Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | BX | |
Entity Registrant Name | Blackstone Group Inc | |
Entity Central Index Key | 0001393818 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NYSE | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-33551 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-8875684 | |
Entity Address, Address Line One | 345 Park Avenue | |
Local Phone Number | 583-5000 | |
Entity Address, State or Province | NY | |
Entity Address, City or Town | New York | |
City Area Code | 212 | |
Entity Address, Postal Zip Code | 10154 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 671,050,687 | |
Common Class B [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1 | |
Common Class C [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and Cash Equivalents | $ 1,976,512 | $ 2,172,441 |
Cash Held by Blackstone Funds and Other | 343,201 | 351,210 |
Investments (including assets pledged of $122,971 and $196,094 at June 30, 2020 and December 31, 2019, respectively) | 18,973,373 | 22,281,682 |
Accounts Receivable | 498,600 | 975,075 |
Due from Affiliates | 2,431,512 | 2,594,873 |
Intangible Assets, Net | 362,008 | 397,508 |
Goodwill | 1,869,860 | 1,869,860 |
Other Assets | 501,351 | 382,493 |
Right-of-Use Assets | 568,663 | 471,059 |
Deferred Tax Assets | 1,319,301 | 1,089,305 |
Total Assets | 28,844,381 | 32,585,506 |
Liabilities and Equity | ||
Loans Payable | 10,839,568 | 11,080,723 |
Due to Affiliates | 1,268,571 | 1,026,871 |
Accrued Compensation and Benefits | 2,551,056 | 3,796,044 |
Securities Sold, Not Yet Purchased | 51,395 | 75,545 |
Repurchase Agreements | 80,620 | 154,118 |
Operating Lease Liabilities | 637,946 | 542,994 |
Accounts Payable, Accrued Expenses and Other Liabilities | 919,195 | 806,159 |
Total Liabilities | 16,348,351 | 17,482,454 |
Commitments and Contingencies | ||
Redeemable Non-Controlling Interests in Consolidated Entities | 68,564 | 87,651 |
Stockholders' Equity of The Blackstone Group Inc. | ||
Additional Paid-in-Capital | 6,272,040 | 6,428,647 |
Retained Earnings (Deficit) | (574,295) | 609,625 |
Accumulated Other Comprehensive Loss | (36,758) | (28,495) |
Total Stockholders' Equity of The Blackstone Group Inc. | 5,660,994 | 7,009,784 |
Non-Controlling Interests in Consolidated Entities | 3,900,429 | 4,186,069 |
Non-Controlling Interests in Blackstone Holdings | 2,866,043 | 3,819,548 |
Total Equity | 12,427,466 | 15,015,401 |
Total Liabilities and Equity | 28,844,381 | 32,585,506 |
Common Class A [Member] | ||
Stockholders' Equity of The Blackstone Group Inc. | ||
Common Stock, Value, Issued | 7 | 7 |
Common Class B [Member] | ||
Stockholders' Equity of The Blackstone Group Inc. | ||
Common Stock, Value, Issued | 0 | 0 |
Common Class C [Member] | ||
Stockholders' Equity of The Blackstone Group Inc. | ||
Common Stock, Value, Issued | $ 0 | $ 0 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Investments assets pledged | $ 122,971 | $ 196,094 |
Assets | 28,844,381 | 32,585,506 |
Liabilities | $ 16,348,351 | $ 17,482,454 |
Common Class A [Member] | ||
Common stock par value | $ 0.00001 | $ 0.00001 |
Common shares authorized | 90,000,000,000 | 90,000,000,000 |
Common shares issued | 676,874,583 | 671,157,692 |
Common shares outstanding | 676,874,583 | 671,157,692 |
Common Class B [Member] | ||
Common stock par value | $ 0.00001 | |
Common shares authorized | 999,999,000 | |
Common shares issued | 1 | |
Common shares outstanding | 1 | |
Common Class C [Member] | ||
Common stock par value | $ 0.00001 | |
Common shares authorized | 1,000 | |
Common shares issued | 1 | |
Common shares outstanding | 1 | |
Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | $ 8,463,952 | $ 8,952,541 |
Liabilities | 6,843,617 | 7,133,175 |
Consolidated Blackstone Funds | Repurchase Agreements | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 80,620 | 154,118 |
Consolidated Blackstone Funds | Loans Payable | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 6,232,787 | 6,479,867 |
Securities Sold, Not Yet Purchased | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 42,000 | 55,289 |
Investments | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 7,937,625 | 8,371,899 |
Accounts Receivable | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 175,554 | 220,372 |
Cash Held by Funds and Other | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 343,201 | 351,210 |
Due from Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 6,264 | 7,856 |
Other Assets | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Assets | 1,308 | 1,204 |
Due to Affiliates | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | 186,940 | 142,546 |
Accounts Payable, Accrued Expenses and Other Liabilities | Consolidated Blackstone Funds | Variable Interest Entity, Primary Beneficiary | ||
Liabilities | $ 301,270 | $ 301,355 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Performance Allocations | ||||
Realized | $ 101,910 | $ 332,520 | $ 269,440 | $ 574,895 |
Unrealized | 1,067,923 | 157,732 | (2,385,158) | 821,731 |
Principal Investments | ||||
Realized | 61,102 | 145,040 | 109,797 | 218,301 |
Unrealized | 331,762 | (37,345) | (627,603) | 131,699 |
Total Investment Income (Loss) | 1,562,697 | 597,947 | (2,633,524) | 1,746,626 |
Interest and Dividend Revenue | 23,924 | 43,686 | 59,008 | 87,770 |
Other | (55,580) | (17,120) | 82,600 | (6,870) |
Total Revenues | 2,516,069 | 1,486,806 | (559,895) | 3,511,677 |
Expenses | ||||
Compensation and Benefits Compensation | 458,457 | 438,521 | 935,000 | 909,918 |
Incentive Fee Compensation | 8,432 | 8,886 | 14,954 | 14,292 |
Performance Allocations Compensation | ||||
Realized | 38,569 | 125,825 | 110,992 | 212,220 |
Unrealized | 454,813 | 64,518 | (942,565) | 351,533 |
Total Compensation and Benefits | 960,271 | 637,750 | 118,381 | 1,487,963 |
General, Administrative and Other | 169,051 | 175,308 | 326,617 | 321,370 |
Interest Expense | 39,276 | 43,596 | 80,920 | 85,598 |
Fund Expenses | 4,083 | 5,586 | 8,688 | 8,473 |
Total Expenses | 1,172,681 | 862,240 | 534,606 | 1,903,404 |
Other Income (Loss) | ||||
Change in Tax Receivable Agreement Liability | 76 | (519) | ||
Net Gains (Losses) from Fund Investment Activities | 158,297 | 61,131 | (169,077) | 191,456 |
Total Other Income (Loss) | 158,373 | 61,131 | (169,596) | 191,456 |
Income (Loss) Before Provision (Benefit) for Taxes | 1,501,761 | 685,697 | (1,264,097) | 1,799,729 |
Provision (Benefit) for Taxes | 147,415 | 38,736 | (11,288) | 79,891 |
Net Income (Loss) | 1,354,346 | 646,961 | (1,252,809) | 1,719,838 |
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | (3,426) | 1,095 | (18,895) | 3,575 |
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities | 294,378 | 80,744 | (350,699) | 267,577 |
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings | 495,128 | 259,330 | (384,989) | 661,590 |
Net Income (Loss) Attributable to The Blackstone Group Inc. | $ 568,266 | $ 305,792 | $ (498,226) | $ 787,096 |
Net Income (Loss) Per Share of Class A Common Stock | ||||
Basic | $ 0.81 | $ 0.45 | $ (0.74) | $ 1.17 |
Diluted | $ 0.81 | $ 0.45 | $ (0.74) | $ 1.16 |
Weighted-Average Shares of Class A Common Stock Outstanding | ||||
Basic | 698,534,168 | 673,655,305 | 677,041,769 | 674,079,074 |
Diluted | 1,204,411,957 | 673,985,944 | 677,041,769 | 1,200,592,276 |
Management and Advisory Fees, Net | ||||
Revenues | ||||
Revenues | $ 969,728 | $ 840,378 | $ 1,904,560 | $ 1,650,104 |
Incentive Fees | ||||
Revenues | ||||
Revenues | $ 15,300 | $ 21,915 | $ 27,461 | $ 34,047 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Income (Loss) | $ 1,354,346 | $ 646,961 | $ (1,252,809) | $ 1,719,838 |
Other Comprehensive Income (Loss), Currency Translation Adjustment | 8,316 | 8,753 | (11,903) | 15,936 |
Comprehensive Income (Loss) | 1,362,662 | 655,714 | (1,264,712) | 1,735,774 |
Less: Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | (3,426) | 1,095 | (18,895) | 3,575 |
Comprehensive Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities | 294,378 | 80,744 | (350,699) | 267,577 |
Comprehensive Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings | 498,669 | 263,195 | (388,629) | 668,592 |
Comprehensive Income (Loss) Attributable to Non-Controlling Interests | 789,621 | 345,034 | (758,223) | 939,744 |
Comprehensive Income (Loss) Attributable to The Blackstone Group Inc. | $ 573,041 | $ 310,680 | $ (506,489) | $ 796,030 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Changes in Equity - USD ($) $ in Thousands | Total | Class A Common Stock | Common Units | Additional Paid-in Capital | [1] | Retained Earnings | [1] | Accumulated Other Comprehensive Income (Loss) | Parent | Noncontrolling InterestConsolidated Entities | Noncontrolling InterestBlackstone Holdings | ||||
Beginning Balance at Dec. 31, 2018 | $ 13,612,307 | $ 6,415,700 | $ (36,476) | $ 6,379,224 | $ 3,648,766 | $ 3,584,317 | |||||||||
Beginning Balance, Units at Dec. 31, 2018 | 663,212,830 | ||||||||||||||
Net Income (Loss) | 1,716,263 | $ 787,096 | 787,096 | 267,577 | 661,590 | ||||||||||
Currency Translation Adjustment | 15,936 | 8,934 | 8,934 | 7,002 | |||||||||||
Capital Contributions | 289,276 | 289,276 | |||||||||||||
Capital Distributions | (1,518,706) | (639,210) | (639,210) | (335,020) | (544,476) | ||||||||||
Transfer of Non-Controlling Interests in Consolidated Entities | (1,296) | (1,296) | |||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 5,016 | 5,016 | 5,016 | ||||||||||||
Equity-Based Compensation | 180,813 | 101,200 | 101,200 | 79,613 | |||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock | (10,619) | $ (10,613) | (10,613) | (6) | |||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock, Units | 1,853,730 | ||||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units | (325,214) | $ (325,214) | (325,214) | ||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units, Units | (8,100,000) | ||||||||||||||
Change in The Blackstone Group Inc.'s Ownership Interest | 23,270 | $ (23,270) | (23,270) | 23,270 | |||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock | $ 25,192 | 25,192 | (25,192) | ||||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock, Units | 3,621,809 | ||||||||||||||
Ending Balance at Jun. 30, 2019 | 13,963,776 | $ 6,335,897 | (27,542) | 6,308,355 | 3,869,303 | 3,786,118 | |||||||||
Ending Balance, Units at Jun. 30, 2019 | 660,588,369 | ||||||||||||||
Beginning Balance at Dec. 31, 2018 | 141,779 | ||||||||||||||
Net Income (Loss) | 3,575 | ||||||||||||||
Capital Distributions | (44,044) | ||||||||||||||
Ending Balance at Jun. 30, 2019 | 101,310 | ||||||||||||||
Beginning Balance at Mar. 31, 2019 | 14,009,760 | $ 6,501,072 | (32,430) | 6,468,642 | 3,852,346 | 3,688,772 | |||||||||
Beginning Balance, Units at Mar. 31, 2019 | 665,331,887 | ||||||||||||||
Net Income (Loss) | 645,866 | $ 305,792 | 305,792 | 80,744 | 259,330 | ||||||||||
Currency Translation Adjustment | 8,753 | 4,888 | 4,888 | 3,865 | |||||||||||
Capital Contributions | 129,771 | 129,771 | |||||||||||||
Capital Distributions | (646,899) | (248,947) | (248,947) | (193,522) | (204,430) | ||||||||||
Transfer of Non-Controlling Interests in Consolidated Entities | (36) | (36) | |||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 2,849 | 2,849 | 2,849 | ||||||||||||
Equity-Based Compensation | 88,142 | 49,341 | 49,341 | 38,801 | |||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock | (1,365) | $ (1,362) | (1,362) | (3) | |||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock, Units | 41,256 | ||||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units | (273,065) | $ (273,065) | (273,065) | ||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units, Units | (6,555,885) | ||||||||||||||
Change in The Blackstone Group Inc.'s Ownership Interest | $ (12,305) | (12,305) | 12,305 | ||||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock | $ 12,522 | 12,522 | (12,522) | ||||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock, Units | 1,771,111 | ||||||||||||||
Ending Balance at Jun. 30, 2019 | 13,963,776 | $ 6,335,897 | (27,542) | 6,308,355 | 3,869,303 | 3,786,118 | |||||||||
Ending Balance, Units at Jun. 30, 2019 | 660,588,369 | ||||||||||||||
Beginning Balance at Mar. 31, 2019 | 136,941 | ||||||||||||||
Net Income (Loss) | 1,095 | ||||||||||||||
Capital Distributions | (36,726) | ||||||||||||||
Ending Balance at Jun. 30, 2019 | 101,310 | ||||||||||||||
Beginning Balance at Dec. 31, 2019 | 15,015,401 | $ 7 | [1] | $ 6,428,647 | $ 609,625 | (28,495) | [1] | 7,009,784 | [1] | 4,186,069 | 3,819,548 | ||||
Beginning Balance, Units at Dec. 31, 2019 | [1] | 671,157,692 | |||||||||||||
Net Income (Loss) | (1,233,914) | (498,226) | (498,226) | [1] | (350,699) | (384,989) | |||||||||
Currency Translation Adjustment | (11,903) | (8,263) | [1] | (8,263) | [1] | (3,640) | |||||||||
Capital Contributions | 372,961 | 372,961 | |||||||||||||
Capital Distributions | (1,560,546) | (685,694) | (685,694) | [1] | (305,797) | (569,055) | |||||||||
Transfer of Non-Controlling Interests in Consolidated Entities | (2,105) | (2,105) | |||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 15,200 | 15,200 | 15,200 | [1] | |||||||||||
Equity-Based Compensation | 218,379 | 124,279 | 124,279 | [1] | 94,100 | ||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock | (17,646) | (17,639) | (17,639) | [1] | (7) | ||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock, Units | [1] | 1,740,156 | |||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units | (368,361) | (368,361) | (368,361) | [1] | |||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units, Units | [1] | (6,969,237) | |||||||||||||
Change in The Blackstone Group Inc.'s Ownership Interest | (13,785) | 13,785 | 13,785 | [1] | (13,785) | ||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock | 76,129 | 76,129 | [1] | (76,129) | |||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock, Units | [1] | 10,945,972 | |||||||||||||
Ending Balance at Jun. 30, 2020 | 12,427,466 | $ 7 | [1] | 6,272,040 | (574,295) | (36,758) | [1] | 5,660,994 | [1] | 3,900,429 | 2,866,043 | ||||
Ending Balance, Units at Jun. 30, 2020 | [1] | 676,874,583 | |||||||||||||
Beginning Balance at Dec. 31, 2019 | 87,651 | ||||||||||||||
Net Income (Loss) | (18,895) | ||||||||||||||
Capital Distributions | (192) | ||||||||||||||
Ending Balance at Jun. 30, 2020 | 68,564 | ||||||||||||||
Beginning Balance at Mar. 31, 2020 | 11,506,042 | $ 7 | [1] | 6,298,093 | (871,948) | (41,533) | [1] | 5,384,619 | [1] | 3,591,160 | 2,530,263 | ||||
Beginning Balance, Units at Mar. 31, 2020 | [1] | 676,630,489 | |||||||||||||
Net Income (Loss) | 1,357,772 | 568,266 | 568,266 | [1] | 294,378 | 495,128 | |||||||||
Currency Translation Adjustment | 8,316 | 4,775 | [1] | 4,775 | [1] | 3,541 | |||||||||
Capital Contributions | 170,282 | 170,282 | |||||||||||||
Capital Distributions | (629,492) | (270,613) | (270,613) | [1] | (155,525) | (203,354) | |||||||||
Transfer of Non-Controlling Interests in Consolidated Entities | 134 | 134 | |||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders | 2,806 | 2,806 | 2,806 | [1] | |||||||||||
Equity-Based Compensation | 128,897 | 73,455 | 73,455 | [1] | 55,442 | ||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock | (2,398) | (2,398) | (2,398) | [1] | 0 | ||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Class A Common Stock, Units | [1] | 56,662 | |||||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units | (114,893) | (114,893) | (114,893) | [1] | |||||||||||
Repurchase of Shares of Class A Common Stock and Blackstone Holdings Partnership Units, Units | [1] | (2,000,000) | |||||||||||||
Change in The Blackstone Group Inc.'s Ownership Interest | 4,006 | 4,006 | [1] | (4,006) | |||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock | 10,971 | 10,971 | [1] | (10,971) | |||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock, Units | [1] | 2,187,432 | |||||||||||||
Ending Balance at Jun. 30, 2020 | 12,427,466 | $ 7 | [1] | $ 6,272,040 | $ (574,295) | $ (36,758) | [1] | $ 5,660,994 | [1] | $ 3,900,429 | $ 2,866,043 | ||||
Ending Balance, Units at Jun. 30, 2020 | [1] | 676,874,583 | |||||||||||||
Beginning Balance at Mar. 31, 2020 | 72,066 | ||||||||||||||
Net Income (Loss) | (3,426) | ||||||||||||||
Capital Distributions | (76) | ||||||||||||||
Ending Balance at Jun. 30, 2020 | $ 68,564 | ||||||||||||||
[1] | Following the Conversion, Blackstone also has one share outstanding of each of Class B and Class C common stock, with par value of each less than one cent. After initial issuance, there have been no changes to the amounts related to Class B and Class C common stock during the period presented. |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Changes in Equity (Parenthetical) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Common Class B [Member] | ||
Conversion Of Stocks | one share outstanding | one share outstanding |
Common Class C [Member] | ||
Conversion Of Stocks | one share outstanding | one share outstanding |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net Income (Loss) | $ (1,252,809) | $ 1,719,838 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities Blackstone Funds Related | ||
Net Realized Gains on Investments | (261,870) | (817,759) |
Changes in Unrealized (Gains) Losses on Investments | 744,335 | (243,959) |
Non-Cash Performance Allocations | 2,385,158 | (821,731) |
Non-Cash Performance Allocations and Incentive Fee Compensation | (821,798) | 574,630 |
Equity-Based Compensation Expense | 238,721 | 223,979 |
Amortization of Intangibles | 35,500 | 35,500 |
Other Non-Cash Amounts Included in Net Income (Loss) | (175,677) | 2,332 |
Cash Flows Due to Changes in Operating Assets and Liabilities | ||
Accounts Receivable | 562,123 | (23,512) |
Due from Affiliates | 203,698 | (198,164) |
Other Assets | (120,679) | (37,961) |
Accrued Compensation and Benefits | (443,534) | (251,331) |
Securities Sold, Not Yet Purchased | (26,840) | (18,851) |
Accounts Payable, Accrued Expenses and Other Liabilities | (182,034) | (271,284) |
Repurchase Agreements | (73,498) | (14,526) |
Due to Affiliates | 85,380 | 19,638 |
Investments Purchased | (3,786,662) | (4,208,546) |
Cash Proceeds from Sale of Investments | 4,381,268 | 4,626,572 |
Net Cash Provided by Operating Activities | 1,490,782 | 294,865 |
Investing Activities | ||
Purchase of Furniture, Equipment and Leasehold Improvements | (25,453) | (33,524) |
Net Cash Used in Investing Activities | (25,453) | (33,524) |
Financing Activities | ||
Distributions to Non-Controlling Interest Holders in Consolidated Entities | (305,914) | (347,836) |
Contributions from Non-Controlling Interest Holders in Consolidated Entities | 355,599 | 288,119 |
Payments Under Tax Receivable Agreement | (73,881) | (84,640) |
Net Settlement of Vested Class A Common Stock and Repurchase of Class A Common Stock and Blackstone Holdings Partnership Units | (386,007) | (335,833) |
Proceeds from Loans Payable | 0 | 668,640 |
Repayment and Repurchase of Loans Payable | (1,896) | (1,886) |
Dividends/Distributions to Shareholders and Unitholders | (1,254,749) | (1,183,686) |
Net Cash Used in Financing Activities | (1,666,848) | (997,122) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | (2,419) | (327) |
Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | ||
Net Decrease | (203,938) | (736,108) |
Beginning of Period | 2,523,651 | 2,545,161 |
End of Period | 2,319,713 | 1,809,053 |
Supplemental Disclosure of Cash Flows Information | ||
Payments for Interest | 93,645 | 86,095 |
Payments for Income Taxes | 42,330 | 45,966 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Non-Cash Contributions from Non-Controlling Interest Holders | 16,033 | 233 |
Non-Cash Distributions to Non-Controlling Interest Holders | (75) | (31,228) |
Notes Issuance Costs | 5,409 | |
Transfer of Interests to Non-Controlling Interest Holders | (2,105) | (1,296) |
Change in The Blackstone Group Inc.'s Ownership Interest | 13,785 | (23,270) |
Net Settlement of Vested Class A Common Stock | 71,978 | 59,302 |
Conversion of Blackstone Holdings Units to Class A Common Stock | 76,129 | 25,192 |
Acquisition of Ownership Interests from Non-Controlling Interest Holders | ||
Deferred Tax Asset | (148,838) | (31,248) |
Due to Affiliates | 133,638 | 26,232 |
Equity | $ 15,200 | $ 5,016 |
Condensed Consolidated Statem_8
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents | $ 1,976,512 | $ 2,172,441 | ||
Cash Held by Blackstone Funds and Other | 343,201 | 351,210 | ||
Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | $ 2,319,713 | $ 2,523,651 | $ 1,809,053 | $ 2,545,161 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2020 | |
Organization | 1. Organization Effective July 1, 2019, The Blackstone Group L.P. (the “Partnership”) converted from a Delaware limited partnership to a Delaware corporation, The Blackstone Group Inc. (the “Conversion”). This report includes the results for the Partnership prior to the Conversion and The Blackstone Group Inc. following the Conversion. In this report, references to “Blackstone” or the “Company” refer to (a) The Blackstone Group Inc. and its consolidated subsidiaries following the Conversion and (b) the Partnership and its consolidated subsidiaries prior to the Conversion. All references to shares or per share amounts prior to the Conversion refer to units or per unit amounts. Unless otherwise noted, all references to shares or per share amounts following the Conversion refer to shares or per share amounts of Class A common stock. All references to dividends prior to the Conversion refer to distributions. As a result of the Conversion, the financial impact to the condensed consolidated financial statements contained herein consist of (a) a partial step-up Blackstone, together with its subsidiaries, is one of the world’s leading investment firms. Blackstone’s asset management business includes investment vehicles focused on real estate, private equity, public debt and equity, growth equity, life sciences, opportunistic, non-investment Effective January 1, 2020, the Credit segment was renamed Credit & Insurance. There was no change to the composition of the segment or historical results. Blackstone was formed on March 12, 2007, and, until the Conversion, was managed and operated by Blackstone Group Management L.L.C., which is in turn wholly owned by Blackstone’s senior managing directors and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”). Following the Conversion, the Company’s equity consists of shares of Class A, B and C common stock. Blackstone Partners L.L.C. is the sole holder of the single share of Class B common stock outstanding and Blackstone Group Management L.L.C. is the sole holder of the single share of Class C common stock outstanding. See Note 14. “Earnings Per Share and Stockholder’s Equity”. The activities of Blackstone are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings”, “Blackstone Holdings Partnerships” or the “Holding Partnerships”). Blackstone, through its wholly owned subsidiaries, is the sole general partner in each of these Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone Class A common stock, on a one-to-one |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q. condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. See “— COVID-19 Form 10-K The condensed consolidated financial statements include the accounts of Blackstone, its wholly owned or majority All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Condensed Consolidated Statements of Cash Flows. COVID-19 The ongoing COVID-19 non-essential COVID-19 Consolidation Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick-out non-controlling In addition, Blackstone consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone, affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Condensed Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. Revenue Recognition Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other. Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 18. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers. Management and Advisory Fees, Net Blackstone earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital. These customer contracts require Blackstone to provide investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid. Transaction, advisory and other fees are principally fees charged to the limited partners of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management services to the limited partners of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are based on the amount such limited partners reimburse the Blackstone Funds or Blackstone primarily for placement fees. Providing investment management services requires Blackstone to arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the limited partners of funds, it presents the cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the limited partners of the funds recorded as Management and Advisory Fees, Net. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract. Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the Consolidated Statements of Financial Condition and amortization is recorded within General, Administrative and Other within the Consolidated Statements of Operations. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Condensed Consolidated Statements of Financial Condition. Incentive Fees Investment Income (Loss) In carry fund structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its pro-rata “pro-rata pro-rata Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Condensed Consolidated Statements of Financial Condition. Performance Allocations are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, including certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive pro-rata Interest and Dividend Revenue Other Revenue Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: ● Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. ● Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter ● Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: ● Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. ● Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. ● Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Real Estate Investments – Private Equity Investments – derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Condensed Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures the liabilities of consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial result of this measurement alternative, there is no attribution of amounts to Non-Controlling non-consolidated Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. Equity Method Investments Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which include both a proportionate and disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Condensed Consolidated Statements of Financial Condition. Results for Strategic Partners are reported on a three month lag from the 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. Therefore, results presented herein do not include the impact of economic and market activity in the quarter in which such events occur. Economic and market activity for the periods presented is expected to affect reported results in upcoming periods. Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits — Incentive Fee Compensation — Compensation and Benefits — Performance Allocations Compensation — in-kind). Non-Controlling Non-Controlling non-controlling non-controlling Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling Net Income (Loss) Per Share of Class A Common Stock Basic Income (Loss) Per Share of Class A Common Stock is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group Inc. by the weighted-average number of Class A common stock, unvested participating shares of Class A common stock outstanding for the period and vested deferred restricted shares of Class A common stock that have been earned for which issuance of the related shares of Class A common stock is deferred until future periods. Diluted Income (Loss) Per Share of Class A Common Stock reflects the impact of all dilutive securities. Unvested participating shares of Class A common stock are excluded from the computation in periods of loss as they are not contractually obligated to share in losses. Blackstone applies the treasury stock method to determine the dilutive weighted-average common units outstanding for certain equity-based compensation awards. Blackstone applies the “if-converted” Reverse Repurchase and Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are discussed in Note 10. “Repurchase Agreements”. Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities”. Securities Sold, Not Yet Purchased Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. Securities Sold, Not Yet Purchased are recorded at fair value in the Condensed Consolidated Statements of Financial Condition. Derivative Instruments Blackstone recognizes all derivatives as assets or liabilities on its Condensed Consolidated Statements of Financial Condition at fair value. On the date Blackstone enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). Gains or losses on a derivative instrument that is designated as, and is effective as, an economic hedge of a net investment in a foreign operation are reported in the cumulative translation adjustment section of other comprehensive income to the extent it is effective as a hedge. The ineffective portion of a net investment hedge is recognized in current period earnings. Blackstone formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and Blackstone’s evaluation of effectiveness of its hedged transaction. At least monthly, Blackstone also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. For net investment hedges, Blackstone uses a method based on changes in spot rates to measure effectiveness. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The fair values of hedging derivative instruments are reflected within Other Assets in the Condensed Consolidated Statements of Financial Condition. For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains from Fund Investment Activities or, where derivative instruments are held by Blackstone, within Investment Income (Loss) in the Condensed Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition. Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Condensed Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. Blackstone’s disclosures regarding offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities”. Affiliates Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. Dividends Dividends are reflected in the condensed consolidated financial statements when declared. Recent Accounting Developments In June 2016, the FASB issued amended guidance on how to measure credit losses for most financial assets. The guidance was effective for Blackstone on January 1, 2020 and was adopted on a modified retrospective basis. The guidance requires entities to recognize their estimate of lifetime expected credit losses based on reasonable and supportable forecasts, current conditions, and historical experience. Adoption did not have a material impact on Blackstone’s condensed consolidated financial statements. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Intangible Assets | 3. Intangible Assets Intangible Assets, Net consists of the following: June 30, December 31, 2020 2019 Finite-Lived Intangible Assets/Contractual Rights $ 1,712,576 $ 1,712,576 Accumulated Amortization (1,350,568) (1,315,068) Intangible Assets, Net $ 362,008 $ 397,508 Amortization expense associated with Blackstone’s intangible assets was $17.7 million and $35.5 million for the three and six month periods ended June 30, 2020, respectively, and $17.7 million and $35.5 million for the three and six month periods ended June 30, 2019, respectively. Amortization of Intangible Assets held at June 30, 2020 is expected to be $71.0 million, $71.0 million, $63.3 million, $34.3 million, and $26.9 million for each of the years ending December 31, 2020, 2021, 2022, 2023 and 2024, respectively. Blackstone’s intangible assets as of June 30, 2020 are expected to amortize over a weighted-average period of 7.6 years. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2020 | |
Investments | 4. Investments Investments consist of the following: June 30, December 31, 2020 2019 Investments of Consolidated Blackstone Funds $ 7,943,531 $ 8,380,698 Equity Method Investments Partnership Investments 3,873,346 4,035,675 Accrued Performance Allocations 4,715,510 7,180,449 Corporate Treasury Investments 2,205,843 2,419,587 Other Investments 235,143 265,273 $ 18,973,373 $ 22,281,682 Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $245.1 million and $347.4 million at June 30, 2020 and December 31, 2019, respectively. Where appropriate, the accounting for Blackstone’s investments incorporates the changes in fair value of those investments as determined under GAAP. The decrease in Partnership Investments and Accrued Performance Allocations for the period ended June 30, 2020 was primarily from the unrealized depreciation in the fair value of underlying fund investments driven by the impact of COVID-19. See Note 2. “Summary of Significant Accounting Policies — COVID-19 Investments of Consolidated Blackstone Funds The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Gains (Losses) $ (61,698 ) $ 5,198 $ (134,972 ) $ 2,286 Net Change in Unrealized Gains (Losses) 216,552 6,257 (116,790 ) 112,260 Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 154,854 11,455 (251,762 ) 114,546 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 3,443 49,676 82,685 76,910 Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities $ 158,297 $ 61,131 $ (169,077 ) $ 191,456 Equity Method Investments Blackstone’s equity method investments include Partnership Investments, which represent the pro-rata non-controlling Blackstone evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission. As of and for the six months ended June 30, 2020 and 2019, no individual equity method investment held by Blackstone met the significance criteria. As such, Blackstone is not required to present separate financial statements for any of its equity method investments. Partnership Investments Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $247.8 million and $72.3 million for the three months ended June 30, 2020 and 2019, respectively. Blackstone recognized net gains (losses) related to its equity method investments of $(318.7) million and $227.7 million for the six months ended June 30, 2020 and 2019, respectively. Accrued Performance Allocations Accrued Performance Allocations to Blackstone were as follows: Real Private Hedge Fund Credit & Estate Equity Solutions Insurance Total Accrued Performance Allocations, December 31, 2019 $ 3,639,855 $ 3,063,149 $ 23,951 $ 453,494 $ 7,180,449 Performance Allocations as a Result (1,004,794 ) (710,814 ) 22,928 (348,197 ) (2,040,877 ) Foreign Exchange Loss (6,476 ) — — — (6,476 ) Fund Distributions (233,683 ) (157,281 ) (7,782 ) (18,840 ) (417,586 ) Accrued Performance Allocations, $ 2,394,902 $ 2,195,054 $ 39,097 $ 86,457 $ 4,715,510 Corporate Treasury Investments The portion of corporate treasury investments included in Investments represents Blackstone’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Realized Gains (Losses) $ (4,273 ) $ 22,983 $ (1,756 ) $ 23,300 Net Change in Unrealized Gains (Losses) 114,990 558 (143,397 ) 49,217 $ 110,717 $ 23,541 $ (145,153 ) $ 72,517 Other Investments Other Investments consist primarily of proprietary investment securities held by Blackstone. Other Investments include equity investments without readily determinable fair values which have a carrying value of $69.5 million as of June 30, 2020. The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Realized Gains $ 6,348 $ 21,491 $ 13,333 $ 45,727 Net Change in Unrealized Gains (Losses) 26,573 (3,933 ) (73,364 ) 6,789 $ 32,921 $ 17,558 $ (60,031 ) $ 52,516 |
Net Asset Value as Fair Value
Net Asset Value as Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Net Asset Value as Fair Value | 5. Net Asset Value as Fair Value A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of June 30, 2020 is presented below: Redemption Unfunded Frequency Redemption Strategy Fair Value Commitments (if currently eligible) Notice Period Diversified Instruments $ 218,522 $ — (a) (a) Credit Driven 64,518 — (b) (b) Equity 1,051 — (c) (c) Commodities 1,007 — (d) (d) $ 285,098 $ — (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 1% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 99% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 19% of the fair value of the investments in this category are in liquidation. The remaining 81% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category are in liquidation. As of the reporting date, the investee fund manager had elected to side-pocket 74% of Blackstone’s investments in the category. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Financial Instruments | 6. Derivative Financial Instruments Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its non-U.S. that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments. Freestanding Derivatives Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts. The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. June 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Fair Fair Fair Fair Notional Value Notional Value Notional Value Notional Value Freestanding Derivatives Blackstone Interest Rate Contracts $ 989,013 $ 168,122 $ 496,200 $ 43,216 $ 1,256,287 $ 53,129 $ 165,852 $ 4,895 Foreign Currency Contracts 387,286 5,755 51,647 577 344,422 1,231 97,626 802 Credit Default Swaps 2,706 535 9,158 2,009 7,617 36 16,697 197 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 25,643 173 68,313 2,243 106,906 307 40,110 1,167 Interest Rate Contracts — — 19,000 2,052 — — 33,000 1,728 Credit Default Swaps 13,722 1,889 35,850 2,098 5,108 58 47,405 960 Total Return Swaps — — 23,207 4,543 4,558 21 27,334 464 Other — — — — 1 4 1 2 $ 1,418,370 $ 176,474 $ 703,375 $ 56,738 $ 1,724,899 $ 54,786 $ 428,025 $ 10,215 The table below summarizes the impact to the Condensed Consolidated Statements of Operations from derivative financial instruments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ (2,613 ) $ (416 ) $ (7,914 ) $ (2,664 ) Foreign Currency Contracts 8,567 (1,526 ) (5,140 ) 146 Credit Default Swaps (13 ) 881 (112 ) 1,991 Total Return Swaps (782 ) (275 ) (1,531 ) (395 ) Other — (124 ) (38 ) (132 ) $ 5,159 $ (1,460 ) $ (14,735 ) $ (1,054 ) Net Change in Unrealized Gains (Losses) Interest Rate Contracts $ (27,963 ) $ (2,892 ) $ 80,335 $ (11,155 ) Foreign Currency Contracts (8,258 ) 1,773 3,587 209 Credit Default Swaps 18 (294 ) (1,371 ) 3,647 Total Return Swaps 877 393 (4,099 ) 1,371 Other — 115 36 65 $ (35,326 ) $ (905 ) $ 78,488 $ (5,863 ) As of June 30, 2020 and December 31, 2019, Blackstone had not designated any derivatives as cash flow hedges. |
Fair Value Option
Fair Value Option | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Option | 7. Fair Value Option The following table summarizes the financial instruments for which the fair value option has been elected: June 30, December 31, 2020 2019 Assets Loans and Receivables $ 162,368 $ 500,751 Equity and Preferred Securities 480,199 432,472 Debt Securities 471,158 506,924 Assets of Consolidated CLO Vehicles Corporate Loans 6,518,669 6,801,691 Other 313 770 $ 7,632,707 $ 8,242,608 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 6,232,695 $ 6,455,016 Due to Affiliates 78,719 57,717 Subordinated Notes Loans Payable — 24,738 Due to Affiliates 15,226 20,535 Corporate Treasury Commitments 2,030 — $ 6,328,670 $ 6,558,006 The following tables present the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Three Months Ended June 30, 2020 2019 Net Change Net Change Realized in Unrealized Realized in Unrealized Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Assets Loans and Receivables $ (2,249 ) $ 13,101 $ (747 ) $ (1,897 ) Equity and Preferred Securities — 59,612 9,907 (67 ) Debt Securities (9,487 ) 60,988 (3,325 ) 1,817 Assets of Consolidated CLO Vehicles Corporate Loans (52,293 ) 538,367 (10,549 ) (18,025 ) Other — — — 350 $ (64,029 ) $ 672,068 $ (4,714 ) $ (17,822 ) Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ (495,059 ) $ — $ 6,667 Subordinated Notes — 73,504 — 15,163 Corporate Treasury Commitments — (2,030 ) — — $ — $ (423,585 ) $ — $ 21,830 Six Months Ended June 30, 2020 2019 Net Change Net Change Realized in Unrealized Realized in Unrealized Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Assets Loans and Receivables $ (5,770 ) $ (268 ) $ (1,831 ) $ (2,657 ) Equity and Preferred Securities (342 ) (103,747 ) 9,908 22,298 Debt Securities (21,103 ) (9,129 ) (3,360 ) 16,749 Assets of Consolidated CLO Vehicles Corporate Loans (96,194 ) (226,542 ) (14,400 ) 161,777 Other — (325 ) — 350 $ (123,409 ) $ (340,011 ) $ (9,683 ) $ 198,517 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ 199,445 $ — $ (44,893 ) Subordinated Notes — 30,046 — (50,981 ) Corporate Treasury Commitments — (2,030 ) — — $ — $ 227,461 $ — $ (95,874 ) The following table presents information for those financial instruments for which the fair value option was elected: June 30, 2020 December 31, 2019 For Financial Assets For Financial Assets Past Due (a) Past Due (a) (Deficiency) (Deficiency) Excess Excess of Fair Value Fair of Fair Value of Fair Value Fair of Fair Value Over Principal Over Principal Over Principal Value Over Principal Loans and Receivables $ (5,616 ) $ — $ — $ (3,875 ) $ — $ — Debt Securities (24,588 ) — — (14,667 ) — — Assets of Consolidated CLO Vehicles Corporate Loans (496,820 ) 21,604 (11,431 ) (234,430 ) — — Other (325 ) — — 133 — — $ (527,349 ) $ 21,604 $ (11,431 ) $ (252,839 ) $ — $ — (a) Corporate Loans within CLO assets are classified as past due if contractual payments are more than one day past due. As of June 30, 2020 and December 31, 2019, no Loans and Receivables for which the fair value option was elected were past due or in non-accrual non-accrual |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements of Financial Instruments | 8. Fair Value Measurements of Financial Instruments The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy: June 30, 2020 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents $ 349,197 $ — $ — $ — $ 349,197 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 13,149 13,149 Equity Securities, Partnerships and LLC Interests 38,917 55,704 677,772 — 772,393 Debt Instruments — 570,935 66,010 — 636,945 Freestanding Derivatives — 2,062 — — 2,062 Assets of Consolidated CLO Vehicles — 6,047,390 471,592 — 6,518,982 Total Investments of Consolidated Blackstone Funds 38,917 6,676,091 1,215,374 13,149 7,943,531 Corporate Treasury Investments 572,312 1,335,989 29,768 267,774 2,205,843 Other Investments 157,552 — 3,929 4,175 165,656 Total Investments 768,781 8,012,080 1,249,071 285,098 10,315,030 Accounts Receivable - Loans and Receivables — — 162,368 — 162,368 Other Assets - Freestanding Derivatives 47 174,365 — — 174,412 $ 1,118,025 $ 8,186,445 $ 1,411,439 $ 285,098 $ 11,001,007 Liabilities Loans Payable - Liabilities of Consolidated CLO Vehicles (a)(b) $ — $ 6,232,695 $ — $ — $ 6,232,695 Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a)(b) — 93,945 — — 93,945 Securities Sold, Not Yet Purchased 9,395 42,000 — — 51,395 Accounts Payable, Accrued Expenses and Other Liabilities Consolidated Blackstone Funds - Freestanding Derivatives (a) — 10,936 — — 10,936 Freestanding Derivatives 518 45,284 — — 45,802 Corporate Treasury Commitments (c) — — 2,030 — 2,030 Total Accounts Payable, Accrued Expenses and Other Liabilities 518 56,220 2,030 — 58,768 $ 9,913 $ 6,424,860 $ 2,030 $ — $ 6,436,803 December 31, 2019 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents $ 456,784 $ — $ — $ — $ 456,784 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 23,647 23,647 Equity Securities, Partnerships and LLC Interests 31,812 53,611 674,150 — 759,573 Debt Instruments — 715,246 79,381 — 794,627 Freestanding Derivatives — 390 — — 390 Assets of Consolidated CLO Vehicles — 6,505,720 296,741 — 6,802,461 Total Investments of Consolidated Blackstone Funds 31,812 7,274,967 1,050,272 23,647 8,380,698 Corporate Treasury Investments 726,638 1,385,582 29,289 278,078 2,419,587 Other Investments 200,478 — — 7,126 207,604 Total Investments 958,928 8,660,549 1,079,561 308,851 11,007,889 Accounts Receivable - Loans and Receivables — — 500,751 — 500,751 Other Assets - Freestanding Derivatives 502 53,894 — — 54,396 $ 1,416,214 $ 8,714,443 $ 1,580,312 $ 308,851 $ 12,019,820 Liabilities Loans Payable - Liabilities of Consolidated CLO Vehicles (a)(b) $ — $ 6,479,754 $ — $ — $ 6,479,754 Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a)(b) — 78,252 — — 78,252 Securities Sold, Not Yet Purchased 19,977 55,569 — — 75,546 Accounts Payable, Accrued Expenses and Other Liabilities Consolidated Blackstone Funds - Freestanding Derivatives (a) — 4,321 — — 4,321 Freestanding Derivatives 150 5,744 — — 5,894 Total Accounts Payable, Accrued Expenses and Other Liabilities 150 10,065 — — 10,215 $ 20,127 $ 6,623,640 $ — $ — $ 6,643,767 LLC Limited Liability Company. (a) Pursuant to GAAP consolidation guidance, Blackstone is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles and other funds in which a consolidated entity of Blackstone, such as the general partner of the fund, has a controlling financial interest. While Blackstone is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, Blackstone has no ability to utilize the assets of these funds and there is no recourse to Blackstone for their liabilities since these are client assets and liabilities. (b) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. (c) Corporate Treasury Commitments are measured using third party pricing The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of June 30, 2020: Fair Value Valuation Unobservable Ranges Weighted- Impact to Financial Assets Investments of Consolidated Blackstone Funds Equity Securities, Partnership and LLC Interests $ 677,772 Discounted Cash Flows Discount Rate 0.8 % - % 11.0 % Lower Exit Multiple - EBITDA 3.5 x - 18.6 x 12.0 x Higher Exit Capitalization Rate 2.0 % - % 5.5 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Debt Instruments 66,010 Discounted Cash Flows Discount Rate 6.8 % - % 10.0 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Assets of Consolidated CLO Vehicles 471,592 Third Party Pricing N/A Total Investments of Consolidated Blackstone Funds 1,215,374 Corporate Treasury Investments 29,768 Discounted Cash Flows Discount Rate 4.0 % - % 7.7 % Lower Third Party Pricing N/A Loans and Receivables 162,368 Discounted Cash Flows Discount Rate 7.2 % - % 8.1 % Lower Third Party Pricing N/A Other Investments 3,929 Transaction Price N/A $ 1,411,439 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2019: Fair Value Valuation Unobservable Ranges Weighted- Impact to Financial Assets Investments of Consolidated Blackstone Funds Equity Securities, Partnership and LLC Interests $ 674,150 Discounted Cash Flows Discount Rate 0.9 % - 40.2 % 10.6 % Lower Exit Multiple - EBITDA 0.1 x - 17.0 x 9.7 x Higher Exit Capitalization Rate 2.0 % - 27.0 % 5.9 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Debt Instruments 79,381 Discounted Cash Flows Discount Rate 7.1 % - 58.2 % 12.1 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Assets of Consolidated CLO Vehicles 296,741 Third Party Pricing N/A Total Investments of Consolidated Blackstone Funds 1,050,272 Corporate Treasury Investments 29,289 Discounted Cash Flows Discount Rate 3.2 % - 7.1 % 5.7 % Lower Market Comparable Companies EBITDA Multiple 6.2 x - 8.8 x 8.1 x Higher Third Party Pricing N/A Loans and Receivables 500,751 Discounted Cash Flows Discount Rate 5.2 % - 9.8 % 7.7 % Lower Transaction Price N/A $ 1,580,312 N/A Not applicable. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA and forward EBITDA multiples. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. Since December 31, 2019, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments. The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Condensed Consolidated Statements of Operations. Level III Financial Assets at Fair Value Three Months Ended June 30, 2020 2019 Investments Investments of Loans Other of Loans Other Consolidated and Investments Consolidated and Investments Funds Receivables (a) Total Funds Receivables (a) Total Balance, Beginning of Period $ 1,014,098 $ 218,115 $ 47,909 $ 1,280,122 $ 1,243,800 $ 208,226 $ 59,133 $ 1,511,159 Transfer Into Level III (b) 316,551 — 8,402 324,953 149,275 — 3,986 153,261 Transfer Out of Level III (b) (200,964 ) — (16,850 ) (217,814 ) (294,612 ) — (14,557 ) (309,169 ) Purchases 125,218 7,160 4,559 136,937 112,757 198,482 5,251 316,490 Sales (51,971 ) (75,689 ) (7,626 ) (135,286 ) (84,525 ) (218,148 ) (5,270 ) (307,943 ) Settlements — (1,637 ) — (1,637 ) — (3,038 ) — (3,038 ) Changes in Gains Included in Earnings 12,442 14,419 (2,697 ) 24,164 13,401 2,309 509 16,219 Balance, End of Period $ 1,215,374 $ 162,368 $ 33,697 $ 1,411,439 $ 1,140,096 $ 187,831 $ 49,052 $ 1,376,979 Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date $ (27,616 ) $ 9,521 $ (7,782 ) $ (25,877 ) $ (2,162 ) $ (1,898 ) $ 135 $ (3,925 ) Level III Financial Assets at Fair Value Six Months Ended June 30, 2020 2019 Investments Investments of Loans Other of Loans Other Consolidated and Investments Consolidated and Investments Funds Receivables (a) Total Funds Receivables (a) Total Balance, Beginning of Period $ 1,050,272 $ 500,751 $ 29,289 $ 1,580,312 $ 1,364,016 $ 304,173 $ 56,185 $ 1,724,374 Transfer Into Level III (b) 282,400 — 25,001 307,401 106,644 — 12,935 119,579 Transfer Out of Level III (b) (147,510 ) — (18,875 ) (166,385 ) (400,402 ) — (27,170 ) (427,572 ) Purchases 226,824 170,899 5,771 403,494 179,305 270,772 12,820 462,897 Sales (111,580 ) (506,881 ) (12,665 ) (631,126 ) (145,097 ) (383,816 ) (6,141 ) (535,054 ) Settlements — (3,650 ) — (3,650 ) — (10,189 ) — (10,189 ) Changes in Gains Included in Earnings (85,032 ) 1,249 5,176 (78,607 ) 35,630 6,891 423 42,944 Balance, End of Period $ 1,215,374 $ 162,368 $ 33,697 $ 1,411,439 $ 1,140,096 $ 187,831 $ 49,052 $ 1,376,979 Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date $ (97,403 ) $ 4,940 $ (123 ) $ (92,586 ) $ 25,821 $ (2,657 ) $ 315 $ 23,479 (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2020 | |
Variable Interest Entities | 9. Variable Interest Entities Pursuant to GAAP consolidation guidance, Blackstone consolidates certain VIEs in which it is determined that Blackstone is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance-based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds have similar characteristics, including loss of invested capital and loss of management fees and performance-based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. Blackstone does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments. The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to Blackstone for the consolidated VIEs’ liabilities including the liabilities of the consolidated CLO vehicles. Blackstone holds variable interests in certain VIEs which are not consolidated as it is determined that Blackstone is not the primary beneficiary. Blackstone’s involvement with such entities is in the form of direct and indirect equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to non-consolidated non-consolidated June 30, December 31, 2020 2019 Investments $ 868,579 $ 1,216,932 Due from Affiliates 197,570 143,949 Potential Clawback Obligation 39,271 109,240 Maximum Exposure to Loss $ 1,105,420 $ 1,470,121 Amounts Due to Non-Consolidated $ 313 $ 231 |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Repurchase Agreements | 10. Repurchase Agreements At June 30, 2020 and December 31, 2019, Blackstone pledged securities with a carrying value of $123.0 million and $196.1 million, respectively, and cash to collateralize its repurchase agreements. Such securities can be repledged, delivered or otherwise used by the counterparty. The following tables provide information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged: June 30, 2020 Remaining Contractual Maturity of the Overnight Greater and Up to 30 - 90 than Continuous 30 Days Days 90 days Total Repurchase Agreements Asset-Backed Securities $ — $ 10,634 $ 40,780 $ 29,206 $ 80,620 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” $ 80,620 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” $ — December 31, 2019 Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 - 90 than Continuous 30 Days Days 90 days Total Repurchase Agreements Asset-Backed Securities $ — $ 42,459 $ 88,868 $ 22,791 $ 154,118 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” $ 154,118 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” $ — |
Offsetting of Assets And Liabil
Offsetting of Assets And Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
Offsetting of Assets and Liabilities | 11. Offsetting of Assets and Liabilities The following tables present the offsetting of assets and liabilities as of June 30, 2020 and December 31, 2019: June 30, 2020 Gross and Net Amounts of Gross Amounts Not Offset Assets Presented in the Statement of in the Statement Financial Condition of Financial Financial Cash Collateral Condition Instruments (a) Received Net Amount Assets Freestanding Derivatives $ 176,474 $ 36,148 $ 72,895 $ 67,431 June 30, 2020 Gross and Net Amounts of Liabilities Gross Amounts Not Offset Presented in the in the Statement of Statement of Financial Condition Financial Financial Cash Collateral Condition Instruments (a) Pledged Net Amount Liabilities Freestanding Derivatives $ 55,001 $ 36,148 $ 18,123 $ 730 Repurchase Agreements 80,620 80,620 — — $ 135,621 $ 116,768 $ 18,123 $ 730 December 31, 2019 Gross and Net Amounts of Gross Amounts Not Offset Assets Presented in the Statement of in the Statement Financial Condition of Financial Financial Cash Collateral Condition Instruments (a) Received Net Amount Assets Freestanding Derivatives $ 54,479 $ 380 $ — $ 54,099 December 31, 2019 Gross and Net Amounts of Liabilities Gross Amounts Not Offset Presented in the in the Statement of Statement of Financial Condition Financial Financial Cash Collateral Condition Instruments (a) Pledged Net Amount Liabilities Freestanding Derivatives $ 10,215 $ 380 $ 9,198 $ 637 Repurchase Agreements 154,118 154,118 — — $ 164,333 $ 154,498 $ 9,198 $ 637 (a) Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. Repurchase Agreements are presented separately on the Condensed Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Condensed Consolidated Statements of Financial Condition. The following table presents the components of Other Assets: June 30, December 31, 2020 2019 Furniture, Equipment and Leasehold Improvements, Net $ 164,516 $ 154,482 Prepaid Expenses 144,823 159,333 Freestanding Derivatives 174,412 54,396 Other 17,600 14,282 $ 501,351 $ 382,493 Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition and are not a significant component thereof. Notional Pooling Arrangement Blackstone has a notional cash pooling arrangement with a financial institution for cash management purposes. This arrangement allows for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of June 30, 2020, the aggregate cash balance on deposit relating to the cash pooling arrangement was $1.0 billion, which was offset with an accompanying overdraft of $1.0 billion. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Borrowings | 12. Borrowings The following table presents the general characteristics of each of our notes, as well as their carrying value and fair value. The notes are included in Loans Payable within the Condensed Consolidated Statements of Financial Condition. All of the notes were issued at a discount. All of the notes accrue interest from the issue date thereof and all pay interest in arrears on a semi-annual basis or annual basis. June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior Notes Value Value (a) Value Value (a) 4.750%, Due 2/15/2023 $ 396,809 $ 438,960 $ 396,247 $ 429,280 2.000%, Due 5/19/2025 333,264 357,140 332,393 365,521 1.000%, Due 10/5/2026 666,153 684,959 664,229 691,012 3.150%, Due 10/2/2027 297,215 320,250 297,046 309,540 1.500%, Due 4/10/2029 668,937 718,392 667,425 708,841 2.500%, Due 1/10/2030 490,268 520,850 489,841 493,500 6.250%, Due 8/15/2042 238,551 352,375 238,437 338,200 5.000%, Due 6/15/2044 489,083 620,150 488,968 606,700 4.450%, Due 7/15/2045 344,219 411,110 344,157 396,235 4.000%, Due 10/2/2047 290,437 336,690 290,344 321,780 3.500%, Due 9/10/2049 391,845 421,840 391,769 399,961 $ 4,606,781 $ 5,182,716 $ 4,600,856 $ 5,060,570 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. Included within Loans Payable and Due to Affiliates within the Condensed Consolidated Statements of Financial Condition are amounts due to holders of debt securities issued by Blackstone’s consolidated CLO vehicles. Borrowings through the consolidated CLO vehicles consisted of the following: June 30, 2020 December 31, 2019 Weighted- Weighted- Average Average Effective Remaining Effective Remaining Borrowing Interest Maturity in Borrowing Interest Maturity in Outstanding Rate Years (a) Outstanding Rate Years (a) Senior Secured Notes $ 6,525,925 2.74% 6.1 $ 6,527,800 3.55% 3.5 Subordinated Notes 325,735 (b) N/A 331,735 (b) N/A $ 6,851,660 $ 6,859,535 (a) Weighted-Average Remaining Maturity in Years for Senior Secured Notes includes consideration of pre-payment options. (b) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. Senior Secured Notes and Subordinated Notes comprise the following amounts: June 30, 2020 December 31, 2019 Amounts Due to Non- Amounts Due to Non- Consolidated Affiliates Consolidated Affiliates Borrowing Borrowing Fair Value Outstanding Fair Value Fair Value Outstanding Fair Value Senior Secured Notes $ 6,311,414 $ 78,800 $ 78,719 $ 6,512,733 $ 57,750 $ 57,717 Subordinated Notes 15,226 44,734 15,226 45,273 44,734 20,535 $ 6,326,640 $ 123,534 $ 93,945 $ 6,558,006 $ 102,484 $ 78,252 The Loans Payable of the consolidated CLO vehicles are collateralized by assets held by each respective CLO vehicle and assets of one vehicle may not be used to satisfy the liabilities of another. This collateral consisted of Cash, Corporate Loans, Corporate Bonds and other securities. As of June 30, 2020 and December 31, 2019, the fair value of the consolidated CLO assets was $6.8 billion and $7.2 billion, respectively. Scheduled principal payments for borrowings as of June 30, 2020 were as follows: Blackstone Fund Operating Facilities/CLO Total Borrowings Vehicles Borrowings 2020 $ — $ 92 $ 92 2021 — — — 2022 — — — 2023 400,000 — 400,000 2024 — — — Thereafter 4,285,100 6,851,660 11,136,760 $ 4,685,100 $ 6,851,752 $ 11,536,852 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | 13. Income Taxes Prior to the Conversion, Blackstone and certain of its subsidiaries operated in the U.S. as partnerships for income tax purposes (partnerships generally are not subject to federal income taxes) and generally as corporate entities in non-U.S. The Conversion resulted in a step-up step-up Blackstone’s effective tax rate was 9.8% and 5.6% for the three months ended June 30, 2020 and 2019, respectively, and 0.9% and 4.4% for the six months ended June 30, 2020 and 2019, respectively. Blackstone’s income tax provision (benefit) was $147.4 million and $38.7 million for the three months ended June 30, 2020 and 2019, respectively, and $(11.3) million and $79.9 million for the six months ended June 30, 2020 and 2019, respectively. For the three and six months ended June 30, 2020, the effective tax rate differs from the statutory rate primarily because: (a) a portion of the reported net income (loss) before taxes is attributable to non-controlling interest holders and (b) the net change to the valuation allowance related to the step-up non-controlling |
Earnings Per Share and Stockhol
Earnings Per Share and Stockholder's Equity | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share and Stockholder's Equity | 14. Earnings Per Share and Stockholder’s Equity Earnings Per Share Basic and diluted net income per share of Class A common stock for the three and six months ended June 30, 2020 and 2019 was calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net Income (Loss) for Per Share of Class A Common Stock Calculations Net Income (Loss) Attributable to The Blackstone Group Inc., Basic $ 568,266 $ 305,792 $ (498,226 ) $ 787,096 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units 405,459 — — 610,101 Net Income (Loss) Attributable to The Blackstone Group Inc., Diluted $ 973,725 $ 305,792 $ (498,226 ) $ 1,397,197 Shares/Units Outstanding Weighted-Average Shares of Class A Common Stock Outstanding, Basic 698,534,168 673,655,305 677,041,769 674,079,074 Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock 123,340 330,639 — 269,196 Weighted-Average Blackstone Holdings Partnership Units 505,754,449 — — 526,244,006 Weighted-Average Shares of Class A Common Stock Outstanding, Diluted 1,204,411,957 673,985,944 677,041,769 1,200,592,276 Net Income (Loss) Per Share of Class A Common Stock Basic $ 0.81 $ 0.45 $ (0.74 ) $ 1.17 Diluted $ 0.81 $ 0.45 $ (0.74 ) $ 1.16 Dividends Declared Per Share of Class A Common Stock (a) $ 0.39 $ 0.37 $ 1.00 $ 0.95 (a) Dividends declared reflects the calendar date of the declaration for each dividend. In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on Net Income Per Share of Class A Common Stock, Blackstone considered that net income available to holders of shares of Class A common stock would increase due to the elimination of non-controlling non-controlling Unvested participating Blackstone Holdings Partnership Units and unvested participating shares of Class A common stock are excluded from basic and diluted net loss per share of Class A common stock for the six months ended June 30, 2020 as those unvested participating units and shares are not contractually obligated to share in losses. The following table summarizes the anti-dilutive securities for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock — — 15,672,449 — Weighted-Average Blackstone Holdings Partnership Units — 526,721,409 508,487,300 — Stockholder’s Equity In connection with the Conversion, effective July 1, 2019, each common unit of the Partnership outstanding immediately prior to the Conversion converted into one issued and outstanding, fully paid and nonassessable share of Class A common stock, $0.00001 par value per share, of the Company. The special voting unit of the Partnership outstanding immediately prior to the Conversion converted into one issued and outstanding, fully paid and nonassessable share of Class B common stock, $0.00001 par value per share, of the Company. The general partner units of the Partnership outstanding immediately prior to the Conversion converted into one issued and outstanding, fully paid and nonassessable share of Class C common stock, $0.00001 par value per share, of the Company. The Class A and Class B common stock generally are non-voting. In connection with the Conversion on July 1, 2019, the Company authorized 9 billion shares of preferred stock with a par value of $0.00001. There were no shares of preferred stock issued and outstanding as of June 30, 2020. Share Repurchase Program On July 16, 2019, Blackstone’s board of directors authorized the repurchase of up to $1.0 billion of Class A common stock and Blackstone Holdings Partnership Units. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. During the three and six months ended June 30, 2020, Blackstone repurchased 2.0 million and 7.0 million shares , respectiv ely, , respectively, repurchase three months 9 Shares Eligible for Dividends and Distributions As of June 30, 2020, the total shares of Class A common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and distributions were as follows: Shares/Units Class A Common Stock Outstanding 676,874,583 Unvested Participating Common Stock 20,722,453 Total Participating Common Stock 697,597,036 Participating Blackstone Holdings Partnership Units 504,912,855 1,202,509,891 |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Equity-Based Compensation | 15. Equity-Based Compensation Blackstone has granted equity-based compensation awards to Blackstone’s senior managing directors, non-partner non-professionals For the three and six months ended June 30, 2020, Blackstone recorded compensation expense of $119.9 million and $238.7 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $14.7 million and $28.4 million, respectively. For the three and six months ended June 30, 2019, Blackstone recorded compensation expense of $102.8 million and $224.0 million, respectively, in relation to its equity-based awards with corresponding tax benefits of $15.9 million and $34.5 million, respectively. As of June 30, 2020, there was $1.1 billion of estimated unrecognized compensation expense related to unvested awards. This cost is expected to be recognized over a weighted-average period of 3.5 years. Total vested and unvested outstanding shares, including Blackstone Class A common stock, Blackstone Holdings Partnership Units and deferred restricted shares of Class A common stock, were 1,202,744,387 as of June 30, 2020. Total outstanding unvested phantom shares were 75,934 as of June 30, 2020. A summary of the status of Blackstone’s unvested equity-based awards as of June 30, 2020 and of changes during the period January 1, 2020 through June 30, 2020 is presented below: Blackstone Holdings The Blackstone Group Inc. Equity Settled Awards Cash Settled Awards Weighted- Deferred Weighted- Weighted- Average Restricted Shares Average Average Partnership Grant Date of Class A Grant Date Phantom Grant Date Unvested Shares/Units Units Fair Value Common Stock Fair Value Shares Fair Value Balance, December 31, 2019 32,159,218 $ 36.25 8,969,736 $ 35.26 51,341 $ 52.85 Granted — — 13,764,902 44.89 21,189 56.95 Vested (4,020,702 ) 40.22 (2,096,231 ) 34.34 (485 ) 56.03 Forfeited (97,316 ) 35.65 (450,917 ) 38.07 — — Balance, June 30, 2020 28,041,200 $ 36.54 20,187,490 $ 41.54 72,045 $ 57.17 Shares/Units Expected to Vest The following unvested shares and units, after expected forfeitures, as of June 30, 2020, are expected to vest: Weighted- Average Service Period Shares/Units in Years Blackstone Holdings Partnership Units 24,690,441 2.8 Deferred Restricted Shares of Class A Common Stock 16,833,076 3.5 Total Equity-Based Awards 41,523,517 3.1 Phantom Shares 57,559 3.0 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions | 16. Related Party Transactions Affiliate Receivables and Payables Due from Affiliates and Due to Affiliates consisted of the following: June 30, December 31, 2020 2019 Due from Affiliates Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated $ 1,933,376 $ 1,999,568 Due from Certain Non-Controlling 460,552 573,679 Accrual for Potential Clawback of Previously Distributed Performance Allocations 37,584 21,626 $ 2,431,512 $ 2,594,873 June 30, December 31, 2020 2019 Due to Affiliates Due to Certain Non-Controlling $ 736,656 $ 672,981 Due to Non-Consolidated 162,880 100,286 Due to Note-Holders of Consolidated CLO Vehicles 93,945 78,252 Due to Certain Non-Controlling 80,421 48,433 Accrual for Potential Repayment of Previously Received Performance Allocations 194,669 126,919 $ 1,268,571 $ 1,026,871 Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or incentive fee arrangements. As of June 30, 2020 and December 31, 2019, such investments aggregated $915.8 million and $969.3 million, respectively. Their share of the Net Income Attributable to Redeemable Non-Controlling Non-Controlling Loans to Affiliates Loans to affiliates consist of interest bearing advances to certain Blackstone individuals to finance their investments in certain Blackstone Funds. These loans earn interest at Blackstone’s cost of borrowing and such interest totaled $1.1 million and $1.8 million for the three months ended June 30, 2020 and 2019, respectively, and $4.1 million and $4.2 million for the six months ended June 30, 2020 and 2019, respectively. Contingent Repayment Guarantee Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and non-controlling Aircraft and Other Services In the normal course of business, Blackstone makes use of aircraft owned by Stephen A. Schwarzman; aircraft owned by Jonathan D. Gray; and aircraft owned jointly by Joseph P. Baratta and two other individuals (each such aircraft, “Personal Aircraft”). Each of Messrs. Schwarzman, Gray and Baratta paid for his respective ownership interest in his Personal Aircraft himself and bears his respective share of all operating, personnel and maintenance costs associated with the operation of such Personal Aircraft. The payments Blackstone makes for the use of the Personal Aircraft are In addition, on occasion, certain of Blackstone’s executive officers and employee directors and their families may make personal use of aircraft in which Blackstone owns a fractional interest, as well as other assets of Blackstone. Any such personal use of Blackstone assets is charged to the executive officer or employee director based on market rates and usage. Personal use of Blackstone resources is also reimbursed to Blackstone based on market rates. The transactions described herein are not material to the Condensed Consolidated Financial Statements. Tax Receivable Agreements Blackstone used a portion of the proceeds from the IPO and other sale s one-for-one Blackstone has entered into tax receivable agreements with each of the predecessor owners and additional tax receivable agreements have been executed, and will continue to be executed, with newly-admitted senior managing directors and others who acquire Blackstone Holdings Partnership Units. The agreements provide for the payment by the corporate taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements. Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $736.6 million over the next 15 years. The after-tax pre-IPO Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to shares of Blackstone Class A common stock, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Acquisition of Ownership Interests from Non-Controlling Non-Cash Other Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis. Additionally, please see Note 17. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | 17. Commitments and Contingencies Commitments Investment Commitments Blackstone had $3.7 billion of investment commitments as of June 30, 2020 representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The consolidated Blackstone Funds had signed investment commitments of $51.8 million as of June 30, 2020 , Contingencies Guarantees Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the ongoing The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to The Blackstone Group International Partners LLP. The amount guaranteed as of June 30, 2020 was $233.5 million. Litigation Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against Blackstone. Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, Blackstone does not have a potential liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows. In December 2017, a purported derivative suit (Mayberry v. KKR & Co., L.P., et al.) was filed in the Commonwealth of Kentucky Franklin County Circuit Court on behalf of the Kentucky Retirement System (“KRS”) by eight of its members and beneficiaries alleging various breaches of fiduciary duty and other violations of Kentucky state law in connection with KRS’s investment in three hedge funds of funds, including a fund managed by Blackstone Alternative Asset Management L.P. (“BAAM L.P.”). The suit names more than 30 defendants, including The Blackstone Group L.P.; BAAM L.P.; Stephen A. Schwarzman, as Chairman and CEO of Blackstone; and J. Tomilson Hill, as then-President and CEO of the Hedge Fund Solutions Group, Vice Chairman of Blackstone and CEO of BAAM L.P. (collectively, the “Blackstone Defendants”). Aside from the Blackstone Defendants, the action also names current and former KRS trustees and former KRS officers and various other service providers to KRS and their related persons. The plaintiffs filed an amended complaint in January 2018. In November 2018, the Circuit Court granted one defendant’s motion to dismiss and denied all other defendants’ motions to dismiss, including those of the Blackstone Defendants. In January 2019, certain of the KRS trustee and officer defendants noticed appeals from the denial of the motions to dismiss to the Kentucky Court of Appeals, and also filed a motion to stay the Mayberry proceedings in Circuit Court pending the outcome of those appeals. In addition, several defendants, including Blackstone and BAAM L.P., filed petitions in the Kentucky Court of Appeals for a writ of prohibition against the ongoing Mayberry proceedings on the ground that the plaintiffs lack standing. In April 2019, the KRS trustee and officer defendants’ appeals were transferred to the Kentucky Supreme Court. On April 23, 2019, the Kentucky Court of Appeals granted the Blackstone Defendants’ petition for a writ of prohibition and vacated the Circuit Court’s November 30, 2018 Opinion and Order denying the motion to dismiss for lack of standing. On April 24, 2019, the Mayberry Plaintiffs filed a notice of appeal of that order to the Kentucky Supreme Court. The Kentucky Supreme Court heard oral argument on the appeal on October 24, 2019. On July 9, 2020, the Kentucky Supreme Court unanimously held that the plaintiffs lack constitutional standing to bring their claims and remanded the case to the Circuit Court with direction to dismiss the complaint. On July 20, 2020, the Kentucky Attorney General filed a motion to intervene and a proposed intervening complaint in the Mayberry action on behalf of the Commonwealth of Kentucky. The Blackstone Defendants filed their objection to that motion on July 30, 2020 and a hearing has been scheduled for August 17, 2020. On July 21, 2020, the Kentucky Attorney General also filed a separate action in Franklin County Circuit Court that is nearly identical to its proposed intervening complaint; that action was consolidated with the Mayberry action on August 5, 2020. In addition, on July 29, 2020, counsel for certain of the Mayberry Plaintiffs filed a motion for leave to amend their complaint, purporting to remedy the standing defects identified by the Kentucky Supreme Court. The Blackstone Defendants intend to oppose that motion, which has also been noticed for hearing on August 17, 2020. Blackstone continues to believe that this suit is totally without merit and intends to defend it vigorously. Contingent Obligations (Clawback) Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. The lives of the carry funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through 2029. Further extensions of such terms may be implemented under given circumstances. For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the carry funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Performance Allocation distributions with respect to such fund’s realized investments. The following table presents the clawback obligations by segment: June 30, 2020 December 31, 2019 Current and Current and Blackstone Former Blackstone Former Segment Holdings Personnel (a) Total Holdings Personnel (a) Total Real Estate $ 21,042 $ 11,850 $ 32,892 $ 16,151 $ 10,597 $ 26,748 Private Equity 120,993 8,744 129,737 82,276 2,860 85,136 Credit & Insurance 15,050 16,990 32,040 6,866 8,169 15,035 $ 157,085 $ 37,584 $ 194,669 $ 105,293 $ 21,626 $ 126,919 (a) The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. The increase in contingent obligations related to clawback for the period ended June 30, 2020 was driven by unrealized depreciation in the fair value of certain underlying fund investments driven by the impact of COVID-19. COVID-19 For Private Equity, Real Estate, and certain Credit & Insurance Funds, a portion of the Performance Allocations paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Condensed Consolidated Financial Statements of Blackstone, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At June 30, 2020, $750.7 million was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required. In the Credit & Insurance segment, payment of Performance Allocations to Blackstone by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation. If, at June 30, 2020, all of the investments held by our carry funds were deemed worthless, a possibility that management views as remote, the amount of Performance Allocations subject to potential clawback would be $3.6 billion, on an after-tax |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting | 18. Segment Reporting Blackstone transacts its primary business in the United States and substantially all of its revenues are generated domestically. Blackstone conducts its alternative asset management businesses through four segments: • Real Estate – Blackstone’s Real Estate segment primarily comprises its management of global, Europe and Asia-focused opportunistic real estate funds, high-yield and high-grade real estate debt funds, liquid real estate debt funds, core+ real estate funds which also include a non-exchange • Private Equity – Blackstone’s Private Equity segment includes its management of flagship corporate private equity funds, sector and geographically-focused corporate private equity funds, including energy and Asia-focused funds, core private equity funds, an opportunistic investment platform, a secondary fund of funds business, infrastructure-focused funds, a life sciences private investment platform, a multi-asset investment program for eligible high net worth investors and a capital markets services business. • Hedge Fund Solutions – The largest component of Blackstone’s Hedge Fund Solutions segment is Blackstone Alternative Asset Management, which manages a broad range of commingled and customized hedge fund of fund solutions. The segment also includes investment platforms that seed new hedge fund businesses, purchase minority interests in more established general partners and management companies of funds, invest in special situation opportunities, create alternative solutions in the form of daily liquidity products and invest directly. • Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of GSO Capital Partners LP, which is organized into three overarching strategies: performing credit strategies (which include mezzanine lending funds, middle market direct lending funds, including our business development company, our structured products group and other performing credit strategy funds), distressed strategies (which include credit alpha strategies, stressed/distressed funds and energy strategies) and long only strategies (which consist of CLOs, closed-ended funds, open-ended funds and separately managed accounts). In addition, the segment includes a publicly traded master limited partnership investment platform, Harvest, and our insurer-focused platform, Blackstone Insurance Solutions. These business segments are differentiated by their various investment strategies. The Real Estate, Private Equity, Hedge Fund Solutions and Credit & Insurance segments primarily earn their income from management fees and investment returns on assets under management. Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates non-controlling For segment reporting purposes, Segment Distributable Earnings is presented along with its major components, Fee Related Earnings and Net Realizations. Fee Related Earnings is used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance Revenues or Performance Compensation. Segment Presentation The following tables present the financial data for Blackstone’s four segments for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 382,704 $ 268,070 $ 145,455 $ 145,565 $ 941,794 Transaction, Advisory and Other Fees, Net 32,039 9,521 859 5,873 48,292 Management Fee Offsets (2,436 ) (8,031 ) 4 (2,890 ) (13,353 ) Total Management and Advisory Fees, Net 412,307 269,560 146,318 148,548 976,733 Fee Related Performance Revenues 6,505 — — 8,528 15,033 Fee Related Compensation (116,640 ) (92,825 ) (40,353 ) (57,086 ) (306,904 ) Other Operating Expenses (44,525 ) (44,827 ) (17,807 ) (36,424 ) (143,583 ) Fee Related Earnings 257,647 131,908 88,158 63,566 541,279 Realized Performance Revenues 34,209 64,513 1,482 1,973 102,177 Realized Performance Compensation (12,547 ) (25,016 ) — (224 ) (37,787 ) Realized Principal Investment Income (Loss) 1,573 17,416 (331 ) 280 18,938 Total Net Realizations 23,235 56,913 1,151 2,029 83,328 Total Segment Distributable Earnings $ 280,882 $ 188,821 $ 89,309 $ 65,595 $ 624,607 Three Months Ended June 30, 2019 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 255,636 $ 265,139 $ 136,990 $ 147,550 $ 805,315 Transaction, Advisory and Other Fees, Net 23,990 31,526 723 5,256 61,495 Management Fee Offsets (1,686 ) (17,689 ) — (3,279 ) (22,654 ) Total Management and Advisory Fees, Net 277,940 278,976 137,713 149,527 844,156 Fee Related Performance Revenues 11,072 — — 2,552 13,624 Fee Related Compensation (97,795 ) (105,107 ) (36,622 ) (54,310 ) (293,834 ) Other Operating Expenses (40,114 ) (40,429 ) (21,112 ) (40,466 ) (142,121 ) Fee Related Earnings 151,103 133,440 79,979 57,303 421,825 Realized Performance Revenues 198,573 122,907 11,960 7,946 341,386 Realized Performance Compensation (67,742 ) (52,081 ) (2,175 ) (3,468 ) (125,466 ) Realized Principal Investment Income 47,420 42,906 12,306 20,925 123,557 Total Net Realizations 178,251 113,732 22,091 25,403 339,477 Total Segment Distributable Earnings $ 329,354 $ 247,172 $ 102,070 $ 82,706 $ 761,302 The following tables present the financial data for Blackstone’s four segments as of June 30, 2020 and for the six months ended June 30, 2020 and 2019: June 30, 2020 and the Six Months Then Ended Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 754,142 $ 522,044 $ 285,111 $ 290,893 $ 1,852,190 Transaction, Advisory and Other Fees, Net 55,063 30,934 1,617 11,343 98,957 Management Fee Offsets (10,777 ) (17,246 ) (38 ) (5,786 ) (33,847 ) Total Management and Advisory Fees, Net 798,428 535,732 286,690 296,450 1,917,300 Fee Related Performance Revenues 11,056 — — 16,443 27,499 Fee Related Compensation (236,936 ) (203,193 ) (86,544 ) (126,495 ) (653,168 ) Other Operating Expenses (85,001 ) (85,828 ) (36,474 ) (75,165 ) (282,468 ) Fee Related Earnings 487,547 246,711 163,672 111,233 1,009,163 Realized Performance Revenues 77,929 176,589 3,249 11,643 269,410 Realized Performance Compensation (25,939 ) (79,659 ) (945 ) (2,546 ) (109,089 ) Realized Principal Investment Income (Loss) 8,873 27,763 (940 ) 3,532 39,228 Total Net Realizations 60,863 124,693 1,364 12,629 199,549 Total Segment Distributable Earnings $ 548,410 $ 371,404 $ 165,036 $ 123,862 $ 1,208,712 Segment Assets $ 7,460,667 $ 7,924,981 $ 2,238,985 $ 3,278,666 $ 20,903,299 Six Months Ended June 30, 2019 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 515,881 $ 484,556 $ 274,318 $ 288,078 $ 1,562,833 Transaction, Advisory and Other Fees, Net 47,901 68,817 1,041 8,886 126,645 Management Fee Offsets (1,966 ) (22,674 ) — (6,620 ) (31,260 ) Total Management and Advisory Fees, Net 561,816 530,699 275,359 290,344 1,658,218 Fee Related Performance Revenues 17,748 — — 3,655 21,403 Fee Related Compensation (212,611 ) (212,694 ) (79,576 ) (112,984 ) (617,865 ) Other Operating Expenses (79,100 ) (74,630 ) (38,997 ) (72,705 ) (265,432 ) Fee Related Earnings 287,853 243,375 156,786 108,310 796,324 Realized Performance Revenues 275,755 279,506 16,051 16,843 588,155 Realized Performance Compensation (97,642 ) (102,637 ) (3,588 ) (6,839 ) (210,706 ) Realized Principal Investment Income 45,289 68,045 12,023 24,108 149,465 Total Net Realizations 223,402 244,914 24,486 34,112 526,914 Total Segment Distributable Earnings $ 511,255 $ 488,289 $ 181,272 $ 142,422 $ 1,323,238 Reconciliations of Total Segment Amounts The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three and six months ended June 30, 2020 and 2019 along with Total Assets as of June 30, 2020: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenues Total GAAP Revenues $ 2,516,069 $ 1,486,806 $ (559,895 ) $ 3,511,677 Less: Unrealized Performance Revenues (a) (1,067,923 ) (157,398 ) 2,385,523 (821,731 ) Less: Unrealized Principal Investment (Income) (223,316 ) 56,353 393,294 (83,572 ) Less: Interest and Dividend Revenue (c) (26,290 ) (45,991 ) (63,889 ) (92,690 ) Less: Other Revenue (d) 55,606 20,150 (82,545 ) 6,961 Impact of Consolidation (e) (141,599 ) (35,119 ) 179,519 (104,968 ) Amortization of Intangibles (f) 387 387 774 774 Transaction-Related Charges (g) (1,310 ) (4,174 ) (2,140 ) (2,706 ) Intersegment Eliminations 1,257 1,709 2,796 3,496 Total Segment Revenue (h) $ 1,112,881 $ 1,322,723 $ 2,253,437 $ 2,417,241 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Expenses Total GAAP Expenses $ 1,172,681 $ 862,240 $ 534,606 $ 1,903,404 Less: Unrealized Performance Allocations Compensation (i) (454,813 ) (64,518 ) 942,565 (351,533 ) Less: Equity-Based Compensation (j) (89,341 ) (53,105 ) (176,813 ) (119,881 ) Less: Interest Expense (k) (38,924 ) (43,230 ) (80,464 ) (84,868 ) Impact of Consolidation (e) (9,020 ) (14,411 ) (20,479 ) (25,272 ) Amortization of Intangibles (f) (16,096 ) (16,096 ) (32,192 ) (32,192 ) Transaction-Related Charges (g) (77,470 ) (111,168 ) (125,294 ) (199,151 ) Intersegment Eliminations 1,257 1,709 2,796 3,496 Total Segment Expenses (l) $ 488,274 $ 561,421 $ 1,044,725 $ 1,094,003 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Other Income Total GAAP Other Income $ 158,373 $ 61,131 $ (169,596 ) $ 191,456 Impact of Consolidation (e) (158,373 ) (61,131 ) 169,596 (191,456 ) Total Segment Other Income $ — $ — $ — $ — Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Income (Loss) Before Provision (Benefit) for Taxes Total GAAP Income (Loss) Before Provision (Benefit) for Taxes $ 1,501,761 $ 685,697 $ (1,264,097 ) $ 1,799,729 Less: Unrealized Performance Revenues (a) (1,067,923 ) (157,398 ) 2,385,523 (821,731 ) Less: Unrealized Principal Investment (Income) (223,316 ) 56,353 393,294 (83,572 ) Less: Interest and Dividend Revenue (c) (26,290 ) (45,991 ) (63,889 ) (92,690 ) Less: Other Revenue (d) 55,606 20,150 (82,545 ) 6,961 Plus: Unrealized Performance Allocations Compensation (i) 454,813 64,518 (942,565 ) 351,533 Plus: Equity-Based Compensation (j) 89,341 53,105 176,813 119,881 Plus: Interest Expense (k) 38,924 43,230 80,464 84,868 Impact of Consolidation (e) (290,952 ) (81,839 ) 369,594 (271,152 ) Amortization of Intangibles (f) 16,483 16,483 32,966 32,966 Transaction-Related Charges (g) 76,160 106,994 123,154 196,445 Total Segment Distributable Earnings $ 624,607 $ 761,302 $ 1,208,712 $ 1,323,238 As of June 30, 2020 Total Assets Total GAAP Assets $ 28,844,381 Impact of Consolidation (e) (7,941,082 ) Total Segment Assets $ 20,903,299 Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges. (a) This adjustment removes Unrealized Performance Revenues on a segment basis. (b) This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. (c) This adjustment removes Interest and Dividend Revenue on a segment basis. (d) This adjustment removes Other Revenue on a segment basis. For the three months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $(55.6) million and $(17.1) million, and included $56.7 million and $20.8 million of foreign exchange losses, respectively. For the six months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $82.6 million and $(6.8) million, and included $80.3 million and $(8.3) million of foreign exchange gains (losses), respectively. (e) This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the 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, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling (f) 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. (g) 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 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. (h) Total Segment Revenues is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total Segment Management and Advisory Fees, Net $ 976,733 $ 844,156 $ 1,917,300 $ 1,658,218 Total Segment Fee Related Performance Revenues 15,033 13,624 27,499 21,403 Total Segment Realized Performance Revenues 102,177 341,386 269,410 588,155 Total Segment Realized Principal Investment Income 18,938 123,557 39,228 149,465 Total Segment Revenues $ 1,112,881 $ 1,322,723 $ 2,253,437 $ 2,417,241 (i) This adjustment removes Unrealized Performance Allocations Compensation. (j) This adjustment removes Equity-Based Compensation on a segment basis. (k) This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. (l) Total Segment Expenses is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total Segment Fee Related Compensation $ 306,904 $ 293,834 $ 653,168 $ 617,865 Total Segment Realized Performance Compensation 37,787 125,466 109,089 210,706 Total Segment Other Operating Expenses 143,583 142,121 282,468 265,432 Total Segment Expenses $ 488,274 $ 561,421 $ 1,044,725 $ 1,094,003 Reconciliations of Total Segment Components The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Management and Advisory Fees, Net GAAP $ 969,728 $ 840,378 $ 1,904,560 $ 1,650,104 Segment Adjustment (a) 7,005 3,778 12,740 8,114 Total Segment $ 976,733 $ 844,156 $ 1,917,300 $ 1,658,218 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues GAAP Incentive Fees $ 15,300 $ 21,915 $ 27,461 $ 34,047 Investment Income - Realized Performance Allocations 101,910 332,520 269,440 574,895 GAAP 117,210 354,435 296,901 608,942 Total Segment Less: Realized Performance Revenues (102,177 ) (341,386 ) (269,410 ) (588,155 ) Segment Adjustment (b) — 575 8 616 Total Segment $ 15,033 $ 13,624 $ 27,499 $ 21,403 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP Compensation to Total Segment Fee Related Compensation GAAP Compensation $ 458,457 $ 438,521 $ 935,000 $ 909,918 Incentive Fee Compensation 8,432 8,886 14,954 14,292 Realized Performance Allocations Compensation 38,569 125,825 110,992 212,220 GAAP 505,458 573,232 1,060,946 1,136,430 Total Segment Less: Realized Performance Compensation (37,787 ) (125,466 ) (109,089 ) (210,706 ) Less: Equity-Based Compensation - Operating Compensation (87,205 ) (50,225 ) (172,539 ) (113,933 ) Less: Equity-Based Compensation - Performance Compensation (2,136 ) (2,880 ) (4,274 ) (5,948 ) Segment Adjustment (c) (71,426 ) (100,827 ) (121,876 ) (187,978 ) Total Segment $ 306,904 $ 293,834 $ 653,168 $ 617,865 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Performance Revenues GAAP Incentive Fees $ 15,300 $ 21,915 $ 27,461 $ 34,047 Investment Income - Realized Performance Allocations 101,910 332,520 269,440 574,895 GAAP 117,210 354,435 296,901 608,942 Total Segment Less: Fee Related Performance Revenues (15,033 ) (13,624 ) (27,499 ) (21,403 ) Segment Adjustment (b) — 575 8 616 Total Segment $ 102,177 $ 341,386 $ 269,410 $ 588,155 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Performance Compensation GAAP Incentive Fee Compensation $ 8,432 $ 8,886 $ 14,954 $ 14,292 Realized Performance Allocation Compensation 38,569 125,825 110,992 212,220 GAAP 47,001 134,711 125,946 226,512 Total Segment Less: Fee Related Performance Compensation (7,078 ) (6,365 ) (12,583 ) (9,858 ) Less: Equity-Based Compensation - Performance Compensation (2,136 ) (2,880 ) (4,274 ) (5,948 ) Total Segment $ 37,787 $ 125,466 $ 109,089 $ 210,706 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Principal Investment Income GAAP $ 61,102 $ 145,040 $ 109,797 $ 218,301 Segment Adjustment (e) (42,164 ) (21,483 ) (70,569 ) (68,836 ) Total Segment $ 18,938 $ 123,557 $ 39,228 $ 149,465 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 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events | 19. Subsequent Events There have been no events since June 30, 2020 that require recognition or disclosure in the Condensed Consolidated Financial Statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Form 10-Q. condensed consolidated financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. See “— COVID-19 Form 10-K The condensed consolidated financial statements include the accounts of Blackstone, its wholly owned or majority All intercompany balances and transactions have been eliminated in consolidation. Restructurings within consolidated CLOs are treated as investment purchases or sales, as applicable, in the Condensed Consolidated Statements of Cash Flows. COVID-19 The ongoing COVID-19 non-essential COVID-19 |
Consolidation | Consolidation Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive kick-out non-controlling In addition, Blackstone consolidates all variable interest entities (“VIE”) in which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone, affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly. Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Condensed Consolidated Statements of Financial Condition. Blackstone’s other disclosures regarding VIEs are discussed in Note 9. “Variable Interest Entities”. |
Revenue Recognition | Revenue Recognition Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other. Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 18. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers. Management and Advisory Fees, Net Blackstone earns base management fees from limited partners of funds in each of its managed funds, at a fixed percentage of assets under management, net asset value, total assets, committed capital or invested capital. These customer contracts require Blackstone to provide investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid. Transaction, advisory and other fees are principally fees charged to the limited partners of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the limited partners to Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management services to the limited partners of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed. Management fee offsets are reductions to management fees payable by the limited partners of the Blackstone Funds, which are based on the amount such limited partners reimburse the Blackstone Funds or Blackstone primarily for placement fees. Providing investment management services requires Blackstone to arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the limited partners of funds, it presents the cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the limited partners of the funds recorded as Management and Advisory Fees, Net. In cases where the limited partners of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract. Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the Consolidated Statements of Financial Condition and amortization is recorded within General, Administrative and Other within the Consolidated Statements of Operations. Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Accounts Receivable or Due from Affiliates in the Condensed Consolidated Statements of Financial Condition. Incentive Fees Investment Income (Loss) In carry fund structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its pro-rata “pro-rata pro-rata Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a preferred return to limited partners. At the end of each reporting period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Condensed Consolidated Statements of Financial Condition. Performance Allocations are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and non-controlling the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, including certain Blackstone real estate funds, multi-asset class investment funds and credit-focused funds, which may have an interim clawback liability. Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive pro-rata Interest and Dividend Revenue Other Revenue |
Fair Value of Financial Instruments | Fair Value of Financial Instruments GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows: ● Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. ● Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter ● Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment over-the-counter In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. Level II Valuation Techniques Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, including certain corporate loans and bonds held by Blackstone’s consolidated CLO vehicles and debt securities sold, not yet purchased. Certain equity securities and derivative instruments valued using observable inputs are also classified as Level II. The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows: ● Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. ● Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. ● Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. Level III Valuation Techniques In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for non-performance Real Estate Investments – Private Equity Investments – derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Credit-Focused Investments The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring. |
Investments, at Fair Value | Investments, at Fair Value The Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Accounting and Auditing Guide, Investment Companies Blackstone’s principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Condensed Consolidated Statements of Operations within Investment Income (Loss). For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments and certain investments in private debt securities that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate, credit-focused and funds of hedge funds investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue. Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures the liabilities of consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial result of this measurement alternative, there is no attribution of amounts to Non-Controlling non-consolidated Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. Further disclosure on instruments for which the fair value option has been elected is presented in Note 7. “Fair Value Option”. The investments of consolidated Blackstone Funds in funds of hedge funds (“Investee Funds”) are valued at net asset value (“NAV”) per share of the Investee Fund. In limited circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP. Certain investments of Blackstone and of the consolidated Blackstone funds of hedge funds and credit-focused funds measure their investments in underlying funds at fair value using NAV per share without adjustment. The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, Security and loan transactions are recorded on a trade date basis. |
Equity Method Investments | Equity Method Investments Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which include both a proportionate and disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Condensed Consolidated Statements of Operations. In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with carry funds that include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Condensed Consolidated Statements of Financial Condition. Results for Strategic Partners are reported on a three month lag from the 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. Therefore, results presented herein do not include the impact of economic and market activity in the quarter in which such events occur. Economic and market activity for the periods presented is expected to affect reported results in upcoming periods. |
Compensation and Benefits | Compensation and Benefits Compensation and Benefits Compensation Compensation and Benefits — Incentive Fee Compensation — Compensation and Benefits — Performance Allocations Compensation — in-kind). |
Non-Controlling Interests in Consolidated Entities | Non-Controlling Non-Controlling non-controlling non-controlling |
Redeemable Non-Controlling Interests in Consolidated Entities | Redeemable Non-Controlling Non-controlling Non-Controlling non-controlling Non-Controlling |
Non-Controlling Interests in Blackstone Holdings | Non-Controlling Non-Controlling Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to Non-Controlling |
Net Income (Loss) Per Common Unit | Net Income (Loss) Per Share of Class A Common Stock Basic Income (Loss) Per Share of Class A Common Stock is calculated by dividing Net Income (Loss) Attributable to The Blackstone Group Inc. by the weighted-average number of Class A common stock, unvested participating shares of Class A common stock outstanding for the period and vested deferred restricted shares of Class A common stock that have been earned for which issuance of the related shares of Class A common stock is deferred until future periods. Diluted Income (Loss) Per Share of Class A Common Stock reflects the impact of all dilutive securities. Unvested participating shares of Class A common stock are excluded from the computation in periods of loss as they are not contractually obligated to share in losses. Blackstone applies the treasury stock method to determine the dilutive weighted-average common units outstanding for certain equity-based compensation awards. Blackstone applies the “if-converted” |
Reverse Repurchase and Repurchase Agreements | Reverse Repurchase and Repurchase Agreements Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), comprised primarily of U.S. and non-U.S. Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are discussed in Note 10. “Repurchase Agreements”. Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Condensed Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities”. |
Securities Sold, Not Yet Purchased | Securities Sold, Not Yet Purchased Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short. Securities Sold, Not Yet Purchased are recorded at fair value in the Condensed Consolidated Statements of Financial Condition. |
Derivative Instruments | Derivative Instruments Blackstone recognizes all derivatives as assets or liabilities on its Condensed Consolidated Statements of Financial Condition at fair value. On the date Blackstone enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”). Gains or losses on a derivative instrument that is designated as, and is effective as, an economic hedge of a net investment in a foreign operation are reported in the cumulative translation adjustment section of other comprehensive income to the extent it is effective as a hedge. The ineffective portion of a net investment hedge is recognized in current period earnings. Blackstone formally documents at inception its hedge relationships, including identification of the hedging instruments and the hedged items, its risk management objectives, strategy for undertaking the hedge transaction and Blackstone’s evaluation of effectiveness of its hedged transaction. At least monthly, Blackstone also formally assesses whether the derivative it designated in each hedging relationship is expected to be, and has been, highly effective in offsetting changes in estimated fair values or cash flows of the hedged items using either the regression analysis or the dollar offset method. For net investment hedges, Blackstone uses a method based on changes in spot rates to measure effectiveness. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued. The fair values of hedging derivative instruments are reflected within Other Assets in the Condensed Consolidated Statements of Financial Condition. For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains from Fund Investment Activities or, where derivative instruments are held by Blackstone, within Investment Income (Loss) in the Condensed Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Condensed Consolidated Statements of Financial Condition. Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Condensed Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations. Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 6. “Derivative Financial Instruments”. Blackstone’s disclosures regarding offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities”. |
Affiliates | Affiliates Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the Portfolio Companies to be affiliates. |
Dividends | Dividends Dividends are reflected in the condensed consolidated financial statements when declared. |
Recent Accounting Developments | Recent Accounting Developments In June 2016, the FASB issued amended guidance on how to measure credit losses for most financial assets. The guidance was effective for Blackstone on January 1, 2020 and was adopted on a modified retrospective basis. The guidance requires entities to recognize their estimate of lifetime expected credit losses based on reasonable and supportable forecasts, current conditions, and historical experience. Adoption did not have a material impact on Blackstone’s condensed consolidated financial statements. |
Intangible Asset (Tables)
Intangible Asset (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Intangible Assets, Net | Intangible Assets, Net consists of the following: June 30, December 31, 2020 2019 Finite-Lived Intangible Assets/Contractual Rights $ 1,712,576 $ 1,712,576 Accumulated Amortization (1,350,568) (1,315,068) Intangible Assets, Net $ 362,008 $ 397,508 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments | Investments consist of the following: June 30, December 31, 2020 2019 Investments of Consolidated Blackstone Funds $ 7,943,531 $ 8,380,698 Equity Method Investments Partnership Investments 3,873,346 4,035,675 Accrued Performance Allocations 4,715,510 7,180,449 Corporate Treasury Investments 2,205,843 2,419,587 Other Investments 235,143 265,273 $ 18,973,373 $ 22,281,682 |
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities in the Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Gains (Losses) $ (61,698 ) $ 5,198 $ (134,972 ) $ 2,286 Net Change in Unrealized Gains (Losses) 216,552 6,257 (116,790 ) 112,260 Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds 154,854 11,455 (251,762 ) 114,546 Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds 3,443 49,676 82,685 76,910 Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities $ 158,297 $ 61,131 $ (169,077 ) $ 191,456 |
Performance Fees Allocated to Funds | Accrued Performance Allocations to Blackstone were as follows: Real Private Hedge Fund Credit & Estate Equity Solutions Insurance Total Accrued Performance Allocations, December 31, 2019 $ 3,639,855 $ 3,063,149 $ 23,951 $ 453,494 $ 7,180,449 Performance Allocations as a Result (1,004,794 ) (710,814 ) 22,928 (348,197 ) (2,040,877 ) Foreign Exchange Loss (6,476 ) — — — (6,476 ) Fund Distributions (233,683 ) (157,281 ) (7,782 ) (18,840 ) (417,586 ) Accrued Performance Allocations, $ 2,394,902 $ 2,195,054 $ 39,097 $ 86,457 $ 4,715,510 |
Realized and Net Change in Unrealized Gains (Losses) on Investments | The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Realized Gains (Losses) $ (4,273 ) $ 22,983 $ (1,756 ) $ 23,300 Net Change in Unrealized Gains (Losses) 114,990 558 (143,397 ) 49,217 $ 110,717 $ 23,541 $ (145,153 ) $ 72,517 |
Realized and Net Change in Unrealized Gains in Other Investments | The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Realized Gains $ 6,348 $ 21,491 $ 13,333 $ 45,727 Net Change in Unrealized Gains (Losses) 26,573 (3,933 ) (73,364 ) 6,789 $ 32,921 $ 17,558 $ (60,031 ) $ 52,516 |
Net Asset Value as Fair Value (
Net Asset Value as Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments | A summary of fair value by strategy type alongside the remaining unfunded commitments and ability to redeem such investments as of June 30, 2020 is presented below: Redemption Unfunded Frequency Redemption Strategy Fair Value Commitments (if currently eligible) Notice Period Diversified Instruments $ 218,522 $ — (a) (a) Credit Driven 64,518 — (b) (b) Equity 1,051 — (c) (c) Commodities 1,007 — (d) (d) $ 285,098 $ — (a) Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing 1% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. The remaining 99% of investments in this category are redeemable as of the reporting date. (b) The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing 19% of the fair value of the investments in this category are in liquidation. The remaining 81% of investments in this category are redeemable as of the reporting date. (c) The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 100% of the fair value of the investments in this category are in liquidation. As of the reporting date, the investee fund manager had elected to side-pocket 74% of Blackstone’s investments in the category. (d) The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing 100% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments | The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts. June 30, 2020 December 31, 2019 Assets Liabilities Assets Liabilities Fair Fair Fair Fair Notional Value Notional Value Notional Value Notional Value Freestanding Derivatives Blackstone Interest Rate Contracts $ 989,013 $ 168,122 $ 496,200 $ 43,216 $ 1,256,287 $ 53,129 $ 165,852 $ 4,895 Foreign Currency Contracts 387,286 5,755 51,647 577 344,422 1,231 97,626 802 Credit Default Swaps 2,706 535 9,158 2,009 7,617 36 16,697 197 Investments of Consolidated Blackstone Funds Foreign Currency Contracts 25,643 173 68,313 2,243 106,906 307 40,110 1,167 Interest Rate Contracts — — 19,000 2,052 — — 33,000 1,728 Credit Default Swaps 13,722 1,889 35,850 2,098 5,108 58 47,405 960 Total Return Swaps — — 23,207 4,543 4,558 21 27,334 464 Other — — — — 1 4 1 2 $ 1,418,370 $ 176,474 $ 703,375 $ 56,738 $ 1,724,899 $ 54,786 $ 428,025 $ 10,215 |
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations | The table below summarizes the impact to the Condensed Consolidated Statements of Operations from derivative financial instruments: Three Months Ended Six Months Ended 2020 2019 2020 2019 Freestanding Derivatives Realized Gains (Losses) Interest Rate Contracts $ (2,613 ) $ (416 ) $ (7,914 ) $ (2,664 ) Foreign Currency Contracts 8,567 (1,526 ) (5,140 ) 146 Credit Default Swaps (13 ) 881 (112 ) 1,991 Total Return Swaps (782 ) (275 ) (1,531 ) (395 ) Other — (124 ) (38 ) (132 ) $ 5,159 $ (1,460 ) $ (14,735 ) $ (1,054 ) Net Change in Unrealized Gains (Losses) Interest Rate Contracts $ (27,963 ) $ (2,892 ) $ 80,335 $ (11,155 ) Foreign Currency Contracts (8,258 ) 1,773 3,587 209 Credit Default Swaps 18 (294 ) (1,371 ) 3,647 Total Return Swaps 877 393 (4,099 ) 1,371 Other — 115 36 65 $ (35,326 ) $ (905 ) $ 78,488 $ (5,863 ) |
Fair Value Option (Tables)
Fair Value Option (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Financial Instruments for Which Fair Value Option Has Been Elected | The following table summarizes the financial instruments for which the fair value option has been elected: June 30, December 31, 2020 2019 Assets Loans and Receivables $ 162,368 $ 500,751 Equity and Preferred Securities 480,199 432,472 Debt Securities 471,158 506,924 Assets of Consolidated CLO Vehicles Corporate Loans 6,518,669 6,801,691 Other 313 770 $ 7,632,707 $ 8,242,608 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes Loans Payable $ 6,232,695 $ 6,455,016 Due to Affiliates 78,719 57,717 Subordinated Notes Loans Payable — 24,738 Due to Affiliates 15,226 20,535 Corporate Treasury Commitments 2,030 — $ 6,328,670 $ 6,558,006 |
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected | The following tables present the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected: Three Months Ended June 30, 2020 2019 Net Change Net Change Realized in Unrealized Realized in Unrealized Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Assets Loans and Receivables $ (2,249 ) $ 13,101 $ (747 ) $ (1,897 ) Equity and Preferred Securities — 59,612 9,907 (67 ) Debt Securities (9,487 ) 60,988 (3,325 ) 1,817 Assets of Consolidated CLO Vehicles Corporate Loans (52,293 ) 538,367 (10,549 ) (18,025 ) Other — — — 350 $ (64,029 ) $ 672,068 $ (4,714 ) $ (17,822 ) Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ (495,059 ) $ — $ 6,667 Subordinated Notes — 73,504 — 15,163 Corporate Treasury Commitments — (2,030 ) — — $ — $ (423,585 ) $ — $ 21,830 Six Months Ended June 30, 2020 2019 Net Change Net Change Realized in Unrealized Realized in Unrealized Gains (Losses) Gains (Losses) Gains (Losses) Gains (Losses) Assets Loans and Receivables $ (5,770 ) $ (268 ) $ (1,831 ) $ (2,657 ) Equity and Preferred Securities (342 ) (103,747 ) 9,908 22,298 Debt Securities (21,103 ) (9,129 ) (3,360 ) 16,749 Assets of Consolidated CLO Vehicles Corporate Loans (96,194 ) (226,542 ) (14,400 ) 161,777 Other — (325 ) — 350 $ (123,409 ) $ (340,011 ) $ (9,683 ) $ 198,517 Liabilities Liabilities of Consolidated CLO Vehicles Senior Secured Notes $ — $ 199,445 $ — $ (44,893 ) Subordinated Notes — 30,046 — (50,981 ) Corporate Treasury Commitments — (2,030 ) — — $ — $ 227,461 $ — $ (95,874 ) |
Information for Financial Instruments on Which Fair Value Option was Elected | The following table presents information for those financial instruments for which the fair value option was elected: June 30, 2020 December 31, 2019 For Financial Assets For Financial Assets Past Due (a) Past Due (a) (Deficiency) (Deficiency) Excess Excess of Fair Value Fair of Fair Value of Fair Value Fair of Fair Value Over Principal Over Principal Over Principal Value Over Principal Loans and Receivables $ (5,616 ) $ — $ — $ (3,875 ) $ — $ — Debt Securities (24,588 ) — — (14,667 ) — — Assets of Consolidated CLO Vehicles Corporate Loans (496,820 ) 21,604 (11,431 ) (234,430 ) — — Other (325 ) — — 133 — — $ (527,349 ) $ 21,604 $ (11,431 ) $ (252,839 ) $ — $ — (a) Corporate Loans within CLO assets are classified as past due if contractual payments are more than one day past due. |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Assets and Liabilities at Fair Value | The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy: June 30, 2020 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents $ 349,197 $ — $ — $ — $ 349,197 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 13,149 13,149 Equity Securities, Partnerships and LLC Interests 38,917 55,704 677,772 — 772,393 Debt Instruments — 570,935 66,010 — 636,945 Freestanding Derivatives — 2,062 — — 2,062 Assets of Consolidated CLO Vehicles — 6,047,390 471,592 — 6,518,982 Total Investments of Consolidated Blackstone Funds 38,917 6,676,091 1,215,374 13,149 7,943,531 Corporate Treasury Investments 572,312 1,335,989 29,768 267,774 2,205,843 Other Investments 157,552 — 3,929 4,175 165,656 Total Investments 768,781 8,012,080 1,249,071 285,098 10,315,030 Accounts Receivable - Loans and Receivables — — 162,368 — 162,368 Other Assets - Freestanding Derivatives 47 174,365 — — 174,412 $ 1,118,025 $ 8,186,445 $ 1,411,439 $ 285,098 $ 11,001,007 Liabilities Loans Payable - Liabilities of Consolidated CLO Vehicles (a)(b) $ — $ 6,232,695 $ — $ — $ 6,232,695 Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a)(b) — 93,945 — — 93,945 Securities Sold, Not Yet Purchased 9,395 42,000 — — 51,395 Accounts Payable, Accrued Expenses and Other Liabilities Consolidated Blackstone Funds - Freestanding Derivatives (a) — 10,936 — — 10,936 Freestanding Derivatives 518 45,284 — — 45,802 Corporate Treasury Commitments (c) — — 2,030 — 2,030 Total Accounts Payable, Accrued Expenses and Other Liabilities 518 56,220 2,030 — 58,768 $ 9,913 $ 6,424,860 $ 2,030 $ — $ 6,436,803 December 31, 2019 Level I Level II Level III NAV Total Assets Cash and Cash Equivalents $ 456,784 $ — $ — $ — $ 456,784 Investments Investments of Consolidated Blackstone Funds (a) Investment Funds — — — 23,647 23,647 Equity Securities, Partnerships and LLC Interests 31,812 53,611 674,150 — 759,573 Debt Instruments — 715,246 79,381 — 794,627 Freestanding Derivatives — 390 — — 390 Assets of Consolidated CLO Vehicles — 6,505,720 296,741 — 6,802,461 Total Investments of Consolidated Blackstone Funds 31,812 7,274,967 1,050,272 23,647 8,380,698 Corporate Treasury Investments 726,638 1,385,582 29,289 278,078 2,419,587 Other Investments 200,478 — — 7,126 207,604 Total Investments 958,928 8,660,549 1,079,561 308,851 11,007,889 Accounts Receivable - Loans and Receivables — — 500,751 — 500,751 Other Assets - Freestanding Derivatives 502 53,894 — — 54,396 $ 1,416,214 $ 8,714,443 $ 1,580,312 $ 308,851 $ 12,019,820 Liabilities Loans Payable - Liabilities of Consolidated CLO Vehicles (a)(b) $ — $ 6,479,754 $ — $ — $ 6,479,754 Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a)(b) — 78,252 — — 78,252 Securities Sold, Not Yet Purchased 19,977 55,569 — — 75,546 Accounts Payable, Accrued Expenses and Other Liabilities Consolidated Blackstone Funds - Freestanding Derivatives (a) — 4,321 — — 4,321 Freestanding Derivatives 150 5,744 — — 5,894 Total Accounts Payable, Accrued Expenses and Other Liabilities 150 10,065 — — 10,215 $ 20,127 $ 6,623,640 $ — $ — $ 6,643,767 LLC Limited Liability Company. (a) Pursuant to GAAP consolidation guidance, Blackstone is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles and other funds in which a consolidated entity of Blackstone, such as the general partner of the fund, has a controlling financial interest. While Blackstone is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, Blackstone has no ability to utilize the assets of these funds and there is no recourse to Blackstone for their liabilities since these are client assets and liabilities. (b) Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. (c) Corporate Treasury Commitments are measured using third party pricing |
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy | The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of June 30, 2020: Fair Value Valuation Unobservable Ranges Weighted- Impact to Financial Assets Investments of Consolidated Blackstone Funds Equity Securities, Partnership and LLC Interests $ 677,772 Discounted Cash Flows Discount Rate 0.8 % - % 11.0 % Lower Exit Multiple - EBITDA 3.5 x - 18.6 x 12.0 x Higher Exit Capitalization Rate 2.0 % - % 5.5 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Debt Instruments 66,010 Discounted Cash Flows Discount Rate 6.8 % - % 10.0 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Assets of Consolidated CLO Vehicles 471,592 Third Party Pricing N/A Total Investments of Consolidated Blackstone Funds 1,215,374 Corporate Treasury Investments 29,768 Discounted Cash Flows Discount Rate 4.0 % - % 7.7 % Lower Third Party Pricing N/A Loans and Receivables 162,368 Discounted Cash Flows Discount Rate 7.2 % - % 8.1 % Lower Third Party Pricing N/A Other Investments 3,929 Transaction Price N/A $ 1,411,439 The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2019: Fair Value Valuation Unobservable Ranges Weighted- Impact to Financial Assets Investments of Consolidated Blackstone Funds Equity Securities, Partnership and LLC Interests $ 674,150 Discounted Cash Flows Discount Rate 0.9 % - 40.2 % 10.6 % Lower Exit Multiple - EBITDA 0.1 x - 17.0 x 9.7 x Higher Exit Capitalization Rate 2.0 % - 27.0 % 5.9 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Debt Instruments 79,381 Discounted Cash Flows Discount Rate 7.1 % - 58.2 % 12.1 % Lower Third Party Pricing N/A Transaction Price N/A Other N/A Assets of Consolidated CLO Vehicles 296,741 Third Party Pricing N/A Total Investments of Consolidated Blackstone Funds 1,050,272 Corporate Treasury Investments 29,289 Discounted Cash Flows Discount Rate 3.2 % - 7.1 % 5.7 % Lower Market Comparable Companies EBITDA Multiple 6.2 x - 8.8 x 8.1 x Higher Third Party Pricing N/A Loans and Receivables 500,751 Discounted Cash Flows Discount Rate 5.2 % - 9.8 % 7.7 % Lower Transaction Price N/A $ 1,580,312 N/A Not applicable. EBITDA Earnings before interest, taxes, depreciation and amortization. Exit Multiple Ranges include the last twelve months EBITDA and forward EBITDA multiples. Third Party Pricing Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. Transaction Price Includes recent acquisitions or transactions. (a) Unobservable inputs were weighted based on the fair value of the investments included in the range. |
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used | The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains from Fund Investment Activities in the Condensed Consolidated Statements of Operations. Level III Financial Assets at Fair Value Three Months Ended June 30, 2020 2019 Investments Investments of Loans Other of Loans Other Consolidated and Investments Consolidated and Investments Funds Receivables (a) Total Funds Receivables (a) Total Balance, Beginning of Period $ 1,014,098 $ 218,115 $ 47,909 $ 1,280,122 $ 1,243,800 $ 208,226 $ 59,133 $ 1,511,159 Transfer Into Level III (b) 316,551 — 8,402 324,953 149,275 — 3,986 153,261 Transfer Out of Level III (b) (200,964 ) — (16,850 ) (217,814 ) (294,612 ) — (14,557 ) (309,169 ) Purchases 125,218 7,160 4,559 136,937 112,757 198,482 5,251 316,490 Sales (51,971 ) (75,689 ) (7,626 ) (135,286 ) (84,525 ) (218,148 ) (5,270 ) (307,943 ) Settlements — (1,637 ) — (1,637 ) — (3,038 ) — (3,038 ) Changes in Gains Included in Earnings 12,442 14,419 (2,697 ) 24,164 13,401 2,309 509 16,219 Balance, End of Period $ 1,215,374 $ 162,368 $ 33,697 $ 1,411,439 $ 1,140,096 $ 187,831 $ 49,052 $ 1,376,979 Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date $ (27,616 ) $ 9,521 $ (7,782 ) $ (25,877 ) $ (2,162 ) $ (1,898 ) $ 135 $ (3,925 ) Level III Financial Assets at Fair Value Six Months Ended June 30, 2020 2019 Investments Investments of Loans Other of Loans Other Consolidated and Investments Consolidated and Investments Funds Receivables (a) Total Funds Receivables (a) Total Balance, Beginning of Period $ 1,050,272 $ 500,751 $ 29,289 $ 1,580,312 $ 1,364,016 $ 304,173 $ 56,185 $ 1,724,374 Transfer Into Level III (b) 282,400 — 25,001 307,401 106,644 — 12,935 119,579 Transfer Out of Level III (b) (147,510 ) — (18,875 ) (166,385 ) (400,402 ) — (27,170 ) (427,572 ) Purchases 226,824 170,899 5,771 403,494 179,305 270,772 12,820 462,897 Sales (111,580 ) (506,881 ) (12,665 ) (631,126 ) (145,097 ) (383,816 ) (6,141 ) (535,054 ) Settlements — (3,650 ) — (3,650 ) — (10,189 ) — (10,189 ) Changes in Gains Included in Earnings (85,032 ) 1,249 5,176 (78,607 ) 35,630 6,891 423 42,944 Balance, End of Period $ 1,215,374 $ 162,368 $ 33,697 $ 1,411,439 $ 1,140,096 $ 187,831 $ 49,052 $ 1,376,979 Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date $ (97,403 ) $ 4,940 $ (123 ) $ (92,586 ) $ 25,821 $ (2,657 ) $ 315 $ 23,479 (a) Represents corporate treasury investments and Other Investments. (b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Maximum Exposure to Loss Relating to Non-Consolidated VIEs | Blackstone’s maximum exposure to loss relating to non-consolidated June 30, December 31, 2020 2019 Investments $ 868,579 $ 1,216,932 Due from Affiliates 197,570 143,949 Potential Clawback Obligation 39,271 109,240 Maximum Exposure to Loss $ 1,105,420 $ 1,470,121 Amounts Due to Non-Consolidated $ 313 $ 231 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged | The following tables provide information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged: June 30, 2020 Remaining Contractual Maturity of the Overnight Greater and Up to 30 - 90 than Continuous 30 Days Days 90 days Total Repurchase Agreements Asset-Backed Securities $ — $ 10,634 $ 40,780 $ 29,206 $ 80,620 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” $ 80,620 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” $ — December 31, 2019 Remaining Contractual Maturity of the Agreements Overnight Greater and Up to 30 - 90 than Continuous 30 Days Days 90 days Total Repurchase Agreements Asset-Backed Securities $ — $ 42,459 $ 88,868 $ 22,791 $ 154,118 Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” $ 154,118 Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” $ — |
Offsetting of Assets And Liab_2
Offsetting of Assets And Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Offsetting of Assets | June 30, 2020 Gross and Net Amounts of Gross Amounts Not Offset Assets Presented in the Statement of in the Statement Financial Condition of Financial Financial Cash Collateral Condition Instruments (a) Received Net Amount Assets Freestanding Derivatives $ 176,474 $ 36,148 $ 72,895 $ 67,431 December 31, 2019 Gross and Net Amounts of Gross Amounts Not Offset Assets Presented in the Statement of in the Statement Financial Condition of Financial Financial Cash Collateral Condition Instruments (a) Received Net Amount Assets Freestanding Derivatives $ 54,479 $ 380 $ — $ 54,099 |
Offsetting of Liabilities | June 30, 2020 Gross and Net Amounts of Liabilities Gross Amounts Not Offset Presented in the in the Statement of Statement of Financial Condition Financial Financial Cash Collateral Condition Instruments (a) Pledged Net Amount Liabilities Freestanding Derivatives $ 55,001 $ 36,148 $ 18,123 $ 730 Repurchase Agreements 80,620 80,620 — — $ 135,621 $ 116,768 $ 18,123 $ 730 December 31, 2019 Gross and Net Amounts of Liabilities Gross Amounts Not Offset Presented in the in the Statement of Statement of Financial Condition Financial Financial Cash Collateral Condition Instruments (a) Pledged Net Amount Liabilities Freestanding Derivatives $ 10,215 $ 380 $ 9,198 $ 637 Repurchase Agreements 154,118 154,118 — — $ 164,333 $ 154,498 $ 9,198 $ 637 (a) Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. |
Other Assets | June 30, December 31, 2020 2019 Furniture, Equipment and Leasehold Improvements, Net $ 164,516 $ 154,482 Prepaid Expenses 144,823 159,333 Freestanding Derivatives 174,412 54,396 Other 17,600 14,282 $ 501,351 $ 382,493 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Carrying Value and Fair Value of Blackstone Issued Notes | The following table presents the general characteristics of each of our notes, as well as their carrying value and fair value. The notes are included in Loans Payable within the Condensed Consolidated Statements of Financial Condition. All of the notes were issued at a discount. All of the notes accrue interest from the issue date thereof and all pay interest in arrears on a semi-annual basis or annual basis. June 30, 2020 December 31, 2019 Carrying Fair Carrying Fair Senior Notes Value Value (a) Value Value (a) 4.750%, Due 2/15/2023 $ 396,809 $ 438,960 $ 396,247 $ 429,280 2.000%, Due 5/19/2025 333,264 357,140 332,393 365,521 1.000%, Due 10/5/2026 666,153 684,959 664,229 691,012 3.150%, Due 10/2/2027 297,215 320,250 297,046 309,540 1.500%, Due 4/10/2029 668,937 718,392 667,425 708,841 2.500%, Due 1/10/2030 490,268 520,850 489,841 493,500 6.250%, Due 8/15/2042 238,551 352,375 238,437 338,200 5.000%, Due 6/15/2044 489,083 620,150 488,968 606,700 4.450%, Due 7/15/2045 344,219 411,110 344,157 396,235 4.000%, Due 10/2/2047 290,437 336,690 290,344 321,780 3.500%, Due 9/10/2049 391,845 421,840 391,769 399,961 $ 4,606,781 $ 5,182,716 $ 4,600,856 $ 5,060,570 (a) Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
Partnership's Borrowings Through Consolidated CLO Vehicles | Borrowings through the consolidated CLO vehicles consisted of the following: June 30, 2020 December 31, 2019 Weighted- Weighted- Average Average Effective Remaining Effective Remaining Borrowing Interest Maturity in Borrowing Interest Maturity in Outstanding Rate Years (a) Outstanding Rate Years (a) Senior Secured Notes $ 6,525,925 2.74% 6.1 $ 6,527,800 3.55% 3.5 Subordinated Notes 325,735 (b) N/A 331,735 (b) N/A $ 6,851,660 $ 6,859,535 (a) Weighted-Average Remaining Maturity in Years for Senior Secured Notes includes consideration of pre-payment options. (b) The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Components of Senior Secured Notes and Subordinated Notes | Senior Secured Notes and Subordinated Notes comprise the following amounts: June 30, 2020 December 31, 2019 Amounts Due to Non- Amounts Due to Non- Consolidated Affiliates Consolidated Affiliates Borrowing Borrowing Fair Value Outstanding Fair Value Fair Value Outstanding Fair Value Senior Secured Notes $ 6,311,414 $ 78,800 $ 78,719 $ 6,512,733 $ 57,750 $ 57,717 Subordinated Notes 15,226 44,734 15,226 45,273 44,734 20,535 $ 6,326,640 $ 123,534 $ 93,945 $ 6,558,006 $ 102,484 $ 78,252 |
Scheduled Principal Payments for Borrowings | Scheduled principal payments for borrowings as of June 30, 2020 were as follows: Blackstone Fund Operating Facilities/CLO Total Borrowings Vehicles Borrowings 2020 $ — $ 92 $ 92 2021 — — — 2022 — — — 2023 400,000 — 400,000 2024 — — — Thereafter 4,285,100 6,851,660 11,136,760 $ 4,685,100 $ 6,851,752 $ 11,536,852 |
Earnings Per Share and Stockh_2
Earnings Per Share and Stockholder's Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Basic and Diluted Net Income Per Common Stock | Basic and diluted net income per share of Class A common stock for the three and six months ended June 30, 2020 and 2019 was calculated as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Net Income (Loss) for Per Share of Class A Common Stock Calculations Net Income (Loss) Attributable to The Blackstone Group Inc., Basic $ 568,266 $ 305,792 $ (498,226 ) $ 787,096 Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units 405,459 — — 610,101 Net Income (Loss) Attributable to The Blackstone Group Inc., Diluted $ 973,725 $ 305,792 $ (498,226 ) $ 1,397,197 Shares/Units Outstanding Weighted-Average Shares of Class A Common Stock Outstanding, Basic 698,534,168 673,655,305 677,041,769 674,079,074 Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock 123,340 330,639 — 269,196 Weighted-Average Blackstone Holdings Partnership Units 505,754,449 — — 526,244,006 Weighted-Average Shares of Class A Common Stock Outstanding, Diluted 1,204,411,957 673,985,944 677,041,769 1,200,592,276 Net Income (Loss) Per Share of Class A Common Stock Basic $ 0.81 $ 0.45 $ (0.74 ) $ 1.17 Diluted $ 0.81 $ 0.45 $ (0.74 ) $ 1.16 Dividends Declared Per Share of Class A Common Stock (a) $ 0.39 $ 0.37 $ 1.00 $ 0.95 (a) Dividends declared reflects the calendar date of the declaration for each dividend. |
Summary of Anti-Dilutive Securities | The following table summarizes the anti-dilutive securities for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended 2020 2019 2020 2019 Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock — — 15,672,449 — Weighted-Average Blackstone Holdings Partnership Units — 526,721,409 508,487,300 — |
Schedule of Shares Eligible For Dividends and Distribution | As of June 30, 2020, the total shares of Class A common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and distributions were as follows: Shares/Units Class A Common Stock Outstanding 676,874,583 Unvested Participating Common Stock 20,722,453 Total Participating Common Stock 697,597,036 Participating Blackstone Holdings Partnership Units 504,912,855 1,202,509,891 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Status of Partnership's Unvested Equity-Based Awards | A summary of the status of Blackstone’s unvested equity-based awards as of June 30, 2020 and of changes during the period January 1, 2020 through June 30, 2020 is presented below: Blackstone Holdings The Blackstone Group Inc. Equity Settled Awards Cash Settled Awards Weighted- Deferred Weighted- Weighted- Average Restricted Shares Average Average Partnership Grant Date of Class A Grant Date Phantom Grant Date Unvested Shares/Units Units Fair Value Common Stock Fair Value Shares Fair Value Balance, December 31, 2019 32,159,218 $ 36.25 8,969,736 $ 35.26 51,341 $ 52.85 Granted — — 13,764,902 44.89 21,189 56.95 Vested (4,020,702 ) 40.22 (2,096,231 ) 34.34 (485 ) 56.03 Forfeited (97,316 ) 35.65 (450,917 ) 38.07 — — Balance, June 30, 2020 28,041,200 $ 36.54 20,187,490 $ 41.54 72,045 $ 57.17 |
Unvested Shares and Units, After Expected Forfeitures | The following unvested shares and units, after expected forfeitures, as of June 30, 2020, are expected to vest: Weighted- Average Service Period Shares/Units in Years Blackstone Holdings Partnership Units 24,690,441 2.8 Deferred Restricted Shares of Class A Common Stock 16,833,076 3.5 Total Equity-Based Awards 41,523,517 3.1 Phantom Shares 57,559 3.0 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Due from Affiliates and Due to Affiliates | Due from Affiliates and Due to Affiliates consisted of the following: June 30, December 31, 2020 2019 Due from Affiliates Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated $ 1,933,376 $ 1,999,568 Due from Certain Non-Controlling 460,552 573,679 Accrual for Potential Clawback of Previously Distributed Performance Allocations 37,584 21,626 $ 2,431,512 $ 2,594,873 June 30, December 31, 2020 2019 Due to Affiliates Due to Certain Non-Controlling $ 736,656 $ 672,981 Due to Non-Consolidated 162,880 100,286 Due to Note-Holders of Consolidated CLO Vehicles 93,945 78,252 Due to Certain Non-Controlling 80,421 48,433 Accrual for Potential Repayment of Previously Received Performance Allocations 194,669 126,919 $ 1,268,571 $ 1,026,871 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Clawback Obligations by Segment | The following table presents the clawback obligations by segment: June 30, 2020 December 31, 2019 Current and Current and Blackstone Former Blackstone Former Segment Holdings Personnel (a) Total Holdings Personnel (a) Total Real Estate $ 21,042 $ 11,850 $ 32,892 $ 16,151 $ 10,597 $ 26,748 Private Equity 120,993 8,744 129,737 82,276 2,860 85,136 Credit & Insurance 15,050 16,990 32,040 6,866 8,169 15,035 $ 157,085 $ 37,584 $ 194,669 $ 105,293 $ 21,626 $ 126,919 (a) The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Financial Data of Segments | The following tables present the financial data for Blackstone’s four segments for the three months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 382,704 $ 268,070 $ 145,455 $ 145,565 $ 941,794 Transaction, Advisory and Other Fees, Net 32,039 9,521 859 5,873 48,292 Management Fee Offsets (2,436 ) (8,031 ) 4 (2,890 ) (13,353 ) Total Management and Advisory Fees, Net 412,307 269,560 146,318 148,548 976,733 Fee Related Performance Revenues 6,505 — — 8,528 15,033 Fee Related Compensation (116,640 ) (92,825 ) (40,353 ) (57,086 ) (306,904 ) Other Operating Expenses (44,525 ) (44,827 ) (17,807 ) (36,424 ) (143,583 ) Fee Related Earnings 257,647 131,908 88,158 63,566 541,279 Realized Performance Revenues 34,209 64,513 1,482 1,973 102,177 Realized Performance Compensation (12,547 ) (25,016 ) — (224 ) (37,787 ) Realized Principal Investment Income (Loss) 1,573 17,416 (331 ) 280 18,938 Total Net Realizations 23,235 56,913 1,151 2,029 83,328 Total Segment Distributable Earnings $ 280,882 $ 188,821 $ 89,309 $ 65,595 $ 624,607 Three Months Ended June 30, 2019 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 255,636 $ 265,139 $ 136,990 $ 147,550 $ 805,315 Transaction, Advisory and Other Fees, Net 23,990 31,526 723 5,256 61,495 Management Fee Offsets (1,686 ) (17,689 ) — (3,279 ) (22,654 ) Total Management and Advisory Fees, Net 277,940 278,976 137,713 149,527 844,156 Fee Related Performance Revenues 11,072 — — 2,552 13,624 Fee Related Compensation (97,795 ) (105,107 ) (36,622 ) (54,310 ) (293,834 ) Other Operating Expenses (40,114 ) (40,429 ) (21,112 ) (40,466 ) (142,121 ) Fee Related Earnings 151,103 133,440 79,979 57,303 421,825 Realized Performance Revenues 198,573 122,907 11,960 7,946 341,386 Realized Performance Compensation (67,742 ) (52,081 ) (2,175 ) (3,468 ) (125,466 ) Realized Principal Investment Income 47,420 42,906 12,306 20,925 123,557 Total Net Realizations 178,251 113,732 22,091 25,403 339,477 Total Segment Distributable Earnings $ 329,354 $ 247,172 $ 102,070 $ 82,706 $ 761,302 The following tables present the financial data for Blackstone’s four segments as of June 30, 2020 and for the six months ended June 30, 2020 and 2019: June 30, 2020 and the Six Months Then Ended Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 754,142 $ 522,044 $ 285,111 $ 290,893 $ 1,852,190 Transaction, Advisory and Other Fees, Net 55,063 30,934 1,617 11,343 98,957 Management Fee Offsets (10,777 ) (17,246 ) (38 ) (5,786 ) (33,847 ) Total Management and Advisory Fees, Net 798,428 535,732 286,690 296,450 1,917,300 Fee Related Performance Revenues 11,056 — — 16,443 27,499 Fee Related Compensation (236,936 ) (203,193 ) (86,544 ) (126,495 ) (653,168 ) Other Operating Expenses (85,001 ) (85,828 ) (36,474 ) (75,165 ) (282,468 ) Fee Related Earnings 487,547 246,711 163,672 111,233 1,009,163 Realized Performance Revenues 77,929 176,589 3,249 11,643 269,410 Realized Performance Compensation (25,939 ) (79,659 ) (945 ) (2,546 ) (109,089 ) Realized Principal Investment Income (Loss) 8,873 27,763 (940 ) 3,532 39,228 Total Net Realizations 60,863 124,693 1,364 12,629 199,549 Total Segment Distributable Earnings $ 548,410 $ 371,404 $ 165,036 $ 123,862 $ 1,208,712 Segment Assets $ 7,460,667 $ 7,924,981 $ 2,238,985 $ 3,278,666 $ 20,903,299 Six Months Ended June 30, 2019 Real Private Hedge Fund Credit & Total Estate Equity Solutions Insurance Segments Management and Advisory Fees, Net Base Management Fees $ 515,881 $ 484,556 $ 274,318 $ 288,078 $ 1,562,833 Transaction, Advisory and Other Fees, Net 47,901 68,817 1,041 8,886 126,645 Management Fee Offsets (1,966 ) (22,674 ) — (6,620 ) (31,260 ) Total Management and Advisory Fees, Net 561,816 530,699 275,359 290,344 1,658,218 Fee Related Performance Revenues 17,748 — — 3,655 21,403 Fee Related Compensation (212,611 ) (212,694 ) (79,576 ) (112,984 ) (617,865 ) Other Operating Expenses (79,100 ) (74,630 ) (38,997 ) (72,705 ) (265,432 ) Fee Related Earnings 287,853 243,375 156,786 108,310 796,324 Realized Performance Revenues 275,755 279,506 16,051 16,843 588,155 Realized Performance Compensation (97,642 ) (102,637 ) (3,588 ) (6,839 ) (210,706 ) Realized Principal Investment Income 45,289 68,045 12,023 24,108 149,465 Total Net Realizations 223,402 244,914 24,486 34,112 526,914 Total Segment Distributable Earnings $ 511,255 $ 488,289 $ 181,272 $ 142,422 $ 1,323,238 |
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes | The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the three and six months ended June 30, 2020 and 2019 along with Total Assets as of June 30, 2020: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Revenues Total GAAP Revenues $ 2,516,069 $ 1,486,806 $ (559,895 ) $ 3,511,677 Less: Unrealized Performance Revenues (a) (1,067,923 ) (157,398 ) 2,385,523 (821,731 ) Less: Unrealized Principal Investment (Income) (223,316 ) 56,353 393,294 (83,572 ) Less: Interest and Dividend Revenue (c) (26,290 ) (45,991 ) (63,889 ) (92,690 ) Less: Other Revenue (d) 55,606 20,150 (82,545 ) 6,961 Impact of Consolidation (e) (141,599 ) (35,119 ) 179,519 (104,968 ) Amortization of Intangibles (f) 387 387 774 774 Transaction-Related Charges (g) (1,310 ) (4,174 ) (2,140 ) (2,706 ) Intersegment Eliminations 1,257 1,709 2,796 3,496 Total Segment Revenue (h) $ 1,112,881 $ 1,322,723 $ 2,253,437 $ 2,417,241 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Expenses Total GAAP Expenses $ 1,172,681 $ 862,240 $ 534,606 $ 1,903,404 Less: Unrealized Performance Allocations Compensation (i) (454,813 ) (64,518 ) 942,565 (351,533 ) Less: Equity-Based Compensation (j) (89,341 ) (53,105 ) (176,813 ) (119,881 ) Less: Interest Expense (k) (38,924 ) (43,230 ) (80,464 ) (84,868 ) Impact of Consolidation (e) (9,020 ) (14,411 ) (20,479 ) (25,272 ) Amortization of Intangibles (f) (16,096 ) (16,096 ) (32,192 ) (32,192 ) Transaction-Related Charges (g) (77,470 ) (111,168 ) (125,294 ) (199,151 ) Intersegment Eliminations 1,257 1,709 2,796 3,496 Total Segment Expenses (l) $ 488,274 $ 561,421 $ 1,044,725 $ 1,094,003 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Other Income Total GAAP Other Income $ 158,373 $ 61,131 $ (169,596 ) $ 191,456 Impact of Consolidation (e) (158,373 ) (61,131 ) 169,596 (191,456 ) Total Segment Other Income $ — $ — $ — $ — Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Income (Loss) Before Provision (Benefit) for Taxes Total GAAP Income (Loss) Before Provision (Benefit) for Taxes $ 1,501,761 $ 685,697 $ (1,264,097 ) $ 1,799,729 Less: Unrealized Performance Revenues (a) (1,067,923 ) (157,398 ) 2,385,523 (821,731 ) Less: Unrealized Principal Investment (Income) (223,316 ) 56,353 393,294 (83,572 ) Less: Interest and Dividend Revenue (c) (26,290 ) (45,991 ) (63,889 ) (92,690 ) Less: Other Revenue (d) 55,606 20,150 (82,545 ) 6,961 Plus: Unrealized Performance Allocations Compensation (i) 454,813 64,518 (942,565 ) 351,533 Plus: Equity-Based Compensation (j) 89,341 53,105 176,813 119,881 Plus: Interest Expense (k) 38,924 43,230 80,464 84,868 Impact of Consolidation (e) (290,952 ) (81,839 ) 369,594 (271,152 ) Amortization of Intangibles (f) 16,483 16,483 32,966 32,966 Transaction-Related Charges (g) 76,160 106,994 123,154 196,445 Total Segment Distributable Earnings $ 624,607 $ 761,302 $ 1,208,712 $ 1,323,238 As of June 30, 2020 Total Assets Total GAAP Assets $ 28,844,381 Impact of Consolidation (e) (7,941,082 ) Total Segment Assets $ 20,903,299 Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related Charges. (a) This adjustment removes Unrealized Performance Revenues on a segment basis. (b) This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. (c) This adjustment removes Interest and Dividend Revenue on a segment basis. (d) This adjustment removes Other Revenue on a segment basis. For the three months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $(55.6) million and $(17.1) million, and included $56.7 million and $20.8 million of foreign exchange losses, respectively. For the six months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $82.6 million and $(6.8) million, and included $80.3 million and $(8.3) million of foreign exchange gains (losses), respectively. (e) This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the 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, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling (f) 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. (g) 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 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. (h) Total Segment Revenues is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total Segment Management and Advisory Fees, Net $ 976,733 $ 844,156 $ 1,917,300 $ 1,658,218 Total Segment Fee Related Performance Revenues 15,033 13,624 27,499 21,403 Total Segment Realized Performance Revenues 102,177 341,386 269,410 588,155 Total Segment Realized Principal Investment Income 18,938 123,557 39,228 149,465 Total Segment Revenues $ 1,112,881 $ 1,322,723 $ 2,253,437 $ 2,417,241 (i) This adjustment removes Unrealized Performance Allocations Compensation. (j) This adjustment removes Equity-Based Compensation on a segment basis. (k) This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. (l) Total Segment Expenses is comprised of the following: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Total Segment Fee Related Compensation $ 306,904 $ 293,834 $ 653,168 $ 617,865 Total Segment Realized Performance Compensation 37,787 125,466 109,089 210,706 Total Segment Other Operating Expenses 143,583 142,121 282,468 265,432 Total Segment Expenses $ 488,274 $ 561,421 $ 1,044,725 $ 1,094,003 |
Reconciliation of Total Segments to Reported on the Consolidated Statement of Operations | The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Management and Advisory Fees, Net GAAP $ 969,728 $ 840,378 $ 1,904,560 $ 1,650,104 Segment Adjustment (a) 7,005 3,778 12,740 8,114 Total Segment $ 976,733 $ 844,156 $ 1,917,300 $ 1,658,218 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues GAAP Incentive Fees $ 15,300 $ 21,915 $ 27,461 $ 34,047 Investment Income - Realized Performance Allocations 101,910 332,520 269,440 574,895 GAAP 117,210 354,435 296,901 608,942 Total Segment Less: Realized Performance Revenues (102,177 ) (341,386 ) (269,410 ) (588,155 ) Segment Adjustment (b) — 575 8 616 Total Segment $ 15,033 $ 13,624 $ 27,499 $ 21,403 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP Compensation to Total Segment Fee Related Compensation GAAP Compensation $ 458,457 $ 438,521 $ 935,000 $ 909,918 Incentive Fee Compensation 8,432 8,886 14,954 14,292 Realized Performance Allocations Compensation 38,569 125,825 110,992 212,220 GAAP 505,458 573,232 1,060,946 1,136,430 Total Segment Less: Realized Performance Compensation (37,787 ) (125,466 ) (109,089 ) (210,706 ) Less: Equity-Based Compensation - Operating Compensation (87,205 ) (50,225 ) (172,539 ) (113,933 ) Less: Equity-Based Compensation - Performance Compensation (2,136 ) (2,880 ) (4,274 ) (5,948 ) Segment Adjustment (c) (71,426 ) (100,827 ) (121,876 ) (187,978 ) Total Segment $ 306,904 $ 293,834 $ 653,168 $ 617,865 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 GAAP General, Administrative and Other to Total Segment Other Operating Expenses GAAP $ 169,051 $ 175,308 $ 326,617 $ 321,370 Segment Adjustment (d) (25,468 ) (33,187 ) (44,149 ) (55,938 ) Total Segment $ 143,583 $ 142,121 $ 282,468 $ 265,432 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Performance Revenues GAAP Incentive Fees $ 15,300 $ 21,915 $ 27,461 $ 34,047 Investment Income - Realized Performance Allocations 101,910 332,520 269,440 574,895 GAAP 117,210 354,435 296,901 608,942 Total Segment Less: Fee Related Performance Revenues (15,033 ) (13,624 ) (27,499 ) (21,403 ) Segment Adjustment (b) — 575 8 616 Total Segment $ 102,177 $ 341,386 $ 269,410 $ 588,155 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Performance Compensation GAAP Incentive Fee Compensation $ 8,432 $ 8,886 $ 14,954 $ 14,292 Realized Performance Allocation Compensation 38,569 125,825 110,992 212,220 GAAP 47,001 134,711 125,946 226,512 Total Segment Less: Fee Related Performance Compensation (7,078 ) (6,365 ) (12,583 ) (9,858 ) Less: Equity-Based Compensation - Performance Compensation (2,136 ) (2,880 ) (4,274 ) (5,948 ) Total Segment $ 37,787 $ 125,466 $ 109,089 $ 210,706 Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Realized Principal Investment Income GAAP $ 61,102 $ 145,040 $ 109,797 $ 218,301 Segment Adjustment (e) (42,164 ) (21,483 ) (70,569 ) (68,836 ) Total Segment $ 18,938 $ 123,557 $ 39,228 $ 149,465 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 |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020SegmentPerson | |
Organization [Line Items] | |
Number of business segments | Segment | 4 |
Number of Blackstone founders managing the Partnership | Person | 1 |
Intangible Assets, Net (Detail)
Intangible Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets/Contractual Rights | $ 1,712,576 | $ 1,712,576 |
Accumulated Amortization | (1,350,568) | (1,315,068) |
Intangible Assets, Net | $ 362,008 | $ 397,508 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets [Line Items] | ||||
Amortization Expense | $ 17,700 | $ 17,700 | $ 35,500 | $ 35,500 |
Expected amortization of intangibles, 2020 | 71,000 | 71,000 | ||
Expected amortization of intangibles, 2021 | 71,000 | 71,000 | ||
Expected amortization of intangibles, 2022 | 63,300 | 63,300 | ||
Expected amortization of intangibles, 2023 | 34,300 | 34,300 | ||
Expected amortization of intangibles, 2024 | $ 26,900 | $ 26,900 | ||
Intangible assets expected to amortize over a weighted-average period | 7 years 7 months 6 days |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Investments [Line Items] | ||
Investments | $ 18,973,373 | $ 22,281,682 |
Partnership Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 3,873,346 | 4,035,675 |
Accrued Performance Allocations | ||
Schedule of Investments [Line Items] | ||
Investments | 4,715,510 | 7,180,449 |
Other Investments | ||
Schedule of Investments [Line Items] | ||
Investments | 235,143 | 265,273 |
Consolidated Blackstone Funds | ||
Schedule of Investments [Line Items] | ||
Investments | 7,943,531 | 8,380,698 |
Corporate Treasury Investments | ||
Schedule of Investments [Line Items] | ||
Investments | $ 2,205,843 | $ 2,419,587 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule of Investments [Line Items] | |||||
Investments | $ 18,973,373 | $ 18,973,373 | $ 22,281,682 | ||
Recognized net gains (losses) related to equity method investments | 247,800 | $ 72,300 | (318,700) | $ 227,700 | |
Equity investments, carrying value | $ 69,500 | $ 69,500 | |||
Patria Investments Limited and Patria Investimentos Ltda. | |||||
Schedule of Investments [Line Items] | |||||
Equity method investment, percentage | 40.00% | 40.00% | |||
Consolidated Blackstone Funds | Blackstone | |||||
Schedule of Investments [Line Items] | |||||
Investments | $ 245,100 | $ 245,100 | $ 347,400 |
Reconciliation of Realized and
Reconciliation of Realized and Net Change in Unrealized Gains (Losses) to Other Income (Loss) - Net Gains (Losses) from Fund Investment Activities in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | $ 1,562,697 | $ 597,947 | $ (2,633,524) | $ 1,746,626 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 23,924 | 43,686 | 59,008 | 87,770 |
Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities | 158,297 | 61,131 | (169,077) | 191,456 |
Consolidated Blackstone Funds | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized Gains (Losses) | (61,698) | 5,198 | (134,972) | 2,286 |
Net Change in Unrealized Gains (Losses) | 216,552 | 6,257 | (116,790) | 112,260 |
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | 154,854 | 11,455 | (251,762) | 114,546 |
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds | 3,443 | 49,676 | 82,685 | 76,910 |
Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities | $ 158,297 | $ 61,131 | $ (169,077) | $ 191,456 |
Performance Fees Allocated to F
Performance Fees Allocated to Funds (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | $ 22,281,682 |
Ending Balance | 18,973,373 |
Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 7,180,449 |
Performance Allocations as a Result of Changes in Fund Fair Values | (2,040,877) |
Foreign Exchange Loss | (6,476) |
Fund Distributions | (417,586) |
Ending Balance | 4,715,510 |
Real Estate Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 3,639,855 |
Performance Allocations as a Result of Changes in Fund Fair Values | (1,004,794) |
Foreign Exchange Loss | (6,476) |
Fund Distributions | (233,683) |
Ending Balance | 2,394,902 |
Private Equity Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 3,063,149 |
Performance Allocations as a Result of Changes in Fund Fair Values | (710,814) |
Fund Distributions | (157,281) |
Ending Balance | 2,195,054 |
Hedge Fund Solutions Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 23,951 |
Performance Allocations as a Result of Changes in Fund Fair Values | 22,928 |
Fund Distributions | (7,782) |
Ending Balance | 39,097 |
Credit Segment | Performance Fees | |
Schedule of Performance Fees and Allocations to the General Partner [Line Items] | |
Beginning Balance | 453,494 |
Performance Allocations as a Result of Changes in Fund Fair Values | (348,197) |
Fund Distributions | (18,840) |
Ending Balance | $ 86,457 |
Realized and Net Change in Unre
Realized and Net Change in Unrealized Gains (Losses) on Investments Held by Blackstone's Treasury Cash Management Strategies (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Total realized and net change in unrealized gains (losses) | $ 1,562,697 | $ 597,947 | $ (2,633,524) | $ 1,746,626 |
Corporate Treasury Investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized Gains (Losses) | (4,273) | 22,983 | (1,756) | 23,300 |
Net Change in Unrealized Gains (Losses) | 114,990 | 558 | (143,397) | 49,217 |
Total realized and net change in unrealized gains (losses) | $ 110,717 | $ 23,541 | $ (145,153) | $ 72,517 |
Realized and Net Change in Un_2
Realized and Net Change in Unrealized Gains (Losses) in Other Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Gain (Loss) on Securities [Line Items] | ||||
Total Investment Income (Loss) | $ 1,562,697 | $ 597,947 | $ (2,633,524) | $ 1,746,626 |
Other Investments | ||||
Gain (Loss) on Securities [Line Items] | ||||
Realized Gains | 6,348 | 21,491 | 13,333 | 45,727 |
Net Change in Unrealized Gains (Losses) | 26,573 | (3,933) | (73,364) | 6,789 |
Total Investment Income (Loss) | $ 32,921 | $ 17,558 | $ (60,031) | $ 52,516 |
Summary of Fair Value by Strate
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 285,098 |
Diversified Instruments | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 218,522 |
Credit Driven | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 64,518 |
Equity | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | 1,051 |
Commodities | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Fair Value | $ 1,007 |
Summary of Fair Value by Stra_2
Summary of Fair Value by Strategy Type Alongside Consolidated Funds of Hedge Funds' Remaining Unfunded Commitments and Ability to Redeem Such Investments (Parenthetical) (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
Diversified Instruments | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 1.00% |
Percentage of investments side pocketed as of reporting date | 99.00% |
Credit Driven | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 19.00% |
Percentage of investments redeemable as of reporting date | 81.00% |
Equity | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Investee funds categorized as non redeemable, percentage | 74.00% |
Commodities | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Percentage of investments unable to be redeemed at, or within 3 months of reporting date | 100.00% |
Summary of Aggregate Notional A
Summary of Aggregate Notional Amount and Fair Value of Derivative Financial Instruments (Detail) - Freestanding Derivatives - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | $ 1,418,370 | $ 1,724,899 |
Derivative Liabilities, Notional | 703,375 | 428,025 |
Derivative Assets, Fair Value | 176,474 | 54,786 |
Derivative Liabilities, Fair Value | 56,738 | 10,215 |
Blackstone | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 2,706 | 7,617 |
Derivative Liabilities, Notional | 9,158 | 16,697 |
Derivative Assets, Fair Value | 535 | 36 |
Derivative Liabilities, Fair Value | 2,009 | 197 |
Consolidated Blackstone Funds | Credit Default Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 13,722 | 5,108 |
Derivative Liabilities, Notional | 35,850 | 47,405 |
Derivative Assets, Fair Value | 1,889 | 58 |
Derivative Liabilities, Fair Value | 2,098 | 960 |
Consolidated Blackstone Funds | Total Return Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 4,558 | |
Derivative Liabilities, Notional | 23,207 | 27,334 |
Derivative Assets, Fair Value | 21 | |
Derivative Liabilities, Fair Value | 4,543 | 464 |
Foreign Currency Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 387,286 | 344,422 |
Derivative Liabilities, Notional | 51,647 | 97,626 |
Derivative Assets, Fair Value | 5,755 | 1,231 |
Derivative Liabilities, Fair Value | 577 | 802 |
Foreign Currency Contracts | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 25,643 | 106,906 |
Derivative Liabilities, Notional | 68,313 | 40,110 |
Derivative Assets, Fair Value | 173 | 307 |
Derivative Liabilities, Fair Value | 2,243 | 1,167 |
Interest Rate Contracts | Blackstone | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 989,013 | 1,256,287 |
Derivative Liabilities, Notional | 496,200 | 165,852 |
Derivative Assets, Fair Value | 168,122 | 53,129 |
Derivative Liabilities, Fair Value | 43,216 | 4,895 |
Interest Rate Contracts | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities, Notional | 19,000 | 33,000 |
Derivative Liabilities, Fair Value | $ 2,052 | 1,728 |
Other | Consolidated Blackstone Funds | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets, Notional | 1 | |
Derivative Liabilities, Notional | 1 | |
Derivative Assets, Fair Value | 4 | |
Derivative Liabilities, Fair Value | $ 2 |
Summary of Impact of Derivative
Summary of Impact of Derivative Financial Instruments to Consolidated Statements of Operations (Detail) - Freestanding Derivatives - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Realized Gains (Losses) | $ 5,159 | $ (1,460) | $ (14,735) | $ (1,054) |
Net Change in Unrealized Gain (Loss) | (35,326) | (905) | 78,488 | (5,863) |
Total Return Swaps | ||||
Derivative [Line Items] | ||||
Realized Gains (Losses) | (782) | (275) | (1,531) | (395) |
Net Change in Unrealized Gain (Loss) | 877 | 393 | (4,099) | 1,371 |
Credit Default Swap | ||||
Derivative [Line Items] | ||||
Realized Gains (Losses) | (13) | 881 | (112) | 1,991 |
Net Change in Unrealized Gain (Loss) | 18 | (294) | (1,371) | 3,647 |
Interest Rate Contracts | ||||
Derivative [Line Items] | ||||
Realized Gains (Losses) | (2,613) | (416) | (7,914) | (2,664) |
Net Change in Unrealized Gain (Loss) | (27,963) | (2,892) | 80,335 | (11,155) |
Foreign Currency Contracts | ||||
Derivative [Line Items] | ||||
Realized Gains (Losses) | 8,567 | (1,526) | (5,140) | 146 |
Net Change in Unrealized Gain (Loss) | $ (8,258) | 1,773 | 3,587 | 209 |
Other | ||||
Derivative [Line Items] | ||||
Realized Gains (Losses) | (124) | (38) | (132) | |
Net Change in Unrealized Gain (Loss) | $ 115 | $ 36 | $ 65 |
Summary of Financial Instrument
Summary of Financial Instruments for Which Fair Value Option Has Been Elected (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans and Receivables | $ 162,368 | $ 500,751 |
Assets | 7,632,707 | 8,242,608 |
Liabilities | 6,328,670 | 6,558,006 |
Debt Securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments | 471,158 | 506,924 |
Equity and Preferred Securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments | 480,199 | 432,472 |
Corporate Loans | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments | 6,518,669 | 6,801,691 |
Other | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Investments | 313 | 770 |
Liabilities of Consolidated CLO Vehicles | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Corporate Treasury Commitments | 2,030 | |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of Loan payable | 6,232,695 | 6,455,016 |
Fair value of due to Affiliates | 78,719 | 57,717 |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of Loan payable | 24,738 | |
Fair value of due to Affiliates | $ 15,226 | $ 20,535 |
Realized and Net Change in Un_3
Realized and Net Change in Unrealized Gains (Losses) on Financial Instruments on Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Realized Gains (Losses) | Debt Securities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | $ (9,487) | $ (3,325) | $ (21,103) | $ (3,360) |
Realized Gains (Losses) | Assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | (64,029) | (4,714) | (123,409) | (9,683) |
Realized Gains (Losses) | Loans and Receivables | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | (2,249) | (747) | (5,770) | (1,831) |
Realized Gains (Losses) | Equity and Preferred Securities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 9,907 | (342) | 9,908 | |
Realized Gains (Losses) | Corporate Loans | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | (52,293) | (10,549) | (96,194) | (14,400) |
Net Change In Unrealized Gains (Losses) | Debt Securities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 60,988 | 1,817 | (9,129) | 16,749 |
Net Change In Unrealized Gains (Losses) | Assets | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 672,068 | (17,822) | (340,011) | 198,517 |
Net Change In Unrealized Gains (Losses) | Loans and Receivables | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 13,101 | (1,897) | (268) | (2,657) |
Net Change In Unrealized Gains (Losses) | Liabilities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | (423,585) | 21,830 | 227,461 | (95,874) |
Net Change In Unrealized Gains (Losses) | Equity and Preferred Securities | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 59,612 | (67) | (103,747) | 22,298 |
Net Change In Unrealized Gains (Losses) | Corporate Loans | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 538,367 | (18,025) | (226,542) | 161,777 |
Net Change In Unrealized Gains (Losses) | Senior Secured Notes | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | (495,059) | 6,667 | 199,445 | (44,893) |
Net Change In Unrealized Gains (Losses) | Subordinated Notes | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | 73,504 | 15,163 | 30,046 | (50,981) |
Net Change In Unrealized Gains (Losses) | Corporate Treasury Commitments | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Corporate Treasury Commitments | $ (2,030) | (2,030) | ||
Net Change In Unrealized Gains (Losses) | Other | ||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||
Realized and net change in unrealized gains (losses) on financial instruments | $ 350 | $ (325) | $ 350 |
Information for Financial Instr
Information for Financial Instruments on Which Fair Value Option was Elected (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value over uncollected principal | $ (527,349,000) | $ (252,839,000) |
Fair value of financial instruments more than one day past due | 21,604,000 | |
Excess (Deficiency) of fair value more than one day past due over uncollected principal | (11,431,000) | |
Debt Securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value over uncollected principal | (24,588,000) | (14,667,000) |
Corporate Loans | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value over uncollected principal | (496,820,000) | (234,430,000) |
Fair value of financial instruments more than one day past due | 21,604,000 | |
Corporate Bonds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value more than one day past due over uncollected principal | (11,431,000) | |
Other | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value over uncollected principal | (325,000) | 133,000 |
Loans and Receivables | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Excess (Deficiency) of fair value over uncollected principal | (5,616,000) | (3,875,000) |
Fair value of financial instruments more than one day past due | $ 0 | $ 0 |
Fair Value Option - Additional
Fair Value Option - Additional Information (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of financial instruments more than one day past due | $ 21,604,000 | |
Corporate Bonds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of financial instruments more than one day past due | 0 | $ 0 |
Fair value of financial instruments with non-accrual status | 0 | 0 |
Loans and Receivables | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value of financial instruments more than one day past due | 0 | 0 |
Fair value of financial instruments with non-accrual status | $ 0 | $ 0 |
Financial Assets and Liabilitie
Financial Assets and Liabilities at Fair Value (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Accounts Receivable - Loans and Receivables | $ 162,368 | $ 500,751 |
Assets | 7,632,707 | 8,242,608 |
Securities Sold, Not Yet Purchased | 51,395 | 75,545 |
Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 176,474 | 54,479 |
Derivatives liabilities | 55,001 | 10,215 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,411,439 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 349,197 | 456,784 |
Total Investments | 10,315,030 | 11,007,889 |
Accounts Receivable - Loans and Receivables | 162,368 | 500,751 |
Derivatives assets | 54,396 | |
Assets | 11,001,007 | 12,019,820 |
Fair value of Loan payable | 6,232,695 | 6,479,754 |
Fair value of due to Affiliates | 93,945 | 78,252 |
Securities Sold, Not Yet Purchased | 51,395 | 75,546 |
Total Accounts Payable, Accrued Expenses and Other Liabilities | 58,768 | 10,215 |
Liabilities | 6,436,803 | 6,643,767 |
Fair Value, Measurements, Recurring | Corporate Treasury Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate Treasury Commitments | 2,030 | |
Fair Value, Measurements, Recurring | Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 174,412 | |
Derivatives liabilities | 45,802 | 5,894 |
Fair Value, Measurements, Recurring | Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 165,656 | 207,604 |
Fair Value, Measurements, Recurring | Net Asset Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 285,098 | 308,851 |
Assets | 285,098 | 308,851 |
Fair Value, Measurements, Recurring | Net Asset Value | Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 4,175 | 7,126 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 7,943,531 | 8,380,698 |
Derivatives liabilities | 10,936 | 4,321 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 2,062 | 390 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 6,518,982 | 6,802,461 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Investment Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 13,149 | 23,647 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 772,393 | 759,573 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Debt Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 636,945 | 794,627 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Net Asset Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 13,149 | 23,647 |
Fair Value, Measurements, Recurring | Consolidated Blackstone Funds | Net Asset Value | Investment Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 13,149 | 23,647 |
Fair Value, Measurements, Recurring | Corporate Treasury Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 2,205,843 | 2,419,587 |
Fair Value, Measurements, Recurring | Corporate Treasury Investments | Net Asset Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 267,774 | 278,078 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 349,197 | 456,784 |
Total Investments | 768,781 | 958,928 |
Assets | 1,118,025 | 1,416,214 |
Securities Sold, Not Yet Purchased | 9,395 | 19,977 |
Total Accounts Payable, Accrued Expenses and Other Liabilities | 518 | 150 |
Liabilities | 9,913 | 20,127 |
Fair Value, Measurements, Recurring | Level 1 | Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 47 | 502 |
Derivatives liabilities | 518 | 150 |
Fair Value, Measurements, Recurring | Level 1 | Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 157,552 | 200,478 |
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 38,917 | 31,812 |
Fair Value, Measurements, Recurring | Level 1 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 38,917 | 31,812 |
Fair Value, Measurements, Recurring | Level 1 | Corporate Treasury Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 572,312 | 726,638 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 8,012,080 | 8,660,549 |
Assets | 8,186,445 | 8,714,443 |
Fair value of Loan payable | 6,232,695 | 6,479,754 |
Fair value of due to Affiliates | 93,945 | 78,252 |
Securities Sold, Not Yet Purchased | 42,000 | 55,569 |
Total Accounts Payable, Accrued Expenses and Other Liabilities | 56,220 | 10,065 |
Liabilities | 6,424,860 | 6,623,640 |
Fair Value, Measurements, Recurring | Level 2 | Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 174,365 | 53,894 |
Derivatives liabilities | 45,284 | 5,744 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 6,676,091 | 7,274,967 |
Derivatives liabilities | 10,936 | 4,321 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Freestanding Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 2,062 | 390 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 6,047,390 | 6,505,720 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 55,704 | 53,611 |
Fair Value, Measurements, Recurring | Level 2 | Consolidated Blackstone Funds | Debt Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 570,935 | 715,246 |
Fair Value, Measurements, Recurring | Level 2 | Corporate Treasury Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 1,335,989 | 1,385,582 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 1,249,071 | 1,079,561 |
Accounts Receivable - Loans and Receivables | 162,368 | 500,751 |
Assets | 1,411,439 | 1,580,312 |
Total Accounts Payable, Accrued Expenses and Other Liabilities | 2,030 | |
Liabilities | 2,030 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Commitments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate Treasury Commitments | 2,030 | |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 3,929 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 1,215,374 | 1,050,272 |
Assets | 1,215,374 | 1,050,272 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 471,592 | 296,741 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 677,772 | 674,150 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | 66,010 | 79,381 |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Investments | $ 29,768 | $ 29,289 |
Summary of Quantitative Inputs
Summary of Quantitative Inputs and Assumptions for Items Categorized in Level III of Fair Value Hierarchy (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 7,632,707 | $ 8,242,608 |
Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,411,439 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 11,001,007 | 12,019,820 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,411,439 | 1,580,312 |
Fair Value, Measurements, Recurring | Level 3 | Loans and Receivables | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 162,368 | $ 500,751 |
Fair Value, Measurements, Recurring | Level 3 | Minimum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.20% | 5.20% |
Fair Value, Measurements, Recurring | Level 3 | Maximum | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 9.40% | 9.80% |
Fair Value, Measurements, Recurring | Level 3 | Weighted Average | Loans and Receivables | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 8.10% | 7.70% |
Fair Value, Measurements, Recurring | Level 3 | Other Investments | Transaction Price Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 3,929 | |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 1,215,374 | $ 1,050,272 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Assets Of Consolidated CLO Vehicles | Third Party Pricing Valuation Technique | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | 471,592 | 296,741 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 677,772 | $ 674,150 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 0.80% | 0.90% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Minimum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 2.00% | 2.00% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Minimum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 3.5 | 0.1 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 42.10% | 40.20% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Maximum | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 15.50% | 27.00% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Maximum | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 18.6 | 17 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 11.00% | 10.60% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Weighted Average | Discounted Cash Flows | Measurement Input, Cap Rate [Member] | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Capitalization Rate | 5.50% | 5.90% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Equity Securities, Partnerships and LLC Interests | Weighted Average | Discounted Cash Flows | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 12 | 9.7 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 66,010 | $ 79,381 |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 6.80% | 7.10% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 19.30% | 58.20% |
Fair Value, Measurements, Recurring | Level 3 | Consolidated Blackstone Funds | Debt Instruments | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 10.00% | 12.10% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Discounted Cash Flows | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Fair value assets | $ 29,768 | $ 29,289 |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 4.00% | 3.20% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Minimum | Market Comparable Companies | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 6.2 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 11.70% | 7.10% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Maximum | Market Comparable Companies | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 8.8 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Discounted Cash Flows | Measurement Input, Discount Rate | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Unobservable inputs, rate | 7.70% | 5.70% |
Fair Value, Measurements, Recurring | Level 3 | Corporate Treasury Investments | Weighted Average | Market Comparable Companies | EBITDA Multiple Market | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Exit Multiple - EBITDA | 8.1 |
Summary of Changes in Financial
Summary of Changes in Financial Assets Measured at Fair Value for Which Level III Inputs Were Used (Detail) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance, Beginning of Period | $ 1,280,122 | $ 1,511,159 | $ 1,580,312 | $ 1,724,374 |
Transfer Into Level III | 324,953 | 153,261 | 307,401 | 119,579 |
Transfer Out of Level III | (217,814) | (309,169) | (166,385) | (427,572) |
Purchases | 136,937 | 316,490 | 403,494 | 462,897 |
Sales | (135,286) | (307,943) | (631,126) | (535,054) |
Settlements | (1,637) | (3,038) | (3,650) | (10,189) |
Changes in Gains (Losses) Included in Earnings | 24,164 | 16,219 | (78,607) | 42,944 |
Balance, End of Period | 1,411,439 | 1,376,979 | 1,411,439 | 1,376,979 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | (25,877) | (3,925) | (92,586) | 23,479 |
Other Investments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance, Beginning of Period | 47,909 | 59,133 | 29,289 | 56,185 |
Transfer Into Level III | 8,402 | 3,986 | 25,001 | 12,935 |
Transfer Out of Level III | (16,850) | (14,557) | (18,875) | (27,170) |
Purchases | 4,559 | 5,251 | 5,771 | 12,820 |
Sales | (7,626) | (5,270) | (12,665) | (6,141) |
Changes in Gains (Losses) Included in Earnings | (2,697) | 509 | 5,176 | 423 |
Balance, End of Period | 33,697 | 49,052 | 33,697 | 49,052 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | (7,782) | 135 | (123) | 315 |
Loans and Receivables | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance, Beginning of Period | 218,115 | 208,226 | 500,751 | 304,173 |
Purchases | 7,160 | 198,482 | 170,899 | 270,772 |
Sales | (75,689) | (218,148) | (506,881) | (383,816) |
Settlements | (1,637) | (3,038) | (3,650) | (10,189) |
Changes in Gains (Losses) Included in Earnings | 14,419 | 2,309 | 1,249 | 6,891 |
Balance, End of Period | 162,368 | 187,831 | 162,368 | 187,831 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | 9,521 | (1,898) | 4,940 | (2,657) |
Consolidated Blackstone Funds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Balance, Beginning of Period | 1,014,098 | 1,243,800 | 1,050,272 | 1,364,016 |
Transfer Into Level III | 316,551 | 149,275 | 282,400 | 106,644 |
Transfer Out of Level III | (200,964) | (294,612) | (147,510) | (400,402) |
Purchases | 125,218 | 112,757 | 226,824 | 179,305 |
Sales | (51,971) | (84,525) | (111,580) | (145,097) |
Changes in Gains (Losses) Included in Earnings | 12,442 | 13,401 | (85,032) | 35,630 |
Balance, End of Period | 1,215,374 | 1,140,096 | 1,215,374 | 1,140,096 |
Changes in Unrealized Gains (Losses) Included in Earnings Related to Investments Still Held at the Reporting Date | $ (27,616) | $ (2,162) | $ (97,403) | $ 25,821 |
Maximum Exposure to Loss Relati
Maximum Exposure to Loss Relating to Non-Consolidated VIEs (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Variable Interest Entity [Line Items] | ||
VIE Assets | $ 28,844,381 | $ 32,585,506 |
VIE Liabilities | 16,348,351 | 17,482,454 |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | 1,105,420 | 1,470,121 |
Variable Interest Entity, Not Primary Beneficiary | Investments | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 868,579 | 1,216,932 |
Variable Interest Entity, Not Primary Beneficiary | Due from Affiliates | ||
Variable Interest Entity [Line Items] | ||
VIE Assets | 197,570 | 143,949 |
Variable Interest Entity, Not Primary Beneficiary | Potential Clawback Obligation | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | 39,271 | 109,240 |
Variable Interest Entity, Not Primary Beneficiary | Due to Non Consolidated Entity | ||
Variable Interest Entity [Line Items] | ||
VIE Liabilities | $ 313 | $ 231 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Securities Financing Transaction [Line Items] | ||
Pledged securities with carrying value to collateralize its repurchase agreements | $ 123 | $ 196.1 |
Schedule of Repurchase Agreemen
Schedule of Repurchase Agreements Obligation by Type of Collateral Pledged (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 80,620 | $ 154,118 |
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. "Offsetting of Assets and Liabilities" | 80,620 | 154,118 |
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. "Offsetting of Assets and Liabilities" | 0 | 0 |
Overnight and Continuous | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 0 | 0 |
Up to 30 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 10,634 | 42,459 |
30 - 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | 40,780 | 88,868 |
Greater than 90 Days | Asset-backed Securities | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Repurchase Agreements | $ 29,206 | $ 22,791 |
Components of Other Assets (Det
Components of Other Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Other Assets [Line Items] | ||
Furniture, Equipment and Leasehold Improvements | $ 164,516 | $ 154,482 |
Prepaid Expenses | 144,823 | 159,333 |
Freestanding Derivatives | 174,412 | 54,396 |
Other | 17,600 | 14,282 |
Total Other Assets | $ 501,351 | $ 382,493 |
Offsetting of Assets and Liab_3
Offsetting of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets and Liabilities [Line Items] | ||
Repurchase agreements gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | $ 80,620 | $ 154,118 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 80,620 | 154,118 |
Repurchase agreements gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 0 | |
Repurchase agreements Net Amount | 0 | |
Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 135,621 | 164,333 |
Gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 116,768 | 154,498 |
Gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 18,123 | 9,198 |
Net Amount | 730 | 637 |
Freestanding Derivatives | ||
Offsetting Assets and Liabilities [Line Items] | ||
Derivatives gross and Net Amounts of Assets Presented in the Statement of Financial Condition | 176,474 | 54,479 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 36,148 | 380 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 72,895 | 0 |
Derivatives Net Amount | 67,431 | 54,099 |
Derivatives gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | 55,001 | 10,215 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Financial Instruments | 36,148 | 380 |
Derivatives gross Amounts Not Offset in the Statement of Financial Condition, Cash Collateral Received | 18,123 | 9,198 |
Derivatives Net Amount | $ 730 | $ 637 |
Offsetting Of Assets And Liab_4
Offsetting Of Assets And Liabilities - Additional Information (Detail) - Cash Pooling Arrangement $ in Billions | Jun. 30, 2020USD ($) |
Offsetting Assets [Line Items] | |
Aggregate cash balance on deposit relating to the cash pooling arrangement | $ 1 |
Overdraft facility | $ 1 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) $ in Billions | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Fair value of the CLO assets | $ 6.8 | $ 7.2 |
Carrying Value and Fair Value o
Carrying Value and Fair Value of Blackstone Issued Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Carrying Value | $ 4,606,781 | $ 4,600,856 | |
Debt instrument, fair value | [1] | 5,182,716 | 5,060,570 |
4.750% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 396,809 | 396,247 | |
Debt instrument, fair value | [1] | 438,960 | 429,280 |
2.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 333,264 | 332,393 | |
Debt instrument, fair value | [1] | 357,140 | 365,521 |
1.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 666,153 | 664,229 | |
Debt instrument, fair value | [1] | 684,959 | 691,012 |
3.150% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 297,215 | 297,046 | |
Debt instrument, fair value | [1] | 320,250 | 309,540 |
1.500% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 668,937 | 667,425 | |
Debt instrument, fair value | [1] | 718,392 | 708,841 |
2.500% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 490,268 | 489,841 | |
Debt instrument, fair value | [1] | 520,850 | 493,500 |
6.250% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 238,551 | 238,437 | |
Debt instrument, fair value | [1] | 352,375 | 338,200 |
5.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 489,083 | 488,968 | |
Debt instrument, fair value | [1] | 620,150 | 606,700 |
4.450% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 344,219 | 344,157 | |
Debt instrument, fair value | [1] | 411,110 | 396,235 |
4.000% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 290,437 | 290,344 | |
Debt instrument, fair value | [1] | 336,690 | 321,780 |
3.500% Notes | |||
Debt Instrument [Line Items] | |||
Carrying Value | 391,845 | 391,769 | |
Debt instrument, fair value | [1] | $ 421,840 | $ 399,961 |
[1] | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
Carrying Value and Fair Value_2
Carrying Value and Fair Value of Blackstone Issued Notes (Parenthetical) (Detail) - Senior Secured Notes | 6 Months Ended |
Jun. 30, 2020 | |
4.750% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.75% |
Debt instrument, maturity date | Feb. 15, 2023 |
2.000% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 2.00% |
Debt instrument, maturity date | May 19, 2025 |
1.000% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 1.00% |
Debt instrument, maturity date | Oct. 5, 2026 |
3.150% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 3.15% |
Debt instrument, maturity date | Oct. 2, 2027 |
1.500% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 1.50% |
Debt instrument, maturity date | Apr. 10, 2029 |
2.500% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 2.50% |
Debt instrument, maturity date | Jan. 10, 2030 |
6.250% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 6.25% |
Debt instrument, maturity date | Aug. 15, 2042 |
5.000% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 5.00% |
Debt instrument, maturity date | Jun. 15, 2044 |
4.450% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.45% |
Debt instrument, maturity date | Jul. 15, 2045 |
4.000% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.00% |
Debt instrument, maturity date | Oct. 2, 2047 |
3.500% Notes | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 3.50% |
Debt instrument, maturity date | Sep. 10, 2049 |
Partnership's Borrowings Throug
Partnership's Borrowings Through Consolidated CLO Vehicles (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 4,606,781 | $ 4,600,856 | |
Weighted Average Remaining Maturity in Years | [1] | 6 years 1 month 6 days | 3 years 6 months |
Liabilities of Consolidated CLO Vehicles | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 6,851,660 | $ 6,859,535 | |
Liabilities of Consolidated CLO Vehicles | Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 6,525,925 | $ 6,527,800 | |
Effective Interest Rate | 2.74% | 3.55% | |
Liabilities of Consolidated CLO Vehicles | Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Borrowing Outstanding | $ 325,735 | $ 331,735 | |
Effective Interest Rate | [2] | ||
[1] | Weighted-Average Remaining Maturity in Years for Senior Secured Notes includes consideration of pre-payment options. | ||
[2] | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
Senior Secured Notes and Subord
Senior Secured Notes and Subordinated Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Borrowing Outstanding | $ 4,606,781 | $ 4,600,856 |
Fair Value | 6,326,640 | 6,558,006 |
Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Fair Value | 6,311,414 | 6,512,733 |
Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Fair Value | 15,226 | 45,273 |
Non-Consolidated Affiliates Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 123,534 | 102,484 |
Fair Value | 93,945 | 78,252 |
Non-Consolidated Affiliates Senior Secured Notes | Senior Secured Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 78,800 | 57,750 |
Fair Value | 78,719 | 57,717 |
Non-Consolidated Affiliates Senior Secured Notes | Subordinated Notes | ||
Debt Instrument [Line Items] | ||
Borrowing Outstanding | 44,734 | 44,734 |
Fair Value | $ 15,226 | $ 20,535 |
Scheduled Principal Payments fo
Scheduled Principal Payments for Borrowings (Detail) $ in Thousands | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 92 |
2023 | 400,000 |
Thereafter | 11,136,760 |
Total | 11,536,852 |
Operating Borrowings | |
Debt Instrument [Line Items] | |
2023 | 400,000 |
Thereafter | 4,285,100 |
Total | 4,685,100 |
Blackstone Fund Facilities CLO Vehicles | |
Debt Instrument [Line Items] | |
2020 | 92 |
Thereafter | 6,851,660 |
Total | $ 6,851,752 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax [Line Items] | ||||
Effective Income Tax Rate | 9.80% | 5.60% | 0.90% | 4.40% |
Provision for Income Tax (Benefits) Expenses | $ 147,415 | $ 38,736 | $ (11,288) | $ 79,891 |
Basic and Diluted Net Income Pe
Basic and Diluted Net Income Per Common Stock (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Line Items] | ||||
Net Income (Loss) Attributable to The Blackstone Group Inc., Basic | $ 568,266 | $ 305,792 | $ (498,226) | $ 787,096 |
Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units | 405,459 | 610,101 | ||
Net Income (Loss) Attributable to The Blackstone Group Inc., Diluted | $ 973,725 | $ 305,792 | $ (498,226) | $ 1,397,197 |
Weighted-Average Shares of Class A Common Stock Outstanding, Basic | 698,534,168 | 673,655,305 | 677,041,769 | 674,079,074 |
Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock | 123,340 | 330,639 | 269,196 | |
Weighted-Average Blackstone Holdings Partnership Units | 505,754,449 | 526,244,006 | ||
Weighted-Average Shares of Class A Common Stock Outstanding, Diluted | 1,204,411,957 | 673,985,944 | 677,041,769 | 1,200,592,276 |
Net Income (Loss) Per Common Unit, Basic | $ 0.81 | $ 0.45 | $ (0.74) | $ 1.17 |
Net Income (Loss) Per Common Unit, Diluted | 0.81 | 0.45 | (0.74) | 1.16 |
Dividends Declared Per Share of Class A Common Stock | $ 0.39 | $ 0.37 | $ 1 | $ 0.95 |
Summary of Anti-Dilutive Securi
Summary of Anti-Dilutive Securities (Detail) - shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2020 | |
Unvested Deferred Restricted Common Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-Average Units | 15,672,449 | |
Blackstone Partnership Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted-Average Units | 526,721,409 | 508,487,300 |
Schedule of Shares Eligible For
Schedule of Shares Eligible For Dividends and Distribution (Detail) | Jun. 30, 2020shares |
Stockholders Equity [Line Items] | |
Common stock eligible for dividends and distributions | 697,597,036 |
Shares eligible for dividends and distributions | 1,202,509,891 |
Common Class A [Member] | |
Stockholders Equity [Line Items] | |
Common stock eligible for dividends and distributions | 676,874,583 |
Unvested Participating Common Stock [Member] | |
Stockholders Equity [Line Items] | |
Common stock eligible for dividends and distributions | 20,722,453 |
Participating Partnership Units [Member] | |
Stockholders Equity [Line Items] | |
Participating Blackstone Holdings Partnership Units | 504,912,855 |
Earnings Per Share and Stockh_3
Earnings Per Share and Stockholder's Equity - Additional Information (Detail) - USD ($) | Jul. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jul. 16, 2019 |
Stockholders Equity [Line Items] | |||||||
Preferred shares authorized | 9,000,000,000 | ||||||
Preferred shares par value | $ 0.00001 | ||||||
Preferred shares issued | 0 | 0 | |||||
Preferred shares outstanding | 0 | 0 | |||||
Amount remaining available for repurchases | $ 412,800,000 | $ 412,800,000 | |||||
Common Class A | |||||||
Stockholders Equity [Line Items] | |||||||
Common stock par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||
Common stock repurchased, units | 2,000,000 | 7,000,000 | 7,000,000 | 8,500,000 | |||
Amount authorized to repurchase under unit repurchase program | $ 1,000,000,000 | ||||||
Common stock repurchased, cost | $ 114,900,000 | $ 290,900,000 | $ 368,400,000 | $ 343,100,000 | |||
Conversion of Stock | one issued and outstanding | ||||||
Common Class B | |||||||
Stockholders Equity [Line Items] | |||||||
Common stock par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Conversion of Stock | one issued and outstanding | ||||||
Common Class C | |||||||
Stockholders Equity [Line Items] | |||||||
Common stock par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | ||||
Conversion of Stock | one issued and outstanding |
Equity-Based Compensation - Add
Equity-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jan. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Partnership grant units | 171,085,619 | ||||
Compensation expense in relation to equity-based awards | $ 119,900 | $ 102,800 | $ 238,721 | $ 223,979 | |
Tax benefits in relation to equity-based awards | 14,700 | $ 15,900 | 28,400 | $ 34,500 | |
Estimated unrecognized compensation expense related to unvested awards | $ 1,100,000 | $ 1,100,000 | |||
Weighted-average period for recognized compensation expense related to unvested awards, years | 3 years 6 months | ||||
Total vested and unvested outstanding units | 1,202,744,387 | 1,202,744,387 | |||
Phantom Share Units (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total outstanding unvested phantom units | 75,934 | 75,934 |
Summary of Status of Partnershi
Summary of Status of Partnership's Unvested Equity-Based Awards (Detail) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Blackstone | Blackstone Partnership Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 32,159,218 |
Vested (Units) | shares | (4,020,702) |
Forfeited (Units) | shares | (97,316) |
Ending Balance | shares | 28,041,200 |
Beginning Balance | $ / shares | $ 36.25 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 40.22 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 35.65 |
Ending Balance | $ / shares | $ 36.54 |
Blackstone Group Inc. [Member] | Equity Settled Awards Deferred Restricted Shares Of Class A Common Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 8,969,736 |
Granted (Units) | shares | 13,764,902 |
Vested (Units) | shares | (2,096,231) |
Forfeited (Units) | shares | (450,917) |
Ending Balance | shares | 20,187,490 |
Beginning Balance | $ / shares | $ 35.26 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 44.89 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 34.34 |
Forfeited (Weighted-Average Grant Date Fair Value) | $ / shares | 38.07 |
Ending Balance | $ / shares | $ 41.54 |
Blackstone Group Inc. [Member] | Cash Settled Awards Phantom Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance | shares | 51,341 |
Granted (Units) | shares | 21,189 |
Vested (Units) | shares | (485) |
Ending Balance | shares | 72,045 |
Beginning Balance | $ / shares | $ 52.85 |
Granted (Weighted-Average Grant Date Fair Value) | $ / shares | 56.95 |
Vested (Weighted-Average Grant Date Fair Value) | $ / shares | 56.03 |
Ending Balance | $ / shares | $ 57.17 |
Unvested Shares and Units, Afte
Unvested Shares and Units, After Expected Forfeitures (Detail) - shares | 6 Months Ended | |
Jun. 30, 2020 | Jan. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Blackstone Holdings Partnership Units | 24,690,441 | |
Deferred Restricted Shares of Class A Common Stock | 16,833,076 | |
Total Equity-Based Awards | 41,523,517 | |
Phantom Shares | 57,559 | |
Blackstone Holdings Partnership Units (Weighted-Average Service Period in Years) | 2 years 9 months 18 days | |
Deferred Restricted Shares of Class A Common Stock (Weighted-Average Service in Years) | 3 years 6 months | |
Total Equity-Based Awards (Weighted-Average Service Period in Years) | 3 years 1 month 6 days | |
Phantom Shares (Weighted-Average Service Period in Years) | 3 years |
Due from Affiliates and Due to
Due from Affiliates and Due to Affiliates (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities and Portfolio Companies | $ 1,933,376 | $ 1,999,568 |
Due from Certain Non-Controlling Interest Holders and Blackstone Employees | 460,552 | 573,679 |
Accrual for Potential Clawback of Previously Distributed Performance Allocations | 37,584 | 21,626 |
Due from Affiliates, total | 2,431,512 | 2,594,873 |
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | 736,656 | 672,981 |
Due to Non-Consolidated Entities | 162,880 | 100,286 |
Due to Note-Holders of Consolidated CLO Vehicles | 93,945 | 78,252 |
Due to Certain Non-Controlling Interest Holders and Blackstone Employees | 80,421 | 48,433 |
Accrual for Potential Repayment of Previously Received Performance Allocations | 194,669 | 126,919 |
Due to Affiliates, total | $ 1,268,571 | $ 1,026,871 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Investments | $ 18,973,373 | $ 18,973,373 | $ 22,281,682 | ||
Cash saving in tax receivable agreements, percentage | 85.00% | ||||
Expected future payments under the tax receivable agreements | 736,600 | $ 736,600 | |||
Expected future payments under the tax receivable agreements in years | 15 years | ||||
After-tax net present value estimated payments | $ 201,600 | $ 201,600 | |||
After-tax net present value discount rate assumption | 15.00% | 15.00% | |||
Founder, senior managing directors, employees and certain other related parties | |||||
Related Party Transaction [Line Items] | |||||
Net Income Attributable to Non-Controlling Interests | $ 64,100 | $ 17,500 | $ (114,300) | $ 48,500 | |
Founder, senior managing directors, employees and certain other related parties | Consolidated Blackstone Funds | |||||
Related Party Transaction [Line Items] | |||||
Investments | 915,800 | 915,800 | $ 969,300 | ||
Affiliates | |||||
Related Party Transaction [Line Items] | |||||
Interest from loans to affiliates | $ 1,100 | $ 1,800 | $ 4,100 | $ 4,200 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Schedule Of Commitments And Contingencies [Line Items] | |
General partner capital funding | $ 3,700 |
Total investments at risk in respect of guarantees extended | $ 19.1 |
Contingent obligations currently anticipated to expire end | 2029 |
Provision for cash clawback | $ 750.7 |
Contingent Obligations (Clawback) | 3,600 |
Blackstone Holdings | |
Schedule Of Commitments And Contingencies [Line Items] | |
Loans held By employees for investment guaranteed | 233.5 |
Contingent Obligations (Clawback) | 3,200 |
Consolidated Blackstone Funds | |
Schedule Of Commitments And Contingencies [Line Items] | |
Funds signed investment commitments | 51.8 |
Consolidated Blackstone Funds | Portfolio Company Acquisition | |
Schedule Of Commitments And Contingencies [Line Items] | |
Signed investment commitments for portfolio company acquisitions in process of closing | $ 28.6 |
Clawback Obligations by Segment
Clawback Obligations by Segment (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Product Liability Contingency [Line Items] | |||
Clawback obligations | $ 194,669 | $ 126,919 | |
Blackstone Holdings | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 157,085 | 105,293 | |
Current And Former Blackstone Personnel | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | [1] | 37,584 | 21,626 |
Real Estate Segment | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 32,892 | 26,748 | |
Real Estate Segment | Blackstone Holdings | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 21,042 | 16,151 | |
Real Estate Segment | Current And Former Blackstone Personnel | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | [1] | 11,850 | 10,597 |
Private Equity Segment | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 129,737 | 85,136 | |
Private Equity Segment | Blackstone Holdings | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 120,993 | 82,276 | |
Private Equity Segment | Current And Former Blackstone Personnel | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | [1] | 8,744 | 2,860 |
Credit & Insurance | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 32,040 | 15,035 | |
Credit & Insurance | Blackstone Holdings | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | 15,050 | 6,866 | |
Credit & Insurance | Current And Former Blackstone Personnel | |||
Product Liability Contingency [Line Items] | |||
Clawback obligations | [1] | $ 16,990 | $ 8,169 |
[1] | The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting Information [Line Items] | |
Number of business segments | 4 |
Financial Data of Segments (Det
Financial Data of Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Fee Related Performance Revenues | $ 15,033 | $ 13,624 | $ 27,499 | $ 21,403 |
Realized Performance Revenues | 117,210 | 354,435 | 296,901 | 608,942 |
Realized Performance Compensation | 47,001 | 134,711 | 125,946 | 226,512 |
Segment Assets | 20,903,299 | 20,903,299 | ||
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Base Management Fees | 941,794 | 805,315 | 1,852,190 | 1,562,833 |
Transaction, Advisory and Other Fees, Net | 48,292 | 61,495 | 98,957 | 126,645 |
Management Fee Offsets | (13,353) | (22,654) | (33,847) | (31,260) |
Total Management and Advisory Fees, Net | 976,733 | 844,156 | 1,917,300 | 1,658,218 |
Fee Related Performance Revenues | 15,033 | 13,624 | 27,499 | 21,403 |
Fee Related Compensation | (306,904) | (293,834) | (653,168) | (617,865) |
Other Operating Expenses | (143,583) | (142,121) | (282,468) | (265,432) |
Fee Related Earnings | 541,279 | 421,825 | 1,009,163 | 796,324 |
Realized Performance Revenues | 102,177 | 341,386 | 269,410 | 588,155 |
Realized Performance Compensation | (37,787) | (125,466) | (109,089) | (210,706) |
Realized Principal Investment Income (Loss) | 18,938 | 123,557 | 39,228 | 149,465 |
Total Net Realizations | 83,328 | 339,477 | 199,549 | 526,914 |
Total Segment Distributable Earnings | 624,607 | 761,302 | 1,208,712 | 1,323,238 |
Segment Assets | 20,903,299 | 20,903,299 | ||
Operating Segments | Real Estate Segment | ||||
Segment Reporting Information [Line Items] | ||||
Base Management Fees | 382,704 | 255,636 | 754,142 | 515,881 |
Transaction, Advisory and Other Fees, Net | 32,039 | 23,990 | 55,063 | 47,901 |
Management Fee Offsets | (2,436) | (1,686) | (10,777) | (1,966) |
Total Management and Advisory Fees, Net | 412,307 | 277,940 | 798,428 | 561,816 |
Fee Related Performance Revenues | 6,505 | 11,072 | 11,056 | 17,748 |
Fee Related Compensation | (116,640) | (97,795) | (236,936) | (212,611) |
Other Operating Expenses | (44,525) | (40,114) | (85,001) | (79,100) |
Fee Related Earnings | 257,647 | 151,103 | 487,547 | 287,853 |
Realized Performance Revenues | 34,209 | 198,573 | 77,929 | 275,755 |
Realized Performance Compensation | (12,547) | (67,742) | (25,939) | (97,642) |
Realized Principal Investment Income (Loss) | 1,573 | 47,420 | 8,873 | 45,289 |
Total Net Realizations | 23,235 | 178,251 | 60,863 | 223,402 |
Total Segment Distributable Earnings | 280,882 | 329,354 | 548,410 | 511,255 |
Segment Assets | 7,460,667 | 7,460,667 | ||
Operating Segments | Private Equity Segment | ||||
Segment Reporting Information [Line Items] | ||||
Base Management Fees | 268,070 | 265,139 | 522,044 | 484,556 |
Transaction, Advisory and Other Fees, Net | 9,521 | 31,526 | 30,934 | 68,817 |
Management Fee Offsets | (8,031) | (17,689) | (17,246) | (22,674) |
Total Management and Advisory Fees, Net | 269,560 | 278,976 | 535,732 | 530,699 |
Fee Related Compensation | (92,825) | (105,107) | (203,193) | (212,694) |
Other Operating Expenses | (44,827) | (40,429) | (85,828) | (74,630) |
Fee Related Earnings | 131,908 | 133,440 | 246,711 | 243,375 |
Realized Performance Revenues | 64,513 | 122,907 | 176,589 | 279,506 |
Realized Performance Compensation | (25,016) | (52,081) | (79,659) | (102,637) |
Realized Principal Investment Income (Loss) | 17,416 | 42,906 | 27,763 | 68,045 |
Total Net Realizations | 56,913 | 113,732 | 124,693 | 244,914 |
Total Segment Distributable Earnings | 188,821 | 247,172 | 371,404 | 488,289 |
Segment Assets | 7,924,981 | 7,924,981 | ||
Operating Segments | Hedge Fund Solutions Segment | ||||
Segment Reporting Information [Line Items] | ||||
Base Management Fees | 145,455 | 136,990 | 285,111 | 274,318 |
Transaction, Advisory and Other Fees, Net | 859 | 723 | 1,617 | 1,041 |
Management Fee Offsets | 4 | (38) | ||
Total Management and Advisory Fees, Net | 146,318 | 137,713 | 286,690 | 275,359 |
Fee Related Compensation | (40,353) | (36,622) | (86,544) | (79,576) |
Other Operating Expenses | (17,807) | (21,112) | (36,474) | (38,997) |
Fee Related Earnings | 88,158 | 79,979 | 163,672 | 156,786 |
Realized Performance Revenues | 1,482 | 11,960 | 3,249 | 16,051 |
Realized Performance Compensation | (2,175) | (945) | (3,588) | |
Realized Principal Investment Income (Loss) | (331) | 12,306 | (940) | 12,023 |
Total Net Realizations | 1,151 | 22,091 | 1,364 | 24,486 |
Total Segment Distributable Earnings | 89,309 | 102,070 | 165,036 | 181,272 |
Segment Assets | 2,238,985 | 2,238,985 | ||
Operating Segments | Credit Segment | ||||
Segment Reporting Information [Line Items] | ||||
Base Management Fees | 145,565 | 147,550 | 290,893 | 288,078 |
Transaction, Advisory and Other Fees, Net | 5,873 | 5,256 | 11,343 | 8,886 |
Management Fee Offsets | (2,890) | (3,279) | (5,786) | (6,620) |
Total Management and Advisory Fees, Net | 148,548 | 149,527 | 296,450 | 290,344 |
Fee Related Performance Revenues | 8,528 | 2,552 | 16,443 | 3,655 |
Fee Related Compensation | (57,086) | (54,310) | (126,495) | (112,984) |
Other Operating Expenses | (36,424) | (40,466) | (75,165) | (72,705) |
Fee Related Earnings | 63,566 | 57,303 | 111,233 | 108,310 |
Realized Performance Revenues | 1,973 | 7,946 | 11,643 | 16,843 |
Realized Performance Compensation | (224) | (3,468) | (2,546) | (6,839) |
Realized Principal Investment Income (Loss) | 280 | 20,925 | 3,532 | 24,108 |
Total Net Realizations | 2,029 | 25,403 | 12,629 | 34,112 |
Total Segment Distributable Earnings | 65,595 | $ 82,706 | 123,862 | $ 142,422 |
Segment Assets | $ 3,278,666 | $ 3,278,666 |
Reconciliation of Total Segment
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | $ 2,516,069 | $ 1,486,806 | $ (559,895) | $ 3,511,677 | ||
Less: Unrealized Performance Revenues | [1] | (1,067,923) | (157,398) | 2,385,523 | (821,731) | |
Less: Unrealized Principal Investment (Income) Loss | 331,762 | (37,345) | (627,603) | 131,699 | ||
Less: Interest and Dividend Revenue | [2] | (26,290) | (45,991) | (63,889) | (92,690) | |
Less: Other Revenue | [3] | 55,606 | 20,150 | (82,545) | 6,961 | |
Total Expenses | 1,172,681 | 862,240 | 534,606 | 1,903,404 | ||
Less: Unrealized Performance Allocations Compensation | [4] | (454,813) | (64,518) | 942,565 | (351,533) | |
Less: Equity-Based Compensation | [5] | (89,341) | (53,105) | (176,813) | (119,881) | |
Less: Interest Expense | [6] | (38,924) | (43,230) | (80,464) | (84,868) | |
Total Other Income | 158,373 | 61,131 | (169,596) | 191,456 | ||
Total Income (Loss) Before Provision (Benefit) for Taxes | 1,501,761 | 685,697 | (1,264,097) | 1,799,729 | ||
Less: Unrealized Performance Revenues | [1] | (1,067,923) | (157,398) | 2,385,523 | (821,731) | |
Total Assets | 28,844,381 | 28,844,381 | $ 32,585,506 | |||
Total Assets | 20,903,299 | 20,903,299 | ||||
Less: Unrealized Principal Investment (Income) Loss | 331,762 | (37,345) | (627,603) | 131,699 | ||
Less: Interest and Dividend Revenue | [2] | (26,290) | (45,991) | (63,889) | (92,690) | |
Less: Other Revenue | [3] | 55,606 | 20,150 | (82,545) | 6,961 | |
Plus: Unrealized Performance Allocations Compensation | [4] | 454,813 | 64,518 | (942,565) | 351,533 | |
Plus: Equity Based Compensation | [5] | 89,341 | 53,105 | 176,813 | 119,881 | |
Plus: Interest Expense | [6] | 38,924 | 43,230 | 80,464 | 84,868 | |
Amortization of Intangibles | [7] | 16,483 | 16,483 | 32,966 | 32,966 | |
Transaction-Related Charges | [8] | 76,160 | 106,994 | 123,154 | 196,445 | |
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Revenues | [9] | 1,112,881 | 1,322,723 | 2,253,437 | 2,417,241 | |
Total Expenses | [4] | 488,274 | 561,421 | 1,044,725 | 1,094,003 | |
Total Segment Distributable Earnings | 624,607 | 761,302 | 1,208,712 | 1,323,238 | ||
Total Assets | 20,903,299 | 20,903,299 | ||||
Consolidation Adjustments and Reconciling Items | ||||||
Segment Reporting Information [Line Items] | ||||||
Less: Unrealized Performance Revenues | [1] | (1,067,923) | (157,398) | 2,385,523 | (821,731) | |
Less: Unrealized Principal Investment (Income) Loss | [10] | (223,316) | 56,353 | 393,294 | (83,572) | |
Less: Interest and Dividend Revenue | [10] | (26,290) | (45,991) | (63,889) | (92,690) | |
Less: Other Revenue | [3] | 55,606 | 20,150 | (82,545) | 6,961 | |
Impact of Consolidation | [11] | (141,599) | (35,119) | 179,519 | (104,968) | |
Amortization of Intangibles | [11] | 387 | 387 | 774 | 774 | |
Transaction-Related Charges | [8] | (1,310) | (4,174) | (2,140) | (2,706) | |
Less: Unrealized Performance Allocations Compensation | [4] | (454,813) | (64,518) | 942,565 | (351,533) | |
Less: Equity-Based Compensation | [5] | (89,341) | (53,105) | (176,813) | (119,881) | |
Less: Interest Expense | [6] | (38,924) | (43,230) | (80,464) | (84,868) | |
Impact of Consolidation | [11] | (9,020) | (14,411) | (20,479) | (25,272) | |
Amortization of Intangibles | [7] | (16,096) | (16,096) | (32,192) | (32,192) | |
Transaction-Related Charges | [8] | (77,470) | (111,168) | (125,294) | (199,151) | |
Less: Unrealized Performance Revenues | [1] | (1,067,923) | (157,398) | 2,385,523 | (821,731) | |
Less: Unrealized Principal Investment (Income) Loss | [10] | (223,316) | 56,353 | 393,294 | (83,572) | |
Less: Interest and Dividend Revenue | [10] | (26,290) | (45,991) | (63,889) | (92,690) | |
Less: Other Revenue | [3] | 55,606 | 20,150 | (82,545) | 6,961 | |
Plus: Unrealized Performance Allocations Compensation | [4] | 454,813 | 64,518 | (942,565) | 351,533 | |
Plus: Equity Based Compensation | [5] | 89,341 | 53,105 | 176,813 | 119,881 | |
Plus: Interest Expense | [6] | 38,924 | 43,230 | 80,464 | 84,868 | |
Segment Adjustment | ||||||
Segment Reporting Information [Line Items] | ||||||
Intersegment Eliminations | 1,257 | 1,709 | 2,796 | 3,496 | ||
Intersegment Eliminations | 1,257 | 1,709 | 2,796 | 3,496 | ||
Impact of Consolidation | ||||||
Segment Reporting Information [Line Items] | ||||||
Impact of Consolidation | [11] | (158,373) | (61,131) | 169,596 | (191,456) | |
Total Assets | [11] | (7,941,082) | (7,941,082) | |||
Impact of Consolidation | [11] | $ (290,952) | $ (81,839) | $ 369,594 | $ (271,152) | |
[1] | This adjustment removes Unrealized Performance Revenues on a segment basis. | |||||
[2] | This adjustment removes Interest and Dividend Revenue on a segment basis. | |||||
[3] | This adjustment removes Other Revenue on a segment basis. For the three months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $(55.6) million and $(17.1) million, and included $(56.7) million and $(20.8) million of foreign exchange gains (losses), respectively. For the six months ended June 30, 2020 and 2019, Other Revenue on a GAAP basis was $82.6 million and $(6.8) million, and included $80.3 million and $(8.3) million of foreign exchange gains (losses), respectively. | |||||
[4] | This adjustment removes Unrealized Performance Allocations Compensation. | |||||
[5] | This adjustment removes Equity-Based Compensation on a segment basis. | |||||
[6] | This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. | |||||
[7] | 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. | |||||
[8] | 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 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. | |||||
[9] | Total Segment Revenues is comprised of the following: | |||||
[10] | This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. | |||||
[11] | This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the 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, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
Reconciliation of Total Segme_2
Reconciliation of Total Segments to Income (Loss) Before Provision for Taxes and Total Assets (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Fee Related Performance Revenues | $ 15,033 | $ 13,624 | $ 27,499 | $ 21,403 | |
Total Segment Realized Performance Revenues | 117,210 | 354,435 | 296,901 | 608,942 | |
Total Segment Realized Performance Compensation | (47,001) | (134,711) | (125,946) | (226,512) | |
Other revenue | (55,580) | (17,120) | 82,600 | (6,870) | |
Other Operating Income (Expense) [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Foreign exchange gains (losses) | 56,700 | 20,800 | 80,300 | (8,300) | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Segment Management and Advisory Fees, Net | 976,733 | 844,156 | 1,917,300 | 1,658,218 | |
Fee Related Performance Revenues | 15,033 | 13,624 | 27,499 | 21,403 | |
Total Segment Realized Performance Revenues | 102,177 | 341,386 | 269,410 | 588,155 | |
Total Segment Realized Principal Investment Income | 18,938 | 123,557 | 39,228 | 149,465 | |
Total Revenues | [1] | 1,112,881 | 1,322,723 | 2,253,437 | 2,417,241 |
Total Segment Fee Related Compensation | 306,904 | 293,834 | 653,168 | 617,865 | |
Total Segment Realized Performance Compensation | 37,787 | 125,466 | 109,089 | 210,706 | |
Total Segment Other Operating Expenses | 143,583 | 142,121 | 282,468 | 265,432 | |
Total Expenses | [2] | 488,274 | 561,421 | 1,044,725 | 1,094,003 |
Other revenue | $ (55,600) | $ (17,100) | $ 82,600 | $ (6,800) | |
[1] | Total Segment Revenues is comprised of the following: | ||||
[2] | This adjustment removes Unrealized Performance Allocations Compensation. |
Reconciliation of Total Segme_3
Reconciliation of Total Segments to Reported on the Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Investment Income - Realized Performance Allocations | $ 101,910 | $ 332,520 | $ 269,440 | $ 574,895 | |
Realized Performance Revenues | 15,033 | 13,624 | 27,499 | 21,403 | |
Compensation and Benefits Compensation | 458,457 | 438,521 | 935,000 | 909,918 | |
Incentive Fee Compensation | 8,432 | 8,886 | 14,954 | 14,292 | |
Realized Performance Allocations Compensation | 38,569 | 125,825 | 110,992 | 212,220 | |
Realized Performance Revenues | 117,210 | 354,435 | 296,901 | 608,942 | |
Segment Adjustment | [1] | 575 | 8 | 616 | |
Total Compensation and Benefits | 505,458 | 573,232 | 1,060,946 | 1,136,430 | |
General, Administrative and Other | 169,051 | 175,308 | 326,617 | 321,370 | |
Investment Income - Realized Performance Allocations | 101,910 | 332,520 | 269,440 | 574,895 | |
Realized Performance Revenues | 117,210 | 354,435 | 296,901 | 608,942 | |
Realized Performance Compensation | 47,001 | 134,711 | 125,946 | 226,512 | |
Investment Income Realized | 61,102 | 145,040 | 109,797 | 218,301 | |
Investment Income Realized | [2] | (42,164) | (21,483) | (70,569) | (68,836) |
Total Segment | (47,001) | (134,711) | (125,946) | (226,512) | |
Management and Advisory Fees, Net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 969,728 | 840,378 | 1,904,560 | 1,650,104 | |
Incentive Fees | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 15,300 | 21,915 | 27,461 | 34,047 | |
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 976,733 | 844,156 | 1,917,300 | 1,658,218 | |
Realized Performance Revenues | 15,033 | 13,624 | 27,499 | 21,403 | |
Realized Performance Revenues | 102,177 | 341,386 | 269,410 | 588,155 | |
Realized Performance Revenues | (15,033) | (13,624) | (27,499) | (21,403) | |
General, Administrative and Other | 143,583 | 142,121 | 282,468 | 265,432 | |
Realized Performance Revenues | 102,177 | 341,386 | 269,410 | 588,155 | |
Less: Realized Performance Revenues | (102,177) | (341,386) | (269,410) | (588,155) | |
Realized Performance Compensation | (37,787) | (125,466) | (109,089) | (210,706) | |
Investment Income Realized | 18,938 | 123,557 | 39,228 | 149,465 | |
Less: Equity-Based Compensation - Operating Compensation | (87,205) | (50,225) | (172,539) | (113,933) | |
Less: Equity-Based Compensation - Performance Compensation | (2,136) | (2,880) | (4,274) | (5,948) | |
Total Compensation and Benefits | 306,904 | 293,834 | 653,168 | 617,865 | |
Less: Fee Related Performance Compensation | (7,078) | (6,365) | (12,583) | (9,858) | |
Less: Equity-based compensation - Performance Compensation Related | (2,136) | (2,880) | (4,274) | (5,948) | |
Total Segment | 37,787 | 125,466 | 109,089 | 210,706 | |
Operating Segments | Management and Advisory Fees, Net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 976,733 | 844,156 | 1,917,300 | 1,658,218 | |
Segment Adjustment | |||||
Segment Reporting Information [Line Items] | |||||
Segment Adjustment | [1] | 575 | 8 | 616 | |
General, Administrative and Other | [3] | (25,468) | (33,187) | (44,149) | (55,938) |
Segment Adjustment | [4] | (71,426) | (100,827) | (121,876) | (187,978) |
Segment Adjustment | Management and Advisory Fees, Net | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | [5] | $ 7,005 | $ 3,778 | $ 12,740 | $ 8,114 |
[1] | Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. | ||||
[2] | 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. | ||||
[3] | 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. | ||||
[4] | Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures. | ||||
[5] | 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. |