Blackstone 8K Reports Second Quarter 2020 Results | BX 23 Jul 20

Exhibit 99.1

LOGO

Blackstone Reports Second Quarter 2020 Results

New York, July 23, 2020: Blackstone (NYSE:BX) today reported its second quarter 2020 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “It was a strong quarter for our firm despite the continued market volatility. Investment performance rebounded sharply, we continued to deploy capital in high conviction sectors and our limited partners entrusted us with another $20 billion of inflows across our expanding platform. We are very well positioned to navigate the road ahead with our long-term committed capital model and an industry-record $156 billion of dry powder.”

Blackstone issued a full detailed presentation of its second quarter 2020 results, which can be viewed at www.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $0.37 per share to record holders of Class A common stock at the close of business on August 3, 2020. This dividend will be paid on August 10, 2020.

Quarterly Investor Call Details

Blackstone will host its second quarter 2020 investor conference via public webcast on July 23, 2020 at 9:00 a.m. ET. To register, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1339494&tp_key=55ac978e77. For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Blackstone’s website at https://ir.blackstone.com/.

Blackstone

345 Park Avenue New York NY 10154

T 212 583 5000

www.blackstone.com

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 $564 billion in assets under management, include investment vehicles focused on private 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 at www.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 the impact of the novel coronavirus (“COVID-19”) and energy market dislocation, as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, 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

Weston Tucker

Blackstone

Tel: +1 (212) 583-5231

tucker@blackstone.com

Christine Anderson

Blackstone

Tel: +1 (212) 583-5182

christine.anderson@blackstone.com

Blackstone’s Second

Quarter 2020 Earnings

JULY 23, 2020

Blackstone |

BLACKSTONE’S SECOND QUARTER 2020 GAAP RESULTS

GAAP Net Income (Loss) was $1.4 billion for the quarter and $(1.3) billion year-to-date (“YTD”). GAAP Net Income

(Loss) Attributable to The Blackstone Group Inc. was $568 million for the quarter and $(498)

million

year-to-date.

Throughout this presentation, all current period amounts are preliminary. Totals may not add due to rounding. See pages 34-35, Definitions and Dividend

Policy, for definitions of terms used throughout this presentation. See additional notes on page 32.

($ in thousands, except per share data. unaudited)

2Q'19

2Q'20

2Q'19 YTD

2Q'20 YTD

2Q'19 LTM

2Q'20 LTM

Revenues

Management and Advisory Fees, Net

840,378

969,728

1,650,104

1,904,560

3,227,667

3,726,611

Incentive Fees

21,915

15,300

34,047

27,461

59,643

123,325

Investment Income (Loss)

Performance Allocations

Realized

332,520

101,910

574,895

269,440

1,678,386

1,433,545

Unrealized

157,732

1,067,923

821,731

(2,385,158)

314,664

(2,080,557)

Principal Investments

Realized

145,040

61,102

218,301

109,797

462,821

284,974

Unrealized

(37,345)

331,762

131,699

(627,603)

(33,626)

(544,299)

Total Investment Income (Loss)

597,947

1,562,697

1,746,626

(2,633,524)

2,422,245

(906,337)

Interest and Dividend Revenue

43,686

23,924

87,770

59,008

184,259

153,636

Other

(17,120)

(55,580)

(6,870)

82,600

49,421

169,463

Total Revenues

1,486,806

2,516,069

3,511,677

(559,895)

5,943,235

3,266,698

Expenses

Compensation and Benefits

Compensation

438,521

458,457

909,918

935,000

1,702,993

1,845,412

Incentive Fee Compensation

8,886

8,432

14,292

14,954

31,803

44,962

Performance Allocations Compensation

Realized

125,825

38,569

212,220

110,992

624,836

561,714

Unrealized

64,518

454,813

351,533

(942,565)

226,849

(753,813)

Total Compensation and Benefits

637,750

960,271

1,487,963

118,381

2,586,481

1,698,275

General, Administrative and Other

175,308

169,051

321,370

326,617

643,702

684,655

Interest Expense

43,596

39,276

85,598

80,920

171,597

194,970

Fund Expenses

5,586

4,083

8,473

8,688

14,352

17,953

Total Expenses

862,240

1,172,681

1,903,404

534,606

3,416,132

2,595,853

Other Income

Change in Tax Receivable Agreement Liability

(519)

161,048

Net Gains (Losses) from Fund Investment Activities

61,131

158,297

191,456

(169,077)

199,060

(77,704)

Income (Loss) Before Provision (Benefit) for Taxes

685,697

1,501,761

1,799,729

(1,264,097)

2,726,163

754,189

Provision (Benefit) for Taxes

38,736

147,415

79,891

(11,288)

136,055

(139,131)

Net Income (Loss)

646,961

1,354,346

1,719,838

(1,252,809)

2,590,108

893,320

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

Consolidated Entities

1,095

(3,426)

3,575

(18,895)

1,841

(22,591)

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

80,744

294,378

267,577

(350,699)

341,878

(141,497)

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

259,330

495,128

661,590

(384,989)

1,027,419

293,048

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

305,792

568,266

787,096

(498,226)

1,218,970

764,360

Net Income (Loss) Per Share of Class A Common Stock, Basic

0.45

0.81

1.17

(0.74)

1.80

1.12

Net Income (Loss) Per Share of Class A Common Stock, Diluted

0.45

0.81

1.16

(0.74)

1.79

1.12

Income (Loss) Before Provision (Benefit) for Taxes Margin

46.1%

59.7%

51.2%

225.8%

45.9%

23.1%

Blackstone |

BLACKSTONE’S SECOND QUARTER 2020 HIGHLIGHTS

Financial Measures

Fee

Earnings

(“FRE”)

$541

million

($0.45/share)

the

quarter,

28%

year-

over-year

–

FRE was $2.0 billion for the last twelve months (“LTM”)

($1.67/share), up 27% year-

over-year

Distributable Earnings (“DE”) of $548 million ($0.43/share) in the quarter

–

DE was $2.7 billion for the LTM ($2.19/share)

Net Accrued Performance Revenues of $2.7 billion ($2.25/share)

Capital Metrics

Total Assets Under Management (“AUM”) of $564.3 billion, up 3% year-over-year

–

Fee-Earning AUM of $435.8 billion, up 12% year-over-year

Inflows of $20.3 billion in the quarter and $93.9 billion for the LTM

Realizations of $7.4 billion in the quarter and $35.1 billion for the LTM

Deployment of $12.8 billion in the quarter and $61.1 billion for the LTM

Capital Returned

to Shareholders

Dividend of $0.37 per common share payable on August 10, 2020

–

Dividends of $1.86 per common share for the LTM

Repurchased 2.0 million common shares in the quarter and 11.2 million common shares

for the LTM

$590 million to be distributed to shareholders with respect to the second quarter

through dividends and share repurchases, and $2.9 billion for the LTM

Notes on page 32.

Blackstone |

BLACKSTONE’S SECOND QUARTER 2020 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 two quarters. See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.

% Change

($ in thousands, except per share data)

2Q'19

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Management and Advisory Fees, Net

844,156

976,733

16%

1,658,218

1,917,300

16%

Fee Related Performance Revenues

13,624

15,033

10%

21,403

27,499

28%

Fee Related Compensation

(293,834)

(306,904)

(617,865)

(653,168)

Other Operating Expenses

(142,121)

(143,583)

(265,432)

(282,468)

Fee Related Earnings

421,825

541,279

28%

796,324

1,009,163

27%

Realized Performance Revenues

341,386

102,177

(70)%

588,155

269,410

(54)%

Realized Performance Compensation

(125,466)

(37,787)

(70)%

(210,706)

(109,089)

(48)%

Realized Principal Investment Income

123,557

18,938

(85)%

149,465

39,228

(74)%

Net Realizations

339,477

83,328

(75)%

526,914

199,549

(62)%

Total Segment Distributable Earnings

761,302

624,607

(18)%

1,323,238

1,208,712

(9)%

Net Interest Income (Loss)

2,761

(12,634)

n/m

7,822

(16,575)

n/m

Taxes and Related Payables

(55,201)

(63,990)

16%

(84,240)

(87,043)

Distributable Earnings

708,862

547,983

(23)%

1,246,820

1,105,094

(11)%

Additional Metrics:

FRE per Share

0.35

0.45

29%

0.66

0.84

27%

DE per Common Share

0.57

0.43

(25)%

1.01

0.89

(12)%

Total Segment Revenues

1,322,723

1,112,881

(16)%

2,417,241

2,253,437

(7)%

Total Assets Under Management

545,482,337

564,330,088

545,482,337

564,330,088

Fee-Earning Assets Under Management

387,864,642

435,825,935

12%

387,864,642

435,825,935

12%

Blackstone |

SUMMARY OF FINANCIALS

LTM Fee Related Earnings of $1.67 per share, an increase of 27% year-over-year.

LTM Total Segment Distributable Earnings were $3.0 billion, an increase of 3% year-over-year.

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).

Fee Related Earnings per Share

Segment Distributable Earnings

($ in millions)

FRE/Share

FRE Margin

Private

Equity

Real

Estate

Hedge Fund

Solutions

Credit &

Insurance

2Q’20 LTM total:

$2,955

$1.31

$1.67

47.3%

50.5%

2Q'19 LTM

2Q'20 LTM

$1,539

$730

$434

$252

Blackstone |

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

Unrealized

appreciation

across

strategies

led

24%

increase

Net

Accrued

Performance

Revenues

$2.7

billion

($2.25/share) quarter-over-quarter.

Investment Performance

(appreciation / gross returns)

Net Accrued Performance Revenues

($ in millions)

Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Hedge Fund Solutions and Credit & Insurance.

BPS Composite net returns were 5.8% and (1.4)% for 2Q’20 and 2Q’20 LTM, respectively. Credit Composite net returns were 9.6% and (2.3)% for 2Q’20 and

2Q’20

LTM, respectively. See notes on pages 32-33 for additional details on investment performance.

$2,187

$2,708

$595

$74

1Q'20

Net

Performance

Revenues

Net

Realized

Distributions

2Q'20

2Q'20 LTM

Real Estate

Opportunistic

1.6%

0.6%

Core+

3.0%

4.7%

Private Equity

Corporate Private Equity

12.8%

(7.7)%

Tactical Opportunities

10.8%

1.9%

Secondaries

3.8%

20.8%

Hedge Fund Solutions

BPS Composite

6.0%

(0.6)%

Credit & Insurance

Credit Composite

10.1%

(2.1)%

Blackstone |

CAPITAL

METRICS

–

ADDITIONAL

DETAIL

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

($ in millions)

2Q'20

2Q'20 LTM

2Q'20

2Q'20 LTM

2Q'20

2Q'20 LTM

Real Estate

4,885

32,330

2,264

15,833

5,855

26,619

Opportunistic

516

4,936

1,215

10,143

4,078

14,610

Core+

1,457

15,735

698

3,287

1,421

10,600

BREDS

2,912

11,658

351

2,403

355

1,409

Private Equity

5,203

25,630

2,990

10,141

5,038

22,157

Corporate Private Equity

701

14,937

1,661

4,634

2,263

10,708

Tactical Opportunities

367

3,769

876

2,876

533

4,673

Secondaries

3,246

6,036

454

2,631

896

5,430

Infrastructure

888

1,346

Hedge Fund Solutions

3,324

12,432

517

1,445

877

2,854

Credit & Insurance

6,858

23,549

1,580

7,668

1,062

9,517

Total Blackstone

20,269

93,941

7,351

35,087

12,832

61,147

Inflows

Realizations

Capital Deployed

Inflows

were

$20.3

billion

the

quarter,

bringing

LTM

inflows

$93.9

billion.

Realizations were $7.4 billion in the quarter and $35.1 billion for the LTM.

Deployed $12.8 billion in the quarter and $61.1 billion for the LTM.

–

Committed an additional $2.8 billion during the quarter that is not yet deployed.

Blackstone |

ASSETS UNDER MANAGEMENT

Total AUM increased to $564.3 billion, up 3% year-over-year, with $20.3 billion of inflows in the quarter

and $93.9 billion for the LTM.

Fee-Earning AUM of $435.8 billion was up 12% year-over-year, with $15.6 billion of inflows in the quarter

and $111.7 billion for the LTM.

Perpetual Capital AUM reached $109.5 billion, up 19% year-over-year.

$139.3

$137.8

$81.4

$75.7

$171.2

$184.1

$153.6

$166.7

$545.5

$564.3

2Q'19

2Q'20

$104.5

$102.1

$74.7

$70.2

$96.5

$129.3

$112.3

$134.3

$387.9

$435.8

2Q'19

2Q'20

$27.8

$30.4

$5.2

$6.7

$14.3

$15.1

$44.5

$57.3

$91.7

$109.5

2Q'19

2Q'20

Total AUM

($ in billions)

Fee-Earning AUM

($ in billions)

Perpetual Capital AUM

($ in billions)

Private Equity

Real Estate

Hedge Fund Solutions

Credit & Insurance

Blackstone |

ADDITIONAL CAPITAL DETAIL

Invested Performance Eligible AUM reached $248.9 billion at quarter end, up 10% year-over-year.

Undrawn capital (“Total Dry Powder”) available for investment of $155.9 billion, driven by fundraising activity for

the latest flagship funds.

Private Equity

Real Estate

Hedge Fund Solutions

Credit & Insurance

Invested Performance Eligible AUM

($ in billions)

Total Dry Powder

($ in billions)

Private

Equity

Real

Estate

Hedge Fund

Solutions

Credit &

Insurance

2Q’20 total:

$155.9

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

$25.5

$24.7

$45.0

$43.9

$62.3

$72.0

$93.8

$108.2

$226.6

$248.9

2Q'19

2Q'20

$46.0

$76.4

$3.4

$30.0

Blackstone |

Segment Highlights

Blackstone |

REAL ESTATE

Total AUM:

Increased 9% to $166.7 billion with inflows of $4.9 billion in the quarter and $32.3

billion for the LTM.

–

Raised $2.1 billion in BREDS IV and $945 million in BREIT.

–

Fee-Earning AUM increased 20% to $134.3 billion with inflows of $3.6 billion in the quarter and $37.6 billion for

the LTM.

Realizations:

$2.3 billion in the quarter and $15.8 billion for the LTM; realizations in the quarter were primarily

driven by public sales in BREP, including the first secondary offering for Embassy India Office REIT.

Capital Deployed:

$5.9 billion in the quarter and $26.6 billion for the LTM; diverse investment activity in the

quarter was driven by the acquisition of a U.K. student housing portfolio, a Japanese residential portfolio and a

minority stake in a public Australian casino operator.

–

Committed an additional $650 million in the quarter that is not yet deployed; commitments in the quarter

included BPP’s partnership interest in a studio and Class A office portfolio in Hollywood, CA.

Appreciation:

Opportunistic funds and Core+ funds appreciated 1.6% and 3.0% in the quarter, respectively, reflecting

portfolio positioning and strong performance from sectors less impacted by COVID-19.

% Change

($ in thousands)

2Q'19

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Management Fees, Net

277,940

412,307

48%

561,816

798,428

42%

Fee Related Performance Revenues

11,072

6,505

(41)%

17,748

11,056

(38)%

Fee Related Compensation

(97,795)

(116,640)

19%

(212,611)

(236,936)

11%

Other Operating Expenses

(40,114)

(44,525)

11%

(79,100)

(85,001)

Fee Related Earnings

151,103

257,647

71%

287,853

487,547

69%

Realized Performance Revenues

198,573

34,209

(83)%

275,755

77,929

(72)%

Realized Performance Compensation

(67,742)

(12,547)

(81)%

(97,642)

(25,939)

(73)%

Realized Principal Investment Income

47,420

1,573

(97)%

45,289

8,873

(80)%

Net Realizations

178,251

23,235

(87)%

223,402

60,863

(73)%

Segment Distributable Earnings

329,354

280,882

(15)%

511,255

548,410

Segment Revenues

535,005

454,594

(15)%

900,608

896,286

(0)%

Total AUM

153,604,820

166,723,844

153,604,820

166,723,844

Fee-Earning AUM

112,287,094

134,260,348

20%

112,287,094

134,260,348

20%

Blackstone |

PRIVATE EQUITY

Total AUM:

Increased 8% to $184.1 billion with inflows of $5.2 billion in the quarter and $25.6 billion for the LTM.

–

Inflows in the quarter included a $2.8 billion close of the third infrastructure Secondaries’ fund, bringing total

commitments to $3.75 billion including a close subsequent to quarter end.

–

Fee-Earning AUM up 34% to $129.3 billion, driven by commencement of investment periods for BCP VIII, BEP III,

and BXLS V in the first quarter.

Realizations:

$3.0 billion in the quarter and $10.1 billion for the LTM.

Capital Deployed:

$5.0 billion in the quarter and $22.2 billion for the LTM across regions, including the acquisition

of HealthEdge in the quarter.

–

Committed an additional $1.1 billion that was not yet deployed in the quarter.

Appreciation:

Corporate Private Equity increased 12.8% in the quarter, driven by strong publics performance and

partial recovery in the private portfolio.

–

Tactical Opportunities increased 10.8% in the quarter; Secondaries’ appreciated 3.8% in the quarter.

Secondaries’ appreciation reflects a reporting lag of its underlying funds.

% Change

($ in thousands)

2Q'19

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Management and Advisory Fees, Net

278,976

269,560

(3)%

530,699

535,732

Fee Related Compensation

(105,107)

(92,825)

(12)%

(212,694)

(203,193)

(4)%

Other Operating Expenses

(40,429)

(44,827)

11%

(74,630)

(85,828)

15%

Fee Related Earnings

133,440

131,908

(1)%

243,375

246,711

Realized Performance Revenues

122,907

64,513

(48)%

279,506

176,589

(37)%

Realized Performance Compensation

(52,081)

(25,016)

(52)%

(102,637)

(79,659)

(22)%

Realized Principal Investment Income

42,906

17,416

(59)%

68,045

27,763

(59)%

Net Realizations

113,732

56,913

(50)%

244,914

124,693

(49)%

Segment Distributable Earnings

247,172

188,821

(24)%

488,289

371,404

(24)%

Segment Revenues

444,789

351,489

(21)%

878,250

740,084

(16)%

Total AUM

171,171,687

184,118,135

171,171,687

184,118,135

Fee-Earning AUM

96,467,272

129,284,112

34%

96,467,272

129,284,112

34%

Blackstone |

HEDGE FUND SOLUTIONS

Total AUM:

$75.7 billion with inflows of $3.3 billion in the quarter and $12.4

billion for the

LTM.

–

Total AUM growth in the quarter principally driven by record market appreciation of $3.8 billion across products,

offsetting net flows of $(1.3) billion.

–

July 1 subscriptions of $181 million are not yet included in Total AUM.

Returns:

BPS Composite gross return of 6.0% in the quarter (5.8% net), was highest quarterly gross return

since

2000.

–

Gross

returns

(3.1)%

year-to-date

((3.5)%

net)

line

with

the

S&P

500

Total

Return,

with

less

than

one

half

the

volatility.

% Change

($ in thousands)

2Q'19

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Management Fees, Net

137,713

146,318

275,359

286,690

Fee Related Compensation

(36,622)

(40,353)

10%

(79,576)

(86,544)

Other Operating Expenses

(21,112)

(17,807)

(16)%

(38,997)

(36,474)

(6)%

Fee Related Earnings

79,979

88,158

10%

156,786

163,672

Realized Performance Revenues

11,960

1,482

(88)%

16,051

3,249

(80)%

Realized Performance Compensation

(2,175)

(100)%

(3,588)

(945)

(74)%

Realized Principal Investment Income

12,306

(331)

n/m

12,023

(940)

n/m

Net Realizations

22,091

1,151

(95)%

24,486

1,364

(94)%

Segment Distributable Earnings

102,070

89,309

(13)%

181,272

165,036

(9)%

Segment Revenues

161,979

147,469

(9)%

303,433

288,999

(5)%

Total AUM

81,435,680

75,668,139

(7)%

81,435,680

75,668,139

(7)%

Fee-Earning AUM

74,653,420

70,200,141

(6)%

74,653,420

70,200,141

(6)%

Blackstone |

CREDIT & INSURANCE

Total AUM:

$137.8 billion with inflows of $6.9 billion in the quarter and $23.5

billion for the

LTM.

–

U.S. Direct Lending strategy had inflows of $1.6 billion in the quarter and priced a $400 million senior unsecured

notes offering for the BDC subsequent to quarter end, bringing total investable capital to $15.8 billion, inclusive

of anticipated leverage.

–

Launched 4 CLOs (2 U.S. and 2 European) in the quarter for $1.7 billion and priced 1 additional CLO for

$400

million.

–

Raised $795 million for the fourth mezzanine / opportunistic fund in the quarter and $450 million subsequent to

quarter end.

Realizations:

$1.6 billion in the quarter and $7.7 billion for the LTM.

Capital Deployed:

$1.1 billion in the quarter and $9.5 billion for the LTM; committed an additional $533 million in

the quarter that is not yet deployed.

Returns:

Gross Credit Composite return of 10.1% for the quarter, driven by broad recovery in public credit markets

and resilient performance across the private portfolio.

Credit Composite net return was 9.6% for 2Q’20.

% Change

($ in thousands)

2Q'19

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Management Fees, Net

149,527

148,548

(1)%

290,344

296,450

Fee Related Performance Revenues

2,552

8,528

234%

3,655

16,443

350%

Fee Related Compensation

(54,310)

(57,086)

(112,984)

(126,495)

12%

Other Operating Expenses

(40,466)

(36,424)

(10)%

(72,705)

(75,165)

Fee Related Earnings

57,303

63,566

11%

108,310

111,233

Realized Performance Revenues

7,946

1,973

(75)%

16,843

11,643

(31)%

Realized Performance Compensation

(3,468)

(224)

(94)%

(6,839)

(2,546)

(63)%

Realized Principal Investment Income

20,925

280

(99)%

24,108

3,532

(85)%

Net Realizations

25,403

2,029

(92)%

34,112

12,629

(63)%

Segment Distributable Earnings

82,706

65,595

(21)%

142,422

123,862

(13)%

Segment Revenues

180,950

159,329

(12)%

334,950

328,068

(2)%

Total AUM

139,270,150

137,819,970

(1)%

139,270,150

137,819,970

(1)%

Fee-Earning AUM

104,456,856

102,081,334

(2)%

104,456,856

102,081,334

(2)%

Blackstone |

Supplemental Details

Blackstone |

TOTAL SEGMENTS

($ in thousands)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19 YTD

2Q'20 YTD

Base Management Fees

805,315

809,729

873,368

910,396

941,794

1,562,833

1,852,190

Transaction, Advisory and Other Fees, Net

61,495

92,702

95,073

50,665

48,292

126,645

98,957

Management Fee Offsets

(22,654)

(22,086)

(22,768)

(20,494)

(13,353)

(31,260)

(33,847)

Total Management and Advisory Fees, Net

844,156

880,345

945,673

940,567

976,733

1,658,218

1,917,300

Fee Related Performance Revenues

13,624

34,225

156,373

12,466

15,033

21,403

27,499

Fee Related Compensation

(293,834)

(329,834)

(388,879)

(346,264)

(306,904)

(617,865)

(653,168)

Other Operating Expenses

(142,121)

(144,351)

(161,359)

(138,885)

(143,583)

(265,432)

(282,468)

Fee Related Earnings

421,825

440,385

551,808

467,884

541,279

796,324

1,009,163

Realized Performance Revenues

341,386

420,840

651,647

167,233

102,177

588,155

269,410

Realized Performance Compensation

(125,466)

(143,870)

(249,359)

(71,302)

(37,787)

(210,706)

(109,089)

Realized Principal Investment Income

123,557

36,148

38,542

20,290

18,938

149,465

39,228

Total Net Realizations

339,477

313,118

440,830

116,221

83,328

526,914

199,549

Total Segment Distributable Earnings

761,302

753,503

992,638

584,105

624,607

1,323,238

1,208,712

Net Interest Income (Loss)

2,761

(7,767)

(2,496)

(3,941)

(12,634)

7,822

(16,575)

Taxes and Related Payables

(55,201)

(35,815)

(76,104)

(23,053)

(63,990)

(84,240)

(87,043)

Distributable Earnings

708,862

709,921

914,038

557,111

547,983

1,246,820

1,105,094

Additional Metrics:

Total Segment Revenues

1,322,723

1,371,558

1,792,235

1,140,556

1,112,881

2,417,241

2,253,437

Total Assets Under Management

545,482,337

554,022,343

571,122,463

538,007,285

564,330,088

545,482,337

564,330,088

Fee-Earning Assets Under Management

387,864,642

394,138,443

408,074,852

423,055,037

435,825,935

387,864,642

435,825,935

Blackstone |

Total AUM Rollforward

($ in millions)

Fee-Earning AUM Rollforward

($ 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.

Three Months Ended June 30, 2020

Twelve Months Ended June 30, 2020

Real

Private

Hedge Fund

Credit &

Real

Private

Hedge Fund

Credit &

Estate

Equity

Solutions

Insurance

Estate

Equity

Solutions

Insurance

Beginning Balance

160,935

174,696

73,721

128,656

538,007

153,605

171,172

81,436

139,270

545,482

Inflows

4,885

5,203

3,324

6,858

20,269

32,330

25,630

12,432

23,549

93,941

Outflows

(714)

(669)

(4,619)

(2,347)

(8,348)

(2,422)

(1,711)

(14,711)

(9,921)

(28,765)

Net Flows

4,171

4,534

(1,295)

4,511

11,921

29,908

23,919

(2,280)

13,628

65,175

Realizations

(2,264)

(2,990)

(517)

(1,580)

(7,351)

(15,833)

(10,141)

(1,445)

(7,668)

(35,087)

Market Activity

3,882

7,879

3,759

6,233

21,753

(956)

(832)

(2,043)

(7,411)

(11,241)

Ending Balance

166,724

184,118

75,668

137,820

564,330

166,724

184,118

75,668

137,820

564,330

% Change

(7)%

(1)%

Total

Three Months Ended June 30, 2020

Twelve Months Ended June 30, 2020

Real

Private

Hedge Fund

Credit &

Real

Private

Hedge Fund

Credit &

Estate

Equity

Solutions

Insurance

Estate

Equity

Solutions

Insurance

Beginning Balance

130,424

128,301

68,214

96,115

423,055

112,287

96,467

74,653

104,457

387,865

Inflows

3,573

3,981

3,481

4,552

15,586

37,562

44,181

12,123

17,843

111,709

Outflows

(730)

(1,946)

(4,548)

(2,081)

(9,305)

(5,595)

(6,738)

(13,118)

(8,415)

(33,866)

Net Flows

2,843

2,035

(1,068)

2,471

6,282

31,967

37,443

(995)

9,428

77,844

Realizations

(998)

(1,118)

(512)

(1,078)

(3,707)

(10,461)

(4,592)

(1,360)

(5,969)

(22,382)

Market Activity

1,992

3,566

4,573

10,196

467

(35)

(2,098)

(5,835)

(7,501)

Ending Balance

134,260

129,284

70,200

102,081

435,826

134,260

129,284

70,200

102,081

435,826

% Change

20%

34%

(6)%

(2)%

12%

Total

ASSETS UNDER MANAGEMENT - ROLLFORWARD

Blackstone |

$8.88

$7.51

2Q'19

2Q'20

DECONSOLIDATED BALANCE SHEET HIGHLIGHTS

At June 30, 2020, Blackstone had $4.5 billion in total cash, cash equivalents, and corporate treasury investments

and $9.0

billion of cash and net investments, or $7.51 per share.

Blackstone has a $1.6 billion undrawn credit revolver and maintains A+/A+ ratings.

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

Hedge Fund Solutions, and Credit & Insurance, which were $768 million, $676 million, $107 million, and $241 million, respectively, as of June 30, 2020.

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

$1.6B

undrawn credit revolver

with September 2023 maturity

$4.5B

total cash

and corporate treasury

Cash and Net Investments

(per share)

($ in millions)

2Q'20

Cash and Cash Equivalents

1,977

Corporate Treasury

Investments

2,550

GP/Fund Investments

1,792

Net Accrued Performance

Revenues

2,708

Cash and Net Investments

9,026

Outstanding Bonds (at par)

4,685

Blackstone |

2Q’20 QoQ

Rollforward

($ in millions)

2Q’20 LTM Rollforward

($ in millions)

Net Accrued Performance Revenues (“NAPR”) are presented net of performance compensation and do not include clawback amounts, if any, which are disclosed

in the 10-K/Q. See additional notes on page 33.

1Q'20

Net

Performance

Revenues

Net

Realized

Distributions

2Q'20

Real Estate

1,446

(25)

1,441

Private Equity

720

520

(42)

1,199

HFS

(1)

Credit &

Insurance

(6)

Total

2,187

595

(74)

2,708

QoQ Change

24%

2Q'19

Net

Performance

Revenues

Net

Realized

Distributions

2Q'20

Real Estate

2,093

(655)

1,441

Private Equity

1,573

(169)

(205)

1,199

HFS

(92)

Credit &

Insurance

242

(151)

(49)

Total

3,973

(264)

(1,001)

2,708

YoY Change

(32)%

NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL

($ in millions, except per share data)

2Q'19

1Q'20

2Q'20

Per Share

Real Estate

BREP IV

0.01

BREP V

0.00

BREP VI

0.04

BREP VII

536

309

238

0.20

BREP VIII

517

604

0.50

BREP IX

0.00

BREP International II

BREP Europe IV

209

123

105

0.09

BREP Europe V

161

110

0.08

BREP Asia I

154

0.07

BPP

240

196

225

0.19

BREIT

BREDS

0.00

BTAS

0.02

Real Estate

2,093

1,446

1,441

1.20

Private Equity

BCP IV

0.02

BCP VI

755

283

521

0.43

BCP VII

293

115

307

0.26

BCP Asia

0.02

BEP I

134

0.05

BEP II

BEP III

0.00

BCEP

0.04

Tactical Opportunities

128

0.05

Secondaries

136

155

0.13

Life Sciences

0.01

BTAS/Other

0.01

Private Equity

1,573

720

1,199

1.00

Hedge Fund Solutions

0.02

Credit & Insurance

242

0.03

Net Accrued Performance Revenues

3,973

2,187

2,708

2.25

Blackstone |

($ 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)

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

28,986

0.0x

4,544,926

2.2x

4,573,912

1.7x

28%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

161,954

0.6x

13,047,811

2.4x

13,209,765

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

559,459

2.2x

27,131,368

2.5x

27,690,827

2.5x

13%

BREP VII (Aug 2011 / Apr 2015)

13,496,823

1,693,447

5,596,958

1.2x

22,816,881

2.1x

28,413,839

1.9x

22%

15%

BREP VIII (Apr 2015 / Jun 2019)

16,567,310

2,644,464

17,563,805

1.4x

7,132,698

1.7x

24,696,503

1.5x

26%

12%

*BREP IX (Jun 2019 / Dec 2024)

20,891,658

14,814,901

6,240,053

1.0x

983,331

1.4x

7,223,384

1.1x

n/m

Total Global BREP

72,996,816

19,152,812

$30,151,215

1.2x

83,191,933

2.2x

113,343,148

1.8x

18%

15%

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

n/a

1,373,170

€

2.1x

1,373,170

€

2.1x

23%

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

1,629,748

n/a

2,576,670

1.8x

2,576,670

1.8x

BREP Europe III (Jun 2008 / Sep 2013)

3,205,167

467,119

410,184

0.6x

5,737,320

2.5x

6,147,504

2.1x

20%

14%

BREP Europe IV (Sep 2013 / Dec 2016)

6,709,145

1,337,987

2,594,032

1.4x

8,988,619

2.0x

11,582,651

1.8x

23%

15%

BREP Europe V (Dec 2016 / Oct 2019)

7,949,959

1,595,473

7,454,498

1.2x

721,076

2.7x

8,175,574

1.3x

53%

*BREP Europe VI (Oct 2019 / Apr 2025)

9,794,768

7,638,299

2,121,888

1.0x

n/a

2,121,888

1.0x

n/m

Total BREP Europe

30,112,959

€

11,038,878

€

12,580,602

€

1.2x

19,396,855

€

2.1x

31,977,457

€

1.6x

16%

12%

BREP Asia I (Jun 2013 / Dec 2017)

5,096,753

1,728,257

3,139,012

1.3x

4,129,266

1.9x

7,268,278

1.6x

21%

11%

*BREP Asia II (Dec 2017 / Jun 2023)

7,302,307

4,416,827

3,054,983

1.1x

207,162

1.5x

3,262,145

1.1x

36%

BREP Co-Investment (f)

7,055,974

154,594

1,787,693

2.4x

13,289,404

2.1x

15,077,097

2.1x

15%

16%

Total BREP

126,131,248

37,853,566

52,536,503

1.2x

125,287,061

2.2x

177,823,564

1.8x

17%

15%

*Core+ BPP (Various) (g)

n/a

33,191,570

n/a

7,089,382

n/a

40,280,952

n/a

n/m

*Core+ BREIT (Various) (h)

n/a

17,384,357

n/a

465,068

n/a

17,849,425

n/a

*BREDS High-Yield (Various) (i)

18,600,464

8,894,151

3,013,387

1.0x

12,492,057

1.3x

15,505,444

1.2x

11%

10%

Private Equity

Corporate 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

��

11,891

n/a

2,953,649

1.4x

2,965,540

1.4x

BCP IV (Nov 2002 / Dec 2005)

6,773,182

195,824

161,183

2.2x

21,417,821

2.9x

21,579,004

2.9x

36%

BCP V (Dec 2005 / Jan 2011)

21,013,658

1,039,805

627,552

0.7x

37,166,512

1.9x

37,794,064

1.9x

BCP VI (Jan 2011 / May 2016)

15,202,400

1,239,853

9,921,527

1.4x

16,493,176

2.1x

26,414,703

1.8x

18%

11%

BCP VII (May 2016 / Feb 2020)

18,865,679

3,397,863

18,925,185

1.3x

1,685,595

1.8x

20,610,780

1.3x

47%

10%

*BCP VIII (Feb 2020 / Feb 2026)

24,985,447

n/a

Energy I (Aug 2011 / Feb 2015)

2,441,558

157,049

1,211,172

1.2x

2,744,604

1.9x

3,955,776

1.6x

17%

10%

Energy II (Feb 2015 / Feb 2020)

4,914,044

263,873

3,447,078

0.8x

332,436

2.0x

3,779,514

0.8x

58%

(15)%

*Energy III (Feb 2020 / Feb 2026)

4,227,166

4,087,226

127,103

1.8x

n/a

127,103

1.8x

n/a

n/m

*BCP Asia (Dec 2017 / Dec 2023)

2,394,966

1,393,730

1,241,822

1.3x

54,308

1.7x

1,296,130

1.3x

92%

14%

*Core Private Equity (Jan 2017 / Jan 2021) (j)

4,756,707

1,381,730

4,260,653

1.2x

418,053

1.6x

4,678,706

1.3x

36%

10%

Total Corporate Private Equity

113,899,740

38,166,975

39,935,166

1.2x

97,449,399

2.1x

137,384,565

1.7x

16%

14%

(a)

INVESTMENT RECORDS AS OF JUNE 30, 2020

Notes on page 21. BREP – Blackstone Real Estate Partners, BREIT – Blackstone Real Estate Income Trust, BPP – Blackstone Property Partners, BREDS – Blackstone

Real Estate Debt Strategies, BCP – Blackstone Capital Partners, BCOM – Blackstone Communications.

* Represents funds that are currently in their investment period and open ended funds.

Blackstone |

Notes on page 21. BXLS –

Blackstone Life Sciences.

* Represents funds that are currently in their investment period and open ended funds.

INVESTMENT

RECORDS

JUNE

30,

2020

(a)

–

(CONT’D)

($ 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)

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Private Equity (continued)

Tactical Opportunities

*Tactical Opportunities (Various)

22,555,525

8,618,210

9,886,307

1.0x

10,267,342

1.7x

20,153,649

1.3x

18%

*Tactical Opportunities Co-Investment and Other (Various)

8,515,156

2,201,908

5,435,077

1.3x

2,075,769

1.5x

7,510,846

1.4x

22%

14%

Total Tactical Opportunities

31,070,681

10,820,118

15,321,384

1.1x

12,343,111

1.7x

27,664,495

1.3x

19%

Strategic Partners (Secondaries)

Strategic Partners I-V (Various) (k)

11,865,053

1,696,017

933,357

n/m

16,866,422

n/m

17,799,779

1.5x

n/a

13%

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

4,362,750

1,201,160

1,423,216

n/m

3,244,976

n/m

4,668,192

1.5x

n/a

15%

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

7,489,970

2,511,941

5,499,667

n/m

1,812,567

n/m

7,312,234

1.5x

n/a

20%

Strategic Partners Real Assets II (May 2017 / Jun 2020) (k)

1,749,807

264,740

1,161,342

n/m

394,475

n/m

1,555,817

1.2x

n/a

16%

*Strategic Partners VIII (Mar 2019 / Jul 2023) (k)

10,763,600

5,469,228

3,418,251

n/m

188,363

n/m

3,606,614

1.4x

n/a

58%

*Strategic Partners Real Estate, SMA and Other (Various) (k)

7,678,402

2,963,642

2,742,203

n/m

1,354,601

n/m

4,096,804

1.3x

n/a

17%

*Strategic Partners Infra III (Jun 2020 / Jul 2024) (k)

3,240,000

2,941,474

n/a

Total Strategic Partners (Secondaries)

47,149,582

17,048,202

15,178,036

n/m

23,861,404

n/m

39,039,440

1.5x

n/a

14%

*Infrastructure (Various)

13,658,063

11,307,674

2,201,896

0.9x

n/a

2,201,896

0.9x

n/a

(11)%

Life Sciences

Clarus IV (Jan 2018 / Jan 2020)

910,000

440,014

570,869

1.4x

20,207

1.3x

591,076

1.4x

18%

*BXLS V (Jan 2020 / Jan 2025)

4,385,171

4,182,973

240,675

1.2x

n/a

240,675

1.2x

n/a

n/m

Credit (l)

Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)

2,000,000

97,114

15,554

0.8x

4,774,329

1.6x

4,789,883

1.6x

n/a

17%

Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)

4,120,000

1,033,255

884,201

0.6x

5,492,318

1.6x

6,376,519

1.3x

n/a

*Mezzanine / Opportunistic III (Sep 2016 / Sep 2021)

6,639,133

2,497,919

4,260,490

1.0x

2,202,749

1.6x

6,463,239

1.2x

n/a

Stressed / Distressed I (Sep 2009 / May 2013)

3,253,143

76,000

10,770

0.0x

5,772,930

1.6x

5,783,700

1.3x

n/a

Stressed / Distressed II (Jun 2013 / Jun 2018)

5,125,000

555,590

903,246

0.6x

4,376,500

1.2x

5,279,746

1.0x

n/a

(3)%

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

7,356,380

4,167,110

1,720,727

0.8x

1,217,223

1.4x

2,937,950

1.0x

n/a

(9)%

Energy I (Nov 2015 / Nov 2018)

2,856,867

1,072,376

1,409,774

0.9x

1,046,757

1.7x

2,456,531

1.1x

n/a

*Energy II (Feb 2019 / Feb 2024)

3,616,081

3,017,574

621,160

1.0x

176,873

1.4x

798,033

1.1x

n/a

12%

Euro

European Senior Debt I (Feb 2015 / Feb 2019)

1,964,689

€

305,089

€

1,661,274

€

1.0x

1,376,818

€

1.5x

3,038,092

€

1.1x

n/a

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

4,088,344

€

3,672,670

€

413,190

€

1.0x

101,399

€

1.5x

514,589

€

1.1x

n/a

n/m

Total Credit

41,872,262

16,984,573

12,155,856

0.8x

26,728,090

1.5x

38,883,946

1.2x

n/a

Blackstone |

n/m

Not

meaningful

generally

due

the

limited

time

since

initial

investment.

n/a

Not

applicable.

(a)

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 June 30, 2020 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. Committed Capital

and Available

Capital are not regularly reported to investors in our Core+ strategy and are not applicable in the context of these funds.

(h)

Unrealized Investment Value reflects BREIT’s net asset value as of June 30, 2020. Realized Investment Value represents BREIT’s cash distributions,

net of servicing fees. BREIT net return reflects a per share blended return, assuming BREIT had a single share class, reinvestment of all dividends

received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are

not

representative of the returns experienced by any particular investor or share class. Inception to date net returns are presented

on an annualized

basis

and

are

from

January

2017.

Committed

Capital

and

Available

Capital

are

not

regularly

reported

investors

our

Core+

strategy

and

are

not applicable in the context of this vehicle.

(i)

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

(j)

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

(k)

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 and therefore do not include the

impact of economic and market activities in the quarter in which such events occur.

(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.

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

INVESTMENT RECORDS AS OF JUNE 30, 2020 – NOTES

Blackstone |

SHAREHOLDER DIVIDENDS

Generated $0.43 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount

to $0.89 per common share.

Blackstone declared a quarterly dividend of $0.37 per common share to record holders as of August 3, 2020; payable

on August 10, 2020.

detailed

description

Blackstone’s

dividend

policy

and

the

definition

Distributable

Earnings

can

found

pages

34-35,

Definitions

and

Dividend

Policy.

See additional notes on page 33.

% Change

($ in thousands, except per share data)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

vs. 2Q'19

2Q'19 YTD

2Q'20 YTD

vs. 2Q'19 YTD

Distributable Earnings

708,862

709,921

914,038

557,111

547,983

(23)%

1,246,820

1,105,094

(11)%

Add: Other Payables Attributable

to Common Shareholders

39,673

24,578

63,796

9,200

45,673

15%

54,271

54,873

DE before Certain Payables

748,535

734,499

977,834

566,311

593,656

(21)%

1,301,091

1,159,967

(11)%

Percent to Common Shareholders

56%

57%

58%

56%

58%

DE before Certain Payables Attributable

to Common Shareholders

419,502

413,900

556,133

325,990

344,390

(18)%

730,334

670,380

(8)%

Less: Other Payables Attributable to

Common Shareholders

(39,673)

(24,578)

(63,796)

(9,200)

(45,673)

15%

(54,271)

(54,873)

DE Attributable to Common Shareholders

379,829

389,322

492,337

316,790

298,717

(21)%

676,063

615,507

(9)%

DE per Common Share

0.57

0.58

0.72

0.46

0.43

(25)%

$1.01

$0.89

(12)%

Less: Retained Capital per Common Share

(0.09)

(0.11)

(0.07)

(0.06)

(33)%

(0.16)

(0.13)

(19)%

Actual Dividend per Common Share

0.48

0.49

0.61

0.39

0.37

(23)%

0.85

0.76

(11)%

Record Date

Aug 3, 2020

Payable Date

Aug 10, 2020

Blackstone |

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

Participating Common Shares

669,561,793

675,640,119

680,457,424

687,869,905

697,597,036

Participating Partnership Units

525,165,724

523,338,040

515,973,657

507,101,000

504,912,855

Distributable Earnings Shares Outstanding

1,194,727,517

1,198,978,159

1,196,431,081

1,194,970,905

1,202,509,891

SHARE SUMMARY

Distributable Earnings Shares Outstanding as of quarter end of 1,203 million shares.

–

Repurchased 2.0 million common shares in the quarter and 11.2 million common shares for the LTM.

–

Available authorization remaining was $413 million at June 30, 2020.

Notes on page 33.

Blackstone |

Reconciliations and

Disclosures

Blackstone |

RECONCILIATION

GAAP

NON-GAAP

MEASURES

Notes on page 26-27.

QTD

YTD

LTM

($ in thousands)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

Net Income (Loss) Attributable to

The Blackstone Group Inc.

305,792

779,437

483,149

(1,066,492)

568,266

787,096

(498,226)

1,218,970

764,360

Net Income (Loss) Attributable to Non-

Controlling Interests in Blackstone Holdings

259,330

299,900

378,137

(880,117)

495,128

661,590

(384,989)

1,027,419

293,048

Net Income (Loss) Attributable to Non-

Controlling Interests in Consolidated Entities

80,744

88,406

120,796

(645,077)

294,378

267,577

(350,699)

341,878

(141,497)

Net Income (Loss) Attributable to Redeemable

Non-Controlling Interests in Consolidated

Entities

1,095

(8)

(3,688)

(15,469)

(3,426)

3,575

(18,895)

1,841

(22,591)

Net Income (Loss)

646,961

1,167,735

978,394

(2,607,155)

1,354,346

1,719,838

(1,252,809)

2,590,108

893,320

Provision (Benefit) for Taxes

38,736

(156,786)

28,943

(158,703)

147,415

79,891

(11,288)

136,055

(139,131)

Income (Loss) Before Provision (Benefit)

for Taxes

685,697

1,010,949

1,007,337

(2,765,858)

1,501,761

1,799,729

(1,264,097)

2,726,163

754,189

Transaction-Related Charges (a)

106,994

(82,547)

94,715

46,994

76,160

196,445

123,154

352,118

135,322

Amortization of Intangibles (b)

16,483

16,482

16,483

32,966

63,214

65,931

Impact of Consolidation (c)

(81,839)

(88,398)

(117,108)

660,546

(290,952)

(271,152)

369,594

(343,719)

164,088

Unrealized Performance Revenues (d)

(157,398)

(176,604)

(128,333)

3,453,446

(1,067,923)

(821,731)

2,385,523

(314,131)

2,080,586

Unrealized Performance Allocations

Compensation (e)

64,518

94,907

93,845

(1,397,378)

454,813

351,533

(942,565)

226,849

(753,813)

Unrealized Principal Investment (Income)

Loss (f)

56,353

5,219

(34,974)

616,610

(223,316)

(83,572)

393,294

48,383

363,539

Other Revenues (g)

20,150

(92,843)

6,435

(138,151)

55,606

6,961

(82,545)

(48,985)

(168,953)

Equity-Based Compensation (h)

53,105

58,570

51,743

87,472

89,341

119,881

176,813

199,559

287,126

Taxes and Related Payables (i)

(55,201)

(35,815)

(76,104)

(23,053)

(63,990)

(84,240)

(87,043)

(171,266)

(198,962)

Distributable Earnings

708,862

709,921

914,038

557,111

547,983

1,246,820

1,105,094

2,738,185

2,729,053

Taxes and Related Payables (i)

55,201

35,815

76,104

23,053

63,990

84,240

87,043

171,266

198,962

Net Interest (Income) Loss (j)

(2,761)

7,767

2,496

3,941

12,634

(7,822)

16,575

(28,758)

26,838

Total Segment Distributable Earnings

761,302

753,503

992,638

584,105

624,607

1,323,238

1,208,712

2,880,693

2,954,853

Realized Performance Revenues (k)

(341,386)

(420,840)

(651,647)

(167,233)

(102,177)

(588,155)

(269,410)

(1,644,011)

(1,341,897)

Realized Performance Compensation (l)

125,466

143,870

249,359

71,302

37,787

210,706

109,089

601,124

502,318

Realized Principal Investment Income (m)

(123,557)

(36,148)

(38,542)

(20,290)

(18,938)

(149,465)

(39,228)

(262,183)

(113,918)

Fee Related Earnings

421,825

440,385

551,808

467,884

541,279

796,324

1,009,163

1,575,623

2,001,356

Adjusted EBITDA Reconciliation

Distributable Earnings

708,862

709,921

914,038

557,111

547,983

1,246,820

1,105,094

2,738,185

2,729,053

Interest Expense (n)

43,230

52,815

57,351

41,540

38,924

84,868

80,464

167,583

190,630

Taxes and Related Payables (i)

55,201

35,815

76,104

23,053

63,990

84,240

87,043

171,266

198,962

Depreciation and Amortization

6,000

6,895

7,666

7,512

8,110

11,789

15,622

23,434

30,183

Adjusted EBITDA

813,293

805,446

1,055,159

629,216

659,007

1,427,717

1,288,223

3,100,468

3,148,828

Blackstone |

Note:

See pages 34-35, 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

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.

(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

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

GAAP Unrealized Performance Allocations

157,732

176,370

128,231

(3,453,081)

1,067,923

821,731

(2,385,158)

314,664

(2,080,557)

Segment Adjustment

(334)

234

102

(365)

(533)

(29)

Unrealized Performance Revenues

157,398

176,604

128,333

(3,453,446)

1,067,923

821,731

(2,385,523)

314,131

(2,080,586)

(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

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

GAAP Unrealized Principal Investment Income (Loss)

(37,345)

15,391

67,913

(959,365)

331,762

131,699

(627,603)

(33,626)

(544,299)

Segment Adjustment

(19,008)

(20,610)

(32,939)

342,755

(108,446)

(48,127)

234,309

(14,757)

180,760

Unrealized Principal Investment Income (Loss)

(56,353)

(5,219)

34,974

(616,610)

223,316

83,572

(393,294)

(48,383)

(363,539)

(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.

QTD

YTD

LTM

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

GAAP Other Revenue

(17,120)

93,273

(6,410)

138,180

(55,580)

(6,870)

82,600

49,421

169,463

Segment Adjustment

(3,030)

(430)

(25)

(29)

(26)

(91)

(55)

(436)

(510)

Other Revenues

(20,150)

92,843

(6,435)

138,151

(55,606)

(6,961)

82,545

48,985

168,953

(h)

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

RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES

Blackstone |

RECONCILIATION OF GAAP

TO NON-GAAP

MEASURES –

NOTES

(i)

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

(Benefit) 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.

(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.

(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.

QTD

YTD

LTM

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

Taxes

34,209

26,933

63,930

16,274

48,462

49,553

64,736

101,321

155,599

Related Payables

20,992

8,882

12,174

6,779

15,528

34,687

22,307

69,945

43,363

Taxes and Related Payables

55,201

35,815

76,104

23,053

63,990

84,240

87,043

171,266

198,962

QTD

YTD

LTM

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

GAAP Interest and Dividend Revenue

43,686

42,482

52,146

35,084

23,924

87,770

59,008

184,259

153,636

Segment Adjustment

2,305

2,566

2,709

2,515

2,366

4,920

4,881

12,082

10,156

Interest and Dividend Revenue

45,991

45,048

54,855

37,599

26,290

92,690

63,889

196,341

163,792

GAAP Interest Expense

43,596

53,362

60,688

41,644

39,276

85,598

80,920

171,597

194,970

Segment Adjustment

(366)

(547)

(3,337)

(104)

(352)

(730)

(456)

(4,014)

(4,340)

Interest Expense

43,230

52,815

57,351

41,540

38,924

84,868

80,464

167,583

190,630

Net Interest Income (Loss)

2,761

(7,767)

(2,496)

(3,941)

(12,634)

7,822

(16,575)

28,758

(26,838)

Reconciliation of GAAP Shares of Class A Common Stock Outstanding to Distributable Earnings Shares Outstanding

QTD

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

GAAP Shares of Class A Common Stock Outstanding

660,588,369

666,257,305

671,157,692

676,630,489

676,874,583

Unvested Participating Common Shares

8,973,424

9,382,814

9,299,732

11,239,416

20,722,453

Total Participating Common Shares

669,561,793

675,640,119

680,457,424

687,869,905

697,597,036

Participating Partnership Units

525,165,724

523,338,040

515,973,657

507,101,000

504,912,855

Distributable Earnings Shares Outstanding

1,194,727,517

1,198,978,159

1,196,431,081

1,194,970,905

1,202,509,891

Disclosure of Weighted-Average Shares of Class A Common Stock Outstanding

QTD

YTD

LTM

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

Total GAAP Weighted-Average Shares of Class A Common Stock

Outstanding - Basic

673,655,305

675,963,129

679,420,988

676,305,359

698,534,168

674,079,074

677,041,769

676,828,114

685,032,993

Weighted-Average Shares of Unvested Deferred Restricted

Class A Common Stock

330,639

256,629

274,520

123,340

269,196

257,322

262,625

Weighted-Average Blackstone Holdings Partnership Units

505,754,449

526,244,006

524,831,943

Total GAAP Weighted-Average Shares of Class A Common

Stock Outstanding - Diluted

673,985,944

676,219,758

679,695,508

676,305,359

1,204,411,957

1,200,592,276

677,041,769

1,201,917,379

685,295,618

Blackstone |

BLACKSTONE’S

SECOND

QUARTER

2020

GAAP

BALANCE

SHEET

RESULTS

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

($ in thousands) (Unaudited)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

Assets

Cash and Cash Equivalents

1,484,444

2,468,563

2,172,441

2,068,326

1,976,512

Cash Held by Blackstone Funds and Other

324,609

375,981

351,210

318,003

343,201

Investments

22,242,040

22,204,460

22,281,682

16,430,701

18,973,373

Accounts Receivable

802,066

755,777

975,075

696,729

498,600

Due from Affiliates

2,211,737

2,464,163

2,594,873

2,706,112

2,431,512

Intangible Assets, Net

433,007

415,257

397,508

379,758

362,008

Goodwill

1,869,860

Other Assets

354,253

402,670

382,493

541,896

501,351

Right-of-Use Assets

507,065

490,882

471,059

542,757

568,663

Deferred Tax Assets

743,132

938,158

1,089,305

1,392,352

1,319,301

Total Assets

30,972,213

32,385,771

32,585,506

26,946,494

28,844,381

Liabilities and Equity

Loans Payable

10,676,138

11,270,245

11,080,723

10,392,903

10,839,568

Due to Affiliates

1,081,899

984,969

1,026,871

1,247,098

1,268,571

Accrued Compensation and Benefits

3,308,595

3,623,258

3,796,044

1,965,237

2,551,056

Securities Sold, Not Yet Purchased

128,512

87,051

75,545

51,498

51,395

Repurchase Agreements

207,676

163,059

154,118

105,133

80,620

Operating Lease Liabilities

574,619

558,253

542,994

605,809

637,946

Accounts Payable, Accrued Expenses and Other Liabilities

929,688

1,069,475

806,159

1,000,708

919,195

Total Liabilities

16,907,127

17,756,310

17,482,454

15,368,386

16,348,351

Redeemable Non-Controlling Interests in Consolidated Entities

101,310

93,667

87,651

72,066

68,564

Equity

The Blackstone Group L.P. Partners’ Capital

6,335,897

Class A Common Stock, $0.00001 par value (676,874,583 shares

issued and outstanding as of June 30, 2020)

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

outstanding as of June 30, 2020)

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

outstanding as of June 30, 2020)

Additional Paid-in-Capital

6,292,765

6,428,647

6,298,093

6,272,040

Retained Earnings

456,814

609,625

(871,948)

(574,295)

Accumulated Other Comprehensive Loss

(27,542)

(35,173)

(28,495)

(41,533)

(36,758)

Non-Controlling Interests in Consolidated Entities

3,869,303

4,035,513

4,186,069

3,591,160

3,900,429

Non-Controlling Interests in Blackstone Holdings

3,786,118

3,785,868

3,819,548

2,530,263

2,866,043

Total Equity

13,963,776

14,535,794

15,015,401

11,506,042

12,427,466

Total Liabilities and Equity

30,972,213

32,385,771

32,585,506

26,946,494

28,844,381

Blackstone |

RECONCILIATION

GAAP

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 Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized.

(d)

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

and Due to Affiliates.

(e)

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

Affiliates.

(f)

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.

(g)

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.

(h)

This adjustment removes amounts related to consolidated Blackstone Funds.

($ in thousands)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

Investments of Consolidated Blackstone Funds

8,633,794

8,481,233

8,380,698

7,275,752

7,943,531

Equity Method Investments

Partnership Investments

3,802,565

3,864,453

4,035,675

3,553,538

3,873,346

Accrued Performance Allocations

6,743,542

7,003,889

7,180,449

3,761,585

4,715,510

Corporate Treasury Investments

2,797,908

2,588,529

2,419,587

1,653,950

2,205,843

Other Investments

264,231

266,356

265,273

185,876

235,143

Total GAAP Investments

22,242,040

22,204,460

22,281,682

16,430,701

18,973,373

Accrued Performance Allocations -

GAAP

6,743,542

7,003,889

7,180,449

3,761,585

4,715,510

Impact of Consolidation (a)

607

237

384

Due from Affiliates -

GAAP (b)

25,022

18,955

154,980

20,910

20,642

Less: Net Realized Performance Revenues (c)

(71,352)

(129,129)

(214,662)

(31,719)

(38,592)

Less: Accrued Performance Compensation -

GAAP (d)

(2,724,998)

(2,851,817)

(3,021,899)

(1,563,672)

(1,989,219)

Net Accrued Performance Revenues

3,972,821

4,042,135

4,099,252

2,187,123

2,708,360

Corporate Treasury Investments -

GAAP

2,797,908

2,588,529

2,419,587

1,653,950

2,205,843

Impact of Consolidation (a)

160,644

163,183

164,243

131,248

141,371

Other Assets (e)

425,823

440,982

602,707

374,064

271,615

Other Liabilities (f)

(91,016)

(80,086)

(74,898)

(46,635)

(69,326)

Corporate Treasury Investments -

Deconsolidated

3,293,359

3,112,608

3,111,639

2,112,627

2,549,503

Partnership and Other Investments -

GAAP

4,066,796

4,130,809

4,300,948

3,739,414

4,108,489

Impact of Consolidation (g)

(2,209,825)

(2,289,139)

(2,409,218)

(2,111,945)

(2,316,855)

GP/Fund Investments -

Deconsolidated

1,856,971

1,841,670

1,891,730

1,627,469

1,791,634

Loans Payable -

GAAP

10,676,138

11,270,245

11,080,723

10,392,903

10,839,568

Impact of Consolidation (h)

(6,536,221)

(6,492,686)

(6,479,867)

(5,817,702)

(6,232,787)

Outstanding Bonds -

Carrying Value

4,139,917

4,777,559

4,600,856

4,575,201

4,606,781

Unamortized Discount

66,033

82,336

81,094

79,449

78,319

Outstanding Bonds (at par) -

Deconsolidated

4,205,950

4,859,895

4,681,950

4,654,650

4,685,100

Blackstone |

QTD

YTD

LTM

($ in thousands)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

Management and Advisory Fees, Net

GAAP

840,378

878,151

943,900

934,832

969,728

1,650,104

1,904,560

3,227,667

3,726,611

Segment Adjustment (a)

3,778

2,194

1,773

5,735

7,005

8,114

12,740

7,965

16,707

Total Segment

844,156

880,345

945,673

940,567

976,733

1,658,218

1,917,300

3,235,632

3,743,318

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Incentive Fees

21,915

8,254

87,610

12,161

15,300

34,047

27,461

59,643

123,325

Investment Income -

Realized Performance Allocations

332,520

446,550

717,555

167,530

101,910

574,895

269,440

1,678,386

1,433,545

GAAP

354,435

454,804

805,165

179,691

117,210

608,942

296,901

1,738,029

1,556,870

Total Segment

Less: Realized Performance Revenues

(341,386)

(420,840)

(651,647)

(167,233)

(102,177)

(588,155)

(269,410)

(1,644,011)

(1,341,897)

Segment Adjustment (b)

575

261

2,855

616

1,869

3,124

Total Segment

13,624

34,225

156,373

12,466

15,033

21,403

27,499

95,887

218,097

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation

438,521

462,766

447,646

476,543

458,457

909,918

935,000

1,702,993

1,845,412

Incentive Fees Compensation

8,886

5,419

24,589

6,522

8,432

14,292

14,954

31,803

44,962

Realized Performance Allocations Compensation

125,825

155,663

295,059

72,423

38,569

212,220

110,992

624,836

561,714

GAAP

573,232

623,848

767,294

555,488

505,458

1,136,430

1,060,946

2,359,632

2,452,088

Total Segment

Less: Realized Performance Compensation

(125,466)

(143,870)

(249,359)

(71,302)

(37,787)

(210,706)

(109,089)

(601,124)

(502,318)

Less:

Equity-Based

Compensation

Operating

Compensation

(50,225)

(56,139)

(51,612)

(85,334)

(87,205)

(113,933)

(172,539)

(187,415)

(280,290)

Less:

Equity-Based

Compensation

Performance

Compensation

(2,880)

(2,431)

(131)

(2,138)

(2,136)

(5,948)

(4,274)

(12,144)

(6,836)

Segment Adjustment (c)

(100,827)

(91,574)

(77,313)

(50,450)

(71,426)

(187,978)

(121,876)

(327,255)

(290,763)

Total Segment

293,834

329,834

388,879

346,264

306,904

617,865

653,168

1,231,694

1,371,881

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

GAAP

175,308

171,067

186,971

157,566

169,051

321,370

326,617

643,702

684,655

Segment Adjustment (d)

(33,187)

(26,716)

(25,612)

(18,681)

(25,468)

(55,938)

(44,149)

(119,500)

(96,477)

Total Segment

142,121

144,351

161,359

138,885

143,583

265,432

282,468

524,202

588,178

Realized Performance Revenues

GAAP

Incentive Fees

21,915

8,254

87,610

12,161

15,300

34,047

27,461

59,643

123,325

Investment

Income

Realized

Performance

Allocations

332,520

446,550

717,555

167,530

101,910

574,895

269,440

1,678,386

1,433,545

GAAP

354,435

454,804

805,165

179,691

117,210

608,942

296,901

1,738,029

1,556,870

Total Segment

Less: Fee Related Performance Revenues

(13,624)

(34,225)

(156,373)

(12,466)

(15,033)

(21,403)

(27,499)

(95,887)

(218,097)

Segment Adjustment (b)

575

261

2,855

616

1,869

3,124

Total Segment

341,386

420,840

651,647

167,233

102,177

588,155

269,410

1,644,011

1,341,897

RECONCILIATION

GAAP

TOTAL

SEGMENTS

Blackstone |

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

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.

RECONCILIATION

GAAP

TOTAL

SEGMENTS

–

(CONT’D)

QTD

YTD

LTM

($ in thousands)

2Q'19

3Q'19

4Q'19

1Q'20

2Q'20

2Q'19

2Q'20

2Q'19

2Q'20

Realized Performance Compensation

GAAP

Incentive Fee Compensation

8,886

5,419

24,589

6,522

8,432

14,292

14,954

31,803

44,962

Realized Performance Allocations Compensation

125,825

155,663

295,059

72,423

38,569

212,220

110,992

624,836

561,714

GAAP

134,711

161,082

319,648

78,945

47,001

226,512

125,946

656,639

606,676

Total Segment

Less: Fee Related Performance Compensation

(6,365)

(14,781)

(70,158)

(5,505)

(7,078)

(9,858)

(12,583)

(43,371)

(97,522)

Less: Equity-Based Compensation -

Performance

Compensation

(2,880)

(2,431)

(131)

(2,138)

(2,136)

(5,948)

(4,274)

(12,144)

(6,836)

Total Segment

125,466

143,870

249,359

71,302

37,787

210,706

109,089

601,124

502,318

Realized Principal Investment Income

GAAP

145,040

74,642

100,535

48,695

61,102

218,301

109,797

462,821

284,974

Segment Adjustment (e)

(21,483)

(38,494)

(61,993)

(28,405)

(42,164)

(68,836)

(70,569)

(200,638)

(171,056)

Total Segment

123,557

36,148

38,542

20,290

18,938

149,465

39,228

262,183

113,918

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

GAAP

Interest and Dividend Revenue

43,686

42,482

52,146

35,084

23,924

87,770

59,008

184,259

153,636

Interest Expense

(43,596)

(53,362)

(60,688)

(41,644)

(39,276)

(85,598)

(80,920)

(171,597)

(194,970)

GAAP

(10,880)

(8,542)

(6,560)

(15,352)

2,172

(21,912)

12,662

(41,334)

Segment Adjustment (f)

2,671

3,113

6,046

2,619

2,718

5,650

5,337

16,096

14,496

Total Segment

2,761

(7,767)

(2,496)

(3,941)

(12,634)

7,822

(16,575)

28,758

(26,838)

Blackstone |

NOTES

Notes to page 1 -

Blackstone’s Second Quarter 2020 GAAP Results

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. Unless otherwise noted, references to

“common stock” and “common shares” refer to Class A common stock.

Income

(Loss)

Before

Provision

(Benefit)

for

Taxes

Margin

calculated

dividing

Income

(Loss)

Before

Provision

(Benefit)

for

Taxes

Total

Revenues.

Notes to page 2 -

Blackstone’s Second Quarter 2020 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.

See Notes to page 18 regarding Net Accrued Performance Revenue redefinition.

Notes to page 5 -

Investment Performance and Net Accrued Performance Revenues

Effective 1Q’20, the Credit segment was renamed Credit & Insurance; however, there was no change to the composition of the segment or

historical results.

Effective 1Q’20, Core+ appreciation was updated to include BREIT and represents a weighted average of BREIT’s per share appreciation and BPP

appreciation for the period. The returns are weighted based on the average of BREIT’s monthly net asset values and the average of BPP’s

quarterly

adjusted

beginning

period

market

values

for

the

period.

This

presentation

provides

holistic

view

Core+

including

BREIT

performance.

Effective

1Q’20,

Corporate

Private

Equity

appreciation

was

updated

include

Core

Private

Equity

appreciation.

This

presentation

provides

more holistic view of Corporate Private Equity by including Core Private Equity performance.

Results

for

the

Secondaries

business

(also

referred

Strategic

Partners)

are

reported

three

month

lag

from

the

Secondaries’

fund

financial statements, which generally report based on a three month lag from the underlying fund investments unless information is available on

a more timely basis. As a result, the appreciation presented herein does not include the impact of economic and market activity in the current

quarter. Current market activity is expected to affect reported results in upcoming quarters.

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), strategic capital (seeding and minority interests), strategic opportunities (co-invests), and advisory (non-

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

paying

assets

(net

returns

only)

are

also

excluded.

The

funds/accounts

that

comprise

the

BPS

Composite

are

not

managed

within

single

fund

account and are managed with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-

alone fund/account. The BPS Composite is not an investible product and, as such, the performance of the BPS Composite does not represent the

performance of an actual fund or account.

Blackstone |

NOTES –

(CONT’D)

Notes

page

Investment

Performance

and

Net

Accrued

Performance

Revenues

(Cont’d)

Effective 1Q’20, Credit returns are presented as a composite return instead of separate returns for performing credit and distressed. The Credit

Composite

now

also

includes

the

long

only

strategy.

The

Credit

Composite

return

weighted

average

(a)

the

return

based

the

combined

quarterly cash flows of performing credit and distressed fee-earning funds and (b) the weighted average quarterly return of all long only strategy

fee-earning funds. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included and

funds in liquidation are excluded. Credit returns exclude Blackstone Funds that were contributed to GSO as part of Blackstone’s acquisition of

GSO in March 2008.

Notes

page

–

Net

Accrued

Performance

Revenues

–

Additional

Detail

Effective

1Q’20,

NAPR

has

been

redefined

exclude

Performance

Revenues

realized

but

not

yet

distributed

the

reporting

date.

This

update aligns the presentation of DE and NAPR. All prior periods have been recast to reflect this definition.

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

Notes

page

–

Shareholder

Dividends

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

$42

million for 2Q’20 and $90 million for 2Q’20 YTD.

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.

Notes

page

–

Summary

Participating Common Shares and Participating Partnership Units include both issued and outstanding shares and unvested shares that participate

in dividends.

Blackstone |

DEFINITIONS AND DIVIDEND POLICY

Blackstone

discloses

the

following

operating

metrics

and

financial

measures

that

are

calculated

and

presented

the

basis

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 (Benefit) for Taxes.

–

Net

Realizations

presented

segment

basis

and

the

sum

Realized

Principal

Investment

Income

and

Realized

Performance

Revenues (which refers to 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

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 to 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 (Benefit) for

Taxes.

–

Net

Interest

Income

(Loss)

presented

segment

basis

and

equal

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

on Income (Loss) Before Provision (Benefit) 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

recurring

basis

and

not

subject

future

realization

events.

FRE

equals

management

and

advisory

fees

(net

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 (Benefit) for Taxes.

–

Fee

Compensation

presented

segment

basis

and

refers

the

compensation

expense,

excluding

Equity-Based

Compensation,

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

Blackstone |

–

Perpetual

Capital

refers

the

component

assets

under

management

with

indefinite

term,

that

not

liquidation,

and

for

which

there

requirement

return

capital

investors

through

redemption

requests

the

ordinary

course

business,

except

where

funded

new

capital

inflows.

Includes

co-investment

capital

with

investor

right

convert

into

Perpetual

Capital.

Adjusted

Earnings

Before

Interest,

Taxes

and

Depreciation

and

Amortization,

“Adjusted

EBITDA”,

supplemental

measure

used

assess

performance

derived

from

Blackstone’s

segment

results

and

may

used

assess

its

ability

service

its

borrowings.

Adjusted

EBITDA

represents

Distributable

Earnings

plus

the

addition

(a)

Interest

Expense

segment

basis,

(b)

Taxes

and

Payables,

and

(c)

Depreciation

and

Amortization.

Adjusted

EBITDA

derived

from

and

reconciled

to,

but

not

equivalent

to,

its

most

directly

comparable

GAAP

measure

Income

(Loss)

Before

Provision

(Benefit)

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

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.

Dividend

Policy.

Blackstone’s

intention

pay

holders

Class

common

stock

quarterly

dividend

representing

approximately

85%

The

Blackstone

Group

Inc.’s

Distributable

Earnings,

subject

adjustment

amounts

determined

Blackstone’s

board

directors

necessary

appropriate

provide

for

the

conduct

its

business,

make

appropriate

investments

its

business

and

funds,

comply

with

applicable

law,

any

its

debt

instruments

other

agreements,

provide

for

future

cash

requirements

such

tax-related

payments,

clawback

obligations

and

dividends

shareholders

for

any

ensuing

quarter.

The

dividend

amount

could

also

adjusted

upward

any

one

quarter.

All

the

foregoing

subject

the

qualification

that

the

declaration

and

payment

any

dividends

are

the

sole

discretion

Blackstone’s

board

directors

and

our

board

directors

may

change

our

dividend

policy

any

time,

including,

without

limitation,

eliminate

such

dividends

entirely.

DEFINITIONS AND DIVIDEND POLICY – (CONT’D)

Blackstone |

FORWARD-LOOKING STATEMENTS

This

presentation

may

contain

forward-looking

statements

within

the

meaning

Section

27A

the

Securities

Act

1933

and

Section

21E

the

Securities

Exchange

Act

1934

which

reflect

our

current

views

with

respect

to,

among

other

things,

our

operations,

taxes,

earnings

and

financial

performance,

repurchases

and

dividends.

You

can

identify

these

forward-looking

statements

the

use

words

such

“outlook,”

“indicator,”

“believes,”

“expects,”

“potential,”

“continues,”

“may,”

“will,”

“should,”

“seeks,”

“approximately,”

“predicts,”

“intends,”

“plans,”

“estimates,”

“anticipates”

the

negative

version

these

words

other

comparable

words.

Such

forward-looking

statements

are

subject

various

risks

and

uncertainties.

Accordingly,

there

are

will

important

factors

that

could

cause

actual

outcomes

results

differ

materially

from

those

indicated

these

statements.

believe

these

factors

include

but

are

not

limited

the

impact

COVID-19

and

energy

market

dislocation,

well

those

described

under

the

section

entitled

“Risk

Factors”

our

Annual

Report

Form

10-K

for

the

year

ended

December

31,

2019

and

our

Quarterly

Report

Form

10-Q

for

the

quarter

ended

March

31,

2020,

such

factors

may

updated

from

time

our

periodic

filings

with

the

United

States

Securities

and

Exchange

Commission

(“SEC”),

which

are

accessible

the

SEC’s

website

www.sec.gov.

These

factors

should

not

construed

exhaustive

and

should

read

conjunction

with

the

other

cautionary

statements

that

are

included

this

report

and

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

result

new

information,

future

developments

otherwise.

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

Blackstone (BX) 8-KBlackstone Reports Second Quarter 2020 Results