Blackstone (BX) 8-K Blackstone Reports Second Quarter 2017 Results

Exhibit 99.1

Blackstone Reports Second Quarter 2017 Results

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

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported strong results for our shareholders in the second quarter, which also marked the end of our first decade as a public company. The firm remains in top form – revenue, earnings, and distributions all saw double-digit growth versus the prior year, and AUM reached a new all-time high of $371 billion, having grown fourfold since the IPO. Our LPs continue to entrust us with more of their capital to manage as we extend our expertise across more investment strategies. I’m confident that our culture of excellence, integrity and innovation will continue to serve our investors in the coming decades as well as it has in our last.”

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

Distribution

Blackstone has declared a quarterly distribution of $0.54 per common unit to record holders of common units at the close of business on July 31, 2017. This distribution will be paid on August 7, 2017.

Quarterly Investor Call Details

Blackstone will host a conference call on July 20, 2017 at 11:00 a.m. ET to discuss second 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 on www.blackstone.com or by dialing +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), pass code 756 128 72#.

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 $370 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 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 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 Second Quarter 2017 Earnings

July 20, 2017

Blackstone

1

% Change

% Change

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

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Revenues

Management and Advisory Fees, Net

607,823

$     

686,586

$            

13%

1,216,729

$        

1,328,728

$        

9%

Performance Fees

Realized Carried Interest

323,734

602,160

86%

554,643

1,713,416

209%

Realized Incentive Fees

29,441

40,805

39%

57,860

87,965

52%

Unrealized Carried Interest

88,292

65,197

(26)%

135,878

(89,486)

n/m

Unrealized Incentive Fees

7,776

48,235

520%

15,355

107,644

601%

Total Performance Fees

449,243

756,397

68%

763,736

1,819,539

138%

Investment Income (Loss)

Realized

65,037

125,058

92%

53,036

376,402

610%

Unrealized

40,102

7,275

(82)%

43,595

(32,913)

n/m

Total Investment Income

105,139

132,333

26%

96,631

343,489

255%

Interest and Dividend Revenue

22,286

33,703

51%

45,361

62,198

37%

Other

7,935

(59,664)

n/m

2,323

(63,876)

n/m

Total Revenues

1,192,426

1,549,355

30%

2,124,780

3,490,078

64%

Expenses

Compensation and Benefits

Compensation

355,424

367,203

3%

701,427

718,792

2%

Performance Fee Compensation

Realized Carried Interest

87,580

195,289

123%

146,084

561,480

284%

Realized Incentive Fees

15,250

21,481

41%

29,374

44,233

51%

Unrealized Carried Interest

75,202

74,500

(1)%

105,203

70,113

(33)%

Unrealized Incentive Fees

2,689

20,600

666%

6,137

43,739

613%

Total Compensation and Benefits

536,145

679,073

27%

988,225

1,438,357

46%

General, Administrative and Other

130,988

115,281

(12)%

254,033

221,325

(13)%

Interest Expense

36,878

41,089

11%

74,234

81,335

10%

Fund Expenses

8,592

49,669

478%

13,821

73,745

434%

Total Expenses

712,603

885,112

24%

1,330,313

1,814,762

36%

Other Income

Net Gains from Fund Investment Activities

30,703

110,054

258%

49,845

176,186

253%

Income Before Provision for Taxes

510,526

$     

774,297

$           

52%

844,312

$           

1,851,502

$        

119%

Provision for Taxes

47,415

29,608

(38)%

56,561

87,045

54%

Net Income

463,111

$     

744,689

$           

61%

787,751

$           

1,764,457

$        

124%

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

(2,049)

991

n/m

(8,450)

2,991

n/m

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

64,729

112,944

74%

104,815

251,629

140%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

201,805

287,979

43%

333,007

705,237

112%

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

198,626

$     

342,775

$           

73%

358,379

$           

804,600

$           

125%

Net Income per Common Unit, Basic

0.31

$           

0.52

$                  

68%

0.55

$                  

1.21

$                  

120%

Net Income per Common Unit, Diluted

0.30

$           

0.51

$                  

70%

0.54

$                  

1.20

$                  

122%

Blackstone’s Second Quarter 2017 GAAP Results

GAAP

Net

Income

was

$745

million

for

the

quarter,

and

$1.8

billion

year-to-date.

GAAP

Net

Income

Attributable

to

The

Blackstone

Group

L.P.

was

$343

million

for

the

quarter

and

$805

million

year-to-date.

n/m = not meaningful.

Blackstone

2

Blackstone’s Second Quarter 2017 Segment Highlights

Economic

Net

Income

(“ENI”)

was

$705

million

($0.59/unit)

in

the

quarter,

up

36%

year-over-year,

on

$1.5

billion

of

Total

Segment

Revenues

from

management

fee

growth

and

strong

fund

returns.

•

ENI

was

$1.7

billion

($1.41/unit)

year-to-date

on

$3.4

billion

of

Total

Segment

Revenues.

Distributable

Earnings

(“DE”)

was

$781

million

($0.63/unit)

in

the

quarter,

up

58%

year-over-year,

with

realizations

resulting

in

$643

million

of

Realized

Performance

Fees.

•

DE

was

$2.0

billion

($1.65/unit)

year-to-date

on

$1.8

billion

of

Realized

Performance

Fees.

Fee

Related

Earnings

(“FRE”)

was

$311

million

in

the

quarter,

up

33%

year-over-year,

on

$697

million

of

Net

Management

and

Advisory

Fees.

•

FRE

was

$602

million

year-to-date,

up

25%

year-over-year,

on

$1.3

billion

of

Net

Management

and

Advisory

Fees.

Total

Assets

Under

Management

(“AUM”)

grew

to

a

record

$371.1

billion

through

a

combination

of

continued

fundraising,

organic

platform

expansion

and

fund

appreciation.

•

Inflows

were

$12.1

billion

in

the

quarter,

bringing

the

last

twelve

months

(“LTM”)

inflows

to

$57.4

billion.

•

Total

AUM

increased

4%

year-over-year

and

Fee-Earning

AUM

was

up

6%

to

$281.9

billion.

Capital

deployed

of

$8.4

billion

in

the

quarter

and

$20.2

billion

year-to-date

across

the

businesses.

Blackstone

declared

a

second

quarter

distribution

of

$0.54

per

common

unit

payable

on

August

7,

2017.

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.

Blackstone

3

Blackstone’s Second Quarter 2017 Segment Earnings

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Management and Advisory Fees, Net

612,220

$         

696,836

$         

14%

1,225,421

$      

1,346,417

$      

10%

Performance Fees

449,372

757,006

68%

763,437

1,820,734

138%

Investment Income

59,771

67,720

13%

33,121

171,679

418%

Interest Income and Dividend Revenue

35,233

53,255

51%

70,314

99,131

41%

Other

8,546

(62,469)

n/m

2,298

(70,756)

n/m

Total Revenues

1,165,142

1,512,348

30%

2,094,591

3,367,205

61%

Total Expenses

624,132

782,811

25%

1,166,136

1,632,825

40%

Taxes

21,234

24,168

14%

38,028

42,973

13%

Economic Net Income

519,776

$         

705,369

$         

36%

890,427

$         

1,691,407

$     

90%

ENI per Unit

0.44

$               

0.59

$               

34%

0.75

$               

1.41

$               

88%

Fee Related Earnings

234,442

$         

311,183

$         

33%

481,109

$         

601,925

$         

25%

Distributable Earnings

494,913

$         

781,365

$         

58%

889,128

$         

2,011,503

$     

126%

DE per Common Unit

0.41

$               

0.63

$               

54%

0.74

$               

1.65

$               

123%

Total AUM

356,281,669

$ 

371,056,281

$ 

4%

356,281,669

$ 

371,056,281

$ 

4%

Fee-Earning AUM

266,006,713

$ 

281,934,511

$ 

6%

266,006,713

$ 

281,934,511

$ 

6%

Blackstone

4

Private Equity

2.8%

2Q’17 Increase in Corporate

Private Equity Carrying Value

$2.8 billion

2Q’17 Realizations

$192

million

Net Management and Advisory Fees

up 39% YoY

Corporate

Private

Equity

carrying

value

increased

2.8%

in

the

quarter,

driven

by

appreciation

in

the

public

and

private

portfolios

across

multiple

sectors

and

industries.

Realizations

of

$2.8

billion

in

the

quarter

were

primarily

driven

by

public

sales

in

Corporate

Private

Equity

and

Strategic

Partners,

bringing

year-to-date

realizations

to

$9.0

billion.

Invested

$4.2

billion

in

the

quarter,

including

new

Corporate

Private

Equity

investments

in

Alight

Solutions

(formerly

an

Aon

Hewitt

business)

and

EagleClaw

Midstream.

•

Committed

an

additional

$1.1

billion

during

the

quarter,

mainly

driven

by

Ascend

Learning.

Total

AUM

inflows

of

$1.8

billion

and

portfolio

appreciation

in

the

quarter

drove

Total

AUM

to

$100.0

billion.

Fee-Earning

AUM

of

$68.0

billion,

leading

to

strong

Net

Management

and

Advisory

Fees

of

$192

million,

up

39%

year-over-year

due

to

the

commencement

of

the

investment

periods

for

flagship

funds.

% Change

% Change

(Dollars in Thousands)

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Management and Advisory Fees, Net

138,371

$          

191,749

$          

39%

271,091

$          

374,223

$          

38%

Performance Fees

142,103

197,857

39%

246,260

595,705

142%

Investment Income

20,160

16,154

(20)%

20,243

56,219

178%

Interest Income and Dividend Revenue

9,516

12,451

31%

19,365

23,373

21%

Other

3,395

(16,124)

n/m

1,808

(17,924)

n/m

Total Revenues

313,545

402,087

28%

558,767

1,031,596

85%

Compensation

83,140

90,844

9%

163,414

174,586

7%

Performance Fee Compensation

50,396

85,279

69%

75,119

227,556

203%

Other Operating Expenses

48,371

47,665

(1)%

96,434

90,487

(6)%

Total Expenses

181,907

223,788

23%

334,967

492,629

47%

Economic Income

131,638

$         

178,299

$         

35%

223,800

$         

538,967

$         

141%

Total AUM

99,685,655

$    

100,020,379

$  

0%

99,685,655

$    

100,020,379

$  

0%

Fee-Earning AUM

69,467,174

$    

68,030,331

$    

(2)%

69,467,174

$    

68,030,331

$    

(2)%

Blackstone

5

Real Estate

5.4%

2Q’17 Increase in Opportunistic

Funds’ Carrying Value

$73.7

billion

Fee-Earning AUM up 10% YoY

% Change

% Change

(Dollars in Thousands)

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Management Fees, Net

220,897

$          

238,934

$          

8%

453,003

$          

454,542

$          

0%

Performance Fees

193,548

494,127

155%

396,487

1,013,327

156%

Investment Income

11,027

37,080

236%

21,865

72,806

233%

Interest Income and Dividend Revenue

13,084

20,998

60%

26,272

39,165

49%

Other

2,231

(22,965)

n/m

322

(26,115)

n/m

Total Revenues

440,787

768,174

74%

897,949

1,553,725

73%

Compensation

102,888

110,266

7%

203,466

212,968

5%

Performance Fee Compensation

76,540

196,077

156%

153,610

397,673

159%

Other Operating Expenses

52,201

55,373

6%

100,298

107,342

7%

Total Expenses

231,629

361,716

56%

457,374

717,983

57%

Economic Income

209,158

$         

406,458

$         

94%

440,575

$         

835,742

$         

90%

Total AUM

103,197,060

$  

104,034,287

$  

1%

103,197,060

$  

104,034,287

$  

1%

Fee-Earning AUM

66,744,550

$    

73,710,243

$    

10%

66,744,550

$    

73,710,243

$    

10%

$4.6 billion

2Q’17 Realizations

Opportunistic

funds’

carrying

value

increased

5.4%

in

the

quarter

due

to

appreciation

in

both

the

private

and

public

investment

portfolios;

core+

funds’

carrying

value

increased

3.0%

in

the

quarter.

Sustained

strong

level

of

realizations

with

$4.6

billion

in

the

quarter

driven

by

public

stock

sales

of

Hilton-related

companies

and

Equity

Office

Properties

asset

sales,

bringing

the

year-to-date

total

to

$11.2

billion.

•

Announced

sale

of

Logicor,

the

largest

direct

owner

of

logistics

properties

in

Europe,

for

€12.25

billion.

Invested

$2.4

billion

in

the

quarter,

including

in

a

2.2

million

square

meter

European

urban

logistics

portfolio

and

two

high

quality

U.S.

apartment

portfolios.

•

Committed

an

additional

$1.8

billion

during

the

quarter,

including

three

public-to-private

transactions.

Total

AUM

inflows

of

$3.2

billion

included

€1.1

billion

for

the

final

closing

of

BREP

Europe

V,

bringing

total

capital

commitments

to

€7.8

billion,

making

it

the

largest

dedicated

European

real

estate

fund

ever;

and

$530

million

raised

for

BREDS

initial

high

grade

strategy.

•

On

July

1,

Blackstone’s

non-traded

REIT

reached

$1.0

billion

of

equity

raised

since

its

launch

in

January.

Blackstone

6

Hedge Fund Solutions

1.3%

2Q’17 BPS Composite Gross Return

The BPS Composite gross and net returns are 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), 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.

$2.0

billion

2Q’17 Total AUM Inflows

$72.5

billion

Total AUM up 6% YoY

% Change

% Change

(Dollars in Thousands)

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Management Fees, Net

130,118

$          

130,394

$          

0%

260,819

$          

259,121

$          

(1)%

Performance Fees

1,586

29,596

n/m

1,367

88,388

n/m

Investment Income (Loss)

8,842

11,803

33%

(8,194)

29,464

n/m

Interest Income and Dividend Revenue

5,205

8,769

68%

10,501

16,323

��             

55%

Other

1,125

(10,720)

n/m

(263)

(12,330)

n/m

Total Revenues

146,876

169,842

16%

264,230

380,966

44%

Compensation

44,436

47,361

7%

98,605

94,965

(4)%

Performance Fee Compensation

2,043

13,782

575%

2,711

36,312

n/m

Other Operating Expenses

27,218

26,240

(4)%

53,364

52,040

(2)%

Total Expenses

73,697

87,383

19%

154,680

183,317

19%

Economic Income

73,179

$            

82,459

$            

13%

109,550

$         

197,649

$         

80%

Total AUM

68,649,878

$    

72,476,444

$    

6%

68,649,878

$    

72,476,444

$    

6%

Fee-Earning AUM

64,973,999

$    

67,824,464

$    

4%

64,973,999

$    

67,824,464

$    

4%

The

BPS

Composite

gross

return

was

1.3%

in

the

quarter

(1.1%

net),

and

4.0%

(3.6%

net)

year-to-date,

continuing

positive

momentum

in

returns.

•

Gross

returns

of

9.5%

(8.6%

net)

for

the

LTM.

Total

inflows

of

$2.0

billion

during

the

quarter

and

$5.6

billion

year-to-date,

driven

by

customized

solutions,

commingled

products

and

individual

investor

and

specialized

solutions.

•

July

1

subscriptions

of

$457

million

are

not

yet

included

in

AUM.

Total

AUM

increased

6%

year-over-year

to

$72.5

billion,

driven

by

continued

platform

diversification,

growth

in

customized

strategies

and

individual

investor

solutions,

and

appreciation

across

strategies.

•

Fee-Earning

AUM

up

4%

year-over-year

to

$67.8

billion.

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 composite returns were 0.5%, 2.9% and 11.2% for 2Q’17, 2Q'17 YTD and 2Q'17 LTM. Distressed Strategies’ net composite returns were

(1.6)%, 0.3% and 11.0% for 2Q’17, 2Q'17

YTD and 2Q'17

LTM. The breakdown of Total AUM for 2Q’17 is as follows: Distressed Strategies $21.2 billion (34% Incentive Fee, 66% Carried Interest), Performing Credit Strategies $38.0 billion (49% Incentive

Fee, 51% Carried Interest), and Long Only $35.3

billion. The breakdown of Fee-Earning AUM for 2Q’17 is as follows: Distressed Strategies $12.9 billion (50% Incentive Fee, 50% Carried Interest), Performing Credit Strategies $25.0 billion (74% Incentive

Fee, 26% Carried Interest), and Long Only $34.5 billion.

$2.7

billion

2Q’17 Total Capital Deployed

or Committed

$94.5

billion

Total AUM up 12% YoY

2Q’17 Composite

Gross Returns

Performing Credit

1.5%

Distressed

(1.2)%

Composite

gross

returns

for

the

quarter

were

1.5%

and

(1.2)%

for

Performing

Credit

and

Distressed

Strategies,

respectively,

with

performance

impacted

by

the

decrease

in

commodity

prices

in

the

energy

portfolio.

Investment

pace

remained

strong

with

$2.7

billion

of

capital

deployed

or

committed

during

the

quarter,

capitalizing

on

investment

opportunities

predominantly

in

Europe

and

the

energy

sector.

•

Deployed

a

record

$6.0

billion

over

the

LTM,

of

which

$4.0

billion

was

deployed

year-to-date.

Total

AUM

increased

12%

year-over-year

reaching

a

record

$94.5

billion.

•

Raised

$1.3

billion

towards

the

first

closing

of

the

successor

distressed

flagship

fund

during

the

quarter,

with

an

additional

$2.9

billion

closed

subsequent

to

the

quarter

end.

•

Launched

10

CLOs

(seven

U.S.

and

three

European)

in

the

LTM

totaling

$5.7

billion,

including

$2.0

billion

launched

in

the

second

quarter

of

2017.

Fee-Earning

AUM

increased

12%

year-over-year

reaching

a

record

$72.4

billion.

% Change

% Change

(Dollars in Thousands)

2Q'16

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Management Fees, Net

122,834

$          

135,759

$          

11%

240,508

$          

258,531

$          

7%

Performance Fees

112,135

35,426

(68)%

119,323

123,314

3%

Investment Income (Loss)

19,742

2,683

(86)%

(793)

13,190

n/m

Interest Income and Dividend Revenue

7,428

11,037

49%

14,176

20,270

43%

Other

1,795

(12,660)

n/m

431

(14,387)

n/m

Total Revenues

263,934

172,245

(35)%

373,645

400,918

7%

Compensation

55,691

56,786

2%

108,073

111,765

3%

Performance Fee Compensation

51,744

16,732

(68)%

55,358

58,024

5%

Other Operating Expenses

29,464

36,406

24%

55,684

69,107

24%

Total Expenses

136,899

109,924

(20)%

219,115

238,896

9%

Economic Income

127,035

$         

62,321

$            

(51)%

154,530

$         

162,022

$         

5%

Total AUM

84,749,076

$    

94,525,171

$    

12%

84,749,076

$    

94,525,171

$    

12%

Fee-Earning AUM

64,820,990

$    

72,369,473

$    

12%

64,820,990

$    

72,369,473

$    

12%

Blackstone

8

$81.3

$84.7

$94.5

$67.8

$68.6

$72.5

$91.6

$103.2

$104.0

$92.0

$99.7

$100.0

2Q'15

2Q'16

2Q'17

Fee-Earning AUM by Segment

(Dollars in Billions)

Total AUM by Segment

(Dollars in Billions)

$332.7

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Assets Under Management

$61.6

$64.8

$72.4

$65.5

$65.0

$67.8

$62.7

$66.7

$73.7

$49.5

$69.5

$68.0

2Q'15

2Q'16

2Q'17

$356.3

$371.1

$239.3

$266.0

$281.9

Total AUM increased 4% year-over-year to $371.1 billion driven by $57.4 billion of inflows.

•

Total AUM increased despite returning $71.6 billion of capital to investors during the LTM.

Fee-Earning AUM of $281.9 billion up 6% year-over-year as $54.6 billion of inflows outpaced $47.4 billion of

realizations and outflows.

Blackstone

9

$13.5

$2.2

$11.1

$13.2

Additional Capital Detail

Undrawn

capital

(“Total

Dry

Powder”)

was

$90.0

billion,

despite

$32.8

billion

of

capital

deployed

in

the

LTM.

•

76%

of

Total

Dry

Powder

was

raised

since

the

beginning

of

2015.

Performance

Fee

Eligible

AUM

reached

$274.7

billion

at

quarter

end,

up

2%

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

$90

billion 2Q’17

Total Dry Powder

$275

billion Performance

Fee Eligible AUM

$40

billion Not Currently

Earning Management Fees

$269.2

$274.7

$250.0

Credit

Hedge Fund

Solutions

Real Estate

Private Equity

$40.1

$37.5

$31.7

$3.8

$17.0

$155.1

$129.0

$157.8

$16.2

$44.7

$25.3

$78.7

$95.5

$91.6

2Q'15

2Q'16

2Q'17

Blackstone

10

2Q'15

2Q'16

2Q'17

At

June

30,

2017,

Blackstone

had

$5.0

billion

in

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$10.

billion

of

cash

and

net

investments,

or

$8. 51

per

unit.

Blackstone

has

no

net

debt,

a

$1.5

billion

undrawn

credit

revolver

and

maintains

A+/A+

ratings.

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 $625 million, $789 million, $114 million, and $316 million, respectively, as of June 30, 2017, $782 million, $1.0 billion, $123 million, and $267 million, respectively, as of June

30, 2016 and

$1.0 billion, $1.1 billion, $133 million, and $232 million, respectively, as of June 30, 2015. Cash and Net Investments 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

$5.0

billion

Total Cash and

Corporate Treasury

$8.51

$7.62

$9.43

Cash and Net Investments

(Per Unit)

(Dollars in Millions)

2Q’17

Cash and Cash Equivalents

$

1,746

Corporate Treasury

Investments

3,300

GP/Fund Investments

1,844

Net Accrued Performance

Fees

3,292

Cash

and Net Investments

$

10,182

Outstanding

Bonds (at par)

$

3,513

2

Blackstone

11

$1,454

$718

$1,125

$1,138

$475

$629

2Q'15 LTM

2Q'16 LTM

2Q'17 LTM

$2,424

$2,130

$1,997

$1,764

$1,064

$1,028

2Q'15

2Q'16

2Q'17

Performance Fees

Net Realized Performance Fees

(Dollars in Millions)

$1,306

$1,881

$2,833

Net Accrued Performance Fees

(Dollars in Millions)

$3,321

$3,292

$4,472

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$3.3

billion

Net Accrued Performance Fees

at 2Q’17

$2.75

per unit

Net Accrued Performance Fees

at 2Q’17

Net Accrued Performance Fees per unit is calculated using period end DE Units Outstanding (see page 30, Unit Rollforward).

Net

Accrued

Performance

Fees

were

$3.3

billion

($2.75/unit),

stable

over

the

last

twelve

months

with

strong

appreciation

generating

$1.9

billion

of

additional

Net

Accrued

Performance

Fees

that

offset

$1.9

billion

of

realizations.

Appendix

Blackstone

13

Total Segments

Note: The amounts reported for LP and Total Capital Invested for the periods 3Q’16 through 1Q’17 reflect an adjustment in the Hedge Fund Solutions segment from those

previously reported.

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Revenues

Management and Advisory Fees, Net

Base Management Fees

593,996

$             

593,509

$             

623,571

$             

642,958

$             

671,368

$             

1,180,699

$          

1,314,326

$          

Transaction, Advisory and Other Fees, Net

33,620

29,021

35,618

40,222

38,892

80,219

79,114

Management Fee Offsets

(15,396)

(20,850)

(23,297)

(33,599)

(13,424)

(35,497)

(47,023)

Total Management and Advisory Fees, Net

612,220

601,680

635,892

649,581

696,836

1,225,421

1,346,417

Performance Fees

Realized Carried Interest

323,734

504,022

416,250

1,111,322

602,293

554,643

1,713,615

Realized Incentive Fees

29,363

30,295

83,993

47,137

41,106

57,813

88,243

Unrealized Carried Interest

88,268

106,157

239,210

(154,747)

65,080

135,874

(89,667)

Unrealized Incentive Fees

8,007

32,172

2,450

60,016

48,527

15,107

108,543

Total Performance Fees

449,372

672,646

741,903

1,063,728

757,006

763,437

1,820,734

Investment Income (Loss)

Realized

53,670

60,634

95,666

202,894

100,887

43,569

303,781

Unrealized

6,101

27,253

3,616

(98,935)

(33,167)

(10,448)

(132,102)

Total Investment Income

59,771

87,887

99,282

103,959

67,720

33,121

171,679

Interest Income and Dividend Revenue

35,233

33,081

42,488

45,876

53,255

70,314

99,131

Other

8,546

(425)

52,839

(8,287)

(62,469)

2,298

(70,756)

Total Revenues

1,165,142

1,394,869

1,572,404

1,854,857

1,512,348

2,094,591

3,367,205

Expenses

Compensation

286,155

268,595

241,063

289,027

305,257

573,558

594,284

Performance Fee Compensation

Realized Carried Interest

87,581

168,427

141,443

366,191

195,289

146,084

561,480

Realized Incentive Fees

15,251

15,436

33,286

22,752

21,481

29,374

44,233

Unrealized Carried Interest

75,202

70,044

137,591

(4,387)

74,500

105,203

70,113

Unrealized Incentive Fees

2,689

13,508

1,489

23,139

20,600

6,137

43,739

Total Compensation and Benefits

466,878

536,010

554,872

696,722

617,127

860,356

1,313,849

Other Operating Expenses

157,254

150,890

172,672

153,292

165,684

305,780

318,976

Total Expenses

624,132

686,900

727,544

850,014

782,811

1,166,136

1,632,825

Economic Income

541,010

$             

707,969

$             

844,860

$             

1,004,843

$         

729,537

$             

928,455

$             

1,734,380

$         

Economic Net Income

519,776

$             

686,984

$             

811,610

$             

986,038

$             

705,369

$             

890,427

$             

1,691,407

$         

Fee Related Earnings

234,442

$             

246,084

$             

294,495

$             

290,742

$             

311,183

$             

481,109

$             

601,925

$             

Distributable Earnings

494,913

$             

593,453

$             

638,994

$             

1,230,138

$         

781,365

$             

889,128

$             

2,011,503

$         

Total Assets Under Management

356,281,669

$     

361,040,173

$     

366,553,465

$     

368,196,917

$     

371,056,281

$     

356,281,669

$     

371,056,281

$     

Fee-Earning Assets Under Management

266,006,713

$     

267,757,727

$     

277,092,672

$     

280,215,551

$     

281,934,511

$     

266,006,713

$     

281,934,511

$     

Weighted Average Fee-Earning AUM

259,756,363

$     

268,503,412

$     

274,475,842

$     

279,582,971

$     

281,966,547

$     

255,511,902

$     

281,109,401

$     

LP Capital Invested

3,795,171

$          

4,136,405

$          

7,974,603

$          

9,709,930

$          

7,799,624

$          

10,310,742

$       

17,509,554

$       

Total Capital Invested

4,049,774

$          

4,310,564

$          

8,221,697

$          

11,840,913

$       

8,382,583

$          

10,743,149

$       

20,223,496

$       

Blackstone

14

Private Equity

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Revenues

Management and Advisory Fees, Net

Base Management Fees

131,477

$             

131,708

$             

160,301

$             

177,464

$             

176,555

$             

262,125

$             

354,019

$             

Transaction, Advisory and Other Fees, Net

11,089

12,892

8,972

17,200

18,947

20,009

36,147

Management Fee Offsets

(4,195)

(12,917)

(10,850)

(12,190)

(3,753)

(11,043)

(15,943)

Total Management and Advisory Fees, Net

138,371

131,683

158,423

182,474

191,749

271,091

374,223

Performance Fees

Realized Carried Interest

57,056

26,398

131,532

582,681

197,257

87,338

779,938

Unrealized Carried Interest

85,047

144,597

121,262

(184,833)

600

158,922

(184,233)

Total Performance Fees

142,103

170,995

252,794

397,848

197,857

246,260

595,705

Investment Income (Loss)

Realized

22,926

15,469

50,339

80,889

41,168

7,569

122,057

Unrealized

(2,766)

8,884

(26,401)

(40,824)

(25,014)

12,674

(65,838)

Total Investment Income

20,160

24,353

23,938

40,065

16,154

20,243

56,219

Interest Income and Dividend Revenue

9,516

9,160

11,746

10,922

12,451

19,365

23,373

Other

3,395

411

18,239

(1,800)

(16,124)

1,808

(17,924)

Total Revenues

313,545

336,602

465,140

629,509

402,087

558,767

1,031,596

Expenses

Compensation

83,140

73,889

73,154

83,742

90,844

163,414

174,586

Performance Fee Compensation

Realized Carried Interest

30,946

13,741

50,768

181,633

63,060

46,373

244,693

Unrealized Carried Interest

19,450

69,300

65,891

(39,356)

22,219

28,746

(17,137)

Total Compensation and Benefits

133,536

156,930

189,813

226,019

176,123

238,533

402,142

Other Operating Expenses

48,371

47,534

52,465

42,822

47,665

96,434

90,487

Total Expenses

181,907

204,464

242,278

268,841

223,788

334,967

492,629

Economic Income

131,638

$             

132,138

$             

222,862

$             

360,668

$             

178,299

$             

223,800

$             

538,967

$             

Total Assets Under Management

99,685,655

$       

99,722,322

$       

100,192,950

$     

99,711,406

$       

100,020,379

$     

99,685,655

$       

100,020,379

$     

Fee-Earning Assets Under Management

69,467,174

$       

69,347,910

$       

69,113,409

$       

68,231,620

$       

68,030,331

$       

69,467,174

$       

68,030,331

$       

Weighted Average Fee-Earning AUM

63,363,932

$       

69,546,251

$       

69,616,781

$       

68,618,130

$       

68,196,699

$       

60,146,649

$       

68,733,312

$       

LP Capital Invested

1,538,436

$          

1,683,747

$          

2,355,726

$          

4,736,388

$          

3,846,841

$          

3,404,134

$          

8,583,229

$          

Total Capital Invested

1,637,601

$          

1,804,304

$          

2,495,215

$          

6,748,859

$          

4,221,479

$          

3,611,992

$          

10,970,338

$       

Blackstone

15

Real Estate

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Revenues

Management Fees, Net

Base Management Fees

201,004

$              

197,629

$              

196,621

$              

197,879

$              

227,865

$              

400,911

$              

425,744

$              

Transaction and Other Fees, Net

21,112

14,190

24,228

21,279

16,087

56,906

37,366

Management Fee Offsets

(1,219)

(842)

(1,666)

(3,550)

(5,018)

(4,814)

(8,568)

Total Management Fees, Net

220,897

210,977

219,183

215,608

238,934

453,003

454,542

Performance Fees

Realized Carried Interest

266,382

461,980

274,495

519,841

389,004

467,009

908,845

Realized Incentive Fees

6,099

3,857

15,600

2,914

5,315

10,168

8,229

Unrealized Carried Interest

(84,875)

(113,449)

58,849

(22,268)

77,200

(96,397)

54,932

Unrealized Incentive Fees

5,942

14,445

9,375

18,713

22,608

15,707

41,321

Total Performance Fees

193,548

366,833

358,319

519,200

494,127

396,487

1,013,327

Investment Income (Loss)

Realized

19,929

46,704

43,104

119,579

57,599

32,904

177,178

Unrealized

(8,902)

(6,725)

16,645

(83,853)

(20,519)

(11,039)

(104,372)

Total Investment Income

11,027

39,979

59,749

35,726

37,080

21,865

72,806

Interest Income and Dividend Revenue

13,084

12,460

15,508

18,167

20,998

26,272

39,165

Other

2,231

(548)

16,749

(3,150)

(22,965)

322

(26,115)

Total Revenues

440,787

629,701

669,508

785,551

768,174

897,949

1,553,725

Expenses

Compensation

102,888

99,886

82,000

102,702

110,266

203,466

212,968

Performance Fee Compensation

Realized Carried Interest

56,441

147,419

85,686

179,925

124,292

99,517

304,217

Realized Incentive Fees

3,300

1,764

4,888

1,364

2,931

5,433

4,295

Unrealized Carried Interest

14,257

(38,972)

41,787

11,798

59,174

41,960

70,972

Unrealized Incentive Fees

2,542

6,229

3,943

8,509

9,680

6,700

18,189

Total Compensation and Benefits

179,428

216,326

218,304

304,298

306,343

357,076

610,641

Other Operating Expenses

52,201

47,908

55,756

51,969

55,373

100,298

107,342

Total Expenses

231,629

264,234

274,060

356,267

361,716

457,374

717,983

Economic Income

209,158

$              

365,467

$              

395,448

$              

429,284

$              

406,458

$              

440,575

$              

835,742

$              

Total Assets Under Management

103,197,060

$      

101,876,562

$      

101,963,652

$      

102,070,930

$      

104,034,287

$      

103,197,060

$      

104,034,287

$      

Fee-Earning Assets Under Management

66,744,550

$        

65,785,083

$        

72,030,054

$        

71,904,741

$        

73,710,243

$        

66,744,550

$        

73,710,243

$        

Weighted Average Fee-Earning AUM

67,215,301

$        

66,708,328

$        

68,688,082

$        

72,268,792

$        

73,320,319

$        

67,306,366

$        

72,769,703

$        

LP Capital Invested

1,524,415

$           

1,719,764

$           

3,978,386

$           

2,590,419

$           

2,371,918

$           

5,271,596

$           

4,962,337

$           

Total Capital Invested

1,557,192

$           

1,749,778

$           

4,048,827

$           

2,651,965

$           

2,379,922

$           

5,377,652

$           

5,031,887

$           

Blackstone

16

Hedge Fund Solutions

Note: The amounts reported for LP and Total Capital Invested for the periods 3Q’16 through 1Q’17 reflect an adjustment from those previously reported.

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Revenues

Management Fees, Net

Base Management Fees

130,123

$             

130,305

$             

131,150

$             

128,468

$             

128,698

$             

260,281

$             

257,166

$             

Transaction and Other Fees, Net

(5)

116

407

259

1,696

538

1,955

Total Management Fees, Net

130,118

130,421

131,557

128,727

130,394

260,819

259,121

Performance Fees

Realized Incentive Fees

(251)

4,572

35,172

14,684

6,995

2,433

21,679

Unrealized Carried Interest

801

(84)

(245)

3,797

143

833

3,940

Unrealized Incentive Fees

1,036

12,038

(9,354)

40,311

22,458

(1,899)

62,769

Total Performance Fees

1,586

16,526

25,573

58,792

29,596

1,367

88,388

Investment Income (Loss)

Realized

(515)

(1,211)

(753)

(632)

225

(5,260)

(407)

Unrealized

9,357

12,219

6,177

18,293

11,578

(2,934)

29,871

Total Investment Income (Loss)

8,842

11,008

5,424

17,661

11,803

(8,194)

29,464

Interest Income and Dividend Revenue

5,205

4,692

7,890

7,554

8,769

10,501

16,323

Other

1,125

(260)

8,680

(1,610)

(10,720)

(263)

(12,330)

Total Revenues

146,876

162,387

179,124

211,124

169,842

264,230

380,966

Expenses

Compensation

44,436

47,206

39,509

47,604

47,361

98,605

94,965

Performance Fee Compensation

Realized Incentive Fees

1,325

2,902

13,307

7,317

4,362

3,188

11,679

Unrealized Carried Interest

238

35

(92)

1,209

178

238

1,387

Unrealized Incentive Fees

480

4,557

(3,550)

14,004

9,242

(715)

23,246

Total Compensation and Benefits

46,479

54,700

49,174

70,134

61,143

101,316

131,277

Other Operating Expenses

27,218

27,432

27,840

25,800

26,240

53,364

52,040

Total Expenses

73,697

82,132

77,014

95,934

87,383

154,680

183,317

Economic Income

73,179

$               

80,255

$               

102,110

$             

115,190

$             

82,459

$               

109,550

$             

197,649

$             

Total Assets Under Management

68,649,878

$       

70,113,508

$       

71,119,718

$       

73,303,381

$       

72,476,444

$       

68,649,878

$       

72,476,444

$       

Fee-Earning Assets Under Management

64,973,999

$       

66,434,971

$       

66,987,553

$       

68,812,528

$       

67,824,464

$       

64,973,999

$       

67,824,464

$       

Weighted Average Fee-Earning AUM

65,520,626

$       

66,600,260

$       

67,993,100

$       

68,406,531

$       

69,301,130

$       

65,436,771

$       

68,853,830

$       

LP Capital Invested

32,804

$               

144,505

$             

260,482

$             

121,857

$             

89,985

$               

348,561

$             

211,842

$             

Total Capital Invested

32,809

$               

151,099

$             

260,742

$             

121,888

$             

93,191

$               

362,602

$             

215,079

$             

Blackstone

17

Credit

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Revenues

Management Fees, Net

Base Management Fees

131,392

$             

133,867

$             

135,499

$             

139,147

$             

138,250

$             

257,382

$             

277,397

$             

Transaction and Other Fees, Net

1,424

1,823

2,011

1,484

2,162

2,766

3,646

Management Fee Offsets

(9,982)

(7,091)

(10,781)

(17,859)

(4,653)

(19,640)

(22,512)

Total Management Fees, Net

122,834

128,599

126,729

122,772

135,759

240,508

258,531

Performance Fees

Realized Carried Interest

296

15,644

10,223

8,800

16,032

296

24,832

Realized Incentive Fees

23,515

21,866

33,221

29,539

28,796

45,212

58,335

Unrealized Carried Interest

87,295

75,093

59,344

48,557

(12,863)

72,516

35,694

Unrealized Incentive Fees

1,029

5,689

2,429

992

3,461

1,299

4,453

Total Performance Fees

112,135

118,292

105,217

87,888

35,426

119,323

123,314

Investment Income (Loss)

Realized

11,330

(328)

2,976

3,058

1,895

8,356

4,953

Unrealized

8,412

12,875

7,195

7,449

788

(9,149)

8,237

Total Investment Income (Loss)

19,742

12,547

10,171

10,507

2,683

(793)

13,190

Interest Income and Dividend Revenue

7,428

6,769

7,344

9,233

11,037

14,176

20,270

Other

1,795

(28)

9,171

(1,727)

(12,660)

431

(14,387)

Total Revenues

263,934

266,179

258,632

228,673

172,245

373,645

400,918

Expenses

Compensation

55,691

47,614

46,400

54,979

56,786

108,073

111,765

Performance Fee Compensation

Realized Carried Interest

194

7,267

4,989

4,633

7,937

194

12,570

Realized Incentive Fees

10,626

10,770

15,091

14,071

14,188

20,753

28,259

Unrealized Carried Interest

41,257

39,681

30,005

21,962

(7,071)

34,259

14,891

Unrealized Incentive Fees

(333)

2,722

1,096

626

1,678

152

2,304

Total Compensation and Benefits

107,435

108,054

97,581

96,271

73,518

163,431

169,789

Other Operating Expenses

29,464

28,016

36,611

32,701

36,406

55,684

69,107

Total Expenses

136,899

136,070

134,192

128,972

109,924

219,115

238,896

Economic Income

127,035

$             

130,109

$             

124,440

$             

99,701

$               

62,321

$               

154,530

$             

162,022

$             

Total Assets Under Management

84,749,076

$       

89,327,781

$       

93,277,145

$       

93,111,200

$       

94,525,171

$       

84,749,076

$       

94,525,171

$       

Fee-Earning Assets Under Management

64,820,990

$       

66,189,763

$       

68,961,656

$       

71,266,662

$       

72,369,473

$       

64,820,990

$       

72,369,473

$       

Weighted Average Fee-Earning AUM

63,656,504

$       

65,648,573

$       

68,177,879

$       

70,289,518

$       

71,148,399

$       

62,622,116

$       

70,752,556

$       

LP Capital Invested

699,516

$             

588,389

$             

1,380,009

$          

2,261,266

$          

1,490,880

$          

1,286,451

$          

3,752,146

$          

Total Capital Invested

822,172

$             

605,383

$             

1,416,913

$          

2,318,201

$          

1,687,991

$          

1,390,903

$          

4,006,192

$          

Blackstone

18

Unitholder Distribution

A

detailed

description

of

Blackstone’s

distribution

policy

and

the

definition

of

Distributable

Earnings

can

be

found

on

page

31,

Definitions

and

Distribution

Policy.

DE

before

Certain

Payables

represents

Distributable

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

(page 30, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common

unitholders’

share was $60 million for 2Q’17 and $159 million for 2Q’17 YTD.

Generated

$0.63

of

Distributable

Earnings

per

common

unit

during

the

quarter,

up

54%

from

the

prior

year,

bringing

the

year-to-date

amount

to

$1.65

per

common

unit.

Declared

a

quarterly

distribution

of

$0.54

per

common

unit

to

record

holders

as

of

July

31,

2017;

payable

on

August

7,

2017.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

vs. 2Q'16

2Q'16 YTD

2Q'17 YTD

vs. 2Q'16 YTD

Distributable Earnings

494,913

$    

593,453

$    

638,994

$    

1,230,138

$ 

781,365

$       

58%

889,128

$    

2,011,503

$    

126%

Add: Other Payables Attributable

   to Common Unitholders

10,438

30,576

41,304

6,632

29,808

186%

10,438

36,440

249%

DE before Certain Payables

505,351

624,029

680,298

1,236,770

811,173

61%

899,566

2,047,943

128%

Percent to Common Unitholders

54%

54%

55%

55%

56%

54%

55%

DE before Certain Payables Attributable

   to Common Unitholders

274,711

340,069

373,655

683,473

451,302

64%

488,384

1,134,775

132%

Less: Other Payables Attributable

   to Common Unitholders

(10,438)

(30,576)

(41,304)

(6,632)

(29,808)

186%

(10,438)

(36,440)

249%

DE Attributable to Common Unitholders

264,273

309,493

332,351

676,841

421,494

59%

477,946

1,098,335

130%

DE per Common Unit

0.41

$          

0.48

$          

0.51

$          

1.02

$          

0.63

$             

54%

0.74

$          

1.65

$             

123%

Less: Retained Capital per Common Unit

(0.05)

$         

(0.07)

$         

(0.04)

$         

(0.15)

$         

(0.09)

$            

80%

(0.10)

$         

(0.24)

$            

140%

Actual Distribution per Common Unit

0.36

$          

0.41

$          

0.47

$          

0.87

$          

0.54

$             

50%

0.64

$          

1.41

$             

120%

Record Date

July 31, 2017

Payable Date

Aug 7, 2017

Blackstone

19

2Q’17 Total AUM Rollforward

(Dollars in Millions)

2Q’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

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows:

BREP opportunistic funds ($1.3 billion); BREDS ($1.2 billion); BREIT ($417 million); core+ funds ($285 million).

Realizations: BREP opportunistic funds ($3.5 billion); BREP co-investment ($664 million); BREDS ($279 million); core+ funds

($127

million).

Market Activity:

Carrying value increases of 5.4% and 3.0% within the opportunistic and core+ funds, respectively.

Inflows: Individual investor and specialized solutions ($1.0 billion); customized solutions ($546 million); commingled products ($404 million).

Outflows and Realizations:

Individual investor and specialized solutions ($1.4 billion); commingled products ($1.3 billion); customized

solutions ($797 million).

Market Activity:

BAAM’s Principal Solutions Composite up 1.3% gross (1.1% net) during the quarter.

Inflows: Three new CLOs ($2.0 billion); distressed strategies ($1.5 billion); long only ($977 million); BDCs ($438 million).

Outflows and Realizations: Capital returned to investors for CLOs outside investment periods ($2.6 billion); distressed strategies

($352 million); dividends from BDCs ($247 million).

Inflows: Tactical Opportunities ($717 million); Core Private Equity ($626 million); Strategic Partners ($263 million).

Realizations: Corporate Private Equity ($2.0 billion); Strategic Partners ($557 million); Tactical Opportunities ($187 million).

Market Activity:

Carrying value increase of 2.8% within Corporate Private Equity and 4.7% within Tactical Opportunities.

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'17

99,711

$    

102,071

$  

73,303

$    

93,111

$    

368,197

$  

Inflows

1,754

3,200

1,969

5,149

12,071

Outflows

(313)

(867)

(3,361)

(1,110)

(5,651)

Realizations

(2,796)

(4,564)

(186)

(3,550)

(11,096)

Net Inflows (Outflows)

(1,355)

(2,232)

(1,578)

489

(4,676)

Market Activity

1,664

4,195

751

925

7,535

2Q'17

100,020

$  

104,034

$  

72,476

$    

94,525

$    

371,056

$  

QoQ Increase (Decrease)

0%

2%

(1)%

2%

1%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'16

99,686

$    

103,197

$  

68,650

$    

84,749

$    

356,282

$  

Inflows

10,924

12,077

11,186

23,251

57,438

Outflows

(1,257)

(1,164)

(11,106)

(6,674)

(20,201)

Realizations

(17,251)

(22,239)

(943)

(10,961)

(51,395)

Net Inflows (Outflows)

(7,585)

(11,326)

(863)

5,616

(14,158)

Market Activity

7,919

12,163

4,689

4,160

28,932

2Q'17

100,020

$  

104,034

$  

72,476

$    

94,525

$    

371,056

$  

YoY Increase

0%

1%

6%

12%

4%

Credit

Total

Blackstone

20

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

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

exchange rate fluctuations.

2Q’17 Fee-Earning AUM Rollforward

(Dollars in Millions)

2Q’17 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows: BREDS ($1.7 billion); BREP opportunistic funds ($776 million); core+ funds ($466 million); BREIT ($417 million).

Realizations: BREP opportunistic funds ($1.2 billion); BREDS ($734 million); BREP co-investment ($347 million); core+ funds ($96 million).

Inflows: Individual investor and specialized solutions ($982 million); customized solutions ($462 million); commingled

products

($361

million).

Outflows and Realizations:

Commingled products ($1.4 billion); individual investor and specialized solutions ($1.3 billion); customized

solutions ($797 million).

Inflows: Three new CLOs ($2.0 billion); mezzanine funds ($1.2 billion); long only ($895 million); BDCs ($438 million); distressed

strategies

($373 million).

Outflows and Realizations: Capital returned to investors for CLOs outside investment periods ($2.5 billion); dividends from BDCs

($247 million); distressed strategies ($221 million).

Inflows: Core Private Equity ($771 million); Tactical Opportunities ($615 million); Strategic

Partners ($470 million).

Realizations: Corporate Private Equity ($697 million); Strategic Partners ($612 million).

Fee-Earning Assets Under Management

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'17

68,232

$    

71,905

$    

68,813

$    

71,267

$    

280,216

$  

Inflows

2,242

3,376

1,805

4,924

12,348

Outflows

(1,141)

(99)

(3,330)

(904)

(5,473)

Realizations

(1,400)

(2,371)

(177)

(3,277)

(7,225)

Net Inflows (Outflows)

(299)

906

(1,701)

744

(351)

Market Activity

97

899

713

359

2,069

2Q'17

68,030

$    

73,710

$    

67,824

$    

72,369

$    

281,935

$  

QoQ

Increase (Decrease)

(0)%

3%

(1)%

2%

1%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

2Q'16

69,467

$    

66,745

$    

64,974

$    

64,821

$    

266,007

$  

Inflows

8,050

17,255

10,239

19,066

54,610

Outflows

(1,656)

(2,232)

(10,768)

(4,126)

(18,783)

Realizations

(8,349)

(9,665)

(863)

(9,744)

(28,621)

Net Inflows (Outflows)

(1,955)

5,359

(1,393)

5,196

7,207

Market Activity

518

1,607

4,243

2,353

8,721

2Q'17

68,030

$    

73,710

$    

67,824

$    

72,369

$    

281,935

$  

YoY Increase (Decrease)

(2)%

10%

4%

12%

6%

Credit

Total

Blackstone

21

Net Accrued Performance Fees

$3.3

billion

Net Accrued Performance Fees at 2Q’17

$2.75

per unit

Net Accrued Performance Fees at 2Q’17

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 30, Unit Rollforward).

Net Accrued Performance Fees

(Dollars in Millions, Except per Unit Data)

1Q'17

2Q'17

2Q'17 Per Unit

QoQ Change

Private Equity

BCP IV Carried Interest

109

$                     

86

$                        

0.07

$                    

(23)

$                      

BCP V Carried Interest

128

68

0.06

(60)

BCP VI Carried Interest

560

579

0.48

19

BEP I Carried Interest

99

89

0.07

(10)

BEP II Carried Interest

11

12

0.01

1

Tactical Opportunities Carried Interest

104

117

0.10

13

BTAS Carried Interest

21

27

0.02

6

Strategic Partners Carried Interest

38

46

0.04

8

Other Carried Interest

3

4

-

1

Total Private Equity

1,073

$                 

1,028

$                 

0.86

$                    

(45)

$                      

Real Estate

BREP IV Carried Interest

7

8

0.01

1

BREP V Carried Interest

265

238

0.20

(27)

BREP VI Carried Interest

316

229

0.19

(87)

BREP VII Carried Interest

552

544

0.45

(8)

BREP VIII Carried Interest

179

211

0.18

32

BREP Europe III Carried Interest

161

169

0.14

8

BREP Europe IV Carried Interest

289

367

0.31

78

BREP Asia Carried Interest

96

76

0.06

(20)

BPP Carried Interest

64

70

0.06

6

BPP Incentive Fees

41

48

0.04

7

BREIT Incentive Fees

-

3

-

3

BREDS Carried Interest

16

17

0.01

1

BREDS Incentive Fees

5

10

0.01

5

Asia Platform Incentive Fees

7

7

0.01

-

Total Real Estate

1,998

$                 

1,997

$                 

1.67

$                    

(1)

$                         

Hedge Fund Solutions

Incentive Fees

38

50

0.04

12

Total Hedge Fund Solutions

38

$                       

50

$                        

0.04

$                    

12

$                       

Credit

Carried Interest

195

192

0.16

(3)

Incentive Fees

26

25

0.02

(1)

Total Credit

221

$                     

217

$                      

0.18

$                     

(4)

$                         

Total Blackstone

Carried Interest

3,213

3,149

2.63

(64)

Incentive Fees

117

143

0.12

26

Net Accrued Performance Fees

3,330

$                 

3,292

$                 

2.75

$                    

(38)

$                      

Memo: Net Realized Performance Fees

91

$                      

42

$                       

0.04

$                   

(49)

$                     

Blackstone

22

Investment

Records

as

of

June

30,

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

-

1,741,739

$     

2.6x

1,741,739

$     

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

19,779

1.6x

-

2,951,018

1.4x

2,970,797

1.4x

6%

6%

BCP IV (Nov 2002 / Dec 2005)

6,773,182

212,516

1,114,368

1.1x

31%

20,289,732

3.1x

21,404,100

2.8x

41%

36%

BCP V (Dec 2005 / Jan 2011)

21,024,923

1,246,134

2,697,056

1.2x

44%

35,301,800

2.0x

37,998,856

1.9x

9%

8%

BCP VI (Jan 2011 / May 2016)

15,189,705

1,844,270

15,373,870

1.5x

23%

6,531,264

2.0x

21,905,134

1.6x

28%

13%

BEP I (Aug 2011 / Feb 2015)

2,437,608

165,197

2,813,735

1.5x

33%

882,893

1.9x

3,696,628

1.5x

38%

13%

BEP II (Feb 2015 / Feb 2021)

4,840,487

2,313,752

1,929,406

1.2x

-

-

n/a

1,929,406

1.2x

n/a

22%

BCP VII (May 2016 / May 2022)

18,536,458

14,818,376

2,536,976

1.1x

-

7,185

1.0x

2,544,161

1.1x

n/a

n/m

Total Corporate Private Equity

77,127,296

$   

20,624,820

$   

26,485,190

$   

1.3x

22%

80,147,138

$   

2.2x

106,632,328

$ 

1.9x

17%

15%

Tactical Opportunities

13,958,437

6,023,018

8,990,106

1.2x

8%

2,633,301

1.5x

11,623,407

1.3x

25%

11%

Tactical Opportunities Co-Investment and Other

3,616,700

1,122,199

2,480,339

1.2x

-

341,923

1.4x

2,822,262

1.2x

n/a

14%

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

12,832,966

2,443,900

2,732,918

n/m

-

14,602,632

n/m

17,335,550

1.5x

n/a

13%

Strategic Partners VI LBO, RE and SMA (e)

7,402,171

2,418,015

3,591,899

n/m

-

1,442,740

n/m

5,034,639

1.4x

n/a

22%

Strategic Partners VII (e)

7,489,970

5,318,682

1,008,618

n/m

-

91,547

n/m

1,100,165

1.3x

n/a

n/m

Strategic Partners RA II (e)

249,384

50,889

137,161

n/m

-

-

n/m

137,161

1.0x

n/a

n/m

BCEP (f)

4,755,133

4,150,911

604,222

1.0x

-

-

n/a

604,222

1.0x

n/a

n/a

Other Funds and Co-Investment (g)

1,502,885

353,556

45,120

0.8x

40%

636,117

0.9x

681,237

0.9x

n/a

n/a

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

-

378,800

0.5x

29%

4,160,477

2.2x

4,539,277

1.7x

31%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

-

2,295,369

2.0x

18%

10,866,833

2.3x

13,162,202

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

557,693

2,631,405

2.1x

35%

24,422,587

2.5x

27,053,992

2.5x

14%

13%

BREP VII (Aug 2011 / Apr 2015)

13,493,814

2,172,461

14,166,287

1.7x

17%

12,106,365

1.9x

26,272,652

1.8x

26%

18%

BREP VIII (Apr 2015 / Oct 2020)

16,418,814

10,189,921

8,468,959

1.4x

1%

2,219,794

1.2x

10,688,753

1.3x

20%

19%

Total Global BREP

51,953,653

$   

12,920,075

$   

27,940,820

$   

1.6x

14%

61,310,974

$   

2.2x

89,251,794

$   

2.0x

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%

23%

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

1,629,748

-

244,412

0.7x

39%

2,131,289

2.0x

2,375,701

1.7x

9%

6%

BREP Europe III (Jun 2008 / Sep 2013)

3,205,140

465,159

2,886,818

1.9x

-

3,238,060

2.2x

6,124,878

2.1x

22%

16%

BREP Europe IV (Sep 2013 / Dec 2016)

6,707,621

1,480,234

8,603,484

1.6x

3%

1,401,874

1.6x

10,005,358

1.6x

25%

19%

BREP Europe V (Dec 2016 / Jun 2022)

7,802,759

6,991,347

767,126

1.0x

-

-

n/a

767,126

1.0x

n/a

n/m

Total Euro BREP

20,169,440

€

8,936,740

€

12,501,840

€

1.6x

3%

8,140,239

€

2.0x

20,642,079

€

1.7x

16%

14%

BREP Co-Investment (h)

6,819,065

$     

146,573

$         

2,568,442

$     

1.7x

59%

10,854,235

$   

2.1x

13,422,677

$   

2.0x

16%

16%

BREP Asia (Jun 2013 / Dec 2017)

5,088,136

2,918,305

2,989,782

1.4x

1%

2,158,819

1.7x

5,148,601

1.5x

22%

17%

Total BREP

88,557,606

$   

26,196,073

$   

48,710,260

$   

1.6x

12%

85,150,346

$   

2.2x

133,860,606

$ 

1.9x

18%

16%

BPP (i)

14,365,011

$   

3,271,785

$     

14,037,128

$   

1.2x

-

107,286

$         

1.9x

14,144,414

$   

1.2x

36%

12%

BREDS (j)

12,830,654

$   

6,332,716

$     

3,112,829

$     

1.2x

-

7,058,499

$     

1.3x

10,171,328

$   

1.3x

12%

11%

Blackstone

23

Investment

Records

as

of

June

30,

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 of Return (“IRR”) represents the annualized inception to June 30, 2017 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. Excludes BREIT.

(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

$      

2,640,212

$      

676,387

$          

1.0x

-

143,817

$          

n/a

820,204

$          

1.3x

n/a

4%

BSCH Co-Investment

75,500

31,237

42,270

0.9x

-

4,298

n/a

46,568

1.0x

n/a

1%

Total Hedge Fund Solutions

3,376,100

$      

2,671,449

$      

718,657

$          

1.0x

-

148,115

$          

n/a

866,772

$          

1.2x

n/a

4%

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

$      

99,280

$            

146,709

$          

1.2x

-

4,679,765

$      

1.6x

4,826,474

$      

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

1,149,661

3,512,723

1.1x

-

2,656,386

1.5x

6,169,109

1.3x

n/a

13%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

4,615,989

1,602,966

1.1x

-

-

n/a

1,602,966

1.1x

n/a

n/m

Stressed / Distressed Investing I (Sep 2009 / May 2013)

3,253,143

275,335

814,905

1.1x

-

5,120,819

1.5x

5,935,724

1.4x

n/a

11%

Stressed / Distressed Investing II (Jun 2013 / Jun 2018)

5,125,000

1,232,781

3,600,590

1.2x

-

1,338,835

1.3x

4,939,425

1.2x

n/a

15%

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,866

1,705,293

934,990

1.1x

-

172,602

1.5x

1,107,592

1.2x

n/a

20%

Euro

European Senior Debt Fund (Feb 2015 / Feb 2018)

1,964,689

€      

1,994,714

€      

1,537,353

€      

1.0x

-

215,224

€          

1.2x

1,752,577

€      

1.0x

n/a

5%

Total Credit

26,260,552

$    

11,353,411

$    

12,362,599

$    

1.1x

-

14,206,434

$    

1.5x

26,569,033

$    

1.3x

n/a

14%

Blackstone

24

Reconciliation of GAAP to Non-GAAP Measures

Notes on page 25.

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Net Income Attributable to The Blackstone Group L.P.

198,626

$    

312,905

$    

367,951

$    

461,825

$    

342,775

$    

358,379

$    

804,600

$    

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

201,805

285,267

342,010

417,258

287,979

333,007

705,237

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

64,729

82,653

58,684

138,685

112,944

104,815

251,629

Net Income (Loss) Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

(2,049)

10,764

1,663

2,000

991

(8,450)

2,991

Net Income

463,111

$    

691,589

$    

770,308

$    

1,019,768

$

744,689

$    

787,751

$    

1,764,457

$

Provision for Taxes

47,415

27,714

48,087

57,437

29,608

56,561

87,045

Income Before Provision for Taxes

510,526

$    

719,303

$    

818,395

$    

1,077,205

$

774,297

$    

844,312

$    

1,851,502

$

Transaction-Related Charges

(a)

69,956

60,029

70,816

56,979

57,831

134,092

114,810

Amortization of Intangibles

(b)

23,208

22,054

15,996

11,344

11,344

46,416

22,688

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

(c)

(62,680)

(93,417)

(60,347)

(140,685)

(113,935)

(96,365)

(254,620)

Economic Income

541,010

$    

707,969

$    

844,860

$    

1,004,843

$

729,537

$    

928,455

$    

1,734,380

$

(Taxes)

(d)

(21,234)

(20,985)

(33,250)

(18,805)

(24,168)

(38,028)

(42,973)

Economic Net Income

519,776

$    

686,984

$    

811,610

$    

986,038

$    

705,369

$    

890,427

$    

1,691,407

$

Taxes

(d)

21,234

20,985

33,250

18,805

24,168

38,028

42,973

Performance Fee Adjustment

(e)

(449,372)

(672,646)

(741,903)

(1,063,728)

(757,006)

(763,437)

(1,820,734)

Investment (Income) Adjustment

(f)

(59,771)

(87,887)

(99,282)

(103,959)

(67,720)

(33,121)

(171,679)

Other Revenue

(g)

(8,546)

425

(52,839)

8,287

62,469

(2,298)

70,756

Net Interest Loss

(h)

13,546

14,184

10,542

10,954

6,591

26,897

17,545

Performance Fee Compensation and Benefits Adjustment

(i)

180,723

267,415

313,809

407,695

311,870

286,798

719,565

Equity-Based

Compensation

-

Non-Incentive

Fee

Related

(j)

16,852

16,624

19,308

26,650

25,442

37,815

52,092

Fee Related Earnings

234,442

$    

246,084

$    

294,495

$    

290,742

$    

311,183

$    

481,109

$    

601,925

$    

Net Realized Performance Fees

(k)

251,935

352,008

327,053

772,780

429,177

439,729

1,201,957

Realized Investment Income

(l)

53,670

60,634

95,666

202,894

100,887

43,569

303,781

Net Interest (Loss)

(h)

(13,546)

(14,184)

(10,542)

(10,954)

(6,591)

(26,897)

(17,545)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

(31,588)

(51,089)

(67,678)

(25,324)

(53,291)

(48,382)

(78,615)

Distributable Earnings

494,913

$    

593,453

$    

638,994

$    

1,230,138

$

781,365

$    

889,128

$    

2,011,503

$

Interest Expense

(n)

48,779

47,265

53,030

56,830

59,846

97,211

116,676

Taxes and Related Payables Including Payable Under Tax Receivable Agreement

(m)

31,588

51,089

67,678

25,324

53,291

48,382

78,615

Depreciation and Amortization

6,331

7,338

12,010

6,216

6,392

12,623

12,608

Adjusted EBITDA

581,611

$    

699,145

$    

771,712

$    

1,318,508

$

900,894

$    

1,047,344

$

2,219,402

$

(o)

Blackstone

25

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Notes

Note:

See page 31, Definitions and Distribution Policy.

(a)

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

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

programs outside of annual deferred compensation and other corporate actions.

(b)

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

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

(c)

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

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

CLO Entities.

(d)

Taxes represent the 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

on

Income

(Loss)

Before

Provision

for

Taxes

and

the

Payable

Under

Tax

Receivable Agreement.

(n)

Represents Interest Expense, including inter-segment interest related expense.

(o)

Effective January 1, 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

26

Reconciliation of GAAP to Total Segment Measures

Notes on page 27.

Continued...

(Dollars in Thousands)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Management and Advisory Fees, Net

GAAP

607,823

$        

596,154

$        

630,092

$        

642,142

$        

686,586

$        

1,216,729

$     

1,328,728

$     

Elimination Adjustment

(a)

4,397

5,526

5,800

7,439

10,250

8,692

17,689

Total Segment

612,220

$        

601,680

$        

635,892

$        

649,581

$        

696,836

$        

1,225,421

$     

1,346,417

$     

Performance Fees

GAAP

449,243

$        

671,032

$        

741,563

$        

1,063,142

$     

756,397

$        

763,736

$        

1,819,539

$     

Elimination Adjustment

(a)

129

1,614

340

586

609

(299)

1,195

Total Segment

449,372

$        

672,646

$        

741,903

$        

1,063,728

$     

757,006

$        

763,437

$        

1,820,734

$     

Investment Income

GAAP

105,139

$        

143,103

$        

116,317

$        

211,156

$        

132,333

$        

96,631

$          

343,489

$        

Consolidation and Elimination Adjustment

(b)

(45,368)

(55,216)

(17,035)

(107,197)

(64,613)

(63,510)

(171,810)

Total Segment

59,771

$          

87,887

$          

99,282

$          

103,959

$        

67,720

$          

33,121

$          

171,679

$        

Interest and Dividend Revenue

GAAP

22,286

$          

21,819

$          

28,544

$          

28,495

$          

33,703

$          

45,361

$          

62,198

$          

Elimination Adjustment

(c)

12,947

11,262

13,944

17,381

19,552

24,953

36,933

Total Segment

35,233

$          

33,081

$          

42,488

$          

45,876

$          

53,255

$          

70,314

$          

99,131

$          

Other

GAAP

7,935

$            

(423)

$              

52,853

$          

(4,212)

$           

(59,664)

$         

2,323

$            

(63,876)

$         

Elimination Adjustment

(a)

611

(2)

(14)

(4,075)

(2,805)

(25)

(6,880)

Total Segment

8,546

$            

(425)

$              

52,839

$          

(8,287)

$           

(62,469)

$         

2,298

$            

(70,756)

$         

Total Revenues

GAAP

1,192,426

$     

1,431,685

$     

1,569,369

$     

1,940,723

$     

1,549,355

$     

2,124,780

$     

3,490,078

$     

Consolidation and Elimination Adjustment

(d)

(27,284)

(36,816)

3,035

(85,866)

(37,007)

(30,189)

(122,873)

Total Segment

1,165,142

$     

1,394,869

$     

1,572,404

$     

1,854,857

$     

1,512,348

$     

2,094,591

$     

3,367,205

$     

Compensation

GAAP

355,424

$        

329,634

$        

304,347

$        

351,589

$        

367,203

$        

701,427

$        

718,792

$        

Consolidation Adjustment

(e)

(69,269)

(61,039)

(63,284)

(62,562)

(61,946)

(127,869)

(124,508)

Total Segment

286,155

$        

268,595

$        

241,063

$        

289,027

$        

305,257

$        

573,558

$        

594,284

$        

Blackstone

27

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,

performance,

and

other

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)

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

2Q'16 YTD

2Q'17 YTD

Other Operating Expenses

GAAP

General, Administrative and Other

130,988

$         

124,322

$         

141,954

$         

106,044

$         

115,281

$         

254,033

$         

221,325

$         

Interest Expense

36,878

37,278

41,142

40,246

41,089

74,234

81,335

GAAP

167,866

$         

161,600

$         

183,096

$         

146,290

$         

156,370

$         

328,267

$         

302,660

$         

Consolidation and Elimination Adjustment

(f)

(10,612)

(10,710)

(10,424)

7,002

9,314

(22,487)

16,316

Total Segment

157,254

$         

150,890

$         

172,672

$         

153,292

$         

165,684

$         

305,780

$         

318,976

$         

Total Expenses

GAAP

712,603

$         

773,777

$         

824,484

$         

929,650

$         

885,112

$         

1,330,313

$      

1,814,762

$      

Less: GAAP Fund Expenses

(g)

(8,592)

(15,128)

(23,232)

(24,076)

(49,669)

(13,821)

(73,745)

Consolidation and Elimination Adjustment

(d)

(79,879)

(71,749)

(73,708)

(55,560)

(52,632)

(150,356)

(108,192)

Total Segment

624,132

$         

686,900

$         

727,544

$         

850,014

$         

782,811

$         

1,166,136

$      

1,632,825

$      

GAAP Income Before Provision for Taxes to Total Segment Economic Income

GAAP

Revenues Less Expenses

479,823

657,908

744,885

1,011,073

664,243

794,467

1,675,316

Other Income

(h)

30,703

61,395

73,510

66,132

110,054

49,845

176,186

Income Before Provision for Taxes

510,526

719,303

818,395

1,077,205

774,297

844,312

1,851,502

Consolidation and Elimination Adjustment

(i)

30,484

(11,334)

26,465

(72,362)

(44,760)

84,143

(117,122)

Total Segment

541,010

$         

707,969

$         

844,860

$         

1,004,843

$      

729,537

$         

928,455

$         

1,734,380

$      

Blackstone

28

Walkdown of Financial Metrics

See page 29, Walkdown of Financial Metrics –

Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on

page

13, Total Segments. 2Q’17 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 2Q’17 DE per Unit is based on DE attributable to Common Unitholders (see page 18,

Unitholder Distribution) and end of period Total Common Units Outstanding; and 2Q’17 ENI per Unit is based on Weighted-Average ENI Adjusted Units. 2Q’17 YTD per Unit represents the sum of

the last two quarters. See page 30, Unit Rollforward.

(Dollars in Thousands, Except per Unit Data)

2Q'17

2Q'17 YTD

Results

Per Unit

Results

Per Unit

Management and Advisory Fees, Net

696,836

$               

1,346,417

$           

Fee Related Compensation

(279,815)

(542,192)

Non-Interest Operating Expenses

(105,838)

(202,300)

Fee Related Earnings

311,183

$               

0.26

$                     

601,925

$                

0.50

$                      

Net Realized Incentive Fees

22,173

49,822

Net Realized Carried Interest

407,004

1,152,135

Realized Investment Income

100,887

303,781

Net Interest (Loss)

(6,591)

(17,545)

Taxes and Related Payables

(53,291)

(78,615)

Distributable Earnings

781,365

$               

0.63

$                     

2,011,503

$           

1.65

$                      

Net Unrealized Incentive Fees

27,927

64,804

Net Unrealized Carried Interest

(9,420)

(159,780)

Unrealized Investment (Loss)

(33,167)

(132,102)

Other Revenue

(62,469)

(70,756)

Add Back: Related Payables

29,123

35,642

Less: Equity-Based Compensation

(27,990)

(57,904)

Economic Net Income

705,369

$               

0.59

$                     

1,691,407

$           

1.41

$                      

Blackstone

29

Walkdown of Financial Metrics –

Calculation of Non-GAAP Financial Metrics

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

(a)

See page 24, Reconciliation of GAAP to Non-GAAP Measures 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)

2Q'17

2Q'17 YTD

Compensation

(305,257)

$        

(594,284)

$        

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

25,442

52,092

Fee Related Compensation

(279,815)

$       

(542,192)

$       

Other Operating Expenses

165,684

318,976

Less: Interest Expense

(a)

(59,846)

(116,676)

Non-Interest Operating Expenses

105,838

$         

202,300

$         

Realized Incentive Fees

41,106

88,243

Less: Realized Incentive Fee Compensation

(21,481)

(44,233)

Plus: Equity-Based Compensation - Incentive Fee Related

2,548

5,812

Net Realized Incentive Fees

22,173

$           

49,822

$           

Realized Carried Interest

602,293

1,713,615

Less: Realized Carried Interest Compensation

(195,289)

(561,480)

Net Realized Carried Interest

407,004

$         

1,152,135

$     

Interest Income and Dividend Revenue

53,255

99,131

Less: Interest Expense

(a)

(59,846)

(116,676)

Net Interest (Loss)

(6,591)

$            

(17,545)

$          

Taxes and Related Payables

(a)

(53,291)

$          

(78,615)

$          

Unrealized Incentive Fees

48,527

108,543

Less: Unrealized Incentive Fee Compensation

(20,600)

(43,739)

Net Unrealized Incentive Fees

27,927

$           

64,804

$           

Unrealized Carried Interest

65,080

(89,667)

Less: Unrealized Carried Interest Compensation

(74,500)

(70,113)

Net Unrealized Carried Interest

(9,420)

$            

(159,780)

$       

Related Payables

(b)

29,123

$           

35,642

$           

Equity-Based Compensation - Non-Incentive Fee Related

25,442

52,092

Plus: Equity-Based Compensation - Incentive Fee Related

2,548

5,812

Equity-Based Compensation

(c)

27,990

$           

57,904

$           

Blackstone

30

Unit Rollforward

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

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

distributions.

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

Total GAAP Weighted-Average Common Units Outstanding - Basic

646,933,698

650,917,510

655,074,617

660,939,708

664,681,299

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

1,309,402

1,495,331

1,643,603

809,184

998,974

Weighted-Average Blackstone Holdings Partnership Units

546,235,112

543,392,474

539,139,078

537,758,091

534,326,066

Total GAAP Weighted-Average Units Outstanding - Diluted

1,194,478,212

1,195,805,315

1,195,857,298

1,199,506,983

1,200,006,339

Weighted-Average Economic Net Income Adjusted Units

1,194,478,212

1,195,805,315

1,195,857,298

1,199,506,983

1,200,006,339

Economic Net Income Adjusted Units, End of Period

1,194,567,513

1,195,797,124

1,196,223,079

1,199,565,618

1,199,890,628

Total Common Units Outstanding

645,810,990

649,587,761

654,833,530

661,126,963

665,503,840

Adjustments:

Blackstone Holdings Partnership Units

542,206,078

542,410,515

537,393,402

535,206,716

530,678,056

Distributable Earnings Units Outstanding

1,188,017,068

1,191,998,276

1,192,226,932

1,196,333,679

1,196,181,896

Blackstone

31

Definitions and Distribution Policy

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

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

•

Blackstone uses Economic Income, or “EI”, as a key measure of value creation, a benchmark of its performance and in making resource deployment

and compensation decisions across its 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), (d) equity-based compensation, and (e) 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

32

Forward-Looking Statements

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

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

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

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

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

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

outcomes

or

results

to

differ

materially

from

those

indicated

in

these

statements.

Blackstone

believes

these

factors

include

but

are

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

December 31, 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.