Slide 1: Blackstone Reports Second Quarter 2021 Results
Blackstone Reports Second Quarter 2021 Results New York, July 22, 2021: Blackstone (NYSE:BX) today reported its second quarter 2021 results. Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone again reported outstanding results in the second quarter, including our best-eve
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 2021 Earnings
Blackstone’s Second Quarter 2021 Earnings JULY 22, 2021
Slide 5: Blackstone's Second Quarter 2021 GAAP Results
BLACKSTONE’S SECOND QUARTER 2021 GAAP RESULTS ▪ GAAP Net Income was $2.9 billion for the quarter and $6.2 billion year-to-date (“YTD”). GAAP Net Income Attributable to The Blackstone Group Inc. was $1.3 billion for the quarter and $3.1 billion YTD. ($ in thousands, except per share data) (unaudited)
Slide 6: Blackstone's Second Quarter 2021 Highlights
BLACKSTONE’S SECOND QUARTER 2021 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $704 million ($0.58/share) in the quarter, up 30% year- over-year – FRE was $2.8 billion over the last twelve months (“LTM”) ($2.33/share), up 40% year-over-year Financial Measures ▪ Distributable Earnings (“DE”) of $1.1 b
Slide 7: Blackstone's Second Quarter 2021 Segment Earnings
BLACKSTONE’S SECOND QUARTER 2021 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 2Q'20 2Q'21 vs. 2Q'20 2Q'20 YTD 2Q'21 YTD vs. 2Q'20 YTD Management and Advisory Fees, Net $ 976,733 $ 1,212,742 24% $ 1,917,300 $ 2,390,947 25% Fee Related Performance Revenues 15,033 48,889 2
Slide 8: Summary of Financials
SUMMARY OF FINANCIALS ▪ LTM Fee Related Earnings of $2.33 per share, an increase of 40% year-over-year. ▪ LTM Total Segment Distributable Earnings were $5.0 billion, an increase of 69% year-over-year. Fee Related Earnings per Share Segment Distributable Earnings ($ in millions) $2.33 2Q’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 30% increase in Net Accrued Performance Revenues quarter-over- quarter to $6.8 billion ($5.60/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($
Slide 10: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $37.3 billion in the quarter, bringing LTM inflows to $116.3 billion. ▪ Realizations were $19.6 billion in the quarter and $63.4 billion over the LTM. ▪ Deployed $23.8 billion in the quarter and $75.6 billion over the LTM. – Committed an additional
Slide 11: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $684.0 billion, up 21% year-over-year, with $37.3 billion of inflows in the quarter and $116.3 billion over the LTM. ▪ Fee-Earning AUM of $498.9 billion was up 14% year-over-year, with $28.7 billion of inflows in the quarter and $94.7 billion over the
Slide 12: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $351.1 billion at quarter end, up 41% year-over-year. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $129.9 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) 2Q’21 tota
Slide 13: Segment Highlights
Segment Highlights Blackstone | 9
Slide 14: Real Estate
REAL ESTATE ▪ Total AUM: Increased 24% to $207.5 billion with inflows of $8.9 billion in the quarter and $33.3 billion over the LTM. – Inflows during the quarter driven by Core+, including a record $5.8 billion in BREIT and $1.7 billion across BPP. – Strong momentum for BREIT with July 1 subscriptio
Slide 15: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 21% to $223.6 billion with inflows of $7.3 billion in the quarter and $24.1 billion over the LTM. – Inflows in the quarter included $2.1 billion for subsequent closes of the second Corporate Private Equity Asia fund and $769 million for the first close of the Se
Slide 16: Hedge Fund Solutions
HEDGE FUND SOLUTIONS ▪ Total AUM: $79.1 billion with inflows of $2.2 billion in the quarter and $8.1 billion over the LTM. – July 1 subscriptions of $655 million are not yet included in Total AUM. – Subsequent to quarter end, held the first close for Horizon of $1.9 billion. ▪ Returns: BPS Composite
Slide 17: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 26% to $173.7 billion with inflows of $18.9 billion in the quarter and $50.7 billion over the LTM. – $2.8 billion of equity capital raised in the quarter for BCRED, a continuously offered non-traded BDC, bringing Total Global Direct Lending AUM to $36.3 bill
Slide 18: Supplemental Details
Supplemental Details Blackstone | 14
Slide 19: Total Segments
TOTAL SEGMENTS ($ in thousands) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 2Q'20 YTD 2Q'21 YTD Base Management Fees $ 941,794 $ 1,043,770 $ 1,076,094 $ 1,117,290 $ 1,140,051 $ 1,852,190 $ 2,257,341 Transaction, Advisory and Other Fees, Net 48,292 33,628 75,290 78,640 78,125 98,957 156,765 Management Fee Offsets
Slide 20: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended June 30, 2021 Twelve Months Ended June 30, 2021 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, 2021, Blackstone had $5.1 billion in total cash, cash equivalents, and corporate treasury investments and $14.5 billion of cash and net investments, or $12.00 per share. ▪ Blackstone has a $2.3 billion undrawn credit revolver and maintains A+/A+
Slide 22: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 2Q'21 ($ in millions, except per share data) 2Q'20 1Q'21 2Q'21 Per Share 2Q’21 QoQ Rollforward Real Estate BREP IV $ 7 $ 18 $ 19 $ 0.02 ($ in millions) BREP V 1 18 26 0.02 Net Net BREP VI 45 39 42 0.03 Performance Realized BREP VII 238 253 300 0.2
Slide 23: Investment Records as of June 30, 2021
INVESTMENT RECORDS AS OF JUNE 30, 2021 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Real
Slide 24: Investment Records as of June 30, 2021 (Cont'd)
INVESTMENT RECORDS AS OF JUNE 30, 2021 (a) – (CONT’D) ($/€ 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) Value MO
Slide 25: Investment Records as of June 30, 2021 – Notes
INVESTMENT RECORDS AS OF JUNE 30, 2021 – 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 $0.82 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount to $1.78 per common share. ▪ Blackstone declared a quarterly dividend of $0.70 per common share to record holders as of August 2, 2021; payable on August 9, 2021. %
Slide 27: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1.208 billion shares. – Repurchased 3.2 million common shares in the quarter and 5.2 million common shares over the LTM. – Available authorization remaining was $758 million at June 30, 2021. 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21
Slide 28: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 24
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD YTD LTM ($ in thousands) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 2Q'20 2Q'21 2Q'20 2Q'21 Net Income (Loss) Attributable to The Blackstone $ 568,266 $ 794,719 $ 748,870 $ 1,747,872 $ 1,309,152 $ (498,226) $ 3,057,024 $ 764,360 $ 4,600,613 Group Inc. Net Income (L
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 Second Quarter 2021 GAAP Balance Sheet Results
BLACKSTONE’S SECOND QUARTER 2021 GAAP BALANCE SHEET RESULTS ($ in thousands) (unaudited) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Assets Cash and Cash Equivalents $ 1,976,512 $ 2,628,895 $ 1,999,484 $ 2,862,422 $ 2,467,444 Cash Held by Blackstone Funds and Other 343,201 85,218 64,972 109,285 109,676 Investment
Slide 33: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Investments of Consolidated Blackstone Funds $ 7,943,531 $ 1,500,398 $ 1,455,008 $ 1,459,804 $ 1,871,269 Equity Method Investments Partnership Investments 3,873,346 4,144,249 4,353,234 4,676,341
Slide 34: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD YTD LTM Y ($ in thousands) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 2Q'20 2Q'21 2Q'20 2Q'21 Management and Advisory Fees, Net GAAP $ 969,728 $1,053,851 $1,134,138 $1,177,815 $1,212,549 $1,904,560 $2,390,364 $3,726,611 $4,578,353 Segment Adjustment (a) 7,005 3,989 1,
Slide 35: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD YTD LTM Y ($ in thousands) 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 2Q'20 2Q'21 2Q'20 2Q'21 Realized Performance Compensation GAAP Incentive Fee Compensation $ 8,432 $ 7,385 $ 22,086 $ 13,325 $ 14,431 $ 14,954 $ 27,756 $ 44,962 $ 57,227 Realized Performan
Slide 36: Notes
NOTES Notes to page 1 - Blackstone’s Second 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 prefer
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 The Blackstone Group Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s boar
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