Slide 1: Blackstone Reports Fourth Quarter and Full Year 2022 Results
Blackstone Reports Fourth Quarter and Full Year 2022 Results New York, January 26, 2023: Blackstone (NYSE:BX) today reported its fourth quarter and full year 2022 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Despite one of the most challenging market backdrops in hist
Slide 2: About Blackstone and Forward-Looking Statements
https://event.webcasts.com/starthere.jsp?ei=1578844&tp_key=4829f51418. 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 the world’s largest alternative as
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 2022 Earnings
Blackstone’s Fourth Quarter and Full Year 2022 Earnings JANUARY 26, 2023
Slide 5: Fourth Quarter and Full Year 2022 GAAP Results
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2022 GAAP RESULTS ▪ GAAP Net Income was $743 million for the quarter and $3.0 billion for the year. GAAP Net Income Attributable to Blackstone Inc. was $558 million for the quarter and $1.7 billion for the year. ($ in thousands, except per share data) (unaud
Slide 6: Fourth Quarter and Full Year 2022 Highlights
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2022 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.1 billion ($0.88/share) in the quarter – FRE was $4.4 billion for the year ($3.65/share) ▪ Distributable Earnings (“DE”) of $1.3 billion ($1.07/share) in the quarter Financial Measures – DE was $6.6 billio
Slide 7: Fourth Quarter and Full Year 2022 Segment Earnings
BLACKSTONE’S FOURTH QUARTER AND FULL YEAR 2022 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 4Q'21 4Q'22 vs. 4Q'21 FY'21 FY'22 vs. FY'21 Management and Advisory Fees, Net $ 1,456,220 $ 1,641,091 13% $ 5,167,242 $ 6,282,946 22% Fee Related Performance Revenues 1,733,874 1
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 $6.8 billion ($5.67/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millio
Slide 9: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $43.1 billion in the quarter, bringing full year inflows to $226.0 billion. ▪ Deployed $18.7 billion in the quarter and $120.6 billion for the year. – Committed an additional $9.8 billion that was not yet deployed in the quarter. ▪ Realizations were
Slide 10: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $974.7 billion, up 11% year-over-year, with $43.1 billion of inflows in the quarter and $226.0 billion for the year. ▪ Fee-Earning AUM of $718.4 billion was up 11% year-over-year, with $31.0 billion of inflows in the quarter and $172.3 billion for the
Slide 11: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $501.0 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $186.6 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 4Q’22 total: $186.6 $501.0 Hedge
Slide 12: Segment Highlights
Segment Highlights Blackstone | 8
Slide 13: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 4Q’22 Total Segment Distributable Earnings were $1.4 billion. ▪ Full year Total Segment Distributable Earnings were $7.5 billion, an increase of 7% year-over-year. Segment Distributable Earnings ($ in millions) 4Q’22 total: $1,433 FY’22 total: $7,456 Hedg
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 17% to $326.1 billion with inflows of $14.2 billion in the quarter and $90.2 billion for the year. – Inflows during the quarter included $2.3 billion in the tenth global opportunistic fund (bringing total capital commitments to $28.6 billion), $2.0 billion of capit
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 10% to $288.9 billion with inflows of $8.7 billion in the quarter and $52.7 billion for the year. – Inflows in the quarter included $3.2 billion in Blackstone Infrastructure Partners and $2.6 billion for the ninth Secondaries strategy. ▪ Capital Deployed: $6.4 b
Slide 16: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 8% to $279.9 billion with inflows of $16.2 billion in the quarter and $72.0 billion for the year. – Inflows in the quarter included $3.5 billion for U.S. Direct Lending SMAs and $1.5 billion equity raised for BCRED. – Raised $832 million for the private cred
Slide 17: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $79.7 billion with inflows of $3.9 billion in the quarter and $11.1 billion for the year. – Held final close for fourth seeding fund in the quarter, bringing total capital raised to $1.1 billion. – January 1 subscriptions of $1.2 billion not yet included in Total AU
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 FY'21 FY'22 Base Management Fees $ 1,354,068 $ 1,439,149 $ 1,496,876 $ 1,528,561 $ 1,580,452 $ 4,819,275 $ 6,045,038 Transaction, Advisory and Other Fees, Net 120,389 64,009 85,092 89,865 71,151 391,938 310,117 Management Fee Offsets (18,
Slide 20: Assets Under Management – Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended December 31, 2022 Twelve Months Ended December 31, 2022 Real Private Credit & Hedge Fund Real Private Credit & Hedge Fund Total Total Estate Equity Insurance Solutions Estate Equity Insurance Solutions Beg
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At December 31, 2022, Blackstone had $9.7 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.8 billion of cash and net investments, or $15.62 per share. ▪ Blackstone has a $4.1 billion undrawn credit revolver and maint
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 4Q'22 ($ in millions, except per share data) 4Q'21 3Q'22 4Q'22 Real Estate Per Share 4Q’22 QoQ Rollforward BREP IV $ 22 $ 7 $ 6 $ 0.01 ($ in millions) BREP V 36 3 4 0.00 Net Net BREP VI 33 24 21 0.02 Performance Realized BREP VII 481 145 115 0.09
Slide 23: Investment Records as of December 31, 2022
INVESTMENT RECORDS AS OF DECEMBER 31, 2022 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c)
Slide 24: Investment Records as of December 31, 2022 (Cont'd)
INVESTMENT RECORDS AS OF DECEMBER 31, 2022 (a) – (CONT’D) ($/€ 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, 2022 – NOTES The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc. n/m Not meaningful generally due to the limited time since initial investment. n/a Not applicable. (a) Excludes investment vehicles wher
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $1.07 of Distributable Earnings per common share during the quarter, bringing the full year amount to $5.17 per common share. ▪ Blackstone declared a quarterly dividend of $0.91 per common share to record holders as of February 6, 2023; payable on February 13, 2023.
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.206 billion shares. – Repurchased 3.9 million common shares for the year. – Available authorization remaining was $1.1 billion at December 31, 2022. 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Participating Common Shares 732,037,197
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD FY ($ in thousands) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 FY'21 FY'22 Net Income (Loss) Attributable to Blackstone Inc. $ 1,398,478 $ 1,216,874 $ (29,393) $ 2,296 $ 557,854 $ 5,857,397 $ 1,747,631 Net Income (Loss) Attributable to Non-Controlling Interests in
Slide 30: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 34-36, 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 (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 32: Fourth Quarter 2022 GAAP Balance Sheet Results
BLACKSTONE’S FOURTH QUARTER 2022 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Assets Cash and Cash Equivalents $ 2,119,738 $ 3,868,567 $ 4,183,380 $ 3,480,003 $ 4,252,003 Cash Held by Blackstone Funds and Other 79,994 110,648 129,276 94,358 241,712 Investment
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Investments of Consolidated Blackstone Funds $ 2,018,829 $ 2,045,156 $ 3,764,850 $ 3,828,497 $ 5,136,967 Equity Method Investments Partnership Investments 5,635,212 5,858,926 5,446,688 5,566,645
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD FY Y ($ in thousands) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 FY'21 FY'22 Management and Advisory Fees, Net GAAP $ 1,459,548 $ 1,475,936 $ 1,561,187 $ 1,617,754 $ 1,648,438 $ 5,170,707 $ 6,303,315 Segment Adjustment (a) (3,328) (2,568) (4,270) (6,184) (7,347) (3,46
Slide 35: Reconciliation of GAAP to Total Segments (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD FY Y ($ in thousands) 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 FY'21 FY'22 Realized Performance Compensation GAAP Incentive Fee Compensation $ 49,349 $ 41,019 $ 45,363 $ 50,355 $ 71,261 $ 98,112 $ 207,998 Realized Performance Allocations Compensation 1,11
Slide 36: Notes
NOTES Notes to page 1 – Blackstone’s Fourth Quarter and Full Year 2022 GAAP Results ▪ During 4Q'22, Blackstone recorded an out-of-period adjustment to revise the investment basis used to calculate deferred tax assets and the deferred tax provision. The adjustment reflects the cumulative impact of th
Slide 37: Notes (Cont'd)
NOTES – (CONT’D) Notes to page 4 – Investment Performance and Net Accrued Performance Revenues (Cont’d) ▪ The BPS Composite gross and net returns are based on the BAAM Principal Solutions (“BPS”) Composite, which includes only BAAM-managed commingled and customized multi-manager funds and accounts a
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: 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 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