Blackstone 8K Reports Fourth Quarter and Full Year 2018 Results | BX 31 Jan 19

Exhibit 99.1

LOGO

Blackstone Reports Fourth Quarter and Full Year 2018 Results

New York, January 31, 2019: Blackstone (NYSE:BX) today reported its fourth quarter and full year 2018 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone again delivered attractive investment performance for our limited partners in 2018, with nearly all of our flagship strategies handily beating their relevant indices despite significant market volatility. Inflows of more than $100 billion last year coupled with positive performance drove assets under management to a record $472 billion. And for our shareholders, we returned $1 billion through distributions and buybacks for the second consecutive quarter, and $3 billion for the full year.”

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

Distribution

Blackstone has declared a quarterly distribution of $0.58 per common unit to record holders of common units at the close of business on February 11, 2019. This distribution will be paid on February 19, 2019.

Quarterly Investor Call Details

Blackstone will host a conference call on January 31, 2019 at 9:00 a.m. ET to discuss fourth quarter and full year 2018 results. The conference call can be accessed via the Shareholders section of Blackstone’s website atwww.blackstone.com or by dialing+1 (877) 391-6747 (U.S. domestic) or+1 (617) 597-9291 (international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available onwww.blackstone.com or by dialing+1 (888) 286-8010 (U.S. domestic) or+1 (617) 801-6888 (international), pass code 420 922 04#.

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 $472 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity,non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available atwww.blackstone.com. Follow Blackstone on Twitter@Blackstone.

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations, 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

January 31, 2019

Blackstone’s Fourth Quarter and Full Year

2018 Earnings

Blackstone

Blackstone’s Fourth Quarter and Full Year 2018 GAAP Results

GAAP

Net

Loss

was

$79

million

for

the

quarter

and

GAAP

Net

Income

was

$3.3

billion

for

the

year.

GAAP

Net

Loss

Attributable

The

Blackstone

Group

L.P.

was

$11

million

for

the

quarter

and

GAAP

Net

Income

Attributable

The

Blackstone

Group

L.P.

was

$1.5

billion

for

the

year.

n/m = not meaningful. Effective January 1, 2018, Blackstone adopted new GAAP guidance regarding revenue recognition. All prior periods have been conformed to the new guidance.

Income (Loss) Before Provision for Taxes Margin is calculated by dividing Income (Loss) Before Provision for Taxes by Total Revenues.

% Change

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

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Revenues

Management and Advisory Fees, Net

729,059

797,554

2,751,322

3,027,796

10%

Incentive Fees

120,187

15,797

(87)%

242,514

57,540

(76)%

Investment Income (Loss)

Performance Allocations

Realized

1,422,262

511,388

(64)%

3,571,811

1,876,507

(47)%

Unrealized

(483,033)

(806,305)

67%

(105,473)

561,373

n/m

Principal Investments

Realized

184,562

109,901

(40)%

635,769

415,862

(35)%

Unrealized

(20,567)

(218,165)

n/m

42,605

49,917

17%

Total Investment Income (Loss)

1,103,224

(403,181)

n/m

4,144,712

2,903,659

(30)%

Interest and Dividend Revenue

40,524

47,885

18%

139,696

171,947

23%

Other

(33,781)

46,923

n/m

(133,229)

672,317

n/m

Total Revenues

1,959,213

504,978

(74)%

7,145,015

6,833,259

(4)%

Expenses

Compensation and Benefits

Compensation

364,484

373,790

1,442,485

1,609,957

12%

Incentive Fee Compensation

43,450

10,260

(76)%

105,279

33,916

(68)%

Performance Allocations Compensation

Realized

557,244

212,174

(62)%

1,281,965

711,076

(45)%

Unrealized

(166,183)

(302,868)

82%

103,794

319,742

208%

Total Compensation and Benefits

798,995

293,356

(63)%

2,933,523

2,674,691

(9)%

General, Administrative and Other

138,608

153,519

11%

488,582

594,873

22%

Interest Expense

74,606

44,644

(40)%

197,486

163,990

(17)%

Fund Expenses

32,692

3,577

(89)%

132,787

78,486

(41)%

Total Expenses

1,044,901

495,096

(53)%

3,752,378

3,512,040

(6)%

Other Income (Loss)

Reduction of Tax Receivable Agreement Liability

403,855

(100)%

403,855

(100)%

Net Gains (Losses) from Fund Investment Activities

81,963

(59,234)

n/m

321,597

191,722

(40)%

Income (Loss) Before Provision for Taxes

1,400,130

(49,352)

n/m

4,118,089

3,512,941

(15)%

Provision for Taxes

596,590

29,366

(95)%

743,147

249,390

(66)%

Net Income (Loss)

803,540

(78,718)

n/m

3,374,942

3,263,551

(3)%

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

7,600

(4,303)

n/m

13,806

(2,104)

n/m

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

132,364

(68,800)

n/m

497,439

358,878

(28)%

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

359,438

5,253

(99)%

1,392,323

1,364,989

(2)%

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

304,138

(10,868)

n/m

1,471,374

1,541,788

Net Income (Loss) per Common Unit, Basic

0.45

(0.02)

n/m

2.21

2.27

Net Income (Loss) per Common Unit, Diluted

0.45

(0.02)

n/m

2.21

2.26

Income (Loss) Before Provision for Taxes Margin

71.5%

(9.8)%

57.6%

51.4%

Blackstone

Blackstone’s Fourth Quarter and Full Year 2018 Highlights

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. See pages 30-31, Definitions and Distribution Policy, for definitions of terms used throughout this presentation.

Financial

Measures

Financial

Measures

Fee Related Earnings (“FRE”) of $433 million ($0.36/unit) in the quarter, up 23% year-

over-year

•

FRE was $1.5 billion for the year ($1.21/unit), up 9% year-over-year

Distributable Earnings (“DE”) of $722 million ($0.57/unit) in the quarter, including

$331

million of Net Realizations

•

DE was $2.7 billion for the year ($2.17/unit)

Net Accrued Performance Revenues receivable of $3.5 billion ($2.94/unit), up 5% year-

over-year

Capital

Metrics

Capital

Metrics

Total Assets Under Management (“AUM”) of $472.2 billion, up 9% year-over-year

Inflows of $38.6 billion in the quarter and $101.0 billion for the year

Realizations of $8.8 billion in the quarter and $34.1 billion for the year

Deployment of $16.3 billion in the quarter and $44.7 billion for the year

Unitholder

Distributions

Unitholder

Distributions

Distribution of $0.58 per common unit payable on February 19, 2019, including the final

special cash distribution of $0.10 per unit

•

Distribution of $2.15 per common unit for the year

Repurchased 7.8 million common units in the quarter and 16.0 million common units in

the year, a return of capital of $542 million for the year

DE units outstanding remained flat versus the fourth quarter of 2017

Blackstone

Blackstone’s Fourth Quarter and Full Year 2018 Segment Earnings

Total Segment Revenues represents Net Management and Advisory Fees, Fee Related Performance Revenues, Realized Performance Revenues and Realized Principal Investment Income. Fee Related Earnings per

Unit is based on end of period DE Units Outstanding (see page 23, Unit Summary). DE per Common Unit is based on DE Attributable to Common Unitholders (see page 22, Unitholder Distribution) and end of period

Participating Common Units outstanding. Full Year per Unit amounts represent the sum of the last four quarters. See pages 28-29 for the Reconciliation of GAAP to Total Segment Measures.

% Change

(Dollars in Thousands, Except per Unit Data)

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Management and Advisory Fees, Net

732,392

798,195

2,770,791

3,036,452

10%

Fee Related Performance Revenues

48,089

44,185

(8)%

169,445

123,836

(27)%

Fee Related Compensation

(312,033)

(279,284)

(10)%

(1,185,639)

(1,216,146)

Other Operating Expenses

(115,949)

(130,025)

12%

(424,866)

(488,328)

15%

Fee Related Earnings

352,499

433,071

23%

1,329,731

1,455,814

FRE per Unit

0.29

0.36

24%

1.11

1.21

Realized Performance Revenues

1,496,798

483,697

(68)%

3,647,807

1,811,771

(50)%

Realized Performance Compensation

(573,299)

(199,645)

(65)%

(1,297,611)

(678,141)

(48)%

Realized Principal Investment Income

72,225

47,098

(35)%

436,194

236,058

(46)%

Net Realizations

995,724

331,150

(67)%

2,786,390

1,369,688

(51)%

Total Segment Distributable Earnings

1,348,223

764,221

(43)%

4,116,121

2,825,502

(31)%

Net Interest Income (Loss)

(29,509)

11,923

n/m

(49,918)

21,925

n/m

Taxes and Related Payables

(79,568)

(54,063)

(32)%

(189,988)

(153,865)

(19)%

Distributable Earnings

1,239,146

722,081

(42)%

3,876,215

2,693,562

(31)%

DE per Common Unit

1.00

0.57

(43)%

3.17

2.17

(32)%

Total Segment Revenues

2,349,504

1,373,175

(42)%

7,024,237

5,208,117

(26)%

Total Assets Under Management

434,128,243

472,242,317

434,128,243

472,242,317

Fee-Earning Assets Under Management

335,343,998

342,527,507

335,343,998

342,527,507

Blackstone

Fee Related Earnings

Fee

Earnings

$1.21

per

unit

year-over-year,

record

amount,

and

33%

since

2016.

FRE

margin

increased

from

45.2%

46.1%

year-over-year,

and

has

increased

than

400

basis

points

since

2016.

Fee Related Earnings

(Per Unit)

FRE Margin

$0.91

$1.11

$1.21

2016

2017

2018

FRE

Margin

calculated

dividing

Fee

Earnings

Fee

Revenues

(defined

sum

Total

Segment

Management

and

Advisory

Fees,

Net

and

Fee

Performance

Revenues).

42.0%

45.2%

46.1%

2016

2017

2018

Blackstone

4Q'18

FY'18

Real Estate

Opportunistic Funds

0.6%

9.8%

Core+

2.3%

10.7%

Private Equity

Corporate Private Equity

(2.9)%

19.1%

Tactical Opportunities

0.3%

12.2%

Strategic Partners

5.1%

18.6%

Hedge Fund Solutions

BPS Composite

(2.3)%

2.0%

Credit

Performing Credit

(0.2)%

8.8%

Distressed

(7.3)%

(3.2)%

Investment Performance and Net Accrued Performance Revenues

Investment

performance

during

the

quarter

was

impacted

declines

public

markets,

but

for

the

full

year

nearly

all

strategies

outperformed

relevant

indices.

Net

Accrued

Performance

Revenues

were

$3.5

billion

($2.94/unit),

year-over-year.

•

the

fourth

quarter,

Net

Accrued

Performance

Revenues

decreased

$198

million

along

with

$314

million

Net

Realized

Distributions.

Net Accrued

Performance Revenues

(Dollars in Millions)

Investment Performance

(Appreciation / Gross Returns)

$3,348

$4,035

$3,523

$(198 )

$314

4Q'17

3Q'18

Net Performance

Revenues

Net Realized

Distributions

4Q'18

Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Hedge Fund Solutions and Credit. Appreciation for core+ funds excludes BREIT. BPS Composite net returns were (2.4)% and

1.2% for 4Q’18 and FY’18, respectively. Performing Credit net composite returns were (0.6)% and 5.9% for 4Q’18 and FY’18, respectively. Distressed net composite returns were (5.9)% and (3.4)% for 4Q’18 and FY’18, respectively. Net

Realized Distributions excludes Net Performance Revenues realized, but not yet distributed as of the reporting date and included in the Net Accrued Performance Revenues balance.

Blackstone

Capital Metrics Activity

Inflows

were

$38.6

billion

the

quarter,

bringing

full

year

inflows

$101.0

billion.

•

Notable

inflows

the

quarter

include

first

closes

$15.4

billion

for

the

ninth

global

real

estate

opportunistic

fund

and

$3.4

billion

for

the

eighth

Strategic

Partners

secondaries

fund.

Realizations

were

$8.8

billion

the

quarter,

bringing

full

year

realizations

$34.1

billion.

Deployed

$16.3

billion

and

committed

additional

$3.8

billion

during

the

quarter

that

not

yet

deployed.

(Dollars in Millions)

Other Private Equity includes Core PE, Infrastructure, Life Sciences, and BTAS.

Inflows

Realizations

Capital Deployed

4Q'18

FY'18

4Q'18

FY'18

4Q'18

FY'18

Total Real Estate

20,122

31,478

3,642

14,675

5,729

18,726

Opportunistic

15,878

17,964

2,075

10,524

3,405

8,776

Core+

2,476

8,252

891

1,962

1,689

7,786

BREDS

1,768

5,262

676

2,189

635

2,165

Total Private Equity

9,825

26,640

3,263

10,397

6,833

16,651

Corporate Private Equity

1,283

5,686

1,921

5,843

3,349

7,376

Tactical Opportunities

983

7,010

645

2,108

1,554

3,124

Strategic Partners

4,297

5,299

697

2,446

1,922

5,381

Other Private Equity

3,261

8,645

770

Hedge Fund Solutions

BAAM

2,640

13,278

219

472

575

1,702

Credit

GSO/BIS/Harvest

6,053

29,579

1,658

8,517

3,212

7,636

Total Blackstone

38,641

100,976

8,782

34,061

16,350

44,715

Real Estate

Private Equity

Blackstone

Summary of Financials by Segment

Fee Related Earnings

(Dollars in Millions)

Performance

across

segments

generated

record

Fee

Earnings

$1.5

billion

and

Segment

Distributable

Earnings

$2.8

billion.

Segment Distributable Earnings

(Dollars in Millions)

FY’18 Total: $1,456

FY’18 Total: $2,826

Real Estate

Private Equity

Hedge Fund Solutions

Credit

$645

$321

$283

$206

$1,368

$870

$321

$266

Blackstone

$111.3

$97.0

$69.9

$72.3

$70.1

$80.0

$84.0

$93.3

$335.3

$342.5

4Q'17

4Q'18

$138.1

$127.5

$75.1

$77.8

$105.6

$130.7

$115.3

$136.2

$434.1

$472.2

4Q'17

4Q'18

Assets Under Management

Total AUM increased to $472.2 billion, up 9% year-over-year, driven by $101.0 billion of inflows despite

$34.1

billion of realizations during the year.

Fee-Earning

AUM

$342.5

billion

was

year-over-year

$71.0

billion

inflows

outpaced

$62.4

billion

realizations and outflows.

Perpetual Capital AUM reached $72.6 billion, up 6% from the third quarter of 2018.

Fee-Earning AUM

(Dollars in Billions)

Total AUM

(Dollars in Billions)

See page 30 for the definition of Perpetual Capital.

Real Estate

Hedge Fund Solutions

Credit

4Q’18 Total: $72.6

Private Equity

Perpetual Capital AUM

(Dollars in Billions)

$38.1

$5.8

$4.3

$24.4

Blackstone

$36.9

$42.1

$22.9

$36.7

$41.2

$42.4

$38.3

$46.1

$59.5

$63.3

$73.5

$85.5

$175.1

$202.9

$210.3

2016

2017

2018

Additional Capital Detail

Invested Performance Revenue Eligible AUM reached $210.3 billion at quarter end, up 4% year-over-year, and up

20% since 2016.

Substantial

undrawn

capital

(“Total

Dry

Powder”)

available

for

investment

$112.9

billion,

19%

year-over-

year

despite

significant

deployment

activity

over

the

year.

Total Dry Powder

(Dollars in Billions)

4Q’18 Total: $112.9

Invested Performance Revenue

Eligible AUM

(Dollars in Billions)

Real Estate

Private Equity

Hedge Fund Solutions

Credit

Invested Performance Revenue Eligible AUM represents the fair value of invested assets that are eligible to earn performance revenues.

$40.6

$44.4

$3.3

$24.5

Segment Highlights

Blackstone

Real Estate

Appreciation for core+ funds excludes BREIT.

Total

AUM:

18%

record

$136.2

billion

with

record

inflows

$20.1

billion

the

quarter

and

$31.5

billion

for

the

year.

•

Inflows

include

$15.4

billion

first

for

the

ninth

global

real

estate

opportunistic

fund,

with

additional

$1.8

billion

raised

after

the

quarter,

bringing

total

fund

commitments

$17.3

billion.

•

Core+

Total

AUM

30%

year-over-year

$35.2

billion,

five

years

after

launching

the

business.

Realizations:

$3.6

billion

the

quarter

and

$14.7

billion

the

year;

realizations

the

quarter

included

sales

U.S.

multifamily

assets

and

the

Ferry

Building

(San

Francisco)

Equity

Office

Properties.

Capital

Deployed:

$5.7

billion

the

quarter

and

$18.7

billion

for

the

year,

including

privatizations

Gramercy

U.S.

industrial

REIT

and

Testa

Spanish

multifamily

REIT

opportunistic

funds

the

quarter.

•

Committed

additional

$1.7

billion

during

the

quarter

that

not

yet

deployed.

Appreciation:

Opportunistic

funds

and

core+

funds

0.6%

and

2.3%

the

quarter,

and

9.8%

and

10.7%

for

the

year,

respectively.

% Change

(Dollars in Thousands)

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Management Fees, Net

244,064

317,269

30%

939,038

1,126,470

20%

Fee Related Performance Revenues

20,730

44,185

113%

79,500

124,502

57%

Fee Related Compensation

(114,822)

(109,695)

(4)%

(437,311)

(459,430)

Other Operating Expenses

(38,543)

(41,030)

(136,042)

(146,260)

Fee Related Earnings

111,429

210,729

89%

445,185

645,282

45%

Realized Performance Revenues

971,360

172,985

(82)%

2,141,374

914,984

(57)%

Realized Performance Compensation

(363,073)

(54,179)

(85)%

(751,526)

(284,319)

(62)%

Realized Principal Investment Income

34,276

11,439

(67)%

255,903

92,525

(64)%

Net Realizations

642,563

130,245

(80)%

1,645,751

723,190

(56)%

Segment Distributable Earnings

753,992

340,974

(55)%

2,090,936

1,368,472

(35)%

Segment Revenues

1,270,430

545,878

(57)%

3,415,815

2,258,481

(34)%

Total AUM

115,340,363

136,247,229

18%

115,340,363

136,247,229

18%

Fee-Earning AUM

83,984,824

93,252,724

11%

83,984,824

93,252,724

11%

Blackstone

Private Equity

Total

AUM:

24%

$130.7

billion

with

inflows

$9.8

billion

the

quarter

and

$26.6

billion

for

the

year.

•

$3.4

billion

initial

for

the

eighth

Strategic

Partners

secondaries

fund

the

quarter.

•

Completed

the

acquisition

Clarus,

which

added

$1.8

billion,

and

launched

Blackstone

Life

Sciences.

Realizations:

$3.3

billion

the

quarter

and

$10.4

billion

for

the

year,

including

sales

Intelenet,

Versace,

and

Crocs

the

quarter.

Capital

Deployed:

$6.8

billion

the

quarter

and

$16.7

billion

for

the

year,

including

Refinitiv

and

National

Exhibition

Centre

the

quarter.

•

Committed

additional

$850

million

during

the

quarter

that

not

yet

deployed.

Appreciation:

Corporate

Private

Equity

down

2.9%

the

quarter

driven

decreases

the

public

portfolio,

but

19.1%

for

the

year.

% Change

(Dollars in Thousands)

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Management and Advisory Fees, Net

202,099

212,443

764,435

829,884

Fee Related Compensation

(90,683)

(86,089)

(5)%

(347,562)

(375,446)

Other Operating Expenses

(32,478)

(29,244)

(10)%

(120,997)

(133,096)

10%

Fee Related Earnings

78,938

97,110

23%

295,876

321,342

Realized Performance Revenues

274,421

252,100

(8)%

1,157,188

757,406

(35)%

Realized Performance Compensation

(111,832)

(110,209)

(1)%

(404,544)

(318,167)

(21)%

Realized Principal Investment Income

25,298

26,385

154,837

109,731

(29)%

Net Realizations

187,887

168,276

(10)%

907,481

548,970

(40)%

Segment Distributable Earnings

266,825

265,386

(1)%

1,203,357

870,312

(28)%

Segment Revenues

501,818

490,928

(2)%

2,076,460

1,697,021

(18)%

Total AUM

105,560,576

130,665,286

24%

105,560,576

130,665,286

24%

Fee-Earning AUM

70,140,883

80,008,166

14%

70,140,883

80,008,166

14%

Blackstone

Hedge Fund Solutions

BPS Composite net returns were (2.4)% and 1.2% for 4Q’18 and FY’18, respectively.

Total

AUM:

$77.8

billion

with

inflows

$2.6

billion

the

quarter

and

record

inflows

$13.3

billion

for

the

year.

•

Increase

primarily

driven

continued

platform

diversification

and

growth

customized

strategies

and

individual

investor

solutions.

•

January

subscriptions

$1.1

billion

are

not

yet

included

Total

AUM.

Returns:

BPS

Composite

gross

return

was

down

2.3%

the

quarter,

outperforming

relevant

indices

with

MSCI

All

Country

World

Total

Return

Index

down

12.7%

and

HFRX

Global

Return

Index

down

5.6%,

demonstrating

the

ability

provide

downside

protection

difficult

global

markets.

•

Gross

returns

were

2.0%

for

the

year,

outperforming

global

markets

with

less

than

fifth

the

volatility,

with

MSCI

All

Country

World

Total

Return

Index

down

8.9%

and

HFRX

Global

Return

Index

down

6.7%.

% Change

(Dollars in Thousands)

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Management Fees, Net

130,384

132,611

518,935

522,869

Fee Related Compensation

(32,331)

(38,557)

19%

(146,924)

(162,172)

10%

Other Operating Expenses

(17,610)

(19,740)

12%

(68,265)

(77,772)

14%

Fee Related Earnings

80,443

74,314

(8)%

303,746

282,925

(7)%

Realized Performance Revenues

118,447

20,987

(82)%

154,343

42,419

(73)%

Realized Performance Compensation

(30,940)

(14,401)

(53)%

(40,707)

(21,792)

(46)%

Realized Principal Investment Income

8,165

6,609

(19)%

9,074

17,039

88%

Net Realizations

95,672

13,195

(86)%

122,710

37,666

(69)%

Segment Distributable Earnings

176,115

87,509

(50)%

426,456

320,591

(25)%

Segment Revenues

256,996

160,207

(38)%

682,352

582,327

(15)%

Total AUM

75,090,834

77,814,516

75,090,834

77,814,516

Fee-Earning AUM

69,914,061

72,280,606

69,914,061

72,280,606

Blackstone

Credit

Total

AUM:

$127.5

billion

quarter

end

with

inflows

$6.1

billion

the

quarter

and

inflows

$29.6

billion

for

the

year.

•

Closed

$1.8

billion

for

the

direct

lending

platform

the

quarter,

totaling

$4.4

billion

for

the

year.

•

Launched

CLOs

U.S.

and

European)

the

quarter

for

$1.8

billion

and

CLOs

U.S.

and

European)

the

year

for

record

$6.4

billion.

•

Raised

$856

million

for

the

second

energy

credit

fund,

resulting

$2.4

billion

for

energy

strategies

the

year.

Realizations:

$1.7

billion

the

quarter

and

$8.5

billion

for

the

year.

Capital

Deployed:

Investment

pace

was

strong

with

$3.2

billion

the

quarter

and

$7.6

billion

for

the

year.

Returns:

Composite

gross

returns

down

0.2%

for

Performing

Credit

and

down

7.3%

for

Distressed

Strategies

for

the

quarter

driven

certain

public

positions,

energy

market

conditions,

and

turbulence

broadly

the

credit

market,

and

8.8%

and

down

3.2%

for

the

year,

respectively.

% Change

(Dollars in Thousands)

4Q'17

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Management Fees, Net

155,845

135,872

(13)%

548,383

557,229

Fee Related Performance Revenues

27,359

(100)%

89,945

(666)

n/m

Fee Related Compensation

(74,197)

(44,943)

(39)%

(253,842)

(219,098)

(14)%

Other Operating Expenses

(27,318)

(40,011)

46%

(99,562)

(131,200)

32%

Fee Related Earnings

81,689

50,918

(38)%

284,924

206,265

(28)%

Realized Performance Revenues

132,570

37,625

(72)%

194,902

96,962

(50)%

Realized Performance Compensation

(67,454)

(20,856)

(69)%

(100,834)

(53,863)

(47)%

Realized Principal Investment Income

4,486

2,665

(41)%

16,380

16,763

Net Realizations

69,602

19,434

(72)%

110,448

59,862

(46)%

Segment Distributable Earnings

151,291

70,352

(53)%

395,372

266,127

(33)%

Segment Revenues

320,260

176,162

(45)%

849,610

670,288

(21)%

Total AUM

138,136,470

127,515,286

(8)%

138,136,470

127,515,286

(8)%

Fee-Earning AUM

111,304,230

96,986,011

(13)%

111,304,230

96,986,011

(13)%

Performing Credit includes mezzanine lending funds, middle market direct lending funds 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 net composite returns

were (0.6)% and 5.9% for 4Q’18 and FY’18. Distressed Strategies’ net composite returns were (5.9)% and (3.4)% for 4Q’18 and FY’18.

Supplemental Details

Blackstone

Total Segments

(Dollars in Thousands)

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

Management and Advisory Fees, Net

Base Management Fees

696,163

707,156

692,915

721,606

722,648

2,680,391

2,844,325

Transaction, Advisory and Other Fees, Net

45,407

37,066

40,912

73,944

77,576

156,816

229,498

Management Fee Offsets

(9,178)

(8,178)

(10,833)

(16,331)

(2,029)

(66,416)

(37,371)

Total Management and Advisory Fees, Net

732,392

736,044

722,994

779,219

798,195

2,770,791

3,036,452

Fee Related Performance Revenues

48,089

3,837

45,515

30,299

44,185

169,445

123,836

Fee Related Compensation

(312,033)

(296,074)

(306,243)

(334,545)

(279,284)

(1,185,639)

(1,216,146)

Other Operating Expenses

(115,949)

(107,092)

(122,466)

(128,745)

(130,025)

(424,866)

(488,328)

Fee Related Earnings

352,499

336,715

339,800

346,228

433,071

1,329,731

1,455,814

Realized Performance Revenues

1,496,798

278,371

477,544

572,159

483,697

3,647,807

1,811,771

Realized Performance Compensation

(573,299)

(114,829)

(172,894)

(190,773)

(199,645)

(1,297,611)

(678,141)

Realized Principal Investment Income

72,225

28,693

94,647

65,620

47,098

436,194

236,058

Total Net Realizations

995,724

192,235

399,297

447,006

331,150

2,786,390

1,369,688

Total Segment Distributable Earnings

1,348,223

528,950

739,097

793,234

764,221

4,116,121

2,825,502

Net Interest Income (Loss)

(29,509)

(1,853)

2,842

9,013

11,923

(49,918)

21,925

Taxes and Related Payables

(79,568)

(25,042)

(41,797)

(32,963)

(54,063)

(189,988)

(153,865)

Distributable Earnings

1,239,146

502,055

700,142

769,284

722,081

3,876,215

2,693,562

Total Segment Revenues

2,349,504

1,046,945

1,340,700

1,447,297

1,373,175

7,024,237

5,208,117

Total Assets Under Management

434,128,243

449,613,826

439,386,656

456,691,832

472,242,317

434,128,243

472,242,317

Fee-Earning Assets Under Management

335,343,998

344,650,797

332,978,145

342,261,123

342,527,507

335,343,998

342,527,507

Weighted Average Fee-Earning AUM

311,353,064

343,211,044

328,594,512

340,994,284

343,514,196

289,116,993

338,819,012

LP Capital Invested

18,663,837

9,323,329

8,026,698

9,358,423

14,218,797

46,216,413

40,927,247

Total Capital Invested

19,529,797

10,119,519

8,351,772

9,894,470

16,349,738

50,678,463

44,715,499

Blackstone

4Q’18 Total AUM Rollforward

(Dollars in Millions)

FY’18 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.

Assets Under Management

4Q’18 Fee-Earning AUM Rollforward

(Dollars in Millions)

FY’18 Fee-Earning AUM Rollforward

(Dollars in Millions)

Real

Private

Hedge Fund

Estate

Equity

Solutions

4Q'17

115,340

105,561

75,091

138,136

434,128

Inflows

31,478

26,640

13,278

29,579

100,976

Outflows

(2,163)

(1,618)

(10,780)

(28,058)

(42,618)

Realizations

(14,675)

(10,397)

(472)

(8,517)

(34,061)

Net Inflows (Outflows)

14,640

14,626

2,026

(6,996)

24,297

Market Activity

6,266

10,479

697

(3,625)

13,817

4Q'18

136,247

130,665

77,815

127,515

472,242

YoY Increase (Decrease)

18%

24%

(8)%

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

3Q'18

119,942

126,184

80,005

130,560

456,692

Inflows

20,122

9,825

2,640

6,053

38,641

Outflows

(277)

(491)

(3,115)

(2,778)

(6,661)

Realizations

(3,642)

(3,263)

(219)

(1,658)

(8,782)

Net Inflows (Outflows)

16,203

6,071

(693)

1,617

23,198

Market Activity

102

(1,590)

(1,497)

(4,662)

(7,647)

4Q'18

136,247

130,665

77,815

127,515

472,242

QoQ Increase (Decrease)

14%

(3)%

(2)%

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

3Q'18

90,773

78,195

74,559

98,735

342,261

Inflows

4,853

3,421

2,877

5,869

17,020

Outflows

(200)

(323)

(3,538)

(2,500)

(6,560)

Realizations

(2,492)

(1,408)

(207)

(1,022)

(5,129)

Net Inflows (Outflows)

2,162

1,690

(867)

2,347

5,331

Market Activity

318

123

(1,411)

(4,095)

(5,065)

4Q'18

93,253

80,008

72,281

96,986

342,528

QoQ Increase (Decrease)

(3)%

(2)%

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

4Q'17

83,985

70,141

69,914

111,304

335,344

Inflows

17,961

16,097

12,354

24,588

71,000

Outflows

(2,000)

(1,888)

(10,278)

(27,641)

(41,808)

Realizations

(8,781)

(4,730)

(430)

(6,673)

(20,613)

Net Inflows (Outflows)

7,180

9,478

1,646

(9,725)

8,579

Market Activity

2,088

389

720

(4,593)

(1,395)

4Q'18

93,253

80,008

72,281

96,986

342,528

YoY Increase (Decrease)

11%

14%

(13)%

Credit

Total

Blackstone

$8.67

$8.45

4Q'17

4Q'18

December

31,

2018,

Blackstone

had

$4.7

billion

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$10.1

billion

cash

and

net

investments,

$8.45

per

unit.

Blackstone

has

net

debt,

$1.6

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 Real Estate, Private Equity, Hedge Fund Solutions, and Credit, which

were $802 million, $695 million, $102 million, and $295 million, respectively, as of December 31, 2018. Cash and Net Investments per unit amounts are calculated using period end DE Units Outstanding (see page 23,

Unit Summary).

A+/A+

Rated by S&P and Fitch

$1.6 billion

Undrawn Credit Revolver

with September 2023 Maturity

$4.7 billion

Total Cash and

Corporate Treasury

Cash and Net Investments

(Per Unit)

(Dollars in Millions)

4Q’18

Cash and Cash Equivalents

2,208

Corporate Treasury

Investments

2,513

GP/Fund Investments

1,895

Net Accrued Performance

Revenues

3,523

Cash

and Net Investments

10,139

Outstanding

Bonds (at par)

3,532

Blackstone

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 23, Unit Summary).

4Q’18 QoQ Rollforward

(Dollars in Millions)

FY’18 Rollforward

(Dollars in Millions)

4Q'17

Net

Performance

Revenues

Net Realized

Distributions

4Q'18

Real Estate

1,840

613

(678)

1,775

Private Equity

1,130

808

(409)

1,529

HFS

(82)

Credit

289

(6)

(88)

195

Total

3,348

1,432

(1,257)

3,523

YoY Increase

3Q'18

Net

Performance

Revenues

Net Realized

Distributions

4Q'18

Real Estate

1,853

(113)

1,775

Private Equity

1,849

(137)

(183)

1,529

HFS

(7)

(1)

Credit

301

(89)

(17)

195

Total

4,035

(198)

(314)

3,523

QoQ Decrease

(13)%

Net Accrued Performance Revenues

(Dollars in Millions, Except per Unit Data)

4Q'17

3Q'18

4Q'18

Per Unit

QoQ

Change

YoY

Change

Real Estate

BREP IV

(9)

(6)

BREP V

203

0.05

(36)

(148)

BREP VI

190

106

0.07

(17)

(101)

BREP VII

587

592

484

0.40

(108)

(103)

BREP VIII

255

386

429

0.36

174

BREP Europe III

(1)

(67)

BREP Europe IV

207

201

200

0.17

(1)

(7)

BREP Europe V

110

0.09

BREP Asia I

102

103

114

0.10

BPP

134

207

215

0.18

BREIT

0.02

BREDS

0.01

(4)

(18)

BTAS

0.03

Total Real Estate

1,840

1,853

1,775

1.48

(78)

(65)

Private Equity

BCP IV

111

0.06

(39)

(15)

BCP V

(44)

(73)

BCP VI

668

1,008

746

0.62

(262)

BCP VII

166

225

0.19

209

BEP I

155

103

0.09

(52)

BEP II

0.06

Tactical Opportunities

104

161

155

0.13

(6)

Strategic Partners

0.08

(1)

BCEP

0.02

BTAS

0.03

Other

(2)

Total Private Equity

1,130

1,849

1,529

1.28

(320)

399

Total Hedge Fund Solutions

0.02

(8)

(65)

Total Credit

289

301

195

0.16

(106)

(94)

Net Accrued Performance Revenues

3,348

4,035

3,523

2.94

(512)

175

Memo: Net Realized Performance Revenues

222

109

0.06

(41)

(154)

Blackstone

Investment

Records

December

31,

2018

(a)

(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

Real Estate

Pre-BREP

140,714

n/a

345,190

2.5x

345,190

2.5x

33%

BREP I (Sep 1994 / Oct 1996)

380,708

n/a

1,327,708

2.8x

1,327,708

2.8x

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

n/a

2,531,614

2.1x

2,531,614

2.1x

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

n/a

3,330,406

2.4x

3,330,406

2.4x

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

212,309

0.3x

21%

4,290,218

2.2x

4,502,527

1.6x

33%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

542,613

1.4x

31%

12,697,555

2.4x

13,240,168

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

1,215,191

1.6x

26,334,443

2.6x

27,549,634

2.5x

14%

13%

BREP VII (Aug 2011 / Apr 2015)

13,495,496

2,001,683

10,154,856

1.6x

18%

18,332,067

2.1x

28,486,923

1.9x

27%

16%

BREP VIII (Apr 2015 / Oct 2020)

16,457,804

5,762,268

14,427,542

��

1.4x

4,740,239

1.5x

19,167,781

1.4x

27%

16%

BREP IX (TBD)

15,445,659

n/a

Total Global BREP

67,439,984

23,209,610

26,552,511

1.4x

73,929,440

2.3x

100,481,951

2.0x

19%

16%

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

n/a

1,366,553

€

2.1x

1,366,553

€

2.1x

23%

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

1,629,748

106,396

1.1x

2,347,656

1.8x

2,454,052

1.8x

BREP Europe III (Jun 2008 / Sep 2013)

3,205,167

464,566

660,005

0.9x

5,494,293

2.5x

6,154,298

2.1x

21%

15%

BREP Europe IV (Sep 2013 / Dec 2016)

6,709,145

1,340,701

4,358,327

1.6x

12%

7,147,829

2.0x

11,506,156

1.8x

25%

17%

BREP Europe V (Dec 2016 / Jun 2022)

7,877,201

3,224,734

5,662,031

1.3x

77,038

2.4x

5,739,069

1.3x

n/m

18%

Total Euro BREP

20,245,433

€

5,030,001

€

10,786,759

€

1.3x

16,433,369

€

2.1x

27,220,128

€

1.7x

16%

14%

BREP Asia I (Jun 2013 / Dec 2017)

5,096,359

1,729,439

4,128,651

1.4x

2,989,011

1.8x

7,117,662

1.5x

21%

15%

BREP Asia II (Dec 2017 / Jun 2023)

7,126,830

6,415,884

880,798

1.0x

n/a

880,798

1.0x

n/m

BREP Co-Investment (f)

7,055,644

172,062

2,124,456

1.6x

41%

11,834,696

2.1x

13,959,152

2.0x

16%

15%

Total BREP

111,511,210

37,294,898

46,355,732

1.4x

109,719,753

2.2x

156,075,485

1.9x

18%

15%

BPP (g)

26,569,578

2,964,457

28,054,480

1.2x

3,602,356

2.6x

31,656,836

1.2x

n/m

11%

BREDS

13,228,639

3,582,239

3,739,330

1.1x

10,333,439

1.3x

14,072,769

1.2x

11%

10%

Private Equity

BCP I (Oct 1987 / Oct 1993)

859,081

n/a

1,741,738

2.6x

1,741,738

2.6x

19%

BCP II (Oct 1993 / Aug 1997)

1,361,100

n/a

3,256,819

2.5x

3,256,819

2.5x

32%

BCP III (Aug 1997 / Nov 2002)

3,967,422

n/a

9,184,688

2.3x

9,184,688

2.3x

14%

BCOM (Jun 2000 / Jun 2006)

2,137,330

24,575

17,244

1.4x

2,953,649

1.4x

2,970,893

1.4x

BCP IV (Nov 2002 / Dec 2005)

6,773,182

205,984

610,391

0.7x

33%

20,861,706

3.1x

21,472,097

2.8x

41%

36%

BCP V (Dec 2005 / Jan 2011)

21,022,215

1,048,362

1,748,350

0.9x

33%

36,298,422

2.0x

38,046,772

1.9x

BCP VI (Jan 2011 / May 2016)

15,191,118

1,756,975

14,645,713

1.7x

31%

11,915,798

2.1x

26,561,511

1.9x

21%

13%

BEP I (Aug 2011 / Feb 2015)

2,435,285

224,784

2,364,512

1.5x

41%

1,954,527

2.3x

4,319,039

1.8x

26%

13%

BEP II (Feb 2015 / Feb 2021)

4,929,718

1,203,693

4,215,603

1.4x

210,362

2.0x

4,425,965

1.4x

40%

15%

BCP VII (May 2016 / May 2022)

18,590,630

8,252,225

10,446,740

1.4x

434,736

1.3x

10,881,476

1.4x

21%

BCP Asia (Dec 2017 / Dec 2023)

2,369,469

2,040,455

165,694

1.5x

n/a

165,694

1.5x

n/a

n/m

BEP III (TBD)

3,515,891

n/a

Total Corporate Private Equity

83,152,441

18,272,944

34,214,247

1.4x

18%

88,812,445

2.2x

123,026,692

1.9x

17%

15%

Tactical Opportunities

22,053,992

10,234,751

9,559,311

1.3x

6,342,454

1.7x

15,901,765

1.4x

21%

11%

Tactical Opportunities Co-Investment and Other

5,426,066

1,603,582

3,853,442

1.2x

1,310,719

1.6x

5,164,161

1.3x

28%

14%

Total Tactical Opportunities

27,480,058

11,838,333

13,412,753

1.2x

7,653,173

1.7x

21,065,926

1.4x

22%

11%

Continued...

Blackstone

Investment

Records

December

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 Performance Revenues, divided by invested capital.

(d)

Net Internal Rate of Return (“IRR”) represents the annualized inception to December 31, 2018 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after

management fees, expenses and Performance Revenues.

(e)

The 8% 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 7% Realized Net IRR

and a 6% Total Net IRR.

(f)

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 Performance Revenues.

(g)

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

(h)

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

(i)

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

(j)

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

(k)

BSCH, or Blackstone Strategic Capital Holdings, is focused on acquiring strategic minority positions in alternative asset managers.

(l)

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

Private Equity (continued)

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

11,913,121

1,800,737

1,742,846

n/m

15,970,061

n/m

17,712,907

1.5x

n/a

13%

Strategic Partners VI LBO, RE and SMA (h)

7,402,171

1,943,044

3,016,474

n/m

3,407,157

n/m

6,423,631

1.5x

n/a

19%

Strategic Partners VII (h)

8,221,982

3,227,165

5,948,522

n/m

730,088

n/m

6,678,610

1.3x

n/a

37%

Strategic Partners RA II (h)

1,898,154

1,036,103

451,971

n/m

36,438

n/m

488,409

1.2x

n/a

17%

Strategic Partners VIII

3,422,804

n/a

Total Strategic Partners

32,858,232

11,429,853

11,159,813

n/m

20,143,744

n/m

31,303,557

1.5x

n/a

14%

BCEP (Jan 2017 / Jan 2021) (i)

4,755,613

2,601,681

2,505,183

1.2x

n/a

2,505,183

1.2x

n/a

10%

BIP (TBD)

5,686,000

n/a

Other Funds and Co-Investment (j)

1,557,393

325,028

96,990

1.0x

17%

635,564

0.9x

732,554

1.0x

n/m

Hedge Fund Solutions

BSCH (Dec 2013 / Jun 2020) (k)

3,298,575

2,083,559

1,308,188

1.1x

312,539

n/a

1,620,727

1.3x

n/a

BSCH Co-Investment

276,000

98,070

195,414

1.1x

28,573

n/a

223,987

1.3x

n/a

Total Hedge Fund Solutions

3,574,575

2,181,629

1,503,602

1.1x

341,112

n/a

1,844,714

1.3x

n/a

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

97,114

25,716

1.3x

4,772,118

1.6x

4,797,834

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

1,146,274

2,034,118

1.0x

4,526,585

1.6x

6,560,703

1.3x

n/a

12%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

2,589,498

3,573,397

1.1x

1,003,295

1.6x

4,576,692

1.1x

n/a

11%

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

3,253,143

135,000

228,105

0.4x

5,732,348

1.6x

5,960,453

1.4x

n/a

11%

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

5,125,000

570,214

2,119,618

0.9x

3,597,716

1.4x

5,717,334

1.2x

n/a

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

7,356,380

6,007,292

1,356,095

1.0x

302,613

1.3x

1,658,708

1.1x

n/a

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,867

943,281

1,968,152

1.1x

544,630

1.7x

2,512,782

1.2x

n/a

13%

Euro

European Senior Debt Fund (Feb 2015 / Feb 2019)

1,964,689

€

1,503,470

€

2,045,708

€

1.0x

842,857

€

1.6x

2,888,565

€

1.1x

n/a

Total Credit

33,616,933

13,207,440

13,643,752

1.0x

21,445,271

1.5x

35,089,023

1.3x

n/a

12%

Blackstone

Unitholder Distribution

A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on pages 30-31, Definitions and Distribution Policy. DE before Certain Payables represents

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

Participating

Common

Units

(page

23,

Unit

Summary);

actual

distributions

are

paid

unitholders

the

applicable

record

date.

Retained

capital

withheld

pro-rata

from

common

and

Blackstone

Holdings

Partnership unitholders. Common unitholders’ share was $61 million for 4Q’18 and $217 million for FY’18.

Generated

$0.57

Distributable

Earnings

per

common

unit

during

the

quarter,

bringing

the

full

year

amount

$2.17

per

common

unit.

Blackstone

declared

quarterly

distribution

$0.58

per

common

unit,

which

includes

$0.10

special

cash

distribution,

record

holders

February

11,

2019;

payable

February

19,

2019.

% Change

(Dollars in Thousands, Except per Unit Data)

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

vs. 4Q'17

FY'17

FY'18

vs. FY'17

Distributable Earnings

1,239,146

502,055

700,142

769,284

722,081

(42)%

3,876,215

2,693,562

(31)%

Add: Other Payables Attributable

to Common Unitholders

52,216

7,028

29,379

22,980

43,345

(17)%

98,104

102,732

DE before Certain Payables

1,291,362

509,083

729,521

792,264

765,426

(41)%

3,974,319

2,796,294

(30)%

Percent to Common Unitholders

56%

57%

56%

DE before Certain Payables Attributable

to Common Unitholders

720,124

285,633

414,071

447,516

429,433

(40)%

2,208,092

1,576,653

(29)%

Less: Other Payables Attributable

to Common Unitholders

(52,216)

(7,028)

(29,379)

(22,980)

(43,345)

(17)%

(98,104)

(102,732)

DE Attributable to Common Unitholders

667,908

278,605

384,692

424,536

386,088

(42)%

2,109,988

1,473,921

(30)%

DE per Common Unit

1.00

0.41

0.56

0.63

0.57

(43)%

3.17

2.17

(32)%

Less: Retained Capital per Common Unit

(0.15)

(0.06)

(0.08)

(0.09)

(40)%

(0.47)

(0.32)

(32)%

Special Cash Distribution per Common Unit

0.10

n/m

0.30

n/m

Actual Distribution per Common Unit

0.85

0.35

0.58

0.64

0.58

(32)%

2.70

2.15

(20)%

Record Date

Feb 11, 2019

Payable Date

Feb 19, 2019

Blackstone

Unit Summary

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. Participating Common Units and Participating Partnership Units include both issued and outstanding

units and unvested units that participate in distributions.

Blackstone

repurchased

7.8

million

common

units

the

quarter,

resulting

Distributable

Earnings

Units

Outstanding

1,199

million

units.

•

Over

the

full

year,

Blackstone

repurchased

16.0

common

million

units

and

units

outstanding

remained

the

same

level

the

fourth

quarter

2017.

•

Available

authorization

remaining

was

$458

million

December

31,

2018.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

Participating Common Units

668,733,356

676,168,743

682,801,258

678,771,864

672,755,818

Participating Partnership Units

530,472,212

528,967,264

520,175,306

522,898,542

526,370,654

Distributable Earnings Units Outstanding

1,199,205,568

1,205,136,007

1,202,976,564

1,201,670,406

1,199,126,472

Reconciliations and Disclosures

Blackstone

Notes on pages 26-27.

Reconciliation of GAAP to Non-GAAP Measures

(Dollars in Thousands)

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

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

304,138

367,872

742,042

442,742

(10,868)

1,471,374

1,541,788

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

359,438

320,208

678,952

360,576

5,253

1,392,323

1,364,989

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

Entities

132,364

155,499

129,078

143,101

(68,800)

497,439

358,878

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

in Consolidated Entities

7,600

(1,275)

905

2,569

(4,303)

13,806

(2,104)

Net Income (Loss)

803,540

842,304

1,550,977

948,988

(78,718)

3,374,942

3,263,551

Provision for Taxes

596,590

54,495

138,731

26,798

29,366

743,147

249,390

Income (Loss) Before Provision for Taxes

1,400,130

896,799

1,689,708

975,786

(49,352)

4,118,089

3,512,941

Transaction-Related Charges (a)

(347,055)

52,489

(470,078)

79,242

76,431

(176,531)

(261,916)

Amortization of Intangibles (b)

14,265

14,873

14,856

15,392

48,297

59,994

Impact of Consolidation (c)

(139,964)

(154,224)

(129,983)

(145,670)

73,103

(511,245)

(356,774)

Unrealized Performance Revenues (d)

484,486

(628,339)

(440,424)

(298,931)

806,531

105,432

(561,163)

Unrealized Performance Allocations Compensation (e)

(166,183)

254,435

189,991

178,184

(302,868)

103,794

319,742

Unrealized Principal Investment (Income) Loss (f)

16,488

(13,978)

(52,126)

(28,704)

160,659

131,206

65,851

Other Revenues (g)

35,151

60,894

(94,416)

(9,092)

(46,854)

140,051

(89,468)

Equity-Based Compensation (h)

21,396

44,148

34,394

36,576

43,102

107,110

158,220

Taxes and Related Payables (i)

(79,568)

(25,042)

(41,797)

(32,963)

(54,063)

(189,988)

(153,865)

Distributable Earnings

1,239,146

502,055

700,142

769,284

722,081

3,876,215

2,693,562

Taxes and Related Payables (i)

79,568

25,042

41,797

32,963

54,063

189,988

153,865

Net Interest (Income) Loss (j)

29,509

1,853

(2,842)

(9,013)

(11,923)

49,918

(21,925)

Total Segment Distributable Earnings

1,348,223

528,950

739,097

793,234

764,221

4,116,121

2,825,502

Realized Performance Revenues (k)

(1,496,798)

(278,371)

(477,544)

(572,159)

(483,697)

(3,647,807)

(1,811,771)

Realized Performance Compensation (l)

573,299

114,829

172,894

190,773

199,645

1,297,611

678,141

Realized Principal Investment Income (m)

(72,225)

(28,693)

(94,647)

(65,620)

(47,098)

(436,194)

(236,058)

Fee Related Earnings

352,499

336,715

339,800

346,228

433,071

1,329,731

1,455,814

Adjusted EBITDA Reconciliation

Distributable Earnings

1,239,146

502,055

700,142

769,284

722,081

3,876,215

2,693,562

Interest Expense (n)

72,345

38,238

38,885

40,923

41,792

192,838

159,838

Taxes and Related Payables (i)

79,568

25,042

41,797

32,963

54,063

189,988

153,865

Depreciation and Amortization

6,593

6,251

5,986

5,681

5,964

25,228

23,882

Adjusted EBITDA

1,397,652

571,586

786,810

848,851

823,900

4,284,269

3,031,147

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Notes

Note:

See pages 30-31, Definitions and Distribution Policy.

(a)

This adjustment removes Transaction-Related Charges, which are excluded from Blackstone's segment presentation. Transaction-Related Charges arise from corporate actions

including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent

consideration

arrangements,

changes

the

balance

the

tax

receivable

agreement

resulting

from

change

tax

law

similar

event,

transaction

costs

and

any

gains

losses

associated with these corporate actions.

(b)

This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone's segment presentation. This amount includes amortization of

intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method.

(c)

This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone's segment presentation. This adjustment includes the elimination of

Blackstone’s interest in these funds, the increase to revenue representing the reimbursement of certain expenses by Blackstone Funds, which are presented gross under GAAP but

netted

against

Other

Operating

Expenses

the

segment

presentation,

and

the

removal

amounts

associated

with

the

ownership

Blackstone

consolidated

operating

partnerships held by non-controlling interests.

(d)

This

adjustment

removes

Unrealized

Performance

Revenues

segment

basis.

The

Segment

Adjustment

represents

the

add

back

performance

revenues

earned

from

consolidated Blackstone Funds which have been eliminated in consolidation.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

GAAP Unrealized Performance Allocations

(483,033)

628,089

440,351

299,238

(806,305)

(105,473)

561,373

Segment Adjustment

(1,453)

250

(307)

(226)

(210)

Unrealized Performance Revenues

(484,486)

628,339

440,424

298,931

(806,531)

(105,432)

561,163

(e)

This adjustment removes Unrealized Performance Allocations Compensation.

(f)

This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment represents (1) the add back of Principal Investment Income,

including

general

partner

income,

earned

from

consolidated

Blackstone

Funds

which

have

been

eliminated

consolidation,

and

(2)

the

removal

amounts

associated

with

the

ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

GAAP Unrealized Principal Investment Income (Loss)

(20,567)

111,774

103,468

52,840

(218,165)

42,605

49,917

Segment Adjustment

4,079

(97,796)

(51,342)

(24,136)

57,506

(173,811)

(115,768)

Unrealized Principal Investment Income (Loss)

(16,488)

13,978

52,126

28,704

(160,659)

(131,206)

(65,851)

(g)

This adjustment removes Other Revenues on a segment basis. The Segment Adjustment 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 Charges. For the year ended December 31, 2018, Transaction-Related Charges

included

$580.9

million

Other

Revenues

received

upon

the

conclusion

Blackstone’s

investment

sub-advisory

relationship

with

Investments’

funds.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

GAAP Other Revenue

(33,781)

(59,317)

675,343

9,368

46,923

(133,229)

672,317

Segment Adjustment

(1,370)

(1,577)

(580,927)

(276)

(69)

(6,822)

(582,849)

Other Revenues

(35,151)

(60,894)

94,416

9,092

46,854

(140,051)

89,468

(h)

This adjustment removes Equity-Based Compensation on a segment basis.

Continued...

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Notes

Continued

(i)

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. Related Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

GAAP Interest and Dividend Revenue

40,524

35,385

40,073

48,604

47,885

139,696

171,947

Segment Adjustment

2,312

1,000

1,654

1,332

5,830

3,224

9,816

Interest and Dividend Revenue

42,836

36,385

41,727

49,936

53,715

142,920

181,763

GAAP Interest Expense

74,606

38,671

39,320

41,355

44,644

197,486

163,990

Segment Adjustment

(2,261)

(433)

(435)

(432)

(2,852)

(4,648)

(4,152)

Interest Expense

72,345

38,238

38,885

40,923

41,792

192,838

159,838

Net Interest Income (Loss)

(29,509)

(1,853)

2,842

9,013

11,923

(49,918)

21,925

(k)

This adjustment removes the total segment amounts of Realized Performance Revenues.

(l)

This adjustment removes the total segment amounts of Realized Performance Compensation.

(m)

This adjustment removes the total segment amount of Realized Principal Investment Income.

(n)

This adjustment adds back Interest Expense on a segment basis.

Reconciliation

GAAP

Common

Units

Outstanding

Distributable

Earnings

Units

Outstanding

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

GAAP Common Units Outstanding

659,526,093

666,812,752

673,544,082

669,411,215

663,212,830

Unvested Participating Common Units

9,207,263

9,355,991

9,257,176

9,360,649

9,542,988

Participating Common Units

668,733,356

676,168,743

682,801,258

678,771,864

672,755,818

Participating Partnership Units

530,472,212

528,967,264

520,175,306

522,898,542

526,370,654

Distributable Earnings Units Outstanding

1,199,205,568

1,205,136,007

1,202,976,564

1,201,670,406

1,199,126,472

Disclosure

Weighted-Average

Units

Outstanding

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

Total GAAP Weighted-Average Common Units Outstanding - Basic

668,781,321

674,479,140

681,794,492

682,435,177

676,629,572

Weighted-Average Unvested Deferred Restricted Common Units

702,960

198,934

216,118

230,759

Weighted-Average Blackstone Holdings Partnership Units

535,895,780

523,212,047

Total GAAP Weighted-Average Units Outstanding - Diluted

669,484,281

1,210,573,854

682,010,610

1,205,877,983

676,629,572

(j)

This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned

from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

Taxes

36,006

18,228

20,026

12,793

38,975

101,531

90,022

Related Payables

43,562

6,814

21,771

20,170

15,088

88,457

63,843

Taxes and Related Payables

79,568

25,042

41,797

32,963

54,063

189,988

153,865

Blackstone

Reconciliation of GAAP to Total Segment Measures

Continued...

(Dollars in Thousands)

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

Management and Advisory Fees, Net

GAAP

729,059

728,849

721,384

780,009

797,554

2,751,322

3,027,796

Segment Adjustment (a)

3,333

7,195

1,610

(790)

641

19,469

8,656

Total Segment

732,392

736,044

722,994

779,219

798,195

2,770,791

3,036,452

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Realized Incentive Fees

120,187

12,566

19,378

9,799

15,797

242,514

57,540

Investment Income -

Realized Performance Allocations

1,422,262

269,640

503,376

592,103

511,388

3,571,811

1,876,507

GAAP

1,542,449

282,206

522,754

601,902

527,185

3,814,325

1,934,047

Total Segment

Less: Realized Performance Revenues

(1,496,798)

(278,371)

(477,544)

(572,159)

(483,697)

(3,647,807)

(1,811,771)

Segment Adjustment (b)

2,438

305

556

697

2,927

1,560

Total Segment

48,089

3,837

45,515

30,299

44,185

169,445

123,836

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation

364,484

389,403

427,479

419,285

373,790

1,442,485

1,609,957

Realized Incentive Fees Compensation

43,450

6,662

9,743

7,251

10,260

105,279

33,916

Realized Performance Allocations Compensation

557,244

112,062

186,398

200,442

212,174

1,281,965

711,076

GAAP

965,178

508,127

623,620

626,978

596,224

2,829,729

2,354,949

Total Segment

Less: Realized Performance Compensation

(573,299)

(114,829)

(172,894)

(190,773)

(199,645)

(1,297,611)

(678,141)

Less: Equity-Based Compensation

(21,396)

(44,148)

(34,394)

(36,576)

(43,102)

(107,110)

(158,220)

Segment Adjustment (c)

(58,450)

(53,076)

(110,089)

(65,084)

(74,193)

(239,369)

(302,442)

Total Segment

312,033

296,074

306,243

334,545

279,284

1,185,639

1,216,146

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

GAAP

138,608

126,713

145,828

168,813

153,519

488,582

594,873

Segment Adjustment (d)

(22,659)

(19,621)

(23,362)

(40,068)

(23,494)

(63,716)

(106,545)

Total Segment

115,949

107,092

122,466

128,745

130,025

424,866

488,328

Realized Performance Revenues

GAAP

Realized Incentive Fees

120,187

12,566

19,378

9,799

15,797

242,514

57,540

Investment Income -

Realized Performance Allocations

1,422,262

269,640

503,376

592,103

511,388

3,571,811

1,876,507

GAAP

1,542,449

282,206

522,754

601,902

527,185

3,814,325

1,934,047

Total Segment

Less: Fee Related Performance Revenues

(48,089)

(3,837)

(45,515)

(30,299)

(44,185)

(169,445)

(123,836)

Segment Adjustment (b)

2,438

305

556

697

2,927

1,560

Total Segment

1,496,798

278,371

477,544

572,159

483,697

3,647,807

1,811,771

Blackstone

Reconciliation

GAAP

Total

Segment

Measures

–

Continued

This analysis reconciles the components of Total Segment Distributable Earnings (page 3) to their equivalent GAAP measures, reported on the Consolidated Statement of Operations

(page 1). Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the

expense of equity-based awards and Transaction-Related Charges.

(a)

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

from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Other Operating Expenses in the Total

Segment measures.

(b)

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

(c)

Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.

(d)

Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross

under GAAP but netted against Other Operating Expenses in the Total Segment measures.

(e)

Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in

consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

(f)

Represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest

expense associated with the Tax Receivable Agreement.

(Dollars in Thousands)

4Q'17

1Q'18

2Q'18

3Q'18

4Q'18

FY'17

FY'18

Realized Performance Compensation

GAAP

Realized Incentive Fee Compensation

43,450

6,662

9,743

7,251

10,260

105,279

33,916

Realized Performance Allocations Compensation

557,244

112,062

186,398

200,442

212,174

1,281,965

711,076

GAAP

600,694

118,724

196,141

207,693

222,434

1,387,244

744,992

Total Segment

Less: Fee Related Performance Compensation

(23,176)

(20,336)

(13,858)

(19,655)

(75,933)

(53,844)

Less: Equity-Based Compensation -

Performance Compensation

(4,219)

(3,900)

(2,911)

(3,062)

(3,134)

(13,700)

(13,007)

Total Segment

573,299

114,829

172,894

190,773

199,645

1,297,611

678,141

Realized Principal Investment Income

GAAP

184,562

42,145

129,197

134,619

109,901

635,769

415,862

Segment Adjustment (e)

(112,337)

(13,452)

(34,550)

(68,999)

(62,803)

(199,575)

(179,804)

Total Segment

72,225

28,693

94,647

65,620

47,098

436,194

236,058

GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest Income

GAAP

Interest and Dividend Revenue

40,524

35,385

40,073

48,604

47,885

139,696

171,947

Interest Expense

(74,606)

(38,671)

(39,320)

(41,355)

(44,644)

(197,486)

(163,990)

GAAP

(34,082)

(3,286)

753

7,249

3,241

(57,790)

7,957

Segment Adjustment (f)

4,573

1,433

2,089

1,764

8,682

7,872

13,968

Total Segment

(29,509)

(1,853)

2,842

9,013

11,923

(49,918)

21,925

Blackstone

Definitions and Distribution Policy

Blackstone discloses the following operating metrics and 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:

•

Segment

Distributable

Earnings,

“Segment

DE”,

Blackstone’s

segment

profitability

measure

used

make

operating

decisions

and

assess

performance

across

Blackstone’s four segments. Segment DE represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations

for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates non-controlling ownership interests in

Blackstone’s consolidated Operating Partnerships, removes the amortization of intangible assets and removes Transaction-Related Charges. Segment DE excludes

unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision for

Taxes.

Net

Realizations

presented

segment

basis

and

the

sum

Realized

Principal

Investment

Income

and

Realized

Performance

Revenues

(which

refers

Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance

Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).

•

Distributable Earnings, or “DE”, is derived from Blackstone’s segment reported results, and is used 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 the sum of Segment

DE plus Net Interest Income (Loss) less Taxes and Related Payables. DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its

most directly comparable GAAP measure of Income (Loss) Before Provision for Taxes.

Net

Interest

Income

(Loss)

presented

segment

basis

and

equal

Interest

and

Dividend

Revenue

less

Interest

Expense,

adjusted

for

the

impact

consolidation of Blackstone Funds, and interest expense associated with the Tax Receivable Agreement.

Taxes

and

Payables

represent

the

total

GAAP

tax

provision

adjusted

include

only

the

current

tax

provision

(benefit)

calculated

Income

(Loss)

Before Provision for Taxes excluding the tax impact of any divestitures and including the Payable under the Tax Receivable Agreement.

•

Fee

Earnings,

“FRE”,

performance

measure

used

assess

Blackstone’s

ability

generate

profits

from

revenues

that

are

measured

and

received

a recurring basis and not subject to future realization events. FRE equals management and advisory fees (net of management fee reductions and offsets) plus Fee

Related Performance Revenues, less (a) Fee Related Compensation on a segment basis, and (b) Other Operating Expenses. FRE is derived from and reconciled to,

but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision for Taxes.

Fee

Compensation

presented

segment

basis

and

refers

the

compensation

expense,

excluding

Equity-Based

Compensation,

directly

Management and Advisory Fees, Net and Fee Related Performance Revenues.

Fee

Performance

Revenues

refers

the

realized

portion

Performance

Revenues

from

Perpetual

Capital

that

are

(a)

measured

and

received

recurring basis, and (b) not dependent on realization events from the underlying investments.

Fee

Performance

Compensation

included

Fee

Compensation

segment

basis

and

refers

compensation

expense

directly

Fee Related Performance Revenues.

Perpetual

Capital

refers

the

component

assets

under

management

with

indefinite

term,

that

not

liquidation,

and

for

which

there

requirement

to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows. Includes co-

investment capital with an investor right to convert into Perpetual Capital.

Continued...

Blackstone

Definitions

and

Distribution

Policy

–

Continued

•

Adjusted

Earnings

Before

Interest,

Taxes

and

Depreciation

and

Amortization,

“Adjusted

EBITDA”,

supplemental

measure

used

assess

performance

derived from Blackstone’s segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents Distributable Earnings plus

the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables, and (c) Depreciation and Amortization. Adjusted EBITDA is derived from

and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision for Taxes.

•

Performance

Revenues

collectively

refers

to:

(a)

Incentive

Fees,

and

(b)

Performance

Allocations.

•

Performance

Compensation

collectively

refers

to:

(a)

Incentive

Fee

Compensation,

and

(b)

Performance

Allocations

Compensation.

•

Transaction-Related

Charges

arise

from

corporate

actions

including

acquisitions,

divestitures,

and

Blackstone’s

initial

public

offering.

They

consist

primarily

equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the tax receivable agreement resulting

from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.

Distribution

Policy.

Blackstone’s

intention

distribute

quarterly

common

unitholders

approximately

85%

The

Blackstone

Group

L.P.’s

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

tax-related

payments,

clawback

obligations

and

distributions

unitholders

for

any

ensuing

quarter.

The

amount

distributed

could

also

adjusted

upward

any

one

quarter.

All

the

foregoing

subject

the

qualification

that

the

declaration

and

payment

any

distributions

are

the

sole

discretion

of Blackstone’s general partner and may change its distribution policy at any time, including, without limitation, to eliminate such distributions entirely.

Blackstone

Forward-Looking Statements

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

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

Blackstone’s operations, 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

various

risks

and

uncertainties.

Accordingly,

there

are

will

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

those

described

under

the

section

entitled

“Risk

Factors”

its

Annual

Report

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

the

filings.

Blackstone

undertakes

obligation

publicly

update

review

any

forward-looking

statement,

whether

result

of new information, future developments or otherwise.

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

Blackstone (BX) 8-KBlackstone Reports Fourth Quarter and Full Year 2018 Results