EX-99.12d844809dex991.htmEX-99.1 EX-99.1
Exhibit 99.1
Blackstone Reports Third Quarter 2024 Results
New York, October 17, 2024: Blackstone (NYSE:BX) today reported its third quarter 2024 results.
Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported strong third-quarter
results, highlighted by broad-based acceleration across our business. We invested or committed $54 billion in the
quarter — the highest in over two years — and deployed $123 billion in the last twelve months since the cost of
capital peaked. The third quarter also represented the highest amount of overall fund appreciation in three years,
and our limited partners entrusted us with over $40 billion of inflows. Blackstone is exceptionally well positioned as
the reference firm in the alternatives industry, with leading platforms in compelling, high-growth areas.”
Blackstone issued a full detailed presentation of its third quarter 2024 results, which can be viewed at
www.blackstone.com.
Dividend
Blackstone has declared a quarterly dividend of
$0.86 per share to record holders of common stock at the close of
business on October 28, 2024. This dividend will be paid on November 4,
2024.
Quarterly Investor Call Details
Blackstone will
host its third quarter 2024 investor conference via public webcast on October 17, 2024 at
9:00 a.m. ET. To register, please use the following
link:
https://event.webcasts.com/starthere.jsp?ei=1690507&tp_key=3b0cbcd4f1. For those unable to listen to the live
Blackstone
345 Park
Avenue, New York, NY 10154
T 212 583 5000
www.blackstone.com
broadcast, there will be a webcast replay on the Shareholders section of Blackstone’s website at
https://ir.blackstone.com/.
About Blackstone
Blackstone is the world’s largest
alternative asset manager. We seek to deliver compelling returns for institutional
and individual investors by strengthening the companies in which we
invest. Our more than $1.1 trillion in assets
under management include global investment strategies focused on real estate, private equity,
infrastructure, life
sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at
www.blackstone.com. Follow @blackstone
on LinkedIn, X (Twitter), and Instagram.
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,”
“scheduled,” “estimates,” “anticipates,” “opportunity,” “leads,”
“forecast” or the negative
version of these words or other comparable words. Such forward-looking statements are
subject to various risks and uncertainties. Accordingly, there are or
will be important factors that could cause
actual outcomes or results to differ materially from those indicated in these statements. We believe these factors
include but are not limited to those described under the section entitled “Risk Factors” in our Annual Report on
Form 10-K for the year ended December 31, 2023, 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.
2
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
3
Blackstone’s Third
Quarter 2024 Earnings
OCTOBER 17,
2024
BLACKSTONE’S THIRD QUARTER 2024 GAAP RESULTS
§
GAAP Net Income was $1.6 billion for the quarter and $4.1 billion year-to-date (“YTD”). GAAP Net Income
Attributable to Blackstone Inc. was $781 million for the quarter and $2.1 billion YTD.
($ in thousands, except per share data) (unaudited)
3Q’23
3Q’24
3Q’23 YTD
3Q’24 YTD
3Q’23 LTM
3Q’24 LTM
Revenues
Management and Advisory Fees, Net
$
1,655,443
$
1,794,894
$
5,023,128
$
5,309,355
$
6,671,566
$
6,957,487
Incentive Fees
158,801
191,794
454,754
559,434
665,018
799,851
Performance Allocations
390,486
1,569,673
894,647
3,322,003
841,443
2,959,529
Principal Investments
163,653
93,371
(782
)
675,860
38,429
377,311
Interest and Dividend Revenue
109,133
109,774
348,123
312,612
450,755
480,986
Other
63,769
(96,312
)
17,951
(31,861
)
(225,331
)
(142,741
)
Total Revenues
$
2,541,285
$
3,663,194
$
6,737,821
$
10,147,403
$
8,441,880
$
11,432,423
Expenses
Compensation and Benefits
946,186
1,440,344
2,769,892
3,954,850
3,429,221
4,497,928
General, Administrative and Other
279,186
340,945
827,614
1,022,823
1,119,954
1,312,514
Interest Expense
110,599
111,337
323,136
328,156
423,465
436,888
Fund Expenses
38,934
3,470
118,918
13,380
137,449
13,449
Total Expenses
$
1,374,905
$
1,896,096
$
4,039,560
$
5,319,209
$
5,110,089
$
6,260,779
Other Income (Loss)
$
(49,078)
$
42,842
$
104,373
$
70,009
$
73,038
$
(118,361
)
Income Before Provision for Taxes
$
1,117,302
$
1,809,940
$
2,802,634
$
4,898,203
$
3,404,829
$
5,053,283
Provision for Taxes
196,560
245,303
467,504
789,220
326,358
835,177
Net Income
$
920,742
$
1,564,637
$
2,335,130
$
4,108,983
$
3,078,471
$
4,218,106
Redeemable NCI in Consolidated Entities
(92,577
)
(22,184
)
(81,589
)
(61,595
)
(281,179
)
(225,524
)
Non-Redeemable NCI in
Consolidated Entities
461,325
805,986
1,177,639
2,097,943
1,562,716
2,219,195
Net Income Attributable to Blackstone Inc.
(‘‘BX’’)
$
551,994
$
780,835
$
1,239,080
$
2,072,635
$
1,796,934
$
2,224,435
Net Income Per Share of Common Stock, Basic
$
0.73
$
1.02
$
1.64
$
2.71
$
2.39
$
2.91
Net Income Per Share of Common Stock,
Diluted
$
0.73
$
1.02
$
1.64
$
2.71
$
2.39
$
2.91
Throughout this presentation, all current period amounts are preliminary and unaudited. Totals may not add due to rounding. See pages 36-38, Definitions and
Dividend Policy, for definitions
of terms used throughout this presentation. NCI means non-controlling interests.
Blackstone | 1
BLACKSTONE’S THIRD QUARTER 2024 HIGHLIGHTS
Financial Measures
§ Fee Related Earnings (“FRE”) of $1.2 billion ($0.96/share) in the quarter
– FRE was $4.5 billion over the last twelve months (“LTM”)
($3.68/share)
§ Distributable Earnings (“DE”) of $1.3 billion ($1.01/share) in the quarter
– DE was
$5.2 billion over the LTM ($4.06/share)
§ Net Accrued Performance Revenues of $7.0 billion ($5.72/share)
Capital Metrics
§ Total Assets Under Management (“AUM”) of $1,107.6 billion
– Fee-Earning AUM of $820.5 billion
– Perpetual
Capital AUM of $434.7 billion
§ Inflows of $40.5 billion in the quarter and $166.7 billion over the LTM
§ Deployment of $34.0 billion in the quarter and $123.4 billion over the LTM
§ Realizations of $22.7 billion in the quarter and $77.0 billion over the LTM
Capital Returned
to Shareholders
§ Dividend of $0.86 per common share payable on November 4, 2024
– Dividends of $3.45 per common share over the LTM
§ Repurchased 1.0 million common shares in the quarter and 4.1 million common shares over the
LTM
§ $1.2 billion to be distributed to shareholders with respect to the third quarter and
$5.0 billion over the LTM through dividends and share repurchases
Blackstone | 2
BLACKSTONE’S THIRD QUARTER 2024 SEGMENT EARNINGS
% Change
% Change
($ in thousands, except per share data)
3Q’23
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Management and Advisory Fees, Net
$
1,653,840
$
1,786,734
8%
$
5,009,413
$
5,274,243
5%
Fee Related Performance
Revenues
274,551
264,101
(4)%
689,533
736,669
7%
Fee Related Compensation
(539,923
)
(554,855
)
3%
(1,617,702
)
(1,661,845
)
3%
Other Operating Expenses
(264,445
)
(320,823
)
21%
(773,459
)
(902,923
)
17%
Fee Related Earnings
$
1,124,023
$
1,175,157
5%
$
3,307,785
$
3,446,144
4%
Realized Performance Revenues
337,940
342,669
1%
1,367,889
1,421,951
4%
Realized Performance Compensation
(133,995
)
(157,570
)
18%
(608,389
)
(661,651
)
9%
Realized Principal Investment
Income
55,500
40,403
(27)%
91,730
66,913
(27)%
Net Realizations
259,445
225,502
(13)%
851,230
827,213
(3)%
Total Segment Distributable
Earnings
$
1,383,468
$
1,400,659
1%
$
4,159,015
$
4,273,357
3%
Distributable Earnings
$
1,211,611
$
1,278,650
6%
$
3,672,775
$
3,797,249
3%
Additional Metrics:
Net Income Per Share of Common Stock, Basic
$
0.73
$
1.02
40%
$
1.64
$
2.71
65%
FRE per Share
$
0.92
$
0.96
4%
$
2.72
$
2.82
4%
DE per Common Share
$
0.94
$
1.01
7%
$
2.84
$
2.95
4%
Total Segment Revenues
$
2,321,831
$
2,433,907
5%
$
7,158,565
$
7,499,776
5%
Total Assets Under Management
$
1,007,353,458
$
1,107,628,362
10%
$
1,007,353,458
$
1,107,628,362
10%
Fee-Earning Assets Under Management
$
734,541,603
$
820,457,203
12%
$
734,541,603
$
820,457,203
12%
Fee Related Earnings per Share is based on end of period DE Shares Outstanding (see page 24, Share Summary). DE per Common Share is based on DE
Attributable
to Common Shareholders (see page 23, Shareholder Dividends) and end of period Participating Common Shares outstanding. YTD FRE per Share and DE
per
Common Share amounts represent the sum of the last three quarters. See pages 32-33 for the Reconciliation of GAAP
to Total Segment Measures.
Blackstone | 3
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES
§
Appreciation across strategies led to higher Net Accrued Performance Revenues quarter-over-quarter of $7.0 billion ($5.72/share).
Investment Performance
(appreciation / gross returns)
3Q’24
3Q’24 LTM
Real Estate
Opportunistic
1.1%
(2.1)%
Core+
(0.5)%
(3.8)%
Private Equity
Corporate Private Equity
6.2%
15.2%
Tactical Opportunities
4.3%
9.8%
Secondaries
0.7%
3.6%
Infrastructure
5.5%
18.0%
Credit & Insurance
Private Credit
3.6%
16.7%
Liquid Credit
2.4%
10.4%
Multi-Asset Investing
Absolute Return Composite
2.2%
11.7%
Net Accrued Performance Revenues
($ in millions)
Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Credit & Insurance and
Multi-Asset Investing.
Secondaries appreciation excludes GP Stakes. Private Credit net returns were 2.7% and 12.4% for 3Q’24 and 3Q’24 LTM,
respectively. Liquid Credit net returns
were 2.2% and 9.9% for 3Q’24 and 3Q’24 LTM, respectively. Absolute Return Composite net returns were 2.0% and
10.6% for 3Q’24 and 3Q’24 LTM, respectively.
See notes on page 34 for additional details on investment performance.
Blackstone | 4
CAPITAL METRICS – ADDITIONAL DETAIL
§
Inflows were $40.5 billion in the quarter, bringing LTM inflows to $166.7 billion.
§
Deployed $34.0 billion in the quarter and $123.4 billion over the LTM.
–
Committed an additional $20.1 billion that was not yet deployed in the quarter.
§
Realizations were $22.7 billion in the quarter and $77.0 billion over the LTM.
Inflows
Capital Deployed
Realizations
($ in millions)
3Q’24
3Q’24 LTM
3Q’24
3Q’24 LTM
3Q’24
3Q’24 LTM
Real Estate
$
5,835
$
39,752
$
3,655
$
24,527
$
7,405
$
21,274
Opportunistic
555
5,417
1,634
10,401
1,783
3,606
Core+
3,703
11,654
744
4,010
3,263
10,734
Debt Strategies
1,577
22,681
1,277
10,116
2,359
6,934
Private Equity
10,201
36,865
11,395
36,632
5,256
23,800
Corporate Private Equity
4,650
15,754
5,857
17,208
2,220
12,264
Tactical Opportunities
1,190
4,589
2,484
5,678
421
3,304
Secondaries
1,524
8,411
2,176
9,011
1,643
6,895
Infrastructure
2,838
8,111
879
4,735
971
1,338
Credit & Insurance
21,390
80,154
18,417
58,754
9,632
29,705
Multi-Asset Investing
3,115
9,889
572
3,452
445
2,248
Total Blackstone
$
40,541
$
166,659
$
34,039
$
123,365
$
22,737
$
77,027
Corporate Private Equity also includes Life Sciences, Growth, BTAS, and BXPE. AUM and related capital metrics are reported in the segment where
the assets are
managed.
Blackstone | 5
ASSETS UNDER MANAGEMENT
§
Total AUM increased to $1,107.6 billion, up 10% year-over-year, with $40.5 billion of inflows in the quarter
and $166.7 billion over the LTM.
§
Fee-Earning AUM of $820.5 billion was up 12% year-over-year, with $34.1 billion of inflows in the quarter
and $160.9 billion over the LTM.
§
Perpetual Capital AUM reached $434.7 billion, up 12% year-over-year.
–
Fee-Earning Perpetual Capital AUM increased to $376.0 billion, representing 46% of Fee-Earning AUM
Multi-Asset Investing had zero and $206 million of Perpetual Capital AUM as of 3Q’23 and 3Q’24, respectively.
Blackstone | 6
ADDITIONAL CAPITAL DETAIL
§
Invested Performance Eligible AUM reached $553.0 billion at quarter end.
§
Undrawn capital (“Total Dry Powder”) available for investment of $171.6 billion.
Invested Performance Eligible AUM represents the fair value of invested assets that are eligible to earn performance revenues.
Blackstone | 7
Segment Highlights
Blackstone | 8
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION
§
3Q’24 Total Segment Distributable Earnings were $1.4 billion.
§
LTM Total Segment Distributable Earnings were $5.7 billion.
Segment Distributable Earnings
($ in millions)
Blackstone | 9
REAL ESTATE
§
Total AUM: $325.1 billion with inflows of $5.8 billion in the quarter and $39.8 billion over the LTM.
–
Inflows in the quarter included $956 million in BREDS Insurance SMAs and $743 million of capital raised in BREIT.
–
Outflows in the quarter included the transfer of $12.5 billion of residential debt AUM to Credit & Insurance.
§
Capital Deployed: $3.7 billion in the quarter and $24.5 billion over the LTM.
–
Committed an additional $4.2 billion in the quarter, including the announced acquisition of AirTrunk in BREP.
§
Realizations: $7.4 billion in the quarter and $21.3 billion over the LTM.
–
Realizations in the quarter included the sale of EdR Student Housing Portfolio in BREIT, the sale of Monte
Napoleone 8 in BPP, and the refinancing of a BREP U.S. logistics portfolio.
§
Appreciation: Opportunistic funds appreciated 1.1% in the quarter and declined (2.1)% over the LTM; Core+ funds declined (0.5)% in the quarter and (3.8)% over the LTM.
% Change
% Change
($ in thousands)
3Q’23
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Management Fees, Net
$
700,631
$
695,546
(1)%
$
2,144,858
$
2,173,442
1%
Fee Related Performance Revenues
127,841
72,428
(43)%
279,888
202,992
(27)%
Fee Related Compensation
(199,384
)
(166,567
)
(16)%
(536,000
)
(525,540
)
(2)%
Other Operating Expenses
(83,074
)
(100,739
)
21%
(229,204
)
(282,879
)
23%
Fee Related Earnings
$
546,014
$
500,668
(8)%
$
1,659,542
$
1,568,015
(6)%
Realized Performance Revenues
17,419
78,022
348%
148,236
181,461
22%
Realized Performance Compensation
(7,813
)
(44,761
)
473%
(80,571
)
(91,919
)
14%
Realized Principal Investment Income
1,565
6,421
310%
3,719
15,667
321%
Net Realizations
11,171
39,682
255%
71,384
105,209
47%
Segment Distributable Earnings
$
557,185
$
540,350
(3)%
$
1,730,926
$
1,673,224
(3)%
Segment Revenues
$
847,456
$
852,417
1%
$
2,576,701
$
2,573,562
(0)%
Total AUM
$
331,500,697
$
325,075,713
(2)%
$
331,500,697
$
325,075,713
(2)%
Fee-EarningAUM
$
284,936,903
$
285,488,072
0%
$
284,936,903
$
285,488,072
0%
Blackstone | 10
PRIVATE EQUITY
§
Total AUM: Increased 12% to $344.7 billion with inflows of $10.2 billion in the quarter and $36.9 billion over the
LTM.
–
Inflows in the quarter included $2.8 billion in Infrastructure, including the launch of BIP Europe, $1.5 billion in Secondaries, $1.2 billion in Tactical Opportunities, $716 million for the ninth
flagship private equity fund, and $679 million for our energy transition fund.
–
$1.1 billion of capital raised in BXPE, including amounts allocated to other strategies.
§
Capital Deployed: $11.4 billion in the quarter, including Copeland, Hipgnosis, and Infocom, and $36.6 billion over
the LTM.
–
Committed an additional $7.2 billion in the quarter, including AirTrunk and Smartsheet.
§
Realizations: $5.3 billion in the quarter, including from PG&E and Refinitiv, and $23.8 billion over the LTM.
§
Appreciation: Corporate Private Equity appreciated 6.2% in the quarter and 15.2% over the LTM.
–
Tactical Opportunities appreciated 4.3% in the quarter and 9.8% over the LTM; Secondaries appreciated 0.7% in
the quarter and 3.6% over the LTM; Infrastructure appreciated 5.5% in the quarter and 18.0% over the LTM.
% Change
% Change
($ in thousands)
3Q’23
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Management and Advisory Fees, Net
$
501,828
$
552,820
10%
$
1,507,289
$
1,568,878
4%
Fee Related Performance Revenues
-
5,868
n/m
-
14,571
n/m
Fee Related Compensation
(152,491
)
(169,059
)
11%
(482,596
)
(489,686
)
1%
Other Operating Expenses
(81,738
)
(96,660
)
18%
(238,912
)
(274,131
)
15%
Fee Related Earnings
$
267,599
$
292,969
9%
$
785,781
$
819,632
4%
Realized Performance Revenues
299,271
216,643
(28)%
1,021,164
1,048,314
3%
Realized Performance Compensation
(114,211
)
(94,800
)
(17)%
(437,970
)
(495,042
)
13%
Realized Principal Investment Income
22,682
9,028
(60)%
68,558
37,182
(46)%
Net Realizations
207,742
130,871
(37)%
651,752
590,454
(9)%
Segment Distributable Earnings
$
475,341
$
423,840
(11)%
$
1,437,533
$
1,410,086
(2)%
Segment Revenues
$
823,781
$
784,359
(5)%
$
2,597,011
$
2,668,945
3%
Total AUM
$
308,569,957
$
344,710,201
12%
$
308,569,957
$
344,710,201
12%
Fee-EarningAUM
$
175,877,372
$
208,681,656
19%
$
175,877,372
$
208,681,656
19%
BXPE represents the aggregate BXPE fund platform, which comprises both U.S. and non-U.S. vehicles. Secondaries appreciation excludes GP Stakes.
Blackstone | 11
CREDIT & INSURANCE
§
Total AUM: Increased 22% to $354.7 billion with inflows of $21.4 billion in the quarter and $80.2 billion over the
LTM.
–
Inflows in the quarter included $8.9 billion for the global direct lending strategy, inclusive of $3.0 billion of
equity raised for BCRED, and $4.3 billion for infrastructure and asset based credit
strategies.
–
The fifth opportunistic private credit strategy had $2.2 billion of inflows in the quarter, bringing total capital commitments to $2.4 billion.
–
Closed 6 new CLOs (5 U.S. and 1 European) for $3.2 billion.
§
Capital Deployed: $18.4 billion in the quarter and $58.8 billion over the LTM driven by U.S. direct lending as well as infrastructure and asset based credit strategies.
–
Committed an additional $8.1 billion that was not yet deployed in the quarter.
§
Realizations: $9.6 billion in the quarter and $29.7 billion over the LTM.
§
Returns: Private Credit gross return of 3.6% (2.7% net) and Liquid Credit gross return of 2.4% (2.2% net) in the
quarter.
–
Private Credit gross return of 16.7% (12.4% net) and Liquid Credit gross return of 10.4% (9.9% net) over the LTM.
% Change
% Change
($ in thousands)
3Q’23
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Management Fees, Net
$
333,607
$
418,049
25%
$
998,212
$
1,178,064
18%
Fee Related Performance Revenues
146,710
185,805
27%
409,645
519,106
27%
Fee Related Compensation
(145,011
)
(181,586
)
25%
(471,245
)
(532,658
)
13%
Other Operating Expenses
(75,227
)
(97,756
)
30%
(229,235
)
(270,680
)
18%
Fee Related Earnings
$
260,079
$
324,512
25%
$
707,377
$
893,832
26%
Realized Performance Revenues
14,349
42,926
199%
181,874
149,293
(18)%
Realized Performance Compensation
(5,453
)
(16,489
)
202%
(79,516
)
(59,548
)
(25)%
Realized Principal Investment Income
29,181
24,239
(17)%
15,753
31,311
99%
Net Realizations
38,077
50,676
33%
118,111
121,056
2%
Segment Distributable Earnings
$
298,156
$
375,188
26%
$
825,488
$
1,014,888
23%
Segment Revenues
$
523,847
$
671,019
28%
$
1,605,484
$
1,877,774
17%
Total AUM
$
290,908,112
$
354,741,520
22%
$
290,908,112
$
354,741,520
22%
Fee-EarningAUM
$
204,974,045
$
251,567,431
23%
$
204,974,045
$
251,567,431
23%
Blackstone | 12
MULTI-ASSET INVESTING
§
Total AUM: Increased 9% to $83.1 billion with inflows of $3.1 billion in the quarter and $9.9 billion over the LTM.
§
Returns: Absolute Return Composite gross return of 2.2% in the quarter (2.0% net), compared to the HFRX Global
Hedge Fund Index, which was 2.1%.
–
Absolute Return benefited from performance across strategies, including equities, quantitative, and credit during
the quarter.
–
Gross returns of 11.7% over the LTM (10.6% net), with significantly less volatility than the broader markets,
compared to 6.9% return for the HFRX Global Hedge Fund Index.
% Change
% Change
($ in thousands)
3Q’23
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Management Fees, Net
$
117,774
$
120,319
2%
$
359,054
$
353,859
(1)%
Fee Related Compensation
(43,037
)
(37,643
)
(13)%
(127,861
)
(113,961
)
(11)%
Other Operating Expenses
(24,406
)
(25,668
)
5%
(76,108
)
(75,233
)
(1)%
Fee Related Earnings
$
50,331
$
57,008
13%
$
155,085
$
164,665
6%
Realized Performance Revenues
6,901
5,078
(26)%
16,615
42,883
158%
Realized Performance Compensation
(6,518
)
(1,520
)
(77)%
(10,332
)
(15,142
)
47%
Realized Principal Investment Income (Loss)
2,072
715
(65)%
3,700
(17,247
)
n/m
Net Realizations
2,455
4,273
74%
9,983
10,494
5%
Segment Distributable Earnings
$
52,786
$
61,281
16%
$
165,068
$
175,159
6%
Segment Revenues
$
126,747
$
126,112
(1)%
$
379,369
$
379,495
0%
Total AUM
$
76,374,692
$
83,100,928
9%
$
76,374,692
$
83,100,928
9%
Fee-EarningAUM
$
68,753,283
$
74,720,044
9%
$
68,753,283
$
74,720,044
9%
Blackstone | 13
Supplemental Details
Blackstone | 14
TOTAL SEGMENTS
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23 YTD
3Q’24 YTD
Base Management Fees
$
1,619,743
$
1,605,948
$
1,644,730
$
1,651,566
$
1,710,941
$
4,859,899
$
5,007,237
Transaction, Advisory and Other Fees, Net
44,611
52,836
66,938
132,536
82,506
183,056
281,980
Management Fee Offsets
(10,514
)
(4,953
)
(4,097
)
(4,164
)
(6,713
)
(33,542
)
(14,974
)
Total Management and Advisory Fees, Net
1,653,840
1,653,831
1,707,571
1,779,938
1,786,734
5,009,413
5,274,243
Fee Related Performance Revenues
274,551
168,994
295,501
177,067
264,101
689,533
736,669
Fee Related Compensation
(539,923
)
(470,408
)
(554,077
)
(552,913
)
(554,855
)
(1,617,702
)
(1,661,845
)
Other Operating Expenses
(264,445
)
(310,874
)
(288,978
)
(293,122
)
(320,823
)
(773,459
)
(902,923
)
Fee Related Earnings
$
1,124,023
$
1,041,543
$
1,160,017
$
1,110,970
$
1,175,157
$
3,307,785
$
3,446,144
Realized Performance Revenues
337,940
693,213
536,393
542,889
342,669
1,367,889
1,421,951
Realized Performance Compensation
(133,995
)
(287,628
)
(253,024
)
(251,057
)
(157,570
)
(608,389
)
(661,651
)
Realized Principal Investment Income
55,500
19,202
9,938
16,572
40,403
91,730
66,913
Total Net Realizations
$
259,445
$
424,787
$
293,307
$
308,404
$
225,502
$
851,230
$
827,213
Total Segment Distributable Earnings
$
1,383,468
$
1,466,330
$
1,453,324
$
1,419,374
$
1,400,659
$
4,159,015
$
4,273,357
Distributable Earnings
$
1,211,611
$
1,388,180
$
1,266,378
$
1,252,221
$
1,278,650
$
3,672,775
$
3,797,249
Additional Metrics:
Total Segment Revenues
$
2,321,831
$
2,535,240
$
2,549,403
$
2,516,466
$
2,433,907
$
7,158,565
$
7,499,776
Total Assets Under Management
$
1,007,353,458
$
1,040,192,447
$
1,061,262,748
$
1,076,371,811
$
1,107,628,362
$
1,007,353,458
$
1,107,628,362
Fee-Earning Assets Under
Management
$
734,541,603
$
762,607,902
$
781,397,555
$
808,656,801
$
820,457,203
$
734,541,603
$
820,457,203
Blackstone | 15
ASSETS UNDER MANAGEMENT – ROLLFORWARD
Total AUM Rollforward
($ in millions)
Three Months Ended September 30, 2024
Twelve Months Ended September 30, 2024
Real
Estate
Private
Equity
Credit &
Insurance
Multi-Asset
Investing
Total
Real
Estate
Private
Equity
Credit &
Insurance
Multi-Asset
Investing
Total
Beginning Balance
$
336,100
$
330,590
$
330,117
$
79,565
$
1,076,372
$
331,501
$
308,570
$
290,908
$
76,375
$
1,007,353
Inflows
5,835
10,201
21,390
3,115
40,541
39,752
36,865
80,154
9,889
166,659
Outflows
(14,626
)
(1,796
)
6,487
(1,385
)
(11,320
)
(25,545
)
(5,628
)
(6,019
)
(9,923
)
(47,115
)
Net Flows
(8,791
)
8,405
27,877
1,729
29,221
14,207
31,237
74,136
(34
)
119,545
Realizations
(7,405
)
(5,256
)
(9,632
)
(445
)
(22,737
)
(21,274
)
(23,800
)
(29,705
)
(2,248
)
(77,027
)
Market Activity
5,171
10,971
6,379
2,252
24,772
642
28,704
19,403
9,008
57,757
Ending Balance
$
325,076
$
344,710
$
354,742
$
83,101
$
1,107,628
$
325,076
$
344,710
$
354,742
$
83,101
$
1,107,628
% Change
(3)%
4%
7%
4%
3%
(2)%
12%
22%
9%
10%
Fee-Earning AUM Rollforward
($ in millions)
Three Months Ended September 30, 2024
Twelve Months Ended September 30, 2024
Real
Estate
Private
Equity
Credit &
Insurance
Multi-Asset
Investing
Total
Real
Estate
Private
Equity
Credit &
Insurance
Multi-Asset
Investing
Total
Beginning Balance
$
299,066
$
200,487
$
237,286
$
71,818
$
808,657
$
284,937
$
175,877
$
204,974
$
68,753
$
734,542
Inflows
6,339
9,837
15,544
2,415
34,135
48,815
42,089
61,305
8,645
160,854
Outflows
(14,705
)
(1,940
)
1,179
(1,236
)
(16,701
)
(24,891
)
(6,650
)
(5,626
)
(9,098
)
(46,265
)
Net Flows
(8,366
)
7,897
16,723
1,179
17,434
23,924
35,440
55,679
(453
)
114,589
Realizations
(7,767
)
(1,482
)
(7,185
)
(394
)
(16,827
)
(23,054
)
(7,674
)
(21,998
)
(2,074
)
(54,800
)
Market Activity
2,554
1,779
4,744
2,116
11,194
(319
)
5,039
12,913
8,494
26,126
Ending Balance
$
285,488
$
208,682
$
251,567
$
74,720
$
820,457
$
285,488
$
208,682
$
251,567
$
74,720
$
820,457
% Change
(5)%
4%
6%
4%
1%
0%
19%
23%
9%
12%
Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments),
purchases, inter-segment allocations and
acquisitions. Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital,
expense drawdowns and decreased side-by-side commitments).
Realizations represent realization proceeds from the disposition or other monetization of assets,
current income or capital returned to investors from CLOs. Market Activity includes
realized and unrealized gains (losses) on portfolio investments and the
impact of foreign exchange rate fluctuations. AUM is reported in the segment where the assets are managed. See
additional notes on page 34 for certain one-time
adjustments included in Total AUM and Fee-Earning AUM outflows for the period.
Blackstone | 16
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS
§
At September 30, 2024, Blackstone had $8.9 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.7 billion of cash and net investments, or $15.33 per share.
§
Blackstone has a $4.3 billion credit revolver and maintains A+/A+ ratings.
($in millions)
3Q’24
Cash and Cash Equivalents
$
2,353
Corporate Treasury and
Other Investments
6,567
GP/Fund Investments
2,813
Net Accrued Performance Revenues
6,992
Cash and Net Investments
$
18,725
Outstanding Debt (at par)
10,767
Cash and Net Investments
(per share)
A+ / A+
rated by S&P and Fitch
$4.3B
credit revolver with
December 2028 maturity
$8.9B
total cash, corporate
treasury and other
Balance Sheet Highlights exclude the consolidated Blackstone Funds. Other Investments was $5.6 billion as of September 30, 2024, which was
comprised of
$5.1 billion of liquid investments and $498 million of illiquid investments. See notes on pages 31 and 35 for additional details on non-GAAP
balance sheet
measures.
Blackstone | 17
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL
($ in millions, except per share data)
3Q’23
2Q’24
3Q’24
3Q’24
Per Share
Real Estate
BREP Global
$
1,625
$
1,294
$
1,313
$
1.08
BREP Europe
132
117
130
0.11
BREP Asia
93
97
97
0.08
BPP
387
73
32
0.03
BREDS
30
16
18
0.01
BTAS
18
-
18
0.01
Real Estate
$
2,285
$
1,595
$
1,608
$
1.32
Private Equity
BCP Global
1,542
1,508
1,708
1.40
BCP Asia
113
190
260
0.21
Energy/Energy Transition
387
417
533
0.44
Core Private Equity
220
243
244
0.20
Tactical Opportunities
235
159
181
0.15
Secondaries
737
813
951
0.78
Infrastructure
324
478
568
0.46
Life Sciences
62
125
145
0.12
BTAS/BXPE/Other
186
217
240
0.20
Private Equity
$
3,804
$
4,150
$
4,829
$
3.95
Credit & Insurance
$
292
$
391
$
450
$
0.37
Multi-Asset Investing
$
53
$
78
$
105
$
0.09
Net Accrued Performance
Revenues
$
6,435
$
6,214
$
6,992
$
5.72
3Q’24 QoQ Rollforward
($ in millions)
Net
Net
Performance
Realized
2Q’24
Revenues
Distributions
3Q’24
Real Estate
$
1,595
$
114
$
(101
)
$
1,608
Private Equity
4,150
805
(126
)
4,829
Credit &
Insurance
391
200
(141
)
450
Multi-Asset
Investing
78
31
(4
)
105
Total
$
6,214
$
1,149
$
(372
)
$
6,992
QoQ Change
13%
3Q’24 LTM Rollforward
($ in
millions)
Net
Net
Performance
Realized
3Q’23
Revenues
Distributions
3Q’24
Real Estate
$
2,285
$
(290
)
$
(387
)
$
1,608
Private Equity
3,804
1,763
(739
)
4,829
Credit &
Insurance
292
725
(566
)
450
Multi-Asset Investing
53
180
(128
)
105
Total
$
6,435
$
2,377
$
(1,821
)
$
6,992
YoY Change
9%
Net Accrued Performance Revenues (“NAPR”) are presented net of performance compensation and excludes Performance Revenues realized but
not yet distributed
as of the reporting date and clawback amounts, if any, which are disclosed in the 10-K/Q. Real Estate and Private Equity include
co-investments, as applicable. Per
Share calculations are based on end of period DE Shares Outstanding (see page 24, Share Summary).
Blackstone | 18
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024(a)
($/€ in thousands, except
where noted)
Fund (Investment Period Beginning Date / Ending Date)
Committed
Capital
Available
Capital (b)
Unrealized Investments
Realized Investments
Total Investments
Net IRRs (d)
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%
33%
BREP I (Sep 1994 / Oct 1996)
380,708
-
-
n/a
1,327,708
2.8x
1,327,708
2.8x
40%
40%
BREP II (Oct 1996 / Mar 1999)
1,198,339
-
-
n/a
2,531,614
2.1x
2,531,614
2.1x
19%
19%
BREP III (Apr 1999 / Apr 2003)
1,522,708
-
-
n/a
3,330,406
2.4x
3,330,406
2.4x
21%
21%
BREP IV (Apr 2003 / Dec 2005)
2,198,694
-
-
n/a
4,684,232
1.7x
4,684,232
1.7x
12%
12%
BREP V (Dec 2005 / Feb 2007)
5,539,418
-
6,226
n/a
13,463,448
2.3x
13,469,674
2.3x
11%
11%
BREP VI (Feb 2007 / Aug 2011)
11,060,122
-
7,531
n/a
27,758,817
2.5x
27,766,348
2.5x
13%
13%
BREP VII (Aug 2011 / Apr 2015)
13,505,657
1,017,051
1,883,905
0.6x
28,472,664
2.2x
30,356,569
1.9x
20%
14%
BREP VIII (Apr 2015 / Jun 2019)
16,607,961
2,006,806
11,937,632
1.5x
22,801,799
2.3x
34,739,431
2.0x
23%
14%
BREP IX (Jun 2019 / Aug 2022)
21,349,913
3,314,887
24,434,954
1.4x
9,029,887
2.2x
33,464,841
1.5x
55%
13%
*BREP X (Aug 2022 / Feb 2028)
30,640,856
22,293,304
9,524,677
1.2x
302,375
1.1x
9,827,052
1.2x
n/a
10%
Total Global BREP
$
104,145,090
$
28,632,048
$
47,794,925
1.3x
$
114,048,140
2.3x
$
161,843,065
1.9x
17%
15%
BREP Int’l (Jan 2001 / Sep 2005)
€
824,172
€
-
€
-
n/a
€
1,373,170
2.1x
€
1,373,170
2.1x
23%
23%
BREP Int’l II (Sep 2005 / Jun 2008) (e)
1,629,748
-
-
n/a
2,583,032
1.8x
2,583,032
1.8x
8%
8%
BREP Europe III (Jun 2008 / Sep 2013)
3,205,420
391,802
152,188
0.3x
5,856,192
2.4x
6,008,380
2.0x
18%
13%
BREP Europe IV (Sep 2013 / Dec 2016)
6,676,577
1,079,282
1,075,017
0.8x
10,146,604
1.9x
11,221,621
1.7x
18%
12%
BREP Europe V (Dec 2016 / Oct 2019)
7,992,703
884,823
4,407,440
0.8x
6,762,819
3.8x
11,170,259
1.5x
41%
7%
BREP Europe VI (Oct 2019 / Sep 2023)
9,933,550
2,975,177
8,442,676
1.2x
3,442,555
2.6x
11,885,231
1.4x
72%
12%
*BREP Europe VII (Sep 2023 / Mar 2029)
7,704,643
6,190,274
1,768,948
1.2x
-
n/a
1,768,948
1.2x
n/a
n/m
Total BREP Europe
€
37,966,813
€
11,521,358
€
15,846,269
1.0x
€
30,164,372
2.3x
€
46,010,641
1.6x
17%
11%
BREP Asia I (Jun 2013 / Dec 2017)
$
4,262,075
$
898,533
$
1,560,757
1.7x
$
7,229,127
2.0x
$
8,789,884
1.9x
16%
12%
BREP Asia II (Dec 2017 / Mar 2022)
7,354,811
1,310,778
6,411,213
1.2x
2,112,419
1.8x
8,523,632
1.3x
24%
5%
*BREP Asia III (Mar 2022 / Sep 2027)
8,210,352
6,801,968
1,403,568
1.0x
-
n/a
1,403,568
1.0x
n/a
(13)%
Total BREP Asia
$
19,827,238
$
9,011,279
$
9,375,538
1.2x
$
9,341,546
1.9x
$
18,717,084
1.5x
17%
8%
BREP Co-Investment (f)
7,587,426
117,353
1,103,907
1.7x
15,264,782
2.2x
16,368,689
2.2x
16%
16%
Total BREP
$
176,001,124
$
50,446,797
$
76,080,082
1.2x
$
175,528,787
2.3x
$
251,608,869
1.8x
17%
14%
*BREDS High-Yield (Various) (g)
25,164,762
8,052,575
5,428,734
1.0x
21,395,281
1.3x
26,824,015
1.3x
10%
9%
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%
19%
BCP II (Oct 1993 / Aug 1997)
1,361,100
-
-
n/a
3,268,627
2.5x
3,268,627
2.5x
32%
32%
BCP III (Aug 1997 / Nov 2002)
3,967,422
-
-
n/a
9,228,707
2.3x
9,228,707
2.3x
14%
14%
BCOM (Jun 2000 / Jun 2006)
2,137,330
24,575
184
n/a
2,995,106
1.4x
2,995,290
1.4x
6%
6%
BCP IV (Nov 2002 / Dec 2005)
6,773,182
195,824
357
n/a
21,720,334
2.9x
21,720,691
2.9x
36%
36%
BCP V (Dec 2005 / Jan 2011)
21,009,112
1,035,259
66,016
n/a
38,806,330
1.9x
38,872,346
1.9x
8%
8%
BCP VI (Jan 2011 / May 2016)
15,195,243
1,341,026
4,120,776
2.0x
28,788,181
2.2x
32,908,957
2.2x
14%
12%
BCP VII (May 2016 / Feb 2020)
18,867,443
1,704,240
17,880,529
1.7x
18,540,348
2.6x
36,420,877
2.0x
25%
13%
BCP VIII (Feb 2020 / Apr 2024)
25,912,375
8,372,340
25,407,341
1.4x
2,518,107
2.3x
27,925,448
1.5x
n/m
11%
*BCP IX (Apr 2024 / Apr 2029)
20,777,398
20,690,042
46,367
n/a
-
n/a
46,367
n/a
n/a
n/a
Energy I (Aug 2011 / Feb 2015)
2,441,558
174,492
487,445
1.5x
4,191,619
2.0x
4,679,064
2.0x
14%
11%
Energy II (Feb 2015 / Feb 2020)
4,920,933
867,570
4,136,017
1.9x
4,377,051
1.8x
8,513,068
1.9x
12%
8%
Energy III (Feb 2020 / Jun 2024)
4,355,021
1,583,228
5,370,434
2.1x
1,631,879
2.4x
7,002,313
2.2x
47%
30%
*Energy Transition IV (Jun 2024 / Jun 2029)
4,303,332
4,270,434
-
n/a
-
n/a
-
n/a
n/a
n/a
BCP Asia I (Dec 2017 / Sep 2021)
2,437,080
417,510
2,947,127
2.1x
2,623,597
3.5x
5,570,724
2.6x
51%
26%
*BCP Asia II (Sep 2021 / Sep 2027)
6,788,466
4,361,442
3,431,480
1.9x
91,510
2.2x
3,522,990
1.9x
n/m
35%
Core Private Equity I (Jan 2017 / Mar 2021) (h)
4,760,279
1,171,237
7,485,845
2.0x
2,871,414
5.2x
10,357,259
2.4x
58%
17%
*Core Private Equity II (Mar 2021 / Mar 2026) (h)
8,450,958
5,123,153
4,683,299
1.3x
346,751
n/a
5,030,050
1.4x
n/a
15%
Total Corporate Private Equity
$
155,317,313
$
51,332,372
$
76,063,217
1.6x
$
143,741,299
2.3x
$
219,804,516
2.0x
16%
15%
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc. n/m represents “not
meaningful” generally due to the limited time
since initial investment. n/a represents “not applicable”. Notes on pages 21-22. BREP –
Blackstone Real Estate Partners, BREDS – Blackstone Real Estate Debt Strategies, BCP –
Blackstone Capital Partners, BCOM – Blackstone
Communications.
* Represents funds that are currently in their investment period.
Blackstone | 19
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024(a) –
(CONT’D)
($/€ in thousands, except
where noted)
Fund (Investment Period Beginning Date / Ending Date)
Committed
Capital
Available
Capital (b)
Unrealized Investments
Realized Investments
Total Investments
Net IRRs (d)
Value
MOIC (c)
Value
MOIC (c)
Value
MOIC (c)
Realized
Total
Private Equity (continued)
Tactical Opportunities
*Tactical Opportunities (Various)
$
30,813,178
$
12,260,704
$
15,581,042
1.2x
$
24,261,935
1.8x
$
39,842,977
1.5x
16%
10%
*Tactical Opportunities Co-Investmentand Other (Various)
12,541,264
2,391,711
5,259,063
1.2x
10,576,414
1.8x
15,835,477
1.6x
21%
16%
Total Tactical Opportunities
$
43,354,442
$
14,652,415
$
20,840,105
1.2x
$
34,838,349
1.8x
$
55,678,454
1.5x
17%
12%
Growth
*BXG I (Jul 2020 / Jul 2025)
5,006,755
1,204,350
3,520,462
1.0x
517,135
2.6x
4,037,597
1.1x
n/m
(2)%
BXG II (TBD)
4,190,970
4,190,970
-
n/a
-
n/a
-
n/a
n/a
n/a
Total Growth
$
9,197,725
$
5,395,320
$
3,520,462
1.0x
$
517,135
2.6x
$
4,037,597
1.1x
n/m
(2)%
Strategic Partners (Secondaries)
Strategic PartnersI-V (Various) (i)
11,035,527
23,013
7,796
n/a
16,782,783
n/a
16,790,579
1.7x
n/a
13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i)
4,362,772
604,672
662,063
n/a
4,399,074
n/a
5,061,137
1.7x
n/a
13%
Strategic Partners VII (May 2016 / Mar 2019) (i)
7,489,970
1,672,312
3,060,725
n/a
7,577,917
n/a
10,638,642
1.9x
n/a
16%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)
1,749,807
502,307
1,279,240
n/a
1,173,420
n/a
2,452,660
1.7x
n/a
16%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)
10,763,600
3,974,342
7,787,015
n/a
6,876,095
n/a
14,663,110
1.8x
n/a
24%
*Strategic Partners Real Estate, SMA and Other (Various) (i)
7,455,591
2,382,516
2,516,169
n/a
2,525,494
n/a
5,041,663
1.5x
n/a
13%
Strategic Partners Infrastructure III (Jun 2020 / Jun 2024)
(i)
3,250,100
534,128
2,626,027
n/a
274,616
n/a
2,900,643
1.4x
n/a
22%
*Strategic Partners IX (Oct 2021 / Jan 2027) (i)
19,692,626
7,648,783
8,568,139
n/a
782,344
n/a
9,350,483
1.4x
n/a
18%
*Strategic Partners GP Solutions (Jun 2021 / Dec 2026)
(i)
2,095,211
739,359
900,770
n/a
3,947
n/a
904,717
1.0x
n/a
(3)%
Total Strategic Partners (Secondaries)
$
67,895,204
$
18,081,432
$
27,407,944
n/a
$
40,395,690
n/a
$
67,803,634
1.6x
n/a
14%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)
910,000
61,316
716,439
2.1x
559,642
1.4x
1,276,081
1.7x
6%
10%
*BXLS V (Jan 2020 / Jan 2025)
5,004,386
2,657,312
3,536,842
1.9x
469,474
1.2x
4,006,316
1.8x
n/m
16%
Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)
$
2,000,000
$
97,114
$
-
n/a
$
4,809,113
1.6x
$
4,809,113
1.6x
n/a
17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)
4,120,000
993,260
92,124
0.2x
6,678,087
1.5x
6,770,211
1.4x
n/a
10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)
6,639,133
1,091,782
2,165,828
1.2x
8,454,627
1.6x
10,620,455
1.5x
n/a
12%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)
5,016,771
1,389,288
4,679,493
1.1x
1,239,671
1.8x
5,919,164
1.2x
n/a
14%
Stressed / Distressed I (Sep 2009 / May 2013)
3,253,143
-
-
n/a
5,777,098
1.3x
5,777,098
1.3x
n/a
9%
Stressed / Distressed II (Jun 2013 / Jun 2018)
5,125,000
547,430
142,782
0.2x
5,470,492
1.2x
5,613,274
1.1x
n/a
1%
Stressed / Distressed III (Dec 2017 / Dec 2022)
7,356,380
1,100,454
2,552,558
1.1x
4,209,841
1.5x
6,762,399
1.3x
n/a
10%
Energy I (Nov 2015 / Nov 2018)
2,856,867
1,154,819
279,453
0.8x
3,293,013
1.6x
3,572,466
1.5x
n/a
10%
Energy II (Feb 2019 / Jun 2023)
3,616,081
1,474,627
1,028,263
1.1x
2,738,563
1.4x
3,766,826
1.3x
n/a
16%
*Green Energy III (May 2023 / May 2028)
6,477,000
4,649,454
1,958,000
1.0x
161,207
n/a
2,119,207
1.1x
n/a
n/m
European Senior Debt I (Feb 2015 / Feb 2019)
€
1,964,689
€
139,954
€
204,893
0.4x
€
2,978,763
1.3x
€
3,183,656
1.2x
n/a
2%
European Senior Debt II (Jun 2019 / Jun 2023) (j)
€
4,088,344
€
719,250
€
3,958,457
0.9x
€
2,871,992
2.4x
€
6,830,449
1.3x
n/a
10%
Total Credit Drawdown Funds (k)
$
53,366,033
$
13,457,145
$
17,545,006
1.0x
$
49,509,019
1.5x
$
67,054,025
1.3x
n/a
10%
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc. n/m represents “not
meaningful” generally due to the limited time
since initial investment. n/a represents “not applicable”. Notes on pages 21-22. BXG – Blackstone Growth, BXLS – Blackstone Life Sciences.
* Represents funds that are currently in their
investment period.
Blackstone | 20
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024(a) –
(CONT’D)
Selected Perpetual
Capital Strategies(l)
($ in thousands, except where noted)
Investment
Total
Total Net
Strategy (Inception Year)
Strategy
AUM
Return (m)
Real Estate
BPP - Blackstone Property Partners Platform (2013) (n)
Core+ Real Estate
$
64,308,476
5%
BREIT - Blackstone Real Estate Income Trust (2017) (o)
Core+ Real Estate
55,295,802
9%
BREIT - Class I (p)
Core+ Real Estate
10%
BXMT - Blackstone Mortgage Trust (2013) (q)
Real Estate Debt
5,933,731
6%
Private Equity
BSCH - Blackstone Strategic Capital Holdings (2014) (r)
Secondaries - GP Stakes
10,739,337
13%
BIP - Blackstone Infrastructure Partners (2019) (s)
Infrastructure
40,470,269
16%
BXPE - Blackstone Private Equity Strategies Fund Program (2024)
(t)
Private Equity
5,747,358
(t)
Credit
BXSL - Blackstone Secured Lending Fund (2018) (u)
U.S. Direct Lending
12,661,739
11%
BCRED - Blackstone Private Credit Fund (2021) (v)
U.S. Direct Lending
71,173,137
10%
BCRED - Class I (w)
U.S. Direct Lending
10%
Investment Records as of September 30, 2024 - Notes
(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, 2024 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner
cash
flows. Initial inception date 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 representsco-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)
BREDS High-Yield represents the flagship real estate debt drawdown funds only.
(h)
Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and
longer hold period than traditional private equity.
(i)
Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC
and Total Net IRRs are reported on a three-month lag
and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered and therefore Unrealized
and Realized MOICs and Realized Net IRRs are not applicable. Committed Capital and Available Capital are presented as of the current quarter.
(j)
European Senior Debt II Levered has a net return of 15%, European Senior Debt II Unlevered has a net return of 8%.
(k)
Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of
the credit drawdown funds presented.
(l)
Represents the performance for select Perpetual Capital Strategies; strategies excluded consist primarily of
(1) investment strategies that have been investing for less
than one year, (2) perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees.
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc. n/m represents “not
meaningful” generally due to the limited time
since initial investment. n/a represents “not applicable”. Notes continue on page 22.
Blackstone | 21
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024(a) –
(CONT’D)
(m)
Unless otherwise indicated, Total Net Return represents the annualized inception to September 30, 2024 IRR on
total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of investor cash flows. Initial inception date of cash flows
occurred during the Inception Year.
(n)
BPP represents the aggregate Total AUM and Total Net Return of the BPP Platform, which comprises over 30 funds, co-investment and separately managed account
vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of September 30, 2024, these vehicles
represented
$2.5 billion of Total AUM.
(o)
The BREIT Total 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. This return is not representative of the return experienced by any particular investor or share class. Total
Net Return is presented on an annualized basis and is from January 1, 2017.
(p)
Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies
by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. Class I Total Net Return is presented on an
annualized basis and is from January 1, 2017.
(q)
The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since inception,
May 22, 2013, assuming reinvestment of all dividends received during the period.
(r)
BSCH represents the aggregate Total AUM and Total Net Return of BSCH I and BSCH II funds that invest as part of the
Secondaries - GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. Including co-investmentvehicles
that do not pay fees, BSCH Total AUM is $12.0 billion.
(s)
BIP represents the aggregate Total AUM and Total Net Return of the infrastructure-focused funds with a primary
focus on the U.S. Including co-investment vehicles and
BIP Europe, BIP Total AUM is $52.6 billion.
(t)
BXPE Total AUM reflects net asset value as of August 31, 2024 plus net subscriptions as of September 1,
2024. For purposes of segment AUM reporting, BXPE AUM is
reported by the business managing the assets. Total net return not presented because the reporting date is less than one year from BXPE’s inception date (January 2,
2024).
(u)
The BXSL Total AUM and Total Net Return are presented as of June 30, 2024. BXSL Total Net Return reflects the
change in NAV per share, plus distributions per share
(assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are
presented on
an annualized basis and are from November 20, 2018.
(v)
The BCRED Total Net Return reflects a per share blended return, assuming BCRED 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 BCRED. This return is not representative of the return experienced by any particular investor or
share
class. Total Net Return is presented on an annualized basis and is from January 7, 2021. Total AUM reflects gross asset value plus amounts borrowed or available to
be borrowed under certain credit facilities. BCRED net asset value as of
September 30, 2024 was $36.4 billion.
(w)
Represents the Total Net Return for BCRED’s Class I shares, its largest share class. Performance varies
by share class. Class I Total Net Return assumes reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. Class I Total Net Return is presented on an
annualized basis and is from January 7, 2021.
Blackstone | 22
SHAREHOLDER DIVIDENDS
§
Generated $1.01 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $2.95 per common share.
§
Blackstone declared a quarterly dividend of $0.86 per common share to record holders as of October 28, 2024; payable on November 4, 2024.
% Change
% Change
($ in thousands, except per share data)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
vs. 3Q’23
3Q’23 YTD
3Q’24 YTD
vs. 3Q’23 YTD
Distributable Earnings
$
1,211,611
$
1,388,180
$
1,266,378
$
1,252,221
$
1,278,650
6%
$
3,672,775
$
3,797,249
3
%
Add: Other Payables Attributable to
Common
Shareholders
119,783
57,810
130,920
124,280
73,491
(39)%
380,270
328,691
(14
)%
DE Before Certain Payables
1,331,394
1,445,990
1,397,298
1,376,501
1,352,141
2%
4,053,045
4,125,940
2
%
Percent to Common Shareholders
62%
62%
62%
63%
63%
62%
63%
DE Before Certain Payables Attributable to Common Shareholders
828,716
900,980
871,887
864,033
849,966
3%
2,514,874
2,585,886
3
%
Less: Other Payables Attributable to Common
Shareholders
(119,783
)
(57,810
)
(130,920
)
(124,280
)
(73,491
)
(39)%
(380,270
)
(328,691
)
(14
)%
DE Attributable to Common Shareholders
708,933
843,170
740,967
739,753
776,475
10%
2,134,604
2,257,195
6
%
DE per Common Share
$
0.94
$
1.11
$
0.98
$
0.96
$
1.01
7%
$
2.84
$
2.95
4
%
Less: Retained Capital per Common Share
$
(0.14
)
$
(0.17
)
$
(0.15
)
$
(0.14
)
$
(0.15
)
7%
$
(0.43
)
$
(0.44
)
2
%
Actual Dividend per Common Share
$
0.80
$
0.94
$
0.83
$
0.82
$
0.86
8%
$
2.41
$
2.51
4
%
Record Date
Oct 28, 2024
Payable Date
Nov 4, 2024
A detailed description of Blackstone’s dividend policy and the definition of Distributable Earnings can be found on pages 36-38, Definitions and Dividend Policy. See additional notes on page 35.
Blackstone | 23
SHARE SUMMARY
§
Distributable Earnings Shares Outstanding as of quarter end of 1,222 million shares.
–
Repurchased 1.0 million common shares in the quarter and 4.1 million common shares over the LTM.
–
Available authorization remaining was $1.9 billion at September 30, 2024.
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
Participating Common Shares
757,781,111
758,039,099
759,176,426
768,224,405
767,895,244
Participating Partnership Units
459,651,045
458,544,363
457,490,143
455,642,926
453,685,697
Distributable Earnings Shares Outstanding
1,217,432,156
1,216,583,462
1,216,666,569
1,223,867,331
1,221,580,941
Participating Common Shares and Participating Partnership Units include
both issued and outstanding shares and unvested shares that participate in dividends.
Blackstone | 24
Reconciliations and
Disclosures
Blackstone | 25
BLACKSTONE’S THIRD QUARTER 2024 GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($in thousands, except per share data) (unaudited)
3Q’23
3Q’24
3Q’23 YTD
3Q’24 YTD
3Q’23 LTM
3Q’24 LTM
Revenues
Management and Advisory Fees,
Net
$
1,655,443
$
1,794,894
$
5,023,128
$
5,309,355
$
6,671,566
$
6,957,487
Incentive Fees
158,801
191,794
454,754
559,434
665,018
799,851
Investment Income
Performance Allocations
Realized
453,690
414,755
1,602,668
1,598,913
2,038,265
2,220,086
Unrealized
(63,204
)
1,154,918
(708,021
)
1,723,090
(1,196,822
)
739,443
Principal Investments
Realized
94,313
95,235
257,206
247,877
364,040
294,494
Unrealized
69,340
(1,864
)
(257,988
)
427,983
(325,611
)
82,817
Total Investment Income
554,139
1,663,044
893,865
3,997,863
879,872
3,336,840
Interest and Dividend Revenue
109,133
109,774
348,123
312,612
450,755
480,986
Other
63,769
(96,312
)
17,951
(31,861
)
(225,331
)
(142,741
)
Total Revenues
$
2,541,285
$
3,663,194
$
6,737,821
$
10,147,403
$
8,441,880
$
11,432,423
Expenses
Compensation and Benefits
Compensation
700,268
732,041
2,153,570
2,293,491
2,780,560
2,925,368
Incentive Fee Compensation
65,432
73,464
192,940
224,310
264,201
312,437
Performance Allocations Compensation
Realized
168,620
169,740
670,610
689,370
828,427
919,619
Unrealized
11,866
465,099
(247,228
)
747,679
(443,967
)
340,504
Total Compensation and
Benefits
946,186
1,440,344
2,769,892
3,954,850
3,429,221
4,497,928
General, Administrative and Other
279,186
340,945
827,614
1,022,823
1,119,954
1,312,514
Interest Expense
110,599
111,337
323,136
328,156
423,465
436,888
Fund Expenses
38,934
3,470
118,918
13,380
137,449
13,449
Total Expenses
$
1,374,905
$
1,896,096
$
4,039,560
$
5,319,209
$
5,110,089
$
6,260,779
Other Income (Loss)
Change in Tax Receivable Agreement
Liability
-
-
1,887
-
23,422
(29,083
)
Net Gains (Losses) from Fund Investment
Activities
(49,078
)
42,842
102,486
70,009
49,616
(89,278
)
Total Other Income
(Loss)
$
(49,078
)
$
42,842
$
104,373
$
70,009
$
73,038
$
(118,361
)
Income Before Provision for
Taxes
$
1,117,302
$
1,809,940
$
2,802,634
$
4,898,203
$
3,404,829
$
5,053,283
Provision for Taxes
196,560
245,303
467,504
789,220
326,358
835,177
Net Income
$
920,742
$
1,564,637
$
2,335,130
$
4,108,983
$
3,078,471
$
4,218,106
Net Income (Loss) Attributable to Redeemable Non-Controlling
Interests in Consolidated Entities
(92,577
)
(22,184
)
(81,589
)
(61,595
)
(281,179
)
(225,524
)
Net Income Attributable toNon-Controlling
Interests in Consolidated Entities
20,716
202,929
185,021
406,339
355,212
445,473
Net Income Attributable to Non-Controlling
Interests in Blackstone Holdings
440,609
603,057
992,618
1,691,604
1,207,504
1,773,722
Net Income Attributable to
Blackstone Inc. (‘‘BX’’)
$
551,994
$
780,835
$
1,239,080
$
2,072,635
$
1,796,934
$
2,224,435
Net Income Per Share of Common Stock,
Basic
$
0.73
$
1.02
$
1.64
$
2.71
$
2.39
$
2.91
Net Income Per Share of Common Stock, Diluted
$
0.73
$
1.02
$
1.64
$
2.71
$
2.39
$
2.91
Blackstone | 26
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
Net Income Attributable to Blackstone Inc.
$
551,994
$
151,800
$
847,386
$
444,414
$
780,835
$
1,239,080
$
2,072,635
$
1,796,934
$
2,224,435
Net Income Attributable to Non-Controlling
Interests in Blackstone Holdings
440,609
82,118
685,439
403,108
603,057
992,618
1,691,604
1,207,504
1,773,722
Net Income Attributable toNon-Controlling
Interests in Consolidated Entities
20,716
39,134
102,827
100,583
202,929
185,021
406,339
355,212
445,473
Net Income (Loss) Attributable to Redeemable
Non-Controlling Interests in Consolidated Entities
(92,577
)
(163,929
)
(39,669
)
258
(22,184
)
(81,589
)
(61,595
)
(281,179
)
(225,524
)
Net Income
$
920,742
$
109,123
$
1,595,983
$
948,363
$
1,564,637
$
2,335,130
$
4,108,983
$
3,078,471
$
4,218,106
Provision for Taxes
196,560
45,957
283,671
260,246
245,303
467,504
789,220
326,358
835,177
Income Before Provision for Taxes
$
1,117,302
$
155,080
$
1,879,654
$
1,208,609
$
1,809,940
$
2,802,634
$
4,898,203
$
3,404,829
$
5,053,283
Transaction-Related and Non-Recurring Items (a)
6,250
8,882
52,197
4,962
(394
)
17,099
56,765
14,511
65,647
Amortization of Intangibles (b)
7,357
7,347
7,333
7,333
7,333
26,110
21,999
39,265
29,346
Impact of Consolidation (c)
71,861
124,795
(63,158
)
(100,841
)
(180,745
)
(103,432
)
(344,744
)
(74,033
)
(219,949
)
Unrealized Performance Revenues (d)
63,209
983,642
(445,936
)
(122,239
)
(1,154,905
)
708,146
(1,723,080
)
1,198,869
(739,438
)
Unrealized Performance Allocations
Compensation (e)
11,866
(407,175
)
180,900
101,680
465,099
(247,228
)
747,679
(443,967
)
340,504
Unrealized Principal Investment (Income) Loss (f)
(84,780
)
359,663
(442,976
)
38,125
90,254
233,638
(314,597
)
296,532
45,066
Other Revenues (g)
(63,748
)
110,933
(44,747
)
(19,541
)
96,329
(17,850
)
32,041
225,465
142,974
Equity-Based Compensation (h)
255,616
185,969
317,779
295,396
262,798
773,505
875,973
968,209
1,061,942
Administrative Fee Adjustment (i)
2,425
2,422
2,477
2,465
3,219
7,285
8,161
9,730
10,583
Taxes and Related Payables (j)
(175,747
)
(143,378
)
(177,145
)
(163,728
)
(120,278
)
(527,132
)
(461,151
)
(632,429
)
(604,529
)
Distributable Earnings
$
1,211,611
$
1,388,180
$
1,266,378
$
1,252,221
$
1,278,650
$
3,672,775
$
3,797,249
$
5,006,981
$
5,185,429
Taxes and Related Payables (j)
175,747
143,378
177,145
163,728
120,278
527,132
461,151
632,429
604,529
Net Interest and Dividend (Income) Loss
(k)
(3,890
)
(65,228
)
9,801
3,425
1,731
(40,892
)
14,957
(47,647
)
(50,271
)
Total Segment Distributable
Earnings
$
1,383,468
$
1,466,330
$
1,453,324
$
1,419,374
$
1,400,659
$
4,159,015
$
4,273,357
$
5,591,763
$
5,739,687
Realized Performance Revenues (l)
(337,940
)
(693,213
)
(536,393
)
(542,889
)
(342,669
)
(1,367,889
)
(1,421,951
)
(1,840,634
)
(2,115,164
)
Realized Performance Compensation (m)
133,995
287,628
253,024
251,057
157,570
608,389
661,651
770,168
949,279
Realized Principal Investment (Income) Loss
(n)
(55,500
)
(19,202
)
(9,938
)
(16,572
)
(40,403
)
(91,730
)
(66,913
)
(147,617
)
(86,115
)
Fee Related Earnings
$
1,124,023
$
1,041,543
$
1,160,017
$
1,110,970
$
1,175,157
$
3,307,785
$
3,446,144
$
4,373,680
$
4,487,687
Adjusted EBITDA Reconciliation
Distributable Earnings
$
1,211,611
$
1,388,180
$
1,266,378
$
1,252,221
$
1,278,650
$
3,672,775
$
3,797,249
$
5,006,981
$
5,185,429
Interest Expense (o)
110,014
108,168
107,640
108,424
111,326
321,353
327,390
421,583
435,558
Taxes and Related Payables (j)
175,747
143,378
177,145
163,728
120,278
527,132
461,151
632,429
604,529
Depreciation and Amortization (p)
21,598
25,251
26,053
25,336
24,685
68,873
76,074
93,174
101,325
Adjusted EBITDA
$
1,518,970
$
1,664,977
$
1,577,216
$
1,549,709
$
1,534,939
$
4,590,133
$
4,661,864
$
6,154,167
$
6,326,841
Notes on pages 28-29.
Blackstone | 27
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES
Note: See pages36-38, Definitions and Dividend Policy.
(a)
This adjustment removes Transaction-Related and Non-Recurring Items, which
are excluded from Blackstone’s segment presentation. Transaction-Related
and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public
offering, and non-recurring gains,
losses, or other charges, if any. 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, gains or losses associated
with these corporate actions, and non-recurring gains, losses
or other charges that affect period-to-period comparability and are not reflective of
Blackstone’s operational performance.
(b)
This adjustment removes the amortization of transaction-related intangibles, which are excluded from
Blackstone’s segment presentation.
(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
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
GAAP Unrealized Performance Allocations
$
(63,204
)
$
(983,647
)
$
445,943
$
122,229
$
1,154,918
$
(708,021
)
$
1,723,090
$
(1,196,822
)
$ 739,443
Segment Adjustment
(5
)
5
(7
)
10
(13
)
(125
)
(10
)
(2,047
)
(5)
Unrealized Performance Revenues
$
(63,209
)
$
(983,642
)
$
445,936
$
122,239
$
1,154,905
$
(708,146
)
$
1,723,080
$
(1,198,869
)
$ 739,438
(e) This adjustment removes Unrealized Performance Allocations
Compensation.
(f) This adjustment removes Unrealized Principal Investment Income 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
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
GAAP Unrealized Principal Investment Income (Loss)
$
69,340
$
(345,166
)
$
461,623
$
(31,776
)
$
(1,864
)
$
(257,988
)
$
427,983
$
(325,611
)
$ 82,817
Segment Adjustment
15,440
(14,497
)
(18,647
)
(6,349
)
(88,390
)
24,350
(113,386
)
29,079
(127,883)
Unrealized Principal Investment Income (Loss)
$
84,780
$
(359,663
)
$
442,976
$
(38,125
)
$
(90,254
)
$
(233,638
)
$
314,597
$
(296,532
)
$ (45,066)
(g) This adjustment removes Other Revenues on a segment basis. The
Segment Adjustment represents the removal of certain Transaction-Related and Non-Recurring Items.
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
GAAP Other Revenue
$
63,769
$
(110,880
)
$
44,820
$
19,631
$
(96,312)
$
17,951
$
(31,861
)
$
(225,331
)
$ (142,741)
Segment Adjustment
(21
)
(53
)
(73
)
(90
)
(17
)
(101
)
(180
)
(134
)
(233)
Other Revenues
$
63,748
$
(110,933
)
$
44,747
$
19,541
$
(96,329
)
$
17,850
$
(32,041
)
$
(225,465
)
$ (142,974)
(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.
Blackstone | 28
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (CONT’D)
(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. For interim periods, taxes are calculated using the preferred annualized
effective tax rate approach. Related
Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. Please
refer to page 36 for the full definition of Taxes and Related Payables.
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
Taxes
$
151,812
$
121,155
$
155,873
$
141,656
$
95,483
$
459,770
$
393,012
$
540,012
$
514,167
Related Payables
23,935
22,223
21,272
22,072
24,795
67,362
68,139
92,417
90,362
Taxes and Related Payables
$
175,747
$
143,378
$
177,145
$
163,728
$
120,278
$
527,132
$
461,151
$
632,429
$
604,529
(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.
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
GAAP Interest and Dividend Revenue
$
109,133
$
168,374
$
97,839
$
104,999
$
109,774
$
348,123
$
312,612
$
450,755
$
480,986
Segment Adjustment
4,771
5,022
—
—
(179
)
14,122
(179
)
18,475
4,843
Interest and Dividend Revenue
$
113,904
$
173,396
$
97,839
$
104,999
$
109,595
$
362,245
$
312,433
$
469,230
$
485,829
GAAP Interest Expense
$
110,599
$
108,732
$
108,203
$
108,616
$
111,337
$
323,136
$
328,156
$
423,465
$
436,888
Segment Adjustment
(585
)
(564
)
(563
)
(192
)
(11
)
(1,783
)
(766
)
(1,882
)
(1,330
)
Interest Expense
$
110,014
$
108,168
$
107,640
$
108,424
$
111,326
$
321,353
$
327,390
$
421,583
$
435,558
Net Interest and Dividend Income (Loss)
$
3,890
$
65,228
$
(9,801
)
$
(3,425
)
$
(1,731
)
$
40,892
$
(14,957
)
$
47,647
$
50,271
(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, excluding interest expense related to the Tax Receivable
Agreement.
(p) This adjustment adds back Depreciation and Amortization on a segment basis.
Reconciliation of GAAP Shares of Common Stock Outstanding to Distributable Earnings Shares Outstanding
QTD
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
GAAP Shares of Common Stock Outstanding
718,442,863
719,358,114
722,263,433
722,540,712
730,699,964
Unvested Participating Common Shares
39,338,248
38,680,985
36,912,993
45,683,693
37,195,280
Total Participating Common Shares
757,781,111
758,039,099
759,176,426
768,224,405
767,895,244
Participating Partnership Units
459,651,045
458,544,363
457,490,143
455,642,926
453,685,697
Distributable Earnings Shares Outstanding
1,217,432,156
1,216,583,462
1,216,666,569
1,223,867,331
1,221,580,941
Disclosure of Weighted-Average Shares Common Stock
Outstanding
QTD
YTD
LTM
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
Total GAAP Weighted-Average Shares of Common Stock Outstanding -
Basic
757,958,602
758,151,673
759,798,537
769,187,351
768,230,595
754,211,390
765,747,924
751,320,701
763,838,483
Weighted-Average Shares of Unvested Deferred
Restricted Common Stock
87,494
126,712
459,107
47,326
49,771
244,936
185,402
230,404
170,729
Total GAAP Weighted-Average Shares of Common Stock Outstanding -
Diluted
758,046,096
758,278,385
760,257,644
769,234,677
768,280,366
754,456,326
765,933,326
751,551,105
764,009,212
Blackstone | 29
BLACKSTONE’S THIRD QUARTER 2024 GAAP CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
($ in thousands) (unaudited)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
Assets
Cash and Cash Equivalents
$
2,971,614
$
2,955,866
$
2,504,471
$
2,381,436
$
2,353,332
Cash Held by Blackstone Funds and Other
138,181
316,197
167,711
219,393
180,545
Investments
27,339,857
26,146,622
25,922,290
26,426,289
28,322,715
Accounts Receivable
693,786
193,365
199,302
247,538
300,004
Due from Affiliates
4,398,333
4,466,521
4,695,224
4,868,069
5,163,883
Intangible Assets, Net
210,210
201,208
192,227
183,246
174,265
Goodwill
1,890,202
1,890,202
1,890,202
1,890,202
1,890,202
Other Assets
972,069
944,848
1,072,627
1,083,400
933,990
Right-of-Use Assets
864,691
841,307
805,454
995,524
978,699
Deferred Tax Assets
2,184,880
2,331,394
2,256,794
2,289,932
2,277,807
Total Assets
$
41,663,823
$
40,287,530
$
39,706,302
$
40,585,029
$
42,575,442
Liabilities and Equity
Loans Payable
$
12,111,377
$
11,304,059
$
10,740,171
$
10,688,193
$
10,752,246
Due to Affiliates
2,188,224
2,393,410
2,135,478
2,364,099
2,620,530
Accrued Compensation and
Benefits
5,983,137
5,247,766
5,378,212
5,703,156
6,398,365
Operating Lease Liabilities
981,616
989,823
951,648
1,142,317
1,136,671
Accounts Payable, Accrued Expenses
and Other Liabilities
1,588,748
2,277,258
2,023,359
2,012,969
2,202,689
Total Liabilities
22,853,102
22,212,316
21,228,868
21,910,734
23,110,501
RedeemableNon-Controlling Interests in Consolidated Entities
1,349,060
1,179,073
935,005
888,868
892,846
Equity
Common Stock, $0.00001 par value
(730,699,964 shares issued
and outstanding as of September 30, 2024)
7
7
7
7
7
Series I Preferred Stock, $0.00001 par value (1 share
issued
and outstanding as of September 30, 2024)
-
-
-
-
-
Series II Preferred Stock, $0.00001
par value (1 share issued
and outstanding as of September 30, 2024)
-
-
-
-
-
Additional Paid-in-Capital
6,057,065
6,175,190
6,190,142
6,260,619
6,257,788
Retained Earnings
1,114,009
660,734
796,201
607,564
760,471
Accumulated Other Comprehensive Loss
(38,258
)
(19,133
)
(31,282
)
(34,617
)
(10,609
)
Non-Controlling Interests in Consolidated Entities
5,174,473
5,177,255
5,381,678
5,682,606
6,015,967
Non-Controlling Interests in Blackstone Holdings
5,154,365
4,902,088
5,205,683
5,269,248
5,548,471
Total Equity
17,461,661
16,896,141
17,542,429
17,785,427
18,572,095
Total Liabilities and Equity
$
41,663,823
$
40,287,530
$
39,706,302
$
40,585,029
$
42,575,442
See page 31, Reconciliation of GAAP to Non-GAAP Balance Sheet Measures.
Blackstone | 30
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
Investments of Consolidated Blackstone Funds
$
5,224,104
$
4,319,483
$
3,458,911
$
3,621,676
$
3,873,027
Equity Method Investments
Partnership Investments
5,588,222
5,924,275
6,100,640
6,107,429
6,295,704
Accrued Performance Allocations
11,606,901
10,775,355
11,163,116
11,132,801
12,411,485
Corporate Treasury Investments
763,515
803,870
197,976
176,330
147,642
Other Investments
4,157,115
4,323,639
5,001,647
5,388,053
5,594,857
Total GAAP Investments
27,339,857
26,146,622
25,922,290
26,426,289
28,322,715
Accrued Performance Allocations - GAAP
$
11,606,901
$
10,775,355
$
11,163,116
$
11,132,801
$
12,411,485
Impact of Consolidation (a)
-
-
-
-
-
Due from Affiliates - GAAP (b)
196,510
313,838
249,968
235,767
253,490
Less: Net Realized Performance Revenues (c)
(367,944
)
(552,249
)
(448,811
)
(146,832
)
(141,896
)
Less: Accrued Performance Compensation - GAAP (d)
(5,000,253
)
(4,702,363
)
(4,880,191
)
(5,007,547
)
(5,531,520
)
Net Accrued Performance Revenues
$
6,435,214
$
5,834,581
$
6,084,082
$
6,214,189
$
6,991,559
Corporate Treasury and Other Investments - GAAP
$
4,920,630
$
5,127,509
$
5,199,623
$
5,564,383
$
5,742,499
Impact of Consolidation (a)
433,466
500,046
484,521
590,551
580,076
Other Assets (e)
126,676
127,167
228,702
218,728
250,996
Other Liabilities (f)
(9,262
)
(299,368
)
(6,651
)
(6,874
)
(6,584
)
Corporate Treasury and Other Investments - Deconsolidated
(g)
$
5,471,510
$
5,455,354
$
5,906,195
$
6,366,788
$
6,566,987
Partnership Investments - GAAP
$
5,588,222
$
5,924,275
$
6,100,640
$
6,107,429
$
6,295,704
Impact of Consolidation (h)
(3,251,310
)
(3,223,580
)
(3,308,117
)
(3,401,589
)
(3,482,920
)
GP/Fund Investments - Deconsolidated
$
2,336,912
$
2,700,695
$
2,792,523
$
2,705,840
$
2,812,784
Loans Payable - GAAP
$
12,111,377
$
11,304,059
$
10,740,171
$
10,688,193
$
10,752,246
Impact of Consolidation (i)
(1,589,649
)
(687,121
)
(169,836
)
(130,321
)
(107,715
)
Outstanding Debt - Carrying Value
10,521,728
10,616,938
10,570,335
10,557,872
10,644,531
Unamortized Discount
132,838
130,811
127,614
124,677
122,418
Outstanding Debt (at par) - Deconsolidated
$
10,654,566
$
10,747,749
$
10,697,949
$
10,682,549
$
10,766,949
(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)
Deconsolidated Other Investments was $5.6 billion as of September 30, 2024, which was comprised of
$5.1 billion of liquid investments and $498 million of illiquid investments. The liquid portion of Other Investments relates to public equity securities and other investments held by Blackstone that can be easily converted to cash and may
include securities and investments subject to lock-up periods.
(h)
This adjustment removes amounts associated with the ownership of Blackstone consolidated operating partnerships
held by non-controlling interests and adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.
(i)
This adjustment removes amounts related to consolidated Blackstone Funds.
Blackstone | 31
RECONCILIATION OF GAAP TO TOTAL SEGMENTS
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
Management and Advisory Fees, Net
GAAP
$
1,655,443
$
1,648,132
$
1,727,148
$
1,787,313
$
1,794,894
$
5,023,128
$
5,309,355
$
6,671,566
$
6,957,487
Segment Adjustment (a)
(1,603
)
5,699
(19,577
)
(7,375
)
(8,160
)
(13,715
)
(35,112
)
(21,062
)
(29,413
)
Total Segment
$
1,653,840
$
1,653,831
$
1,707,571
$
1,779,938
$
1,786,734
$
5,009,413
$
5,274,243
$
6,650,504
$
6,928,074
GAAP Realized Performance Revenues to Total
Segment Fee Related Performance Revenues
GAAP
Incentive Fees
158,801
240,417
179,341
188,299
191,794
454,754
559,434
665,018
799,851
Investment Income - Realized Performance
Allocations
453,690
621,173
652,517
531,641
414,755
1,602,668
1,598,913
2,038,265
2,220,086
GAAP
$
612,491
$
861,590
$
831,858
$
719,940
$
606,549
$
2,057,422
$
2,158,347
$
2,703,283
$
3,019,937
Total Segment
Less: Realized Performance Revenues
(337,940
)
(693,213
)
(536,393
)
(542,889
)
(342,669
)
(1,367,889
)
(1,421,951
)
(1,840,634
)
(2,115,164
)
Segment Adjustment (b)
-
617
36
16
221
-
273
(408
)
890
Total Segment
$
274,551
$
168,994
$
295,501
$
177,067
$
264,101
$
689,533
$
736,669
$
862,241
$
905,663
GAAP Compensation to Total Segment Fee Related
Compensation
GAAP
Compensation
700,268
631,877
794,803
766,647
732,041
2,153,570
2,293,491
2,780,560
2,925,368
Incentive Fees Compensation
65,432
88,127
73,707
77,139
73,464
192,940
224,310
264,201
312,437
Realized Performance Allocations Compensation
168,620
230,249
258,894
260,736
169,740
670,610
689,370
828,427
919,619
GAAP
$
934,320
$
950,253
$
1,127,404
$
1,104,522
$
975,245
$
3,017,120
$
3,207,171
$
3,873,188
$
4,157,424
Total Segment
Less: Realized Performance Compensation
(133,995
)
(287,628
)
(253,024
)
(251,057
)
(157,570
)
(608,389
)
(661,651
)
(770,168
)
(949,279
)
Less: Equity-Based Compensation - Fee Related Compensation
(252,928
)
(182,048
)
(313,400
)
(291,540
)
(259,265
)
(764,527
)
(864,205
)
(956,668
)
(1,046,253
)
Less: Equity-Based Compensation - Performance
Compensation
(2,688
)
(3,921
)
(4,379
)
(3,856
)
(3,533
)
(8,978
)
(11,768
)
(11,541
)
(15,689
)
Segment Adjustment (c)
(4,786
)
(6,248
)
(2,524
)
(5,156
)
(22
)
(17,524
)
(7,702
)
(36,486
)
(13,950
)
Total Segment
$
539,923
$
470,408
$
554,077
$
552,913
$
554,855
$
1,617,702
$
1,661,845
$
2,098,325
$
2,132,253
GAAP General, Administrative and Other to
Total Segment Other Operating Expenses
GAAP
$
279,186
$
289,691
$
369,950
$
311,928
$
340,945
$
827,614
$
1,022,823
$
1,119,954
$
1,312,514
Segment Adjustment (d)
(14,741
)
21,183
(80,972
)
(18,806
)
(20,122
)
(54,155
)
(119,900
)
(79,214
)
(98,717
)
Total Segment
$
264,445
$
310,874
$
288,978
$
293,122
$
320,823
$
773,459
$
902,923
$
1,040,740
$
1,213,797
Realized Performance Revenues
GAAP
Incentive Fees
158,801
240,417
179,341
188,299
191,794
454,754
559,434
665,018
799,851
Investment Income - Realized Performance
Allocations
453,690
621,173
652,517
531,641
414,755
1,602,668
1,598,913
2,038,265
2,220,086
GAAP
$
612,491
$
861,590
$
831,858
$
719,940
$
606,549
$
2,057,422
$
2,158,347
$
2,703,283
$
3,019,937
Total Segment
Less: Fee Related Performance Revenues
(274,551
)
(168,994
)
(295,501
)
(177,067
)
(264,101
)
(689,533
)
(736,669
)
(862,241
)
(905,663
)
Segment Adjustment (b)
-
617
36
16
221
-
273
(408
)
890
Total Segment
$
337,940
$
693,213
$
536,393
$
542,889
$
342,669
$
1,367,889
$
1,421,951
$
1,840,634
$
2,115,164
Blackstone | 32
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D)
QTD
YTD
LTM
($ in thousands)
3Q’23
4Q’23
1Q’24
2Q’24
3Q’24
3Q’23
3Q’24
3Q’23
3Q’24
Realized Performance Compensation
GAAP
Incentive Fee Compensation
$
65,432
$
88,127
$
73,707
$
77,139
$
73,464
$
192,940
$
224,310
$
264,201
$
312,437
Realized Performance Allocations
Compensation
168,620
230,249
258,894
260,736
169,740
670,610
689,370
828,427
919,619
GAAP
$
234,052
$
318,376
$
332,601
$
337,875
$
243,204
$
863,550
$
913,680
$
1,092,628
$
1,232,056
Total Segment
Less: Fee Related Performance Compensation
(e)
(97,369
)
(26,827
)
(75,198
)
(82,962
)
(82,101
)
(246,183
)
(240,261
)
(310,919
)
(267,088
)
Less: Equity-Based Compensation - Performance Compensation
(2,688
)
(3,921
)
(4,379
)
(3,856
)
(3,533
)
(8,978
)
(11,768
)
(11,541
)
(15,689
)
Total Segment
$
133,995
$
287,628
$
253,024
$
251,057
$
157,570
$
608,389
$
661,651
$
770,168
$
949,279
Realized Principal Investment Income
(Loss)
GAAP
$
94,313
$
46,617
$
78,597
$
74,045
$
95,235
$
257,206
$
247,877
$
364,040
$
294,494
Segment Adjustment (f)
(38,813
)
(27,415
)
(68,659
)
(57,473
)
(54,832
)
(165,476
)
(180,964
)
(216,423
)
(208,379
)
Total Segment
$
55,500
$
19,202
$
9,938
$
16,572
$
40,403
$
91,730
$
66,913
$
147,617
$
86,115
GAAP Interest and Dividend Revenue net of
Interest Expense to Total Segment Net Interest and Dividend Income (Loss)
GAAP
Interest and Dividend Revenue
109,133
168,374
97,839
104,999
109,774
348,123
312,612
450,755
480,986
Interest Expense
(110,599
)
(108,732
)
(108,203
)
(108,616
)
(111,337
)
(323,136
)
(328,156
)
(423,465
)
(436,888
)
GAAP
$
(1,466
)
$
59,642
$
(10,364
)
$
(3,617
)
$
(1,563
)
$
24,987
$
(15,544
)
$
27,290
$
44,098
Segment Adjustment (g)
5,356
5,586
563
192
(168
)
15,905
587
20,357
6,173
Total Segment
$
3,890
$
65,228
$
(9,801
)
$
(3,425
)
$
(1,731
)
$
40,892
$
(14,957
)
$
47,647
$
50,271
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 26). 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 and Non-Recurring Items.
(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 and Non-Recurring Items that
are not recorded in the Total Segment measures.
(d)
Represents the (1) removal of Transaction-Related and Non-RecurringItems that are not recorded in the Total Segment Measures, (2) removal of 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, and (3) 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)
Fee related performance compensation may include equity based compensation based on fee related performance
revenues.
(f)
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.
(g)
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.
Blackstone | 33
NOTES
Notes to page 4 - Investment Performance and
Net Accrued Performance Revenues
§
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.
§
Core+ appreciation represents a weighted average of BREIT’s per share appreciation, BEPIF’s per share appreciation, and BPP’s appreciation for the period. The returns are weighted based on the average of
BREIT’s monthly net asset values, BEPIF’s monthly net asset values, and the
average of BPP’s quarterly adjusted beginning period market values for the period.
§
Throughout this presentation, Secondaries reflects Strategic Partners and GP Stakes unless otherwise indicated. Results for the Secondaries business refer to the appreciation of the Strategic Partners funds and do not
include results for GP Stakes. Strategic Partners results are reported on a three-month lag from fund financial statements, which generally report underlying investments on a same-quarter basis, if available. 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.
§
Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and credit alpha strategies)
and energy strategies. Liquid Credit returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the
beginning
of each respective quarter-end are included. Funds in liquidation, funds investing primarily in investment grade corporate credit and asset-based finance are excluded. Blackstone Funds that were
contributed to Blackstone Credit as part of Blackstone’s acquisition of Blackstone Credit, formerly known as GSO, in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by
Blackstone Credit subsequent to March 2008, are also excluded.
§
The Absolute Return Composite gross and net returns are based on the Multi-Asset Investing (“BXMA”) Absolute Return Composite, which includes only BXMA-managed commingled and customized multi-manager funds and
accounts and does not include BXMA’s liquid solutions group, seeding, multi-strategy, and advisory (non-discretionary) platforms, except for investments by Absolute Return funds directly into those
platforms. BXMA-managed funds in liquidation and, in the case of net returns, non fee-paying assets are also excluded. The funds/accounts that comprise the Absolute Return Composite are not managed within a
single fund or account and are managed with different mandates. There is no guarantee that BXMA would have made the same mix of investments in a stand-alone fund/account. The Absolute Return Composite is not an investible product and, as such, the
performance of the Absolute Return Composite does not represent the performance of an actual fund or account.
Notes to page 16
– Assets Under Management – Rollforward
§
Effective 3Q’24, the residential debt business was transferred from Real Estate to Credit & Insurance to align with a change in Blackstone’s management of those businesses. This organizational change
resulted in a decrease (reflected as an outflow) for September 30, 2024 to Real Estate AUM and Fee-Earning AUM of $12.5 billion and $12.1 billion, respectively and an increase (reflected as a
contra-outflow) to Credit & Insurance AUM and Fee-Earning AUM of $12.5 billion and $12.1 billion, respectively. These changes do not impact Blackstone’s Total AUM or Fee-Earning AUM or Outflows in total.
§
Effective 3Q’24, the methodology for Fee-Earning AUM was updated with respect to certain credit funds to exclude leverage that contributes to performance revenues but does
not earn management fees, resulting in an adjustment to Fee-Earning AUM for September 30, 2024 of $(4.0) billion which is reflected in Outflows.
Blackstone | 34
NOTES – (CONT’D)
Notes to page 17 – Deconsolidated
Balance Sheet Highlights
§
GP/Fund Investments include Blackstone investments in Real Estate, Private Equity, Credit & Insurance, and Multi-Asset Investing, which were $623 million, $1.2 billion, $829 million, and
$123 million, respectively, as of September 30, 2024. Cash and Net Investments per share amounts are calculated using period end DE Shares Outstanding (see page 24, Share Summary).
Notes to page 23 – Shareholder Dividends
§
DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. 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.
§
Per Share calculations are based on end of period Participating Common Shares (page 24, Share Summary); actual dividends are paid to shareholders as of the applicable record date.
§
Retained capital is withheld pro rata from common shareholders and Blackstone Holdings Partnership unitholders. Common shareholders’ share was $115 million for 3Q’24 and $337 million for 3Q’24
YTD.
Blackstone | 35
DEFINITIONS AND DIVIDEND POLICY
Blackstone discloses the following operating metrics
and financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America(“non-GAAP”) in this presentation:
§
Segment Distributable Earnings, or “Segment DE”, is Blackstone’s segment profitability measure used to 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 and Non-Recurring Items. 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 is presented on a segment basis and is the sum of 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).
–
Segment Revenues represent Net Management and Advisory Fees, Fee Related Performance Revenues, Realized Performance Revenues and Realized Principal Investment Income.
§
Distributable Earnings, or “DE”, is derived from Blackstone’s segment reported results. DE is used to 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 and Dividend 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 and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone Funds,
and interest expense associated with the Tax Receivable Agreement.
–
Taxes and Related Payables 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 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 and Non-Recurring Items 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 of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management
believes that including the amount
payable under the tax receivable agreement and utilizing the current income tax provision adjusted as
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 Related Earnings, or “FRE”, is a performance measure 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. FRE equals management and advisory fees (net of management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis, and
(b) Other Operating Expenses. FRE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.
Blackstone | 36
DEFINITIONS AND DIVIDEND POLICY – (CONT’D)
–
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 Related Performance Revenues refers to the realized portion of 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 Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment Measures, (b) remove certain
expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in
Blackstone’s segment
presentation, and (c) give effect 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.
–
Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which
there is no requirement to return capital to investors through
redemption requests in the ordinary course of business, except where funded
by new capital inflows. Includes co-investment capital with an investor right to convert into Perpetual Capital.
–
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).
§
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, is a supplemental measure used to
assess performance derived from
Blackstone’s segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA
represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related
Payables, and
(c) Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP
measure of Income (Loss) Before Provision (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.
–
Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals
above the amounts allocable to them based upon the percentage participation in
the relevant performance plans previously awarded to them
as a result of a compensation program that commenced in 2Q’21. The expectation is that for the full year 2024, Fee Related Compensation
will be decreased by the total amount of
additional Performance Compensation awarded for the year. For 3Q’24 QTD and 3Q’24 YTD, the
increase to Realized Performance Compensation was greater than the decrease to Fee Related Compensation, which negatively impacted
Distributable Earnings for the current year quarter and YTD periods. For 3Q’23 QTD, the increase to Realized Performance Compensation was
less than the decrease to Fee Related Compensation, which favorably impacted Distributable
Earnings for the prior year quarter. For
3Q’23 YTD, the increase to Realized Performance Compensation was greater than the decrease to Fee Related Compensation, which
negatively impacted Distributable Earnings for the prior year YTD
period. These changes to Performance Compensation and Fee Related
Compensation are not expected to impact Distributable Earnings for the full year.
§
Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public
offering, and non-recurring gains, losses, or other charges, if any. 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, gains or losses associated with these corporate actions, and non-recurring gains, losses or other charges that
affect
period-to-period comparability and are not reflective of Blackstone’s operational performance.
Blackstone | 37
DEFINITIONS AND DIVIDEND POLICY – (CONT’D)
Dividend Policy. Blackstone’s intention is to pay
to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s board of directors to be necessary or
appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future cash requirements such 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 reduce such
quarterly dividends or even to eliminate such dividends entirely.
Blackstone | 38
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,”
“scheduled,” “estimates,” “anticipates,” “opportunity,” “leads,” “forecast” or the negative version of these words or other comparable words. Such forward-looking statements are subject to
various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to
those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, 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 | 39
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 0 | — | — |
| Buybacks share repurchase, buyback program | 2 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor