Slide 1: Blackstone Reports First Quarter 2023 Results
Blackstone Reports First Quarter 2023 Results New York, April 20, 2023: Blackstone (NYSE:BX) today reported its first quarter 2023 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone’s first-quarter results highlight the exceptional strength and stability of our f
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 First Quarter 2023 Earnings
Blackstone’s First Quarter 2023 Earnings APRIL 20, 2023
Slide 5: Blackstone's First Quarter 2023 GAAP Results
BLACKSTONE’S FIRST QUARTER 2023 GAAP RESULTS ▪ GAAP Net Income was $211 million for the quarter and $702 million over the last twelve months (“LTM”). GAAP Net Income Attributable to Blackstone Inc. was $86 million for the quarter and $617 million over the LTM. ($ in thousands, except per share data)
Slide 6: Blackstone's First Quarter 2023 Highlights
BLACKSTONE’S FIRST QUARTER 2023 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.0 billion ($0.86/share) in the quarter – FRE was $4.3 billion over the LTM ($3.56/share) ▪ Distributable Earnings (“DE”) of $1.2 billion ($0.97/share) in the quarter Financial Measures – DE was $5.9 billion over the LTM
Slide 7: Blackstone's First Quarter 2023 Segment Earnings
BLACKSTONE’S FIRST QUARTER 2023 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 1Q'22 1Q'23 vs. 1Q'22 1Q'22 LTM 1Q'23 LTM vs. 1Q'22 LTM Management and Advisory Fees, Net $ 1,473,368 $ 1,652,387 12% $ 5,462,405 $ 6,461,965 18% Fee Related Performance Revenues 558,065 148,24
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 $6.4 billion ($5.27/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millio
Slide 9: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $40.4 billion in the quarter, bringing LTM inflows to $216.5 billion. ▪ Deployed $10.8 billion in the quarter and $108.6 billion over the LTM. – Committed an additional $5.9 billion that was not yet deployed in the quarter. ▪ Realizations were $18.0
Slide 10: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $991.3 billion, up 8% year-over-year, with $40.4 billion of inflows in the quarter and $216.5 billion over the LTM. ▪ Fee-Earning AUM of $732.0 billion was up 8% year-over-year, with $32.0 billion of inflows in the quarter and $158.9 billion over the
Slide 11: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $498.2 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $193.9 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 1Q’23 total: $193.9 $498.2 $481.3
Slide 12: Segment Highlights
Segment Highlights Blackstone | 8
Slide 13: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 1Q’23 Total Segment Distributable Earnings were $1.4 billion. ▪ LTM Total Segment Distributable Earnings were $6.8 billion. Segment Distributable Earnings ($ in millions) 1Q’23 total: $1,429 1Q’23 LTM total: $6,788 Hedge Fund Hedge Fund Solutions Solution
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 11% to $331.8 billion with inflows of $17.0 billion in the quarter and $90.2 billion over the LTM. – Inflows during the quarter included $5.5 billion of capital raised in BREIT with $4.5 billion from University of California; $1.6 billion in the tenth global opport
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 7% to $287.0 billion with inflows of $4.6 billion in the quarter and $48.0 billion over the LTM. – Inflows in the quarter included $1.7 billion in Blackstone Infrastructure Partners and $529 million for the second Blackstone Growth fund. ▪ Capital Deployed: $3.6
Slide 16: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 9% to $291.3 billion with inflows of $16.6 billion in the quarter and $69.0 billion over the LTM. – Inflows in the quarter included $6.3 billion for the global direct lending strategy with $1.1 billion of equity raised for BCRED. – Raised $1.2 billion for th
Slide 17: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $81.2 billion with inflows of $2.2 billion in the quarter and $9.2 billion over the LTM. – April 1 subscriptions of $369 million not yet included in Total AUM. ▪ Returns: BPS Composite gross return of 0.9% in the quarter (0.7% net), outperforming the HFRX Global Hed
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Q'22 LTM 1Q'23 LTM Base Management Fees $ 1,439,149 $ 1,496,876 $ 1,528,561 $ 1,580,452 $ 1,619,547 $ 5,141,134 $ 6,225,436 Transaction, Advisory and Other Fees, Net 64,009 85,092 89,865 71,151 45,710 377,307 291,818 Management Fee Offse
Slide 20: Assets Under Management – Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended March 31, 2023 Twelve Months Ended March 31, 2023 Real Private Credit & Hedge Fund Real Private Credit & Hedge Fund Total Total Estate Equity Insurance Solutions Estate Equity Insurance Solutions Beginning
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At March 31, 2023, Blackstone had $8.1 billion in total cash, cash equivalents, corporate treasury, and other investments and $16.8 billion of cash and net investments, or $13.87 per share. ▪ Blackstone has a $4.1 billion undrawn credit revolver and maintain
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 1Q'23 ($ in millions, except per share data) 1Q'22 4Q'22 1Q'23 Real Estate Per Share 1Q’23 QoQ Rollforward BREP IV $ 6 $ 6 $ 6 $ 0.01 ($ in millions) BREP V 1 4 4 0.00 BREP VI 38 21 19 0.02 Net Net BREP VII 527 115 86 0.07 Performance Realized 4Q'
Slide 23: Investment Records as of March 31, 2023
INVESTMENT RECORDS AS OF MARCH 31, 2023 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Rea
Slide 24: Investment Records as of March 31, 2023 (cont'd)
INVESTMENT RECORDS AS OF MARCH 31, 2023 (a) – (CONT’D) ($/€ 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 M
Slide 25: Investment Records – Selected Perpetual Capital Strategies
INVESTMENT RECORDS AS OF MARCH 31, 2023 (a) – (CONT’D) Selected Perpetual Capital Strategies(k) ($ in thousands, except where noted) Investment Total Total Net Strategy (Inception Year) Strategy AUM Return (l) Real Estate BPP - Blackstone Property Partners Platform (2013) (m) Core+ Real Estate $ 70,
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.97 of Distributable Earnings per common share during the quarter, bringing the LTM amount to $4.59 per common share. ▪ Blackstone declared a quarterly dividend of $0.82 per common share to record holders as of May 1, 2023; payable on May 8, 2023. % Change % Chang
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.208 billion shares. – Repurchased 1.0 million common shares in the quarter and 4.9 million common shares over the LTM. – Available authorization remaining was $1.0 billion at March 31, 2023. 1Q'22 2Q'22 3Q'22 4Q'22 1Q'2
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD LTM ($ in thousands) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Q'22 1Q'23 Net Income (Loss) Attributable to Blackstone Inc. $ 1,216,874 $ (29,393) $ 2,296 $ 557,854 $ 85,812 $ 5,326,399 $ 616,569 Net Income (Loss) Attributable to Non-Controlling Interests in Blac
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: Blackstone's First Quarter 2023 GAAP Balance Sheet Results
BLACKSTONE’S FIRST QUARTER 2023 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Assets Cash and Cash Equivalents $ 3,868,567 $ 4,183,380 $ 3,480,003 $ 4,252,003 $ 2,830,971 Cash Held by Blackstone Funds and Other 110,648 129,276 94,358 241,712 190,322 Investment
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Investments of Consolidated Blackstone Funds $ 2,045,156 $ 3,764,850 $ 3,828,497 $ 5,136,967 $ 5,443,867 Equity Method Investments Partnership Investments 5,858,926 5,446,688 5,566,645 5,530,420
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD LTM Y ($ in thousands) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Q'22 1Q'23 Management and Advisory Fees, Net GAAP $ 1,475,936 $ 1,561,187 $ 1,617,754 $ 1,648,438 $ 1,658,315 $ 5,468,828 $ 6,485,694 Segment Adjustment (a) (2,568) (4,270) (6,184) (7,347) (5,928) (6,4
Slide 35: Reconciliation of GAAP to Total Segments – (cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD LTM Y ($ in thousands) 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 1Q'22 1Q'23 Realized Performance Compensation GAAP Incentive Fee Compensation $ 41,019 $ 45,363 $ 50,355 $ 71,261 $ 63,281 $ 125,806 $ 230,260 Realized Performance Allocations Compensation 71
Slide 36: Notes
NOTES Notes to page 3 – Blackstone’s First Quarter 2023 Segment Earnings ▪ Effective 1Q’22, the BREIT performance revenues crystallize quarterly instead of annually. If quarterly crystallization of BREIT’s fee related performance revenues had been in effect for all quarters included in the prior yea
Slide 37: Notes – (cont'd)
NOTES – (CONT’D) Notes to page 17 – Deconsolidated Balance Sheet Highlights ▪ GP/Fund Investments include Blackstone investments in Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions, which were $770 million, $967 million, $385 million, and $204 million, respectively, as of Ma
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