Blackstone : Third Quarter 2020 Press Release And Presentation

Blackstone Reports Third Quarter 2020 Results

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

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

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

Dividend

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

Quarterly Investor Call Details

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

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Blackstone

345 Park Avenue New York NY 10154 T 212 583 5000 www.blackstone.com

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

About Blackstone

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

Forward-Looking Statements

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

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

Investor and Media Relations Contacts

Weston Tucker	Christine Anderson
Blackstone	Blackstone
Tel: [phone]	Tel: [phone]
[e-mail]	[e-mail]

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Blackstone's Third

Quarter 2020 Earnings

OCTOBER 28, 2020

BLACKSTONE'S THIRD QUARTER 2020 GAAP RESULTS

• GAAP Net Income was $1.7 billion for the quarter and $447 million year-to-date ("YTD"). GAAP Net Income Attributable to The Blackstone Group Inc. was $795 million for the quarter and $296 million year-to-date.

($ in thousands, except per share data) (unaudited)		3Q'19		3Q'20			3Q'19 YTD		3Q'20 YTD			3Q'19 LTM		3Q'20 LTM
Revenues
Management and Advisory Fees, Net	$	878,151	$	1,053,851		$	2,528,255	$	2,958,411		$	3,325,809	$	3,902,311
Incentive Fees		8,254		13,498			42,301		40,959			58,098		128,569
Investment Income (Loss)
Performance Allocations
Realized		446,550		371,406			1,021,445		640,846			1,532,833		1,358,401
Unrealized		176,370		1,403,480			998,101		(981,678)			191,796		(853,447)
Principal Investments
Realized		74,642		61,017			292,943		170,814			402,844		271,349
Unrealized		15,391		295,308			147,090		(332,295)			(71,075)		(264,382)
Total Investment Income (Loss)		712,953		2,131,211			2,459,579		(502,313)			2,056,398		511,921
Interest and Dividend Revenue		42,482		26,497			130,252		85,505			178,137		137,651
Other		93,273		(192,159)			86,403		(109,559)			133,326		(115,969)
Total Revenues	$	1,735,113	$	3,032,898	$	5,246,790	$	2,473,003	$	5,751,768	$	4,564,483
Expenses
Compensation and Benefits
Compensation		462,766		460,983			1,372,684		1,395,983			1,746,474		1,843,629
Incentive Fee Compensation		5,419		7,385			19,711		22,339			29,971		46,928
Performance Allocations Compensation
Realized		155,663		142,149			367,883		253,141			580,057		548,200
Unrealized		94,907		509,474			446,440		(433,091)			143,572		(339,246)
Total Compensation and Benefits		718,755		1,119,991			2,206,718		1,238,372			2,500,074		2,099,511
General, Administrative and Other		171,067		171,041			492,437		497,658			645,956		684,629
Interest Expense		53,362		39,540			138,960		120,460			183,604		181,148
Fund Expenses		4,036		2,274			12,509		10,962			16,086		16,191
Total Expenses	$	947,220	$	1,332,846	$	2,850,624	$	1,867,452	$	3,345,720	$	2,981,479
Other Income
Change in Tax Receivable Agreement Liability		174,606		(7,693)			174,606		(8,212)			174,606		(21,251)
Net Gains (Losses) from Fund Investment Activities		48,450		108,752			239,906		(60,325)			180,672		(17,402)
Income Before Provision (Benefit) for Taxes	$	1,010,949	$	1,801,111		$	2,810,678	$	537,014		$	2,761,326	$	1,544,351
Provision (Benefit) for Taxes		(156,786)		100,960			(76,895)		89,672			(47,529)		118,615
Net Income	$	1,167,735	$	1,700,151		$	2,887,573	$	447,342		$	2,808,855	$	1,425,736
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in		(8)		6,868			3,567		(12,027)			(736)		(15,715)
Consolidated Entities
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		88,406		259,761			355,983		(90,938)			287,183		29,858
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings		299,900		638,803			961,490		253,814			966,743		631,951
Net Income Attributable to The Blackstone Group Inc. ("BX")	$	779,437	$	794,719		$	1,566,533	$	296,493		$	1,555,665	$	779,642
Net Income Per Share of Class A Common Stock, Basic	$	1.15	$	1.14		$	2.32	$	0.43		$	2.30	$	1.13
Net Income Per Share of Class A Common Stock, Diluted	$	1.15	$	1.13		$	2.32	$	0.43		$	2.30	$	1.13
Income Before Provision (Benefit) for Taxes Margin		58.3%		59.4%			53.6%		21.7%			48.0%		33.8%

Throughout this presentation, all current period amounts are preliminary. Totals may not add due to rounding. See pages 34-35, Definitions and Dividend Policy,	Blackstone |	1
for definitions of terms used throughout this presentation. See additional notes on page 32.

BLACKSTONE'S THIRD QUARTER 2020 HIGHLIGHTS

Financial Measures

Capital Metrics

• Fee Related Earnings ("FRE") of $611 million ($0.51/share) in the quarter, up 39% year- over-year
• • FRE was $2.2 billion for the last twelve months ("LTM") ($1.81/share), up 30% year- over-year
• Distributable Earnings ("DE") of $772 million ($0.63/share) in the quarter, up 9% year- over-year
• • DE was $2.8 billion for the LTM ($2.24/share), up 4% year-over-year
• Net Accrued Performance Revenues of $3.6 billion ($2.96/share)
• Total Assets Under Management ("AUM") of $584.4 billion, up 5% year-over-year
• • Fee-EarningAUM of $444.5 billion, up 13% year-over-year
• Inflows of $15.1 billion in the quarter and $88.7 billion for the LTM
• Realizations of $7.9 billion in the quarter and $33.3 billion for the LTM
• Deployment of $8.6 billion in the quarter and $53.6 billion for the LTM

Capital Returned to Shareholders

• Dividend of $0.54 per common share payable on November 16, 2020
  - Dividends of $1.91 per common share for the LTM
• Repurchased 2.0 million common shares in the quarter and 10.5 million common shares for the LTM
• $769 million to be distributed to shareholders with respect to the third quarter through dividends and share repurchases, and $2.9 billion for the LTM

Notes on page 32.

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BLACKSTONE'S THIRD QUARTER 2020 SEGMENT EARNINGS

					% Change					% Change
($ in thousands, except per share data)		3Q'19		3Q'20	vs. 3Q'19		3Q'19 YTD		3Q'20 YTD	vs. 3Q'19 YTD
Management and Advisory Fees, Net	$	880,345	$	1,057,840	20%	$	2,538,563	$	2,975,140	17%
Fee Related Performance Revenues		34,225		64,950	90%		55,628		92,449	66%
Fee Related Compensation		(329,834)		(360,633)	9%		(947,699)		(1,013,801)	7%
Other Operating Expenses		(144,351)		(151,213)	5%		(409,783)		(433,681)	6%
Fee Related Earnings	$	440,385	$	610,944	39%	$	1,236,709	$	1,620,107	31%
Realized Performance Revenues		420,840		319,954	(24)%		1,008,995		589,364	(42)%
Realized Performance Compensation		(143,870)		(121,730)	(15)%		(354,576)		(230,819)	(35)%
Realized Principal Investment Income		36,148		15,884	(56)%		185,613		55,112	(70)%
Net Realizations		313,118		214,108	(32)%		840,032		413,657	(51)%
Total Segment Distributable Earnings	$	753,503	$	825,052	9%	$	2,076,741	$	2,033,764	(2)%
Net Interest Income (Loss)		(7,767)		(12,731)	64%		55		(29,306)	n/m
Taxes and Related Payables		(35,815)		(40,225)	12%		(120,055)		(127,268)	6%
Distributable Earnings	$	709,921	$	772,096	9%	$	1,956,741	$	1,877,190	(4)%
Additional Metrics:
FRE per Share	$	0.37	$	0.51	38%	$	1.03	$	1.35	31%
DE per Common Share	$	0.58	$	0.63	9%	$	1.59	$	1.52	(4)%
Total Segment Revenues	$	1,371,558	$	1,458,628	6%	$	3,788,799	$	3,712,065	(2)%
Total Assets Under Management	$	554,022,343	$	584,376,213	5%	$	554,022,343	$	584,376,213	5%
Fee-Earning Assets Under Management	$	394,138,443	$	444,511,078	13%	$	394,138,443	$	444,511,078	13%

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	Blackstone |	3
to Common Shareholders (see page 22, Shareholder Dividends) and end of period Participating Common Shares outstanding. YTD per Share amounts represent the

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