Skip to main content
Equibles

8-K

Blackstone Inc. (BX)

8-K 2023-07-20 For: 2023-07-20
View Original
Added on April 10, 2026
View as plain text

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 20, 2023

Blackstone Inc.

(Exact name of Registrant as specified in its charter)

Delaware 001-33551 20-8875684
(State or other jurisdiction<br>of incorporation) (Commission<br>File Number) (I.R.S. Employer<br> <br>Identification No.)
345 Park Avenue<br> <br>New York, New York 10154
--- ---
(Address of principal executive offices) (Zip Code)

(212) 583-5000

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
--- ---
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
--- ---
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
--- ---

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br>Symbol(s) Name of each exchange<br>on which registered
Common Stock BX New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 20, 2023, Blackstone Inc. issued a press release and detailed presentation announcing financial results for its second quarter ended June 30, 2023.

The press release is attached hereto as Exhibit 99.1. All information in the press release is furnished but not filed.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
99.1 Press release of Blackstone Inc. dated July 20, 2023.
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

i

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 20, 2023

Blackstone Inc.
By: /s/ Michael S. Chae
Name: Michael S. Chae
Title: Chief Financial Officer

ii

EX-99.1

Exhibit 99.1

LOGO

Blackstone Reports Second Quarter 2023 Results

New York, July 20, 2023: Blackstone (NYSE:BX) today reported its second quarter 2023 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone is the first alternative manager to

surpass $1 trillion of assets under management. This milestone reflects the extraordinary trust we have developed

with our investors — built through performance — as well as our distinctive position as an innovator. We believe we

are in the early stages of the long-term growth of the alternatives industry, providing a vast opportunity for further

expansion.”

Blackstone issued a full detailed presentation of its second quarter 2023 results, which can be viewed at

www.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $0.79 per share to record holders of common stock at the close of

business on July 31, 2023. This dividend will be paid on August 7, 2023.

Quarterly Investor Call Details

Blackstone will host its second quarter 2023 investor conference via public webcast on July 20, 2023 at

9:00 a.m. ET. To register, please use the following link:

https://event.webcasts.com/starthere.jsp?ei=1622278&tp_key=8cb62d5512. For those unable to listen to the live

Blackstone<br> <br>345 Park<br>Avenue, New York, NY 10154<br> <br>T 212 583 5000<br><br><br>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 create positive economic impact and long-

term value for our investors, the companies we invest in, and the communities in which we work. We do this by

using extraordinary people and flexible capital to help companies solve problems. Our $1.0 trillion in assets under

management include investment vehicles focused on private equity, real estate, private and liquid credit,

infrastructure, life sciences, growth equity, public securities and secondary funds, all on a global basis. Further

information is available at www.blackstone.com. Follow @blackstone on LinkedIn, 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, 2022, 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.

<br> 2<br>

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

Investor and Media Relations Contacts

Weston Tucker<br><br><br>Blackstone<br> <br>Tel: +1 (212) 583-5231<br> <br>tucker@blackstone.com Christine Anderson<br><br><br>Blackstone<br> <br>Tel: +1<br>(212) 583-5182<br> <br>christine.anderson@blackstone.com
<br> 3<br>
---

LOGO

Blackstone’s Second

Quarter 2023 Earnings

JULY 20, 2023

BLACKSTONE’S SECOND QUARTER 2023 GAAP RESULTS

§ GAAP Net Income was $1.2 billion for the quarter and $1.4 billion year-to-date (“YTD”). GAAP Net Income<br><br>Attributable to Blackstone Inc. was $601 million for the quarter and $687 million YTD.
($ in thousands, except per share data) (unaudited) 2Q’22 2Q’23 2Q’22 YTD 2Q’23 YTD 2Q’22 LTM 2Q’23 LTM
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Revenues
Management and Advisory Fees, Net $ 1,561,187 $ 1,709,370 $ 3,037,123 $ 3,367,685 $ 5,817,466 $ 6,633,877
Incentive Fees 99,598 153,077 204,087 295,953 388,747 616,993
Performance Allocations (1,013,899 ) 616,479 2,045,537 504,161 9,869,581 405,208
Principal Investments (235,329 ) 218,924 123,736 (164,435 ) 1,108,511 (1,001,693 )
Interest and Dividend Revenue 62,075 148,505 116,560 238,990 214,774 394,042
Other 155,588 (31,664 ) 228,457 (45,818 ) 343,343 (89,718 )
Total Revenues $ 629,220 $ 2,814,691 $ 5,755,500 $ 4,196,536 $ 17,742,422 $ 6,958,709
Expenses
Compensation and Benefits 380,748 1,060,595 2,268,157 1,823,706 6,780,147 3,088,003
General, Administrative and Other 289,288 275,034 529,962 548,428 1,057,630 1,111,137
Interest Expense 69,642 108,096 136,389 212,537 245,352 393,373
Fund Expenses 4,435 31,585 6,627 79,984 10,846 104,032
Total Expenses $ 744,113 $ 1,475,310 $ 2,941,135 $ 2,664,655 $ 8,093,975 $ 4,696,545
Other Income (Loss)
Change in Tax Receivable Agreement Liability (13 ) 7,095 748 1,887 (4,529 ) 23,422
Net Gains (Losses) from Fund Investment Activities (104,326 ) 80,500 (53,450 ) 151,564 160,705 99,872
Income Before Provision (Benefit) for Taxes $ (219,232 ) $ 1,426,976 $ 2,761,663 $ 1,685,332 $ 9,804,623 $ 2,385,458
Provision for Taxes 36,514 223,269 519,795 270,944 1,416,393 224,029
Net Income (Loss) $ (255,746 ) $ 1,203,707 $ 2,241,868 $ 1,414,388 $ 8,388,230 $ 2,161,429
Redeemable NCI in Consolidated Entities 25,875 17,688 30,927 10,988 35,401 (162,829 )
Non-Redeemable NCI in<br>Consolidated Entities (252,228 ) 584,745 1,023,460 716,314 4,364,975 1,077,022
Net Income (Loss) Attributable to Blackstone Inc.(‘‘BX’’) $ (29,393 ) $ 601,274 $ 1,187,481 $ 687,086 $ 3,987,854 $ 1,247,236
Net Income (Loss) Per Share of Common Stock, Basic $ (0.04 ) $ 0.79 $ 1.61 $ 0.91 $ 5.45 $ 1.67
Net Income (Loss) Per Share of Common Stock, Diluted $ (0.04 ) $ 0.79 $ 1.61 $ 0.91 $ 5.45 $ 1.67
Throughout this presentation, all current period amounts are preliminary and unaudited. Totals may not add due to rounding. See pages 36-38, Definitions and<br>Dividend Policy, for definitions of terms used throughout this<br>presentation. NCI means non-controlling interests. Blackstone 1
--- ---

BLACKSTONE’S SECOND QUARTER 2023 HIGHLIGHTS

Financial Measures § Fee Related Earnings (“FRE”) of $1.1 billion ($0.94/share) in the quarter<br> <br><br><br><br>–  FRE was $4.4 billion over the last twelve months (“LTM”) ($3.66/share)<br><br><br><br> <br>§ Distributable Earnings (“DE”) of $1.2 billion ($0.93/share) in the quarter<br><br><br><br> <br>–  DE was $5.2 billion over<br>the LTM ($4.03/share)<br> <br><br> <br>§ Net Accrued Performance Revenues of $6.5 billion ($5.31/share)
Capital Metrics § Total Assets Under Management (“AUM”) of $1.0 trillion, up 6% year-over-year<br> <br><br><br><br>–  Fee-Earning AUM of $731.1 billion, up 7%<br>year-over-year<br> <br><br> <br>–  Perpetual<br>Capital AUM of $384.3 billion, up 8% year-over-year<br> <br><br><br><br>§ Inflows of $30.1 billion in the quarter and $158.4 billion over the LTM<br> <br><br><br><br>§ Deployment of $19.5 billion in the quarter and $80.3 billion over the LTM<br> <br><br><br><br>§ Realizations of $17.2 billion in the quarter and $64.4 billion over the LTM
Capital Returned<br><br><br>to Shareholders § Dividend of $0.79 per common share payable on August 7, 2023<br> <br><br><br><br>–  Dividends of $3.42 per common share over the LTM<br><br><br><br> <br>§ Repurchased 1.0 million common shares in the quarter and 4.0 million common<br>shares<br>over the LTM<br> <br><br><br><br>§ $1.1 billion to be distributed to shareholders with respect to the second quarter and $4.8 billion over the LTM through dividends and share repurchases
Blackstone 2
---

BLACKSTONE’S SECOND QUARTER 2023 SEGMENT EARNINGS

% Change % Change
($ in thousands, except per share data) 2Q’22 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23YTD vs. 2Q’22 YTD
Management and Advisory Fees, Net $ 1,556,917 $ 1,703,186 9% $ 3,030,285 $ 3,355,573 11%
Fee Related Performance<br>Revenues 346,593 266,738 (23)% 904,658 414,982 (54)%
Fee Related Compensation (621,413 ) (568,808 ) (8)% (1,291,884 ) (1,077,779 ) (17)%
Other Operating Expenses (261,510 ) (257,366 ) (2)% (475,608 ) (509,014 ) 7%
Fee Related Earnings $ 1,020,587 $ 1,143,750 12% $ 2,167,451 $ 2,183,762 1%
Realized Performance<br>Revenues 2,206,774 388,423 (82)% 3,519,584 1,029,949 (71)%
Realized Performance Compensation (926,974 ) (178,370 ) (81)% (1,446,094 ) (474,394 ) (67)%
Realized Principal Investment Income<br>(Loss) 43,509 (7,461 ) n/m 200,604 36,230 (82)%
Net Realizations **** 1,323,309 **** 202,592 (85)% **** 2,274,094 **** 591,785 (74)%
Total Segment DistributableEarnings $ 2,343,896 $ 1,346,342 (43)% $ 4,441,545 $ 2,775,547 (38)%
Distributable Earnings $ 1,985,825 $ 1,212,072 (39)% $ 3,923,705 $ 2,461,164 (37)%
Additional Metrics:
Net Income Per Share of Common Stock, Basic $ (0.04 ) $ 0.79 n/m $ 1.61 $ 0.91 (43)%
FRE per Share $ 0.84 $ 0.94 12% $ 1.79 $ 1.80 1%
DE per Common Share $ 1.49 $ 0.93 (38)% $ 3.04 $ 1.90 (38)%
Total Segment Revenues $ 4,153,793 $ 2,350,886 (43)% $ 7,655,131 $ 4,836,734 (37)%
Total Assets Under Management $ 940,805,741 $ 1,001,355,959 6% $ 940,805,741 $ 1,001,355,959 6%
Fee-Earning Assets Under Management $ 683,825,961 $ 731,145,065 7% $ 683,825,961 $ 731,145,065 7%
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<br>period Participating Common Shares outstanding. YTD FRE per Share and DE per Common Share amounts represent the sum of the last two quarters. See pages 32-33 for the Reconciliation of GAAP to Total Segment<br>Measures. Blackstone 3
--- ---

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

§ Appreciation across strategies led to higher Net Accrued Performance Revenues quarter-over-quarter of $6.5 billion ($5.31/share).
Investment Performance<br> <br><br><br><br>(appreciation / gross returns) Net Accrued Performance Revenues<br> <br><br><br><br>($ in millions)
--- --- --- --- --- --- ---
2Q’23 2Q’23 LTM <br><br><br>LOGO<br>
Real Estate
Opportunistic 0.0 % (3.0)%
Core+ 1.7 % 0.9%
Private Equity
Corporate Private Equity 3.5 % 9.7%
Tactical Opportunities 1.8 % 2.7%
Secondaries 2.3 % (1.8)%
Credit &Insurance
Private Credit 3.3 % 12.7%
Liquid Credit 2.8 % 9.8%
Hedge Fund Solutions
BPS Composite 1.9 % 6.2%
Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Credit & Insurance and<br>Hedge Fund Solutions.<br> <br>Private Credit net returns were 2.5% and 9.1% for 2Q’23 and 2Q’23 LTM, respectively. Liquid Credit net returns were 2.7% and<br>9.2% for 2Q’23 and 2Q’23 LTM,<br> <br>respectively. BPS Composite net returns were 1.8% and 5.3% for 2Q’23 and 2Q’23 LTM, respectively. See notes<br>on page 34 for additional details on investment<br> <br>performance. Blackstone 4
--- ---

CAPITAL METRICS – ADDITIONAL DETAIL

§ Inflows were $30.1 billion in the quarter, bringing LTM inflows to $158.4 billion.
§ Deployed $19.5 billion in the quarter and $80.3 billion over the LTM.
--- ---
– Committed an additional $6.8 billion that was not yet deployed in the quarter.
--- ---
§ Realizations were $17.2 billion in the quarter and $64.4 billion over the LTM.
--- ---
Inflows Capital Deployed Realizations
--- --- --- --- --- --- --- --- --- --- --- --- ---
($ in millions) 2Q’23 2Q’23 LTM 2Q’23 2Q’23 LTM 2Q’23 2Q’23 LTM
Real Estate $ 7,891 $ 49,215 $ 4,126 $ 21,012 $ 5,543 $ 17,643
Opportunistic 1,622 8,544 2,776 9,163 1,593 4,236
Core+ 3,076 21,360 674 9,699 3,071 10,633
BREDS 3,193 19,310 676 2,150 879 2,775
Private Equity **** 8,539 **** 36,328 **** 11,016 **** 28,536 **** 4,075 **** 23,627
Corporate Private Equity 5,832 15,041 7,767 12,895 2,327 12,376
Tactical Opportunities 1,622 5,151 766 1,677 393 4,434
Secondaries 371 9,613 979 5,918 985 5,726
Infrastructure 713 6,523 1,504 8,045 370 1,089
Credit & Insurance **** 12,303 **** 64,215 **** 3,759 **** 29,231 **** 5,601 **** 19,591
Hedge Fund Solutions **** 1,382 **** 8,623 **** 562 **** 1,532 **** 1,959 **** 3,492
Total Blackstone $ 30,115 $ 158,381 $ 19,463 $ 80,311 $ 17,178 $ 64,352
Corporate Private Equity also includes Life Sciences and BTAS. Tactical Opportunities also includes Blackstone Growth. Blackstone 5
--- ---

ASSETS UNDER MANAGEMENT

§ Total AUM increased to $1.0 trillion, up 6% year-over-year, with $30.1 billion of inflows in the quarter and $158.4 billion over the LTM.
§ Fee-Earning AUM of $731.1 billion was up 7% year-over-year, with $18.0 billion of inflows in the quarter and $132.4 billion over the LTM.
--- ---
§ Perpetual Capital AUM reached $384.3 billion, up 8% year-over-year.
--- ---
– Fee-Earning Perpetual Capital AUM increased to $327.8 billion, representing 45% of Fee-Earning AUM.
--- ---
Total AUM<br><br><br>($ in billions) Fee-Earning AUM<br><br><br>($ in billions) Perpetual Capital AUM<br><br><br>($ in billions)
--- --- ---

LOGO

Blackstone 6

ADDITIONAL CAPITAL DETAIL

§ Invested Performance Eligible AUM reached $503.8 billion at quarter end.
§ Undrawn capital (“Total Dry Powder”) available for investment of $194.5 billion.
--- ---
Invested Performance Eligible AUM<br><br><br>($ in billions) Total Dry Powder<br><br><br>($ in billions)
--- ---

LOGO

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

§ 2Q’23 Total Segment Distributable Earnings were $1.3 billion.
§ LTM Total Segment Distributable Earnings were $5.8 billion.
--- ---
Segment Distributable Earnings  <br>( in millions)
---
2Q’23 total: 1,346

All values are in US Dollars.

Blackstone 9

REAL ESTATE

§ Total AUM: Increased 4% to $333.2 billion with inflows of $7.9 billion in the quarter and $49.2 billion over the LTM.
– Inflows in the quarter included $1.3 billion for the seventh European opportunistic fund, $791 million of capital raised in BREIT, $2.2 billion in BREDS insurance SMAs, and<br>$203 million in the fifth real estate debt strategies fund, bringing total capital commitments to $3.7 billion for the fund.
--- ---
– July 1 subscriptions of $246 million in BREIT not yet included in Total AUM.
--- ---
§ Capital Deployed: $4.1 billion in the quarter and $21.0 billion over the LTM.
--- ---
– Deployment in the quarter included the privatization of Industrials REIT, which owns a 7.1 million square foot portfolio of U.K. last mile logistics properties.
--- ---
§ Realizations: $5.5 billion in the quarter and $17.6 billion over the LTM.
--- ---
– Asset sales in the quarter included the JW Marriott San Antonio Hill Country Resort & Spa to Ryman Hospitality Properties, Inc. for $800 million and a portfolio of U.S. logistics to Prologis<br>for $3.1 billion.
--- ---
§ Appreciation: Opportunistic funds were flat in the quarter and declined (3.0)% over the LTM; Core+ funds appreciated 1.7% in the quarter and 0.9% over the LTM.
--- ---
% Change % Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23 YTD vs. 2Q’22 YTD
Management Fees, Net $ 658,036 $ 728,736 11% $ 1,277,747 $ 1,444,227 13%
Fee Related Performance Revenues 265,507 131,299 (51)% 757,024 152,047 (80)%
Fee Related Compensation (273,893 ) (199,006 ) (27)% (618,735 ) (336,616 ) (46)%
Other Operating Expenses (88,329 ) (71,949 ) (19)% (154,332 ) (146,130 ) (5)%
Fee Related Earnings $ 561,321 **** $ 589,080 **** 5% $ 1,261,704 **** $ 1,113,528 **** (12)%
Realized Performance Revenues 1,997,720 119,721 (94)% 2,800,636 130,817 (95)%
Realized Performance Compensation (831,402 ) (69,593 ) (92)% (1,121,433 ) (72,758 ) (94)%
Realized Principal Investment Income (Loss) 29,116 (70 ) n/m 83,091 2,154 (97)%
Net Realizations **** 1,195,434 **** **** 50,058 **** (96)% **** 1,762,294 **** **** 60,213 **** (97)%
Segment Distributable Earnings $ 1,756,755 **** $ 639,138 **** (64)% $ 3,023,998 **** $ 1,173,741 **** (61)%
Segment Revenues $ 2,950,379 $ 979,686 (67)% $ 4,918,498 $ 1,729,245 (65)%
Total AUM $ 320,038,428 $ 333,241,514 4% $ 320,038,428 $ 333,241,514 4%
Fee-Earning<br>AUM $ 252,125,870 $ 287,556,241 14% $ 252,125,870 $ 287,556,241 14%
Blackstone 10
---

PRIVATE EQUITY

§ Total AUM: Increased 7% to $295.3 billion with inflows of $8.5 billion in the quarter and $36.3 billion over the LTM.
– Inflows in the quarter included $1.1 billion for the ninth flagship private equity fund, $1.6 billion for Tactical Opportunities vehicles, and $713 million in Blackstone Infrastructure Partners.
--- ---
§ Capital Deployed: $11.0 billion in the quarter and $28.5 billion over the LTM, including in Copeland, Cvent, and Invenergy during the quarter.
--- ---
– Committed an additional $3.1 billion that was not yet deployed in the quarter.
--- ---
§ Realizations: $4.1 billion in the quarter and $23.6 billion over the LTM; realizations in the quarter included proceeds from public share sales of Refinitiv and Gates.
--- ---
§ Appreciation: Corporate Private Equity appreciated 3.5% in the quarter and 9.7% over the LTM.
--- ---
– Tactical Opportunities appreciated 1.8% in the quarter and 2.7% over the LTM; Secondaries appreciated 2.3% in the quarter and declined (1.8)% over the LTM.
--- ---
% Change % Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23 YTD vs. 2Q’22 YTD
Management and Advisory Fees, Net $ 437,853 $ 491,071 12% $ 844,841 $ 956,155 13%
Fee Related Performance Revenues - - n/a (648 ) - (100)%
Fee Related Compensation (152,622 ) (155,680 ) 2% (303,672 ) (317,306 ) 4%
Other Operating Expenses (83,233 ) (74,403 ) (11)% (150,977 ) (151,166 ) 0%
Fee Related Earnings $ 201,998 **** $ 260,988 **** 29% $ 389,544 **** $ 487,683 **** 25%
Realized Performance Revenues 122,884 147,176 20% 573,122 646,498 13%
Realized Performance Compensation (57,380 ) (62,641 ) 9% (264,083 ) (295,575 ) 12%
Realized Principal Investment Income            <br> 8,904 3,967 (55)% 74,342 36,856 (50)%
Net Realizations **** 74,408 **** **** 88,502 **** 19% **** 383,381 **** **** 387,779 **** 1%
Segment Distributable Earnings $ 276,406 **** $ 349,490 **** 26% $ 772,925 **** $ 875,462 **** 13%
Segment Revenues $ 569,641 $ 642,214 13% $ 1,491,657 $ 1,639,509 10%
Total AUM $ 275,886,414 $ 295,293,356 7% $ 275,886,414 $ 295,293,356 7%
Fee-Earning<br>AUM $ 163,521,507 $ 165,642,235 1% $ 163,521,507 $ 165,642,235 1%
Blackstone 11
---

CREDIT & INSURANCE

§ Total AUM: Increased 11% to $294.6 billion with inflows of $12.3 billion in the quarter and $64.2 billion over the<br> LTM.
– Inflows in the quarter included $5.7 billion for the global direct lending strategy with $1.8 billion of equity raised<br> for BCRED.
--- ---
– July 1 subscriptions of $867 million for BCRED not yet included in Total AUM.
--- ---
– Raised $1.3 billion for the private credit green energy strategy in the quarter, bringing total capital raised to<br> $6.9 billion.
--- ---
– Closed 1 U.S. CLO for $599 million.
--- ---
§ Capital Deployed: $3.8 billion in the quarter and $29.2 billion over the LTM.
--- ---
§ Realizations: $5.6 billion in the quarter and $19.6 billion over the LTM.
--- ---
§ Returns: Private Credit gross return of 3.3% (2.5% net) and Liquid Credit gross return of 2.8% (2.7% net) in the<br> quarter.
--- ---
% Change % Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23 YTD vs. 2Q’22 YTD
Management Fees, Net $ 312,541 $ 349,254 12% $ 612,764 $ 683,383 12%
Fee Related Performance Revenues 81,086 135,439 67% 148,282 262,935 77%
Fee Related Compensation (137,035 ) (168,234 ) 23% (264,379 ) (332,233 ) 26%
Other Operating Expenses (63,882 ) (81,375 ) 27% (121,049 ) (155,613 ) 29%
Fee Related Earnings $ 192,710 $ 235,084 22% $ 375,618 $ 458,472 22%
Realized Performance Revenues 78,973 42,344 (46)% 109,716 167,525 53%
Realized Performance Compensation (36,109 ) (17,571 ) (51)% (49,495 ) (74,343 ) 50%
Realized Principal Investment Income (Loss) 7,019 (19,356 ) n/m 29,800 (13,347 ) n/m
Net Realizations **** 49,883 **** 5,417 (89)% **** 90,021 **** 79,835 (11)%
Segment Distributable Earnings $ 242,593 $ 240,501 (1)% $ 465,639 $ 538,307 16%
Segment Revenues $ 479,619 $ 507,681 6% $ 900,562 $ 1,100,496 22%
Total AUM $ 264,829,491 $ 294,580,360 11% $ 264,829,491 $ 294,580,360 11%
Fee-Earning<br>AUM $ 195,548,963 $ 208,367,109 7% $ 195,548,963 $ 208,367,109 7%
Blackstone 12
---

HEDGE FUND SOLUTIONS

§ Total AUM: $78.2 billion with inflows of $1.4 billion in the quarter and $8.6 billion over the LTM.
– July 1 subscriptions of $623 million not yet included in Total AUM.
--- ---
§ Realizations: $2.0 billion in the quarter and $3.5 billion over the LTM, including realizations in the GP Stakes and<br> Special Situations portfolios.
--- ---
§ Returns: BPS Composite gross return of 1.9% in the quarter (1.8% net), outperforming the HFRX Global Hedge Fund<br> Index, which was 0.6%.
--- ---
– Gross returns of 6.2% over the LTM (5.3% net), with significantly less volatility than the broader markets,<br> compared to 1.3% return for the HFRX Global Hedge Fund Index.
--- ---
% Change % Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23 YTD vs. 2Q’22 YTD
Management Fees, Net $ 148,487 $ 134,125 (10)% $ 294,933 $ 271,808 (8)%
Fee Related Compensation (57,863 ) (45,888 ) (21)% (105,098 ) (91,624 ) (13)%
Other Operating Expenses (26,066 ) (29,639 ) 14% (49,250 ) (56,105 ) 14%
Fee Related Earnings $ 64,558 $ 58,598 (9)% $ 140,585 $ 124,079 (12)%
Realized Performance Revenues 7,197 79,182 n/m 36,110 85,109 136%
Realized Performance Compensation (2,083 ) (28,565 ) n/m (11,083 ) (31,718 ) 186%
Realized Principal Investment Income (Loss) (1,530 ) 7,998 n/m 13,371 10,567 (21)%
Net Realizations **** 3,584 **** 58,615 n/m **** 38,398 **** 63,958 67%
Segment Distributable Earnings $ 68,142 $ 117,213 72% $ 178,983 $ 188,037 5%
Segment Revenues $ 154,154 $ 221,305 44% $ 344,414 $ 367,484 7%
Total AUM $ 80,051,408 $ 78,240,729 (2)% $ 80,051,408 $ 78,240,729 (2)%
Fee-Earning<br>AUM $ 72,629,621 $ 69,579,480 (4)% $ 72,629,621 $ 69,579,480 (4)%
Blackstone 13
---

Supplemental Details

Blackstone 14

TOTAL SEGMENTS

($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 YTD 2Q’23 YTD
Base Management Fees $ 1,496,876 $ 1,528,561 $ 1,580,452 $ 1,619,547 $ 1,620,609 $ 2,936,025 $ 3,240,156
Transaction, Advisory and Other Fees, Net 85,092 89,865 71,151 45,710 92,735 149,101 138,445
Management Fee Offsets (25,051 ) (6,856 ) (10,512 ) (12,870 ) (10,158 ) (54,841 ) (23,028 )
Total Management and Advisory Fees, Net 1,556,917 1,611,570 1,641,091 1,652,387 1,703,186 3,030,285 3,355,573
Fee Related Performance Revenues 346,593 372,131 172,708 148,244 266,738 904,658 414,982
Fee Related Compensation (621,413 ) (558,268 ) (480,623 ) (508,971 ) (568,808 ) (1,291,884 ) (1,077,779 )
Other Operating Expenses (261,510 ) (246,134 ) (267,281 ) (251,648 ) (257,366 ) (475,608 ) (509,014 )
Fee Related Earnings $ 1,020,587 **** $ 1,179,299 **** $ 1,065,895 **** $ 1,040,012 **** $ 1,143,750 **** $ 2,167,451 **** $ 2,183,762 ****
Realized Performance Revenues 2,206,774 469,009 472,745 641,526 388,423 3,519,584 1,029,949
Realized Performance Compensation (926,974 ) (206,224 ) (161,779 ) (296,024 ) (178,370 ) (1,446,094 ) (474,394 )
Realized Principal Investment Income (Loss) 43,509 139,765 55,887 43,691 (7,461 ) 200,604 36,230
Total Net Realizations $ 1,323,309 **** $ 402,550 **** $ 366,853 **** $ 389,193 **** $ 202,592 **** $ 2,274,094 **** $ 591,785 ****
Total Segment Distributable Earnings $ 2,343,896 **** $ 1,581,849 **** $ 1,432,748 **** $ 1,429,205 **** $ 1,346,342 **** $ 4,441,545 **** $ 2,775,547 ****
Distributable Earnings $ 1,985,825 **** $ 1,374,869 **** $ 1,334,206 **** $ 1,249,092 **** $ 1,212,072 **** $ 3,923,705 **** $ 2,461,164 ****
Additional Metrics:
Total Segment Revenues $ 4,153,793 $ 2,592,475 $ 2,342,431 $ 2,485,848 $ 2,350,886 $ 7,655,131 $ 4,836,734
Total Assets Under Management $ 940,805,741 $ 950,946,514 $ 974,673,077 $ 991,293,596 $ 1,001,355,959 $ 940,805,741 $ 1,001,355,959
Fee-Earning Assets Under<br>Management $ 683,825,961 $ 705,865,351 $ 718,386,888 $ 731,973,409 $ 731,145,065 $ 683,825,961 $ 731,145,065
Blackstone 15
---

ASSETS UNDER MANAGEMENT – ROLLFORWARD

Total AUM Rollforward

($ in millions)

Three Months Ended June 30, 2023 Twelve Months Ended June 30, 2023
Real<br><br><br><br><br><br>Estate Private<br><br><br><br> <br>Equity Credit &<br><br><br><br><br><br>Insurance Hedge Fund<br><br><br><br> <br>Solutions Total Real<br><br><br><br><br><br>Estate Private<br><br><br><br> <br>Equity Credit &<br><br><br><br> <br>Insurance Hedge Fund<br><br><br><br> <br>Solutions Total
Beginning Balance $ 331,797 $ 287,048 291,269 81,179 $ 991,294 $ 320,038 $ 275,886 264,829 80,051 $ 940,806
Inflows 7,891 8,539 12,303 1,382 30,115 49,215 36,328 64,215 8,623 158,381
Outflows (3,898 ) (525 ) (5,613 (2,859 (12,895 ) (15,366 ) (3,170 ) (23,142 (9,733 (51,411 )
Net Flows 3,993 8,014 6,690 (1,477 17,220 33,848 33,158 41,073 (1,110 106,969
Realizations (5,543 ) (4,075 ) (5,601 (1,959 (17,178 ) (17,643 ) (23,627 ) (19,591 (3,492 (64,352 )
Market Activity 2,994 4,306 2,222 498 10,021 (3,002 ) 9,875 8,269 2,791 17,933
Ending Balance $ 333,242 $ 295,293 294,580 78,241 $ 1,001,356 $ 333,242 $ 295,293 294,580 78,241 $ 1,001,356
% Change 0% 3% 1% (4)% 1% 4% 7% 11% (2)% 6%

All values are in US Dollars.

Fee-Earning AUM Rollforward

($ in millions)

Three Months Ended June 30, 2023 Twelve Months Ended June 30, 2023
Real<br><br><br><br><br><br>Estate Private<br><br><br><br> <br>Equity Credit &<br><br><br><br><br><br>Insurance Hedge Fund<br><br><br><br> <br>Solutions Total Real<br><br><br><br><br><br>Estate Private<br><br><br><br> <br>Equity Credit &<br><br><br><br> <br>Insurance Hedge Fund<br><br><br><br> <br>Solutions Total
Beginning Balance $ 287,497 $ 165,344 206,623 72,510 $ 731,973 $ 252,126 $ 163,522 195,549 72,630 $ 683,826
Inflows 7,115 1,386 8,359 1,130 17,990 73,893 12,094 38,863 7,584 132,434
Outflows (3,832 ) (121 ) (4,238 (2,812 (11,004 ) (19,928 ) (3,149 ) (20,731 (10,106 (53,915 )
Net Flows 3,282 1,265 4,121 (1,683 6,986 53,965 8,945 18,132 (2,522 78,519
Realizations (5,458 ) (1,593 ) (3,496 (1,818 (12,366 ) (18,409 ) (7,996 ) (10,112 (3,307 (39,824 )
Market Activity 2,235 627 1,119 571 4,551 (125 ) 1,172 4,798 2,779 8,625
Ending Balance $ 287,556 $ 165,642 208,367 69,579 $ 731,145 $ 287,556 $ 165,642 208,367 69,579 $ 731,145
% Change 0% 0% 1% (4)% (0)% 14% 1% 7% (4)% 7%

All values are in US Dollars.

Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment allocations and<br><br><br>acquisitions. Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments).<br>Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors<br>from CLOs. Market Activity includes<br>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. Blackstone 16

DECONSOLIDATED BALANCE SHEET HIGHLIGHTS

§ At June 30, 2023, Blackstone had $8.3 billion in total cash, cash equivalents, corporate treasury, and other
investments and $17.1 billion of cash and net investments, or $14.02 per share.
---
§ Blackstone has a $4.1 billion undrawn credit revolver and maintains A+/A+ ratings.
--- ---
($ in millions) 2Q’23
--- --- ---
Cash and Cash Equivalents $ 3,280
Corporate Treasury and <br>Other Investments 4,988
GP/Fund Investments 2,361
Net Accrued Performance <br>Revenues 6,469
Cash and Net Investments $ 17,099
Outstanding Debt (at par) 10,722

Cash and Net Investments

(per share)

LOGO

A+ / A+

rated by S&P and Fitch

$4.1B

credit revolver with

June 2027 maturity

$8.3B

total cash, corporate

treasury and other

Balance Sheet Highlights exclude the consolidated Blackstone Funds. Other Investments was $3.7 billion as of June 30, 2023,<br>which was comprised of $3.4 billion<br> <br>of liquid investments and $383 million of illiquid investments. See notes on pages 31 and 34<br>for additional details on non-GAAP balance sheet measures. Blackstone 17
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL
---
($ in millions, except per share data) 2Q’22 1Q’23 2Q’23 2Q’23
--- --- --- --- --- --- --- --- ---
Per Share
Real Estate
BREP IV $ 7 $ 6 $ 6 $ 0.01
BREP V 3 4 4 0.00
BREP VI 32 19 17 0.01
BREP VII 164 86 60 0.05
BREP VIII 841 717 707 0.58
BREP IX 1,015 1,015 987 0.81
BREP Europe IV 83 43 36 0.03
BREP Europe V 120 28 19 0.02
BREP Europe VI 80 68 90 0.07
BREP Asia I 114 104 89 0.07
BREP Asia II 153 37 - -
BPP 755 518 512 0.42
BREDS 15 6 12 0.01
BTAS 111 22 17 0.01
Real Estate $ 3,491 $ 2,672 $ 2,556 $ 2.10
Private Equity
BCP IV 8 6 6 $ 0.01
BCP V 3 31 41 0.03
BCP VI 407 407 411 0.34
BCP VII 975 854 900 0.74
BCP VIII 235 276 297 0.24
BCP Asia I 195 95 94 0.08
BEP I 27 26 29 0.02
BEP II - 2 73 0.06
BEP III 76 158 202 0.17
BCEP 224 213 205 0.17
Tactical Opportunities 311 223 236 0.19
Secondaries 629 511 527 0.43
Infrastructure 67 158 189 0.15
Life Sciences 24 29 24 0.02
BTAS/Other 228 172 169 0.14
Private Equity $ 3,408 $ 3,161 $ 3,402 $ 2.79
Credit & Insurance $ 271 $ 239 $ 247 $ 0.20
Hedge Fund Solutions $ 305 $ 300 $ 265 $ 0.22
Net Accrued Performance Revenues $ 7,476 $ 6,372 $ 6,469 $ 5.31

2Q’23 QoQ Rollforward

($ in millions)

Net Net
Performance Realized
1Q’23 Revenues Distributions 2Q’23
Real Estate $ 2,672 $ 30 $ (146 ) $ 2,556
Private Equity 3,161 325 (85 ) 3,402
Credit &<br>Insurance 239 112 (104 ) 247
HFS 300 15 (51 ) 265
Total $ 6,372 $ 482 $ (385 ) $ 6,469
QoQ Change 2%

2Q’23 LTM Rollforward

($ in millions)

Net Net
Performance Realized
2Q’22 Revenues Distributions 2Q’23
Real Estate $ 3,491 $ (425 ) $ (510 ) $ 2,556
Private Equity 3,408 682 (689 ) 3,402
Credit &<br>Insurance 271 382 (406 ) 247
HFS 305 87 (128 ) 265
Total $ 7,476 $ 726 **** $ (1,732 ) $ 6,469
YoY Change (13)%
Net Accrued Performance Revenues (“NAPR”) are presented net of performance compensation and excludes Performance Revenues realized but<br>not yet distributed<br> <br>as of the reporting date and clawback amounts, if any, which are disclosed in the 10-K/Q. Real Estate and Private Equity include<br>co-investments, as applicable. Per<br> <br>Share calculations are based on end of period DE Shares Outstanding (see page 24, Share Summary). Blackstone 18
--- ---

INVESTMENT RECORDS AS OF JUNE 30, 2023^(a)^

($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Realized Total
Real Estate
Pre-BREP $ 140,714 $ - $ - n/a $ 345,190 2.5x $ 345,190 2.5x 33% 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 - 19,634 n/a 4,641,310 1.7x 4,660,944 1.7x 12% 12%
BREP V (Dec 2005 / Feb 2007) 5,539,418 - 5,571 n/a 13,463,448 2.3x 13,469,019 2.3x 11% 11%
BREP VI (Feb 2007 / Aug 2011) 11,060,444 550,934 176,574 2.1x 27,544,722 2.5x 27,721,296 2.5x 13% 13%
BREP VII (Aug 2011 / Apr 2015) 13,501,324 1,440,313 2,565,307 0.7x 28,208,993 2.4x 30,774,300 2.0x 22% 14%
BREP VIII (Apr 2015 / Jun 2019) 16,596,674 2,221,028 13,808,278 1.5x 21,623,193 2.5x 35,431,471 2.0x 28% 16%
BREP IX (Jun 2019 / Aug 2022) 21,320,164 3,875,365 26,541,115 1.5x 8,433,953 2.2x 34,975,068 1.6x 61% 24%
*BREP X (Aug 2022 / Feb 2028) 30,498,731 28,904,123 1,693,146 1.1x - n/a 1,693,146 1.1x n/a n/m
Total Global BREP $ 103,957,918 $ 36,991,763 $ 44,809,625 1.4x $ 111,450,537 2.4x $ 156,260,162 2.0x 18% 16%
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) 3,205,420 394,520 196,294 0.4x 5,853,092 2.4x 6,049,386 2.0x 18% 13%
BREP Europe IV (Sep 2013 / Dec 2016) 6,674,949 1,288,693 1,356,843 1.0x 9,936,953 1.9x 11,293,796 1.7x 19% 13%
BREP Europe V (Dec 2016 / Oct 2019) 7,968,437 1,303,840 4,981,282 1.0x 6,694,372 3.9x 11,675,654 1.7x 42% 11%
*BREP Europe VI (Oct 2019 / Apr 2025) 10,051,420 4,035,328 7,158,889 1.2x 3,424,218 2.6x 10,583,107 1.4x 72% 19%
Total BREP Europe € 30,354,146 € 7,022,381 € 13,693,308 1.1x € 29,864,837 2.3x € 43,558,145 1.7x 17% 12%
BREP Asia I (Jun 2013 / Dec 2017) $ 4,262,075 $ 897,915 $ 1,751,714 1.4x $ 6,801,153 2.0x $ 8,552,867 1.8x 17% 12%
BREP Asia II (Dec 2017 / Mar 2022) 7,347,370 1,470,961 6,708,407 1.2x 1,594,864 1.9x 8,303,271 1.3x 32% 7%
*BREP Asia III (Mar 2022 / Sep 2027) 8,221,870 7,194,247 999,298 1.0x - n/a 999,298 1.0x n/a (20)%
Total BREP Asia $ 19,831,315 $ 9,563,123 $ 9,459,419 1.2x $ 8,396,017 2.0x $ 17,855,436 1.5x 18% 10%
BREP Co-Investment (f) 7,298,869 32,106 1,031,360 2.2x 15,118,484 2.2x 16,149,844 2.2x 16% 16%
Total BREP $ 167,230,303 $ 54,247,707 $ 70,825,555 1.3x $ 171,475,110 2.3x $ 242,300,665 1.9x 17% 15%
*BREDS High-Yield (Various) (g) **** 23,678,637 **** 7,739,343 **** 6,032,576 1.0x **** 17,805,349 1.3x **** 23,837,925 1.2x 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 16,329 n/a 2,981,999 1.4x 2,998,328 1.4x 6% 6%
BCP IV (Nov 2002 / Dec 2005) 6,773,182 195,824 28,708 n/a 21,694,051 2.9x 21,722,759 2.9x 36% 36%
BCP V (Dec 2005 / Jan 2011) 21,009,112 1,035,259 172,185 11.7x 38,675,419 1.9x 38,847,604 1.9x 8% 8%
BCP VI (Jan 2011 / May 2016) 15,195,539 1,341,322 6,011,206 1.9x 26,696,258 2.3x 32,707,464 2.2x 15% 13%
BCP VII (May 2016 / Feb 2020) 18,857,492 1,694,290 20,243,357 1.6x 14,110,945 2.6x 34,354,302 1.9x 33% 14%
*BCP VIII (Feb 2020 / Feb 2026) 25,651,776 11,257,684 18,946,828 1.3x 1,179,311 2.4x 20,126,139 1.3x n/m 13%
BCP IX (TBD) 16,623,978 16,623,978 - n/a - n/a - n/a n/a n/a
Energy I (Aug 2011 / Feb 2015) 2,441,558 174,492 516,882 1.6x 4,166,580 2.0x 4,683,462 2.0x 12% 12%
Energy II (Feb 2015 / Feb 2020) 4,628,506 867,080 4,391,172 1.7x 3,153,521 1.5x 7,544,693 1.6x 9% 8%
*Energy III (Feb 2020 / Feb 2026) 4,367,658 2,312,829 4,032,943 2.1x 1,076,572 2.3x 5,109,515 2.2x 63% 43%
Energy IV (TBD) 2,054,592 2,054,592 - n/a - n/a - n/a n/a n/a
BCP Asia I (Dec 2017 / Sep 2021) 2,438,028 418,459 2,785,974 1.5x 1,787,587 4.9x 4,573,561 2.1x 96% 27%
*BCP Asia II (Sep 2021 / Sep 2027) 6,656,115 5,853,941 901,216 1.4x 25 n/a 901,241 1.4x n/a n/m
Core Private Equity I (Jan 2017 / Mar 2021) (h) 4,761,605 1,161,678 7,265,690 1.9x 2,423,556 4.4x 9,689,246 2.2x 56% 19%
*Core Private Equity II (Mar 2021 / Mar 2026) (h) 8,205,237 5,752,381 2,861,516 1.2x 59,581 n/a 2,921,097 1.2x n/a 9%
Total Corporate Private Equity $ 147,989,311 $ 50,768,384 $ 68,174,006 1.6x $ 132,244,477 2.2x $ 200,418,483 1.9x 16% 15%
The returns presented herein<br>represent those of the applicable Blackstone Funds and not those of Blackstone Inc. n/m represents “not meaningful” generally due to the limited time<br><br><br>since initial investment. n/a represents “not applicable”. Notes on pages 21-22. BREP – Blackstone Real Estate Partners, BREDS – Blackstone<br>Real Estate Debt Strategies, BCP –<br> <br>Blackstone Capital Partners, BCOM – Blackstone Communications.<br><br><br>* Represents funds that are currently in their investment period. Blackstone 19
--- ---

INVESTMENT RECORDS AS OF JUNE 30, 2023^(a)^ –(CONT’D)

($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Realized Total
Private Equity (continued)
Tactical Opportunities
*Tactical Opportunities (Various) $ 29,677,795 $ 15,841,153 $ 11,013,035 1.2x $ 22,324,457 1.9x $ 33,337,492 1.6x 16% 11%
*Tactical Opportunities Co-Investment<br>and Other (Various) 9,880,601 1,362,882 4,623,047 1.7x 8,764,203 1.6x 13,387,250 1.6x 18% 17%
Total Tactical Opportunities $ 39,558,396 $ 17,204,035 $ 15,636,082 1.3x $ 31,088,660 1.8x $ 46,724,742 1.6x 17% 12%
Growth
*BXG I (Jul 2020 / Jul 2025) 5,056,267 1,204,757 3,597,195 1.0x 406,582 3.2x 4,003,777 1.1x n/m (2)%
BXG II (TBD) 4,057,253 4,057,253 - n/a - n/a - n/a n/a n/a
Total Growth $ 9,113,520 $ 5,262,010 $ 3,597,195 1.0x $ 406,582 3.2x $ 4,003,777 1.1x n/m (2)%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various)<br>(i) 11,035,527 628,775 342,849 n/a 16,541,714 n/a 16,884,563 1.7x n/a 13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i) 4,362,772 874,051 972,992 n/a 4,085,158 n/a 5,058,150 1.7x n/a 14%
Strategic Partners VII (May 2016 / Mar 2019) (i) 7,489,970 1,705,043 4,300,584 n/a 6,260,527 n/a 10,561,111 2.0x n/a 19%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i) 1,749,807 477,595 1,207,811 n/a 1,100,472 n/a 2,308,283 1.7x n/a 17%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i) 10,763,600 4,576,451 8,407,392 n/a 5,894,590 n/a 14,301,982 1.8x n/a 35%
*Strategic Partners Real Estate, SMA and Other (Various) (i) 6,061,738 1,974,271 2,023,763 n/a 2,009,060 n/a 4,032,823 1.7x n/a 17%
*Strategic Partners Infrastructure III (Jun 2020 / Jul 2024) (i) 3,250,100 1,310,498 1,365,189 n/a 239,153 n/a 1,604,342 1.5x n/a 40%
*Strategic Partners IX (Oct 2021 / Jan 2027) (i) 19,492,126 12,287,157 4,340,449 n/a 538,872 n/a 4,879,321 1.2x n/a 32%
*Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i) 2,045,211 1,013,668 659,731 n/a - n/a 659,731 1.2x n/a 7%
Total Strategic Partners (Secondaries) $ 66,250,851 $ 24,847,509 $ 23,620,760 n/a $ 36,669,546 n/a $ 60,290,306 1.7x n/a 15%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020) 910,000 95,412 878,772 1.5x 299,296 2.0x 1,178,068 1.6x 24% 11%
*BXLS V (Jan 2020 / Jan 2025) 4,910,605 3,253,897 1,797,158 1.3x 96,352 1.1x 1,893,510 1.3x n/m 3%
Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011) $ 2,000,000 $ 97,114 $ - n/a $ 4,809,097 1.6x $ 4,809,097 1.6x n/a 17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016) 4,120,000 993,248 155,137 0.2x 6,588,424 1.6x 6,743,561 1.4x n/a 10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021) 6,639,133 905,741 2,549,757 1.0x 7,263,532 1.6x 9,813,289 1.4x n/a 10%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan<br>2026) 5,016,771 3,271,137 2,561,989 1.1x 499,780 1.7x 3,061,769 1.1x n/a 10%
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) 5,125,000 547,430 270,251 0.4x 5,311,039 1.2x 5,581,290 1.1x n/a 1%
Stressed / Distressed III (Dec 2017 / Dec 2022) 7,356,380 1,979,950 3,158,178 1.0x 3,208,190 1.4x 6,366,368 1.1x n/a 7%
Energy I (Nov 2015 / Nov 2018) 2,856,867 1,134,904 482,636 0.7x 3,001,007 1.8x 3,483,643 1.5x n/a 10%
Energy II (Feb 2019 / Jun 2023) 3,616,081 1,599,068 2,085,432 1.1x 1,387,127 1.7x 3,472,559 1.2x n/a 19%
*Green Energy III (May 2023 / May 2028) 5,940,534 5,895,199 46,650 1.0x - n/a 46,650 1.0x n/a n/m
European Senior Debt I (Feb 2015 / Feb 2019) € 1,964,689 € 282,061 € 632,260 0.7x € 2,561,141 1.4x € 3,193,401 1.2x n/a 2%
European Senior Debt II (Jun 2019 / Jun 2023) € 4,088,344 € 1,005,305 € 4,258,397 1.0x € 1,765,451 1.9x € 6,023,848 1.2x n/a 10%
Total Credit Drawdown Funds (j) $ 52,829,568 $ 17,828,307 $ 16,645,736 0.9x $ 42,850,566 1.5x $ 59,496,302 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<br>meaningful” generally due to the limited time<br> <br>since initial investment. n/a represents “not applicable”. Notes on pages 21-22. BXG –<br>Blackstone Growth. BXLS – Blackstone Life Sciences.<br> <br>* Represents funds that are currently in their investment period. Blackstone 20
--- ---

INVESTMENT RECORDS AS OF JUNE 30, 2023^(a)^ –(CONT’D)

Selected Perpetual CapitalStrategies^(k)^

($ in thousands, except where noted) Investment Total Total Net
Strategy (Inception Year) Strategy AUM Return (l)
Real Estate
BPP - Blackstone Property Partners Platform (2013) (m) Core+ Real Estate $ 71,011,944 9 %
BREIT - Blackstone Real Estate Income Trust (2017) (n) Core+ Real Estate 67,775,564 11 %
BREIT - Class I (o) Core+ Real Estate 12 %
BXMT - Blackstone Mortgage Trust (2013) (p) Real Estate Debt 6,170,531 6 %
Private Equity
BIP - Blackstone Infrastructure Partners (2019) (q) Infrastructure 29,117,203 14 %
Credit
BXSL - Blackstone Secured Lending Fund (2018) (r) U.S. Direct Lending 10,905,781 10 %
BCRED - Blackstone Private Credit Fund (2021) (s) U.S. Direct Lending 58,949,896 9 %
BCRED - Class I (t) U.S. Direct Lending 9 %
Hedge Fund Solutions
BSCH - Blackstone Strategic Capital Holdings (2014) (u) GP Stakes 9,093,463 11 %

Investment Records as of June 30, 2023—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<br> leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.<br>
--- ---
(c) Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and<br>Performance Revenues, divided by invested capital.
--- ---
(d) Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to<br>June 30, 2023 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<br>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<br>opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.
--- ---
(f) BREP Co-Investment represents<br>co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized<br>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<br>and longer hold period than traditional private equity.
--- ---
(i) Effective June 30, 2023, Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total<br>MOIC and Total Net IRRs are all reported on a three-month lag, reflect Strategic Partners’ fund financial performance as of the prior quarter and therefore do not include the impact of economic and market activities in the current quarter.<br>Previously, such metrics were calculated from results based on a three-month lag and only incorporated investor cash flow information from the current quarter, given that current quarter valuation information was not available. We believe the<br>updated presentation is more reflective of the Strategic Partners’ investor experience. Committed Capital and Available Capital are presented as of the current quarter. Realizations are treated as returns of capital until fully recovered and<br>therefore Unrealized and Realized MOICs and Realized Net IRRs are not applicable. Effective June 30, 2023, Strategic Partners I-V and Strategic Partners Real Estate, SMA and Other exclude investment vehicles where Blackstone does not earn fees,<br>which were previously included.
--- ---
(j) Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR<br>of the credit drawdown funds presented.
--- ---
(k) Represents the performance for select Perpetual Capital Strategies; strategies excluded consist primarily of<br>(1) investment strategies that have been investing for less than<br> one year, (2) perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does not earn fees.<br>
--- ---
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<br>since<br>initial investment. n/a represents “not applicable”. Notes continue on page 22. Blackstone 21
--- ---

INVESTMENT RECORDS AS OF JUNE 30, 2023^(a)^ –(CONT’D)

(l) Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, 2023 IRR on<br>total invested capital based on realized proceeds and<br> unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of investor cash flows. Initial<br> inception date of cash<br>flows occurred during the Inception Year.
(m) 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<br> vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of June 30, 2023, these vehicles<br>represented<br> $2.9 billion of Total AUM.
--- ---
(n) The BREIT Total Net Return reflects a per share blended return, assuming BREIT had a single share class,<br>reinvestment of all dividends received during the period, and no<br> 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<br><br>class. Total Net Return is presented on an annualized basis and is from January 1, 2017.
--- ---
(o) Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies<br>by share class. Class I Total Net Return assumes reinvestment of all<br> 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<br>an<br> annualized basis and is from January 1, 2017.
--- ---
(p) The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since inception,<br>May 22, 2013, assuming reinvestment of all dividends<br> received during the period.
--- ---
(q) Including co-investment vehicles, BIP Total AUM is $37.0 billion.<br>
--- ---
(r) The BXSL Total AUM and Total Net Return are presented as of March 31, 2023. BXSL Total Net Return reflects<br>the change in NAV per share, plus distributions per share<br> (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<br> presented<br>on an annualized basis and are from November 20, 2018.
--- ---
(s) The BCRED Total Net Return reflects a per share blended return, assuming BCRED had a single share class,<br>reinvestment of all dividends received during the period, and<br> 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<br> share<br>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<br> be borrowed under certain credit facilities. BCRED net asset value as of<br>June 30, 2023 was $23.8 billion.
--- ---
(t) Represents the Total Net Return for BCRED’s Class I shares, its largest share class. Performance varies<br>by share class. Class I Total Net Return assumes reinvestment of all<br> 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<br>an<br> annualized basis and is from January 7, 2021.
--- ---
(u) BSCH represents the aggregate Total AUM and Total Net Return of BSCH I and BSCH II funds that invest as part of<br>the GP Stakes strategy, which targets minority<br> investments in the general partners of private equity and other private-market alternative asset management firms globally. Including co-investment vehicles<br>that do not<br> pay fees, BSCH Total AUM is $10.0 billion.
--- ---
Blackstone 22
---

SHAREHOLDER DIVIDENDS

§ Generated $0.93 of Distributable Earnings per common share during the quarter, bringing the YTD amount to<br> $1.90 per common share.
§ Blackstone declared a quarterly dividend of $0.79 per common share to record holders as of July 31, 2023; payable<br> on August 7, 2023.
--- ---
% Change % Change
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands, except per share data) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 vs. 2Q’22 2Q’22 YTD 2Q’23 YTD vs. 2Q’22 YTD
Distributable Earnings $ 1,985,825 $ 1,374,869 $ 1,334,206 $ 1,249,092 $ 1,212,072 (39)% $ 3,923,705 $ 2,461,164 (37 )%
Add: Other Payables Attributable to<br>Common<br>Shareholders 298,570 145,137 67,528 131,300 129,187 (57)% 413,736 260,487 (37 )%
DE Before Certain Payables 2,284,395 1,520,006 1,401,734 1,380,392 1,341,259 (41)% 4,337,441 2,721,651 (37 )%
Percent to Common Shareholders 61% 61% 62% 62% 62% 61% 62%
DE Before Certain Payables Attributable to Common Shareholders 1,402,640 934,240 862,892 852,166 833,992 (41)% 2,657,343 1,686,158 (37 )%
Less: Other Payables Attributable to <br>Common<br>Shareholders (298,570 ) (145,137 ) (67,528 ) (131,300 ) (129,187 ) (57)% (413,736 ) (260,487 ) (37 )%
DE Attributable to Common Shareholders 1,104,070 789,103 795,364 720,866 704,805 (36)% 2,243,607 1,425,671 (36 )%
DE per Common Share $ 1.49 $ 1.06 $ 1.07 $ 0.97 $ 0.93 (38)% $ 3.04 $ 1.90 (38 )%
Less: Retained Capital per Common Share $ (0.22 ) $ (0.16 ) $ (0.16 ) $ (0.15 ) $ (0.14 ) (36)% $ (0.45 ) $ (0.29 ) (36 )%
Actual Dividend per Common Share $ 1.27 $ 0.90 $ 0.91 $ 0.82 $ 0.79 (38)% $ 2.59 $ 1.61 (38 )%
Record Date Jul 31, 2023
Payable Date Aug 7, 2023
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.<br>See additional notes<br>on page 35. Blackstone 23
--- ---

SHARE SUMMARY

§ Distributable Earnings Shares Outstanding as of quarter end of 1.219 billion shares.
– Repurchased 1.0 million common shares in the quarter and 4.0 million common shares over the LTM.
--- ---
– Available authorization remaining was $932 million at June 30, 2023.
--- ---
2Q’22 3Q’22 4Q’22 1Q’23 2Q’23
--- --- --- --- --- --- --- --- --- --- ---
Participating Common Shares 742,187,838 741,552,385 742,653,758 745,916,828 758,148,528
Participating Partnership Units 466,568,377 464,951,386 463,758,383 462,366,799 461,135,682
Distributable Earnings Shares Outstanding **** 1,208,756,215 **** 1,206,503,771 **** 1,206,412,141 **** 1,208,283,627 **** 1,219,284,210
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 SECOND QUARTER 2023 GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share data) (unaudited) 2Q’22 2Q’23 2Q’22 YTD 2Q’23 YTD 2Q’22 LTM 2Q’23 LTM
Revenues
Management and Advisory Fees, Net $ 1,561,187 $ 1,709,370 $ 3,037,123 $ 3,367,685 $ 5,817,466 $ 6,633,877
Incentive Fees 99,598 153,077 204,087 295,953 388,747 616,993
Investment Income (Loss)
Performance Allocations
Realized 2,453,769 502,084 4,220,155 1,148,978 8,530,620 2,310,463
Unrealized (3,467,668 ) 114,395 (2,174,618 ) (644,817 ) 1,338,961 (1,905,255 )
Principal Investments
Realized 265,161 54,835 550,265 162,893 1,046,989 462,955
Unrealized (500,490 ) 164,089 (426,529 ) (327,328 ) 61,522 (1,464,648 )
Total Investment Income (Loss) (1,249,228 ) 835,403 2,169,273 339,726 10,978,092 (596,485 )
Interest and Dividend Revenue 62,075 148,505 116,560 238,990 214,774 394,042
Other 155,588 (31,664 ) 228,457 (45,818 ) 343,343 (89,718 )
Total Revenues $ 629,220 **** $ 2,814,691 **** $ 5,755,500 **** $ 4,196,536 **** $ 17,742,422 **** $ 6,958,709 ****
Expenses
Compensation and Benefits
Compensation 686,012 737,017 1,342,517 1,453,302 2,454,748 2,680,565
Incentive Fee Compensation 45,363 64,227 86,382 127,508 156,738 249,124
Performance Allocations Compensation
Realized 1,035,916 205,196 1,753,517 501,990 3,505,060 973,737
Unrealized (1,386,543 ) 54,155 (914,259 ) (259,094 ) 663,601 (815,423 )
Total Compensation and Benefits 380,748 1,060,595 2,268,157 1,823,706 6,780,147 3,088,003
General, Administrative and Other 289,288 275,034 529,962 548,428 1,057,630 1,111,137
Interest Expense 69,642 108,096 136,389 212,537 245,352 393,373
Fund Expenses 4,435 31,585 6,627 79,984 10,846 104,032
Total Expenses $ 744,113 **** $ 1,475,310 **** $ 2,941,135 **** $ 2,664,655 **** $ 8,093,975 **** $ 4,696,545 ****
Other Income (Loss)
Change in Tax Receivable Agreement Liability (13 ) 7,095 748 1,887 (4,529 ) 23,422
Net Gains (Losses) from Fund Investment Activities (104,326 ) 80,500 (53,450 ) 151,564 160,705 99,872
Income Before Provision (Benefit) forTaxes $ (219,232 ) $ 1,426,976 **** $ 2,761,663 **** $ 1,685,332 **** $ 9,804,623 **** $ 2,385,458 ****
Provision for Taxes 36,514 223,269 519,795 270,944 1,416,393 224,029
Net Income (Loss) $ (255,746 ) $ 1,203,707 **** $ 2,241,868 **** $ 1,414,388 **** $ 8,388,230 **** $ 2,161,429 ****
Net Income (Loss) Attributable to Redeemable Non-Controlling<br>Interests in Consolidated Entities 25,875 17,688 30,927 10,988 35,401 (162,829 )
Net Income (Loss) Attributable to Non-Controlling<br>Interests in Consolidated Entities (216,707 ) 89,436 (332 ) 164,305 806,608 272,403
Net Income (Loss) Attributable to<br>Non-Controlling<br>Interests in Blackstone Holdings (35,521 ) 495,309 1,023,792 552,009 3,558,367 804,619
Net Income (Loss) Attributable to Blackstone Inc.(‘‘BX’’) $ (29,393 ) $ 601,274 **** $ 1,187,481 **** $ 687,086 **** $ 3,987,854 **** $ 1,247,236 ****
Net Income (Loss) Per Share of Common Stock, Basic $ (0.04 ) $ 0.79 **** $ 1.61 **** $ 0.91 **** $ 5.45 **** $ 1.67 ****
Net Income (Loss) Per Share of Common Stock,Diluted $ (0.04 ) $ 0.79 **** $ 1.61 **** $ 0.91 **** $ 5.45 **** $ 1.67 ****
Blackstone 26
---

RECONCILIATION OF GAAP TO NON-GAAP MEASURES

QTD YTD LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
Net Income (Loss) Attributable to BlackstoneInc. $ (29,393 ) $ 2,296 **** $ 557,854 **** $ 85,812 **** $ 601,274 **** $ 1,187,481 **** $ 687,086 **** $ 3,987,854 **** $ 1,247,236 ****
Net Income (Loss) Attributable to <br>Non-Controlling<br>Interests in Blackstone Holdings (35,521 ) 37,724 214,886 56,700 495,309 1,023,792 552,009 3,558,367 804,619
Net Income (Loss) Attributable to Non-Controlling<br>Interests in Consolidated Entities (216,707 ) (62,093 ) 170,191 74,869 89,436 (332 ) 164,305 806,608 272,403
Net Income (Loss) Attributable to<br>Redeemable <br>Non-Controlling Interests in Consolidated Entities 25,875 25,773 (199,590 ) (6,700 ) 17,688 30,927 10,988 35,401 (162,829 )
Net Income (Loss) $ (255,746 ) $ 3,700 **** $ 743,341 **** $ 210,681 **** $ 1,203,707 **** $ 2,241,868 **** $ 1,414,388 **** $ 8,388,230 **** $ 2,161,429 ****
Provision (Benefit) for<br>Taxes 36,514 94,231 (141,146 ) 47,675 223,269 519,795 270,944 1,416,393 224,029
Income (Loss) Before Provision (Benefit) forTaxes $ (219,232 ) $ 97,931 **** $ 602,195 **** $ 258,356 **** $ 1,426,976 **** $ 2,761,663 **** $ 1,685,332 **** $ 9,804,623 **** $ 2,385,458 ****
Transaction-Related Charges<br>(a) 25,141 9,247 (2,588 ) 8,621 2,228 50,474 10,849 131,091 17,508
Amortization of Intangibles (b) 17,044 13,238 13,155 11,341 7,412 34,088 18,753 68,176 45,146
Impact of Consolidation (c) 190,832 36,320 29,399 (68,169 ) (107,124 ) (30,595 ) (175,293 ) (842,009 ) (109,574 )
Unrealized Performance Revenues (d) 3,467,668 771,637 490,723 759,316 (114,379 ) 2,174,618 644,937 (1,338,961 ) 1,907,297
Unrealized Performance Allocations<br>Compensation (e) (1,386,543 ) (359,590 ) (196,739 ) (313,249 ) 54,155 (914,259 ) (259,094 ) 663,601 (815,423 )
Unrealized Principal Investment (Income) Loss<br>(f) 203,288 996,105 62,894 479,120 (160,702 ) 176,530 318,418 25,355 1,377,417
Other Revenues (g) (155,704 ) (198,546 ) 243,315 14,180 31,718 (228,523 ) 45,898 (343,265 ) 90,667
Equity-Based Compensation (h) 195,644 190,197 194,704 268,134 249,755 397,189 517,889 691,032 902,790
Administrative Fee Adjustment<br>(i) 2,476 2,460 2,445 2,447 2,413 4,961 4,860 9,890 9,765
Taxes and Related Payables (j) (354,789 ) (184,130 ) (105,297 ) (171,005 ) (180,380 ) (502,441 ) (351,385 ) (1,037,228 ) (640,812 )
DistributableEarnings $ 1,985,825 **** $ 1,374,869 **** $ 1,334,206 **** $ 1,249,092 **** $ 1,212,072 **** $ 3,923,705 **** $ 2,461,164 **** $ 7,832,305 **** $ 5,170,239 ****
Taxes and Related Payables (j) 354,789 184,130 105,297 171,005 180,380 502,441 351,385 1,037,228 640,812
Net Interest and Dividend (Income)<br>Loss (k) 3,282 22,850 (6,755 ) 9,108 (46,110 ) 15,399 (37,002 ) 24,858 (20,907 )
Total Segment DistributableEarnings $ 2,343,896 **** $ 1,581,849 **** $ 1,432,748 **** $ 1,429,205 **** $ 1,346,342 **** $ 4,441,545 **** $ 2,775,547 **** $ 8,894,391 **** $ 5,790,144 ****
Realized Performance Revenues<br>(l) (2,206,774 ) (469,009 ) (472,745 ) (641,526 ) (388,423 ) (3,519,584 ) (1,029,949 ) (6,208,435 ) (1,971,703 )
Realized Performance Compensation (m) 926,974 206,224 161,779 296,024 178,370 1,446,094 474,394 2,514,469 842,397
Realized Principal Investment<br>(Income) Loss (n) (43,509 ) (139,765 ) (55,887 ) (43,691 ) 7,461 (200,604 ) (36,230 ) (427,082 ) (231,882 )
Fee RelatedEarnings $ 1,020,587 **** $ 1,179,299 **** $ 1,065,895 **** $ 1,040,012 **** $ 1,143,750 **** $ 2,167,451 **** $ 2,183,762 **** $ 4,773,343 **** $ 4,428,956 ****
Adjusted EBITDA Reconciliation
DistributableEarnings $ 1,985,825 **** $ 1,374,869 **** $ 1,334,206 **** $ 1,249,092 **** $ 1,212,072 **** $ 3,923,705 **** $ 2,461,164 **** $ 7,832,305 **** $ 5,170,239 ****
Interest Expense (o) 69,425 80,312 100,230 104,209 107,130 136,027 211,339 244,187 391,881
Taxes and Related Payables<br>(j) 354,789 184,130 105,297 171,005 180,380 502,441 351,385 1,037,228 640,812
Depreciation and Amortization (p) 15,644 14,958 24,301 23,175 24,100 29,960 47,275 57,273 86,534
AdjustedEBITDA $ 2,425,683 **** $ 1,654,269 **** $ 1,564,034 **** $ 1,547,481 **** $ 1,523,682 **** $ 4,592,133 **** $ 3,071,163 **** $ 9,170,993 **** $ 6,289,466 ****
Notes on pages 28-29. Blackstone 27
--- ---

RECONCILIATION OF GAAP TO NON-GAAP MEASURES - NOTES

Note:    See pages 36-38, Definitions and Dividend Policy.

(a) This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment<br>presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on<br>contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.<br>
(b) This adjustment removes the amortization of transaction-related intangibles, which are excluded from<br>Blackstone’s segment presentation.
--- ---
(c) This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s<br>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<br>add back of performance revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation.
--- ---
QTD YTD LTM
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
GAAP Unrealized Performance Allocations $ (3,467,668 ) $ (771,637 ) $ (488,801 ) $ (759,212 ) $ 114,395 $ (2,174,618 ) $ (644,817 ) $ 1,338,961 $    (1,905,255)
Segment Adjustment - - (1,922 ) (104 ) (16 ) - (120 ) - (2,042)
Unrealized Performance Revenues $ (3,467,668 ) $ (771,637 ) $ (490,723 ) $ (759,316 ) $ 114,379 $ (2,174,618 ) $ (644,937 ) $ 1,338,961 $    (1,907,297)
(e)   This adjustment removes Unrealized Performance Allocations<br>Compensation.<br> <br>(f)  This adjustment removes Unrealized Principal Investment Income (Loss) on a segment<br>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<br>removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
QTD YTD LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
GAAP Unrealized Principal Investment Income (Loss) $ (500,490 ) $ (1,069,697 ) $ (67,623 ) $ (491,417 ) $ 164,089 $ (426,529 ) $ (327,328 ) $ 61,522 $    (1,464,648)
Segment Adjustment 297,202 73,592 4,729 12,297 (3,387 ) 249,999 8,910 (86,877 ) 87,231
Unrealized Principal Investment Income (Loss) $ (203,288 ) $ (996,105 ) $ (62,894 ) $ (479,120 ) $ 160,702 $ (176,530 ) $ (318,418 ) $ (25,355 ) $    (1,377,417)
(g)   This adjustment removes Other Revenues on a segment basis. The<br>Segment Adjustment represents the removal of certain Transaction-Related Charges.
QTD YTD LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
GAAP Other Revenue $ 155,588 $ 199,382 $ (243,282 ) $ (14,154 ) $ (31,664 ) $ 228,457 $ (45,818 ) $ 343,343 $        (89,718)
Segment Adjustment 116 (836 ) (33 ) (26 ) (54 ) 66 (80 ) (78 ) (949)
Other Revenues $ 155,704 $ 198,546 $ (243,315 ) $ (14,180 ) $ (31,718 ) $ 228,523 $ (45,898 ) $ 343,265 $        (90,667)
(h)   This adjustment removes Equity-Based Compensation on a segment<br>basis.<br> <br>(i)  This adjustment adds an amount equal to an administrative fee collected on a quarterly basis<br>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<br>Blackstone’s segment<br>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)<br>calculated on Income (Loss) Before Provision
(Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. For interim periods,<br>taxes are calculated using the preferred annualized
---
effective tax rate approach. Related Payables represent tax-related<br>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 LTM LTM
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
Taxes $ 324,954 $ 163,602 $ 80,242 $ 151,002 $ 156,956 $ 449,599 $ 307,958 $ 955,256 $ 551,802
Related Payables 29,835 20,528 25,055 20,003 23,424 52,842 43,427 81,972 89,010
Taxes and Related Payables $ 354,789 $ 184,130 $ 105,297 $ 171,005 $ 180,380 $ 502,441 $ 351,385 $ 1,037,228 $ 640,812
(k)   This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis.<br>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<br>the Tax Receivable Agreement.
QTD LTM LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
GAAP Interest and Dividend Revenue $ 62,075 $ 52,420 $ 102,632 $ 90,485 $ 148,505 $ 116,560 $ 238,990 $ 214,774 $ 394,042
Segment Adjustment 4,068 5,042 4,353 4,616 4,735 4,068 9,351 4,555 18,746
Interest and Dividend Revenue $ 66,143 $ 57,462 $ 106,985 $ 95,101 $ 153,240 $ 120,628 $ 248,341 $ 219,329 $ 412,788
GAAP Interest Expense $ 69,642 $ 80,507 $ 100,329 $ 104,441 $ 108,096 $ 136,389 $ 212,537 $ 245,352 $ 393,373
Segment Adjustment (217 ) (195 ) (99 ) (232 ) (966 ) (362 ) (1,198 ) (1,165 ) (1,492 )
Interest Expense $ 69,425 $ 80,312 $ 100,230 $ 104,209 $ 107,130 $ 136,027 $ 211,339 $ 244,187 $ 391,881
Net Interest and Dividend Income (Loss) $ (3,282 ) $ (22,850 ) $ 6,755 $ (9,108 ) $ 46,110 $ (15,399 ) $ 37,002 $ (24,858 ) $ 20,907
(l)  This adjustment removes the total segment amount of Realized Performance Revenues.<br>(m)  This adjustment removes the total<br>segment amount of Realized Performance Compensation.<br>(n)   This adjustment removes the total segment amount of Realized Principal Investment<br>Income.<br>(o)   This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable<br>Agreement.<br>(p)   This adjustment adds back Depreciation and Amortization on a segment basis. <br><br><br><br>Reconciliation of GAAP Shares of Common Stock Outstanding to Distributable Earnings Shares Outstanding
QTD
2Q’22 3Q’22 4Q’22 1Q’23 2Q’23
GAAP Shares of Common Stock Outstanding 706,476,877 708,995,155 710,276,923 712,794,968 713,551,859
Unvested Participating Common Shares 35,710,961 32,557,230 32,376,835 33,121,860 44,596,669
Total Participating Common Shares 742,187,838 741,552,385 742,653,758 745,916,828 758,148,528
Participating Partnership Units 466,568,377 464,951,386 463,758,383 462,366,799 461,135,682
Distributable Earnings Shares Outstanding **** 1,208,756,215 **** **** 1,206,503,771 **** **** 1,206,412,141 **** **** 1,208,283,627 **** **** 1,219,284,210 ****
Disclosure of Weighted-Average Shares Common StockOutstanding ****
QTD YTD LTM
2Q’22 3Q’22 4Q’22 1Q’23 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
Total GAAP Weighted-Average Shares of Common Stock Outstanding -<br>Basic 707,382,293 742,345,646 742,742,919 746,064,922 758,479,943 738,752,489 752,306,729 731,485,547 747,385,306
Weighted-Average Shares of Unvested Deferred<br>Restricted Common Stock - 149,886 186,808 579,007 68,305 388,373 323,656 376,701 246,001
Total GAAP Weighted-Average Shares of Common Stock Outstanding -Diluted **** 707,382,293 **** **** 742,495,532 **** **** 742,929,727 **** **** 746,643,929 **** **** 758,548,248 **** **** 739,140,862 **** **** 752,630,385 **** **** 731,862,248 **** **** 747,631,307 ****
GAAP Shares of Common Stock Outstanding and Total GAAP Weighted-Average Shares of Common Stock Outstanding – Basic for 3Q’22 include<br>the effect of share<br> <br>repurchases that were initiated before quarter end but where the shares were not retired until after quarter end. Blackstone 29
--- ---

BLACKSTONE’S SECOND QUARTER 2023 GAAP CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

( in thousands) (unaudited) 3Q’22 4Q’22 1Q’23 2Q’23
Assets
Cash and Cash<br>Equivalents 4,183,380 $ 3,480,003 $ 4,252,003 $ 2,830,971 $ 3,280,204
Cash Held by Blackstone Funds and Other 129,276 94,358 241,712 190,322 215,444
Investments 27,323,758 26,256,148 27,553,251 26,985,951 27,048,621
Accounts Receivable 774,137 835,529 462,904 924,934 664,028
Due from Affiliates 3,891,958 4,029,490 4,146,707 4,099,765 4,294,437
Intangible Assets, Net 246,988 232,096 217,287 230,295 219,221
Goodwill 1,890,202 1,890,202 1,890,202 1,890,202 1,890,202
Other Assets 658,298 785,794 800,458 833,232 905,454
Right-of-Use Assets 886,911 887,832 896,981 894,067 888,190
Deferred Tax Assets 1,646,400 1,767,869 2,062,722 2,206,700 2,176,983
Total Assets 41,631,308 **** $ 40,259,321 **** $ 42,524,227 **** $ 41,086,439 **** $ 41,582,784 ****
Liabilities and Equity
Loans Payable 9,365,274 $ 9,263,080 $ 12,349,584 $ 12,311,469 $ 12,299,855
Due to Affiliates 2,001,391 2,060,891 2,118,481 1,974,182 2,092,837
Accrued Compensation and<br>Benefits 6,765,492 6,732,507 6,101,801 5,470,773 5,685,879
Securities Sold, Not Yet Purchased 27,029 26,783 3,825 3,881 3,821
Repurchase Agreements 152,529 313,138 89,944 19,563 18,262
Operating Lease Liabilities 993,875 985,632 1,021,454 1,016,808 1,013,813
Accounts Payable, Accrued<br>Expenses and Other Liabilities 991,620 1,141,905 1,158,071 1,575,938 1,377,838
Total Liabilities 20,297,210 **** **** 20,523,936 **** **** 22,843,160 **** **** 22,372,614 **** **** 22,492,305 ****
Redeemable<br>Non-Controlling Interests in Consolidated Entities 1,275,491 **** **** 1,344,188 **** **** 1,715,006 **** **** 1,644,697 **** **** 1,626,349 ****
Equity
Common Stock, 0.00001 par value<br>(713,551,859 shares issued and outstanding as of June 30, 2023) 7 7 7 7 7
Series I Preferred Stock, 0.00001 par value (1<br>share issued and outstanding as of June 30, 2023) - - - - -
Series II Preferred Stock,<br>0.00001 par value (1 share issued and outstanding as of June 30, 2023) - - - - -
Additional Paid-in-Capital 5,870,285 5,791,006 5,935,273 5,957,054 6,076,367
Retained Earnings 2,803,100 1,869,463 1,748,106 1,156,109 1,160,278
Accumulated Other Comprehensive Loss (42,225 ) (74,800 ) (27,475 ) (22,333 ) (17,205 )
Non-Controlling Interests in Consolidated<br>Entities 5,281,244 5,357,148 5,056,480 5,058,090 5,174,961
Non-Controlling Interests in Blackstone Holdings 6,146,196 5,448,373 5,253,670 4,920,201 5,069,722
Total Equity 20,058,607 **** **** 18,391,197 **** **** 17,966,061 **** **** 17,069,128 **** **** 17,464,130 ****
Total Liabilities and Equity 41,631,308 **** $ 40,259,321 **** $ 42,524,227 **** $ 41,086,439 **** $ 41,582,784 ****

All values are in US Dollars.

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) 2Q’22 3Q’22 4Q’22 1Q’23 2Q’23
Investments of Consolidated Blackstone Funds $ 3,764,850 $ 3,828,497 $ 5,136,967 $ 5,443,867 $ 5,490,773
Equity Method Investments
Partnership Investments 5,446,688 5,566,645 5,530,420 5,598,552 5,585,603
Accrued Performance Allocations 13,544,855 12,938,888 12,360,682 11,517,750 11,496,244
Corporate Treasury Investments 810,672 799,016 1,053,540 958,632 707,079
Other Investments 3,756,693 3,123,102 3,471,642 3,467,150 3,768,922
Total GAAP Investments **** 27,323,758 **** **** 26,256,148 **** **** 27,553,251 **** **** 26,985,951 **** **** 27,048,621 ****
Accrued Performance Allocations - GAAP $ 13,544,855 **** $ 12,938,888 **** $ 12,360,682 **** $ 11,517,750 **** $ 11,496,244 ****
Impact of Consolidation (a) 12,475 2,412 - - -
Due from Affiliates - GAAP (b) 136,631 154,587 269,987 190,337 197,998
Less: Net Realized Performance Revenues (c) (262,083 ) (342,922 ) (282,730 ) (379,453 ) (283,131 )
Less: Accrued Performance Compensation - GAAP (d) (5,955,982 ) (5,693,325 ) (5,512,796 ) (4,956,515 ) (4,941,915 )
Net Accrued Performance Revenues $ 7,475,896 **** $ 7,059,640 **** $ 6,835,143 **** $ 6,372,119 **** $ 6,469,196 ****
Corporate Treasury and Other Investments - GAAP $ 4,567,365 **** $ 3,922,118 **** $ 4,525,181 **** $ 4,425,781 **** $ 4,476,001 ****
Impact of Consolidation (a) 708,469 697,317 588,355 488,785 429,718
Other Assets (e) 642,875 617,346 360,219 347,995 135,637
Other Liabilities (f) (54,321 ) (37,974 ) (22,718 ) (33,505 ) (53,226 )
Corporate Treasury and Other Investments - Deconsolidated(g) $ 5,864,388 **** $ 5,198,807 **** $ 5,451,037 **** $ 5,229,056 **** $ 4,988,130 ****
Partnership Investments - GAAP $ 5,446,688 **** $ 5,566,645 **** $ 5,530,420 **** $ 5,598,552 **** $ 5,585,603 ****
Impact of Consolidation (h) (3,169,740 ) (3,221,867 ) (3,221,619 ) (3,273,357 ) (3,224,559 )
GP/Fund Investments - Deconsolidated $ 2,276,948 **** $ 2,344,778 **** $ 2,308,801 **** $ 2,325,195 **** $ 2,361,044 ****
Loans Payable - GAAP $ 9,365,274 **** $ 9,263,080 **** $ 12,349,584 **** $ 12,311,469 **** $ 12,299,855 ****
Impact of Consolidation (i) - (30,627 ) (1,450,000 ) (1,742,452 ) (1,714,235 )
Outstanding Debt - Carrying Value 9,365,274 9,232,453 10,899,584 10,569,017 10,585,620
Unamortized Discount 131,526 127,947 141,416 98,783 136,163
Outstanding Debt (at par) - Deconsolidated $ 9,496,800 **** $ 9,360,400 **** $ 11,041,000 **** $ 10,667,800 **** $ 10,721,783 ****
(a) This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.<br>
--- ---
(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<br>Distributable Earnings in the period they are realized.
--- ---
(d) Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded<br>within Accrued Compensation and Benefits and<br> Due to Affiliates.
--- ---
(e) This adjustment adds other assets related to Treasury Operations that are recorded within Accounts Receivable,<br>reverse repurchase agreements and Due from Affiliates.
--- ---
(f) This adjustment adds other liabilities related to Treasury Operations that are recorded within Accounts Payable,<br>Accrued Expenses and Other Liabilities, Repurchase<br> Agreements and securities sold short, not yet purchased.
--- ---
(g) Deconsolidated Other Investments was $3.7 billion as of June 30, 2023, which was comprised of<br>$3.4 billion of liquid investments and $383 million of illiquid investments.<br> 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<br>may include<br> securities and investments subject to lock-up periods.
--- ---
(h) This adjustment removes amounts associated with the ownership of Blackstone consolidated operating partnerships<br>held by non-controlling interests and adds back<br> investments in consolidated Blackstone Funds which have been eliminated in consolidation.
--- ---
(i) This adjustment removes amounts related to consolidated Blackstone Funds.<br>
--- ---
Blackstone 31
---

RECONCILIATION OF GAAP TO TOTAL SEGMENTS

QTD YTD LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’22 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
Management and Advisory Fees, Net ****
GAAP $ 1,561,187 $ 1,617,754 $ 1,648,438 $ 1,658,315 $ 1,709,370 $ 3,037,123 $ 3,367,685 $ 5,817,466 $ 6,633,877
Segment Adjustment (a) (4,270 ) (6,184 ) (7,347 ) (5,928 ) (6,184 ) (6,838 ) (12,112 ) (10,886 ) (25,643 )
Total Segment $ 1,556,917 $ 1,611,570 $ 1,641,091 $ 1,652,387 $ 1,703,186 $ 3,030,285 $ 3,355,573 $ 5,806,580 $ 6,608,234
GAAP Realized Performance Revenues to TotalSegment Fee Related Performance Revenues ****
GAAP
Incentive Fees 99,598 110,776 210,264 142,876 153,077 204,087 295,953 388,747 616,993
Investment Income - Realized Performance<br>Allocations 2,453,769 725,888 435,597 646,894 502,084 4,220,155 1,148,978 8,530,620 2,310,463
GAAP $ 2,553,367 $ 836,664 $ 645,861 $ 789,770 $ 655,161 $ 4,424,242 $ 1,444,931 $ 8,919,367 $ 2,927,456
Total Segment
Less: Realized Performance Revenues (2,206,774 ) (469,009 ) (472,745 ) (641,526 ) (388,423 ) (3,519,584 ) (1,029,949 ) (6,208,435 ) (1,971,703 )
Segment Adjustment (b) - 4,476 (408 ) - - - - 913 4,068
Total Segment $ 346,593 $ 372,131 $ 172,708 $ 148,244 $ 266,738 $ 904,658 $ 414,982 $ 2,711,845 $ 959,821
GAAP Compensation to Total Segment Fee RelatedCompensation ****
GAAP
Compensation 686,012 600,273 626,990 716,285 737,017 1,342,517 1,453,302 2,454,748 2,680,565
Incentive Fees Compensation 45,363 50,355 71,261 63,281 64,227 86,382 127,508 156,738 249,124
Realized Performance Allocations Compensation 1,035,916 313,930 157,817 296,794 205,196 1,753,517 501,990 3,505,060 973,737
GAAP $ 1,767,291 $ 964,558 $ 856,068 $ 1,076,360 $ 1,006,440 $ 3,182,416 $ 2,082,800 $ 6,116,546 $ 3,903,426
Total Segment
Less: Realized Performance Compensation (926,974 ) (206,224 ) (161,779 ) (296,024 ) (178,370 ) (1,446,094 ) (474,394 ) (2,514,469 ) (842,397 )
Less: Equity-Based Compensation - Fee Related Compensation (191,769 ) (187,873 ) (192,141 ) (265,154 ) (246,445 ) (392,156 ) (511,599 ) (682,254 ) (891,613 )
Less: Equity-Based Compensation - Performance<br>Compensation (3,875 ) (2,324 ) (2,563 ) (2,980 ) (3,310 ) (5,033 ) (6,290 ) (8,778 ) (11,177 )
Segment Adjustment (c) (23,260 ) (9,869 ) (18,962 ) (3,231 ) (9,507 ) (47,249 ) (12,738 ) (91,646 ) (41,569 )
Total Segment $ 621,413 $ 558,268 $ 480,623 $ 508,971 $ 568,808 $ 1,291,884 $ 1,077,779 $ 2,819,399 $ 2,116,670
GAAP General, Administrative and Other to TotalSegment Other Operating Expenses ****
GAAP $ 289,288 $ 270,369 $ 292,340 $ 273,394 $ 275,034 $ 529,962 $ 548,428 $ 1,057,630 $ 1,111,137
Segment Adjustment (d) (27,778 ) (24,235 ) (25,059 ) (21,746 ) (17,668 ) (54,354 ) (39,414 ) (131,947 ) (88,708 )
Total Segment $ 261,510 $ 246,134 $ 267,281 $ 251,648 $ 257,366 $ 475,608 $ 509,014 $ 925,683 $ 1,022,429
Realized Performance Revenues ****
GAAP
Incentive Fees 99,598 110,776 210,264 142,876 153,077 204,087 295,953 388,747 616,993
Investment Income - Realized Performance<br>Allocations 2,453,769 725,888 435,597 646,894 502,084 4,220,155 1,148,978 8,530,620 2,310,463
GAAP $ 2,553,367 $ 836,664 $ 645,861 $ 789,770 $ 655,161 $ 4,424,242 $ 1,444,931 $ 8,919,367 $ 2,927,456
Total Segment
Less: Fee Related Performance Revenues (346,593 ) (372,131 ) (172,708 ) (148,244 ) (266,738 ) (904,658 ) (414,982 ) (2,711,845 ) (959,821 )
Segment Adjustment (b) - 4,476 (408 ) - - - - 913 4,068
Total Segment $ 2,206,774 $ 469,009 $ 472,745 $ 641,526 $ 388,423 $ 3,519,584 $ 1,029,949 $ 6,208,435 $ 1,971,703
Blackstone 32
---

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

QTD YTD LTM
($ in thousands) 2Q’22 3Q’22 4Q’22 1Q’22 2Q’23 2Q’22 2Q’23 2Q’22 2Q’23
Realized Performance Compensation
GAAP
Incentive Fee Compensation $ 45,363 $ 50,355 $ 71,261 $ 63,281 $ 64,227 $ 86,382 $ 127,508 $ 156,738 $ 249,124
Realized Performance Allocations<br>Compensation 1,035,916 313,930 157,817 296,794 205,196 1,753,517 501,990 3,505,060 973,737
GAAP $ 1,081,279 $ 364,285 $ 229,078 $ 360,075 $ 269,423 $ 1,839,899 $ 629,498 $ 3,661,798 $ 1,222,861
Total Segment
Less: Fee Related Performance<br>Compensation (e) (150,430 ) (155,737 ) (64,736 ) (61,071 ) (87,743 ) (388,772 ) (148,814 ) (1,138,551 ) (369,287 )
Less: Equity-Based Compensation - Performance Compensation (3,875 ) (2,324 ) (2,563 ) (2,980 ) (3,310 ) (5,033 ) (6,290 ) (8,778 ) (11,177 )
Total Segment $ 926,974 $ 206,224 $ 161,779 $ 296,024 $ 178,370 $ 1,446,094 $ 474,394 $ 2,514,469 $ 842,397
Realized Principal Investment Income(Loss) ****
GAAP $ 265,161 $ 193,228 $ 106,834 $ 108,058 $ 54,835 $ 550,265 $ 162,893 $ 1,046,989 $ 462,955
Segment Adjustment (f) (221,652 ) (53,463 ) (50,947 ) (64,367 ) (62,296 ) (349,661 ) (126,663 ) (619,907 ) (231,073 )
Total Segment $ 43,509 $ 139,765 $ 55,887 $ 43,691 $ (7,461 ) $ 200,604 $ 36,230 $ 427,082 $ 231,882
GAAP Interest and Dividend Revenue net ofInterest Expense to Total Segment Net Interest and Dividend Income (Loss) ****
GAAP
Interest and Dividend Revenue 62,075 52,420 102,632 90,485 148,505 116,560 238,990 214,774 394,042
Interest Expense (69,642 ) (80,507 ) (100,329 ) (104,441 ) (108,096 ) (136,389 ) (212,537 ) (245,352 ) (393,373 )
GAAP $ (7,567 ) $ (28,087 ) $ 2,303 $ (13,956 ) $ 40,409 $ (19,829 ) $ 26,453 $ (30,578 ) $ 669
Segment Adjustment (g) 4,285 5,237 4,452 4,848 5,701 4,430 10,549 5,720 20,238
Total Segment $ (3,282 ) $ (22,850 ) $ 6,755 $ (9,108 ) $ 46,110 $ (15,399 ) $ 37,002 $ (24,858 ) $ 20,907

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 Charges.

(a) Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been<br>eliminated in consolidation, and (2) the
removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross<br>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<br>eliminated in consolidation.
--- ---
(c) Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.<br>
--- ---
(d) Represents the (1) removal of amortization of transaction-related intangibles, (2) removal of certain<br>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,<br>and (3) a reduction equal to an
---
administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units<br>which is accounted for as a capital
---
contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment<br>presentation.
---
(e) Fee related performance compensation may include equity based compensation based on fee related performance<br>revenues.
--- ---
(f) Represents (1) the add back of Principal Investment Income, including general partner income, earned from<br>consolidated Blackstone Funds which have
--- ---
been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone<br>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<br>have been eliminated in consolidation,
--- ---
and (2) the removal of interest expense associated with the Tax Receivable Agreement.<br>
---
Blackstone 33
---

NOTES

Notes to page 4 - Investment Performance and NetAccrued 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<br>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.
--- ---
§ Results for the Secondaries business (also referred to as Strategic Partners) are reported on a three-month lag from the Secondaries’ fund financial statements, which generally report underlying investments on a<br>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)<br>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<br>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<br>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<br>Blackstone Credit subsequent to March 2008, are also excluded.
--- ---
§ The BPS Composite gross and net returns are based on the BAAM Principal Solutions (“BPS”) Composite, which includes only BAAM-managed commingled and customized multi-manager funds and accounts and does not<br>include BAAM’s liquid solutions group, seeding, GP stakes, special situations, and advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed<br>funds in liquidation and, in the case of net returns, non fee-paying assets are also excluded. The funds/accounts that comprise the BPS Composite are not managed within a single fund or account and are managed<br>with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-alone fund/account. The BPS Composite is not an investible product and, as such, the performance of the BPS Composite does not represent<br>the performance of an actual fund or account.
--- ---

Notes to page 17 – Deconsolidated Balance Sheet Highlights

§ GP/Fund Investments include Blackstone investments in Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions, which were $787 million, $947 million, $389 million, and<br>$239 million, respectively, as of June 30, 2023. Cash and Net Investments per share amounts are calculated using period end DE Shares Outstanding (see page 24, Share Summary).
Blackstone 34
---

NOTES – (CONT’D)

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<br>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 $106 million for 2Q’23 and $218 million for 2Q’23<br>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<br>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<br>Blackstone Funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related Charges.<br>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<br>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<br>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,<br>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<br>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<br>from the underlying calculation of Segment DE and Total Segment Distributable Earnings, such as equity- based compensation charges and certain Transaction-Related Charges where there is a current tax provision or benefit. The economic assumptions<br>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,<br>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<br>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<br>(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<br>(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<br>realization events from the underlying investments.
--- ---
– Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove the amortization of transaction-related intangibles,<br>(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<br>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<br>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<br>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<br>(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<br>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 2023, Fee Related Compensation will be decreased by the total amount of additional<br>Performance Compensation awarded for the year. For 2Q’23 QTD and 2Q’23 YTD the increase to Realized Performance Compensation was greater than the decrease to Fee Related Compensation, which negatively impacted Distributable Earnings for<br>the current year quarter and YTD periods. These changes to Performance Compensation and Fee Related Compensation are not expected to impact Distributable Earnings for the full year. These changes had an impact on individual quarters in
--- ---

2022 but did not impact Income Before Provision (Benefit) for Taxes and Distributable Earnings for the year ended December 31, 2022.

§ Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges,<br>gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.
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, 2022, 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

Report a Problem

Category
Description
Email (optional, for follow-up)