Slide 1: Blackstone's Fourth Quarter and Full Year 2015 Earnings
Blackstone’s Fourth Quarter and Full Year 2015 Earnings January 28, 2016 Confidential Exhibit 99.2
Slide 2: Fourth Quarter and Full Year 2015 Highlights
Blackstone’s Fourth Quarter and Full Year 2015 Highlights Economic Net Income (“ENI”) was $436 million ($0.37/unit) in the fourth quarter, on $877 million of Total Segment Revenues. ENI was $2.2 billion ($1.82/unit) for the year on $4.6 billion of Total Segment Revenues. Distributable Earnings (“DE”
Slide 3: Fourth Quarter and Full Year 2015 Segment Earnings
Blackstone’s Fourth Quarter and Full Year 2015 Segment Earnings n/m = not meaningful. See page 12 for the GAAP Statement of Operations. % Change % Change (Dollars in Thousands, Except per Unit Data) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 687,548 $ 659,931 $ (4)% 2,577,445 $ 2,573,4
Slide 4: Record Distributable Earnings, Realized Performance Fees, and AUM
Record Distributable Earnings, Realized Performance Fees, and AUM Total Segment Revenues and ENI (Dollars in Billions) Distributable Earnings and FRE (Dollars in Billions) Total and Fee-Earning AUM (Dollars in Billions) Net Realized Performance Fees (Dollars in Billions) Distributable Earnings Fee R
Slide 5: Private Equity
Private Equity 9.5% FY’15 increase in fund carrying value $1.5 billion FY’15 Realized Performance Fees $94.3 billion Total AUM up 29% YoY Private Equity had a strong year with $13.5 billion in realizations, $11.4 billion capital deployed and $29.6 billion capital raised. Private Equity carrying valu
Slide 6: Real Estate
Real Estate Unique scale and reach of global platform resulted in $20.8 billion of realizations, $21.5 billion capital invested or committed and $26.5 billion capital raised, all reaching record levels in 2015. Investment pace accelerated to $7.8 billion in the quarter, capitalizing on public market
Slide 7: Hedge Fund Solutions
Hedge Fund Solutions 2.9% FY’15 Composite Gross Return $35.8 billion Incentive Fee Eligible AUM at 4Q’15 $2.0 billion 4Q’15 Fee-Earning Gross Inflows The composite gross return is based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM's individual investor solutions (li
Slide 8: Credit
Credit Performance in all three alternative credit strategies was negatively impacted in the quarter by energy commodity pricing, turbulence in the credit market, and technical pressure caused by year-end selling. Gross composite returns for the quarter were down 7.7%, 11.2%, and 5.7% for Mezzanine,
Slide 9: Assets Under Management
Total AUM by Segment (Dollars in Billions) $290.4 $336.4 $265.8 Fee-Earning AUM by Segment (Dollars in Billions) $216.7 $246.1 $198.0 Private Equity Real Estate Hedge Fund Solutions Credit Record Fee-Earning AUM of $246.1 billion was up 14% year-over-year as $68.6 billion of gross inflows significan
Slide 10: Additional Capital Detail
Additional Capital Detail Undrawn capital (“Total Dry Powder”) was $79.7 billion, up 73% year-over-year, driven by recent fundraises for the latest global private equity and real estate funds. Performance Fee Eligible AUM reached $249.6 billion at quarter end, up 22% year-over-year, despite signific
Slide 11: Balance Sheet Highlights
At December 31, 2015, Blackstone had $4.2 billion in total cash, corporate treasury and liquid investments and $9.5 billion of total net value, or $8.01 per DE unit. As of year-end, Blackstone had no net debt and maintained its A+/A+ ratings. Balance Sheet Highlights Balance Sheet Highlights are pre
Slide 12: Performance Fees
Net Accrued Performance Fees were $3.3 billion ($2.75/unit) despite high Net Realized Performance Fees of $2.5 billion during the year. Realized 55% of the $4.6 billion Net Accrued Performance Fees balance from one year prior. Net Realized Performance Fees grew 41% since the fourth quarter of 2014,
Slide 13: GAAP Statement of Operations
GAAP Statement of Operations % Change % Change (Dollars in Thousands, Except per Unit Data) (Unaudited) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Revenues Management and Advisory Fees, Net 663,620 $ 648,009 $ (2)% 2,497,252 $ 2,542,505 $ 2% Performance Fees Realized Carried Interest 836,124 625,02
Slide 14: Appendix
Appendix
Slide 15: Total Segments
Total Segments (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management and Advisory Fees, Net Base Management Fees 508,588 $ 516,397 $ 516,492 $ 564,287 $ 599,407 $ 1,987,529 $ 2,196,583 $ Advisory Fees 151,837 84,238 76,998 146,153 742 420,845 308,131 Transaction and Ot
Slide 16: Private Equity
Private Equity Note: As a result of the spin-off on October 1, 2015 of Blackstone’s Financial Advisory business, which did not include Blackstone's capital markets services business, the results of Blackstone’s capital markets services business were reclassified from the Financial Advisory segment t
Slide 17: Real Estate
Real Estate (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 156,208 $ 152,348 $ 140,743 $ 175,710 $ 199,774 $ 628,502 $ 668,575 $ Transaction and Other Fees, Net 26,220 15,216 21,510 21,390 52,461 91,610 110,577 Management Fee Offse
Slide 18: Hedge Fund Solutions
Hedge Fund Solutions (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 125,105 $ 130,637 $ 130,216 $ 133,592 $ 129,941 $ 482,981 $ 524,386 $ Transaction and Other Fees, Net 189 25 - 219 73 569 317 Management Fee Offsets (929) (280) (6
Slide 19: Credit
Credit (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 121,458 $ 125,029 $ 123,615 $ 126,533 $ 125,805 $ 460,205 $ 500,982 $ Transaction and Other Fees, Net 4,728 1,457 2,060 1,289 1,565 18,161 6,371 Management Fee Offsets (10,327)
Slide 20: Financial Advisory
Financial Advisory Note: As a result of the spin-off on October 1, 2015 of Blackstone’s Financial Advisory business, which did not include Blackstone's capital markets services business, the results of Blackstone’s capital markets services business were reclassified from the Financial Advisory segme
Slide 21: Unitholder Distribution
Unitholder Distribution A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on page 31, Definitions and Distribution Policy. DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Re
Slide 22: Fee-Earning AUM Rollforward
Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents
Slide 23: Total AUM Rollforward
4Q’15 Total AUM Rollforward (Dollars in Millions) FY’15 Total AUM Rollforward (Dollars in Millions) Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases in available cap
Slide 24: Net Accrued Performance Fees
Net Accrued Performance Fees Net Accrued Performance Fees are presented net of performance fee compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized Performance Fees are included in DE. When these fees are received, the receivable is reduced withou
Slide 25: Investment Records as of December 31, 2015
Investment Records as of December 31, 2015(a) Continued... Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total Private Equity
Slide 26: Investment Records as of December 31, 2015 – Continued
Investment Records as of December 31, 2015(a) – Continued The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P. n/mNot meaningful. n/aNot applicable. Preliminary. Available Capital represents total investable capital commitments, i
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Notes on page 27. (Dollars in Thousands) 4Q'14 1Q'15 (m) 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Net Income (Loss) Attributable to The Blackstone Group L.P. 551,451 $ 629,448 $ 134,168 $ (254,697) $ 200,870 $ 1,584,589 $ 709,789 $ Net Income (Loss) Attributable to N
Slide 28: Reconciliation of GAAP to Non-GAAP Measures – Notes
Reconciliation of GAAP to Non-GAAP Measures – Notes Note: See page 31, Definitions and Distribution Policy. This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which include principally equity-based compensation charges associated w
Slide 29: Walkdown of Financial Metrics
Walkdown of Financial Metrics See page 29, Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on page 14, Total Segments. 4Q’15 Fee Related Earnings per Unit is based on end of per
Slide 30: Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics
Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics Unless otherwise noted, all amounts are the respective captions from the Total Segment information. Represents equity-based award expense included in Economic Income, which excludes all transaction-related equity-based
Slide 31: Unit Rollforward
Unit Rollforward 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Total GAAP Weighted-Average Common Units Outstanding - Basic 615,492,620 625,276,969 631,881,205 638,832,799 641,134,086 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units 6,843,140 5,955,072 2,311,444 - 1,794,046 Weighted-Average B
Slide 32: Definitions and Distribution Policy
Definitions and Distribution Policy 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: Blacksto
Slide 33: 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