Blackstone Inc. · NYSE:BX
Blackstone — Q1 2021 Earnings Presentation
40 slides from Blackstone's earnings presentation, Apr 22, 2021
Slide 1: Blackstone Reports First Quarter 2021 Results
Blackstone Reports First Quarter 2021 Results New York, April 22, 2021: Blackstone (NYSE:BX) today reported its first quarter 2021 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone reported another exceptional quarter. We continue to deliver on our core mission
Slide 2: About Blackstone and Forward-Looking Statements
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
Slide 3: Investor and Media Relations Contacts
This presentation does not constitute an offer of any Blackstone Fund. Investor and Media Relations Contacts Weston Tucker Christine Anderson Blackstone Blackstone Tel: +1 (212) 583-5231 Tel: +1 (212) 583-5182 tucker@blackstone.com christine.anderson@blackstone.com 3
Slide 4: Blackstone's First Quarter 2021 Earnings
Blackstone’s First Quarter 2021 Earnings APRIL 22, 2021
Slide 5: Blackstone's First Quarter 2021 GAAP Results
BLACKSTONE’S FIRST QUARTER 2021 GAAP RESULTS ▪ GAAP Net Income was $3.4 billion for the quarter and $8.2 billion over the last twelve months (“LTM”). GAAP Net Income Attributable to The Blackstone Group Inc. was $1.7 billion for the quarter and $3.9 billion over the LTM. ($ in thousands, except per
Slide 6: Blackstone's First Quarter 2021 Highlights
BLACKSTONE’S FIRST QUARTER 2021 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $741 million ($0.62/share) in the quarter, up 58% year- over-year – FRE was $2.6 billion over the LTM ($2.20/share), up 40% year-over-year Financial Measures ▪ Distributable Earnings (“DE”) of $1.2 billion ($0.96/share) in
Slide 7: Blackstone's First Quarter 2021 Segment Earnings
BLACKSTONE’S FIRST QUARTER 2021 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 1Q'20 1Q'21 vs. 1Q'20 1Q'20 LTM 1Q'21 LTM vs. 1Q'20 LTM Management and Advisory Fees, Net $ 940,567 $ 1,178,205 25% $ 3,610,741 $ 4,348,803 20% Fee Related Performance Revenues 12,466 169,168 n
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS ▪ LTM Fee Related Earnings of $2.20 per share, an increase of 40% year-over-year. ▪ LTM Total Segment Distributable Earnings were $4.4 billion, an increase of 42% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $2.20 1Q’21 LTM total
Slide 9: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Strong appreciation across strategies led to a 36% increase in Net Accrued Performance Revenues to $5.2 billion ($4.33/share) quarter-over-quarter. Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $31.6 billion in the quarter, bringing LTM inflows to $99.3 billion. ▪ Realizations were $14.9 billion in the quarter and $51.1 billion over the LTM. ▪ Deployed $17.7 billion in the quarter and $64.6 billion over the LTM. – Committed an additional $
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $648.8 billion, up 21% year-over-year, with $31.6 billion of inflows in the quarter and $99.3 billion over the LTM. ▪ Fee-Earning AUM of $481.2 billion was up 14% year-over-year, with $24.7 billion of inflows in the quarter and $83.2 billion over the
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $321.6 billion at quarter end, up 40% year-over-year. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $148.2 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 1Q’21 tota
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 22% to $196.3 billion with inflows of $8.6 billion in the quarter and $29.4 billion over the LTM. – Inflows in the quarter largely driven by Core+, including $3.8 billion in BPP Life Sciences and $3.5 billion in BREIT. – Fee-Earning AUM increased 19% to $155.9 bill
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 21% to $211.8 billion with inflows of $7.8 billion in the quarter and $22.0 billion over the LTM. – Inflows in the quarter included $3.1 billion for the initial close of the second Corporate Private Equity Asia fund and $1.6 billion of capital raised, including
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: Increased 11% to $81.8 billion with inflows of $2.1 billion in the quarter and $9.2 billion over the LTM. – Record market appreciation of $12.4 billion over the LTM. – Inflows subsequent to quarter end of $440 million not yet included in Total AUM. ▪ Returns: BPS Co
Slide 17: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 24% to $158.9 billion with inflows of $13.1 billion in the quarter and $38.7 billion over the LTM. – Global Direct Lending had inflows of $7.1 billion in the quarter, bringing Total AUM to $27.5 billion. – Continued fundraising and commenced investing for th
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 1Q'20 LTM 1Q'21 LTM Base Management Fees $ 910,396 $ 941,794 $ 1,043,770 $ 1,076,094 $ 1,117,290 $ 3,398,808 $ 4,178,948 Transaction, Advisory and Other Fees, Net 50,665 48,292 33,628 75,290 78,640 299,935 235,850 Management Fee Offsets (
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended March 31, 2021 Twelve Months Ended March 31, 2021 Real Private Hedge Fund Credit & Real Private Hedge Fund Credit & Total Total Estate Equity Solutions Insurance Estate Equity Solutions Insurance Beginning
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At March 31, 2021, Blackstone had $5.4 billion in total cash, cash equivalents, and corporate treasury investments and $13.1 billion of cash and net investments, or $10.90 per share. ▪ Blackstone has a $2.3 billion undrawn credit revolver and maintains A+/A+
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 1Q'21 ($ in millions, except per share data) 1Q'20 4Q'20 1Q'21 Per Share 1Q’21 QoQ Rollforward Real Estate BREP IV $ 8 $ 9 $ 18 $ 0.01 ($ in millions) BREP V - 13 18 0.02 Net Net BREP VI 51 42 39 0.03 Performance Realized BREP VII 309 236 253 0.21
Slide 23: Investment Records as of March 31, 2021
INVESTMENT RECORDS AS OF MARCH 31, 2021 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Rea
Slide 24: Investment Records as of March 31, 2021 (Cont'd)
INVESTMENT RECORDS AS OF MARCH 31, 2021 (a) – (CONT’D) ($/€ 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 M
Slide 25: Investment Records as of March 31, 2021 – Notes
INVESTMENT RECORDS AS OF MARCH 31, 2021 – NOTES The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group Inc. n/m Not meaningful generally due to the limited time since initial investment. n/a Not applicable. (a) Excludes investment vehicl
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.96 of Distributable Earnings per common share during the quarter, bringing the LTM amount to $3.15 per common share. ▪ Blackstone declared a quarterly dividend of $0.82 per common share to record holders as of May 3, 2021; payable on May 10, 2021. % Change % Chan
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.202 billion shares. – Repurchased 4.0 million common shares over the LTM. 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Participating Common Shares 687,869,905 697,597,036 700,649,135 703,959,789 711,065,543 Participating Partnership U
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD LTM ($ in thousands) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 1Q'20 1Q'21 Net Income (Loss) Attributable to The Blackstone Group Inc. $ (1,066,492) $ 568,266 $ 794,719 $ 748,870 $ 1,747,872 $ 501,886 $ 3,859,727 Net Income (Loss) Attributable to Non-Controlling I
Slide 30: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 34-35, 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 acquisiti
Slide 31: Reconciliation of GAAP to Non-GAAP Measures – Notes (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (CONT’D) (j) Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. Rela
Slide 32: Blackstone's First Quarter 2021 GAAP Balance Sheet Results
BLACKSTONE’S FIRST QUARTER 2021 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Assets Cash and Cash Equivalents $ 2,068,326 $ 1,976,512 $ 2,628,895 $ 1,999,484 $ 2,862,422 Cash Held by Blackstone Funds and Other 318,003 343,201 85,218 64,972 109,285 Investments
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 Investments of Consolidated Blackstone Funds $ 7,275,752 $ 7,943,531 $ 1,500,398 $ 1,455,008 $ 1,459,804 Equity Method Investments Partnership Investments 3,553,538 3,873,346 4,144,249 4,353,234
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD LTM ($ in thousands) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 1Q'20 1Q'21 Management and Advisory Fees, Net GAAP $ 934,832 $ 969,728 $ 1,053,851 $ 1,134,138 $ 1,177,815 $ 3,597,261 $ 4,335,532 Segment Adjustment (a) 5,735 7,005 3,989 1,887 390 13,480 13,271 Total Se
Slide 35: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD LTM ($ in thousands) 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 1Q'20 1Q'21 Realized Performance Compensation GAAP Incentive Fee Compensation $ 6,522 $ 8,432 $ 7,385 $ 22,086 $ 13,325 $ 45,416 $ 51,228 Realized Performance Allocations Compensation 72,423 38
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s First Quarter 2021 GAAP Results ▪ Effective July 1, 2019, The Blackstone Group L.P. converted from a Delaware limited partnership to a Delaware corporation, The Blackstone Group Inc. (the "Conversion"). This presentation includes results for The Blackstone Group
Slide 37: Notes – (Cont'd)
NOTES – (CONT’D) Notes to page 5 - Investment Performance and Net Accrued Performance Revenues (Cont’d) ▪ Effective 1Q’21, Credit returns are presented as separate returns for Private Credit and Liquid Credit instead of as a Credit Composite. Private Credit returns include mezzanine lending funds an
Slide 38: Definitions and Dividend Policy
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 pres
Slide 39: Definitions and Dividend Policy – (Cont'd)
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 Re
Slide 40: Forward-Looking Statements
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, ou