Slide 1: Blackstone's Third Quarter 2024 Earnings
Blackstone’s Third Quarter 2024 Earnings OCTOBER 17, 2024
Slide 2: Third Quarter 2024 GAAP Results
BLACKSTONE’S THIRD QUARTER 2024 GAAP RESULTS ▪ GAAP Net Income was $1.6 billion for the quarter and $4.1 billion year-to-date (“YTD”). GAAP Net Income Attributable to Blackstone Inc. was $781 million for the quarter and $2.1 billion YTD. ($ in thousands, except per share data) (unaudited) 3Q'23 3Q'2
Slide 3: Third Quarter 2024 Highlights
BLACKSTONE’S THIRD QUARTER 2024 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.2 billion ($0.96/share) in the quarter – FRE was $4.5 billion over the last twelve months (“LTM”) ($3.68/share) ▪ Distributable Earnings (“DE”) of $1.3 billion ($1.01/share) in the quarter Financial Measures – DE was $5.
Slide 4: Third Quarter 2024 Segment Earnings
BLACKSTONE’S THIRD QUARTER 2024 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 3Q'23 3Q'24 vs. 3Q'23 3Q'23 YTD 3Q'24 YTD vs. 3Q'23 YTD Management and Advisory Fees, Net $ 1,653,840 $ 1,786,734 8% $ 5,009,413 $ 5,274,243 5% Fee Related Performance Revenues 274,551 264,101
Slide 5: 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 $7.0 billion ($5.72/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millions) 3Q'24
Slide 6: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $40.5 billion in the quarter, bringing LTM inflows to $166.7 billion. ▪ Deployed $34.0 billion in the quarter and $123.4 billion over the LTM. – Committed an additional $20.1 billion that was not yet deployed in the quarter. ▪ Realizations were $22.
Slide 7: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $1,107.6 billion, up 10% year-over-year, with $40.5 billion of inflows in the quarter and $166.7 billion over the LTM. ▪ Fee-Earning AUM of $820.5 billion was up 12% year-over-year, with $34.1 billion of inflows in the quarter and $160.9 billion over
Slide 8: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $553.0 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $171.6 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 3Q'24 total: $171.6 $553.0 Multi-
Slide 9: Segment Highlights
Segment Highlights Blackstone | 8
Slide 10: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 3Q'24 Total Segment Distributable Earnings were $1.4 billion. ▪ LTM Total Segment Distributable Earnings were $5.7 billion. Segment Distributable Earnings ($ in millions) 3Q'24 total: $1,401 3Q'24 LTM total: $5,740 Multi-Asset Multi-Asset Investing Invest
Slide 11: Real Estate
REAL ESTATE ▪ Total AUM: $325.1 billion with inflows of $5.8 billion in the quarter and $39.8 billion over the LTM. – Inflows in the quarter included $956 million in BREDS Insurance SMAs and $743 million of capital raised in BREIT. – Outflows in the quarter included the transfer of $12.5 billion of
Slide 12: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 12% to $344.7 billion with inflows of $10.2 billion in the quarter and $36.9 billion over the LTM. – Inflows in the quarter included $2.8 billion in Infrastructure, including the launch of BIP Europe, $1.5 billion in Secondaries, $1.2 billion in Tactical Opportu
Slide 13: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 22% to $354.7 billion with inflows of $21.4 billion in the quarter and $80.2 billion over the LTM. – Inflows in the quarter included $8.9 billion for the global direct lending strategy, inclusive of $3.0 billion of equity raised for BCRED, and $4.3 billion f
Slide 14: Multi-Asset Investing
MULTI-ASSET INVESTING ▪ Total AUM: Increased 9% to $83.1 billion with inflows of $3.1 billion in the quarter and $9.9 billion over the LTM. ▪ Returns: Absolute Return Composite gross return of 2.2% in the quarter (2.0% net), compared to the HFRX Global Hedge Fund Index, which was 2.1%. – Absolute Re
Slide 15: Supplemental Details
Supplemental Details Blackstone | 14
Slide 16: Total Segments
TOTAL SEGMENTS ($ in thousands) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 YTD 3Q'24 YTD Base Management Fees $ 1,619,743 $ 1,605,948 $ 1,644,730 $ 1,651,566 $ 1,710,941 $ 4,859,899 $ 5,007,237 Transaction, Advisory and Other Fees, Net 44,611 52,836 66,938 132,536 82,506 183,056 281,980 Management Fee Offs
Slide 17: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended September 30, 2024 Twelve Months Ended September 30, 2024 Real Private Credit & Multi-Asset Real Private Credit & Multi-Asset Total Total Estate Equity Insurance Investing Estate Equity Insurance Investing
Slide 18: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At September 30, 2024, Blackstone had $8.9 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.7 billion of cash and net investments, or $15.33 per share. ▪ Blackstone has a $4.3 billion credit revolver and maintains A+
Slide 19: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL ($ in millions, except per share data) 3Q'24 3Q'24 QoQ Rollforward 3Q'23 2Q'24 3Q'24 Per Share ($ in millions) Real Estate Net Net Performance Realized BREP Global $ 1,625 $ 1,294 $ 1,313 $ 1.08 2Q'24 Revenues Distributions 3Q'24 BREP Europe 132 1
Slide 20: Investment Records as of September 30, 2024
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c)
Slide 21: Investment Records as of September 30, 2024 (Cont'd)
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024 (a) – (CONT’D) ($/€ 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 22: Investment Records – Selected Perpetual Capital Strategies
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024 (a) – (CONT’D) Selected Perpetual Capital Strategies(l) ($ in thousands, except where noted) Investment Total Total Net Strategy (Inception Year) Strategy AUM Return (m) Real Estate BPP - Blackstone Property Partners Platform (2013) (n) Core+ Real Estate $
Slide 23: Investment Records – Notes
INVESTMENT RECORDS AS OF SEPTEMBER 30, 2024 (a) – (CONT’D) (m) Unless otherwise indicated, Total Net Return represents the annualized inception to September 30, 2024 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Perf
Slide 24: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $1.01 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $2.95 per common share. ▪ Blackstone declared a quarterly dividend of $0.86 per common share to record holders as of October 28, 2024; payable on November 4, 2024. % Chan
Slide 25: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1,222 million shares. – Repurchased 1.0 million common shares in the quarter and 4.1 million common shares over the LTM. – Available authorization remaining was $1.9 billion at September 30, 2024. 3Q'23 4Q'23 1Q'24 2Q'24
Slide 26: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 25
Slide 27: GAAP Condensed Consolidated Statements of Operations
BLACKSTONE’S THIRD QUARTER 2024 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF OPERATIONS ($ in thousands, except per share data) (unaudited) 3Q'23 3Q'24 3Q'23 YTD 3Q'24 YTD 3Q'23 LTM 3Q'24 LTM Revenues Management and Advisory Fees, Net $ 1,655,443 $ 1,794,894 $ 5,023,128 $ 5,309,355 $ 6,671,566 $ 6,957
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 3Q'24 3Q'23 3Q'24 Net Income Attributable to Blackstone Inc. $ 551,994 $ 151,800 $ 847,386 $ 444,414 $ 780,835 $ 1,239,080 $ 2,072,635 $ 1,796,934 $ 2,224,435 Net Income Attributable to Non-C
Slide 29: 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 and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related and Non-Recurring Items arise from corpo
Slide 30: 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 31: GAAP Condensed Consolidated Statements of Financial Condition
BLACKSTONE’S THIRD QUARTER 2024 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF FINANCIAL CONDITION ($ in thousands) (unaudited) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Assets Cash and Cash Equivalents $ 2,971,614 $ 2,955,866 $ 2,504,471 $ 2,381,436 $ 2,353,332 Cash Held by Blackstone Funds and Other 138,181 316,1
Slide 32: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 Investments of Consolidated Blackstone Funds $ 5,224,104 $ 4,319,483 $ 3,458,911 $ 3,621,676 $ 3,873,027 Equity Method Investments Partnership Investments 5,588,222 5,924,275 6,100,640 6,107,429
Slide 33: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 3Q'24 3Q'23 3Q'24 Management and Advisory Fees, Net GAAP $ 1,655,443 $ 1,648,132 $ 1,727,148 $ 1,787,313 $ 1,794,894 $ 5,023,128 $ 5,309,355 $ 6,671,566 $ 6,957,487 Segment Adjustment (a) (1,6
Slide 34: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 3Q'23 4Q'23 1Q'24 2Q'24 3Q'24 3Q'23 3Q'24 3Q'23 3Q'24 Realized Performance Compensation GAAP Incentive Fee Compensation $ 65,432 $ 88,127 $ 73,707 $ 77,139 $ 73,464 $ 192,940 $ 224,310 $ 264,201 $ 312,437 Realized Per
Slide 35: 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 36: 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 Multi-Asset Investing, which were $623 million, $1.2 billion, $829 million, and $123 million, respectively, as of S
Slide 37: 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 38: 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 39: 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 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, 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