Blackstone Inc. · NYSE:BX
Blackstone — Q3 2023 Earnings Presentation
43 slides from Blackstone's earnings presentation, Oct 19, 2023
Slide 1: Blackstone Reports Third Quarter 2023 Results
Blackstone Reports Third Quarter 2023 Results New York, October 19, 2023: Blackstone (NYSE:BX) today reported its third quarter 2023 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone delivered resilient third-quarter results despite challenging markets. Our inve
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 the world’s largest alternative asset manager. We seek to create positive economic impact and long- term value for our investors. We do this by
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 Third Quarter 2023 Earnings
Blackstone’s Third Quarter 2023 Earnings OCTOBER 19, 2023
Slide 5: Blackstone's Third Quarter 2023 GAAP Results
BLACKSTONE’S THIRD QUARTER 2023 GAAP RESULTS ▪ GAAP Net Income was $921 million for the quarter and $2.3 billion year-to-date (“YTD”). GAAP Net Income Attributable to Blackstone Inc. was $552 million for the quarter and $1.2 billion YTD. ($ in thousands, except per share data) (unaudited) 3Q'22 3Q'2
Slide 6: Blackstone's Third Quarter 2023 Highlights
BLACKSTONE’S THIRD QUARTER 2023 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.1 billion ($0.92/share) in the quarter – FRE was $4.4 billion over the last twelve months (“LTM”) ($3.60/share) Financial Measures ▪ Distributable Earnings (“DE”) of $1.2 billion ($0.94/share) in the quarter – DE was $5.
Slide 7: Blackstone's Third Quarter 2023 Segment Earnings
BLACKSTONE’S THIRD QUARTER 2023 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 3Q'22 3Q'23 vs. 3Q'22 3Q'22 YTD 3Q'23 YTD vs. 3Q'22 YTD Management and Advisory Fees, Net $ 1,611,570 $ 1,653,840 3% $ 4,641,855 $ 5,009,413 8% Fee Related Performance Revenues 372,131 274,551
Slide 8: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Realized distributions across strategies led to lower Net Accrued Performance Revenues quarter-over-quarter of $6.4 billion ($5.29/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millio
Slide 9: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $25.3 billion in the quarter, bringing LTM inflows to $138.9 billion. ▪ Deployed $12.4 billion in the quarter and $61.4 billion over the LTM. – Committed an additional $6.7 billion that was not yet deployed in the quarter. ▪ Realizations were $14.8
Slide 10: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $1,007.4 billion, up 6% year-over-year, with $25.3 billion of inflows in the quarter and $138.9 billion over the LTM. ▪ Fee-Earning AUM of $734.5 billion was up 4% year-over-year, with $24.8 billion of inflows in the quarter and $105.7 billion over th
Slide 11: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $504.9 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $200.6 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 3Q’23 total: $200.6 $494.4 $504.9
Slide 12: Segment Highlights
Segment Highlights Blackstone | 8
Slide 13: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 3Q’23 Total Segment Distributable Earnings were $1.4 billion. ▪ LTM Total Segment Distributable Earnings were $5.6 billion. Segment Distributable Earnings ($ in millions) 3Q’23 total: $1,383 3Q’23 LTM total: $5,592 Hedge Fund Hedge Fund Solutions Solution
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 4% to $331.5 billion with inflows of $9.1 billion in the quarter and $48.2 billion over the LTM. – Inflows in the quarter included $3.2 billion for the seventh European opportunistic fund, which commenced its investment period in September, $724 million of capital
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 5% to $298.6 billion with inflows of $3.6 billion in the quarter and $25.4 billion over the LTM. – Inflows in the quarter included $1.2 billion for Tactical Opportunities vehicles, $1.1 billion in Secondaries, and $473 million for the ninth flagship private equi
Slide 16: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 10% to $297.2 billion with inflows of $10.4 billion in the quarter and $55.6 billion over the LTM. – Inflows in the quarter included $5.0 billion for the global direct lending strategy, including $2.5 billion of equity raised for BCRED, bringing direct lendi
Slide 17: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $80.0 billion with inflows of $2.3 billion in the quarter and $9.7 billion over the LTM. – October 1 subscriptions of $248 million not yet included in Total AUM. ▪ Returns: BPS Composite gross return of 2.5% in the quarter (2.3% net), outperforming the HFRX Global H
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 3Q'22 YTD 3Q'23 YTD Base Management Fees $ 1,528,561 $ 1,580,452 $ 1,619,547 $ 1,620,609 $ 1,619,743 $ 4,464,586 $ 4,859,899 Transaction, Advisory and Other Fees, Net 89,865 71,151 45,710 92,735 44,611 238,966 183,056 Management Fee Offse
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended September 30, 2023 Twelve Months Ended September 30, 2023 Real Private Credit & Hedge Fund Real Private Credit & Hedge Fund Total Total Estate Equity Insurance Solutions Estate Equity Insurance Solutions B
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At September 30, 2023, Blackstone had $8.4 billion in total cash, cash equivalents, corporate treasury, and other investments and $17.2 billion of cash and net investments, or $14.14 per share. ▪ Blackstone has a $4.1 billion undrawn credit revolver and main
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 3Q'23 ($ in millions, except per share data) 3Q'22 2Q'23 3Q'23 Real Estate Per Share 3Q’23 QoQ Rollforward BREP IV $ 7 $ 6 $ 6 $ 0.01 ($ in millions) BREP V 3 4 4 0.00 Net Net BREP VI 24 17 20 0.02 Performance Realized BREP VII 145 60 22 0.02 2Q'2
Slide 23: Investment Records as of September 30, 2023
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2023 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c)
Slide 24: Investment Records as of September 30, 2023 (Cont'd)
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2023 (a) – (CONT’D) ($/€ 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) Val
Slide 25: Investment Records – Selected Perpetual Capital Strategies
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2023 (a) – (CONT’D) Selected Perpetual Capital Strategies(l) ($ in thousands, except where noted) Investment Total Total Net Strategy (Inception Year) Strategy AUM Return (m) Real Estate BPP - Blackstone Property Partners Platform (2013) (n) Core+ Real Estate $
Slide 26: Investment Records Footnotes (Cont'd)
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2023 (a) – (CONT’D) (l) 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) perpetual capital assets managed for certain insu
Slide 27: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.94 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $2.84 per common share. ▪ Blackstone declared a quarterly dividend of $0.80 per common share to record holders as of October 30, 2023; payable on November 6, 2023. % Chan
Slide 28: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1,217 million shares. – Repurchased 1.3 million common shares in the quarter and 3.3 million common shares over the LTM. – Available authorization remaining was $798 million at September 30, 2023. 3Q'22 4Q'22 1Q'23 2Q'23
Slide 29: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 25
Slide 30: GAAP Condensed Consolidated Statements of Operations
BLACKSTONE’S THIRD QUARTER 2023 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF OPERATIONS ($ in thousands, except per share data) (unaudited) 3Q'22 3Q'23 3Q'22 YTD 3Q'23 YTD 3Q'22 LTM 3Q'23 LTM Revenues Management and Advisory Fees, Net $ 1,617,754 $ 1,655,443 $ 4,654,877 $ 5,023,128 $ 6,114,425 $ 6,671
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 3Q'22 3Q'23 3Q'22 3Q'23 Net Income (Loss) Attributable to Blackstone Inc. $ 2,296 $ 557,854 $ 85,812 $ 601,274 $ 551,994 $ 1,189,777 $ 1,239,080 $ 2,588,255 $ 1,796,934 Net Income Attributable to N
Slide 32: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 36-38, Definitions and Dividend Policy. (a) This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related and Non-Recurring Items arise from corpo
Slide 33: 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. For
Slide 34: GAAP Condensed Consolidated Statements of Financial Condition
BLACKSTONE’S THIRD QUARTER 2023 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF FINANCIAL CONDITION ($ in thousands) (unaudited) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Assets Cash and Cash Equivalents $ 3,480,003 $ 4,252,003 $ 2,830,971 $ 3,280,204 $ 2,971,614 Cash Held by Blackstone Funds and Other 94,358 241,71
Slide 35: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Investments of Consolidated Blackstone Funds $ 3,828,497 $ 5,136,967 $ 5,443,867 $ 5,490,773 $ 5,224,104 Equity Method Investments Partnership Investments 5,566,645 5,530,420 5,598,552 5,585,603
Slide 36: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 3Q'22 3Q'23 3Q'22 3Q'23 Management and Advisory Fees, Net GAAP $ 1,617,754 $ 1,648,438 $ 1,658,315 $ 1,709,370 $ 1,655,443 $ 4,654,877 $ 5,023,128 $ 6,114,425 $ 6,671,566 Segment Adjustment (a) (6,1
Slide 37: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 3Q'22 3Q'23 3Q'22 3Q'23 Realized Performance Compensation GAAP Incentive Fee Compensation $ 50,355 $ 71,261 $ 63,281 $ 64,227 $ 65,432 $ 136,737 $ 192,940 $ 186,086 $ 264,201 Realized Per
Slide 38: Notes
NOTES Notes to page 4 - Investment Performance and Net Accrued Performance Revenues ▪ 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. ▪ Core+ appreciation represen
Slide 39: Notes – (Cont'd)
NOTES – (CONT’D) Notes to page 23 – 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 deduction
Slide 40: 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 41: 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 42: Definitions and Dividend Policy – (Cont'd)
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 direc
Slide 43: 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