Slide 1: Blackstone Reports Second Quarter 2022 Results
Blackstone Reports Second Quarter 2022 Results New York, July 21, 2022: Blackstone (NYSE:BX) today reported its second quarter 2022 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “We delivered exceptional financial results for our shareholders in the second quarter despi
Slide 2: About Blackstone and Forward-Looking Statements
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, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help com
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 Second Quarter 2022 Earnings
Blackstone’s Second Quarter 2022 Earnings JULY 21, 2022
Slide 5: Second Quarter 2022 GAAP Results
BLACKSTONE’S SECOND QUARTER 2022 GAAP RESULTS ▪ GAAP Net Income (Loss) was $(256) million for the quarter and $2.2 billion year-to-date (“YTD”). GAAP Net Income (Loss) Attributable to Blackstone Inc. was $(29) million for the quarter and $1.2 billion YTD. ($ in thousands, except per share data) (una
Slide 6: Second Quarter 2022 Highlights
BLACKSTONE’S SECOND QUARTER 2022 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.0 billion ($0.84/share) in the quarter, up 45% year- over-year – FRE was $4.8 billion over the last twelve months (“LTM”) ($3.96/share) ▪ Distributable Earnings (“DE”) of $2.0 billion ($1.49/share) in the quarter, up 86
Slide 7: Second Quarter 2022 Segment Earnings
BLACKSTONE’S SECOND QUARTER 2022 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 2Q'21 2Q'22 vs. 2Q'21 2Q'21 YTD 2Q'22 YTD vs. 2Q'21 YTD Management and Advisory Fees, Net $ 1,212,742 $ 1,556,917 28% $ 2,390,947 $ 3,030,285 27% Fee Related Performance Revenues 48,889 346,59
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS ▪ LTM Fee Related Earnings of $3.96 per share, an increase of 70% year-over-year. ▪ LTM Total Segment Distributable Earnings were $8.9 billion, an increase of 78% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $3.96 2Q’22 LTM total
Slide 9: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Significant realized distributions and unrealized negative appreciation across strategies led to lower Net Accrued Performance Revenues quarter-over-quarter of $7.5 billion ($6.18/share). Investment Performance Net Accrued Performance Rev
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $88.3 billion in the quarter, bringing LTM inflows to $339.7 billion. ▪ Realizations were $29.3 billion in the quarter and $95.3 billion over the LTM. ▪ Deployed $47.8 billion in the quarter and $173.4 billion over the LTM. – Committed an additional
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $940.8 billion, up 38% year-over-year, with $88.3 billion of inflows in the quarter and $339.7 billion over the LTM. ▪ Fee-Earning AUM of $683.8 billion was up 37% year-over-year, with $44.4 billion of inflows in the quarter and $262.4 billion over th
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $487.4 billion at quarter end, up 39% year-over-year. ▪ Undrawn capital (“Total Dry Powder”) available for investment reached a record $170.1 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billio
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 54% to $320.0 billion with inflows of $48.9 billion in the quarter and $123.7 billion over the LTM. – Inflows during the quarter included $24.4 billion in the tenth global opportunistic fund, $9.6 billion in BPP including $7.9 billion in BPP Mileway, $6.6 billion o
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 23% to $275.9 billion with inflows of $20.2 billion in the quarter and $68.2 billion over the LTM. – Inflows in the quarter included $8.8 billion for the ninth Corporate Private Equity fund, $3.1 billion in Blackstone Infrastructure Partners, and $2.7 billion in
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $80.1 billion with inflows of $2.0 billion in the quarter and $13.7 billion over the LTM. – Inflows in the quarter included $322 million for the initial close of the second Dislocation fund. – July 1 subscriptions of $140 million are not yet included in Total AUM. ▪
Slide 17: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 52% to $264.8 billion with inflows of $17.1 billion in the quarter and $134.2 billion over the LTM. – Inflows during the quarter included $4.2 billion of equity raised for BCRED, $3.1 billion for liquid credit strategies, and $2.1 billion for the asset-based
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 YTD 2Q'22 YTD Base Management Fees $ 1,140,051 $ 1,207,866 $ 1,354,068 $ 1,439,149 $ 1,496,876 $ 2,257,341 $ 2,936,025 Transaction, Advisory and Other Fees, Net 78,125 114,784 120,389 64,009 85,092 156,765 149,101 Management Fee Off
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended June 30, 2022 Twelve Months Ended June 30, 2022 Real Private Hedge Fund Credit & Real Private Hedge Fund Credit & Total Total Estate Equity Solutions Insurance Estate Equity Solutions Insurance Beginning B
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At June 30, 2022, Blackstone had $10.0 billion in total cash, cash equivalents, corporate treasury, and other investments and $19.8 billion of cash and net investments, or $16.38 per share. ▪ Blackstone has a $4.1 billion undrawn credit revolver and maintain
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 2Q'22 ($ in millions, except per share data) 2Q'21 1Q'22 2Q'22 Real Estate Per Share 2Q’22 QoQ Rollforward BREP IV $ 19 $ 6 $ 7 $ 0.01 ($ in millions) BREP V 26 1 3 0.00 Net Net BREP VI 42 38 32 0.03 Performance Realized BREP VII 300 527 164 0.14
Slide 23: Investment Records as of June 30, 2022
INVESTMENT RECORDS AS OF JUNE 30, 2022 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Real
Slide 24: Investment Records as of June 30, 2022 (Cont'd)
INVESTMENT RECORDS AS OF JUNE 30, 2022 (a) – (CONT’D) ($/€ 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) Value MO
Slide 25: Investment Records as of June 30, 2022 – Notes
INVESTMENT RECORDS AS OF JUNE 30, 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 where Bl
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $1.49 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $3.04 per common share. ▪ Blackstone declared a quarterly dividend of $1.27 per common share to record holders as of August 1, 2022; payable on August 8, 2022. % Change %
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.209 billion shares. – Repurchased 1.9 million common shares in the quarter and 8.9 million common shares over the LTM. – Available authorization remaining was $1.3 billion at June 30, 2022. 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 2Q'22 2Q'21 2Q'22 Net Income (Loss) Attributable to Blackstone Inc. $ 1,309,152 $ 1,401,895 $ 1,398,478 $ 1,216,874 $ (29,393) $ 3,057,024 $ 1,187,481 $ 4,600,613 $ 3,987,854 Net Income (Loss
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) (k) This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have be
Slide 32: Second Quarter 2022 GAAP Balance Sheet Results
BLACKSTONE’S SECOND QUARTER 2022 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 Assets Cash and Cash Equivalents $ 2,467,444 $ 5,011,433 $ 2,119,738 $ 3,868,567 $ 4,183,380 Cash Held by Blackstone Funds and Other 109,676 113,731 79,994 110,648 129,276 Investmen
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 Investments of Consolidated Blackstone Funds $ 1,871,269 $ 2,104,705 $ 2,018,829 $ 2,045,156 $ 3,764,850 Equity Method Investments Partnership Investments 4,916,675 5,303,334 5,635,212 5,858,926
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 2Q'22 2Q'21 2Q'22 Management and Advisory Fees, Net GAAP $ 1,212,549 $ 1,320,795 $ 1,459,548 $ 1,475,936 $ 1,561,187 $ 2,390,364 $ 3,037,123 $ 4,578,353 $ 5,817,466 Segment Adjustment (a) 193
Slide 35: Reconciliation of GAAP to Total Segments (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 2Q'21 2Q'22 2Q'21 2Q'22 Realized Performance Compensation GAAP Incentive Fee Compensation $ 14,431 $ 21,007 $ 49,349 $ 41,019 $ 45,363 $ 27,756 $ 86,382 $ 57,227 $ 156,738 Realized Perfor
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s Second Quarter 2022 GAAP Results ▪ Income (Loss) Before Provision (Benefit) for Taxes Margin is calculated by dividing Income (Loss) Before Provision (Benefit) for Taxes by Total Revenues. Notes to page 4 – Summary of Financials ▪ Effective 1Q’22, the BREIT perfo
Slide 37: Notes (Cont'd)
NOTES – (CONT’D) Notes to page 5 – Investment Performance and Net Accrued Performance Revenues (Cont’d) ▪ Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and
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