Slide 1: Blackstone Reports Second Quarter 2023 Results
Blackstone Reports Second Quarter 2023 Results New York, July 20, 2023: Blackstone (NYSE:BX) today reported its second quarter 2023 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone is the first alternative manager to surpass $1 trillion of assets under manageme
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 Second Quarter 2023 Earnings
Blackstone’s Second Quarter 2023 Earnings JULY 20, 2023
Slide 5: Second Quarter 2023 GAAP Results
BLACKSTONE’S SECOND QUARTER 2023 GAAP RESULTS ▪ GAAP Net Income was $1.2 billion for the quarter and $1.4 billion year-to-date (“YTD”). GAAP Net Income Attributable to Blackstone Inc. was $601 million for the quarter and $687 million YTD. ($ in thousands, except per share data) (unaudited) 2Q'22 2Q'
Slide 6: Second Quarter 2023 Highlights
BLACKSTONE’S SECOND QUARTER 2023 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.1 billion ($0.94/share) in the quarter – FRE was $4.4 billion over the last twelve months (“LTM”) ($3.66/share) ▪ Distributable Earnings (“DE”) of $1.2 billion ($0.93/share) in the quarter Financial Measures – DE was $5
Slide 7: Second Quarter 2023 Segment Earnings
BLACKSTONE’S SECOND QUARTER 2023 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 2Q'22 2Q'23 vs. 2Q'22 2Q'22 YTD 2Q'23 YTD vs. 2Q'22 YTD Management and Advisory Fees, Net $ 1,556,917 $ 1,703,186 9% $ 3,030,285 $ 3,355,573 11% Fee Related Performance Revenues 346,593 266,73
Slide 8: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Appreciation across strategies led to higher Net Accrued Performance Revenues quarter-over-quarter of $6.5 billion ($5.31/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millions) 2Q'23
Slide 9: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $30.1 billion in the quarter, bringing LTM inflows to $158.4 billion. ▪ Deployed $19.5 billion in the quarter and $80.3 billion over the LTM. – Committed an additional $6.8 billion that was not yet deployed in the quarter. ▪ Realizations were $17.2
Slide 10: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $1.0 trillion, up 6% year-over-year, with $30.1 billion of inflows in the quarter and $158.4 billion over the LTM. ▪ Fee-Earning AUM of $731.1 billion was up 7% year-over-year, with $18.0 billion of inflows in the quarter and $132.4 billion over the L
Slide 11: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $503.8 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $194.5 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 2Q’23 total: $194.5 $503.8 $487.4
Slide 12: Segment Highlights
Segment Highlights Blackstone | 8
Slide 13: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 2Q’23 Total Segment Distributable Earnings were $1.3 billion. ▪ LTM Total Segment Distributable Earnings were $5.8 billion. Segment Distributable Earnings ($ in millions) 2Q’23 total: $1,346 2Q’23 LTM total: $5,790 Hedge Fund Hedge Fund Solutions Solution
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 4% to $333.2 billion with inflows of $7.9 billion in the quarter and $49.2 billion over the LTM. – Inflows in the quarter included $1.3 billion for the seventh European opportunistic fund, $791 million of capital raised in BREIT, $2.2 billion in BREDS insurance SMA
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 7% to $295.3 billion with inflows of $8.5 billion in the quarter and $36.3 billion over the LTM. – Inflows in the quarter included $1.1 billion for the ninth flagship private equity fund, $1.6 billion for Tactical Opportunities vehicles, and $713 million in Blac
Slide 16: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 11% to $294.6 billion with inflows of $12.3 billion in the quarter and $64.2 billion over the LTM. – Inflows in the quarter included $5.7 billion for the global direct lending strategy with $1.8 billion of equity raised for BCRED. – July 1 subscriptions of $
Slide 17: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $78.2 billion with inflows of $1.4 billion in the quarter and $8.6 billion over the LTM. – July 1 subscriptions of $623 million not yet included in Total AUM. ▪ Realizations: $2.0 billion in the quarter and $3.5 billion over the LTM, including realizations in the GP
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 2Q'22 YTD 2Q'23 YTD Base Management Fees $ 1,496,876 $ 1,528,561 $ 1,580,452 $ 1,619,547 $ 1,620,609 $ 2,936,025 $ 3,240,156 Transaction, Advisory and Other Fees, Net 85,092 89,865 71,151 45,710 92,735 149,101 138,445 Management Fee Offse
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended June 30, 2023 Twelve Months Ended June 30, 2023 Real Private Credit & Hedge Fund Real Private Credit & Hedge Fund Total Total Estate Equity Insurance Solutions Estate Equity Insurance Solutions Beginning B
Slide 21: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At June 30, 2023, Blackstone had $8.3 billion in total cash, cash equivalents, corporate treasury, and other investments and $17.1 billion of cash and net investments, or $14.02 per share. ▪ Blackstone has a $4.1 billion undrawn credit revolver and maintains
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 2Q'23 ($ in millions, except per share data) 2Q'22 1Q'23 2Q'23 Real Estate Per Share 2Q’23 QoQ Rollforward BREP IV $ 7 $ 6 $ 6 $ 0.01 ($ in millions) BREP V 3 4 4 0.00 Net Net BREP VI 32 19 17 0.01 Performance Realized BREP VII 164 86 60 0.05 1Q'2
Slide 23: Investment Records as of June 30, 2023
INVESTMENT RECORDS AS OF JUNE 30, 2023 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Real
Slide 24: Investment Records as of June 30, 2023 (Cont'd)
INVESTMENT RECORDS AS OF JUNE 30, 2023 (a) – (CONT’D) ($/€ 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 MO
Slide 25: Investment Records – Selected Perpetual Capital Strategies
INVESTMENT RECORDS AS OF JUNE 30, 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 $ 71,0
Slide 26: Investment Records Notes
INVESTMENT RECORDS AS OF JUNE 30, 2023 (a) – (CONT’D) (l) Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, 2023 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Re
Slide 27: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.93 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $1.90 per common share. ▪ Blackstone declared a quarterly dividend of $0.79 per common share to record holders as of July 31, 2023; payable on August 7, 2023. % Change %
Slide 28: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.219 billion shares. – Repurchased 1.0 million common shares in the quarter and 4.0 million common shares over the LTM. – Available authorization remaining was $932 million at June 30, 2023. 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23
Slide 29: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 25
Slide 30: GAAP Condensed Consolidated Statements of Operations
BLACKSTONE’S SECOND QUARTER 2023 GAAP CONDENSED CONSOLIDATED STA TEMENTS OF OPERATIONS ($ in thousands, except per share data) (unaudited) 2Q'22 2Q'23 2Q'22 YTD 2Q'23 YTD 2Q'22 LTM 2Q'23 LTM Revenues Management and Advisory Fees, Net $ 1,561,187 $ 1,709,370 $ 3,037,123 $ 3,367,685 $ 5,817,466 $ 6,63
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 2Q'22 2Q'23 2Q'22 2Q'23 Net Income (Loss) Attributable to Blackstone Inc. $ (29,393) $ 2,296 $ 557,854 $ 85,812 $ 601,274 $ 1,187,481 $ 687,086 $ 3,987,854 $ 1,247,236 Net Income (Loss) Attributabl
Slide 32: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 36-38, 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 33: 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 34: GAAP Condensed Consolidated Statements of Financial Condition
BLACKSTONE’S SECOND QUARTER 2023 GAAP CONDENSED CONSOLIDATED STA TEMENTS OF FINANCIAL CONDITION ($ in thousands) (unaudited) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Assets Cash and Cash Equivalents $ 4,183,380 $ 3,480,003 $ 4,252,003 $ 2,830,971 $ 3,280,204 Cash Held by Blackstone Funds and Other 129,276 94,3
Slide 35: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Investments of Consolidated Blackstone Funds $ 3,764,850 $ 3,828,497 $ 5,136,967 $ 5,443,867 $ 5,490,773 Equity Method Investments Partnership Investments 5,446,688 5,566,645 5,530,420 5,598,552
Slide 36: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 2Q'22 2Q'23 2Q'22 2Q'23 Management and Advisory Fees, Net GAAP $ 1,561,187 $ 1,617,754 $ 1,648,438 $ 1,658,315 $ 1,709,370 $ 3,037,123 $ 3,367,685 $ 5,817,466 $ 6,633,877 Segment Adjustment (a) (4,2
Slide 37: Reconciliation of GAAP to Total Segments (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 2Q'22 2Q'23 2Q'22 2Q'23 Realized Performance Compensation GAAP Incentive Fee Compensation $ 45,363 $ 50,355 $ 71,261 $ 63,281 $ 64,227 $ 86,382 $ 127,508 $ 156,738 $ 249,124 Realized Perf
Slide 38: Notes
NOTES Notes to page 4 - Investment Performance and Net Accrued Performance Revenues ▪ The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable Blackstone Funds and not those of Blackstone. ▪ Core+ appreciation represen
Slide 39: Notes (Cont'd)
NOTES – (CONT’D) Notes to page 23 – Shareholder Dividends ▪ DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Common shareholders receive tax benefits from deduction
Slide 40: 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 41: 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 42: 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 43: 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