Earnings

can

found

page

34,

Definitions

and

Distribution

Policy.

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 33, 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 $99 million for 1Q’17 and $203 million for 1Q’17 LTM.

Generated

$1.02

Distributable

Earnings

per

common

unit

during

the

quarter,

209%

from

the

prior

quarter,

bringing

the

LTM

amount

$2.42

per

common

unit.

Declared

quarterly

distribution

$0.87

per

common

unit

record

holders

May

2017;

payable

May

2017.

% Change

(Dollars in Thousands, Except per Unit Data)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

vs. 1Q'16

1Q'16 LTM

1Q'17 LTM

vs. 1Q'16 LTM

Distributable Earnings

394,215

494,913

593,453

638,994

1,230,138

212%

2,984,324

2,957,498

(1)%

Add: Other Payables Attributable

to Common Unitholders

10,438

30,576

41,304

6,632

n/m

26,918

88,950

230%

DE before Certain Payables

394,215

505,351

624,029

680,298

1,236,770

214%

3,011,242

3,046,448

Percent to Common Unitholders

54%

55%

54%

55%

DE before Certain Payables Attributable

to Common Unitholders

213,673

274,711

340,069

373,655

683,473

220%

1,618,581

1,671,908

Less: Other Payables Attributable

to Common Unitholders

(10,438)

(30,576)

(41,304)

(6,632)

n/m

(26,918)

(88,950)

230%

DE Attributable to Common Unitholders

213,673

264,273

309,493

332,351

676,841

217%

1,591,663

1,582,958

(1)%

DE per Common Unit

0.33

0.41

0.48

0.51

1.02

209%

2.50

2.42

(3)%

Less: Retained Capital per Common Unit

(0.05)

(0.07)

(0.04)

(0.15)

200%

(0.38)

(0.31)

(18)%

Actual Distribution per Common Unit

0.28

0.36

0.41

0.47

0.87

211%

2.12

2.11

(0)%

Record Date

May 1, 2017

Payable Date

May 8, 2017

Blackstone

1Q’17 Total AUM Rollforward

(Dollars in Millions)

1Q’17 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

Inflows: BCP co-investment ($1.7 billion); Strategic Partners ($733 million); Tactical Opportunities ($336 million).

Realizations: Corporate Private Equity ($4.5 billion); BCP co-investment ($778 million); Strategic Partners ($548 million); Tactical

Opportunities ($316 million).

Market Activity:

Carrying value increase of 6.9% within Corporate Private Equity.

Inflows:

Core+ funds ($1.2 billion); BREP opportunistic funds ($974 million); BREDS ($673 million); BREIT ($478 million).

Realizations: BREP opportunistic funds ($5.0 billion); BREP co-investment ($1.0 billion); BREDS ($348 million).

Market Activity:

Carrying value increases of 5.7% and 3.1% within the opportunistic and core+ funds, respectively.

Inflows: Customized solutions ($2.0 billion); individual investor and specialized solutions ($1.1 billion); commingled products ($568 million).

Outflows and Realizations:

Individual investor and specialized solutions ($1.9 billion); customized solutions ($1.1 billion).

Market Activity:

BAAM’s Principal Solutions Composite up 2.7% gross (2.5% net) during the quarter.

Inflows: Long Only ($1.6 billion); Mezzanine strategies ($882 million); BDCs ($871 million); one new CLO ($611 million).

Outflows: Distressed strategies ($1.6 billion); Long Only ($306 million).

Realizations: Distressed strategies ($1.5 billion); capital returned to investors for CLOs outside investment periods ($944 million); Mezzanine

strategies ($569 million).

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Private

Real

Hedge Fund

Equity

Estate

Solutions

4Q'16

100,193

101,964

71,120

93,277

366,553

Inflows

2,649

3,329

3,641

4,338

13,957

Outflows

(247)

(210)

(2,502)

(2,063)

(5,022)

Realizations

(6,167)

(6,685)

(503)

(3,263)

(16,618)

Net Inflows (Outflows)

(3,765)

(3,565)

636

(988)

(7,683)

Market Activity

3,284

3,673

1,548

822

9,326

1Q'17

99,711

102,071

73,303

93,111

368,197

QoQ Increase (Decrease)

(0)%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'16

95,466

101,108

68,475

78,656

343,705

Inflows

16,528

13,320

11,243

25,437

66,528

Outflows

(1,531)

(443)

(10,742)

(7,067)

(19,784)

Realizations

(18,270)

(21,160)

(789)

(9,176)

(49,396)

Net Inflows (Outflows)

(3,273)

(8,284)

(288)

9,193

(2,652)

Market Activity

7,518

9,247

5,116

5,262

27,143

1Q'17

99,711

102,071

73,303

93,111

368,197

YoY Increase

18%

Credit

Total

Blackstone

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.

1Q’17 Fee-Earning AUM Rollforward

(Dollars in Millions)

1Q’17 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Inflows: BREDS ($946 million); BREP opportunistic funds ($580 million); BREIT ($478 million).

Realizations: BREP opportunistic funds ($1.4 billion); BREDS ($748 million); BREP co-investment ($347 million).

Inflows: Customized solutions ($1.9 billion); individual investor and specialized solutions ($705 million); commingled products ($549 million).

Outflows and Realizations:

Individual investor and specialized solutions ($1.6 billion); customized solutions ($1.1 billion).

Inflows: Long Only ($1.5 billion); Distressed strategies ($1.3 billion); Mezzanine strategies ($1.1 billion); BDCs ($871 million).

Realizations: Distressed strategies ($1.2 billion); capital returned to investors for CLOs outside investment periods ($944 million); Mezzanine

strategies ($372 million).

Inflows: Core Private Equity ($585 million); Tactical Opportunities ($219 million).

Realizations: Corporate Private Equity ($1.6 billion); Strategic Partners ($492 million).

Fee-Earning Assets Under Management

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Private

Real

Hedge Fund

Equity

Estate

Solutions

4Q'16

69,113

72,030

66,988

68,962

277,093

Inflows

1,135

2,125

3,183

5,421

11,864

Outflows

(29)

(97)

(2,269)

(787)

(3,182)

Realizations

(2,163)

(2,780)

(447)

(2,797)

(8,187)

Net Inflows (Outflows)

(1,057)

(751)

467

1,837

496

Market Activity

175

626

1,358

468

2,627

1Q'17

68,232

71,905

68,813

71,267

280,216

QoQ Increase (Decrease)

(1)%

(0)%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'16

50,228

67,298

64,831

62,095

244,453

Inflows

29,495

14,764

10,464

18,135

72,857

Outflows

(2,813)

(2,240)

(10,411)

(4,278)

(19,741)

Realizations

(9,068)

(8,679)

(718)

(8,050)

(26,515)

Net Inflows (Outflows)

17,613

3,845

(664)

5,806

26,600

Market Activity

390

762

4,645

3,366

9,163

1Q'17

68,232

71,905

68,813

71,267

280,216

YoY Increase

36%

15%

Credit

Total

Blackstone

Net Accrued Performance Fees

Net

Accrued

Performance

Fees

are

presented

net

performance

fee

compensation

and

not

include

clawback

amounts,

any,

which

are

disclosed

the

10-K/Q.

Net

Realized

Performance

Fees

are

included

DE.

Net

Realized

Performance

Fees

represents

Performance

Fees

realized,

but

not

yet

distributed

the

reporting

date

and

included

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 33, Unit Rollforward).

$3.3

billion

Net Accrued Performance Fees at 1Q’17

$2.78

per unit

Net Accrued Performance Fees at 1Q’17

Net Accrued Performance Fees

(Dollars in Millions, Except per Unit Data)

4Q'16

1Q'17

1Q'17 Per Unit

QoQ Change

Private Equity

BCP IV Carried Interest

186

109

0.09

(77)

BCP V Carried Interest

323

128

0.11

(195)

BCP VI Carried Interest

548

560

0.47

BEP I Carried Interest

0.08

BEP II Carried Interest

0.01

Tactical Opportunities Carried Interest

104

0.09

BTAS Carried Interest

0.02

Strategic Partners Carried Interest

0.03

Other Carried Interest

(1)

Total Private Equity

1,268

1,073

0.90

(195)

Real

Estate

BREP IV Carried Interest

0.01

(1)

BREP V Carried Interest

300

265

0.22

(35)

BREP VI Carried Interest

510

316

0.26

(194)

BREP VII Carried Interest

504

552

0.46

BREP VIII Carried Interest

143

179

0.15

BREP Europe III Carried Interest

140

161

0.13

BREP Europe IV Carried Interest

184

289

0.24

105

BREP Asia Carried Interest

0.08

BPP Carried Interest

0.05

BPP Incentive Fees

0.03

BREDS Carried Interest

0.01

BREDS Incentive Fees

Asia Platform Incentive Fees

0.01

Total Real Estate

1,986

1,998

1.67

Hedge

Fund

Solutions

Incentive Fees

0.03

Total Hedge Fund Solutions

0.03

Credit

Carried Interest

168

195

0.16

Incentive Fees

0.02

Total Credit

192

221

0.18

Total

Blackstone

Carried Interest

3,377

3,213

2.69

(164)

Incentive Fees

117

0.10

Net Accrued Performance Fees

3,470

3,330

2.78

(140)

Memo: Net Realized Performance Fees

119

0.08

(28)

Blackstone

Investment

Records

March

31,

2017

(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%

BCP II (Oct 1993 / Aug 1997)

1,361,100

n/a

3,256,819

2.5x

3,256,819

2.5x

32%

BCP III (Aug 1997 / Nov 2002)

3,967,422

n/a

9,184,688

2.3x

9,184,688

2.3x

14%

BCOM (Jun 2000 / Jun 2006)

2,137,330

24,575

23,299

1.8x

2,951,018

1.4x

2,974,317

1.4x

BCP IV (Nov 2002 / Dec 2005)

6,773,182

215,546

1,339,848

1.2x

41%

20,049,478

3.1x

21,389,326

2.8x

41%

36%

BCP V (Dec 2005 / Jan 2011)

21,019,849

1,241,060

3,871,309

1.4x

57%

34,076,797

1.9x

37,948,106

1.9x

BCP VI (Jan 2011 / May 2016)

15,190,007

1,794,580

15,219,024

1.4x

23%

6,084,689

2.0x

21,303,713

1.5x

28%

12%

BEP I (Aug 2011 / Feb 2015)

2,437,584

166,111

2,889,394

1.5x

32%

859,498

1.9x

3,748,892

1.6x

42%

15%

BEP II (Feb 2015 / Feb 2021)

4,816,358

2,933,755

1,881,655

1.2x

n/a

1,881,655

1.2x

n/a

47%

BCP VII (May 2016 / May 2022)

18,549,374

16,134,686

2,450,097

1.0x

n/a

2,450,097

1.0x

n/a

n/m

Total Corporate Private Equity

77,111,287

22,510,313

27,674,626

1.4x

26%

78,204,725

2.2x

105,879,351

1.9x

17%

15%

Tactical Opportunities

13,946,336

6,394,172

8,206,191

1.2x

2,501,655

1.5x

10,707,846

1.3x

27%

11%

Tactical Opportunities Co-Investment and Other

3,262,702

1,141,991

2,028,075

1.1x

321,638

1.5x

2,349,713

1.2x

n/a

12%

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

12,833,284

2,487,200

2,965,240

3.7x

14,288,889

n/m

17,254,129

1.5x

n/a

13%

Strategic Partners VI LBO, RE and SMA (e)

7,402,171

2,495,828

3,498,260

1.7x

1,277,356

n/m

4,775,616

1.4x

n/a

23%

Strategic Partners VII (e)

7,489,970

6,197,007

583,820

1.3x

26,626

n/a

610,446

1.2x

n/a

n/m

BCEP (f)

4,129,194

3,524,972

604,222

1.0x

n/a

604,222

1.0x

n/a

n/m

Other Funds and Co-Investment (g)

1,469,956

415,513

29,182

0.8x

67%

634,538

1.0x

663,720

1.0x

n/m

Real Estate

Dollar

Pre-BREP

140,714

n/a

345,190

2.5x

345,190

2.5x

33%

BREP I (Sep 1994 / Oct 1996)

380,708

n/a

1,327,708

2.8x

1,327,708

2.8x

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

n/a

2,531,614

2.1x

2,531,614

2.1x

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

n/a

3,330,406

2.4x

3,330,406

2.4x

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

369,644

0.5x

27%

4,160,248

2.2x

4,529,892

1.7x

31%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

2,496,440

2.1x

15%

10,609,427

2.3x

13,105,867

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

557,816

3,736,543

2.2x

47%

23,036,112

2.5x

26,772,655

2.4x

14%

13%

BREP VII (Aug 2011 / Apr 2015)

13,493,581

2,209,815

14,636,784

1.6x

20%

11,269,048

1.9x

25,905,832

1.7x

28%

18%

BREP VIII (Apr 2015 / Oct 2020)

16,416,375

10,443,865

7,887,455

1.3x

2,017,820

1.2x

9,905,275

1.3x

18%

Total Global BREP

51,950,981

13,211,496

29,126,866

1.6x

18%

58,627,573

2.2x

87,754,439

1.9x

19%

16%

Euro

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

n/a

1,369,016

€

2.1x

1,369,016

€

2.1x

23%

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

1,629,748

286,518

0.8x

55%

2,058,381

2.0x

2,344,899

1.7x

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

472,766

2,934,256

1.9x

3,041,895

2.2x

5,976,151

2.0x

22%

16%

BREP Europe IV (Sep 2013 / Dec 2016)

6,707,714

1,520,962

8,185,788

1.5x

1,164,684

1.5x

9,350,472

1.5x

22%

18%

BREP Europe V (Dec 2016 / Jun 2021)

6,703,649

6,319,485

501,107

1.0x

n/a

501,107

1.0x

n/a

Total Euro BREP

19,070,423

€

8,313,213

€

11,907,669

€

1.5x

7,633,976

€

2.0x

19,541,645

€

1.7x

16%

14%

BREP Co-Investment (h)

6,819,065

146,573

3,053,753

1.6x

66%

10,203,022

2.1x

13,256,775

2.0x

16%

BREP Asia (Jun 2013 / Dec 2017)

5,085,933

3,028,120

2,761,252

1.4x

2,030,989

1.7x

4,792,241

1.5x

21%

17%

Total BREP

87,344,028

25,350,327

49,532,093

1.5x

16%

81,016,633

2.2x

130,548,726

1.9x

18%

16%

BPP (i)

14,115,916

3,403,887

13,277,011

1.2x

107,286

1.9x

13,384,297

1.2x

36%

13%

BREDS (j)

12,252,591

6,968,549

2,451,243

1.2x

6,892,140

1.3x

9,343,383

1.3x

13%

11%

Blackstone

Investment

Records

March

31,

2017

(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

Return

(“IRR”)

represents

the

annualized

inception

March

31,

2017

IRR

total

invested

capital

based

realized

proceeds

and

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

(e)

Realizations

are

treated

return

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,

Blackstone

Strategic

Capital

Holdings,

permanent

capital

vehicle

focused

acquiring

strategic

minority

positions

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

2,651,996

689,443

1.1x

135,582

n/a

825,025

1.3x

n/a

BSCH Co-Investment

75,500

31,237

44,495

1.0x

4,298

n/a

48,793

1.1x

n/a

Total Hedge Fund Solutions

3,376,100

2,683,233

733,938

1.0x

139,880

n/a

873,818

1.2x

n/a

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

99,280

161,361

1.3x

4,663,932

1.6x

4,825,293

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

1,393,677

3,256,146

1.1x

2,622,256

1.5x

5,878,402

1.3x

n/a

13%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

5,467,784

1,212,728

1.0x

n/a

1,212,728

1.0x

n/a

n/m

Rescue Lending I (Sep 2009 / May 2013)

3,253,143

275,335

847,510

1.1x

5,120,819

1.5x

5,968,329

1.4x

n/a

11%

Rescue Lending II (Jun 2013 / Jun 2018)

5,125,000

1,446,697

3,597,915

1.2x

1,199,162

1.3x

4,797,077

1.2x

n/a

19%

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,866

2,085,415

888,696

1.1x

172,592

1.5x

1,061,288

1.2x

n/a

26%

Euro

European Senior Debt Fund (Feb 2015 / Feb 2018)

1,964,689

€

2,925,122

€

886,329

€

1.0x

156,195

€

1.2x

1,042,524

€

1.0x

n/a

(5)%

Total Credit

26,260,552

13,896,899

10,914,405

1.1x

13,951,100

1.5x

24,865,505

1.3x

n/a

14%

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Quarters

Notes on page 27.

(Dollars in Thousands)

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

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

629,448

134,168

(254,697)

200,870

159,753

198,626

312,905

367,951

461,825

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

645,230

134,870

(247,318)

150,734

131,202

201,805

285,267

342,010

417,258

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

81,796

66,716

30,671

40,717

40,086

64,729

82,653

58,684

138,685

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

7,527

13,780

(12,520)

2,358

(6,401)

(2,049)

10,764

1,663

2,000

Net Income (Loss)

1,364,001

349,534

(483,864)

394,679

324,640

463,111

691,589

770,308

1,019,768

Provision for Taxes

99,344

43,251

1,573

46,230

9,146

47,415

27,714

48,087

57,437

Income (Loss) Before Provision for Taxes

1,463,345

392,785

(482,291)

440,909

333,786

510,526

719,303

818,395

1,077,205

Transaction-Related Charges

(a)

231,862

192,018

80,962

(15,279)

64,136

69,956

60,029

70,816

56,979

Amortization of Intangibles

(b)

25,899

24,720

30,624

23,287

23,208

22,054

15,996

11,344

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

(c)

(89,323)

(80,496)

(18,151)

(43,075)

(33,685)

(62,680)

(93,417)

(60,347)

(140,685)

Economic Income (Loss)

1,631,783

529,027

(388,856)

405,842

387,445

541,010

707,969

844,860

1,004,843

(Taxes) Benefit

(9,719)

(20,587)

(27,070)

29,849

(16,794)

(21,234)

(20,985)

(33,250)

(18,805)

Economic Net Income (Loss)

1,622,064

508,440

(415,926)

435,691

370,651

519,776

686,984

811,610

986,038

Taxes (Benefit)

(d)

9,719

20,587

27,070

(29,849)

16,794

21,234

20,985

33,250

18,805

Performance Fee Adjustment

(e)

(1,673,736)

(569,664)

639,349

(194,026)

(314,065)

(449,372)

(672,646)

(741,903)

(1,063,728)

Investment (Income) Loss Adjustment

(f)

(189,641)

(10,774)

136,131

11,435

26,650

(59,771)

(87,887)

(99,282)

(103,959)

Other Revenue

(g)

4,872

(3,973)

841

(10,240)

6,248

(8,546)

425

(52,839)

8,287

Net Interest Loss

(h)

8,402

14,411

9,522

11,846

13,351

13,546

14,184

10,542

10,954

Performance Fee Compensation and Benefits Adjustment

(i)

403,816

215,441

(130,479)

75,782

106,075

180,723

267,415

313,809

407,695

Equity-Based Compensation -

Non-Incentive Fee Related

(j)

42,248

27,994

15,690

10,969

20,963

16,852

16,624

19,308

26,650

Fee Related Earnings

227,744

202,462

282,198

311,608

246,667

234,442

246,084

294,495

290,742

Net Realized Performance Fees

(k)

934,939

725,986

359,243

506,851

187,794

251,935

352,008

327,053

772,780

Realized Investment Income (Loss)

(l)

107,792

136,497

87,526

86,993

(10,101)

53,670

60,634

95,666

202,894

Net Interest (Loss)

(h)

(8,402)

(14,411)

(9,522)

(11,846)

(13,351)

(13,546)

(14,184)

(10,542)

(10,954)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

(16,994)

(20,587)

(27,070)

(25,819)

(16,794)

(31,588)

(51,089)

(67,678)

(25,324)

Distributable Earnings

1,245,079

1,029,947

692,375

867,787

394,215

494,913

593,453

638,994

1,230,138

Interest Expense

38,853

45,437

44,981

46,511

48,432

48,779

47,265

53,030

56,830

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

16,994

20,587

27,070

25,819

16,794

31,588

51,089

67,678

25,324

Depreciation and Amortization

6,927

6,715

6,719

6,852

6,292

6,331

7,338

12,010

6,216

Adjusted EBITDA

1,307,853

1,102,686

771,145

946,969

465,733

581,611

699,145

771,712

1,318,508

(d)

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Years

Notes on page 27.

(Dollars in Thousands)

2012

2013

2014

2015

2016

1Q'16 LTM

1Q'17 LTM

Net Income Attributable to The Blackstone Group L.P.

218,598

1,171,202

1,584,589

709,789

1,039,235

240,094

1,341,307

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

407,727

1,339,845

1,701,100

683,516

960,284

169,488

1,246,340

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

99,959

198,557

335,070

219,900

246,152

178,190

344,751

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

103,598

183,315

74,794

11,145

3,977

(2,783)

12,378

Net Income

829,882

2,892,919

3,695,553

1,624,350

2,249,648

584,989

2,944,776

Provision for Taxes

185,023

255,642

291,173

190,398

132,362

100,200

180,653

Income Before Provision for Taxes

1,014,905

3,148,561

3,986,726

1,814,748

2,382,010

685,189

3,125,429

Transaction-Related Charges

(a)

1,079,511

722,707

856,382

489,563

264,937

321,837

257,780

Amortization of Intangibles

(b)

150,148

106,643

111,254

104,530

84,466

101,839

72,602

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

(c)

(203,557)

(381,872)

(409,864)

(231,045)

(250,129)

(175,407)

(357,129)

Economic Income

2,041,007

3,596,039

4,544,498

2,177,796

2,481,284

933,458

3,098,682

Taxes

(d)

(45,708)

(82,164)

(199,512)

(27,527)

(92,263)

(34,602)

(94,274)

Economic Net Income

1,995,299

3,513,875

4,344,986

2,150,269

2,389,021

898,856

3,004,408

Taxes

(d)

45,708

82,164

199,512

27,527

92,263

34,602

94,274

Performance Fee Adjustment

(e)

(1,593,765)

(3,556,373)

(4,391,877)

(1,798,077)

(2,177,986)

(438,406)

(2,927,649)

Investment (Income) Loss Adjustment

(f)

(286,244)

(687,805)

(471,628)

(52,849)

(220,290)

163,442

(350,899)

Other Revenue

(g)

(5,149)

(10,308)

(9,405)

(8,500)

(54,712)

(7,124)

(52,673)

Net Interest Loss

(h)

22,522

32,968

36,511

44,181

51,623

49,130

49,226

Performance Fee Compensation and Benefits Adjustment

(i)

513,546

1,413,182

1,285,503

564,560

868,022

266,819

1,169,642

Equity-Based

Compensation

Non-Incentive

Fee

(j)

90,040

130,124

45,133

96,901

73,747

75,616

79,434

Fee Related Earnings

781,957

917,827

1,038,735

1,024,012

1,021,688

1,042,935

1,065,763

Net Realized Performance Fees

(k)

392,411

960,175

1,789,692

2,527,019

1,118,790

1,779,874

1,703,776

Realized Investment Income (Loss)

(l)

95,398

170,471

543,425

418,808

199,869

300,915

412,864

Net Interest (Loss)

(h)

(22,522)

(32,968)

(36,511)

(44,181)

(51,623)

(49,130)

(49,226)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

(132,325)

(156,734)

(280,788)

(90,470)

(167,149)

(90,270)

(175,679)

Distributable Earnings

1,114,919

1,858,771

3,054,553

3,835,188

2,121,575

2,984,324

2,957,498

Interest Expense

69,152

103,904

132,855

175,782

197,506

185,361

205,904

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

132,325

156,734

280,788

90,470

167,149

90,270

175,679

Depreciation and Amortization

42,235

35,441

32,300

27,213

31,971

26,578

31,895

Adjusted EBITDA

1,358,631

2,154,850

3,500,496

4,128,653

2,518,201

3,286,533

3,370,976

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Notes

Note:

See page 34, 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 removes from EI the total segment amount of Other Revenue.

(h)

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

(i)

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

to Performance Fees, including Incentive Fee Related equity-based award expense.

(j)

Represents Non-Incentive Fee Related equity-based award expense and excludes all transaction-related equity-based charges.

(k)

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.

(l)

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

(m)

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

Income

(Loss)

Before

Provision

for

Taxes

and

the

Payable

Under

Tax

Receivable Agreement.

Blackstone

Reconciliation of GAAP to Total Segment Measures

Notes on page 29.

Continued...

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Management and Advisory Fees, Net

GAAP

608,906

607,823

596,154

630,092

642,142

2,534,643

2,476,211

Elimination Adjustment

(a)

4,295

4,397

5,526

5,800

7,439

23,700

23,162

Total Segment

613,201

612,220

601,680

635,892

649,581

2,558,343

2,499,373

Performance Fees

GAAP

314,493

449,243

671,032

741,563

1,063,142

438,051

2,924,980

Elimination Adjustment

(a)

(428)

129

1,614

340

586

355

2,669

Total Segment

314,065

449,372

672,646

741,903

1,063,728

438,406

2,927,649

Investment Income (Loss)

GAAP

(8,508)

105,139

143,103

116,317

211,156

(10,069)

575,715

Consolidation and Elimination Adjustment

(b)

(18,142)

(45,368)

(55,216)

(17,035)

(107,197)

(153,373)

(224,816)

Total Segment

(26,650)

59,771

87,887

99,282

103,959

(163,442)

350,899

Interest and Dividend Revenue

GAAP

23,075

22,286

21,819

28,544

28,495

96,112

101,144

Elimination Adjustment

(c)

12,006

12,947

11,262

13,944

17,381

40,119

55,534

Total Segment

35,081

35,233

33,081

42,488

45,876

136,231

156,678

Other

GAAP

(5,612)

7,935

(423)

52,853

(4,212)

7,811

56,153

Elimination Adjustment

(a)

(636)

611

(2)

(14)

(4,075)

(687)

(3,480)

Total Segment

(6,248)

8,546

(425)

52,839

(8,287)

7,124

52,673

Total Revenues

GAAP

932,354

1,192,426

1,431,685

1,569,369

1,940,723

3,066,548

6,134,203

Consolidation and Elimination Adjustment

(d)

(2,905)

(27,284)

(36,816)

3,035

(85,866)

(89,886)

(146,931)

Total Segment

929,449

1,165,142

1,394,869

1,572,404

1,854,857

2,976,662

5,987,272

Compensation

GAAP

346,003

355,424

329,634

304,347

351,589

1,512,635

1,340,994

Consolidation Adjustment

(e)

(58,600)

(69,269)

(61,039)

(63,284)

(62,562)

(365,851)

(256,154)

Total Segment

287,403

286,155

268,595

241,063

289,027

1,146,784

1,084,840

Blackstone

Reconciliation

GAAP

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

reported

the

Consolidated

Statements

Operations

(page

1).

(a)

Represents

the

add

back

the

management,

performance,

and

other

fees

earned

from

consolidated

Blackstone

Funds

which

have

been

eliminated

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

investment

income

non-consolidated

Blackstone

Funds

which

GAAP

recorded

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)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

1Q'16 LTM

1Q'17 LTM

Other Operating Expenses

GAAP

General, Administrative and Other

123,045

130,988

124,322

141,954

106,044

568,175

503,308

Interest Expense

37,356

36,878

37,278

41,142

40,246

150,508

155,544

GAAP

160,401

167,866

161,600

183,096

146,290

718,683

658,852

Consolidation and Elimination Adjustment

(f)

(11,875)

(10,612)

(10,710)

(10,424)

7,002

(89,082)

(24,744)

Total Segment

148,526

157,254

150,890

172,672

153,292

629,601

634,108

Total Expenses

GAAP

617,710

712,603

773,777

824,484

929,650

2,566,017

3,240,514

Less: GAAP Fund Expenses

(g)

(5,229)

(8,592)

(15,128)

(23,232)

(24,076)

(67,878)

(71,028)

Consolidation and Elimination Adjustment

(d)

(70,477)

(79,879)

(71,749)

(73,708)

(55,560)

(454,935)

(280,896)

Total Segment

542,004

624,132

686,900

727,544

850,014

2,043,204

2,888,590

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

GAAP

Revenues Less Expenses

314,644

479,823

657,908

744,885

1,011,073

500,531

2,893,689

Other Income

(h)

19,142

30,703

61,395

73,510

66,132

184,658

231,740

Income Before Provision for Taxes

333,786

510,526

719,303

818,395

1,077,205

685,189

3,125,429

Consolidation and Elimination Adjustment

(i)

53,659

30,484

(11,334)

26,465

(72,362)

248,269

(26,747)

Total Segment

387,445

541,010

707,969

844,860

1,004,843

933,458

3,098,682

Blackstone

Walkdown of Financial Metrics

See pages 31 and 32, 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. 1Q’17 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 1Q’17 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 1Q’17 ENI per Unit is based on Weighted-Average ENI Adjusted Units. 1Q’17 LTM per Unit represents the sum

of the last four quarters. See page 33, Unit Rollforward.

(Dollars in Thousands, Except per Unit Data)

1Q'17

1Q'17 LTM

Results

Per Unit

Results

Per Unit

Management and Advisory Fees, Net

649,581

2,499,373

Fee Related Compensation

(262,377)

(1,005,406)

Non-Interest Operating Expenses

(96,462)

(428,204)

Fee Related Earnings

290,742

0.24

1,065,763

0.90

Net Realized Incentive Fees

27,649

112,090

Net Realized Carried Interest

745,131

1,591,686

Realized Investment Income

202,894

412,864

Net Interest (Loss)

(10,954)

(49,226)

Taxes and Related Payables

(25,324)

(175,679)

Distributable Earnings

1,230,138

1.02

2,957,498

2.42

Net Unrealized Incentive Fees

36,877

61,820

Net Unrealized Carried Interest

(150,360)

438

Unrealized Investment (Loss)

(98,935)

(61,965)

Other Revenue

(8,287)

52,673

Add Back: Related Payables

6,519

81,405

Less: Equity-Based Compensation

(29,914)

(87,461)

Economic Net Income

986,038

0.82

3,004,408

2.51

Blackstone

Walkdown

Financial

Metrics

–

Calculation

Certain

Non-GAAP

Financial

Metrics

–

Quarters

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

(a)

See

page

25,

Reconciliation

GAAP

Non-GAAP

Measures

–

Quarters

for

this

adjustment.

(b)

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

(c)

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

(Dollars in Thousands)

1Q'15

2Q'15

3Q'15

4Q'15

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

Compensation

(329,838)

(289,352)

(329,575)

(240,454)

(287,403)

(286,155)

(268,595)

(241,063)

(289,027)

Less: Equity-Based Compensation - Non-Incentive Fee Related

42,248

27,994

15,690

10,969

20,963

16,852

16,624

19,308

26,650

Fee Related Compensation

(287,590)

(261,358)

(313,885)

(229,485)

(266,440)

(269,303)

(251,971)

(221,755)

(262,377)

Other Operating Expenses

143,282

168,401

157,565

155,109

148,526

157,254

150,890

172,672

153,292

Less: Interest Expense

(38,853)

(45,437)

(44,981)

(46,511)

(48,432)

(48,779)

(47,265)

(53,030)

(56,830)

Non-Interest Operating Expenses

104,429

122,964

112,584

108,598

100,094

108,475

103,625

119,642

96,462

Realized Incentive Fees

29,670

47,819

34,785

82,472

28,450

29,363

30,295

83,993

47,137

Less: Realized Incentive Fee Compensation

(12,227)

(21,837)

(15,061)

(36,821)

(14,123)

(15,251)

(15,436)

(33,286)

(22,752)

Plus: Equity-Based Compensation - Incentive Fee Related

2,150

553

2,129

1,311

1,061

1,670

1,554

1,539

3,264

Net Realized Incentive Fees

19,593

26,535

21,853

46,962

15,388

15,782

16,413

52,246

27,649

Realized Carried Interest

1,207,594

937,483

435,189

625,610

230,909

323,734

504,022

416,250

1,111,322

Less: Realized Carried Interest Compensation

(292,248)

(238,032)

(97,799)

(165,721)

(58,503)

(87,581)

(168,427)

(141,443)

(366,191)

Net Realized Carried Interest

915,346

699,451

337,390

459,889

172,406

236,153

335,595

274,807

745,131

Interest Income and Dividend Revenue

30,451

31,026

35,459

34,665

35,081

35,233

33,081

42,488

45,876

Less: Interest Expense

(38,853)

(45,437)

(44,981)

(46,511)

(48,432)

(48,779)

(47,265)

(53,030)

(56,830)

Net Interest (Loss)

(8,402)

(14,411)

(9,522)

(11,846)

(13,351)

(13,546)

(14,184)

(10,542)

(10,954)

Taxes and Related Payables

(a)

(16,994)

(20,587)

(27,070)

(25,819)

(16,794)

(31,588)

(51,089)

(67,678)

(25,324)

Unrealized Incentive Fees

62,620

26,311

(53,346)

(42,834)

7,100

8,007

32,172

2,450

60,016

Less: Unrealized Incentive Fee Compensation

(24,961)

(6,131)

14,642

18,940

(3,448)

��

(2,689)

(13,508)

(1,489)

(23,139)

Net Unrealized Incentive Fees

37,659

20,180

(38,704)

(23,894)

3,652

5,318

18,664

961

36,877

Unrealized Carried Interest

373,852

(441,949)

(1,055,977)

(471,222)

47,606

88,268

106,157

239,210

(154,747)

Less: Unrealized Carried Interest Compensation

(74,380)

50,559

228,697

107,820

(30,001)

(75,202)

(70,044)

(137,591)

4,387

Net Unrealized Carried Interest

299,472

(391,390)

(827,280)

(363,402)

17,605

13,066

36,113

101,619

(150,360)

Related Payables

(b)

7,275

55,668

10,354

30,104

34,428

6,519

Equity-Based Compensation - Non-Incentive Fee Related

42,248

27,994

15,690

10,969

20,963

16,852

16,624

19,308

26,650

Plus: Equity-Based Compensation - Incentive Fee Related

2,150

553

2,129

1,311

1,061

1,670

1,554

1,539

3,264

Equity-Based Compensation

(c)

44,398

28,547

17,819

12,280

22,024

18,522

18,178

20,847

29,914

Blackstone

Walkdown

Financial

Metrics

–

Calculation

Certain

Non-GAAP

Financial

Metrics

–

Years

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

(a)

See

page

26,

Reconciliation

GAAP

Non-GAAP

Measures

–

Years

for

this

adjustment.

(b)

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

(c)

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

(Dollars in Thousands)

2012

2013

2014

2015

2016

1Q'16 LTM

1Q'17 LTM

Compensation

(1,030,776)

(1,115,640)

(1,153,511)

(1,189,219)

(1,083,216)

(1,146,784)

(1,084,840)

Less: Equity-Based Compensation -

Non-Incentive Fee Related

90,040

130,124

45,133

96,901

73,747

75,616

79,434

Fee Related Compensation

(940,736)

(985,516)

(1,108,378)

(1,092,318)

(1,009,469)

(1,071,168)

(1,005,406)

Other Operating Expenses

481,445

486,639

553,782

624,357

629,342

629,601

634,108

Less: Interest Expense

(69,152)

(103,904)

(132,855)

(175,782)

(197,506)

(185,361)

(205,904)

Non-Interest Operating Expenses

412,293

382,735

420,927

448,575

431,836

444,240

428,204

Realized Incentive Fees

301,464

474,333

261,745

194,746

172,101

193,526

190,788

Less: Realized Incentive Fee Compensation

(140,042)

(200,915)

(110,099)

(85,946)

(78,096)

(87,842)

(86,725)

Plus: Equity-Based Compensation -

Incentive Fee Related

3,093

6,143

5,824

5,054

8,027

Net Realized Incentive Fees

161,422

273,418

154,739

114,943

99,829

110,738

112,090

Realized Carried Interest

327,422

943,958

2,450,596

3,205,876

1,474,915

2,229,191

2,355,328

Less: Realized Carried Interest Compensation

(96,433)

(257,201)

(815,643)

(793,800)

(455,954)

(560,055)

(763,642)

Net Realized Carried Interest

230,989

686,757

1,634,953

2,412,076

1,018,961

1,669,136

1,591,686

Interest Income and Dividend Revenue

46,630

70,936

96,344

131,601

145,883

136,231

156,678

Less: Interest Expense

(69,152)

(103,904)

(132,855)

(175,782)

(197,506)

(185,361)

(205,904)

Net Interest (Loss)

(22,522)

(32,968)

(36,511)

(44,181)

(51,623)

(49,130)

(49,226)

Taxes and Related Payables (a)

(132,325)

(156,734)

(280,788)

(90,470)

(167,149)

(90,270)

(175,679)

Unrealized Incentive Fees

(29,311)

(19,928)

(29,425)

(7,249)

49,729

(62,769)

102,645

Less: Unrealized Incentive Fee Compensation

44,528

11,651

19,276

2,490

(21,134)

24,003

(40,825)

Net Unrealized Incentive Fees

15,217

(8,277)

(10,149)

(4,759)

28,595

(38,766)

61,820

Unrealized Carried Interest

994,190

2,158,010

1,708,961

(1,595,296)

481,241

(1,921,542)

278,888

Less: Unrealized Carried Interest Compensation

(321,599)

(966,717)

(379,037)

312,696

(312,838)

357,075

(278,450)

Net Unrealized Carried Interest

672,591

1,191,293

1,329,924

(1,282,600)

168,403

(1,564,467)

438

Related Payables (b)

86,617

74,570

81,276

62,943

74,886

55,668

81,405

Equity-Based Compensation -

Non-Incentive Fee Related

90,040

130,124

45,133

96,901

73,747

75,616

79,434

Plus: Equity-Based Compensation -

Incentive Fee Related

3,093

6,143

5,824

5,054

8,027

Equity-Based Compensation (c)

90,040

130,124

48,226

103,044

79,571

80,670

87,461

Blackstone

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.

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

Total

GAAP

Weighted-Average

Common

Units

Outstanding

Basic

644,897,849

646,933,698

650,917,510

655,074,617

660,939,708

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

1,332,772

1,309,402

1,495,331

1,643,603

809,184

Weighted-Average Blackstone Holdings Partnership Units

546,235,112

543,392,474

539,139,078

537,758,091

Total

GAAP

Weighted-Average

Units

Outstanding

Diluted

646,230,621

1,194,478,212

1,195,805,315

1,195,857,298

1,199,506,983

Adjustments:

Weighted-Average Blackstone Holdings Partnership Units

548,042,780

Weighted-Average Economic Net Income Adjusted Units

1,194,273,401

1,194,478,212

1,195,805,315

1,195,857,298

1,199,506,983

Economic Net Income Adjusted Units, End of Period

1,194,083,538

1,194,567,513

1,195,797,124

1,196,223,079

1,199,565,618

Total Common Units Outstanding

643,789,108

645,810,990

649,587,761

654,833,530

661,126,963

Adjustments:

Blackstone Holdings Partnership Units

543,969,293

542,206,078

542,410,515

537,393,402

535,206,716

Distributable Earnings Units Outstanding

1,187,758,401

1,188,017,068

1,191,998,276

1,192,226,932

1,196,333,679

Blackstone

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 certain long-term retention programs outside of

annual deferred compensation and other corporate actions, including acquisitions. Transaction-related charges include certain 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 (c) net interest income (loss) and (d) Other Revenue. 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 excludes amortization of 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, Advisory and Other Fees, Net (b)

Interest and Dividend Revenue, (c) Realized Performance Fees, and (d) 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 (including inter-segment interest related 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

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

results

differ

materially

from

those

indicated

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, 2016, 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.

Blackstone (BX) 8-KBlackstone Reports First Quarter 2017 Results