Blackstone Inc. · NYSE:BX
Blackstone — Q3 2021 Earnings Presentation
41 slides from Blackstone's earnings presentation, Oct 21, 2021
Slide 1: Blackstone Reports Third Quarter 2021 Results
Blackstone Reports Third Quarter 2021 Results New York, October 21, 2021: Blackstone (NYSE:BX) today reported its third quarter 2021 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Today, Blackstone reported the best results in our 36-year history. Earnings increased dra
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, the companies
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 2021 Earnings
Blackstone’s Third Quarter 2021 Earnings OCTOBER 21, 2021
Slide 5: Blackstone's Third Quarter 2021 GAAP Results
BLACKSTONE’S THIRD QUARTER 2021 GAAP RESULTS ▪ GAAP Net Income was $3.2 billion for the quarter and $9.4 billion year-to-date (“YTD”). GAAP Net Income Attributable to Blackstone Inc. was $1.4 billion for the quarter and $4.5 billion YTD. ($ in thousands, except per share data) (unaudited) 3Q'20 3Q'2
Slide 6: Blackstone's Third Quarter 2021 Highlights
BLACKSTONE’S THIRD QUARTER 2021 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $779 million ($0.65/share) in the quarter, up 28% year- over-year – FRE was $3.0 billion over the last twelve months (“LTM”) ($2.47/share), up 37% year-over-year Financial Measures ▪ Distributable Earnings (“DE”) of $1.6 bi
Slide 7: Blackstone's Third Quarter 2021 Segment Earnings
BLACKSTONE’S THIRD QUARTER 2021 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 3Q'20 3Q'21 vs. 3Q'20 3Q'20 YTD 3Q'21 YTD vs. 3Q'20 YTD Management and Advisory Fees, Net $ 1,057,840 $ 1,320,075 25% $ 2,975,140 $ 3,711,022 25% Fee Related Performance Revenues 64,950 73,313
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS ▪ LTM Fee Related Earnings of $2.47 per share, an increase of 36% year-over-year. ▪ LTM Total Segment Distributable Earnings were $6.0 billion, an increase of 97% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $2.47 3Q’21 LTM total
Slide 9: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Strong appreciation across strategies led to a 23% increase in Net Accrued Performance Revenues quarter-over- quarter to $8.3 billion ($6.90/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $46.7 billion in the quarter, bringing LTM inflows to $147.9 billion. ▪ Realizations were $21.8 billion in the quarter and $77.2 billion over the LTM. ▪ Deployed $37.1 billion in the quarter and $104.1 billion over the LTM. – Committed an additional
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $730.7 billion, up 25% year-over-year, with $46.7 billion of inflows in the quarter and $147.9 billion over the LTM. ▪ Fee-Earning AUM of $528.4 billion was up 19% year-over-year, with $37.0 billion of inflows in the quarter and $119.9 billion over th
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $392.7 billion at quarter end, up 47% year-over-year. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $127.2 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 3Q’21 tota
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 32% to $230.2 billion with inflows of $16.0 billion in the quarter and $45.5 billion over the LTM. – Inflows during the quarter included a record $7.9 billion in BREIT, $4.0 billion in the third Asian opportunistic fund and $2.2 billion across BPP funds. – October
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 22% to $231.5 billion with inflows of $7.4 billion in the quarter and $27.5 billion over the LTM. – Inflows in the quarter included $2.1 billion for the fourth Blackstone Tactical Opportunities fund and $766 million for the second Corporate Private Equity Asia f
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $80.6 billion with inflows of $3.3 billion in the quarter and $9.7 billion over the LTM. – October 1 subscriptions of $1.1 billion are not yet included in Total AUM. ▪ Returns: BPS Composite gross return of 1.3% in the quarter (1.1% net), outperforming the HFRX Glob
Slide 17: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 31% to $188.4 billion with inflows of $20.0 billion in the quarter and $65.1 billion over the LTM. – $3.5 billion of equity capital raised in the quarter for BCRED, a continuously offered non-traded BDC, bringing total equity raised to $8.4 billion life to d
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 3Q'20 YTD 3Q'21 YTD Base Management Fees $ 1,043,770 $ 1,076,094 $ 1,117,290 $ 1,140,051 $ 1,207,866 $ 2,895,960 $ 3,465,207 Transaction, Advisory and Other Fees, Net 33,628 75,290 78,640 78,125 114,784 132,585 271,549 Management Fee Offs
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended September 30, 2021 Twelve Months Ended September 30, 2021 Real Private Hedge Fund Credit & Real Private Hedge Fund Credit & Total Total Estate Equity Solutions Insurance Estate Equity Solutions Insurance B
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At September 30, 2021, Blackstone had $8.2 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.4 billion of cash and net investments, or $15.26 per share. ▪ Blackstone has a $2.3 billion undrawn credit revolver and main
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 3Q'21 ($ in millions, except per share data) 3Q'20 2Q'21 3Q'21 Real Estate Per Share 3Q’21 QoQ Rollforward BREP IV $ 8 $ 19 $ 22 $ 0.02 ($ in millions) BREP V 7 26 44 0.04 Net Net BREP VI 46 42 34 0.03 Performance Realized BREP VII 238 300 476 0.4
Slide 23: Investment Records as of September 30, 2021
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c)
Slide 24: Investment Records as of September 30, 2021 (Cont'd)
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021 (a) – (CONT’D) ($/€ 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 as of September 30, 2021 – Notes
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021 – 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 whe
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $1.28 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount to $3.06 per common share. ▪ Blackstone declared a quarterly dividend of $1.09 per common share to record holders as of November 1, 2021; payable on November 8, 202
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.205 billion shares. – Repurchased 2.9 million common shares in the quarter and 6.0 million common shares over the LTM. – Available authorization remaining was $403 million at September 30, 2021. 3Q'20 4Q'20 1Q'21 2Q'21
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 Net Income Attributable to Blackstone Inc. $ 794,719 $ 748,870 $ 1,747,872 $ 1,309,152 $ 1,401,895 $ 296,493 $ 4,458,919 $ 779,642 $ 5,207,789 Net Income Attributable to Non
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. Rela
Slide 32: Blackstone's Third Quarter 2021 GAAP Balance Sheet Results
BLACKSTONE’S THIRD QUARTER 2021 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 Assets Cash and Cash Equivalents $ 2,628,895 $ 1,999,484 $ 2,862,422 $ 2,467,444 $ 5,011,433 Cash Held by Blackstone Funds and Other 85,218 64,972 109,285 109,676 113,731 Investments
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 Investments of Consolidated Blackstone Funds $ 1,500,398 $ 1,455,008 $ 1,459,804 $ 1,871,269 $ 2,104,705 Equity Method Investments Partnership Investments 4,144,249 4,353,234 4,676,341 4,916,675
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 Management and Advisory Fees, Net GAAP $1,053,851 $1,134,138 $1,177,815 $1,212,549 $1,320,795 $2,958,411 $3,711,159 $3,902,311 $4,845,297 Segment Adjustment (a) 3,989 1,887 3
Slide 35: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 3Q'20 3Q'21 3Q'20 3Q'21 Realized Performance Compensation GAAP Incentive Fee Compensation $ 7,385 $ 22,086 $ 13,325 $ 14,431 $ 21,007 $ 22,339 $ 48,763 $ 46,928 $ 70,849 Realized Performa
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s Third Quarter 2021 GAAP Results ▪ Effective February 26, 2021, Blackstone effectuated changes to rename its Class A common stock as “common stock,” and to reclassify its Class B and Class C common stock into a new “Series I preferred stock” and “Series II preferr
Slide 37: Notes – (Cont'd)
NOTES – (CONT’D) Notes to page 16 – Assets Under Management - Rollforward ▪ In 4Q’20, the methodology for Total AUM was updated with respect to the relevant segment for certain real estate, secondaries and credit funds to include permanent fund level leverage (as this represents additional capital t
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