Slide 1: Blackstone Reports Second Quarter 2020 Results
Blackstone Reports Second Quarter 2020 Results New York, July 23, 2020: Blackstone (NYSE:BX) today reported its second quarter 2020 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “It was a strong quarter for our firm despite the continued market volatility. Investment pe
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 one of the world’s leading investment firms. We seek to create positive economic impact and long- term value for our investors, the companies we
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 2020 Earnings
Blackstone’s Second Quarter 2020 Earnings JULY 23, 2020
Slide 5: Blackstone's Second Quarter 2020 GAAP Results
BLACKSTONE’S SECOND QUARTER 2020 GAAP RESULTS ▪ GAAP Net Income (Loss) was $1.4 billion for the quarter and $(1.3) billion year-to-date (“YTD”). GAAP Net Income (Loss) Attributable to The Blackstone Group Inc. was $568 million for the quarter and $(498) million year-to-date. ($ in thousands, except
Slide 6: Blackstone's Second Quarter 2020 Highlights
BLACKSTONE’S SECOND QUARTER 2020 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $541 million ($0.45/share) in the quarter, up 28% year- over-year – FRE was $2.0 billion for the last twelve months (“LTM”) ($1.67/share), up 27% year- over-year Financial Measures ▪ Distributable Earnings (“DE”) of $548 m
Slide 7: Blackstone's Second Quarter 2020 Segment Earnings
BLACKSTONE’S SECOND QUARTER 2020 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 2Q'19 2Q'20 vs. 2Q'19 2Q'19 YTD 2Q'20 YTD vs. 2Q'19 YTD Management and Advisory Fees, Net $ 844,156 $ 976,733 16% $ 1,658,218 $ 1,917,300 16% Fee Related Performance Revenues 13,624 15,033 10%
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS ▪ LTM Fee Related Earnings of $1.67 per share, an increase of 27% year-over-year. ▪ LTM Total Segment Distributable Earnings were $3.0 billion, an increase of 3% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $1.67 2Q’20 LTM total:
Slide 9: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Unrealized appreciation across strategies led to a 24% increase in Net Accrued Performance Revenues to $2.7 billion ($2.25/share) quarter-over-quarter. Investment Performance Net Accrued Performance Revenues (appreciation / gross returns)
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $20.3 billion in the quarter, bringing LTM inflows to $93.9 billion. ▪ Realizations were $7.4 billion in the quarter and $35.1 billion for the LTM. ▪ Deployed $12.8 billion in the quarter and $61.1 billion for the LTM. – Committed an additional $2.8
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $564.3 billion, up 3% year-over-year, with $20.3 billion of inflows in the quarter and $93.9 billion for the LTM. ▪ Fee-Earning AUM of $435.8 billion was up 12% year-over-year, with $15.6 billion of inflows in the quarter and $111.7 billion for the LT
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $248.9 billion at quarter end, up 10% year-over-year. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $155.9 billion, driven by fundraising activity for the latest flagship funds. Invested Performance Eligible A
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 9% to $166.7 billion with inflows of $4.9 billion in the quarter and $32.3 billion for the LTM. – Raised $2.1 billion in BREDS IV and $945 million in BREIT. – Fee-Earning AUM increased 20% to $134.3 billion with inflows of $3.6 billion in the quarter and $37.6 bill
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 8% to $184.1 billion with inflows of $5.2 billion in the quarter and $25.6 billion for the LTM. – Inflows in the quarter included a $2.8 billion close of the third infrastructure Secondaries’ fund, bringing total commitments to $3.75 billion including a close su
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $75.7 billion with inflows of $3.3 billion in the quarter and $12.4 billion for the LTM. – Total AUM growth in the quarter principally driven by record market appreciation of $3.8 billion across products, offsetting net flows of $(1.3) billion. – July 1 subscription
Slide 17: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: $137.8 billion with inflows of $6.9 billion in the quarter and $23.5 billion for the LTM. – U.S. Direct Lending strategy had inflows of $1.6 billion in the quarter and priced a $400 million senior unsecured notes offering for the BDC subsequent to quarter end, bringin
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'19 YTD 2Q'20 YTD Base Management Fees $ 805,315 $ 809,729 $ 873,368 $ 910,396 $ 941,794 $ 1,562,833 $ 1,852,190 Transaction, Advisory and Other Fees, Net 61,495 92,702 95,073 50,665 48,292 126,645 98,957 Management Fee Offsets (22,654)
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended June 30, 2020 Twelve Months Ended June 30, 2020 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, 2020, Blackstone had $4.5 billion in total cash, cash equivalents, and corporate treasury investments and $9.0 billion of cash and net investments, or $7.51 per share. ▪ Blackstone has a $1.6 billion undrawn credit revolver and maintains A+/A+ ra
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 2Q'20 ($ in millions, except per share data) 2Q'19 1Q'20 2Q'20 Per Share 2Q’20 QoQ Rollforward Real Estate BREP IV $ 11 $ 8 $ 7 $ 0.01 ($ in millions) BREP V 54 - 1 0.00 Net Net BREP VI 88 51 45 0.04 Performance Realized BREP VII 536 309 238 0.20
Slide 23: Investment Records as of June 30, 2020
INVESTMENT RECORDS AS OF JUNE 30, 2020 (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) Realiz
Slide 24: Investment Records as of June 30, 2020 (Cont'd)
INVESTMENT RECORDS AS OF JUNE 30, 2020 (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 MOIC
Slide 25: Investment Records as of June 30, 2020 – Notes
INVESTMENT RECORDS AS OF JUNE 30, 2020 – NOTES The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group Inc. n/m Not meaningful generally due to the limited time since initial investment. n/a Not applicable. (a) Excludes investment vehicle
Slide 26: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.43 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount to $0.89 per common share. ▪ Blackstone declared a quarterly dividend of $0.37 per common share to record holders as of August 3, 2020; payable on August 10, 2020.
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1,203 million shares. – Repurchased 2.0 million common shares in the quarter and 11.2 million common shares for the LTM. – Available authorization remaining was $413 million at June 30, 2020. 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'19 2Q'20 2Q'19 2Q'20 Net Income (Loss) Attributable to $ 305,792 $ 779,437 $ 483,149 $(1,066,492) $ 568,266 $ 787,096 $ (498,226) $ 1,218,970 $ 764,360 The Blackstone Group Inc. Net Income (Loss
Slide 30: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 34-35, 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
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (i) 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. Related Payab
Slide 32: Blackstone's Second Quarter 2020 GAAP Balance Sheet Results
BLACKSTONE’S SECOND QUARTER 2020 GAAP BALANCE SHEET RESULTS ($ in thousands) (Unaudited) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 Assets Cash and Cash Equivalents $ 1,484,444 $ 2,468,563 $ 2,172,441 $ 2,068,326 $ 1,976,512 Cash Held by Blackstone Funds and Other 324,609 375,981 351,210 318,003 343,201 Investme
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 Investments of Consolidated Blackstone Funds $ 8,633,794 $ 8,481,233 $ 8,380,698 $ 7,275,752 $ 7,943,531 Equity Method Investments Partnership Investments 3,802,565 3,864,453 4,035,675 3,553,538
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM YT ($ in thousands) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'19 2Q'20 2Q'19 2Q'20 Management and Advisory Fees, Net GAAP $ 840,378 $ 878,151 $ 943,900 $ 934,832 $ 969,728 $ 1,650,104 $ 1,904,560 $ 3,227,667 $ 3,726,611 Segment Adjustment (a) 3,778 2,194 1
Slide 35: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM YT ($ in thousands) 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'19 2Q'20 2Q'19 2Q'20 Realized Performance Compensation GAAP Incentive Fee Compensation $ 8,886 $ 5,419 $ 24,589 $ 6,522 $ 8,432 $ 14,292 $ 14,954 $ 31,803 $ 44,962 Realized Performanc
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s Second Quarter 2020 GAAP Results ▪ Effective July 1, 2019, The Blackstone Group L.P. converted from a Delaware limited partnership to a Delaware corporation, The Blackstone Group Inc. (the “Conversion”). This presentation includes results for The Blackstone Group
Slide 37: Notes – (Cont'd)
NOTES – (CONT’D) Notes to page 5 - Investment Performance and Net Accrued Performance Revenues (Cont’d) ▪ Effective 1Q’20, Credit returns are presented as a composite return instead of separate returns for performing credit and distressed. The Credit Composite now also includes the long only strateg
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) – Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business,
Slide 40: 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 our current views with respect to, among other things, our operations, taxes, earni