"forecast" or the negative version of these words or other comparable words. Such forward-looking statements are
subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause
actual outcomes or results to differ materially from those indicated in these statements. We believe these factors
include but are not limited to the impact of the novel coronavirus ("COVID-19"), as well as those described under
the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, as
such factors may be updated from time to time in our periodic filings with the United States Securities and
Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not
be construed as exhaustive and should be read in conjunction with the other cautionary statements that are
included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of
this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether
as a result of new information, future developments or otherwise.
2
This presentation does not constitute an offer of any Blackstone Fund.
Investor and Media Relations Contacts
Weston Tucker
Blackstone
Tel: +1 (212) 583-5231
tucker@blackstone.com
Christine Anderson
Blackstone
Tel: +1 (212) 583-5182
christine.anderson@blackstone.com
3
Blackstone's First
Quarter 2022 Earnings
APRIL 21, 2022
BLACKSTONE'S FIRST QUARTER 2022 GAAP RESULTS
§
GAAP Net Income was $2.5 billion for the quarter and $11.5 billion over the last twelve months ("LTM"). GAAP Net Income Attributable to Blackstone Inc. was $1.2 billion for the quarter and $5.3 billion over the LTM.
($ in thousands, except per share data) (unaudited)
1Q'21
1Q'22
1Q'21 LTM
1Q'22 LTM
Revenues
Management and Advisory Fees, Net
$
1,177,815
$
1,475,936
$
4,335,532
$
5,468,828
Incentive Fees
36,124
104,489
162,624
322,356
Investment Income
Performance Allocations
Realized
534,367
1,766,386
2,472,837
6,885,471
Unrealized
2,464,497
1,293,050
5,533,185
7,503,799
Principal Investments
Realized
355,038
285,104
697,971
933,888
Unrealized
639,315
73,961
1,484,073
890,847
Total Investment Income
3,993,217
3,418,501
10,188,066
16,214,005
Interest and Dividend Revenue
31,412
54,485
121,559
183,716
Other
60,304
72,869
(331,018
)
215,651
Total Revenues
$
5,298,872
$
5,126,280
$
14,476,763
$
22,404,556
Expenses
Compensation and Benefits
Compensation
542,638
656,505
1,921,714
2,275,840
Incentive Fee Compensation
13,325
41,019
51,228
125,806
Performance Allocations Compensation
Realized
213,027
717,601
983,834
2,816,567
Unrealized
1,049,969
472,284
2,292,831
3,200,363
Total Compensation and Benefits
1,818,959
1,887,409
5,249,607
8,418,576
General, Administrative and Other
185,122
240,674
739,338
973,399
Interest Expense
44,983
66,747
169,501
220,032
Fund Expenses
2,383
2,192
10,642
10,185
Total Expenses
$
2,051,447
$
2,197,022
$
6,169,088
$
9,622,192
Other Income (Loss)
Change in Tax Receivable Agreement Liability
2,910
761
(31,878
)
(4,908
)
Net Gains from Fund Investment Activities
120,353
50,876
478,269
392,147
Income Before Provision for Taxes
$
3,370,688
$
2,980,895
$
8,754,066
$
13,169,603
Provision (Benefit) for Taxes
(447
)
483,281
514,270
1,668,129
Net Income
$
3,371,135
$
2,497,614
$
8,239,796
$
11,501,474
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
629
5,052
2,200
10,163
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
386,850
216,375
1,249,044
1,454,831
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
1,235,784
1,059,313
3,128,825
4,710,081
Net Income Attributable to Blackstone Inc. ("BX")
$
1,747,872
$
1,216,874
$
3,859,727
$
5,326,399
Net Income Per Share of Common Stock, Basic
$
2.47
$
1.66
$
5.49
$
7.34
Net Income Per Share of Common Stock, Diluted
$
2.46
$
1.66
$
5.49
$
7.33
Income Before Provision for Taxes Margin
63.6
%
58.1
%
60.5%
58.8%
Throughout this presentation, all current period amounts are preliminary and unaudited. Totals may not add due to rounding. See pages 34-36, Definitions and
Dividend Policy, for definitions of terms used throughout this presentation. See additional notes on page 32.
Blackstone | 1
BLACKSTONE'S FIRST QUARTER 2022 HIGHLIGHTS
Financial Measures
§ Fee Related Earnings ("FRE") of $1.1 billion ($0.95/share) in the quarter, up 55% year-over-year
- FRE was $4.5 billion over the LTM ($3.70/share)
§ Distributable Earnings ("DE") of $1.9 billion ($1.55/share) in the quarter, up 63% year-over-year
- DE was $6.9 billion over the LTM ($5.36/share)
§ Net Accrued Performance Revenues of $9.5 billion ($7.94/share), up 84% year-over-year
Capital Metrics
§ Total Assets Under Management ("AUM") of $915.5 billion, up 41% year-over-year
- Fee-Earning AUM of $677.9 billion, up 41% year-over-year
- Perpetual Capital AUM of $338.2 billion, up 127% year-over-year
§ Inflows of $49.9 billion in the quarter and $288.7 billion over the LTM
§ Realizations of $23.2 billion in the quarter and $85.6 billion over the LTM
§ Deployment of $22.8 billion in the quarter and $149.5 billion over the LTM
Capital Returned
to Shareholders
§ Dividend of $1.32 per common share payable on May 9, 2022
- Dividends of $4.56 per common share over the LTM
§ $1.7 billion to be distributed to shareholders with respect to the first quarter and $7.2 billion over the LTM through dividends and share repurchases
Notes on page 32.
Blackstone | 2
BLACKSTONE'S FIRST QUARTER 2022 SEGMENT EARNINGS
% Change
% Change
($ in thousands, except per share data)
1Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'21 LTM
vs. 1Q'21 LTM
Management and Advisory Fees, Net
$
1,178,205
$
1,473,368
25%
$
4,348,803
$
5,462,405
26%
Fee Related Performance Revenues
169,168
558,065
230%
535,378
2,414,141
351%
Fee Related Compensation
(445,110
)
(670,471
)
51%
(1,595,416
)
(2,573,371
)
61%
Other Operating Expenses
(161,424
)
(214,098
)
33%
(645,756
)
(846,351
)
31%
Fee Related Earnings
$
740,839
$
1,146,864
55%
$
2,643,009
$
4,456,824
69%
Realized Performance Revenues
401,323
1,312,810
227%
2,100,083
4,794,599
128%
Realized Performance Compensation
(150,924
)
(519,120
)
244%
(793,969
)
(1,925,766
)
143%
Realized Principal Investment Income
298,156
157,095
(47)%
436,799
446,705
2%
Net Realizations
548,555
950,785
73%
1,742,913
3,315,538
90%
Total Segment Distributable Earnings
$
1,289,394
$
2,097,649
63%
$
4,385,922
$
7,772,362
77%
Net Interest and Dividend Income (Loss)
(12,928
)
(12,117
)
(6)%
(43,897
)
(32,777
)
(25)%
Taxes and Related Payables
(84,222
)
(147,652
)
75%
(365,296
)
(823,112
)
125%
Distributable Earnings
$
1,192,244
$
1,937,880
63%
$
3,976,729
$
6,916,473
74%
Additional Metrics:
FRE per Share
$
0.62
$
0.95
53%
$
2.20
$
3.70
68%
DE per Common Share
$
0.96
$
1.55
61%
$
3.15
$
5.36
70%
Total Segment Revenues
$
2,046,852
$
3,501,338
71%
$
7,421,063
$
13,117,850
77%
Total Assets Under Management
$
648,803,007
$
915,491,742
41%
$
648,803,007
$
915,491,742
41%
Fee-Earning Assets Under Management
$
481,225,407
$
677,943,302
41%
$
481,225,407
$
677,943,302
41%
Fee Related Earnings per Share is based on end of period DE Shares Outstanding (see page 23, Share Summary). DE per Common Share is based on DE Attributable
to Common Shareholders (see page 22, Shareholder Dividends) and end of period Participating Common Shares outstanding. LTM per Share amounts represent the
sum of the last four quarters. See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.
Blackstone | 3
SUMMARY OF FINANCIALS
§
LTM Fee Related Earnings of $3.70 per share, an increase of 68% year-over-year.
§
LTM Total Segment Distributable Earnings were $7.8 billion, an increase of 77% year-over-year.
Fee Related Earnings per Share
Segment Distributable Earnings
($ in millions)
FRE Margin is calculated by dividing Fee Related Earnings by Fee Related Revenues (defined as the sum of Total Segment Management and Advisory Fees, Net and
Fee Related Performance Revenues). If quarterly crystallization of BREIT's fee related performance revenues had been in effect for all quarters included in the
current and prior year LTM periods, LTM FRE would have been up 61% year-over-year and LTM Segment DE would have been up 72% year-over-year. See notes on
page 32 for additional details.
Blackstone | 4
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES
§
Strong appreciation across strategies led to a 9% increase in Net Accrued Performance Revenues quarter-over-
quarter to $9.5 billion ($7.94/share).
Investment Performance
(appreciation / gross returns)
1Q'22
1Q'22 LTM
Real Estate
Opportunistic
10.3%
47.6%
Core+
7.9%
30.9%
Private Equity
Corporate Private Equity
2.8%
30.0%
Tactical Opportunities
1.8%
22.0%
Secondaries
8.5%
41.1%
Hedge Fund Solutions
BPS Composite
1.2%
6.9%
Credit & Insurance
Private Credit
1.7%
15.8%
Liquid Credit
(0.5)%
3.0%
Net Accrued Performance Revenues
($ in millions)
Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Hedge Fund Solutions and Credit & Insurance. Secondaries appreciation is
reported on a three-month lag from the fund financial reporting. Effective 3Q'21, the Secondaries fund financial reporting process was updated to generally report underlying fund
investments on a same-quarter basis, if available. Previously such fund financial reporting was generally on a three-month lag. This update has permitted Secondaries appreciation to
be reported on a more current basis. Secondaries appreciation is presented above as if the updated reporting process was in place for prior periods. Secondaries appreciation for 1Q'22
is not impacted by the reporting process change. Including the "catch up" from the reporting process change to reflect the economic and market activity of five quarters in 1Q'22 LTM,
Secondaries appreciation was 55.9% for 1Q'22 LTM. BPS Composite net returns were 1.0% and 5.9% for 1Q'22 and 1Q'22 LTM, respectively. Private Credit net returns were 0.8% and
10.6% for 1Q'22 and 1Q'22 LTM, respectively. Liquid Credit net returns were (0.6)% and 2.7% for 1Q'22 and 1Q'22 LTM, respectively. See notes on pages 32-33 for additional details on
investment performance.
Blackstone | 5
CAPITAL METRICS - ADDITIONAL DETAIL
§
Inflows were $49.9 billion in the quarter, bringing LTM inflows to $288.7 billion.
§
Realizations were $23.2 billion in the quarter and $85.6 billion over the LTM.
§
Deployed $22.8 billion in the quarter and $149.5 billion over the LTM.
-
Committed an additional $16.5 billion that was not yet deployed in the quarter.
Inflows
Realizations
Capital Deployed
($ in millions)
1Q'22
1Q'22 LTM
1Q'22
1Q'22 LTM
1Q'22
1Q'22 LTM
Real Estate
$
17,043
$
83,720
$
9,538
$
27,074
$
7,491
$
47,153
Opportunistic
2,391
10,582
5,762
17,306
1,519
10,064
Core+
12,196
42,606
2,779
6,761
4,878
33,888
BREDS
2,457
30,532
997
3,008
1,094
3,201
Private Equity
9,234
55,260
7,726
36,249
7,513
49,920
Corporate Private Equity
2,505
12,605
4,133
18,178
3,005
20,705
Tactical Opportunities
1,422
9,156
875
6,983
1,991
7,044
Secondaries
2,834
24,298
2,400
10,248
2,288
12,369
Infrastructure
2,473
9,202
316
840
229
9,802
Hedge Fund Solutions
4,015
13,870
438
1,872
428
4,844
Credit & Insurance
19,583
135,892
5,534
20,382
7,352
47,574
Total Blackstone
$
49,875
$
288,743
$
23,236
$
85,577
$
22,784
$
149,490
Corporate Private Equity also includes Life Sciences and BTAS. Tactical Opportunities also includes Blackstone Growth.
Blackstone | 6
ASSETS UNDER MANAGEMENT
§
Total AUM increased to $915.5 billion, up 41% year-over-year, with $49.9 billion of inflows in the quarter
and $288.7 billion over the LTM.
§
Fee-Earning AUM of $677.9 billion was up 41% year-over-year, with $45.4 billion of inflows in the quarter
and $246.7 billion over the LTM.
§
Perpetual Capital AUM reached $338.2 billion, up 127% year-over-year.
-
Fee-Earning Perpetual Capital AUM reached $294.6 billion, representing 43% of Fee-Earning AUM.
Total AUM
($ in billions)
Fee-Earning AUM
($ in billions)
Perpetual Capital AUM
($ in billions)
Blackstone | 7
ADDITIONAL CAPITAL DETAIL
§
Invested Performance Eligible AUM reached $481.3 billion at quarter end, up 50% year-over-year.
§
Undrawn capital ("Total Dry Powder") available for investment of $139.3 billion.
Invested Performance Eligible AUM
Total Dry Powder
($ in billions)
($ in billions)
Invested Performance Eligible AUM represents the fair value of invested assets that are eligible to earn performance revenues.
Blackstone | 8
Segment Highlights
Blackstone | 9
REAL ESTATE
§
Total AUM: Increased 52% to $298.2 billion with inflows of $17.0 billion in the quarter and $83.7 billion over the LTM.
-
Inflows during the quarter included $9.8 billion in BREIT, $1.9 billion across BPP, $1.1 billion in the third Asian opportunistic fund which commenced its investment period on March 4, and €469 million capital raised in BEPIF.
-
April 1 subscriptions of $2.5 billion in BREIT not yet included in Total AUM.
§
Realizations: $9.5 billion in the quarter and $27.1 billion over the LTM; realizations include $4.3 billion of proceeds primarily from refinancings across the BREP U.S. logistics portfolio.
-
In the quarter, BREIT's fee related performance revenue was amended to crystallize quarterly instead of annually.
§
Capital Deployed: $7.5 billion in the quarter and $47.2 billion over the LTM.
-
Committed an additional $9.4 billion that was not yet deployed in the quarter; commitments include the privatization of a publicly traded U.S. REIT and a public Australian casino operator.
§
Appreciation: Opportunistic funds and Core+ funds appreciated 10.3% and 7.9% for the quarter, and 47.6% and 30.9% over the LTM, respectively, driven by strong performance in global logistics, residential and life sciences portfolios.
% Change
% Change
($ in thousands)
1Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'22 LTM
vs. 1Q'21 LTM
Management Fees, Net
$
451,582
$
619,711
37%
$
1,704,149
$
2,220,437
30%
Fee Related Performance Revenues
155,392
491,517
216%
489,002
2,031,144
315%
Fee Related Compensation
(188,492
)
(344,842
)
83%
(686,301
)
(1,317,699
)
92%
Other Operating Expenses
(44,362
)
(66,003
)
49%
(187,018
)
(256,146
)
37%
Fee Related Earnings
$
374,120
$
700,383
87%
$
1,319,832
$
2,677,736
103%
Realized Performance Revenues
88,638
802,916
806%
832,686
1,833,890
120%
Realized Performance Compensation
(22,762
)
(290,031
)
n/m
(322,068
)
(710,489
)
121%
Realized Principal Investment Income
100,820
53,975
(46)%
118,284
150,024
27%
Net Realizations
166,696
566,860
240%
628,902
1,273,425
102%
Segment Distributable Earnings
$
540,816
$
1,267,243
134%
$
1,948,734
$
3,951,161
103%
Segment Revenues
$
796,432
$
1,968,119
147%
$
3,144,121
$
6,235,495
98%
Total AUM
$
196,277,032
$
298,196,783
52%
$
196,277,032
$
298,196,783
52%
Fee-Earning AUM
$
155,851,794
$
240,621,453
54%
$
155,851,794
$
240,621,453
54%
Blackstone | 10
PRIVATE EQUITY
§
Total AUM: Increased 27% to $268.0 billion with inflows of $9.2 billion in the quarter and $55.3 billion over the LTM.
-
Inflows in the quarter included $2.5 billion in Blackstone Infrastructure Partners and $749 million for the ninth Secondaries fund.
§
Realizations: $7.7 billion in the quarter and $36.2 billion over the LTM; realizations in the quarter included proceeds from IntraFi, Apria, and other private and public sales.
§
Capital Deployed: $7.5 billion in the quarter and $49.9 billion over the LTM, including investments in Renaissance Learning, Interplex, and ASK Investment Management during the quarter.
-
Committed an additional $2.0 billion that was not yet deployed in the quarter.
§
Appreciation: Corporate Private Equity appreciated 2.8% in the quarter and 30.0% over the LTM.
-
Tactical Opportunities appreciated 1.8% in the quarter and 22.0% over the LTM; Secondaries appreciated 8.5% in the quarter and 41.1% over the LTM.
% Change
% Change
($ in thousands)
1Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'22 LTM
vs. 1Q'21 LTM
Management and Advisory Fees, Net
$
406,448
$
406,988
0%
$
1,410,116
$
1,663,471
18%
Fee Related Performance Revenues
-
(648
)
n/m
-
211,480
n/m
Fee Related Compensation
(140,597
)
(151,050
)
7%
(485,767
)
(673,277
)
39%
Other Operating Expenses
(51,055
)
(67,744
)
33%
(205,267
)
(281,157
)
37%
Fee Related Earnings
$
214,796
$
187,546
(13)%
$
719,082
$
920,517
28%
Realized Performance Revenues
255,845
450,238
76%
1,021,262
2,457,492
141%
Realized Performance Compensation
(111,209
)
(206,703
)
86%
(423,515
)
(1,038,693
)
145%
Realized Principal Investment Income
115,403
65,438
(43)%
177,145
213,403
20%
Net Realizations
260,039
308,973
19%
774,892
1,632,202
111%
Segment Distributable Earnings
$
474,835
$
496,519
5%
$
1,493,974
$
2,552,719
71%
Segment Revenues
$
777,696
$
922,016
19%
$
2,608,523
$
4,545,846
74%
Total AUM
$
211,801,085
$
267,956,351
27%
$
211,801,085
$
267,956,351
27%
Fee-Earning AUM
$
131,903,347
$
160,946,196
22%
$
131,903,347
$
160,946,196
22%
See note on page 5 for additional details on Secondaries appreciation.
Blackstone | 11
HEDGE FUND SOLUTIONS
§
Total AUM: Record $82.9 billion with inflows of $4.0 billion in the quarter and $13.9 billion over the LTM.
-
Increase driven by fundraising activities as well as market appreciation of $754 million in the quarter and $4.8 billion over the LTM.
-
April 1 subscriptions of $226 million not yet included in Total AUM.
§
Returns: BPS Composite gross return of 1.2% in the quarter (1.0% net).
-
Gross returns of 6.9% over the LTM (5.9% net), with significantly less volatility than the broader markets, compared to 0.9% return for the HFRX Global Hedge Fund Index.
% Change
% Change
($ in thousands)
1Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'22 LTM
vs. 1Q'21 LTM
Management Fees, Net
$
154,821
$
146,446
(5)%
$
602,528
$
639,508
6%
Fee Related Compensation
(38,850
)
(47,235
)
22%
(154,372
)
(164,900
)
7%
Other Operating Expenses
(19,172
)
(23,184
)
21%
(80,263
)
(98,804
)
23%
Fee Related Earnings
$
96,799
$
76,027
(21)%
$
367,893
$
375,804
2%
Realized Performance Revenues
31,573
28,913
(8)%
209,595
288,320
38%
Realized Performance Compensation
(6,908
)
(9,000
)
30%
(37,187
)
(78,793
)
112%
Realized Principal Investment Income
35,550
14,901
(58)%
90,269
36,084
(60)%
Net Realizations
60,215
34,814
(42)%
262,677
245,611
(6)%
Segment Distributable Earnings
$
157,014
$
110,841
(29)%
$
630,570
$
621,415
(1)%
Segment Revenues
$
221,944
$
190,260
(14)%
$
902,392
$
963,912
7%
Total AUM
$
81,819,220
$
82,896,827
1%
$
81,819,220
$
82,896,827
1%
Fee-Earning AUM
$
76,614,206
$
75,685,828
(1)%
$
76,614,206
$
75,685,828
(1)%
Blackstone | 12
CREDIT & INSURANCE
§
Total AUM: Increased 68% to $266.4 billion with inflows of $19.6 billion in the quarter and $135.9 billion over the LTM.
-
Inflows during the quarter included $5.2 billion of equity raised for BCRED and $3.7 billion for Direct Lending SMAs.
-
April 1 subscriptions of $1.6 billion for BCRED not yet included in Total AUM.
-
Closed 3 new CLOs (2 U.S. and 1 European) for $2.3 billion and closed 3 CLO refinancings and resets (2 U.S. and 1 European) for $1.6 billion.
§
Realizations: $5.5 billion in the quarter and $20.4 billion over the LTM.
§
Capital Deployed: $7.4 billion in the quarter, driven by $5.1 billion in Direct Lending, and $47.6 billion over the LTM; committed an additional $5.1 billion that was not yet deployed in the quarter.
§
Returns: Private Credit gross return of 1.7% (0.8% net) and Liquid Credit gross return of (0.5)% ((0.6)% net) for the quarter.
% Change
% Change
($ in thousands)
1Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'22 LTM
vs. 1Q'21 LTM
Management Fees, Net
$
165,354
$
300,223
82%
$
632,010
$
938,989
49%
Fee Related Performance Revenues
13,776
67,196
388%
46,376
171,517
270%
Fee Related Compensation
(77,171
)
(127,344
)
65%
(268,976
)
(417,495
)
55%
Other Operating Expenses
(46,835
)
(57,167
)
22%
(173,208
)
(210,244
)
21%
Fee Related Earnings
$
55,124
$
182,908
232%
$
236,202
$
482,767
104%
Realized Performance Revenues
25,267
30,743
22%
36,540
214,897
488%
Realized Performance Compensation
(10,045
)
(13,386
)
33%
(11,199
)
(97,791
)
773%
Realized Principal Investment Income
46,383
22,781
(51)%
51,101
47,194
(8)%
Net Realizations
61,605
40,138
(35)%
76,442
164,300
115%
Segment Distributable Earnings
$
116,729
$
223,046
91%
$
312,644
$
647,067
107%
Segment Revenues
$
250,780
$
420,943
68%
$
766,027
$
1,372,597
79%
Total AUM
$
158,905,670
$
266,441,781
68%
$
158,905,670
$
266,441,781
68%
Fee-Earning AUM
$
116,856,060
$
200,689,825
72%
$
116,856,060
$
200,689,825
72%
Blackstone | 13
Supplemental Details
Blackstone | 14
TOTAL SEGMENTS
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21 LTM
1Q'22 LTM
Base Management Fees
$
1,117,290
$
1,140,051
$
1,207,866
$
1,354,068
$
1,439,149
$
4,178,948
$
5,141,134
Transaction, Advisory and Other Fees, Net
78,640
78,125
114,784
120,389
64,009
235,850
377,307
Management Fee Offsets
(17,725
)
(5,434
)
(2,575
)
(18,237
)
(29,790
)
(65,995
)
(56,036
)
Total Management and Advisory Fees, Net
1,178,205
1,212,742
1,320,075
1,456,220
1,473,368
4,348,803
5,462,405
Fee Related Performance Revenues
169,168
48,889
73,313
1,733,874
558,065
535,378
2,414,141
Fee Related Compensation
(445,110
)
(375,385
)
(419,481
)
(1,108,034
)
(670,471
)
(1,595,416
)
(2,573,371
)
Other Operating Expenses
(161,424
)
(182,178
)
(194,942
)
(255,133
)
(214,098
)
(645,756
)
(846,351
)
Fee Related Earnings
$
740,839
$
704,068
$
778,965
$
1,826,927
$
1,146,864
$
2,643,009
$
4,456,824
Realized Performance Revenues
401,323
792,938
1,497,477
1,191,374
1,312,810
2,100,083
4,794,599
Realized Performance Compensation
(150,924
)
(338,271
)
(619,074
)
(449,301
)
(519,120
)
(793,969
)
(1,925,766
)
Realized Principal Investment Income
298,156
63,132
151,010
75,468
157,095
436,799
446,705
Total Net Realizations
548,555
517,799
1,029,413
817,541
950,785
1,742,913
3,315,538
Total Segment Distributable Earnings
$
1,289,394
$
1,221,867
$
1,808,378
$
2,644,468
$
2,097,649
$
4,385,922
$
7,772,362
Net Interest and Dividend Income (Loss)
(12,928
)
(11,201
)
(16,238
)
6,779
(12,117
)
(43,897
)
(32,777
)
Taxes and Related Payables
(84,222
)
(140,673
)
(156,867
)
(377,920
)
(147,652
)
(365,296
)
(823,112
)
Distributable Earnings
$
1,192,244
$
1,069,993
$
1,635,273
$
2,273,327
$
1,937,880
$
3,976,729
$
6,916,473
Additional Metrics:
Total Segment Revenues
$
2,046,852
$
2,117,701
$
3,041,875
$
4,456,936
$
3,501,338
$
7,421,063
$
13,117,850
Total Assets Under Management
$
648,803,007
$
684,028,712
$
730,662,712
$
880,901,720
$
915,491,742
$
648,803,007
$
915,491,742
Fee-Earning Assets Under Management
$
481,225,407
$
498,932,526
$
528,412,550
$
649,969,058
$
677,943,302
$
481,225,407
$
677,943,302
Blackstone | 15
ASSETS UNDER MANAGEMENT - ROLLFORWARD
Total AUM Rollforward
($ in millions)
Three Months Ended March 31, 2022
Twelve Months Ended March 31, 2022
Real
Estate
Private
Equity
Hedge Fund
Solutions
Credit &
Insurance
Total
Real
Estate
Private
Equity
Hedge Fund
Solutions
Credit &
Insurance
Total
Beginning Balance
$
279,474
$
261,471
$
81,334
$
258,622
$
880,902
$
196,277
$
211,801
$
81,819
$
158,906
$
648,803
Inflows
17,043
9,234
4,015
19,583
49,875
83,720
55,260
13,870
135,892
288,743
Outflows
(2,296)
(1,420)
(2,768)
(3,520)
(10,004)
(5,632)
(3,639)
(15,708)
(11,140)
(36,119)
Net Flows
14,748
7,813
1,247
16,063
39,871
78,087
51,622
(1,837)
124,752
252,624
Realizations
(9,538)
(7,726)
(438)
(5,534)
(23,236)
(27,074)
(36,249)
(1,872)
(20,382)
(85,577)
Market Activity
13,513
6,398
754
(2,710)
17,955
50,907
40,782
4,787
3,166
99,642
Ending Balance
$
298,197
$
267,956
$
82,897
$
266,442
$
915,492
$
298,197
$
267,956
$
82,897
$
266,442
$
915,492
% Change
7%
2%
2%
3%
4%
52%
27%
1%
68%
41%
Fee-Earning AUM Rollforward
($ in millions)
Three Months Ended March 31, 2022
Twelve Months Ended March 31, 2022
Real
Estate
Private
Equity
Hedge Fund
Solutions
Credit &
Insurance
Total
Real
Estate
Private
Equity
Hedge Fund
Solutions
Credit &
Insurance
Total
Beginning Balance
$
221,477
$
156,557
$
74,035
$
197,901
$
649,969
$
155,852
$
131,903
$
76,614
$
116,856
$
481,225
Inflows
22,791
5,450
4,170
12,949
45,360
87,282
38,508
12,820
108,074
246,685
Outflows
(4,290)
(873)
(2,582)
(3,072)
(10,817)
(6,539)
(3,958)
(15,940)
(9,904)
(36,342)
Net Flows
18,501
4,577
1,588
9,877
34,543
80,743
34,550
(3,120)
98,170
210,343
Realizations
(5,292)
(2,688)
(363)
(3,496)
(11,839)
(17,647)
(12,805)
(1,743)
(13,024)
(45,220)
Market Activity
5,935
2,500
426
(3,592)
5,270
21,674
7,298
3,935
(1,312)
31,595
Ending Balance
$
240,621
$
160,946
$
75,686
$
200,690
$
677,943
$
240,621
$
160,946
$
75,686
$
200,690
$
677,943
% Change
9%
3%
2%
1%
4%
54%
22%
(1)%
72%
41%
Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment allocations and
acquisitions. Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments).
Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from CLOs. Market Activity includes
realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. AUM is reported in the segment where the assets are managed.
Total AUM Market Activity for the LTM period includes an adjustment for a change in methodology, see additional notes on page 33.
Blackstone | 16
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS
§
At March 31, 2022, Blackstone had $8.8 billion in total cash, cash equivalents, corporate treasury, and other investments and $20.6 billion of cash and net investments, or $17.15 per share.
§
Blackstone has a $2.3 billion undrawn credit revolver and maintains A+/A+ ratings.
($ in millions)
1Q'22
Cash and Cash Equivalents
$
3,869
Corporate Treasury and
Other Investments
4,958
GP/Fund Investments
2,235
Net Accrued Performance
Revenues
9,546
Cash and Net Investments
$
20,608
Outstanding Debt (at par)
9,060
Cash and Net Investments
(per share)
A+ / A+
rated by S&P and Fitch
$2.3B
credit revolver with
November 2025 maturity
$8.8B
total cash, corporate
treasury and other
Balance Sheet Highlights exclude the consolidated Blackstone Funds. Other Investments was $3.5 billion as of March 31, 2022, which was comprised of
$1.1 billion of liquid investments and $2.4 billion of illiquid investments. See notes on pages 29 and 33 for additional details on non-GAAP balance sheet
measures.
Blackstone | 17
NET ACCRUED PERFORMANCE REVENUES - ADDITIONAL DETAIL
($ in millions, except per share data)
1Q'21
4Q'21
1Q'22
1Q'22
Per Share
Real Estate
BREP IV
$
18
$
22
$
6
$
0.01
BREP V
18
36
1
0.00
BREP VI
39
33
38
0.03
BREP VII
253
481
527
0.44
BREP VIII
519
962
990
0.82
BREP IX
198
901
1,139
0.95
BREP Europe IV
92
89
93
0.08
BREP Europe V
244
521
548
0.46
BREP Europe VI
-
253
301
0.25
BREP Asia I
179
126
126
0.10
BREP Asia II
78
162
189
0.16
BPP
189
505
734
0.61
BREIT
82
-
-
-
BEPIF
-
2
6
0.00
BREDS
31
46
37
0.03
BTAS
1
57
83
0.07
Real Estate
$
1,941
$
4,197
$
4,817
$
4.01
Private Equity
BCP IV
9
8
8
$
0.01
BCP V
37
45
-
-
BCP VI
746
469
475
0.40
BCP VII
987
1,313
1,257
1.05
BCP VIII
41
275
315
0.26
BCP Asia I
105
380
330
0.27
BEP I
52
27
27
0.02
BEP III
34
68
93
0.08
BCEP
147
214
222
0.19
Tactical Opportunities
320
382
378
0.31
Growth
39
36
12
0.01
Secondaries
157
489
570
0.47
Infrastructure
43
-
106
0.09
Life Sciences
19
21
22
0.02
BTAS/Other
93
211
255
0.21
Private Equity
$
2,831
$
3,939
$
4,070
$
3.39
Hedge Fund Solutions
$
214
$
280
$
342
$
0.28
Credit & Insurance
$
216
$
323
$
318
$
0.26
Net Accrued Performance Revenues
$
5,202
$
8,738
$
9,546
$
7.94
1Q'22 QoQ Rollforward
($ in millions)
Net
Net
Performance
Realized
4Q'21
Revenues
Distributions
1Q'22
Real Estate
$
4,197
$
1,417
$
(796
)
$
4,817
Private Equity
3,939
374
(243
)
4,070
HFS
280
88
(26
)
342
Credit &
Insurance
323
51
(56
)
318
Total
$
8,738
$
1,930
$
(1,121
)
$
9,546
QoQ Change
9%
1Q'22 LTM Rollforward
($ in millions)
Net
Net
Performance
Realized
1Q'21
Revenues
Distributions
1Q'22
Real Estate
$
1,941
$
5,198
$
(2,322
)
$
4,817
Private Equity
2,831
2,777
(1,539
)
4,070
HFS
214
354
(226
)
342
Credit &
Insurance
216
316
(214
)
318
Total
$
5,202
$
8,645
$
(4,301
)
$
9,546
YoY Change
84%
Net Accrued Performance Revenues ("NAPR") are presented net of performance compensation and excludes Performance Revenues realized but not yet distributed
as of the reporting date and clawback amounts, if any, which are disclosed in the 10-K/Q. Real Estate and Private Equity include co-investments, as applicable. Per
Share calculations are based on end of period DE Shares Outstanding (see page 23, Share Summary).
Blackstone | 18
INVESTMENT RECORDS AS OF MARCH 31, 2022(a)
($/€ in thousands, except where noted)
Committed
Available
Unrealized Investments
Realized Investments
Total Investments
Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date)
Capital
Capital (b)
Value
MOIC (c)
Value
MOIC (c)
Value
MOIC (c)
Realized
Total
Real Estate
Pre-BREP
$
140,714
$
-
$
-
n/a
$
345,190
2.5x
$
345,190
2.5x
33%
33%
BREP I (Sep 1994 / Oct 1996)
380,708
-
-
n/a
1,327,708
2.8x
1,327,708
2.8x
40%
40%
BREP II (Oct 1996 / Mar 1999)
1,198,339
-
-
n/a
2,531,614
2.1x
2,531,614
2.1x
19%
19%
BREP III (Apr 1999 / Apr 2003)
1,522,708
-
-
n/a
3,330,406
2.4x
3,330,406
2.4x
21%
21%
BREP IV (Apr 2003 / Dec 2005)
2,198,694
-
23,471
n/a
4,640,501
1.7x
4,663,972
1.7x
12%
12%
BREP V (Dec 2005 / Feb 2007)
5,539,418
-
8,546
n/a
13,444,906
2.3x
13,453,452
2.3x
11%
11%
BREP VI (Feb 2007 / Aug 2011)
11,060,444
550,452
408,815
2.2x
27,407,685
2.5x
27,816,500
2.5x
13%
13%
BREP VII (Aug 2011 / Apr 2015)
13,501,376
1,513,361
7,589,097
1.7x
23,864,256
2.1x
31,453,353
2.0x
22%
15%
BREP VIII (Apr 2015 / Jun 2019)
16,591,084
2,281,492
17,009,035
1.8x
19,609,674
2.5x
36,618,709
2.1x
29%
19%
*BREP IX (Jun 2019 / Dec 2024)
21,321,251
9,461,862
22,133,179
1.9x
6,024,086
2.1x
28,157,265
1.9x
66%
47%
Total Global BREP
$
73,454,736
$
13,807,167
$
47,172,143
1.8x
$
102,526,026
2.3x
$
149,698,169
2.1x
18%
17%
BREP Int'l (Jan 2001 / Sep 2005)
€
824,172
€
-
€
-
n/a
€
1,373,170
2.1x
€
1,373,170
2.1x
23%
23%
BREP Int'l II (Sep 2005 / Jun 2008) (e)
1,629,748
-
-
n/a
2,583,032
1.8x
2,583,032
1.8x
8%
8%
BREP Europe III (Jun 2008 / Sep 2013)
3,205,167
421,732
280,829
0.5x
5,792,215
2.4x
6,073,044
2.0x
19%
14%
BREP Europe IV (Sep 2013 / Dec 2016)
6,673,049
1,378,153
1,883,356
1.3x
9,699,087
2.0x
11,582,443
1.8x
20%
14%
BREP Europe V (Dec 2016 / Oct 2019)
7,965,079
1,338,957
10,018,509
1.7x
2,336,451
2.7x
12,354,960
1.8x
39%
15%
*BREP Europe VI (Oct 2019 / Apr 2025)
9,901,655
5,670,276
6,911,549
1.6x
471,010
2.0x
7,382,559
1.7x
60%
32%
Total BREP Europe
€
30,198,870
€
8,809,118
€
19,094,243
1.6x
€
22,254,965
2.1x
€
41,349,208
1.8x
16%
13%
BREP Asia I (Jun 2013 / Dec 2017)
$
4,261,983
$
917,144
$
2,435,276
1.5x
$
6,206,034
2.1x
$
8,641,310
1.9x
20%
13%
BREP Asia II (Dec 2017 / Mar 2022)
7,338,909
2,007,555
7,252,702
1.4x
761,817
1.8x
8,014,519
1.4x
42%
13%
*BREP Asia III (Mar 2022 / Sep 2027)
7,502,256
7,502,256
-
n/a
-
n/a
-
n/a
n/a
n/a
BREP Co-Investment (f)
7,131,383
37,934
973,293
2.3x
15,029,656
2.2x
16,002,949
2.2x
16%
16%
Total BREP
$
135,148,753
$
34,021,106
$
79,856,621
1.7x
$
152,235,747
2.2x
$
232,092,368
2.0x
17%
16%
*BREDS High-Yield (Various) (g)
19,986,312
5,702,368
5,721,393
1.1x
15,438,412
1.3x
21,159,805
1.2x
11%
10%
Private Equity
Corporate Private Equity
BCP I (Oct 1987 / Oct 1993)
$
859,081
$
-
$
-
n/a
$
1,741,738
2.6x
$
1,741,738
2.6x
19%
19%
BCP II (Oct 1993 / Aug 1997)
1,361,100
-
-
n/a
3,256,819
2.5x
3,256,819
2.5x
32%
32%
BCP III (Aug 1997 / Nov 2002)
3,967,422
-
-
n/a
9,184,688
2.3x
9,184,688
2.3x
14%
14%
BCOM (Jun 2000 / Jun 2006)
2,137,330
24,575
15,928
n/a
2,953,649
1.4x
2,969,577
1.4x
6%
6%
BCP IV (Nov 2002 / Dec 2005)
6,773,182
169,884
127,159
1.3x
21,479,599
2.9x
21,606,758
2.8x
36%
36%
BCP V (Dec 2005 / Jan 2011)
21,009,112
1,035,259
110,390
7.5x
38,427,169
1.9x
38,537,559
1.9x
8%
8%
BCP VI (Jan 2011 / May 2016)
15,202,513
1,378,295
7,754,859
1.8x
23,846,668
2.3x
31,601,527
2.1x
17%
13%
BCP VII (May 2016 / Feb 2020)
18,852,880
1,931,935
25,281,125
1.9x
10,049,608
2.4x
35,330,733
2.0x
35%
19%
*BCP VIII (Feb 2020 / Feb 2026)
25,424,279
17,027,500
12,308,856
1.5x
514,942
2.9x
12,823,798
1.5x
125%
45%
Energy I (Aug 2011 / Feb 2015)
2,441,558
174,492
705,759
1.5x
3,869,928
2.0x
4,575,687
1.9x
15%
12%
Energy II (Feb 2015 / Feb 2020)
4,933,284
1,030,529
4,954,452
1.6x
1,588,019
1.1x
6,542,471
1.4x
2%
7%
*Energy III (Feb 2020 / Feb 2026)
4,329,863
3,067,781
2,117,059
1.9x
320,742
2.7x
2,437,801
2.0x
113%
57%
BCP Asia I (Dec 2017 / Sep 2021)
2,452,754
869,042
4,636,769
3.0x
995,878
4.9x
5,632,647
3.2x
115%
61%
*BCP Asia II (Sep 2021 / Sep 2027)
6,554,832
6,529,852
9,373
n/a
-
n/a
9,373
n/a
n/a
n/a
Core Private Equity I (Jan 2017 / Mar 2021) (h)
4,764,447
1,149,384
8,022,079
2.1x
2,020,771
3.6x
10,042,850
2.3x
52%
26%
*Core Private Equity II (Mar 2021 / Mar 2026) (h)
8,191,582
6,750,467
1,493,095
1.1x
-
n/a
1,493,095
1.1x
n/a
n/m
Total Corporate Private Equity
$
129,255,219
$
41,138,995
$
67,536,903
1.8x
$
120,250,218
2.2x
$
187,787,121
2.0x
16%
16%
Notes on page 21. BREP - Blackstone Real Estate Partners, BREDS - Blackstone Real Estate Debt Strategies, BCP - Blackstone Capital Partners, BCOM - Blackstone Communications.
* Represents funds that are currently in their investment period.
Blackstone | 19
INVESTMENT RECORDS AS OF MARCH 31, 2022(a) - (CONT'D)
($/€ in thousands, except where noted)
Committed
Available
Unrealized Investments
Realized Investments
Total Investments
Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date)
Capital
Capital (b)
Value
MOIC (c)
Value
MOIC (c)
Value
MOIC (c)
Realized
Total
Private Equity (continued)
Tactical Opportunities
*Tactical Opportunities (Various)
$
22,736,825
$
6,769,836
$
14,405,782
1.4x
$
18,216,793
1.9x
$
32,622,575
1.6x
18%
13%
*Tactical Opportunities Co-Investment and Other (Various)
14,348,123
5,975,749
5,852,894
1.8x
6,734,373
1.6x
12,587,267
1.7x
19%
19%
Total Tactical Opportunities
$
37,084,948
$
12,745,585
$
20,258,676
1.5x
$
24,951,166
1.8x
$
45,209,842
1.6x
19%
14%
*Growth (Jul 2020 / Jul 2025)
5,046,626
1,914,667
3,472,702
1.1x
337,102
3.2x
3,809,804
1.2x
n/m
17%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (i)
11,447,898
842,769
460,940
n/a
16,871,169
n/a
17,332,109
1.7x
n/a
13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i)
4,362,750
1,451,461
1,236,940
n/a
3,941,301
n/a
5,178,241
1.7x
n/a
15%
Strategic Partners VII (May 2016 / Mar 2019) (i)
7,489,970
1,871,515
5,544,959
n/a
5,089,030
n/a
10,633,989
2.1x
n/a
23%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)
1,749,807
493,169
999,444
n/a
968,153
n/a
1,967,597
1.5x
n/a
15%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)
10,763,600
5,085,423
10,069,319
n/a
3,956,714
n/a
14,026,033
1.9x
n/a
57%
*Strategic Partners Real Estate, SMA and Other (Various) (i)
7,878,498
2,346,047
3,389,313
n/a
2,875,142
n/a
6,264,455
1.6x
n/a
20%
*Strategic Partners Infra III (Jun 2020 / Jul 2024) (i)
3,250,100
2,084,092
565,067
n/a
124,956
n/a
690,023
1.6x
n/a
67%
*Strategic Partners IX (Oct 2021 / Jul 2026) (i)
13,536,771
10,111,164
2,502,428
n/a
-
n/a
2,502,428
1.3x
n/a
n/m
Total Strategic Partners (Secondaries)
$
60,479,394
$
24,285,640
$
24,768,410
n/a
$
33,826,465
n/a
$
58,594,875
1.8x
n/a
16%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)
910,000
13,755
815,050
1.5x
232,776
1.9x
1,047,826
1.6x
25%
15%
*BXLS V (Jan 2020 / Jan 2025)
4,775,203
1,952,326
1,137,803
1.2x
-
n/a
1,137,803
1.2x
n/a
(2)%
Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)
$
2,000,000
$
97,114
$
20,241
1.6x
$
4,785,527
1.6x
$
4,805,768
1.6x
n/a
17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)
4,120,000
1,007,436
436,872
0.5x
6,338,457
1.6x
6,775,329
1.4x
n/a
10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)
6,639,133
915,252
4,321,060
1.1x
5,013,903
1.6x
9,334,963
1.3x
n/a
11%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)
5,016,771
3,904,772
1,248,665
1.0x
31,378
n/m
1,280,043
1.1x
n/a
11%
Stressed / Distressed I (Sep 2009 / May 2013)
3,253,143
76,000
-
n/a
5,776,181
1.3x
5,776,181
1.3x
n/a
9%
Stressed / Distressed II (Jun 2013 / Jun 2018)
5,125,000
547,430
430,963
0.5x
5,213,790
1.2x
5,644,753
1.1x
n/a
2%
*Stressed / Distressed III (Dec 2017 / Dec 2022)
7,356,380
3,477,014
2,066,718
0.9x
2,382,486
1.4x
4,449,204
1.1x
n/a
8%
Energy I (Nov 2015 / Nov 2018)
2,856,867
1,057,174
959,388
1.0x
2,307,898
1.6x
3,267,286
1.4x
n/a
9%
*Energy II (Feb 2019 / Feb 2024)
3,616,081
2,193,068
1,672,130
1.2x
745,850
1.5x
2,417,980
1.3x
n/a
27%
European Senior Debt I (Feb 2015 / Feb 2019)
€
1,964,689
€
341,823
€
1,002,526
0.9x
€
2,262,946
1.4x
€
3,265,472
1.2x
n/a
5%
*European Senior Debt II (Jun 2019 / Jun 2024)
€
4,088,344
€
2,037,066
€
3,203,147
1.0x
€
1,009,298
1.4x
€
4,212,445
1.1x
n/a
16%
Total Credit Drawdown Funds (j)
$
46,889,033
$
15,922,149
$
15,835,479
1.0x
$
36,351,249
1.4x
$
52,186,728
1.3x
n/a
10%
Selected Perpetual Capital Strategies(k)
($ in thousands, except where noted)
Investment
Total
Total Net
Strategy (Inception Year)
Strategy
AUM
Return (l)
Real Estate
BPP - Blackstone Property Partners (2013) (m)
Core+ Real Estate
$
66,264,521
13%
BREIT - Blackstone Real Estate Income Trust (2017) (n)
BSCH - Blackstone Strategic Capital Holdings (2014) (q)
GP Stakes
10,641,112
18%
Credit
BXSL - Blackstone Secured Lending Fund (2018) (r)
U.S. Direct Lending
10,708,046
10%
BCRED - Blackstone Private Credit Fund (2021) (s)
U.S. Direct Lending
44,569,626
11%
Notes on page 21. BXLS - Blackstone Life Sciences.
* Represents funds that are currently in their investment period.
Blackstone | 20
INVESTMENT RECORDS AS OF MARCH 31, 2022 - NOTES
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc.
n/m
Not meaningful generally due to the limited time since initial investment.
n/a
Not applicable.
(a)
Excludes investment vehicles where Blackstone does not earn fees.
(b)
Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments.
(c)
Multiple of Invested Capital ("MOIC") represents carrying value, before management fees, expenses and Performance Revenues, divided by invested capital.
(d)
Unless otherwise indicated, Net Internal Rate of Return ("IRR") represents the annualized inception to March 31, 2022 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner cash flows. Initial inception date of cash flows may differ from the Investment Period Beginning Date.
(e)
The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR.
(f)
BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment's realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues.
(g)
BREDS High-Yield represents the flagship real estate debt drawdown funds only.
(h)
Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.
(i)
Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOICs are not applicable. Returns are calculated from results that are reported on a three-month lag from Strategic Partners' fund financial statements and therefore do not include the impact of economic and market activities in the current quarter. Effective 1Q'22, Strategic Partners I-V Committed Capital, Available Capital, Unrealized Investment Value, Realized Investment Value and Total Investment Value were updated to exclude funds not managed by Strategic Partners.
(j)
Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.
(k)
Represents the performance for select Perpetual Capital Strategies; strategies excluded consist primarily of (1) investment strategies that have been investing for less than one year, (2) most perpetual capital assets managed for insurance clients, and (3) investment vehicles where Blackstone does not earn fees.
(l)
Unless otherwise indicated, Total Net Return represents the annualized inception to March 31, 2022 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of investor cash flows. Initial inception date of cash flows occurred during the Inception Year.
(m)
BPP includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of March 31, 2022, these vehicles represented $3.3 billion of Total AUM.
(n)
The BREIT Total Net Return reflects a per share blended return, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns experienced by any particular investor or share class. Total Net Returns are presented on an annualized basis and are from January 1, 2017.
(o)
The BXMT return reflects annualized market return of a shareholder invested in BXMT since inception through March 31, 2022, assuming reinvestment of all dividends received during the period. Return incorporates the closing NYSE stock price as of March 31, 2022. Total Net Return is from May 22, 2013.
(p)
Including co-investment vehicles that do not pay fees, BIP Total AUM is $27.3 billion.
(q)
BSCH represents the aggregate Total AUM and Total Net Return of BSCH I and BSCH II funds that invest as part of the GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. Including co-investment vehicles that do not pay fees, BSCH Total AUM is $11.5 billion.
(r)
The BXSL Total AUM and Total Net Return are presented as of December 31, 2021. BXSL Total Net Return reflects the change in NAV per share, plus distributions per share (assuming dividends and distributions are reinvested in accordance with the Company's dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are presented on an annualized basis and are from November 20, 2018.
(s)
The BCRED Total Net Return reflects a per share blended return, assuming BCRED had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. These returns are not representative of the returns experienced by any particular investor or share class. Total Net Returns are presented on an annualized basis and are from January 7, 2021. Total AUM reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset value as of March 31, 2022 was $17.9 billion.
Blackstone | 21
SHAREHOLDER DIVIDENDS
§
Generated $1.55 of Distributable Earnings per common share during the quarter, bringing the LTM amount to $5.36 per common share.
§
Blackstone declared a quarterly dividend of $1.32 per common share to record holders as of May 2, 2022; payable on May 9, 2022.
% Change
% Change
($ in thousands, except per share data)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
vs. 1Q'21
1Q'21 LTM
1Q'22 LTM
vs. 1Q'21 LTM
Distributable Earnings
$
1,192,244
$
1,069,993
$
1,635,273
$
2,273,327
$
1,937,880
63%
$
3,976,729
$
6,916,473
74%
Add: Other Payables Attributable to Common Shareholders
61,249
120,336
133,841
352,514
115,166
88%
285,166
721,856
153%
DE before Certain Payables
1,253,493
1,190,329
1,769,114
2,625,841
2,053,046
64%
4,261,895
7,638,329
79%
Percent to Common Shareholders
59%
60%
60%
61%
61
%
59%
61%
DE before Certain Payables Attributable to
Common Shareholders
741,662
710,081
1,059,142
1,601,199
1,254,703
69%
2,500,139
4,625,125
85%
Less: Other Payables Attributable to
Common Shareholders
(61,249
)
(120,336
)
(133,841
)
(352,514
)
(115,166
)
88%
(285,166
)
(721,856
)
153%
DE Attributable to Common Shareholders
680,413
589,745
925,301
1,248,685
1,139,537
67%
2,214,973
3,903,269
76%
DE per Common Share
$
0.96
$
0.82
$
1.28
$
1.71
$
1.55
61%
$
3.15
$
5.36
70%
Less: Retained Capital per Common Share
$
(0.14
)
$
(0.12
)
$
(0.19
)
$
(0.26
)
$
(0.23
)
64%
$
(0.46
)
$
(0.80
)
74%
Actual Dividend per Common Share
$
0.82
$
0.70
$
1.09
$
1.45
$
1.32
61%
$
2.69
$
4.56
70%
Record Date
May 2, 2022
Payable Date
May 9, 2022
A detailed description of Blackstone's dividend policy and the definition of Distributable Earnings can be found on pages 34-36, Definitions and Dividend Policy.
See additional notes on page 33.
Blackstone | 22
SHARE SUMMARY
§
Distributable Earnings Shares Outstanding as of quarter end of 1.202 billion shares.
-
Repurchased 10.3 million common shares over the LTM.
-
Available authorization remaining was $1.5 billion at March 31, 2022.
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
Participating Common Shares
711,065,543
720,474,539
721,369,398
732,037,197
734,543,862
Participating Partnership Units
490,716,529
487,276,882
483,553,949
468,446,388
467,375,889
Distributable Earnings Shares Outstanding
1,201,782,072
1,207,751,421
1,204,923,347
1,200,483,585
1,201,919,751
Participating Common Shares and Participating Partnership Units include both issued and outstanding shares and unvested shares that participate in dividends.
Blackstone | 23
Reconciliations and Disclosures
Blackstone | 24
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
QTD
LTM
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
Net Income Attributable to Blackstone Inc.
$
1,747,872
$
1,309,152
$
1,401,895
$
1,398,478
$
1,216,874
$
3,859,727
$
5,326,399
Net Income Attributable to Non-Controlling Interests in Blackstone
Holdings
1,235,784
1,116,193
1,315,641
1,218,934
1,059,313
3,128,825
4,710,081
Net Income Attributable to Non-Controlling Interests in
Consolidated Entities
386,850
431,516
486,907
320,033
216,375
1,249,044
1,454,831
Net Income Attributable to Redeemable Non-Controlling
Interests in Consolidated Entities
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - NOTES
Note: See pages 34-36, Definitions and Dividend Policy.
(a)
This adjustment removes Transaction-Related Charges, which are excluded from Blackstone's segment presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone's initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.
(b)
This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone's segment presentation. This amount includes amortization of intangibles associated with Blackstone's investment in Pátria, which was historically accounted for under the equity method. As a result of Pátria's IPO in January 2021, equity method has been discontinued and there will no longer be amortization of intangibles associated with the investment.
(c)
This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone's segment presentation. This adjustment includes the elimination of Blackstone's interest in these funds and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
(d)
This adjustment removes Unrealized Performance Allocations.
(e)
This adjustment removes Unrealized Performance Allocations Compensation.
(f)
This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
QTD
LTM
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
GAAP Unrealized Principal Investment Income (Loss)
$
639,315
$
328,835
$
183,754
$
304,297
$
73,961
$
1,484,073
$
890,847
Segment Adjustment
(215,381
)
(224,177
)
(186,097
)
(150,779
)
(47,203
)
(545,271
)
(608,256
)
Unrealized Principal Investment Income (Loss)
$
423,934
$
104,658
$
(2,343
)
$
153,518
$
26,758
$
938,802
$
282,591
(g) This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of certain Transaction-Related Charges.
QTD
LTM
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
GAAP Other Revenue
$
60,304
$
27,896
$
64,187
$
50,699
$
72,869
$
(331,018
)
$
215,651
Segment Adjustment
(31
)
(26
)
(78
)
(66
)
(50
)
(553
)
(220
)
Other Revenues
$
60,273
$
27,870
$
64,109
$
50,633
$
72,819
$
(331,571
)
$
215,431
(h) This adjustment removes Equity-Based Compensation on a segment basis.
(i) This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone's segment presentation.
(j) Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. Related Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. Please refer to page 34 for the full definition of Taxes and Related Payables.
QTD
LTM
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
Taxes
$
69,609
$
127,809
$
140,548
$
365,109
$
124,645
$
313,904
$
758,111
Related Payables
14,613
12,864
16,319
12,811
23,007
51,392
65,001
Taxes and Related Payables
$
84,222
$
140,673
$
156,867
$
377,920
$
147,652
$
365,296
$
823,112
Blackstone | 26
RECONCILIATION OF GAAP TO NON-GAAP MEASURES - NOTES (CONT'D)
(k) This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.
QTD
LTM
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
GAAP Interest and Dividend Revenue
$
31,412
$
31,017
$
35,048
$
63,166
$
54,485
$
121,559
$
183,716
Segment Adjustment
-
1,914
487
-
-
2,366
2,401
Interest and Dividend Revenue
$
31,412
$
32,931
$
35,535
$
63,166
$
54,485
$
123,925
$
186,117
GAAP Interest Expense
$
44,983
$
44,322
$
52,413
$
56,550
$
66,747
$
169,501
$
220,032
Segment Adjustment
(643
)
(190
)
(640
)
(163
)
(145
)
(1,679
)
(1,138
)
Interest Expense
$
44,340
$
44,132
$
51,773
$
56,387
$
66,602
$
167,822
$
218,894
Net Interest and Dividend Income (Loss)
$
(12,928
)
$
(11,201
)
$
(16,238
)
$
6,779
$
(12,117
)
$
(43,897
)
$
(32,777
)
(l) This adjustment removes the total segment amount of Realized Performance Revenues.
(m) This adjustment removes the total segment amount of Realized Performance Compensation.
(n) This adjustment removes the total segment amount of Realized Principal Investment Income.
(o) This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement.
(p) This adjustment adds back Depreciation and Amortization on a segment basis.
Reconciliation of GAAP Shares of Common Stock Outstanding to Distributable Earnings Shares Outstanding
QTD
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
GAAP Shares of Common Stock Outstanding
690,569,563
691,093,463
693,612,698
704,339,774
707,180,830
Unvested Participating Common Shares
20,495,980
29,381,076
27,756,700
27,697,423
27,363,032
Total Participating Common Shares
711,065,543
720,474,539
721,369,398
732,037,197
734,543,862
Participating Partnership Units
490,716,529
487,276,882
483,553,949
468,446,388
467,375,889
Distributable Earnings Shares Outstanding
1,201,782,072
1,207,751,421
1,204,923,347
1,200,483,585
1,201,919,751
Disclosure of Weighted-Average Shares Common Stock Outstanding
QTD
LTM
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
Total GAAP Weighted-Average Shares of
Common Stock Outstanding - Basic
709,033,212
721,141,954
722,229,117
726,445,206
734,327,015
702,549,444
726,003,755
Weighted-Average Shares of Unvested Deferred
Restricted Common Stock
879,132
123,226
203,982
226,315
639,900
445,528
427,485
Total GAAP Weighted-Average Shares of Common Stock Outstanding - Diluted
709,912,344
721,265,180
722,433,099
726,671,521
734,966,915
702,994,972
726,431,240
Blackstone | 27
BLACKSTONE'S FIRST QUARTER 2022 GAAP BALANCE SHEET RESULTS
($ in thousands) (unaudited)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
Assets
Cash and Cash Equivalents
$
2,862,422
$
2,467,444
$
5,011,433
$
2,119,738
$
3,868,567
Cash Held by Blackstone Funds and Other
109,285
109,676
113,731
79,994
110,648
Investments
17,943,309
22,163,322
25,104,195
28,665,043
30,068,474
Accounts Receivable
975,610
582,542
496,265
636,616
517,465
Due from Affiliates
3,015,318
3,159,829
3,718,119
4,656,867
4,004,359
Intangible Assets, Net
340,478
321,780
303,082
284,384
265,686
Goodwill
1,890,185
1,890,202
1,890,202
1,890,202
1,890,202
Other Assets
434,475
556,714
538,567
492,936
422,786
Right-of-Use Assets
736,633
723,539
745,886
788,991
868,437
Deferred Tax Assets
1,402,271
1,322,144
1,116,612
1,581,637
1,327,454
Total Assets
$
29,709,986
$
33,297,192
$
39,038,092
$
41,196,408
$
43,344,078
Liabilities and Equity
Loans Payable
$
5,573,965
$
5,594,648
$
7,527,576
$
7,748,163
$
8,937,456
Due to Affiliates
1,161,775
1,226,504
1,426,209
1,906,098
1,881,054
Accrued Compensation and Benefits
4,376,226
5,789,662
7,399,559
7,905,070
8,140,773
Securities Sold, Not Yet Purchased
33,160
35,783
35,657
27,849
27,278
Repurchase Agreements
58,050
57,247
36,545
57,980
77,289
Operating Lease Liabilities
842,692
841,152
863,020
908,033
986,073
Accounts Payable, Accrued Expenses and Other Liabilities
838,930
1,205,182
871,661
937,169
1,053,128
Total Liabilities
12,884,798
14,750,178
18,160,227
19,490,362
21,103,051
Redeemable Non-Controlling Interests in Consolidated Entities
65,546
65,568
66,824
68,028
41,430
Equity
Common Stock, $0.00001 par value (707,180,830 shares issued
and outstanding as of March 31, 2022)
7
7
7
7
7
Series I Preferred Stock, $0.00001 par value (1 share issued
and outstanding as of March 31, 2022)
-
-
-
-
-
Series II Preferred Stock, $0.00001 par value (1 share issued
and outstanding as of March 31, 2022)
-
-
-
-
-
Additional Paid-in-Capital
6,446,829
6,282,600
6,037,628
5,794,727
5,879,796
Retained Earnings
1,408,768
2,133,794
3,031,765
3,647,785
3,805,918
Accumulated Other Comprehensive Loss
(11,454
)
(10,245
)
(15,357
)
(19,626
)
(25,754
)
Non-Controlling Interests in Consolidated Entities
4,390,594
4,860,442
5,638,612
5,600,653
5,747,698
Non-Controlling Interests in Blackstone Holdings
4,524,898
5,214,848
6,118,386
6,614,472
6,791,932
Total Equity
16,759,642
18,481,446
20,811,041
21,638,018
22,199,597
Total Liabilities and Equity
$
29,709,986
$
33,297,192
$
39,038,092
$
41,196,408
$
43,344,078
See page 29, Reconciliation of GAAP to Non-GAAP Balance Sheet Measures.
Blackstone | 28
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES
($ in thousands)
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
Investments of Consolidated Blackstone Funds
$
1,459,804
$
1,871,269
$
2,104,705
$
2,018,829
$
2,045,156
Equity Method Investments
Partnership Investments
4,676,341
4,916,675
5,303,334
5,635,212
5,858,926
Accrued Performance Allocations
9,367,251
12,101,142
15,063,648
17,096,873
17,661,244
Corporate Treasury Investments
1,726,285
2,440,325
1,520,426
658,066
916,510
Other Investments
713,628
833,911
1,112,082
3,256,063
3,586,638
Total GAAP Investments
17,943,309
22,163,322
25,104,195
28,665,043
30,068,474
Accrued Performance Allocations - GAAP
$
9,367,251
$
12,101,142
$
15,063,648
$
17,096,873
$
17,661,244
Impact of Consolidation (a)
1
1
1
1
1
Due from Affiliates - GAAP (b)
56,274
59,304
59,669
260,993
112,194
Less: Net Realized Performance Revenues (c)
(269,426
)
(261,760
)
(416,336
)
(1,294,884
)
(743,772
)
Less: Accrued Performance Compensation - GAAP (d)
(3,952,253
)
(5,137,933
)
(6,395,903
)
(7,324,906
)
(7,483,337
)
Net Accrued Performance Revenues
$
5,201,847
$
6,760,754
$
8,311,079
$
8,738,077
$
9,546,330
Corporate Treasury and Other Investments - GAAP (e)
$
2,439,913
$
3,274,236
$
2,632,508
$
3,914,129
$
4,503,148
Impact of Consolidation (a)
142,187
176,320
178,407
144,354
140,905
Other Assets (f)
766,285
479,591
580,641
797,843
379,768
Other Liabilities (g)
(61,599
)
(494,119
)
(169,863
)
(94,314
)
(66,065
)
Corporate Treasury and Other Investments - Deconsolidated (h)
$
3,286,786
$
3,436,028
$
3,221,693
$
4,762,012
$
4,957,756
Partnership Investments - GAAP
$
4,676,341
$
4,916,675
$
5,303,334
$
5,635,212
$
5,858,926
Impact of Consolidation (i)
(2,923,029
)
(3,091,175
)
(3,459,004
)
(3,552,599
)
(3,623,881
)
GP/Fund Investments - Deconsolidated
$
1,753,312
$
1,825,500
$
1,844,330
$
2,082,613
$
2,235,045
Loans Payable - GAAP
$
5,573,965
$
5,594,648
$
7,527,576
$
7,748,163
$
8,937,456
Impact of Consolidation (j)
(100
)
(99
)
(100
)
(101
)
-
Outstanding Debt - Carrying Value
5,573,865
5,594,549
7,527,476
7,748,062
8,937,456
Unamortized Discount
85,635
84,151
109,524
107,438
122,594
Outstanding Debt (at par) - Deconsolidated
$
5,659,500
$
5,678,700
$
7,637,000
$
7,855,500
$
9,060,050
(a)
This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.
(b)
Represents GAAP accrued performance revenue recorded within Due from Affiliates.
(c)
Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized.
(d)
Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to Affiliates.
(e)
Effective 3Q'21, Corporate Treasury includes Other Investments and has been renamed to Corporate Treasury and Other Investments. Prior periods have been recast to reflect the revised classification.
(f)
This adjustment adds other assets related to Treasury Operations that are recorded within Accounts Receivable, reverse repurchase agreements and Due from Affiliates.
(g)
This adjustment adds other liabilities related to Treasury Operations that are recorded within Accounts Payable, Accrued Expenses and Other Liabilities, Repurchase Agreements and securities sold short, not yet purchased.
(h)
Deconsolidated Other Investments was $3.5 billion as of March 31, 2022, which was comprised of $1.1 billion of liquid investments and $2.4 billion of illiquid investments. The liquid portion of Other Investments relates to public equity securities, which may include equity securities subject to lockup periods, and other investments held by Blackstone that can be easily converted to cash.
(i)
This adjustment removes amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests and adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.
(j)
This adjustment removes amounts related to consolidated Blackstone Funds.
Blackstone | 29
RECONCILIATION OF GAAP TO TOTAL SEGMENTS
($ in thousands)
QTD
LTM
1Q'21
2Q'21
3Q'21
4Q'21
1Q'22
1Q'21
1Q'22
Management and Advisory Fees, Net
GAAP
$
1,177,815
$
1,212,549
$
1,320,795
$
1,459,548
$
1,475,936
$
4,335,532
$
5,468,828
Segment Adjustment (a)
390
193
(720
)
(3,328
)
(2,568
)
13,271
(6,423
)
Total Segment
$
1,178,205
$
1,212,742
$
1,320,075
$
1,456,220
$
1,473,368
$
4,348,803
$
5,462,405
GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues
GAAP
Incentive Fees
36,124
33,207
48,206
136,454
104,489
162,624
322,356
Investment Income - Realized Performance Allocations
534,367
808,620
1,522,495
2,787,970
1,766,386
2,472,837
6,885,471
GAAP
$
570,491
$
841,827
$
1,570,701
$
2,924,424
$
1,870,875
$
2,635,461
$
7,207,827
Total Segment
Less: Realized Performance Revenues
(401,323
)
(792,938
)
(1,497,477
)
(1,191,374
)
(1,312,810
)
(2,100,083
)
(4,794,599
)
Segment Adjustment (b)
-
-
89
824
-
-
913
Total Segment
$
169,168
$
48,889
$
73,313
$
1,733,874
$
558,065
$
535,378
$
2,414,141
GAAP Compensation to Total Segment Fee Related Compensation
GAAP
Compensation
542,638
507,104
536,199
576,032
656,505
1,921,714
2,275,840
Incentive Fees Compensation
13,325
14,431
21,007
49,349
41,019
51,228
125,806
Realized Performance Allocations Compensation
213,027
347,423
631,632
1,119,911
717,601
983,834
2,816,567
GAAP
$
768,990
$
868,958
$
1,188,838
$
1,745,292
$
1,415,125
$
2,956,776
$
5,218,213
Total Segment
Less: Realized Performance Compensation
(150,924
)
(338,271
)
(619,074
)
(449,301
)
(519,120
)
(793,969
)
(1,925,766
)
Less: Equity-Based Compensation - Fee Related Compensation
GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest and Dividend Income (Loss)
GAAP
Interest and Dividend Revenue
31,412
31,017
35,048
63,166
54,485
121,559
183,716
Interest Expense
(44,983
)
(44,322
)
(52,413
)
(56,550
)
(66,747
)
(169,501
)
(220,032
)
GAAP
$
(13,571
)
$
(13,305
)
$
(17,365
)
$
6,616
$
(12,262
)
$
(47,942
)
$
(36,316
)
Segment Adjustment (g)
643
2,104
1,127
163
145
4,045
3,539
Total Segment
$
(12,928
)
$
(11,201
)
$
(16,238
)
$
6,779
$
(12,117
)
$
(43,897
)
$
(32,777
)
This analysis reconciles the components of Total Segment Distributable Earnings (page 3) to their equivalent GAAP measures, reported on the Consolidated Statement of Operations (page 1). Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.
(a)
Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures.
(b)
Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation.
(c)
Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures.
(d)
Represents the (1) removal of amortization of transaction-related intangibles, (2) removal of certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures, and (3) a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone's segment presentation.
(e)
Fee related performance compensation may include equity based compensation based on fee related performance revenues.
(f)
Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests.
(g)
Represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.
Blackstone | 31
NOTES
Notes to page 1 - Blackstone's First Quarter 2022 GAAP Results
§
Income (Loss) Before Provision (Benefit) for Taxes Margin is calculated by dividing Income (Loss) Before Provision (Benefit) for Taxes by Total Revenues.
Notes to page 2 - Blackstone's First Quarter 2022 Highlights
§
The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable Blackstone Funds and not those of Blackstone.
Notes to page 4 - Summary of Financials
§
Effective 1Q'22, the BREIT performance revenues crystallize quarterly instead of annually. If quarterly crystallization of BREIT's fee related performance revenues had been in effect for all quarters included in the current and prior year LTM periods, FRE would have been $4,375 million, $2,725 million, and $823 million for 1Q'22 LTM, 1Q'21 LTM, and 1Q'21 QTD respectively and Segment DE would have been $7,691 million, $4,468 million, and $1,371 million for 1Q'22 LTM, 1Q'21 LTM, and 1Q'21 QTD respectively and there would have been no impact to Income (Loss) before Taxes for 1Q'22 LTM, 1Q'21 LTM, and 1Q'21 QTD. This change only affects the timing of realization and not the total amount of net performance revenues recognized; the impact decreases unrealized performance allocations and unrealized performance allocations compensation for the periods, offset by increases to realized fee related performance revenues and realized fee related performance compensation.
Notes to page 5 - Investment Performance and Net Accrued Performance Revenues
§
Core+ appreciation represents a weighted average of BREIT's per share appreciation and BPP appreciation for the period. The returns are weighted based on the average of BREIT's monthly net asset values and the average of BPP's quarterly adjusted beginning period market values for the period.
§
Results for the Secondaries business (also referred to as Strategic Partners) are reported on a three-month lag from the Secondaries' fund financial statements, which generally report underlying investments on a same-quarter basis, if available. As a result, the appreciation presented herein does not include the impact of economic and market activity in the current quarter. Current market activity is expected to affect reported results in upcoming quarters.
§
The BPS Composite gross and net returns are based on the BAAM Principal Solutions ("BPS") Composite, which includes only BAAM-managed commingled and customized multi-manager funds and accounts and does not include BAAM's individual investor solutions (liquid alternatives), strategic capital (seeding and GP minority stakes), strategic opportunities (co-invests), and advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation and, in the case of net returns, non fee-paying assets are also excluded. The funds/accounts that comprise the BPS Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-alone fund/account. The BPS Composite is not an investible product and, as such, the performance of the BPS Composite does not represent the performance of an actual fund or account.
Blackstone | 32
NOTES - (CONT'D)
Notes to page 5 - Investment Performance and Net Accrued Performance Revenues (Cont'd)
§
Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and credit alpha strategies) and energy strategies. Liquid Credit returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included. Funds in liquidation, funds investing primarily in investment grade corporate credit and asset-based lending funds are excluded. Blackstone Funds that were contributed to Blackstone Credit as part of Blackstone's acquisition of Blackstone Credit, formerly known as GSO, in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by Blackstone Credit subsequent to March 2008, are also excluded.
Notes to page 16 - Assets Under Management - Rollforward
§
In 2Q'21, the methodology for Total AUM was updated to exclude permanent fund level leverage where the intended use is not for investing purposes. These methodology changes resulted in a one-time adjustment to the LTM market activity of $(1.8) billion for Real Estate. Funds without an adjustment were either already applying the methodology in reporting Total AUM or the update was not applicable.
Notes to page 17 - Deconsolidated Balance Sheet Highlights
§
GP/Fund Investments include Blackstone investments in Real Estate, Private Equity, Hedge Fund Solutions, and Credit & Insurance, which were $731 million, $940 million, $209 million, and $354 million, respectively, as of March 31, 2022. Cash and Net Investments per share amounts are calculated using period end DE Shares Outstanding (see page 23, Share Summary).
Notes to page 22 - Shareholder Dividends
§
DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Common shareholders receive tax benefits from deductions taken by Blackstone's corporate tax paying subsidiaries and bear responsibility for the deduction from Distributable Earnings of the Payable Under Tax Receivable Agreement and certain other tax-related payables.
§
Per Share calculations are based on end of period Participating Common Shares (page 23, Share Summary); actual dividends are paid to shareholders as of the applicable record date.
§
Retained capital is withheld pro rata from common shareholders and Blackstone Holdings Partnership unitholders. Common shareholders' share was $169 million for 1Q'22 and $583 million for 1Q'22 LTM.
Blackstone | 33
DEFINITIONS AND DIVIDEND POLICY
Blackstone discloses the following operating metrics and financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America ("non-GAAP") in this presentation:
§
Segment Distributable Earnings, or "Segment DE", is Blackstone's segment profitability measure used to make operating decisions and assess performance across Blackstone's four segments. Segment DE represents the net realized earnings of Blackstone's segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone's segments are presented on a basis that deconsolidates Blackstone Funds, eliminates non-controlling ownership interests in Blackstone's consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related Charges. Segment DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.
-
Net Realizations is presented on a segment basis and is the sum of Realized Principal Investment Income and Realized Performance Revenues (which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).
-
Total Segment Revenues and Segment Revenues represent Net Management and Advisory Fees, Fee Related Performance Revenues, Realized Performance Revenues and Realized Principal Investment Income.
§
Distributable Earnings, or "DE", is derived from Blackstone's segment reported results. DE is used to assess performance and amounts available for dividends to Blackstone shareholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. DE is the sum of Segment DE plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables. DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.
-
Net Interest and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone Funds, and interest expense associated with the Tax Receivable Agreement.
-
Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the Payable under the Tax Receivable Agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and DE reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment DE and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related Charges where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone's consolidated statements of operations under U.S. GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management believes that including the amount payable under the tax receivable agreement and utilizing the current income tax provision adjusted as described above when calculating DE is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to shareholders.
§
Fee Related Earnings, or "FRE", is a performance measure used to assess Blackstone's ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. FRE equals management and advisory fees (net of management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis, and (b) Other Operating Expenses. FRE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.
Blackstone | 34
DEFINITIONS AND DIVIDEND POLICY - (CONT'D)
-
Fee Related Compensation is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation, directly related to (a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Related Performance Compensation.
-
Fee Related Performance Revenues refers to the realized portion of Performance Revenues from Perpetual Capital that are (a) measured and received on a recurring basis, and (b) not dependent on realization events from the underlying investments.
-
Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove the amortization of transaction-related intangibles, (b) remove certain expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in Blackstone's segment presentation, and (c) give effect to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone's segment presentation.
-
Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows. Includes co-investment capital with an investor right to convert into Perpetual Capital.
§
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or "Adjusted EBITDA", is a supplemental measure used to assess performance derived from Blackstone's segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables, and (c) Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.
§
Performance Revenues collectively refers to: (a) Incentive Fees, and (b) Performance Allocations.
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Performance Compensation collectively refers to: (a) Incentive Fee Compensation, and (b) Performance Allocations Compensation.
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Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them as a result of a compensation program that commenced in 2Q'21. The expectation is that for the full year 2022, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year. In 1Q'22 the increase to Realized Performance Compensation was less than the decrease to Fee Related Compensation, which favorably impacted Distributable Earnings for the quarter. These changes to Performance Compensation and Fee Related Compensation are not expected to impact Distributable Earnings for the full year.
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Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone's initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions.
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DEFINITIONS AND DIVIDEND POLICY - (CONT'D)
Dividend Policy. Blackstone's intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.'s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone's board of directors to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and dividends to shareholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of Blackstone's board of directors and our board of directors may change our dividend policy at any time, including, without limitation, to reduce such quarterly dividends or even to eliminate such dividends entirely.
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FORWARD-LOOKING STATEMENTS
This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as "outlook," "indicator," "believes," "expects," "potential," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "scheduled," "estimates," "anticipates," "opportunity," "leads," "forecast" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to the impact of the novel coronavirus ("COVID-19"), as well as those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2021, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission ("SEC"), which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
This presentation does not constitute an offer of any Blackstone Fund.
The Blackstone Group Inc. published this content on 21 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 April 2022 11:04:04 UTC.
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