Slide 1: Second Quarter 2012 Earnings
Exhibit 99.2 Second Quarter 2012 Earnings July 19, 2012
Slide 2: Blackstone's Second Quarter 2012 Earnings
Blackstone’s Second Quarter 2012 Earnings Economic Net Income (“ENI”) was $212 million for the second quarter, down from $804 million in the same period a year ago, as difficult public markets impacted Performance Fees and Investment Income particularly in our public and non-dollar denominated inves
Slide 3: Walkdown of Financial Metrics
Walkdown of Financial Metrics 2Q'12 Year-to-Date (1) (1) (Dollars in Thousands, Except per Unit Data) Results Per Unit Results Per Unit Base Management Fees $ 381,344 $ 776,850 Transaction and Other Fees, Net 49,453 87,924 Advisory Fees 93,372 169,218 Management Fee Offsets (7,973) (21,023) Interest
Slide 4: Private Equity
Private Equity Revenues were impacted by a sharp decline in Performance Fees and Investment Income as the carrying value of assets overall was down 4.2% for the quarter. • Negative markets particularly impacted the segment’s public holdings and non-dollar denominated investments while private holdin
Slide 5: Real Estate
Real Estate Revenues were down from the prior year due to smaller appreciation gains in the funds and the “catch-up” of Performance Fees in the year-earlier period which negatively impacted year-over-year comparisons. Carrying value of assets overall was up 2.9% for the quarter and up 6.7% year-to-d
Slide 6: Hedge Fund Solutions
Hedge Fund Solutions Total Revenues were down 15% year-over-year despite AUM growth, reflecting negative Performance Fees in the quarter, which more than offset Fee Revenue growth of 5% over the year ago period. Composite returns were down 1.2% net for the quarter and up 2.7% net year-to-date. • The
Slide 7: Credit Businesses
Credit Businesses Fee Revenues grew 53% from the prior year driven by continued growth in AUM, strong fund performance and the impact of the Harbourmaster acquisition. Net accrued Performance Fees grew to $176 million at the end of 2Q’12 with strong performance in the quarter. Fee-Earning AUM was es
Slide 8: Financial Advisory
Financial Advisory Fee Revenues of $95 million were up 23% from the first quarter of this year as both our strategic advisory and restructuring businesses experienced increases in closed deals in contrast to the markets in general and a relative slow first quarter of this year. • Revenues were down
Slide 9: Assets Under Management
Assets Under Management Fee-Earning AUM reached a record $158 billion in the second quarter, up 22% over the same period last year, as $44 billion of gross inflows (including $10 billion from the Harbourmaster acquisition) more than offset $13 billion of capital returned to investors over the same p
Slide 10: 2Q'12 Available Capital Summary
2Q’12 Available Capital Summary Substantial levels of Dry Powder with $36 billion at the end of the second quarter. $12 billion of Total AUM was not yet earning base management fees at the end of the quarter due largely to fund structures where fees are triggered by the deployment of capital. $121 b
Slide 11: Distribution Calculation
Distribution Calculation Declared a quarterly distribution of $0.10 per common unit to record holders at the close of business on August 15, 2012; payable on August 31, 2012. Generated $0.26 per common unit in the first two quarters of 2012 after retained capital relating to gains on Blackstone’s ow
Slide 12: Balance Sheet Highlights
(1) Balance Sheet Highlights At June 30, 2012, Blackstone had $1.2 billion in cash and treasury cash management strategies. Long-term debt of $1.0 billion from the 2009 and 2010 bond issuances. On July 13, 2012, Blackstone amended its credit facility to extend the maturity to July 2017 and increase
Slide 13: GAAP Statement of Operations
GAAP Statement of Operations (Dollars in Thousands, Except per Unit Data) (Unaudited) 2Q'11 2Q'12 % Change Revenues Management and Advisory Fees, Net $ 498,040 $ 488,048 (2)% Performance Fees Realized Carried Interest 42,750 55,929 31% Realized Incentive Fees 19,012 11,631 (39)% Unrealized Carried I
Slide 14: Appendix
Appendix Blackstone
Slide 15: Total Segments
Total Segments 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Management and Advisory Fees, Net Base Management Fees $ 316,474 $ 322,371 $ 336,753 $ 395,506 $ 381,344 $ 64,870 20% Advisory Fees 102,243 86,178 123,567 75,846 93,372 (8,871) (9)% (1) 103,561 41,793 43
Slide 16: Private Equity
Private Equity 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Management Fees, Net Base Management Fees $ 82,297 $ 85,534 $ 84,231 $ 85,789 $ 87,475 $ 5,178 6% (1) Transactionand Other Fees,Net 52,353 21,430 23,879 18,097 14,951 (37,402) (71)% (2) ManagementFeeOffs
Slide 17: Real Estate
Real Estate 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Management Fees, Net Base Management Fees $ 97,467 $ 97,925 $ 103,947 $ 147,802 $ 127,817 $ 30,350 31% Transactionand OtherFees,Net(1) 49,288 19,551 19,128 14,412 25,151 (24,137) (49)% ManagementFeeOffsets(
Slide 18: Hedge Fund Solutions
Hedge Fund Solutions 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Management Fees, Net Base Management Fees $ 79,290 $ 79,355 $ 81,606 $ 81,821 $ 84,278 $ 4,988 6% (1) Transaction and Other Fees, Net 861 740 470 92 65 (796) (92)% (2) Management Fee Offsets (196)
Slide 19: Credit Businesses
Credit Businesses 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Management Fees, Net Base Management Fees $ 57,420 $ 59,557 $ 66,969 $ 80,094 $ 81,774 $ 24,354 42% (1) Transactionand Other Fees,Net 849 (26) 312 5,725 9,184 8,335 n/m (2) ManagementFeeOffsets (105)
Slide 20: Financial Advisory
Financial Advisory 2Q'12 vs. 2Q'11 (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 $ % Revenues Advisory Fees $ 102,243 $ 86,178 $ 123,567 $ 75,846 $ 93,372 $ (8,871) (9)% Transaction and Other Fees, Net 210 98 7 145 102 (108) (51)% Total Advisory and Transaction Fees 102,453 86,276 123,574 75,
Slide 21: Fee-Earning AUM Net Flows
Fee-Earning AUM Net Flows Fee-Earning AUM was up $1.4 billion from last quarter and up $28.6 billion or 22% from last year despite market losses and the negative impact of foreign currency translation. Real Estate up 38% over the last year, including capital committed to our latest global buyout fun
Slide 22: Total AUM Net Flows
Total AUM Net Flows Total AUM roughly flat from last quarter and up $31.6 billion or 20% from last year despite the negative impact of foreign currency translation. Private Equity market appreciation down $1.9 billion over the last year, driven by negative performance of our public portfolio. Real E
Slide 23: Net Accrued Performance Fees
(1) Net Accrued Performance Fees Blackstone had $1.8 billion of accrued performance fees, net of compensation, as of the end of the second quarter. (2) (3) Net Accrued Performance Fees (4) (Dollars in Millions, Except per Unit Data) 1Q'12 2Q'12 Per Unit Change vs. 1Q'12 Private Equity BCP IV Carried
Slide 24: Investment Records as of June 30, 2012
InvestmentRecordsasof June30, 2012(1) (4) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (Dollars in Thousands, Except Where Noted) (2) (3) (3) (3) Capital Capital Value MOIC % Public Value MOIC Value MOIC Realized Total Private Equity BCP I (Oct 1987 / Oc
Slide 25: Investment Records as of June 30, 2012 – Notes
InvestmentRecordsasof June30, 2012 – Notes The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P. n/m Not meaningful. n/a Not applicable. (1) Preliminary. (2) Available Capital represents total investable capital commitments, includ
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures (Dollars in Thousands) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 Net Income (Loss) Attributable to The Blackstone Group L.P. $ 86,237 $ (274,567) $ (22,677) $ 58,325 $ (74,964) Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings 190,908
Slide 27: Reconciliation of GAAP to Non-GAAP Measures – Notes
Reconciliation of GAAPto Non-GAAPMeasures– Notes Note: Prior period amounts have been adjusted to conform to the current period presentation and definitions. See also Appendix - Definitions. (1) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-R
Slide 28: Calculation of Certain Non-GAAP Financial Metric Components
Calculation of Certain Non-GAAP Financial Metric Components (Dollars in Thousands) 2Q'12 Year-to-Date Interest Income and Dividend Revenue $ 10,391 $ 19,736 Other Revenue (828) (2,035) (1) Investment Income (Loss) - Blackstone's Treasury Cash Management Strategies 1,892 8,202 Interest Income and Oth
Slide 29: Unit Rollforward
Unit Rollforward 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 YTD Total GAAPWeighted-AverageCommonUnits Outstanding- Basic 476,289,647 487,189,657 490,511,637 506,985,529 528,778,977 517,882,253 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units 7,353,999 - - 10,404,029 - - Total GAAPWeighted-
Slide 30: Definitions
Definitions Blackstone discloses the following 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: • Blackstone uses Economic Incom
Slide 31: 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 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operat