Blackstone 8K Reports Third Quarter 2020 Results | BX 28 Oct 20

Exhibit 99.1

LOGO

Blackstone Reports Third Quarter 2020 Results

New York, October 28, 2020: Blackstone (NYSE:BX) today reported its third quarter 2020 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported excellent results in the third quarter, characterized by strong investment performance and earnings growth. We are also seeing positive forward momentum in both realizations and deployment. We remain the partner of choice for limited partners globally, who face a challenging investment environment of historically low interest rates. As the pandemic continues to disrupt the global economy and society at large, our people remain unwavering in their dedication to serving our clients.”

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

Dividend

Blackstone has declared a quarterly dividend of $0.54 per share to record holders of Class A common stock at the close of business on November 9, 2020. This dividend will be paid on November 16, 2020.

Quarterly Investor Call Details

Blackstone will host its third quarter 2020 investor conference via public webcast on October 28, 2020 at 9:00 a.m. ET. To register, please use the following link: https://event.webcasts.com/viewer/event.jsp?ei=1376908&tp_key=43b6f4dc8d. For those unable to listen to the

Blackstone

345 Park Avenue New York NY 10154

T 212 583 5000

www.blackstone.com

live broadcast, there will be a webcast replay on the Shareholders section of Blackstone’s website at https://ir.blackstone.com/.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $584 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-Looking Statements

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to the impact of the novel coronavirus (“COVID-19”), as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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

Investor and Media Relations Contacts

Weston Tucker

Blackstone

Tel: +1 (212) 583-5231

tucker@blackstone.com

Christine Anderson

Blackstone

Tel: +1 (212) 583-5182

christine.anderson@blackstone.com

Blackstone’s Third

Quarter 2020 Earnings

October 28, 2020

Blackstone |

BLACKSTONE’S THIRD QUARTER 2020 GAAP RESULTS

GAAP Net Income was $1.7 billion for the quarter and $447 million year-to-date (“YTD”). GAAP Net Income

Attributable to The Blackstone Group Inc. was $795 million for the quarter and $296

million year-to-date.

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

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

3Q'19

3Q'20

3Q'19 YTD

3Q'20 YTD

3Q'19 LTM

3Q'20 LTM

Revenues

Management and Advisory Fees, Net

878,151

1,053,851

2,528,255

2,958,411

3,325,809

3,902,311

Incentive Fees

8,254

13,498

42,301

40,959

58,098

128,569

Investment Income (Loss)

Performance Allocations

Realized

446,550

371,406

1,021,445

640,846

1,532,833

1,358,401

Unrealized

176,370

1,403,480

998,101

(981,678)

191,796

(853,447)

Principal Investments

Realized

74,642

61,017

292,943

170,814

402,844

271,349

Unrealized

15,391

295,308

147,090

(332,295)

(71,075)

(264,382)

Total Investment Income (Loss)

712,953

2,131,211

2,459,579

(502,313)

2,056,398

511,921

Interest and Dividend Revenue

42,482

26,497

130,252

85,505

178,137

137,651

Other

93,273

(192,159)

86,403

(109,559)

133,326

(115,969)

Total Revenues

1,735,113

3,032,898

5,246,790

2,473,003

5,751,768

4,564,483

Expenses

Compensation and Benefits

Compensation

462,766

460,983

1,372,684

1,395,983

1,746,474

1,843,629

Incentive Fee Compensation

5,419

7,385

19,711

22,339

29,971

46,928

Performance Allocations Compensation

Realized

155,663

142,149

367,883

253,141

580,057

548,200

Unrealized

94,907

509,474

446,440

(433,091)

143,572

(339,246)

Total Compensation and Benefits

718,755

1,119,991

2,206,718

1,238,372

2,500,074

2,099,511

General, Administrative and Other

171,067

171,041

492,437

497,658

645,956

684,629

Interest Expense

53,362

39,540

138,960

120,460

183,604

181,148

Fund Expenses

4,036

2,274

12,509

10,962

16,086

16,191

Total Expenses

947,220

1,332,846

2,850,624

1,867,452

3,345,720

2,981,479

Other Income

Change in Tax Receivable Agreement Liability

174,606

(7,693)

174,606

(8,212)

174,606

(21,251)

Net Gains (Losses) from Fund Investment Activities

48,450

108,752

239,906

(60,325)

180,672

(17,402)

Income Before Provision (Benefit) for Taxes

1,010,949

1,801,111

2,810,678

537,014

2,761,326

1,544,351

Provision (Benefit) for Taxes

(156,786)

100,960

(76,895)

89,672

(47,529)

118,615

Net Income

1,167,735

1,700,151

2,887,573

447,342

2,808,855

1,425,736

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

Consolidated Entities

(8)

6,868

3,567

(12,027)

(736)

(15,715)

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

88,406

259,761

355,983

(90,938)

287,183

29,858

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings

299,900

638,803

961,490

253,814

966,743

631,951

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

779,437

794,719

1,566,533

296,493

1,555,665

779,642

Net Income Per Share of Class A Common Stock, Basic

1.15

1.14

2.32

0.43

2.30

1.13

Net Income Per Share of Class A Common Stock, Diluted

1.15

1.13

2.32

0.43

2.30

1.13

Income Before Provision (Benefit) for Taxes Margin

58.3%

59.4%

53.6%

21.7%

48.0%

33.8%

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

Blackstone |

BLACKSTONE’S THIRD QUARTER 2020 HIGHLIGHTS

Financial Measures

Fee

Earnings

(“FRE”)

$611

million

($0.51/share)

the

quarter,

39%

year-

over-year

–

FRE was $2.2 billion for the last twelve months (“LTM”)

($1.81/share), up 30% year-

over-year

Distributable Earnings (“DE”) of $772 million ($0.63/share) in the quarter, up 9% year-

over-year

–

DE was $2.8 billion for the LTM ($2.24/share), up 4% year-over-year

Net Accrued Performance Revenues of $3.6 billion ($2.96/share)

Capital Metrics

Total Assets Under Management (“AUM”) of $584.4 billion, up 5% year-over-year

–

Fee-Earning AUM of $444.5 billion, up 13% year-over-year

Inflows of $15.1 billion in the quarter and $88.7 billion for the LTM

Realizations of $7.9 billion in the quarter and $33.3 billion for the LTM

Deployment of $8.6 billion in the quarter and $53.6 billion for the LTM

Capital Returned

to Shareholders

Dividend of $0.54 per common share payable on November 16, 2020

–

Dividends of $1.91 per common share for the LTM

Repurchased 2.0 million common shares in the quarter and 10.5 million common shares

for the LTM

$769 million to be distributed to shareholders with respect to the third quarter

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

Notes on page 32.

Blackstone |

BLACKSTONE’S THIRD QUARTER 2020 SEGMENT EARNINGS

Fee

Earnings

per

based

end

period

Outstanding

(see

page

23,

Summary).

per

Common

based

Attributable to

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

of the last three quarters. See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.

% Change

($ in thousands, except per share data)

3Q'19

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Management and Advisory Fees, Net

880,345

1,057,840

20%

2,538,563

2,975,140

17%

Fee Related Performance Revenues

34,225

64,950

90%

55,628

92,449

66%

Fee Related Compensation

(329,834)

(360,633)

(947,699)

(1,013,801)

Other Operating Expenses

(144,351)

(151,213)

(409,783)

(433,681)

Fee Related Earnings

440,385

610,944

39%

1,236,709

1,620,107

31%

Realized Performance Revenues

420,840

319,954

(24)%

1,008,995

589,364

(42)%

Realized Performance Compensation

(143,870)

(121,730)

(15)%

(354,576)

(230,819)

(35)%

Realized Principal Investment Income

36,148

15,884

(56)%

185,613

55,112

(70)%

Net Realizations

313,118

214,108

(32)%

840,032

413,657

(51)%

Total Segment Distributable Earnings

753,503

825,052

2,076,741

2,033,764

(2)%

Net Interest Income (Loss)

(7,767)

(12,731)

64%

(29,306)

n/m

Taxes and Related Payables

(35,815)

(40,225)

12%

(120,055)

(127,268)

Distributable Earnings

709,921

772,096

1,956,741

1,877,190

(4)%

Additional Metrics:

FRE per Share

0.37

0.51

38%

1.03

1.35

31%

DE per Common Share

0.58

0.63

1.59

1.52

(4)%

Total Segment Revenues

1,371,558

1,458,628

3,788,799

3,712,065

(2)%

Total Assets Under Management

554,022,343

584,376,213

554,022,343

584,376,213

Fee-Earning Assets Under Management

394,138,443

444,511,078

13%

394,138,443

444,511,078

13%

Blackstone |

SUMMARY OF FINANCIALS

LTM Fee Related Earnings of $1.81 per share, an increase of 30% year-over-year.

LTM Total Segment Distributable Earnings were $3.0 billion, an increase of 7% year-over-year.

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

Related Performance Revenues).

Fee Related Earnings per Share

Segment Distributable Earnings

($ in millions)

FRE/Share

FRE Margin

Private

Equity

Real

Estate

Hedge Fund

Solutions

Credit &

Insurance

3Q’20 LTM total:

$3,026

$1.39

$1.81

3Q'19 LTM

3Q'20 LTM

48.6%

52.1%

$1,437

$911

$440

$238

Blackstone |

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

Strong unrealized appreciation across strategies led to a 31% increase in Net Accrued Performance Revenues to

$3.6

billion ($2.96/share) quarter-over-quarter.

Investment Performance

(appreciation / gross returns)

Net Accrued Performance Revenues

($ in millions)

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

net returns were 2.8% and 1.3% for 3Q’20 and 3Q’20 LTM, respectively. BPS Composite returns were 9.2% gross and 8.7% net for the six

months ended 3Q’20.

Credit Composite

net returns were 4.0% and 0.6% for 3Q’20 and 3Q’20 LTM, respectively. Credit Composite returns were 15.0% gross and 14.0% net

for the six months ended 3Q’20. See notes on

pages 32-33 for additional details on investment performance.

3Q'20

3Q'20 LTM

Real Estate

Opportunistic

6.4%

3.5%

Core+

3.5%

4.9%

Private Equity

Corporate Private Equity

12.2%

2.3%

Tactical Opportunities

10.7%

Secondaries

(13.2)%

(3.2)%

Hedge Fund Solutions

BPS Composite

3.0%

2.1%

Credit & Insurance

Credit Composite

4.4%

1.1%

$2,708

$3,550

$1,081

$239

2Q'20

Net

Performance

Revenues

Net

Realized

Distributions

3Q'20

Blackstone |

($ in millions)

3Q'20

3Q'20 LTM

3Q'20

3Q'20 LTM

3Q'20

3Q'20 LTM

Real Estate

3,873

29,456

1,854

13,111

2,126

20,580

Opportunistic

259

3,040

579

7,829

679

11,280

Core+

2,299

14,769

517

3,114

830

7,779

BREDS

1,314

11,647

758

2,168

617

1,521

Private Equity

3,942

26,317

4,665

11,994

4,134

20,482

Corporate Private Equity

1,071

14,788

3,225

6,670

593

9,639

Tactical Opportunities

2,721

5,174

745

2,643

1,345

4,333

Secondaries

150

5,468

696

2,681

691

3,659

Infrastructure

888

1,505

2,851

Hedge Fund Solutions

1,718

10,986

193

1,332

558

2,753

Credit & Insurance

5,605

21,928

1,225

6,839

1,783

9,776

Total Blackstone

15,138

88,687

7,938

33,276

8,601

53,591

Inflows

Realizations

Capital Deployed

Inflows were $15.1 billion in the quarter, bringing LTM inflows to $88.7 billion.

Realizations were $7.9 billion in the quarter and $33.3 billion for the LTM.

Deployed $8.6 billion in the quarter and $53.6 billion for the LTM.

–

Committed an additional $7.7 billion that was not yet deployed in the quarter.

Corporate Private Equity also includes Core Private Equity, Life Sciences, and BTAS. Tactical Opportunities also includes Blackstone Growth.

CAPITAL METRICS – ADDITIONAL DETAIL

Blackstone |

ASSETS UNDER MANAGEMENT

Total AUM increased to $584.4 billion, up 5% year-over-year, with $15.1 billion of inflows in the quarter

and $88.7 billion for the LTM.

Fee-Earning AUM of $444.5 billion was up 13% year-over-year, with $11.8 billion of inflows in the quarter

and $105.5 billion for the LTM.

Perpetual Capital AUM reached $115.2 billion, up 19% year-over-year.

$141.9

$143.6

$81.2

$77.8

$173.9

$189.2

$157.1

$173.8

$554.0

$584.4

3Q'19

3Q'20

$104.6

$105.2

$74.9

$71.7

$97.9

$129.7

$116.7

$137.9

$394.1

$444.5

3Q'19

3Q'20

$29.2

$32.4

$5.7

$7.4

$14.4

$15.1

$47.7

$60.4

$97.0

$115.2

3Q'19

3Q'20

Total AUM

($ in billions)

Fee-Earning AUM

($ in billions)

Perpetual Capital AUM

($ in billions)

Private Equity

Real Estate

Hedge Fund Solutions

Credit & Insurance

Blackstone |

ADDITIONAL CAPITAL DETAIL

Invested Performance Eligible AUM reached $266.8 billion at quarter end, up 13% year-over-year.

Undrawn capital (“Total Dry Powder”) available for investment of $152.4 billion.

Private Equity

Real Estate

Hedge Fund Solutions

Credit & Insurance

Invested Performance Eligible AUM

($ in billions)

Total Dry Powder

($ in billions)

Private

Equity

Real

Estate

Hedge Fund

Solutions

Credit &

Insurance

3Q’20 total:

$152.4

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

$25.2

$26.8

$43.9

$45.7

$67.8

$78.5

$98.7

$115.9

$235.6

$266.8

3Q'19

3Q'20

$45.9

$73.4

$3.8

$29.3

Blackstone |

Segment Highlights

Blackstone |

REAL ESTATE

Total AUM:

Increased 11% to $173.8 billion with inflows of $3.9 billion in the quarter and $29.5

billion for the LTM.

–

Inflows during the quarter included $2.3 billion in Core+ and $1.3 billion in BREDS.

–

Perpetual Capital increased 27% to $60.4 billion, representing nearly 35% of Total AUM.

Realizations:

$1.9 billion in the quarter and $13.1 billion for the LTM; realizations in the quarter included the IPO of

India’s second REIT, Mindspace Business Parks.

–

Signed definitive agreement on October 15 for the recapitalization of BioMed Realty Trust for $14.6 billion,

generating $6.5 billion of cumulative profits for BREP VIII and co-investors; expected close in the fourth quarter.

Capital Deployed:

$2.1 billion in the quarter and $20.6 billion for the LTM; deployments included BPP’s interest in a

studio and Class A office portfolio in Hollywood, CA.

–

Committed an additional $905 million that was not yet deployed in the quarter.

Appreciation:

Opportunistic funds and Core+ funds appreciated 6.4% and 3.5% in the quarter, respectively, reflecting

continued strong performance from investments in sectors including global logistics properties and life science

office.

% Change

($ in thousands)

3Q'19

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Management Fees, Net

332,529

409,210

23%

894,345

1,207,638

35%

Fee Related Performance Revenues

30,600

55,327

81%

48,348

66,383

37%

Fee Related Compensation

(132,183)

(138,342)

(344,794)

(375,278)

Other Operating Expenses

(43,897)

(42,566)

(3)%

(122,997)

(127,567)

Fee Related Earnings

187,049

283,629

52%

474,902

771,176

62%

Realized Performance Revenues

282,379

18,872

(93)%

558,134

96,801

(83)%

Realized Performance Compensation

(85,544)

(7,343)

(91)%

(183,186)

(33,282)

(82)%

Realized Principal Investment Income

17,968

4,946

(72)%

63,257

13,819

(78)%

Net Realizations

214,803

16,475

(92)%

438,205

77,338

(82)%

Segment Distributable Earnings

401,852

300,104

(25)%

913,107

848,514

(7)%

Segment Revenues

663,476

488,355

(26)%

1,564,084

1,384,641

(11)%

Total AUM

157,076,273

173,796,594

11%

157,076,273

173,796,594

11%

Fee-Earning AUM

116,749,305

137,877,640

18%

116,749,305

137,877,640

18%

Blackstone |

PRIVATE EQUITY

Total AUM:

Increased 9% to $189.2 billion with inflows of $3.9 billion in the quarter and $26.3 billion for the LTM.

–

Inflows included $2.3 billion for Blackstone Growth which officially launched in the quarter.

–

Fee-Earning AUM increased 32% to $129.7 billion, driven by commencement of investment periods for BCP VIII,

BEP III, and BXLS V in the first quarter.

Realizations:

$4.7 billion in the quarter and $12.0 billion for the LTM; realizations in the quarter included sale of

Cheniere Energy Partners.

Capital Deployed:

$4.1 billion in the quarter and $20.5 billion for the LTM.

–

Committed an additional $4.1 billion that was not yet deployed in the quarter, including the acquisition of

Ancestry.com and Takeda Consumer Healthcare.

Appreciation:

Corporate Private Equity increased 12.2% in the quarter, driven by strong performance in both private

and public holdings.

–

Tactical Opportunities increased 10.7% in the quarter; Secondaries declined (13.2)% in the quarter, which reflects

a reporting lag of its underlying funds.

% Change

($ in thousands)

3Q'19

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Management and Advisory Fees, Net

255,278

348,173

36%

785,977

883,905

12%

Fee Related Compensation

(105,773)

(119,301)

13%

(318,467)

(322,494)

Other Operating Expenses

(38,235)

(45,702)

20%

(112,865)

(131,530)

17%

Fee Related Earnings

111,270

183,170

65%

354,645

429,881

21%

Realized Performance Revenues

124,231

295,239

138%

403,737

471,828

17%

Realized Performance Compensation

(52,034)

(112,713)

117%

(154,671)

(192,372)

24%

Realized Principal Investment Income

11,977

10,248

(14)%

80,022

38,011

(52)%

Net Realizations

84,174

192,774

129%

329,088

317,467

(4)%

Segment Distributable Earnings

195,444

375,944

92%

683,733

747,348

Segment Revenues

391,486

653,660

67%

1,269,736

1,393,744

10%

Total AUM

173,858,400

189,153,816

173,858,400

189,153,816

Fee-Earning AUM

97,936,871

129,701,748

32%

97,936,871

129,701,748

32%

Blackstone |

HEDGE FUND SOLUTIONS

Total AUM:

$77.8 billion with inflows of $1.7 billion in the quarter and $11.0

billion for the

LTM.

–

Strong market appreciation of $2.3 billion in the quarter.

–

Continued fundraising strength in new products with higher effective management fees.

–

October 1 subscriptions of $486 million are not yet included in Total AUM.

Returns:

BPS Composite gross return of 3.0% in the quarter (2.8% net), bringing year-to-date gross return to

(0.1)%

((0.7)% net).

–

Gross returns of 2.1% over the last twelve months (1.3% net), with less than one half of the volatility of broader

markets.

% Change

($ in thousands)

3Q'19

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Management Fees, Net

141,367

147,315

416,726

434,005

Fee Related Compensation

(38,898)

(41,405)

(118,474)

(127,949)

Other Operating Expenses

(20,495)

(19,652)

(4)%

(59,492)

(56,126)

(6)%

Fee Related Earnings

81,974

86,258

238,760

249,930

Realized Performance Revenues

1,848

5,618

204%

17,899

8,867

(50)%

Realized Performance Compensation

(1,000)

(1,257)

26%

(4,588)

(2,202)

(52)%

Realized Principal Investment Income

1,480

(150)

n/m

13,503

(1,090)

n/m

Net Realizations

2,328

4,211

81%

26,814

5,575

(79)%

Segment Distributable Earnings

84,302

90,469

265,574

255,505

(4)%

Segment Revenues

144,695

152,783

448,128

441,782

(1)%

Total AUM

81,154,390

77,788,713

(4)%

81,154,390

77,788,713

(4)%

Fee-Earning AUM

74,877,976

71,699,793

(4)%

74,877,976

71,699,793

(4)%

Blackstone |

CREDIT & INSURANCE

Total AUM:

$143.6 billion with inflows of $5.6 billion in the quarter and $21.9

billion for the

LTM.

–

Inflows of $1.7 billion for the fourth mezzanine / opportunistic fund in the quarter, bringing total raised to

$2.8

billion, including a close subsequent to quarter end.

–

Closed 3 CLOs (2 U.S. and 1 European) in the quarter for $1.1 billion and 10 CLOs in the LTM for $4.5 billion.

–

Global Direct Lending had inflows of $585 million in the quarter, bringing Total AUM to $21.3 billion and,

subsequent to quarter end, began fundraising for the new continuously offered non-traded BDC, BCRED.

Realizations:

$1.2 billion in the quarter and $6.8 billion for the LTM.

Capital Deployed:

$1.8 billion in the quarter and $9.8 billion for the LTM; committed an additional $2.6 billion that

was not yet deployed in the quarter.

–

Deployment activity was driven primarily by the Global Direct Lending platform, which had one of its most active

quarters since the launch of BGSL in 2018.

Returns:

Gross Credit Composite return of 4.4% for the quarter (4.0% net), driven by strong portfolio performance

as well as continued recovery in both public and private credit markets.

BCRED

–

Blackstone

Private

Credit

Fund,

BGSL

–

Blackstone

GSO

Secured

Lending.

% Change

($ in thousands)

3Q'19

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Management Fees, Net

151,171

153,142

441,515

449,592

Fee Related Performance Revenues

3,625

9,623

165%

7,280

26,066

258%

Fee Related Compensation

(52,980)

(61,585)

16%

(165,964)

(188,080)

13%

Other Operating Expenses

(41,724)

(43,293)

(114,429)

(118,458)

Fee Related Earnings

60,092

57,887

(4)%

168,402

169,120

Realized Performance Revenues

12,382

225

(98)%

29,225

11,868

(59)%

Realized Performance Compensation

(5,292)

(417)

(92)%

(12,131)

(2,963)

(76)%

Realized Principal Investment Income

4,723

840

(82)%

28,831

4,372

(85)%

Net Realizations

11,813

648

(95)%

45,925

13,277

(71)%

Segment Distributable Earnings

71,905

58,535

(19)%

214,327

182,397

(15)%

Segment Revenues

171,901

163,830

(5)%

506,851

491,898

(3)%

Total AUM

141,933,280

143,637,090

141,933,280

143,637,090

Fee-Earning AUM

104,574,291

105,231,897

104,574,291

105,231,897

Blackstone |

Supplemental Details

Blackstone |

TOTAL SEGMENTS

($ in thousands)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19 YTD

3Q'20 YTD

Base Management Fees

809,729

873,368

910,396

941,794

1,043,770

2,372,562

2,895,960

Transaction, Advisory and Other Fees, Net

92,702

95,073

50,665

48,292

33,628

219,347

132,585

Management Fee Offsets

(22,086)

(22,768)

(20,494)

(13,353)

(19,558)

(53,346)

(53,405)

Total Management and Advisory Fees, Net

880,345

945,673

940,567

976,733

1,057,840

2,538,563

2,975,140

Fee Related Performance Revenues

34,225

156,373

12,466

15,033

64,950

55,628

92,449

Fee Related Compensation

(329,834)

(388,879)

(346,264)

(306,904)

(360,633)

(947,699)

(1,013,801)

Other Operating Expenses

(144,351)

(161,359)

(138,885)

(143,583)

(151,213)

(409,783)

(433,681)

Fee Related Earnings

440,385

551,808

467,884

541,279

610,944

1,236,709

1,620,107

Realized Performance Revenues

420,840

651,647

167,233

102,177

319,954

1,008,995

589,364

Realized Performance Compensation

(143,870)

(249,359)

(71,302)

(37,787)

(121,730)

(354,576)

(230,819)

Realized Principal Investment Income

36,148

38,542

20,290

18,938

15,884

185,613

55,112

Total Net Realizations

313,118

440,830

116,221

83,328

214,108

840,032

413,657

Total Segment Distributable Earnings

753,503

992,638

584,105

624,607

825,052

2,076,741

2,033,764

Net Interest Income (Loss)

(7,767)

(2,496)

(3,941)

(12,634)

(12,731)

(29,306)

Taxes and Related Payables

(35,815)

(76,104)

(23,053)

(63,990)

(40,225)

(120,055)

(127,268)

Distributable Earnings

709,921

914,038

557,111

547,983

772,096

1,956,741

1,877,190

Additional Metrics:

Total Segment Revenues

1,371,558

1,792,235

1,140,556

1,112,881

1,458,628

3,788,799

3,712,065

Total Assets Under Management

554,022,343

571,122,463

538,007,285

564,330,088

584,376,213

554,022,343

584,376,213

Fee-Earning Assets Under Management

394,138,443

408,074,852

423,055,037

435,825,935

444,511,078

394,138,443

444,511,078

Blackstone |

Total AUM Rollforward

($ in millions)

Fee-Earning AUM Rollforward

($ in millions)

Inflows include contributions, capital raised, other increases in available capital, purchases, inter-segment allocations and acquisitions. Outflows represent

redemptions, client withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity

represents gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. AUM is reported in the segment where the assets are

managed.

Three Months Ended September 30, 2020

Twelve Months Ended September 30, 2020

Real

Private

Hedge Fund

Credit &

Real

Private

Hedge Fund

Credit &

Estate

Equity

Solutions

Insurance

Estate

Equity

Solutions

Insurance

Beginning Balance

166,724

184,118

75,668

137,820

564,330

157,076

173,858

81,154

141,933

554,022

Inflows

3,873

3,942

1,718

5,605

15,138

29,456

26,317

10,986

21,928

88,687

Outflows

(1,655)

(546)

(1,665)

(1,679)

(5,545)

(3,512)

(1,907)

(13,306)

(9,576)

(28,302)

Net Flows

2,217

3,396

3,926

9,593

25,945

24,410

(2,321)

12,351

60,386

Realizations

(1,854)

(4,665)

(193)

(1,225)

(7,938)

(13,111)

(11,994)

(1,332)

(6,839)

(33,276)

Market Activity

6,710

6,305

2,260

3,116

18,390

3,887

2,879

287

(3,809)

3,244

Ending Balance

173,797

189,154

77,789

143,637

584,376

173,797

189,154

77,789

143,637

584,376

% Change

11%

(4)%

Total

Three Months Ended September 30, 2020

Twelve Months Ended September 30, 2020

Real

Private

Hedge Fund

Credit &

Real

Private

Hedge Fund

Credit &

Estate

Equity

Solutions

Insurance

Estate

Equity

Solutions

Insurance

Beginning Balance

134,260

129,284

70,200

102,081

435,826

116,749

97,937

74,878

104,574

394,138

Inflows

2,699

3,485

1,212

4,395

11,792

32,809

44,473

10,401

17,844

105,528

Outflows

(598)

(348)

(1,597)

(2,226)

(4,770)

(5,641)

(6,978)

(12,304)

(8,795)

(33,719)

Net Flows

2,101

3,136

(385)

2,169

7,022

27,168

37,495

(1,902)

9,049

71,809

Realizations

(1,435)

(1,599)

(191)

(868)

(4,093)

(8,998)

(4,456)

(1,287)

(5,189)

(19,930)

Market Activity

2,951

(1,119)

2,076

1,849

5,757

2,958

(1,274)

(3,202)

(1,507)

Ending Balance

137,878

129,702

71,700

105,232

444,511

137,878

129,702

71,700

105,232

444,511

% Change

18%

32%

(4)%

13%

Total

ASSETS UNDER MANAGEMENT - ROLLFORWARD

Blackstone |

$9.56

$9.21

3Q'19

3Q'20

DECONSOLIDATED BALANCE SHEET HIGHLIGHTS

At September 30, 2020, Blackstone had $5.6 billion in total cash, cash equivalents, and corporate treasury

investments and $11.1

billion of cash and net investments, or $9.21 per share.

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

–

On September 29, 2020, Blackstone issued $500 million of 10.5-year notes at 1.6% coupon and $400 million of 30-

year notes at 2.8% coupon.

Balance Sheet Highlights exclude the consolidated

Blackstone Funds. GP/Fund Investments include Blackstone investments in Real Estate, Private Equity,

Hedge Fund Solutions, and Credit & Insurance, which were $807 million, $772 million, $113 million, and $256 million, respectively, as of September 30, 2020.

Cash and Net Investments per share amounts are calculated using period end DE Shares Outstanding (see page 23, Share Summary).

A+ / A+

rated by S&P and Fitch

$1.6B

undrawn credit revolver

with September 2023 maturity

$5.6B

total cash

and corporate treasury

Cash and Net Investments

(per share)

($ in millions)

3Q'20

Cash and Cash Equivalents

2,629

Corporate Treasury

Investments

2,935

GP/Fund Investments

1,948

Net Accrued Performance

Revenues

3,550

Cash and Net Investments

11,062

Outstanding Bonds (at par)

5,658

Blackstone |

3Q’20 QoQ

Rollforward

($ in millions)

3Q’20 LTM Rollforward

($ in millions)

Net

Accrued

Performance

Revenues

(“NAPR”)

are

presented

net

performance

compensation

and

not

include

clawback

amounts,

any,

which

are

disclosed

in the 10-K/Q. Tactical Opportunities includes Blackstone Growth. See additional notes on page 33.

($ in millions, except per share data)

3Q'19

2Q'20

3Q'20

Per Share

Real Estate

BREP IV

0.01

BREP V

0.01

BREP VI

0.04

BREP VII

501

238

0.20

BREP VIII

597

604

782

0.65

BREP IX

0.07

BREP Europe IV

221

105

104

0.09

BREP Europe V

171

179

0.15

BREP Asia I

162

102

0.08

BPP

257

225

227

0.19

BREIT

BREDS

0.00

BTAS

0.04

Real Estate

2,142

1,441

1,831

1.52

Private Equity

BCP IV

0.02

BCP VI

723

521

668

0.56

BCP VII

382

307

458

0.38

BCP Asia

0.03

BEP I

133

0.02

BEP II

BEP III

BCEP

0.07

Tactical Opportunities

106

148

0.12

Secondaries

133

155

0.06

Life Sciences

0.01

BTAS/Other

0.02

Private Equity

1,607

1,199

1,544

1.29

Hedge Fund Solutions

0.04

Credit & Insurance

235

121

0.10

Net Accrued Performance Revenues

4,042

2,708

3,550

2.96

2Q'20

Net

Performance

Revenues

Net

Realized

Distributions

3Q'20

Real Estate

1,441

435

(45)

1,831

Private Equity

1,199

529

(184)

1,544

HFS

(5)

Credit &

Insurance

(5)

121

Total

2,708

1,081

(239)

3,550

QoQ Change

31%

3Q'19

Net

Performance

Revenues

Net

Realized

Distributions

3Q'20

Real Estate

2,142

164

(475)

1,831

Private Equity

1,607

250

(313)

1,544

HFS

(93)

Credit &

Insurance

235

(64)

(51)

121

Total

4,042

440

(932)

3,550

YoY Change

(12)%

NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL

Blackstone |

Notes

page

21.

BREP

–

Blackstone

Real

Estate

Partners,

BREIT

–

Blackstone

Real

Estate

Income

Trust,

BPP

–

Blackstone

Property

Partners,

BREDS

–

Blackstone

Real

Estate

Debt

Strategies,

BCP

–

Blackstone

Capital

Partners,

BCOM

–

Blackstone

Communications.

* Represents

funds

that

are

currently

their

investment

period

and

open

ended

funds.

($/€

in thousands, except where noted)

Committed

Available

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

Fund (Investment Period Beginning Date / Ending Date)

Capital

Capital (b)

Value

MOIC (c)

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Real Estate

Pre-BREP

140,714

n/a

345,190

2.5x

345,190

2.5x

33%

BREP I (Sep 1994 / Oct 1996)

380,708

n/a

1,327,708

2.8x

1,327,708

2.8x

40%

BREP II (Oct 1996 / Mar 1999)

1,198,339

n/a

2,531,614

2.1x

2,531,614

2.1x

19%

BREP III (Apr 1999 / Apr 2003)

1,522,708

n/a

3,330,406

2.4x

3,330,406

2.4x

21%

BREP IV (Apr 2003 / Dec 2005)

2,198,694

33,534

0.1x

4,544,926

2.2x

4,578,460

1.7x

28%

12%

BREP V (Dec 2005 / Feb 2007)

5,539,418

170,327

0.7x

13,070,382

2.4x

13,240,709

2.3x

12%

11%

BREP VI (Feb 2007 / Aug 2011)

11,060,444

566,600

2.3x

27,181,375

2.5x

27,747,975

2.5x

13%

BREP VII (Aug 2011 / Apr 2015)

13,496,823

1,711,538

5,559,666

1.2x

22,853,427

2.1x

28,413,093

1.9x

22%

14%

BREP VIII (Apr 2015 / Jun 2019)

16,567,256

2,737,862

18,983,652

1.5x

7,274,206

1.7x

26,257,858

1.5x

26%

14%

*BREP IX (Jun 2019 / Dec 2024)

20,891,658

14,629,333

7,094,976

1.1x

1,001,040

1.4x

8,096,016

1.2x

n/m

16%

Total Global BREP

72,996,762

19,078,733

$ 32,408,755

1.3x

83,460,274

2.2x

115,869,029

1.9x

18%

15%

BREP Int'l (Jan 2001 / Sep 2005)

824,172

€

n/a

1,373,170

€

2.1x

1,373,170

€

2.1x

23%

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

1,629,748

n/a

2,576,670

1.8x

2,576,670

1.8x

BREP Europe III (Jun 2008 / Sep 2013)

3,205,167

380,890

0.6x

5,738,120

2.5x

6,119,010

2.1x

20%

14%

BREP Europe IV (Sep 2013 / Dec 2016)

6,710,146

1,337,217

2,555,556

1.3x

8,999,310

2.0x

11,554,866

1.8x

22%

15%

BREP Europe V (Dec 2016 / Oct 2019)

7,949,959

1,602,716

7,876,826

1.3x

778,365

2.6x

8,655,191

1.3x

50%

10%

*BREP Europe VI (Oct 2019 / Apr 2025)

9,786,439

7,287,480

2,380,731

1.0x

n/a

2,380,731

1.0x

n/a

(12)%

Total BREP Europe

30,105,631

€

10,227,413

€

13,194,003

€

1.2x

19,465,635

€

2.1x

32,659,638

€

1.6x

16%

12%

BREP Asia I (Jun 2013 / Dec 2017)

4,598,089

1,281,985

3,132,457

1.4x

4,295,614

1.9x

7,428,071

1.6x

20%

12%

*BREP Asia II (Dec 2017 / Jun 2023)

7,302,307

4,160,393

3,402,501

1.1x

228,667

1.6x

3,631,168

1.1x

44%

BREP Co-Investment (f)

7,055,974

154,831

1,977,271

2.7x

13,309,647

2.1x

15,286,918

2.2x

15%

16%

Total BREP

127,797,844

36,663,494

56,042,120

1.3x

125,828,531

2.2x

181,870,651

1.8x

17%

15%

*Core+ BPP (Various) (g)

n/a

34,168,173

n/a

7,275,374

n/a

41,443,547

n/a

n/m

*Core+ BREIT (Various) (h)

n/a

18,967,371

n/a

581,771

n/a

19,549,142

n/a

*BREDS High-Yield (Various) (i)

19,993,148

10,225,525

2,641,559

1.0x

13,095,502

1.3x

15,737,061

1.2x

11%

10%

Private Equity

Corporate Private Equity

BCP I (Oct 1987 / Oct 1993)

859,081

n/a

1,741,738

2.6x

1,741,738

2.6x

19%

BCP II (Oct 1993 / Aug 1997)

1,361,100

n/a

3,256,819

2.5x

3,256,819

2.5x

32%

BCP III (Aug 1997 / Nov 2002)

3,967,422

n/a

9,184,688

2.3x

9,184,688

2.3x

14%

BCOM (Jun 2000 / Jun 2006)

2,137,330

24,575

12,368

n/a

2,953,649

1.4x

2,966,017

1.4x

BCP IV (Nov 2002 / Dec 2005)

6,773,182

189,764

164,991

2.1x

21,417,821

2.9x

21,582,812

2.9x

36%

BCP V (Dec 2005 / Jan 2011)

21,009,112

1,035,259

739,282

1.5x

37,212,862

1.9x

37,952,144

1.9x

BCP VI (Jan 2011 / May 2016)

15,202,400

1,164,970

10,954,940

1.7x

17,663,965

2.1x

28,618,905

1.9x

18%

12%

BCP VII (May 2016 / Feb 2020)

18,808,535

2,514,185

21,067,624

1.3x

1,763,411

1.8x

22,831,035

1.4x

48%

12%

*BCP VIII (Feb 2020 / Feb 2026)

24,839,835

24,799,808

(739)

n/a

(739)

n/a

Energy I (Aug 2011 / Feb 2015)

2,441,558

142,138

646,099

0.9x

3,328,596

1.9x

3,974,695

1.7x

15%

10%

Energy II (Feb 2015 / Feb 2020)

4,913,595

280,193

3,595,443

0.8x

350,161

2.1x

3,945,604

0.9x

58%

(12)%

*Energy III (Feb 2020 / Feb 2026)

4,213,068

3,653,144

494,356

1.0x

n/a

494,356

1.0x

n/a

n/m

*BCP Asia (Dec 2017 / Dec 2023)

2,417,554

1,319,702

1,575,821

1.5x

160,023

2.2x

1,735,844

1.5x

159%

28%

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

4,756,127

1,429,242

5,022,859

1.5x

468,926

1.8x

5,491,785

1.5x

36%

17%

Total Corporate Private Equity

113,699,899

36,552,980

44,273,044

1.3x

99,502,659

2.1x

143,775,703

1.8x

16%

15%

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2020

(a)

Blackstone |

Notes on page 21. BXLS –

Blackstone Life Sciences, BGSL –

Blackstone / GSO Secured Lending.

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

($/€

in thousands, except where noted)

Committed

Available

Unrealized Investments

Realized Investments

Total Investments

Net IRRs (d)

Fund (Investment Period Beginning Date / Ending Date)

Capital

Capital (b)

Value

MOIC (c)

Value

MOIC (c)

Value

MOIC (c)

Realized

Total

Private Equity (continued)

Tactical Opportunities

*Tactical Opportunities (Various)

22,722,239

8,056,105

11,386,499

1.1x

10,532,523

1.7x

21,919,022

1.4x

17%

*Tactical Opportunities Co-Investment and Other (Various)

8,868,691

1,894,773

5,592,365

1.4x

2,575,630

1.5x

8,167,995

1.4x

19%

15%

Total Tactical Opportunities

31,590,930

9,950,878

16,978,864

1.2x

13,108,153

1.7x

30,087,017

1.4x

18%

10%

*Blackstone Growth (Jul 2020 / Jul 2025)

2,458,155

2,162,576

241,414

n/m

n/a

241,414

n/m

n/a

n/m

Strategic Partners (Secondaries)

Strategic Partners I-V (Various) (k)

11,865,053

1,673,692

770,700

n/m

16,943,163

n/m

17,713,863

1.5x

n/a

13%

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

4,362,750

1,188,738

1,130,603

n/m

3,353,270

n/m

4,483,873

1.4x

n/a

13%

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

7,489,970

2,410,875

4,415,089

n/m

2,083,051

n/m

6,498,140

1.3x

n/a

12%

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

1,749,807

325,923

1,114,593

n/m

426,661

n/m

1,541,254

1.2x

n/a

13%

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

10,763,600

5,241,049

2,719,357

n/m

295,999

n/m

3,015,356

1.2x

n/a

17%

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

7,678,402

2,828,096

2,436,489

n/m

1,438,476

n/m

3,874,965

1.2x

n/a

11%

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

3,250,100

2,942,929

96,155

n/m

n/a

96,155

2.0x

n/a

n/m

Total Strategic Partners (Secondaries)

47,159,682

16,611,302

12,682,986

n/m

24,540,620

n/m

37,223,606

1.4x

n/a

13%

*Infrastructure (Various)

13,658,063

10,643,283

2,878,931

1.0x

n/a

2,878,931

1.0x

n/a

(10)%

Life Sciences

Clarus IV (Jan 2018 / Jan 2020)

910,000

406,941

596,134

1.4x

22,327

1.3x

618,461

1.4x

13%

14%

*BXLS V (Jan 2020 / Jan 2025)

4,679,227

4,477,028

242,132

1.2x

n/a

242,132

1.2x

n/a

n/m

Credit

Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)

2,000,000

97,114

17,566

0.9x

4,774,711

1.6x

4,792,277

1.6x

n/a

17%

Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)

4,120,000

1,033,255

933,246

0.7x

5,519,086

1.6x

6,452,332

1.3x

n/a

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

6,639,133

2,248,377

4,648,184

1.1x

2,249,490

1.6x

6,897,674

1.2x

n/a

Stressed / Distressed I (Sep 2009 / May 2013)

3,253,143

76,000

1,305

0.0x

5,774,236

1.6x

5,775,541

1.3x

n/a

Stressed / Distressed II (Jun 2013 / Jun 2018)

5,125,000

551,437

951,873

0.7x

4,395,666

1.2x

5,347,539

1.0x

n/a

(2)%

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

7,356,380

4,313,296

1,704,234

0.9x

1,466,071

1.3x

3,170,305

1.0x

n/a

(2)%

Energy I (Nov 2015 / Nov 2018)

2,856,867

1,063,343

1,451,567

0.9x

1,080,273

1.8x

2,531,840

1.1x

n/a

*Energy II (Feb 2019 / Feb 2024)

3,616,081

2,980,268

680,742

1.1x

192,782

1.5x

873,524

1.1x

n/a

18%

European Senior Debt I (Feb 2015 / Feb 2019)

1,964,689

€

285,535

€

1,676,028

€

1.0x

1,399,136

€

1.5x

3,075,164

€

1.1x

n/a

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

4,088,344

€

3,416,289

€

662,325

€

1.0x

123,072

€

1.8x

785,397

€

1.1x

n/a

n/m

Total Credit Drawdown Funds (l)

41,872,262

16,704,048

13,130,787

0.9x

27,165,985

1.5x

40,296,772

1.2x

n/a

*Direct Lending BDC BGSL (Various) (m)

3,770,397

1,243,928

2,540,903

n/a

186,679

n/a

2,727,582

n/a

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2020 – (CONT’D)

(a)

Blackstone |

n/m

Not

meaningful

generally

due

the

limited

time

since

initial

investment.

n/a

Not

applicable.

(a)

Excludes investment vehicles where Blackstone does not earn fees.

(b)

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

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

(c)

Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance Revenues, divided by

invested capital.

(d)

Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to September 30, 2020 IRR

total invested

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

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

Date.

(e)

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

International II

performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.

(f)

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

co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues.

(g)

BPP represents the Core+ real estate funds which invest with a more modest risk profile and lower leverage. Committed Capital

and Available

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

(h)

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

distributions, net of servicing fees. The BREIT net return reflects a per share blended return, assuming BREIT had a single share class,

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

returns are not representative of the returns experienced by any particular investor or share class. Inception to date net returns are presented on

an annualized basis and are from January 1, 2017. Committed Capital and Available Capital are not regularly reported to investors in our Core+

strategy and are not applicable in the context of this vehicle.

(i)

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

(j)

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

private equity.

(k)

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

is not available on a timely basis, returns are calculated from results that are reported on a three month lag and therefore do not include the

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

(l)

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

drawdown funds

presented.

(m)

Unrealized Investment Value reflects BGSL’s net asset value as of September 30, 2020. Realized Investment Value represents BGSL’s cash

distributions. BGSL’s net return is annualized and calculated since inception starting on November 20, 2018, as the change in

NAV per share during

the period, plus distributions per share (assuming dividends and distributions are reinvested in accordance with the Company’s dividend

reinvestment plan) divided by the beginning NAV per share.

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

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2020 – NOTES

Blackstone |

SHAREHOLDER DIVIDENDS

Generated $0.63 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount

to $1.52 per common share.

Blackstone declared a quarterly dividend of $0.54 per common share to record holders as of November 9, 2020;

payable on November 16, 2020.

detailed

description

Blackstone’s

dividend

policy

and

the

definition

Distributable

Earnings

can

found

pages

34-35,

Definitions

and

Dividend

Policy.

See additional notes on page 33.

% Change

($ in thousands, except per share data)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

vs. 3Q'19

3Q'19 YTD

3Q'20 YTD

vs. 3Q'19 YTD

Distributable Earnings

709,921

914,038

557,111

547,983

772,096

1,956,741

1,877,190

(4)%

Add: Other Payables Attributable

to Common Shareholders

24,578

63,796

9,200

45,673

23,461

(5)%

78,849

78,334

(1)%

DE before Certain Payables

734,499

977,834

566,311

593,656

795,557

2,035,590

1,955,524

(4)%

Percent to Common Shareholders

56%

57%

58%

56%

58%

DE before Certain Payables Attributable to

Common Shareholders

413,900

556,133

325,990

344,390

464,233

12%

1,144,234

1,134,613

(1)%

Less: Other Payables Attributable to

Common Shareholders

(24,578)

(63,796)

(9,200)

(45,673)

(23,461)

(5)%

(78,849)

(78,334)

(1)%

DE Attributable to Common Shareholders

389,322

492,337

316,790

298,717

440,772

13%

1,065,385

1,056,279

(1)%

DE per Common Share

0.58

0.72

0.46

0.43

0.63

$1.59

$1.52

(4)%

Less: Retained Capital per Common Share

(0.09)

(0.11)

(0.07)

(0.06)

(0.09)

(0.25)

(0.22)

(12)%

Actual Dividend per Common Share

0.49

0.61

0.39

0.37

0.54

10%

1.34

1.30

(3)%

Record Date

Nov 9, 2020

Payable Date

Nov 16, 2020

Blackstone |

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

Participating Common Shares

675,640,119

680,457,424

687,869,905

697,597,036

700,649,135

Participating Partnership Units

523,338,040

515,973,657

507,101,000

504,912,855

500,054,874

Distributable Earnings Shares Outstanding

1,198,978,159

1,196,431,081

1,194,970,905

1,202,509,891

1,200,704,009

SHARE SUMMARY

Distributable Earnings Shares Outstanding as of quarter end of 1,201 million shares.

–

Repurchased 2.0 million common shares in the quarter and 10.5 million common shares for the LTM.

–

Available authorization remaining was $307 million at September 30, 2020.

Notes on page 33.

Blackstone |

Reconciliations and

Disclosures

Blackstone |

Notes on page 26-27.

QTD

YTD

LTM

($ in thousands)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

Net Income (Loss) Attributable to

The Blackstone Group Inc.

779,437

483,149

(1,066,492)

568,266

794,719

1,566,533

296,493

1,555,665

779,642

Net Income (Loss) Attributable to Non-

Controlling Interests in Blackstone Holdings

299,900

378,137

(880,117)

495,128

638,803

961,490

253,814

966,743

631,951

Net Income (Loss) Attributable to Non-

Controlling Interests in Consolidated Entities

88,406

120,796

(645,077)

294,378

259,761

355,983

(90,938)

287,183

29,858

Net Income (Loss) Attributable to Redeemable

Non-Controlling Interests in Consolidated

Entities

(8)

(3,688)

(15,469)

(3,426)

6,868

3,567

(12,027)

(736)

(15,715)

Net Income (Loss)

1,167,735

978,394

(2,607,155)

1,354,346

1,700,151

2,887,573

447,342

2,808,855

1,425,736

Provision (Benefit) for Taxes

(156,786)

28,943

(158,703)

147,415

100,960

(76,895)

89,672

(47,529)

118,615

Income (Loss) Before Provision (Benefit)

for Taxes

1,010,949

1,007,337

(2,765,858)

1,501,761

1,801,111

2,810,678

537,014

2,761,326

1,544,351

Transaction-Related Charges (a)

(82,547)

94,715

46,994

76,160

47,283

113,898

170,437

190,329

265,152

Amortization of Intangibles (b)

16,483

16,482

16,483

49,449

64,841

65,931

Impact of Consolidation (c)

(88,398)

(117,108)

660,546

(290,952)

(266,629)

(359,550)

102,965

(286,447)

(14,143)

Unrealized Performance Revenues (d)

(176,604)

(128,333)

3,453,446

(1,067,923)

(1,403,480)

(998,335)

982,043

(191,804)

853,710

Unrealized Performance Allocations

Compensation (e)

94,907

93,845

(1,397,378)

454,813

509,474

446,440

(433,091)

143,572

(339,246)

Unrealized Principal Investment (Income)

Loss (f)

5,219

(34,974)

616,610

(223,316)

(177,125)

(78,353)

216,169

82,306

181,195

Other Revenues (g)

(92,843)

6,435

(138,151)

55,606

192,623

(85,882)

110,078

(132,736)

116,513

Equity-Based Compensation (h)

58,570

51,743

87,472

89,341

89,862

178,451

266,675

221,553

318,418

Administrative Fee Adjustment (i)

2,719

Taxes and Related Payables (j)

(35,815)

(76,104)

(23,053)

(63,990)

(40,225)

(120,055)

(127,268)

(174,118)

(203,372)

Distributable Earnings

709,921

914,038

557,111

547,983

772,096

1,956,741

1,877,190

2,678,822

2,791,228

Taxes and Related Payables (j)

35,815

76,104

23,053

63,990

40,225

120,055

127,268

174,118

203,372

Net Interest (Income) Loss (k)

7,767

2,496

3,941

12,634

12,731

(55)

29,306

(11,978)

31,802

Total Segment Distributable Earnings

753,503

992,638

584,105

624,607

825,052

2,076,741

2,033,764

2,840,962

3,026,402

Realized Performance Revenues (l)

(420,840)

(651,647)

(167,233)

(102,177)

(319,954)

(1,008,995)

(589,364)

(1,492,692)

(1,241,011)

Realized Performance Compensation (m)

143,870

249,359

71,302

37,787

121,730

354,576

230,819

554,221

480,178

Realized Principal Investment Income (n)

(36,148)

(38,542)

(20,290)

(18,938)

(15,884)

(185,613)

(55,112)

(232,711)

(93,654)

Fee Related Earnings

440,385

551,808

467,884

541,279

610,944

1,236,709

1,620,107

1,669,780

2,171,915

Adjusted EBITDA Reconciliation

Distributable Earnings

709,921

914,038

557,111

547,983

772,096

1,956,741

1,877,190

2,678,822

2,791,228

Interest Expense (o)

52,815

57,351

41,540

38,924

39,228

137,683

119,692

179,475

177,043

Taxes and Related Payables (j)

35,815

76,104

23,053

63,990

40,225

120,055

127,268

174,118

203,372

Depreciation and Amortization

6,895

7,666

7,512

8,110

9,568

18,684

25,190

24,648

32,856

Adjusted EBITDA

805,446

1,055,159

629,216

659,007

861,117

2,233,163

2,149,340

3,057,063

3,204,499

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

Blackstone |

Note:

See pages 34-35, Definitions and Dividend Policy.

(a)

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

from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily

equity-based compensation

charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in

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

(b)

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

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

(c)

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

includes the elimination of Blackstone’s interest in these funds and the removal of amounts associated with the ownership of Blackstone consolidated

operating partnerships held by non-controlling interests.

(d)

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

performance

revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation.

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

GAAP Unrealized Performance Allocations

176,370

128,231

(3,453,081)

1,067,923

1,403,480

998,101

(981,678)

191,796

(853,447)

Segment Adjustment

234

102

(365)

234

(365)

(263)

Unrealized Performance Revenues

176,604

128,333

(3,453,446)

1,067,923

1,403,480

998,335

(982,043)

191,804

(853,710)

(e)

This adjustment removes Unrealized Performance Allocations Compensation.

(f)

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

Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation,

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

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

GAAP Unrealized Principal Investment Income (Loss)

15,391

67,913

(959,365)

331,762

295,308

147,090

(332,295)

(71,075)

(264,382)

Segment Adjustment

(20,610)

(32,939)

342,755

(108,446)

(118,183)

(68,737)

116,126

(11,231)

83,187

Unrealized Principal Investment Income (Loss)

(5,219)

34,974

(616,610)

223,316

177,125

78,353

(216,169)

(82,306)

(181,195)

(g)

This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from

consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of certain Transaction-Related Charges.

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

GAAP Other Revenue

93,273

(6,410)

138,180

(55,580)

(192,159)

86,403

(109,559)

133,326

(115,969)

Segment Adjustment

(430)

(25)

(29)

(26)

(464)

(521)

(519)

(590)

(544)

Other Revenues

92,843

(6,435)

138,151

(55,606)

(192,623)

85,882

(110,078)

132,736

(116,513)

(h)

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

(i)

This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership

Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in

Blackstone’s segment presentation.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES

Blackstone |

(k)

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

Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the

removal of interest

expense associated with the Tax Receivable Agreement.

(k)

(l)

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

(m)

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

(n)

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

(o)

This adjustment adds back Interest Expense on a segment basis.

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

Taxes

26,933

63,930

16,274

48,462

32,518

76,486

97,254

115,461

161,184

Related Payables

8,882

12,174

6,779

15,528

7,707

43,569

30,014

58,657

42,188

Taxes and Related Payables

35,815

76,104

23,053

63,990

40,225

120,055

127,268

174,118

203,372

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

GAAP Interest and Dividend Revenue

42,482

52,146

35,084

23,924

26,497

130,252

85,505

178,137

137,651

Segment Adjustment

2,566

2,709

2,515

2,366

7,486

4,881

13,316

7,590

Interest and Dividend Revenue

45,048

54,855

37,599

26,290

26,497

137,738

90,386

191,453

145,241

GAAP Interest Expense

53,362

60,688

41,644

39,276

39,540

138,960

120,460

183,604

181,148

Segment Adjustment

(547)

(3,337)

(104)

(352)

(312)

(1,277)

(768)

(4,129)

(4,105)

Interest Expense

52,815

57,351

41,540

38,924

39,228

137,683

119,692

179,475

177,043

Net Interest Income (Loss)

(7,767)

(2,496)

(3,941)

(12,634)

(12,731)

(29,306)

11,978

(31,802)

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

QTD

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

GAAP Shares of Class A Common Stock Outstanding

666,257,305

671,157,692

676,630,489

676,874,583

680,680,748

Unvested Participating Common Shares

9,382,814

9,299,732

11,239,416

20,722,453

19,968,387

Total Participating Common Shares

675,640,119

680,457,424

687,869,905

697,597,036

700,649,135

Participating Partnership Units

523,338,040

515,973,657

507,101,000

504,912,855

500,054,874

Distributable Earnings Shares Outstanding

1,198,978,159

1,196,431,081

1,194,970,905

1,202,509,891

1,200,704,009

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

QTD

YTD

LTM

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

Total GAAP Weighted-Average Shares of Class A Common Stock

Outstanding - Basic

675,963,129

679,420,988

676,305,359

698,534,168

700,184,580

674,714,040

695,049,997

675,196,841

691,121,413

Weighted-Average Shares of Unvested Deferred Restricted

Class A Common Stock

256,629

274,520

123,340

343,386

265,007

287,578

263,789

284,314

Weighted-Average Blackstone Holdings Partnership Units

505,754,449

Total GAAP Weighted-Average Shares of Class A Common

Stock Outstanding - Diluted

676,219,758

679,695,508

676,305,359

1,204,411,957

700,527,966

674,979,047

695,337,575

675,460,630

691,405,727

(j)

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

(Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. Related Payables represent tax-related payables including the amount

payable under the Tax Receivable Agreement. Please refer to page 34 for the full definition of Taxes and Related Payables.

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - NOTES

Blackstone |

During 3Q’20, Blackstone deconsolidated CLO vehicles as a result of ownership restructuring. The deconsolidation of CLO vehicles reduced Blackstone’s GAAP

consolidated Total Assets, Total Liabilities and Non-Controlling Interests in Consolidated Entities by $6.8 billion, $6.6 billion, and $216 million, respectively.

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

BLACKSTONE’S THIRD QUARTER 2020 GAAP BALANCE SHEET RESULTS

($ in thousands) (unaudited)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

Assets

Cash and Cash Equivalents

2,468,563

2,172,441

2,068,326

1,976,512

2,628,895

Cash Held by Blackstone Funds and Other

375,981

351,210

318,003

343,201

85,218

Investments

22,204,460

22,281,682

16,430,701

18,973,373

14,423,456

Accounts Receivable

755,777

975,075

696,729

498,600

477,601

Due from Affiliates

2,464,163

2,594,873

2,706,112

2,431,512

2,817,304

Intangible Assets, Net

415,257

397,508

379,758

362,008

344,258

Goodwill

1,869,860

Other Assets

402,670

382,493

541,896

501,351

544,905

Right-of-Use Assets

490,882

471,059

542,757

568,663

544,361

Deferred Tax Assets

938,158

1,089,305

1,392,352

1,319,301

1,305,707

Total Assets

32,385,771

32,585,506

26,946,494

28,844,381

25,041,565

Liabilities and Equity

Loans Payable

11,270,245

11,080,723

10,392,903

10,839,568

5,570,888

Due to Affiliates

984,969

1,026,871

1,247,098

1,268,571

1,064,336

Accrued Compensation and Benefits

3,623,258

3,796,044

1,965,237

2,551,056

3,349,418

Securities Sold, Not Yet Purchased

87,051

75,545

51,498

51,395

51,231

Repurchase Agreements

163,059

154,118

105,133

80,620

80,597

Operating Lease Liabilities

558,253

542,994

605,809

637,946

621,408

Accounts Payable, Accrued Expenses and Other Liabilities

1,069,475

806,159

1,000,708

919,195

804,009

Total Liabilities

17,756,310

17,482,454

15,368,386

16,348,351

11,541,887

Redeemable Non-Controlling Interests in Consolidated Entities

93,667

87,651

72,066

68,564

63,384

Equity

Class A Common Stock, $0.00001 par value (680,680,748 shares

issued and outstanding as of September 30, 2020)

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

outstanding as of September 30, 2020)

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

outstanding as of September 30, 2020)

Additional Paid-in-Capital

6,292,765

6,428,647

6,298,093

6,272,040

6,243,722

Retained Earnings

456,814

609,625

(871,948)

(574,295)

(36,432)

Accumulated Other Comprehensive Loss

(35,173)

(28,495)

(41,533)

(36,758)

(27,407)

Non-Controlling Interests in Consolidated Entities

4,035,513

4,186,069

3,591,160

3,900,429

3,946,190

Non-Controlling Interests in Blackstone Holdings

3,785,868

3,819,548

2,530,263

2,866,043

3,310,214

Total Equity

14,535,794

15,015,401

11,506,042

12,427,466

13,436,294

Total Liabilities and Equity

32,385,771

32,585,506

26,946,494

28,844,381

25,041,565

Blackstone |

(a)

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

(b)

Represents GAAP accrued performance revenue recorded within Due from Affiliates.

(c)

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

(d)

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

and Due to Affiliates.

(e)

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

Affiliates.

(f)

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

Agreements and securities sold short, not yet purchased.

(g)

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

investments in consolidated Blackstone Funds which have been eliminated in consolidation.

(h)

This adjustment removes amounts related to consolidated Blackstone Funds.

RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES

($ in thousands)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

Investments of Consolidated Blackstone Funds

8,481,233

8,380,698

7,275,752

7,943,531

1,500,398

Equity Method Investments

Partnership Investments

3,864,453

4,035,675

3,553,538

3,873,346

4,144,249

Accrued Performance Allocations

7,003,889

7,180,449

3,761,585

4,715,510

6,112,904

Corporate Treasury Investments

2,588,529

2,419,587

1,653,950

2,205,843

2,390,982

Other Investments

266,356

265,273

185,876

235,143

274,923

Total GAAP Investments

22,204,460

22,281,682

16,430,701

18,973,373

14,423,456

Accrued

Performance

Allocations

GAAP

7,003,889

7,180,449

3,761,585

4,715,510

6,112,904

Impact of Consolidation (a)

237

384

Due from Affiliates -

GAAP (b)

18,955

154,980

20,910

20,642

21,499

Less: Net Realized Performance Revenues (c)

(129,129)

(214,662)

(31,719)

(38,592)

(75,328)

Less:

Accrued

Performance

Compensation

GAAP

(d)

(2,851,817)

(3,021,899)

(1,563,672)

(1,989,219)

(2,509,357)

Net Accrued Performance Revenues

4,042,135

4,099,252

2,187,123

2,708,360

3,549,719

Corporate

Treasury

Investments

GAAP

2,588,529

2,419,587

1,653,950

2,205,843

2,390,982

Impact of Consolidation (a)

163,183

164,243

131,248

141,371

143,131

Other Assets (e)

440,982

602,707

374,064

271,615

525,864

Other Liabilities (f)

(80,086)

(74,898)

(46,635)

(69,326)

(124,734)

Corporate

Treasury

Investments

Deconsolidated

3,112,608

3,111,639

2,112,627

2,549,503

2,935,243

Partnership

and

Other

Investments

GAAP

4,130,809

4,300,948

3,739,414

4,108,489

4,419,172

Impact of Consolidation (g)

(2,289,139)

(2,409,218)

(2,111,945)

(2,316,855)

(2,470,797)

GP/Fund

Investments

Deconsolidated

1,841,670

1,891,730

1,627,469

1,791,634

1,948,375

Loans

Payable

GAAP

11,270,245

11,080,723

10,392,903

10,839,568

5,570,888

Impact of Consolidation (h)

(6,492,686)

(6,479,867)

(5,817,702)

(6,232,787)

(99)

Outstanding Bonds -

Carrying Value

4,777,559

4,600,856

4,575,201

4,606,781

5,570,789

Unamortized Discount

82,336

81,094

79,449

78,319

87,361

Outstanding

Bonds

(at

par)

Deconsolidated

4,859,895

4,681,950

4,654,650

4,685,100

5,658,150

Blackstone |

QTD

YTD

LTM

($ in thousands)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

Management and Advisory Fees, Net

GAAP

878,151

943,900

934,832

969,728

1,053,851

2,528,255

2,958,411

3,325,809

3,902,311

Segment Adjustment (a)

2,194

1,773

5,735

7,005

3,989

10,308

16,729

10,949

18,502

Total Segment

880,345

945,673

940,567

976,733

1,057,840

2,538,563

2,975,140

3,336,758

3,920,813

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Incentive Fees

8,254

87,610

12,161

15,300

13,498

42,301

40,959

58,098

128,569

Investment

Income

Realized

Performance

Allocations

446,550

717,555

167,530

101,910

371,406

1,021,445

640,846

1,532,833

1,358,401

GAAP

454,804

805,165

179,691

117,210

384,904

1,063,746

681,805

1,590,931

1,486,970

Total Segment

Less: Realized Performance Revenues

(420,840)

(651,647)

(167,233)

(102,177)

(319,954)

(1,008,995)

(589,364)

(1,492,692)

(1,241,011)

Segment Adjustment (b)

261

2,855

877

1,574

2,863

Total Segment

34,225

156,373

12,466

15,033

64,950

55,628

92,449

99,813

248,822

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation

462,766

447,646

476,543

458,457

460,983

1,372,684

1,395,983

1,746,474

1,843,629

Incentive Fees Compensation

5,419

24,589

6,522

8,432

7,385

19,711

22,339

29,971

46,928

Realized Performance Allocations Compensation

155,663

295,059

72,423

38,569

142,149

367,883

253,141

580,057

548,200

GAAP

623,848

767,294

555,488

505,458

610,517

1,760,278

1,671,463

2,356,502

2,438,757

Total Segment

Less: Realized Performance Compensation

(143,870)

(249,359)

(71,302)

(37,787)

(121,730)

(354,576)

(230,819)

(554,221)

(480,178)

Less:

Equity-Based

Compensation

Operating

Compensation

(56,139)

(51,612)

(85,334)

(87,205)

(88,180)

(170,072)

(260,719)

(210,040)

(312,331)

Less:

Equity-Based

Compensation

Performance

Compensation

(2,431)

(131)

(2,138)

(2,136)

(1,682)

(8,379)

(5,956)

(11,513)

(6,087)

Segment Adjustment (c)

(91,574)

(77,313)

(50,450)

(71,426)

(38,292)

(279,552)

(160,168)

(353,745)

(237,481)

Total Segment

329,834

388,879

346,264

306,904

360,633

947,699

1,013,801

1,226,983

1,402,680

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

GAAP

171,067

186,971

157,566

169,051

171,041

492,437

497,658

645,956

684,629

Segment Adjustment (d)

(26,716)

(25,612)

(18,681)

(25,468)

(19,828)

(82,654)

(63,977)

(106,148)

(89,589)

Total Segment

144,351

161,359

138,885

143,583

151,213

409,783

433,681

539,808

595,040

Realized Performance Revenues

GAAP

Incentive Fees

8,254

87,610

12,161

15,300

13,498

42,301

40,959

58,098

128,569

Investment

Income

Realized

Performance

Allocations

446,550

717,555

167,530

101,910

371,406

1,021,445

640,846

1,532,833

1,358,401

GAAP

454,804

805,165

179,691

117,210

384,904

1,063,746

681,805

1,590,931

1,486,970

Total Segment

Less: Fee Related Performance Revenues

(34,225)

(156,373)

(12,466)

(15,033)

(64,950)

(55,628)

(92,449)

(99,813)

(248,822)

Segment Adjustment (b)

261

2,855

877

1,574

2,863

Total Segment

420,840

651,647

167,233

102,177

319,954

1,008,995

589,364

1,492,692

1,241,011

RECONCILIATION OF GAAP TO TOTAL SEGMENTS

Blackstone |

QTD

YTD

LTM

($ in thousands)

3Q'19

4Q'19

1Q'20

2Q'20

3Q'20

3Q'19

3Q'20

3Q'19

3Q'20

Realized Performance Compensation

GAAP

Incentive Fee Compensation

5,419

24,589

6,522

8,432

7,385

19,711

22,339

29,971

46,928

Realized Performance Allocations Compensation

155,663

295,059

72,423

38,569

142,149

367,883

253,141

580,057

548,200

GAAP

161,082

319,648

78,945

47,001

149,534

387,594

275,480

610,028

595,128

Total Segment

Less: Fee Related Performance Compensation

(14,781)

(70,158)

(5,505)

(7,078)

(26,122)

(24,639)

(38,705)

(44,294)

(108,863)

Less: Equity-Based Compensation - Performance

Compensation

(2,431)

(131)

(2,138)

(2,136)

(1,682)

(8,379)

(5,956)

(11,513)

(6,087)

Total Segment

143,870

249,359

71,302

37,787

121,730

354,576

230,819

554,221

480,178

Realized Principal Investment Income

GAAP

74,642

100,535

48,695

61,102

61,017

292,943

170,814

402,844

271,349

Segment Adjustment (e)

(38,494)

(61,993)

(28,405)

(42,164)

(45,133)

(107,330)

(115,702)

(170,133)

(177,695)

Total Segment

36,148

38,542

20,290

18,938

15,884

185,613

55,112

232,711

93,654

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

GAAP

Interest and Dividend Revenue

42,482

52,146

35,084

23,924

26,497

130,252

85,505

178,137

137,651

Interest Expense

(53,362)

(60,688)

(41,644)

(39,276)

(39,540)

(138,960)

(120,460)

(183,604)

(181,148)

GAAP

(10,880)

(8,542)

(6,560)

(15,352)

(13,043)

(8,708)

(34,955)

(5,467)

(43,497)

Segment Adjustment (f)

3,113

6,046

2,619

2,718

312

8,763

5,649

17,445

11,695

Total Segment

(7,767)

(2,496)

(3,941)

(12,634)

(12,731)

(29,306)

11,978

(31,802)

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

Statement of Operations (page 1). Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds

Blackstone manages and

excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.

(a)

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

(2)

the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted

against Management and Advisory Fees, Net in the Total Segment measures.

(b)

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

(c)

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

(d)

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

which are presented gross under GAAP but netted against Management and Advisory Fees, Net

in the Total Segment measures. Beginning in 3Q'20,

includes a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which

is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone's segment

presentation.

(e)

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

been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships

held by non-controlling interests.

(f)

Represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in

consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.

RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D)

Blackstone |

NOTES

Notes to page 1 -

Blackstone’s Third Quarter 2020 GAAP Results

Effective July 1, 2019, The Blackstone Group L.P. converted from a Delaware limited partnership to a Delaware corporation, The Blackstone

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

the Conversion, references to “Blackstone,” “the Company,” “our” and similar terms mean The Blackstone Group L.P. and its consolidated

subsidiaries and, as of any time after the Conversion, The Blackstone Group Inc. and its consolidated subsidiaries.

All references to shares or per share amounts prior to the Conversion refer to units or per unit amounts. Unless otherwise noted, references to

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

Income

(Loss)

Before

Provision

(Benefit)

for

Taxes

Margin

calculated

dividing

Income

(Loss)

Before

Provision

(Benefit)

for

Taxes

Total

Revenues.

Notes to page 2 -

Blackstone’s Third Quarter 2020 Highlights

The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable

Blackstone Funds and not those of Blackstone.

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

Notes to page 5 -

Investment Performance and Net Accrued Performance Revenues

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

historical results.

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

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

quarterly

adjusted

beginning

period

market

values

for

the

period.

This

presentation

provides

holistic

view

Core+

including

BREIT

performance.

Effective 1Q’20, Corporate Private Equity appreciation was updated to include Core Private Equity appreciation.

This presentation provides a

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

Results for the Secondaries business (also referred to as Strategic Partners) are reported on a three month lag from the Secondaries’ fund

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

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

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

The

BPS

Composite

gross

and

net

returns

are

based

the

BAAM

Principal

Solutions

(“BPS”)

Composite,

which

does

not

include

BAAM’s

individual

investor solutions (liquid alternatives), strategic capital (seeding and minority interests), strategic opportunities (co-invests), and advisory (non-

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

paying

assets

(net

returns

only)

are

also

excluded.

The

funds/accounts

that

comprise

the

BPS

Composite

are

not

managed

within

single

fund

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

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

performance of an actual fund or account.

Blackstone |

NOTES

–

(CONT’D)

Notes to page 5 -

Investment Performance and Net Accrued Performance Revenues (Cont’d)

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

Composite

now

also

includes

the

long

only

strategy.

The

Credit

Composite

return

weighted

average

(a)

the

return

based

the

combined

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

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

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

GSO in March 2008.

Notes to page 18 –

Net Accrued Performance Revenues –

Additional Detail

Effective

1Q’20,

NAPR

has

been

redefined

exclude

Performance

Revenues

realized

but

not

yet

distributed

the

reporting

date.

This

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

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

Notes to page 22 –

Shareholder Dividends

before

Certain

Payables

represents

Distributable

Earnings

before

the

deduction

for

the

Payable

Under

Tax

Receivable

Agreement

and

tax

expense (benefit) of wholly owned subsidiaries.

Per Share calculations are based on end of period Participating Common Shares (page 23, Share Summary); actual dividends are paid to

shareholders as of the applicable record date.

Retained capital is withheld pro rata from common and Blackstone Holdings Partnership unitholders. Common shareholders’ share was

$63

million for 3Q’20 and $153 million for 3Q’20 YTD.

Common Shareholders receive tax benefits from deductions taken by Blackstone’s corporate tax paying subsidiaries and bear responsibility for

the deduction from Distributable Earnings of the Payable Under Tax Receivable Agreement and certain other tax-related payables.

Notes to page 23 –

Share Summary

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

in dividends.

Blackstone |

DEFINITIONS AND DIVIDEND POLICY

Blackstone

discloses

the

following

operating

metrics

and

financial

measures

that

are

calculated

and

presented

the

basis

methodologies

other than

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

Segment

Distributable

Earnings,

“Segment

DE”,

Blackstone’s

segment

profitability

measure

used

make

operating

decisions

and

assess

performance across Blackstone’s four segments. Segment DE represents the net realized earnings of Blackstone’s segments and is the sum of Fee

Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds,

eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets

and removes Transaction-Related Charges. Segment DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to,

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

–

Net

Realizations

presented

segment

basis

and

the

sum

Realized

Principal

Investment

Income

and

Realized

Performance Revenues

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

(which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance

Compensation).

–

Total

Segment

Revenues

and

Segment

Revenues

represent

Net

Management

and

Advisory

Fees,

Fee

Performance

Revenues, Realized

Performance Revenues and Realized Principal Investment Income.

Distributable

Earnings,

“DE”,

derived

from

Blackstone’s

segment

reported

results.

used

assess

performance

and

amounts

available

for dividends to Blackstone shareholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings

Partnerships. DE is the sum of Segment DE plus Net Interest Income (Loss) less Taxes and Related Payables. DE excludes unrealized activity and is

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

Taxes.

–

Net

Interest

Income

(Loss)

presented

segment

basis

and

equal

Interest

and

Dividend

Revenue

less

Interest

Expense,

adjusted

for

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

–

Taxes

and

Payables

represent

the

total

GAAP

tax

provision

adjusted

include

only

the

current

tax

provision

(benefit)

calculated

Income

(Loss)

Before

Provision

(Benefit)

for

Taxes

and

including

the

Payable

under

the

Tax

Receivable

Agreement.

Further,

the

current

tax

provision utilized when calculating Taxes and Related Payables and DE reflects the benefit of deductions available to the company on certain

expense items that are excluded from the underlying calculation of Segment DE and Total Segment Distributable Earnings, such as equity-

based compensation charges and certain Transaction-Related Charges where there is a current tax provision or benefit. The economic

assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in

calculating the current income tax provision for Blackstone’s consolidated statements of operations under U.S. GAAP, excluding the impact

divestitures

and

accrued

tax

contingencies

and

refunds

which

are

reflected

when

paid

received.

Management

believes

that

including

the

amount

payable

under

the

tax

receivable

agreement

and

utilizing

the

current

income

tax

provision

adjusted

described

above

when

calculating DE is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for

distribution to shareholders.

Fee

Earnings,

“FRE”,

performance

measure

used

assess

Blackstone’s

ability

generate

profits

from

revenues

that

are

measured

and

received

recurring

basis

and

not

subject

future

realization

events.

FRE

equals

management

and

advisory

fees

(net

management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis, and

(b)

Other Operating Expenses. FRE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income

(Loss) Before Provision (Benefit) for Taxes.

Blackstone |

–

Fee Related Compensation

is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation,

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

Performance Compensation.

–

Fee

Performance

Revenues

refers

the

realized

portion

Performance

Revenues

from

Perpetual

Capital

that

are

(a)

measured

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

–

Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a)

remove

the

amortization

transaction-related

intangibles,

(b)

remove

certain

expenses

reimbursed

the

Blackstone

Funds

which

are

netted against Management and Advisory Fees, Net in Blackstone's segment presentation, and (c) add an administrative fee collected on a

quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital

contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone's segment presentation.

–

Perpetual Capital

refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which

there

requirement

return

capital

investors

through

redemption

requests

the

ordinary

course

business,

except

where

funded

by new capital inflows. Includes co-investment capital with an investor right to convert into Perpetual Capital.

Adjusted

Earnings

Before

Interest,

Taxes

and

Depreciation

and

Amortization,

“Adjusted

EBITDA”,

supplemental

measure

used

assess

performance

derived

from

Blackstone’s

segment

results

and

may

used

assess

its

ability

service

its

borrowings.

Adjusted

EBITDA

represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables, and

(c)

Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP

measure of Income (Loss) Before Provision (Benefit) for Taxes.

Performance Revenues

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

Performance Compensation

collectively refers to: (a) Incentive Fee Compensation, and (b) Performance Allocations Compensation.

Transaction-Related Charges

arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They

consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of

the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these

corporate actions.

Dividend Policy. Blackstone’s intention is to pay to holders of Class A common stock a quarterly dividend representing approximately 85% of The

Blackstone

Group

Inc.’s

Distributable

Earnings,

subject

adjustment

amounts

determined

Blackstone’s

board

directors

necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with

applicable law, any of its debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback

obligations and dividends to shareholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter. All of the

foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of Blackstone’s board of

directors and our board of directors may change our dividend policy at any time, including, without limitation, to eliminate such dividends entirely.

DEFINITIONS AND DIVIDEND POLICY – (CONT’D)

Blackstone |

FORWARD-LOOKING STATEMENTS

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

21E

the

Securities

Exchange

Act

1934,

amended,

which

reflect

our

current

views

with

respect

to,

among

other

things,

our

operations,

taxes,

earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as

“outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,”

“plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject

to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially

from those indicated in these statements. We believe these factors include but are not limited to the impact of the novel coronavirus (“COVID-19”),

as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019 and in

our Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, as such factors may be updated from time to time in our periodic filings

with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should

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

other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or

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

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

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