Blackstone Inc. · NYSE:BX
Blackstone — Q4 2020 Earnings Presentation
41 slides from Blackstone's earnings presentation, Jan 27, 2021
Slide 1: Blackstone Reports Fourth Quarter and Full Year 2020 Results
Blackstone Reports Fourth Quarter and Full Year 2020 Results New York, January 27, 2021: Blackstone (NYSE:BX) today reported its fourth quarter and full year 2020 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone achieved record results in the fourth quarter. De
Slide 2: About Blackstone and Forward-Looking Statements
https://event.webcasts.com/starthere.jsp?ei=1417556&tp_key=f411308b3b. For those unable to listen to the 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 investm
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 Fourth Quarter and Full Year 2020 Earnings
Blackstone’s Fourth Quarter and Full Year 2020 Earnings JANUARY 27, 2021
Slide 5: Fourth Quarter and Full Year 2020 GAAP Results
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2020 GAAP RESULTS GAAP Net Income was $1.8 billion for the quarter and $2.3 billion for the year. GAAP Net Income Attributable to The Blackstone Group Inc. was $749 million for the quarter and $1.0 billion for the year. ($ in thousands, except per share da
Slide 6: Fourth Quarter and Full Year 2020 Highlights
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2020 HIGHLIGHTS Fee Related Earnings (“FRE”) of $750 million ($0.62/share) in the quarter, up 36% year- over-year – FRE was $2.4 billion for the year ($1.97/share), up 33% year-over-year Financial Measures Distributable Earnings (“DE”) of $1.5 billion ($
Slide 7: Fourth Quarter and Full Year 2020 Segment Earnings
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2020 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 4Q'19 4Q'20 vs. 4Q'19 FY'19 FY'20 vs. FY'19 Management and Advisory Fees, Net $ 945,673 $ 1,136,025 20% $ 3,484,236 $ 4,111,165 18% Fee Related Performance Revenues 156,373 286,2
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS Full year Fee Related Earnings of $1.97 per share, an increase of 32% year-over-year. Full year Total Segment Distributable Earnings were $3.7 billion, an increase of 20% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $1.97 FY’
Slide 9: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES Strong appreciation across strategies led to an 8% increase in Net Accrued Performance Revenues to $3.8 billion ($3.19/share) quarter-over-quarter. Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL Inflows were $32.3 billion in the quarter, bringing full year inflows to $95.0 billion. Realizations were $20.9 billion in the quarter and $42.6 billion for the year. Deployed $25.4 billion in the quarter and $61.7 billion for the year. – Committed an additi
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT Total AUM increased to $618.6 billion, up 8% year-over-year, with $32.3 billion of inflows in the quarter and $95.0 billion for the year. Fee-Earning AUM of $469.4 billion was up 15% year-over-year, with $31.0 billion of inflows in the quarter and $109.2 billion for the y
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL Invested Performance Eligible AUM reached $293.6 billion at quarter end, up 18% year-over-year. Undrawn capital (“Total Dry Powder”) available for investment of $147.7 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 4Q’20 tota
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE Total AUM: Increased 15% to $187.2 billion with inflows of $12.0 billion in the quarter and $33.4 billion for the year. – Inflows during the quarter included $8.0 billion in BPP Life Sciences, $1.6 billion across BPP Europe, Asia, and U.S., and $2.0 billion in BREIT. – Perpetual Capita
Slide 15: Private Equity
PRIVATE EQUITY Total AUM: Increased 8% to $197.5 billion with inflows of $5.0 billion in the quarter and $23.0 billion for the year. – Inflows in the quarter included $2.4 billion for the final close of the second Core Private Equity fund, bringing total capital raised during the year to $8.2 bill
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS Total AUM: $79.4 billion with inflows of $2.1 billion in the quarter and $10.4 billion for the year. – Record market appreciation of $4.2 billion in the quarter. – Held additional closes for second GP stakes fund, bringing LTD commitments to $4.0 billion. Returns: BPS Compos
Slide 17: Credit & Insurance
CREDIT & INSURANCE Total AUM: $154.4 billion with inflows of $13.1 billion in the quarter and $28.1 billion for the year. – Acquired DCI, a pioneer in quantitative credit investing, in the quarter, contributing $7.8 billion to Total AUM. – Mezzanine / opportunistic strategy closed $1.1 billion in
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 FY'19 FY'20 Base Management Fees $ 873,368 $ 910,396 $ 941,794 $ 1,043,770 $ 1,076,094 $ 3,245,930 $ 3,972,054 Transaction, Advisory and Other Fees, Net 95,073 50,665 48,292 33,628 75,290 314,420 207,875 Management Fee Offsets (22,768) (2
Slide 20: Assets Under Management – Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended December 31, 2020 Twelve Months Ended December 31, 2020 Real Private Hedge Fund Credit & Real Private Hedge Fund Credit & Total Total Estate Equity Solutions Insurance Estate Equity Solutions Insurance Beg
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS At December 31, 2020, Blackstone had $5.6 billion in total cash, cash equivalents, and corporate treasury investments and $11.5 billion of cash and net investments, or $9.61 per share. Blackstone has a $2.3 billion undrawn credit revolver and maintains A+/
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 4Q'20 ($ in millions, except per share data) 4Q'19 3Q'20 4Q'20 Per Share 4Q’20 QoQ Rollforward Real Estate BREP IV $ 11 $ 8 $ 9 $ 0.01 ($ in millions) BREP V 19 7 13 0.01 Net Net Performance Realized BREP VI 76 46 42 0.04 3Q'20 Revenues Distributi
Slide 23: Investment Records as of December 31, 2020
INVESTMENT RECORDS AS OF DECEMBER 31, 2020 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c)
Slide 24: Investment Records as of December 31, 2020 (Cont'd)
INVESTMENT RECORDS AS OF DECEMBER 31, 2020 (a) – (CONT’D) ($/€ 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) Valu
Slide 25: Investment Records – Notes
INVESTMENT RECORDS AS OF DECEMBER 31, 2020 – 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 veh
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS Generated $1.13 of Distributable Earnings per common share during the quarter, bringing the full year amount to $2.65 per common share. Blackstone declared a quarterly dividend of $0.96 per common share to record holders as of February 8, 2021; payable on February 16, 2021.
Slide 27: Share Summary
SHARE SUMMARY Distributable Earnings Shares Outstanding as of quarter end of 1,200 million shares. – Repurchased 9.0 million common shares for the year. 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 Participating Common Shares 680,457,424 687,869,905 697,597,036 700,649,135 703,959,789 Participating Partnership U
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD FY ($ in thousands) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 FY'19 FY'20 Net Income (Loss) Attributable to The Blackstone Group Inc. $ 483,149 $ (1,066,492) $ 568,266 $ 794,719 $ 748,870 $ 2,049,682 $ 1,045,363 Net Income (Loss) Attributable to Non-Controlling In
Slide 30: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 35-36, 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 acquisiti
Slide 31: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (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 Payab
Slide 32: Fourth Quarter 2020 GAAP Balance Sheet Results
BLACKSTONE’S FOURTH QUARTER 2020 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 Assets Cash and Cash Equivalents $ 2,172,441 $ 2,068,326 $ 1,976,512 $ 2,628,895 $ 1,999,484 Cash Held by Blackstone Funds and Other 351,210 318,003 343,201 85,218 64,972 Investment
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 Investments of Consolidated Blackstone Funds $ 8,380,698 $ 7,275,752 $ 7,943,531 $ 1,500,398 $ 1,455,008 Equity Method Investments Partnership Investments 4,035,675 3,553,538 3,873,346 4,144,249
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD FY ($ in thousands) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 FY'19 FY'20 Management and Advisory Fees, Net GAAP $ 943,900 $ 934,832 $ 969,728 $ 1,053,851 $ 1,134,138 $ 3,472,155 $ 4,092,549 Segment Adjustment (a) 1,773 5,735 7,005 3,989 1,887 12,081 18,616 Total Seg
Slide 35: Reconciliation of GAAP to Total Segments (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD FY ($ in thousands) 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 FY'19 FY'20 Realized Performance Compensation GAAP Incentive Fee Compensation $ 24,589 $ 6,522 $ 8,432 $ 7,385 $ 22,086 $ 44,300 $ 44,425 Realized Performance Allocations Compensation 295,059 72
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s Fourth Quarter and Full Year 2020 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 Bl
Slide 37: Notes (Cont'd)
NOTES – (CONT’D) Notes to page 5 - Investment Performance and Net Accrued Performance Revenues (Cont’d) Effective 1Q’20, Credit returns are presented as a composite return instead of separate returns for performing credit and distressed. The Credit Composite now also includes the long only strateg
Slide 38: Notes (Cont'd)
NOTES – (CONT’D) 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 deduction
Slide 39: 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 40: 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 41: 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