Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 22, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | BX | ||
Entity Registrant Name | BLACKSTONE GROUP L.P. | ||
Entity Central Index Key | 1,393,818 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 659,087,647 | ||
Entity Public Float | $ 21,400 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and Cash Equivalents | $ 1,992,497 | $ 1,837,253 |
Cash Held by Blackstone Funds and Other | 1,929,531 | 1,005,161 |
Investments (including assets pledged of $169,746 and $119,139 at December 31, 2017 and December 31, 2016, respectively) | 24,434,049 | 17,694,975 |
Accounts Receivable | 887,162 | 772,695 |
Reverse Repurchase Agreements | 0 | 118,495 |
Due from Affiliates | 2,028,984 | 1,442,378 |
Intangible Assets, Net | 409,828 | 262,604 |
Goodwill | 1,778,192 | 1,718,519 |
Other Assets | 242,697 | 264,788 |
Deferred Tax Assets | 725,970 | 1,286,469 |
Total Assets | 34,428,910 | 26,403,337 |
Liabilities and Partners' Capital | ||
Loans Payable | 14,815,436 | 8,866,366 |
Due to Affiliates | 937,158 | 1,321,772 |
Accrued Compensation and Benefits | 2,630,019 | 2,327,762 |
Securities Sold, Not Yet Purchased | 154,380 | 215,398 |
Repurchase Agreements | 118,840 | 75,324 |
Accounts Payable, Accrued Expenses and Other Liabilities | 2,043,522 | 1,081,782 |
Total Liabilities | 20,699,355 | 13,888,404 |
Commitments and Contingencies | ||
Redeemable Non-Controlling Interests in Consolidated Entities | 210,944 | 185,390 |
The Blackstone Group L.P. Partners' Capital | ||
Partners' Capital (common units: 659,526,093 issued and outstanding as of December 31, 2017; 643,459,542 issued and outstanding as of December 31, 2016) | 6,670,365 | 6,523,929 |
Accumulated Other Comprehensive Income | (34,018) | (62,887) |
Total The Blackstone Group L.P. Partners' Capital | 6,636,347 | 6,461,042 |
Non-Controlling Interests in Consolidated Entities | 3,253,148 | 2,428,964 |
Non-Controlling Interests in Blackstone Holdings | 3,629,116 | 3,439,537 |
Total Partners' Capital | 13,518,611 | 12,329,543 |
Total Liabilities and Partners' Capital | $ 34,428,910 | $ 26,403,337 |
Consolidated Statements of Fin3
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Investments assets pledged | $ 169,746 | $ 119,139 |
Partners' Capital, common units: issued | 659,526,093 | 643,459,542 |
Partners' Capital, common units: outstanding | 659,526,093 | 643,459,542 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | $ 15,050,406 | $ 7,579,381 |
Liabilities | 13,158,295 | 6,232,064 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | Securities Sold, Not Yet Purchased | ||
Liabilities | 89,907 | 81,309 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | Investments | ||
Assets | 12,948,653 | 6,459,355 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | Accounts Receivable | ||
Assets | 470,156 | 355,364 |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | Repurchase Agreements | ||
Liabilities | 118,840 | 66,221 |
Consolidated Blackstone Funds | Loans Payable | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 11,300,621 | 5,466,444 |
Cash Held by Funds and Other | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 1,580,296 | 740,760 |
Due from Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 46,112 | 21,300 |
Other Assets | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 5,189 | 2,602 |
Due to Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 86,393 | 72,609 |
Accounts Payable, Accrued Expenses and Other Liabilities | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | $ 1,562,534 | $ 545,481 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Management and Advisory Fees, Net | $ 2,729,056 | $ 2,442,975 | $ 2,542,505 |
Performance Fees | |||
Performance Fees Realized - Carried Interest | 3,439,754 | 1,474,830 | 3,205,290 |
Performance Fees Realized - Incentive Fees | 374,571 | 170,537 | 193,238 |
Performance Fees Unrealized - Carried Interest | (100,477) | 481,304 | (1,595,174) |
Performance Fees Unrealized - Incentive Fees | (8,692) | 49,660 | (6,688) |
Total Performance Fees | 3,705,156 | 2,176,331 | 1,796,666 |
Investment Income (Loss) | |||
Realized | 635,769 | 278,737 | 555,171 |
Unrealized | 42,605 | 77,314 | (350,529) |
Total Investment Income | 678,374 | 356,051 | 204,642 |
Interest and Dividend Revenue | 139,696 | 95,724 | 94,957 |
Other | (133,229) | 54,753 | 7,782 |
Total Revenues | 7,119,053 | 5,125,834 | 4,646,552 |
Expenses | |||
Compensation and Benefits Compensation | 1,442,485 | 1,335,408 | 1,726,191 |
Performance Fee Compensation | |||
Performance Fee Compensation - Realized Carried Interest | 1,226,561 | 455,954 | 793,801 |
Performance Fee Compensation - Realized Incentive Fees | 160,683 | 78,096 | 85,945 |
Performance Fee Compensation - Unrealized Carried Interest | 105,372 | 312,838 | (312,696) |
Performance Fee Compensation - Unrealized Incentive Fees | (4,286) | 21,134 | (2,490) |
Total Compensation and Benefits | 2,930,815 | 2,203,430 | 2,290,751 |
General, Administrative and Other | 466,316 | 520,309 | 576,103 |
Interest Expense | 197,486 | 152,654 | 144,522 |
Fund Expenses | 132,787 | 52,181 | 79,499 |
Total Expenses | 3,727,404 | 2,928,574 | 3,090,875 |
Other Income | |||
Reduction of Tax Receivable Agreement Liability | 403,855 | 82,707 | |
Net Gains from Fund Investment Activities | 321,597 | 184,750 | 176,364 |
Total Other Income | 725,452 | 184,750 | 259,071 |
Income Before Provision for Taxes | 4,117,101 | 2,382,010 | 1,814,748 |
Provision for Taxes | 743,147 | 132,362 | 190,398 |
Net Income | 3,373,954 | 2,249,648 | 1,624,350 |
Net Income Attributable to Redeemable Non- Controlling Interests in Consolidated Entities | 13,806 | 3,977 | 11,145 |
Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 497,439 | 246,152 | 219,900 |
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 1,391,879 | 960,284 | 683,516 |
Net Income Attributable to The Blackstone Group L.P. | $ 1,470,830 | $ 1,039,235 | $ 709,789 |
Net Income Per Common Unit | |||
Common Units, Basic | $ 2.21 | $ 1.60 | $ 1.12 |
Common Units, Diluted | $ 2.21 | $ 1.56 | $ 1.04 |
Weighted-Average Common Units Outstanding | |||
Common Units, Basic | 665,453,198 | 649,475,264 | 634,337,179 |
Common Units, Diluted | 666,246,846 | 1,195,114,590 | 1,188,085,411 |
Revenues Earned from Affiliates | |||
Management and Advisory Fees, Net | $ 161,153 | $ 185,769 | $ 210,672 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income | $ 3,373,954 | $ 2,249,648 | $ 1,624,350 |
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | 80,366 | (22,194) | (49,238) |
Comprehensive Income | 3,454,320 | 2,227,454 | 1,575,112 |
Less: Comprehensive Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 13,806 | 3,977 | 11,145 |
Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities | 548,936 | 234,326 | 202,318 |
Comprehensive Income Attributable to Non-Controlling Interests in Blackstone Holdings | 1,391,879 | 960,284 | 683,516 |
Comprehensive Income Attributable to The Blackstone Group L.P. | $ 1,499,699 | $ 1,028,867 | $ 678,133 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Common Units | Appropriated Partners' Capital | Accumulated Other Comprehensive (Loss) | Parent | Noncontrolling InterestConsolidated Entities | Noncontrolling InterestBlackstone Holdings |
Beginning Balance at Dec. 31, 2014 | $ 14,891,693 | $ 6,999,830 | $ 81,301 | $ (20,864) | $ 7,060,267 | $ 3,415,356 | $ 4,416,070 |
Beginning Balance, Units at Dec. 31, 2014 | 595,624,855 | ||||||
Deconsolidation of CLOs and Funds on Adoption of ASU 2015-02 | (1,093,656) | (90,928) | (90,928) | (1,002,728) | |||
Net Income | 1,613,205 | $ 709,789 | 709,789 | 219,900 | 683,516 | ||
Currency Translation Adjustment | (71,130) | (31,655) | (31,655) | (39,475) | |||
Capital Contributions | 491,456 | 491,456 | |||||
Capital Distributions | (4,160,882) | (1,812,602) | (1,812,602) | (663,536) | (1,684,744) | ||
Distributions Associated with the Spin-Off | (367,238) | (232,034) | (232,034) | (135,204) | |||
Transfer of Non-Controlling Interests in Consolidated Entities | (12,272) | (12,272) | |||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non- Controlling Interest Holders | 65,027 | 65,027 | 65,027 | ||||
Equity-Based Compensation | 671,882 | 356,440 | 356,440 | 315,442 | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (61,031) | $ (59,128) | (59,128) | (1,903) | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 12,180,703 | ||||||
Excess Tax Benefits Related to Equity-Based Compensation, Net | 70,317 | $ 70,317 | 70,317 | ||||
Change in The Blackstone Group L.P.'s Ownership Interest | (92,785) | 92,785 | 92,785 | (92,785) | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 131,883 | 131,883 | (131,883) | ||||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 16,644,604 | ||||||
Ending Balance at Dec. 31, 2015 | 12,046,998 | $ 6,322,307 | (52,519) | 6,269,788 | 2,408,701 | 3,368,509 | |
Ending Balance, Units at Dec. 31, 2015 | 624,450,162 | ||||||
Beginning Balance at Dec. 31, 2014 | 2,441,854 | ||||||
Deconsolidation of CLOs and Funds on Adoption of ASU 2015-02 | (2,258,289) | ||||||
Net Income | 11,145 | ||||||
Capital Contributions | 2,357 | ||||||
Capital Distributions | (13,608) | ||||||
Ending Balance at Dec. 31, 2015 | 183,459 | ||||||
Adjustment to Appropriated Partners' Capital on Adoption of ASU 2014-13 | 9,627 | $ 9,627 | 9,627 | ||||
Net Income | 2,245,671 | $ 1,039,235 | 1,039,235 | 246,152 | 960,284 | ||
Currency Translation Adjustment | (22,194) | (10,368) | (10,368) | (11,826) | |||
Capital Contributions | 324,630 | 324,630 | |||||
Capital Distributions | (2,549,084) | (1,068,017) | (1,068,017) | (530,415) | (950,652) | ||
Transfer of Non-Controlling Interests in Consolidated Entities | (8,278) | (8,278) | |||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non- Controlling Interest Holders | 5,369 | 5,369 | 5,369 | ||||
Equity-Based Compensation | 314,054 | 166,206 | 166,206 | 147,848 | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (27,623) | $ (26,572) | (26,572) | (1,051) | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 6,241,282 | ||||||
Change in The Blackstone Group L.P.'s Ownership Interest | (7,881) | $ 7,881 | 7,881 | (7,881) | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 77,520 | 77,520 | (77,520) | ||||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 12,768,098 | ||||||
Ending Balance at Dec. 31, 2016 | 12,329,543 | $ 6,523,929 | (62,887) | 6,461,042 | 2,428,964 | 3,439,537 | |
Ending Balance, Units at Dec. 31, 2016 | 643,459,542 | ||||||
Net Income | 3,977 | ||||||
Capital Contributions | 15,000 | ||||||
Capital Distributions | (17,046) | ||||||
Ending Balance at Dec. 31, 2016 | 185,390 | ||||||
Consolidation of Fund Entity | 387,006 | 387,006 | |||||
Net Income | 3,360,148 | $ 1,470,830 | 1,470,830 | 497,439 | 1,391,879 | ||
Currency Translation Adjustment | 80,366 | 28,869 | 28,869 | 51,497 | |||
Capital Contributions | 730,793 | 730,793 | |||||
Capital Distributions | (3,679,117) | (1,534,586) | (1,534,586) | (836,535) | (1,307,996) | ||
Transfer of Non-Controlling Interests in Consolidated Entities | (6,016) | (6,016) | |||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non- Controlling Interest Holders | 11,057 | 11,057 | 11,057 | ||||
Equity-Based Compensation | 335,023 | 183,484 | 183,484 | 151,539 | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units | (30,192) | $ (28,486) | (28,486) | (1,706) | |||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units, Units | 7,084,888 | ||||||
Change in The Blackstone Group L.P.'s Ownership Interest | 15,197 | $ (15,197) | (15,197) | 15,197 | |||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units | $ 59,334 | 59,334 | (59,334) | ||||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units, Units | 8,981,663 | ||||||
Ending Balance at Dec. 31, 2017 | 13,518,611 | $ 6,670,365 | $ (34,018) | $ 6,636,347 | $ 3,253,148 | $ 3,629,116 | |
Ending Balance, Units at Dec. 31, 2017 | 659,526,093 | ||||||
Net Income | 13,806 | ||||||
Capital Contributions | 58,920 | ||||||
Capital Distributions | (47,172) | ||||||
Ending Balance at Dec. 31, 2017 | $ 210,944 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net Income | $ 3,373,954 | $ 2,249,648 | $ 1,624,350 |
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities Blackstone Funds Related | |||
Net Realized Gains on Investments | (4,613,531) | (2,023,503) | (4,121,003) |
Changes in Unrealized (Gains) Losses on Investments | (21,589) | (241,617) | 722,064 |
Non-Cash Performance Fees | 109,169 | (305,559) | 1,391,946 |
Non-Cash Performance Fee Compensation | 1,488,330 | 868,022 | 564,560 |
Equity-Based Compensation Expense | 338,687 | 323,651 | 629,642 |
Excess Tax Benefits Related to Equity-Based Compensation | (70,318) | ||
Amortization of Intangibles | 46,776 | 82,943 | 101,437 |
Other Non-Cash Amounts Included in Net Income | 362,865 | 16,711 | 144,657 |
Cash Flows Due to Changes in Operating Assets and Liabilities | |||
Cash Held by Blackstone Funds and Other | (807,551) | (452,108) | 1,220,959 |
Cash Relinquished with Deconsolidation and Liquidation of Fund Equity | (33,566) | (442,370) | |
Accounts Receivable | 282,026 | 87,074 | (213,706) |
Reverse Repurchase Agreements | 118,495 | 86,398 | (204,893) |
Due from Affiliates | (298,501) | (57,907) | (97,487) |
Other Assets | 17,377 | 99,108 | (149,732) |
Accrued Compensation and Benefits | (1,177,852) | (572,814) | (917,428) |
Securities Sold, Not Yet Purchased | (62,730) | 42,761 | 96,780 |
Accounts Payable, Accrued Expenses and Other Liabilities | (755,165) | (214,651) | (474,652) |
Repurchase Agreements | 43,516 | 34,286 | 11,012 |
Due to Affiliates | (9,652) | 39,035 | (102,847) |
Investments Purchased | (19,573,153) | (8,798,358) | (7,937,114) |
Cash Proceeds from Sale of Investments | 18,723,355 | 8,195,594 | 10,621,186 |
Net Cash Provided by (Used in) Operating Activities | (2,448,740) | (541,286) | 2,397,043 |
Investing Activities | |||
Purchase of Furniture, Equipment and Leasehold Improvements | (24,347) | (21,826) | (59,247) |
Net Cash Paid for Acquisitions, Net of Cash Acquired | (168,913) | ||
Changes in Restricted Cash | 5,052 | (7,150) | 5,843 |
Net Cash Used in Investing Activities | (188,208) | (28,976) | (53,404) |
Financing Activities | |||
Distributions to Non-Controlling Interest Holders in Consolidated Entities | (813,987) | (533,925) | (677,110) |
Contributions from Non-Controlling Interest Holders in Consolidated Entities | 759,907 | 329,005 | 479,678 |
Cash Relinquished in Conjunction with the Spin-Off | (55,412) | ||
Payments Under Tax Receivable Agreement | (135,831) | (78,985) | (84,484) |
Net Delivery of Vested Common Units and Repurchase of Common and Holdings Units | (30,192) | (27,623) | (61,031) |
Excess Tax Benefits Related to Equity-Based Compensation | 70,318 | ||
Proceeds from Loans Payable | 7,600,153 | 3,321,081 | 2,423,614 |
Repayment and Repurchase of Loans Payable | (1,766,129) | (420,714) | (517,629) |
Distributions to Unitholders | (2,842,582) | (2,018,669) | (3,497,346) |
Net Cash Provided by (Used in) Financing Activities | 2,771,339 | 570,170 | (1,919,402) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 20,853 | 21 | 615 |
Net Increase (Decrease) in Cash and Cash Equivalents | 155,244 | (71) | 424,852 |
Cash and Cash Equivalents, Beginning of Period | 1,837,253 | 1,837,324 | 1,412,472 |
Cash and Cash Equivalents, End of Period | 1,992,497 | 1,837,253 | 1,837,324 |
Supplemental Disclosure of Cash Flows Information | |||
Payments for Interest | 160,178 | 151,948 | 126,167 |
Payments for Income Taxes | 106,032 | 65,790 | 115,814 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||
Non-Cash Contributions from Non-Controlling Interest Holders | 1,112 | 1,155 | 2,277 |
Non-Cash Distributions to Non-Controlling Interest Holders | (69,721) | (13,536) | (34) |
Non-Cash Consideration for Acquisition | (95,262) | ||
Net Assets Associated with the Spin-Off | (311,826) | ||
Net Activities Related to Capital Transactions of Consolidated Blackstone Funds | (295) | ||
Net Assets Related to the Consolidation of Certain Fund Entities | 387,006 | ||
Notes Issuance Costs | 5,582 | 5,491 | 5,269 |
Transfer of Interests to Non-Controlling Interest Holders | (6,016) | (8,278) | (12,272) |
Change in The Blackstone Group L.P.'s Ownership Interest | (15,197) | 7,881 | 92,785 |
Net Settlement of Vested Common Units | 127,392 | 101,898 | 139,941 |
Conversion of Blackstone Holdings Units to Common Units | 59,334 | 77,520 | 131,883 |
Acquisition of Ownership Interests from Non-Controlling Interest Holders Deferred Tax Asset | (74,487) | (59,304) | (195,291) |
Due to Affiliates | 63,430 | 53,935 | 130,264 |
Partners' Capital | $ 11,057 | $ 5,369 | $ 65,027 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION | 1. ORGANIZATION The Blackstone Group L.P., together with its subsidiaries (“Blackstone” or the “Partnership”), is a leading global manager of private capital. The alternative asset management business includes the management of private equity funds, real estate funds, real estate investment trusts (“REITs”), funds of hedge funds, hedge funds, credit-focused funds, collateralized loan obligation (“CLO”) vehicles, separately managed accounts and registered investment companies (collectively referred to as the “Blackstone Funds”). Blackstone’s business is organized into four segments: private equity, real estate, hedge fund solutions and credit. The Partnership was formed as a Delaware limited partnership on March 12, 2007. The Partnership is managed and operated by its general partner, Blackstone Group Management L.L.C., which is in turn wholly owned by Blackstone’s senior managing directors and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”). The activities of the Partnership are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings”, “Blackstone Holdings Partnerships” or the “Holding Partnerships”). The Partnership, through its wholly owned subsidiaries, is the sole general partner in each of these Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common units, on a one-to-one |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments and the accounting for Goodwill and equity-based compensation. Actual results could differ from those estimates and such differences could be material. Consolidation The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. The Partnership has a controlling interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the presumption of control by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. The Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion continually. In evaluating whether the Partnership is the primary beneficiary, Blackstone evaluates its economic interests in the entity held either directly or indirectly by the Partnership. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. Revenue Recognition Revenues primarily consist of management and advisory fees, performance fees, investment income, interest and dividend revenue and other. Management and Advisory Fees, Net The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital, or in some cases, a fixed fee. Base management fees are recognized based on contractual terms specified in the underlying investment advisory agreements. Transaction and other fees (including monitoring fees) are fees charged directly to managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees directly paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are granted based on the amount such limited partners reimburse the Blackstone Funds for placement fees. Advisory fees consist of transaction-based fee arrangements. Transaction-based fees are recognized when (a) there is evidence of an arrangement with a client, (b) agreed upon services have been provided, (c) fees are fixed or determinable, and (d) collection is reasonably assured. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Management fees paid by limited partners to the Blackstone Funds and passed on to Blackstone are not considered affiliate revenues. Performance Fees In certain fund structures, specifically in private equity, real estate and certain hedge fund solutions and credit-focused funds (“carry funds”), performance fees (“Carried Interest”) are allocated to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the Carried Interest that would be due to the Partnership for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Carried Interest to reflect either (a) positive performance resulting in an increase in the Carried Interest allocated to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to Carried Interest allocated to the general partner. In each scenario, it is necessary to calculate the Carried Interest on cumulative results compared to the Carried Interest recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Carried Interest allocations once previously recognized Carried Interest allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Carried Interest over the life of a fund. Accrued but unpaid Carried Interest as of the reporting date is reflected in Investments in the Consolidated Statements of Financial Condition. Carried Interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Carried Interest is subject to clawback to the extent that the Carried Interest received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Carried Interest, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling Investment Income (Loss) Interest and Dividend Revenue Other Revenue Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. • Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter • Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Transfers between levels of the fair value hierarchy are recognized at the beginning of the reporting period. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: • Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. • Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. • Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Private Equity Investments Real Estate Investments Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. Level III Valuation Process Investments classified within Level III of the fair value hierarchy are valued on a quarterly basis, taking into consideration factors including any changes in Blackstone’s weighted-average cost of capital assumptions, discounted cash flow projections and exit multiple assumptions, as well as any changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by an independent valuation party, at least annually for all investments, and quarterly for certain investments, to corroborate the values determined by management. The valuations of Blackstone’s investments are reviewed quarterly by a valuation committee chaired by Blackstone’s Vice Chairman and includes senior heads of each of Blackstone’s businesses, as well as representatives of legal and finance. Each quarter, the valuations of Blackstone’s investments are also reviewed by the Audit Committee in a meeting attended by the chairman of the valuation committee. The valuations are further tested by comparison to actual sales prices obtained on disposition of the investments. Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. Accounting for these financial instruments at fair value is consistent with how the Partnership accounts for its other principal investments. Loans extended to third parties are recorded within Accounts Receivable within the Consolidated Statements of Financial Condition. Debt securities for which the fair value option has been elected are recorded within Investments. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. In addition, the Partnership has elected the fair value option for the assets and liabilities of CLO vehicles that are consolidated as of January 1, 2010, as a result of the initial adoption of variable interest entity consolidation guidance. The Partnership has also elected the fair value option for CLO vehicles consolidated as a result of the acquisitions of CLO management contracts or the acquisition of the share capital of CLO managers. Historically, the adjustment resulting from the difference between the fair value of assets and liabilities for each of these events was presented as a transition and acquisition adjustment to Appropriated Partners’ Capital. Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and Liabilities within Loans Payable for the amounts due to unaffiliated third parties and Due to Affiliates for the amounts held by non-consolidated Non-Controlling Non-Controlling The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. Equity Method Investments Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. As the underlying investments of the Partnership’s equity method investments in Blackstone Funds are reported at fair value, the carrying value of the Partnership’s equity method investments approximates fair value. Cash and Cash Equivalents Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. Cash Held by Blackstone Funds and Other Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. Accounts Receivable Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. Intangibles and Goodwill Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Carried Interest. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from three to twenty years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO, the acquisition of GSO in 2008, the acquisition of Strategic Partners in 2013 and the acquisition of Harvest Fund Advisors LLC (“Harvest”) in 2017. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, a two-step Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Foreign Currency In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. Non-U.S. non-U.S. Non-Controlling Comprehensive Incom Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. Non-Controlling Non-Controlling non-controlling non-controlling Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits Performance Fee in-kind) Other Income Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other Income — Reduction of the Tax Receivable Agreement Liability” for additional information. Income Taxes The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. non-U.S. Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records uncertain tax positions on the basis of a two-step Net Income (Loss) Per Common Unit Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units and unvested participating common units outstanding for the period. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. Repurchase and Reverse Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. The Partnership manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. Additional disclosures relating to reverse repurchase and repurchase agreements are discussed in Note 10. “Reverse Repurchase and Repurchase Agreements”. Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. Securities Sold, Not Yet Purchased Securities Sold, Not Yet Purchased consist of equity and debt securities that the Partnership has borrowed and sold. The Partnership is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. The Partnership is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. Securities Sold, Not Yet Purchased are recorded at fair value in the Consolidated Statements of Financial Condition. Derivative Instruments The Partnership recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date the Partnership enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). For a fair value hedge, Blackstone records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in current period earnings in General, Administrative and Other in the Consolidated Statements of Operations. Changes in the fair value of derivatives designated as hedging instruments caused by factors other than changes in the risk being hedged, which are excluded from the assessment of hedge effectiveness, are recognized in current period earnings. Gains or losses on a derivative instrument that is designated as, and is effective as, an economic hedge of a net investment in a foreign operation are reported in the cumulative translation adjustment section of other comprehensive income to the extent it is effective as a hedge. The ineffective portion of a net investment hedge is recognized in current period earnings. The Partnership formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and the Partnership’s |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
GOODWILL AND INTANGIBLE ASSETS | 3. GOODWILL AND INTANGIBLE ASSETS On October 16, 2017, Blackstone completed its acquisition of Harvest, an independent investment management firm, which resulted in an increase of Goodwill of $59.7 million and an increase in Intangible Assets, primarily comprising contractual rights to earn future fee income, of $194.0 million. Goodwill arising from the acquisition has been allocated to the Credit segment. The carrying value of goodwill was $1.8 billion and $1.7 billion as of December 31, 2017 and 2016, respectively. At December 31, 2017 and 2016, the Partnership determined there was no evidence of Goodwill impairment. At December 31, 2017, goodwill has been allocated to each of the Partnership’s four segments as follows: Private Equity ($778.3 million), Real Estate ($421.7 million), Hedge Fund Solutions ($172.1 million), and Credit ($406.1 million). At December 31, 2016, goodwill has been allocated to each of the Partnership’s four segments as follows: Private Equity ($778.3 million), Real Estate ($421.7 million), Hedge Fund Solutions ($172.1 million), and Credit ($346.4 million). Intangible Assets, Net consists of the following: December 31, 2017 2016 Finite-Lived Intangible Assets / Contractual Rights $ 1,594,876 $ 1,400,876 Accumulated Amortization (1,185,048 ) (1,138,272 ) Intangible Assets, Net $ 409,828 $ 262,604 Changes in the Partnership’s Intangible Assets, Net consists of the following: Year Ended December 31, 2017 2016 2015 Balance, Beginning of Year $ 262,604 $ 345,547 $ 458,833 Amortization Expense (46,776 ) (82,943 ) (101,437 ) Acquisitions 194,000 — — Intangibles Transferred to PJT Partners Inc. at Spin-Off — — (11,849 ) Balance, End of Year $ 409,828 $ 262,604 $ 345,547 Amortization of Intangible Assets held at December 31, 2017 is expected to be $57.9 million, $57.9 million, $57.9 million, $57.9 million, and $50.2 million for each of the years ending December 31, 2018, 2019, 2020, 2021, and 2022, respectively. Blackstone’s intangible assets as of December 31, 2017 are expected to amortize over a weighted-average period of 9.2 years. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENTS | 4. INVESTMENTS Investments consist of the following: December 31, 2017 2016 Investments of Consolidated Blackstone Funds $ 12,954,121 $ 6,480,674 Equity Method Investments 3,263,131 3,092,378 Corporate Treasury Investments 2,566,043 2,518,438 Performance Fees 5,328,280 5,320,994 Other Investments 322,474 282,491 $ 24,434,049 $ 17,694,975 Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $488.4 million and $384.4 million at December 31, 2017 and December 31, 2016, respectively. Investments of Consolidated Blackstone Funds The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations: Year Ended December 31, 2017 2016 2015 Realized Gains $ 165,106 $ 123,524 $ 223,078 Net Change in Unrealized Losses (21,016 ) (61,045 ) (161,398 ) Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 144,090 62,479 61,680 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 177,507 122,271 114,684 Other Income — Net Gains from Fund Investment Activities $ 321,597 $ 184,750 $ 176,364 Equity Method Investments Blackstone’s equity method investments include its investments in private equity funds, real estate funds, funds of hedge funds and credit-focused funds and other proprietary investments, which are not consolidated but in which the Partnership exerts significant influence. Blackstone evaluates each of its equity method investments to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission (“SEC”). As of and for the years ended December 31, 2017, 2016 and 2015, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present separate financial statements for any of its equity method investments. Blackstone holds a 40% non-controlling The Partnership recognized net gains related to its equity method investments of $609.5 million, $214.4 million and $82.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. The summarized financial information of the Partnership’s equity method investments for December 31, 2017 are as follows: December 31, 2017 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 50,339,913 $ 67,780,737 $ 21,639,763 $ 22,593,717 $ 363 $ 162,354,493 Other Assets 2,283,602 3,077,573 1,969,832 1,573,279 154,131 9,058,417 Total Assets $ 52,623,515 $ 70,858,310 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Liabilities and Partners’ Capital Debt $ 6,779,634 $ 6,329,068 $ 53,787 $ 4,896,346 $ — $ 18,058,835 Other Liabilities 430,763 1,618,408 1,150,307 420,988 39,923 3,660,389 Total Liabilities 7,210,397 7,947,476 1,204,094 5,317,334 39,923 21,719,224 Partners’ Capital 45,413,118 62,910,834 22,405,501 18,849,662 114,571 149,693,686 Total Liabilities and Partners’ Capital $ 52,623,515 $ 70,858,310 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Statement of Operations Interest Income $ 362,788 $ 485,751 $ 2,942 $ 928,670 $ — $ 1,780,151 Other Income 45,770 1,334,544 91,006 178,281 107,204 1,756,805 Interest Expense (121,876 ) (180,258 ) (2,086 ) (127,153 ) — (431,373 ) Other Expenses (568,369 ) (703,165 ) (435,974 ) (258,157 ) (57,830 ) (2,023,495 ) Net Realized and Unrealized Gain from Investments 7,892,937 12,223,852 1,054,516 584,366 — 21,755,671 Net Income $ 7,611,250 $ 13,160,724 $ 710,404 $ 1,306,007 $ 49,374 $ 22,837,759 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2016 are as follows: December 31, 2016 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 49,751,021 $ 62,370,093 $ 21,007,134 $ 17,804,292 $ 7,354 $ 150,939,894 Other Assets 2,815,042 4,384,031 2,434,590 1,478,119 173,917 11,285,699 Total Assets $ 52,566,063 $ 66,754,124 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Liabilities and Partners’ Capital Debt $ 3,715,079 $ 4,034,184 $ 73,915 $ 2,495,778 $ — $ 10,318,956 Other Liabilities 1,254,211 1,591,727 1,837,583 701,986 51,266 5,436,773 Total Liabilities 4,969,290 5,625,911 1,911,498 3,197,764 51,266 15,755,729 Partners’ Capital 47,596,773 61,128,213 21,530,226 16,084,647 130,005 146,469,864 Total Liabilities and Partners’ Capital $ 52,566,063 $ 66,754,124 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Statement of Operations Interest Income $ 353,179 $ 445,166 $ 439 $ 849,508 $ — $ 1,648,292 Other Income 10,620 1,499,503 35,264 32,628 104,669 1,682,684 Interest Expense (82,370 ) (141,097 ) (1,410 ) (157,921 ) — (382,798 ) Other Expenses (473,790 ) (605,538 ) (150,964 ) (224,345 ) (56,407 ) (1,511,044 ) Net Realized and Unrealized Gain from Investments 4,870,332 5,368,361 226,368 1,186,038 515 11,651,614 Net Income $ 4,677,971 $ 6,566,395 $ 109,697 $ 1,685,908 $ 48,777 $ 13,088,748 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2015 are as follows: December 31, 2015 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 48,210,598 $ 61,971,919 $ 21,858,491 $ 16,136,543 $ 11,577 $ 148,189,128 Other Assets 1,041,591 6,210,557 1,927,535 1,174,601 53,825 10,408,109 Total Assets $ 49,252,189 $ 68,182,476 $ 23,786,026 $ 17,311,144 $ 65,402 $ 158,597,237 Liabilities and Partners’ Capital Debt $ 2,178,261 $ 5,562,806 $ 275,068 $ 2,086,670 $ — $ 10,102,805 Other Liabilities 1,315,572 1,573,370 1,462,072 956,305 52,269 5,359,588 Total Liabilities 3,493,833 7,136,176 1,737,140 3,042,975 52,269 15,462,393 Partners’ Capital 45,758,356 61,046,300 22,048,886 14,268,169 13,133 143,134,844 Total Liabilities and Partners’ Capital $ 49,252,189 $ 68,182,476 $ 23,786,026 $ 17,311,144 $ 65,402 $ 158,597,237 Statement of Operations Interest Income $ 384,174 $ 361,249 $ 170 $ 533,591 $ — $ 1,279,184 Other Income 8,506 1,313,956 35,112 49,042 84,975 1,491,591 Interest Expense (33,416 ) (91,985 ) (3,228 ) (61,971 ) — (190,600 ) Other Expenses (278,911 ) (355,617 ) (125,393 ) (167,385 ) (45,203 ) (972,509 ) Net Realized and Unrealized Gain from Investments 3,272,934 3,740,127 449,930 (954,692 ) 17,778 6,526,077 Net Income $ 3,353,287 $ 4,967,730 $ 356,591 $ (601,415 ) $ 57,550 $ 8,133,743 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. Corporate Treasury Investments The portion of corporate treasury investments included in Investments represents the Partnership’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Year Ended December 31, 2017 2016 2015 Realized Gains (Losses) $ 4,378 $ (20,263 ) $ (15,525 ) Net Change in Unrealized Gains (Losses) 50,222 19,671 (35,709 ) $ 54,600 $ (592 ) $ (51,234 ) Performance Fees Performance Fees allocated to the general partner in respect of performance of certain carry funds, funds of hedge funds and credit-focused funds were as follows: Private Equity Real Estate Hedge Fund Solutions Credit Total Performance Fees, December 31, 2016 $ 1,984,450 $ 2,970,448 $ 6,132 $ 359,964 $ 5,320,994 Performance Fees Allocated as a Result of Changes in Fund Fair Values 1,143,974 1,980,830 54,986 225,774 3,405,564 Foreign Exchange Gain — 65,029 — — 65,029 Fund Distributions (1,211,453 ) (2,157,000 ) (47,316 ) (47,538 ) (3,463,307 ) Performance Fees, December 31, 2017 $ 1,916,971 $ 2,859,307 $ 13,802 $ 538,200 $ 5,328,280 Other Investments Other Investments consist primarily of proprietary investment securities held by Blackstone. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in other investments: Year Ended December 31, 2017 2016 2015 Realized Gains $ 4,886 $ 2,495 $ 80 Net Change in Unrealized Gains (Losses) 14,324 11,128 (4,079 ) $ 19,210 $ 13,623 $ (3,999 ) |
NET ASSET VALUE AS FAIR VALUE
NET ASSET VALUE AS FAIR VALUE | 12 Months Ended |
Dec. 31, 2017 | |
NET ASSET VALUE AS FAIR VALUE | 5. NET ASSET VALUE AS FAIR VALUE A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2017 is presented below: Strategy Fair Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Diversified Instruments $ 268,470 $ 135 (a ) (a ) Credit Driven 135,450 268 (b ) (b ) Equity 59,565 — (c ) (c ) Commodities 1,975 — (d ) (d ) $ 465,460 $ 403 (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 52% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 48% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVE FINANCIAL INSTRUMENTS | 6. DERIVATIVE FINANCIAL INSTRUMENTS Blackstone and the Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its non-U.S. Net Investment Hedges To manage the potential exposure from adverse changes in currency exchange rates arising from Blackstone’s net investment in foreign operations, during December 2014, Blackstone entered into several foreign currency forward contracts to hedge a portion of the net investment in Blackstone’s non-U.S. Blackstone uses foreign currency forward contracts to hedge portions of Blackstone’s net investments in foreign operations. The gains and losses due to change in fair value attributable to changes in spot exchange rates on foreign currency derivatives designated as net investment hedges were recognized in Other Comprehensive Income (Loss), Net of Tax — Currency Translation Adjustment. For the year ended December 31, 2017 the resulting loss was $7.1 million. Freestanding Derivatives Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts. The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. December 31, 2017 December 31, 2016 Assets Liabilities Assets Liabilities Notional Fair Value Notional Fair Value Notional Fair Value Notional Fair Value Net Investment Hedges Foreign Currency Contracts $ — $ — $ 50,857 $ 453 $ — $ — $ 51,267 $ 587 Freestanding Derivatives Blackstone Interest Rate Contracts 225,550 2,042 1,530,751 27,275 2,651,583 2,356 546,211 2,355 Foreign Currency Contracts 279,050 2,097 296,252 2,975 164,247 1,037 127,444 966 Credit Default Swaps 2,073 304 2,073 304 — — 3,819 215 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 493,181 24,087 264,693 5,628 254,162 25,050 136,025 3,903 Credit Default Swaps 45,670 3,731 45,582 5,163 — — 113,057 3,350 Total Return Swaps 25,645 526 — — — — — — 1,071,169 32,787 2,139,351 41,345 3,069,992 28,443 926,556 10,789 $ 1,071,169 $ 32,787 $ 2,190,208 $ 41,798 $ 3,069,992 $ 28,443 $ 977,823 $ 11,376 The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: Year Ended December 31, 2017 2016 2015 Net Investment Hedges — Foreign Currency Contracts Hedge Ineffectiveness $ (75 ) $ (108 ) $ 283 Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ (2,400 ) $ (1,600 ) $ (8,716 ) Foreign Currency Contracts (6,333 ) (5,079 ) 12,828 Credit Default Swaps (3,764 ) (5,141 ) 2,336 Total Return Swaps 295 — — Equity Options (417 ) — — $ (12,619 ) $ (11,820 ) $ 6,448 Net Change in Unrealized Gains (Losses) Interest Rate Contracts $ (24,629 ) $ 1,253 $ 3,933 Foreign Currency Contracts (3,556 ) 25,839 (7,930 ) Credit Default Swaps 4,881 (3,027 ) (7,518 ) Total Return Swaps (447 ) — — Equity Options 129 — — $ (23,622 ) $ 24,065 $ (11,515 ) As of December 31, 2017, 2016 and 2015, the Partnership had not designated any derivatives as cash flow hedges. |
FAIR VALUE OPTION
FAIR VALUE OPTION | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE OPTION | 7. FAIR VALUE OPTION The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2017 2016 Assets Loans and Receivables $ 239,659 $ 211,359 Equity and Preferred Securities 475,485 444,713 Debt Securities 418,061 — Assets of Consolidated CLO Vehicles Corporate Loans 10,825,759 4,762,071 Corporate Bonds 690,125 710,947 Other 458 — $ 12,649,547 $ 6,129,090 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 10,594,656 $ 5,125,804 Due to Affiliates 996 — Subordinated Notes Loans Payable 703,164 337,846 Due to Affiliates 40,390 7,748 $ 11,339,206 $ 5,471,398 The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Year Ended December 31, 2017 2016 2015 Realized Net Change Realized Net Change Realized Net Change Assets Loans and Receivables $ (1,214 ) $ 6,590 $ (42 ) $ 3,375 $ — $ (4,793 ) Equity and Preferred Securities 4,611 22,326 (476 ) 16,033 (300 ) (17,269 ) Debt Securities 4,866 (3,390 ) (2,404 ) 426 — (426 ) Assets of Consolidated CLO Vehicles Corporate Loans (3,827 ) (6,603 ) (6,128 ) 66,601 (1,895 ) (36,502 ) Corporate Bonds 12,442 (36,219 ) 4,793 18,859 (551 ) 1,188 Other — 454 264 — 4,431 (3,589 ) $ 16,878 $ (16,842 ) $ (3,993 ) $ 105,294 $ 1,685 $ (61,391 ) Liabilities Liabilities of Consolidated CLO Vehicles Subordinated Notes $ — $ 81,460 $ (2,400 ) $ (69,103 ) $ — $ 57,119 The following table presents information for those financial instruments for which the fair value option was elected: December 31, 2017 December 31, 2016 For Financial Assets For Financial Assets Excess Fair Excess Excess Fair Excess Loans and Receivables $ 1,207 $ — $ — $ (6,476 ) $ — $ — Debt Securities (372 ) — — — — — Assets of Consolidated CLO Vehicles Corporate Loans (13,495 ) 57,778 (19,633 ) 2,616 — — Corporate Bonds (21,455 ) — — 7,259 — — $ (34,115 ) $ 57,778 $ (19,633 ) $ 3,399 $ — $ — (a) Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. As of December 31, 2017 and 2016, no Loans and Receivables for which the fair value option was elected were past due or in non-accrual non-accrual |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 8. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: December 31, 2017 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 853,680 $ — $ — $ — $ 853,680 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 130,339 130,339 Equity Securities 67,443 44,026 131,867 — 243,336 Partnership and LLC Interests — 2,549 331,448 — 333,997 Debt Instruments — 643,608 58,155 — 701,763 Freestanding Derivatives Foreign Currency Contracts — 101 — — 101 Credit Default Swaps — 3,731 — — 3,731 Total Return Swaps — 526 — — 526 Assets of Consolidated CLO Vehicles Corporate Loans — 10,318,316 507,443 — 10,825,759 Corporate Bonds — 690,125 — — 690,125 Freestanding Derivatives — Foreign Currency Contracts — 23,986 — — 23,986 Other — — 458 — 458 Total Investments of Consolidated Blackstone Funds 67,443 11,726,968 1,029,371 130,339 12,954,121 Corporate Treasury Investments Equity Securities 282,866 — — — 282,866 Debt Instruments — 1,943,654 24,249 — 1,967,903 Other — — — 315,274 315,274 Total Corporate Treasury Investments 282,866 1,943,654 24,249 315,274 2,566,043 Other Investments 193,072 14,162 95,393 19,847 322,474 Total Investments 543,381 13,684,784 1,149,013 465,460 15,842,638 Accounts Receivable — Loans and Receivables — — 239,659 — 239,659 Other Assets Freestanding Derivatives Interest Rate Contracts 575 1,467 — — 2,042 Foreign Currency Contracts — 2,097 — — 2,097 Credit Default Swaps — 304 — — 304 Total Other Assets 575 3,868 — — 4,443 $ 1,397,636 $ 13,688,652 $ 1,388,672 $ 465,460 $ 16,940,420 December 31, 2017 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 10,594,656 $ — $ 10,594,656 Subordinated Notes (b) — 703,164 — 703,164 Total Loans Payable — 11,297,820 — 11,297,820 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 996 — 996 Subordinated Notes (b) — 40,390 — 40,390 Total Due to Affiliates — 41,386 — 41,386 Securities Sold, Not Yet Purchased — 154,380 — 154,380 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 5,628 — 5,628 Credit Default Swaps — 5,163 — 5,163 Total Liabilities of Consolidated Blackstone Funds — 10,791 — 10,791 Freestanding Derivatives Interest Rate Contracts 415 26,860 — 27,275 Foreign Currency Contracts — 2,975 — 2,975 Credit Default Swaps — 304 — 304 Total Freestanding Derivatives 415 30,139 — 30,554 Net Investment Hedges — Foreign Currency Contracts — 453 — 453 Total Accounts Payable, Accrued Expenses and Other Liabilities 415 41,383 — 41,798 $ 415 $ 11,534,969 $ — $ 11,535,384 December 31, 2016 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 443,442 $ — $ — $ — $ 443,442 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 148,993 148,993 Equity Securities 76,381 70,544 93,657 — 240,582 Partnership and LLC Interests — 29,430 337,230 — 366,660 Debt Instruments — 219,049 7,322 — 226,371 Freestanding Derivatives — Foreign Currency Contracts — 2,327 — — 2,327 Assets of Consolidated CLO Vehicles Corporate Loans — 4,514,407 247,664 — 4,762,071 Corporate Bonds — 710,947 — — 710,947 Freestanding Derivatives — Foreign Currency Contracts — 22,723 — — 22,723 Total Investments of Consolidated Blackstone Funds 76,381 5,569,427 685,873 148,993 6,480,674 Corporate Treasury Investments Equity Securities 281,505 — — — 281,505 Debt Instruments — 1,944,171 30,424 54,907 2,029,502 Other — — — 207,431 207,431 Total Corporate Treasury Investments 281,505 1,944,171 30,424 262,338 2,518,438 Other Investments 163,548 — 100,164 18,779 282,491 Total Investments 521,434 7,513,598 816,461 430,110 9,281,603 Accounts Receivable — Loans and Receivables — — 211,359 — 211,359 Other Assets Freestanding Derivatives Interest Rate Contracts 1,883 473 — — 2,356 Foreign Currency Contracts — 1,037 — — 1,037 Total Freestanding Derivatives 1,883 1,510 — — 3,393 Total Other Assets 1,883 1,510 — — 3,393 $ 966,759 $ 7,515,108 $ 1,027,820 $ 430,110 $ 9,939,797 December 31, 2016 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 5,125,804 $ — $ 5,125,804 Subordinated Notes (b) — 337,846 — 337,846 Total Loans Payable — 5,463,650 — 5,463,650 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Subordinated Notes (b) — 7,748 — 7,748 Total Due to Affiliates — 7,748 — 7,748 Securities Sold, Not Yet Purchased — 215,398 — 215,398 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 3,903 — 3,903 Credit Default Swaps — 3,350 — 3,350 Total Liabilities of Consolidated Blackstone Funds — 7,253 — 7,253 Freestanding Derivatives Interest Rate Contracts 750 1,605 — 2,355 Foreign Currency Contracts — 966 — 966 Credit Default Swaps — 215 — 215 Total Freestanding Derivatives 750 2,786 — 3,536 Net Investment Hedges — Foreign Currency Contracts — 587 — 587 Total Accounts Payable, Accrued Expenses and Other Liabilities 750 10,626 — 11,376 $ 750 $ 5,697,422 $ — $ 5,698,172 (a) Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. (b) Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. The following table summarizes the fair value transfers between Level I and Level II for positions that existed as of December 31, 2017 and 2016, respectively: Year Ended December 31, 2017 2016 Transfers from Level I into Level II (a) $ 938 $ 2,114 Transfers from Level II into Level I (b) $ — $ 39,974 (a) Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. (b) Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2017: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 91,753 Discounted Cash Flows Discount Rate 7.1% - 31.4% 12.6% Revenue CAGR 1.0% - 49.4% 7.1% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 16.0x 9.9x Exit Multiple - NOI 8.8x - 12.5x 10.5x Exit Multiple - P/E 9.5x - 17.0x 11.0x 862 Market Comparable Companies Book Value Multiple 0.8x - 0.9x 0.9x Exit Multiple - EBITDA 8.0x N/A 17,536 Other N/A N/A N/A 21,716 Transaction Price N/A N/A N/A Partnership and LLC Interests 293,744 Discounted Cash Flows Discount Rate 4.6% - 26.5% 9.8% Revenue CAGR -22.2% - 71.5% 8.4% Exit Capitalization Rate 3.1% - 10.0% 5.7% Exit Multiple - EBITDA 0.1x - 15.0x 8.6x Exit Multiple - NOI 12.5x N/A 530 Market Comparable Companies Book Value Multiple 1.0x N/A 22,346 Other N/A N/A N/A 758 Third Party Pricing N/A N/A N/A 14,070 Transaction Price N/A N/A N/A Debt Instruments 6,122 Discounted Cash Flows Discount Rate 6.6% - 18.4% 9.6% Revenue CAGR 7.7% N/A Exit Capitalization Rate 8.3% N/A Exit Multiple - NOI 12.0x N/A 50,136 Third Party Pricing N/A N/A N/A 1,897 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 8,277 Market Comparable Companies EBITDA Multiple 7.0x N/A 499,624 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,029,371 Corporate Treasury Investments $ 8,886 Discounted Cash Flows Discount Rate 5.1% - 6.3% 5.4% Default Rate 2.0% N/A Pre-payment 20% N/A Recovery Lag 12 Months N/A Recovery Rate 30.0% - 70.0% 68.1% Reinvestment Rate LIBOR + 400 bps N/A 15,363 Third Party Pricing N/A N/A N/A Loans and Receivables 239,659 Discounted Cash Flows Discount Rate 7.1% - 10.3% 8.8% Other Investments 65,821 Discounted Cash Flows Discount Rate 0.7% - 13.0% 2.2% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps - LIBOR + 401 LIBOR + 413 bps bps 29,572 Transaction Price N/A N/A N/A $ 1,388,672 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2016: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 58,826 Discounted Cash Flows Discount Rate 7.3% - 28.7% 12.7% Revenue CAGR -0.2% - 20.1% 6.3% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 20.0x 10.0x Exit Multiple - P/E 10.5x - 17.0x 11.0x 2,032 Market Comparable Companies Book Value Multiple 0.9x N/A 22,843 Other N/A N/A N/A 9,956 Transaction Price N/A N/A N/A Partnership and LLC Interests 303,281 Discounted Cash Flows Discount Rate 3.4% - 27.6% 9.4% Revenue CAGR -27.1% - 47.3% 7.2% Exit Capitalization Rate 3.0% - 11.0% 6.0% Exit Multiple - EBITDA 3.9x - 18.3x 10.5x Exit Multiple - P/E 9.3x N/A 13,945 Market Comparable Companies Capitalization Rate 5.0% - 5.6% 5.2% 12,916 Other N/A N/A N/A 1,238 Third Party Pricing N/A N/A N/A 5,850 Transaction Price N/A N/A N/A Debt Instruments 5,002 Discounted Cash Flows Discount Rate 8.3% - 20.0% 12.9% Revenue CAGR 4.8% - 70.8% 33.8% Exit Capitalization Rate 4.7% - 8.3% 7.5% Exit Multiple - EBITDA 9.6x - 12.0x 11.0x 2,227 Third Party Pricing N/A N/A N/A 93 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 13,723 Market Comparable Companies EBITDA Multiple 9.6x N/A 233,941 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 685,873 Corporate Treasury Investments 9,783 Discounted Cash Flows Discount Rate 6.1% - 10.0% 7.1% Default Rate 1.0% - 2.0% 1.8% Pre-payment Rate 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 18.5% - 76.5% 66.4% Reinvestment Rate LIBOR + 350 bps - LIBOR + 400 bps LIBOR 20,641 Third Party Pricing N/A N/A N/A Loans and Receivables 211,359 Discounted Cash Flows Discount Rate 12.0% - 16.4% 13.3% Other Investments 78,619 Discounted Cash Flows Discount Rate 1.2% - 15.0% 3.1% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps N/A 21,545 Transaction Price N/A N/A N/A $ 1,027,820 N/A Not applicable. CAGR Compound annual growth rate. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. NOI Net operating income. P/E Price-earnings ratio. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. The significant unobservable inputs used in the fair value measurement of corporate treasury investments, debt instruments and other investments are discount rates, default rates, recovery rates, recovery lag, pre-payment pre-payment pre-payment The significant unobservable inputs used in the fair value measurement of equity securities, partnership and limited liability company (“LLC”) interests, debt instruments, assets of consolidated CLO vehicles and loans and receivables are discount rates, exit capitalization rates, exit multiples, EBITDA multiples and revenue compound annual growth rates. Increases (decreases) in any of discount rates and exit capitalization rates in isolation can result in a lower (higher) fair value measurement. Increases (decreases) in any of exit multiples and revenue compound annual growth rates in isolation can result in a higher (lower) fair value measurement. Since December 31, 2015, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments. The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Partnership has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. Level III Financial Assets at Fair Value Year Ended December 31, 2017 2016 Investments Loans and Receivables Other Total Investments Loans and Receivables Other Total Balance, Beginning of Period $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 $ 774,392 $ 261,994 $ 155,841 $ 1,192,227 Transfer In Due to Consolidation and Acquisition 34,651 — — 34,651 — — — — Transfer Out Due to Deconsolidation (38,629 ) — — (38,629 ) — — — — Transfer In to Level III (b) 59,473 — 27,127 86,600 84,472 — 19,691 104,163 Transfer Out of Level III (b) (168,986 ) — (22,111 ) (191,097 ) (97,841 ) — (33,162 ) (131,003 ) Purchases 869,817 856,042 25,335 1,751,194 373,522 546,060 24,158 943,740 Sales (473,178 ) (835,426 ) (54,039 ) (1,362,643 ) (485,254 ) (598,232 ) (31,251 ) (1,114,737 ) Settlements — (12,584 ) (1,573 ) (14,157 ) — (8,599 ) (512 ) (9,111 ) Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) 60,350 20,268 14,315 94,933 36,582 10,136 (4,177 ) 42,541 Balance, End of Period $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date $ 14,083 $ 21,482 $ (91 ) $ 35,474 $ (36,074 ) $ 10,178 $ 3,443 $ (22,453 ) (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. There were no Level III financial liabilities as of and for the year ended December 31, 2017 and 2016. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2017 | |
VARIABLE INTEREST ENTITIES | 9. VARIABLE INTEREST ENTITIES Pursuant to GAAP consolidation guidance, the Partnership consolidates certain VIEs in which it is determined that the Partnership is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds have similar characteristics, including loss of invested capital and loss of management fees and performance based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. The Partnership does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments. The assets of consolidated variable interest entities may only be used to settle obligations of these consolidated Blackstone Funds. In addition, there is no recourse to the Partnership for the consolidated VIEs’ liabilities including the liabilities of the consolidated CLO vehicles. The Partnership holds variable interests in certain VIEs which are not consolidated as it is determined that the Partnership is not the primary beneficiary. The Partnership’s involvement with such entities is in the form of direct equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to non-consolidated non-consolidated non-consolidated non-consolidated December 31, 2017 2016 Investments $ 805,501 $ 644,546 Accounts Receivable 15,760 12,308 Due from Affiliates 81,465 35,099 Total VIE Assets 902,726 691,953 Due to Affiliates 179 577 Accounts Payable, Accrued Expenses and Other Liabilities — 38 Potential Clawback Obligation 98,331 81,936 Maximum Exposure to Loss $ 1,001,236 $ 774,504 |
REVERSE REPURCHASE AND REPURCHA
REVERSE REPURCHASE AND REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
REVERSE REPURCHASE AND REPURCHASE AGREEMENTS | 10. REVERSE REPURCHASE AND REPURCHASE AGREEMENTS At December 31, 2017, the Partnership pledged securities with a carrying value of $169.7 million and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. At December 31, 2016, the Partnership received securities, primarily U.S. and non-U.S. The following tables provide information regarding the Partnership’s Repurchase Agreements obligation by type of collateral pledged: December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 22,756 $ 96,084 $ — $ 118,840 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 118,840 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements U.S. Treasury and Agency Securities $ 7,034 $ — $ — $ — $ 7,034 Asset-Backed Securities — 12,805 30,796 24,689 68,290 $ 7,034 $ 12,805 $ 30,796 $ 24,689 $ 75,324 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 75,324 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — |
OTHER ASSETS AND ACCOUNTS PAYAB
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES | 11. OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES Other Assets consists of the following: December 31, 2017 2016 Furniture, Equipment and Leasehold Improvements $ 345,875 $ 338,292 Less: Accumulated Depreciation (219,309 ) (211,508 ) Furniture, Equipment and Leasehold Improvements, Net 126,566 126,784 Prepaid Expenses 78,723 96,888 Other Assets 32,965 37,723 Freestanding Derivatives 4,443 3,393 $ 242,697 $ 264,788 Depreciation expense of $25.2 million, $32.0 million and $26.0 million related to furniture, equipment and leasehold improvements for the years ended December 31, 2017, 2016 and 2015, respectively, is included in General, Administrative and Other in the Consolidated Statements of Operations. Accounts Payable, Accrued Expenses and Other Liabilities includes $27.2 million and $10.1 million as of December 31, 2017 and 2016, respectively, relating to redemptions that were legally payable to investors of the consolidated Blackstone Funds and $1.5 billion and $615.0 million, respectively, of payables relating to unsettled purchases. |
OFFSETTING OF ASSETS AND LIABIL
OFFSETTING OF ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OFFSETTING OF ASSETS AND LIABILITIES | 12. OFFSETTING OF ASSETS AND LIABILITIES The following tables present the offsetting of assets and liabilities as of December 31, 2017: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 8,801 $ 3,279 $ — $ 5,522 Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 453 $ — $ — $ 453 Freestanding Derivatives 36,234 3,279 32,405 550 Repurchase Agreements 118,840 118,840 — — $ 155,527 $ 122,119 $ 32,405 $ 1,003 The following tables present the offsetting of assets and liabilities as of December 31, 2016: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 5,720 $ 1,064 $ 2,892 $ 1,764 Reverse Repurchase Agreements 118,495 117,775 — 720 $ 124,215 $ 118,839 $ 2,892 $ 2,484 Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 587 $ — $ — $ 587 Freestanding Derivatives 6,886 1,064 5,638 184 Repurchase Agreements 75,324 72,195 3,129 — $ 82,797 $ 73,259 $ 8,767 $ 771 Reverse Repurchase Agreements and Repurchase Agreements are presented separately on the Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Statements of Financial Condition. See Note 11. “Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities” for the components of Other Assets. Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition and are not a significant component thereof. Notional Pooling Arrangement Blackstone has a notional cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of December 31, 2017, the aggregate cash balance on deposit relating to the cash pooling arrangement was $1.0 billion, which was offset with an accompanying overdraft of $1.0 billion. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
BORROWINGS | 13. BORROWINGS On October 2, 2017, Blackstone, through its indirect subsidiary Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), issued $300 million aggregate principal amount of senior notes maturing October 2, 2027 (the “2027 Notes”) and $300 million aggregate principal amount of senior notes maturing October 2, 2047 (the “2047 Notes”). The 2027 Notes have an interest rate of 3.150% per annum, accruing from October 2, 2017. The 2047 Notes have an interest rate of 4.000% per annum, accruing from October 2, 2017. Interest on the 2027 Notes and 2047 Notes is payable semi-annually in arrears on October 2 and April 2 of each year, commencing on April 2, 2018. The 2027 Notes and 2047 Notes are unsecured and unsubordinated obligations of the Issuer. The 2027 Notes and 2047 Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership and its indirect subsidiaries, Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the 2027 Notes and 2047 Notes have been capitalized and are being amortized over the life of the 2027 Notes and 2047 Notes. Blackstone used the proceeds from these notes to repurchase all of its 6.625% senior notes maturing on August 15, 2019 (the “2019 Notes”). Blackstone recognized a loss of $32.9 million in conjunction with the extinguishment of the 2019 Notes and is included in Interest Expense in the Consolidated Statement of Operations. The Partnership borrows and enters into credit agreements for its general operating and investment purposes and certain Blackstone Funds borrow to meet financing needs of their operating and investing activities. Borrowing facilities have been established for the benefit of selected Blackstone Funds. When a Blackstone Fund borrows from the facility in which it participates, the proceeds from the borrowing are strictly limited for its intended use by the borrowing fund and not available for other Partnership purposes. The Partnership’s credit facilities consist of the following: December 31, 2017 2016 Credit Borrowing Weighted Credit Borrowing Weighted Revolving Credit Facility (a) $ 1,500,000 $ 683 0.88 % $ 1,500,000 $ 683 0.88 % Blackstone Issued Senior Notes (b) 6.625%, Due 8/15/2019 (c) — — — 585,000 585,000 6.63 % 5.875%, Due 3/15/2021 400,000 400,000 5.88 % 400,000 400,000 5.88 % 4.750%, Due 2/15/2023 400,000 400,000 4.75 % 400,000 400,000 4.75 % 6.250%, Due 8/15/2042 250,000 250,000 6.25 % 250,000 250,000 6.25 % 5.000%, Due 6/15/2044 500,000 500,000 5.00 % 500,000 500,000 5.00 % 4.450%, Due 7/15/2045 350,000 350,000 4.45 % 350,000 350,000 4.45 % 2.000%, Due 5/19/2025 360,150 360,150 2.00 % 315,510 315,510 2.00 % 1.000%, Due 10/5/2026 720,300 720,300 1.00 % 631,020 631,020 1.00 % 3.150%, Due 10/2/2027 300,000 300,000 3.15 % — — — 4.000%, Due 10/2/2047 300,000 300,000 4.00 % — — — 5,080,450 3,581,133 3.76 % 4,931,530 3,432,213 4.37 % Blackstone Fund Facilities (d) 2,803 2,803 2.79 % 2,793 2,793 2.32 % CLO Vehicles (e) 11,583,607 11,583,607 2.32 % 5,506,976 5,506,976 2.02 % $ 16,666,860 $ 15,167,543 2.54 % $ 10,441,299 $ 8,941,982 2.92 % (a) Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of the Partnership, has a revolving credit facility (the “Credit Facility”) with Citibank, N.A., as Administrative Agent in the amount of $1.5 billion with a maturity date of August 31, 2021. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, in each case subject to certain sub-limits. fee-earning (b) The Issuer, has issued long term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the “Guarantors”), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. (c) The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. The entire amount of these bonds were retired in 2017. (d) Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. (e) Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. The following table presents the general characteristics of each of our Notes, as well as their carrying value and fair value. The Notes are included in Loans Payable within the Consolidated Statements of Financial Condition. All of the Notes were issued at a discount. All of the Notes accrue interest from the Issue Date and all pay interest in arrears on a semi-annual December 31, 2017 2016 Senior Notes Carrying Value Fair Value (a) Carrying Fair Value (a) 6.625%, Due 8/15/2019 (c) $ — $ — $ 607,121 $ 648,765 5.875%, Due 3/15/2021 398,514 438,320 398,105 447,600 4.750%, Due 2/15/2023 394,137 434,200 393,158 426,520 6.250%, Due 8/15/2042 238,019 328,200 237,830 285,450 5.000%, Due 6/15/2044 488,536 574,100 488,337 497,200 4.450%, Due 7/15/2045 343,925 372,575 343,816 322,525 2.000%, Due 5/19/2025 355,425 385,433 310,805 331,096 1.000%, Due 10/5/2026 709,871 711,440 620,750 598,270 3.150%, Due 10/2/2027 296,399 295,320 — — 4.000%, Due 10/2/2047 289,989 296,940 — — Total $ 3,514,815 $ 3,836,528 $ 3,399,922 $ 3,557,426 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. (b) The carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct deduction from the related liability for all periods presented in accordance with amended guidance on simplifying the presentation of such costs. (c) The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. Included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition are amounts due to holders of debt securities issued by Blackstone’s consolidated CLO vehicles. Borrowings through the consolidated CLO vehicles consisted of the following: December 31, 2017 2016 Borrowing Weighted Weighted Borrowing Weighted Weighted Senior Secured Notes $ 10,689,240 2.35 % 4.1 $ 5,124,241 2.17 % 5.4 Subordinated Notes 894,367 (a ) N/A 382,735 (a ) N/A $ 11,583,607 $ 5,506,976 (a) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. Senior Secured Notes and Subordinated Notes comprise the following amounts: December 31, 2017 2016 Amounts Due to Non- Amounts Due to Non- Fair Value Borrowing Fair Fair Value Borrowing Fair Value Senior Secured Notes $ 10,595,652 $ 1,000 $ 996 $ 5,125,804 $ — $ — Subordinated Notes 743,554 53,400 40,390 345,594 10,000 7,748 $ 11,339,206 $ 54,400 $ 41,386 $ 5,471,398 $ 10,000 $ 7,748 The Loans Payable of the consolidated CLO vehicles are collateralized by assets held by each respective CLO vehicle and assets of one vehicle may not be used to satisfy the liabilities of another. As of December 31, 2017 and 2016, the fair value of the consolidated CLO assets was $13.4 billion and $6.4 billion, respectively. This collateral consisted of Cash, Corporate Loans, Corporate Bonds and other securities. As part of Blackstone’s borrowing arrangements, the Partnership is subject to certain financial and operating covenants. The Partnership was in compliance with all of its loan covenants as of December 31, 2017. Scheduled principal payments for borrowings at December 31, 2017 are as follows: Operating Blackstone Fund Total Borrowings 2018 $ — $ 290,437 $ 290,437 2019 — — — 2020 — 540,225 540,225 2021 400,000 — 400,000 2022 — — — Thereafter 3,180,450 10,755,747 13,936,197 Total $ 3,580,450 $ 11,586,409 $ 15,166,859 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | 14. INCOME TAXES The Income Before Provision for Taxes consists of the following: Year Ended December 31, 2017 2016 2015 Income Before Provision for Taxes U.S. Domestic Income $ 3,955,351 $ 2,215,380 $ 1,754,969 Foreign Income 161,750 166,630 59,779 $ 4,117,101 $ 2,382,010 $ 1,814,748 The Provision for Taxes consists of the following: Year Ended December 31, 2017 2016 2015 Current Federal Income Tax $ 31,457 $ 32,383 $ 45,506 Foreign Income Tax 36,083 17,322 16,769 State and Local Income Tax 40,507 32,572 28,137 108,047 82,277 90,412 Deferred Federal Income Tax 613,518 42,042 80,307 Foreign Income Tax (34 ) 363 (398 ) State and Local Income Tax 21,616 7,680 20,077 635,100 50,085 99,986 Provision for Taxes $ 743,147 $ 132,362 $ 190,398 The following table summarizes Blackstone’s tax position: Year Ended December 31, 2017 2016 2015 Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 Provision for Taxes $ 743,147 $ 132,362 $ 190,398 Effective Income Tax Rate 18.1 % 5.6 % 10.5 % The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate: Year Ended December 31, 2017 2016 2015 Statutory U.S. Federal Income Tax Rate 35.0 % 35.0 % 35.0 % Income Passed Through to Common Unitholders and Non-Controlling -25.8 % -28.6 % -26.3 % State and Local Income Taxes 1.5 % 1.3 % 1.8 % Equity-Based Compensation -0.1 % -0.2 % 1.8 % Impact of the Tax Reform Bill 8.3 % — — Other -0.8 % -1.9 % -1.8 % Effective Income Tax Rate 18.1 % 5.6 % 10.5 % (a) Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling U.S. federal income tax reform legislation, known as the Tax Cuts and Jobs Act, was signed into law on December 22, 2017 (the “Tax Reform Bill”). In December 2017 the SEC staff issued guidance on accounting for the tax effects of the Tax Reform Bill. The guidance provides that the income tax effects of those aspects of the Tax Reform Bill for which the Partnership’s accounting for income taxes is complete must be reflected in the current period and allows for reporting provisional amounts during a measurement period until the evaluation is complete. The Partnership believes that the tax effects of the material provisions have been properly included in the consolidated financial statements at December 31, 2017. The Tax Reform Bill reduces the corporate federal income tax rate from 35% to 21% effective January 1, 2018. Consequently, the Partnership has recorded a decrease related to the net deferred tax assets of $500.6 million with a corresponding net adjustment to deferred income tax expense of $500.6 million for the year ended December 31, 2017. The remeasurement was partially offset by $160.3 million tax benefit resulting from the $403.9 million reduction to the liability under the Tax Receivable Agreement resulting from the reduction of the federal income tax rate. The net impact to the effective tax rate was an 8.3% increase. Further, the Tax Reform Bill includes a one-time The Partnership continues to evaluate the provisions of the Tax Reform Bill that become effective January 1, 2018 and will impact future financial statement periods. Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows: December 31, 2017 2016 Deferred Tax Assets Fund Management Fees $ 9,938 $ 10,235 Equity-Based Compensation 54,699 68,642 Amortization and Depreciation 754,924 1,297,669 Net Operating Loss Carry Forward 8,885 17,969 Total Deferred Tax Assets 828,446 1,394,515 Deferred Tax Liabilities Unrealized Gains from Investments 65,883 72,750 Other 36,593 35,296 Total Deferred Tax Liabilities 102,476 108,046 Net Deferred Tax Assets $ 725,970 $ 1,286,469 As a result of the reduction in the corporate federal tax rate from 35% to 21% pursuant to the Tax Reform Bill, the net deferred tax assets were reduced by $500.6 million. Future realization of tax benefits depends on the expectation of taxable income within a period of time that the tax benefits will reverse. The Partnership has recorded a significant deferred tax asset for the future amortization of tax basis intangibles acquired from the predecessor owners and current owners. The amortization period for these tax basis intangibles is 15 years; accordingly, the related deferred tax assets will reverse over the same period. The Partnership had a taxable loss of $43.2 million and $10.3 million for the years ended December 31, 2015 and 2016, respectively, of which $10.3 million was carried back and utilized against taxable income generated in the tax year ended December 31, 2014, $6.9 million will be utilized in the tax year ended December 31, 2017 and $36.3 million is available for carryforward to 2018. The Partnership has considered the 15 year amortization period for the tax basis intangibles and the 20 year carryforward period for its taxable loss in evaluating whether it should establish a valuation allowance. In evaluating its ability to utilize deferred tax assets, the Partnership considers projections of taxable income, beginning with historic results and incorporating assumptions of the amount of future pretax operating income. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that the Partnership uses to manage its business. At this time, the Partnership’s projections of future taxable income that include the effects of originating and reversing temporary differences, including those for the tax basis intangibles, indicate that it is more likely than not that the benefits from the deferred tax asset will be realized. Therefore, the Partnership has determined that no valuation allowance is needed at December 31, 2017. Currently, the Partnership does not believe it meets the indefinite reversal criteria that would cause the Partnership to not recognize a deferred tax liability with respect to its foreign subsidiaries. Where applicable, Blackstone will record a deferred tax liability for any outside basis difference of an investment in a foreign subsidiary. Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is subject to examination by federal and certain state, local and foreign tax regulators. As of December 31, 2017, Blackstone’s U.S. federal income tax returns for the years 2014 through 2016 are open under the normal three-year statute of limitations and therefore subject to examination. State and local tax returns are generally subject to audit from 2013 through 2016. The City of New York is examining certain other subsidiaries’ tax returns for the years 2007 through 2014. The Income Tax Department of the Government of India is examining the tax returns of the Indian subsidiaries for the years 2008 and 2009. HM Revenue and Customs in the U.K. is examining certain U.K. subsidiaries’ tax returns for 2011. Blackstone believes that during 2018 certain tax audits have a reasonable possibility of being completed and does not expect the results of these audits to have a material impact on the consolidated financial statements. Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: December 31, 2017 2016 2015 Unrecognized Tax Benefits — January 1 $ 3,581 $ 15,698 $ 19,836 Additions based on Tax Positions Related to Current Year — 902 1,031 Reductions for Tax Positions of Current Year — (851 ) — Additions for Tax Positions of Prior Years 11,167 — — Reductions for Tax Positions of Prior Years (1,860 ) (7,837 ) (4,032 ) Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations — (3,774 ) — Settlements (1,382 ) (357 ) — Exchange Rate Fluctuations (52 ) (200 ) (1,137 ) Unrecognized Tax Benefits — December 31 $ 11,454 $ 3,581 $ 15,698 If the above tax benefits were recognized, $11.4 million and $3.6 million for the years ended December 31, 2017 and 2016, respectively, would reduce the annual effective rate. Blackstone does not believe that it will have a material increase or decrease in its unrecognized tax benefits during the coming year. The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expense and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone recognizes interest and penalties accrued related to unrecognized tax positions in General, Administrative and Other Expenses. During the years ended December 31, 2017, 2016 and 2015, $(0.4) million, $(4.1) million and $(0.4) million of interest expense were accrued (reversed), respectively. During the years ended December 31, 2017, 2016 and 2015, no penalties were accrued. Other Income — Reduction of the Tax Receivable Agreement Liability In 2017, the $403.9 million Reduction of the Tax Receivable Agreement Liability was primarily attributable to the reduction in the corporate federal tax rate from 35% to 21% pursuant to the Tax Reform Bill. In 2015, the $82.7 million Reduction of the Tax Receivable Agreement Liability was primarily attributable to the October 1, 2015 spin-off |
NET INCOME PER COMMON UNIT
NET INCOME PER COMMON UNIT | 12 Months Ended |
Dec. 31, 2017 | |
NET INCOME PER COMMON UNIT | 15. NET INCOME PER COMMON UNIT Basic and diluted net income per common unit for the years ended December 31, 2017, 2016 and 2015 was calculated as follows: Year Ended December 31, 2017 2016 2015 Net Income for Per Common Unit Calculations Net Income Attributable to The Blackstone Group L.P., Basic $ 1,470,830 $ 1,039,235 $ 709,789 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units — 828,244 524,353 Net Income Attributable to The Blackstone Group L.P., Diluted $ 1,470,830 $ 1,867,479 $ 1,234,142 Units Outstanding Weighted-Average Common Units Outstanding, Basic 665,453,198 649,475,264 634,337,179 Weighted-Average Unvested Deferred Restricted Common Units 793,648 1,445,277 2,993,398 Weighted-Average Blackstone Holdings Partnership Units — 544,194,049 550,754,834 Weighted-Average Common Units Outstanding, Diluted 666,246,846 1,195,114,590 1,188,085,411 Net Income Per Common Unit, Basic $ 2.21 $ 1.60 $ 1.12 Net Income Per Common Unit, Diluted $ 2.21 $ 1.56 $ 1.04 Distributions Declared Per Common Unit (a) $ 2.32 $ 1.66 $ 2.90 (a) Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. The following table summarizes the anti-dilutive securities for the periods indicated: Year Ended December 31, 2017 2016 2015 Weighted-Average Blackstone Holdings Partnership Units 533,982,613 — — Unit Repurchase Program In January 2008, Blackstone announced that the Board of Directors of its general partner, Blackstone Group Management L.L.C., had authorized the repurchase by Blackstone of up to $500 million of Blackstone common units and Blackstone Holdings Partnership Units. Under this unit repurchase program, units may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number of Blackstone common units and Blackstone Holdings Partnership Units repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This unit repurchase program may be suspended or discontinued at any time and does not have a specified expiration date. During the years ended December 31, 2017, 2016 and 2015, no units were repurchased. As of December 31, 2017, the amount remaining available for repurchases under this program was $335.8 million. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
EQUITY-BASED COMPENSATION | 16. EQUITY-BASED COMPENSATION The Partnership has granted equity-based compensation awards to Blackstone’s senior managing directors, non-partner non-professionals For the years ended December 31, 2017, 2016 and 2015 the Partnership recorded compensation expense of $338.7 million, $323.7 million, and $629.6 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $47.1 million, $33.8 million, and $41.0 million, respectively. As of December 31, 2017, there was $785.2 million of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 4.0 years. Total vested and unvested outstanding units, including Blackstone common units, Blackstone Holdings Partnership Units and deferred restricted common units, were 1,200,759,045 as of December 31, 2017. Total outstanding unvested phantom units were 45,543 as of December 31, 2017. A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2017 and of changes during the period January 1, 2017 through December 31, 2017 is presented below: Blackstone Holdings The Blackstone Group L.P. Equity Settled Awards Cash Settled Awards Unvested Units Partnership Weighted- Deferred Weighted- Phantom Weighted- Balance, December 31, 2016 34,568,726 $ 33.58 12,206,016 $ 24.65 40,460 $ 28.14 Granted 2,471,571 32.89 3,484,875 29.30 12,214 30.79 Vested (6,632,473 ) 28.94 (6,268,037 ) 20.32 (4,708 ) 30.73 Forfeited (384,635 ) 26.40 (402,880 ) 29.67 (3,770 ) 33.32 Balance, December 31, 2017 30,023,189 $ 35.26 9,019,974 $ 30.03 44,196 $ 31.85 Units Expected to Vest The following unvested units, after expected forfeitures, as of December 31, 2017, are expected to vest: Units Weighted-Average Blackstone Holdings Partnership Units 25,832,787 3.8 Deferred Restricted Blackstone Common Units 7,926,153 1.9 Total Equity-Based Awards 33,758,940 3.4 Phantom Units 34,752 2.9 Deferred Restricted Common Units and Phantom Units The Partnership has granted deferred restricted common units to certain senior and non-senior non-senior The fair values of deferred restricted common units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 5 years. Additionally, the calculation of the compensation expense assumes forfeiture rates based upon historical turnover rates, ranging from 1.0% to 11.6% annually by employee class, and a per unit discount, ranging from $0.48 to $10.88. The phantom units vest over the assumed service period, which ranges from 1 to 5 years. On each such vesting date, Blackstone delivered or will deliver cash to the holder in an amount equal to the number of phantom units held multiplied by the then fair market value of the Blackstone common units on such date. Additionally, the calculation of the compensation expense assumes forfeiture rates based upon historical turnover rates, ranging from 9.9% to 11.6% annually by employee class. Blackstone is accounting for these cash settled awards as a liability. Blackstone paid $0.3 million, $0.2 million and $1.1 million to non-senior Blackstone Holdings Partnership Units The Partnership has granted deferred restricted Blackstone Holdings Partners Units to certain newly hired and pre-existing The fair values of deferred restricted Blackstone Holdings Partnership Units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 9 years. Additionally, the calculation of the compensation expense assumes a forfeiture rate of up to 10.0%, based on historical experience. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS | 17. RELATED PARTY TRANSACTIONS Affiliate Receivables and Payables Due from Affiliates and Due to Affiliates consisted of the following: December 31, 2017 2016 Due from Affiliates Advances Made on Behalf of Certain Non-Controlling $ 410,877 $ 342,943 Amounts Due from Portfolio Companies and Funds 587,955 456,469 Management and Performance Fees Due from Non-Consolidated 595,330 445,280 Payments Made on Behalf of Non-Consolidated 355,767 196,134 Investments Redeemed in Non-Consolidated 77,943 1,552 Accrual for Potential Clawback of Previously Distributed Carried Interest 1,112 — $ 2,028,984 $ 1,442,378 December 31, 2017 2016 Due to Affiliates Due to Certain Non-Controlling $ 715,734 $ 1,186,145 Distributions Received on Behalf of Certain Non-Controlling 87,829 28,012 Distributions Received on Behalf of Blackstone Entities 38,789 80,034 Payments Made by Non-Consolidated 51,249 19,833 Due to Note Holders of Consolidated CLO Vehicles 41,386 7,748 Accrual for Potential Repayment of Previously Received Performance Fees 2,171 — $ 937,158 $ 1,321,772 Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance fee arrangements. As of December 31, 2017 and 2016, such investments aggregated $813.2 million and $740.3 million, respectively. Their share of the Net Income Attributable to Redeemable Non-Controlling Non-Controlling Revenues Earned from Affiliates Management and Advisory Fees, Net earned from affiliates totaled $161.2 million, $185.8 million and $210.7 million for the years ended December 31, 2017, 2016 and 2015, respectively. Fees relate primarily to transaction and monitoring fees which are negotiated in the ordinary course of fundraising and investment activities. Loans to Affiliates Loans to affiliates consist of interest bearing advances to certain Blackstone individuals to finance their investments in certain Blackstone Funds. These loans earn interest at Blackstone’s cost of borrowing and such interest totaled $3.4 million, $1.4 million and $5.0 million for the years ended December 31, 2017, 2016 and 2015, respectively. Contingent Repayment Guarantee Blackstone and its personnel who have received carried interest distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess carried interest allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Fees represents amounts previously paid to Blackstone Holdings and non-controlling Aircraft and Other Services In the normal course of business, Blackstone personnel make use of aircraft owned as personal assets by Stephen A. Schwarzman; an aircraft owned jointly as a personal asset by Hamilton E. James, Blackstone’s Executive Vice Chairman, and a Director of Blackstone, and another senior managing director; an aircraft owned as a personal asset by Jonathan D. Gray, Blackstone’s President and Chief Operating Officer and a Director of Blackstone; and an aircraft owned jointly as a personal asset by Bennett J. Goodman, Co-Founder In addition, on occasion, certain of Blackstone’s executive officers and employee directors and their families may make personal use of aircraft owned by Blackstone or in which Blackstone owns a fractional interest, as well as other assets of Blackstone. Any such personal use of Blackstone assets is charged to the executive officer or employee director based on market rates and usage. Personal use of Blackstone resources is also reimbursed to Blackstone based on market rates. The transactions described herein are not material to the Consolidated Financial Statements. Tax Receivable Agreements Blackstone used a portion of the proceeds from the IPO and the sale of non-voting one-for-one One of the subsidiaries of the Partnership which is a corporate taxpayer has entered into tax receivable agreements with each of the predecessor owners and additional tax receivable agreements have been executed, and will continue to be executed, with newly-admitted senior managing directors and others who acquire Blackstone Holdings Partnership Units. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements. As a result of the Tax Cuts and Jobs Act of 2017 that was signed into law on December 22, 2017, there was a reduction of $403.9 million of the tax receivable agreement liability due to the pre-IPO after-tax pre-IPO pre-IPO Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to Blackstone common units, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Acquisition of Ownership Interests from Non-Controlling Non-Cash Other Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis. Additionally, please see Note 18. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES Commitments Operating Leases The Partnership leases office space under non-cancelable 2018 $ 77,802 2019 72,441 2020 67,727 2021 77,615 2022 76,520 Thereafter 343,625 Total $ 715,730 Investment Commitments Blackstone had $2.4 billion of investment commitments as of December 31, 2017 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. The consolidated Blackstone Funds had signed investment commitments of $170.5 million as of December 31, 2017 which includes $72.8 million of signed investment commitments for portfolio company acquisitions in the process of closing. Contingencies Guarantees Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the on-going The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to Blackstone Group International Partners LLP. The amount guaranteed as of December 31, 2017 was $179.2 million. Litigation From time to time, Blackstone is named as a defendant in legal actions relating to transactions conducted in the ordinary course of business. Although there can be no assurance of the outcome of such legal actions, in the opinion of management, Blackstone does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows. Contingent Obligations (Clawback) Carried Interest is subject to clawback to the extent that the Carried Interest received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. The lives of the carry funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through 2028. Further extensions of such terms may be implemented under given circumstances. For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the carry funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Carried Interest distributions with respect to such fund’s realized investments. The following table presents the clawback obligations by segment: December 31, 2017 2016 Segment Blackstone Current and Total Blackstone Current and Total Credit $ 1,059 $ 1,112 $ 2,171 $ — $ — $ — For Private Equity, Real Estate, and certain Credit Funds, a portion of the carried interest paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Consolidated Financial Statements of the Partnership, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At December 31, 2017, $655.9 million was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required. In the Credit segment, payment of carried interest to the Partnership by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation. If, at December 31, 2017, all of the investments held by our carry funds were deemed worthless, a possibility that management views as remote, the amount of Carried Interest subject to potential clawback would be $6.2 billion, on an after tax basis where applicable, of which Blackstone Holdings is potentially liable for $5.7 billion if current and former Blackstone personnel default on their share of the liability, a possibility that management also views as remote. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
EMPLOYEE BENEFIT PLANS | 19. EMPLOYEE BENEFIT PLANS The Partnership provides a 401(k) plan (the “Plan”) for eligible employees in the United States. Through December 31, 2016 for certain administrative employees who were eligible for participation in the Plan, the Partnership made a non-elective |
REGULATED ENTITIES
REGULATED ENTITIES | 12 Months Ended |
Dec. 31, 2017 | |
REGULATED ENTITIES | 20. REGULATED ENTITIES The Partnership has a registered broker-dealer that is subject to the minimum net capital requirements of the SEC. This entity has continuously operated in excess of these requirements. The Partnership also has certain entities based in Australia, Hong Kong, Ireland, Japan, Luxembourg, Singapore and the United Kingdom, which are subject to the capital requirements of the Australian Securities and Investments Commission, the Hong Kong Securities and Futures Commission, the Central Bank of Ireland, the Japan Financial Services Agency, the Commission de Surveillance du Secteur Financier, the Monetary Authority of Singapore and the Financial Conduct Authority, respectively. These entities have continuously operated in excess of their regulatory capital requirements. Certain other U.S. and non-U.S. The regulatory capital requirements referred to above may restrict the Partnership’s ability to withdraw capital from its entities. At December 31, 2017, $37.2 million of net assets of consolidated entities may be restricted as to the payment of cash dividends and advances to the Partnership. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2017 | |
SEGMENT REPORTING | 21. SEGMENT REPORTING Blackstone transacts its primary business in the United States and substantially all of its revenues are generated domestically. Blackstone conducts its alternative asset management businesses through four segments: • Private Equity — Blackstone’s Private Equity segment primarily comprises its management of flagship corporate private equity-funds, sector-focused corporate private equity funds, including energy-focused funds, a core private equity fund, an opportunistic investment platform, a secondary private equity fund of funds business, a multi-asset investment program for eligible high net worth investors and a capital markets services business. • Real Estate — Blackstone’s Real Estate segment primarily comprises its management of global, European focused and Asian focused opportunistic real estate funds, high yield real estate debt funds, liquid real estate debt funds, core+ real estate funds, a NYSE-listed REIT and a non-exchange • Hedge Fund Solutions — Blackstone’s Hedge Fund Solutions segment is comprised principally of Blackstone Alternative Asset Management (“BAAM”), which manages a broad range of commingled and customized hedge fund of fund solutions and also includes investment platforms that seed new hedge fund businesses, purchase minority ownership interests in more established hedge funds, invest in special situation opportunities, create alternative solutions in regulated structures and trade directly. • Credit — Blackstone’s Credit segment consists principally of GSO Capital Partners LP (“GSO”), which is organized into performing credit strategies (which include mezzanine lending funds, middle market direct lending funds and other performing credit strategies), distressed strategies (which include credit alpha strategies, stressed/distressed funds and energy strategies), long only strategies (which consist of CLOs, closed end funds, commingled funds and separately managed accounts), Harvest (which invests in publicly traded master limited partnerships holding primarily midstream energy assets in the U.S.), and Blackstone Insurance Solutions (which partners with insurers to deliver customizable and diversified portfolios of Blackstone products across asset classes, as well as the option for full management of insurance companies’ investment portfolios). These business segments are differentiated by their various sources of income. The Private Equity, Real Estate, Hedge Fund Solutions and Credit segments primarily earn their income from management fees and investment returns on assets under management. Blackstone uses Economic Income as a key measure of value creation, a benchmark of its performance and in making resource deployment and compensation decisions across its four segments. Economic Income represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstone’s 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. Economic Income presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages. Economic Net Income (“ENI”) represents Economic Income 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 and adjusted to exclude the tax impact of any divestitures. Senior management makes operating decisions and assesses the performance of each of Blackstone’s business segments based on financial and operating metrics and data that is presented without the consolidation of any of the Blackstone Funds that are consolidated into the Consolidated Financial Statements. Consequently, all segment data excludes the assets, liabilities and operating results related to the Blackstone Funds. On October 1, 2015, Blackstone completed the spin-off spin-off. Effective December 31, 2017, Total Segment measures have been redefined to eliminate inter-segment interest revenue and expense. This adjustment results in no change to Economic Income on a Total Segment basis, but results in changes to each segment’s Economic Income. All prior periods have been recast to reflect this adjustment. Effective December 31, 2017, an insurance related multi-asset product in Blackstone’s Private Equity segment was reclassified to Blackstone’s Credit segment. All prior periods have been recast to reflect this reclassification. The following tables present the financial data for Blackstone’s four segments as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015. December 31, 2017 and the Year Then Ended Private Equity Real Estate Hedge Fund Solutions Credit Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 724,818 $ 872,191 $ 516,048 $ 567,334 $ 2,680,391 Transaction, Advisory and Other Fees, Net 57,624 82,781 2,980 13,431 156,816 Management Fee Offsets (18,007 ) (15,934 ) (93 ) (32,382 ) (66,416 ) Total Management and Advisory Fees, Net 764,435 939,038 518,935 548,383 2,770,791 Performance Fees Realized Carried Interest 1,157,188 2,124,472 — 158,293 3,439,953 Incentive Fees — 96,402 154,343 126,554 377,299 Unrealized Carried Interest (13,214 ) (146,476 ) 4,806 54,233 (100,651 ) Incentive Fees — 569 2,965 (12,011 ) (8,477 ) Total Performance Fees 1,143,974 2,074,967 162,114 327,069 3,708,124 Investment Income (Loss) Realized 154,837 255,903 9,074 16,380 436,194 Unrealized (51,417 ) (122,220 ) 41,012 1,419 (131,206 ) Total Investment Income 103,420 133,683 50,086 17,799 304,988 Interest and Dividend Revenue 32,838 58,084 21,525 30,473 142,920 Other (35,662 ) (51,425 ) (24,380 ) (28,584 ) (140,051 ) Total Revenues 2,009,005 3,154,347 728,280 895,140 6,786,772 Expenses Compensation and Benefits Compensation 362,674 427,211 176,782 236,449 1,203,116 Performance Fee Compensation Realized Carried Interest 404,544 743,011 — 79,006 1,226,561 Incentive Fees — 46,193 53,348 61,142 160,683 Unrealized Carried Interest 71,095 13,688 1,786 18,803 105,372 Incentive Fees — (31 ) 1,111 (5,366 ) (4,286 ) Total Compensation and Benefits 838,313 1,230,072 233,027 390,034 2,691,446 Interest Expense 51,129 71,341 31,618 38,750 192,838 Other Operating Expenses 120,997 136,042 68,265 99,562 424,866 Total Expenses 1,010,439 1,437,455 332,910 528,346 3,309,150 Economic Income $ 998,566 $ 1,716,892 $ 395,370 $ 366,794 $ 3,477,622 Segment Assets as of December 31, 2017 $ 6,369,491 $ 7,597,147 $ 2,107,502 $ 3,927,071 $ 20,001,211 December 31, 2016 and the Year Then Ended Private Equity Real Estate Hedge Fund Solutions Credit Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 555,593 $ 795,161 $ 521,736 $ 525,289 $ 2,397,779 Transaction, Advisory and Other Fees, Net 39,283 95,324 1,061 9,190 144,858 Management Fee Offsets (34,810 ) (7,322 ) — (37,512 ) (79,644 ) Total Management and Advisory Fees, Net 560,066 883,163 522,797 496,967 2,462,993 Performance Fees Realized Carried Interest 245,268 1,203,484 — 26,163 1,474,915 Incentive Fees — 29,625 42,177 100,299 172,101 Unrealized Carried Interest 425,691 (150,997 ) 504 206,043 481,241 Incentive Fees — 39,527 785 9,417 49,729 Total Performance Fees 670,959 1,121,639 43,466 341,922 2,177,986 Investment Income (Loss) Realized 73,377 122,712 (7,224 ) 11,004 199,869 Unrealized (4,593 ) (1,119 ) 15,462 10,671 20,421 Total Investment Income 68,784 121,593 8,238 21,675 220,290 Interest and Dividend Revenue 25,364 38,453 13,864 18,718 96,399 Other 20,458 16,523 8,157 9,574 54,712 Total Revenues 1,345,631 2,181,371 596,522 888,856 5,012,380 Expenses Compensation and Benefits Compensation 309,968 385,352 185,320 202,576 1,083,216 Performance Fee Compensation Realized Carried Interest 110,882 332,622 — 12,450 455,954 Incentive Fees — 12,085 19,397 46,614 78,096 Unrealized Carried Interest 163,937 44,775 181 103,945 312,838 Incentive Fees — 16,872 292 3,970 21,134 Total Compensation and Benefits 584,787 791,706 205,190 369,555 1,951,238 Interest Expense 49,126 49,849 24,524 24,523 148,022 Other Operating Expenses 130,685 137,581 75,870 87,700 431,836 Total Expenses 764,598 979,136 305,584 481,778 2,531,096 Economic Income $ 581,033 $ 1,202,235 $ 290,938 $ 407,078 $ 2,481,284 Segment Assets as of December 31, 2016 $ 6,493,236 $ 7,643,123 $ 2,160,688 $ 2,905,081 $ 19,202,128 Year Ended December 31, 2015 Private Equity Real Estate Hedge Fund Solutions Credit Financial Advisory Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 502,640 $ 668,575 $ 524,386 $ 500,982 $ — $ 2,196,583 Transaction, Advisory and Other Fees, Net 46,819 110,577 317 6,371 297,732 461,816 Management Fee Offsets (36,760 ) (26,840 ) 171 (30,065 ) — (93,494 ) Total Management and Advisory Fees, Net 512,699 752,312 524,874 477,288 297,732 2,564,905 Performance Fees Realized Carried Interest 1,474,987 1,634,733 — 96,156 — 3,205,876 Incentive Fees — 17,153 68,197 109,396 — 194,746 Unrealized Carried Interest (717,955 ) (680,542 ) 2,021 (198,820 ) — (1,595,296 ) Incentive Fees — 20,802 (8,084 ) (19,967 ) — (7,249 ) Total Performance Fees 757,032 992,146 62,134 (13,235 ) — 1,798,077 Investment Income (Loss) Realized 189,649 235,582 (12,741 ) 7,186 (868 ) 418,808 Unrealized (116,338 ) (231,889 ) (1,435 ) (16,258 ) (39 ) (365,959 ) Total Investment Income (Loss) 73,311 3,693 (14,176 ) (9,072 ) (907 ) 52,849 Interest and Dividend Revenue 22,685 33,501 11,194 18,268 10,013 95,661 Other 5,854 (1,422 ) 200 5,171 (1,303 ) 8,500 Total Revenues 1,371,581 1,780,230 584,226 478,420 305,535 4,519,992 Expenses Compensation and Benefits Compensation 280,248 358,381 179,484 190,189 180,917 1,189,219 Performance Fee Compensation Realized Carried Interest 256,922 484,037 — 52,841 — 793,800 Incentive Fees — 8,678 27,155 50,113 — 85,946 Unrealized Carried Interest (10,172 ) (196,347 ) 823 (107,000 ) — (312,696 ) Incentive Fees — 8,817 (2,912 ) (8,395 ) — (2,490 ) Total Compensation and Benefits 526,998 663,566 204,550 177,748 180,917 1,753,779 Interest Expense 45,068 42,562 21,049 21,207 9,956 139,842 Other Operating Expenses 142,985 125,513 63,468 66,879 49,730 448,575 Total Expenses 715,051 831,641 289,067 265,834 240,603 2,342,196 Economic Income $ 656,530 $ 948,589 $ 295,159 $ 212,586 $ 64,932 $ 2,177,796 The following tables reconcile the Total Segments to Blackstone’s Income Before Provision for Taxes for the years ended December 31, 2017, 2016 and 2015 along with Total Assets as of December 31, 2017 and 2016: December 31, 2017 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 6,786,772 $ 332,281 (a) $ 7,119,053 Expenses $ 3,309,150 $ 418,254 (b) $ 3,727,404 Other Income $ — $ 725,452 (c) $ 725,452 Economic Income $ 3,477,622 $ 639,479 (d) $ 4,117,101 Total Assets $ 20,001,211 $ 14,427,699 (e) $ 34,428,910 December 31, 2016 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 5,012,380 $ 113,454 (a) $ 5,125,834 Expenses $ 2,531,096 $ 397,478 (b) $ 2,928,574 Other Income $ — $ 184,750 (c) $ 184,750 Economic Income $ 2,481,284 $ (99,274 )(d) $ 2,382,010 Total Assets $ 19,202,128 $ 7,201,209 (e) $ 26,403,337 Year Ended December 31, 2015 Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 4,519,992 $ 126,560 (a) $ 4,646,552 Expenses $ 2,342,196 $ 748,679 (b) $ 3,090,875 Other Income $ — $ 259,071 (c) $ 259,071 Economic Income $ 2,177,796 $ (363,048 )(d) $ 1,814,748 (a) The Revenues adjustment represents management and performance fees earned from Blackstone Funds that were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment (b) The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation. (c) The Other Income adjustment results from the following: Year Ended December 31, 2017 2016 2015 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (329,871 ) $ (65,849 ) $ (100,657 ) Fund Expenses Added in Consolidation 137,433 7,329 48,239 Income Associated with Non-Controlling 511,245 250,129 231,045 Transaction-Related Other Income (Loss) 406,645 (6,859 ) 80,444 Total Consolidation Adjustments and Reconciling Items $ 725,452 $ 184,750 $ 259,071 (d) The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2017 2016 2015 Economic Income $ 3,477,622 $ 2,481,284 $ 2,177,796 Adjustments Amortization of Intangibles (48,297 ) (84,466 ) (104,530 ) Transaction-Related Charges 176,531 (264,937 ) (489,563 ) Income Associated with Non-Controlling 511,245 250,129 231,045 Total Consolidation Adjustments and Reconciling Items 639,479 (99,274 ) (363,048 ) Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 (e) The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS There have been no events since December 31, 2017 that require recognition or disclosure in the Consolidated Financial Statements. |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 23. QUARTERLY FINANCIAL DATA (UNAUDITED) Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (a) Revenues $ 1,940,723 $ 1,549,355 $ 1,746,777 $ 1,882,198 Expenses 929,650 885,112 903,760 1,008,882 Other Income 66,132 110,054 63,448 485,818 Income Before Provision for Taxes $ 1,077,205 $ 774,297 $ 906,465 $ 1,359,134 Net Income $ 1,019,768 $ 744,689 $ 846,953 $ 762,544 Net Income Attributable to The Blackstone Group L.P. $ 461,825 $ 342,775 $ 384,642 $ 281,588 Net Income Per Common Unit Common Units, Basic $ 0.70 $ 0.52 $ 0.58 $ 0.42 Common Units, Diluted $ 0.69 $ 0.51 $ 0.56 $ 0.42 Distributions Declared (b) $ 0.47 $ 0.87 $ 0.54 $ 0.44 Three Months Ended March 31, 2016 (c) June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 932,354 $ 1,192,426 $ 1,431,685 $ 1,569,369 Expenses 617,710 712,603 773,777 824,484 Other Income 19,142 30,703 61,395 73,510 Income Before Provision for Taxes $ 333,786 $ 510,526 $ 719,303 $ 818,395 Net Income $ 324,640 $ 463,111 $ 691,589 $ 770,308 Net Income Attributable to The Blackstone Group L.P. $ 159,753 $ 198,626 $ 312,905 $ 367,951 Net Income Per Common Unit Common Units, Basic $ 0.23 $ 0.31 $ 0.48 $ 0.56 Common Units, Diluted $ 0.23 $ 0.30 $ 0.47 $ 0.55 Distributions Declared (b) $ 0.61 $ 0.28 $ 0.36 $ 0.41 (a) The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. “Income Taxes”. (b) Distributions declared reflects the calendar date of the declaration of each distribution. (c) Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding – Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Partnership have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The consolidated financial statements include the accounts of the Partnership, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which the Partnership is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is presumed to have control. All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Consolidated Statements of Cash Flows. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments and the accounting for Goodwill and equity-based compensation. Actual results could differ from those estimates and such differences could be material. |
Consolidation | Consolidation The Partnership consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. The Partnership has a controlling interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick out rights or participating rights that would overcome the presumption of control by the Partnership. Accordingly, the Partnership consolidates Blackstone Holdings and records non-controlling In addition, the Partnership consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which the Partnership holds a variable interest is a VIE and (b) whether the Partnership’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. The Partnership determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and reconsiders that conclusion continually. In evaluating whether the Partnership is the primary beneficiary, Blackstone evaluates its economic interests in the entity held either directly or indirectly by the Partnership. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that the Partnership is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by the Partnership, affiliates of the Partnership or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, the Partnership assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. |
Revenue Recognition | Revenue Recognition Revenues primarily consist of management and advisory fees, performance fees, investment income, interest and dividend revenue and other. Management and Advisory Fees, Net The Partnership earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital, or in some cases, a fixed fee. Base management fees are recognized based on contractual terms specified in the underlying investment advisory agreements. Transaction and other fees (including monitoring fees) are fees charged directly to managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to the Partnership (“management fee reductions”) by an amount equal to a portion of the transaction and other fees directly paid to the Partnership by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are granted based on the amount such limited partners reimburse the Blackstone Funds for placement fees. Advisory fees consist of transaction-based fee arrangements. Transaction-based fees are recognized when (a) there is evidence of an arrangement with a client, (b) agreed upon services have been provided, (c) fees are fixed or determinable, and (d) collection is reasonably assured. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Consolidated Statements of Financial Condition. Management fees paid by limited partners to the Blackstone Funds and passed on to Blackstone are not considered affiliate revenues. Performance Fees In certain fund structures, specifically in private equity, real estate and certain hedge fund solutions and credit-focused funds (“carry funds”), performance fees (“Carried Interest”) are allocated to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, the Partnership calculates the Carried Interest that would be due to the Partnership for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Carried Interest to reflect either (a) positive performance resulting in an increase in the Carried Interest allocated to the general partner or (b) negative performance that would cause the amount due to the Partnership to be less than the amount previously recognized as revenue, resulting in a negative adjustment to Carried Interest allocated to the general partner. In each scenario, it is necessary to calculate the Carried Interest on cumulative results compared to the Carried Interest recorded to date and make the required positive or negative adjustments. The Partnership ceases to record negative Carried Interest allocations once previously recognized Carried Interest allocations for such fund have been fully reversed. The Partnership is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Carried Interest over the life of a fund. Accrued but unpaid Carried Interest as of the reporting date is reflected in Investments in the Consolidated Statements of Financial Condition. Carried Interest is realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Carried Interest is subject to clawback to the extent that the Carried Interest received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Carried Interest, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling Investment Income (Loss) Interest and Dividend Revenue Other Revenue |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: • Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. The Partnership does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. • Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter • Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Partnership’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Transfers between levels of the fair value hierarchy are recognized at the beginning of the reporting period. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: • Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. • Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. • Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Private Equity Investments Real Estate Investments Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. Level III Valuation Process Investments classified within Level III of the fair value hierarchy are valued on a quarterly basis, taking into consideration factors including any changes in Blackstone’s weighted-average cost of capital assumptions, discounted cash flow projections and exit multiple assumptions, as well as any changes in economic and other relevant conditions, and valuation models are updated accordingly. The valuation process also includes a review by an independent valuation party, at least annually for all investments, and quarterly for certain investments, to corroborate the values determined by management. The valuations of Blackstone’s investments are reviewed quarterly by a valuation committee chaired by Blackstone’s Vice Chairman and includes senior heads of each of Blackstone’s businesses, as well as representatives of legal and finance. Each quarter, the valuations of Blackstone’s investments are also reviewed by the Audit Committee in a meeting attended by the chairman of the valuation committee. The valuations are further tested by comparison to actual sales prices obtained on disposition of the investments. |
Investments, at Fair Value | Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, the Partnership has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. The Partnership has applied the fair value option for certain loans and receivables and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. Accounting for these financial instruments at fair value is consistent with how the Partnership accounts for its other principal investments. Loans extended to third parties are recorded within Accounts Receivable within the Consolidated Statements of Financial Condition. Debt securities for which the fair value option has been elected are recorded within Investments. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. In addition, the Partnership has elected the fair value option for the assets and liabilities of CLO vehicles that are consolidated as of January 1, 2010, as a result of the initial adoption of variable interest entity consolidation guidance. The Partnership has also elected the fair value option for CLO vehicles consolidated as a result of the acquisitions of CLO management contracts or the acquisition of the share capital of CLO managers. Historically, the adjustment resulting from the difference between the fair value of assets and liabilities for each of these events was presented as a transition and acquisition adjustment to Appropriated Partners’ Capital. Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and Liabilities within Loans Payable for the amounts due to unaffiliated third parties and Due to Affiliates for the amounts held by non-consolidated Non-Controlling Non-Controlling The Partnership has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, the Partnership may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, the Partnership will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. |
Equity Method Investments | Equity Method Investments Investments in which the Partnership is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting. Under the equity method of accounting, the Partnership’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition. As the underlying investments of the Partnership’s equity method investments in Blackstone Funds are reported at fair value, the carrying value of the Partnership’s equity method investments approximates fair value. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations. |
Cash Held by Blackstone Funds and Other | Cash Held by Blackstone Funds and Other Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone. |
Accounts Receivable | Accounts Receivable Accounts Receivable includes management fees receivable from limited partners, receivables from underlying funds in the fund of hedge funds business, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations. |
Intangibles and Goodwill | Intangibles and Goodwill Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Carried Interest. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from three to twenty years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the Consolidated Statements of Operations. The Partnership does not hold any indefinite-lived intangible assets. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable. Goodwill comprises goodwill arising from the contribution and reorganization of the Partnership’s predecessor entities in 2007 immediately prior to its IPO, the acquisition of GSO in 2008, the acquisition of Strategic Partners in 2013 and the acquisition of Harvest Fund Advisors LLC (“Harvest”) in 2017. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segment is the reporting level for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, a two-step |
Furniture, Equipment and Leasehold Improvements | Furniture, Equipment and Leasehold Improvements Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements are the lesser of the lease terms or the life of the asset, generally ten to fifteen years, and three to seven years for other fixed assets. The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. |
Foreign Currency | Foreign Currency In the normal course of business, the Partnership may enter into transactions not denominated in United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, the Partnership consolidates a number of entities that have a non-U.S. Non-U.S. non-U.S. Non-Controlling |
Comprehensive Income | Comprehensive Incom Comprehensive Income consists of Net Income and Other Comprehensive Income. The Partnership’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments. |
Non-Controlling Interests in Consolidated Entities | Non-Controlling Non-Controlling non-controlling non-controlling |
Redeemable Non-Controlling Interests in Consolidated Entities | Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling |
Non-Controlling Interests in Blackstone Holdings | Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits Performance Fee in-kind) |
Other Income | Other Income Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments. Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations. Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other Income — Reduction of the Tax Receivable Agreement Liability” for additional information. |
Income Taxes | Income Taxes The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in non-U.S. non-U.S. Income taxes are accounted for using the asset and liability method of accounting. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis, using tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current and deferred tax liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. Blackstone uses the flow-through method to account for investment tax credits. Under this method, the investment tax credits are recognized as a reduction to income tax expense. Blackstone analyzes its tax filing positions in all of the U.S. federal, state, local and foreign tax jurisdictions where it is required to file income tax returns, as well as for all open tax years in these jurisdictions. Blackstone records uncertain tax positions on the basis of a two-step |
Net Income (Loss) Per Common Unit | Net Income (Loss) Per Common Unit Basic Income (Loss) Per Common Unit is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group L.P. by the weighted-average number of common units and unvested participating common units outstanding for the period. Diluted Income (Loss) Per Common Unit reflects the assumed conversion of all dilutive securities. Diluted Income (Loss) Per Common Unit excludes the anti-dilutive effect of Blackstone Holdings Partnership Units and deferred restricted common units, as applicable. |
Repurchase and Reverse Repurchase Agreements | Repurchase and Reverse Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. The Partnership manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide the Partnership, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. The Partnership takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. The Partnership also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. Additional disclosures relating to reverse repurchase and repurchase agreements are discussed in Note 10. “Reverse Repurchase and Repurchase Agreements”. Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. |
Securities Sold, Not Yet Purchased | Securities Sold, Not Yet Purchased Securities Sold, Not Yet Purchased consist of equity and debt securities that the Partnership has borrowed and sold. The Partnership is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. The Partnership is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. Securities Sold, Not Yet Purchased are recorded at fair value in the Consolidated Statements of Financial Condition. |
Derivative Instruments | Derivative Instruments The Partnership recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date the Partnership enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). For a fair value hedge, Blackstone records changes in the fair value of the derivative and, to the extent that it is highly effective, changes in the fair value of the hedged asset or liability attributable to the hedged risk, in current period earnings in General, Administrative and Other in the Consolidated Statements of Operations. Changes in the fair value of derivatives designated as hedging instruments caused by factors other than changes in the risk being hedged, which are excluded from the assessment of hedge effectiveness, are recognized in current period earnings. Gains or losses on a derivative instrument that is designated as, and is effective as, an economic hedge of a net investment in a foreign operation are reported in the cumulative translation adjustment section of other comprehensive income to the extent it is effective as a hedge. The ineffective portion of a net investment hedge is recognized in current period earnings. The Partnership formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and the Partnership’s evaluation of effectiveness of its hedged transaction. At least monthly, the Partnership also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. For net investment hedges, the Partnership uses a method based on changes in spot rates to measure effectiveness. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The Partnership may also at any time remove a designation of a fair value hedge. The fair values of hedging derivative instruments are reflected within Other Assets in the Consolidated Statements of Financial Condition. For freestanding derivative contracts, the Partnership presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are held by the Partnership, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. The Partnership has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides the Partnership, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. Blackstone’s disclosures regarding offsetting are discussed in Note 12. “Offsetting of Assets and Liabilities”. |
Affiliates | Affiliates Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. |
Distributions | Distributions Distributions are reflected in the consolidated financial statements when declared. |
Recent Accounting Developments | Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance on revenue from contracts with customers. The guidance requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. The guidance introduces new qualitative and quantitative disclosure requirements about contracts with customers including revenue and impairments recognized, disaggregation of revenue and information about contract balances and performance obligations. Information is required about significant judgments and changes in judgments in determining the timing of satisfaction of performance obligations and determining the transaction price and amounts allocated to performance obligations. Additional disclosures are required about assets recognized from the costs to obtain or fulfill a contract. In August 2015, the FASB issued new guidance deferring the effective date of the new revenue recognition standard by one year. The new guidance should be applied for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Blackstone has concluded that capital allocation-based Performance Fees (“Capital Allocation-Based Arrangements”) represent equity method investments that are not in the scope of the amended revenue recognition guidance. Therefore, effective January 1, 2018, Blackstone will amend the recognition and measurement of Capital Allocation-Based Arrangements. This accounting change will not change the timing or amount of revenue recognized related to Capital Allocation-Based Arrangements. These amounts are currently recognized within Realized and Unrealized Performance Fees — Carried Interest and Incentive Fees in the Consolidated Statements of Operations. Under the equity method of accounting Blackstone will recognize its allocations of Carried Interest or Incentive Fees within Investment Income along with the allocations proportionate to Blackstone’s ownership interests in the Blackstone Funds. Blackstone will apply a retrospective application and prior periods shall be restated. The impact of adoption is a reclassification of Carried Interest to Investment Income. This change will have no impact on Net Income Attributable to The Blackstone Group L.P. Blackstone has concluded that the majority of its Incentive Fees are not part of a Capital Allocation-Based Arrangement (“Contractual Incentive Fees”), and are within the scope of the amended revenue recognition guidance. This accounting change will delay recognition of Contractual Incentive Fees compared to our current accounting treatment, and it is not expected to have a material impact on Blackstone’s financial statements. The Partnership has evaluated the impact of the amended revenue recognition guidance on other revenue streams including management fees and it is not expected to have a material impact on Blackstone’s financial statements. In February 2016, the FASB issued amended guidance on the accounting for leases. The guidance requires the recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP. The guidance retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under previous GAAP. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee have not changed significantly from previous GAAP. For operating leases, a lessee is required to do the following: (a) recognize a right-of-use The guidance is effective for fiscal periods beginning after December 15, 2018. Early application is permitted. Blackstone is evaluating the impact of the amended guidance on the Consolidated Statement of Financial Condition. It is not expected to have a material impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows. In November 2016, the FASB issued amended guidance on classification and presentation of restricted cash on the statement of cash flows. Under the new guidance, reporting entities are required to explain the changes in the combined total of restricted and unrestricted balances in the statement of cash flows. Therefore, amounts generally described as restricted cash or restricted cash equivalents (hereinafter referred to as “restricted cash”) should be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Reporting entities will also be required to disclose how the statement of cash flows reconciles to the balance sheet in any situation in which the balance sheet includes more than one line item of cash, cash equivalents, and restricted cash. The new guidance should be applied for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period using a retrospective transition method to each period presented. Early application is permitted. The Partnership is currently evaluating the impact of this guidance on the financial statements. In January 2016, the FASB issued amended guidance on the classification and measurement of financial instruments. The new guidance will impact the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. In addition, the FASB clarified the need for a valuation allowance on deferred tax assets resulting from unrealized losses on available-for-sale |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible Assets, Net | Intangible Assets, Net consists of the following: December 31, 2017 2016 Finite-Lived Intangible Assets / Contractual Rights $ 1,594,876 $ 1,400,876 Accumulated Amortization (1,185,048 ) (1,138,272 ) Intangible Assets, Net $ 409,828 $ 262,604 |
Changes in Partnership's Intangible Assets, Net | Changes in the Partnership’s Intangible Assets, Net consists of the following: Year Ended December 31, 2017 2016 2015 Balance, Beginning of Year $ 262,604 $ 345,547 $ 458,833 Amortization Expense (46,776 ) (82,943 ) (101,437 ) Acquisitions 194,000 — — Intangibles Transferred to PJT Partners Inc. at Spin-Off — — (11,849 ) Balance, End of Year $ 409,828 $ 262,604 $ 345,547 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments | Investments consist of the following: December 31, 2017 2016 Investments of Consolidated Blackstone Funds $ 12,954,121 $ 6,480,674 Equity Method Investments 3,263,131 3,092,378 Corporate Treasury Investments 2,566,043 2,518,438 Performance Fees 5,328,280 5,320,994 Other Investments 322,474 282,491 $ 24,434,049 $ 17,694,975 |
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations: Year Ended December 31, 2017 2016 2015 Realized Gains $ 165,106 $ 123,524 $ 223,078 Net Change in Unrealized Losses (21,016 ) (61,045 ) (161,398 ) Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 144,090 62,479 61,680 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 177,507 122,271 114,684 Other Income — Net Gains from Fund Investment Activities $ 321,597 $ 184,750 $ 176,364 |
Summarized Financial Information of Partnership's Equity Method Investments | The summarized financial information of the Partnership’s equity method investments for December 31, 2017 are as follows: December 31, 2017 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 50,339,913 $ 67,780,737 $ 21,639,763 $ 22,593,717 $ 363 $ 162,354,493 Other Assets 2,283,602 3,077,573 1,969,832 1,573,279 154,131 9,058,417 Total Assets $ 52,623,515 $ 70,858,310 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Liabilities and Partners’ Capital Debt $ 6,779,634 $ 6,329,068 $ 53,787 $ 4,896,346 $ — $ 18,058,835 Other Liabilities 430,763 1,618,408 1,150,307 420,988 39,923 3,660,389 Total Liabilities 7,210,397 7,947,476 1,204,094 5,317,334 39,923 21,719,224 Partners’ Capital 45,413,118 62,910,834 22,405,501 18,849,662 114,571 149,693,686 Total Liabilities and Partners’ Capital $ 52,623,515 $ 70,858,310 $ 23,609,595 $ 24,166,996 $ 154,494 $ 171,412,910 Statement of Operations Interest Income $ 362,788 $ 485,751 $ 2,942 $ 928,670 $ — $ 1,780,151 Other Income 45,770 1,334,544 91,006 178,281 107,204 1,756,805 Interest Expense (121,876 ) (180,258 ) (2,086 ) (127,153 ) — (431,373 ) Other Expenses (568,369 ) (703,165 ) (435,974 ) (258,157 ) (57,830 ) (2,023,495 ) Net Realized and Unrealized Gain from Investments 7,892,937 12,223,852 1,054,516 584,366 — 21,755,671 Net Income $ 7,611,250 $ 13,160,724 $ 710,404 $ 1,306,007 $ 49,374 $ 22,837,759 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2016 are as follows: December 31, 2016 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 49,751,021 $ 62,370,093 $ 21,007,134 $ 17,804,292 $ 7,354 $ 150,939,894 Other Assets 2,815,042 4,384,031 2,434,590 1,478,119 173,917 11,285,699 Total Assets $ 52,566,063 $ 66,754,124 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Liabilities and Partners’ Capital Debt $ 3,715,079 $ 4,034,184 $ 73,915 $ 2,495,778 $ — $ 10,318,956 Other Liabilities 1,254,211 1,591,727 1,837,583 701,986 51,266 5,436,773 Total Liabilities 4,969,290 5,625,911 1,911,498 3,197,764 51,266 15,755,729 Partners’ Capital 47,596,773 61,128,213 21,530,226 16,084,647 130,005 146,469,864 Total Liabilities and Partners’ Capital $ 52,566,063 $ 66,754,124 $ 23,441,724 $ 19,282,411 $ 181,271 $ 162,225,593 Statement of Operations Interest Income $ 353,179 $ 445,166 $ 439 $ 849,508 $ — $ 1,648,292 Other Income 10,620 1,499,503 35,264 32,628 104,669 1,682,684 Interest Expense (82,370 ) (141,097 ) (1,410 ) (157,921 ) — (382,798 ) Other Expenses (473,790 ) (605,538 ) (150,964 ) (224,345 ) (56,407 ) (1,511,044 ) Net Realized and Unrealized Gain from Investments 4,870,332 5,368,361 226,368 1,186,038 515 11,651,614 Net Income $ 4,677,971 $ 6,566,395 $ 109,697 $ 1,685,908 $ 48,777 $ 13,088,748 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. The summarized financial information of the Partnership’s equity method investments for December 31, 2015 are as follows: December 31, 2015 and the Year Then Ended Private Real Hedge Fund Equity Estate Solutions Credit Other (a) Total Statement of Financial Condition Assets Investments $ 48,210,598 $ 61,971,919 $ 21,858,491 $ 16,136,543 $ 11,577 $ 148,189,128 Other Assets 1,041,591 6,210,557 1,927,535 1,174,601 53,825 10,408,109 Total Assets $ 49,252,189 $ 68,182,476 $ 23,786,026 $ 17,311,144 $ 65,402 $ 158,597,237 Liabilities and Partners’ Capital Debt $ 2,178,261 $ 5,562,806 $ 275,068 $ 2,086,670 $ — $ 10,102,805 Other Liabilities 1,315,572 1,573,370 1,462,072 956,305 52,269 5,359,588 Total Liabilities 3,493,833 7,136,176 1,737,140 3,042,975 52,269 15,462,393 Partners’ Capital 45,758,356 61,046,300 22,048,886 14,268,169 13,133 143,134,844 Total Liabilities and Partners’ Capital $ 49,252,189 $ 68,182,476 $ 23,786,026 $ 17,311,144 $ 65,402 $ 158,597,237 Statement of Operations Interest Income $ 384,174 $ 361,249 $ 170 $ 533,591 $ — $ 1,279,184 Other Income 8,506 1,313,956 35,112 49,042 84,975 1,491,591 Interest Expense (33,416 ) (91,985 ) (3,228 ) (61,971 ) — (190,600 ) Other Expenses (278,911 ) (355,617 ) (125,393 ) (167,385 ) (45,203 ) (972,509 ) Net Realized and Unrealized Gain from Investments 3,272,934 3,740,127 449,930 (954,692 ) 17,778 6,526,077 Net Income $ 3,353,287 $ 4,967,730 $ 356,591 $ (601,415 ) $ 57,550 $ 8,133,743 (a) Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone’s segments. |
Realized and Net Change in Unrealized Gains (Losses) on Investments | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Year Ended December 31, 2017 2016 2015 Realized Gains (Losses) $ 4,378 $ (20,263 ) $ (15,525 ) Net Change in Unrealized Gains (Losses) 50,222 19,671 (35,709 ) $ 54,600 $ (592 ) $ (51,234 ) |
Performance Fees Allocated to Funds | Performance Fees allocated to the general partner in respect of performance of certain carry funds, funds of hedge funds and credit-focused funds were as follows: Private Equity Real Estate Hedge Fund Solutions Credit Total Performance Fees, December 31, 2016 $ 1,984,450 $ 2,970,448 $ 6,132 $ 359,964 $ 5,320,994 Performance Fees Allocated as a Result of Changes in Fund Fair Values 1,143,974 1,980,830 54,986 225,774 3,405,564 Foreign Exchange Gain — 65,029 — — 65,029 Fund Distributions (1,211,453 ) (2,157,000 ) (47,316 ) (47,538 ) (3,463,307 ) Performance Fees, December 31, 2017 $ 1,916,971 $ 2,859,307 $ 13,802 $ 538,200 $ 5,328,280 |
Realized and Net Change in Unrealized Gains (Losses), Other Investments | The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in other investments: Year Ended December 31, 2017 2016 2015 Realized Gains $ 4,886 $ 2,495 $ 80 Net Change in Unrealized Gains (Losses) 14,324 11,128 (4,079 ) $ 19,210 $ 13,623 $ (3,999 ) |
NET ASSET VALUE AS FAIR VALUE (
NET ASSET VALUE AS FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments | A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of December 31, 2017 is presented below: Strategy Fair Value Unfunded Commitments Redemption Frequency (if currently eligible) Redemption Notice Period Diversified Instruments $ 268,470 $ 135 (a ) (a ) Credit Driven 135,450 268 (b ) (b ) Equity 59,565 — (c ) (c ) Commodities 1,975 — (d ) (d ) $ 465,460 $ 403 (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 52% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 48% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
DERIVATIVE FINANCIAL INSTRUME35
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments | The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. December 31, 2017 December 31, 2016 Assets Liabilities Assets Liabilities Notional Fair Value Notional Fair Value Notional Fair Value Notional Fair Value Net Investment Hedges Foreign Currency Contracts $ — $ — $ 50,857 $ 453 $ — $ — $ 51,267 $ 587 Freestanding Derivatives Blackstone Interest Rate Contracts 225,550 2,042 1,530,751 27,275 2,651,583 2,356 546,211 2,355 Foreign Currency Contracts 279,050 2,097 296,252 2,975 164,247 1,037 127,444 966 Credit Default Swaps 2,073 304 2,073 304 — — 3,819 215 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 493,181 24,087 264,693 5,628 254,162 25,050 136,025 3,903 Credit Default Swaps 45,670 3,731 45,582 5,163 — — 113,057 3,350 Total Return Swaps 25,645 526 — — — — — — 1,071,169 32,787 2,139,351 41,345 3,069,992 28,443 926,556 10,789 $ 1,071,169 $ 32,787 $ 2,190,208 $ 41,798 $ 3,069,992 $ 28,443 $ 977,823 $ 11,376 |
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations | The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments: Year Ended December 31, 2017 2016 2015 Net Investment Hedges — Foreign Currency Contracts Hedge Ineffectiveness $ (75 ) $ (108 ) $ 283 Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ (2,400 ) $ (1,600 ) $ (8,716 ) Foreign Currency Contracts (6,333 ) (5,079 ) 12,828 Credit Default Swaps (3,764 ) (5,141 ) 2,336 Total Return Swaps 295 — — Equity Options (417 ) — — $ (12,619 ) $ (11,820 ) $ 6,448 Net Change in Unrealized Gains (Losses) Interest Rate Contracts $ (24,629 ) $ 1,253 $ 3,933 Foreign Currency Contracts (3,556 ) 25,839 (7,930 ) Credit Default Swaps 4,881 (3,027 ) (7,518 ) Total Return Swaps (447 ) — — Equity Options 129 — — $ (23,622 ) $ 24,065 $ (11,515 ) |
FAIR VALUE OPTION (Tables)
FAIR VALUE OPTION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Financial Instruments for Which Fair Value Option Has Been Elected | The following table summarizes the financial instruments for which the fair value option has been elected: December 31, 2017 2016 Assets Loans and Receivables $ 239,659 $ 211,359 Equity and Preferred Securities 475,485 444,713 Debt Securities 418,061 — Assets of Consolidated CLO Vehicles Corporate Loans 10,825,759 4,762,071 Corporate Bonds 690,125 710,947 Other 458 — $ 12,649,547 $ 6,129,090 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 10,594,656 $ 5,125,804 Due to Affiliates 996 — Subordinated Notes Loans Payable 703,164 337,846 Due to Affiliates 40,390 7,748 $ 11,339,206 $ 5,471,398 |
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Year Ended December 31, 2017 2016 2015 Realized Net Change Realized Net Change Realized Net Change Assets Loans and Receivables $ (1,214 ) $ 6,590 $ (42 ) $ 3,375 $ — $ (4,793 ) Equity and Preferred Securities 4,611 22,326 (476 ) 16,033 (300 ) (17,269 ) Debt Securities 4,866 (3,390 ) (2,404 ) 426 — (426 ) Assets of Consolidated CLO Vehicles Corporate Loans (3,827 ) (6,603 ) (6,128 ) 66,601 (1,895 ) (36,502 ) Corporate Bonds 12,442 (36,219 ) 4,793 18,859 (551 ) 1,188 Other — 454 264 — 4,431 (3,589 ) $ 16,878 $ (16,842 ) $ (3,993 ) $ 105,294 $ 1,685 $ (61,391 ) Liabilities Liabilities of Consolidated CLO Vehicles Subordinated Notes $ — $ 81,460 $ (2,400 ) $ (69,103 ) $ — $ 57,119 |
Information for Financial Instruments on Which Fair Value Option was Elected | The following table presents information for those financial instruments for which the fair value option was elected: December 31, 2017 December 31, 2016 For Financial Assets For Financial Assets Excess Fair Excess Excess Fair Excess Loans and Receivables $ 1,207 $ — $ — $ (6,476 ) $ — $ — Debt Securities (372 ) — — — — — Assets of Consolidated CLO Vehicles Corporate Loans (13,495 ) 57,778 (19,633 ) 2,616 — — Corporate Bonds (21,455 ) — — 7,259 — — $ (34,115 ) $ 57,778 $ (19,633 ) $ 3,399 $ — $ — (a) Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
FAIR VALUE MEASUREMENTS OF FI37
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Assets and Liabilities at Fair Value | The following tables summarize the valuation of the Partnership’s financial assets and liabilities by the fair value hierarchy: December 31, 2017 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 853,680 $ — $ — $ — $ 853,680 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 130,339 130,339 Equity Securities 67,443 44,026 131,867 — 243,336 Partnership and LLC Interests — 2,549 331,448 — 333,997 Debt Instruments — 643,608 58,155 — 701,763 Freestanding Derivatives Foreign Currency Contracts — 101 — — 101 Credit Default Swaps — 3,731 — — 3,731 Total Return Swaps — 526 — — 526 Assets of Consolidated CLO Vehicles Corporate Loans — 10,318,316 507,443 — 10,825,759 Corporate Bonds — 690,125 — — 690,125 Freestanding Derivatives — Foreign Currency Contracts — 23,986 — — 23,986 Other — — 458 — 458 Total Investments of Consolidated Blackstone Funds 67,443 11,726,968 1,029,371 130,339 12,954,121 Corporate Treasury Investments Equity Securities 282,866 — — — 282,866 Debt Instruments — 1,943,654 24,249 — 1,967,903 Other — — — 315,274 315,274 Total Corporate Treasury Investments 282,866 1,943,654 24,249 315,274 2,566,043 Other Investments 193,072 14,162 95,393 19,847 322,474 Total Investments 543,381 13,684,784 1,149,013 465,460 15,842,638 Accounts Receivable — Loans and Receivables — — 239,659 — 239,659 Other Assets Freestanding Derivatives Interest Rate Contracts 575 1,467 — — 2,042 Foreign Currency Contracts — 2,097 — — 2,097 Credit Default Swaps — 304 — — 304 Total Other Assets 575 3,868 — — 4,443 $ 1,397,636 $ 13,688,652 $ 1,388,672 $ 465,460 $ 16,940,420 December 31, 2017 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 10,594,656 $ — $ 10,594,656 Subordinated Notes (b) — 703,164 — 703,164 Total Loans Payable — 11,297,820 — 11,297,820 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) — 996 — 996 Subordinated Notes (b) — 40,390 — 40,390 Total Due to Affiliates — 41,386 — 41,386 Securities Sold, Not Yet Purchased — 154,380 — 154,380 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 5,628 — 5,628 Credit Default Swaps — 5,163 — 5,163 Total Liabilities of Consolidated Blackstone Funds — 10,791 — 10,791 Freestanding Derivatives Interest Rate Contracts 415 26,860 — 27,275 Foreign Currency Contracts — 2,975 — 2,975 Credit Default Swaps — 304 — 304 Total Freestanding Derivatives 415 30,139 — 30,554 Net Investment Hedges — Foreign Currency Contracts — 453 — 453 Total Accounts Payable, Accrued Expenses and Other Liabilities 415 41,383 — 41,798 $ 415 $ 11,534,969 $ — $ 11,535,384 December 31, 2016 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents — Money Market Funds $ 443,442 $ — $ — $ — $ 443,442 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 148,993 148,993 Equity Securities 76,381 70,544 93,657 — 240,582 Partnership and LLC Interests — 29,430 337,230 — 366,660 Debt Instruments — 219,049 7,322 — 226,371 Freestanding Derivatives — Foreign Currency Contracts — 2,327 — — 2,327 Assets of Consolidated CLO Vehicles Corporate Loans — 4,514,407 247,664 — 4,762,071 Corporate Bonds — 710,947 — — 710,947 Freestanding Derivatives — Foreign Currency Contracts — 22,723 — — 22,723 Total Investments of Consolidated Blackstone Funds 76,381 5,569,427 685,873 148,993 6,480,674 Corporate Treasury Investments Equity Securities 281,505 — — — 281,505 Debt Instruments — 1,944,171 30,424 54,907 2,029,502 Other — — — 207,431 207,431 Total Corporate Treasury Investments 281,505 1,944,171 30,424 262,338 2,518,438 Other Investments 163,548 — 100,164 18,779 282,491 Total Investments 521,434 7,513,598 816,461 430,110 9,281,603 Accounts Receivable — Loans and Receivables — — 211,359 — 211,359 Other Assets Freestanding Derivatives Interest Rate Contracts 1,883 473 — — 2,356 Foreign Currency Contracts — 1,037 — — 1,037 Total Freestanding Derivatives 1,883 1,510 — — 3,393 Total Other Assets 1,883 1,510 — — 3,393 $ 966,759 $ 7,515,108 $ 1,027,820 $ 430,110 $ 9,939,797 December 31, 2016 Level I Level II Level III Total Liabilities Loans Payable — Liabilities of Consolidated CLO Vehicles (a) Senior Secured Notes (b) $ — $ 5,125,804 $ — $ 5,125,804 Subordinated Notes (b) — 337,846 — 337,846 Total Loans Payable — 5,463,650 — 5,463,650 Due to Affiliates — Liabilities of Consolidated CLO Vehicles (a) Subordinated Notes (b) — 7,748 — 7,748 Total Due to Affiliates — 7,748 — 7,748 Securities Sold, Not Yet Purchased — 215,398 — 215,398 Accounts Payable, Accrued Expenses and Other Liabilities Liabilities of Consolidated Blackstone Funds — Freestanding Derivatives (a) Foreign Currency Contracts — 3,903 — 3,903 Credit Default Swaps — 3,350 — 3,350 Total Liabilities of Consolidated Blackstone Funds — 7,253 — 7,253 Freestanding Derivatives Interest Rate Contracts 750 1,605 — 2,355 Foreign Currency Contracts — 966 — 966 Credit Default Swaps — 215 — 215 Total Freestanding Derivatives 750 2,786 — 3,536 Net Investment Hedges — Foreign Currency Contracts — 587 — 587 Total Accounts Payable, Accrued Expenses and Other Liabilities 750 10,626 — 11,376 $ 750 $ 5,697,422 $ — $ 5,698,172 (a) Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. (b) Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. |
Summary of Fair Value Transfers Between Level I and Level II | The following table summarizes the fair value transfers between Level I and Level II for positions that existed as of December 31, 2017 and 2016, respectively: Year Ended December 31, 2017 2016 Transfers from Level I into Level II (a) $ 938 $ 2,114 Transfers from Level II into Level I (b) $ — $ 39,974 (a) Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. (b) Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. |
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy | The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2017: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 91,753 Discounted Cash Flows Discount Rate 7.1% - 31.4% 12.6% Revenue CAGR 1.0% - 49.4% 7.1% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 16.0x 9.9x Exit Multiple - NOI 8.8x - 12.5x 10.5x Exit Multiple - P/E 9.5x - 17.0x 11.0x 862 Market Comparable Companies Book Value Multiple 0.8x - 0.9x 0.9x Exit Multiple - EBITDA 8.0x N/A 17,536 Other N/A N/A N/A 21,716 Transaction Price N/A N/A N/A Partnership and LLC Interests 293,744 Discounted Cash Flows Discount Rate 4.6% - 26.5% 9.8% Revenue CAGR -22.2% - 71.5% 8.4% Exit Capitalization Rate 3.1% - 10.0% 5.7% Exit Multiple - EBITDA 0.1x - 15.0x 8.6x Exit Multiple - NOI 12.5x N/A 530 Market Comparable Companies Book Value Multiple 1.0x N/A 22,346 Other N/A N/A N/A 758 Third Party Pricing N/A N/A N/A 14,070 Transaction Price N/A N/A N/A Debt Instruments 6,122 Discounted Cash Flows Discount Rate 6.6% - 18.4% 9.6% Revenue CAGR 7.7% N/A Exit Capitalization Rate 8.3% N/A Exit Multiple - NOI 12.0x N/A 50,136 Third Party Pricing N/A N/A N/A 1,897 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 8,277 Market Comparable Companies EBITDA Multiple 7.0x N/A 499,624 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 1,029,371 Corporate Treasury Investments $ 8,886 Discounted Cash Flows Discount Rate 5.1% - 6.3% 5.4% Default Rate 2.0% N/A Pre-payment 20% N/A Recovery Lag 12 Months N/A Recovery Rate 30.0% - 70.0% 68.1% Reinvestment Rate LIBOR + 400 bps N/A 15,363 Third Party Pricing N/A N/A N/A Loans and Receivables 239,659 Discounted Cash Flows Discount Rate 7.1% - 10.3% 8.8% Other Investments 65,821 Discounted Cash Flows Discount Rate 0.7% - 13.0% 2.2% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps - LIBOR + 401 LIBOR + 413 bps bps 29,572 Transaction Price N/A N/A N/A $ 1,388,672 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2016: Fair Value Valuation Techniques Unobservable Inputs Ranges Weighted Financial Assets Investments of Consolidated Blackstone Funds Equity Securities $ 58,826 Discounted Cash Flows Discount Rate 7.3% - 28.7% 12.7% Revenue CAGR -0.2% - 20.1% 6.3% Exit Capitalization Rate 5.0% - 11.4% 8.5% Exit Multiple - EBITDA 4.0x - 20.0x 10.0x Exit Multiple - P/E 10.5x - 17.0x 11.0x 2,032 Market Comparable Companies Book Value Multiple 0.9x N/A 22,843 Other N/A N/A N/A 9,956 Transaction Price N/A N/A N/A Partnership and LLC Interests 303,281 Discounted Cash Flows Discount Rate 3.4% - 27.6% 9.4% Revenue CAGR -27.1% - 47.3% 7.2% Exit Capitalization Rate 3.0% - 11.0% 6.0% Exit Multiple - EBITDA 3.9x - 18.3x 10.5x Exit Multiple - P/E 9.3x N/A 13,945 Market Comparable Companies Capitalization Rate 5.0% - 5.6% 5.2% 12,916 Other N/A N/A N/A 1,238 Third Party Pricing N/A N/A N/A 5,850 Transaction Price N/A N/A N/A Debt Instruments 5,002 Discounted Cash Flows Discount Rate 8.3% - 20.0% 12.9% Revenue CAGR 4.8% - 70.8% 33.8% Exit Capitalization Rate 4.7% - 8.3% 7.5% Exit Multiple - EBITDA 9.6x - 12.0x 11.0x 2,227 Third Party Pricing N/A N/A N/A 93 Transaction Price N/A N/A N/A Assets of Consolidated CLO Vehicles 13,723 Market Comparable Companies EBITDA Multiple 9.6x N/A 233,941 Third Party Pricing N/A N/A N/A Total Investments of Consolidated Blackstone Funds 685,873 Corporate Treasury Investments 9,783 Discounted Cash Flows Discount Rate 6.1% - 10.0% 7.1% Default Rate 1.0% - 2.0% 1.8% Pre-payment Rate 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 18.5% - 76.5% 66.4% Reinvestment Rate LIBOR + 350 bps - LIBOR + 400 bps LIBOR 20,641 Third Party Pricing N/A N/A N/A Loans and Receivables 211,359 Discounted Cash Flows Discount Rate 12.0% - 16.4% 13.3% Other Investments 78,619 Discounted Cash Flows Discount Rate 1.2% - 15.0% 3.1% Default Rate 2.0% N/A Pre-payment 20.0% N/A Recovery Lag 12 Months N/A Recovery Rate 70.0% N/A Reinvestment Rate LIBOR + 400 bps N/A 21,545 Transaction Price N/A N/A N/A $ 1,027,820 N/A Not applicable. CAGR Compound annual growth rate. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. NOI Net operating income. P/E Price-earnings ratio. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. |
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used | The following tables summarize the changes in financial assets and liabilities measured at fair value for which the Partnership has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. Level III Financial Assets at Fair Value Year Ended December 31, 2017 2016 Investments Loans and Receivables Other Total Investments Loans and Receivables Other Total Balance, Beginning of Period $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 $ 774,392 $ 261,994 $ 155,841 $ 1,192,227 Transfer In Due to Consolidation and Acquisition 34,651 — — 34,651 — — — — Transfer Out Due to Deconsolidation (38,629 ) — — (38,629 ) — — — — Transfer In to Level III (b) 59,473 — 27,127 86,600 84,472 — 19,691 104,163 Transfer Out of Level III (b) (168,986 ) — (22,111 ) (191,097 ) (97,841 ) — (33,162 ) (131,003 ) Purchases 869,817 856,042 25,335 1,751,194 373,522 546,060 24,158 943,740 Sales (473,178 ) (835,426 ) (54,039 ) (1,362,643 ) (485,254 ) (598,232 ) (31,251 ) (1,114,737 ) Settlements — (12,584 ) (1,573 ) (14,157 ) — (8,599 ) (512 ) (9,111 ) Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) 60,350 20,268 14,315 94,933 36,582 10,136 (4,177 ) 42,541 Balance, End of Period $ 1,029,371 $ 239,659 $ 119,642 $ 1,388,672 $ 685,873 $ 211,359 $ 130,588 $ 1,027,820 Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date $ 14,083 $ 21,482 $ (91 ) $ 35,474 $ (36,074 ) $ 10,178 $ 3,443 $ (22,453 ) (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
VARIABLE INTEREST ENTITIES (Tab
VARIABLE INTEREST ENTITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assets and Liabilities Related to Interest in Non-Consolidated VIEs and Maximum Exposure to Loss | The assets and liabilities recognized in the Partnership’s Consolidated Statements of Financial Condition related to the Partnership’s interest in these non-consolidated VIEs and the Partnership’s maximum exposure to loss relating to non-consolidated VIEs were as follows: December 31, 2017 2016 Investments $ 805,501 $ 644,546 Accounts Receivable 15,760 12,308 Due from Affiliates 81,465 35,099 Total VIE Assets 902,726 691,953 Due to Affiliates 179 577 Accounts Payable, Accrued Expenses and Other Liabilities — 38 Potential Clawback Obligation 98,331 81,936 Maximum Exposure to Loss $ 1,001,236 $ 774,504 |
REVERSE REPURCHASE AND REPURC39
REVERSE REPURCHASE AND REPURCHASE AGREEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged | The following tables provide information regarding the Partnership’s Repurchase Agreements obligation by type of collateral pledged: December 31, 2017 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements Asset-Backed Securities $ — $ 22,756 $ 96,084 $ — $ 118,840 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 118,840 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — December 31, 2016 Remaining Contractual Maturity of the Agreements Overnight and Up to 30 - 90 Greater than Total Repurchase Agreements U.S. Treasury and Agency Securities $ 7,034 $ — $ — $ — $ 7,034 Asset-Backed Securities — 12,805 30,796 24,689 68,290 $ 7,034 $ 12,805 $ 30,796 $ 24,689 $ 75,324 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. “Offsetting of Assets and Liabilities” $ 75,324 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. “Offsetting of Assets and Liabilities” $ — |
OTHER ASSETS AND ACCOUNTS PAY40
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Assets | Other Assets consists of the following: December 31, 2017 2016 Furniture, Equipment and Leasehold Improvements $ 345,875 $ 338,292 Less: Accumulated Depreciation (219,309 ) (211,508 ) Furniture, Equipment and Leasehold Improvements, Net 126,566 126,784 Prepaid Expenses 78,723 96,888 Other Assets 32,965 37,723 Freestanding Derivatives 4,443 3,393 $ 242,697 $ 264,788 |
OFFSETTING OF ASSETS AND LIAB41
OFFSETTING OF ASSETS AND LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Offsetting of Assets | The following tables present the offsetting of assets as of December 31, 2017: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 8,801 $ 3,279 $ — $ 5,522 The following tables present the offsetting of assets as of December 31, 2016: Gross and Net Financial Gross Amounts Not Offset in Financial Cash Collateral Net Assets Freestanding Derivatives $ 5,720 $ 1,064 $ 2,892 $ 1,764 Reverse Repurchase Agreements 118,495 117,775 — 720 $ 124,215 $ 118,839 $ 2,892 $ 2,484 |
Offsetting of Liabilities | The following tables present the offsetting of liabilities as of December 31, 2017: Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 453 $ — $ — $ 453 Freestanding Derivatives 36,234 3,279 32,405 550 Repurchase Agreements 118,840 118,840 — — $ 155,527 $ 122,119 $ 32,405 $ 1,003 The following tables present the offsetting of liabilities as of December 31, 2016: Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition Gross Amounts Not Offset in Financial Cash Collateral Net Liabilities Net Investment Hedges $ 587 $ — $ — $ 587 Freestanding Derivatives 6,886 1,064 5,638 184 Repurchase Agreements 75,324 72,195 3,129 — $ 82,797 $ 73,259 $ 8,767 $ 771 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Partnership's Credit Facilities | The Partnership’s credit facilities consist of the following: December 31, 2017 2016 Credit Borrowing Weighted Credit Borrowing Weighted Revolving Credit Facility (a) $ 1,500,000 $ 683 0.88 % $ 1,500,000 $ 683 0.88 % Blackstone Issued Senior Notes (b) 6.625%, Due 8/15/2019 (c) — — — 585,000 585,000 6.63 % 5.875%, Due 3/15/2021 400,000 400,000 5.88 % 400,000 400,000 5.88 % 4.750%, Due 2/15/2023 400,000 400,000 4.75 % 400,000 400,000 4.75 % 6.250%, Due 8/15/2042 250,000 250,000 6.25 % 250,000 250,000 6.25 % 5.000%, Due 6/15/2044 500,000 500,000 5.00 % 500,000 500,000 5.00 % 4.450%, Due 7/15/2045 350,000 350,000 4.45 % 350,000 350,000 4.45 % 2.000%, Due 5/19/2025 360,150 360,150 2.00 % 315,510 315,510 2.00 % 1.000%, Due 10/5/2026 720,300 720,300 1.00 % 631,020 631,020 1.00 % 3.150%, Due 10/2/2027 300,000 300,000 3.15 % — — — 4.000%, Due 10/2/2047 300,000 300,000 4.00 % — — — 5,080,450 3,581,133 3.76 % 4,931,530 3,432,213 4.37 % Blackstone Fund Facilities (d) 2,803 2,803 2.79 % 2,793 2,793 2.32 % CLO Vehicles (e) 11,583,607 11,583,607 2.32 % 5,506,976 5,506,976 2.02 % $ 16,666,860 $ 15,167,543 2.54 % $ 10,441,299 $ 8,941,982 2.92 % (a) Blackstone Holdings Finance Co. L.L.C. (the “Issuer”), an indirect subsidiary of the Partnership, has a revolving credit facility (the “Credit Facility”) with Citibank, N.A., as Administrative Agent in the amount of $1.5 billion with a maturity date of August 31, 2021. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, in each case subject to certain sub-limits. fee-earning (b) The Issuer, has issued long term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the “Guarantors”), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer’s and the Guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer’s option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. (c) The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. The entire amount of these bonds were retired in 2017. (d) Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. (e) Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. |
Carrying Value and Fair Value of Blackstone Issued Notes | The following table presents the general characteristics of each of our Notes, as well as their carrying value and fair value. The Notes are included in Loans Payable within the Consolidated Statements of Financial Condition. All of the Notes were issued at a discount. All of the Notes accrue interest from the Issue Date and all pay interest in arrears on a semi-annual December 31, 2017 2016 Senior Notes Carrying Value Fair Value (a) Carrying Fair Value (a) 6.625%, Due 8/15/2019 (c) $ — $ — $ 607,121 $ 648,765 5.875%, Due 3/15/2021 398,514 438,320 398,105 447,600 4.750%, Due 2/15/2023 394,137 434,200 393,158 426,520 6.250%, Due 8/15/2042 238,019 328,200 237,830 285,450 5.000%, Due 6/15/2044 488,536 574,100 488,337 497,200 4.450%, Due 7/15/2045 343,925 372,575 343,816 322,525 2.000%, Due 5/19/2025 355,425 385,433 310,805 331,096 1.000%, Due 10/5/2026 709,871 711,440 620,750 598,270 3.150%, Due 10/2/2027 296,399 295,320 — — 4.000%, Due 10/2/2047 289,989 296,940 — — Total $ 3,514,815 $ 3,836,528 $ 3,399,922 $ 3,557,426 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. (b) The carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct deduction from the related liability for all periods presented in accordance with amended guidance on simplifying the presentation of such costs. (c) The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. |
Partnership's Borrowings Through Consolidated CLO Vehicles | Borrowings through the consolidated CLO vehicles consisted of the following: December 31, 2017 2016 Borrowing Weighted Weighted Borrowing Weighted Weighted Senior Secured Notes $ 10,689,240 2.35 % 4.1 $ 5,124,241 2.17 % 5.4 Subordinated Notes 894,367 (a ) N/A 382,735 (a ) N/A $ 11,583,607 $ 5,506,976 (a) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Components of Senior Secured Notes and Subordinated Notes | Senior Secured Notes and Subordinated Notes comprise the following amounts: December 31, 2017 2016 Amounts Due to Non- Amounts Due to Non- Fair Value Borrowing Fair Fair Value Borrowing Fair Value Senior Secured Notes $ 10,595,652 $ 1,000 $ 996 $ 5,125,804 $ — $ — Subordinated Notes 743,554 53,400 40,390 345,594 10,000 7,748 $ 11,339,206 $ 54,400 $ 41,386 $ 5,471,398 $ 10,000 $ 7,748 |
Scheduled Principal Payments for Borrowings | Scheduled principal payments for borrowings at December 31, 2017 are as follows: Operating Blackstone Fund Total Borrowings 2018 $ — $ 290,437 $ 290,437 2019 — — — 2020 — 540,225 540,225 2021 400,000 — 400,000 2022 — — — Thereafter 3,180,450 10,755,747 13,936,197 Total $ 3,580,450 $ 11,586,409 $ 15,166,859 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Before Provision for Taxes | The Income Before Provision for Taxes consists of the following: Year Ended December 31, 2017 2016 2015 Income Before Provision for Taxes U.S. Domestic Income $ 3,955,351 $ 2,215,380 $ 1,754,969 Foreign Income 161,750 166,630 59,779 $ 4,117,101 $ 2,382,010 $ 1,814,748 |
Provision (Benefit) for Income Taxes | The Provision for Taxes consists of the following: Year Ended December 31, 2017 2016 2015 Current Federal Income Tax $ 31,457 $ 32,383 $ 45,506 Foreign Income Tax 36,083 17,322 16,769 State and Local Income Tax 40,507 32,572 28,137 108,047 82,277 90,412 Deferred Federal Income Tax 613,518 42,042 80,307 Foreign Income Tax (34 ) 363 (398 ) State and Local Income Tax 21,616 7,680 20,077 635,100 50,085 99,986 Provision for Taxes $ 743,147 $ 132,362 $ 190,398 |
Summary of Blackstone's Tax Position | The following table summarizes Blackstone’s tax position: Year Ended December 31, 2017 2016 2015 Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 Provision for Taxes $ 743,147 $ 132,362 $ 190,398 Effective Income Tax Rate 18.1 % 5.6 % 10.5 % |
Reconciliations of Effective Income Tax Rate to Federal Statutory Tax Rate | The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate: Year Ended December 31, 2017 2016 2015 Statutory U.S. Federal Income Tax Rate 35.0 % 35.0 % 35.0 % Income Passed Through to Common Unitholders and Non-Controlling -25.8 % -28.6 % -26.3 % State and Local Income Taxes 1.5 % 1.3 % 1.8 % Equity-Based Compensation -0.1 % -0.2 % 1.8 % Impact of the Tax Reform Bill 8.3 % — — Other -0.8 % -1.9 % -1.8 % Effective Income Tax Rate 18.1 % 5.6 % 10.5 % (a) Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership’s unitholders and the non-controlling |
Summary of Tax Effects of Temporary Differences | reverse. A summary of the tax effects of the temporary differences is as follows: December 31, 2017 2016 Deferred Tax Assets Fund Management Fees $ 9,938 $ 10,235 Equity-Based Compensation 54,699 68,642 Amortization and Depreciation 754,924 1,297,669 Net Operating Loss Carry Forward 8,885 17,969 Total Deferred Tax Assets 828,446 1,394,515 Deferred Tax Liabilities Unrealized Gains from Investments 65,883 72,750 Other 36,593 35,296 Total Deferred Tax Liabilities 102,476 108,046 Net Deferred Tax Assets $ 725,970 $ 1,286,469 |
Blackstone's Unrecognized Tax Benefits Excluding Related Interest and Penalties | Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were: December 31, 2017 2016 2015 Unrecognized Tax Benefits — January 1 $ 3,581 $ 15,698 $ 19,836 Additions based on Tax Positions Related to Current Year — 902 1,031 Reductions for Tax Positions of Current Year — (851 ) — Additions for Tax Positions of Prior Years 11,167 — — Reductions for Tax Positions of Prior Years (1,860 ) (7,837 ) (4,032 ) Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations — (3,774 ) — Settlements (1,382 ) (357 ) — Exchange Rate Fluctuations (52 ) (200 ) (1,137 ) Unrecognized Tax Benefits — December 31 $ 11,454 $ 3,581 $ 15,698 |
NET INCOME PER COMMON UNIT (Tab
NET INCOME PER COMMON UNIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Basic and Diluted Net Income Per Common Unit | Basic and diluted net income per common unit for the years ended December 31, 2017, 2016 and 2015 was calculated as follows: Year Ended December 31, 2017 2016 2015 Net Income for Per Common Unit Calculations Net Income Attributable to The Blackstone Group L.P., Basic $ 1,470,830 $ 1,039,235 $ 709,789 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units — 828,244 524,353 Net Income Attributable to The Blackstone Group L.P., Diluted $ 1,470,830 $ 1,867,479 $ 1,234,142 Units Outstanding Weighted-Average Common Units Outstanding, Basic 665,453,198 649,475,264 634,337,179 Weighted-Average Unvested Deferred Restricted Common Units 793,648 1,445,277 2,993,398 Weighted-Average Blackstone Holdings Partnership Units — 544,194,049 550,754,834 Weighted-Average Common Units Outstanding, Diluted 666,246,846 1,195,114,590 1,188,085,411 Net Income Per Common Unit, Basic $ 2.21 $ 1.60 $ 1.12 Net Income Per Common Unit, Diluted $ 2.21 $ 1.56 $ 1.04 Distributions Declared Per Common Unit (a) $ 2.32 $ 1.66 $ 2.90 (a) Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Summary of Anti-Dilutive Securities | The following table summarizes the anti-dilutive securities for the periods indicated: Year Ended December 31, 2017 2016 2015 Weighted-Average Blackstone Holdings Partnership Units 533,982,613 — — |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Status of Partnership's Unvested Equity-Based Awards | A summary of the status of the Partnership’s unvested equity-based awards as of December 31, 2017 and of changes during the period January 1, 2017 through December 31, 2017 is presented below: Blackstone Holdings The Blackstone Group L.P. Equity Settled Awards Cash Settled Awards Unvested Units Partnership Weighted- Deferred Weighted- Phantom Weighted- Balance, December 31, 2016 34,568,726 $ 33.58 12,206,016 $ 24.65 40,460 $ 28.14 Granted 2,471,571 32.89 3,484,875 29.30 12,214 30.79 Vested (6,632,473 ) 28.94 (6,268,037 ) 20.32 (4,708 ) 30.73 Forfeited (384,635 ) 26.40 (402,880 ) 29.67 (3,770 ) 33.32 Balance, December 31, 2017 30,023,189 $ 35.26 9,019,974 $ 30.03 44,196 $ 31.85 |
Unvested Units, After Expected Forfeitures | The following unvested units, after expected forfeitures, as of December 31, 2017, are expected to vest: Units Weighted-Average Blackstone Holdings Partnership Units 25,832,787 3.8 Deferred Restricted Blackstone Common Units 7,926,153 1.9 Total Equity-Based Awards 33,758,940 3.4 Phantom Units 34,752 2.9 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Due from Affiliates and Due to Affiliates | Due from Affiliates and Due to Affiliates consisted of the following: December 31, 2017 2016 Due from Affiliates Advances Made on Behalf of Certain Non-Controlling $ 410,877 $ 342,943 Amounts Due from Portfolio Companies and Funds 587,955 456,469 Management and Performance Fees Due from Non-Consolidated 595,330 445,280 Payments Made on Behalf of Non-Consolidated 355,767 196,134 Investments Redeemed in Non-Consolidated 77,943 1,552 Accrual for Potential Clawback of Previously Distributed Carried Interest 1,112 — $ 2,028,984 $ 1,442,378 December 31, 2017 2016 Due to Affiliates Due to Certain Non-Controlling $ 715,734 $ 1,186,145 Distributions Received on Behalf of Certain Non-Controlling 87,829 28,012 Distributions Received on Behalf of Blackstone Entities 38,789 80,034 Payments Made by Non-Consolidated 51,249 19,833 Due to Note Holders of Consolidated CLO Vehicles 41,386 7,748 Accrual for Potential Repayment of Previously Received Performance Fees 2,171 — $ 937,158 $ 1,321,772 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases | leases of $8.9 million and $11.4 million, respectively. As of December 31, 2017, the aggregate minimum future payments, net of sublease income, required on the operating leases are as follows: 2018 $ 77,802 2019 72,441 2020 67,727 2021 77,615 2022 76,520 Thereafter 343,625 Total $ 715,730 |
Clawback Obligations by Segment | The following table presents the clawback obligations by segment: December 31, 2017 2016 Segment Blackstone Current and Total Blackstone Current and Total Credit $ 1,059 $ 1,112 $ 2,171 $ — $ — $ — |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Data of Segments | The following tables present the financial data for Blackstone’s four segments as of December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015. December 31, 2017 and the Year Then Ended Private Equity Real Estate Hedge Fund Solutions Credit Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 724,818 $ 872,191 $ 516,048 $ 567,334 $ 2,680,391 Transaction, Advisory and Other Fees, Net 57,624 82,781 2,980 13,431 156,816 Management Fee Offsets (18,007 ) (15,934 ) (93 ) (32,382 ) (66,416 ) Total Management and Advisory Fees, Net 764,435 939,038 518,935 548,383 2,770,791 Performance Fees Realized Carried Interest 1,157,188 2,124,472 — 158,293 3,439,953 Incentive Fees — 96,402 154,343 126,554 377,299 Unrealized Carried Interest (13,214 ) (146,476 ) 4,806 54,233 (100,651 ) Incentive Fees — 569 2,965 (12,011 ) (8,477 ) Total Performance Fees 1,143,974 2,074,967 162,114 327,069 3,708,124 Investment Income (Loss) Realized 154,837 255,903 9,074 16,380 436,194 Unrealized (51,417 ) (122,220 ) 41,012 1,419 (131,206 ) Total Investment Income 103,420 133,683 50,086 17,799 304,988 Interest and Dividend Revenue 32,838 58,084 21,525 30,473 142,920 Other (35,662 ) (51,425 ) (24,380 ) (28,584 ) (140,051 ) Total Revenues 2,009,005 3,154,347 728,280 895,140 6,786,772 Expenses Compensation and Benefits Compensation 362,674 427,211 176,782 236,449 1,203,116 Performance Fee Compensation Realized Carried Interest 404,544 743,011 — 79,006 1,226,561 Incentive Fees — 46,193 53,348 61,142 160,683 Unrealized Carried Interest 71,095 13,688 1,786 18,803 105,372 Incentive Fees — (31 ) 1,111 (5,366 ) (4,286 ) Total Compensation and Benefits 838,313 1,230,072 233,027 390,034 2,691,446 Interest Expense 51,129 71,341 31,618 38,750 192,838 Other Operating Expenses 120,997 136,042 68,265 99,562 424,866 Total Expenses 1,010,439 1,437,455 332,910 528,346 3,309,150 Economic Income $ 998,566 $ 1,716,892 $ 395,370 $ 366,794 $ 3,477,622 Segment Assets as of December 31, 2017 $ 6,369,491 $ 7,597,147 $ 2,107,502 $ 3,927,071 $ 20,001,211 December 31, 2016 and the Year Then Ended Private Equity Real Estate Hedge Fund Solutions Credit Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 555,593 $ 795,161 $ 521,736 $ 525,289 $ 2,397,779 Transaction, Advisory and Other Fees, Net 39,283 95,324 1,061 9,190 144,858 Management Fee Offsets (34,810 ) (7,322 ) — (37,512 ) (79,644 ) Total Management and Advisory Fees, Net 560,066 883,163 522,797 496,967 2,462,993 Performance Fees Realized Carried Interest 245,268 1,203,484 — 26,163 1,474,915 Incentive Fees — 29,625 42,177 100,299 172,101 Unrealized Carried Interest 425,691 (150,997 ) 504 206,043 481,241 Incentive Fees — 39,527 785 9,417 49,729 Total Performance Fees 670,959 1,121,639 43,466 341,922 2,177,986 Investment Income (Loss) Realized 73,377 122,712 (7,224 ) 11,004 199,869 Unrealized (4,593 ) (1,119 ) 15,462 10,671 20,421 Total Investment Income 68,784 121,593 8,238 21,675 220,290 Interest and Dividend Revenue 25,364 38,453 13,864 18,718 96,399 Other 20,458 16,523 8,157 9,574 54,712 Total Revenues 1,345,631 2,181,371 596,522 888,856 5,012,380 Expenses Compensation and Benefits Compensation 309,968 385,352 185,320 202,576 1,083,216 Performance Fee Compensation Realized Carried Interest 110,882 332,622 — 12,450 455,954 Incentive Fees — 12,085 19,397 46,614 78,096 Unrealized Carried Interest 163,937 44,775 181 103,945 312,838 Incentive Fees — 16,872 292 3,970 21,134 Total Compensation and Benefits 584,787 791,706 205,190 369,555 1,951,238 Interest Expense 49,126 49,849 24,524 24,523 148,022 Other Operating Expenses 130,685 137,581 75,870 87,700 431,836 Total Expenses 764,598 979,136 305,584 481,778 2,531,096 Economic Income $ 581,033 $ 1,202,235 $ 290,938 $ 407,078 $ 2,481,284 Segment Assets as of December 31, 2016 $ 6,493,236 $ 7,643,123 $ 2,160,688 $ 2,905,081 $ 19,202,128 Year Ended December 31, 2015 Private Equity Real Estate Hedge Fund Solutions Credit Financial Advisory Total Segments Segment Revenues Management and Advisory Fees, Net Base Management Fees $ 502,640 $ 668,575 $ 524,386 $ 500,982 $ — $ 2,196,583 Transaction, Advisory and Other Fees, Net 46,819 110,577 317 6,371 297,732 461,816 Management Fee Offsets (36,760 ) (26,840 ) 171 (30,065 ) — (93,494 ) Total Management and Advisory Fees, Net 512,699 752,312 524,874 477,288 297,732 2,564,905 Performance Fees Realized Carried Interest 1,474,987 1,634,733 — 96,156 — 3,205,876 Incentive Fees — 17,153 68,197 109,396 — 194,746 Unrealized Carried Interest (717,955 ) (680,542 ) 2,021 (198,820 ) — (1,595,296 ) Incentive Fees — 20,802 (8,084 ) (19,967 ) — (7,249 ) Total Performance Fees 757,032 992,146 62,134 (13,235 ) — 1,798,077 Investment Income (Loss) Realized 189,649 235,582 (12,741 ) 7,186 (868 ) 418,808 Unrealized (116,338 ) (231,889 ) (1,435 ) (16,258 ) (39 ) (365,959 ) Total Investment Income (Loss) 73,311 3,693 (14,176 ) (9,072 ) (907 ) 52,849 Interest and Dividend Revenue 22,685 33,501 11,194 18,268 10,013 95,661 Other 5,854 (1,422 ) 200 5,171 (1,303 ) 8,500 Total Revenues 1,371,581 1,780,230 584,226 478,420 305,535 4,519,992 Expenses Compensation and Benefits Compensation 280,248 358,381 179,484 190,189 180,917 1,189,219 Performance Fee Compensation Realized Carried Interest 256,922 484,037 — 52,841 — 793,800 Incentive Fees — 8,678 27,155 50,113 — 85,946 Unrealized Carried Interest (10,172 ) (196,347 ) 823 (107,000 ) — (312,696 ) Incentive Fees — 8,817 (2,912 ) (8,395 ) — (2,490 ) Total Compensation and Benefits 526,998 663,566 204,550 177,748 180,917 1,753,779 Interest Expense 45,068 42,562 21,049 21,207 9,956 139,842 Other Operating Expenses 142,985 125,513 63,468 66,879 49,730 448,575 Total Expenses 715,051 831,641 289,067 265,834 240,603 2,342,196 Economic Income $ 656,530 $ 948,589 $ 295,159 $ 212,586 $ 64,932 $ 2,177,796 |
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes | The following tables reconcile the Total Segments to Blackstone’s Income Before Provision for Taxes for the years ended December 31, 2017, 2016 and 2015 along with Total Assets as of December 31, 2017 and 2016: December 31, 2017 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 6,786,772 $ 332,281 (a) $ 7,119,053 Expenses $ 3,309,150 $ 418,254 (b) $ 3,727,404 Other Income $ — $ 725,452 (c) $ 725,452 Economic Income $ 3,477,622 $ 639,479 (d) $ 4,117,101 Total Assets $ 20,001,211 $ 14,520,187 (e) $ 34,521,398 December 31, 2016 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 5,012,380 $ 113,454 (a) $ 5,125,834 Expenses $ 2,531,096 $ 397,478 (b) $ 2,928,574 Other Income $ — $ 184,750 (c) $ 184,750 Economic Income $ 2,481,284 $ (99,274 )(d) $ 2,382,010 Total Assets $ 19,202,128 $ 7,201,209 (e) $ 26,403,337 Year Ended December 31, 2015 Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 4,519,992 $ 126,560 (a) $ 4,646,552 Expenses $ 2,342,196 $ 748,679 (b) $ 3,090,875 Other Income $ — $ 259,071 (c) $ 259,071 Economic Income $ 2,177,796 $ (363,048 )(d) $ 1,814,748 (a) The Revenues adjustment represents management and performance fees earned from Blackstone Funds that were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment (b) The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation. (c) The Other Income adjustment results from the following: Year Ended December 31, 2017 2016 2015 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (329,871 ) $ (65,849 ) $ (100,657 ) Fund Expenses Added in Consolidation 137,433 7,329 48,239 Income Associated with Non-Controlling 511,245 250,129 231,045 Transaction-Related Other Income (Loss) 406,645 (6,859 ) 80,444 Total Consolidation Adjustments and Reconciling Items $ 725,452 $ 184,750 $ 259,071 (d) The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2017 2016 2015 Economic Income $ 3,477,622 $ 2,481,284 $ 2,177,796 Adjustments Amortization of Intangibles (48,297 ) (84,466 ) (104,530 ) Transaction-Related Charges 176,531 (264,937 ) (489,563 ) Income Associated with Non-Controlling 511,245 250,129 231,045 Total Consolidation Adjustments and Reconciling Items 639,479 (99,274 ) (363,048 ) Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 (e) The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
Reconciliation of Total Assets | The following tables reconcile the Total Segments to Blackstone’s Income Before Provision for Taxes for the years ended December 31, 2017, 2016 and 2015 along with Total Assets as of December 31, 2017 and 2016: December 31, 2017 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 6,786,772 $ 332,281 (a) $ 7,119,053 Expenses $ 3,309,150 $ 418,254 (b) $ 3,727,404 Other Income $ — $ 725,452 (c) $ 725,452 Economic Income $ 3,477,622 $ 639,479 (d) $ 4,117,101 Total Assets $ 20,001,211 $ 14,427,699 (e) $ 34,428,910 December 31, 2016 and the Year Then Ended Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 5,012,380 $ 113,454 (a) $ 5,125,834 Expenses $ 2,531,096 $ 397,478 (b) $ 2,928,574 Other Income $ — $ 184,750 (c) $ 184,750 Economic Income $ 2,481,284 $ (99,274 )(d) $ 2,382,010 Total Assets $ 19,202,128 $ 7,201,209 (e) $ 26,403,337 Year Ended December 31, 2015 Total Segments Consolidation Adjustments and Reconciling Items Blackstone Consolidated Revenues $ 4,519,992 $ 126,560 (a) $ 4,646,552 Expenses $ 2,342,196 $ 748,679 (b) $ 3,090,875 Other Income $ — $ 259,071 (c) $ 259,071 Economic Income $ 2,177,796 $ (363,048 )(d) $ 1,814,748 (a) The Revenues adjustment represents management and performance fees earned from Blackstone Funds that were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment (b) The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation. (c) The Other Income adjustment results from the following: Year Ended December 31, 2017 2016 2015 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (329,871 ) $ (65,849 ) $ (100,657 ) Fund Expenses Added in Consolidation 137,433 7,329 48,239 Income Associated with Non-Controlling 511,245 250,129 231,045 Transaction-Related Other Income (Loss) 406,645 (6,859 ) 80,444 Total Consolidation Adjustments and Reconciling Items $ 725,452 $ 184,750 $ 259,071 (d) The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2017 2016 2015 Economic Income $ 3,477,622 $ 2,481,284 $ 2,177,796 Adjustments Amortization of Intangibles (48,297 ) (84,466 ) (104,530 ) Transaction-Related Charges 176,531 (264,937 ) (489,563 ) Income Associated with Non-Controlling 511,245 250,129 231,045 Total Consolidation Adjustments and Reconciling Items 639,479 (99,274 ) (363,048 ) Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 (e) The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
QUARTERLY FINANCIAL DATA (UNA49
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Data | Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 (a) Revenues $ 1,940,723 $ 1,549,355 $ 1,746,777 $ 1,882,198 Expenses 929,650 885,112 903,760 1,008,882 Other Income 66,132 110,054 63,448 485,818 Income Before Provision for Taxes $ 1,077,205 $ 774,297 $ 906,465 $ 1,359,134 Net Income $ 1,019,768 $ 744,689 $ 846,953 $ 762,544 Net Income Attributable to The Blackstone Group L.P. $ 461,825 $ 342,775 $ 384,642 $ 281,588 Net Income Per Common Unit Common Units, Basic $ 0.70 $ 0.52 $ 0.58 $ 0.42 Common Units, Diluted $ 0.69 $ 0.51 $ 0.56 $ 0.42 Distributions Declared (b) $ 0.47 $ 0.87 $ 0.54 $ 0.44 Three Months Ended March 31, 2016 (c) June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 932,354 $ 1,192,426 $ 1,431,685 $ 1,569,369 Expenses 617,710 712,603 773,777 824,484 Other Income 19,142 30,703 61,395 73,510 Income Before Provision for Taxes $ 333,786 $ 510,526 $ 719,303 $ 818,395 Net Income $ 324,640 $ 463,111 $ 691,589 $ 770,308 Net Income Attributable to The Blackstone Group L.P. $ 159,753 $ 198,626 $ 312,905 $ 367,951 Net Income Per Common Unit Common Units, Basic $ 0.23 $ 0.31 $ 0.48 $ 0.56 Common Units, Diluted $ 0.23 $ 0.30 $ 0.47 $ 0.55 Distributions Declared (b) $ 0.61 $ 0.28 $ 0.36 $ 0.41 (a) The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. “Income Taxes”. (b) Distributions declared reflects the calendar date of the declaration of each distribution. (c) Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding – Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. |
Organization - Additional Infor
Organization - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017SegmentPerson | Dec. 31, 2016Segment | |
Organization [Line Items] | ||
Number of business segments | Segment | 4 | 4 |
Number of Blackstone founders managing the Partnership | Person | 1 | |
Partnership Unit to Blackstone Common Unit ratio | 100.00% |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, useful life, years | 9 years 2 months 12 days |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, useful life, years | 3 years |
Minimum | Leasehold Improvements | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life, years | 10 years |
Minimum | Other Long Lived Assets | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life, years | 3 years |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Finite-lived intangible assets, useful life, years | 20 years |
Maximum | Leasehold Improvements | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life, years | 15 years |
Maximum | Other Long Lived Assets | |
Summary Of Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life, years | 7 years |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets - Additional Information (Detail) $ in Thousands | Oct. 16, 2017USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($)Segment |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 1,778,192 | $ 1,718,519 | |
Number of business segments | Segment | 4 | 4 | |
Expected amortization of intangibles, 2018 | $ 57,900 | ||
Expected amortization of intangibles, 2019 | 57,900 | ||
Expected amortization of intangibles, 2020 | 57,900 | ||
Expected amortization of intangibles, 2021 | 57,900 | ||
Expected amortization of intangibles, 2022 | $ 50,200 | ||
Intangible assets expected to amortize over a weighted-average period | 9 years 2 months 12 days | ||
Harvest Fund Advisors LLC | |||
Goodwill And Intangible Assets [Line Items] | |||
Increase of goodwill | $ 59,700 | ||
Increase in intangible assets, contractual rights to earn future fee income | $ 194,000 | ||
Private Equity Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 778,300 | $ 778,300 | |
Real Estate Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | 421,700 | 421,700 | |
Hedge Fund Solutions | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | 172,100 | 172,100 | |
Credit Segment | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill, carrying value | $ 406,100 | $ 346,400 |
Intangible Assets, Net (Detail)
Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets / Contractual Rights | $ 1,594,876 | $ 1,400,876 | ||
Accumulated Amortization | (1,185,048) | (1,138,272) | ||
Intangible Assets, Net | $ 409,828 | $ 262,604 | $ 345,547 | $ 458,833 |
Changes in Partnership's Intang
Changes in Partnership's Intangible Assets, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Balance, Beginning of Year | $ 262,604 | $ 345,547 | $ 458,833 |
Amortization Expense | (46,776) | (82,943) | (101,437) |
Acquisitions | 194,000 | ||
Intangibles Transferred to PJT Partners Inc. at Spin-Off | (11,849) | ||
Balance, End of Year | $ 409,828 | $ 262,604 | $ 345,547 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Investments [Line Items] | ||
Investments | $ 24,434,049 | $ 17,694,975 |
Performance Fees | ||
Schedule of Investments [Line Items] | ||
Investments | 5,328,280 | 5,320,994 |
Other Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 322,474 | 282,491 |
Equity Method Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 3,263,131 | 3,092,378 |
Consolidated Blackstone Funds | ||
Schedule of Investments [Line Items] | ||
Investments | 12,954,121 | 6,480,674 |
Corporate Treasury Investments | ||
Schedule of Investments [Line Items] | ||
Investments | $ 2,566,043 | $ 2,518,438 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment [Line Items] | |||
Investments | $ 24,434,049 | $ 17,694,975 | |
Recognized net gains related to equity method investments | $ 609,500 | 214,400 | $ 82,200 |
Patria Investments Limited and Patria Investimentos Ltda. | |||
Investment [Line Items] | |||
Equity method investment, percentage | 40.00% | ||
Consolidated Blackstone Funds | |||
Investment [Line Items] | |||
Investments | $ 12,954,121 | 6,480,674 | |
Consolidated Blackstone Funds | Blackstone | |||
Investment [Line Items] | |||
Investments | $ 488,400 | $ 384,400 |
Reconciliation of Realized and
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Realized Gains | $ 635,769 | $ 278,737 | $ 555,171 |
Net Change in Unrealized Losses | 42,605 | 77,314 | (350,529) |
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | 678,374 | 356,051 | 204,642 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 139,696 | 95,724 | 94,957 |
Other Income - Net Gains from Fund Investment Activities | 321,597 | 184,750 | 176,364 |
Consolidated Blackstone Funds | |||
Gain (Loss) on Investments [Line Items] | |||
Realized Gains | 165,106 | 123,524 | 223,078 |
Net Change in Unrealized Losses | (21,016) | (61,045) | (161,398) |
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | 144,090 | 62,479 | 61,680 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 177,507 | 122,271 | 114,684 |
Other Income - Net Gains from Fund Investment Activities | $ 321,597 | $ 184,750 | $ 176,364 |
Summarized Financial Informatio
Summarized Financial Information of Partnership's Equity Method Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | $ 162,354,493 | $ 150,939,894 | $ 148,189,128 | |
Other Assets | 9,058,417 | 11,285,699 | 10,408,109 | |
Total Assets | 171,412,910 | 162,225,593 | 158,597,237 | |
Debt | 18,058,835 | 10,318,956 | 10,102,805 | |
Other Liabilities | 3,660,389 | 5,436,773 | 5,359,588 | |
Total Liabilities | 21,719,224 | 15,755,729 | 15,462,393 | |
Partners' Capital | 149,693,686 | 146,469,864 | 143,134,844 | |
Total Liabilities and Partners' Capital | 171,412,910 | 162,225,593 | 158,597,237 | |
Interest Income | 1,780,151 | 1,648,292 | 1,279,184 | |
Other Income | 1,756,805 | 1,682,684 | 1,491,591 | |
Interest Expense | (431,373) | (382,798) | (190,600) | |
Other Expenses | (2,023,495) | (1,511,044) | (972,509) | |
Net Realized and Unrealized Gain from Investments | 21,755,671 | 11,651,614 | 6,526,077 | |
Net Income | 22,837,759 | 13,088,748 | 8,133,743 | |
Private Equity | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 50,339,913 | 49,751,021 | 48,210,598 | |
Other Assets | 2,283,602 | 2,815,042 | 1,041,591 | |
Total Assets | 52,623,515 | 52,566,063 | 49,252,189 | |
Debt | 6,779,634 | 3,715,079 | 2,178,261 | |
Other Liabilities | 430,763 | 1,254,211 | 1,315,572 | |
Total Liabilities | 7,210,397 | 4,969,290 | 3,493,833 | |
Partners' Capital | 45,413,118 | 47,596,773 | 45,758,356 | |
Total Liabilities and Partners' Capital | 52,623,515 | 52,566,063 | 49,252,189 | |
Interest Income | 362,788 | 353,179 | 384,174 | |
Other Income | 45,770 | 10,620 | 8,506 | |
Interest Expense | (121,876) | (82,370) | (33,416) | |
Other Expenses | (568,369) | (473,790) | (278,911) | |
Net Realized and Unrealized Gain from Investments | 7,892,937 | 4,870,332 | 3,272,934 | |
Net Income | 7,611,250 | 4,677,971 | 3,353,287 | |
Real Estate | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 67,780,737 | 62,370,093 | 61,971,919 | |
Other Assets | 3,077,573 | 4,384,031 | 6,210,557 | |
Total Assets | 70,858,310 | 66,754,124 | 68,182,476 | |
Debt | 6,329,068 | 4,034,184 | 5,562,806 | |
Other Liabilities | 1,618,408 | 1,591,727 | 1,573,370 | |
Total Liabilities | 7,947,476 | 5,625,911 | 7,136,176 | |
Partners' Capital | 62,910,834 | 61,128,213 | 61,046,300 | |
Total Liabilities and Partners' Capital | 70,858,310 | 66,754,124 | 68,182,476 | |
Interest Income | 485,751 | 445,166 | 361,249 | |
Other Income | 1,334,544 | 1,499,503 | 1,313,956 | |
Interest Expense | (180,258) | (141,097) | (91,985) | |
Other Expenses | (703,165) | (605,538) | (355,617) | |
Net Realized and Unrealized Gain from Investments | 12,223,852 | 5,368,361 | 3,740,127 | |
Net Income | 13,160,724 | 6,566,395 | 4,967,730 | |
Hedge Fund Solutions | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 21,639,763 | 21,007,134 | 21,858,491 | |
Other Assets | 1,969,832 | 2,434,590 | 1,927,535 | |
Total Assets | 23,609,595 | 23,441,724 | 23,786,026 | |
Debt | 53,787 | 73,915 | 275,068 | |
Other Liabilities | 1,150,307 | 1,837,583 | 1,462,072 | |
Total Liabilities | 1,204,094 | 1,911,498 | 1,737,140 | |
Partners' Capital | 22,405,501 | 21,530,226 | 22,048,886 | |
Total Liabilities and Partners' Capital | 23,609,595 | 23,441,724 | 23,786,026 | |
Interest Income | 2,942 | 439 | 170 | |
Other Income | 91,006 | 35,264 | 35,112 | |
Interest Expense | (2,086) | (1,410) | (3,228) | |
Other Expenses | (435,974) | (150,964) | (125,393) | |
Net Realized and Unrealized Gain from Investments | 1,054,516 | 226,368 | 449,930 | |
Net Income | 710,404 | 109,697 | 356,591 | |
Credit | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | 22,593,717 | 17,804,292 | 16,136,543 | |
Other Assets | 1,573,279 | 1,478,119 | 1,174,601 | |
Total Assets | 24,166,996 | 19,282,411 | 17,311,144 | |
Debt | 4,896,346 | 2,495,778 | 2,086,670 | |
Other Liabilities | 420,988 | 701,986 | 956,305 | |
Total Liabilities | 5,317,334 | 3,197,764 | 3,042,975 | |
Partners' Capital | 18,849,662 | 16,084,647 | 14,268,169 | |
Total Liabilities and Partners' Capital | 24,166,996 | 19,282,411 | 17,311,144 | |
Interest Income | 928,670 | 849,508 | 533,591 | |
Other Income | 178,281 | 32,628 | 49,042 | |
Interest Expense | (127,153) | (157,921) | (61,971) | |
Other Expenses | (258,157) | (224,345) | (167,385) | |
Net Realized and Unrealized Gain from Investments | 584,366 | 1,186,038 | (954,692) | |
Net Income | 1,306,007 | 1,685,908 | (601,415) | |
Other | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Investments | [1] | 363 | 7,354 | 11,577 |
Other Assets | [1] | 154,131 | 173,917 | 53,825 |
Total Assets | [1] | 154,494 | 181,271 | 65,402 |
Other Liabilities | [1] | 39,923 | 51,266 | 52,269 |
Total Liabilities | [1] | 39,923 | 51,266 | 52,269 |
Partners' Capital | [1] | 114,571 | 130,005 | 13,133 |
Total Liabilities and Partners' Capital | [1] | 154,494 | 181,271 | 65,402 |
Other Income | [1] | 107,204 | 104,669 | 84,975 |
Other Expenses | [1] | (57,830) | (56,407) | (45,203) |
Net Realized and Unrealized Gain from Investments | [1] | 515 | 17,778 | |
Net Income | [1] | $ 49,374 | $ 48,777 | $ 57,550 |
[1] | Other represents the summarized financial information of equity method investments whose results, for segment reporting purposes, have been allocated across more than one of Blackstone's segments. |
Realized and Net Change in Unre
Realized and Net Change in Unrealized Gains (Losses) on Investments Held by Blackstone's Treasury Cash Management Strategies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Realized Gains (Losses) | $ 635,769 | $ 278,737 | $ 555,171 |
Net Change in Unrealized Gains (Losses) | 42,605 | 77,314 | (350,529) |
Total realized and net change in unrealized gains (losses) | 678,374 | 356,051 | 204,642 |
Corporate Treasury Investments | |||
Gain (Loss) on Investments [Line Items] | |||
Realized Gains (Losses) | 4,378 | (20,263) | (15,525) |
Net Change in Unrealized Gains (Losses) | 50,222 | 19,671 | (35,709) |
Total realized and net change in unrealized gains (losses) | $ 54,600 | $ (592) | $ (51,234) |
Performance Fees Allocated to F
Performance Fees Allocated to Funds (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | $ 17,694,975 |
Ending Balance | 24,434,049 |
Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 5,320,994 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 3,405,564 |
Foreign Exchange Gain | 65,029 |
Fund Distributions | (3,463,307) |
Ending Balance | 5,328,280 |
Private Equity Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 1,984,450 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 1,143,974 |
Fund Distributions | (1,211,453) |
Ending Balance | 1,916,971 |
Real Estate Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 2,970,448 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 1,980,830 |
Foreign Exchange Gain | 65,029 |
Fund Distributions | (2,157,000) |
Ending Balance | 2,859,307 |
Hedge Fund Solutions Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 6,132 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 54,986 |
Fund Distributions | (47,316) |
Ending Balance | 13,802 |
Credit Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 359,964 |
Performance Fees Allocated as a Result of Changes in Fund Fair Values | 225,774 |
Fund Distributions | (47,538) |
Ending Balance | $ 538,200 |
Realized and Net Change in Un61
Realized and Net Change in Unrealized Gains (Losses) on Investments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Realized Gains | $ 635,769 | $ 278,737 | $ 555,171 |
Net Change in Unrealized Gains (Losses) | 42,605 | 77,314 | (350,529) |
Total realized and net change in unrealized gains (losses) on other investments | 678,374 | 356,051 | 204,642 |
Other Investments | |||
Gain (Loss) on Investments [Line Items] | |||
Realized Gains | 4,886 | 2,495 | 80 |
Net Change in Unrealized Gains (Losses) | 14,324 | 11,128 | (4,079) |
Total realized and net change in unrealized gains (losses) on other investments | $ 19,210 | $ 13,623 | $ (3,999) |
Summary of Fair Value by Strate
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Detail) $ in Thousands | Dec. 31, 2017USD ($) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 465,460 | |
Unfunded Commitments | 403 | |
Diversified Instruments | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 268,470 | [1] |
Unfunded Commitments | 135 | [1] |
Credit Driven | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 135,450 | [2] |
Unfunded Commitments | 268 | [2] |
Equity | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | 59,565 | [3] |
Commodities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Fair Value | $ 1,975 | [4] |
[1] | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 3% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 97% of investments in this category are redeemable as of the reporting date. | |
[2] | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 52% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 48% of investments in this category are redeemable as of the reporting date. | |
[3] | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. | |
[4] | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
Summary of Fair Value by Stra63
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Parenthetical) (Detail) | Dec. 31, 2017 |
Diversified Instruments | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 3.00% |
Percentage of investments side pocketed as of reporting date | 97.00% |
Credit Driven | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 52.00% |
Percentage of investments redeemable as of reporting date | 48.00% |
Equity | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Commodities | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Derivative Financial Instrume64
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | $ 80,366 | $ (22,194) | $ (49,238) |
Net Investment Hedges | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Other Comprehensive Income (Loss), Net of Tax - Currency Translation Adjustment | $ 7,100 |
Summary of Aggregate Notional A
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | $ 1,071,169 | $ 3,069,992 |
Derivative Liabilities, Notional | 2,190,208 | 977,823 |
Derivative Assets, Fair Value | 32,787 | 28,443 |
Derivative Liabilities, Fair Value | 41,798 | 11,376 |
Net Investment Hedges | Foreign Currency Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Notional | 50,857 | 51,267 |
Derivative Liabilities, Fair Value | 453 | 587 |
Freestanding Derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 1,071,169 | 3,069,992 |
Derivative Liabilities, Notional | 2,139,351 | 926,556 |
Derivative Assets, Fair Value | 32,787 | 28,443 |
Derivative Liabilities, Fair Value | 41,345 | 10,789 |
Freestanding Derivatives | Blackstone | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 2,073 | |
Derivative Liabilities, Notional | 2,073 | 3,819 |
Derivative Assets, Fair Value | 304 | |
Derivative Liabilities, Fair Value | 304 | 215 |
Freestanding Derivatives | Consolidated Blackstone Funds | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 45,670 | |
Derivative Liabilities, Notional | 45,582 | 113,057 |
Derivative Assets, Fair Value | 3,731 | |
Derivative Liabilities, Fair Value | 5,163 | 3,350 |
Freestanding Derivatives | Consolidated Blackstone Funds | Total Return Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 25,645 | |
Derivative Assets, Fair Value | 526 | |
Freestanding Derivatives | Foreign Currency Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 279,050 | 164,247 |
Derivative Liabilities, Notional | 296,252 | 127,444 |
Derivative Assets, Fair Value | 2,097 | 1,037 |
Derivative Liabilities, Fair Value | 2,975 | 966 |
Freestanding Derivatives | Foreign Currency Contracts | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 493,181 | 254,162 |
Derivative Liabilities, Notional | 264,693 | 136,025 |
Derivative Assets, Fair Value | 24,087 | 25,050 |
Derivative Liabilities, Fair Value | 5,628 | 3,903 |
Freestanding Derivatives | Interest Rate Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 225,550 | 2,651,583 |
Derivative Liabilities, Notional | 1,530,751 | 546,211 |
Derivative Assets, Fair Value | 2,042 | 2,356 |
Derivative Liabilities, Fair Value | $ 27,275 | $ 2,355 |
Summary of Impact of Derivative
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Hedges | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | $ (75) | $ (108) | $ 283 |
Freestanding Derivatives | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (12,619) | (11,820) | 6,448 |
Net Change in Unrealized Gain (Loss) | (23,622) | 24,065 | (11,515) |
Freestanding Derivatives | Total Return Swaps | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | 295 | ||
Net Change in Unrealized Gain (Loss) | (447) | ||
Freestanding Derivatives | Credit Default Swap | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (3,764) | (5,141) | 2,336 |
Net Change in Unrealized Gain (Loss) | 4,881 | (3,027) | (7,518) |
Freestanding Derivatives | Equity Options | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (417) | ||
Net Change in Unrealized Gain (Loss) | 129 | ||
Freestanding Derivatives | Foreign Currency Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (6,333) | (5,079) | 12,828 |
Net Change in Unrealized Gain (Loss) | (3,556) | 25,839 | (7,930) |
Freestanding Derivatives | Interest Rate Contracts | |||
Derivative [Line Items] | |||
Realized Gains (Losses) | (2,400) | (1,600) | (8,716) |
Net Change in Unrealized Gain (Loss) | $ (24,629) | $ 1,253 | $ 3,933 |
Summary of Financial Instrument
Summary of Financial Instruments for Which Fair Value Option Has Been Elected (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Loans and Receivables | $ 239,659 | $ 211,359 |
Assets | 12,649,547 | 6,129,090 |
Liabilities | 11,339,206 | 5,471,398 |
Debt Securities | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Investments | 418,061 | |
Other | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Investments | 458 | |
Equity and Preferred Securities | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Investments | 475,485 | 444,713 |
Corporate Loans | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Investments | 10,825,759 | 4,762,071 |
Corporate Bonds | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Investments | 690,125 | 710,947 |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Fair value of Loan payable | 10,594,656 | 5,125,804 |
Fair value of due to Affiliates | 996 | |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Fair value of Loan payable | 703,164 | 337,846 |
Fair value of due to Affiliates | $ 40,390 | $ 7,748 |
Realized and Net Change in Un68
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Realized Gains (Losses) | Loans and Receivables | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | $ (1,214) | $ (42) | |
Realized Gains (Losses) | Debt Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 4,866 | (2,404) | |
Realized Gains (Losses) | Assets | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 16,878 | (3,993) | $ 1,685 |
Realized Gains (Losses) | Equity and Preferred Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 4,611 | (476) | (300) |
Realized Gains (Losses) | Corporate Loans | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (3,827) | (6,128) | (1,895) |
Realized Gains (Losses) | Corporate Bonds | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 12,442 | 4,793 | (551) |
Realized Gains (Losses) | Subordinated Notes | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (2,400) | ||
Realized Gains (Losses) | Other | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 264 | 4,431 | |
Net Change In Unrealized Gains (Losses) | Loans and Receivables | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 6,590 | 3,375 | (4,793) |
Net Change In Unrealized Gains (Losses) | Debt Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (3,390) | 426 | (426) |
Net Change In Unrealized Gains (Losses) | Assets | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (16,842) | 105,294 | (61,391) |
Net Change In Unrealized Gains (Losses) | Equity and Preferred Securities | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 22,326 | 16,033 | (17,269) |
Net Change In Unrealized Gains (Losses) | Corporate Loans | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (6,603) | 66,601 | (36,502) |
Net Change In Unrealized Gains (Losses) | Corporate Bonds | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | (36,219) | 18,859 | 1,188 |
Net Change In Unrealized Gains (Losses) | Subordinated Notes | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | 81,460 | $ (69,103) | 57,119 |
Net Change In Unrealized Gains (Losses) | Other | |||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | |||
Realized and net change in unrealized gains (losses) on financial instruments | $ 454 | $ (3,589) |
Information for Financial Instr
Information for Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | $ (34,115) | $ 3,399 | |
Fair value of financial instruments more than one day past due | [1] | 57,778 | |
Excess (Deficiency) of fair value more than one day past due over uncollected principal | [1] | (19,633) | |
Debt Securities | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (372) | ||
Corporate Bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (21,455) | 7,259 | |
Fair value of financial instruments more than one day past due | 0 | 0 | |
Corporate Loans | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | (13,495) | 2,616 | |
Fair value of financial instruments more than one day past due | [1] | 57,778 | |
Excess (Deficiency) of fair value more than one day past due over uncollected principal | [1] | (19,633) | |
Loans and Receivables | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Excess (Deficiency) of fair value over uncollected principal | 1,207 | (6,476) | |
Fair value of financial instruments more than one day past due | $ 0 | $ 0 | |
[1] | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
Information for Financial Ins70
Information for Financial Instruments on Which Fair Value Option was Elected (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans and bonds contractual payment past due, number days | 1 day | 1 day |
Fair Value Option - Additional
Fair Value Option - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | [1] | $ 57,778,000 | |
Corporate Bonds | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | 0 | $ 0 | |
Fair value of financial instruments with non-accrual status | 0 | 0 | |
Loans and Receivables | |||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||
Fair value of financial instruments more than one day past due | 0 | 0 | |
Fair value of financial instruments with non-accrual status | $ 0 | $ 0 | |
[1] | Corporate Loans and Corporate Bonds within CLO assets are classified as past due if contractual payments are more than one day past due. |
Financial Assets and Liabilitie
Financial Assets and Liabilities at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Accounts Receivable - Loans and Receivables | $ 239,659 | $ 211,359 | |||
Assets | 12,649,547 | 6,129,090 | |||
Securities Sold, Not Yet Purchased | 154,380 | 215,398 | |||
Liabilities | 11,339,206 | 5,471,398 | |||
Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 8,801 | 5,720 | |||
Derivatives liabilities | 36,234 | 6,886 | |||
Net Investment Hedges | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives liabilities | 453 | 587 | |||
Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 458 | ||||
Corporate Loans | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 10,825,759 | 4,762,071 | |||
Corporate Bonds | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 690,125 | 710,947 | |||
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | 10,594,656 | 5,125,804 | |||
Fair value of due to Affiliates | 996 | ||||
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | 703,164 | 337,846 | |||
Fair value of due to Affiliates | 40,390 | 7,748 | |||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and Cash Equivalents - Money Market Funds | 853,680 | 443,442 | |||
Total Other Assets | 3,393 | ||||
Total Investments | 15,842,638 | 9,281,603 | |||
Accounts Receivable - Loans and Receivables | 239,659 | 211,359 | |||
Derivatives assets | 4,443 | ||||
Assets | 16,940,420 | 9,939,797 | |||
Fair value of due to Affiliates | [1] | 41,386 | |||
Securities Sold, Not Yet Purchased | 154,380 | 215,398 | |||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 41,798 | 11,376 | |||
Liabilities | 11,535,384 | 5,698,172 | |||
Fair Value, Measurements, Recurring | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 3,393 | ||||
Derivatives liabilities | 30,554 | 3,536 | |||
Fair Value, Measurements, Recurring | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 2,097 | 1,037 | |||
Derivatives liabilities | 2,975 | 966 | |||
Fair Value, Measurements, Recurring | Freestanding Derivatives | Interest Rate Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 2,042 | 2,356 | |||
Derivatives liabilities | 27,275 | 2,355 | |||
Fair Value, Measurements, Recurring | Net Investment Hedges | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives liabilities | 453 | 587 | |||
Fair Value, Measurements, Recurring | Other Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 322,474 | 282,491 | |||
Fair Value, Measurements, Recurring | Credit Default Swap | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 304 | ||||
Derivatives liabilities | 304 | 215 | |||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 12,954,121 | 6,480,674 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives liabilities | 10,791 | 7,253 | [1] | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | Total Return Swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 526 | |||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 101 | 2,327 | ||
Derivatives liabilities | [1] | 5,628 | 3,903 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 23,986 | 22,723 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 458 | |||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Investment Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 130,339 | 148,993 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 243,336 | 240,582 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Partnership And LLC Interests | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 333,997 | 366,660 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 701,763 | 226,371 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 10,825,759 | 4,762,071 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Corporate Bonds | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 690,125 | 710,947 | ||
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Credit Default Swap | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 3,731 | |||
Derivatives liabilities | [1] | 5,163 | 3,350 | ||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 2,566,043 | 2,518,438 | |||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 315,274 | 207,431 | |||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 282,866 | 281,505 | |||
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 1,967,903 | 2,029,502 | |||
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1] | 11,297,820 | 5,463,650 | ||
Fair value of due to Affiliates | [1] | 40,390 | [2] | 7,748 | |
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1],[2] | 10,594,656 | 5,125,804 | ||
Fair value of due to Affiliates | [1],[2] | 996 | |||
Fair Value, Measurements, Recurring | Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1],[2] | 703,164 | 337,846 | ||
Fair value of due to Affiliates | [1],[2] | 7,748 | |||
Fair Value, Measurements, Recurring | Net Asset Value | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 465,460 | 430,110 | |||
Assets | 465,460 | 430,110 | |||
Fair Value, Measurements, Recurring | Net Asset Value | Other Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 19,847 | 18,779 | |||
Fair Value, Measurements, Recurring | Net Asset Value | Consolidated Blackstone Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 130,339 | 148,993 | ||
Fair Value, Measurements, Recurring | Net Asset Value | Consolidated Blackstone Funds | Investment Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 130,339 | 148,993 | ||
Fair Value, Measurements, Recurring | Net Asset Value | Corporate Treasury Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 315,274 | 262,338 | |||
Fair Value, Measurements, Recurring | Net Asset Value | Corporate Treasury Investments | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 315,274 | 207,431 | |||
Fair Value, Measurements, Recurring | Net Asset Value | Corporate Treasury Investments | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 54,907 | ||||
Fair Value, Measurements, Recurring | Level 1 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and Cash Equivalents - Money Market Funds | 853,680 | 443,442 | |||
Total Other Assets | 1,883 | ||||
Total Investments | 543,381 | 521,434 | |||
Derivatives assets | 575 | ||||
Assets | 1,397,636 | 966,759 | |||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 415 | 750 | |||
Liabilities | 415 | 750 | |||
Fair Value, Measurements, Recurring | Level 1 | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 1,883 | ||||
Derivatives liabilities | 415 | 750 | |||
Fair Value, Measurements, Recurring | Level 1 | Freestanding Derivatives | Interest Rate Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 575 | 1,883 | |||
Derivatives liabilities | 415 | 750 | |||
Fair Value, Measurements, Recurring | Level 1 | Other Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 193,072 | 163,548 | |||
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 67,443 | 76,381 | ||
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 67,443 | 76,381 | ||
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 282,866 | 281,505 | |||
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 282,866 | 281,505 | |||
Fair Value, Measurements, Recurring | Level 2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Other Assets | 1,510 | ||||
Total Investments | 13,684,784 | 7,513,598 | |||
Derivatives assets | 3,868 | ||||
Assets | 13,688,652 | 7,515,108 | |||
Fair value of due to Affiliates | [1] | 41,386 | |||
Securities Sold, Not Yet Purchased | 154,380 | 215,398 | |||
Total Accounts Payable, Accrued Expenses and Other Liabilities | 41,383 | 10,626 | |||
Liabilities | 11,534,969 | 5,697,422 | |||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 1,510 | ||||
Derivatives liabilities | 30,139 | 2,786 | |||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 2,097 | 1,037 | |||
Derivatives liabilities | 2,975 | 966 | |||
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | Interest Rate Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 1,467 | 473 | |||
Derivatives liabilities | 26,860 | 1,605 | |||
Fair Value, Measurements, Recurring | Level 2 | Net Investment Hedges | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives liabilities | 453 | 587 | |||
Fair Value, Measurements, Recurring | Level 2 | Other Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 14,162 | ||||
Fair Value, Measurements, Recurring | Level 2 | Credit Default Swap | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives assets | 304 | ||||
Derivatives liabilities | 304 | 215 | |||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 11,726,968 | 5,569,427 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Derivatives liabilities | 10,791 | 7,253 | [1] | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | Total Return Swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 526 | |||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 101 | 2,327 | ||
Derivatives liabilities | [1] | 5,628 | 3,903 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Freestanding Derivatives | Foreign Currency Contracts | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 23,986 | 22,723 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 44,026 | 70,544 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Partnership And LLC Interests | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 2,549 | 29,430 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 643,608 | 219,049 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 10,318,316 | 4,514,407 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Corporate Bonds | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 690,125 | 710,947 | ||
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Credit Default Swap | Freestanding Derivatives | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 3,731 | |||
Derivatives liabilities | [1] | 5,163 | 3,350 | ||
Fair Value, Measurements, Recurring | Level 2 | Corporate Treasury Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 1,943,654 | 1,944,171 | |||
Fair Value, Measurements, Recurring | Level 2 | Corporate Treasury Investments | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 1,943,654 | 1,944,171 | |||
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1] | 11,297,820 | 5,463,650 | ||
Fair value of due to Affiliates | [1] | 40,390 | [2] | 7,748 | |
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1],[2] | 10,594,656 | 5,125,804 | ||
Fair value of due to Affiliates | [1],[2] | 996 | |||
Fair Value, Measurements, Recurring | Level 2 | Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair value of Loan payable | [1],[2] | 703,164 | 337,846 | ||
Fair value of due to Affiliates | [1],[2] | 7,748 | |||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 1,149,013 | 816,461 | |||
Accounts Receivable - Loans and Receivables | 239,659 | 211,359 | |||
Assets | 1,388,672 | 1,027,820 | |||
Fair Value, Measurements, Recurring | Level 3 | Other Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 95,393 | 100,164 | |||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 1,029,371 | 685,873 | ||
Assets | 1,029,371 | 685,873 | |||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Other | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 458 | |||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 131,867 | 93,657 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 331,448 | 337,230 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 58,155 | 7,322 | ||
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Corporate Loans | Assets Of Consolidated CLO Vehicles | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | [1] | 507,443 | 247,664 | ||
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | 24,249 | 30,424 | |||
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Debt Instruments | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Investments | $ 24,249 | $ 30,424 | |||
[1] | Pursuant to GAAP consolidation guidance, the Partnership is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles, and other funds in which a consolidated entity of the Partnership, as the general partner of the fund, has a controlling financial interest. While the Partnership is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, the Partnership has no ability to utilize the assets of these funds and there is no recourse to the Partnership for their liabilities since these are client assets and liabilities. | ||||
[2] | Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. |
Summary of Fair Value Transfers
Summary of Fair Value Transfers Between Level I and Level II (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Transfers from Level I into Level II | [1] | $ 938 | $ 2,114 |
Transfers from Level II into Level I | [2] | $ 39,974 | |
[1] | Transfers out of Level I represent those financial instruments for which restrictions exist and adjustments were made to an otherwise observable price to reflect fair value at the reporting date. | ||
[2] | Transfers into Level I represent those financial instruments for which an unadjusted quoted price in an active market became available for the identical asset. |
Summary of Quantitative Inputs
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 12,649,547 | $ 6,129,090 |
Fair Value, Measurements, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 16,940,420 | 9,939,797 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,388,672 | 1,027,820 |
Fair Value, Measurements, Recurring | Level 3 | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 239,659 | 211,359 |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 65,821 | $ 78,619 |
Default Rate | 2.00% | 2.00% |
Pre-payment Rate | 20.00% | 20.00% |
Recovery Lag | 12 months | 12 months |
Recovery Rate | 70.00% | 70.00% |
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 29,572 | $ 21,545 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 1,029,371 | 685,873 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
EBITDA Multiple | 7 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 8,277 | $ 13,723 |
EBITDA Multiple | 9.6 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 499,624 | $ 233,941 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 91,753 | 58,826 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 862 | $ 2,032 |
Book Value Multiple | 0.9 | |
EBITDA Multiple | 8 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 17,536 | $ 22,843 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 21,716 | 9,956 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 293,744 | $ 303,281 |
Exit Multiple - NOI | 12.5 | |
Exit Multiple - P/E | 9.3 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 530 | $ 13,945 |
Book Value Multiple | 1 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 22,346 | 12,916 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 758 | 1,238 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Partnership And LLC Interests | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 14,070 | 5,850 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 6,122 | 5,002 |
Revenue CAGR | 7.70% | |
Exit Capitalization Rate | 8.30% | |
Exit Multiple - NOI | 12 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 50,136 | 2,227 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,897 | 93 |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 8,886 | $ 9,783 |
Default Rate | 2.00% | |
Pre-payment Rate | 20.00% | 20.00% |
Recovery Lag | 12 months | 12 months |
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 15,363 | $ 20,641 |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 7.10% | 12.00% |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Other Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 0.70% | 1.20% |
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 6.10% | |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 7.10% | 7.30% |
Revenue CAGR | 1.00% | (0.20%) |
Exit Capitalization Rate | 5.00% | 5.00% |
Exit Multiple - EBITDA | 4 | 4 |
Exit Multiple - NOI | 8.8 | |
Exit Multiple - P/E | 9.5 | 10.5 |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 0.8 | |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 4.60% | 3.40% |
Revenue CAGR | (22.20%) | (27.10%) |
Exit Capitalization Rate | 3.10% | 3.00% |
Exit Multiple - EBITDA | 0.1 | 3.9 |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Capitalization Rate | 5.00% | |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 6.60% | 8.30% |
Revenue CAGR | 4.80% | |
Exit Capitalization Rate | 4.70% | |
Exit Multiple - EBITDA | 9.6 | |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 5.10% | |
Default Rate | 1.00% | |
Recovery Rate | 30.00% | 18.50% |
Reinvestment Rate | 3.50% | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 10.30% | 16.40% |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Other Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 13.00% | 15.00% |
Reinvestment Rate | 4.13% | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 10.00% | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 31.40% | 28.70% |
Revenue CAGR | 49.40% | 20.10% |
Exit Capitalization Rate | 11.40% | 11.40% |
Exit Multiple - EBITDA | 16 | 20 |
Exit Multiple - NOI | 12.5 | |
Exit Multiple - P/E | 17 | 17 |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 0.9 | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 26.50% | 27.60% |
Revenue CAGR | 71.50% | 47.30% |
Exit Capitalization Rate | 10.00% | 11.00% |
Exit Multiple - EBITDA | 15 | 18.3 |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Capitalization Rate | 5.60% | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 18.40% | 20.00% |
Revenue CAGR | 70.80% | |
Exit Capitalization Rate | 8.30% | |
Exit Multiple - EBITDA | 12 | |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 6.30% | |
Default Rate | 2.00% | |
Recovery Rate | 70.00% | 76.50% |
Reinvestment Rate | 4.00% | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 8.80% | 13.30% |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Other Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 2.20% | 3.10% |
Reinvestment Rate | 4.01% | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 7.10% | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Equity Securities | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 12.60% | 12.70% |
Revenue CAGR | 7.10% | 6.30% |
Exit Capitalization Rate | 8.50% | 8.50% |
Exit Multiple - EBITDA | 9.9 | 10 |
Exit Multiple - NOI | 10.5 | |
Exit Multiple - P/E | 11 | 11 |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Equity Securities | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Book Value Multiple | 0.9 | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Partnership And LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 9.80% | 9.40% |
Revenue CAGR | 8.40% | 7.20% |
Exit Capitalization Rate | 5.70% | 6.00% |
Exit Multiple - EBITDA | 8.6 | 10.5 |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Partnership And LLC Interests | Market Comparable Companies | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Capitalization Rate | 5.20% | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 9.60% | 12.90% |
Revenue CAGR | 33.80% | |
Exit Capitalization Rate | 7.50% | |
Exit Multiple - EBITDA | 11 | |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Discount Rate | 5.40% | |
Default Rate | 1.80% | |
Recovery Rate | 68.10% | 66.40% |
Reinvestment Rate | 3.90% |
Summary of Changes in Financial
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used (Detail) - Level 3 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | $ 1,027,820 | $ 1,192,227 | |
Transfer In Due to Consolidation and Acquisition | 34,651 | ||
Transfer Out Due to Deconsolidation | (38,629) | ||
Transfer In to Level III | [1] | 86,600 | 104,163 |
Transfer Out of Level III | [1] | (191,097) | (131,003) |
Purchases | 1,751,194 | 943,740 | |
Sales | (1,362,643) | (1,114,737) | |
Settlements | (14,157) | (9,111) | |
Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) | 94,933 | 42,541 | |
Balance, End of Period | 1,388,672 | 1,027,820 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 35,474 | (22,453) | |
Other Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | [2] | 130,588 | 155,841 |
Transfer In to Level III | [1],[2] | 27,127 | 19,691 |
Transfer Out of Level III | [1],[2] | (22,111) | (33,162) |
Purchases | [2] | 25,335 | 24,158 |
Sales | [2] | (54,039) | (31,251) |
Settlements | [2] | (1,573) | (512) |
Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) | [2] | 14,315 | (4,177) |
Balance, End of Period | [2] | 119,642 | 130,588 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | [2] | (91) | 3,443 |
Loans and Receivables | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | 211,359 | 261,994 | |
Purchases | 856,042 | 546,060 | |
Sales | (835,426) | (598,232) | |
Settlements | (12,584) | (8,599) | |
Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) | 20,268 | 10,136 | |
Balance, End of Period | 239,659 | 211,359 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 21,482 | 10,178 | |
Consolidated Blackstone Funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Balance, Beginning of Period | 685,873 | 774,392 | |
Transfer In Due to Consolidation and Acquisition | 34,651 | ||
Transfer Out Due to Deconsolidation | (38,629) | ||
Transfer In to Level III | [1] | 59,473 | 84,472 |
Transfer Out of Level III | [1] | (168,986) | (97,841) |
Purchases | 869,817 | 373,522 | |
Sales | (473,178) | (485,254) | |
Changes in Gains (Losses) Included in Earnings and Other Comprehensive Income (Loss) | 60,350 | 36,582 | |
Balance, End of Period | 1,029,371 | 685,873 | |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | $ 14,083 | $ (36,074) | |
[1] | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. | ||
[2] | Represents corporate treasury investments and Other Investments. |
Fair Value Measurements of Fi76
Fair Value Measurements of Financial instruments - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Level III financial liabilities | $ 0 | $ 0 |
Assets and Liabilities Related
Assets and Liabilities Related to Interest in Non-Consolidated VIEs and Maximum Exposure to Loss (Detail) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
VIE Assets | $ 902,726 | $ 691,953 |
Maximum Exposure to Loss | 1,001,236 | 774,504 |
Investments | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 805,501 | 644,546 |
Accounts Receivable | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 15,760 | 12,308 |
Due from Affiliates | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 81,465 | 35,099 |
Due to Affiliates | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | 179 | 577 |
Accounts Payable, Accrued Expenses and Other Liabilities | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | 38 | |
Potential Clawback Obligation | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | $ 98,331 | $ 81,936 |
Reverse Repurchase and Repurc78
Reverse Repurchase and Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Securities Financing Transaction [Line Items] | ||
Pledged securities with carrying value to collateralize its repurchase agreements | $ 119.1 | $ 169.7 |
U.S. and non-U.S. government and agency securities, asset-backed securities and corporate debt | 117.8 | |
Securities repledged, delivered or used to settle Securities Sold, Not Yet Purchased | $ 68.8 |
Schedule of Repurchase Agreemen
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 118,840 | $ 75,324 |
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 12. "Offsetting of Assets and Liabilities" | 118,840 | 75,324 |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 118,840 | 68,290 |
U.S. Treasury and Agency | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 7,034 | |
Overnight and Continuous | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 7,034 | |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Overnight and Continuous | U.S. Treasury and Agency | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 7,034 | |
Up to 30 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 12,805 | |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
Up to 30 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 22,756 | 12,805 |
30 - 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 30,796 | |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | 0 | 0 |
30 - 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 96,084 | 30,796 |
Greater than 90 Days | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 24,689 | |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 12. "Offsetting of Assets and Liabilities" | $ 0 | 0 |
Greater than 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 24,689 |
Components of Other Assets (Det
Components of Other Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Other Assets [Line Items] | ||
Furniture, Equipment and Leasehold Improvements | $ 345,875 | $ 338,292 |
Less: Accumulated Depreciation | (219,309) | (211,508) |
Furniture, Equipment and Leasehold Improvements, Net | 126,566 | 126,784 |
Prepaid Expenses | 78,723 | 96,888 |
Other Assets | 32,965 | 37,723 |
Freestanding Derivatives | 4,443 | 3,393 |
Total Other Assets | $ 242,697 | $ 264,788 |
Other Assets and Accounts Pay81
Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Other Assets [Line Items] | |||
Depreciation expense | $ 25.2 | $ 32 | $ 26 |
Accounts Payable, Accrued Expenses and Other Liabilities for redemption to investors | 27.2 | 10.1 | |
Payables relating to unsettled purchases | $ 1.5 | $ 615 |
Offsetting of Assets and Liab82
Offsetting of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Offsetting Assets and Liabilities [Line Items] | ||
Repurchase agreements gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | $ 118,840 | $ 75,324 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 118,840 | 72,195 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 3,129 | |
Repurchase agreements Net Amount | 0 | 0 |
Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 155,527 | 82,797 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 122,119 | 73,259 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 32,405 | 8,767 |
Net Amount | 1,003 | 771 |
Reverse repurchase agreements gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 118,495 | |
Reverse repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 117,775 | |
Reverse repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 0 | |
Reverse repurchase agreements Net Amount | 720 | |
Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 124,215 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 118,839 | |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 2,892 | |
Net Amount | 2,484 | |
Net Investment Hedges | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivatives gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 453 | 587 |
Derivatives Net Amount | 453 | 587 |
Freestanding Derivatives | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivatives gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 8,801 | 5,720 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 3,279 | 1,064 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 2,892 | |
Derivatives Net Amount | 5,522 | 1,764 |
Derivatives gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 36,234 | 6,886 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 3,279 | 1,064 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 32,405 | 5,638 |
Derivatives Net Amount | $ 550 | $ 184 |
Offsetting Of Assets And Liab83
Offsetting Of Assets And Liabilities - Additional Information (Detail) - Cash Pooling Arrangement $ in Billions | Dec. 31, 2017USD ($) |
Offsetting Assets [Line Items] | |
Aggregate cash balance on deposit relating to the cash pooling arrangement | $ 1 |
Overdraft facility | $ 1 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | Oct. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Fair value of the CLO assets | $ 13,400,000,000 | $ 6,400,000,000 | ||
Senior Notes Due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 300,000,000 | |||
Debt instrument, maturity date | Oct. 2, 2027 | |||
Debt instrument, interest rate | 3.15% | |||
Debt Instrument, frequency of periodic payment | Notes is payable semi-annually in arrears on October 2 and April 2 of each year, commencing on April 2, 2018 | |||
Debt instrument, date of first required payment | Apr. 2, 2018 | |||
Senior Notes Due 2047 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 300,000,000 | |||
Debt instrument, maturity date | Oct. 2, 2047 | |||
Debt Instrument, frequency of periodic payment | Notes is payable semi-annually in arrears on October 2 and April 2 of each year, commencing on April 2, 2018 | |||
Debt instrument, date of first required payment | Apr. 2, 2018 | |||
Senior Notes Due 2047 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.00% | |||
6.625% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [1],[2] | Aug. 15, 2019 | ||
Senior Secured Notes | 6.625% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Aug. 15, 2019 | Aug. 15, 2019 | ||
Debt instrument, interest rate | 6.625% | 6.625% | ||
Loss on extinguishment of debt | $ 32,900,000 | |||
[1] | The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | |||
[2] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. |
Partnership Credit Facilities (
Partnership Credit Facilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Line of Credit Facility [Line Items] | |||
Credit Available | $ 16,666,860 | $ 10,441,299 | |
Borrowing Outstanding | $ 15,167,543 | $ 8,941,982 | |
Weighted Average Interest Rate | 2.54% | 2.92% | |
Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [1] | $ 1,500,000 | $ 1,500,000 |
Borrowing Outstanding | [1] | $ 683 | $ 683 |
Weighted Average Interest Rate | [1] | 0.88% | 0.88% |
Senior Secured Note | 6.625% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [2],[3] | $ 585,000 | |
Borrowing Outstanding | [2],[3] | $ 585,000 | |
Weighted Average Interest Rate | [2],[3] | 6.63% | |
Senior Secured Note | 5.875% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 400,000 | $ 400,000 |
Borrowing Outstanding | [3] | $ 400,000 | $ 400,000 |
Weighted Average Interest Rate | [3] | 5.88% | 5.88% |
Senior Secured Note | 4.750% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 400,000 | $ 400,000 |
Borrowing Outstanding | [3] | $ 400,000 | $ 400,000 |
Weighted Average Interest Rate | [3] | 4.75% | 4.75% |
Senior Secured Note | 6.250% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 250,000 | $ 250,000 |
Borrowing Outstanding | [3] | $ 250,000 | $ 250,000 |
Weighted Average Interest Rate | [3] | 6.25% | 6.25% |
Senior Secured Note | 5.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 500,000 | $ 500,000 |
Borrowing Outstanding | [3] | $ 500,000 | $ 500,000 |
Weighted Average Interest Rate | [3] | 5.00% | 5.00% |
Senior Secured Note | 4.450% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 350,000 | $ 350,000 |
Borrowing Outstanding | [3] | $ 350,000 | $ 350,000 |
Weighted Average Interest Rate | [3] | 4.45% | 4.45% |
Senior Secured Note | 2.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 360,150 | $ 315,510 |
Borrowing Outstanding | [3] | $ 360,150 | $ 315,510 |
Weighted Average Interest Rate | [3] | 2.00% | 2.00% |
Senior Secured Note | 1.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 720,300 | $ 631,020 |
Borrowing Outstanding | [3] | $ 720,300 | $ 631,020 |
Weighted Average Interest Rate | [3] | 1.00% | 1.00% |
Senior Secured Note | 3.150% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 300,000 | |
Borrowing Outstanding | [3] | $ 300,000 | |
Weighted Average Interest Rate | [3] | 3.15% | |
Senior Secured Note | 4.000% Notes | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [3] | $ 300,000 | |
Borrowing Outstanding | [3] | $ 300,000 | |
Weighted Average Interest Rate | [3] | 4.00% | |
Partnership's Credit Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Available | $ 5,080,450 | $ 4,931,530 | |
Borrowing Outstanding | $ 3,581,133 | $ 3,432,213 | |
Weighted Average Interest Rate | 3.76% | 4.37% | |
Blackstone Fund Facilities | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [4] | $ 2,803 | $ 2,793 |
Borrowing Outstanding | [4] | $ 2,803 | $ 2,793 |
Weighted Average Interest Rate | [4] | 2.79% | 2.32% |
CLO Vehicles | |||
Line of Credit Facility [Line Items] | |||
Credit Available | [5] | $ 11,583,607 | $ 5,506,976 |
Borrowing Outstanding | [5] | $ 11,583,607 | $ 5,506,976 |
Weighted Average Interest Rate | [5] | 2.32% | 2.02% |
[1] | Blackstone Holdings Finance Co. L.L.C. (the "Issuer"), an indirect subsidiary of the Partnership, has a revolving credit facility (the "Credit Facility") with Citibank, N.A., as Administrative Agent in the amount of $1.5 billion with a maturity date of August 31, 2021. Interest on the borrowings is based on an adjusted LIBOR rate or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee. Borrowings may also be made in U.K. sterling or euros, in each case subject to certain sub-limits. The Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly. The Borrowing Outstanding at each date represent outstanding but undrawn letters of credit against the credit facility. | ||
[2] | The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||
[3] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. | ||
[4] | Represents borrowing facilities for the various consolidated Blackstone Funds used to meet liquidity and investing needs. Certain borrowings under these facilities were used for bridge financing and general liquidity purposes. Other borrowings were used to finance the purchase of investments with the borrowing remaining in place until the disposition or refinancing event. Such borrowings have varying maturities and are rolled over until the disposition or a refinancing event. Because the timing of such events is unknown and may occur in the near term, these borrowings are considered short-term in nature. Borrowings bear interest at spreads to market rates. Borrowings were secured according to the terms of each facility and are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. Certain facilities have commitment fees. When a fund borrows, the proceeds are available only for use by that fund and are not available for the benefit of other funds. Collateral within each fund is also available only against the borrowings by that fund and not against the borrowings of other funds. | ||
[5] | Represents borrowings due to the holders of debt securities issued by CLO vehicles consolidated by Blackstone. These amounts are included within Loans Payable and Due to Affiliates within the Consolidated Statements of Financial Condition. |
Partnership Credit Facilities86
Partnership Credit Facilities (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 | ||
Line of Credit Facility [Line Items] | |||||
Maximum percentage of aggregate principal amount of the outstanding notes | 25.00% | ||||
Percentage of repurchase of note on principal amount of notes | 101.00% | ||||
Senior notes issued | $ 600,000,000 | ||||
Notes acquired not retired | $ 15,000,000 | ||||
6.625% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [1],[2] | Aug. 15, 2019 | |||
Interest expense | $ 200,400,000 | $ 145,600,000 | $ 136,500,000 | ||
Senior notes issued | 600,000,000 | ||||
Notes acquired not retired | $ 15,000,000 | ||||
5.875% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Mar. 15, 2021 | |||
4.750% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Feb. 15, 2023 | |||
6.250% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Aug. 15, 2042 | |||
5.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Jun. 15, 2044 | |||
4.450% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Jul. 15, 2045 | |||
2.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | May 19, 2025 | |||
1.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Oct. 5, 2026 | |||
Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility, maximum borrowing capacity | $ 1,500,000,000 | ||||
Line of credit expiration date | Aug. 31, 2021 | ||||
Senior Secured Note | 3.150% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Feb. 10, 2027 | |||
Senior Secured Note | 4.000% Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maturity Date | [2] | Feb. 10, 2047 | |||
[1] | The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | ||||
[2] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. |
Carrying Value and Fair Value o
Carrying Value and Fair Value of Blackstone Issued Notes (Detail) - Senior Secured Notes - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | ||||
Carrying Value | $ 3,514,815 | $ 3,399,922 | [1] | |
Debt instrument, fair value | [2] | 3,836,528 | 3,557,426 | |
6.625% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | [1],[3] | 607,121 | ||
Debt instrument, fair value | [2],[3] | 648,765 | ||
5.875% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 398,514 | 398,105 | [1] | |
Debt instrument, fair value | [2] | 438,320 | 447,600 | |
4.750% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 394,137 | 393,158 | [1] | |
Debt instrument, fair value | [2] | 434,200 | 426,520 | |
6.250% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 238,019 | 237,830 | [1] | |
Debt instrument, fair value | [2] | 328,200 | 285,450 | |
5.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 488,536 | 488,337 | [1] | |
Debt instrument, fair value | [2] | 574,100 | 497,200 | |
4.450% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 343,925 | 343,816 | [1] | |
Debt instrument, fair value | [2] | 372,575 | 322,525 | |
2.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 355,425 | 310,805 | [1] | |
Debt instrument, fair value | [2] | 385,433 | 331,096 | |
1.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 709,871 | 620,750 | [1] | |
Debt instrument, fair value | [2] | 711,440 | $ 598,270 | |
3.150% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 296,399 | |||
Debt instrument, fair value | [2] | 295,320 | ||
4.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying Value | 289,989 | |||
Debt instrument, fair value | [2] | $ 296,940 | ||
[1] | The carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct deduction from the related liability for all periods presented in accordance with amended guidance on simplifying the presentation of such costs. | |||
[2] | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. | |||
[3] | The carrying and fair values are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. |
Carrying Value and Fair Value88
Carrying Value and Fair Value of Blackstone Issued Notes (Parenthetical) (Detail) - USD ($) $ in Millions | Oct. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ||||
Senior Notes | $ 600 | |||
Notes acquired not retired | $ 15 | |||
6.625% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [1],[2] | Aug. 15, 2019 | ||
Senior Notes | $ 600 | |||
Notes acquired not retired | $ 15 | |||
6.625% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.625% | 6.625% | ||
Debt instrument, maturity date | Aug. 15, 2019 | Aug. 15, 2019 | ||
5.875% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Mar. 15, 2021 | ||
5.875% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.875% | |||
Debt instrument, maturity date | Mar. 15, 2021 | |||
4.750% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Feb. 15, 2023 | ||
4.750% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.75% | |||
Debt instrument, maturity date | Feb. 15, 2023 | |||
6.250% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Aug. 15, 2042 | ||
6.250% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 6.25% | |||
Debt instrument, maturity date | Aug. 15, 2042 | |||
5.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Jun. 15, 2044 | ||
5.000% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 5.00% | |||
Debt instrument, maturity date | Jun. 15, 2044 | |||
4.450% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Jul. 15, 2045 | ||
4.450% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.45% | |||
Debt instrument, maturity date | Jul. 15, 2045 | |||
2.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | May 19, 2025 | ||
2.000% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 2.00% | |||
Debt instrument, maturity date | May 19, 2025 | |||
1.000% Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | [2] | Oct. 5, 2026 | ||
1.000% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 1.00% | |||
Debt instrument, maturity date | Oct. 5, 2026 | |||
3.150% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 3.15% | |||
Debt instrument, maturity date | Oct. 2, 2027 | |||
4.000% Notes | Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate | 4.00% | |||
Debt instrument, maturity date | Oct. 2, 2047 | |||
[1] | The Credit Available and Borrowing Outstanding are determined using the original $600 million par amount less $15 million attributable to these notes which were acquired but not retired by Blackstone during 2012. | |||
[2] | The Issuer, has issued long term borrowings in the form of senior notes (the "Notes"). The Notes are unsecured and unsubordinated obligations of the Issuer. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Partnership, Blackstone Holdings (the "Guarantors"), and the Issuer. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuer's and the Guarantors' ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuer's option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuer to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. Interest expense on the Notes was $200.4 million, $145.6 million and $136.5 million for the years ended December 31, 2017, December 31, 2016 and December 31, 2015, respectively. |
Partnership's Borrowings Throug
Partnership's Borrowings Through Consolidated CLO Vehicles (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||
Weighted Average Interest Rate | 2.54% | 2.92% | |
Liabilities of Consolidated CLO Vehicles | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 11,583,607 | $ 5,506,976 | |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 10,689,240 | $ 5,124,241 | |
Weighted Average Interest Rate | 2.35% | 2.17% | |
Weighted Average Remaining Maturity in Years | 4 years 1 month 6 days | 5 years 4 months 24 days | |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 894,367 | $ 382,735 | |
Weighted Average Interest Rate | [1] | ||
[1] | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Senior Secured Notes and Subord
Senior Secured Notes and Subordinated Notes (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Fair Value | $ 11,339,206 | $ 5,471,398 | |
Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 3,514,815 | 3,399,922 | [1] |
Fair Value | 10,595,652 | 5,125,804 | |
Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Fair Value | 743,554 | 345,594 | |
Non-Consolidated Affiliates Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 54,400 | 10,000 | |
Fair Value | 41,386 | 7,748 | |
Non-Consolidated Affiliates Senior Secured Notes | Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 1,000 | ||
Fair Value | 996 | ||
Non-Consolidated Affiliates Senior Secured Notes | Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | 53,400 | 10,000 | |
Fair Value | $ 40,390 | $ 7,748 | |
[1] | The carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct deduction from the related liability for all periods presented in accordance with amended guidance on simplifying the presentation of such costs. |
Scheduled Principal Payments fo
Scheduled Principal Payments for Borrowings (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 290,437 |
2,019 | 0 |
2,020 | 540,225 |
2,021 | 400,000 |
2,022 | 0 |
Thereafter | 13,936,197 |
Total | 15,166,859 |
Operating Borrowings | |
Debt Instrument [Line Items] | |
2,019 | 0 |
2,021 | 400,000 |
2,022 | 0 |
Thereafter | 3,180,450 |
Total | 3,580,450 |
Blackstone Fund Facilities CLO Vehicles | |
Debt Instrument [Line Items] | |
2,018 | 290,437 |
2,019 | 0 |
2,020 | 540,225 |
2,022 | 0 |
Thereafter | 10,755,747 |
Total | $ 11,586,409 |
Income Before Provision for Tax
Income Before Provision for Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||||||||||
Income Before Provision for Taxes | $ 1,359,134 | $ 906,465 | $ 774,297 | $ 1,077,205 | $ 818,395 | $ 719,303 | $ 510,526 | $ 333,786 | $ 4,117,101 | $ 2,382,010 | $ 1,814,748 | ||
Domestic Tax Authority | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income Before Provision for Taxes | 3,955,351 | 2,215,380 | 1,754,969 | ||||||||||
Foreign Tax Authority | |||||||||||||
Income Taxes [Line Items] | |||||||||||||
Income Before Provision for Taxes | $ 161,750 | $ 166,630 | $ 59,779 | ||||||||||
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. |
Provision (Benefit) for Income
Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||
Federal Income Tax | $ 31,457 | $ 32,383 | $ 45,506 |
Foreign Income Tax | 36,083 | 17,322 | 16,769 |
State and Local Income Tax | 40,507 | 32,572 | 28,137 |
Current Income Tax Expense (Benefit), Total | 108,047 | 82,277 | 90,412 |
Federal Income Tax | 613,518 | 42,042 | 80,307 |
Foreign Income Tax | (34) | 363 | (398) |
State and Local Income Tax | 21,616 | 7,680 | 20,077 |
Deferred Income Tax Expense (Benefit), Total | 635,100 | 50,085 | 99,986 |
Provision for Taxes | $ 743,147 | $ 132,362 | $ 190,398 |
Summary of Tax Positions (Detai
Summary of Tax Positions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | |||||||||||||
Income Before Provision for Taxes | $ 1,359,134 | $ 906,465 | $ 774,297 | $ 1,077,205 | $ 818,395 | $ 719,303 | $ 510,526 | $ 333,786 | $ 4,117,101 | $ 2,382,010 | $ 1,814,748 | ||
Provision for Taxes | $ 743,147 | $ 132,362 | $ 190,398 | ||||||||||
Effective Income Tax Rate | 18.10% | 5.60% | 10.50% | ||||||||||
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. |
Reconciliations of Effective In
Reconciliations of Effective Income Tax Rate to Federal Statutory Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Effective Tax Rate Reconciliation [Line Items] | ||||
Statutory U.S. Federal Income Tax Rate | 35.00% | 35.00% | 35.00% | |
Income Passed Through to Common Unitholders and Non-Controlling Interest Holders | [1] | (25.80%) | (28.60%) | (26.30%) |
State and Local Income Taxes | 1.50% | 1.30% | 1.80% | |
Equity-Based Compensation | (0.10%) | (0.20%) | 1.80% | |
Impact of the Tax Reform Bill | 8.30% | |||
Other | (0.80%) | (1.90%) | (1.80%) | |
Effective Income Tax Rate | 18.10% | 5.60% | 10.50% | |
[1] | Includes income that is not taxable to the Partnership and its subsidiaries. Such income is directly taxable to the Partnership's unitholders and the non-controlling interest holders. |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Taxes [Line Items] | ||||||
Statutory U.S. Federal Income Tax Rate | 35.00% | 35.00% | 35.00% | |||
Tax cuts and jobs act of 2017 incomplete accounting change in tax rate net deferred tax assets | $ 500,600,000 | $ 500,600,000 | ||||
Net adjustment of deferred income tax expense | 500,600,000 | |||||
Tax cuts and jobs act of 2017 complete accounting change in tax rate deferred tax liability provisional income tax benefit | 160,300,000 | 160,300,000 | ||||
Tax cuts and jobs act of 2017 complete accounting change in tax rate deferred tax liability | 403,900,000 | $ 403,900,000 | ||||
Impact of the Tax Reform Bill | 8.30% | |||||
Reduction in net deferred tax assets | 725,970,000 | $ 725,970,000 | $ 1,286,469,000 | |||
Amortization period for tax basis intangibles, years | 15 years | |||||
Taxable loss of partnership | 10,300,000 | $ 43,200,000 | ||||
Carryforward period for tax basis intangibles, years | 20 years | |||||
Tax credit utilized | $ 6,900,000 | $ 10,300,000 | ||||
Tax credit carryforward | 36,300,000 | 36,300,000 | ||||
Unrecognized tax benefits that if recognized would affect the annual effective rate | 11,400,000 | 11,400,000 | 3,600,000 | |||
Interest expense accrued | (400,000) | (400,000) | (4,100,000) | (400,000) | ||
Accrued Penalties | 0 | 0 | $ 0 | 0 | ||
Reduction of Tax Receivable Agreement Liability | 403,855,000 | $ 82,707,000 | ||||
Scenario, Forecast [Member] | ||||||
Income Taxes [Line Items] | ||||||
Statutory U.S. Federal Income Tax Rate | 21.00% | |||||
Tax Cuts and Jobs Act | ||||||
Income Taxes [Line Items] | ||||||
Reduction in net deferred tax assets | 500,600,000 | 500,600,000 | ||||
Reduction of Tax Receivable Agreement Liability | $ 403,900,000 | $ 403,900,000 |
Summary of Tax Effects of Tempo
Summary of Tax Effects of Temporary Differences (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets | ||
Fund Management Fees | $ 9,938 | $ 10,235 |
Equity-Based Compensation | 54,699 | 68,642 |
Amortization and Depreciation | 754,924 | 1,297,669 |
Net Operating Loss Carry Forward | 8,885 | 17,969 |
Total Deferred Tax Assets | 828,446 | 1,394,515 |
Deferred Tax Liabilities | ||
Unrealized Gains from Investments | 65,883 | 72,750 |
Other | 36,593 | 35,296 |
Total Deferred Tax Liabilities | 102,476 | 108,046 |
Net Deferred Tax Assets | $ 725,970 | $ 1,286,469 |
Unrecognized Tax Benefits Exclu
Unrecognized Tax Benefits Excluding Related Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Unrecognized Tax Benefits - January 1 | $ 3,581 | $ 15,698 | $ 19,836 |
Additions based on Tax Positions Related to Current Year | 902 | 1,031 | |
Reductions for Tax Positions of Current Year | (851) | ||
Additions for Tax Positions of Prior Years | 11,167 | ||
Reductions for Tax Positions of Prior Years | (1,860) | (7,837) | (4,032) |
Reductions for Tax Positions as a Result of a Lapse of the Applicable Statute of Limitations | (3,774) | ||
Settlements | (1,382) | (357) | |
Exchange Rate Fluctuations | (52) | (200) | (1,137) |
Unrecognized Tax Benefits - December 31 | $ 11,454 | $ 3,581 | $ 15,698 |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Common Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Earnings Per Share [Line Items] | ||||||||||||||||||||||
Net Income Attributable to The Blackstone Group L.P., Basic | $ 281,588 | $ 384,642 | $ 342,775 | $ 461,825 | $ 367,951 | $ 312,905 | $ 198,626 | $ 159,753 | $ 1,470,830 | $ 1,039,235 | $ 709,789 | |||||||||||
Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units | 828,244 | 524,353 | ||||||||||||||||||||
Net Income Attributable to The Blackstone Group L.P., Diluted | $ 1,470,830 | $ 1,867,479 | $ 1,234,142 | |||||||||||||||||||
Units Outstanding Weighted-Average Common Units Outstanding, Basic | 665,453,198 | 649,475,264 | 634,337,179 | |||||||||||||||||||
Weighted-Average Unvested Deferred Restricted Common Units | 793,648 | 1,445,277 | 2,993,398 | |||||||||||||||||||
Weighted-Average Blackstone Holdings Partnership Units | 544,194,049 | 550,754,834 | ||||||||||||||||||||
Weighted-Average Common Units Outstanding, Diluted | 666,246,846 | 1,195,114,590 | 1,188,085,411 | |||||||||||||||||||
Net Income Per Common Unit, Basic | $ 0.42 | $ 0.58 | $ 0.52 | $ 0.70 | $ 0.56 | $ 0.48 | $ 0.31 | $ 0.23 | $ 2.21 | $ 1.60 | $ 1.12 | |||||||||||
Net Income Per Common Unit, Diluted | 0.42 | 0.56 | 0.51 | 0.69 | 0.55 | 0.47 | 0.30 | 0.23 | 2.21 | 1.56 | 1.04 | |||||||||||
Distributions Declared Per Common Unit | $ 0.44 | [3] | $ 0.54 | [3] | $ 0.87 | [3] | $ 0.47 | [3] | $ 0.41 | [3] | $ 0.36 | [3] | $ 0.28 | [3] | $ 0.61 | [3] | $ 2.32 | [4] | $ 1.66 | [4] | $ 2.90 | [4] |
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | |||||||||||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. | |||||||||||||||||||||
[3] | Distributions declared reflects the calendar date of the declaration of each distribution. | |||||||||||||||||||||
[4] | Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Summary of Anti-Dilutive Securi
Summary of Anti-Dilutive Securities (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Blackstone Partnership Units | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Weighted-Average Units | 533,982,613 |
Net Income Per Common Unit - Ad
Net Income Per Common Unit - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2008 | |
Unit Repurchase Program [Line Items] | ||||
Amount remaining available for repurchases | $ 335,800,000 | |||
Common stock repurchased, units | 0 | 0 | 0 | |
Blackstone | ||||
Unit Repurchase Program [Line Items] | ||||
Amount authorized to repurchase under unit repurchase program | $ 500,000,000 |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Partnership grant units | 170,379,944 | |||
Compensation expense in relation to equity-based awards | $ 338,687 | $ 323,651 | $ 629,642 | |
Tax benefits in relation to equity-based awards | 47,100 | 33,800 | 41,000 | |
Estimated unrecognized compensation expense related to unvested awards | $ 785,200 | |||
Weighted-average period for recognized compensation expense related to unvested awards, years | 4 years | |||
Total vested and unvested outstanding units | 1,200,759,045 | |||
Phantom units vesting period | 2 years 10 months 25 days | |||
Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total outstanding unvested phantom units | 45,543 | |||
Payment in settlement of phantom units | $ 300 | $ 200 | $ 1,100 | |
Phantom Share Units (PSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed forfeiture rate | 9.90% | |||
Phantom units vesting period | 1 year | |||
Phantom Share Units (PSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed forfeiture rate | 11.60% | |||
Phantom units vesting period | 5 years | |||
Equity Settled Awards Deferred Restricted Common Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 1 year | |||
Assumed forfeiture rate | 1.00% | |||
Per unit discount | $ 0.48 | |||
Equity Settled Awards Deferred Restricted Common Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 5 years | |||
Assumed forfeiture rate | 11.60% | |||
Per unit discount | $ 10.88 | |||
Blackstone Partnership Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed forfeiture rate | 10.00% | |||
Blackstone Partnership Units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 1 year | |||
Blackstone Partnership Units | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Assumed service period, in years | 9 years |
Summary of Status of Partnershi
Summary of Status of Partnership's Unvested Equity-Based Awards (Detail) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Blackstone | Blackstone Partnership Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 34,568,726 |
Granted (Units) | shares | 2,471,571 |
Vested (Units) | shares | (6,632,473) |
Forfeited (Units) | shares | (384,635) |
Ending Balance | shares | 30,023,189 |
Beginning Balance | $ / shares | $ 33.58 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 32.89 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 28.94 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 26.40 |
Ending Balance | $ / shares | 35.26 |
Blackstone Group L P | Equity Settled Awards Weighted Average Grant Date Fair Value | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | $ / shares | 24.65 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 29.30 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 20.32 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 29.67 |
Ending Balance | $ / shares | 30.03 |
Blackstone Group L P | Cash Settled Awards Weighted Average Grant Date Fair Value | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | $ / shares | 28.14 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 30.79 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 30.73 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 33.32 |
Ending Balance | $ / shares | $ 31.85 |
Blackstone Group L P | Equity Settled Awards Deferred Restricted Common Units And Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 12,206,016 |
Granted (Units) | shares | 3,484,875 |
Vested (Units) | shares | (6,268,037) |
Forfeited (Units) | shares | (402,880) |
Ending Balance | shares | 9,019,974 |
Blackstone Group L P | Cash Settled Awards Phantom Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 40,460 |
Granted (Units) | shares | 12,214 |
Vested (Units) | shares | (4,708) |
Forfeited (Units) | shares | (3,770) |
Ending Balance | shares | 44,196 |
Unvested Units, After Expected
Unvested Units, After Expected Forfeitures (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Blackstone Holdings Partnership Units (Units) | 25,832,787 |
Deferred Restricted Blackstone Common Units (Units) | 7,926,153 |
Total Equity-Based Awards (Units) | 33,758,940 |
Phantom Units (Units) | 34,752 |
Blackstone Holdings Partnership Units (Weighted-Average Service Period in Years) | 3 years 9 months 18 days |
Deferred Restricted Blackstone Common Units (Weighted-Average Service in Years) | 1 year 10 months 25 days |
Total Equity-Based Awards (Weighted-Average Service Period in Years) | 3 years 4 months 24 days |
Phantom Units (Weighted-Average Service Period in Years) | 2 years 10 months 25 days |
Due from Affiliates and Due to
Due from Affiliates and Due to Affiliates (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Advances Made on Behalf of Certain Non-ControllingInterest Holders and Blackstone Employees Principally for Investments in Blackstone Funds | $ 410,877 | $ 342,943 |
Amounts Due from Portfolio Companies and Funds | 587,955 | 456,469 |
Management and Performance Fees Due from Non-Consolidated Funds | 595,330 | 445,280 |
Payments Made on Behalf of Non-ConsolidatedEntities | 355,767 | 196,134 |
Investments Redeemed in Non-Consolidated Funds of Hedge Funds | 77,943 | 1,552 |
Accrual for Potential Clawback of Previously Distributed Carried Interest | 1,112 | |
Due from Affiliates, total | 2,028,984 | 1,442,378 |
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | 715,734 | 1,186,145 |
Distributions Received on Behalf of Certain Non-Controlling Interest Holders and Blackstone Employees | 87,829 | 28,012 |
Distributions Received on Behalf of Blackstone Entities | 38,789 | 80,034 |
Payments Made by Non-ConsolidatedEntities | 51,249 | 19,833 |
Due to Note Holders of Consolidated CLO Vehicles | 41,386 | 7,748 |
Accrual for Potential Repayment of Previously Received Performance Fees | 2,171 | |
Due to Affiliates, total | $ 937,158 | $ 1,321,772 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Investments | $ 24,434,049 | $ 17,694,975 | |
Net Income Attributable to Non-Controlling Interests | (511,245) | (250,129) | $ (231,045) |
Management and Advisory Fees, Net from Affiliates | $ 161,153 | 185,769 | 210,672 |
Partnership Unit to Blackstone Common Unit ratio | 100.00% | ||
Cash saving in tax receivable agreements, percentage | 85.00% | ||
Expected future payments under the tax receivable agreements | $ 715,700 | ||
Expected future payments under the tax receivable agreements in years | 15 years | ||
After-tax net present value estimated payments | $ 252,700 | ||
After-tax net present value discount rate assumption | 15.00% | ||
Payments made under tax receivable agreements and related tax benefits | $ 76,300 | ||
Consolidated Blackstone Funds | |||
Related Party Transaction [Line Items] | |||
Investments | 12,954,121 | 6,480,674 | |
Tax Cuts and Jobs Act | |||
Related Party Transaction [Line Items] | |||
Reversal of tax receivable agreement liability | 403,900 | ||
Founder, senior managing directors, employees and certain other related parties | |||
Related Party Transaction [Line Items] | |||
Net Income Attributable to Non-Controlling Interests | 113,900 | 79,700 | 49,000 |
Founder, senior managing directors, employees and certain other related parties | Consolidated Blackstone Funds | |||
Related Party Transaction [Line Items] | |||
Investments | 813,200 | 740,300 | |
Affiliates | |||
Related Party Transaction [Line Items] | |||
Management and Advisory Fees, Net from Affiliates | 161,200 | 185,800 | 210,700 |
Interest from loans to affiliates | $ 3,400 | $ 1,400 | $ 5,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Commitments And Contingencies [Line Items] | |||
Rent expense | $ 104.7 | $ 97.2 | $ 112 |
Leases | 8.9 | $ 11.4 | |
General partner capital funding | 2,400 | ||
Total investments at risk in respect of guarantees extended | $ 6 | ||
Contingent obligations currently anticipated to expire end | 2,028 | ||
Provision for cash clawback | $ 655.9 | ||
Contingent Obligations (Clawback) | $ 6,200 | ||
Maximum | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Operating lease expiration year | 2,030 | ||
Blackstone Holdings | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Loans held By employees for investment guaranteed | $ 179.2 | ||
Contingent Obligations (Clawback) | 5,700 | ||
Consolidated Blackstone Funds | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Funds signed investment commitments | 170.5 | ||
Consolidated Blackstone Funds | Portfolio Company Acquisition | |||
Schedule Of Commitments And Contingencies [Line Items] | |||
Signed investment commitments for portfolio company acquisitions in process of closing | $ 72.8 |
Aggregate Minimum Future Paymen
Aggregate Minimum Future Payments, Net of Sublease Income, Required on Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 77,802 |
2,019 | 72,441 |
2,020 | 67,727 |
2,021 | 77,615 |
2,022 | 76,520 |
Thereafter | 343,625 |
Total | $ 715,730 |
Clawback Obligations by Segment
Clawback Obligations by Segment (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Product Liability Contingency [Line Items] | |
Clawback obligations | $ 2,171 |
Credit Segment | |
Product Liability Contingency [Line Items] | |
Clawback obligations | 2,171 |
Credit Segment | Blackstone Holdings | |
Product Liability Contingency [Line Items] | |
Clawback obligations | 1,059 |
Credit Segment | Current And Former Blackstone Personnel | |
Product Liability Contingency [Line Items] | |
Clawback obligations | $ 1,112 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Percentage of partnership contribution in professionals pre-tax annual compensation | 2.00% | ||
Annual maximum contribution professionals are able to receive from Plan Partnerships | $ 1,600 | ||
Additional percentage of partnership contribution in professionals pre-tax annual compensation | 50.00% | ||
Administrative employee's | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Annual maximum contribution professionals are able to receive from Plan Partnerships | $ 5,000 | ||
Additional percentage of partnership contribution in professionals pre-tax annual compensation | 50.00% | ||
401(k) Plan | UNITED STATES | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Expenses incurred by partnership in connection with employee benefit plan | $ 3,700,000 | $ 2,100,000 | $ 2,000,000 |
Regulated Entities - Additional
Regulated Entities - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Regulatory Matters [Line Items] | |
Consolidated entities net assets restricted as to payment of cash dividends and advances to partnership | $ 37.2 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) - Segment | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of business segments | 4 | 4 |
Financial Data of Segments (Det
Financial Data of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | |||||||||||||
Total Management and Advisory Fees, Net | $ 2,729,056 | $ 2,442,975 | $ 2,542,505 | ||||||||||
Performance Fees Realized - Carried Interest | 3,439,754 | 1,474,830 | 3,205,290 | ||||||||||
Performance Fees Realized - Incentive Fees | 374,571 | 170,537 | 193,238 | ||||||||||
Performance Fees Unrealized - Carried Interest | (100,477) | 481,304 | (1,595,174) | ||||||||||
Performance Fees Unrealized - Incentive Fees | (8,692) | 49,660 | (6,688) | ||||||||||
Total Performance Fees | 3,705,156 | 2,176,331 | 1,796,666 | ||||||||||
Investment Income (Loss), Realized | 635,769 | 278,737 | 555,171 | ||||||||||
Investment Income (Loss), Unrealized | 42,605 | 77,314 | (350,529) | ||||||||||
Total Investment Income (Loss) | 678,374 | 356,051 | 204,642 | ||||||||||
Interest and Dividend Revenue | 139,696 | 95,724 | 94,957 | ||||||||||
Other | (133,229) | 54,753 | 7,782 | ||||||||||
Total Revenues | $ 1,882,198 | [1] | $ 1,746,777 | $ 1,549,355 | $ 1,940,723 | $ 1,569,369 | $ 1,431,685 | $ 1,192,426 | $ 932,354 | 7,119,053 | 5,125,834 | 4,646,552 | |
Compensation and Benefits Compensation | 1,442,485 | 1,335,408 | 1,726,191 | ||||||||||
Performance Fee Compensation - Realized Carried Interest | 1,226,561 | 455,954 | 793,801 | ||||||||||
Performance Fee Compensation - Realized Incentive Fees | 160,683 | 78,096 | 85,945 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 105,372 | 312,838 | (312,696) | ||||||||||
Performance Fee Compensation - Unrealized Incentive Fees | (4,286) | 21,134 | (2,490) | ||||||||||
Total Compensation and Benefits | 2,930,815 | 2,203,430 | 2,290,751 | ||||||||||
Interest Expense | 197,486 | 152,654 | 144,522 | ||||||||||
Total Expenses | 3,727,404 | 2,928,574 | 3,090,875 | ||||||||||
Economic Income | 4,117,101 | 2,382,010 | 1,814,748 | ||||||||||
Segment Assets | 34,428,910 | 26,403,337 | 34,428,910 | 26,403,337 | |||||||||
Operating Segments | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Management and Advisory Fees, Net Base Management Fees | 2,680,391 | 2,397,779 | 2,196,583 | ||||||||||
Transaction, Advisory and Other Fees, Net | 156,816 | 144,858 | 461,816 | ||||||||||
Management Fee Offsets | (66,416) | (79,644) | (93,494) | ||||||||||
Total Management and Advisory Fees, Net | 2,770,791 | 2,462,993 | 2,564,905 | ||||||||||
Performance Fees Realized - Carried Interest | 3,439,953 | 1,474,915 | 3,205,876 | ||||||||||
Performance Fees Realized - Incentive Fees | 377,299 | 172,101 | 194,746 | ||||||||||
Performance Fees Unrealized - Carried Interest | (100,651) | 481,241 | (1,595,296) | ||||||||||
Performance Fees Unrealized - Incentive Fees | (8,477) | 49,729 | (7,249) | ||||||||||
Total Performance Fees | 3,708,124 | 2,177,986 | 1,798,077 | ||||||||||
Investment Income (Loss), Realized | 436,194 | 199,869 | 418,808 | ||||||||||
Investment Income (Loss), Unrealized | (131,206) | 20,421 | (365,959) | ||||||||||
Total Investment Income (Loss) | 304,988 | 220,290 | 52,849 | ||||||||||
Interest and Dividend Revenue | 142,920 | 96,399 | 95,661 | ||||||||||
Other | (140,051) | 54,712 | 8,500 | ||||||||||
Total Revenues | 6,786,772 | 5,012,380 | 4,519,992 | ||||||||||
Compensation and Benefits Compensation | 1,203,116 | 1,083,216 | 1,189,219 | ||||||||||
Performance Fee Compensation - Realized Carried Interest | 1,226,561 | 455,954 | 793,800 | ||||||||||
Performance Fee Compensation - Realized Incentive Fees | 160,683 | 78,096 | 85,946 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 105,372 | 312,838 | (312,696) | ||||||||||
Performance Fee Compensation - Unrealized Incentive Fees | (4,286) | 21,134 | (2,490) | ||||||||||
Total Compensation and Benefits | 2,691,446 | 1,951,238 | 1,753,779 | ||||||||||
Interest Expense | 192,838 | 148,022 | 139,842 | ||||||||||
Other Operating Expenses | 424,866 | 431,836 | 448,575 | ||||||||||
Total Expenses | 3,309,150 | 2,531,096 | 2,342,196 | ||||||||||
Economic Income | 3,477,622 | 2,481,284 | 2,177,796 | ||||||||||
Segment Assets | 20,001,211 | 19,202,128 | 20,001,211 | 19,202,128 | |||||||||
Operating Segments | Private Equity Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Management and Advisory Fees, Net Base Management Fees | 724,818 | 555,593 | 502,640 | ||||||||||
Transaction, Advisory and Other Fees, Net | 57,624 | 39,283 | 46,819 | ||||||||||
Management Fee Offsets | (18,007) | (34,810) | (36,760) | ||||||||||
Total Management and Advisory Fees, Net | 764,435 | 560,066 | 512,699 | ||||||||||
Performance Fees Realized - Carried Interest | 1,157,188 | 245,268 | 1,474,987 | ||||||||||
Performance Fees Unrealized - Carried Interest | (13,214) | 425,691 | (717,955) | ||||||||||
Total Performance Fees | 1,143,974 | 670,959 | 757,032 | ||||||||||
Investment Income (Loss), Realized | 154,837 | 73,377 | 189,649 | ||||||||||
Investment Income (Loss), Unrealized | (51,417) | (4,593) | (116,338) | ||||||||||
Total Investment Income (Loss) | 103,420 | 68,784 | 73,311 | ||||||||||
Interest and Dividend Revenue | 32,838 | 25,364 | 22,685 | ||||||||||
Other | (35,662) | 20,458 | 5,854 | ||||||||||
Total Revenues | 2,009,005 | 1,345,631 | 1,371,581 | ||||||||||
Compensation and Benefits Compensation | 362,674 | 309,968 | 280,248 | ||||||||||
Performance Fee Compensation - Realized Carried Interest | 404,544 | 110,882 | 256,922 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 71,095 | 163,937 | (10,172) | ||||||||||
Total Compensation and Benefits | 838,313 | 584,787 | 526,998 | ||||||||||
Interest Expense | 51,129 | 49,126 | 45,068 | ||||||||||
Other Operating Expenses | 120,997 | 130,685 | 142,985 | ||||||||||
Total Expenses | 1,010,439 | 764,598 | 715,051 | ||||||||||
Economic Income | 998,566 | 581,033 | 656,530 | ||||||||||
Segment Assets | 6,369,491 | 6,493,236 | 6,369,491 | 6,493,236 | |||||||||
Operating Segments | Real Estate Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Management and Advisory Fees, Net Base Management Fees | 872,191 | 795,161 | 668,575 | ||||||||||
Transaction, Advisory and Other Fees, Net | 82,781 | 95,324 | 110,577 | ||||||||||
Management Fee Offsets | (15,934) | (7,322) | (26,840) | ||||||||||
Total Management and Advisory Fees, Net | 939,038 | 883,163 | 752,312 | ||||||||||
Performance Fees Realized - Carried Interest | 2,124,472 | 1,203,484 | 1,634,733 | ||||||||||
Performance Fees Realized - Incentive Fees | 96,402 | 29,625 | 17,153 | ||||||||||
Performance Fees Unrealized - Carried Interest | (146,476) | (150,997) | (680,542) | ||||||||||
Performance Fees Unrealized - Incentive Fees | 569 | 39,527 | 20,802 | ||||||||||
Total Performance Fees | 2,074,967 | 1,121,639 | 992,146 | ||||||||||
Investment Income (Loss), Realized | 255,903 | 122,712 | 235,582 | ||||||||||
Investment Income (Loss), Unrealized | (122,220) | (1,119) | (231,889) | ||||||||||
Total Investment Income (Loss) | 133,683 | 121,593 | 3,693 | ||||||||||
Interest and Dividend Revenue | 58,084 | 38,453 | 33,501 | ||||||||||
Other | (51,425) | 16,523 | (1,422) | ||||||||||
Total Revenues | 3,154,347 | 2,181,371 | 1,780,230 | ||||||||||
Compensation and Benefits Compensation | 427,211 | 385,352 | 358,381 | ||||||||||
Performance Fee Compensation - Realized Carried Interest | 743,011 | 332,622 | 484,037 | ||||||||||
Performance Fee Compensation - Realized Incentive Fees | 46,193 | 12,085 | 8,678 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 13,688 | 44,775 | (196,347) | ||||||||||
Performance Fee Compensation - Unrealized Incentive Fees | (31) | 16,872 | 8,817 | ||||||||||
Total Compensation and Benefits | 1,230,072 | 791,706 | 663,566 | ||||||||||
Interest Expense | 71,341 | 49,849 | 42,562 | ||||||||||
Other Operating Expenses | 136,042 | 137,581 | 125,513 | ||||||||||
Total Expenses | 1,437,455 | 979,136 | 831,641 | ||||||||||
Economic Income | 1,716,892 | 1,202,235 | 948,589 | ||||||||||
Segment Assets | 7,597,147 | 7,643,123 | 7,597,147 | 7,643,123 | |||||||||
Operating Segments | Hedge Fund Solutions Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Management and Advisory Fees, Net Base Management Fees | 516,048 | 521,736 | 524,386 | ||||||||||
Transaction, Advisory and Other Fees, Net | 2,980 | 1,061 | 317 | ||||||||||
Management Fee Offsets | (93) | 171 | |||||||||||
Total Management and Advisory Fees, Net | 518,935 | 522,797 | 524,874 | ||||||||||
Performance Fees Realized - Incentive Fees | 154,343 | 42,177 | 68,197 | ||||||||||
Performance Fees Unrealized - Carried Interest | 4,806 | 504 | 2,021 | ||||||||||
Performance Fees Unrealized - Incentive Fees | 2,965 | 785 | (8,084) | ||||||||||
Total Performance Fees | 162,114 | 43,466 | 62,134 | ||||||||||
Investment Income (Loss), Realized | 9,074 | (7,224) | (12,741) | ||||||||||
Investment Income (Loss), Unrealized | 41,012 | 15,462 | (1,435) | ||||||||||
Total Investment Income (Loss) | 50,086 | 8,238 | (14,176) | ||||||||||
Interest and Dividend Revenue | 21,525 | 13,864 | 11,194 | ||||||||||
Other | (24,380) | 8,157 | 200 | ||||||||||
Total Revenues | 728,280 | 596,522 | 584,226 | ||||||||||
Compensation and Benefits Compensation | 176,782 | 185,320 | 179,484 | ||||||||||
Performance Fee Compensation - Realized Incentive Fees | 53,348 | 19,397 | 27,155 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 1,786 | 181 | 823 | ||||||||||
Performance Fee Compensation - Unrealized Incentive Fees | 1,111 | 292 | (2,912) | ||||||||||
Total Compensation and Benefits | 233,027 | 205,190 | 204,550 | ||||||||||
Interest Expense | 31,618 | 24,524 | 21,049 | ||||||||||
Other Operating Expenses | 68,265 | 75,870 | 63,468 | ||||||||||
Total Expenses | 332,910 | 305,584 | 289,067 | ||||||||||
Economic Income | 395,370 | 290,938 | 295,159 | ||||||||||
Segment Assets | 2,107,502 | 2,160,688 | 2,107,502 | 2,160,688 | |||||||||
Operating Segments | Credit Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Management and Advisory Fees, Net Base Management Fees | 567,334 | 525,289 | 500,982 | ||||||||||
Transaction, Advisory and Other Fees, Net | 13,431 | 9,190 | 6,371 | ||||||||||
Management Fee Offsets | (32,382) | (37,512) | (30,065) | ||||||||||
Total Management and Advisory Fees, Net | 548,383 | 496,967 | 477,288 | ||||||||||
Performance Fees Realized - Carried Interest | 158,293 | 26,163 | 96,156 | ||||||||||
Performance Fees Realized - Incentive Fees | 126,554 | 100,299 | 109,396 | ||||||||||
Performance Fees Unrealized - Carried Interest | 54,233 | 206,043 | (198,820) | ||||||||||
Performance Fees Unrealized - Incentive Fees | (12,011) | 9,417 | (19,967) | ||||||||||
Total Performance Fees | 327,069 | 341,922 | (13,235) | ||||||||||
Investment Income (Loss), Realized | 16,380 | 11,004 | 7,186 | ||||||||||
Investment Income (Loss), Unrealized | 1,419 | 10,671 | (16,258) | ||||||||||
Total Investment Income (Loss) | 17,799 | 21,675 | (9,072) | ||||||||||
Interest and Dividend Revenue | 30,473 | 18,718 | 18,268 | ||||||||||
Other | (28,584) | 9,574 | 5,171 | ||||||||||
Total Revenues | 895,140 | 888,856 | 478,420 | ||||||||||
Compensation and Benefits Compensation | 236,449 | 202,576 | 190,189 | ||||||||||
Performance Fee Compensation - Realized Carried Interest | 79,006 | 12,450 | 52,841 | ||||||||||
Performance Fee Compensation - Realized Incentive Fees | 61,142 | 46,614 | 50,113 | ||||||||||
Performance Fee Compensation - Unrealized Carried Interest | 18,803 | 103,945 | (107,000) | ||||||||||
Performance Fee Compensation - Unrealized Incentive Fees | (5,366) | 3,970 | (8,395) | ||||||||||
Total Compensation and Benefits | 390,034 | 369,555 | 177,748 | ||||||||||
Interest Expense | 38,750 | 24,523 | 21,207 | ||||||||||
Other Operating Expenses | 99,562 | 87,700 | 66,879 | ||||||||||
Total Expenses | 528,346 | 481,778 | 265,834 | ||||||||||
Economic Income | 366,794 | 407,078 | 212,586 | ||||||||||
Segment Assets | $ 3,927,071 | $ 2,905,081 | $ 3,927,071 | $ 2,905,081 | |||||||||
Operating Segments | Financial Advisory Segment | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Transaction, Advisory and Other Fees, Net | 297,732 | ||||||||||||
Total Management and Advisory Fees, Net | 297,732 | ||||||||||||
Investment Income (Loss), Realized | (868) | ||||||||||||
Investment Income (Loss), Unrealized | (39) | ||||||||||||
Total Investment Income (Loss) | (907) | ||||||||||||
Interest and Dividend Revenue | 10,013 | ||||||||||||
Other | (1,303) | ||||||||||||
Total Revenues | 305,535 | ||||||||||||
Compensation and Benefits Compensation | 180,917 | ||||||||||||
Total Compensation and Benefits | 180,917 | ||||||||||||
Interest Expense | 9,956 | ||||||||||||
Other Operating Expenses | 49,730 | ||||||||||||
Total Expenses | 240,603 | ||||||||||||
Economic Income | $ 64,932 | ||||||||||||
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. |
Reconciliation of Total Segment
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | $ 1,882,198 | [1] | $ 1,746,777 | $ 1,549,355 | $ 1,940,723 | $ 1,569,369 | $ 1,431,685 | $ 1,192,426 | $ 932,354 | $ 7,119,053 | $ 5,125,834 | $ 4,646,552 | |||
Expenses | 3,727,404 | 2,928,574 | 3,090,875 | ||||||||||||
Other Income | 485,818 | [1] | $ 63,448 | $ 110,054 | $ 66,132 | 73,510 | $ 61,395 | $ 30,703 | $ 19,142 | 725,452 | 184,750 | 259,071 | |||
Economic Income | 4,117,101 | 2,382,010 | 1,814,748 | ||||||||||||
Total Assets | 34,428,910 | 26,403,337 | 34,428,910 | 26,403,337 | |||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | 6,786,772 | 5,012,380 | 4,519,992 | ||||||||||||
Expenses | 3,309,150 | 2,531,096 | 2,342,196 | ||||||||||||
Economic Income | 3,477,622 | 2,481,284 | 2,177,796 | ||||||||||||
Total Assets | 20,001,211 | 19,202,128 | 20,001,211 | 19,202,128 | |||||||||||
Consolidation Adjustments and Reconciling Items | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Revenues | [3] | 332,281 | 113,454 | 126,560 | |||||||||||
Expenses | [4] | 418,254 | 397,478 | 748,679 | |||||||||||
Other Income | [5] | 725,452 | 184,750 | 259,071 | |||||||||||
Economic Income | 639,479 | [6] | (99,274) | $ (363,048) | |||||||||||
Total Assets | [7] | $ 14,427,699 | $ 7,201,209 | $ 14,427,699 | $ 7,201,209 | ||||||||||
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. | ||||||||||||||
[3] | The Revenues adjustment represents management and performance fees earned from Blackstone Funds that were eliminated in consolidation to arrive at Blackstone consolidated revenues and non-segment related Investment Income (Loss), which is included in Blackstone consolidated revenues. | ||||||||||||||
[4] | The Expenses adjustment represents the addition of expenses of the consolidated Blackstone Funds to the Blackstone unconsolidated expenses, amortization of intangibles and expenses related to transaction-related equity-based compensation. | ||||||||||||||
[5] | The Other Income adjustment results from the following: Year Ended December 31, 2017 2016 2015 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (329,871 ) $ (65,849 ) $ (100,657 ) Fund Expenses Added in Consolidation 137,433 7,329 48,239 Income Associated with Non-Controlling Interests of Consolidated Entities 511,245 250,129 231,045 Transaction-Related Other Income (Loss) 406,645 (6,859 ) 80,444 Total Consolidation Adjustments and Reconciling Items $ 725,452 $ 184,750 $ 259,071 | ||||||||||||||
[6] | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2017 2016 2015 Economic Income $ 3,477,622 $ 2,481,284 $ 2,177,796 Adjustments Amortization of Intangibles (48,297 ) (84,466 ) (104,530 ) Transaction-Related Charges 176,531 (264,937 ) (489,563 ) Income Associated with Non-Controlling Interests of Consolidated Entities 511,245 250,129 231,045 Total Consolidation Adjustments and Reconciling Items 639,479 (99,274 ) (363,048 ) Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 | ||||||||||||||
[7] | The Total Assets adjustment represents the addition of assets of the consolidated Blackstone Funds to the Blackstone unconsolidated assets to arrive at Blackstone consolidated assets. |
Reconciliation of Total Segm115
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Segment Reporting Information [Line Items] | |||||||||||||||
Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss | $ (329,871) | $ (65,849) | $ (100,657) | ||||||||||||
Amortization of Intangibles | (48,297) | (84,466) | (104,530) | ||||||||||||
Fund Expenses Added in Consolidation | 137,433 | 7,329 | 48,239 | ||||||||||||
Transaction-Related Charges | 176,531 | (264,937) | (489,563) | ||||||||||||
Income Associated with Non-Controlling Interests of Consolidated Entities | 511,245 | 250,129 | 231,045 | ||||||||||||
Transaction-Related Other Income (Loss) | 406,645 | (6,859) | 80,444 | ||||||||||||
Total Other Income | $ 485,818 | $ 63,448 | $ 110,054 | $ 66,132 | $ 73,510 | $ 61,395 | $ 30,703 | $ 19,142 | 725,452 | 184,750 | 259,071 | ||||
Economic Income | 4,117,101 | 2,382,010 | 1,814,748 | ||||||||||||
Operating Segments | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Economic Income | 3,477,622 | 2,481,284 | 2,177,796 | ||||||||||||
Consolidation Adjustments and Reconciling Items | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Total Other Income | [3] | 725,452 | 184,750 | 259,071 | |||||||||||
Economic Income | $ 639,479 | [4] | $ (99,274) | $ (363,048) | |||||||||||
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | ||||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. | ||||||||||||||
[3] | The Other Income adjustment results from the following: Year Ended December 31, 2017 2016 2015 Fund Management Fees and Performance Fees Eliminated in Consolidation and Transactional Investment Loss $ (329,871 ) $ (65,849 ) $ (100,657 ) Fund Expenses Added in Consolidation 137,433 7,329 48,239 Income Associated with Non-Controlling Interests of Consolidated Entities 511,245 250,129 231,045 Transaction-Related Other Income (Loss) 406,645 (6,859 ) 80,444 Total Consolidation Adjustments and Reconciling Items $ 725,452 $ 184,750 $ 259,071 | ||||||||||||||
[4] | The reconciliation of Economic Income to Income Before Provision for Taxes as reported in the Consolidated Statements of Operations consists of the following: Year Ended December 31, 2017 2016 2015 Economic Income $ 3,477,622 $ 2,481,284 $ 2,177,796 Adjustments Amortization of Intangibles (48,297 ) (84,466 ) (104,530 ) Transaction-Related Charges 176,531 (264,937 ) (489,563 ) Income Associated with Non-Controlling Interests of Consolidated Entities 511,245 250,129 231,045 Total Consolidation Adjustments and Reconciling Items 639,479 (99,274 ) (363,048 ) Income Before Provision for Taxes $ 4,117,101 $ 2,382,010 $ 1,814,748 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2017 | [1] | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | [2] | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||||||||||||
Revenues | $ 1,882,198 | $ 1,746,777 | $ 1,549,355 | $ 1,940,723 | $ 1,569,369 | $ 1,431,685 | $ 1,192,426 | $ 932,354 | $ 7,119,053 | $ 5,125,834 | $ 4,646,552 | |||||||||||
Expenses | 1,008,882 | 903,760 | 885,112 | 929,650 | 824,484 | 773,777 | 712,603 | 617,710 | (3,727,404) | (2,928,574) | (3,090,875) | |||||||||||
Other Income | 485,818 | 63,448 | 110,054 | 66,132 | 73,510 | 61,395 | 30,703 | 19,142 | 725,452 | 184,750 | 259,071 | |||||||||||
Income Before Provision for Taxes | 1,359,134 | 906,465 | 774,297 | 1,077,205 | 818,395 | 719,303 | 510,526 | 333,786 | 4,117,101 | 2,382,010 | 1,814,748 | |||||||||||
Net Income | 762,544 | 846,953 | 744,689 | 1,019,768 | 770,308 | 691,589 | 463,111 | 324,640 | 3,373,954 | 2,249,648 | 1,624,350 | |||||||||||
Net Income Attributable to The Blackstone Group L.P. | $ 281,588 | $ 384,642 | $ 342,775 | $ 461,825 | $ 367,951 | $ 312,905 | $ 198,626 | $ 159,753 | $ 1,470,830 | $ 1,039,235 | $ 709,789 | |||||||||||
Net Income Per Common Unit | ||||||||||||||||||||||
Common Units, Basic | $ 0.42 | $ 0.58 | $ 0.52 | $ 0.70 | $ 0.56 | $ 0.48 | $ 0.31 | $ 0.23 | $ 2.21 | $ 1.60 | $ 1.12 | |||||||||||
Common Units, Diluted | 0.42 | 0.56 | 0.51 | 0.69 | 0.55 | 0.47 | 0.30 | 0.23 | 2.21 | 1.56 | 1.04 | |||||||||||
Distributions Declared | $ 0.44 | [3] | $ 0.54 | [3] | $ 0.87 | [3] | $ 0.47 | [3] | $ 0.41 | [3] | $ 0.36 | [3] | $ 0.28 | [3] | $ 0.61 | [3] | $ 2.32 | [4] | $ 1.66 | [4] | $ 2.90 | [4] |
[1] | The Tax Reform Bill enacted in the three months ended December 31, 2017 resulted in a reduction to the liability under the Tax Receivable Agreement of $403.9 million which is included in Other Income and a decrease in the deferred tax assets of $500.6 million which is a component of the Provision for Taxes. See Note 14. "Income Taxes". | |||||||||||||||||||||
[2] | Blackstone adopted new GAAP stock compensation guidance for the three months ended June 30, 2016 and applied a modified retrospective approach as of January 1, 2016. Adoption changed Provision for Taxes, Net Income, Net Income Attributable to The Blackstone Group L.P. and the number of GAAP Weighted Average Units Outstanding - Diluted for the quarter ended March 31, 2016. Such amounts have been recast here from the amounts originally reported for the quarter ended March 31, 2016. | |||||||||||||||||||||
[3] | Distributions declared reflects the calendar date of the declaration of each distribution. | |||||||||||||||||||||
[4] | Distributions declared reflects the calendar date of the declaration for each distribution. The fourth quarter distribution, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
Quarterly Financial Data (Paren
Quarterly Financial Data (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2016 | |
Quarterly Financial Information [Line Items] | ||||
Reduction of Tax Receivable Agreement Liability | $ 403,855 | $ 82,707 | ||
Reduction in net deferred tax assets | $ 725,970 | 725,970 | $ 1,286,469 | |
Tax Cuts and Jobs Act | ||||
Quarterly Financial Information [Line Items] | ||||
Reduction of Tax Receivable Agreement Liability | 403,900 | 403,900 | ||
Reduction in net deferred tax assets | $ 500,600 | $ 500,600 |