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8-K

Blackstone Inc. (BX)

8-K 2020-04-23 For: 2020-04-23
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Added on April 10, 2026

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): April 23, 2020

The Blackstone Group Inc.

(Exact name of Registrant as specified in its charter)

Delaware 001-33551 20-8875684
(State or other jurisdiction of<br> <br>incorporation) (Commission File Number) (I.R.S. Employer<br> <br>Identification No.)
345 Park Avenue<br> <br>New York, New York 10154
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(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)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading<br>Symbol(s) Name of each exchange on which registered
Class A 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 April 23, 2020, The Blackstone Group Inc. issued a press release and detailed presentation announcing financial results for its first quarter ended March 31, 2020.

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 The Blackstone Group Inc. dated April 23, 2020.
104 The cover page from this Current Report on Form 8-K, formatted in Inline XBRL.

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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: April 23, 2020

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

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EX-99.1

Exhibit 99.1

LOGO

Blackstone Reports First Quarter 2020 Results

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

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone’s first-quarter financial results reflect the unprecedented market and global economic conditions caused by the COVID-19 pandemic. Despite the extremely challenging environment, we continued to generate significant cash flow for our shareholders, distributing over $700 million through dividends and share repurchases in the quarter, and $3.2 billion over the last twelve months. Throughout our firm’s 35-year history, we have weathered many difficult periods - including the global financial crisis - only to emerge stronger than before. Our experience has shown that although asset values may be temporarily marked down, strong assets ultimately recover.”

Mr. Schwarzman continued, “We entered this crisis in a position of great strength, having recently completed a two-year fundraising cycle of nearly $250 billion. With ample capital reserves, long-term fund structures, and over $150 billion of dry powder capital – more than anyone in our industry – we are uniquely positioned to invest on behalf of our clients at a time of historic dislocation.”

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

Dividend

Blackstone has declared a quarterly dividend of $0.39 per share to record holders of Class A common stock at the close of business on May 4, 2020. This dividend will be paid on May 11, 2020.

Blackstone

345 Park Avenue New York NY 10154

T 212 583 5000

www.blackstone.com

Quarterly Investor Call Details

Blackstone will host its first quarter 2020 investor conference via public webcast on April 23, 2020 at 9:00 a.m. ET. To register, please use the following link: https://event.webcasts.com/starthere.jsp?ei=1296835&tp_key=a429fa7d99. For those unable to listen to the live broadcast, there will be a webcast replay on the Shareholders section of Blackstone’s website at https://ir.blackstone.com/.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with $538 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-LookingStatements

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to the impact of COVID-19 and energy market dislocation, as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2019, as such factors may be updated from time to time in our periodic filings

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with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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

Investor and Media Relations Contacts

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

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<br> <br>Blackstone’s First<br> <br>Quarter 2020 Earnings<br> <br>APRIL 23, 2020
<br> <br>Blackstone <br> <br>1<br> <br>BLACKSTONE’S FIRST QUARTER 2020 GAAP RESULTS<br> <br>GAAP Net Income (Loss) was $(2.6) billion for the quarter and $186 million over the last twelve months (“LTM”).<br> <br>GAAP Net Income (Loss) Attributable to The Blackstone Group<br>Inc. was $(1.1) billion for the quarter and $502<br> <br>million<br> <br>over the LTM.<br><br><br>Throughout this presentation, all current period amounts are<br>preliminary. Totals may not add due to rounding. See pages 34-35, Definitions and Dividend<br> <br>Policy, for definitions of terms used throughout this presentation. See additional notes on page 32.<br><br><br>($ in thousands, except per share data. unaudited)<br><br><br>1Q'19<br> <br>1Q'20<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>Revenues<br> <br>Management and Advisory Fees, Net<br> <br>809,726<br> <br>$<br> <br>934,832<br> <br>$<br> <br>3,108,673<br> <br>$<br> <br>3,597,261<br> <br>$<br> <br>Incentive Fees<br> <br>12,132<br> <br>12,161<br> <br>57,106<br> <br>129,940<br> <br>Investment Income (Loss)<br> <br>Performance Allocations<br> <br>Realized<br> <br>242,375<br> <br>167,530<br> <br>1,849,242<br> <br>1,664,155<br> <br>Unrealized<br> <br>663,999<br> <br>(3,453,081)<br> <br>597,283<br> <br>(2,990,748)<br> <br>Principal Investments<br> <br>Realized<br> <br>73,261<br> <br>48,695<br> <br>446,978<br> <br>368,912<br> <br>Unrealized<br> <br>169,044<br> <br>(959,365)<br> <br>107,187<br> <br>(913,406)<br> <br>Total Investment Income (Loss)<br> <br>1,148,679<br> <br>(4,196,221)<br> <br>3,000,690<br> <br>(1,871,087)<br> <br>Interest and Dividend Revenue<br> <br>44,084<br> <br>35,084<br> <br>180,646<br> <br>173,398<br> <br>Other<br> <br>10,250<br> <br>138,180<br> <br>741,884<br> <br>207,923<br> <br>Total Revenues<br> <br>2,024,871<br> <br>$<br> <br>(3,075,964)<br> <br>$<br> <br>7,088,999<br> <br>$<br> <br>2,237,435<br> <br>$<br> <br>Expenses<br> <br>Compensation and Benefits<br> <br>Compensation<br> <br>471,397<br> <br>476,543<br> <br>1,691,951<br> <br>1,825,476<br> <br>Incentive Fee Compensation<br> <br>5,406<br> <br>6,522<br> <br>32,660<br> <br>45,416<br> <br>Performance Allocations Compensation<br> <br>Realized<br> <br>86,395<br> <br>72,423<br> <br>685,409<br> <br>648,970<br> <br>Unrealized<br> <br>287,015<br> <br>(1,397,378)<br> <br>352,322<br> <br>(1,144,108)<br> <br>Total Compensation and Benefits<br> <br>850,213<br> <br>(841,890)<br> <br>2,762,342<br> <br>1,375,754<br> <br>General, Administrative and Other<br> <br>146,062<br> <br>157,566<br> <br>614,222<br> <br>690,912<br> <br>Interest Expense<br> <br>42,002<br> <br>41,644<br> <br>167,321<br> <br>199,290<br> <br>Fund Expenses<br> <br>2,887<br> <br>4,605<br> <br>26,388<br> <br>19,456<br> <br>Total Expenses<br> <br>1,041,164<br> <br>$<br> <br>(638,075)<br> <br>$<br> <br>3,570,273<br> <br>$<br> <br>2,285,412<br> <br>$<br> <br>Other Income (Loss)<br> <br>Change in Tax Receivable Agreement Liability<br> <br>-<br> <br>(595)<br> <br>-<br> <br>160,972<br> <br>Net Gains (Losses) from Fund Investment Activities<br> <br>130,325<br> <br>(327,374)<br> <br>211,448<br> <br>(174,870)<br> <br>Income (Loss) Before Provision (Benefit) for Taxes<br> <br>1,114,032<br> <br>$<br> <br>(2,765,858)<br> <br>$<br> <br>3,730,174<br> <br>$<br> <br>(61,875)<br> <br>$<br> <br>Provision (Benefit) for Taxes<br> <br>41,155<br> <br>(158,703)<br> <br>236,050<br> <br>(247,810)<br> <br>Net Income (Loss)<br> <br>1,072,877<br> <br>$<br> <br>(2,607,155)<br> <br>$<br> <br>3,494,124<br> <br>$<br> <br>185,935<br> <br>$<br> <br>Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities<br><br><br>2,480<br> <br>(15,469)<br> <br>1,651<br> <br>(18,070)<br> <br>Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities<br><br><br>186,833<br><br><br>(645,077)<br><br><br>390,212<br><br><br>(355,131)<br><br><br>Net Income (Loss) Attributable to Non-Controlling Interests in<br>Blackstone Holdings<br> <br>402,260<br><br><br>(880,117)<br><br><br>1,447,041<br><br><br>57,250<br> <br>Net Income (Loss) Attributable to The Blackstone Group Inc. ("BX")<br><br><br>481,304<br> <br>$<br> <br>(1,066,492)<br> <br>$<br> <br>1,655,220<br> <br>$<br> <br>501,886<br> <br>$<br> <br>Net Income (Loss) Per Share of Class A Common Stock, Basic<br> <br>0.71<br> <br>$<br><br><br>(1.58)<br> <br>$<br> <br>2.44<br> <br>$<br><br><br>0.74<br> <br>$<br><br><br>Net Income (Loss) Per Share of Class A Common Stock, Diluted<br><br><br>0.71<br> <br>$<br><br><br>(1.58)<br> <br>$<br> <br>2.44<br> <br>$<br><br><br>0.74<br> <br>$<br><br><br>Income (Loss) Before Provision (Benefit) for Taxes Margin<br><br><br>55.0%<br> <br>89.9%<br> <br>52.6%<br> <br>(2.8)%
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<br> <br>Blackstone <br> <br>2<br> <br>BLACKSTONE’S FIRST QUARTER 2020 HIGHLIGHTS<br> <br>Financial Measures<br> <br>Fee<br> <br>Related<br> <br>Earnings<br> <br>(“FRE”)<br> <br>of<br> <br>$468<br> <br>million<br> <br>($0.39/share)<br> <br>in<br> <br>the<br> <br>quarter,<br> <br>up<br> <br>25%<br> <br>year-<br> <br>over-year<br> <br>–<br> <br>FRE was $1.9 billion for the LTM<br> <br>($1.57/share), up 26% year-over-year<br> <br>Distributable Earnings (“DE”) of $557 million ($0.46/share) in the quarter,<br><br><br>up 4% year-over-year<br><br><br>–<br><br><br>DE was $2.9 billion for the LTM<br><br><br>($2.33/share), up 6% year-over-year<br><br><br>Net Accrued Performance Revenues receivable of $2.2 billion<br>($1.83/share)<br> <br>Capital Metrics<br><br><br>Total Assets Under Management (“AUM”) of $538.0 billion, up<br>5% year-over-year<br> <br>–<br><br><br>Fee-Earning AUM of $423.1 billion, up 20%<br>year-over-year<br> <br>Inflows of $27.3 billion in the<br>quarter and $118.8 billion for the LTM<br> <br>Realizations of<br>$6.4 billion in the quarter and $38.3 billion for the LTM<br><br><br>Deployment of $14.8 billion in the quarter and $66.0 billion for the<br>LTM<br> <br>Capital Returned<br><br><br>to Shareholders<br><br><br>Dividend of $0.39 per common share payable on May 11, 2020<br><br><br>–<br><br><br>Dividends of $1.97 per common share for the LTM<br><br><br>Repurchased 5.0 million common shares in the quarter and 16.2 million<br>common shares<br> <br>for the LTM, resulting in no net share<br>count dilution<br> <br>Over $700 million to be distributed to<br>shareholders with respect to the first quarter<br> <br>through<br>dividends and share repurchases, and $3.2 billion for the LTM<br><br><br>Notes on page 32.
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<br> <br>Blackstone <br> <br>3<br> <br>BLACKSTONE’S FIRST QUARTER 2020 SEGMENT EARNINGS<br> <br>Fee<br> <br>Related<br> <br>Earnings<br> <br>per<br> <br>Share<br> <br>is<br> <br>based<br> <br>on<br> <br>end<br> <br>of<br> <br>period<br> <br>DE<br> <br>Shares<br> <br>Outstanding<br> <br>(see<br> <br>page<br> <br>23,<br> <br>Share<br> <br>Summary).<br> <br>DE<br> <br>per<br> <br>Common<br> <br>Share<br> <br>is<br> <br>based<br> <br>on<br> <br>DE<br> <br>Attributable<br> <br>to Common Shareholders (see page 22, Shareholder Dividends) and end of period Participating Common Shares outstanding. LTM per<br>Share amounts represent<br> <br>the sum of the last four quarters.<br>See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.<br> <br>% Change<br> <br>% Change<br> <br>($ in thousands, except per share data)<br> <br>1Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Management and Advisory Fees, Net<br> <br>814,062<br> <br>$<br> <br>940,567<br> <br>$<br> <br>16%<br> <br>3,114,470<br> <br>$<br> <br>3,610,741<br> <br>$<br> <br>16%<br> <br>Fee Related Performance Revenues<br> <br>7,779<br> <br>12,466<br> <br>60%<br> <br>127,778<br> <br>216,688<br> <br>70%<br> <br>Fee Related Compensation<br> <br>(324,031)<br> <br>(346,264)<br> <br>7%<br> <br>(1,244,103)<br> <br>(1,358,811)<br> <br>9%<br> <br>Other Operating Expenses<br> <br>(123,311)<br> <br>(138,885)<br> <br>13%<br> <br>(504,547)<br> <br>(586,716)<br> <br>16%<br> <br>Fee Related Earnings<br> <br>374,499<br> <br>$<br> <br>467,884<br> <br>$<br> <br>25%<br> <br>1,493,598<br> <br>$<br> <br>1,881,902<br> <br>$<br> <br>26%<br> <br>Realized Performance Revenues<br> <br>246,769<br> <br>167,233<br> <br>(32)%<br> <br>1,780,169<br> <br>1,581,106<br> <br>(11)%<br> <br>Realized Performance Compensation<br> <br>(85,240)<br> <br>(71,302)<br> <br>(16)%<br> <br>(648,552)<br> <br>(589,997)<br> <br>(9)%<br> <br>Realized Principal Investment Income<br> <br>25,908<br> <br>20,290<br> <br>(22)%<br> <br>233,273<br> <br>218,537<br> <br>(6)%<br> <br>Net Realizations<br> <br>187,437<br> <br>116,221<br> <br>(38)%<br> <br>1,364,890<br> <br>1,209,646<br> <br>(11)%<br> <br>Total Segment Distributable Earnings<br> <br>561,936<br> <br>$<br> <br>584,105<br> <br>$<br> <br>4%<br> <br>2,858,488<br> <br>$<br> <br>3,091,548<br> <br>$<br> <br>8%<br> <br>Net Interest Income (Loss)<br> <br>5,061<br> <br>(3,941)<br> <br>n/m<br> <br>28,839<br> <br>(11,443)<br> <br>n/m<br> <br>Taxes and Related Payables<br> <br>(29,039)<br> <br>(23,053)<br> <br>(21)%<br> <br>(157,862)<br> <br>(190,173)<br> <br>20%<br> <br>Distributable Earnings<br> <br>537,958<br> <br>$<br> <br>557,111<br> <br>$<br> <br>4%<br> <br>2,729,465<br> <br>$<br> <br>2,889,932<br> <br>$<br> <br>6%<br> <br>Additional Metrics:<br> <br>FRE per Share<br> <br>0.31<br> <br>$<br> <br>0.39<br> <br>$<br> <br>26%<br> <br>1.24<br> <br>$<br> <br>1.57<br> <br>$<br> <br>27%<br> <br>DE per Common Share<br> <br>0.44<br> <br>$<br> <br>0.46<br> <br>$<br> <br>5%<br> <br>2.20<br> <br>$<br> <br>2.33<br> <br>$<br> <br>6%<br> <br>Total Segment Revenues<br> <br>1,094,518<br> <br>$<br> <br>1,140,556<br> <br>$<br> <br>4%<br> <br>5,255,690<br> <br>$<br> <br>5,627,072<br> <br>$<br> <br>7%<br> <br>Total Assets Under Management<br> <br>511,777,762<br> <br>$<br> <br>538,007,285<br> <br>$<br> <br>5%<br> <br>511,777,762<br> <br>$<br> <br>538,007,285<br> <br>$<br> <br>5%<br> <br>Fee-Earning Assets Under Management<br> <br>352,993,394<br> <br>$<br> <br>423,055,037<br> <br>$<br> <br>20%<br> <br>352,993,394<br> <br>$<br> <br>423,055,037<br> <br>$<br> <br>20%
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<br> <br>Blackstone <br> <br>4<br> <br>SUMMARY OF FINANCIALS<br> <br>LTM Fee Related Earnings of $1.57 per share, an increase of 27% year-over-year.<br><br><br>LTM Total Segment Distributable Earnings were $3.1 billion, an increase<br>of 8% year-over-year.<br> <br>FRE Margin is calculated by<br>dividing Fee Related Earnings by Fee Related Revenues (defined as the sum of Total Segment Management and Advisory Fees, Net<br> <br>and Fee Related Performance Revenues).<br> <br>Fee Related Earnings per Share<br> <br>Segment Distributable Earnings<br> <br>($ in millions)<br> <br>FRE/Share<br> <br>FRE Margin<br> <br>Private<br> <br>Equity<br> <br>Real<br> <br>Estate<br> <br>Hedge Fund<br> <br>Solutions<br> <br>Credit &<br> <br>Insurance<br> <br>1Q’20 LTM total:<br> <br>$3,092
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<br> <br>Blackstone <br> <br>5<br> <br>INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES<br> <br>Unrealized negative appreciation was driven by impact of COVID-19 on economic outlook and overall market<br><br><br>environment, leading to lower Net Accrued Performance Revenues of $2.2<br>billion ($1.83/share).<br> <br>1Q'20<br><br><br>1Q'20 LTM<br><br><br>Real Estate<br><br><br>Opportunistic<br><br><br>(8.8)%<br><br><br>3.3%<br> <br>Core+<br> <br>(3.9)%<br> <br>3.3%<br> <br>Private Equity<br> <br>Corporate Private Equity<br> <br>(21.6)%<br> <br>(17.3)%<br> <br>Tactical Opportunities<br> <br>(15.9)%<br> <br>(7.2)%<br> <br>Secondaries<br> <br>1.8%<br> <br>14.0%<br> <br>Hedge Fund Solutions<br> <br>BPS Composite<br> <br>(8.6)%<br> <br>(4.3)%<br> <br>Credit & Insurance<br> <br>Credit Composite<br> <br>(13.6)%<br> <br>(9.5)%<br> <br>Investment Performance<br> <br>(appreciation / gross returns)<br> <br>Net Accrued Performance Revenues<br> <br>($ in millions)<br> <br>Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Hedge Fund Solutions<br>and Credit & Insurance.<br> <br>BPS Composite net returns were<br>(8.7)% and (5.0)% for 1Q’20 and 1Q’20 LTM, respectively. Credit Composite net returns were (13.0)% and (9.5)% for 1Q’20<br> <br>and 1Q’20 LTM, respectively. See notes on pages 32-33 for additional details on investment performance calculations for<br>Core+, Corporate Private Equity,<br> <br>Secondaries, BPS<br>Composite and Credit Composite.<br> <br>$3,837<br><br><br>$4,099<br><br><br>$2,187<br><br><br>$1,808<br><br><br>$103<br><br><br>1Q'19<br><br><br>4Q'19<br><br><br>Net<br> <br>Performance<br> <br>Revenues<br> <br>Net<br> <br>Realized<br> <br>Distributions<br> <br>1Q'20
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<br> <br><br> <br>Blackstone <br> <br>6<br> <br>Corporate Private Equity also includes Core Private Equity, Life Sciences, and BTAS.<br><br><br>($ in millions)<br><br><br>1Q'20<br> <br>1Q'20 LTM<br> <br>1Q'20<br> <br>1Q'20 LTM<br> <br>1Q'20<br> <br>1Q'20 LTM<br> <br>Real Estate<br> <br>12,653<br> <br>$<br> <br>41,810<br> <br>$<br> <br>2,519<br> <br>$<br> <br>17,559<br> <br>$<br> <br>5,329<br> <br>$<br> <br>24,697<br> <br>$<br> <br>Opportunistic<br> <br>1,317<br> <br><br> <br>14,585<br> <br><br> <br>1,042<br> <br><br> <br>12,054<br> <br><br> <br>2,022<br> <br><br> <br>11,712<br> <br><br> <br>Core+<br> <br>7,026<br> <br><br> <br>17,281<br> <br><br> <br>993<br> <br><br> <br>3,094<br> <br><br> <br>2,991<br> <br><br> <br>11,543<br> <br><br> <br>BREDS<br> <br>4,310<br> <br><br> <br>9,944<br> <br><br> <br>484<br> <br><br> <br>2,411<br> <br><br> <br>317<br> <br><br> <br>1,442<br> <br><br> <br>Private Equity<br> <br>8,869<br> <br><br> <br>37,234<br> <br><br> <br>2,031<br> <br><br> <br>11,829<br> <br><br> <br>5,539<br> <br><br> <br>25,034<br> <br><br> <br>Corporate Private Equity<br> <br>7,305<br> <br><br> <br>16,684<br> <br><br> <br>771<br> <br><br> <br>5,839<br> <br><br> <br>3,047<br> <br><br> <br>11,951<br> <br><br> <br>Tactical Opportunities<br> <br>979<br> <br><br> <br>4,223<br> <br><br> <br>649<br> <br><br> <br>3,192<br> <br><br> <br>1,919<br> <br><br> <br>5,319<br> <br><br> <br>Secondaries<br> <br>584<br> <br><br> <br>9,138<br> <br><br> <br>611<br> <br><br> <br>2,799<br> <br><br> <br>573<br> <br><br> <br>7,737<br> <br><br> <br>Infrastructure<br> <br>–<br> <br>7,189<br> <br><br> <br>–<br> <br>–<br> <br>-<br> <br><br><br><br>27<br> <br><br> <br>Hedge Fund Solutions<br> <br>3,247<br> <br><br> <br>12,921<br> <br><br> <br>139<br> <br><br> <br>1,224<br> <br><br> <br>606<br> <br><br> <br>4,078<br> <br><br> <br>Credit & Insurance<br> <br>2,544<br> <br><br> <br>26,818<br> <br><br> <br>1,700<br> <br><br> <br>7,718<br> <br><br> <br>3,345<br> <br><br> <br>12,175<br> <br><br> <br>Total Blackstone<br> <br>27,313<br> <br>$<br> <br>118,783<br> <br>$<br> <br>6,389<br> <br>$<br> <br>38,330<br> <br>$<br> <br>14,819<br> <br>$<br> <br>65,984<br> <br>$<br> <br>Inflows<br> <br>Realizations<br> <br>Capital Deployed<br> <br>Inflows were $27.3 billion in the quarter, bringing LTM inflows to $118.8 billion.<br><br><br>Realizations were $6.4 billion in the quarter and $38.3 billion for the<br>LTM.<br> <br>Deployed $14.8 billion in the quarter and $66.0<br>billion for the LTM.<br> <br>–<br><br><br>Committed an additional $9.8 billion during the quarter that is not yet<br>deployed.<br> <br>CAPITAL METRICS – ADDITIONAL DETAIL
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<br> <br>Blackstone <br> <br>7<br> <br>ASSETS UNDER MANAGEMENT<br> <br>Total AUM increased to $538.0 billion, up 5% year-over-year, with $27.3 billion of inflows in the quarter<br><br><br>and $118.8 billion for the LTM.<br><br><br>Fee-Earning AUM of $423.1 billion was up 20% year-over-year,<br>with $50.8 billion of inflows in the quarter<br> <br>and $146.1<br>billion for the LTM.<br> <br>Perpetual Capital AUM reached $101.1<br>billion, up 32% year-over-year.<br> <br>Total<br>AUM<br> <br>($ in billions)<br><br><br>Fee-Earning AUM<br><br><br>($ in billions)<br><br><br>Perpetual Capital AUM<br><br><br>($ in billions)<br><br><br>Private Equity<br><br><br>Real Estate<br><br><br>Hedge Fund Solutions<br><br><br>Credit & Insurance
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<br> <br>Blackstone <br> <br>8<br> <br>ADDITIONAL CAPITAL DETAIL<br> <br>Invested Performance Eligible AUM reached $229.5 billion at quarter end, up 4% year-over-year.<br><br><br>Undrawn capital (“Total Dry Powder”) available for investment<br>of $151.5 billion, driven by fundraising activity for<br> <br>the<br>latest flagship funds.<br> <br>Private Equity<br><br><br>Real Estate<br><br><br>Hedge Fund Solutions<br><br><br>Credit & Insurance<br><br><br>Invested Performance Eligible AUM<br><br><br>($ in billions)<br><br><br>Total Dry Powder<br><br><br>($ in billions)<br><br><br>Private<br><br><br>Equity<br><br><br>Real<br><br><br>Estate<br><br><br>Hedge Fund<br><br><br>Solutions<br><br><br>Credit &<br><br><br>Insurance<br><br><br>1Q’20 total:<br><br><br>$151.5<br> <br>Invested Performance Eligible AUM represents the fair value of invested assets that are eligible to earn performance<br>revenues.
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<br> <br>Segment Highlights<br> <br>Blackstone<br> <br> <br> <br>9
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<br> <br>Blackstone <br> <br>10<br> <br>REAL ESTATE<br> <br>Total AUM:<br> <br>Increased 15% to $160.9 billion with inflows of $12.7 billion in the quarter and $41.8<br><br><br>billion for the LTM.<br><br><br>–<br> <br>During the quarter raised $5.1 billion in BREIT, closed $2.7 billion in the fourth real estate debt fund, and held<br><br><br>the final close for BREP Europe VI, which now has total capital<br>commitments of €9.8 billion.<br> <br>–<br><br><br>Fee-Earning AUM increased 38% to $130.4 billion with inflows of $9.4<br>billion in the quarter and $59.1 billion for<br> <br>the LTM.<br> <br>Realizations:<br><br><br>$2.5 billion in the quarter and $17.6 billion for the LTM; realizations<br>in the quarter were primarily<br> <br>driven by asset sales in<br>BREP.<br> <br>Capital Deployed:<br><br><br>$5.3 billion in the quarter and $24.7 billion for the LTM.<br><br><br>–<br> <br>Committed an additional $4.9 billion in the quarter that is not yet deployed.<br><br><br>Appreciation:<br><br><br>Opportunistic funds and Core+ funds declined (8.8)% and (3.9)% in the<br>quarter as a result of COVID-19<br> <br>market and economic<br>impacts; up 3.3% and 3.3% for the LTM, respectively.<br> <br>%<br>Change<br> <br>% Change<br><br><br>($ in thousands)<br><br><br>1Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Management Fees, Net<br> <br>283,876<br> <br>$<br> <br>386,121<br> <br>$<br> <br>36%<br> <br>1,162,400<br> <br>$<br> <br>1,367,423<br> <br>$<br> <br>18%<br> <br>Fee Related Performance Revenues<br> <br>6,676<br> <br>4,551<br> <br>(32)%<br> <br>126,675<br> <br>196,112<br> <br>55%<br> <br>Fee Related Compensation<br> <br>(114,816)<br> <br>(120,296)<br> <br>5%<br> <br>(473,636)<br> <br>(536,739)<br> <br>13%<br> <br>Other Operating Expenses<br> <br>(38,986)<br> <br>(40,476)<br> <br>4%<br> <br>(155,829)<br> <br>(169,822)<br> <br>9%<br> <br>Fee Related Earnings<br> <br>136,750<br> <br>$<br> <br>229,900<br> <br>$<br> <br>68%<br> <br>659,610<br> <br>$<br> <br>856,974<br> <br>$<br> <br>30%<br> <br>Realized Performance Revenues<br> <br>77,182<br> <br>43,720<br> <br>(43)%<br> <br>840,985<br> <br>998,875<br> <br>19%<br> <br>Realized Performance Compensation<br> <br>(29,900)<br> <br>(13,392)<br> <br>(55)%<br> <br>(258,104)<br> <br>(357,588)<br> <br>39%<br> <br>Realized Principal Investment Income<br> <br>(2,131)<br> <br>7,300<br> <br>n/m<br> <br>75,704<br> <br>89,164<br> <br>18%<br> <br>Net Realizations<br> <br>45,151<br> <br>37,628<br> <br>(17)%<br> <br>658,585<br> <br>730,451<br> <br>11%<br> <br>Segment Distributable Earnings<br> <br>181,901<br> <br>$<br> <br>267,528<br> <br>$<br> <br>47%<br> <br>1,318,195<br> <br>$<br> <br>1,587,425<br> <br>$<br> <br>20%<br> <br>Segment Revenues<br> <br>365,603<br> <br>$<br> <br>441,692<br> <br>$<br> <br>21%<br> <br>2,205,764<br> <br>$<br> <br>2,651,574<br> <br>$<br> <br>20%<br> <br>Total AUM<br> <br>140,334,043<br> <br>$<br> <br>160,934,849<br> <br>$<br> <br>15%<br> <br>140,334,043<br> <br>$<br> <br>160,934,849<br> <br>$<br> <br>15%<br> <br>Fee-Earning AUM<br> <br>94,223,034<br> <br>$<br> <br>130,424,462<br> <br>$<br> <br>38%<br> <br>94,223,034<br> <br>$<br> <br>130,424,462<br> <br>$<br> <br>38%
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<br> <br>Blackstone <br> <br>11<br> <br>PRIVATE EQUITY<br> <br>Total AUM:<br> <br>Increased 10% to $174.7 billion with inflows of $8.9 billion in the quarter and $37.2 billion for the LTM.<br><br><br>–<br> <br>Inflows in the quarter included $4.8 billion for the initial close of the second Core Private Equity fund.<br><br><br>–<br> <br>Fee-Earning AUM up 50% to $128.3 billion, driven by commencement of investment periods for BCP VIII, BEP III<br><br><br>and BXLS V in the quarter.<br><br><br>Realizations:<br><br><br>$2.0 billion in the quarter and $11.8 billion for the LTM.<br><br><br>Capital Deployed:<br><br><br>$5.5 billion in the quarter and $25.0 billion for the LTM across<br>regions; committed an additional<br> <br>$3.8 billion that was not<br>yet deployed in the quarter.<br> <br>Appreciation:<br><br><br>Corporate Private Equity declined (21.6)% in the quarter and (17.3)%<br>for the LTM due to the market<br> <br>and economic impacts of<br>COVID-19 and energy market dislocation. Excluding energy, Corporate Private Equity<br> <br>declined (11.1)% in the quarter.<br> <br>–<br> <br>Tactical Opportunities declined (15.9)% in the quarter and (7.2)% for the LTM due to COVID-19 impacts.<br><br><br>–<br> <br>Secondaries’<br> <br>appreciation of 1.8% in the quarter and 14.0% for the LTM reflects a reporting lag of its underlying<br><br><br>funds.<br><br><br>% Change<br><br><br>% Change<br><br><br>($ in thousands)<br><br><br>1Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Management and Advisory Fees, Net<br> <br>251,723<br> <br>$<br> <br>266,172<br> <br>$<br> <br>6%<br> <br>890,745<br> <br>$<br> <br>1,078,778<br> <br>$<br> <br>21%<br> <br>Fee Related Compensation<br> <br>(107,587)<br> <br>(110,368)<br> <br>3%<br> <br>(393,467)<br> <br>(426,533)<br> <br>8%<br> <br>Other Operating Expenses<br> <br>(34,201)<br> <br>(41,001)<br> <br>20%<br> <br>(136,146)<br> <br>(166,810)<br> <br>23%<br> <br>Fee Related Earnings<br> <br>109,935<br> <br>$<br> <br>114,803<br> <br>$<br> <br>4%<br> <br>361,132<br> <br>$<br> <br>485,435<br> <br>$<br> <br>34%<br> <br>Realized Performance Revenues<br> <br>156,599<br> <br>112,076<br> <br>(28)%<br> <br>836,882<br> <br>424,469<br> <br>(49)%<br> <br>Realized Performance Compensation<br> <br>(50,556)<br> <br>(54,643)<br> <br>8%<br> <br>(335,678)<br> <br>(196,653)<br> <br>(41)%<br> <br>Realized Principal Investment Income<br> <br>25,139<br> <br>10,347<br> <br>(59)%<br> <br>128,532<br> <br>75,457<br> <br>(41)%<br> <br>Net Realizations<br> <br>131,182<br> <br>67,780<br> <br>(48)%<br> <br>629,736<br> <br>303,273<br> <br>(52)%<br> <br>Segment Distributable Earnings<br> <br>241,117<br> <br>$<br> <br>182,583<br> <br>$<br> <br>(24)%<br> <br>990,868<br> <br>$<br> <br>788,708<br> <br>$<br> <br>(20)%<br> <br>Segment Revenues<br> <br>433,461<br> <br>$<br> <br>388,595<br> <br>$<br> <br>(10)%<br> <br>1,856,159<br> <br>$<br> <br>1,578,704<br> <br>$<br> <br>(15)%<br> <br>Total AUM<br> <br>158,988,748<br> <br>$<br> <br>174,695,883<br> <br>$<br> <br>10%<br> <br>158,988,748<br> <br>$<br> <br>174,695,883<br> <br>$<br> <br>10%<br> <br>Fee-Earning AUM<br> <br>85,446,868<br> <br>$<br> <br>128,300,802<br> <br>$<br> <br>50%<br> <br>85,446,868<br> <br>$<br> <br>128,300,802<br> <br>$<br> <br>50%
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<br> <br>Blackstone <br> <br>12<br> <br>HEDGE FUND SOLUTIONS<br> <br>Total AUM:<br> <br>$73.7 billion with inflows of $3.2 billion in the quarter and $12.9<br><br><br>billion for the<br><br><br>LTM.<br> <br>–<br> <br>Positive net flows in the quarter of $365 million driven by $1.4 billion of fundraising in Special Situations and GP<br><br><br>Stakes strategies partially offset by net outflows in Individual Investor<br>Solutions.<br> <br>–<br><br><br>Decrease in AUM mainly driven by depreciation due to the market and<br>economic impacts of COVID-19.<br> <br>–<br><br><br>April 1 subscriptions of $1.1 billion are not yet included in Total<br>AUM.<br> <br>Returns:<br><br><br>BPS Composite gross return of (8.6)% in the quarter ((8.7)% net),<br>compared to the S&P 500 Total Return<br> <br>(down<br>(19.6)%).<br> <br>–<br><br><br>Gross return of (4.3)% for the LTM ((5.0)% net), with less than one half<br>of the volatility of broader markets.<br> <br>% Change<br><br><br>% Change<br><br><br>($ in thousands)<br><br><br>1Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Management Fees, Net<br> <br>137,646<br> <br>$<br> <br>140,372<br> <br>$<br> <br>2%<br> <br>530,942<br> <br>$<br> <br>562,851<br> <br>$<br> <br>6%<br> <br>Fee Related Compensation<br> <br>(42,954)<br> <br>(46,191)<br> <br>8%<br> <br>(165,487)<br> <br>(155,197)<br> <br>(6)%<br> <br>Other Operating Expenses<br> <br>(17,885)<br> <br>(18,667)<br> <br>4%<br> <br>(76,872)<br> <br>(82,781)<br> <br>8%<br> <br>Fee Related Earnings<br> <br>76,807<br> <br>$<br> <br>75,514<br> <br>$<br> <br>(2)%<br> <br>288,583<br> <br>$<br> <br>324,873<br> <br>$<br> <br>13%<br> <br>Realized Performance Revenues<br> <br>4,091<br> <br>1,767<br> <br>(57)%<br> <br>36,333<br> <br>124,252<br> <br>242%<br> <br>Realized Performance Compensation<br> <br>(1,413)<br> <br>(945)<br> <br>(33)%<br> <br>(20,282)<br> <br>(23,833)<br> <br>18%<br> <br>Realized Principal Investment Income<br> <br>(283)<br> <br>(609)<br> <br>115%<br> <br>16,116<br> <br>21,381<br> <br>33%<br> <br>Net Realizations<br> <br>2,395<br> <br>213<br> <br>(91)%<br> <br>32,167<br> <br>121,800<br> <br>279%<br> <br>Segment Distributable Earnings<br> <br>79,202<br> <br>$<br> <br>75,727<br> <br>$<br> <br>(4)%<br> <br>320,750<br> <br>$<br> <br>446,673<br> <br>$<br> <br>39%<br> <br>Segment Revenues<br> <br>141,454<br> <br>$<br> <br>141,530<br> <br>$<br> <br>0%<br> <br>583,391<br> <br>$<br> <br>708,484<br> <br>$<br> <br>21%<br> <br>Total AUM<br> <br>80,182,772<br> <br>$<br> <br>73,720,792<br> <br>$<br> <br>(8)%<br> <br>80,182,772<br> <br>$<br> <br>73,720,792<br> <br>$<br> <br>(8)%<br> <br>Fee-Earning AUM<br> <br>73,647,014<br> <br>$<br> <br>68,214,435<br> <br>$<br> <br>(7)%<br> <br>73,647,014<br> <br>$<br> <br>68,214,435<br> <br>$<br> <br>(7)%
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<br> <br>Blackstone <br> <br>13<br> <br>CREDIT & INSURANCE<br> <br>Total AUM:<br> <br>$128.7 billion with inflows of $2.5 billion in the quarter and $26.8<br><br><br>billion for the<br><br><br>LTM.<br> <br>–<br> <br>Closed 1 U.S. CLO and priced 2 others (1 U.S. and 1 Euro) in the quarter, and subsequent to quarter end, priced<br><br><br>and closed the first CLO in the market since March<br>12.<br> <br>–<br> <br>European Direct Lending strategy held its final close for the second senior debt fund, raising $777 million in the<br><br><br>quarter, bringing total equity raised to $4.8 billion and total<br>investable capital to $6.2 billion, inclusive of<br><br><br>anticipated leverage.<br><br><br>Realizations:<br><br><br>$1.7 billion in the quarter and $7.7 billion for the LTM.<br><br><br>Capital Deployed:<br><br><br>$3.3 billion in the quarter, driven by U.S. Direct Lending as well as<br>increased public market<br> <br>investment activity in our<br>drawdown funds, and $12.2 billion for the LTM; committed an additional $466 million in<br> <br>the quarter that is not yet deployed.<br> <br>Returns:<br> <br>Gross Credit Composite return of (13.6)% for the quarter, driven by economic and market impacts of<br><br><br>COVID-19 and energy market dislocation.<br><br><br>Credit Composite net return was (13.0)% for 1Q’20.<br><br><br>% Change<br><br><br>% Change<br><br><br>($ in thousands)<br><br><br>1Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Management Fees, Net<br> <br>140,817<br> <br>$<br> <br>147,902<br> <br>$<br> <br>5%<br> <br>530,383<br> <br>$<br> <br>601,689<br> <br>$<br> <br>13%<br> <br>Fee Related Performance Revenues<br> <br>1,103<br> <br>7,915<br> <br>618%<br> <br>1,103<br> <br>20,576<br> <br>n/m<br> <br>Fee Related Compensation<br> <br>(58,674)<br> <br>(69,409)<br> <br>18%<br> <br>(211,513)<br> <br>(240,342)<br> <br>14%<br> <br>Other Operating Expenses<br> <br>(32,239)<br> <br>(38,741)<br> <br>20%<br> <br>(135,700)<br> <br>(167,303)<br> <br>23%<br> <br>Fee Related Earnings<br> <br>51,007<br> <br>$<br> <br>47,667<br> <br>$<br> <br>(7)%<br> <br>184,273<br> <br>$<br> <br>214,620<br> <br>$<br> <br>16%<br> <br>Realized Performance Revenues<br> <br>8,897<br> <br>9,670<br> <br>9%<br> <br>65,969<br> <br>33,510<br> <br>(49)%<br> <br>Realized Performance Compensation<br> <br>(3,371)<br> <br>(2,322)<br> <br>(31)%<br> <br>(34,488)<br> <br>(11,923)<br> <br>(65)%<br> <br>Realized Principal Investment Income<br> <br>3,183<br> <br>3,252<br> <br>2%<br> <br>12,921<br> <br>32,535<br> <br>152%<br> <br>Net Realizations<br> <br>8,709<br> <br>10,600<br> <br>22%<br> <br>44,402<br> <br>54,122<br> <br>22%<br> <br>Segment Distributable Earnings<br> <br>59,716<br> <br>$<br> <br>58,267<br> <br>$<br> <br>(2)%<br> <br>228,675<br> <br>$<br> <br>268,742<br> <br>$<br> <br>18%<br> <br>Segment Revenues<br> <br>154,000<br> <br>$<br> <br>168,739<br> <br>$<br> <br>10%<br> <br>610,376<br> <br>$<br> <br>688,310<br> <br>$<br> <br>13%<br> <br>Total AUM<br> <br>132,272,199<br> <br>$<br> <br>128,655,761<br> <br>$<br> <br>(3)%<br> <br>132,272,199<br> <br>$<br> <br>128,655,761<br> <br>$<br> <br>(3)%<br> <br>Fee-Earning AUM<br> <br>99,676,478<br> <br>$<br> <br>96,115,338<br> <br>$<br> <br>(4)%<br> <br>99,676,478<br> <br>$<br> <br>96,115,338<br> <br>$<br> <br>(4)%
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<br> <br>Supplemental Details<br> <br>Blackstone<br> <br> <br> <br>14
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<br> <br>Blackstone <br> <br>15<br> <br>($ in thousands)<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>Base Management Fees<br> <br>757,518<br> <br>$<br> <br>805,315<br> <br>$<br> <br>809,729<br> <br>$<br> <br>873,368<br> <br>$<br> <br>910,396<br> <br>$<br> <br>2,894,687<br> <br>$<br> <br>3,398,808<br> <br>$<br> <br>Transaction, Advisory and Other Fees, Net<br> <br>65,150<br> <br><br> <br>61,495<br> <br><br> <br>92,702<br> <br><br> <br>95,073<br> <br><br> <br>50,665<br> <br><br> <br>257,582<br> <br><br> <br>299,935<br> <br><br> <br>Management Fee Offsets<br> <br>(8,606)<br> <br><br> <br>(22,654)<br> <br><br> <br>(22,086)<br> <br><br> <br>(22,768)<br> <br><br> <br>(20,494)<br> <br><br> <br>(37,799)<br> <br><br> <br>(88,002)<br> <br><br> <br>Total Management and Advisory Fees, Net<br> <br>814,062<br> <br><br> <br>844,156<br> <br><br> <br>880,345<br> <br><br> <br>945,673<br> <br><br> <br>940,567<br> <br><br> <br>3,114,470<br> <br><br> <br>3,610,741<br> <br><br> <br>Fee Related Performance Revenues<br> <br>7,779<br> <br><br><br><br>13,624<br><br><br><br> <br>34,225<br><br><br><br> <br>156,373<br><br><br><br><br><br>12,466<br><br><br><br> <br>127,778<br><br><br><br><br><br>216,688<br><br><br><br><br><br>Fee Related Compensation<br><br><br>(324,031)<br><br><br><br><br><br>(293,834)<br><br><br><br><br><br>(329,834)<br><br><br><br><br><br>(388,879)<br><br><br><br><br><br>(346,264)<br><br><br><br><br><br>(1,244,103)<br><br><br><br><br><br>(1,358,811)<br><br><br><br><br><br>Other Operating Expenses<br><br><br>(123,311)<br><br><br><br><br><br>(142,121)<br><br><br><br><br><br>(144,351)<br><br><br><br><br><br>(161,359)<br><br><br><br><br><br>(138,885)<br><br><br><br><br><br>(504,547)<br><br><br><br><br><br>(586,716)<br><br><br><br><br><br>Fee Related Earnings<br><br><br>374,499<br><br><br>$<br><br><br>421,825<br><br><br>$<br><br><br>440,385<br><br><br>$<br><br><br>551,808<br><br><br>$<br><br><br>467,884<br><br><br>$<br><br><br>1,493,598<br><br><br>$<br><br><br>1,881,902<br><br><br>$<br><br><br>Realized Performance Revenues<br><br><br>246,769<br><br><br><br><br><br>341,386<br><br><br><br><br><br>420,840<br><br><br><br><br><br>651,647<br><br><br><br><br><br>167,233<br><br><br><br><br><br>1,780,169<br><br><br><br><br><br>1,581,106<br><br><br><br><br><br>Realized Performance Compensation<br><br><br>(85,240)<br><br><br><br><br><br>(125,466)<br><br><br><br><br><br>(143,870)<br><br><br><br><br><br>(249,359)<br><br><br><br><br><br>(71,302)<br><br><br><br><br><br>(648,552)<br><br><br><br><br><br>(589,997)<br><br><br><br><br><br>Realized Principal Investment Income<br><br><br>25,908<br><br><br><br> <br>123,557<br><br><br><br><br><br>36,148<br><br><br><br> <br>38,542<br><br><br><br> <br>20,290<br><br><br><br> <br>233,273<br><br><br><br><br><br>218,537<br><br><br><br><br><br>Total Net Realizations<br><br><br>187,437<br><br><br><br><br><br>339,477<br><br><br><br><br><br>313,118<br><br><br><br><br><br>440,830<br><br><br><br><br><br>116,221<br><br><br><br><br><br>1,364,890<br><br><br><br><br><br>1,209,646<br><br><br><br><br><br>Total Segment Distributable Earnings<br><br><br>561,936<br><br><br>$<br><br><br>761,302<br><br><br>$<br><br><br>753,503<br><br><br>$<br><br><br>992,638<br><br><br>$<br><br><br>584,105<br><br><br>$<br><br><br>2,858,488<br><br><br>$<br><br><br>3,091,548<br><br><br>$<br><br><br>Net Interest Income (Loss)<br><br><br>5,061<br><br><br><br> <br>2,761<br><br><br><br> <br>(7,767)<br><br><br><br> <br>(2,496)<br><br><br><br> <br>(3,941)<br><br><br><br> <br>28,839<br><br><br><br> <br>(11,443)<br><br><br><br><br><br>Taxes and Related Payables<br><br><br>(29,039)<br><br><br><br><br><br>(55,201)<br><br><br><br><br><br>(35,815)<br><br><br><br><br><br>(76,104)<br><br><br><br><br><br>(23,053)<br><br><br><br><br><br>(157,862)<br><br><br><br><br><br>(190,173)<br><br><br><br><br><br>Distributable Earnings<br><br><br>537,958<br><br><br>$<br><br><br>708,862<br><br><br>$<br><br><br>709,921<br><br><br>$<br><br><br>914,038<br><br><br>$<br><br><br>557,111<br><br><br>$<br><br><br>2,729,465<br><br><br>$<br><br><br>2,889,932<br><br><br>$<br><br><br>Additional Metrics:<br><br><br>Total Segment Revenues<br><br><br>1,094,518<br><br><br>$<br><br><br>1,322,723<br><br><br>$<br><br><br>1,371,558<br><br><br>$<br><br><br>1,792,235<br><br><br>$<br><br><br>1,140,556<br><br><br>$<br><br><br>5,255,690<br><br><br>$<br><br><br>5,627,072<br><br><br>$<br><br><br>Total Assets Under Management<br><br><br>511,777,762<br><br><br>$<br> <br>545,482,337<br> <br>$<br> <br>554,022,343<br> <br>$<br> <br>571,122,463<br> <br>$<br> <br>538,007,285<br> <br>$<br> <br>511,777,762<br> <br>$<br> <br>538,007,285<br> <br>$<br> <br>Fee-Earning Assets Under Management<br> <br>352,993,394<br> <br>$<br> <br>387,864,642<br> <br>$<br> <br>394,138,443<br> <br>$<br> <br>408,074,852<br> <br>$<br> <br>423,055,037<br> <br>$<br> <br>352,993,394<br> <br>$<br> <br>423,055,037<br> <br>$<br> <br>TOTAL SEGMENTS
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<br> <br>Blackstone <br> <br>16<br> <br>Total AUM Rollforward<br> <br>($ in millions)<br> <br>Fee-Earning AUM Rollforward<br> <br>($ in millions)<br> <br>Inflows include contributions, capital raised, other increases in available capital, purchases, inter-segment allocations and<br>acquisitions. Outflows represent<br> <br>redemptions, client<br>withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity<br> <br>represents gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. AUM is reported in the<br>segment where the assets are<br> <br>managed.<br><br><br>Three Months Ended March 31, 2020<br><br><br>Twelve Months Ended March 31, 2020<br><br><br>Real<br> <br>Private<br> <br>Hedge Fund<br> <br>Credit &<br> <br>Real<br> <br>Private<br> <br>Hedge Fund<br> <br>Credit &<br> <br>Estate<br> <br>Equity<br> <br>Solutions<br> <br>Insurance<br> <br>Estate<br> <br>Equity<br> <br>Solutions<br> <br>Insurance<br> <br>Beginning Balance<br> <br>163,156<br> <br>$<br> <br>182,886<br> <br>$<br> <br>80,738<br> <br>$<br> <br>144,342<br> <br>$<br> <br>571,122<br> <br>$<br> <br>140,334<br> <br>$<br> <br>158,989<br> <br>$<br> <br>80,183<br> <br>$<br> <br>132,272<br> <br>$<br> <br>511,778<br> <br>$<br> <br>Inflows<br> <br>12,653<br> <br>8,869<br> <br>3,247<br> <br>2,544<br> <br>27,313<br> <br>41,810<br> <br>37,234<br> <br>12,921<br> <br>26,818<br> <br>118,783<br> <br>Outflows<br> <br>(794)<br> <br>(398)<br> <br>(2,881)<br> <br>(2,841)<br> <br>(6,915)<br> <br>(2,308)<br> <br>(1,221)<br> <br>(14,207)<br> <br>(9,915)<br> <br>(27,652)<br> <br>Net Flows<br> <br>11,859<br> <br>8,470<br> <br>365<br> <br>(297)<br> <br>20,398<br> <br>39,502<br> <br>36,013<br> <br>(1,287)<br> <br>16,903<br> <br>91,131<br> <br>Realizations<br> <br>(2,519)<br> <br>(2,031)<br> <br>(139)<br> <br>(1,700)<br> <br>(6,389)<br> <br>(17,559)<br> <br>(11,829)<br> <br>(1,224)<br> <br>(7,718)<br> <br>(38,330)<br> <br>Market Activity<br> <br>(11,562)<br> <br>(14,629)<br> <br>(7,244)<br> <br>(13,689)<br> <br>(47,124)<br> <br>(1,342)<br> <br>(8,477)<br> <br>(3,951)<br> <br>(12,801)<br> <br>(26,571)<br> <br>Ending Balance<br> <br>160,935<br> <br>$<br> <br>174,696<br> <br>$<br> <br>73,721<br> <br>$<br> <br>128,656<br> <br>$<br> <br>538,007<br> <br>$<br> <br>160,935<br> <br>$<br> <br>174,696<br> <br>$<br> <br>73,721<br> <br>$<br> <br>128,656<br> <br>$<br> <br>538,007<br> <br>$<br> <br>% Change<br> <br>(1)%<br> <br>(4)%<br> <br>(9)%<br> <br>(11)%<br> <br>(6)%<br> <br>15%<br> <br>10%<br> <br>(8)%<br> <br>(3)%<br> <br>5%<br> <br>Total<br> <br>Total<br> <br>Three Months Ended March 31, 2020<br> <br>Twelve Months Ended March 31, 2020<br> <br>Real<br> <br>Private<br> <br>Hedge Fund<br> <br>Credit &<br> <br>Real<br> <br>Private<br> <br>Hedge Fund<br> <br>Credit &<br> <br>Estate<br> <br>Equity<br> <br>Solutions<br> <br>Insurance<br> <br>Estate<br> <br>Equity<br> <br>Solutions<br> <br>Insurance<br> <br>Beginning Balance<br> <br>128,214<br> <br>$<br> <br>97,774<br> <br>$<br> <br>75,636<br> <br>$<br> <br>106,451<br> <br>$<br> <br>408,075<br> <br>$<br> <br>94,223<br> <br>$<br> <br>85,447<br> <br>$<br> <br>73,647<br> <br>$<br> <br>99,676<br> <br>$<br> <br>352,993<br> <br>$<br> <br>Inflows<br> <br>9,429<br> <br>35,326<br> <br>2,367<br> <br>3,636<br> <br>50,758<br> <br>59,120<br> <br>53,924<br> <br>12,221<br> <br>20,839<br> <br>146,104<br> <br>Outflows<br> <br>(1,011)<br> <br>(3,612)<br> <br>(2,652)<br> <br>(2,741)<br> <br>(10,016)<br> <br>(10,436)<br> <br>(5,237)<br> <br>(12,513)<br> <br>(8,566)<br> <br>(36,752)<br> <br>Net Flows<br> <br>8,418<br> <br>31,714<br> <br>(285)<br> <br>895<br> <br>40,742<br> <br>48,683<br> <br>48,687<br> <br>(293)<br> <br>12,273<br> <br>109,351<br> <br>Realizations<br> <br>(2,698)<br> <br>(925)<br> <br>(135)<br> <br>(1,430)<br> <br>(5,188)<br> <br>(11,838)<br> <br>(5,577)<br> <br>(1,124)<br> <br>(6,092)<br> <br>(24,631)<br> <br>Market Activity<br> <br>(3,510)<br> <br>(261)<br> <br>(7,002)<br> <br>(9,800)<br> <br>(20,573)<br> <br>(644)<br> <br>(256)<br> <br>(4,016)<br> <br>(9,742)<br> <br>(14,658)<br> <br>Ending Balance<br> <br>130,424<br> <br>$<br> <br>128,301<br> <br>$<br> <br>68,214<br> <br>$<br> <br>96,115<br> <br>$<br> <br>423,055<br> <br>$<br> <br>130,424<br> <br>$<br> <br>128,301<br> <br>$<br> <br>68,214<br> <br>$<br> <br>96,115<br> <br>$<br> <br>423,055<br> <br>$<br> <br>% Change<br> <br>2%<br> <br>31%<br> <br>(10)%<br> <br>(10)%<br> <br>4%<br> <br>38%<br> <br>50%<br> <br>(7)%<br> <br>(4)%<br> <br>20%<br> <br>Total<br> <br>Total<br> <br>ASSETS UNDER MANAGEMENT - ROLLFORWARD
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<br> <br>Blackstone <br> <br>17<br> <br>DECONSOLIDATED BALANCE SHEET HIGHLIGHTS<br> <br>At March 31, 2020, Blackstone had $4.2 billion in total cash, cash equivalents, and corporate treasury investments<br><br><br>and $8.0<br><br><br>billion of cash and net investments, or $6.69 per share.<br><br><br>Blackstone has a $1.6 billion undrawn credit revolver and maintains<br>A+/A+ ratings.<br> <br>Balance Sheet Highlights exclude the<br>consolidated Blackstone Funds. GP/Fund Investments include Blackstone investments in Real Estate, Private Equity,<br> <br>Hedge Fund Solutions, and Credit & Insurance, which were $689 million, $609 million, $100 million, and $230 million,<br>respectively, as of March 31, 2020.<br> <br>Cash and Net<br>Investments per share amounts are calculated using period end DE Shares Outstanding (see page 23, Share Summary).<br> <br>A+ / A+<br> <br>rated by S&P and Fitch<br> <br>$1.6B<br> <br>undrawn credit revolver<br> <br>with September 2023 maturity<br> <br>$4.2B<br> <br>total cash<br> <br>and corporate treasury<br> <br>Cash and Net Investments<br> <br>(per share)<br> <br>($ in millions)<br> <br>1Q'20<br> <br>Cash and Cash Equivalents<br> <br>2,068<br> <br>$<br> <br>Corporate Treasury<br> <br>Investments<br> <br>2,113<br> <br>GP/Fund Investments<br> <br>1,627<br> <br>Net Accrued Performance<br> <br>Revenues<br> <br>2,187<br> <br>Cash and Net Investments<br> <br>7,996<br> <br>$<br> <br>Outstanding Bonds (at par)<br> <br>4,655
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<br> <br>Blackstone <br> <br>18<br> <br>1Q’20 QoQ<br> <br>Rollforward<br> <br>($ in millions)<br> <br>1Q’20 LTM Rollforward<br> <br>($ in millions)<br> <br>Net<br> <br>Accrued<br> <br>Performance<br> <br>Revenues<br> <br>(“NAPR”)<br> <br>are<br> <br>presented<br> <br>net<br> <br>of<br> <br>performance<br> <br>compensation<br> <br>and<br> <br>do<br> <br>not<br> <br>include<br> <br>clawback<br> <br>amounts,<br> <br>if<br> <br>any,<br> <br>which<br> <br>are<br> <br>disclosed<br> <br>in the 10-K/Q. See additional notes on page 33.<br> <br>($ in millions, except per share data)<br> <br>1Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'20<br> <br>Per Share<br> <br>Real Estate<br> <br>BREP IV<br> <br>1<br> <br>$<br><br><br>11<br> <br>$<br><br><br>8<br> <br>$<br><br><br>0.01<br> <br>$<br> <br>BREP V<br> <br>62<br> <br>19<br> <br>-<br> <br>-<br> <br>BREP VI<br> <br>88<br> <br>76<br> <br>51<br> <br>0.04<br> <br>BREP VII<br> <br>552<br> <br>445<br> <br>309<br> <br>0.26<br> <br>BREP VIII<br> <br>464<br> <br>674<br> <br>517<br> <br>0.43<br> <br>BREP IX<br> <br>-<br> <br>6<br> <br>-<br> <br>-<br> <br>BREP International II<br> <br>7<br> <br>-<br> <br>-<br> <br>-<br> <br>BREP Europe IV<br> <br>209<br> <br>158<br> <br>123<br> <br>0.10<br> <br>BREP Europe V<br> <br>133<br> <br>193<br> <br>110<br> <br>0.09<br> <br>BREP Asia I<br> <br>136<br> <br>152<br> <br>85<br> <br>0.07<br> <br>BREP Asia II<br> <br>-<br> <br>22<br> <br>-<br> <br>-<br> <br>BPP<br> <br>245<br> <br>281<br> <br>196<br> <br>0.16<br> <br>BREIT<br> <br>11<br> <br>-<br> <br>-<br> <br>-<br> <br>BREDS<br> <br>17<br> <br>33<br> <br>2<br> <br>0.00<br> <br>BTAS<br> <br>38<br> <br>42<br> <br>45<br> <br>0.04<br> <br>Real Estate<br> <br>1,962<br> <br>$<br> <br>2,112<br> <br>$<br> <br>1,446<br> <br>$<br> <br>1.21<br> <br>$<br> <br>Private Equity<br> <br>BCP IV<br> <br>42<br> <br>23<br> <br>23<br> <br>0.02<br> <br>BCP VI<br> <br>789<br> <br>705<br> <br>283<br> <br>0.24<br> <br>BCP VII<br> <br>256<br> <br>471<br> <br>115<br> <br>0.10<br> <br>BCP Asia<br> <br>6<br> <br>17<br> <br>14<br> <br>0.01<br> <br>BEP I<br> <br>131<br> <br>102<br> <br>-<br> <br>-<br> <br>BEP II<br> <br>69<br> <br>-<br> <br>-<br> <br>-<br> <br>BCEP<br> <br>21<br> <br>46<br> <br>33<br> <br>0.03<br> <br>Tactical Opportunities<br> <br>157<br> <br>157<br> <br>36<br> <br>0.03<br> <br>Secondaries<br> <br>109<br> <br>144<br> <br>136<br> <br>0.11<br> <br>Life Sciences<br> <br>1<br> <br>7<br> <br>7<br> <br>0.01<br> <br>BTAS/Other<br> <br>51<br> <br>62<br> <br>73<br> <br>0.06<br> <br>Private Equity<br> <br>1,630<br> <br>$<br> <br>1,735<br> <br>$<br> <br>720<br> <br>$<br><br><br>0.60<br> <br>$<br> <br>Hedge Fund Solutions<br> <br>24<br> <br>$<br><br><br>15<br> <br>$<br><br><br>15<br> <br>$<br><br><br>0.01<br> <br>$<br> <br>Credit & Insurance<br> <br>221<br> <br>$<br><br><br>237<br> <br>$<br><br><br>6<br> <br>$<br><br><br>0.00<br> <br>$<br><br><br>Net Accrued Performance Revenues<br><br><br>3,837<br> <br>$<br> <br>4,099<br> <br>$<br> <br>2,187<br> <br>$<br> <br>1.83<br> <br>$<br> <br>4Q'19<br> <br>Net<br> <br>Performance<br> <br>Revenues<br> <br>Net<br> <br>Realized<br> <br>Distributions<br> <br>1Q'20<br> <br>Real Estate<br> <br>2,112<br> <br>$<br> <br>(633)<br> <br>$<br> <br>(33)<br> <br>$<br><br><br>1,446<br><br><br>$<br><br><br>Private Equity<br><br><br>1,735<br><br><br>(957)<br><br><br>(57)<br> <br>720<br> <br>HFS<br> <br>15<br> <br>1<br> <br>(1)<br> <br>15<br> <br>Credit &<br> <br>Insurance<br> <br>237<br> <br>(219)<br> <br>(12)<br> <br>6<br> <br>Total<br> <br>4,099<br> <br>$<br> <br>(1,808)<br> <br>$<br> <br>(103)<br> <br>$<br> <br>2,187<br> <br>$<br> <br>QoQ Change<br> <br>(47)%<br> <br>1Q'19<br> <br>Net<br> <br>Performance<br> <br>Revenues<br> <br>Net<br> <br>Realized<br> <br>Distributions<br> <br>1Q'20<br> <br>Real Estate<br> <br>1,962<br> <br>$<br> <br>242<br> <br>$<br><br><br>(759)<br><br><br>$<br> <br>1,446<br><br><br>$<br><br><br>Private Equity<br><br><br>1,630<br><br><br>(670)<br><br><br>(239)<br><br><br>720<br> <br>HFS<br> <br>24<br> <br>84<br> <br>(93)<br> <br>15<br> <br>Credit &<br> <br>Insurance<br> <br>221<br> <br>(166)<br> <br>(49)<br> <br>6<br> <br>Total<br> <br>3,837<br> <br>$<br> <br>(510)<br> <br>$<br> <br>(1,140)<br> <br>$<br> <br>2,187<br> <br>$<br> <br>YoY Change<br> <br>(43)%<br> <br>NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL
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<br> <br>Blackstone <br> <br>19<br> <br>Notes<br> <br>on<br> <br>page<br> <br>21.<br> <br>BREP<br> <br>–<br> <br>Blackstone<br> <br>Real<br> <br>Estate<br> <br>Partners,<br> <br>BREIT<br> <br>–<br> <br>Blackstone<br> <br>Real<br> <br>Estate<br> <br>Income<br> <br>Trust,<br> <br>BPP<br> <br>–<br> <br>Blackstone<br> <br>Property<br> <br>Partners,<br> <br>BREDS –<br> <br>Blackstone<br> <br>Real<br> <br>Estate<br> <br>Debt<br> <br>Strategies,<br> <br>BCP<br> <br>–<br> <br>Blackstone<br> <br>Capital<br> <br>Partners,<br> <br>BCOM<br> <br>–<br> <br>Blackstone<br> <br>Communications.<br> <br>* Represents<br> <br>funds<br> <br>that<br> <br>are<br> <br>currently<br> <br>in<br> <br>their<br> <br>investment<br> <br>period<br> <br>and<br> <br>open<br> <br>ended<br> <br>funds.<br> <br>($ in thousands, except where noted)<br> <br>Committed<br> <br>Available<br> <br>Unrealized Investments<br> <br>Realized Investments<br> <br>Total Investments<br> <br>Net IRRs (d)<br> <br>Fund (Investment Period Beginning Date / Ending Date)<br> <br>Capital<br> <br>Capital (b)<br> <br>Value<br> <br>MOIC (c)<br> <br>Value<br> <br>MOIC (c)<br> <br>Value<br> <br>MOIC (c)<br> <br>Realized<br> <br>Total<br> <br>Real Estate<br> <br>Pre-BREP<br> <br>140,714<br> <br>$<br> <br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>n/a<br> <br>345,190<br> <br>$<br> <br>2.5x<br> <br>345,190<br> <br>$<br><br><br>2.5x<br> <br>33%<br> <br>33%<br> <br>BREP I (Sep 1994 / Oct 1996)<br> <br>380,708<br> <br>-<br> <br>-<br> <br>n/a<br> <br>1,327,708<br> <br>2.8x<br> <br>1,327,708<br> <br>2.8x<br> <br>40%<br> <br>40%<br> <br>BREP II (Oct 1996 / Mar 1999)<br> <br>1,198,339<br> <br>-<br> <br>-<br> <br>n/a<br> <br>2,531,614<br> <br>2.1x<br> <br>2,531,614<br> <br>2.1x<br> <br>19%<br> <br>19%<br> <br>BREP III (Apr 1999 / Apr 2003)<br> <br>1,522,708<br> <br>-<br> <br>-<br> <br>n/a<br> <br>3,330,406<br> <br>2.4x<br> <br>3,330,406<br> <br>2.4x<br> <br>21%<br> <br>21%<br> <br>BREP IV (Apr 2003 / Dec 2005)<br> <br>2,198,694<br> <br>-<br> <br>50,342<br> <br>0.1x<br> <br>4,521,164<br> <br>2.2x<br> <br>4,571,506<br> <br>1.7x<br> <br>28%<br> <br>12%<br> <br>BREP V (Dec 2005 / Feb 2007)<br> <br>5,539,418<br> <br>-<br> <br>150,992<br> <br>0.6x<br> <br>13,040,016<br> <br>2.4x<br> <br>13,191,008<br> <br>2.3x<br> <br>12%<br> <br>11%<br> <br>BREP VI (Feb 2007 / Aug 2011)<br> <br>11,060,444<br> <br>-<br> <br>646,626<br> <br>2.3x<br> <br>27,045,357<br> <br>2.5x<br> <br>27,691,983<br> <br>2.5x<br> <br>13%<br> <br>13%<br> <br>BREP VII (Aug 2011 / Apr 2015)<br> <br>13,496,823<br> <br>1,874,491<br> <br>6,063,694<br> <br>1.4x<br> <br>22,735,792<br> <br>2.1x<br> <br>28,799,486<br> <br>1.9x<br> <br>22%<br> <br>15%<br> <br>BREP VIII (Apr 2015 / Jun 2019)<br> <br>16,545,433<br> <br>3,052,617<br> <br>16,560,812<br> <br>1.3x<br> <br>7,110,842<br> <br>1.7x<br> <br>23,671,654<br> <br>1.4x<br> <br>26%<br> <br>12%<br> <br>*BREP IX (Jun 2019 / Dec 2024)<br> <br>20,891,657<br> <br>16,015,834<br> <br>4,813,344<br> <br>1.0x<br> <br>140,918<br> <br>1.8x<br> <br>4,954,262<br> <br>1.0x<br> <br>n/m<br> <br>n/m<br> <br>Total Global BREP<br> <br>72,974,938<br> <br>$<br> <br>20,942,942<br> <br>$<br> <br>$28,285,810<br> <br>1.2x<br> <br>82,129,007<br> <br>$<br> <br>2.2x<br> <br>110,414,817<br> <br>$<br> <br>1.9x<br> <br>18%<br> <br>15%<br> <br>BREP Int'l (Jan 2001 / Sep 2005)<br> <br>824,172<br> <br>€<br> <br>-<br> <br>€<br> <br>-<br> <br>€<br> <br>n/a<br> <br>1,373,170<br> <br>€<br> <br>2.1x<br> <br>1,373,170<br> <br>€<br> <br>2.1x<br> <br>23%<br> <br>23%<br> <br>BREP Int'l II (Sep 2005 / Jun 2008) (e)<br> <br>1,629,748<br> <br>-<br> <br>3,566<br> <br>n/a<br> <br>2,572,920<br> <br>1.8x<br> <br>2,576,486<br> <br>1.8x<br> <br>8%<br> <br>8%<br> <br>BREP Europe III (Jun 2008 / Sep 2013)<br> <br>3,205,167<br> <br>469,493<br> <br>446,619<br> <br>0.7x<br> <br>5,737,320<br> <br>2.5x<br> <br>6,183,939<br> <br>2.1x<br> <br>20%<br> <br>14%<br> <br>BREP Europe IV (Sep 2013 / Dec 2016)<br> <br>6,709,145<br> <br>1,351,071<br> <br>2,742,370<br> <br>1.4x<br> <br>8,988,619<br> <br>2.0x<br> <br>11,730,989<br> <br>1.8x<br> <br>23%<br> <br>16%<br> <br>BREP Europe V (Dec 2016 / Oct 2019)<br> <br>7,945,251<br> <br>1,762,669<br> <br>7,309,063<br> <br>1.2x<br> <br>721,076<br> <br>2.7x<br> <br>8,030,139<br> <br>1.3x<br> <br>53%<br> <br>9%<br> <br>*BREP Europe VI (Oct 2019 / Apr 2025)<br> <br>9,797,734<br> <br>8,833,563<br> <br>994,596<br> <br>1.0x<br> <br>-<br> <br>n/a<br> <br>994,596<br> <br>1.0x<br> <br>n/m<br> <br>n/m<br> <br>Total BREP Europe<br> <br>30,111,217<br> <br>€<br> <br>12,416,796<br> <br>€<br> <br>11,496,214<br> <br>€<br> <br>1.2x<br> <br>19,393,105<br> <br>€<br> <br>2.1x<br> <br>30,889,319<br> <br>€<br> <br>1.6x<br> <br>16%<br> <br>13%<br> <br>BREP Asia I (Jun 2013 / Dec 2017)<br> <br>5,096,753<br> <br>$<br> <br>1,728,262<br> <br>$<br> <br>3,186,403<br> <br>$<br> <br>1.3x<br> <br>4,072,708<br> <br>$<br> <br>1.9x<br> <br>7,259,111<br> <br>$<br> <br>1.6x<br> <br>21%<br> <br>12%<br> <br>*BREP Asia II (Dec 2017 / Jun 2023)<br> <br>7,302,307<br> <br>4,768,630<br> <br>2,657,881<br> <br>1.1x<br> <br>120,378<br> <br>1.6x<br> <br>2,778,259<br> <br>1.1x<br> <br>n/m<br> <br>(2)%<br> <br>BREP Co-Investment (f)<br> <br>7,055,974<br> <br>170,047<br> <br>1,535,066<br> <br>2.1x<br> <br>13,284,359<br> <br>2.1x<br> <br>14,819,425<br> <br>2.1x<br> <br>15%<br> <br>16%<br> <br>Total BREP<br> <br>125,853,226<br> <br>$<br> <br>41,306,848<br> <br>$<br> <br>48,901,532<br> <br>$<br> <br>1.2x<br> <br>124,071,007<br> <br>$<br> <br>2.2x<br> <br>172,972,539<br> <br>$<br> <br>1.8x<br> <br>17%<br> <br>15%<br> <br>*Core+ BPP (Various) (g)<br> <br>n/a<br> <br>n/a<br> <br>31,614,603<br> <br>n/a<br> <br>6,726,049<br> <br>n/a<br> <br>38,340,652<br> <br>n/a<br> <br>n/m<br> <br>8%<br> <br>*Core+ BREIT (Various) (h)<br> <br>n/a<br> <br>n/a<br> <br>16,287,116<br> <br>n/a<br> <br>353,170<br> <br>n/a<br> <br>16,640,286<br> <br>n/a<br> <br>n/m<br> <br>6%<br> <br>*BREDS High-Yield (Various) (i)<br> <br>16,528,666<br> <br>7,240,067<br> <br>2,692,832<br> <br>1.0x<br> <br>12,248,508<br> <br>1.3x<br> <br>14,941,340<br> <br>1.2x<br> <br>11%<br> <br>9%<br> <br>Private Equity<br> <br>Corporate Private Equity<br> <br>BCP I (Oct 1987 / Oct 1993)<br> <br>859,081<br> <br>$<br> <br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>n/a<br> <br>1,741,738<br> <br>$<br> <br>2.6x<br> <br>1,741,738<br> <br>$<br> <br>2.6x<br> <br>19%<br> <br>19%<br> <br>BCP II (Oct 1993 / Aug 1997)<br> <br>1,361,100<br> <br>-<br> <br>-<br> <br>n/a<br> <br>3,256,819<br> <br>2.5x<br> <br>3,256,819<br> <br>2.5x<br> <br>32%<br> <br>32%<br> <br>BCP III (Aug 1997 / Nov 2002)<br> <br>3,967,422<br> <br>-<br> <br>-<br> <br>n/a<br> <br>9,184,688<br> <br>2.3x<br> <br>9,184,688<br> <br>2.3x<br> <br>14%<br> <br>14%<br> <br>BCOM (Jun 2000 / Jun 2006)<br> <br>2,137,330<br> <br>24,575<br> <br>13,571<br> <br>n/a<br> <br>2,953,649<br> <br>1.4x<br> <br>2,967,220<br> <br>1.4x<br> <br>6%<br> <br>6%<br> <br>BCP IV (Nov 2002 / Dec 2005)<br> <br>6,773,182<br> <br>197,294<br> <br>182,216<br> <br>2.5x<br> <br>21,417,821<br> <br>2.9x<br> <br>21,600,037<br> <br>2.9x<br> <br>36%<br> <br>36%<br> <br>BCP V (Dec 2005 / Jan 2011)<br> <br>21,013,658<br> <br>1,039,805<br> <br>547,749<br> <br>0.5x<br> <br>37,166,513<br> <br>1.9x<br> <br>37,714,262<br> <br>1.9x<br> <br>9%<br> <br>8%<br> <br>BCP VI (Jan 2011 / May 2016)<br> <br>15,192,985<br> <br>1,462,121<br> <br>8,803,625<br> <br>1.2x<br> <br>15,459,280<br> <br>2.0x<br> <br>24,262,905<br> <br>1.6x<br> <br>18%<br> <br>9%<br> <br>BCP VII (May 2016 / Feb 2020)<br> <br>18,814,389<br> <br>3,712,977<br> <br>16,769,010<br> <br>1.2x<br> <br>1,684,779<br> <br>1.8x<br> <br>18,453,789<br> <br>1.2x<br> <br>47%<br> <br>9%<br> <br>*BCP VIII (Feb 2020 / Feb 2026)<br> <br>25,519,504<br> <br>25,519,504<br> <br>-<br> <br>n/a<br> <br>-<br> <br>n/a<br> <br>-<br> <br>n/a<br> <br>n/a<br> <br>n/a<br> <br>Energy I (Aug 2011 / Feb 2015)<br> <br>2,435,454<br> <br>204,075<br> <br>821,842<br> <br>0.8x<br> <br>2,744,575<br> <br>1.9x<br> <br>3,566,417<br> <br>1.5x<br> <br>17%<br> <br>8%<br> <br>Energy II (Feb 2015 / Feb 2020)<br> <br>4,918,748<br> <br>328,306<br> <br>3,017,136<br> <br>0.7x<br> <br>309,888<br> <br>2.0x<br> <br>3,327,024<br> <br>0.7x<br> <br>64%<br> <br>(24)%<br> <br>*Energy III (Feb 2020 / Feb 2026)<br> <br>4,218,419<br> <br>3,588,893<br> <br>(82,173)<br> <br>n/m<br> <br>-<br> <br>n/a<br> <br>(82,173)<br> <br>n/m<br> <br>n/a<br> <br>n/a<br> <br>*BCP Asia (Dec 2017 / Dec 2023)<br> <br>2,421,776<br> <br>1,303,205<br> <br>1,013,043<br> <br>1.3x<br> <br>54,308<br> <br>1.7x<br> <br>1,067,351<br> <br>1.3x<br> <br>88%<br> <br>15%<br> <br>*Core Private Equity (Jan 2017 / Jan 2021) (j)<br> <br>4,756,716<br> <br>1,384,441<br> <br>4,079,837<br> <br>1.2x<br> <br>418,053<br> <br>1.6x<br> <br>4,497,890<br> <br>1.2x<br> <br>36%<br> <br>10%<br> <br>Total Corporate Private Equity<br> <br>114,389,764<br> <br>$<br> <br>38,765,196<br> <br>$<br> <br>35,165,856<br> <br>$<br> <br>1.1x<br> <br>96,392,111<br> <br>$<br> <br>2.1x<br> <br>131,557,967<br> <br>$<br> <br>1.7x<br> <br>16%<br> <br>14%<br> <br>INVESTMENT RECORDS AS OF MARCH 31, 2020<br> <br><br> <br>(a)
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<br> <br>Blackstone <br> <br>20<br> <br>Notes<br> <br>on<br> <br>page<br> <br>21.<br> <br>BXLS<br> <br>–<br> <br>Blackstone<br> <br>Life<br> <br>Sciences.<br> <br>* Represents funds that are currently in their investment period and open ended funds.<br><br><br>($ in thousands, except where noted)<br><br><br>Committed<br> <br>Available<br> <br>Unrealized Investments<br> <br>Realized Investments<br> <br>Total Investments<br> <br>Net IRRs (d)<br> <br>Fund (Investment Period Beginning Date / Ending Date)<br> <br>Capital<br> <br>Capital (b)<br> <br>Value<br> <br>MOIC (c)<br> <br>Value<br> <br>MOIC (c)<br> <br>Value<br> <br>MOIC (c)<br> <br>Realized<br> <br>Total<br> <br>Private Equity (continued)<br> <br>Tactical Opportunities<br> <br>*Tactical Opportunities (Various)<br> <br>22,572,493<br> <br>$<br> <br>8,879,110<br> <br>$<br> <br>8,426,422<br> <br>$<br> <br>0.9x<br> <br>9,481,153<br> <br>$<br> <br>1.7x<br> <br>17,907,575<br> <br>$<br> <br>1.2x<br> <br>18%<br> <br>5%<br> <br>*Tactical Opportunities Co-Investment and Other (Various)<br> <br>8,514,502<br> <br>2,297,930<br> <br>5,065,155<br> <br>1.2x<br> <br>1,988,734<br> <br>1.6x<br> <br>7,053,889<br> <br>1.3x<br> <br>23%<br> <br>11%<br> <br>Total Tactical Opportunities<br> <br>31,086,995<br> <br>$<br> <br>11,177,040<br> <br>$<br> <br>13,491,577<br> <br>$<br> <br>1.0x<br> <br>11,469,887<br> <br>$<br> <br>1.7x<br> <br>24,961,464<br> <br>$<br> <br>1.3x<br> <br>19%<br> <br>7%<br> <br>Strategic Partners (Secondaries)<br> <br>Strategic Partners I-V (Various) (k)<br> <br>11,865,053<br> <br>1,713,744<br> <br>970,995<br> <br>n/m<br> <br>16,803,497<br> <br>n/m<br> <br>17,774,492<br> <br>1.5x<br> <br>n/a<br> <br>13%<br> <br>Strategic Partners VI (Apr 2014 / Apr 2016) (k)<br> <br>4,362,750<br> <br>1,164,549<br> <br>1,455,316<br> <br>n/m<br> <br>3,171,774<br> <br>n/m<br> <br>4,627,090<br> <br>1.5x<br> <br>n/a<br> <br>15%<br> <br>Strategic Partners VII (May 2016 / Mar 2019) (k)<br> <br>7,489,970<br> <br>2,438,824<br> <br>5,397,627<br> <br>n/m<br> <br>1,754,124<br> <br>n/m<br> <br>7,151,751<br> <br>1.5x<br> <br>n/a<br> <br>21%<br> <br>*Strategic Partners Real Assets II (May 2017 / Mar 2022) (k)<br> <br>1,749,807<br> <br>618,582<br> <br>811,051<br> <br>n/m<br> <br>349,039<br> <br>n/m<br> <br>1,160,090<br> <br>1.2x<br> <br>n/a<br> <br>16%<br> <br>*Strategic Partners VIII (Mar 2019 / Jul 2023) (k)<br> <br>10,763,600<br> <br>5,424,702<br> <br>3,263,413<br> <br>n/m<br> <br>80,727<br> <br>n/m<br> <br>3,344,140<br> <br>1.4x<br> <br>n/a<br> <br>n/m<br> <br>*Strategic Partners Real Estate, SMA and Other (Various) (k)<br> <br>6,840,060<br> <br>2,189,640<br> <br>2,553,670<br> <br>n/m<br> <br>1,256,577<br> <br>n/m<br> <br>3,810,247<br> <br>1.3x<br> <br>n/a<br> <br>16%<br> <br>Total Strategic Partners (Secondaries)<br> <br>43,071,240<br> <br>$<br> <br>13,550,041<br> <br>$<br> <br>14,452,072<br> <br>$<br> <br>n/m<br> <br>23,415,738<br> <br>$<br> <br>n/m<br> <br>37,867,810<br> <br>$<br> <br>1.5x<br> <br>n/a<br> <br>14%<br> <br>*Infrastructure (Various)<br> <br>13,659,163<br> <br>11,309,149<br> <br>2,131,958<br> <br>0.9x<br> <br>-<br> <br>n/a<br> <br>2,131,958<br> <br>0.9x<br> <br>n/a<br> <br>(18)%<br> <br>Life Sciences<br> <br>Clarus IV (Jan 2018 / Jan 2020)<br> <br>910,000<br> <br>470,576<br> <br>554,463<br> <br>1.4x<br> <br>4,992<br> <br>1.2x<br> <br>559,455<br> <br>1.4x<br> <br>18%<br> <br>23%<br> <br>*BXLS V (Jan 2020 / Jan 2025)<br> <br>4,270,552<br> <br>4,037,552<br> <br>21,803<br> <br>1.1x<br> <br>-<br> <br>n/a<br> <br>21,803<br> <br>1.1x<br> <br>n/a<br> <br>n/m<br> <br>Credit (l)<br> <br>Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)<br> <br>2,000,000<br> <br>$<br> <br>97,114<br> <br>$<br><br><br>15,513<br><br><br>$<br> <br>0.8x<br><br><br>4,772,316<br><br><br>$<br><br><br>1.6x<br> <br>4,787,829<br> <br>$<br> <br>1.6x<br> <br>n/a<br> <br>17%<br> <br>Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)<br> <br>4,120,000<br> <br>1,033,255<br> <br>846,611<br> <br>0.6x<br> <br>5,474,187<br> <br>1.6x<br> <br>6,320,798<br> <br>1.3x<br> <br>n/a<br> <br>9%<br> <br>*Mezzanine / Opportunistic III (Sep 2016 / Sep 2021)<br> <br>6,639,133<br> <br>2,530,761<br> <br>4,031,200<br> <br>1.0x<br> <br>1,905,173<br> <br>1.6x<br> <br>5,936,373<br> <br>1.1x<br> <br>n/a<br> <br>6%<br> <br>Stressed / Distressed I (Sep 2009 / May 2013)<br> <br>3,253,143<br> <br>76,000<br> <br>17,897<br> <br>0.0x<br> <br>5,772,945<br> <br>1.6x<br> <br>5,790,842<br> <br>1.3x<br> <br>n/a<br> <br>9%<br> <br>Stressed / Distressed II (Jun 2013 / Jun 2018)<br> <br>5,125,000<br> <br>565,481<br> <br>928,656<br> <br>0.5x<br> <br>4,367,226<br> <br>1.3x<br> <br>5,295,882<br> <br>1.0x<br> <br>n/a<br> <br>(2)%<br> <br>*Stressed / Distressed III (Dec 2017 / Dec 2022)<br> <br>7,356,380<br> <br>4,495,807<br> <br>1,702,749<br> <br>0.8x<br> <br>990,236<br> <br>1.4x<br> <br>2,692,985<br> <br>0.9x<br> <br>n/a<br> <br>(23)%<br> <br>Energy I (Nov 2015 / Nov 2018)<br> <br>2,856,867<br> <br>1,070,297<br> <br>1,216,670<br> <br>0.7x<br> <br>1,036,046<br> <br>1.7x<br> <br>2,252,716<br> <br>1.0x<br> <br>n/a<br> <br>(3)%<br> <br>*Energy II (Feb 2019 / Feb 2024)<br> <br>3,616,081<br> <br>2,920,584<br> <br>652,174<br> <br>0.9x<br> <br>44,826<br> <br>2.8x<br> <br>697,000<br> <br>1.0x<br> <br>n/a<br> <br>n/m<br> <br>Euro<br> <br>European Senior Debt I (Feb 2015 / Feb 2019)<br> <br>1,964,689<br> <br>€<br> <br>324,426<br> <br>€<br> <br>1,601,714<br> <br>€<br> <br>0.9x<br> <br>1,356,846<br> <br>€<br> <br>1.4x<br> <br>2,958,560<br> <br>€<br> <br>1.1x<br> <br>n/a<br> <br>2%<br> <br>*European Senior Debt II (Jun 2019 / Jun 2024)<br> <br>4,088,344<br> <br>€<br> <br>3,615,837<br> <br>€<br> <br>471,370<br> <br>€<br> <br>1.0x<br> <br>-<br> <br>€<br> <br>n/a<br> <br>471,370<br> <br>€<br> <br>1.0x<br> <br>n/a<br> <br>n/m<br> <br>Total Credit<br> <br>41,872,262<br> <br>$<br> <br>17,112,933<br> <br>$<br> <br>11,686,235<br> <br>$<br> <br>0.8x<br> <br>25,896,535<br> <br>$<br> <br>1.5x<br> <br>37,582,770<br> <br>$<br> <br>1.2x<br> <br>n/a<br> <br>7%<br> <br>INVESTMENT RECORDS AS OF MARCH 31, 2020<br> <br>(a)<br> <br>–<br> <br>(CONT’D)
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<br> <br>Blackstone <br> <br>21<br> <br>n/m<br> <br>Not<br> <br>meaningful<br> <br>generally<br> <br>due<br> <br>to<br> <br>the<br> <br>limited<br> <br>time<br> <br>since<br> <br>initial<br> <br>investment.<br> <br>n/a<br> <br>Not<br> <br>applicable.<br> <br>(a)<br> <br>Excludes investment vehicles where Blackstone does not earn fees.<br><br><br>(b)<br> <br>Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses<br>and expired or recallable<br> <br>capital and may include<br>leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.<br> <br>(c)<br> <br>Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance<br>Revenues, divided by<br> <br>invested capital.<br><br><br>(d)<br> <br>Net Internal Rate of Return (“IRR”) represents the annualized inception to March 31, 2020 IRR on total invested capital<br>based<br> <br>on<br><br><br>realized proceeds<br><br><br>and unrealized value, as applicable, after management fees, expenses and<br>Performance Revenues. IRRs are calculated using actual timing<br> <br>of limited partner cash flows. Initial inception date cash flow may differ from the Investment Period Beginning Date.<br><br><br>(e)<br> <br>The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall<br>BREP<br> <br>International II<br><br><br>performance reflects a 7% Realized Net IRR and a 7% Total Net<br>IRR.<br> <br>(f)<br><br><br>BREP Co-Investment represents co-investment capital raised for<br>various BREP investments. The Net IRR reflected is calculated by aggregating each<br> <br>co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance<br>Revenues.<br> <br>(g)<br><br><br>BPP represents the core+ real estate funds which invest with a more<br>modest risk profile and lower leverage. Committed Capital and Available<br> <br>Capital are not regularly reported to investors in our Core+ strategy and are not applicable in the context of these<br>funds.<br> <br>(h)<br><br><br>Unrealized Investment Value reflects BREIT’s net asset value as of<br>March 31, 2020. Realized Investment Value represents BREIT’s cash<br> <br>distributions, net of servicing fees. BREIT net return reflects a per share blended return, assuming BREIT had a single<br>share<br> <br>class, reinvestment of<br><br><br>all dividends received during the period, and no upfront selling<br>commission, net of all fees and expenses incurred by BREIT. These returns are not<br> <br>representative of the returns experienced by any particular investor or share class. Inception to date net returns are<br>presented<br> <br>on an annualized<br><br><br>basis and are from January 1, 2017. Committed Capital and Available<br>Capital are not regularly reported to investors in our Core+ strategy and are<br> <br>not applicable in the context of this vehicle.<br> <br>(i)<br> <br>BREDS High-Yield represents the flagship real estate debt drawdown funds only and excludes BREDS High-Grade.<br><br><br>(j)<br> <br>Blackstone Core Equity Partners is a core private equity fund which invests with a more modest risk profile and longer hold<br>period.<br> <br>(k)<br><br><br>Realizations are treated as return of capital until fully recovered and<br>therefore unrealized and realized MOICs are not meaningful. If information<br> <br>is not available on a timely basis, returns are calculated from results that are reported on a three month lag and therefore do<br>not include the<br> <br>impact of economic activities in the<br>current quarter.<br> <br>(l)<br><br><br>Funds presented represent the flagship credit drawdown funds only. The<br>Total Credit Net IRR is the combined IRR of the credit<br><br><br>drawdown funds<br><br><br>presented.<br><br><br>The returns presented herein represent those of the applicable Blackstone<br>Funds and not those of The Blackstone Group Inc.<br> <br>INVESTMENT<br>RECORDS AS OF MARCH 31, 2020 – NOTES
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<br> <br>Blackstone <br> <br>22<br> <br>SHAREHOLDER DIVIDENDS<br> <br>Generated $0.46 of Distributable Earnings per common share during the quarter, bringing the LTM amount to $2.33<br><br><br>per common share.<br><br><br>Blackstone declared a quarterly dividend of $0.39 per common share to<br>record holders as of May 4, 2020; payable on<br> <br>May 11,<br>2020.<br> <br>A detailed<br><br><br>description<br><br><br>of<br> <br>Blackstone’s<br> <br>dividend<br> <br>policy<br> <br>and<br> <br>the<br> <br>definition<br> <br>of<br> <br>Distributable<br> <br>Earnings<br> <br>can<br> <br>be<br> <br>found<br> <br>on<br> <br>pages<br> <br>34-35,<br> <br>Definitions<br> <br>and<br> <br>Dividend<br> <br>Policy.<br> <br>See additional notes on page 33.<br> <br>% Change<br> <br>% Change<br> <br>($ in thousands, except per share data)<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>vs. 1Q'19<br> <br>1Q'19 LTM<br> <br>1Q'20 LTM<br> <br>vs. 1Q'19 LTM<br> <br>Distributable Earnings<br> <br>537,958<br> <br>$<br> <br>708,862<br> <br>$<br> <br>709,921<br> <br>$<br> <br>914,038<br> <br>$<br> <br>557,111<br> <br>$<br> <br>4%<br> <br>2,729,465<br> <br>$<br> <br>2,889,932<br> <br>$<br> <br>6%<br> <br>Add: Other Payables Attributable<br> <br>to Common Shareholders<br> <br>14,598<br> <br>39,673<br> <br>24,578<br> <br>63,796<br> <br>9,200<br> <br>(37)%<br> <br>110,302<br> <br>137,247<br> <br>24%<br> <br>DE before Certain Payables<br> <br>552,556<br> <br>748,535<br> <br>734,499<br> <br>977,834<br> <br>566,311<br> <br>2%<br> <br>2,839,767<br> <br>3,027,179<br> <br>7%<br> <br>Percent to Common Shareholders<br> <br>56%<br> <br>56%<br> <br>56%<br> <br>57%<br> <br>58%<br> <br>56%<br> <br>57%<br> <br>DE before Certain Payables Attributable to<br> <br>Common Shareholders<br> <br>310,832<br> <br>419,502<br> <br>413,900<br> <br>556,133<br> <br>325,990<br> <br>5%<br> <br>1,601,852<br> <br>1,715,525<br> <br>7%<br> <br>Less: Other Payables Attributable to Common<br> <br>Shareholders<br> <br>(14,598)<br> <br>(39,673)<br> <br>(24,578)<br> <br>(63,796)<br> <br>(9,200)<br> <br>(37)%<br> <br>(110,302)<br> <br>(137,247)<br> <br>24%<br> <br>DE Attributable to Common Shareholders<br> <br>296,234<br> <br>379,829<br> <br>389,322<br> <br>492,337<br> <br>316,790<br> <br>7%<br> <br>1,491,550<br> <br>1,578,278<br> <br>6%<br> <br>DE per Common Share<br> <br>0.44<br> <br>$<br><br><br>0.57<br> <br>$<br><br><br>0.58<br> <br>$<br><br><br>0.72<br> <br>$<br><br><br>0.46<br> <br>$<br><br><br>5%<br> <br>$2.20<br> <br>$2.33<br> <br>6%<br> <br>Less: Retained Capital per Common Share<br> <br>(0.07)<br> <br>$<br><br><br>(0.09)<br><br><br>$<br> <br>(0.09)<br><br><br>$<br> <br>(0.11)<br><br><br>$<br> <br>(0.07)<br><br><br>$<br> <br>-<br><br><br>(0.33)<br><br><br>$<br><br><br>(0.36)<br><br><br>$<br><br><br>9%<br> <br>Special Cash Dividend per Common Share<br> <br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>-<br> <br>$<br><br><br>n/m<br> <br>0.30<br> <br>$<br> <br>-<br> <br>$<br> <br>n/m<br> <br>Actual Dividend per Common Share<br> <br>0.37<br> <br>$<br><br><br>0.48<br> <br>$<br><br><br>0.49<br> <br>$<br><br><br>0.61<br> <br>$<br><br><br>0.39<br> <br>$<br><br><br>5%<br> <br>2.17<br> <br>$<br> <br>1.97<br> <br>$<br> <br>(9)%<br> <br>Record Date<br> <br>May 4, 2020<br> <br>Payable Date<br> <br>May 11, 2020
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<br> <br>Blackstone <br> <br>23<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>Participating Common Shares<br> <br>674,457,578<br> <br><br> <br>669,561,793<br> <br><br> <br>675,640,119<br> <br><br> <br>680,457,424<br> <br><br> <br>687,869,905<br> <br><br><br><br>Participating Partnership Units<br><br><br>524,504,626<br><br><br><br><br><br>525,165,724<br><br><br><br><br><br>523,338,040<br><br><br><br><br><br>515,973,657<br><br><br><br><br><br>507,101,000<br><br><br><br> <br>Distributable Earnings Shares Outstanding<br><br><br>1,198,962,204<br><br><br><br><br><br>1,194,727,517<br><br><br><br><br><br>1,198,978,159<br><br><br><br><br><br>1,196,431,081<br><br><br><br><br><br>1,194,970,905<br><br><br><br><br><br>SHARE SUMMARY<br><br><br>Distributable Earnings Shares Outstanding as of quarter end of 1,195<br>million shares.<br> <br>–<br><br><br>Repurchased 5.0 million common shares in the quarter and 16.2 million<br>common shares for the LTM.<br> <br>–<br><br><br>Available authorization remaining was $528 million at March 31,<br>2020.<br> <br>Notes on page 33.
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<br> <br>Reconciliations and<br> <br>Disclosures<br> <br>Blackstone<br> <br> <br> <br>24
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<br> <br>Blackstone <br> <br>25<br> <br>Notes on page 26-27.<br> <br>QTD<br> <br>LTM<br> <br>($ in thousands)<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>Net Income (Loss) Attributable to The Blackstone Group Inc.<br> <br>481,304<br> <br>$<br> <br>305,792<br> <br>$<br> <br>779,437<br> <br>$<br> <br>483,149<br> <br>$<br> <br>(1,066,492)<br> <br>$<br> <br>1,655,220<br> <br>$<br> <br>501,886<br> <br>$<br> <br>Net Income (Loss) Attributable to Non-Controlling Interests<br> <br>in Blackstone Holdings<br> <br>402,260<br> <br>259,330<br> <br>299,900<br> <br>378,137<br> <br>(880,117)<br> <br>1,447,041<br> <br>57,250<br> <br>Net Income (Loss) Attributable to Non-Controlling Interests<br> <br>in Consolidated Entities<br> <br>186,833<br> <br>80,744<br> <br>88,406<br> <br>120,796<br> <br>(645,077)<br> <br>390,212<br> <br>(355,131)<br> <br>Net Income (Loss) Attributable to Redeemable<br> <br>Non-Controlling Interests in Consolidated Entities<br> <br>2,480<br> <br>1,095<br> <br>(8)<br> <br>(3,688)<br> <br>(15,469)<br> <br>1,651<br> <br>(18,070)<br> <br>Net Income (Loss)<br> <br>1,072,877<br> <br>$<br> <br>646,961<br> <br>$<br> <br>1,167,735<br> <br>$<br> <br>978,394<br> <br>$<br> <br>(2,607,155)<br> <br>$<br> <br>3,494,124<br> <br>$<br> <br>185,935<br> <br>$<br> <br>Provision (Benefit) for Taxes<br> <br>41,155<br> <br>38,736<br> <br>(156,786)<br> <br>28,943<br> <br>(158,703)<br> <br>236,050<br> <br>(247,810)<br> <br>Income (Loss) Before Provision (Benefit) for Taxes<br> <br>1,114,032<br> <br>$<br> <br>685,697<br> <br>$<br> <br>1,010,949<br> <br>$<br> <br>1,007,337<br> <br>$<br> <br>(2,765,858)<br> <br>$<br> <br>3,730,174<br> <br>$<br> <br>(61,875)<br> <br>$<br> <br>Transaction-Related Charges (a)<br> <br>89,451<br> <br>106,994<br> <br>(82,547)<br> <br>94,715<br> <br>46,994<br> <br>(224,954)<br> <br>166,156<br> <br>Amortization of Intangibles (b)<br> <br>16,483<br> <br>16,483<br> <br>16,483<br> <br>16,482<br> <br>16,483<br> <br>61,604<br> <br>65,931<br> <br>Impact of Consolidation (c)<br> <br>(189,313)<br> <br>(81,839)<br> <br>(88,398)<br> <br>(117,108)<br> <br>660,546<br> <br>(391,863)<br> <br>373,201<br> <br>Unrealized Performance Revenues (d)<br> <br>(664,333)<br> <br>(157,398)<br> <br>(176,604)<br> <br>(128,333)<br> <br>3,453,446<br> <br>(597,157)<br> <br>2,991,111<br> <br>Unrealized Performance Allocations Compensation (e)<br> <br>287,015<br> <br>64,518<br> <br>94,907<br> <br>93,845<br> <br>(1,397,378)<br> <br>352,322<br> <br>(1,144,108)<br> <br>Unrealized Principal Investment (Income) Loss (f)<br> <br>(139,925)<br> <br>56,353<br> <br>5,219<br> <br>(34,974)<br> <br>616,610<br> <br>(60,096)<br> <br>643,208<br> <br>Other Revenues (g)<br> <br>(13,189)<br> <br>20,150<br> <br>(92,843)<br> <br>6,435<br> <br>(138,151)<br> <br>(163,551)<br> <br>(204,409)<br> <br>Equity-Based Compensation (h)<br> <br>66,776<br> <br>53,105<br> <br>58,570<br> <br>51,743<br> <br>87,472<br> <br>180,848<br> <br>250,890<br> <br>Taxes and Related Payables (i)<br> <br>(29,039)<br> <br>(55,201)<br> <br>(35,815)<br> <br>(76,104)<br> <br>(23,053)<br> <br>(157,862)<br> <br>(190,173)<br> <br>Distributable Earnings<br> <br>537,958<br> <br>$<br> <br>708,862<br> <br>$<br> <br>709,921<br> <br>$<br> <br>914,038<br> <br>$<br> <br>557,111<br> <br>$<br> <br>2,729,465<br> <br>$<br> <br>2,889,932<br> <br>$<br> <br>Taxes and Related Payables (i)<br> <br>29,039<br> <br>55,201<br> <br>35,815<br> <br>76,104<br> <br>23,053<br> <br>157,862<br> <br>190,173<br> <br>Net Interest (Income) Loss (j)<br> <br>(5,061)<br> <br>(2,761)<br> <br>7,767<br> <br>2,496<br> <br>3,941<br> <br>(28,839)<br> <br>11,443<br> <br>Total Segment Distributable Earnings<br> <br>561,936<br> <br>$<br> <br>761,302<br> <br>$<br> <br>753,503<br> <br>$<br> <br>992,638<br> <br>$<br> <br>584,105<br> <br>$<br> <br>2,858,488<br> <br>$<br> <br>3,091,548<br> <br>$<br> <br>Realized Performance Revenues (k)<br> <br>(246,769)<br> <br>(341,386)<br> <br>(420,840)<br> <br>(651,647)<br> <br>(167,233)<br> <br>(1,780,169)<br> <br>(1,581,106)<br> <br>Realized Performance Compensation (l)<br> <br>85,240<br> <br>125,466<br> <br>143,870<br> <br>249,359<br> <br>71,302<br> <br>648,552<br> <br>589,997<br> <br>Realized Principal Investment Income (m)<br> <br>(25,908)<br> <br>(123,557)<br> <br>(36,148)<br> <br>(38,542)<br> <br>(20,290)<br> <br>(233,273)<br> <br>(218,537)<br> <br>Fee Related Earnings<br> <br>374,499<br> <br>$<br> <br>421,825<br> <br>$<br> <br>440,385<br> <br>$<br> <br>551,808<br> <br>$<br> <br>467,884<br> <br>$<br> <br>1,493,598<br> <br>$<br> <br>1,881,902<br> <br>$<br> <br>Adjusted EBITDA Reconciliation<br> <br>Distributable Earnings<br> <br>537,958<br> <br>$<br> <br>708,862<br> <br>$<br> <br>709,921<br> <br>$<br> <br>914,038<br> <br>$<br> <br>557,111<br> <br>$<br> <br>2,729,465<br> <br>$<br> <br>2,889,932<br> <br>$<br> <br>Interest Expense (n)<br> <br>41,638<br> <br>43,230<br> <br>52,815<br> <br>57,351<br> <br>41,540<br> <br>163,238<br> <br>194,936<br> <br>Taxes and Related Payables (i)<br> <br>29,039<br> <br>55,201<br> <br>35,815<br> <br>76,104<br> <br>23,053<br> <br>157,862<br> <br>190,173<br> <br>Depreciation and Amortization<br> <br>5,789<br> <br>6,000<br> <br>6,895<br> <br>7,666<br> <br>7,512<br> <br>23,420<br> <br>28,073<br> <br>Adjusted EBITDA<br> <br>614,424<br> <br>$<br> <br>813,293<br> <br>$<br> <br>805,446<br> <br>$<br> <br>1,055,159<br> <br>$<br> <br>629,216<br> <br>$<br> <br>3,073,985<br> <br>$<br> <br>3,303,114<br> <br>$<br> <br>RECONCILIATION OF GAAP TO NON-GAAP MEASURES
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<br> <br>Blackstone <br> <br>26<br> <br>Note:<br> <br>See pages 34-35, Definitions and Dividend Policy.<br> <br>(a)<br> <br>This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation.<br>Transaction-Related Charges arise<br> <br>from corporate<br>actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily<br> <br>of<br> <br>equity-based compensation<br> <br>charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement<br>resulting from a change in<br> <br>tax law or similar event,<br>transaction costs and any gains or losses associated with these corporate actions.<br> <br>(b)<br> <br>This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment<br>presentation. This amount<br> <br>includes amortization of<br>intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method.<br> <br>(c)<br> <br>This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment<br>presentation. This adjustment<br> <br>includes the elimination of<br>Blackstone’s interest in these funds and the removal of amounts associated with the ownership of Blackstone consolidated<br> <br>operating partnerships held by non-controlling interests.<br> <br>(d)<br> <br>This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back<br>of<br> <br>performance<br><br><br>revenues earned from consolidated Blackstone Funds which have been<br>eliminated in consolidation.<br> <br>QTD<br><br><br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>GAAP Unrealized Performance Allocations<br> <br>663,999<br> <br>$<br> <br>157,732<br> <br>$<br> <br>176,370<br> <br>$<br> <br>128,231<br> <br>$<br> <br>(3,453,081)<br> <br>$<br> <br>597,283<br> <br>$<br> <br>(2,990,748)<br> <br>$<br> <br>Segment Adjustment<br> <br>334<br> <br><br><br><br>(334)<br><br><br><br> <br>234<br><br><br><br> <br>102<br><br><br><br> <br>(365)<br><br><br><br> <br>(126)<br><br><br><br> <br>(363)<br><br><br><br> <br>Unrealized Performance<br>Revenues<br> <br>664,333<br><br><br>$<br><br><br>157,398<br><br><br>$<br><br><br>176,604<br><br><br>$<br><br><br>128,333<br><br><br>$<br><br><br>(3,453,446)<br><br><br>$<br><br><br>597,157<br><br><br>$<br><br><br>(2,991,111)<br><br><br>$<br><br><br>(e)<br> <br>This adjustment removes Unrealized Performance Allocations Compensation.<br><br><br>(f)<br> <br>This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment represents (1)<br>the add back of<br> <br>Principal Investment Income, including<br>general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation,<br> <br>and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by<br>non-controlling interests.<br> <br>QTD<br><br><br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>GAAP Unrealized Principal Investment Income (Loss)<br> <br>169,044<br> <br>$<br> <br>(37,345)<br> <br>$<br> <br>15,391<br> <br>$<br> <br>67,913<br> <br>$<br> <br>(959,365)<br> <br>$<br> <br>107,187<br> <br>$<br> <br>(913,406)<br> <br>$<br> <br>Segment Adjustment<br> <br>(29,119)<br> <br><br> <br>(19,008)<br> <br><br> <br>(20,610)<br> <br><br> <br>(32,939)<br> <br><br> <br>342,755<br> <br><br> <br>(47,091)<br> <br><br> <br>270,198<br> <br><br> <br>Unrealized Principal Investment Income (Loss)<br> <br>139,925<br> <br>$<br> <br>(56,353)<br> <br>$<br> <br>(5,219)<br> <br>$<br> <br>34,974<br> <br>$<br> <br>(616,610)<br> <br>$<br> <br>60,096<br> <br>$<br> <br>(643,208)<br> <br>$<br> <br>(g)<br> <br>This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues<br>earned from<br> <br>consolidated Blackstone Funds which have been<br>eliminated in consolidation, and (2) the removal of certain Transaction-Related Charges.<br> <br>QTD<br> <br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>GAAP Other Revenue<br> <br>10,250<br> <br>$<br> <br>(17,120)<br> <br>$<br> <br>93,273<br> <br>$<br> <br>(6,410)<br> <br>$<br> <br>138,180<br> <br>$<br> <br>741,884<br> <br>$<br> <br>207,923<br> <br>$<br> <br>Segment Adjustment<br> <br>2,939<br> <br><br><br><br>(3,030)<br><br><br><br> <br>(430)<br><br><br><br> <br>(25)<br><br><br><br> <br>(29)<br><br><br><br> <br>(578,333)<br><br><br><br><br><br>(3,514)<br><br><br><br> <br>Other Revenues<br><br><br>13,189<br><br><br>$<br> <br>(20,150)<br><br><br>$<br><br><br>92,843<br><br><br>$<br> <br>(6,435)<br><br><br>$<br> <br>138,151<br><br><br>$<br><br><br>163,551<br><br><br>$<br><br><br>204,409<br><br><br>$<br><br><br>(h)<br> <br>This adjustment removes Equity-Based Compensation on a segment basis.<br><br><br>RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES
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<br> <br>Blackstone <br> <br>27<br> <br>(i)<br> <br>Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income<br>(Loss) Before Provision<br> <br>(Benefit) for Taxes and adjusted to<br>exclude the tax impact of any divestitures. Related Payables represent tax-related payables including the amount<br> <br>payable under the Tax Receivable Agreement.<br> <br>(j)<br> <br>This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents<br>(1) the add back of<br> <br>Other Revenues earned from<br>consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense<br> <br>associated with the Tax Receivable Agreement.<br> <br>(k)<br> <br>This adjustment removes the total segment amounts of Realized Performance Revenues.<br><br><br>(l)<br> <br>This adjustment removes the total segment amounts of Realized Performance Compensation.<br><br><br>(m)<br> <br>This adjustment removes the total segment amount of Realized Principal Investment Income.<br><br><br>(n)<br> <br>This adjustment adds back Interest Expense on a segment basis.<br> <br>Reconciliation of GAAP Shares of Class A Common Stock Outstanding to Distributable Earnings Shares Outstanding<br><br><br>Disclosure of Weighted-Average Shares of Class A Common Stock<br>Outstanding<br> <br>QTD<br><br><br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>Taxes<br> <br>15,344<br> <br>$<br> <br>34,209<br> <br>$<br> <br>26,933<br> <br>$<br> <br>63,930<br> <br>$<br> <br>16,274<br> <br>$<br> <br>87,138<br> <br>$<br> <br>141,346<br> <br>$<br> <br>Related Payables<br> <br>13,695<br> <br>20,992<br> <br>8,882<br> <br>12,174<br> <br>6,779<br> <br>70,724<br> <br>48,827<br> <br>Taxes and Related Payables<br> <br>29,039<br> <br>$<br> <br>55,201<br> <br>$<br> <br>35,815<br> <br>$<br> <br>76,104<br> <br>$<br> <br>23,053<br> <br>$<br> <br>157,862<br> <br>$<br> <br>190,173<br> <br>$<br> <br>QTD<br> <br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>GAAP Interest and Dividend Revenue<br> <br>44,084<br> <br>$<br> <br>43,686<br> <br>$<br> <br>42,482<br> <br>$<br> <br>52,146<br> <br>$<br> <br>35,084<br> <br>$<br> <br>180,646<br> <br>$<br> <br>173,398<br> <br>$<br> <br>Segment Adjustment<br> <br>2,615<br> <br>2,305<br> <br>2,566<br> <br>2,709<br> <br>2,515<br> <br>11,431<br> <br>10,095<br> <br>Interest and Dividend Revenue<br> <br>46,699<br> <br>$<br> <br>45,991<br> <br>$<br> <br>45,048<br> <br>$<br> <br>54,855<br> <br>$<br> <br>37,599<br> <br>$<br> <br>192,077<br> <br>$<br> <br>183,493<br> <br>$<br> <br>GAAP Interest Expense<br> <br>42,002<br> <br>$<br> <br>43,596<br> <br>$<br> <br>53,362<br> <br>$<br> <br>60,688<br> <br>$<br> <br>41,644<br> <br>$<br> <br>167,321<br> <br>$<br> <br>199,290<br> <br>$<br> <br>Segment Adjustment<br> <br>(364)<br> <br>(366)<br> <br>(547)<br> <br>(3,337)<br> <br>(104)<br> <br>(4,083)<br> <br>(4,354)<br> <br>Interest Expense<br> <br>41,638<br> <br>$<br> <br>43,230<br> <br>$<br> <br>52,815<br> <br>$<br> <br>57,351<br> <br>$<br> <br>41,540<br> <br>$<br> <br>163,238<br> <br>$<br> <br>194,936<br> <br>$<br> <br>Net Interest Income (Loss)<br> <br>5,061<br> <br>$<br> <br>2,761<br> <br>$<br> <br>(7,767)<br> <br>$<br> <br>(2,496)<br> <br>$<br> <br>(3,941)<br> <br>$<br> <br>28,839<br> <br>$<br> <br>(11,443)<br> <br>$<br> <br>QTD<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>GAAP Shares of Class A Common Stock Outstanding<br> <br>665,331,887<br> <br>660,588,369<br> <br>666,257,305<br> <br>671,157,692<br> <br>676,630,489<br> <br>Unvested Participating Common Shares<br> <br>9,125,691<br> <br>8,973,424<br> <br>9,382,814<br> <br>9,299,732<br> <br>11,239,416<br> <br>Total Participating Common Shares<br> <br>674,457,578<br> <br>669,561,793<br> <br>675,640,119<br> <br>680,457,424<br> <br>687,869,905<br> <br>Participating Partnership Units<br> <br>524,504,626<br> <br>525,165,724<br> <br>523,338,040<br> <br>515,973,657<br> <br>507,101,000<br> <br>Distributable Earnings Shares Outstanding<br> <br>1,198,962,204<br> <br>1,194,727,517<br> <br>1,198,978,159<br> <br>1,196,431,081<br> <br>1,194,970,905<br> <br>QTD<br> <br>LTM<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>Total GAAP Weighted-Average Shares of Class A Common Stock<br> <br>Outstanding -<br> <br>Basic<br> <br>674,507,698<br> <br>673,655,305<br> <br>675,963,129<br> <br>679,420,988<br> <br>676,305,359<br> <br>678,857,331<br> <br>678,847,270<br> <br>Weighted-Average Shares of Unvested Deferred Restricted Class<br><br><br>A Common Stock<br><br><br>207,752<br><br><br>330,639<br><br><br>256,629<br><br><br>274,520<br><br><br>-<br> <br>228,692<br> <br>314,450<br> <br>Weighted-Average Blackstone Holdings Partnership Units<br> <br>525,764,790<br> <br>-<br> <br>-<br> <br>-<br> <br>-<br> <br>524,123,434<br> <br>-<br> <br>Total GAAP Weighted-Average Shares of Class A Common Stock<br> <br>Outstanding -<br> <br>Diluted<br> <br>1,200,480,240<br> <br>673,985,944<br> <br>676,219,758<br> <br>679,695,508<br> <br>676,305,359<br> <br>1,203,209,457<br> <br>679,161,720<br> <br>RECONCILIATION OF GAAP TO NON-GAAP MEASURES - NOTES
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<br> <br>Blackstone <br> <br>28<br> <br>See page 29, Reconciliation of GAAP to Non-GAAP Balance Sheet Measures.<br><br><br>($ in thousands) (Unaudited)<br><br><br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>Assets<br> <br>Cash and Cash Equivalents<br> <br>1,570,741<br> <br>$<br> <br>1,484,444<br> <br>$<br> <br>2,468,563<br> <br>$<br> <br>2,172,441<br> <br>$<br> <br>2,068,326<br> <br>$<br> <br>Cash Held by Blackstone Funds and Other<br> <br>217,625<br> <br>324,609<br> <br>375,981<br> <br>351,210<br> <br>318,003<br> <br>Investments<br> <br>21,180,950<br> <br>22,242,040<br> <br>22,204,460<br> <br>22,281,682<br> <br>16,430,701<br> <br>Accounts Receivable<br> <br>711,889<br> <br>802,066<br> <br>755,777<br> <br>975,075<br> <br>696,729<br> <br>Due from Affiliates<br> <br>2,320,291<br> <br>2,211,737<br> <br>2,464,163<br> <br>2,594,873<br> <br>2,706,112<br> <br>Intangible Assets, Net<br> <br>450,757<br> <br>433,007<br> <br>415,257<br> <br>397,508<br> <br>379,758<br> <br>Goodwill<br> <br>1,869,860<br> <br>1,869,860<br> <br>1,869,860<br> <br>1,869,860<br> <br>1,869,860<br> <br>Other Assets<br> <br>302,033<br> <br>354,253<br> <br>402,670<br> <br>382,493<br> <br>541,896<br> <br>Right-of-Use Assets<br> <br>521,932<br> <br>507,065<br> <br>490,882<br> <br>471,059<br> <br>542,757<br> <br>Deferred Tax Assets<br> <br>728,873<br> <br>743,132<br> <br>938,158<br> <br>1,089,305<br> <br>1,392,352<br> <br>Total Assets<br> <br>29,874,951<br> <br>$<br> <br>30,972,213<br> <br>$<br> <br>32,385,771<br> <br>$<br> <br>32,585,506<br> <br>$<br> <br>26,946,494<br> <br>$<br> <br>Liabilities and Equity<br> <br>Loans Payable<br> <br>10,011,155<br> <br>$<br> <br>10,676,138<br> <br>$<br> <br>11,270,245<br> <br>$<br> <br>11,080,723<br> <br>$<br> <br>10,392,903<br> <br>$<br> <br>Due to Affiliates<br> <br>1,045,452<br> <br>1,081,899<br> <br>984,969<br> <br>1,026,871<br> <br>1,247,098<br> <br>Accrued Compensation and Benefits<br> <br>3,001,597<br> <br>3,308,595<br> <br>3,623,258<br> <br>3,796,044<br> <br>1,965,237<br> <br>Securities Sold, Not Yet Purchased<br> <br>128,106<br> <br>128,512<br> <br>87,051<br> <br>75,545<br> <br>51,498<br> <br>Repurchase Agreements<br> <br>218,865<br> <br>207,676<br> <br>163,059<br> <br>154,118<br> <br>105,133<br> <br>Operating Lease Liabilities<br> <br>587,408<br> <br>574,619<br> <br>558,253<br> <br>542,994<br> <br>605,809<br> <br>Accounts Payable, Accrued Expenses and Other Liabilities<br> <br>735,667<br> <br>929,688<br> <br>1,069,475<br> <br>806,159<br> <br>1,000,708<br> <br>Total Liabilities<br> <br>15,728,250<br> <br>16,907,127<br> <br>17,756,310<br> <br>17,482,454<br> <br>15,368,386<br> <br>Redeemable Non-Controlling Interests in Consolidated Entities<br> <br>136,941<br> <br>101,310<br> <br>93,667<br> <br>87,651<br> <br>72,066<br> <br>Equity<br> <br>The Blackstone Group L.P. Partners’ Capital<br> <br>6,501,072<br> <br>6,335,897<br> <br>-<br> <br>-<br> <br>-<br> <br>Class A Common Stock, $0.00001 par value (676,630,489 shares<br> <br>issued and outstanding as of March 31, 2020)<br> <br>-<br> <br>-<br> <br>7<br> <br>7<br> <br>7<br> <br>Class B Common Stock, $0.00001 par value (1 share issued and<br> <br>outstanding as of March 31, 2020)<br> <br>-<br> <br>-<br> <br>-<br> <br>-<br> <br>-<br> <br>Class C Common Stock, $0.00001 par value (1 share issued and<br> <br>outstanding as of March 31, 2020)<br> <br>-<br> <br>-<br> <br>-<br> <br>-<br> <br>-<br> <br>Additional Paid-in-Capital<br> <br>-<br> <br>-<br> <br>6,292,765<br> <br>6,428,647<br> <br>6,298,093<br> <br>Retained Earnings<br> <br>-<br> <br>-<br> <br>456,814<br> <br>609,625<br> <br>(871,948)<br> <br>Accumulated Other Comprehensive Loss<br> <br>(32,430)<br> <br>(27,542)<br> <br>(35,173)<br> <br>(28,495)<br> <br>(41,533)<br> <br>Non-Controlling Interests in Consolidated Entities<br> <br>3,852,346<br> <br>3,869,303<br> <br>4,035,513<br> <br>4,186,069<br> <br>3,591,160<br> <br>Non-Controlling Interests in Blackstone Holdings<br> <br>3,688,772<br> <br>3,786,118<br> <br>3,785,868<br> <br>3,819,548<br> <br>2,530,263<br> <br>Total Equity<br> <br>14,009,760<br> <br>13,963,776<br> <br>14,535,794<br> <br>15,015,401<br> <br>11,506,042<br> <br>Total Liabilities and Equity<br> <br>29,874,951<br> <br>$<br> <br>30,972,213<br> <br>$<br> <br>32,385,771<br> <br>$<br> <br>32,585,506<br> <br>$<br> <br>26,946,494<br> <br>$<br> <br>BLACKSTONE’S FIRST QUARTER 2020 GAAP BALANCE SHEET RESULTS
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<br> <br>Blackstone <br> <br>29<br> <br>(a)<br> <br>This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.<br><br><br>(b)<br> <br>Represents GAAP accrued performance revenue recorded within Due from Affiliates.<br><br><br>(c)<br> <br>Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable<br>Earnings in the period they are realized.<br> <br>(d)<br><br><br>Represents GAAP accrued performance compensation associated with Accrued<br>Performance Allocations and is recorded within Accrued Compensation and Benefits<br> <br>and Due to Affiliates.<br> <br>(e)<br> <br>This adjustment adds other assets related to Treasury Operations that are recorded within Accounts Receivable, reverse repurchase<br>agreements and Due from<br> <br>Affiliates.<br><br><br>(f)<br> <br>This adjustment adds other liabilities related to Treasury Operations that are recorded within Accounts Payable, Accrued Expenses<br>and Other Liabilities, Repurchase<br> <br>Agreements and<br>securities sold short, not yet purchased.<br> <br>(g)<br><br><br>This adjustment removes amounts associated with the ownership of<br>Blackstone consolidated operating partnerships held by non-controlling interests and adds back<br> <br>investments in consolidated Blackstone Funds which have been eliminated in consolidation.<br><br><br>(h)<br> <br>This adjustment removes amounts related to consolidated Blackstone Funds.<br><br><br>($ in thousands)<br><br><br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>Investments of Consolidated Blackstone Funds<br> <br>8,603,847<br> <br>$<br> <br>8,633,794<br> <br>$<br> <br>8,481,233<br> <br>$<br> <br>8,380,698<br> <br>$<br> <br>7,275,752<br> <br>$<br> <br>Equity Method Investments<br> <br>Partnership Investments<br> <br>3,815,993<br> <br>3,802,565<br> <br>3,864,453<br> <br>4,035,675<br> <br>3,553,538<br> <br>Accrued Performance Allocations<br> <br>6,486,450<br> <br>6,743,542<br> <br>7,003,889<br> <br>7,180,449<br> <br>3,761,585<br> <br>Corporate Treasury Investments<br> <br>2,005,174<br> <br>2,797,908<br> <br>2,588,529<br> <br>2,419,587<br> <br>1,653,950<br> <br>Other Investments<br> <br>269,486<br> <br>264,231<br> <br>266,356<br> <br>265,273<br> <br>185,876<br> <br>Total GAAP Investments<br> <br>21,180,950<br> <br>$<br> <br>22,242,040<br> <br>$<br> <br>22,204,460<br> <br>$<br> <br>22,281,682<br> <br>$<br> <br>16,430,701<br> <br>$<br> <br>Accrued<br> <br>Performance<br> <br>Allocations<br> <br>-<br> <br>GAAP<br> <br>6,486,450<br> <br>$<br> <br>6,743,542<br> <br>$<br> <br>7,003,889<br> <br>$<br> <br>7,180,449<br> <br>$<br> <br>3,761,585<br> <br>$<br> <br>Impact of Consolidation (a)<br> <br>374<br> <br>607<br> <br>237<br> <br>384<br> <br>19<br> <br>Due from Affiliates -<br> <br>GAAP (b)<br> <br>9,483<br> <br>25,022<br> <br>18,955<br> <br>154,980<br> <br>20,910<br> <br>Less: Net Realized Performance Revenues (c)<br> <br>(21,225)<br> <br>(71,352)<br> <br>(129,129)<br> <br>(214,662)<br> <br>(31,719)<br> <br>Less:<br> <br>Accrued<br> <br>Performance<br> <br>Compensation<br> <br>-<br> <br>GAAP<br> <br>(d)<br> <br>(2,638,374)<br> <br>(2,724,998)<br> <br>(2,851,817)<br> <br>(3,021,899)<br> <br>(1,563,672)<br> <br>Net Accrued Performance Revenues<br> <br>3,836,708<br> <br>$<br> <br>3,972,821<br> <br>$<br> <br>4,042,135<br> <br>$<br> <br>4,099,252<br> <br>$<br> <br>2,187,123<br> <br>$<br> <br>Corporate<br> <br>Treasury<br> <br>Investments<br> <br>-<br> <br>GAAP<br> <br>2,005,174<br> <br>$<br> <br>2,797,908<br> <br>$<br> <br>2,588,529<br> <br>$<br> <br>2,419,587<br> <br>$<br> <br>1,653,950<br> <br>$<br> <br>Impact of Consolidation (a)<br> <br>75,988<br> <br>160,644<br> <br>163,183<br> <br>164,243<br> <br>131,248<br> <br>Other Assets (e)<br> <br>519,884<br> <br>425,823<br> <br>440,982<br> <br>602,707<br> <br>374,064<br> <br>Other Liabilities (f)<br> <br>(101,605)<br> <br>(91,016)<br> <br>(80,086)<br> <br>(74,898)<br> <br>(46,635)<br> <br>Corporate<br> <br>Treasury<br> <br>Investments<br> <br>-<br> <br>Deconsolidated<br> <br>2,499,441<br> <br>$<br> <br>3,293,359<br> <br>$<br> <br>3,112,608<br> <br>$<br> <br>3,111,639<br> <br>$<br> <br>2,112,627<br> <br>$<br> <br>Partnership<br> <br>and<br> <br>Other<br> <br>Investments<br> <br>-<br> <br>GAAP<br> <br>4,085,479<br> <br>$<br> <br>4,066,796<br> <br>$<br> <br>4,130,809<br> <br>$<br> <br>4,300,948<br> <br>$<br> <br>3,739,414<br> <br>$<br> <br>Impact of Consolidation (g)<br> <br>(2,095,717)<br> <br>(2,209,825)<br> <br>(2,289,139)<br> <br>(2,409,218)<br> <br>(2,111,945)<br> <br>GP/Fund<br> <br>Investments<br> <br>-<br> <br>Deconsolidated<br> <br>1,989,762<br> <br>$<br> <br>1,856,971<br> <br>$<br> <br>1,841,670<br> <br>$<br> <br>1,891,730<br> <br>$<br> <br>1,627,469<br> <br>$<br> <br>Loans Payable -<br> <br>GAAP<br> <br>10,011,155<br> <br>$<br> <br>10,676,138<br> <br>$<br> <br>11,270,245<br> <br>$<br> <br>11,080,723<br> <br>$<br> <br>10,392,903<br> <br>$<br> <br>Impact of Consolidation (h)<br> <br>(6,561,111)<br> <br>(6,536,221)<br> <br>(6,492,686)<br> <br>(6,479,867)<br> <br>(5,817,702)<br> <br>Outstanding Bonds (Carrying Value)<br> <br>3,450,044<br> <br>4,139,917<br> <br>4,777,559<br> <br>4,600,856<br> <br>4,575,201<br> <br>Unamortized Discount/Premium<br> <br>59,576<br> <br>66,033<br> <br>82,336<br> <br>81,094<br> <br>79,449<br> <br>Outstanding<br> <br>Bonds<br> <br>(at<br> <br>par)<br> <br>-<br> <br>Deconsolidated<br> <br>3,509,620<br> <br>$<br> <br>4,205,950<br> <br>$<br> <br>4,859,895<br> <br>$<br> <br>4,681,950<br> <br>$<br> <br>4,654,650<br> <br>$<br> <br>RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES
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<br> <br>Blackstone <br> <br>30<br> <br>QTD<br> <br>LTM<br> <br>($ in thousands)<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>Management and Advisory Fees, Net<br> <br>GAAP<br> <br>809,726<br> <br>$<br> <br>840,378<br> <br>$<br> <br>878,151<br> <br>$<br> <br>943,900<br> <br>$<br> <br>934,832<br> <br>$<br> <br>3,108,673<br> <br>$<br> <br>3,597,261<br> <br>$<br> <br>Segment Adjustment (a)<br> <br>4,336<br> <br>3,778<br> <br>2,194<br> <br>1,773<br> <br>5,735<br> <br>5,797<br> <br>13,480<br> <br>Total Segment<br> <br>814,062<br> <br>$<br> <br>844,156<br> <br>$<br> <br>880,345<br> <br>$<br> <br>945,673<br> <br>$<br> <br>940,567<br> <br>$<br> <br>3,114,470<br> <br>$<br> <br>3,610,741<br> <br>$<br> <br>GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues<br><br><br>GAAP<br> <br>Incentive Fees<br> <br>12,132<br> <br>21,915<br> <br>8,254<br> <br>87,610<br> <br>12,161<br> <br>57,106<br> <br>129,940<br> <br>Investment<br> <br>Income<br> <br>-<br> <br>Realized<br> <br>Performance<br> <br>Allocations<br> <br>242,375<br> <br>332,520<br> <br>446,550<br> <br>717,555<br> <br>167,530<br> <br>1,849,242<br> <br>1,664,155<br> <br>GAAP<br> <br>254,507<br> <br>$<br> <br>354,435<br> <br>$<br> <br>454,804<br> <br>$<br> <br>805,165<br> <br>$<br> <br>179,691<br> <br>$<br> <br>1,906,348<br> <br>$<br> <br>1,794,095<br> <br>$<br> <br>Total Segment<br> <br>Less: Realized Performance Revenues<br> <br>(246,769)<br> <br>(341,386)<br> <br>(420,840)<br> <br>(651,647)<br> <br>(167,233)<br> <br>(1,780,169)<br> <br>(1,581,106)<br> <br>Segment Adjustment (b)<br> <br>41<br> <br>575<br> <br>261<br> <br>2,855<br> <br>8<br> <br>1,599<br> <br>3,699<br> <br>Total Segment<br> <br>7,779<br> <br>$<br> <br>13,624<br> <br>$<br> <br>34,225<br> <br>$<br> <br>156,373<br> <br>$<br> <br>12,466<br> <br>$<br> <br>127,778<br> <br>$<br> <br>216,688<br> <br>$<br> <br>GAAP Compensation to Total Segment Fee Related Compensation<br> <br>GAAP<br> <br>Compensation<br> <br>471,397<br> <br>438,521<br> <br>462,766<br> <br>447,646<br> <br>476,543<br> <br>1,691,951<br> <br>1,825,476<br> <br>Incentive Fees Compensation<br> <br>5,406<br> <br>8,886<br> <br>5,419<br> <br>24,589<br> <br>6,522<br> <br>32,660<br> <br>45,416<br> <br>Realized Performance Allocations Compensation<br> <br>86,395<br> <br>125,825<br> <br>155,663<br> <br>295,059<br> <br>72,423<br> <br>685,409<br> <br>648,970<br> <br>GAAP<br> <br>563,198<br> <br>$<br> <br>573,232<br> <br>$<br> <br>623,848<br> <br>$<br> <br>767,294<br> <br>$<br> <br>555,488<br> <br>$<br> <br>2,410,020<br> <br>$<br> <br>2,519,862<br> <br>$<br> <br>Total Segment<br> <br>Less: Realized Performance Compensation<br> <br>(85,240)<br> <br>(125,466)<br> <br>(143,870)<br> <br>(249,359)<br> <br>(71,302)<br> <br>(648,552)<br> <br>(589,997)<br> <br>Less:<br> <br>Equity-Based<br> <br>Compensation<br> <br>-<br> <br>Operating<br> <br>Compensation<br> <br>(63,708)<br> <br>(50,225)<br> <br>(56,139)<br> <br>(51,612)<br> <br>(85,334)<br> <br>(168,673)<br> <br>(243,310)<br> <br>Less:<br> <br>Equity-Based<br> <br>Compensation<br> <br>-<br> <br>Performance<br> <br>Compensation<br> <br>(3,068)<br> <br>(2,880)<br> <br>(2,431)<br> <br>(131)<br> <br>(2,138)<br> <br>(12,175)<br> <br>(7,580)<br> <br>Segment Adjustment (c)<br> <br>(87,151)<br> <br>(100,827)<br> <br>(91,574)<br> <br>(77,313)<br> <br>(50,450)<br> <br>(336,517)<br> <br>(320,164)<br> <br>Total Segment<br> <br>324,031<br> <br>$<br> <br>293,834<br> <br>$<br> <br>329,834<br> <br>$<br> <br>388,879<br> <br>$<br> <br>346,264<br> <br>$<br> <br>1,244,103<br> <br>$<br> <br>1,358,811<br> <br>$<br> <br>GAAP General, Administrative and Other to Total Segment Other Operating Expenses<br><br><br>GAAP<br> <br>146,062<br> <br>$<br> <br>175,308<br> <br>$<br> <br>171,067<br> <br>$<br> <br>186,971<br> <br>$<br> <br>157,566<br> <br>$<br> <br>614,222<br> <br>$<br> <br>690,912<br> <br>$<br> <br>Segment Adjustment (d)<br> <br>(22,751)<br> <br>(33,187)<br> <br>(26,716)<br> <br>(25,612)<br> <br>(18,681)<br> <br>(109,675)<br> <br>(104,196)<br> <br>Total Segment<br> <br>123,311<br> <br>$<br> <br>142,121<br> <br>$<br> <br>144,351<br> <br>$<br> <br>161,359<br> <br>$<br> <br>138,885<br> <br>$<br> <br>504,547<br> <br>$<br> <br>586,716<br> <br>$<br> <br>Realized Performance Revenues<br> <br>GAAP<br> <br>Incentive Fees<br> <br>12,132<br> <br>21,915<br> <br>8,254<br> <br>87,610<br> <br>12,161<br> <br>57,106<br> <br>129,940<br> <br>Investment Income -<br> <br>Realized Performance Allocations<br> <br>242,375<br> <br>332,520<br> <br>446,550<br> <br>717,555<br> <br>167,530<br> <br>1,849,242<br> <br>1,664,155<br> <br>GAAP<br> <br>254,507<br> <br>$<br> <br>354,435<br> <br>$<br> <br>454,804<br> <br>$<br> <br>805,165<br> <br>$<br> <br>179,691<br> <br>$<br> <br>1,906,348<br> <br>$<br> <br>1,794,095<br> <br>$<br> <br>Total Segment<br> <br>Less: Fee Related Performance Revenues<br> <br>(7,779)<br> <br>(13,624)<br> <br>(34,225)<br> <br>(156,373)<br> <br>(12,466)<br> <br>(127,778)<br> <br>(216,688)<br> <br>Segment Adjustment (b)<br> <br>41<br> <br>575<br> <br>261<br> <br>2,855<br> <br>8<br> <br>1,599<br> <br>3,699<br> <br>Total Segment<br> <br>246,769<br> <br>$<br> <br>341,386<br> <br>$<br> <br>420,840<br> <br>$<br> <br>651,647<br> <br>$<br> <br>167,233<br> <br>$<br> <br>1,780,169<br> <br>$<br> <br>1,581,106<br> <br>$<br> <br>RECONCILIATION OF GAAP TO TOTAL SEGMENTS
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<br> <br>Blackstone <br> <br>31<br> <br>This analysis reconciles the components of Total Segment Distributable Earnings (page 3) to their equivalent GAAP measures,<br>reported on the Consolidated<br> <br>Statement of Operations (page<br>1). Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds<br> <br>Blackstone manages and<br> <br>excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.<br> <br>(a)<br><br><br>Represents (1) the add back of net management fees earned from<br>consolidated Blackstone Funds which have been eliminated in consolidation, and (2)<br> <br>the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP<br>but netted<br> <br>against Management and Advisory Fees, Net in<br>the Total Segment measures.<br> <br>(b)<br><br><br>Represents the add back of Performance Revenues earned from consolidated<br>Blackstone Funds which have been eliminated in consolidation.<br><br><br>(c)<br> <br>Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.<br><br><br>(d)<br> <br>Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the<br>Blackstone Funds,<br> <br>which are presented gross under GAAP but<br>netted against Management and Advisory Fees, Net<br> <br>in the<br>Total Segment measures.<br> <br>(e)<br><br><br>Represents (1) the add back of Principal Investment Income, including<br>general partner income, earned from consolidated Blackstone Funds which have<br> <br>been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated<br>operating partnerships<br> <br>held by non-controlling<br>interests.<br> <br>(f)<br><br><br>Represents (1) the add back of Other Revenues earned from consolidated<br>Blackstone Funds which have been eliminated in consolidation, and (2) the<br> <br>removal of interest expense associated with the Tax Receivable Agreement.<br><br><br>QTD<br> <br>LTM<br> <br>Y<br> <br>($ in thousands)<br> <br>1Q'19<br> <br>2Q'19<br> <br>3Q'19<br> <br>4Q'19<br> <br>1Q'20<br> <br>1Q'19<br> <br>1Q'20<br> <br>Realized Performance Compensation<br> <br>GAAP<br> <br>Incentive Fee Compensation<br> <br>5,406<br> <br>$<br><br><br>8,886<br> <br>$<br><br><br>5,419<br> <br>$<br><br><br>24,589<br><br><br>$<br> <br>6,522<br><br><br>$<br> <br>32,660<br><br><br>$<br> <br>45,416<br><br><br>$<br> <br>Realized Performance Allocations Compensation<br><br><br>86,395<br><br><br>125,825<br><br><br>155,663<br><br><br>295,059<br><br><br>72,423<br><br><br>685,409<br><br><br>648,970<br><br><br>GAAP<br> <br>91,801<br> <br>$<br> <br>134,711<br> <br>$<br> <br>161,082<br> <br>$<br> <br>319,648<br> <br>$<br> <br>78,945<br> <br>$<br> <br>718,069<br> <br>$<br> <br>694,386<br> <br>$<br> <br>Total Segment<br> <br>Less: Fee Related Performance Compensation<br> <br>(3,493)<br> <br>(6,365)<br> <br>(14,781)<br> <br>(70,158)<br> <br>(5,505)<br> <br>(57,342)<br> <br>(96,809)<br> <br>Less:<br> <br>Equity-Based<br> <br>Compensation<br> <br>-<br> <br>Performance<br> <br>Compensation<br> <br>(3,068)<br> <br>(2,880)<br> <br>(2,431)<br> <br>(131)<br> <br>(2,138)<br> <br>(12,175)<br> <br>(7,580)<br> <br>Total Segment<br> <br>85,240<br> <br>$<br> <br>125,466<br> <br>$<br> <br>143,870<br> <br>$<br> <br>249,359<br> <br>$<br> <br>71,302<br> <br>$<br> <br>648,552<br> <br>$<br> <br>589,997<br> <br>$<br> <br>Realized Principal Investment Income<br> <br>GAAP<br> <br>73,261<br> <br>$<br> <br>145,040<br> <br>$<br> <br>74,642<br> <br>$<br> <br>100,535<br> <br>$<br> <br>48,695<br> <br>$<br> <br>446,978<br> <br>$<br> <br>368,912<br> <br>$<br> <br>Segment Adjustment (e)<br> <br>(47,353)<br> <br>(21,483)<br> <br>(38,494)<br> <br>(61,993)<br> <br>(28,405)<br> <br>(213,705)<br> <br>(150,375)<br> <br>Total Segment<br> <br>25,908<br> <br>$<br> <br>123,557<br> <br>$<br> <br>36,148<br> <br>$<br> <br>38,542<br> <br>$<br> <br>20,290<br> <br>$<br> <br>233,273<br> <br>$<br> <br>218,537<br> <br>$<br> <br>GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest Income (Loss)<br><br><br>GAAP<br> <br>Interest and Dividend Revenue<br> <br>44,084<br> <br>43,686<br> <br>42,482<br> <br>52,146<br> <br>35,084<br> <br>180,646<br> <br>173,398<br> <br>Interest Expense<br> <br>(42,002)<br> <br>(43,596)<br> <br>(53,362)<br> <br>(60,688)<br> <br>(41,644)<br> <br>(167,321)<br> <br>(199,290)<br> <br>GAAP<br> <br>2,082<br> <br>$<br> <br>90<br> <br>$<br><br><br>(10,880)<br><br><br>$<br><br><br>(8,542)<br> <br>$<br> <br>(6,560)<br> <br>$<br> <br>13,325<br> <br>$<br> <br>(25,892)<br> <br>$<br> <br>Segment Adjustment (f)<br> <br>2,979<br> <br>2,671<br> <br>3,113<br> <br>6,046<br> <br>2,619<br> <br>15,514<br> <br>14,449<br> <br>Total Segment<br> <br>5,061<br> <br>$<br> <br>2,761<br> <br>$<br> <br>(7,767)<br> <br>$<br> <br>(2,496)<br> <br>$<br> <br>(3,941)<br> <br>$<br> <br>28,839<br> <br>$<br> <br>(11,443)<br> <br>$<br> <br>RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D)
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<br> <br>Blackstone <br> <br>32<br> <br>NOTES<br> <br>Notes<br> <br>to<br> <br>page<br> <br>1<br> <br>-<br> <br>Blackstone’s<br> <br>First<br> <br>Quarter<br> <br>2020<br> <br>GAAP<br> <br>Results<br> <br>Effective July 1, 2019, The Blackstone Group L.P. converted from a Delaware limited partnership to a Delaware corporation, The<br>Blackstone<br> <br>Group Inc. (the “Conversion”). This<br>presentation includes results for The Blackstone Group L.P. prior to the Conversion. As of any time prior to<br> <br>the Conversion, references to “Blackstone,” “the Company,” “our” and similar terms mean The<br>Blackstone Group L.P. and its consolidated<br> <br>subsidiaries<br>and, as of any time after the Conversion, The Blackstone Group Inc. and its consolidated subsidiaries.<br> <br>All references to shares or per share amounts prior to the Conversion refer to units or per unit amounts. Unless otherwise noted,<br>references to<br> <br>“common stock” and “common<br>shares” refer to Class A common stock.<br><br><br>Income<br> <br>(Loss)<br> <br>Before<br> <br>Provision<br> <br>(Benefit)<br> <br>for<br> <br>Taxes<br> <br>Margin<br> <br>is<br> <br>calculated<br> <br>by<br> <br>dividing<br> <br>Income<br> <br>(Loss)<br> <br>Before<br> <br>Provision<br> <br>(Benefit)<br> <br>for<br> <br>Taxes<br> <br>by<br> <br>Total<br> <br>Revenues.<br> <br>Notes<br> <br>to<br> <br>page<br> <br>2<br> <br>-<br> <br>Blackstone’s<br> <br>First<br> <br>Quarter<br> <br>2020<br> <br>Highlights<br> <br>The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the<br>applicable<br> <br>Blackstone Funds and not those of Blackstone.<br> <br>See Notes to page 18 regarding Net Accrued Performance<br>Revenue redefinition.<br> <br>Notes<br><br><br>to<br> <br>page<br> <br>5<br> <br>-<br> <br>Investment<br> <br>Performance<br> <br>and<br> <br>Net<br> <br>Accrued<br> <br>Performance<br> <br>Revenues<br> <br>Effective 1Q’20, the Credit segment was renamed Credit & Insurance; however, there was no change to the composition of<br>the segment or<br> <br>historical results.<br><br><br>Effective 1Q’20, Core+ appreciation was updated to include BREIT<br>and represents a weighted average of BREIT’s per share appreciation and BPP<br> <br>appreciation for the period. The returns are weighted based on the average of BREIT’s monthly net asset values and the<br>average of BPP’s<br> <br>quarterly<br><br><br>adjusted<br><br><br>beginning<br><br><br>period<br><br><br>market<br><br><br>values<br><br><br>for<br> <br>the<br> <br>period.<br> <br>This<br> <br>presentation<br> <br>provides<br> <br>a<br> <br>more<br> <br>holistic<br> <br>view<br> <br>of<br> <br>Core+<br> <br>by<br> <br>including<br> <br>BREIT<br> <br>performance. Core+ excluding BREIT appreciation was (2.4)% and 3.4% for 1Q’20 and 1Q’20 LTM, respectively.<br><br><br>Effective 1Q’20, Corporate Private Equity appreciation was updated<br>to include Core Private Equity appreciation.<br> <br>This<br>presentation provides a<br> <br>more holistic view of Corporate<br>Private Equity by including Core Private Equity performance. Corporate Private Equity appreciation excluding<br> <br>Core Private Equity was (23.4)% and (19.9)% for 1Q’20 and 1Q’20 LTM, respectively.<br><br><br>Results<br><br><br>for<br> <br>the<br> <br>Secondaries<br> <br>business<br> <br>(also<br> <br>referred<br> <br>to<br> <br>as<br> <br>Strategic<br> <br>Partners)<br> <br>are<br> <br>reported<br> <br>on<br> <br>a<br> <br>three<br> <br>month<br> <br>lag<br> <br>from<br> <br>the<br> <br>Secondaries’<br> <br>fund<br> <br>financial statements, which generally report based on a three month lag from the underlying fund investments unless information is<br>available on<br> <br>a more timely basis. As a result, the<br>appreciation presented herein does not include the impact of economic and market activity in the current<br> <br>quarter. Current market activity is expected to affect reported results in upcoming quarters.<br><br><br>The BPS Composite gross and net returns<br><br><br>are<br> <br>based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM’s<br><br><br>individual<br><br><br>investor solutions (liquid alternatives), strategic capital (seeding and<br>minority interests), strategic opportunities (co-invests), and advisory (non-<br> <br>discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation<br>and non fee-<br> <br>paying<br><br><br>assets<br><br><br>(net<br> <br>returns<br> <br>only)<br> <br>are<br> <br>also<br> <br>excluded.<br> <br>The<br> <br>funds/accounts<br> <br>that<br> <br>comprise<br> <br>the<br> <br>BPS<br> <br>Composite<br> <br>are<br> <br>not<br> <br>managed<br> <br>within<br> <br>a<br> <br>single<br> <br>fund<br> <br>or<br> <br>account and are managed with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a<br>stand-<br> <br>alone fund/account. The BPS Composite is not an<br>investible product and, as such, the performance of the BPS Composite does not represent the<br> <br>performance of an actual fund or account.
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<br> <br>Blackstone <br> <br>33<br> <br>Notes<br> <br>to<br> <br>page<br> <br>5<br> <br>-<br> <br>Investment<br> <br>Performance<br> <br>and<br> <br>Net<br> <br>Accrued<br> <br>Performance<br> <br>Revenues<br> <br>(Cont’d)<br> <br>Effective 1Q’20, Credit returns are presented as a composite return instead of separate returns for performing credit and<br>distressed. The Credit<br> <br>Composite<br><br><br>now<br> <br>also<br> <br>includes<br> <br>the<br> <br>long<br> <br>only<br> <br>strategy.<br> <br>The<br> <br>Credit<br> <br>Composite<br> <br>return<br> <br>is<br> <br>a<br> <br>weighted<br> <br>average<br> <br>of<br> <br>(a)<br> <br>the<br> <br>return<br> <br>based<br> <br>on<br> <br>the<br> <br>combined<br> <br>quarterly<br> <br>cash flows of performing credit and distressed fee-earning funds and (b) the weighted average quarterly return of all long<br>only strategy<br> <br>fee-earning funds.<br><br><br>Only<br> <br>fee-earning<br> <br>funds<br> <br>exceeding<br> <br>$100<br> <br>million<br> <br>of<br> <br>fair<br> <br>value<br> <br>at<br> <br>the<br> <br>beginning<br> <br>of<br> <br>each<br> <br>respective<br> <br>quarter-<br> <br>end<br> <br>are<br> <br>included<br> <br>and<br> <br>funds<br> <br>in liquidation are excluded. Credit returns exclude Blackstone Funds that were contributed to GSO as part of<br><br><br>Blackstone’s acquisition of GSO in<br><br><br>March<br> <br>2008.<br> <br>Performing<br> <br>Credit<br> <br>gross<br> <br>returns<br> <br>were<br> <br>(16.7)%<br> <br>and<br> <br>(11.2)%<br> <br>for<br> <br>1Q’20<br> <br>and<br> <br>1Q’20<br> <br>LTM,<br> <br>respectively.<br> <br>Performing<br> <br>Credit<br> <br>net<br> <br>returns<br> <br>were<br> <br>(14.1)%<br> <br>and<br> <br>(10.5)%<br> <br>for<br> <br>1Q’20<br> <br>and<br> <br>1Q’20<br> <br>LTM,<br> <br>respectively.<br> <br>Distressed<br> <br>gross<br> <br>returns<br> <br>were<br> <br>(31.8)%<br> <br>and<br> <br>(36.2)%<br> <br>for<br> <br>1Q’20<br> <br>and<br> <br>1Q’20<br> <br>LTM,<br> <br>respectively. Distressed net returns were (30.3)% and (35.3)% for 1Q’20 and 1Q’20 LTM, respectively.<br><br><br>Notes<br> <br>to<br> <br>page<br> <br>18<br> <br>–<br> <br>Net<br> <br>Accrued<br> <br>Performance<br> <br>Revenues<br> <br>–<br> <br>Additional<br> <br>Detail<br> <br>Effective<br> <br>1Q’20,<br> <br>NAPR<br> <br>has<br> <br>been<br> <br>redefined<br> <br>to<br> <br>exclude<br> <br>Performance<br> <br>Revenues<br> <br>realized<br> <br>but<br> <br>not<br> <br>yet<br> <br>distributed<br> <br>as<br> <br>of<br> <br>the<br> <br>reporting<br> <br>date.<br> <br>This<br> <br>update aligns the presentation of DE and NAPR. All prior periods have been recast to reflect this definition.<br><br><br>Per Share calculations are based on end of period DE Shares Outstanding<br>(see page 23, Share Summary).<br> <br>Notes<br><br><br>to<br> <br>page<br> <br>22<br> <br>–<br> <br>Shareholder<br> <br>Dividends<br> <br>DE<br> <br>before<br> <br>Certain<br> <br>Payables<br> <br>represents<br> <br>Distributable<br> <br>Earnings<br> <br>before<br> <br>the<br> <br>deduction<br> <br>for<br> <br>the<br> <br>Payable<br> <br>Under<br> <br>Tax<br> <br>Receivable<br> <br>Agreement<br> <br>and<br> <br>tax<br> <br>expense (benefit) of wholly owned subsidiaries.<br> <br>Per Share calculations are based on end of period Participating Common Shares (page 23, Share Summary); actual dividends are paid<br>to<br> <br>shareholders as of the applicable record date.<br> <br>Retained capital is withheld pro rata from common and<br>Blackstone Holdings Partnership unitholders. Common shareholders’ share was<br> <br>$48<br> <br>million for 1Q’20 and $244 million for 1Q’20 LTM.<br> <br>Common Shareholders receive tax benefits from deductions taken by Blackstone’s corporate tax paying subsidiaries and bear<br>responsibility for<br> <br>the deduction from Distributable<br>Earnings of the Payable Under Tax Receivable Agreement and certain other tax-related payables.<br> <br>Notes<br> <br>to<br> <br>page<br> <br>23<br> <br>–<br> <br>Share<br> <br>Summary<br> <br>Participating Common Shares and Participating Partnership Units include both issued and outstanding shares and unvested shares<br>that participate<br> <br>in dividends.<br><br><br>NOTES – (CONT’D)
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<br> <br>Blackstone <br> <br>34<br> <br>DEFINITIONS AND DIVIDEND POLICY<br> <br>Blackstone<br> <br>discloses<br> <br>the<br> <br>following<br> <br>operating<br> <br>metrics<br> <br>and<br> <br>financial<br> <br>measures<br> <br>that<br> <br>are<br> <br>calculated<br> <br>and<br> <br>presented<br> <br>on<br> <br>the<br> <br>basis<br> <br>of<br> <br>methodologies<br> <br>other<br> <br>than in accordance with generally accepted accounting principles in the United States of America (“non-GAAP”) in<br>this presentation:<br> <br>Segment<br><br><br>Distributable<br><br><br>Earnings,<br> <br>or<br> <br>“Segment<br> <br>DE”,<br> <br>is<br> <br>Blackstone’s<br> <br>segment<br> <br>profitability<br> <br>measure<br> <br>used<br> <br>to<br> <br>make<br> <br>operating<br> <br>decisions<br> <br>and<br> <br>assess<br> <br>performance across Blackstone’s four segments. Segment DE represents the net realized earnings of Blackstone’s segments<br>and is the sum of Fee<br> <br>Related Earnings and Net<br>Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds,<br> <br>eliminates non-controlling ownership interests in Blackstone’s consolidated Operating Partnerships, removes the<br>amortization of intangible assets<br> <br>and removes<br>Transaction-Related Charges. Segment DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to,<br> <br>its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.<br><br><br>–<br> <br>Net<br> <br>Realizations<br> <br>is<br> <br>presented<br> <br>on<br> <br>a<br> <br>segment<br> <br>basis<br> <br>and<br> <br>is<br> <br>the<br> <br>sum<br> <br>of<br> <br>Realized<br> <br>Principal<br> <br>Investment<br> <br>Income<br> <br>and<br> <br>Realized<br> <br>Performance<br> <br>Revenues<br> <br>(which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation<br> <br>(which refers to Realized Performance Compensation<br>excluding Fee Related Performance Compensation and Equity-Based Performance<br> <br>Compensation).<br> <br>–<br> <br>Total<br> <br>Segment<br> <br>Revenues<br> <br>and<br> <br>Segment<br> <br>Revenues<br> <br>represent<br> <br>Net<br> <br>Management<br> <br>and<br> <br>Advisory<br> <br>Fees,<br> <br>Fee<br> <br>Related<br> <br>Performance<br> <br>Revenues, Realized<br> <br>Performance Revenues and Realized Principal Investment Income.<br> <br>Distributable Earnings, or “DE”, is derived from Blackstone’s segment reported results. DE is used to assess performance and amounts available<br> <br>for dividends to Blackstone shareholders, including<br>Blackstone personnel and others who are limited partners of the Blackstone Holdings<br> <br>Partnerships. DE is the sum of Segment DE plus Net Interest Income (Loss) less Taxes and Related Payables. DE excludes unrealized<br>activity and is<br> <br>derived from and reconciled to, but not<br>equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for<br> <br>Taxes.<br> <br>–<br> <br>Net Interest Income (Loss)<br> <br>is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for<br><br><br>the impact of consolidation of Blackstone Funds, and interest expense<br>associated with the Tax Receivable Agreement.<br><br><br>–<br> <br>Taxes and Related Payables<br> <br>represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on<br><br><br>Income (Loss) Before Provision (Benefit) for Taxes excluding the tax<br>impact of any divestitures and including the Payable under the Tax<br> <br>Receivable Agreement.<br> <br>Fee Related Earnings, or “FRE”, is a performance measure used to assess Blackstone’s ability to generate profits from revenues that are<br> <br>measured<br><br><br>and<br> <br>received<br> <br>on<br> <br>a<br> <br>recurring<br> <br>basis<br> <br>and<br> <br>not<br> <br>subject<br> <br>to<br> <br>future<br> <br>realization<br> <br>events.<br> <br>FRE<br> <br>equals<br> <br>management<br> <br>and<br> <br>advisory<br> <br>fees<br> <br>(net<br> <br>of<br> <br>management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment<br>basis, and<br> <br>(b)<br><br><br>Other Operating Expenses. FRE is derived from and reconciled to, but not<br>equivalent to, its most directly comparable GAAP measure of Income<br> <br>(Loss) Before Provision (Benefit) for Taxes.<br> <br>–<br> <br>Fee Related Compensation<br> <br>is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation,<br><br><br>directly related to (a) Management and Advisory Fees, Net and (b) Fee<br>Related Performance Revenues, referred to as Fee Related<br><br><br>Performance Compensation.<br><br><br>–<br> <br>Fee Related Performance Revenues<br> <br>refers to the realized portion of Performance Revenues from Perpetual Capital that are (a) measured<br><br><br>and received on a recurring basis, and (b) not dependent on realization<br>events from the underlying investments.
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<br> <br>Blackstone <br> <br>35<br> <br>–<br> <br>Perpetual Capital<br> <br>refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which<br> <br>there<br><br><br>is<br> <br>no<br> <br>requirement<br> <br>to<br> <br>return<br> <br>capital<br> <br>to<br> <br>investors<br> <br>through<br> <br>redemption<br> <br>requests<br> <br>in<br> <br>the<br> <br>ordinary<br> <br>course<br> <br>of<br> <br>business,<br> <br>except<br> <br>where<br> <br>funded<br> <br>by new capital inflows. Includes co-investment capital with an investor right to convert into Perpetual Capital.<br><br><br>Adjusted<br> <br>Earnings<br> <br>Before<br> <br>Interest,<br> <br>Taxes<br> <br>and<br> <br>Depreciation<br> <br>and<br> <br>Amortization,<br> <br>or<br> <br>“Adjusted<br> <br>EBITDA”,<br> <br>is<br> <br>a<br> <br>supplemental<br> <br>measure<br> <br>used<br> <br>to<br> <br>assess<br> <br>performance<br> <br>derived<br> <br>from<br> <br>Blackstone’s<br> <br>segment<br> <br>results<br> <br>and<br> <br>may<br> <br>be<br> <br>used<br> <br>to<br> <br>assess<br> <br>its<br> <br>ability<br> <br>to<br> <br>service<br> <br>its<br> <br>borrowings.<br> <br>Adjusted<br> <br>EBITDA<br> <br>represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables,<br>and<br> <br>(c)<br><br><br>Depreciation and Amortization. Adjusted EBITDA is derived from and<br>reconciled to, but not equivalent to, its most directly comparable GAAP<br> <br>measure of Income (Loss) Before Provision (Benefit) for Taxes.<br> <br>Performance Revenues<br> <br>collectively refers to: (a) Incentive Fees, and (b) Performance Allocations.<br><br><br>Performance Compensation<br><br><br>collectively refers to: (a) Incentive Fee Compensation, and (b)<br>Performance Allocations Compensation.<br> <br>Transaction-Related<br>Charges<br> <br>arise from corporate actions including<br>acquisitions, divestitures, and Blackstone’s initial public offering. They<br> <br>consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in<br>the balance of<br> <br>the Tax Receivable Agreement resulting from<br>a change in tax law or similar event, transaction costs and any gains or losses associated with these<br> <br>corporate actions.<br> <br>Dividend Policy. Blackstone’s intention is to pay to holders of Class A common stock a quarterly dividend representing<br>approximately 85% of The<br> <br>Blackstone<br><br><br>Group<br> <br>Inc.’s<br> <br>share<br> <br>of<br> <br>Distributable<br> <br>Earnings,<br> <br>subject<br> <br>to<br> <br>adjustment<br> <br>by<br> <br>amounts<br> <br>determined<br> <br>by<br> <br>Blackstone’s<br> <br>board<br> <br>of<br> <br>directors<br> <br>to<br> <br>be<br> <br>necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to<br>comply with<br> <br>applicable law, any of its debt instruments or<br>other agreements, or to provide for future cash requirements such as tax-related payments, clawback<br> <br>obligations and dividends to shareholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one<br>quarter. All of the<br> <br>foregoing is subject to the<br>qualification that the declaration and payment of any dividends are at the sole discretion of Blackstone’s board of<br> <br>directors and our board of directors may change our dividend policy at any time, including, without limitation, to eliminate such<br>dividends entirely.<br> <br>DEFINITIONS AND DIVIDEND POLICY –<br>(CONT’D)
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<br> <br>Blackstone <br> <br>36<br> <br>FORWARD-LOOKING STATEMENTS<br> <br>This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and<br>Section 21E of the<br> <br>Securities Exchange Act of 1934 which<br>reflect our current views with respect to, among other things, our operations, taxes, earnings and financial<br> <br>performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as<br>“outlook,”<br> <br>“indicator,”<br>“believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,”<br>“plans,”<br> <br>“estimates,”<br><br><br>“anticipates”<br><br><br>or<br> <br>the<br> <br>negative<br> <br>version<br> <br>of<br> <br>these<br> <br>words<br> <br>or<br> <br>other<br> <br>comparable<br> <br>words.<br> <br>Such<br> <br>forward-looking<br> <br>statements<br> <br>are<br> <br>subject<br> <br>to<br> <br>various<br> <br>risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ<br>materially from those<br> <br>indicated in these statements. We<br>believe these factors include but are not limited to the impact of COVID-19 and energy market dislocation, as well<br> <br>as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended<br>December 31, 2019, as such<br> <br>factors may be updated from<br>time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are<br> <br>accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in<br>conjunction with the<br> <br>other cautionary statements that are<br>included in this report and in our other periodic filings. The forward-looking statements speak only as of the<br> <br>date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a<br>result of new<br> <br>information, future developments or<br>otherwise.<br> <br>This presentation does not constitute an offer<br>of any Blackstone Fund.
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