Blackstone (BX) 8-K Blackstone Reports First Quarter 2018 Results

Exhibit 99.1

Blackstone Reports First Quarter 2018 Results

New York, April 19, 2018:Blackstone (NYSE:BX) today reported its first quarter 2018 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Amid declining global markets and a sharp increase in volatility, Blackstone continued to protect and grow our investors’ capital in the first quarter, delivering strong outperformance across strategies. Investors in the institutional, retail and insurer channels are allocating more capital to our firm, resulting in more than $18 billion of inflows during the quarter and driving our total assets under management to a new record of $450 billion, up 22% year over year.”

Mr. Schwarzman also said, “Our financial strength continues to build, and our A+ rated balance sheet gives us the flexibility and firepower to enhance our capital return to unitholders. Today I am pleased to announce we have increased our unit repurchase authorization to $1 billion. We also intend to make a special distribution of $0.30 per unit in 2018 representing a portion of the proceeds received in connection with the conclusion of our direct lendingsub-advisory relationship.”

Blackstone issued a full detailed presentation of its first quarter 2018 results, which can be viewed atwww.blackstone.com.

Distribution

Blackstone has declared a quarterly distribution of $0.35 per common unit to record holders of common units at the close of business on April 30, 2018. This distribution will be paid on May 7, 2018.

Quarterly Investor Call Details

Blackstone will host a conference call on April 19, 2018 at 11:00 a.m. ET to discuss first quarter 2018 results. The conference call can be accessed via the Investors section of Blackstone’s website atwww.blackstone.com or by dialing+1 (877) 391-6747 (U.S. domestic) or+1 (617) 597-9291 (international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available on www.blackstone.com or by dialing+1 (888) 286-8010 (U.S. domestic) or+1 (617) 801-6888 (international), pass code 994 507 16#.

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $450 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity,non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available atwww.blackstone.com. Follow Blackstone on Twitter@Blackstone.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations, financial performance and unit repurchase and distribution activities. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form10-K for the fiscal year ended December 31, 2017, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This release does not constitute an offer of any Blackstone Fund.

Investor and Media Relations Contacts

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

2

April 19, 2018

Blackstone’s First Quarter 2018 Earnings

Blackstone

1

Blackstone’s First Quarter 2018 GAAP Results

GAAP

Net

Income

was

$842

million

for

the

quarter,

and

$3.2

billion

over

the

last

twelve

months

(“LTM”).

GAAP

Net

Income

Attributable

to

The

Blackstone

Group

L.P.

was

$368

million

for

the

quarter

and

$1.4

billion

over

the

LTM.

n/m

=

not

meaningful.

Effective

January

1,

2018,

Blackstone

adopted

new

GAAP

guidance

regarding

revenue

recognition

(see

page

2).

All

prior

periods

have

been

conformed

to

the

new

guidance. Please

see Blackstone’s 4Q’17 Supplemental Financial Data (Updated) available at ir.blackstone.com for additional historical periods.

% Change

% Change

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

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Revenues

Management and Advisory Fees, Net

645,484

$              

728,849

$              

13%

2,497,356

$           

2,834,687

$           

14%

Incentive Fees

46,511

12,566

(73)%

168,432

208,569

24%

Investment Income (Loss)

Performance Allocations

Realized

1,111,905

269,640

(76)%

2,376,023

2,729,546

15%

Unrealized

(124,621)

628,089

n/m

348,981

647,237

85%

Principal Investment Income

Realized

251,344

42,145

(83)%

542,082

426,570

(21)%

Unrealized

(40,188)

111,774

n/m

33,633

194,567

479%

Total Investment Income

1,198,440

1,051,648

(12)%

3,300,719

3,997,920

21%

Interest and Dividend Revenue

28,495

35,385

24%

101,144

146,586

45%

Other

(4,212)

(59,317)

n/m

56,153

(188,334)

n/m

Total Revenues

1,914,718

1,769,131

(8)%

6,123,804

6,999,428

14%

Expenses

Compensation and Benefits

Compensation

351,589

389,403

11%

1,340,994

1,480,299

10%

Incentive Fee Compensation

22,465

6,662

(70)%

77,601

89,476

15%

Performance Allocations Compensation

Realized

366,478

112,062

(69)%

772,766

1,027,549

33%

Unrealized

7,533

254,435

n/m

306,860

350,696

14%

Total Compensation and Benefits

748,065

762,562

2%

2,498,221

2,948,020

18%

General, Administrative and Other

109,386

126,713

16%

524,453

505,909

(4)%

Interest Expense

40,246

38,671

(4)%

155,544

195,911

26%

Fund Expenses

24,076

54,985

128%

71,028

163,696

130%

Total Expenses

921,773

982,931

7%

3,249,246

3,813,536

17%

Other Income

Reduction of Tax Receivable Agreement Liability

-

-

n/m

-

403,855

n/m

Net Gains from Fund Investment Activities

66,132

110,599

67%

231,740

366,064

58%

Income Before Provision for Taxes

1,059,077

$           

896,799

$              

(15)%

3,106,298

$           

3,955,811

$           

27%

Provision for Taxes

57,437

54,495

(5)%

180,653

740,205

310%

Net Income

1,001,640

$           

842,304

$              

(16)%

2,925,645

$           

3,215,606

$           

10%

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

2,000

(1,275)

n/m

12,378

10,531

(15)%

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

138,685

155,499

12%

344,751

514,253

49%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

409,046

320,208

(22)%

1,237,667

1,303,485

5%

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

451,909

$              

367,872

$              

(19)%

1,330,849

$           

1,387,337

$           

4%

Net Income per Common Unit, Basic

0.68

$                    

0.55

$                    

(19)%

2.04

$                    

2.07

$                    

1%

Net Income per Common Unit, Diluted

0.68

$                    

0.53

$                    

(22)%

2.00

$                    

2.07

$                    

3%

Blackstone

2

Revenue Recognition: New GAAP Guidance

Effective

January

1,

2018,

Blackstone

adopted

new

GAAP

guidance

on

revenue

recognition

and

implemented

a

change

in

accounting

principle

related

to

Carried

Interest

and

Incentive

Allocations.

•

The

new

GAAP

guidance

resulted

in

changes

to

the

recognition

of

contractual

Incentive

Fees

and

their

separate

presentation

in

our

results.

•

Carried

Interest

and

Incentive

Allocations

will

now

be

accounted

for

under

the

GAAP

guidance

for

equity

method

investments

and

be

presented

as

Investment

Income

–

Performance

Allocations.

Blackstone

adopted

the

new

revenue

guidance

on

a

full

retrospective

basis

and

all

prior

periods

have

been

conformed

to

the

new

guidance.

•

Adoption

of

the

new

guidance

resulted

in

changes

to

GAAP

Net

Income

Attributable

to

The

Blackstone

Group

L.P.

and

Economic

Income

which

were

not

material.

•

The

new

guidance

resulted

in

no

change

to

Blackstone’s

non-GAAP

measures

of

Fee

Related

Earnings

and

Distributable

Earnings.

•

Performance

Revenues

in

our

segment

results

and

non-GAAP

measures

collectively

refer

to

Realized

Incentive

Fees

and

Performance

Allocations.

Blackstone

3

Blackstone’s First Quarter 2018 Segment Highlights

Economic

Net

Income

(“ENI”)

was

$792

million

($0.65/unit)

in

the

quarter,

on

$1.7

billion

of

Total

Segment

Revenues.

•

ENI

was

$3.2

billion

($2.65/unit)

for

the

LTM,

up

7%

year-over-year,

on

$6.6

billion

of

Total

Segment

Revenues.

Distributable

Earnings

(“DE”)

was

$502

million

($0.41/unit)

in

the

quarter,

driven

by

$282

million

of

Realized

Performance

Revenues,

comprised

of

Realized

Incentive

Fees

and

Realized

Performance

Allocations.

•

DE

was

$3.1

billion

($2.56/unit)

for

the

LTM

on

$2.9

billion

of

Realized

Performance

Revenues.

Fee

Related

Earnings

(“FRE”)

was

$333

million

in

the

quarter,

up

14%

year-over-year,

on

$736

million

of

Net

Management

and

Advisory

Fees.

•

FRE

was

$1.3

billion

for

the

LTM,

up

20%

year-over-year,

on

$2.9

billion

of

Net

Management

and

Advisory

Fees.

Total

Assets

Under

Management

(“AUM”)

grew

to

a

record

$449.6

billion,

up

22%

year-over-year,

through

a

combination

of

continued

fundraising

and

fund

appreciation.

•

Inflows

were

$18.2

billion

in

the

quarter,

bringing

LTM

inflows

to

a

record

$112.2

billion.

•

Fee-Earning

AUM

increased

23%

year-over-year

to

$344.7

billion.

Quarterly

and

LTM

capital

deployed

were

$10.1

billion

and

$49.0

billion,

respectively.

Blackstone

increased

its

unit

repurchase

authorization

to

$1

billion

and

announced

$0.30

per

unit

special

distribution

to

be

paid

out

over

the

next

three

quarters.

Blackstone

declared

a

first

quarter

distribution

of

$0.35

per

common

unit

payable

on

May

7,

2018.

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

The

Blackstone Group L.P.

Blackstone

4

Additional Highlights

$1

Billion

Unit

Repurchase

Authorization

Our

Board

of

Directors

has

authorized

the

repurchase

of

up

to

$1

billion

of

common

units

and

Blackstone

Holdings

partnership

units,

nearly

tripling

the

$335.8

million

of

repurchase

authorization

remaining

under

the

prior

authorization.

While

the

repurchase

authorization

is

broad-based,

Blackstone

anticipates

unit

repurchases

will

largely

be

used

to

offset

the

dilutive

effect

from

annual

equity

awards.

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

units

repurchased

will

depend

on

a

variety

of

factors,

including

legal

requirements,

price

and

economic

and

market

conditions.

The

unit

repurchase

program

may

be

changed,

suspended

or

discontinued

at

any

time

and

does

not

have

a

specified

expiration

date.

Special

Cash

Distribution

In

April

2018,

Blackstone

received

approximately

$580

million

of

pre-tax

proceeds

in

connection

with

concluding

GSO’s

investment

sub-advisory

relationship

with

FS

Investments.

Blackstone

intends

to

distribute

a

portion

of

the

after-tax

proceeds

to

unitholders

–

resulting

in

an

anticipated

incremental

$0.30

per

unit

to

be

distributed

over

the

next

three

quarters.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Management and Advisory Fees, Net

649,581

$        

736,044

$        

13%

2,499,373

$     

2,857,254

$     

14%

Performance Revenues

1,034,381

910,547

(12)%

2,896,103

3,587,986

24%

Principal Investment Income

103,959

42,671

(59)%

350,899

243,700

(31)%

Interest, Dividend and Other Revenue

20,209

(24,509)

n/m

154,422

(41,849)

n/m

Total Revenues

1,808,130

1,664,753

(8)%

5,900,797

6,647,091

13%

Total Expenses

821,415

854,816

4%

2,821,246

3,345,259

19%

Taxes

18,805

18,228

(3)%

94,274

100,954

7%

Economic Net Income

967,910

$        

791,709

$        

(18)%

2,985,277

$     

3,200,878

$     

7%

ENI per Unit

0.81

$              

0.65

$              

(20)%

2.49

$              

2.65

$              

6%

Fee Related Earnings

290,742

$        

332,873

$        

14%

1,065,763

$     

1,278,350

$     

20%

FRE per Unit

0.24

$              

0.28

$              

17%

0.90

$              

1.07

$              

19%

Distributable Earnings

1,230,138

$     

502,055

$        

(59)%

2,957,498

$     

3,148,132

$     

6%

DE per Common Unit

1.02

$              

0.41

$              

(60)%

2.42

$              

2.56

$              

6%

Total AUM

368,196,917

$

449,613,826

$

22%

368,196,917

$

449,613,826

$

22%

Fee-Earning AUM

280,215,551

$

344,650,797

$

23%

280,215,551

$

344,650,797

$

23%

Blackstone’s First Quarter 2018 Segment Earnings

Performance Revenues collectively refer to Realized Incentive Fees and Performance Allocations.

Blackstone

5

Blackstone

6

6.4%

1Q’18 Increase in Corporate

Private Equity Carrying Value

Private Equity

$1.0 billion

1Q’18 Realizations

$111.4

billion

Total AUM up 12% YoY

Corporate

Private

Equity

carrying

value

increased

6.4%

in

the

quarter,

driven

by

strong

appreciation

in

the

private

portfolio.

Invested

$4.0

billion

in

the

quarter,

including

a

new

Corporate

Private

Equity

investment

in

Paysafe,

as

well

as

deployments

in

Tactical

Opportunities

and

Strategic

Partners.

•

Landmark

Thomson

Reuters

investment

was

committed

but

not

yet

deployed

during

the

quarter.

Realizations

of

$1.0

billion

in

the

quarter

were

driven

by

activity

across

Corporate

Private

Equity,

Strategic

Partners

and

Tactical

Opportunities,

bringing

LTM

realizations

to

$10.6

billion.

Completed

an

initial

public

offering

of

BCP

VI’s

largest

investment,

Gates

Industrial,

on

January

25,

2018.

Total

AUM

inflows

of

$3.5

billion

and

portfolio

appreciation

in

the

quarter

drove

Total

AUM

to

$111.4

billion.

•

Fee-Earning

AUM

increased

6%

year-over-year

to

$72.4

billion.

% Change

% Change

(Dollars in Thousands)

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Management and Advisory Fees, Net

180,692

$       

190,862

$       

6%

608,038

$       

774,605

$       

27%

Performance Revenues

398,203

474,439

19%

965,005

1,220,210

26%

Principal Investment Income

40,772

23,706

(42)%

109,473

86,354

(21)%

Interest, Dividend and Other Revenue

4,861

(7,865)

n/m

46,011

(15,550)

n/m

Total Revenues

624,528

681,142

9%

1,728,527

2,065,619

20%

Compensation

83,603

99,729

19%

313,297

378,800

21%

Performance Compensation

142,277

211,847

49%

392,373

545,209

39%

Interest Expense

10,427

10,133

(3)%

47,440

50,835

7%

Other Operating Expenses

27,761

31,151

12%

126,466

124,387

(2)%

Total Expenses

264,068

352,860

34%

879,576

1,099,231

25%

Economic Income

360,460

$       

328,282

$       

(9)%

848,951

$       

966,388

$       

14%

Total AUM

99,707,057

$ 

111,414,214

$

12%

99,707,057

$ 

111,414,214

$

12%

Fee-Earning AUM

68,227,286

$ 

72,398,415

$ 

6%

68,227,286

$ 

72,398,415

$ 

6%

Blackstone

7

% Change

% Change

(Dollars in Thousands)

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Management Fees, Net

215,608

$       

247,946

$       

15%

866,665

$       

971,376

$       

12%

Performance Revenues

514,709

382,126

(26)%

1,433,414

1,945,102

36%

Principal Investment Income

35,726

17,377

(51)%

146,481

115,334

(21)%

Interest, Dividend and Other Revenue

8,944

(6,369)

n/m

56,298

(8,654)

n/m

Total Revenues

774,987

641,080

(17)%

2,502,858

3,023,158

21%

Compensation

102,702

112,824

10%

387,476

437,333

13%

Performance Compensation

199,081

135,563

(32)%

528,368

741,118

40%

Interest Expense

14,635

14,149

(3)%

52,194

70,855

36%

Other Operating Expenses

30,864

29,417

(5)%

136,621

134,595

(1)%

Total Expenses

347,282

291,953

(16)%

1,104,659

1,383,901

25%

Economic Income

427,705

$       

349,127

$       

(18)%

1,398,199

$    

1,639,257

$    

17%

Total AUM

102,070,930

$

119,575,884

$

17%

102,070,930

$

119,575,884

$

17%

Fee-Earning AUM

71,904,741

$ 

87,284,578

$ 

21%

71,904,741

$ 

87,284,578

$ 

21%

Real Estate

3.5%

1Q’18 Increase in Opportunistic

Funds’ Carrying Value

$119.6 billion

Total AUM up 17% YoY

$2.7 billion

1Q’18 Realizations

Opportunistic

funds’

carrying

value

increased

3.5%

during

the

quarter

primarily

driven

by

gains

in

private

investment

values;

core+

funds’

carrying

values

increased

3.4%

in

the

quarter.

Active

investing

quarter

with

$6.7

billion

invested

or

committed,

with

50%

outside

of

North

America.

•

Includes

$1.3

billion

for

the

purchase

of

a

majority

stake

in

the

Banco

Popular

Spanish

real

estate

portfolio,

along

with

a

commitment

to

purchase

a

public

Canadian

industrial

REIT

in

core+

expected

to

close

in

the

second

quarter

of

2018.

Realizations

of

$2.7

billion

in

the

quarter

driven

by

proceeds

from

Invitation

Homes

and

BioMed

Realty

Trust.

Total

AUM

up

17%

and

Fee-Earning

AUM

up

21%

year-over-year

to

$119.6

billion

and

$87.3

billion,

respectively.

•

Total

AUM

inflows

of

$3.6

billion

in

the

quarter

driven

by

fundraising

across

the

core+

platform,

including

$691

million

in

BPP

Europe

and

co-invest,

$623

million

in

BREIT

and

$460

million

in

BPP

U.S.

•

Global

core+

Total

AUM

up

87%

year-over-year

to

$29.7

billion,

four

years

after

launching

the

business.

Carrying value for core+ funds excludes BREIT.

Blackstone

8

Hedge Fund Solutions

1.3%

1Q’18 BPS Composite Gross Return

$3.9

billion

1Q’18 Total AUM Inflows

$78.7

billion

Total AUM up 7% YoY

The

BPS

Composite

gross

return

was

1.3%

in

the

quarter

(1.1%

net),

and

6.7%

for

the

LTM

(5.8%

net),

despite

the

volatility

in

the

markets,

continuing

positive

momentum

in

returns

for

hedge

fund

strategies.

Total

AUM

inflows

of

$3.9

billion

during

the

quarter

and

$12.4

billion

for

the

LTM,

driven

by

customized

solutions

and

individual

investor

and

specialized

solutions.

•

Net

inflows

of

$2.8

billion

represent

the

largest

quarterly

amount

since

2014.

•

April

1

subscriptions

of

$698

million

are

not

yet

included

in

Total

AUM.

Total

AUM

increased

7%

year-over-year

to

a

record

$78.7

billion,

driven

primarily

by

appreciation

across

strategies.

•

Total

AUM

for

BAAM’s

individual

investor

solutions

platform

reached

$9.0

billion,

up

34%

year-over-year.

•

Fee-Earning

AUM

up

7%

year-over-year

to

$73.6

billion.

The BPS Composite gross and net returns are based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM's individual investor solutions (liquid alternatives), ventures (seeding and minority interests), strategic opportunities (co-

invests), and advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in

liquidation and non fee-paying assets (net returns only) are also excluded. The funds/accounts that comprise the BPS

Composite

are

not

managed

within

a

single

fund

or

account

and

are

managed

with

different

mandates.

There

is

no

guarantee

that

BAAM

would

have

made

the

same

mix

of

investments

in

a

stand-alone

fund/account.

The

BPS

Composite

is

not

an

investible

product and, as such, the performance of the Composite does not represent the performance of an actual fund or account.

% Change

% Change

(Dollars in Thousands)

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Management Fees, Net

128,727

$       

129,573

$       

1%

520,823

$       

519,781

$       

(0)%

Performance Revenues

33,499

15,238

(55)%

75,624

144,426

91%

Principal Investment Income

17,661

1,080

(94)%

42,935

33,505

(22)%

Interest, Dividend and Other Revenue

2,387

(5,476)

n/m

22,721

(10,718)

n/m

Total Revenues

182,274

140,415

(23)%

662,103

686,994

4%

Compensation

47,604

50,300

6%

178,755

179,478

0%

Performance Compensation

13,739

8,635

(37)%

32,232

51,361

59%

Interest Expense

6,543

6,271

(4)%

25,020

31,346

25%

Other Operating Expenses

16,379

18,785

15%

74,142

70,671

(5)%

Total Expenses

84,265

83,991

(0)%

310,149

332,856

7%

Economic Income

98,009

$         

56,424

$         

(42)%

351,954

$       

354,138

$       

1%

Total AUM

73,303,381

$ 

78,657,551

$ 

7%

73,303,381

$ 

78,657,551

$ 

7%

Fee-Earning AUM

68,812,528

$ 

73,570,498

$ 

7%

68,812,528

$ 

73,570,498

$ 

7%

Blackstone

9

Credit

$7.1 billion

1Q’18 Total AUM Inflows

$140.0

billion

Total AUM up 50% YoY

1Q’18 Composite

Gross Returns

Performing Credit

3.2%

Distressed

(0.3)%

Composite

gross

returns

of

3.2%

for

Performing

Credit

and

(0.3)%

for

Distressed

Strategies

for

the

quarter.

Investment

pace

remained

strong

with

$1.7

billion

of

capital

deployed

or

committed

during

the

quarter

and

$9.3

billion

over

the

LTM,

predominantly

capitalizing

on

distressed

and

European

opportunities.

Continued

strong

realization

activity

across

funds

of

$2.5

billion

in

the

quarter

and

$11.7

billion

for

the

LTM.

Total

AUM

increased

50%

year-over-year

to

a

record

$140.0

billion,

driven

by

inflows

from

the

new

Blackstone

Insurance

Solutions

platform

launch

and

Harvest

acquisition,

both

of

which

occurred

in

the

fourth

quarter

of

last

year.

•

Total

AUM

for

Blackstone

Insurance

Solutions

reached

$24.1

billion

at

quarter

end,

including

$1.0

billion

invested

in

other

Blackstone

products.

•

Raised

$678

million

of

capital

in

the

quarter

for

the

successor

flagship

distressed

fund,

with

the

final

close

occurring

in

the

second

quarter

bringing

the

total

fund

size

to

$7.5

billion.

•

Concluded

the

first

close

for

a

successor

credit

alpha

fund

for

$476

million.

•

Launched

ten

CLOs

(six

U.S.

and

four

European)

in

the

LTM

totaling

$6.8

billion,

including

$1.6

billion

in

the

first

quarter.

% Change

% Change

(Dollars in Thousands)

1Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Management Fees, Net

124,554

$       

167,663

$       

35%

503,847

$       

591,492

$       

17%

Performance Revenues

87,970

38,744

(56)%

422,060

278,248

(34)%

Principal Investment Income

9,800

508

(95)%

52,010

8,507

(84)%

Interest, Dividend and Other Revenue

4,017

(4,799)

n/m

29,392

(6,927)

n/m

Total Revenues

226,341

202,116

(11)%

1,007,309

871,320

(14)%

Compensation

55,118

73,474

33%

205,312

254,805

24%

Performance Compensation

41,379

17,114

(59)%

204,254

130,033

(36)%

Interest Expense

7,845

7,685

(2)%

26,321

38,590

47%

Other Operating Expenses

21,458

27,739

29%

90,975

105,843

16%

Total Expenses

125,800

126,012

0%

526,862

529,271

0%

Economic Income

100,541

$       

76,104

$         

(24)%

480,447

$       

342,049

$       

(29)%

Total AUM

93,115,549

$ 

139,966,177

$

50%

93,115,549

$ 

139,966,177

$

50%

Fee-Earning AUM

71,270,996

$ 

111,397,306

$

56%

71,270,996

$ 

111,397,306

$

56%

Performing Credit Strategies include mezzanine lending funds, Business Development Companies (“BDCs”) and other performing credit strategy funds. Distressed Strategies include credit alpha strategies, stressed / distressed funds and energy strategies. The composite gross returns represent

a weighted-average composite of the fee-earning funds exceeding $100 million of fair value at each respective quarter end for each strategy. Composite gross returns exclude the Blackstone Funds that were contributed to GSO as part of Blackstone’s acquisition of GSO in March 2008.

Performing Credit Strategies’ net composite returns were 2.3% and 5.5% for 1Q’18 and 1Q’18 LTM. Distressed Strategies’ net composite returns were (0.6)% and 2.5% for 1Q’18 and 1Q'18 LTM. The breakdown of Total AUM for 1Q’18 is as follows: Distressed Strategies $27.0 billion (14%

Incentive Fee, 86% Performance Allocations), Performing Credit Strategies $39.8 billion (5% Incentive Fee, 95% Performance Allocations), Long Only $40.3 billion, Blackstone Insurance Solutions $23.1 billion, and Harvest $9.9 billion. The breakdown of Fee-Earning AUM for 1Q’18 is as follows:

Distressed Strategies $12.3 billion (29% Incentive Fee, 71% Performance Allocations), Performing Credit Strategies $27.6 billion (10% Incentive Fee, 90% Performance Allocations), Long Only $38.6 billion, Blackstone Insurance Solutions $23.1 billion, and Harvest $9.8 billion.

Blackstone

10

$78.7

$93.1

$140.0

$68.5

$73.3

$78.7

$101.1

$102.1

$119.6

$95.5

$99.7

$111.4

$343.7

$368.2

$449.6

1Q'16

1Q'17

1Q'18

$62.1

$71.3

$111.4

$64.8

$68.8

$73.6

$67.3

$71.9

$87.3

$50.2

$68.2

$72.4

$244.5

$280.2

$344.7

1Q'16

1Q'17

1Q'18

Fee-Earning AUM by Segment

(Dollars in Billions)

Total AUM by Segment

(Dollars in Billions)

Assets Under Management

Total AUM increased $81.4 billion, or 22%, year-over-year to $449.6 billion driven by $112.2 billion of inflows.

•

Total AUM increased despite realizations of $44.8 billion during the LTM.

Fee-Earning AUM of $344.7 billion up 23% year-over-year as $101.7 billion of inflows outpaced $45.6

billion of

realizations and outflows.

Private Equity

Real Estate

Hedge Fund Solutions

Credit

Blackstone

11

$172.3

$23.7

$95.0

$291.0

$14.4

$33.7

$76.4

$47.7

$172.3

Additional Capital Detail

Uninvested

Not Currently

Earning

Performance

Revenues

Currently

Earning

Performance

Revenues

Private Equity

Real Estate

Hedge Fund Solutions

Credit

$93 billion 1Q’18

Total Dry Powder

$291

billion Performance

Revenue Eligible AUM

$47 billion Not Currently

Earning Management Fees

Performance Revenue Eligible AUM Currently Earning Performance Revenues of $172.3 billion includes $47.7 billion for Private Equity (Corporate Private Equity $28.2 billion, Tactical

Opportunities

$12.3

billion,

Strategic

Partners

$7.2

billion),

$76.4

billion

for

Real

Estate

(BREP

$44.3

billion,

core+

$24.3

billion,

BREDS

$7.8

billion),

$33.7

billion

for

Hedge

Fund

Solutions,

and $14.4

billion for Credit (Distressed Strategies $6.8 billion, Performing Credit Strategies $7.0 billion, Long Only and Master Limited Partnership (“MLP”) $584 million).

Undrawn

capital

(“Total

Dry

Powder”)

was

$92.8

billion,

despite

$49.0

billion

of

capital

deployed

over

the

LTM.

•

80%

of

Total

Dry

Powder

was

raised

since

the

beginning

of

2015.

Performance

Revenue

Eligible

AUM

reached

$291.0

billion

at

quarter

end,

up

7%

year-over-year,

despite

significant

realizations

in

the

Real

Estate,

Private

Equity,

and

Credit

segments.

$17.3

$2.5

$12.5

$14.6

$46.8

Hedge Fund

Solutions

Private Equity

Real Estate

Credit

$34.7

$31.9

$3.4

$22.8

Blackstone

12

At

March

31,

2018,

Blackstone

had

$4.5

billion

in

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$10.1

billion

of

cash

and

net

investments,

or

$8. 40

per

unit.

Blackstone

has

no

net

debt,

a

$1.5

billion

undrawn

credit

revolver

and

maintains

A+/A+

ratings.

Deconsolidated Balance Sheet Highlights

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

and Credit, which were $647 million, $892 million, $114 million, and $368 million, respectively, as of March 31, 2018. Cash and Net Investments per unit amounts are calculated using period end DE

Units Outstanding (see page 34, Unit Rollforward).

A+/A+

Rated by S&P and Fitch

$1.5 billion

Undrawn Credit Revolver

with August 2021 Maturity

$4.5 billion

Total Cash and

Corporate Treasury

Cash and Net Investments

(Per Unit)

(Dollars in Millions)

1Q’18

Cash and Cash Equivalents

$

1,747

Corporate Treasury

Investments

2,749

GP/Fund Investments

2,022

Net Accrued Performance

Revenues

3,605

Cash

and Net Investments

$

10,123

Outstanding

Bonds (at par)

$

3,607

$7.39

$8.53

$8.40

1Q'16

1Q'17

1Q'18

Blackstone

13

$2,120

$1,989

$1,972

$1,000

$1,073

$1,348

$3,205

$3,304

$3,605

1Q'16

1Q'17

1Q'18

$754

$1,070

$1,189

$889

$521

$396

$1,780

$1,704

$1,838

1Q'16 LTM

1Q'17 LTM

1Q'18 LTM

Performance Revenues

Net Realized Performance Revenues

(Dollars in Millions)

Net Accrued Performance Revenues

(Dollars in Millions)

Private Equity

Real Estate

Credit

Hedge Fund Solutions

$3.6

billion

Net Accrued Performance

Revenues at 1Q’18

$2.99

per unit

Net Accrued Performance

Revenues at 1Q’18

Net Accrued Performance Revenues per unit is calculated using period end DE Units Outstanding (see page 34, Unit Rollforward).

Net

Accrued

Performance

Revenues

were

$3.6

billion

($2.99/unit),

increasing

9%

year-over-year

with

strong

appreciation

generating

$2.1

billion

of

additional

Net

Accrued

Performance

Revenues

that

offset

$1.8

billion

of

Net

Realized

Performance

Revenues.

Appendix

Blackstone

15

Total Segments

See page 2 for information regarding the adoption of new GAAP guidance on revenue recognition.

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Revenues

Management and Advisory Fees, Net

Base Management Fees

642,958

$              

671,368

$              

669,902

$              

696,163

$              

707,156

$              

2,454,034

$           

2,744,589

$           

Transaction, Advisory and Other Fees, Net

40,222

38,892

32,295

45,407

37,066

138,481

153,660

Management Fee Offsets

(33,599)

(13,424)

(10,215)

(9,178)

(8,178)

(93,142)

(40,995)

Total Management and Advisory Fees, Net

649,581

696,836

691,982

732,392

736,044

2,499,373

2,857,254

Performance Revenues

Realized Incentive Fees

46,511

40,303

35,513

122,057

12,566

169,545

210,439

Realized Performance Allocations

1,111,948

603,096

434,994

1,422,830

269,642

2,376,571

2,730,562

Unrealized Performance Allocations

(124,078)

95,707

407,425

(484,486)

628,339

349,987

646,985

Total Performance Revenues

1,034,381

739,106

877,932

1,060,401

910,547

2,896,103

3,587,986

Principal Investment Income (Loss)

Realized

202,894

100,887

60,188

72,225

28,693

412,864

261,993

Unrealized

(98,935)

(33,167)

17,384

(16,488)

13,978

(61,965)

(18,293)

Total Principal Investment Income

103,959

67,720

77,572

55,737

42,671

350,899

243,700

Interest Income and Dividend Revenue

28,496

33,703

37,885

42,836

36,385

101,749

150,809

Other

(8,287)

(62,469)

(34,144)

(35,151)

(60,894)

52,673

(192,658)

Total Revenues

1,808,130

1,474,896

1,651,227

1,856,215

1,664,753

5,900,797

6,647,091

Expenses

Compensation

289,027

305,257

302,798

306,034

336,327

1,084,840

1,250,416

Performance Compensation

Realized Incentive Fees

22,465

21,032

18,332

43,450

6,662

77,601

89,476

Realized Performance Allocations

366,478

195,738

162,505

557,244

112,062

772,766

1,027,549

Unrealized Performance Allocations

7,533

86,910

175,534

(166,183)

254,435

306,860

350,696

Total Compensation and Benefits

685,503

608,937

659,169

740,545

709,486

2,242,067

2,718,137

Interest Expense

39,450

40,294

40,749

72,345

38,238

150,975

191,626

Other Operating Expenses

96,462

105,838

106,617

115,949

107,092

428,204

435,496

Total Expenses

821,415

755,069

806,535

928,839

854,816

2,821,246

3,345,259

Economic Income

986,715

$              

719,827

$              

844,692

$              

927,376

$              

809,937

$              

3,079,551

$           

3,301,832

$           

Economic Net Income

967,910

$              

695,659

$              

822,140

$              

891,370

$              

791,709

$              

2,985,277

$           

3,200,878

$           

Fee Related Earnings

290,742

$              

311,183

$              

306,708

$              

327,586

$              

332,873

$              

1,065,763

$           

1,278,350

$           

Distributable Earnings

1,230,138

$           

781,365

$              

625,566

$              

1,239,146

$           

502,055

$              

2,957,498

$           

3,148,132

$           

Total Assets Under Management

368,196,917

$       

371,056,281

$       

387,449,746

$       

434,128,243

$       

449,613,826

$       

368,196,917

$       

449,613,826

$       

Fee-Earning Assets Under Management

280,215,551

$       

281,934,511

$       

285,698,425

$       

335,343,998

$       

344,650,797

$       

280,215,551

$       

344,650,797

$       

Weighted Average Fee-Earning AUM

279,582,971

$       

281,966,547

$       

284,114,581

$       

311,353,064

$       

344,482,808

$       

271,944,095

$       

317,684,345

$       

LP Capital Invested

9,709,930

$           

7,799,624

$           

10,043,022

$         

18,663,837

$         

9,323,329

$           

25,616,109

$         

45,829,812

$         

Total Capital Invested

11,840,913

$         

8,382,583

$           

10,925,170

$         

19,529,797

$         

10,119,519

$         

28,422,948

$         

48,957,069

$         

Blackstone

16

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Revenues

Management and Advisory Fees, Net

Base Management Fees

176,706

$              

177,684

$              

182,764

$              

187,664

$              

182,961

$              

601,651

$              

731,073

$              

Transaction, Advisory and Other Fees, Net

16,176

17,289

8,748

15,411

11,094

46,539

52,542

Management Fee Offsets

(12,190)

(3,753)

(1,088)

(976)

(3,193)

(40,152)

(9,010)

Total Management and Advisory Fees, Net

180,692

191,220

190,424

202,099

190,862

608,038

774,605

Performance Revenues

Realized Performance Allocations

582,681

198,168

101,918

274,421

77,123

797,667

651,630

Unrealized Performance Allocations

(184,478)

9

80,326

90,929

397,316

167,338

568,580

Total Performance Revenues

398,203

198,177

182,244

365,350

474,439

965,005

1,220,210

Principal Investment Income (Loss)

Realized

81,294

41,168

7,077

25,298

6,338

170,028

79,881

Unrealized

(40,522)

(25,892)

17,300

(2,303)

17,368

(60,555)

6,473

Total Principal Investment Income

40,772

15,276

24,377

22,995

23,706

109,473

86,354

Interest Income and Dividend Revenue

6,661

7,922

9,046

9,209

8,543

25,766

34,720

Other

(1,800)

(16,124)

(8,346)

(9,392)

(16,408)

20,245

(50,270)

Total Revenues

624,528

396,471

397,745

590,261

681,142

1,728,527

2,065,619

Expenses

Compensation

83,603

90,676

96,166

92,229

99,729

313,297

378,800

Performance Compensation

Realized Performance Allocations

181,633

63,060

48,019

111,832

33,045

277,088

255,956

Unrealized Performance Allocations

(39,356)

22,219

45,484

42,748

178,802

115,285

289,253

Total Compensation and Benefits

225,880

175,955

189,669

246,809

311,576

705,670

924,009

Interest Expense

10,427

10,728

10,804

19,170

10,133

47,440

50,835

Other Operating Expenses

27,761

28,592

32,166

32,478

31,151

126,466

124,387

Total Expenses

264,068

215,275

232,639

298,457

352,860

879,576

1,099,231

Economic Income

360,460

$              

181,196

$              

165,106

$              

291,804

$              

328,282

$              

848,951

$              

966,388

$              

Total Assets Under Management

99,707,057

$         

100,019,716

$       

102,453,979

$       

105,560,576

$       

111,414,214

$       

99,707,057

$         

111,414,214

$       

Fee-Earning Assets Under Management

68,227,286

$         

68,029,670

$         

67,538,062

$         

70,140,883

$         

72,398,415

$         

68,227,286

$         

72,398,415

$         

Weighted Average Fee-Earning AUM

68,613,668

$         

68,194,287

$         

67,606,365

$         

68,815,882

$         

71,881,372

$         

68,415,122

$         

68,184,390

$         

LP Capital Invested

4,736,388

$           

3,846,841

$           

3,725,919

$           

4,614,237

$           

3,301,949

$           

10,314,297

$         

15,488,946

$         

Total Capital Invested

6,748,859

$           

4,221,479

$           

4,279,062

$           

4,929,609

$           

3,955,198

$           

12,685,979

$         

17,385,348

$         

Private Equity

Blackstone

17

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Revenues

Management Fees, Net

Base Management Fees

197,879

$              

227,865

$              

224,048

$              

222,399

$              

226,526

$              

793,133

$              

900,838

$              

Transaction and Other Fees, Net

21,279

16,087

20,616

24,799

23,088

80,809

84,590

Management Fee Offsets

(3,550)

(5,018)

(4,232)

(3,134)

(1,668)

(7,277)

(14,052)

Total Management Fees, Net

215,608

238,934

240,432

244,064

247,946

866,665

971,376

Performance Revenues

Realized Incentive Fees

2,882

4,878

3,778

20,094

4,375

28,316

33,125

Realized Performance Allocations

519,873

389,441

307,932

971,996

151,309

1,522,852

1,820,678

Unrealized Performance Allocations

(8,046)

89,688

273,731

(498,562)

226,442

(117,754)

91,299

Total Performance Revenues

514,709

484,007

585,441

493,528

382,126

1,433,414

1,945,102

Principal Investment Income (Loss)

Realized

119,579

57,599

44,449

34,276

14,690

229,316

151,014

Unrealized

(83,853)

(20,519)

(8,319)

(9,529)

2,687

(82,835)

(35,680)

Total Principal Investment Income

35,726

37,080

36,130

24,747

17,377

146,481

115,334

Interest Income and Dividend Revenue

12,094

14,493

15,461

16,036

15,128

41,016

61,118

Other

(3,150)

(22,965)

(13,108)

(12,202)

(21,497)

15,282

(69,772)

Total Revenues

774,987

751,549

864,356

766,173

641,080

2,502,858

3,023,158

Expenses

Compensation

102,702

110,266

105,753

108,490

112,824

387,476

437,333

Performance Compensation

Realized Incentive Fees

1,333

2,711

1,967

10,203

2,210

11,223

17,091

Realized Performance Allocations

179,956

124,512

104,112

364,410

54,183

469,564

647,217

Unrealized Performance Allocations

17,792

64,254

105,640

(172,254)

79,170

47,581

76,810

          ��       

Total Compensation and Benefits

301,783

301,743

317,472

310,849

248,387

915,844

1,178,451

Interest Expense

14,635

14,787

15,028

26,891

14,149

52,194

70,855

Other Operating Expenses

30,864

33,379

33,256

38,543

29,417

136,621

134,595

Total Expenses

347,282

349,909

365,756

376,283

291,953

1,104,659

1,383,901

Economic Income

427,705

$              

401,640

$              

498,600

$              

389,890

$              

349,127

$              

1,398,199

$           

1,639,257

$           

Total Assets Under Management

102,070,930

$       

104,034,287

$       

111,298,844

$       

115,340,363

$       

119,575,884

$       

102,070,930

$       

119,575,884

$       

Fee-Earning Assets Under Management

71,904,741

$         

73,710,243

$         

75,081,521

$         

83,984,824

$         

87,284,578

$         

71,904,741

$         

87,284,578

$         

Weighted Average Fee-Earning AUM

72,268,792

$         

73,320,319

$         

74,340,895

$         

77,626,395

$         

86,670,284

$         

68,760,233

$         

77,570,231

$         

LP Capital Invested

2,590,419

$           

2,371,918

$           

3,778,790

$           

10,845,388

$         

4,254,201

$           

9,812,984

$           

21,250,297

$         

Total Capital Invested

2,651,965

$           

2,379,922

$           

3,841,972

$           

11,008,356

$         

4,342,936

$           

10,007,762

$         

21,573,186

$         

Real Estate

Blackstone

18

Hedge Fund Solutions

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Revenues

Management Fees, Net

Base Management Fees

128,468

$             

128,698

$             

129,410

$             

129,472

$             

129,228

$             

520,046

$             

516,808

$             

Transaction and Other Fees, Net

259

1,696

48

977

345

777

3,066

Management Fee Offsets

-

-

(28)

(65)

-

-

(93)

Total Management Fees, Net

128,727

130,394

129,430

130,384

129,573

520,823

519,781

Performance Revenues

Realized Incentive Fees

14,087

6,548

12,186

74,031

8,171

42,670

100,936

Realized Performance Allocations

597

447

2,031

44,416

2,006

11,507

48,900

Unrealized Performance Allocations

18,815

14,849

10,327

(35,647)

5,061

21,447

(5,410)

Total Performance Revenues

33,499

21,844

24,544

82,800

15,238

75,624

144,426

Principal Investment Income (Loss)

Realized

(632)

225

1,316

8,165

640

(3,111)

10,346

Unrealized

18,293

11,578

12,723

(1,582)

440

46,046

23,159

Total Principal Investment Income

17,661

11,803

14,039

6,583

1,080

42,935

33,505

Interest Income and Dividend Revenue

3,997

4,674

5,316

7,538

4,812

14,786

22,340

Other

(1,610)

(10,720)

(5,859)

(6,191)

(10,288)

7,935

(33,058)

Total Revenues

182,274

157,995

167,470

221,114

140,415

662,103

686,994

Expenses

Compensation

47,604

47,361

44,347

37,470

50,300

178,755

179,478

Performance Compensation

Realized Incentive Fees

7,014

4,097

5,862

20,159

4,034

19,794

34,152

Realized Performance Allocations

303

265

1,022

14,626

2,415

5,057

18,328

Unrealized Performance Allocations

6,422

5,968

3,541

(12,814)

2,186

7,381

(1,119)

Total Compensation and Benefits

61,343

57,691

54,772

59,441

58,935

210,987

230,839

Interest Expense

6,543

6,688

6,763

11,624

6,271

25,020

31,346

Other Operating Expenses

16,379

16,318

17,958

17,610

18,785

74,142

70,671

Total Expenses

84,265

80,697

79,493

88,675

83,991

310,149

332,856

Economic Income

98,009

$               

77,298

$               

87,977

$               

132,439

$             

56,424

$               

351,954

$             

354,138

$             

Total Assets Under Management

73,303,381

$        

72,476,444

$        

74,219,563

$        

75,090,834

$        

78,657,551

$        

73,303,381

$        

78,657,551

$        

Fee-Earning Assets Under Management

68,812,528

$        

67,824,464

$        

69,037,961

$        

69,914,061

$        

73,570,498

$        

68,812,528

$        

73,570,498

$        

Weighted Average Fee-Earning AUM

68,406,531

$        

69,301,130

$        

68,957,501

$        

71,101,632

$        

74,251,757

$        

67,206,240

$        

71,250,841

$        

LP Capital Invested

121,857

$             

89,985

$               

360,748

$             

328,640

$             

755,818

$           �� 

559,648

$             

1,535,191

$          

Total Capital Invested

121,888

$             

93,191

$               

363,420

$             

383,070

$             

785,874

$             

566,538

$             

1,625,555

$          

Blackstone

19

Credit

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Revenues

Management Fees, Net

Base Management Fees

139,905

$              

137,121

$              

133,680

$              

156,628

$              

168,441

$              

539,204

$              

595,870

$              

Transaction and Other Fees, Net

2,508

3,820

2,883

4,220

2,539

10,356

13,462

Management Fee Offsets

(17,859)

(4,653)

(4,867)

(5,003)

(3,317)

(45,713)

(17,840)

Total Management Fees, Net

124,554

136,288

131,696

155,845

167,663

503,847

591,492

Performance Revenues

Realized Incentive Fees

29,542

28,877

19,549

27,932

20

98,559

76,378

Realized Performance Allocations

8,797

15,040

23,113

131,997

39,204

44,545

209,354

Unrealized Performance Allocations

49,631

(8,839)

43,041

(41,206)

(480)

278,956

(7,484)

Total Performance Revenues

87,970

35,078

85,703

118,723

38,744

422,060

278,248

Principal Investment Income (Loss)

Realized

2,653

1,895

7,346

4,486

7,025

16,631

20,752

Unrealized

7,147

1,666

(4,320)

(3,074)

(6,517)

35,379

(12,245)

Total Principal Investment Income

9,800

3,561

3,026

1,412

508

52,010

8,507

Interest Income and Dividend Revenue

5,744

6,614

8,062

10,053

7,902

20,181

32,631

Other

(1,727)

(12,660)

(6,831)

(7,366)

(12,701)

9,211

(39,558)

Total Revenues

226,341

168,881

221,656

278,667

202,116

1,007,309

871,320

Expenses

Compensation

55,118

56,954

56,532

67,845

73,474

205,312

254,805

Performance Compensation

Realized Incentive Fees

14,118

14,224

10,503

13,088

418

46,584

38,233

Realized Performance Allocations

4,586

7,901

9,352

66,376

22,419

21,057

106,048

Unrealized Performance Allocations

22,675

(5,531)

20,869

(23,863)

(5,723)

136,613

(14,248)

Total Compensation and Benefits

96,497

73,548

97,256

123,446

90,588

409,566

384,838

Interest Expense

7,845

8,091

8,154

14,660

7,685

26,321

38,590

Other Operating Expenses

21,458

27,549

23,237

27,318

27,739

90,975

105,843

Total Expenses

125,800

109,188

128,647

165,424

126,012

526,862

529,271

Economic Income

100,541

$              

59,693

$                

93,009

$                

113,243

$              

76,104

$                

480,447

$              

342,049

$              

Total Assets Under Management

93,115,549

$         

94,525,834

$         

99,477,360

$         

138,136,470

$       

139,966,177

$       

93,115,549

$         

139,966,177

$       

Fee-Earning Assets Under Management

71,270,996

$         

72,370,134

$         

74,040,881

$         

111,304,230

$       

111,397,306

$       

71,270,996

$         

111,397,306

$       

Weighted Average Fee-Earning AUM

70,293,980

$         

71,150,811

$         

73,209,820

$         

93,809,155

$         

111,679,395

$       

67,562,500

$         

100,678,883

$       

LP Capital Invested

2,261,266

$           

1,490,880

$           

2,177,565

$           

2,875,572

$           

1,011,361

$           

4,929,180

$           

7,555,378

$           

Total Capital Invested

2,318,201

$           

1,687,991

$           

2,440,716

$           

3,208,762

$           

1,035,511

$           

5,162,669

$           

8,372,980

$           

Blackstone

20

Unitholder Distribution

A

detailed

description

of

Blackstone’s

distribution

policy

and

the

definition

of

Distributable

Earnings

can

be

found

on

page

35,

Definitions

and

Distribution

Policy.

DE

before

Certain

Payables

represents

Distributable

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

(page 34, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common

unitholders’

share was $41 million for 1Q’18 and $254 million for 1Q’18 LTM.

Generated

$0.41

of

Distributable

Earnings

per

common

unit

during

the

quarter,

bringing

the

LTM

amount

to

$2.56

per

common

unit.

Blackstone

declared

a

quarterly

distribution

of

$0.35

per

common

unit

to

record

holders

as

of

April

30,

2018;

payable

on

May

7,

2018.

% Change

% Change

(Dollars in Thousands, Except per Unit Data)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

vs. 1Q'17

1Q'17 LTM

1Q'18 LTM

vs. 1Q'17 LTM

Distributable Earnings

1,230,138

$ 

781,365

$    

625,566

$   

1,239,146

$  

502,055

$     

(59)%

2,957,498

$

3,148,132

$   

6%

Add: Other Payables Attributable

   to Common Unitholders

6,632

29,808

9,448

52,216

7,028

6%

88,950

98,500

11%

DE before Certain Payables

1,236,770

811,173

635,014

1,291,362

509,083

(59)%

3,046,448

3,246,632

7%

Percent to Common Unitholders

55%

56%

56%

56%

56%

55%

56%

DE before Certain Payables Attributable

   to Common Unitholders

683,473

451,302

353,193

720,124

285,633

(58)%

1,671,908

1,810,252

8%

Less: Other Payables Attributable

   to Common Unitholders

(6,632)

(29,808)

(9,448)

(52,216)

(7,028)

6%

(88,950)

(98,500)

11%

DE Attributable to Common Unitholders

676,841

421,494

343,745

667,908

278,605

(59)%

1,582,958

1,711,752

8%

DE per Common Unit

1.02

$          

0.63

$          

0.52

$         

1.00

$           

0.41

$           

(60)%

2.42

$         

2.56

$            

6%

Less: Retained Capital per Common Unit

(0.15)

$         

(0.09)

$         

(0.08)

$        

(0.15)

$          

(0.06)

$          

(60)%

(0.31)

$        

(0.38)

$           

23%

Actual Distribution per Common Unit

0.87

$          

0.54

$          

0.44

$         

0.85

$           

0.35

$           

(60)%

2.11

$         

2.18

$            

3%

Record Date

Apr 30, 2018

Payable Date

May 7, 2018

Blackstone

21

1Q’18 Total AUM Rollforward

(Dollars in Millions)

1Q’18 LTM Total AUM Rollforward

(Dollars in Millions)

Inflows include contributions, capital raised, other increases in available capital, purchases, multi-asset product allocations to other strategies and acquisitions. Outflows represent redemptions, client

withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses)

on

portfolio

investments

and

impact

of

foreign

exchange

rate

fluctuations.

In

the

Real

Estate

segment,

carrying

value

for

core+

funds

excludes

BREIT.

Total Assets Under Management

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows:

Second Asian opportunistic fund ($1.2 billion); BPP Europe and co-invest ($691 million); BREIT ($623 million); BPP U.S.

($460

million); BREDS ($362

million).

Realizations: BREP opportunistic funds and co-invest ($1.9 billion); BREDS ($478 million); core+ funds ($256 million).

Market

Activity:

Carrying

value

increases

of

3.5%

and

3.4%

within

the

opportunistic

and

core+

funds,

respectively.

Inflows: Customized solutions ($1.8  billion); individual investor and specialized solutions ($1.7  billion); commingled products ($430 million).

Outflows and Realizations:

Individual

investor

and

specialized

solutions

($851

million);

customized

solutions

($298

million);

commingled

products ($33 million).

Market

Activity:

BAAM’s

Principal

Solutions

Composite

up

1.3%

gross

(1.1%

net)

during

the

quarter.

Inflows:

Distressed strategies ($2.0

billion); long only and MLP ($2.0 billion); two new CLOs ($1.6 billion); Blackstone Insurance Solutions

($1.2 billion).

Outflows and Realizations: Distressed strategies ($1.7 billion); long only and MLP ($1.4 billion); capital returned to investors for CLOs

outside

investment

periods

($559

million);

mezzanine

funds

($381

million).

Inflows: Tactical

Opportunities

($1.9

billion);

Strategic

Partners

($786

million);

multi-asset

products

($460

million);

Corporate

Private

Equity

($398 million).

Realizations: Strategic Partners ($466 million); Corporate Private Equity ($354 million); Tactical Opportunities ($221 million).

Market

Activity:

Carrying

value

increase

of

6.4%

within

Corporate

Private

Equity.

Private

Real

Hedge Fund

Equity

Estate

Solutions

4Q'17

105,561

$ 

115,340

$ 

75,091

$    

138,136

$ 

434,128

$ 

Inflows

3,534

3,623

3,941

7,081

18,179

Outflows

(379)

(148)

(1,127)

(1,960)

(3,614)

Realizations

(1,042)

(2,667)

(56)

(2,492)

(6,257)

Net Inflows

2,114

808

2,758

2,629

8,309

Market Activity

3,740

3,428

809

(799)

7,177

1Q'18

111,414

$ 

119,576

$ 

78,658

$    

139,966

$ 

449,614

$ 

QoQ Increase

6%

4%

5%

1%

4%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'17

99,707

$    

102,071

$ 

73,303

$    

93,116

$    

368,197

$ 

Inflows

13,542

24,138

12,406

62,092

112,178

Outflows

(1,386)

(1,338)

(9,286)

(6,038)

(18,049)

Realizations

(10,635)

(20,510)

(1,963)

(11,718)

(44,826)

Net Inflows

1,520

2,290

1,157

44,336

49,304

Market Activity

10,187

15,215

4,197

2,514

32,113

1Q'18

111,414

$ 

119,576

$ 

78,658

$    

139,966

$ 

449,614

$ 

YoY Increase

12%

17%

7%

50%

22%

Credit

Total

1Q’18 Fee-Earning AUM Rollforward

(Dollars in Millions)

1Q’18 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Private

Equity

Real

Estate

Hedge

Fund

Solutions

Credit

Inflows:

BREP

opportunistic

funds

and

co-invest

($1.4

billion);

BPP

Europe

and

co-invest

($811

million);

BREIT

($623

million);

BREDS

($400

million); BPP U.S. ($242 million). 

Realizations: BREP opportunistic funds and co-invest ($779 million); BREDS ($486 million); core+ funds ($222 million).

Inflows:

Customized

solutions

($1.8

billion);

individual

investor

and

specialized

solutions

($1.5

billion);

commingled

products

($424

million).

Outflows

and

Realizations:

Individual

investor

and

specialized

solutions

($697

million);

customized

solutions

($231

million);

commingled

products ($30 million).

Inflows: Long only and MLP ($1.8 billion); two new CLOs ($1.6 billion); Blackstone Insurance Solutions ($1.2 billion); distressed strategies

($610 million); mezzanine funds ($336 million).

Outflows and Realizations: Long only and MLP ($1.3 billion); distressed strategies ($1.0 billion); capital returned to investors for CLOs

outside investment periods ($559 million); mezzanine funds ($227 million).

Inflows:

Tactical

Opportunities

($1.7

billion);

multi-asset

product

($1.0

billion);

Strategic

Partners

($435

million);

Corporate

Private

Equity

($230 million).

Realizations: Strategic Partners ($471 million); Tactical Opportunities ($177  million); Corporate Private Equity ($89 million).

Fee-Earning Assets Under Management

Inflows include contributions, capital raised, other increases in available capital, purchases, multi-asset product allocations to other strategies and acquisitions. Outflows represent redemptions,

client withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments

and impact of foreign exchange rate fluctuations.

Private

Real

Hedge Fund

Equity

Estate

Solutions

4Q'17

70,141

$    

83,985

$    

69,914

$    

111,304

$ 

335,344

$ 

Inflows

3,404

3,550

3,816

5,552

16,323

Outflows

(469)

(211)

(902)

(2,045)

(3,627)

Realizations

(736)

(1,494)

(56)

(1,995)

(4,281)

Net Inflows

2,199

1,845

2,858

1,513

8,415

Market Activity

59

1,454

798

(1,420)

891

1Q'18

72,398

$    

87,285

$    

73,570

$    

111,397

$ 

344,651

$ 

QoQ Increase

3%

4%

5%

0%

3%

Credit

Total

Private

Real

Hedge Fund

Equity

Estate

Solutions

1Q'17

68,227

$    

71,905

$    

68,813

$    

71,271

$    

280,216

$ 

Inflows

10,552

24,981

10,936

55,206

101,674

Outflows

(1,661)

(2,887)

(8,410)

(5,598)

(18,557)

Realizations

(5,132)

(10,566)

(1,791)

(9,594)

(27,083)

Net Inflows

3,759

11,527

735

40,013

56,034

Market Activity

412

3,853

4,023

113

8,401

1Q'18

72,398

$    

87,285

$    

73,570

$    

111,397

$ 

344,651

$ 

YoY Increase

6%

21%

7%

56%

23%

Credit

Total

Blackstone

22

Blackstone

23

Net Accrued Performance Revenues

Net Accrued Performance Revenues are presented net of performance compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized Performance

Revenues are included in DE. Net Realized Performance Revenues  above represent Performance Revenues realized, but not yet distributed as of the reporting date and included in the Net Accrued

Performance Revenues balance. When these fees are received, the receivable is reduced without further impacting DE. Per Unit calculations are based on end of period DE Units Outstanding (see page

34 Unit Rollforward).

$3.6

billion

Net Accrued Performance Revenues at 1Q’18

$2.99

per unit

Net Accrued Performance Revenues at 1Q’18

$537 million

Increase to Receivable from Net Performance

Revenues in 1Q’18

$280 million

Decrease to Receivable from Net Realized

Distributions in 1Q’18

Net Accrued Performance Revenues

(Dollars in Millions, Except per Unit Data)

4Q'17

1Q'18

1Q'18 Per Unit

QoQ Change

Private Equity

BCP IV

87

$                         

70

$                         

0.06

$                     

(17)

$                       

BCP V

73

70

0.06

(3)

BCP VI

668

783

0.65

115

BCP VII

16

59

0.05

43

BEP I

95

91

0.08

(4)

BEP II

5

34

0.03

29

Tactical Opportunities

104

138

0.11

34

Strategic Partners

66

81

0.07

15

BTAS

13

19

0.02

6

Other

3

3

-

-

Total Private Equity

1,130

$                   

1,348

$                   

1.12

$                     

218

$                       

Real Estate

BREP IV

9

10

0.01

1

BREP V

203

205

0.17

2

BREP VI

190

184

0.15

(6)

BREP VII

587

606

0.50

19

BREP VIII

255

288

0.24

33

BREP Europe III

67

61

0.05

(6)

BREP Europe IV

207

220

0.18

13

BREP Europe V

25

41

0.03

16

BREP Asia I

102

112

0.09

10

BPP

134

174

0.14

40

BREIT

10

14

0.01

4

BREDS

35

32

0.03

(3)

BTAS

16

25

0.02

9

Total Real Estate

1,840

$                   

1,972

$                   

1.62

$                     

132

$                       

Total Hedge Fund Solutions

89

$                         

19

$                         

0.02

$                      

(70)

$                       

Total Credit

289

$                       

266

$                      

0.22

$                      

(23)

$                       

Net Accrued Performance Revenue

3,348

$                    

3,605

$                    

2.99

$                      

257

$                       

Memo: Net Realized Performance Revenues

222

$                      

50

$                        

0.04

$                    

(172)

$                    

Blackstone

24

Investment

Records

as

of

March

31,

2018

(a)

Continued...

(Dollars in Thousands, Except Where Noted)

Committed

Available

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

Fund (Investment Period Beginning Date / Ending Date)

Capital

Capital (b)

Value

MOIC (c)

% Public

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Private Equity

BCP I (Oct 1987 / Oct 1993)

859,081

$          

-

$                  

-

$                  

n/a

-

1,741,738

$       

2.6x

1,741,738

$       

2.6x

19%

19%

BCP II (Oct 1993 / Aug 1997)

1,361,100

-

-

n/a

-

3,256,819

2.5x

3,256,819

2.5x

32%

32%

BCP III (Aug 1997 / Nov 2002)

3,967,422

-

-

n/a

-

9,184,688

2.3x

9,184,688

2.3x

14%

14%

BCOM (Jun 2000 / Jun 2006)

2,137,330

24,575

17,393

1.4x

-

2,953,649

1.4x

2,971,042

1.4x

7%

6%

BCP IV (Nov 2002 / Dec 2005)

6,773,182

209,294

702,682

0.7x

48%

20,677,725

3.2x

21,380,407

2.8x

42%

36%

BCP V (Dec 2005 / Jan 2011)

21,026,008

1,056,606

2,256,174

1.1x

42%

35,892,518

2.0x

38,148,692

1.9x

9%

8%

BCP VI (Jan 2011 / May 2016)

15,190,284

1,807,564

16,676,954

1.7x

31%

8,567,871

2.0x

25,244,825

1.8x

22%

14%

BEP I (Aug 2011 / Feb 2015)

2,437,617

159,896

2,513,248

1.5x

31%

1,384,179

2.0x

3,897,427

1.6x

29%

12%

BEP II (Feb 2015 / Feb 2021) (e)

4,868,538

1,831,339

2,621,584

1.3x

-

55,898

2.5x

2,677,482

1.3x

n/m

13%

BCP VII (May 2016 / May 2022)

18,551,468

12,824,126

5,233,973

1.3x

-

282,579

1.1x

5,516,552

1.3x

n/m

15%

BCP Asia (Dec 2017 /Dec 2023) (f)

1,797,100

1,627,752

103

n/m

-

-

n/a

103

n/m

n/a

n/m

Total Corporate Private Equity

78,969,130

$     

19,541,152

$     

30,022,111

$     

1.4x

24%

83,997,664

$     

2.2x

114,019,775

$   

1.9x

17%

15%

Tactical Opportunities

17,551,322

7,729,918

10,003,228

1.2x

-

4,653,915

1.7x

14,657,143

1.4x

23%

12%

Tactical Opportunities Co-Investment and Other

5,257,448

1,449,306

3,823,716

1.2x

-

1,130,175

1.6x

4,953,891

1.2x

n/a

15%

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

11,862,592

1,743,623

2,154,396

n/m

-

15,360,143

n/m

17,514,539

1.5x

n/a

13%

Strategic Partners VI LBO, RE and SMA (g)

7,402,171

2,345,359

3,362,791

n/m

-

2,540,056

n/m

5,902,847

1.4x

n/a

21%

Strategic Partners VII (g)

7,669,970

2,685,945

4,204,924

n/m

-

281,924

n/m

4,486,848

1.3x

n/a

63%

Strategic Partners RA II (g)

1,806,807

1,465,246

251,324

n/m

-

5,582

n/m

256,906

1.2x

n/a

n/m

BCEP (Jan 2017 / Jan 2021) (h)

4,755,133

3,376,278

1,451,222

1.1x

-

-

n/a

1,451,222

1.1x

n/a

4%

Other Funds and Co-Investment (i)

1,129,258

513

66,087

0.9x

-

639,492

0.9x

705,579

0.9x

n/m

n/m

Real Estate

Pre-BREP

140,714

$          

-

$                  

-

$                  

n/a

-

345,190

$          

2.5x

345,190

$          

2.5x

33%

33%

BREP I (Sep 1994 / Oct 1996)

380,708

-

-

n/a

-

1,327,708

2.8x

1,327,708

2.8x

40%

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

-

-

n/a

-

2,531,614

2.1x

2,531,614

2.1x

19%

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

-

-

n/a

-

3,330,406

2.4x

3,330,406

2.4x

21%

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

-

356,962

0.4x

39%

4,193,319

2.2x

4,550,281

1.7x

35%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

-

1,757,545

2.0x

30%

11,571,333

2.4x

13,328,878

2.3x

13%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

556,442

2,031,419

2.0x

26%

25,400,275

2.6x

27,431,694

2.5x

14%

13%

BREP VII (Aug 2011 / Apr 2015)

13,495,014

2,063,162

12,300,534

1.7x

18%

16,197,932

2.1x

28,498,466

1.9x

29%

18%

BREP VIII (Apr 2015 / Oct 2020)

16,411,403

8,884,917

10,308,128

1.4x

1%

3,700,071

1.5x

14,008,199

1.4x

28%

17%

Total Global BREP

51,947,442

$     

11,504,521

$     

26,754,588

$     

1.5x

13%

68,597,848

$     

2.3x

95,352,436

$     

2.0x

20%

16%

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

-

€

-

€

n/a

-

1,369,016

€

2.1x

1,369,016

€

2.1x

23%

23%

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

1,629,748

-

178,866

0.7x

24%

2,242,404

2.0x

2,421,270

1.7x

10%

8%

BREP Europe III (Jun 2008 / Sep 2013)

3,205,167

454,762

1,402,919

1.5x

-

4,965,527

2.5x

6,368,446

2.2x

22%

16%

BREP Europe IV (Sep 2013 / Dec 2016)

6,709,008

1,296,578

5,053,183

1.5x

9%

5,855,191

2.0x

10,908,374

1.7x

28%

18%

BREP Europe V (Dec 2016 / Jun 2022)

7,855,508

4,494,806

3,571,217

1.2x

-

12,559

2.5x

3,583,776

1.2x

n/m

20%

Total Euro BREP

20,223,603

€

6,246,146

€

10,206,185

€

1.3x

5%

14,444,697

€

2.1x

24,650,882

€

1.7x

18%

14%

BREP Asia I (Jun 2013 / Dec 2017)

5,095,494

$       

1,893,763

$       

4,268,941

$       

1.4x

-

2,435,863

$       

1.8x

6,704,804

$       

1.5x

23%

17%

BREP Asia II (Dec 2017 / Jun 2023)

6,911,267

6,755,702

323,200

1.0x

-

-

n/a

323,200

1.0x

n/a

n/a

BREP Co-Investment (k)

6,892,347

146,573

2,311,814

1.8x

55%

11,510,361

2.1x

13,822,175

2.0x

16%

16%

Total BREP

95,605,403

$     

28,073,264

$     

45,861,628

$     

1.5x

12%

101,124,888

$   

2.2x

146,986,516

$   

1.9x

19%

16%

BPP (l)

23,755,472

$     

3,425,136

$       

23,531,250

$     

1.2x

-

1,947,913

$       

n/m

25,479,163

$     

1.2x

n/m

12%

BREDS (m)

13,242,063

$     

5,244,979

$       

3,094,557

$       

1.1x

-

8,872,128

$       

1.3x

11,966,685

$     

1.3x

12%

11%

Blackstone

25

Investment

Records

as

of

March

31,

2018

(a)

–

Continued

The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P.

n/m

Not meaningful.

n/a

Not applicable.

(a)

Preliminary.

(b)

Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may

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

(c)

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

(d)

Net

Internal

Rate

of

Return

(“IRR”)

represents

the

annualized

inception

to

March

31,

2018

IRR

on

total

invested

capital

based

on

realized

proceeds

and

unrealized

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

(e)

Total

Net

IRR

represents

the

compound

annual

rate

of

return

based

on

actual

limited

partner

cash

flows

and

valuations

after

management

fees

(excluding

management fees funded using its revolving credit facility), expenses and the general partner’s allocation of profits. Including  management fees funded using the

revolving credit facility, BEP II’s Total Net IRR would have been 13%. BEP II’s Realized Net IRR is not meaningful.

(f)

Includes foreign currency gain or loss on invested undrawn capital, if any.

(g)

Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOICs are not meaningful.

(h)

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

(i)

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

(j)

The 10% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance

reflects a 9% Realized Net IRR and a 6% Total Net IRR.

(k)

BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s

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

(l)

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

(m)

Excludes Capital Trust drawdown funds.

(n)

BSCH,

or

Blackstone

Strategic

Capital

Holdings,

is

a

permanent

capital

vehicle

focused

on

acquiring

strategic

minority

positions

in

alternative

asset

managers.

(o)

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

(Dollars in Thousands, Except Where Noted)

Committed

Available

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

Fund (Investment Period Beginning Date / Ending Date)

Capital

Capital (b)

Value

MOIC (c)

% Public

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Hedge Fund Solutions

BSCH (Dec 2013 / Jun 2020) (n)

3,298,575

$       

2,351,974

$       

950,535

$          

1.0x

-

246,864

$          

n/a

1,197,399

$       

1.3x

n/a

6%

BSCH Co-Investment

276,000

164,903

104,812

0.9x

-

22,953

n/a

127,765

1.1x

n/a

11%

Total Hedge Fund Solutions

3,574,575

$       

2,516,877

$       

1,055,347

$       

1.0x

-

269,817

$          

n/a

1,325,164

$       

1.3x

n/a

6%

Credit (o)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

$       

97,114

$            

44,779

$            

0.8x

-

4,769,092

$       

1.6x

4,813,871

$       

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

1,159,450

2,539,622

1.1x

-

3,938,808

1.5x

6,478,430

1.3x

n/a

13%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

4,074,443

2,546,836

1.1x

-

548,379

1.5x

3,095,215

1.1x

n/a

13%

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

3,253,143

175,000

382,975

0.6x

-

5,541,392

1.5x

5,924,367

1.4x

n/a

11%

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

5,125,000

704,060

2,979,367

1.1x

-

2,670,978

1.4x

5,650,345

1.2x

n/a

13%

Stressed / Distressed Investing III (Dec 2017/ Dec 2022)

7,331,130

6,876,354

454,546

1.1x

-

10,482

n/a

465,028

1.1x

n/a

n/a

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,867

1,382,309

1,583,917

1.2x

-

383,558

1.7x

1,967,475

1.2x

n/a

19%

Euro

European Senior Debt Fund (Feb 2015 / Feb 2019)

1,964,689

€

1,636,988

€

1,712,615

€

1.0x

-

556,585

€

1.6x

2,269,200

€

1.1x

n/a

11%

Total Credit

33,591,683

$     

16,482,061

$     

12,638,301

$     

1.1x

-

18,496,740

$     

1.5x

31,135,041

$     

1.3x

14%

n/a

Blackstone

26

Notes on page 28.

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Quarters

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

Net Income Attributable to The Blackstone Group L.P.

160,074

$   

198,444

$   

310,027

$   

370,469

$   

451,909

$   

337,407

$   

377,920

$   

304,138

$   

367,872

$   

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

131,478

201,648

282,798

344,175

409,046

283,637

340,202

359,438

320,208

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

40,086

64,729

82,653

58,684

138,685

112,944

113,446

132,364

155,499

Net Income Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

(6,401)

(2,049)

10,764

1,663

2,000

991

3,215

7,600

(1,275)

Net Income

325,237

$   

462,772

$   

686,242

$   

774,991

$   

1,001,640

$

734,979

$   

834,783

$   

803,540

$   

842,304

$   

Provision for Taxes

9,146

47,415

27,714

48,087

57,437

29,608

59,512

596,590

54,495

Income Before Provision for Taxes

334,383

$   

510,187

$   

713,956

$   

823,078

$   

1,059,077

$

764,587

$   

894,295

$   

1,400,130

$

896,799

$   

Transaction-Related Charges (a)

64,136

69,956

60,029

70,816

56,979

57,831

55,714

(347,055)

52,489

Amortization of Intangibles (b)

23,208

23,208

22,054

15,996

11,344

11,344

11,344

14,265

14,873

(Income)

Associated

with

Non-Controlling

Interests

of

Consolidated

Entities (c)

(33,685)

(62,680)

(93,417)

(60,347)

(140,685)

(113,935)

(116,661)

(139,964)

(154,224)

Economic Income

388,042

$   

540,671

$   

702,622

$   

849,543

$   

986,715

$   

719,827

$   

844,692

$   

927,376

$   

809,937

$   

(Taxes) (d)

(16,794)

(21,234)

(20,985)

(33,250)

(18,805)

(24,168)

(22,552)

(36,006)

(18,228)

Economic Net Income

371,248

$   

519,437

$   

681,637

$   

816,293

$   

967,910

$   

695,659

$   

822,140

$   

891,370

$   

791,709

$   

Taxes (d)

16,794

21,234

20,985

33,250

18,805

24,168

22,552

36,006

18,228

Performance Revenues Adjustment (e)

(315,414)

(448,158)

(663,108)

(750,456)

(1,034,381)

(739,106)

(877,932)

(1,060,401)

(910,547)

Principal Investment Income Adjustment (f)

26,650

(59,771)

(87,887)

(99,282)

(103,959)

(67,720)

(77,572)

(55,737)

(42,671)

Other Revenue (g)

6,248

(8,546)

425

(52,839)

8,287

62,469

34,144

35,151

60,894

Net Interest Loss (h)

13,351

13,546

14,184

10,542

10,954

6,591

2,864

29,509

1,853

Performance Compensation and Benefits Adjustment (i)

106,827

179,848

263,224

317,679

396,476

303,680

356,371

434,511

373,159

Equity-Based Compensation -

Non-Performance Compensation Related (j)

20,963

16,852

16,624

19,308

26,650

25,442

24,141

17,177

40,248

Fee Related Earnings

246,667

$   

234,442

$   

246,084

$   

294,495

$   

290,742

$   

311,183

$   

306,708

$   

327,586

$   

332,873

$   

Net Realized Performance Revenues (k)

187,794

251,935

352,008

327,053

772,780

429,177

293,339

948,412

167,384

Realized Principal Investment Income (l)

(10,101)

53,670

60,634

95,666

202,894

100,887

60,188

72,225

28,693

Net Interest (Loss) (h)

(13,351)

(13,546)

(14,184)

(10,542)

(10,954)

(6,591)

(2,864)

(29,509)

(1,853)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement (m)

(16,794)

(31,588)

(51,089)

(67,678)

(25,324)

(53,291)

(31,805)

(79,568)

(25,042)

Distributable Earnings

394,215

$   

494,913

$   

593,453

$   

638,994

$   

1,230,138

$

781,365

$   

625,566

$   

1,239,146

$

502,055

$   

Interest Expense (n)

36,497

36,020

36,419

39,086

39,450

40,294

40,749

72,345

38,238

Taxes and Related Payables Including Payable Under Tax Receivable Agreement (m)

16,794

31,588

51,089

67,678

25,324

53,291

31,805

79,568

25,042

Depreciation and Amortization

6,292

6,331

7,338

12,010

6,216

6,392

6,027

6,593

6,251

Adjusted EBITDA

453,798

$   

568,852

$   

688,299

$   

757,768

$   

1,301,128

$

881,342

$   

704,147

$   

1,397,652

$

571,586

$   

Blackstone

27

Notes on page 28.

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Years

(Dollars in Thousands)

2013

2014

2015

2016

2017

1Q'17 LTM

1Q'18 LTM

Net Income Attributable to The Blackstone Group L.P.

1,175,346

$      

1,588,827

$      

713,188

$         

1,039,014

$      

1,471,374

$      

1,330,849

$      

1,387,337

$      

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

1,343,874

1,705,001

686,529

960,099

1,392,323

1,237,667

1,303,485

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

198,557

335,070

219,900

246,152

497,439

344,751

514,253

Net Income Attributable to Redeemable Non-Controlling

Interests in Consolidated Entities

183,315

74,794

11,145

3,977

13,806

12,378

10,531

Net Income

2,901,092

$      

3,703,692

$      

1,630,762

$      

2,249,242

$      

3,374,942

$      

2,925,645

$      

3,215,606

$      

Provision for Taxes

255,642

291,173

190,398

132,362

743,147

180,653

740,205

Income Before Provision for Taxes

3,156,734

$      

3,994,865

$      

1,821,160

$      

2,381,604

$      

4,118,089

$      

3,106,298

$      

3,955,811

$      

Transaction-Related Charges (a)

722,707

856,382

489,563

264,937

(176,531)

257,780

(181,021)

Amortization of Intangibles (b)

106,643

111,254

104,530

84,466

48,297

72,602

51,826

(Income)

Associated

with

Non-Controlling

Interests

of

Consolidated

Entities

(c)

(381,872)

(409,864)

(231,045)

(250,129)

(511,245)

(357,129)

(524,784)

Economic Income

3,604,212

$      

4,552,637

$      

2,184,208

$      

2,480,878

$      

3,478,610

$      

3,079,551

$      

3,301,832

$      

(Taxes) (d)

(82,164)

(199,512)

(27,527)

(92,263)

(101,531)

(94,274)

(100,954)

Economic Net Income

3,522,048

$      

4,353,125

$      

2,156,681

$      

2,388,615

$      

3,377,079

$      

2,985,277

$      

3,200,878

$      

Taxes (d)

82,164

199,512

27,527

92,263

101,531

94,274

100,954

Performance Revenues Adjustment (e)

(3,573,819)

(4,408,748)

(1,810,253)

(2,177,136)

(3,711,820)

(2,896,103)

(3,587,986)

Principal Investment Income Adjustment (f)

(687,805)

(471,628)

(52,849)

(220,290)

(304,988)

(350,899)

(243,700)

Other Revenue (g)

(10,308)

(9,405)

(8,500)

(54,712)

140,051

(52,673)

192,658

Net Interest Loss (h)

32,968

36,511

44,181

51,623

49,918

49,226

40,817

Performance Compensation and Benefits Adjustment (i)

1,422,455

1,294,235

570,324

867,578

1,491,038

1,157,227

1,467,721

Equity-Based Compensation -

Non-Performance Compensation Related (j)

130,124

45,133

96,901

73,747

93,410

79,434

107,008

Fee Related Earnings

917,827

$         

1,038,735

$      

1,024,012

$      

1,021,688

$      

1,236,219

$      

1,065,763

$      

1,278,350

$      

Net Realized Performance Revenues (k)

960,175

1,789,692

2,527,019

1,118,790

2,443,708

1,703,776

1,838,312

Realized Principal Investment Income (l)

170,471

543,425

418,808

199,869

436,194

412,864

261,993

Net Interest (Loss) (h)

(32,968)

(36,511)

(44,181)

(51,623)

(49,918)

(49,226)

(40,817)

Taxes and Related Payables Including Payable Under Tax Receivable Agreement (m)

(156,734)

(280,788)

(90,470)

(167,149)

(189,988)

(175,679)

(189,706)

Distributable Earnings

1,858,771

$      

3,054,553

$      

3,835,188

$      

2,121,575

$      

3,876,215

$      

2,957,498

$      

3,148,132

$      

Interest Expense (n)

103,904

112,563

139,842

148,022

192,838

150,975

191,626

Taxes and Related Payables Including Payable Under Tax Receivable Agreement (m)

156,734

280,788

90,470

167,149

189,988

175,679

189,706

Depreciation and Amortization

35,441

32,300

27,213

31,971

25,228

31,895

25,263

Adjusted EBITDA

2,154,850

$      

3,480,204

$      

4,092,713

$      

2,468,717

$      

4,284,269

$      

3,316,047

$      

3,554,727

$      

Blackstone

28

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Notes

Note:

See page 35, Definitions and Distribution Policy.

(a)

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

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

outside of annual deferred compensation, adjustments to the Tax Receivable Agreement Liability and other corporate actions.

(b)

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

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

(c)

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

Interests of Consolidated Entities.

(d)

Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before

Provision for Taxes and adjusted to exclude the tax impact on any divestitures.

(e)

This adjustment removes from EI the total segment amount of Performance Revenues, comprised of Incentive Fees and Performance

Allocations.

(f)

This adjustment removes from EI the total segment amount of Principal Investment Income (Loss).

(g)

This adjustment removes from EI the total segment amount of Other Revenue.

(h)

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

(i)

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

Performance Revenues, including Performance Compensation Related equity-based award expense.

(j)

Represents Non-Performance Compensation Related equity-based award expense and excludes all transaction-related equity-based charges.

(k)

Represents the adjustment for realized Performance Revenues net of corresponding actual amounts due under Blackstone’s profit sharing plans

related thereto.

(l)

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

(m)

Taxes

and

Related

Payables

Including

Payable

Under

Tax

Receivable

Agreement

represent

the

total

GAAP

tax

provision

adjusted

to

include

only

the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes and to exclude the tax impact on any divestitures and

the Payable Under Tax Receivable Agreement.

(n)

Represents Total Segment Interest Expense.

Blackstone

29

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Management and Advisory Fees, Net

GAAP

645,484

$              

690,857

$              

685,922

$              

729,059

$              

728,849

$              

2,497,356

$           

2,834,687

$           

Consolidation and Elimination Adjustment (a)

4,097

5,979

6,060

3,333

7,195

2,017

22,567

Total Segment

649,581

$              

696,836

$              

691,982

$              

732,392

$              

736,044

$              

2,499,373

$           

2,857,254

$           

Performance Revenue

GAAP

Incentive Fees

46,511

40,303

35,513

120,187

12,566

168,432

208,569

Investment Income - Realized Performance Allocations

1,111,905

602,662

434,982

1,422,262

269,640

2,376,023

2,729,546

Investment Income - Unrealized Performance Allocations

(124,621)

95,532

406,649

(483,033)

628,089

348,981

647,237

GAAP

1,033,795

$           

738,497

$              

877,144

$              

1,059,416

$           

910,295

$              

2,893,436

$           

3,585,352

$           

Elimination Adjustment (b)

586

609

788

985

252

2,667

2,634

Total Segment

1,034,381

$           

739,106

$               

877,932

$               

1,060,401

$           

910,547

$               

2,896,103

$           

3,587,986

$           

Principal Investment Income

GAAP

Investment Income - Realized Principal Investment Income

251,344

125,058

74,805

184,562

42,145

542,082

426,570

Investment Income - Unrealized Principal Investment Income

(40,188)

7,275

96,085

(20,567)

111,774

33,633

194,567

GAAP

211,156

$              

132,333

$              

170,890

$              

163,995

$              

153,919

$              

575,715

$              

621,137

$              

Consolidation and Elimination Adjustment (c)

(107,197)

(64,613)

(93,318)

(108,258)

(111,248)

(224,816)

(377,437)

Total Segment

103,959

$              

67,720

$                

77,572

$                

55,737

$                

42,671

$                

350,899

$              

243,700

$              

Interest, Dividend and Other Revenue

GAAP

Interest and Dividend Revenue

28,495

33,703

36,974

40,524

35,385

101,144

146,586

Other

(4,212)

(59,664)

(35,572)

(33,781)

(59,317)

56,153

(188,334)

GAAP

24,283

$                

(25,961)

$               

1,402

$                  

6,743

$                  

(23,932)

$               

157,297

$              

(41,748)

$               

Consolidation and Elimination Adjustment (d)

(4,074)

(2,805)

2,339

942

(577)

(2,875)

(101)

Total Segment

20,209

$                

(28,766)

$               

3,741

$                  

7,685

$                  

(24,509)

$               

154,422

$              

(41,849)

$               

Total Revenues

GAAP

1,914,718

$           

1,535,726

$           

1,735,358

$           

1,959,213

$           

1,769,131

$           

6,123,804

$           

6,999,428

$           

Consolidation and Elimination Adjustment (e)

(106,588)

(60,830)

(84,131)

(102,998)

(104,378)

(223,007)

(352,337)

Total Segment

1,808,130

$           

1,474,896

$           

1,651,227

$           

1,856,215

$           

1,664,753

$           

5,900,797

$           

6,647,091

$           

Compensation

GAAP

351,589

$              

367,203

$              

359,209

$              

364,484

$              

389,403

$              

1,340,994

$           

1,480,299

$           

Consolidation Adjustment (f)

(62,562)

(61,946)

(56,411)

(58,450)

(53,076)

(256,154)

(229,883)

Total Segment

289,027

$              

305,257

$              

302,798

$              

306,034

$              

336,327

$              

1,084,840

$           

1,250,416

$           

Notes on page 30.

Continued...

Reconciliation of GAAP to Total Segment Measures

Blackstone

30

This

analysis

reconciles

the

summarized

components

of

Total

Segments

(pages

5-9)

to

their

respective

Total

Segment

amounts

(page

15)

and

to

their

equivalent

GAAP

measures,

reported

on

the

Consolidated

Statements

of

Operations

(page

1).

(a)

Represents (1) the add back of management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue representing the reimbursement of certain expenses by

Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the segments.

(b)

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

(c)

Represents (1) the add back of investment income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the inclusion of investment income on non-

consolidated

Blackstone

Funds

which

in

GAAP

is

recorded

as

Other

Income

(Loss)

-

Net

Gains

(Losses)

from

Fund

Investment

Activities.

(d)

Represents (1) the add back of other revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of certain transaction-related amounts.

(e)

Represents the total consolidation and elimination adjustments for Total Revenues.

(f)

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

(g)

Represents interest expense associated with the Tax Receivable Agreement.

(h)

Represents the removal of (1) the amortization of transaction based intangibles, and (2) expenses reimbursed by Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the

segments.

(i)

Represents (1) the reversal of Fund Expenses, which are attributable to consolidated Blackstone Funds and not a component of the segments, and (2) total consolidation and elimination adjustments for Total Expenses.

(j)

Represents the inclusion of Other Income (Loss) which is included in GAAP but not as a component of the segments.

(k)

Represents the total consolidation and elimination adjustments between GAAP and Total Segment results.

Reconciliation

of

GAAP

to

Total

Segment

Measures

–

Continued

(Dollars in Thousands)

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

1Q'17 LTM

1Q'18 LTM

Performance Compensation

GAAP

Incentive Fee Compensation

22,465

$                

21,032

$                

18,332

$                

43,450

$                

6,662

$                  

77,601

$                

89,476

$                

Performance Allocations Compensation - Realized

366,478

195,738

162,505

557,244

112,062

772,766

1,027,549

Performance Allocations Compensation - Unrealized

7,533

86,910

175,534

(166,183)

254,435

306,860

350,696

GAAP

396,476

$              

303,680

$              

356,371

$              

434,511

$              

373,159

$              

1,157,227

$           

1,467,721

$           

Total Segment

396,476

$              

303,680

$              

356,371

$              

434,511

$              

373,159

$              

1,157,227

$           

1,467,721

$           

Interest Expense

GAAP

40,246

$                

41,089

$                

41,545

$                

74,606

$                

38,671

$                

155,544

$              

195,911

$              

Consolidation Adjustment (g)

(796)

(795)

(796)

(2,261)

(433)

(4,569)

(4,285)

Total Segment

39,450

$                

40,294

$                

40,749

$                

72,345

$                

38,238

$                

150,975

$              

191,626

$              

GAAP General, Administrative and Other to Total Segment Other Operating Expenses

GAAP

109,386

$              

119,552

$              

121,036

$              

138,608

$              

126,713

$              

524,453

$              

505,909

$              

Consolidation and Elimination Adjustment (h)

(12,924)

(13,714)

(14,419)

   ��             

(22,659)

(19,621)

(96,249)

(70,413)

Total Segment

96,462

$                

105,838

$              

106,617

$              

115,949

$              

107,092

$              

428,204

$              

435,496

$              

Total Expenses

GAAP

921,773

$              

881,193

$              

904,511

$              

1,044,901

$           

982,931

$              

3,249,246

$           

3,813,536

$           

Less: GAAP Fund Expenses (i)

(24,076)

(49,669)

(26,350)

(32,692)

(54,985)

(71,028)

(163,696)

Consolidation and Elimination Adjustment (i)

(76,282)

(76,455)

(71,626)

(83,370)

(73,130)

(356,972)

(304,581)

Total Segment

821,415

$              

755,069

$              

806,535

$              

928,839

$              

854,816

$              

2,821,246

$           

3,345,259

$           

GAAP Income Before Provision for Taxes to Total Segment Economic Income

GAAP

Revenues Less Expenses

992,945

654,533

830,847

914,312

786,200

2,874,558

3,185,892

Other Income (j)

66,132

110,054

63,448

485,818

110,599

231,740

769,919

GAAP

1,059,077

$           

764,587

$              

894,295

$              

1,400,130

$           

896,799

$              

3,106,298

$           

3,955,811

$           

Consolidation and Elimination Adjustment (k)

(72,362)

(44,760)

(49,603)

(472,754)

(86,862)

(26,747)

(653,979)

Total Segment

986,715

$              

719,827

$              

844,692

$              

927,376

$              

809,937

$              

3,079,551

$           

3,301,832

$           

Walkdown of Financial Metrics

(Dollars in Thousands, Except per Unit Data)

1Q'18

1Q'18 LTM

Results

Per Unit

Results

Per Unit

Management and Advisory Fees, Net

736,044

$            

2,857,254

$         

Fee Related Compensation

(296,079)

(1,143,408)

Other Operating Expenses

(107,092)

(435,496)

Fee Related Earnings

332,873

$            

0.28

$                  

1,278,350

$         

1.07

$                  

Net Realized Performance Revenues

167,384

1,838,312

Realized Principal Investment Income

28,693

261,993

Net Interest (Loss)

(1,853)

(40,817)

Taxes and Related Payables

(25,042)

(189,706)

Distributable Earnings

502,055

$            

0.41

$                  

3,148,132

$         

2.56

$                  

Net Unrealized Performance Revenues

373,904

296,289

Unrealized Principal Investment Income

13,978

(18,293)

Other Revenue

(60,894)

(192,658)

Add Back: Related Payables

6,814

88,752

Less: Equity-Based Compensation

(44,148)

(121,344)

Economic Net Income

791,709

$            

0.65

$                  

3,200,878

$         

2.65

$                  

Blackstone

31

See pages 32 and 33, Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on page 15, Total

Segments. 1Q’18 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 1Q’18 DE per Unit is based on DE attributable to Common Unitholders (see page 20, Unitholder Distribution) and end of

period Total Common Units Outstanding; and 1Q’18 ENI per Unit is based on Weighted-Average ENI Adjusted Units. 1Q’18 LTM per Unit represents the sum of the last four quarters. See page 34, Unit Rollforward.

Blackstone

32

(Dollars in Thousands)

1Q'16

2Q'16

3Q'16

4Q'16

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

Compensation

(287,403)

$

(286,155)

$

(268,595)

$

(241,063)

$

(289,027)

$

(305,257)

$

(302,798)

$

(306,034)

$

(336,327)

$

Less: Equity-Based Compensation - Non-Performance Compensation Related (a)

20,963

16,852

16,624

19,308

26,650

25,442

24,141

17,177

40,248

Fee Related Compensation

(266,440)

$

(269,303)

$

(251,971)

$

(221,755)

$

(262,377)

$

(279,815)

$

(278,657)

$

(288,857)

$

(296,079)

$

Realized Incentive Fees

28,007

29,231

26,992

66,811

46,511

40,303

35,513

122,057

12,566

Realized Performance Allocations

231,352

323,866

507,325

433,432

1,111,948

603,096

434,994

1,422,830

269,642

Less: Realized Incentive Fees Compensation

(13,785)

(14,763)

(13,003)

(27,370)

(22,465)

(21,032)

(18,332)

(43,450)

(6,662)

Less: Realized Performance Allocations Compensation

(58,841)

(88,069)

(170,860)

(147,359)

(366,478)

(195,738)

(162,505)

(557,244)

(112,062)

Plus: Equity-Based Compensation - Performance Compensation Related (a)

1,061

1,670

1,554

1,539

3,264

2,548

3,669

4,219

3,900

Net Realized Performance Revenues

187,794

$ 

251,935

$ 

352,008

$ 

327,053

$ 

772,780

$ 

429,177

$ 

293,339

$ 

948,412

$ 

167,384

$ 

Interest Income and Dividend Revenue

23,146

22,474

22,235

28,544

28,496

33,703

37,885

42,836

36,385

Less: Interest Expense

(36,497)

(36,020)

(36,419)

(39,086)

(39,450)

(40,294)

(40,749)

(72,345)

(38,238)

Net Interest (Loss)

(13,351)

$  

(13,546)

$  

(14,184)

$  

(10,542)

$  

(10,954)

$  

(6,591)

$    

(2,864)

$    

(29,509)

$  

(1,853)

$    

Taxes and Related Payables (b)

(16,794)

$  

(31,588)

$  

(51,089)

$  

(67,678)

$  

(25,324)

$  

(53,291)

$  

(31,805)

$  

(79,568)

$  

(25,042)

$  

Unrealized Performance Allocations

56,055

95,061

128,791

250,213

(124,078)

95,707

407,425

(484,486)

628,339

Less: Unrealized Performance Allocations Compensation

(34,201)

(77,016)

(79,361)

(142,950)

(7,533)

(86,910)

(175,534)

166,183

(254,435)

Net Unrealized Performance Revenues

21,854

$   

18,045

$   

49,430

$   

107,263

$ 

(131,611)

$

8,797

$     

231,891

$ 

(318,303)

$

373,904

$ 

Related Payables (c)

-

$          

10,354

$   

30,104

$   

34,428

$   

6,519

$     

29,123

$   

9,253

$     

43,562

$   

6,814

$     

Equity-Based Compensation - Non-Performance Compensation Related (a)

20,963

16,852

16,624

19,308

26,650

25,442

24,141

17,177

40,248

Plus: Equity-Based Compensation - Performance Compensation Related (a)

1,061

1,670

1,554

1,539

3,264

2,548

3,669

4,219

3,900

Equity-Based Compensation

22,024

$   

18,522

$   

18,178

$   

20,847

$   

29,914

$   

27,990

$   

27,810

$   

21,396

$   

44,148

$   

Walkdown

of

Financial

Metrics

–

Calculation

of

Non-GAAP

Financial

Metrics

–

Quarters

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

(a)

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

(b)

See

page

26,

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Quarters

for

this

adjustment.

(c)

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

Blackstone

33

Walkdown

of

Financial

Metrics

–

Calculation

of

Non-GAAP

Financial

Metrics

–

Years

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

(a)

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

(b)

See

page

27,

Reconciliation

of

GAAP

to

Non-GAAP

Measures

–

Years

for

this

adjustment.

(c)

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

(Dollars in Thousands)

2013

2014

2015

2016

2017

1Q'17 LTM

1Q'18 LTM

Compensation

(1,115,640)

$   

(1,153,511)

$   

(1,189,219)

$   

(1,083,216)

$   

(1,203,116)

$   

(1,084,840)

$   

(1,250,416)

$   

Less: Equity-Based Compensation - Non-Performance Compensation Related (a)

130,124

45,133

96,901

73,747

93,410

79,434

107,008

Fee Related Compensation

(985,516)

$       

(1,108,378)

$   

(1,092,318)

$   

(1,009,469)

$   

(1,109,706)

$   

(1,005,406)

$   

(1,143,408)

$   

Realized Incentive Fees

231,000

173,106

168,554

151,041

244,384

169,545

210,439

Realized Performance Allocations

1,187,291

2,539,235

3,232,068

1,495,975

3,572,868

2,376,571

2,730,562

Less: Realized Incentive Fees Compensation

(102,149)

(78,271)

(77,291)

(68,921)

(105,279)

(77,601)

(89,476)

Less: Realized Performance Allocations Compensation

(355,967)

(847,471)

(802,455)

(465,129)

(1,281,965)

(772,766)

(1,027,549)

Plus: Equity-Based Compensation - Performance Compensation Related (a)

-

3,093

6,143

5,824

13,700

8,027

14,336

Net Realized Performance Revenues

960,175

$        

1,789,692

$     

2,527,019

$     

1,118,790

$     

2,443,708

$     

1,703,776

$     

1,838,312

$     

Interest Income and Dividend Revenue

70,936

76,052

95,661

96,399

142,920

101,749

150,809

Less: Interest Expense

(103,904)

(112,563)

(139,842)

(148,022)

(192,838)

(150,975)

(191,626)

Net Interest (Loss)

(32,968)

$         

(36,511)

$         

(44,181)

$         

(51,623)

$         

(49,918)

$         

(49,226)

$         

(40,817)

$         

Taxes and Related Payables (b)

(156,734)

$       

(280,788)

$       

(90,470)

$         

(167,149)

$       

(189,988)

$       

(175,679)

$       

(189,706)

$       

Unrealized Performance Allocations

2,155,528

1,696,407

(1,590,369)

530,120

(105,432)

349,987

646,985

Less: Unrealized Performance Allocations Compensation

(964,339)

(368,493)

309,422

(333,528)

(103,794)

(306,860)

(350,696)

Net Unrealized Performance Revenues

1,191,189

$     

1,327,914

$     

(1,280,947)

$   

196,592

$        

(209,226)

$       

43,127

$          

296,289

$        

Related Payables (c)

74,570

$          

81,276

$          

62,943

$          

74,886

$          

88,457

$          

81,405

$          

88,752

$          

Equity-Based Compensation - Non-Performance Compensation Related (a)

130,124

45,133

96,901

73,747

93,410

79,434

107,008

Plus: Equity-Based Compensation - Performance Compensation Related (a)

-

3,093

6,143

5,824

13,700

8,027

14,336

Equity-Based Compensation

130,124

$        

48,226

$          

103,044

$        

79,571

$          

107,110

$        

87,461

$          

121,344

$        

Blackstone

34

Unit Rollforward

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

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

1Q'17

2Q'17

3Q'17

4Q'17

1Q'18

Total GAAP Weighted-Average Common Units Outstanding - Basic

660,939,708

664,681,299

667,384,727

668,781,321

674,479,140

Adjustments:

Weighted-Average Unvested Deferred Restricted Common Units

809,184

998,974

663,474

702,960

198,934

Weighted-Average Blackstone Holdings Partnership Units

537,758,091

534,326,066

532,454,091

-

535,895,780

Total GAAP Weighted-Average Units Outstanding - Diluted

1,199,506,983

1,200,006,339

1,200,502,292

669,484,281

1,210,573,854

Adjustments:

Weighted-Average Blackstone Holdings Partnership Units

-

-

-

531,139,507

-

Weighted-Average Economic Net Income Adjusted Units

1,199,506,983

1,200,006,339

1,200,502,292

1,200,623,788

1,210,573,854

Economic Net Income Adjusted Units, End of Period

1,199,565,618

1,199,890,628

1,200,559,970

1,200,553,187

1,210,853,058

Total Common Units Outstanding

661,126,963

665,503,840

667,027,762

668,733,356

676,168,743

Adjustments:

Blackstone Holdings Partnership Units

535,206,716

530,678,056

532,235,827

530,472,212

528,967,264

Distributable Earnings Units Outstanding

1,196,333,679

1,196,181,896

1,199,263,589

1,199,205,568

1,205,136,007

Blackstone

35

Definitions and Distribution Policy

Blackstone

discloses

the

following

financial

measures

that

are

calculated

and

presented

on

the

basis

of

methodologies

other

than

in

accordance

with

generally

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

•

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

compensation decisions across its four segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related

charges arise from Blackstone’s initial public offering (“IPO”) and certain long-term retention programs outside of annual deferred compensation and other

corporate actions, including acquisitions. Transaction-related charges include certain equity-based compensation charges, the amortization of intangible

assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds

Blackstone manages.

•

Economic Net Income, or “ENI”, represents EI adjusted to include current period taxes. Taxes represent the total GAAP tax provision adjusted to include only

the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes and adjusted to exclude the tax impact of any divestitures.

•

Performance Revenues collectively refers to: (a) Realized Incentive Fees, and (b) Performance Allocations. Performance Compensation collectively refers to

the related compensation and benefit amounts for: (a) Realized Incentive Fees Compensation, and (b) Performance Allocations.

•

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

to

performance

revenue

and

related

performance

compensation,

(b)

income

earned

from

Blackstone’s

investments

in

the

Blackstone

Funds,

(c)

net

interest

income (loss), (d) equity-based compensation, and (e) Other Revenue. Blackstone uses FRE as a measure to assess whether recurring revenue from its

businesses

is

sufficient

to

adequately

cover

all

of

its

operating

expenses

and

generate

profits.

FRE

equals

contractual

management

fee

revenues

less

(a)

compensation expenses (which excludes amortization of equity-based awards, and Performance Compensation), and (b) other operating expenses.

•

Distributable Earnings, or “DE”, which is derived from Blackstone’s segment reported results, is a supplemental measure to assess performance and amounts

available

for

distributions

to

Blackstone

unitholders,

including

Blackstone

personnel

and

others

who

are

limited

partners

of

the

Blackstone

Holdings

partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a

component of ENI, is the sum across all segments of: (a) Total Management, Advisory and Other Fees, Net, (b) Interest and Dividend Revenue, (c) Realized

Incentive Fees, (d)

Realized Performance Allocations, and (e) Realized Principal

Investment Income (Loss); less (a) Compensation, excluding the expense of

equity-based

awards,

(b)

Realized

Incentive

Fee

Compensation,

(c)

Realized

Performance

Allocations

Compensation,

(d)

Interest

Expense,

(e)

Other

Operating

Expenses, and (f) Taxes and Related Payables Under the Tax Receivable Agreement. DE is reconciled to Blackstone’s Consolidated Statement of Operations.

•

Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, as a supplemental non-GAAP measure

derived from segment reported results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents DE plus the addition of

(a)

Interest Expense, (b) Taxes and Related Payables Including Payable Under Tax Receivable Agreement, and (c) Depreciation and Amortization.

Distribution

Policy.

Blackstone’s

intention

is

to

distribute

quarterly

to

common

unitholders

approximately

85%

of

The

Blackstone

Group

L.P.’s

share

of

Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s general partner to be necessary or appropriate to provide for the

conduct

of

its

business,

to

make

appropriate

investments

in

its

business

and

funds,

to

comply

with

applicable

law,

any

of

its

debt

instruments

or

other

agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing

quarter. The amount to be distributed could also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration

and payment of any distributions are at the sole discretion of Blackstone’s general partner and may change its distribution policy at any time, including, without

limitation, to eliminate such distributions entirely.

Blackstone

36

Forward-Looking Statements

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

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

Blackstone’s operations, financial performance and unit repurchase and distribution activities. You can identify these forward-looking

statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,”

“seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other

comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will

be important factors that could cause actual outcomes

or

results

to

differ

materially

from

those

indicated

in

these

statements.

Blackstone

believes

these

factors

include

but

are not limited to those described under the section entitled “Risk Factors” in its Annual

Report on Form 10-K for the fiscal year ended December 31, 2017, as such factors may be updated from time to time in its periodic

filings with the Securities and Exchange Commission, which are accessible on the SEC’s website at www.sec.gov. These factors should

not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this

presentation and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement,

whether as a result of new information, future developments or otherwise.

This presentation does not constitute an offer of any Blackstone Fund.