Blackstone 8K Reports Third Quarter 2019 Results | BX 23 Oct 19

Exhibit 99.1

LOGO

Blackstone Reports Third Quarter 2019 Results

New York, October 23, 2019: Blackstone (NYSE:BX) today reported its third quarter 2019 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “In the third quarter Blackstone again generated strong results for our investors, who in today’s challenging environment look to our firm as a critical solutions provider. Our ability to execute on scale investment opportunities across a broad array of strategies is highly differentiated, as demonstrated by $16 billion of deployments in the quarter and a record $62 billion over the last twelve months. Our investors continue to entrust us with capital for both new and existing strategies, including nearly $150 billion of inflows during the last year – culminating in industry-record Total Assets Under Management of $554 billion, up 21% year-over-year.”

Blackstone issued a full detailed presentation of its third quarter 2019 results, which can be viewed atwww.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $0.49 per common share to record holders of common shares at the close of business on November 4, 2019. This dividend will be paid on November 12, 2019.

Quarterly Investor Call Details

Blackstone will host a conference call on October 23, 2019 at 9:00 a.m. ET to discuss third quarter 2019 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), passcode 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), passcode 139 805 59#.

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 $554 billion in assets under management, include investment vehicles focused on private

The Blackstone Group Inc.

345 Park Avenue

New York, New York 10154

T 212 583 5000

equity, real estate, public debt and equity, growth equity, opportunistic,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 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 our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. 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. We believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our Annual Report on Form10-K for the year ended December 31, 2018 and in our Quarterly Report on Form10-Q for the quarter ended March 31, 2019, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), 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 report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake 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.

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

October 23, 2019

Blackstone’s Third Quarter 2019 Earnings

Blackstone

Blackstone’s Third Quarter 2019 GAAP Results

GAAP

Net

Income

was

$1.2

billion

for

the

quarter

and

$2.9

billion

year-to-date.

GAAP

Net

Income

Attributable

The

Blackstone

Group

Inc.

was

$779

million

for

the

quarter

and

$1.6

billion

year-to-date.

Income Before Provision for Taxes Margin is calculated by dividing Income Before Provision for Taxes by Total Revenues. Effective July 1, 2019, The Blackstone Group L.P. converted from a Delaware

limited partnership to a Delaware corporation, The Blackstone Group Inc. (the “Conversion”). This presentation includes results for The Blackstone Group L.P. prior to the Conversion. As of any time

prior to the Conversion, references to “Blackstone,” “the Company,” “our” and similar terms mean The Blackstone Group L.P. and its consolidated subsidiaries and, as of any time after the Conversion,

The Blackstone Group Inc. and its consolidated subsidiaries. All references to shares or per share amounts prior to the Conversion refer to units or per unit amounts.

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

3Q'18

3Q'19

3Q'18 YTD

3Q'19 YTD

3Q'17 LTM

3Q'18 LTM

3Q'19 LTM

Revenues

Management and Advisory Fees, Net

780,009

878,151

2,230,242

2,528,255

2,659,862

2,959,301

3,325,809

Incentive Fees

9,799

8,254

41,743

42,301

188,025

161,930

58,098

Investment Income (Loss)

Performance Allocations

Realized

592,103

446,550

1,365,119

1,021,445

2,582,430

2,787,381

1,532,833

Unrealized

299,238

176,370

1,367,678

998,101

629,097

884,645

191,796

Principal Investments

Realized

134,619

74,642

305,961

292,943

557,557

490,523

402,844

Unrealized

52,840

15,391

268,082

147,090

73,139

247,515

(71,075)

Total Investment Income

1,078,800

712,953

3,306,840

2,459,579

3,842,223

4,410,064

2,056,398

Interest and Dividend Revenue

48,604

42,482

124,062

130,252

127,716

164,586

178,137

Other

9,368

93,273

625,394

86,403

(46,595)

591,613

133,326

Total Revenues

1,926,580

1,735,113

6,328,281

5,246,790

6,771,231

8,287,494

5,751,768

Expenses

Compensation and Benefits

Compensation

419,285

462,766

1,236,167

1,372,684

1,382,348

1,600,651

1,746,474

Incentive Fee Compensation

7,251

5,419

23,656

19,711

89,199

67,106

29,971

Performance Allocations Compensation

Realized

200,442

155,663

498,902

367,883

872,080

1,056,146

580,057

Unrealized

178,184

94,907

622,610

446,440

412,927

456,427

143,572

Total Compensation and Benefits

805,162

718,755

2,381,335

2,206,718

2,756,554

3,180,330

2,500,074

General, Administrative and Other

168,813

171,067

441,354

492,437

499,435

579,962

645,956

Interest Expense

41,355

53,362

119,346

138,960

164,022

193,952

183,604

Fund Expenses

2,302

4,036

74,909

12,509

123,327

107,601

16,086

Total Expenses

1,017,632

947,220

3,016,944

2,850,624

3,543,338

4,061,845

3,345,720

Other Income

Reduction of Tax Receivable Agreement Liability

174,606

403,855

174,606

Net Gains from Fund Investment Activities

66,838

48,450

250,956

239,906

313,144

332,919

180,672

Income Before Provision for Taxes

975,786

1,010,949

3,562,293

2,810,678

3,541,037

4,962,423

2,761,326

Provision (Benefit) for Taxes

26,798

(156,786)

220,024

(76,895)

194,644

816,614

(47,529)

Net Income

948,988

1,167,735

3,342,269

2,887,573

3,346,393

4,145,809

2,808,855

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

2,569

(8)

2,199

3,567

7,869

9,799

(736)

Net Income Attributable to Non-Controlling Interests in Consolidated Entities

143,101

88,406

427,678

355,983

423,759

560,042

287,183

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

360,576

299,900

1,359,736

961,490

1,377,060

1,719,174

966,743

Net Income Attributable to The Blackstone Group Inc. (“BX”)

442,742

779,437

1,552,656

1,566,533

1,537,705

1,856,794

1,555,665

Net Income Per Share of Class A Common Stock, Basic

0.65

1.15

2.28

2.32

2.74

2.30

Net Income Per Share of Class A Common Stock, Diluted

0.64

1.15

2.27

2.32

2.29

2.74

2.30

Income Before Provision for Taxes Margin

50.6%

58.3%

56.3%

53.6%

52.3%

59.9%

48.0%

Blackstone

Blackstone’s Third Quarter 2019 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 Blackstone. Class A

common

stock

repurchased

the

quarter

ended

September

30,

2019

excludes

for

which

trades

were

executed

during

the

three

months

ended

June

30,

2019

and

settlement

occurred

July

2019. See pages 32-33, Definitions and Dividend Policy, for definitions of terms used throughout this presentation. Unless otherwise noted, references to “common stock” and “common shares” refer

to Class A common stock.

Capital

Metrics

Total Assets Under Management (“AUM”) of $554.0 billion, up 21% year-over-year

Inflows of $20.4 billion in the quarter and $147.1 billion for the LTM

Realizations of $9.7 billion in the quarter and $37.4 billion for the LTM

Deployment of $16.2 billion in the quarter and a record $62.0 billion for the LTM

Shareholder

Dividends

Dividend of $0.49 per common share payable on November 12, 2019

•

Dividends of $1.92 per common share for the LTM

Repurchased 2.8 million common shares in the quarter and 19.1 million common shares for

the LTM

Over $700 million distributed with respect to the third quarter to shareholders through

dividends and share repurchases, and over $3.0 billion for the LTM

Corporate

Structure

Completed the conversion to a corporation on July

2019

Financial

Measures

Fee Related Earnings (“FRE”) of $440 million ($0.37/share) in the quarter, up 27%

year-

over-year

•

FRE was $1.7 billion for the LTM

($1.39/share), up 21% year-over-year

Distributable Earnings (“DE”) of $710 million ($0.58/share) in the quarter

•

DE was $2.7 billion for the LTM

($2.16/share)

Net Accrued Performance Revenues receivable of $4.2 billion ($3.48/share)

Blackstone

Blackstone’s Third Quarter 2019 Segment Earnings

Fee Related Earnings per Share is based on end of period DE Shares Outstanding (see page 23, Share Summary). DE per Common Share is based on DE Attributable to Common

Shareholders (see page 22, Shareholder Dividends) and end of period Participating Common Shares outstanding. YTD per Share amounts represent the sum of the last three quarters. See

pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.

% Change

(Dollars in Thousands, Except per Share Data)

3Q'18

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Management and Advisory Fees, Net

779,219

880,345

13%

2,238,257

2,538,563

13%

Fee Related Performance Revenues

30,299

34,225

13%

79,651

55,628

(30)%

Fee Related Compensation

(334,545)

(329,834)

(1)%

(936,862)

(947,699)

Other Operating Expenses

(128,745)

(144,351)

12%

(358,303)

(409,783)

14%

Fee Related Earnings

346,228

440,385

27%

1,022,743

1,236,709

21%

FRE per Share

0.29

0.37

28%

0.85

1.03

21%

Realized Performance Revenues

572,159

420,840

(26)%

1,328,074

1,008,995

(24)%

Realized Performance Compensation

(190,773)

(143,870)

(25)%

(478,496)

(354,576)

(26)%

Realized Principal Investment Income

65,620

36,148

(45)%

188,960

185,613

(2)%

Net Realizations

447,006

313,118

(30)%

1,038,538

840,032

(19)%

Total Segment Distributable Earnings

793,234

753,503

(5)%

2,061,281

2,076,741

Net Interest Income (Loss)

9,013

(7,767)

n/m

10,002

(99)%

Taxes and Related Payables

(32,963)

(35,815)

(99,802)

(120,055)

20%

Distributable Earnings

769,284

709,921

(8)%

1,971,481

1,956,741

(1)%

DE per Common Share

0.63

0.58

(8)%

1.60

1.59

(1)%

Total Segment Revenues

1,447,297

1,371,558

(5)%

3,834,942

3,788,799

(1)%

Total Assets Under Management

456,691,832

554,022,343

21%

456,691,832

554,022,343

21%

Fee-Earning Assets Under Management

342,261,123

394,138,443

15%

342,261,123

394,138,443

15%

Blackstone

Summary of Financials

LTM

Fee

Earnings

$1.39

per

share,

increase

22%

year-over-year.

LTM

Total

Segment

Distributable

Earnings

were

$2.8

billion.

Fee Related Earnings per Share

(Per Share)

Segment Distributable Earnings

(Dollars in Millions)

3Q’19 LTM Total: $2,841

FRE Margin is calculated by dividing Fee Related Earnings by Fee Related Revenues (defined as the sum of Total Segment Management and Advisory Fees, Net and Fee Related

Performance Revenues). Totals may not add due to rounding.

$1.08

$1.14

$1.39

45.6%

44.4%

48.6%

3Q'17 LTM

3Q'18 LTM

3Q'19 LTM

$1,254

$949

$353

$285

Real Estate

Private Equity

Hedge Fund Solutions

Credit

FRE Margin

FRE/Share

Blackstone

$4,035

$4,044

$4,171

$377

$251

3Q'18

2Q'19

Net Performance

Revenues

Net Realized

Distributions

3Q'19

3Q'19 LTM

Real Estate

Opportunistic Funds

3.8%

13.6%

Core+

2.3%

8.7%

Private Equity

Corporate Private Equity

2.6%

4.9%

Tactical Opportunities

1.0%

5.6%

Strategic Partners

9.6%

16.5%

Hedge Fund Solutions

BPS Composite

0.4%

3.5%

Credit

Performing Credit

0.9%

8.9%

Distressed

(3.9)%

(9.3)%

Investment Performance and Net Accrued Performance Revenues

Positive

overall

appreciation

drove

Net

Accrued

Performance

Revenues

$4.2

billion

($3.48/share),

year-

over-year.

•

Appreciation

generated

$377

million

additional

Net

Accrued

Performance

Revenues,

relative

$251

million

Net

Realized

Distributions

the

quarter.

Net Accrued

Performance Revenues

(Dollars in Millions)

Investment Performance

(Appreciation / Gross Returns)

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

0.2%

and

2.7%

for

3Q’19

and

3Q’19

LTM,

respectively.

Performing

Credit

net

returns

were

0.3%

and

5.9%

for

3Q’19

and

3Q’19

LTM,

respectively.

Distressed

net

returns

were

(4.1)%

and

(9.2)%

for

3Q’19

and

3Q’19

LTM,

respectively.

Net

Realized

Distributions

excludes

Net

Performance

Revenues

realized,

but

not

yet

distributed

of the reporting date which are included in the Net Accrued Performance Revenues balance.

Blackstone

Capital Metrics Activity

Inflows

were

$20.4

billion

the

quarter,

bringing

LTM

inflows

$147.1

billion.

Realizations

were

$9.7

billion

the

quarter

and

$37.4

billion

for

the

LTM.

Deployed

$16.2

billion

the

quarter

and

$62.0

billion

for

the

LTM.

•

Committed

additional

$9.1

billion

during

the

quarter

that

not

yet

deployed.

(Dollars in Millions)

Private Equity includes Corporate Private Equity, Core Private Equity, Life Sciences, and BTAS.

Inflows

Realizations

Capital Deployed

3Q'19

3Q'19 LTM

3Q'19

3Q'19 LTM

3Q'19

3Q'19 LTM

Total Real Estate

6,746

46,267

4,576

15,266

8,165

20,918

Opportunistic

2,155

31,142

2,893

10,185

4,009

9,910

Core+

3,266

10,442

690

2,695

3,652

8,997

BREDS

1,325

4,683

993

2,386

505

2,011

Total Private Equity

3,255

58,358

2,812

14,496

5,809

27,663

Private Equity

1,220

30,090

1,188

8,577

1,662

9,835

Tactical Opportunities

1,316

5,256

977

3,434

1,685

5,704

Strategic Partners

718

14,044

646

2,485

2,462

9,621

Infrastructure

8,969

2,503

Hedge Fund Solutions

BAAM

3,164

12,186

306

1,007

659

3,568

Credit

GSO/BIS/Harvest

7,227

30,239

2,054

6,615

1,523

9,810

Total Blackstone

20,391

147,050

9,748

37,384

16,157

61,959

Real Estate

Private Equity

Blackstone

$24.1

$29.2

$3.8

$5.7

$5.1

$14.4

$35.3

$47.7

$68.3

$97.0

3Q'18

3Q'19

$130.6

$141.9

$80.0

$81.2

$126.2

$173.9

$119.9

$157.1

$456.7

$554.0

3Q'18

3Q'19

Assets Under Management

Total AUM increased to $554.0 billion, up 21% year-over-year, with $20.4 billion of inflows in the quarter and

$147.1 billion for the LTM.

Fee-Earning AUM of $394.1 billion was up 15% year-over-year, with $18.0 billion of inflows in the quarter and

$101.9 billion for the LTM.

Perpetual Capital AUM reached $97.0 billion, up 42% year-over-year.

Fee-Earning AUM

(Dollars in Billions)

Total AUM

(Dollars in Billions)

Real Estate

Hedge Fund Solutions

Credit

Private Equity

Perpetual Capital AUM

(Dollars in Billions)

$98.7

$104.6

$74.6

$74.9

$78.2

$97.9

$90.8

$116.7

$342.3

$394.1

3Q'18

3Q'19

Blackstone

Additional Capital Detail

Invested Performance Revenue Eligible AUM reached $235.6 billion at quarter end, up 13% year-over-year, and

has increased 23% since the third quarter of 2017.

Undrawn

capital

(“Total

Dry

Powder”)

available

for

investment

$148.0

billion,

driven

fundraising

activity

for

the

latest

flagship

funds.

Total Dry Powder

(Dollars in Billions)

3Q’19 Total: $148.0

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.

$44.8

$71.8

$2.2

$29.1

$40.1

$22.4

$25.2

$39.4

$44.8

$43.9

$43.3

$58.3

$67.8

$69.2

$82.2

$98.7

$192.0

$207.8

$235.6

3Q'17

3Q'18

3Q'19

Segment Highlights

Blackstone

Real Estate

Appreciation for core+ funds excludes BREIT.

Total

AUM:

Increased

31%

$157.1

billion

with

inflows

$6.7

billion

the

quarter

and

$46.3

billion

for

the

LTM.

•

Held

the

final

for

BREP

IX,

the

largest

real

estate

fund

ever

$20.5

billion,

the

quarter;

raised

$2.4

billion

BREIT

and

$1.1

billion

the

sixth

European

opportunistic

fund.

Realizations:

$4.6

billion

the

quarter

and

$15.3

billion

for

the

LTM;

realizations

the

quarter

included

secondary

sale

Invitation

Homes

and

the

sale

the

final

office

asset

Equity

Office

Properties.

Capital

Deployed:

$8.2

billion

the

quarter

and

$20.9

billion

for

the

LTM;

deployment

the

quarter

included

the

acquisition

GLP’s

U.S.

industrial

portfolio,

the

largest

private

real

estate

transaction

ever.

•

Committed

additional

$4.0

billion

during

the

quarter

that

not

yet

deployed,

including

the

acquisition

million

square

foot

last-mile

logistics

portfolio.

Appreciation:

Opportunistic

funds

and

core+

funds

appreciated

3.8%

and

2.3%

the

quarter,

and

13.6%

and

8.7%

for

the

LTM,

respectively.

% Change

(Dollars in Thousands)

3Q'18

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Management Fees, Net

291,501

332,529

14%

809,201

894,345

11%

Fee Related Performance Revenues

30,299

30,600

80,317

48,348

(40)%

Fee Related Compensation

(128,342)

(132,183)

(349,735)

(344,794)

(1)%

Other Operating Expenses

(39,787)

(43,897)

10%

(105,230)

(122,997)

17%

Fee Related Earnings

153,671

187,049

22%

434,553

474,902

Realized Performance Revenues

273,309

282,379

741,999

558,134

(25)%

Realized Performance Compensation

(79,309)

(85,544)

(230,140)

(183,186)

(20)%

Realized Principal Investment Income

16,197

17,968

11%

81,086

63,257

(22)%

Net Realizations

210,197

214,803

592,945

438,205

(26)%

Segment Distributable Earnings

363,868

401,852

10%

1,027,498

913,107

(11)%

Segment Revenues

611,306

663,476

1,712,603

1,564,084

(9)%

Total AUM

119,942,029

157,076,273

31%

119,942,029

157,076,273

31%

Fee-Earning AUM

90,772,735

116,749,305

29%

90,772,735

116,749,305

29%

Blackstone

Private Equity

Total

AUM:

Increased

38%

$173.9

billion

with

inflows

$3.3

billion

the

quarter

and

$58.4

billion

for

the

LTM.

•

Raised

$2.9

billion

capital

primarily

driven

Corporate

Private

Equity

and

Tactical

Opportunities.

Realizations:

$2.8

billion

the

quarter,

including

both

public

and

private

sales,

and

$14.5

billion

for

the

LTM.

Capital

Deployed:

$5.8

billion

the

quarter

and

$27.7

billion

for

the

LTM

across

regions;

committed

additional

$2.6

billion

the

quarter

that

not

yet

deployed.

Appreciation:

Corporate

Private

Equity

appreciated

2.6%

the

quarter

driven

underlying

appreciation

the

private

portfolio

and

appreciated

4.9%

for

the

LTM.

% Change

(Dollars in Thousands)

3Q'18

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Management and Advisory Fees, Net

222,629

255,278

15%

617,441

785,977

27%

Fee Related Compensation

(105,621)

(105,773)

(289,357)

(318,467)

10%

Other Operating Expenses

(36,654)

(38,235)

(103,852)

(112,865)

Fee Related Earnings

80,354

111,270

38%

224,232

354,645

58%

Realized Performance Revenues

290,012

124,231

(57)%

505,306

403,737

(20)%

Realized Performance Compensation

(106,400)

(52,034)

(51)%

(207,958)

(154,671)

(26)%

Realized Principal Investment Income

44,408

11,977

(73)%

83,346

80,022

(4)%

Net Realizations

228,020

84,174

(63)%

380,694

329,088

(14)%

Segment Distributable Earnings

308,374

195,444

(37)%

604,926

683,733

13%

Segment Revenues

557,049

391,486

(30)%

1,206,093

1,269,736

Total AUM

126,184,368

173,858,400

38%

126,184,368

173,858,400

38%

Fee-Earning AUM

78,195,072

97,936,871

25%

78,195,072

97,936,871

25%

Blackstone

Hedge Fund Solutions

The

BPS

Composite

gross

and

net

returns

are

based

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

BPS

funds

directly

into

those

platforms.

BAAM-managed

funds

liquidation

and

non

fee-

paying

assets

(net

returns

only)

are

also

excluded.

The

funds/accounts

that

comprise

the

BPS

Composite

are

not

managed

within

single

fund

account

and

are

managed

with

different

mandates.

There

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 BPS Composite does not

represent the performance of an actual fund or account.

Total

AUM:

Increased

$81.2

billion

with

inflows

$3.2

billion

the

quarter

and

$12.2

billion

for

the

LTM.

•

Held

the

initial

for

the

second

stakes

fund

the

quarter,

bringing

Total

AUM

$1.2

billion.

•

October

subscriptions

$232

million

are

not

yet

included

Total

AUM.

Returns:

BPS

Composite

gross

returns

0.4%

the

quarter

(0.2%

net),

bringing

year-to-date

5.9%

(5.2%

net).

•

Gross

returns

3.5%

for

the

LTM

(2.7%

net),

outperforming

global

markets

with

less

than

one

fifth

the

volatility

broader

markets,

compared

0.0%

return

for

the

benchmark

HFRX

Global

Return

Index.

% Change

(Dollars in Thousands)

3Q'18

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Management Fees, Net

130,320

141,367

390,258

416,726

Fee Related Compensation

(43,443)

(38,898)

(10)%

(123,615)

(118,474)

(4)%

Other Operating Expenses

(20,753)

(20,495)

(1)%

(58,032)

(59,492)

Fee Related Earnings

66,124

81,974

24%

208,611

238,760

14%

Realized Performance Revenues

3,985

1,848

(54)%

21,432

17,899

(16)%

Realized Performance Compensation

(1,922)

(1,000)

(48)%

(7,391)

(4,588)

(38)%

Realized Principal Investment Income

2,024

1,480

(27)%

10,430

13,503

29%

Net Realizations

4,087

2,328

(43)%

24,471

26,814

10%

Segment Distributable Earnings

70,211

84,302

20%

233,082

265,574

14%

Segment Revenues

136,329

144,695

422,120

448,128

Total AUM

80,005,136

81,154,390

80,005,136

81,154,390

Fee-Earning AUM

74,558,599

74,877,976

74,558,599

74,877,976

Blackstone

Credit

Performing Credit includes mezzanine lending funds, middle market direct lending funds and other performing credit strategy funds. Distressed includes credit alpha strategies, stressed/distressed funds and energy

strategies. The 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. 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 returns were 0.3% for 3Q’19. Distressed net returns were (4.1)% for 3Q’19.

Total

AUM:

Increased

$141.9

billion

with

inflows

$7.2

billion

the

quarter

and

$30.2

billion

for

the

LTM.

•

Held

additional

closes

for

the

second

European

senior

debt

fund

strategy

totaling

$1.8

billion

the

quarter.

•

Inflows

$2.5

billion

new

CLOs

and

other

Long

Only

strategies

the

quarter.

•

Insurance

Solutions

had

$1.6

billion

gross

inflows

the

quarter,

including

$1.0

billion

commitments

for

private

structured

credit

mandate.

Realizations:

$2.1

billion

the

quarter

and

$6.6

billion

for

the

LTM.

Capital

Deployed:

$1.5

billion

the

quarter,

driven

the

U.S.

Direct

Lending

strategy,

and

$9.8

billion

for

the

LTM;

committed

additional

$1.8

billion

the

quarter

that

not

yet

deployed.

Returns:

Gross

returns

0.9%

the

quarter

for

Performing

Credit;

gross

returns

(3.9)%

the

quarter

for

Distressed

driven

certain

upstream

energy

positions.

% Change

(Dollars in Thousands)

3Q'18

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Management Fees, Net

134,769

151,171

12%

421,357

441,515

Fee Related Performance Revenues

3,625

n/m

(666)

7,280

n/m

Fee Related Compensation

(57,139)

(52,980)

(7)%

(174,155)

(165,964)

(5)%

Other Operating Expenses

(31,551)

(41,724)

32%

(91,189)

(114,429)

25%

Fee Related Earnings

46,079

60,092

30%

155,347

168,402

Realized Performance Revenues

4,853

12,382

155%

59,337

29,225

(51)%

Realized Performance Compensation

(3,142)

(5,292)

68%

(33,007)

(12,131)

(63)%

Realized Principal Investment Income

2,991

4,723

58%

14,098

28,831

105%

Net Realizations

4,702

11,813

151%

40,428

45,925

14%

Segment Distributable Earnings

50,781

71,905

42%

195,775

214,327

Segment Revenues

142,613

171,901

21%

494,126

506,851

Total AUM

130,560,299

141,933,280

130,560,299

141,933,280

Fee-Earning AUM

98,734,717

104,574,291

98,734,717

104,574,291

Supplemental Details

Blackstone

Total Segments

LP Capital Invested and Total Capital Invested have been updated for 2Q’19.

(Dollars in Thousands)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18 YTD

3Q'19 YTD

Management and Advisory Fees, Net

Base Management Fees

721,606

722,648

757,518

805,315

809,729

2,121,677

2,372,562

Transaction, Advisory and Other Fees, Net

73,944

77,576

65,150

61,495

92,702

151,922

219,347

Management Fee Offsets

(16,331)

(2,029)

(8,606)

(22,654)

(22,086)

(35,342)

(53,346)

Total Management and Advisory Fees, Net

779,219

798,195

814,062

844,156

880,345

2,238,257

2,538,563

Fee Related Performance Revenues

30,299

44,185

7,779

13,624

34,225

79,651

55,628

Fee Related Compensation

(334,545)

(279,284)

(324,031)

(293,834)

(329,834)

(936,862)

(947,699)

Other Operating Expenses

(128,745)

(130,025)

(123,311)

(142,121)

(144,351)

(358,303)

(409,783)

Fee Related Earnings

346,228

433,071

374,499

421,825

440,385

1,022,743

1,236,709

Realized Performance Revenues

572,159

483,697

246,769

341,386

420,840

1,328,074

1,008,995

Realized Performance Compensation

(190,773)

(199,645)

(85,240)

(125,466)

(143,870)

(478,496)

(354,576)

Realized Principal Investment Income

65,620

47,098

25,908

123,557

36,148

188,960

185,613

Total Net Realizations

447,006

331,150

187,437

339,477

313,118

1,038,538

840,032

Total Segment Distributable Earnings

793,234

764,221

561,936

761,302

753,503

2,061,281

2,076,741

Net Interest Income (Loss)

9,013

11,923

5,061

2,761

(7,767)

10,002

Taxes and Related Payables

(32,963)

(54,063)

(29,039)

(55,201)

(35,815)

(99,802)

(120,055)

Distributable Earnings

769,284

722,081

537,958

708,862

709,921

1,971,481

1,956,741

Total Segment Revenues

1,447,297

1,373,175

1,094,518

1,322,723

1,371,558

3,834,942

3,788,799

Total Assets Under Management

456,691,832

472,242,317

511,777,762

545,482,337

554,022,343

456,691,832

554,022,343

Fee-Earning Assets Under Management

342,261,123

342,527,507

352,993,394

387,864,642

394,138,443

342,261,123

394,138,443

Weighted-Average Fee-Earning AUM

340,994,284

343,514,196

349,589,269

368,900,952

391,977,663

336,496,661

365,664,742

LP Capital Invested

9,358,423

14,218,797

10,844,363

14,461,441

15,920,034

26,708,450

41,225,838

Total Capital Invested

9,894,470

16,349,738

11,783,583

17,669,109

16,156,664

28,365,761

45,609,356

Blackstone

3Q’19 Total AUM Rollforward

(Dollars in Millions)

3Q’19 LTM Total AUM Rollforward

(Dollars in Millions)

Inflows include contributions, capital raised, other increases in available capital, purchases, inter-segment allocations 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 the impact of foreign exchange rate fluctuations. AUM is reported in the segment where the assets are managed.

Assets Under Management

3Q’19 Fee-Earning AUM Rollforward

(Dollars in Millions)

3Q’19 LTM Fee-Earning AUM Rollforward

(Dollars in Millions)

Real

Private

Hedge Fund

Estate

Equity

Solutions

2Q'19

153,605

171,172

81,436

139,270

545,482

Inflows

6,746

3,255

3,164

7,227

20,391

Outflows

(566)

(349)

(3,070)

(2,023)

(6,008)

Net Inflows

6,180

2,905

5,204

14,383

Realizations

(4,576)

(2,812)

(306)

(2,054)

(9,748)

Market Activity

1,867

2,594

(69)

(486)

3,905

3Q'19

157,076

173,858

81,154

141,933

554,022

QoQ

Increase (Decrease)

(0)%

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

3Q'18

119,942

126,184

80,005

130,560

456,692

Inflows

46,267

58,358

12,186

30,239

147,050

Outflows

(2,593)

(1,263)

(12,407)

(11,697)

(27,960)

Net Inflows (Outflows)

43,673

57,095

(221)

18,542

119,090

Realizations

(15,266)

(14,496)

(1,007)

(6,615)

(37,384)

Market Activity

8,727

5,075

2,378

(554)

15,625

3Q'19

157,076

173,858

81,154

141,933

554,022

YoY Increase

31%

38%

21%

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

2Q'19

112,287

96,467

74,653

104,457

387,865

Inflows

7,452

3,192

2,934

4,395

17,973

Outflows

(552)

(108)

(2,411)

(1,846)

(4,917)

Net Inflows

6,900

3,085

523

2,549

13,056

Realizations

(2,898)

(1,735)

(265)

(1,648)

(6,545)

Market Activity

459

120

(33)

(783)

(237)

3Q'19

116,749

97,937

74,878

104,574

394,138

QoQ Increase

Credit

Total

Real

Private

Hedge Fund

Estate

Equity

Solutions

3Q'18

90,773

78,195

74,559

98,735

342,261

Inflows

40,170

29,000

11,024

21,677

101,870

Outflows

(6,588)

(1,604)

(11,960)

(9,820)

(29,971)

Net Inflows (Outflows)

33,582

27,396

(936)

11,858

71,899

Realizations

(9,978)

(7,808)

(912)

(4,838)

(23,537)

Market Activity

2,373

154

2,168

(1,180)

3,515

3Q'19

116,749

97,937

74,878

104,574

394,138

YoY Increase

29%

25%

15%

Credit

Total

Blackstone

$9.50

$9.67

3Q'18

3Q'19

September

30,

2019,

Blackstone

had

$5.6

billion

total

cash,

cash

equivalents,

and

corporate

treasury

investments

and

$11.6

billion

cash

and

net

investments,

$9.67

per

share.

Blackstone

has

net

debt,

$1.6

billion

undrawn

credit

revolver

and

maintains

A+/A+

ratings.

•

September

10,

2019,

Blackstone

issued

$500

million

10-year

notes

2.5%

coupon

and

$400

million

30-year

notes

3.5%

coupon

•

Proceeds

used

repurchase

$400

million

outstanding

2021

notes,

with

$175

million

repurchased

the

quarter

and

remainder

redeemed

subsequent

quarter

end.

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 $778 million, $666 million, $104 million, and $293 million, respectively, as of September 30, 2019. Cash and Net Investments per share amounts are calculated using period end

DE Shares Outstanding (see page 23, Share Summary).

A+/A+

Rated by S&P and Fitch

$1.6 billion

Undrawn Credit Revolver

with September 2023 Maturity

$5.6 billion

Total Cash and

Corporate Treasury

Cash and Net Investments

(Per Share)

(Dollars in Millions)

3Q’19

Cash and Cash Equivalents

2,469

Corporate Treasury

Investments

3,113

GP/Fund Investments

1,842

Net Accrued Performance

Revenues

4,171

Cash

and Net Investments

11,594

Outstanding

Bonds (at par)

4,860

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 Share calculations are based on end of period DE Shares Outstanding (see page 23, Share Summary).

3Q’19 QoQ Rollforward

(Dollars in Millions)

3Q’19 LTM Rollforward

(Dollars in Millions)

Net Accrued Performance Revenues

(Dollars in Millions, Except per Share Data)

3Q'18

2Q'19

3Q'19

Per Share

QoQ

Change

YoY

Change

Real Estate

BREP IV

0.01

(1)

BREP V

0.04

(7)

(44)

BREP VI

106

0.08

(14)

BREP VII

592

542

501

0.42

(41)

(91)

BREP VIII

386

517

597

0.50

211

BREP International II

0.04

BREP Europe III

(1)

BREP Europe IV

201

209

222

0.18

BREP Europe V

161

174

0.14

BREP Asia I

103

159

162

0.14

BPP

207

242

273

0.23

BREIT

0.05

BREDS

0.02

BTAS

0.04

Total Real Estate

1,853

2,133

2,256

1.88

124

403

Private Equity

BCP IV

111

0.02

(13)

(87)

BCP V

(44)

BCP VI

1,008

755

724

0.60

(32)

(284)

BCP VII

166

293

382

0.32

216

BCP Asia

0.01

BEP I

155

134

133

0.11

(1)

(22)

BEP II

0.01

(47)

(58)

Tactical Opportunities

161

140

114

0.09

(26)

(47)

Strategic Partners

133

0.11

BCEP

0.03

BTAS

0.04

Other

Total Private Equity

1,849

1,599

1,616

1.35

(233)

Total Hedge Fund Solutions

0.05

(8)

Total Credit

301

244

238

0.20

(6)

(63)

Net Accrued Performance Revenues

4,035

4,044

4,171

3.48

127

136

Memo: Net Realized Performance Revenues

109

129

0.11

2Q'19

Net

Performance

Revenues

Net Realized

Distributions

3Q'19

Real Estate

2,133

274

(151)

2,256

Private Equity

1,599

110

(93)

1,616

HFS

(4)

Credit

244

(3)

238

Total

4,044

377

(251)

4,171

QoQ Increase

3Q'18

Net

Performance

Revenues

Net Realized

Distributions

3Q'19

Real Estate

1,853

853

(450)

2,256

Private Equity

1,849

247

(480)

1,616

HFS

(15)

Credit

301

(32)

(31)

238

Total

4,035

1,112

(976)

4,171

YoY Increase

Blackstone

Investment

Records

September

30,

2019

(a)

Notes on page 21.

(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

76,765

0.1x

46%

4,511,354

2.2x

4,588,119

1.7x

28%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

277,154

1.0x

51%

13,008,509

2.4x

13,285,663

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

940,414

2.6x

64%

26,845,418

2.5x

27,785,832

2.5x

13%

BREP VII (Aug 2011 / Apr 2015)

13,496,564

1,906,659

8,170,449

1.7x

14%

21,559,665

2.1x

29,730,114

2.0x

23%

16%

BREP VIII (Apr 2015 / Jun 2019)

16,607,049

3,548,251

17,779,455

1.4x

5,643,169

1.6x

23,422,624

1.4x

27%

15%

BREP IX (Jun 2019 / Dec 2024)

20,468,154

18,849,963

1,618,192

1.0x

n/a

1,618,192

1.0x

n/a

n/m

Total Global BREP

72,612,792

24,304,873

28,862,429

1.4x

79,103,033

2.2x

107,965,462

1.9x

18%

16%

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

n/a

1,370,659

€

2.1x

1,370,659

€

2.1x

23%

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

1,629,748

10,637

2.7x

2,555,171

1.8x

2,565,808

1.8x

BREP Europe III (Jun 2008 / Sep 2013)

3,205,167

471,297

583,882

0.8x

5,557,290

2.5x

6,141,172

2.1x

21%

14%

BREP Europe IV (Sep 2013 / Dec 2016)

6,709,145

1,377,104

4,219,471

1.7x

16%

7,705,285

2.0x

11,924,756

1.9x

24%

17%

BREP Europe V (Dec 2016 / Jun 2022)

8,153,287

2,717,984

6,907,803

1.3x

431,777

2.3x

7,339,580

1.4x

45%

16%

BREP Europe VI (Oct 2019 / Apr 2025)

8,484,843

n/a

Total Euro BREP

29,006,362

€

13,051,228

€

11,721,793

€

1.4x

17,620,182

€

2.1x

29,341,975

€

1.8x

16%

14%

BREP Asia I (Jun 2013 / Dec 2017)

5,096,361

1,728,965

4,205,495

1.5x

12%

3,466,115

1.9x

7,671,610

1.7x

21%

15%

BREP Asia II (Dec 2017 / Jun 2023)

7,183,487

4,984,309

2,484,758

1.1x

5,584

n/m

2,490,342

1.1x

n/m

BREP Co-Investment (f)

7,045,918

151,982

1,611,092

2.2x

17%

12,962,096

2.1x

14,573,188

2.1x

16%

Total BREP

126,546,964

45,658,621

50,823,345

1.4x

117,901,242

2.2x

168,724,587

1.9x

17%

15%

BPP (Various) (g)

27,194,838

915,347

31,556,095

1.2x

5,096,623

2.2x

36,652,718

1.3x

n/m

10%

BREDS High-Yield (Various) (h)

12,011,230

2,699,492

3,213,907

1.1x

11,528,445

1.3x

14,742,352

1.3x

11%

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

13,150

n/a

2,953,649

1.4x

2,966,799

1.4x

BCP IV (Nov 2002 / Dec 2005)

6,773,182

198,964

175,763

2.5x

21,417,821

2.9x

21,593,584

2.9x

36%

BCP V (Dec 2005 / Jan 2011)

21,013,586

1,039,733

787,587

0.7x

49%

37,164,778

1.9x

37,952,365

1.9x

BCP VI (Jan 2011 / May 2016)

15,192,244

1,760,758

12,994,521

1.7x

37%

14,467,088

2.1x

27,461,609

1.9x

18%

13%

BEP I (Aug 2011 / Feb 2015)

2,435,285

224,784

1,897,585

1.9x

63%

2,677,532

1.9x

4,575,117

1.9x

17%

13%

BEP II (Feb 2015 / Feb 2021)

4,909,004

827,274

4,390,305

1.3x

271,835

1.8x

4,662,140

1.3x

42%

BCP VII (May 2016 / May 2022)

18,781,046

6,494,315

15,599,523

1.4x

n/m

1,179,341

1.7x

16,778,864

1.4x

45%

20%

BCP Asia (Dec 2017 / Dec 2023)

2,378,855

1,333,070

989,766

1.2x

n/m

n/a

989,766

1.2x

n/a

23%

BEP III (TBD)

3,994,781

n/a

BCP VIII (TBD)

24,036,991

n/a

Total Corporate Private Equity

107,839,907

39,935,245

36,848,200

1.5x

17%

94,315,289

2.1x

131,163,489

1.9x

16%

15%

Blackstone

Investment

Records

September

30,

2019

(a)

–

Continued

Notes on page 21.

(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)

Tactical Opportunities (Various)

23,830,203

10,086,741

10,140,457

1.2x

8,616,711

1.7x

18,757,168

1.4x

19%

10%

Tactical Opportunities Co-Investment and Other (Various)

6,268,265

1,686,983

4,524,239

1.2x

1,846,940

1.6x

6,371,179

1.3x

24%

13%

Total Tactical Opportunities

30,098,468

11,773,724

14,664,696

1.2x

10,463,651

1.7x

25,128,347

1.3x

20%

10%

Strategic Partners I-V (Various) (i)

11,862,636

1,739,914

1,258,026

n/m

16,433,139

n/m

17,691,165

1.5x

n/a

13%

Strategic Partners VI (Apr 2014 / Apr 2016) (i)

4,362,750

1,116,568

1,546,801

n/m

3,058,583

n/m

4,605,384

1.5x

n/a

17%

Strategic Partners VII (May 2016 / Mar 2019) (i)

7,489,970

2,532,867

5,723,979

n/m

1,185,979

n/m

6,909,958

1.4x

n/a

25%

Strategic Partners RA II (May 2017 / Mar 2022) (i)

1,749,807

661,916

833,571

n/m

170,334

n/m

1,003,905

1.2x

n/a

20%

Strategic Partners VIII (Mar 2019 / Jul 2023) (i)

10,763,600

6,261,019

1,852,344

n/m

n/a

1,852,344

1.3x

n/a

n/m

Strategic Partners RE, SMA and Other (Various) (i)

6,066,764

2,032,618

2,185,606

n/m

1,035,880

n/m

3,221,486

1.3x

n/a

18%

Total Strategic Partners

42,295,527

14,344,902

13,400,327

n/m

21,883,915

n/m

35,284,242

1.5x

n/a

14%

BCEP (Jan 2017 / Jan 2021) (j)

4,755,099

2,278,502

3,226,244

1.3x

378,007

1.6x

3,604,251

1.3x

36%

14%

BIP (Various)

13,659,163

11,955,845

1,729,806

1.0x

50%

n/a

1,729,806

1.0x

n/a

n/m

Hedge Fund Solutions

Strategic Capital Holdings (Dec 2013 / Jun 2020) (k)

3,378,575

723,050

1,705,207

1.1x

431,655

n/m

2,136,862

1.4x

n/a

Credit (l)

Mezzanine I (Jul 2007 / Oct 2011)

2,000,000

97,114

20,702

1.1x

33%

4,772,270

1.6x

4,792,972

1.6x

n/a

17%

Mezzanine II (Nov 2011 / Nov 2016)

4,120,000

1,081,205

1,558,118

0.9x

5,086,796

1.6x

6,644,914

1.3x

n/a

11%

Mezzanine III (Sep 2016 / Sep 2021)

6,639,133

2,927,128

4,135,451

1.1x

1,557,284

1.5x

5,692,735

1.2x

n/a

12%

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

3,253,143

85,000

189,921

0.3x

5,766,478

1.6x

5,956,399

1.4x

n/a

10%

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

5,125,000

594,808

1,378,356

0.7x

11%

4,102,362

1.3x

5,480,718

1.1x

n/a

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

7,356,380

5,795,460

1,577,943

1.0x

773,872

1.3x

2,351,815

1.1x

n/a

10%

Energy Select Opportunities (Nov 2015 / Nov 2018)

2,856,867

1,154,254

2,023,003

1.2x

703,185

1.7x

2,726,188

1.3x

n/a

11%

Energy Select Opportunities II (Feb 2019 / Feb 2024)

3,536,818

3,047,594

504,959

1.0x

21,773

2.4x

526,732

1.1x

n/a

n/m

Euro

European Senior Debt Fund (Feb 2015 / Feb 2019)

1,964,689

€

444,379

€

1,981,602

€

1.1x

1,116,137

€

1.4x

3,097,739

€

1.2x

n/a

10%

European Senior Debt Fund II (Jun 2019 / Jun 2024)

2,183,891

€

1,913,446

€

289,256

€

1.0x

€

n/a

289,256

€

1.0x

n/a

n/m

Total Credit

39,631,921

17,353,064

13,867,520

1.0x

24,055,122

1.5x

37,922,642

1.3x

n/a

11%

Blackstone

Investment

Records

September

30,

2019

–

Notes

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

n/m

Not meaningful generally due to the limited time since initial investment.

n/a

Not applicable.

(a)

Preliminary. Excludes investment vehicles where Blackstone does not earn fees.

(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 September 30, 2019 IRR on total invested capital based on

realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated

using actual timing of limited partner cash flows. Initial inception date cash flow may differ from the Investment Period Beginning Date.

(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 7% 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)

BREDS High-Yield represents the flagship real estate debt drawdown funds only and excludes BREDS High-Grade.

(i)

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

information is not available on a timely basis, returns are calculated from results that are reported on a three month lag.

(j)

BCEP,

Blackstone

Core

Equity

Partners,

core

private

equity

fund

which

invests

with

modest

risk

profile

and

longer

hold

period.

(k)

Represents Blackstone Strategic Capital Holdings (including Co-investment) which 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 credit drawdown

funds presented.

Blackstone

Shareholder Dividends

A detailed description of Blackstone’s dividend policy and the definition of Distributable Earnings can be found on pages 32-33, Definitions and Dividend 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 Share calculations are based on end of period Participating Common Shares

(page 23, Share Summary); actual dividends are paid to shareholders as of the applicable record date. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common

shareholders’ share was $61 million for 3Q’19 and $168 million for 3Q’19 YTD.

Generated

$0.58

Distributable

Earnings

per

common

during

the

quarter,

bringing

the

year-to-date

amount

$1.59

per

common

share.

Blackstone

declared

quarterly

dividend

$0.49

per

common

record

holders

November

2019;

payable

November

12,

2019.

% Change

(Dollars in Thousands, Except per Share Data)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

vs. 3Q'18

3Q'18 YTD

3Q'19 YTD

vs. 3Q'18 YTD

Distributable Earnings

769,284

722,081

537,958

708,862

709,921

(8)%

1,971,481

1,956,741

(1)%

Add: Other Payables Attributable

to Common Shareholders

22,980

43,345

14,598

39,673

24,578

59,387

78,849

33%

DE before Certain Payables

792,264

765,426

552,556

748,535

734,499

(7)%

2,030,868

2,035,590

Percent to Common Shareholders

56%

DE before Certain Payables Attributable

to Common Shareholders

447,516

429,433

310,832

419,502

413,900

(8)%

1,147,220

1,144,234

(0)%

Less: Other Payables Attributable

to Common Shareholders

(22,980)

(43,345)

(14,598)

(39,673)

(24,578)

(59,387)

(78,849)

33%

DE Attributable to Common Shareholders

424,536

386,088

296,234

379,829

389,322

(8)%

1,087,833

1,065,385

(2)%

DE per Common Share

0.63

0.57

0.44

0.57

0.58

(8)%

1.60

1.59

(1)%

Less: Retained Capital per Common Share

(0.09)

(0.07)

(0.09)

(0.23)

(0.25)

Special Cash Dividend per Common Share

0.10

n/m

0.20

n/m

Actual Dividend per Common Share

0.64

0.58

0.37

0.48

0.49

(23)%

1.57

1.34

(15)%

Record Date

Nov 4, 2019

Payable Date

Nov 12, 2019

Blackstone

Share Summary

Common Shareholders 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 Shares and Participating Partnership Units include both issued and

outstanding shares and unvested shares that participate in dividends.

Distributable

Earnings

Outstanding

quarter

end

1,199

million

shares.

•

Repurchased

2.8

million

common

the

quarter

and

19.1

million

common

for

the

LTM.

•

Available

authorization

remaining

was

$864

million

September

30,

2019.

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

Participating Common Shares

678,771,864

672,755,818

674,457,578

669,561,793

675,640,119

Participating Partnership Units

522,898,542

526,370,654

524,504,626

525,165,724

523,338,040

Distributable Earnings Shares Outstanding

1,201,670,406

1,199,126,472

1,198,962,204

1,194,727,517

1,198,978,159

Reconciliations and Disclosures

Blackstone

Notes on pages 26-27.

Reconciliation of GAAP to Non-GAAP Measures

QTD

YTD

LTM

(Dollars in Thousands)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

Net Income (Loss) Attributable to The Blackstone Group Inc.

442,742

(10,868)

481,304

305,792

779,437

1,552,656

1,566,533

1,537,705

1,856,794

1,555,665

Net Income Attributable to Non-Controlling Interests

in Blackstone Holdings

360,576

5,253

402,260

259,330

299,900

1,359,736

961,490

1,377,060

1,719,174

966,743

Net Income (Loss) Attributable to Non-Controlling Interests

in Consolidated Entities

143,101

(68,800)

186,833

80,744

88,406

427,678

355,983

423,759

560,042

287,183

Net Income (Loss) Attributable to Redeemable

Non-Controlling Interests in Consolidated Entities

2,569

(4,303)

2,480

1,095

(8)

2,199

3,567

7,869

9,799

(736)

Net Income (Loss)

948,988

(78,718)

1,072,877

646,961

1,167,735

3,342,269

2,887,573

3,346,393

4,145,809

2,808,855

Provision for Taxes

26,798

29,366

41,155

38,736

(156,786)

220,024

(76,895)

194,644

816,614

(47,529)

Income (Loss) Before Provision for Taxes

975,786

(49,352)

1,114,032

685,697

1,010,949

3,562,293

2,810,678

3,541,037

4,962,423

2,761,326

Transaction-Related Charges (a)

79,242

76,431

89,451

106,994

(82,547)

(338,347)

113,898

241,340

(685,402)

190,329

Amortization of Intangibles (b)

14,856

15,392

16,483

44,602

49,449

50,028

58,867

64,841

Impact of Consolidation (c)

(145,670)

73,103

(189,313)

(81,839)

(88,398)

(429,877)

(359,550)

(431,628)

(569,841)

(286,447)

Unrealized Performance Revenues (d)

(298,931)

806,531

(664,333)

(157,398)

(176,604)

(1,367,694)

(998,335)

(629,267)

(883,208)

(191,804)

Unrealized Performance Allocations Compensation (e)

178,184

(302,868)

287,015

64,518

94,907

622,610

446,440

412,927

456,427

143,572

Unrealized Principal Investment (Income) Loss (f)

(28,704)

160,659

(139,925)

56,353

5,219

(94,808)

(78,353)

111,102

(78,320)

82,306

Other Revenues (g)

(9,092)

(46,854)

(13,189)

20,150

(92,843)

(42,614)

(85,882)

52,061

(7,463)

(132,736)

Equity-Based Compensation (h)

36,576

43,102

66,776

53,105

58,570

115,118

178,451

106,561

136,514

221,553

Taxes and Related Payables (i)

(32,963)

(54,063)

(29,039)

(55,201)

(35,815)

(99,802)

(120,055)

(178,098)

(179,370)

(174,118)

Distributable Earnings

769,284

722,081

537,958

708,862

709,921

1,971,481

1,956,741

3,276,063

3,210,627

2,678,822

Taxes and Related Payables (i)

32,963

54,063

29,039

55,201

35,815

99,802

120,055

178,098

179,370

174,118

Net Interest (Income) Loss (j)

(9,013)

(11,923)

(5,061)

(2,761)

7,767

(10,002)

(55)

30,951

19,507

(11,978)

Total Segment Distributable Earnings

793,234

764,221

561,936

761,302

753,503

2,061,281

2,076,741

3,485,112

3,409,504

2,840,962

Realized Performance Revenues (k)

(572,159)

(483,697)

(246,769)

(341,386)

(420,840)

(1,328,074)

(1,008,995)

(2,625,683)

(2,824,872)

(1,492,692)

Realized Performance Compensation (l)

190,773

199,645

85,240

125,466

143,870

478,496

354,576

886,038

1,051,795

554,221

Realized Principal Investment Income (m)

(65,620)

(47,098)

(25,908)

(123,557)

(36,148)

(188,960)

(185,613)

(459,635)

(261,185)

(232,711)

Fee Related Earnings

346,228

433,071

374,499

421,825

440,385

1,022,743

1,236,709

1,285,832

1,375,242

1,669,780

Adjusted EBITDA Reconciliation

Distributable Earnings

769,284

722,081

537,958

708,862

709,921

1,971,481

1,956,741

3,276,063

3,210,627

2,678,822

Interest Expense (n)

40,923

41,792

41,638

43,230

52,815

118,046

137,683

159,579

190,391

179,475

Taxes and Related Payables (i)

32,963

54,063

29,039

55,201

35,815

99,802

120,055

178,098

179,370

174,118

Depreciation and Amortization

5,681

5,964

5,789

6,000

6,895

17,918

18,684

30,645

24,511

24,648

Adjusted EBITDA

848,851

823,900

614,424

813,293

805,446

2,207,247

2,233,163

3,644,385

3,604,899

3,057,063

Blackstone

Reconciliation

GAAP

Non-GAAP

Measures

–

Notes

Note:

See pages 32-33, Definitions and Dividend 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 and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.

(d)

This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back of performance revenues earned from

consolidated Blackstone Funds which have been eliminated in consolidation.

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

GAAP Unrealized Performance Allocations

299,238

(806,305)

663,999

157,732

176,370

1,367,678

998,101

629,097

884,645

191,796

Segment Adjustment

(307)

(226)

334

(334)

234

170

(1,437)

Unrealized Performance Revenues

298,931

(806,531)

664,333

157,398

176,604

1,367,694

998,335

629,267

883,208

191,804

(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 in consolidation, and (2) the removal of amounts associated with the

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

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

GAAP Unrealized Principal Investment Income (Loss)

52,840

(218,165)

169,044

(37,345)

15,391

268,082

147,090

73,139

247,515

(71,075)

Segment Adjustment

(24,136)

57,506

(29,119)

(19,008)

(20,610)

(173,274)

(68,737)

(184,241)

(169,195)

(11,231)

Unrealized Principal Investment Income (Loss)

28,704

(160,659)

139,925

(56,353)

(5,219)

94,808

78,353

(111,102)

78,320

(82,306)

(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

consolidation,

and

(2)

the

removal

certain

Transaction-Related Charges. For the three months ended June 30, 2018, Transaction-Related

Charges included $580.9 million of Other Revenues received upon the conclusion of Blackstone’s investment sub-advisory relationship with FS Investments’ funds.

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

GAAP Other Revenue

9,368

46,923

10,250

(17,120)

93,273

625,394

86,403

(46,595)

591,613

133,326

Segment Adjustment

(276)

(69)

2,939

(3,030)

(430)

(582,780)

(521)

(5,466)

(584,150)

(590)

Other Revenues

9,092

46,854

13,189

(20,150)

92,843

42,614

85,882

(52,061)

7,463

132,736

(h)

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

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.

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

GAAP Interest and Dividend Revenue

48,604

47,885

44,084

43,686

42,482

124,062

130,252

127,716

164,586

178,137

Segment Adjustment

1,332

5,830

2,615

2,305

2,566

3,986

7,486

912

6,298

13,316

Interest and Dividend Revenue

49,936

53,715

46,699

45,991

45,048

128,048

137,738

128,628

170,884

191,453

GAAP Interest Expense

41,355

44,644

42,002

43,596

53,362

119,346

138,960

164,022

193,952

183,604

Segment Adjustment

(432)

(2,852)

(364)

(366)

(547)

(1,300)

(1,277)

(4,443)

(3,561)

(4,129)

Interest Expense

40,923

41,792

41,638

43,230

52,815

118,046

137,683

159,579

190,391

179,475

Net Interest Income (Loss)

9,013

11,923

5,061

2,761

(7,767)

10,002

(30,951)

(19,507)

11,978

(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

Class

Common

Stock

Outstanding

Distributable

Earnings

Outstanding

QTD

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

GAAP Shares of Class A Common Stock Outstanding

669,411,215

663,212,830

665,331,887

660,588,369

666,257,305

Unvested Participating Common Shares

9,360,649

9,542,988

9,125,691

8,973,424

9,382,814

Participating Common Shares

678,771,864

672,755,818

674,457,578

669,561,793

675,640,119

Participating Partnership Units

522,898,542

526,370,654

524,504,626

525,165,724

523,338,040

Distributable Earnings Shares Outstanding

1,201,670,406

1,199,126,472

1,198,962,204

1,194,727,517

1,198,978,159

Disclosure

Weighted-Average

Class

Common

Stock

Outstanding

(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.

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

Taxes

12,793

38,975

15,344

34,209

26,933

51,047

76,486

98,775

87,053

115,461

Related Payables

20,170

15,088

13,695

20,992

8,882

48,755

43,569

79,323

92,317

58,657

Taxes and Related Payables

32,963

54,063

29,039

55,201

35,815

99,802

120,055

178,098

179,370

174,118

QTD

YTD

LTM

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

Total GAAP Weighted-Average Shares of Class A Common Stock

Outstanding -

Basic

682,435,177

676,629,572

674,507,698

673,655,305

675,963,129

679,598,629

674,714,040

661,998,357

676,872,119

675,196,841

Weighted-Average Shares of Unvested Deferred Restricted Class

A Common Stock

230,759

207,752

330,639

256,629

215,270

265,007

1,028,809

337,193

263,789

Weighted-Average Blackstone Holdings Partnership Units

523,212,047

525,764,790

529,299,345

535,998,944

Total GAAP Weighted-Average Shares of Class A Common Stock

Outstanding -

Diluted

1,205,877,983

676,629,572

1,200,480,240

673,985,944

676,219,758

1,209,113,244

674,979,047

1,199,026,110

677,209,312

675,460,630

Blackstone

Blackstone’s Third Quarter 2019 GAAP Balance Sheet Results

See page 29, Reconciliation of GAAP to Non-GAAP Balance Sheet Measures.

(Dollars in Thousands) (Unaudited)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

Assets

Cash and Cash Equivalents

1,937,963

2,207,841

1,570,741

1,484,444

2,468,563

Cash Held by Blackstone Funds and Other

408,561

337,320

217,625

324,609

375,981

Investments

22,094,920

20,377,031

21,180,950

22,242,040

22,204,460

Accounts Receivable

875,647

636,238

711,889

802,066

755,777

Due from Affiliates

2,017,637

1,994,123

2,320,291

2,211,737

2,464,163

Intangible Assets, Net

366,368

468,507

450,757

433,007

415,257

Goodwill

1,778,192

1,869,860

Other Assets

269,470

294,248

302,033

354,253

402,670

Right-of-Use Assets

521,932

507,065

490,882

Deferred Tax Assets

711,599

739,482

728,873

743,132

938,158

Total Assets

30,460,357

28,924,650

29,874,951

30,972,213

32,385,771

Liabilities and Equity

Loans Payable

10,161,886

9,951,862

10,011,155

10,676,138

11,270,245

Due to Affiliates

981,980

1,035,776

1,045,452

1,081,899

984,969

Accrued Compensation and Benefits

3,414,215

2,942,128

3,001,597

3,308,595

3,623,258

Securities Sold, Not Yet Purchased

166,309

142,617

128,106

128,512

87,051

Repurchase Agreements

199,488

222,202

218,865

207,676

163,059

Operating Lease Liabilities

587,408

574,619

558,253

Accounts Payable, Accrued Expenses and Other Liabilities

829,496

875,979

735,667

929,688

1,069,475

Total Liabilities

15,753,374

15,170,564

15,728,250

16,907,127

17,756,310

Redeemable Non-Controlling Interests in Consolidated Entities

153,504

141,779

136,941

101,310

93,667

Equity

The Blackstone Group L.P. Partners’ Capital

7,024,079

6,415,700

6,501,072

6,335,897

Class A Common Stock, $0.00001 par value (666,257,305 shares issued and outstanding

as of September 30, 2019)

Class B Common Stock, $0.00001 par value (1 share issued and outstanding

as of September 30, 2019)

Class C Common Stock, $0.00001 par value (1 share issued and outstanding

as of September 30, 2019)

Additional Paid-in-Capital

6,292,765

Retained Earnings

456,814

Accumulated Other Comprehensive Loss

(36,562)

(36,476)

(32,430)

(27,542)

(35,173)

Non-Controlling Interests in Consolidated Entities

3,673,135

3,648,766

3,852,346

3,869,303

4,035,513

Non-Controlling Interests in Blackstone Holdings

3,892,827

3,584,317

3,688,772

3,786,118

3,785,868

Total Equity

14,553,479

13,612,307

14,009,760

13,963,776

14,535,794

Total Liabilities and Equity

30,460,357

28,924,650

29,874,951

30,972,213

32,385,771

Blackstone

Reconciliation of GAAP to Non-GAAP Balance Sheet Measures

(a)

This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.

(b)

Represents GAAP accrued performance revenue recorded within Due from Affiliates.

(c)

Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to

Affiliates.

(d)

This adjustment adds other assets related to Treasury Operations that are recorded within Accounts Receivable, reverse repurchase agreements and Due from Affiliates.

(e)

This adjustment adds other liabilities related to Treasury Operations that are recorded within Accounts Payable, Accrued Expenses and Other Liabilities, Repurchase Agreements

and securities sold short, not yet purchased.

(f)

This adjustment removes amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests and adds back investments

in consolidated Blackstone Funds which have been eliminated in consolidation.

(g)

This adjustment removes amounts related to consolidated Blackstone Funds.

(Dollars in Thousands)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

Investments of Consolidated Blackstone Funds

8,503,423

8,376,338

8,603,847

8,633,794

8,481,233

Equity Method Investments

Partnership Investments

3,690,841

3,649,423

3,815,993

3,802,565

3,864,453

Accrued Performance Allocations

6,722,430

5,883,924

6,486,450

6,743,542

7,003,889

Corporate Treasury Investments

2,883,610

2,206,493

2,005,174

2,797,908

2,588,529

Other Investments

294,616

260,853

269,486

264,231

266,356

Total GAAP Investments

22,094,920

20,377,031

21,180,950

22,242,040

22,204,460

Accrued Performance Allocations -

GAAP

6,722,430

5,883,924

6,486,450

6,743,542

7,003,889

Impact of Consolidation (a)

229

374

607

237

Due From Affiliates -

GAAP (b)

13,546

33,419

9,483

25,022

18,955

Less: Accrued Performance Compensation -

GAAP (c)

(2,700,828)

(2,394,747)

(2,638,374)

(2,724,998)

(2,851,817)

Net Accrued Performance Revenues

4,035,377

3,522,596

3,857,933

4,044,173

4,171,264

Corporate

Treasury

Investments

GAAP

2,883,610

2,206,493

2,005,174

2,797,908

2,588,529

Impact of Consolidation (a)

75,340

73,106

75,988

160,644

163,183

Other Assets (d)

586,527

438,454

519,884

425,823

440,982

Other Liabilities (e)

(91,406)

(205,332)

(101,605)

(91,016)

(80,086)

Corporate

Treasury

Investments

Deconsolidated

3,454,071

2,512,721

2,499,441

3,293,359

3,112,608

Partnership

and

Other

Investments

GAAP

3,985,457

3,910,276

4,085,479

4,066,796

4,130,809

Impact of Consolidation (f)

(1,991,871)

(2,015,417)

(2,095,717)

(2,209,825)

(2,289,139)

GP/Fund

Investments

Deconsolidated

1,993,586

1,894,859

1,989,762

1,856,971

1,841,670

Loans

Payable

GAAP

10,161,886

9,951,862

10,011,155

10,676,138

11,270,245

Impact of Consolidation (g)

(6,679,598)

(6,480,711)

(6,561,111)

(6,536,221)

(6,492,686)

Outstanding Bonds (Carrying Value)

3,482,288

3,471,151

3,450,044

4,139,917

4,777,559

Unamortized Discount/Premium

62,755

60,879

59,576

66,033

82,336

Outstanding

Bonds

(at

par)

Deconsolidated

3,545,043

3,532,030

3,509,620

4,205,950

4,859,895

Blackstone

QTD

YTD

LTM

(Dollars in Thousands)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

Management and Advisory Fees, Net

GAAP

780,009

797,554

809,726

840,378

878,151

2,230,242

2,528,255

2,659,862

2,959,301

3,325,809

Segment Adjustment (a)

(790)

641

4,336

3,778

2,194

8,015

10,308

14,429

11,348

10,949

Total Segment

779,219

798,195

814,062

844,156

880,345

2,238,257

2,538,563

2,674,291

2,970,649

3,336,758

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Incentive Fees

9,799

15,797

12,132

21,915

8,254

41,743

42,301

188,025

161,930

58,098

Investment Income - Realized Performance Allocations

592,103

511,388

242,375

332,520

446,550

1,365,119

1,021,445

2,582,430

2,787,381

1,532,833

GAAP

601,902

527,185

254,507

354,435

454,804

1,406,862

1,063,746

2,770,455

2,949,311

1,590,931

Total Segment

Less: Realized Performance Revenues

(572,159)

(483,697)

(246,769)

(341,386)

(420,840)

(1,328,074)

(1,008,995)

(2,625,683)

(2,824,872)

(1,492,692)

Segment Adjustment (b)

556

697

575

261

863

877

2,153

3,301

1,574

Total Segment

30,299

44,185

7,779

13,624

34,225

79,651

55,628

146,925

127,740

99,813

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation

419,285

373,790

471,397

438,521

462,766

1,236,167

1,372,684

1,382,348

1,600,651

1,746,474

Incentive Fees Compensation

7,251

10,260

5,406

8,886

5,419

23,656

19,711

89,199

67,106

29,971

Realized Performance Allocations Compensation

200,442

212,174

86,395

125,825

155,663

498,902

367,883

872,080

1,056,146

580,057

GAAP

626,978

596,224

563,198

573,232

623,848

1,758,725

1,760,278

2,343,627

2,723,903

2,356,502

Total Segment

Less: Realized Performance Compensation

(190,773)

(199,645)

(85,240)

(125,466)

(143,870)

(478,496)

(354,576)

(886,038)

(1,051,795)

(554,221)

Less: Equity-Based Compensation - Operating Compensation

(33,514)

(39,968)

(63,708)

(50,225)

(56,139)

(105,245)

(170,072)

(95,541)

(122,422)

(210,040)

Less: Equity-Based Compensation - Performance Compensation

(3,062)

(3,134)

(3,068)

(2,880)

(2,431)

(9,873)

(8,379)

(11,020)

(14,092)

(11,513)

Segment Adjustment (c)

(65,084)

(74,193)

(87,151)

(100,827)

(91,574)

(228,249)

(279,552)

(244,203)

(286,699)

(353,745)

Total Segment

334,545

279,284

324,031

293,834

329,834

936,862

947,699

1,106,825

1,248,895

1,226,983

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

GAAP

168,813

153,519

146,062

175,308

171,067

441,354

492,437

499,435

579,962

645,956

Segment Adjustment (d)

(40,068)

(23,494)

(22,751)

(33,187)

(26,716)

(83,051)

(82,654)

(70,876)

(105,710)

(106,148)

Total Segment

128,745

130,025

123,311

142,121

144,351

358,303

409,783

428,559

474,252

539,808

Realized Performance Revenues

GAAP

Incentive Fees

9,799

15,797

12,132

21,915

8,254

41,743

42,301

188,025

161,930

58,098

Investment Income - Realized Performance Allocations

592,103

511,388

242,375

332,520

446,550

1,365,119

1,021,445

2,582,430

2,787,381

1,532,833

GAAP

601,902

527,185

254,507

354,435

454,804

1,406,862

1,063,746

2,770,455

2,949,311

1,590,931

Total Segment

Less: Fee Related Performance Revenues

(30,299)

(44,185)

(7,779)

(13,624)

(34,225)

(79,651)

(55,628)

(146,925)

(127,740)

(99,813)

Segment Adjustment (b)

556

697

575

261

863

877

2,153

3,301

1,574

Total Segment

572,159

483,697

246,769

341,386

420,840

1,328,074

1,008,995

2,625,683

2,824,872

1,492,692

Reconciliation of GAAP to Total Segment Measures

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 Management and Advisory Fees, Net 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

Management

and

Advisory

Fees,

Net

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

amounts

associated

with

the

ownership

Blackstone

consolidated

operating

partnerships

held

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.

QTD

YTD

LTM

(Dollars in Thousands)

3Q'18

4Q'18

1Q'19

2Q'19

3Q'19

3Q'18

3Q'19

3Q'17

3Q'18

3Q'19

Realized Performance Compensation

GAAP

Incentive Fee Compensation

7,251

10,260

5,406

8,886

5,419

23,656

19,711

89,199

67,106

29,971

Realized Performance Allocations Compensation

200,442

212,174

86,395

125,825

155,663

498,902

367,883

872,080

1,056,146

580,057

GAAP

207,693

222,434

91,801

134,711

161,082

522,558

387,594

961,279

1,123,252

610,028

Total Segment

Less: Fee Related Performance Compensation

(13,858)

(19,655)

(3,493)

(6,365)

(14,781)

(34,189)

(24,639)

(64,221)

(57,365)

(44,294)

Less:

Equity-Based

Compensation

Performance

Compensation

(3,062)

(3,134)

(3,068)

(2,880)

(2,431)

(9,873)

(8,379)

(11,020)

(14,092)

(11,513)

Total Segment

190,773

199,645

85,240

125,466

143,870

478,496

354,576

886,038

1,051,795

554,221

Realized Principal Investment Income

GAAP

134,619

109,901

73,261

145,040

74,642

305,961

292,943

557,557

490,523

402,844

Segment Adjustment (e)

(68,999)

(62,803)

(47,353)

(21,483)

(38,494)

(117,001)

(107,330)

(97,922)

(229,338)

(170,133)

Total Segment

65,620

47,098

25,908

123,557

36,148

188,960

185,613

459,635

261,185

232,711

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

GAAP

Interest and Dividend Revenue

48,604

47,885

44,084

43,686

42,482

124,062

130,252

127,716

164,586

178,137

Interest Expense

(41,355)

(44,644)

(42,002)

(43,596)

(53,362)

(119,346)

(138,960)

(164,022)

(193,952)

(183,604)

GAAP

7,249

3,241

2,082

(10,880)

4,716

(8,708)

(36,306)

(29,366)

(5,467)

Segment Adjustment (f)

1,764

8,682

2,979

2,671

3,113

5,286

8,763

5,355

9,859

17,445

Total Segment

9,013

11,923

5,061

2,761

(7,767)

10,002

(30,951)

(19,507)

11,978

Blackstone

Definitions and Dividend 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).

Total Segment Revenues

and Segment Revenues

represent Net Management and Advisory Fees, Fee Related Performance Revenues, Realized Performance

Revenues and Realized Principal Investment Income.

•

Distributable

Earnings,

“DE”,

derived

from

Blackstone’s

segment

reported

results.

used

assess

performance

and

amounts

available

for

dividends

Blackstone shareholders, 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)

is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of

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

(a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Related Performance Compensation.

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.

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.

Blackstone

Definitions

and

Dividend

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 of

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.

Dividend Policy. Blackstone’s intention is to issue a dividend quarterly to common shareholders approximately 85% of The Blackstone Group Inc.’s share of

Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s board of directors 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

dividends

shareholders

for

any

ensuing

quarter. The

dividend

amount

could

also

be adjusted

upward

any

one

quarter.

All

the

foregoing

subject

the

qualification

that

the

declaration

and

payment

any

dividends

are

the

sole

discretion

of Blackstone’s board of directors and our board of directors may change our dividend policy at any time, including, without limitation, to eliminate such

dividends 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 our current views with respect to, among other things, our

operations, taxes, earnings and financial performance, share repurchases and dividends. 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. We

believe these factors include but are not limited to those described under the section entitled “Risk Factors” in our Annual Report on

Form 10-K for the year ended December 31, 2018 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, as

such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission

(“SEC”), 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 report and in our other periodic filings. The

forward-looking

statements

speak

only

the

date

this

report,

and

undertake

obligation

publicly

update

review

any

forward-looking statement, whether as a result of new information, future developments or otherwise.

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

Blackstone (BX) 8-KBlackstone Reports Third Quarter 2019 Results