QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Class A |
|
|
☒ |
Accelerated filer ☐ | |||||
Non-accelerated filer ☐ |
Smaller reporting company | |||||
Emerging growth company |
Page |
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Part I. |
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Item 1. |
6 |
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Unaudited Condensed Consolidated Financial Statements: |
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6 |
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8 |
||||||
9 |
||||||
10 |
||||||
12 |
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14 |
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Item 1A. |
62 |
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Item 2. |
64 |
|||||
Item 3. |
119 |
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Item 4. |
123 |
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Part II. |
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Item 1. |
123 |
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Item 1A. |
124 |
|||||
Item 2. |
126 |
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Item 3. |
126 |
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Item 4. |
126 |
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Item 5. |
127 |
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Item 6. |
127 |
|||||
128 |
(a) | the fair value of the investments held by our carry funds and our side-by-side and co-investment entities managed by us, plus (1) the capital that we are entitled to call from investors in those funds and entities pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods, or (2) for certain credit-focused funds the amounts available to be borrowed under asset based credit facilities, |
(b) | the net asset value of (1) our hedge funds and real estate debt carry funds, BPP, certain co-investments managed by us, certain credit-focused funds, and our Hedge Fund Solutions drawdown funds (plus, in each case, the capital that we are entitled to call from investors in those funds, including commitments yet to commence their investment periods), and (2) our funds of hedge funds, our Hedge Fund Solutions registered investment companies, and BREIT, |
(c) | the invested capital, fair value or net asset value of assets we manage pursuant to separately managed accounts, |
(d) | the amount of debt and equity outstanding for our collateralized loan obligations (“CLO”) during the reinvestment period, |
(e) | the aggregate par amount of collateral assets, including principal cash, for our CLOs after the reinvestment period, |
(f) | the gross or net amount of assets (including leverage where applicable) for our credit-focused registered investment companies, and |
(g) | the fair value of common stock, preferred stock, convertible debt, or similar instruments issued by BXMT. |
(a) | for our Private Equity segment funds and Real Estate segment carry funds, including certain BREDS and Hedge Fund Solutions funds, the amount of capital commitments, remaining invested capital, fair value, net asset value or par value of assets held, depending on the fee terms of the fund, |
(b) | for our credit-focused carry funds, the amount of remaining invested capital (which may include leverage) or net asset value, depending on the fee terms of the fund, |
(c) | the remaining invested capital or fair value of assets held in co-investment vehicles managed by us on which we receive fees, |
(d) | the net asset value of our funds of hedge funds, hedge funds, BPP, certain co-investments managed by us, certain registered investment companies, BREIT, and certain of our Hedge Fund Solutions drawdown funds, |
(e) | the invested capital, fair value of assets or the net asset value we manage pursuant to separately managed accounts, |
(f) | the net proceeds received from equity offerings and accumulated core earnings of BXMT, subject to certain adjustments, |
(g) | the aggregate par amount of collateral assets, including principal cash, of our CLOs, and |
(h) | the gross amount of assets (including leverage) or the net assets (plus leverage where applicable) for certain of our credit-focused registered investment companies. |
Item 1. |
Financial Statements |
March 31, |
December 31, |
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2020 |
2019 |
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Assets |
|||||||||
Cash and Cash Equivalents |
$ | |
$ | |
|||||
Cash Held by Blackstone Funds and Other |
|
|
|||||||
Investments (including assets pledged of $ |
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|
|||||||
Accounts Receivable |
|
|
|||||||
Due from Affiliates |
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|
|||||||
Intangible Assets, Net |
|
|
|||||||
Goodwill |
|
|
|||||||
Other Assets |
|
|
|||||||
Right-of-Use Assets |
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|
|||||||
Deferred Tax Assets |
|
|
|||||||
Total Assets |
$ | |
$ |
|
|||||
Liabilities and Equity |
|||||||||
Loans Payable |
$ | |
$ | |
|||||
Due to Affiliates |
|
|
|||||||
Accrued Compensation and Benefits |
|
|
|||||||
Securities Sold, Not Yet Purchased |
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|
|||||||
Repurchase Agreements |
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|||||||
Operating Lease Liabilities |
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Accounts Payable, Accrued Expenses and Other Liabilities |
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Total Liabilities |
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|
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Commitments and Contingencies |
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Redeemable Non-Controlling Interests in Consolidated Entities |
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Equity |
|||||||||
Stockholders’ Equity of The Blackstone Group Inc. |
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Class A Common Stock, $ |
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|
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Class B Common Stock, $ |
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|
|||||||
Class C Common Stock, $ |
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|
|||||||
Additional Paid-in-Capital |
|
|
|||||||
Retained Earnings (Deficit) |
( |
) | |
||||||
Accumulated Other Comprehensive Loss |
( |
) | ( |
) | |||||
Total Stockholders’ Equity of The Blackstone Group Inc. |
|
|
|||||||
Non-Controlling Interests in Consolidated Entities |
|
|
|||||||
Non-Controlling Interests in Blackstone Holdings |
|
|
|||||||
Total Equity |
|
|
|||||||
Total Liabilities and Equity |
$ | |
$ | |
|||||
March 31, |
December 31, |
||||||||
2020 |
2019 |
||||||||
Assets |
|||||||||
Cash Held by Blackstone Funds and Other |
$ | |
$ | |
|||||
Investments |
|
|
|||||||
Accounts Receivable |
|
|
|||||||
Due from Affiliates |
|
|
|||||||
Other Assets |
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|
|||||||
Total Assets |
$ | |
$ | |
|||||
Liabilities |
|||||||||
Loans Payable |
$ | |
$ | |
|||||
Due to Affiliates |
|
|
|||||||
Securities Sold, Not Yet Purchased |
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|
|||||||
Repurchase Agreements |
|
|
|||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
|
|
|||||||
Total Liabilities |
$ | |
$ | |
|||||
Three Months Ended | |||||||||
March 31, | |||||||||
2020 |
2019 |
||||||||
Revenues |
|||||||||
Management and Advisory Fees, Net |
$ | |
$ | |
|||||
Incentive Fees |
|
|
|||||||
Investment Income (Loss) |
|||||||||
Performance Allocations |
|||||||||
Realized |
|
|
|||||||
Unrealized |
( |
) | |
||||||
Principal Investments |
|||||||||
Realized |
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|
|||||||
Unrealized |
( |
) | |
||||||
Total Investment Income (Loss) |
( |
) | |
||||||
Interest and Dividend Revenue |
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|
|||||||
Other |
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|
|||||||
Total Revenues |
( |
) | |
||||||
Expenses |
|||||||||
Compensation and Benefits |
|||||||||
Compensation |
|
|
|||||||
Incentive Fee Compensation |
|
|
|||||||
Performance Allocations Compensation |
|||||||||
Realized |
|
|
|||||||
Unrealized |
( |
) | |
||||||
Total Compensation and Benefits |
( |
) | |
||||||
General, Administrative and Other |
|
|
|||||||
Interest Expense |
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|
|||||||
Fund Expenses |
|
|
|||||||
Total Expenses |
( |
) | |
||||||
Other Income (Loss) |
|||||||||
Change in Tax Receivable Agreement Liability |
( |
) | — |
||||||
Net Gains (Losses) from Fund Investment Activities |
( |
) | |
||||||
Total Other Income (Loss) |
( |
) | |
||||||
Income (Loss) Before Provision (Benefit) for Taxes |
( |
) | |
||||||
Provision (Benefit) for Taxes |
( |
) | |
||||||
Net Income (Loss) |
( |
) | |
||||||
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities |
( |
) | |
||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities |
( |
) | |
||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings |
( |
) | |
||||||
Net Income (Loss) Attributable to The Blackstone Group Inc. |
$ | ( |
) | $ | |
||||
Net Income (Loss) Per Share of Class A Common Stock |
|||||||||
Basic |
$ | ( |
) | $ | |
||||
Diluted |
$ | ( |
) | $ | |
||||
Weighted-Average Shares of Class A Common Stock Outstanding |
|||||||||
Basic |
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|
|||||||
Diluted |
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|
|||||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Net Income (Loss) |
$ | ( |
) | $ | |
||||
Other Comprehensive Income (Loss) – Currency Translation Adjustment |
( |
) | |
||||||
Comprehensive Income (Loss) |
( |
) | |
||||||
Less: |
|
|
|||||||
Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities |
( |
) | |
||||||
Comprehensive Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities |
( |
) | |
||||||
Comprehensive Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings |
( |
) | |
||||||
Comprehensive Income (Loss) Attributable to Non-Controlling Interests |
( |
) | |
||||||
Comprehensive Income (Loss) Attributable to The Blackstone Group Inc. |
$ | ( |
) | $ | |
||||
|
Shares of The Blackstone Group Inc. (a) |
The Blackstone Group Inc. (a) |
|
|
|
|
|||||||||||||||||||||||||||||||||||
|
|
|
|
|
Accumulated |
|
|
|
|
Redeemable |
|||||||||||||||||||||||||||||||
|
|
|
|
|
Other |
|
Non- |
Non- |
|
Non- |
|||||||||||||||||||||||||||||||
|
|
|
|
|
Compre- |
|
Controlling |
Controlling |
|
Controlling |
|||||||||||||||||||||||||||||||
|
Class A |
Class A |
Additional |
|
hensive |
|
Interests in |
Interests in |
|
Interests in |
|||||||||||||||||||||||||||||||
|
Common |
Common |
Paid-in- |
Retained |
Income |
|
Consolidated |
Blackstone |
Total |
Consolidated |
|||||||||||||||||||||||||||||||
|
Stock |
Stock |
Capital |
Earnings |
(Loss) |
Total |
Entities |
Holdings |
Equity |
Entities |
|||||||||||||||||||||||||||||||
Balance at December 31, 2 0 19 |
|
$ | |
$ | |
$ | |
$ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||||||
Net Income (Loss) |
— |
— |
— |
( |
) | — |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Currency Translation Adjustment |
— |
— |
— |
— |
( |
) | ( |
) | — |
( |
) | ( |
) | — |
|||||||||||||||||||||||||||
Capital Contributions |
— |
— |
— |
— |
— |
— |
|
— |
|
— |
|||||||||||||||||||||||||||||||
Capital Distributions |
— |
— |
— |
( |
) | — |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Transfer of Non-Controlling Interests in Consolidated Entities |
— |
— |
— |
— |
— |
— |
( |
) | — |
( |
) | — |
|||||||||||||||||||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders |
— |
— |
|
— |
— |
|
— |
— |
|
— |
|||||||||||||||||||||||||||||||
Equity-Based Compensation |
— |
— |
|
— |
— |
|
— |
|
|
— |
|||||||||||||||||||||||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Shares |
|
— |
( |
) | — |
— |
( |
) | — |
( |
) | ( |
) | — |
|||||||||||||||||||||||||||
Repurchase of Common Shares and Blackstone Holdings Partnership Units |
( |
) | — |
( |
) | — |
— |
( |
) | — |
— |
( |
) | — |
|||||||||||||||||||||||||||
Change in The Blackstone Group Inc.’s Ownership Interest |
— |
— |
|
— |
— |
|
— |
( |
) | — |
— |
||||||||||||||||||||||||||||||
Conversion of Blackstone Holdings Partnership Units to Shares of Class A Common Stock |
|
— |
|
— |
— |
|
— |
( |
) | — |
— |
||||||||||||||||||||||||||||||
Balance at March 31, 2 0 20 |
|
$ | |
$ | |
$ | ( |
) | $ | ( |
) | $ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||||||||||
(a) | Following the conversion to a corporation, Blackstone also has |
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|
|
|
The Blackstone Group L.P. |
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
Accumulated |
|
|
|
|
Redeemable |
|||||||||||||||||||||||||
|
|
|
|
|
Other |
|
Non- |
Non- |
|
Non- |
|||||||||||||||||||||||||
|
|
|
|
|
Compre- |
|
Controlling |
Controlling |
|
Controlling |
|||||||||||||||||||||||||
|
|
|
|
|
hensive |
|
Interests in |
Interests in |
Total |
Interests in |
|||||||||||||||||||||||||
|
|
|
Common |
Partners’ |
Income |
|
Consolidated |
Blackstone |
Partners’ |
Consolidated |
|||||||||||||||||||||||||
|
|
|
Units |
Capital |
(Loss) |
Total |
Entities |
Holdings |
Capital |
Entities |
|||||||||||||||||||||||||
Balance at December 31, 2 0 18 |
|
|
|
$ |
|
$ |
( |
) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
Net Income |
|
|
— |
|
— |
|
|
|
|
|
|||||||||||||||||||||||||
Currency Translation Adjustment |
|
|
— |
— |
|
|
— |
|
|
— |
|||||||||||||||||||||||||
Capital Contributions |
|
|
— |
— |
— |
— |
|
— |
|
— |
|||||||||||||||||||||||||
Capital Distributions |
|
|
— |
( |
) |
— |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | |||||||||||||||||||
Transfer of Non-Controlling Interests in Consolidated Entities |
|
|
— |
— |
— |
— |
( |
) |
— |
( |
) |
— |
|||||||||||||||||||||||
Deferred Tax Effects Resulting from Acquisition of Ownership Interests from Non-Controlling Interest Holders |
|
|
— |
|
— |
|
— |
— |
|
— |
|||||||||||||||||||||||||
Equity-Based Compensation |
|
|
— |
|
— |
|
— |
|
|
— |
|||||||||||||||||||||||||
Net Delivery of Vested Blackstone Holdings Partnership Units and Blackstone Common Units |
|
|
|
( |
) |
— |
( |
) |
— |
( |
) |
( |
) |
— |
|||||||||||||||||||||
Repurchase of Blackstone Common Units and Blackstone Holdings Partnership Units |
|
|
( |
) |
( |
) |
— |
( |
) |
— |
— |
( |
) |
— |
|||||||||||||||||||||
Change in The Blackstone Group L.P.’s Ownership Interest |
|
|
— |
( |
) |
— |
( |
) |
— |
|
— |
— |
|||||||||||||||||||||||
Conversion of Blackstone Holdings Partnership Units to Blackstone Common Units |
|
|
|
|
— |
|
— |
( |
) |
— |
— |
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||
Balance at March 31, 2 0 19 |
|
|
|
$ |
|
$ |
( |
) |
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
|||||||||||||||||
|
|
|
Three Months Ended March 31, | ||||||||
|
2020 |
2019 |
|||||||
Operating Activities |
|
|
|||||||
Net Income (Loss) |
$ | ( |
) | $ | |
||||
Adjustments to Reconcile Net Income (Loss) Net Cash Provided by Operating Activities |
|
|
|||||||
Blackstone Funds Related |
|
|
|||||||
Net Realized Gains on Investments |
( |
) | ( |
) | |||||
Changes in Unrealized (Gains) Losses on Investments |
|
( |
) | ||||||
Non-Cash Performance Allocations |
|
( |
) | ||||||
Non-Cash Performance Allocations and Incentive Fee Compensation |
( |
) | |
||||||
Equity-Based Compensation Expense |
|
|
|||||||
Amortization of Intangibles |
|
|
|||||||
Other Non-Cash Amounts Included in Net Income (Loss) |
( |
) | ( |
) | |||||
Cash Flows Due to Changes in Operating Assets and Liabilities |
|
|
|||||||
Accounts Receivable |
|
|
|||||||
Due from Affiliates |
( |
) | ( |
) | |||||
Other Assets |
( |
) | |
||||||
Accrued Compensation and Benefits |
( |
) | ( |
) | |||||
Securities Sold, Not Yet Purchased |
( |
) | ( |
) | |||||
Accounts Payable, Accrued Expenses and Other Liabilities |
( |
) | ( |
) | |||||
Repurchase Agreements |
( |
) | ( |
) | |||||
Due to Affiliates |
( |
) | |
||||||
Investments Purchased |
( |
) | ( |
) | |||||
Cash Proceeds from Sale of Investments |
|
|
|||||||
Net Cash Provided by Operating Activities |
|
|
|||||||
Investing Activities |
|
|
|||||||
Purchase of Furniture, Equipment and Leasehold Improvements |
( |
) | ( |
) | |||||
Net Cash Used in Investing Activities |
( |
) | ( |
) | |||||
Financing Activities |
|
|
|||||||
Distributions to Non-Controlling Interest Holders in Consolidated Entities |
( |
) | ( |
) | |||||
Contributions from Non-Controlling Interest Holders in Consolidated Entities |
|
|
|||||||
Payments Under Tax Receivable Agreement |
( |
) | ( |
) | |||||
Net Settlement of Vested Class A Common Stock and Repurchase of Class A Common Stock and Blackstone Holdings Partnership Units |
( |
) | ( |
) | |||||
Proceeds from Loans Payable |
|
|
|
Three Months Ended March 31, | ||||||||
|
2020 |
2019 |
|||||||
Financing Activities (Continued) |
|
|
|||||||
Repayment and Repurchase of Loans Payable |
$ | ( |
) | $ | ( |
) | |||
Dividends/Distributions to Shareholders and Unitholders |
( |
) | ( |
) | |||||
Net Cash Used in Financing Activities |
( |
) | ( |
) | |||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other |
( |
) | ( |
) | |||||
Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other |
|
|
|||||||
Net Decrease |
( |
) | ( |
) | |||||
Beginning of Period |
|
|
|||||||
End of Period |
$ | |
$ | |
|||||
Supplemental Disclosure of Cash Flows Information |
|
|
|||||||
Payments for Interest |
$ | |
$ | |
|||||
Payments for Income Taxes |
$ | |
$ | |
|||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities |
|
|
|||||||
Non-Cash Contributions from Non-Controlling Interest Holders |
$ | |
$ | |
|||||
Non-Cash Distributions to Non-Controlling Interest Holders |
$ | ( |
) | $ | ( |
) | |||
Transfer of Interests to Non-Controlling Interest Holders |
$ | ( |
) | $ | ( |
) | |||
Change in The Blackstone Group Inc.’s Ownership Interest |
$ | |
$ | ( |
) | ||||
Net Settlement of Vested Class A Common Stock |
$ | |
$ | |
|||||
Conversion of Blackstone Holdings Units to Class A Common Stock |
$ | |
$ |
|
|||||
Acquisition of Ownership Interests from Non-Controlling Interest Holders |
|
|
|||||||
Deferred Tax Asset |
$ | ( |
) | $ | ( |
) | |||
Due to Affiliates |
$ | |
$ | |
|||||
Equity |
$ | |
$ | |
|||||
|
March 31, |
December 31, |
|||||||
|
2020 |
2019 |
|||||||
Cash and Cash Equivalents |
$ | |
$ | |
|||||
Cash Held by Blackstone Funds and Other |
|
|
|||||||
|
$ |
|
$ |
|
|||||
● |
Level I – Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. |
● |
Level II – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within CLO vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter derivatives where the fair value is based on observable inputs. Senior and subordinated notes issued by CLO vehicles are classified within Level II of the fair value hierarchy. |
● |
Level III – Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include general and limited partnership interests in private equity and real estate funds, credit-focused funds, distressed debt and non-investment grade residual interests in securitizations, certain corporate bonds and loans held within CLO vehicles, and certain over-the-counter derivatives where the fair value is based on unobservable inputs. |
● |
Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. |
● |
Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. |
● |
Senior and subordinate notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. |
|
March 31, |
December 31, |
|||||||
|
2020 |
2019 |
|||||||
Finite-Lived Intangible Assets/Contractual Rights |
$ | |
$ | |
|||||
Accumulated Amortization |
( |
) |
( |
) | |||||
Intangible Assets, Net |
$ | |
$ | |
|||||
|
March 31, |
December 31, |
|||||||
|
2020 |
2019 |
|||||||
Investments of Consolidated Blackstone Funds |
$ | |
$ | |
|||||
Equity Method Investments |
|
|
|||||||
Partnership Investments |
|
|
|||||||
Accrued Performance Allocations |
|
|
|||||||
Corporate Treasury Investments |
|
|
|||||||
Other Investments |
|
|
|||||||
|
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
2020 |
2019 |
|||||||
Realized Losses |
$ | ( |
) | $ | ( |
) | |||
Net Change in Unrealized Gains (Losses) |
( |
) | |
||||||
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds |
( |
) | |
||||||
Interest and Dividend Revenue Attributable to Consolidated Blackstone Funds |
|
|
|||||||
Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities |
$ | ( |
) | $ | |
||||
|
Real |
Private |
Hedge Fund |
Credit & |
|
||||||||||||||||
|
Estate |
Equity |
Solutions |
Insurance |
Total |
||||||||||||||||
Accrued Performance Allocations, December 31, 2019 |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
Performance Allocations as a Result of Changes in Fund Fair Values |
( |
) | ( |
) | |
( |
) | ( |
) | ||||||||||||
Foreign Exchange Loss |
( |
) | — |
— |
— |
( |
) | ||||||||||||||
Fund Distributions |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Accrued Performance Allocations, March 31, 2020 |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
|
Three Months Ended March 31, | ||||||||
|
2020 |
2019 |
|||||||
Realized Gains |
$ | |
$ | |
|||||
Net Change in Unrealized Gains (Losses) |
( |
) | |
||||||
|
$ | ( |
) | $ | |
||||
|
Three Months Ended March 31, | ||||||||
|
2020 |
2019 |
|||||||
Realized Gains |
$ | |
$ | |
|||||
Net Change in Unrealized Gains (Losses) |
( |
) | |
||||||
|
$ | ( |
) | $ | |
||||
|
|
|
Redemption |
|
|||||||||||||
|
|
Unfunded |
Frequency |
Redemption |
|||||||||||||
Strategy |
Fair Value |
Commitments |
(if currently eligible) |
Notice Period |
|||||||||||||
Diversified Instruments |
$ | |
$ | |
(a) |
(a) |
|||||||||||
Credit Driven |
|
|
(b) |
(b) |
|||||||||||||
Equity |
|
— |
(c) |
(c) |
|||||||||||||
Commodities |
|
— |
(d) |
(d) |
|||||||||||||
|
$ | |
$ | |
|
|
|||||||||||
(a) | Diversified Instruments include investments in funds that invest across multiple strategies. Investments representing |
(b) | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. Investments representing |
(c) | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing |
(d) | The Commodities category includes investments in commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. Investments representing |
|
March 31, 2020 |
December 31, 2019 | |||||||||||||||||||||||||||||||
|
Assets |
Liabilities |
Assets |
Liabilities | |||||||||||||||||||||||||||||
|
|
Fair |
|
Fair |
|
Fair |
|
Fair |
|||||||||||||||||||||||||
|
Notional |
Value |
Notional |
Value |
Notional |
Value |
Notional |
Value |
|||||||||||||||||||||||||
Freestanding Derivatives |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Blackstone |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Interest Rate Contracts |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||||||
Foreign Currency Contracts |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Credit Default Swaps |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Investments of |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Foreign Currency Contracts |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Interest Rate Contracts |
— |
— |
|
|
— |
— |
|
|
|||||||||||||||||||||||||
Credit Default Swaps |
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total Return Swaps |
— |
— |
|
|
|
|
|
|
|||||||||||||||||||||||||
Other |
— |
— |
— |
— |
|
|
|
|
|||||||||||||||||||||||||
|
$ | |
$ | |
$ | |
$ | |
$ |
|
$ | |
$ | |
$ | |
|||||||||||||||||
Three Months Ended March 31, | |||||||||
|
2020 |
2019 |
|||||||
Freestanding Derivatives |
|
|
|||||||
Realized Gains (Losses) |
|
|
|||||||
Interest Rate Contracts |
$ | ( |
) | $ | ( |
) | |||
Foreign Currency Contracts |
( |
) | |
||||||
Credit Default Swaps |
( |
) | |
||||||
Total Return Swaps |
( |
) | ( |
) | |||||
Other |
( |
) | ( |
) | |||||
|
$ | ( |
) | $ | |
||||
Net Change in Unrealized Gains (Losses) |
|
|
|||||||
Interest Rate Contracts |
$ | |
$ | ( |
) | ||||
Foreign Currency Contracts |
|
( |
) | ||||||
Credit Default Swaps |
( |
) | |
||||||
Total Return Swaps |
( |
) | |
||||||
Other |
|
( |
) | ||||||
|
$ | |
$ | ( |
) | ||||
March 31, |
December 31, |
||||||||
2020 |
2019 |
||||||||
Assets |
|||||||||
Loans and Receivables |
$ | $ | |||||||
Equity and Preferred Securities |
|||||||||
Debt Securities |
|||||||||
Assets of Consolidated CLO Vehicles |
|||||||||
Corporate Loans |
|||||||||
Other |
|||||||||
$ | $ | ||||||||
Liabilities |
|||||||||
Liabilities of Consolidated CLO Vehicles |
|||||||||
Senior Secured Notes |
|||||||||
Loans Payable |
$ | $ | |||||||
Due to Affiliates |
|||||||||
Subordinated Notes |
|||||||||
Loans Payable |
|||||||||
Due to Affiliates |
|||||||||
$ | $ | ||||||||
Three Months Ended March 31, | |||||||||||||||||
2020 |
2019 | ||||||||||||||||
Net Change |
Net Change |
||||||||||||||||
Realized |
in Unrealized |
Realized |
in Unrealized |
||||||||||||||
Gains (Losses) |
Gains (Losses) |
Gains (Losses) |
Gains (Losses) |
||||||||||||||
Assets |
|||||||||||||||||
Loans and Receivables |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | |||||
Equity and Preferred Securities |
— |
( |
) | ||||||||||||||
Debt Securities |
( |
) | ( |
) | ( |
) | |||||||||||
Assets of Consolidated CLO Vehicles |
|||||||||||||||||
Corporate Loans |
( |
) | ( |
) | ( |
) | |||||||||||
Other |
— |
( |
) | — |
— |
||||||||||||
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ||||||||
Liabilities |
|||||||||||||||||
Liabilities of Consolidated CLO Vehicles |
|||||||||||||||||
Senior Secured Notes |
$ | — |
$ | $ | — |
$ | ( |
) | |||||||||
Subordinated Notes |
— |
( |
) | — |
( |
) | |||||||||||
Other |
— |
— |
— |
— |
|||||||||||||
$ | — |
$ | $ | — |
$ | ( |
) | ||||||||||
March 31, 2020 |
December 31, 2019 | ||||||||||||||||||||||||
For Financial Assets |
For Financial Assets | ||||||||||||||||||||||||
Past Due (a) |
Past Due (a) | ||||||||||||||||||||||||
(Deficiency) |
(Deficiency) |
(Deficiency) |
Excess |
||||||||||||||||||||||
of Fair Value |
Fair |
of Fair Value |
of Fair Value |
Fair |
of Fair Value |
||||||||||||||||||||
Over Principal |
Value |
Over Principal |
Over Principal |
Value |
Over Principal |
||||||||||||||||||||
Loans and Receivables |
$ | ( |
) | $ | — |
$ | — |
$ | ( |
) | $ | — |
$ | — |
|||||||||||
Debt Securities |
( |
) | — |
— |
( |
) | — |
— |
|||||||||||||||||
Assets of Consolidated CLO Vehicles |
|||||||||||||||||||||||||
Corporate Loans |
( |
) | ( |
) | ( |
) | — |
— |
|||||||||||||||||
Other |
( |
) | — |
— |
— |
— |
|||||||||||||||||||
$ | ( |
) | $ | $ | ( |
) | $ | ( |
) | $ | — |
$ | — |
||||||||||||
(a) | Corporate Loans within CLO assets are classified as past due if contractual payments are more than one day past due. |
8. |
Fair Value Measurements of Financial Instruments |
March 31, 2020 | |||||||||||||||||||||
Level I |
Level II |
Level III |
NAV |
Total |
|||||||||||||||||
Assets |
|||||||||||||||||||||
Cash and Cash Equivalents - Money Market Funds and Short-Term Investments |
$ | $ | — |
$ | — |
$ | — |
$ | |||||||||||||
Investments |
|||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) |
|||||||||||||||||||||
Investment Funds |
— |
— |
— |
||||||||||||||||||
Equity Securities |
— |
||||||||||||||||||||
Partnership and LLC Interests |
— |
— |
|||||||||||||||||||
Debt Instruments |
— |
||||||||||||||||||||
Freestanding Derivatives |
|||||||||||||||||||||
Foreign Currency Contracts |
— |
— |
— |
||||||||||||||||||
Credit Default Swaps |
— |
— |
— |
||||||||||||||||||
Assets of Consolidated CLO Vehicles |
|||||||||||||||||||||
Corporate Loans |
— |
— |
|||||||||||||||||||
Other |
— |
( |
) | — |
|||||||||||||||||
Total Investments of Consolidated Blackstone Funds |
|||||||||||||||||||||
Corporate Treasury Investments |
|||||||||||||||||||||
Equity Securities |
— |
— |
— |
||||||||||||||||||
Debt Instruments |
— |
||||||||||||||||||||
Other |
— |
— |
|||||||||||||||||||
Total Corporate Treasury Investments |
|||||||||||||||||||||
Other Investments |
— |
||||||||||||||||||||
Total Investments |
|||||||||||||||||||||
Accounts Receivable - Loans and Receivables |
— |
— |
— |
||||||||||||||||||
Other Assets |
|||||||||||||||||||||
Freestanding Derivatives |
|||||||||||||||||||||
Interest Rate Contracts |
— |
— |
|||||||||||||||||||
Foreign Currency Contracts |
— |
— |
— |
||||||||||||||||||
Credit Default Swaps |
— |
— |
— |
||||||||||||||||||
Total Other Assets |
— |
— |
|||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
March 31, 2020 | |||||||||||||||||
Level I |
Level II |
Level III |
Total |
||||||||||||||
Liabilities |
|||||||||||||||||
Loans Payable - Liabilities of Consolidated CLO Vehicles (a) |
|||||||||||||||||
Senior Secured Notes (b) |
$ | — |
$ | $ | — |
$ | |||||||||||
Subordinated Notes (b) |
— |
— |
|||||||||||||||
Total Loans Payable |
— |
— |
|||||||||||||||
Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a) |
|||||||||||||||||
Senior Secured Notes (b) |
— |
— |
|||||||||||||||
Subordinated Notes (b) |
— |
— |
|||||||||||||||
Total Due to Affiliates |
— |
— |
|||||||||||||||
Securities Sold, Not Yet Purchased |
— |
||||||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
|||||||||||||||||
Liabilities of Consolidated Blackstone Funds - Freestanding Derivatives (a) |
|||||||||||||||||
Foreign Currency Contracts |
— |
— |
|||||||||||||||
Credit Default Swaps |
— |
— |
|||||||||||||||
Total Return Swaps |
— |
— |
|||||||||||||||
Interest Rate Swaps |
— |
— |
|||||||||||||||
Total Liabilities of Consolidated Blackstone Funds |
— |
— |
|||||||||||||||
Freestanding Derivatives |
|||||||||||||||||
Interest Rate Contracts |
— |
||||||||||||||||
Foreign Currency Contracts |
— |
— |
|||||||||||||||
Credit Default Swaps |
— |
— |
|||||||||||||||
Total Freestanding Derivatives |
— |
||||||||||||||||
Total Accounts Payable, Accrued Expenses and Other Liabilities |
— |
||||||||||||||||
$ | $ | $ | — |
$ | |||||||||||||
December 31, 2019 | |||||||||||||||||||||
Level I |
Level II |
Level III |
NAV |
Total |
|||||||||||||||||
Assets |
|||||||||||||||||||||
Cash and Cash Equivalents - Money Market Funds and Short-Term Investments |
$ | $ | — |
$ | — |
$ | — |
$ | |||||||||||||
Investments |
|||||||||||||||||||||
Investments of Consolidated Blackstone Funds (a) |
|||||||||||||||||||||
Investment Funds |
— |
— |
— |
||||||||||||||||||
Equity Securities |
— |
||||||||||||||||||||
Partnership and LLC Interests |
— |
— |
|||||||||||||||||||
Debt Instruments |
— |
— |
|||||||||||||||||||
Freestanding Derivatives |
|||||||||||||||||||||
Foreign Currency Contracts |
— |
— |
— |
||||||||||||||||||
Credit Default Swaps |
— |
— |
— |
||||||||||||||||||
Total Return Swaps |
— |
— |
— |
||||||||||||||||||
Other |
— |
— |
— |
||||||||||||||||||
Assets of Consolidated CLO Vehicles |
|||||||||||||||||||||
Corporate Loans |
— |
— |
|||||||||||||||||||
Other |
— |
— |
— |
||||||||||||||||||
Total Investments of Consolidated Blackstone Funds |
|||||||||||||||||||||
Corporate Treasury Investments |
|||||||||||||||||||||
Equity Securities |
— |
— |
— |
||||||||||||||||||
Debt Instruments |
— |
||||||||||||||||||||
Other |
— |
— |
|||||||||||||||||||
Total Corporate Treasury Investments |
|||||||||||||||||||||
Other Investments |
— |
— |
|||||||||||||||||||
Total Investments |
|||||||||||||||||||||
Accounts Receivable - Loans and Receivables |
— |
— |
— |
||||||||||||||||||
Other Assets |
|||||||||||||||||||||
Freestanding Derivatives |
|||||||||||||||||||||
Interest Rate Contracts |
— |
— |
|||||||||||||||||||
Foreign Currency Contracts |
— |
— |
— |
||||||||||||||||||
Credit Default Swaps |
— |
— |
— |
||||||||||||||||||
Total Other Assets |
— |
— |
|||||||||||||||||||
$ | $ | $ | $ | $ | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
Level I |
Level II |
Level III |
Total |
||||||||||||||
Liabilities |
|||||||||||||||||
Loans Payable - Liabilities of Consolidated CLO Vehicles (a) |
|||||||||||||||||
Senior Secured Notes (b) |
$ | — |
$ | $ | — |
$ | |||||||||||
Subordinated Notes (b) |
— |
— |
|||||||||||||||
Total Loans Payable |
— |
— |
|||||||||||||||
Due to Affiliates - Liabilities of Consolidated CLO Vehicles (a) |
|||||||||||||||||
Senior Secured Notes (b) |
— |
— |
|||||||||||||||
Subordinated Notes (b) |
— |
— |
|||||||||||||||
Total Due to Affiliates |
— |
— |
|||||||||||||||
Securities Sold, Not Yet Purchased |
— |
||||||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
|||||||||||||||||
Liabilities of Consolidated Blackstone Funds - Freestanding Derivatives (a) |
|||||||||||||||||
Foreign Currency Contracts |
— |
— |
|||||||||||||||
Credit Default Swaps |
— |
— |
|||||||||||||||
Total Return Swaps |
— |
— |
|||||||||||||||
Interest Rate Swaps |
— |
— |
|||||||||||||||
Other |
— |
— |
|||||||||||||||
Total Liabilities of Consolidated Blackstone Funds |
— |
— |
|||||||||||||||
Freestanding Derivatives |
|||||||||||||||||
Interest Rate Contracts |
— |
||||||||||||||||
Foreign Currency Contracts |
— |
— |
|||||||||||||||
Credit Default Swaps |
— |
— |
|||||||||||||||
Total Freestanding Derivatives |
— |
||||||||||||||||
Total Accounts Payable, Accrued Expenses and Other Liabilities |
— |
||||||||||||||||
$ | $ | $ | — |
$ | |||||||||||||
(a) | Pursuant to GAAP consolidation guidance, Blackstone is required to consolidate all VIEs in which it has been identified as the primary beneficiary, including certain CLO vehicles and other funds in which a consolidated entity of Blackstone, such as the general partner of the fund, has a controlling financial interest. While Blackstone is required to consolidate certain funds, including CLO vehicles, for GAAP purposes, Blackstone has no ability to utilize the assets of these funds and there is no recourse to Blackstone for their liabilities since these are client assets and liabilities. |
(b) | Senior and subordinated notes issued by CLO vehicles are classified based on the more observable fair value of CLO assets less (1) the fair value of any beneficial interests held by Blackstone, and (2) the carrying value of any beneficial interests that represent compensation for services. |
Fair Value |
Valuation Techniques |
Unobservable Inputs |
Ranges |
Weighted- Average (a) |
|||||||||||
Financial Assets |
|||||||||||||||
Investments of Consolidated Blackstone Funds |
|||||||||||||||
Equity Securities |
$ |
|
Discounted Cash Flows |
Discount Rate |
|
|
|||||||||
Revenue CAGR |
- |
|
|||||||||||||
Book Value Multiple |
|
|
|||||||||||||
EBITDA Multiple |
|
|
|||||||||||||
Exit Capitalization Rate |
|
|
|||||||||||||
Exit Multiple - EBITDA |
|
|
|||||||||||||
Exit Multiple - NOI |
|
|
|||||||||||||
Exit Multiple - P/E |
x - |
|
|||||||||||||
|
|
|
|
|
Exit Yield |
|
|
|
|
N/A |
| ||||
|
Market Comparable Companies |
Book Value Multiple |
|
N/A |
|||||||||||
EBITDA Multiple |
|
|
|||||||||||||
|
Other |
N/A |
N/A |
N/A |
|||||||||||
|
Transaction Price |
N/A |
N/A |
N/A |
|||||||||||
|
Third Party Pricing |
N/A |
N/A |
N/A |
|||||||||||
Partnership and LLC Interests |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||||
Revenue CAGR |
- |
|
|||||||||||||
Book Value Multiple |
|
|
|||||||||||||
EBITDA Multiple |
|
|
|||||||||||||
Exit Capitalization Rate |
|
|
|||||||||||||
Exit Multiple - EBITDA |
|
|
|||||||||||||
Exit Multiple - NOI |
|
N/A |
|||||||||||||
|
Market Comparable Companies |
Book Value Multiple |
|
N/A |
|||||||||||
Dollar/Acre Multiple |
$ |
N/A |
|||||||||||||
|
Other |
N/A |
N/A |
N/A |
|||||||||||
|
Transaction Price |
N/A |
N/A |
N/A |
|||||||||||
Debt Instruments |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||||
Exit Capitalization Rate |
|
N/A |
|||||||||||||
|
Third Party Pricing |
N/A |
N/A |
N/A |
|||||||||||
|
Other |
N/A |
N/A |
N/A |
|||||||||||
|
Transaction Price |
N/A |
N/A |
N/A |
|||||||||||
Assets of Consolidated CLO Vehicles |
|
Third Party Pricing |
N/A |
N/A |
N/A |
||||||||||
Total Investments of Consolidated Blackstone Funds |
|
|
Fair Value |
Valuation Techniques |
Unobservable Inputs |
Ranges |
Weighted- |
|||||||||||
Corporate Treasury Investments |
$ |
|
Discounted Cash Flows |
Discount Rate |
|
|
|||||||||
Default Rate |
|
N/A |
|||||||||||||
Pre-payment Rate |
|
N/A |
|||||||||||||
Recovery Lag |
|
N/A |
|||||||||||||
Recovery Rate |
|
|
|||||||||||||
Reinvestment Rate |
LIBOR + |
N/A |
|||||||||||||
|
Market Comparable Companies |
EBITDA Multiple |
|
|
|||||||||||
|
Third Party Pricing |
N/A |
N/A |
N/A |
|||||||||||
Loans and Receivables |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||||
|
Third Party Pricing |
N/A |
N/A |
N/A |
|||||||||||
Other Investments |
|
Transaction Price |
N/A |
N/A |
N/A |
||||||||||
$ |
|
||||||||||||||
|
Fair Value |
Valuation Techniques |
Unobservable Inputs |
Ranges |
Weighted- Average (a) | ||||||||
Financial Assets |
|
|
|
|
|
||||||||
Investments of Consolidated Blackstone Funds |
|
|
|
|
|
||||||||
Equity Securities |
$ | |
Discounted Cash Flows |
Discount Rate |
|
|
|||||||
|
|
|
Revenue CAGR |
|
|
||||||||
|
|
|
Book Value Multiple |
|
|
||||||||
|
|
|
EBITDA Multiple |
|
|
||||||||
|
|
|
Exit Capitalization Rate |
|
|
||||||||
|
|
|
Exit Multiple - EBITDA |
|
|
||||||||
|
|
|
Exit Multiple - NOI |
|
N/A |
||||||||
|
|
|
Exit Multiple - P/E |
|
N/A |
||||||||
|
|
Market Comparable Companies |
Book Value Multiple |
|
N/A |
||||||||
|
|
Other |
N/A |
N/A |
N/A |
||||||||
|
|
Transaction Price |
N/A |
N/A |
N/A |
||||||||
|
|
Third Party Pricing |
N/A |
N/A |
N/A |
||||||||
Partnership and LLC Interests |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||
|
|
|
Revenue CAGR |
- |
|
||||||||
|
|
|
Book Value Multiple |
|
|
||||||||
|
|
|
EBITDA Multiple |
|
|
||||||||
|
|
|
Exit Capitalization Rate |
|
|
||||||||
|
|
|
Exit Multiple - EBITDA |
|
|
||||||||
|
|
|
Exit Multiple - NOI |
|
|
||||||||
|
|
Market Comparable Companies |
Book Value Multiple |
|
N/A |
||||||||
|
|
|
Dollar/Acre Multiple |
$ |
N/A |
||||||||
|
|
Other |
N/A |
N/A |
N/A |
||||||||
|
|
Transaction Price |
N/A |
N/A |
N/A |
||||||||
Debt Instruments |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||
|
|
|
Exit Capitalization Rate |
|
|
||||||||
|
|
|
Exit Multiple - EBITDA |
|
N/A |
||||||||
|
|
Third Party Pricing |
N/A |
N/A |
N/A |
||||||||
|
|
Transaction Price |
N/A |
N/A |
N/A |
||||||||
Assets of Consolidated CLO Vehicles |
|
Third Party Pricing |
N/A |
N/A |
N/A |
||||||||
Total Investments of Consolidated Blackstone Funds |
|
|
|
|
|
|
Fair Value |
Valuation Techniques |
Unobservable Inputs |
Ranges |
Weighted- Average (a) | ||||||||
Corporate Treasury Investments |
$ | |
Discounted Cash Flows |
Discount Rate |
|
|
|||||||
|
|
|
Default Rate |
|
N/A |
||||||||
|
|
|
Pre-payment Rate |
|
N/A |
||||||||
|
|
|
Recovery Lag |
|
N/A |
||||||||
|
|
|
Recovery Rate |
|
|
||||||||
|
|
|
Reinvestment Rate |
LIBOR + |
N/A |
||||||||
|
|
Market Comparable Companies |
EBITDA Multiple |
|
|
||||||||
|
|
Third Party Pricing |
N/A |
N/A |
N/A |
||||||||
Loans and Receivables |
|
Discounted Cash Flows |
Discount Rate |
|
|
||||||||
|
|
Transaction Price |
N/A |
N/A |
N/A |
||||||||
|
$ | |
|
|
|
|
|||||||
N/A |
Not applicable. | |
CAGR |
Compound annual growth rate. | |
EBITDA |
Earnings before interest, taxes, depreciation and amortization. | |
Exit Multiple |
Ranges include the last twelve months EBITDA, forward EBITDA and price/earnings exit multiples. | |
LIBOR |
London Interbank Offered Rate. | |
NOI |
Net operating income. | |
P/E |
Price-earnings ratio. | |
Third Party Pricing |
Third Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. | |
Transaction Price |
Includes recent acquisitions or transactions. | |
(a) |
Unobservable inputs were weighted based on the fair value of the investments included in the range. |
Level III Financial Assets at Fair Value | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||||||||||
Investments |
Investments |
||||||||||||||||||||||||||||||||
of |
Loans |
Other |
of |
Loans |
Other |
||||||||||||||||||||||||||||
Consolidated |
and |
Investments |
Consolidated |
and |
Investments |
||||||||||||||||||||||||||||
Funds |
Receivables |
(a) |
Total |
Funds |
Receivables |
(a) |
Total |
||||||||||||||||||||||||||
Balance, Beginning of Period |
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Transfer In to Level III (b) |
— |
— |
|||||||||||||||||||||||||||||||
Transfer Out of Level III (b) |
( |
) | — |
( |
) | ( |
) | ( |
) | — |
( |
) | ( |
) | |||||||||||||||||||
Purchases |
|||||||||||||||||||||||||||||||||
Sales |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||
Settlements |
— |
( |
) | — |
( |
) | — |
( |
) | — |
( |
) | |||||||||||||||||||||
Changes in Gains Included in Earnings |
( |
) | ( |
) | ( |
) | ( |
) | |||||||||||||||||||||||||
Balance, End of Period |
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||
Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | $ | — |
$ | ( |
) | $ | ||||||||||||||||
(a) | Represents corporate treasury investments and Other Investments. |
(b) | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
9. |
Variable Interest Entities |
March 31, |
December 31, |
|||||||
2020 |
2019 |
|||||||
Investments |
$ | $ | ||||||
Due from Affiliates |
||||||||
Potential Clawback Obligation |
||||||||
Maximum Exposure to Loss |
$ | $ | ||||||
Amounts Due to Non-Consolidated VIEs |
$ | $ | ||||||
10. |
Repurchase Agreements |
March 31, 2020 | |||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||
Overnight |
Greater |
||||||||||||||||||||
and |
Up to |
30 - 90 |
than |
||||||||||||||||||
Continuous |
30 Days |
Days |
90 days |
Total |
|||||||||||||||||
Repurchase Agreements |
|||||||||||||||||||||
Asset-Backed Securities |
$ | $ | $ | $ | $ | ||||||||||||||||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” |
$ | ||||||||||||||||||||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” |
$ | ||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||
Remaining Contractual Maturity of the Agreements | |||||||||||||||||||||
Overnight |
Greater |
||||||||||||||||||||
and |
Up to |
30 - 90 |
than |
||||||||||||||||||
Continuous |
30 Days |
Days |
90 days |
Total |
|||||||||||||||||
Repurchase Agreements |
|||||||||||||||||||||
Asset-Backed Securities |
$ | $ | $ | $ | $ | ||||||||||||||||
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” |
$ | ||||||||||||||||||||
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” |
$ | ||||||||||||||||||||
11. |
Offsetting of Assets and Liabilities |
March 31, 2020 | |||||||||||||||||
Gross and Net |
|||||||||||||||||
Amounts of |
Gross Amounts Not Offset |
||||||||||||||||
Assets Presented |
in the Statement of |
||||||||||||||||
in the Statement |
Financial Condition |
||||||||||||||||
of Financial |
Financial |
Cash Collateral |
|||||||||||||||
Condition |
Instruments (a) |
Received |
Net Amount |
||||||||||||||
Assets |
|||||||||||||||||
Freestanding Derivatives |
$ | $ | $ | $ | |||||||||||||
March 31, 2020 | |||||||||||||||||
Gross and Net |
|||||||||||||||||
Amounts of |
|||||||||||||||||
Liabilities |
Gross Amounts Not Offset |
||||||||||||||||
Presented in the |
in the Statement of |
||||||||||||||||
Statement of |
Financial Condition |
||||||||||||||||
Financial |
Financial |
Cash Collateral |
|||||||||||||||
Condition |
Instruments (a) |
Pledged |
Net Amount |
||||||||||||||
Liabilities |
|||||||||||||||||
Freestanding Derivatives |
$ | $ | $ | $ | |||||||||||||
Repurchase Agreements |
|||||||||||||||||
$ | $ | $ | $ | ||||||||||||||
December 31, 2019 | |||||||||||||||||
Gross and Net |
|||||||||||||||||
Amounts of |
Gross Amounts Not Offset |
||||||||||||||||
Assets Presented |
in the Statement of |
||||||||||||||||
in the Statement |
Financial Condition |
||||||||||||||||
of Financial |
Financial |
Cash Collateral |
|||||||||||||||
Condition |
Instruments (a) |
Received |
Net Amount |
||||||||||||||
Assets |
|||||||||||||||||
Freestanding Derivatives |
$ | $ | $ | $ | |||||||||||||
December 31, 2019 | |||||||||||||||||
Gross and Net |
|||||||||||||||||
Amounts of |
|||||||||||||||||
Liabilities |
Gross Amounts Not Offset |
||||||||||||||||
Presented in the |
in the Statement of |
||||||||||||||||
Statement of |
Financial Condition |
||||||||||||||||
Financial |
Financial |
Cash Collateral |
|||||||||||||||
Condition |
Instruments (a) |
Pledged |
Net Amount |
||||||||||||||
Liabilities |
|||||||||||||||||
Freestanding Derivatives |
$ | $ | $ | $ | |||||||||||||
Repurchase Agreements |
— |
— |
|||||||||||||||
$ | $ | $ | $ | ||||||||||||||
(a) | Amounts presented are inclusive of both legally enforceable master netting agreements, and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure. |
March 31, |
December 31, |
||||||||
2020 |
2019 |
||||||||
Furniture, Equipment and Leasehold Improvements, Net |
$ | $ | |||||||
Prepaid Expenses |
|||||||||
Freestanding Derivatives |
|||||||||
Other |
|||||||||
$ | $ | ||||||||
12. |
Borrowings |
March 31, 2020 |
December 31, 2019 |
|||||||||||||||
Carrying |
Fair |
Carrying |
Fair |
|||||||||||||
Senior Notes |
Value |
Value (a) |
Value |
Value (a) |
||||||||||||
|
$ |
|
$ |
|
$ |
|
$ |
|
||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
$ | |
$ | |
$ | |
$ | |
|||||||||
(a) | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
March 31, 2020 |
December 31, 2019 |
|||||||||||||||||||||||
Weighted- |
Weighted- |
|||||||||||||||||||||||
Average |
Average |
|||||||||||||||||||||||
Effective |
Remaining |
Effective |
Remaining |
|||||||||||||||||||||
Borrowing |
Interest |
Maturity in |
Borrowing |
Interest |
Maturity in |
|||||||||||||||||||
Outstanding |
Rate |
Years |
Outstanding |
Rate |
Years |
|||||||||||||||||||
Senior Secured Notes |
$ | |
|
|
$ | |
|
|
||||||||||||||||
Subordinated Notes |
|
(a) |
N/A |
|
(a) |
N/A |
||||||||||||||||||
$ | |
$ | |
|||||||||||||||||||||
(a) | The Subordinated Notes do not have contractual interest rates but instead receive distributions from the excess cash flows of the CLO vehicles. |
|
March 31, 2020 |
December 31, 2019 | |||||||||||||||||||||||
|
|
Amounts Due to Non- |
|
Amounts Due to Non- | |||||||||||||||||||||
|
|
Consolidated Affiliates |
|
Consolidated Affiliates | |||||||||||||||||||||
|
|
Borrowing |
|
|
Borrowing |
|
|||||||||||||||||||
|
Fair Value |
Outstanding |
Fair Value |
Fair Value |
Outstanding |
Fair Value |
|||||||||||||||||||
Senior Secured Notes |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Subordinated Notes |
|
|
|
|
|
|
|||||||||||||||||||
|
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Blackstone Fund |
|||||||||||||
Operating |
Facilities/CLO |
Total |
|||||||||||
Borrowings |
Vehicles |
Borrowings |
|||||||||||
2020 |
$ | — |
$ | |
$ | |
|||||||
2021 |
— |
— |
— |
||||||||||
2022 |
— |
— |
— |
||||||||||
2023 |
|
— |
|
||||||||||
2024 |
— |
— |
— |
||||||||||
Thereafter |
|
|
|
||||||||||
$ | |
$ | |
$ | |
||||||||
13. |
Income Taxes |
14. |
Earnings Per Share and Stockholder’s Equity |
|
Three Months Ended March 31, | ||||||||
|
2020 |
2019 |
|||||||
Net Income (Loss) for Per Share of Class A Common Stock Calculations |
|
|
|||||||
Net Income (Loss) Attributable to The Blackstone Group Inc., Basic |
$ | ( |
) | $ | |
||||
Incremental Net Income from Assumed Exchange of Blackstone Holdings Partnership Units |
— |
|
|||||||
Net Income (Loss) Attributable to The Blackstone Group Inc., Diluted |
$ | ( |
) | $ | |
||||
Share/Units Outstanding |
|
|
|||||||
Weighted-Average Shares of Class A Common Stock Outstanding, Basic |
|
|
|||||||
Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock |
— |
|
|||||||
Weighted-Average Blackstone Holdings Partnership Units |
— |
|
|||||||
Weighted-Average Shares of Class A Common Stock Outstanding, Diluted |
|
|
|||||||
Net Income Per Share of Class A Common Stock |
|
|
|||||||
Basic |
$ | ( |
) | $ | |
||||
Diluted |
$ | ( |
) | $ | |
||||
Dividends Declared Per Share of Class A Common Stock (a) |
$ | |
$ | |
|||||
(a) | Dividends declared reflects the calendar date of the declaration for each dividend. |
Three Months Ended March 31, |
||||||||
2020 |
2019 |
|||||||
Weighted-Average Shares of Unvested Deferred Restricted Class A Common Stock |
|
|
||||||
Weighted-Average Blackstone Holdings Partnership Units |
|
|
Shares/Units |
|||||
Class A Common Stock Outstanding |
|
||||
Unvested Participating Common Stock |
|
||||
Total Participating Common Stock |
|
||||
Participating Blackstone Holdings Partnership Units |
|
||||
|
|||||
15. |
Equity-Based Compensation |
|
Blackstone Holdings |
The Blackstone Group Inc. | |||||||||||||||||||||||
|
|
|
Equity Settled Awards |
Cash Settled Awards | |||||||||||||||||||||
|
|
Weighted- |
Deferred |
Weighted- |
|
Weighted- |
|||||||||||||||||||
|
|
Average |
Restricted Shares |
Average |
|
Average |
|||||||||||||||||||
|
Partnership |
Grant Date |
of Class A |
Grant Date |
Phantom |
Grant Date |
|||||||||||||||||||
Unvested Shares/Units |
Units |
Fair Value |
Common Stock |
Fair Value |
Shares |
Fair Value |
|||||||||||||||||||
Balance, December 31, 2019 |
|
$ | |
|
$ | |
|
$ | |
||||||||||||||||
Granted |
— |
— |
|
|
|
|
|||||||||||||||||||
Vested |
( |
) | |
( |
) | |
( |
) | |
||||||||||||||||
Forfeited |
( |
) | |
( |
) | |
— |
— |
|||||||||||||||||
Balance, March 31, 2020 |
|
$ | |
|
$ | |
|
$ | |
||||||||||||||||
Weighted- |
||||||||
Average |
||||||||
Service Period |
||||||||
Shares/Units |
in Years |
|||||||
Blackstone Holdings Partnership Units |
|
|
||||||
Deferred Restricted Shares of Class A Common Stock |
|
|
||||||
Total Equity-Based Awards |
|
|
||||||
Phantom Shares |
|
|
||||||
16. |
Related Party Transactions |
|
March 31, |
December 31, |
|||||||
|
2020 |
2019 |
|||||||
Due from Affiliates |
|
|
|||||||
Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities and Portfolio Companies |
$ | |
$ | |
|||||
Due from Certain Non-Controlling Interest Holders and Blackstone Employees |
|
|
|||||||
Accrual for Potential Clawback of Previously Distributed Performance Allocations |
|
|
|||||||
|
$ | |
$ | |
|||||
|
March 31, |
December 31, |
|||||||
|
2020 |
2019 |
|||||||
Due to Affiliates |
|
|
|||||||
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements |
$ | |
$ | |
|||||
Due to Non-Consolidated Entities |
|
|
|||||||
Due to Note-Holders of Consolidated CLO Vehicles |
|
|
|||||||
Due to Certain Non-Controlling Interest Holders and Blackstone Employees |
|
|
|||||||
Accrual for Potential Repayment of Previously Received Performance Allocations |
|
|
|||||||
|
$ | |
$ | |
|||||
|
March 31, 2020 |
December 31, 2019 | |||||||||||||||||||||||
|
|
Current and |
|
|
Current and |
|
|||||||||||||||||||
|
Blackstone |
Former |
|
Blackstone |
Former |
|
|||||||||||||||||||
Segment |
Holdings |
Personnel (a) |
Total |
Holdings |
Personnel (a) |
Total |
|||||||||||||||||||
Real Estate |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
Private Equity |
|
|
|
|
|
|
|||||||||||||||||||
Credit & Insurance |
|
|
|
|
|
|
|||||||||||||||||||
|
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||||
(a) | The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
• |
Real Estate – Blackstone’s Real Estate segment primarily comprises its management of global, Europe and Asia-focused opportunistic real estate funds, high-yield and high-grade real estate debt funds, liquid real estate debt funds, core+ real estate funds which also include a non-exchange traded REIT and a NYSE-listed REIT. |
• |
Private Equity – Blackstone’s Private Equity segment includes its management of flagship corporate private equity funds, sector and geographically-focused corporate private equity funds, including energy and Asia-focused funds, core private equity funds, an opportunistic investment platform, a secondary fund of funds business, infrastructure-focused funds, a life sciences private investment platform, a multi-asset investment program for eligible high net worth investors and a capital markets services business. |
• |
Hedge Fund Solutions – The largest component of Blackstone’s Hedge Fund Solutions segment is Blackstone Alternative Asset Management, which manages a broad range of commingled and customized hedge fund of fund solutions. The segment also includes investment platforms that seed new hedge fund businesses, purchase minority interests in more established general partners and management companies of funds, invest in special situation opportunities, create alternative solutions in the form of daily liquidity products and invest directly. |
• |
Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of GSO Capital Partners LP, which is organized into three overarching strategies: performing credit strategies (which include mezzanine lending funds, middle market direct lending funds, including our business development company, our structured products group and other performing credit strategy funds), distressed strategies (which include credit alpha strategies, stressed/distressed funds and energy strategies) and long only strategies (which consist of CLOs, closed-ended funds, open-ended funds and separately managed accounts). In addition, the segment includes a publicly traded master limited partnership investment platform, Harvest, and our insurer-focused platform, Blackstone Insurance Solutions. |
|
March 31, 2020 and the Three Months Then Ended | ||||||||||||||||||||
|
Real |
Private |
Hedge Fund |
Credit & |
Total |
||||||||||||||||
|
Estate |
Equity |
Solutions |
Insurance |
Segments |
||||||||||||||||
Management and Advisory Fees, Net |
|
|
|
|
|
||||||||||||||||
Base Management Fees |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
Transaction, Advisory and Other Fees, Net |
|
|
|
|
|
||||||||||||||||
Management Fee Offsets |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Total Management and Advisory Fees, Net |
|
|
|
|
|
||||||||||||||||
Fee Related Performance Revenues |
|
— |
— |
|
|
||||||||||||||||
Fee Related Compensation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Other Operating Expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Fee Related Earnings |
|
|
|
|
|
||||||||||||||||
Realized Performance Revenues |
|
|
|
|
|
||||||||||||||||
Realized Performance Compensation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Realized Principal Investment Income (Loss) |
|
|
( |
) | |
|
|||||||||||||||
Total Net Realizations |
|
|
|
|
|
||||||||||||||||
Total Segment Distributable Earnings |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
Segment Assets |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
|
Three Months Ended March 31, 2019 | ||||||||||||||||||||
|
Real |
Private |
Hedge Fund |
Credit & |
Total |
||||||||||||||||
|
Estate |
Equity |
Solutions |
Insurance |
Segments |
||||||||||||||||
Management and Advisory Fees, Net |
|
|
|
|
|
||||||||||||||||
Base Management Fees |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
Transaction, Advisory and Other Fees, Net |
|
|
|
|
|
||||||||||||||||
Management Fee Offsets |
( |
) | ( |
) | |
( |
) | ( |
) | ||||||||||||
Total Management and Advisory Fees, Net |
|
|
|
|
|
||||||||||||||||
Fee Related Performance Revenues |
|
— |
— |
|
|
||||||||||||||||
Fee Related Compensation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Other Operating Expenses |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Fee Related Earnings |
|
|
|
|
|
||||||||||||||||
Realized Performance Revenues |
|
|
|
|
|
||||||||||||||||
Realized Performance Compensation |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Realized Principal Investment Income (Loss) |
( |
) | |
( |
) | |
|
||||||||||||||
Total Net Realizations |
|
|
|
|
|
||||||||||||||||
Total Segment Distributable Earnings |
$ | |
$ | |
$ | |
$ | |
$ | |
|||||||||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Revenues |
|
|
|||||||
Total GAAP Revenues |
$ | ( |
) | $ | |
||||
Less: Unrealized Performance Revenues (a) |
|
( |
) | ||||||
Less: Unrealized Principal Investment (Income) Loss (b) |
|
( |
) | ||||||
Less: Interest and Dividend Revenue (c) |
( |
) | ( |
) | |||||
Less: Other Revenue (d) |
( |
) | ( |
) | |||||
Impact of Consolidation (e) |
|
( |
) | ||||||
Amortization of Intangibles (f) |
|
|
|||||||
Transaction-Related Charges (g) |
( |
) | |
||||||
Intersegment Eliminations |
|
|
|||||||
Total Segment Revenue (h) |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Expenses |
|
|
|||||||
Total GAAP Expenses |
$ | ( |
) | $ | |
||||
Less: Unrealized Performance Allocations Compensation (i) |
|
( |
) | ||||||
Less: Equity-Based Compensation (j) |
( |
) | ( |
) | |||||
Less: Interest Expense (k) |
( |
) | ( |
) | |||||
Impact of Consolidation (e) |
( |
) | ( |
) | |||||
Amortization of Intangibles (f) |
( |
) | ( |
) | |||||
Transaction-Related Charges (g) |
( |
) | ( |
) | |||||
Intersegment Eliminations |
|
|
|||||||
Total Segment Expenses (l) |
$ | |
$ | |
|||||
Three Months Ended | |||||||||
March 31, | |||||||||
2020 |
2019 |
||||||||
Other Income |
|||||||||
Total GAAP Other Income |
$ | ( |
) | $ | |
||||
Impact of Consolidation (e) |
|
( |
) | ||||||
Total Segment Other Income |
$ | — |
$ | — |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Income (Loss) Before Provision (Benefit) for Taxes |
|
|
|||||||
Total GAAP Income (Loss) Before Provision (Benefit) for Taxes |
$ | ( |
) | $ | |
||||
Less: Unrealized Performance Revenues (a) |
|
( |
) | ||||||
Less: Unrealized Principal Investment (Income) Loss (b) |
|
( |
) | ||||||
Less: Interest and Dividend Revenue (c) |
( |
) | ( |
) | |||||
Less: Other Revenue (d) |
( |
) | ( |
) | |||||
Plus: Unrealized Performance Allocations Compensation (i) |
( |
) | |
||||||
Plus: Equity-Based Compensation (j) |
|
|
|||||||
Plus: Interest Expense (k) |
|
|
|||||||
Impact of Consolidation (e) |
|
( |
) | ||||||
Amortization of Intangibles (f) |
|
|
|||||||
Transaction-Related Charges (g) |
|
|
|||||||
Total Segment Distributable Earnings |
$ | |
$ | |
|||||
As of |
|||||
March 31, |
|||||
2020 |
|||||
Total Assets |
|||||
Total GAAP Assets |
$ | |
|||
Impact of Consolidation (e) |
( |
) | |||
Total Segment Assets |
$ | |
|||
(a) | This adjustment removes Unrealized Performance Revenues on a segment basis. |
(b) | This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. |
(c) | This adjustment removes Interest and Dividend Revenue on a segment basis. |
(d) | This adjustment removes Other Revenue on a segment basis. For the three months ended March 31, 2020 and 2019, Other Revenue on a GAAP basis was $ |
(e) | This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
(f) | This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation. This amount includes amortization of intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method. |
(g) | This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions. |
(h) | Total Segment Revenues is comprised of the following: |
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Total Segment Management and Advisory Fees, Net |
$ | |
$ | |
|||||
Total Segment Fee Related Performance Revenues |
|
|
|||||||
Total Segment Realized Performance Revenues |
|
|
|||||||
Total Segment Realized Principal Investment Income |
|
|
|||||||
Total Segment Revenues |
$ | |
$ | |
|||||
(i) | This adjustment removes Unrealized Performance Allocations Compensation. |
(j) | This adjustment removes Equity-Based Compensation on a segment basis. |
(k) | This adjustment removes Interest Expense, excluding interest expense related to the Tax Receivable Agreement. |
(l) | Total Segment Expenses is comprised of the following: |
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Total Segment Fee Related Compensation |
$ | |
$ | |
|||||
Total Segment Realized Performance Compensation |
|
|
|||||||
Total Segment Other Operating Expenses |
|
|
|||||||
Total Segment Expenses |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Management and Advisory Fees, Net |
|
|
|||||||
GAAP |
$ | |
$ | |
|||||
Segment Adjustment (a) |
|
|
|||||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues |
|
|
|||||||
GAAP |
|
|
|||||||
Incentive Fees |
$ | |
$ | |
|||||
Investment Income - Realized Performance Allocations |
|
|
|||||||
GAAP |
|
|
|||||||
Total Segment |
|
|
|||||||
Less: Realized Performance Revenues |
( |
) | ( |
) | |||||
Segment Adjustment (b) |
|
|
|||||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
GAAP Compensation to Total Segment Fee Related Compensation |
|
|
|||||||
GAAP |
|
|
|||||||
Compensation |
$ | |
$ | |
|||||
Incentive Fee Compensation |
|
|
|||||||
Realized Performance Allocations Compensation |
|
|
|||||||
GAAP |
|
|
|||||||
Total Segment |
|
|
|||||||
Less: Realized Performance Compensation |
( |
) | ( |
) | |||||
Less: Equity-Based Compensation - Operating Compensation |
( |
) | ( |
) | |||||
Less: Equity-Based Compensation - Performance Compensation |
( |
) | ( |
) | |||||
Segment Adjustment (c) |
( |
) | ( |
) | |||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
GAAP General, Administrative and Other to Total Segment Other Operating Expenses |
|
|
|||||||
GAAP |
$ | |
$ | |
|||||
Segment Adjustment (d) |
( |
) | ( |
) | |||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Realized Performance Revenues |
|
|
|||||||
GAAP |
|
|
|||||||
Incentive Fees |
$ | |
$ | |
|||||
Investment Income - Realized Performance Allocations |
|
|
|||||||
GAAP |
|
|
|||||||
Total Segment |
|
|
|||||||
Less: Fee Related Performance Revenues |
( |
) | ( |
) | |||||
Segment Adjustment (b) |
|
|
|||||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Realized Performance Compensation |
|
|
|||||||
GAAP |
|
|
|||||||
Incentive Fee Compensation |
$ | |
$ | |
|||||
Realized Performance Allocation Compensation |
|
|
|||||||
GAAP |
|
|
|||||||
Total Segment |
|
|
|||||||
Less: Fee Related Performance Compensation |
( |
) | ( |
) | |||||
Less: Equity-Based Compensation - Performance Compensation |
( |
) | ( |
) | |||||
Total Segment |
$ | |
$ | |
|||||
|
Three Months Ended | ||||||||
|
March 31, | ||||||||
|
2020 |
2019 |
|||||||
Realized Principal Investment Income |
|
|
|||||||
GAAP |
$ | |
$ | |
|||||
Segment Adjustment (e) |
( |
) | ( |
) | |||||
Total Segment |
$ | |
$ | |
|||||
(a) | Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of revenue from the reimbursement of certain expenses by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures. |
(b) | Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. |
(c) | Represents the removal of Transaction-Related Charges that are not recorded in the Total Segment measures. |
(d) | Represents the removal of (1) the amortization of transaction-related intangibles, and (2) certain expenses reimbursed by the Blackstone Funds, which are presented gross under GAAP but netted against Management and Advisory Fees, Net in the Total Segment measures. |
(e) | Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
March 31, 2020 | |||||||||||||||||
Consolidated |
Consolidated |
||||||||||||||||
Operating |
Blackstone |
Reclasses and |
|||||||||||||||
Partnerships |
Funds (a) |
Eliminations |
Consolidated |
||||||||||||||
Assets |
|||||||||||||||||
Cash and Cash Equivalents |
$ | 2,068,326 |
$ | — |
$ | — |
$ | 2,068,326 |
|||||||||
Cash Held by Blackstone Funds and Other |
— |
318,003 |
— |
318,003 |
|||||||||||||
Investments |
9,608,055 |
7,275,752 |
(453,106 |
) | 16,430,701 |
||||||||||||
Accounts Receivable |
372,937 |
323,792 |
— |
696,729 |
|||||||||||||
Due from Affiliates |
2,720,389 |
6,292 |
(20,569 |
) | 2,706,112 |
||||||||||||
Intangible Assets, Net |
379,758 |
— |
— |
379,758 |
|||||||||||||
Goodwill |
1,869,860 |
— |
— |
1,869,860 |
|||||||||||||
Other Assets |
540,939 |
957 |
— |
541,896 |
|||||||||||||
Right-of-Use Assets |
542,757 |
— |
— |
542,757 |
|||||||||||||
Deferred Tax Assets |
1,392,352 |
— |
— |
1,392,352 |
|||||||||||||
Total Assets |
$ | 19,495,373 |
$ | 7,924,796 |
$ | (473,675 |
) | $ | 26,946,494 |
||||||||
Liabilities and Equity |
|||||||||||||||||
Loans Payable |
$ | 4,575,201 |
$ | 5,817,702 |
$ | — |
$ | 10,392,903 |
|||||||||
Due to Affiliates |
1,082,655 |
409,901 |
(245,458 |
) | 1,247,098 |
||||||||||||
Accrued Compensation and Benefits |
1,965,237 |
— |
— |
1,965,237 |
|||||||||||||
Securities Sold, Not Yet Purchased |
9,412 |
42,086 |
— |
51,498 |
|||||||||||||
Repurchase Agreements |
— |
105,133 |
— |
105,133 |
|||||||||||||
Operating Lease Liabilities |
605,809 |
— |
— |
605,809 |
|||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
686,207 |
314,501 |
— |
1,000,708 |
|||||||||||||
Total Liabilities |
8,924,521 |
6,689,323 |
(245,458 |
) | 15,368,386 |
||||||||||||
Redeemable Non-Controlling Interests in Consolidated Entities |
22,000 |
50,066 |
— |
72,066 |
|||||||||||||
Equity |
|||||||||||||||||
Class A Common Stock |
7 |
— |
— |
7 |
|||||||||||||
Class B Common Stock |
— |
— |
— |
— |
|||||||||||||
Class C Common Stock |
— |
— |
— |
— |
|||||||||||||
Additional Paid-in-Capital |
6,298,093 |
286,479 |
(286,479 |
) | 6,298,093 |
||||||||||||
Retained Earnings (Deficit) |
(871,948 |
) | (58,262 |
) | 58,262 |
(871,948 |
) | ||||||||||
Accumulated Other Comprehensive Loss |
(41,533 |
) | — |
— |
(41,533 |
) | |||||||||||
Non-Controlling Interests in Consolidated Entities |
2,633,970 |
957,190 |
— |
3,591,160 |
|||||||||||||
Non-Controlling Interests in Blackstone Holdings |
2,530,263 |
— |
— |
2,530,263 |
|||||||||||||
Total Equity |
10,548,852 |
1,185,407 |
(228,217 |
) | 11,506,042 |
||||||||||||
Total Liabilities and Equity |
$ | 19,495,373 |
$ | 7,924,796 |
$ | (473,675 |
) | $ | 26,946,494 |
||||||||
December 31, 2019 | |||||||||||||||||
Consolidated |
Consolidated |
||||||||||||||||
Operating |
Blackstone |
Reclasses and |
|||||||||||||||
Partnerships |
Funds (a) |
Eliminations |
Consolidated |
||||||||||||||
Assets |
|||||||||||||||||
Cash and Cash Equivalents |
$ | 2,172,441 |
$ | — |
$ | — |
$ | 2,172,441 |
|||||||||
Cash Held by Blackstone Funds and Other |
— |
351,210 |
— |
351,210 |
|||||||||||||
Investments |
14,535,685 |
8,380,698 |
(634,701 |
) | 22,281,682 |
||||||||||||
Accounts Receivable |
754,703 |
220,372 |
— |
975,075 |
|||||||||||||
Due from Affiliates |
2,606,563 |
8,818 |
(20,508 |
) | 2,594,873 |
||||||||||||
Intangible Assets, Net |
397,508 |
— |
— |
397,508 |
|||||||||||||
Goodwill |
1,869,860 |
— |
— |
1,869,860 |
|||||||||||||
Other Assets |
381,289 |
1,204 |
— |
382,493 |
|||||||||||||
Right-of-Use Assets |
471,059 |
— |
— |
471,059 |
|||||||||||||
Deferred Tax Assets |
1,089,305 |
— |
— |
1,089,305 |
|||||||||||||
Total Assets |
$ | 24,278,413 |
$ | 8,962,302 |
$ | (655,209 |
) | $ | 32,585,506 |
||||||||
Liabilities and Equity |
|||||||||||||||||
Loans Payable |
$ | 4,600,856 |
$ | 6,479,867 |
$ | — |
$ | 11,080,723 |
|||||||||
Due to Affiliates |
885,655 |
509,681 |
(368,465 |
) | 1,026,871 |
||||||||||||
Accrued Compensation and Benefits |
3,796,044 |
— |
— |
3,796,044 |
|||||||||||||
Securities Sold, Not Yet Purchased |
20,256 |
55,289 |
— |
75,545 |
|||||||||||||
Repurchase Agreements |
— |
154,118 |
— |
154,118 |
|||||||||||||
Operating Lease Liabilities |
542,994 |
— |
— |
542,994 |
|||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
504,804 |
301,355 |
— |
806,159 |
|||||||||||||
Total Liabilities |
10,350,609 |
7,500,310 |
(368,465 |
) | 17,482,454 |
||||||||||||
Redeemable Non-Controlling Interests in Consolidated Entities |
22,002 |
65,649 |
— |
87,651 |
|||||||||||||
Equity |
|||||||||||||||||
Class A Common Stock |
7 |
— |
— |
7 |
|||||||||||||
Class B Common Stock |
— |
— |
— |
— |
|||||||||||||
Class C Common Stock |
— |
— |
— |
— |
|||||||||||||
Additional Paid-in-Capital |
6,428,647 |
283,339 |
(283,339 |
) | 6,428,647 |
||||||||||||
Retained Earnings |
609,625 |
3,405 |
(3,405 |
) | 609,625 |
||||||||||||
Accumulated Other Comprehensive Loss |
(28,495 |
) | — |
— |
(28,495 |
) | |||||||||||
Non-Controlling Interests in Consolidated Entities |
3,076,470 |
1,109,599 |
— |
4,186,069 |
|||||||||||||
Non-Controlling Interests in Blackstone Holdings |
3,819,548 |
— |
— |
3,819,548 |
|||||||||||||
Total Equity |
13,905,802 |
1,396,343 |
(286,744 |
) | 15,015,401 |
||||||||||||
Total Liabilities and Equity |
$ | 24,278,413 |
$ | 8,962,302 |
$ | (655,209 |
) | $ | 32,585,506 |
||||||||
(a) | The Consolidated Blackstone Funds consisted of the following: |
• | Real Estate. |
• | Private Equity. |
• | Hedge Fund Solutions. |
• | Credit & Insurance. sub-advises predominantly consist of loans and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. |
(a) | the fair value of the investments held by our carry funds and our side-by-side and co-investment entities managed by us, plus (1) the capital that we are entitled to call from investors in those funds and entities pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods, or (2) for certain credit-focused funds the amounts available to be borrowed under asset based credit facilities, |
(b) | the net asset value of (1) our hedge funds and real estate debt carry funds, BPP, certain co-investments managed by us, certain credit-focused funds, and our Hedge Fund Solutions drawdown funds (plus, in each case, the capital that we are entitled to call from investors in those funds, including commitments yet to commence their investment periods), and (2) our funds of hedge funds, our Hedge Fund Solutions registered investment companies, and BREIT, |
(c) | the invested capital, fair value or net asset value of assets we manage pursuant to separately managed accounts, |
(d) | the amount of debt and equity outstanding for our CLOs during the reinvestment period, |
(e) | the aggregate par amount of collateral assets, including principal cash, for our CLOs after the reinvestment period, |
(f) | the gross or net amount of assets (including leverage where applicable) for our credit-focused registered investment companies, and |
(g) | the fair value of common stock, preferred stock, convertible debt, or similar instruments issued by BXMT. |
(a) | for our Private Equity segment funds and Real Estate segment carry funds, including certain BREDS and Hedge Fund Solutions funds, the amount of capital commitments, remaining invested capital, fair value, net asset value or par value of assets held, depending on the fee terms of the fund, |
(b) | for our credit-focused carry funds, the amount of remaining invested capital (which may include leverage) or net asset value, depending on the fee terms of the fund, |
(c) | the remaining invested capital or fair value of assets held in co-investment vehicles managed by us on which we receive fees, |
(d) | the net asset value of our funds of hedge funds, hedge funds, BPP, certain co-investments managed by us, certain registered investment companies, BREIT, and certain of our Hedge Fund Solutions drawdown funds, |
(e) | the invested capital, fair value of assets or the net asset value we manage pursuant to separately managed accounts, |
(f) | the net proceeds received from equity offerings and accumulated core earnings of BXMT, subject to certain adjustments, |
(g) | the aggregate par amount of collateral assets, including principal cash, of our CLOs, and |
(h) | the gross amount of assets (including leverage) or the net assets (plus leverage where applicable) for certain of our credit-focused registered investment companies. |
Three Months Ended |
|||||||||||||||||
March 31, |
2020 vs. 2019 | ||||||||||||||||
2020 |
2019 |
$ |
% |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Revenues |
|||||||||||||||||
Management and Advisory Fees, Net |
$ | 934,832 |
$ | 809,726 |
$ | 125,106 |
15 |
% | |||||||||
Incentive Fees |
12,161 |
12,132 |
29 |
— |
|||||||||||||
Investment Income (Loss) |
|||||||||||||||||
Performance Allocations |
|||||||||||||||||
Realized |
167,530 |
242,375 |
(74,845 |
) | -31 |
% | |||||||||||
Unrealized |
(3,453,081 |
) | 663,999 |
(4,117,080 |
) | N/M |
|||||||||||
Principal Investments |
|||||||||||||||||
Realized |
48,695 |
73,261 |
(24,566 |
) | -34 |
% | |||||||||||
Unrealized |
(959,365 |
) | 169,044 |
(1,128,409 |
) | N/M |
|||||||||||
Total Investment Income (Loss) |
(4,196,221 |
) | 1,148,679 |
(5,344,900 |
) | N/M |
|||||||||||
Interest and Dividend Revenue |
35,084 |
44,084 |
(9,000 |
) | -20 |
% | |||||||||||
Other |
138,180 |
10,250 |
127,930 |
N/M |
|||||||||||||
Total Revenues |
(3,075,964 |
) | 2,024,871 |
(5,100,835 |
) | N/M |
|||||||||||
Expenses |
|||||||||||||||||
Compensation and Benefits |
|||||||||||||||||
Compensation |
476,543 |
471,397 |
5,146 |
1 |
% | ||||||||||||
Incentive Fee Compensation |
6,522 |
5,406 |
1,116 |
21 |
% | ||||||||||||
Performance Allocations Compensation |
|||||||||||||||||
Realized |
72,423 |
86,395 |
(13,972 |
) | -16 |
% | |||||||||||
Unrealized |
(1,397,378 |
) | 287,015 |
(1,684,393 |
) | N/M |
|||||||||||
Total Compensation and Benefits |
(841,890 |
) | 850,213 |
(1,692,103 |
) | N/M |
|||||||||||
General, Administrative and Other |
157,566 |
146,062 |
11,504 |
8 |
% | ||||||||||||
Interest Expense |
41,644 |
42,002 |
(358 |
) | -1 |
% | |||||||||||
Fund Expenses |
4,605 |
2,887 |
1,718 |
60 |
% | ||||||||||||
Total Expenses |
(638,075 |
) | 1,041,164 |
(1,679,239 |
) | N/M |
|||||||||||
Other Income (Loss) |
|||||||||||||||||
Change in Tax Receivable Agreement Liability |
(595 |
) | — |
(595 |
) | N/M |
|||||||||||
Net Gains (Losses) from Fund Investment Activities |
(327,374 |
) | 130,325 |
(457,699 |
) | N/M |
|||||||||||
Total Other Income (Loss) |
(327,969 |
) | 130,325 |
(458,294 |
) | N/M |
|||||||||||
Income (Loss) Before Provision (Benefit) for Taxes |
(2,765,858 |
) | 1,114,032 |
(3,879,890 |
) | N/M |
|||||||||||
Provision (Benefit) for Taxes |
(158,703 |
) | 41,155 |
(199,858 |
) | N/M |
|||||||||||
Net Income (Loss) |
(2,607,155 |
) | 1,072,877 |
(3,680,032 |
) | N/M |
|||||||||||
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities |
(15,469 |
) | 2,480 |
(17,949 |
) | N/M |
|||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities |
(645,077 |
) |
186,833 |
(831,910 |
) |
N/M |
|||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings |
(880,117 |
) |
402,260 |
(1,282,377 |
) |
N/M |
|||||||||||
Net Income (Loss) Attributable to The Blackstone Group Inc. |
$ | (1,066,492 |
) | $ | 481,304 |
$ | (1,547,796 |
) | N/M |
||||||||
Three Months Ended |
||||||||
March 31, |
||||||||
2020 |
2019 |
|||||||
(Dollars in Thousands) |
||||||||
Income (Loss) Before Provision (Benefit) for Taxes |
$ | (2,765,858 |
) | $ | 1,114,032 |
|||
Provision (Benefit) for Taxes |
$ | (158,703 |
) | $ | 41,155 |
|||
Effective Income Tax Rate |
5.7 |
% | 3.7 |
% |
Three Months Ended |
2020 |
|||||||||||
March 31, |
vs. |
|||||||||||
2020 |
2019 |
2019 |
||||||||||
Statutory U.S. Federal Income Tax Rate |
21.0 |
% | 21.0 |
% | — |
|||||||
Income Passed Through to Common Shareholders and Non-Controlling Interest Holders (a) |
-13.1 |
% | -17.5 |
% | 4.4 |
% | ||||||
State and Local Income Taxes |
1.4 |
% | 0.9 |
% | 0.5 |
% | ||||||
Change in Valuation Allowance |
-4.3 |
% | — |
-4.3 |
% | |||||||
Other |
0.7 |
% | -0.7 |
% | 1.4 |
% | ||||||
Effective Income Tax Rate |
5.7 |
% | 3.7 |
% | 2.0 |
% | ||||||
(a) | Includes income that was not taxable to Blackstone and its subsidiaries. Such income was directly taxable to shareholders of Blackstone’s Class A common stock for the period prior to the Conversion and remains taxable to Blackstone’s non-controlling interest holders. |
Note: | Totals may not add due to rounding. |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2020 |
March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Private |
Hedge Fund |
Credit & |
Private |
Hedge Fund |
Credit & |
||||||||||||||||||||||||||||||||||||
Real Estate |
Equity |
Solutions |
Insurance |
Total |
Real Estate |
Equity |
Solutions |
Insurance |
Total |
||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
Fee-Earning Assets Under Management |
|||||||||||||||||||||||||||||||||||||||||
Balance, Beginning of Period |
$ | 128,214,137 |
$ | 97,773,964 |
$ | 75,636,004 |
$ | 106,450,747 |
$ | 408,074,852 |
$ | 93,252,724 |
$ | 80,008,166 |
$ | 72,280,606 |
$ | 96,986,011 |
$ | 342,527,507 |
|||||||||||||||||||||
Inflows, including Commitments (a) |
9,428,789 |
35,326,030 |
2,366,963 |
3,635,845 |
50,757,627 |
2,733,865 |
8,662,716 |
1,634,506 |
3,865,578 |
16,896,665 |
|||||||||||||||||||||||||||||||
Outflows, including Distributions (b) |
(1,010,896 |
) | (3,612,449 |
) | (2,651,992 |
) | (2,740,684 |
) | (10,016,021 |
) | (264,682 |
) | (728,583 |
) | (2,067,733 |
) | (3,242,104 |
) | (6,303,102 |
) | |||||||||||||||||||||
Net Inflows (Outflows) |
8,417,893 |
31,713,581 |
(285,029 |
) | 895,161 |
40,741,606 |
2,469,183 |
7,934,133 |
(433,227 |
) | 623,474 |
10,593,563 |
|||||||||||||||||||||||||||||
Realizations (c) |
(2,697,761 |
) | (925,354 |
) | (134,730 |
) | (1,430,127 |
) | (5,187,972 |
) | (2,213,818 |
) | (2,561,011 |
) | (164,436 |
) | (966,850 |
) | (5,906,115 |
) | |||||||||||||||||||||
Market Activity (d)(g) |
(3,509,807 |
) | (261,389 |
) | (7,001,810 |
) | (9,800,443 |
) | (20,573,449 |
) | 714,945 |
65,580 |
1,964,071 |
3,033,843 |
5,778,439 |
||||||||||||||||||||||||||
Balance, End of Period (e) |
$ | 130,424,462 |
$ | 128,300,802 |
$ | 68,214,435 |
$ | 96,115,338 |
$ | 423,055,037 |
$ | 94,223,034 |
$ | 85,446,868 |
$ | 73,647,014 |
$ | 99,676,478 |
$ | 352,993,394 |
|||||||||||||||||||||
Increase (Decrease) |
$ | 2,210,325 |
$ | 30,526,838 |
$ | (7,421,569 |
) | $ | (10,335,409 |
) | $ | 14,980,185 |
$ | 970,310 |
$ | 5,438,702 |
$ | 1,366,408 |
$ | 2,690,467 |
$ | 10,465,887 |
|||||||||||||||||||
Increase (Decrease) |
2 |
% | 31 |
% | -10 |
% | -10 |
% | 4 |
% | 1 |
% | 7 |
% | 2 |
% | 3 |
% | 3 |
% | |||||||||||||||||||||
Annualized Base Management Fee Rate (f) |
1.15 |
% | 0.90 |
% | 0.78 |
% | 0.57 |
% | 0.88 |
% | 1.11 |
% | 1.06 |
% | 0.75 |
% | 0.57 |
% | 0.87 |
% |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
March 31, 2020 |
March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||
Private |
Hedge Fund |
Credit & |
Private |
Hedge Fund |
Credit & |
||||||||||||||||||||||||||||||||||||
Real Estate |
Equity |
Solutions |
Insurance |
Total |
Real Estate |
Equity |
Solutions |
Insurance |
Total |
||||||||||||||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||||||||||||||||||
Total Assets Under Management |
|||||||||||||||||||||||||||||||||||||||||
Balance, Beginning of Period |
$ | 163,156,064 |
$ | 182,886,109 |
$ | 80,738,112 |
$ | 144,342,178 |
$ | 571,122,463 |
$ | 136,247,229 |
$ | 130,665,286 |
$ | 77,814,516 |
$ | 127,515,286 |
$ | 472,242,317 |
|||||||||||||||||||||
Inflows, including Commitments (a) |
12,653,175 |
8,868,851 |
3,246,661 |
2,543,821 |
27,312,508 |
5,033,851 |
28,471,460 |
2,568,943 |
6,832,870 |
42,907,124 |
|||||||||||||||||||||||||||||||
Outflows, including Distributions (b) |
(793,688 |
) | (398,476 |
) | (2,881,283 |
) | (2,841,299 |
) | (6,914,746 |
) | (1,150,181 |
) | (243,000 |
) | (2,107,618 |
) | (4,555,183 |
) | (8,055,982 |
) | |||||||||||||||||||||
Net Inflows (Outflows) |
11,859,487 |
8,470,375 |
365,378 |
(297,478 |
) | 20,397,762 |
3,883,670 |
28,228,460 |
461,325 |
2,277,687 |
34,851,142 |
||||||||||||||||||||||||||||||
Realizations (c) |
(2,518,796 |
) | (2,031,106 |
) | (138,987 |
) | (1,699,805 |
) | (6,388,694 |
) | (3,058,141 |
) | (3,742,658 |
) | (186,558 |
) | (1,272,836 |
) | (8,260,193 |
) | |||||||||||||||||||||
Market Activity (d)(h) |
(11,561,906 |
) | (14,629,495 |
) | (7,243,711 |
) | (13,689,134 |
) | (47,124,246 |
) | 3,261,285 |
3,837,660 |
2,093,489 |
3,752,062 |
12,944,496 |
||||||||||||||||||||||||||
Balance, End of Period (e) |
$ | 160,934,849 |
$ | 174,695,883 |
$ | 73,720,792 |
$ | 128,655,761 |
$ | 538,007,285 |
$ | 140,334,043 |
$ | 158,988,748 |
$ | 80,182,772 |
$ | 132,272,199 |
$ | 511,777,762 |
|||||||||||||||||||||
Increase (Decrease) |
$ | (2,221,215 |
) | $ | (8,190,226 |
) | $ | (7,017,320 |
) | $ | (15,686,417 |
) | $ | (33,115,178 |
) | $ | 4,086,814 |
$ | 28,323,462 |
$ | 2,368,256 |
$ | 4,756,913 |
$ | 39,535,445 |
||||||||||||||||
Increase (Decrease) |
-1 |
% | -4 |
% | -9 |
% | -11 |
% | -6 |
% | 3 |
% | 22 |
% | 3 |
% | 4 |
% | 8 |
% |
(a) | Inflows represent contributions, capital raised, other increases in available capital (recallable capital, increased side-by-side commitments), purchases, inter-segment allocations and acquisitions. |
(b) | Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side commitments). |
(c) | Realizations represent realizations from the disposition of assets or capital returned to investors from CLOs. |
(d) | Market activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. |
(e) | Assets Under Management are reported in the segment where the assets are managed. |
(f) | Effective January 1, 2020, Blackstone updated its calculation methodology as follows: annualized year to date Base Management Fee divided by the average of the beginning of year and each quarter end’s Fee-Earning Assets Under Management in the reporting period. Prior periods have been recast for this update. |
(g) | For the three months ended March 31, 2020, the impact to Fee-Earning Assets Under Management due to foreign exchange rate fluctuations was $(758.4) million, $(275.1) million and $(1.0) billion for the Real Estate, Credit & Insurance and Total segments, respectively. For the three months ended March 31, 2019, such impact was $(232.4) million, $(110.3) million and $(342.7) million for the Real Estate, Credit & Insurance and Total segments, respectively. |
(h) | For the three months ended March 31, 2020, the impact to Total Assets Under Management due to foreign exchange rate fluctuations was $(1.5) billion, $(601.6) million, $(402.0) million and $(2.5) billion for the Real Estate, Private Equity, Credit & Insurance and Total segments, respectively. For the three months ended March 31, 2019, such impact was $(428.3) million, $171.7 million, $(107.6) million and $(364.3) million for the Real Estate, Private Equity, Credit & Insurance and Total segments, respectively. |
• | Inflows of $50.8 billion related to: |
o | $35.3 billion in our Private Equity segment driven by $29.0 billion from corporate private equity, related to the commencement of BCP VIII and BEP III’s investment periods, $4.0 billion from BXLS, related to the commencement of BXLS V’s investment period, $1.0 billion from Tactical Opportunities, $963.6 million from multi-asset products and $337.9 million from Strategic Partners, |
o | $9.4 billion in our Real Estate segment driven by $5.2 billion from BREIT, $2.3 billion from BREDS, $1.1 billion from BREP opportunistic funds and co-investment, $428.7 million from BPP U.S. and co-investment and $194.9 million from BPP Europe, |
o | $3.6 billion in our Credit & Insurance segment driven by (a) $1.7 billion from direct lending, (b) $865.9 million from certain long only and MLP strategies, net of $269.4 million of intra-segment allocations from BIS, (c) $568.1 million from BIS, (d) $545.8 million from mezzanine funds, (e) $533.7 million from our distressed strategies and (f) $500.6 million of capital raised from CLOs, (g) all partially offset by $1.3 billion of allocations to various strategies in other segments, and |
o | $2.4 billion in our Hedge Fund Solutions segment driven by $1.7 billion from individual investor and specialized solutions, $495.8 million from customized solutions and $189.9 million from commingled products. |
• | Market activity of $(20.6) billion driven in large part by the market impacts of COVID-19 on the fair value components of Fee-Earning Assets Under Management unless otherwise stated: |
o | $9.8 billion of market depreciation in our Credit & Insurance segment driven by $7.8 billion of market depreciation from certain long only and MLP strategies, $752.8 million of market depreciation from distressed strategies and $523.9 million of market depreciation from direct lending, |
o | $7.0 billion of market depreciation in our Hedge Fund Solutions segment driven by returns from BAAM’s Principal Solutions Composite of -8.6% gross (-8.7% net), and |
o | $3.5 billion of market depreciation in our Real Estate segment driven by $2.4 billion of depreciation from our core+ real estate funds ($1.8 billion from market depreciation and $580.9 million from foreign exchange depreciation), $947.5 million of market depreciation from BREDS and $177.6 million of foreign exchange depreciation from BREP opportunistic funds and co-investment. |
• | Outflows of $10.0 billion primarily attributable to: |
o | $3.6 billion in our Private Equity segment driven by $3.0 billion from corporate private equity due to the end of BCP VII and BEP II’s investment periods, and $497.5 million from BXLS due to the end of Clarus IV’s investment period, |
o | $2.7 billion in our Credit & Insurance segment driven by $2.5 billion from certain long only and MLP strategies, |
o | $2.7 billion in our Hedge Fund Solutions segment driven by $1.5 billion from individual investor and specialized solutions and $1.2 billion from customized solutions, and |
o | $1.0 billion in our Real Estate segment driven by $619.0 million from BREIT and $359.0 million from BREDS. |
• | Realizations of $5.2 billion primarily driven by: |
o | $2.7 billion in our Real Estate segment driven by $1.3 billion from BREDS, $973.3 million from core+ real estate funds and $432.3 million from BREP opportunistic funds and co-investment, |
o | $1.4 billion in our Credit & Insurance segment driven by $395.7 million from mezzanine funds, $342.6 million from distressed strategies, $284.6 million from direct lending, $235.6 million from CLOs and $171.6 million from certain long only and MLP strategies, and |
o | $925.4 million in our Private Equity segment driven by $328.1 million from corporate private equity, $309.4 million from Strategic Partners and $287.9 million from Tactical Opportunities. |
• | Market activity of $(47.1) billion driven in large part by the market impacts of COVID-19 on the fair value components of Total Assets Under Management unless otherwise noted: |
o | $14.6 billion of market depreciation in our Private Equity segment driven by carrying value decreases in corporate private equity and Tactical Opportunities of -21.6% and -15.9%, respectively, which included $601.6 million of foreign exchange depreciation across the segment, |
o | $13.7 billion of market depreciation in our Credit & Insurance segment driven by $8.2 billion of market depreciation from certain long only and MLP strategies, $2.6 billion of market depreciation from distressed strategies, $1.1 billion from direct lending ($1.0 billion from market depreciation and $123.5 million from foreign exchange depreciation) and $1.0 billion of market depreciation from mezzanine funds, |
o | $11.6 billion of market depreciation in our Real Estate segment driven by carrying value decreases in our opportunistic and core+ real estate funds of -8.8% and -3.9%, respectively, which includes $1.5 billion of foreign exchange depreciation across the segment, and |
o | $7.2 billion of market depreciation in our Hedge Fund Solutions segment driven by reasons noted above in Fee-Earning Assets Under Management. |
• | Outflows of $6.9 billion primarily attributable to: |
o | $2.9 billion in our Hedge Fund Solutions segment driven by $1.5 billion from individual investor and specialized solutions, $1.2 billion from customized solutions and $127.7 million from commingled products, |
o | $2.8 billion in our Credit & Insurance segment driven by $2.6 billion from certain long only and MLP strategies and $126.6 million from direct lending, and |
o | $793.7 million in our Real Estate segment driven by redemptions from BREDS liquid funds, BREIT and BPP U.S. |
• | Realizations of $6.4 billion primarily driven by: |
o | $2.5 billion in our Real Estate segment driven by $1.0 billion from BREP opportunistic and co-investment, $993.1 million from core+ real estate funds and $484.2 million from BREDS, |
o | $2.0 billion in our Private Equity segment driven by continued disposition activity across the segment, mainly related to $762.9 million from corporate private equity, $648.6 million from Tactical Opportunities and $611.1 million from Strategic Partners, and |
o | $1.7 billion in our Credit & Insurance segment driven by $560.7 million from mezzanine funds, $458.7 million from direct lending, $256.0 million from our distressed strategies and $188.8 million from certain long only and MLP strategies. |
• | Inflows of $27.3 billion primarily related to: |
o | $12.7 billion in our Real Estate segment driven by $5.2 billion from BREIT, $4.3 billion from BREDS, $1.0 billion from BREP Europe VI, $464.8 million from BPP U.S. and $359.2 million from BPP Europe and co-investment, |
o | $8.9 billion in our Private Equity segment driven by $6.4 billion from corporate private equity, $1.1 billion from BXLS, $979.4 million from Tactical Opportunities and $584.2 million from Strategic Partners, |
o | $3.2 billion in our Hedge Fund Solutions segment driven by $2.0 billion from individual investor and specialized solutions, $967.2 million from customized solutions and $239.4 million from commingled products, and |
o | $2.5 billion in our Credit & Insurance segment driven by (a) $1.2 billion from direct lending, (b) $1.2 billion from certain long only and MLP strategies, net of $403.4 million of intra-segment allocations from BIS, (c) $568.1 million from BIS and (d) $498.2 million of capital raised from CLOs, (e) all partially offset by $1.2 billion of allocations to various strategies in other segments. |
Note: | Totals may not add due to rounding. |
(a) | Represents illiquid drawdown funds, a component of Perpetual Capital and fee-paying co-investments; includes fee-paying third party capital as well as general partner and employee capital that does not earn fees. Amounts are reduced by outstanding capital commitments, for which capital has not yet been invested. |
March 31, |
||||||||
2019 |
2020 |
|||||||
(Dollars in Thousands) |
||||||||
Dry Powder Available for Investment |
||||||||
Real Estate |
$ | 41,128,351 |
$ | 44,636,799 |
||||
Private Equity |
64,005,647 |
75,897,807 |
||||||
Hedge Fund Solutions |
3,307,835 |
3,058,151 |
||||||
Credit & Insurance |
24,191,898 |
27,927,065 |
||||||
$ | 132,633,731 |
$ | 151,519,822 |
|||||
March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Millions) | |||||||||
Real Estate |
|||||||||
BREP IV |
$ | 8 |
$ | 1 |
|||||
BREP V |
— |
62 |
|||||||
BREP VI |
51 |
88 |
|||||||
BREP VII |
309 |
552 |
|||||||
BREP VIII |
517 |
464 |
|||||||
BREP International II |
— |
7 |
|||||||
BREP Europe IV |
123 |
209 |
|||||||
BREP Europe V |
110 |
133 |
|||||||
BREP Asia I |
85 |
136 |
|||||||
BPP |
196 |
245 |
|||||||
BREIT |
— |
11 |
|||||||
BREDS |
2 |
17 |
|||||||
BTAS |
45 |
38 |
|||||||
Total Real Estate (a) |
1,446 |
1,962 |
|||||||
Private Equity |
|||||||||
BCP IV |
23 |
42 |
|||||||
BCP VI |
283 |
789 |
|||||||
BCP VII |
115 |
256 |
|||||||
BCP Asia |
14 |
6 |
|||||||
BEP I |
— |
131 |
|||||||
BEP II |
— |
69 |
|||||||
BCEP |
33 |
21 |
|||||||
Tactical Opportunities |
36 |
157 |
|||||||
Strategic Partners |
136 |
109 |
|||||||
Life Sciences |
7 |
1 |
|||||||
BTAS/Other |
73 |
51 |
|||||||
Total Private Equity (a) |
720 |
1,630 |
|||||||
Hedge Fund Solutions |
15 |
24 |
|||||||
Credit & Insurance |
6 |
221 |
|||||||
Total Blackstone Net Accrued Performance Revenues |
$ | 2,187 |
$ | 3,837 |
|||||
Note: | Totals may not add due to rounding. |
(a) | Real Estate and Private Equity include Co-Investments, as applicable. |
Note: | Totals may not add due to rounding. |
Unrealized Investments |
Realized Investments |
Total Investments |
|||||||||||||||||||||||||||||||||
Fund (Investment Period |
Committed |
Available |
|
% |
|
|
|
Net IRRs (d) | |||||||||||||||||||||||||||
Beginning Date / Ending Date) (a) |
Capital |
Capital (b) |
Value |
MOIC (c) |
|
Public |
|
Value |
MOIC (c) |
|
Value |
MOIC (c) |
|
Realized |
|
Total |
| ||||||||||||||||||
(Dollars in Thousands, Except Where Noted) |
|||||||||||||||||||||||||||||||||||
Real Estate |
|||||||||||||||||||||||||||||||||||
Pre-BREP |
$ 140,714 |
$ — |
$ — |
N/A |
— |
$ 345,190 |
2.5x |
$ 345,190 |
2.5x |
33 |
% | 33 |
% | ||||||||||||||||||||||
BREP I (Sep 1994 / Oct 1996) |
380,708 |
— |
— |
N/A |
— |
1,327,708 |
2.8x |
1,327,708 |
2.8x |
40 |
% | 40 |
% | ||||||||||||||||||||||
BREP II (Oct 1996 / Mar 1999) |
1,198,339 |
— |
— |
N/A |
— |
2,531,614 |
2.1x |
2,531,614 |
2.1x |
19 |
% | 19 |
% | ||||||||||||||||||||||
BREP III (Apr 1999 / Apr 2003) |
1,522,708 |
— |
— |
N/A |
— |
3,330,406 |
2.4x |
3,330,406 |
2.4x |
21 |
% | 21 |
% | ||||||||||||||||||||||
BREP IV (Apr 2003 / Dec 2005) |
2,198,694 |
— |
50,342 |
0.1x |
25 |
% | 4,521,164 |
2.2x |
4,571,506 |
1.7x |
28 |
% | 12 |
% | |||||||||||||||||||||
BREP V (Dec 2005 / Feb 2007) |
5,539,418 |
— |
150,992 |
0.6x |
37 |
% | 13,040,016 |
2.4x |
13,191,008 |
2.3x |
12 |
% | 11 |
% | |||||||||||||||||||||
BREP VI (Feb 2007 / Aug 2011) |
11,060,444 |
— |
646,626 |
2.3x |
73 |
% | 27,045,357 |
2.5x |
27,691,983 |
2.5x |
13 |
% | 13 |
% | |||||||||||||||||||||
BREP VII (Aug 2011 / Apr 2015) |
13,496,823 |
1,874,491 |
6,063,694 |
1.4x |
7 |
% | 22,735,792 |
2.1x |
28,799,486 |
1.9x |
22 |
% | 15 |
% | |||||||||||||||||||||
BREP VIII (Apr 2015 / Jun 2019) |
16,545,433 |
3,052,617 |
16,560,812 |
1.3x |
— |
7,110,842 |
1.7x |
23,671,654 |
1.4x |
26 |
% | 12 |
% | ||||||||||||||||||||||
*BREP IX (Jun 2019 / Dec 2024) |
20,891,657 |
16,015,834 |
4,813,344 |
1.0x |
17 |
% | 140,918 |
1.8x |
4,954,262 |
1.0x |
N/M |
N/M |
|||||||||||||||||||||||
Total Global BREP |
$ 72,974,938 |
$ 20,942,942 |
$ 28,285,810 |
1.2x |
6 |
% | $ 82,129,007 |
2.2x |
$110,414,817 |
1.9x |
18 |
% | 15 |
% | |||||||||||||||||||||
BREP Int’l (Jan 2001 / Sep 2005) |
€ 824,172 |
€ — |
€ — |
N/A |
— |
€ 1,373,170 |
2.1x |
€ 1,373,170 |
2.1x |
23 |
% | 23 |
% | ||||||||||||||||||||||
BREP Int’l II (Sep 2005 / Jun 2008) (e) |
1,629,748 |
— |
3,566 |
N/A |
— |
2,572,920 |
1.8x |
2,576,486 |
1.8x |
8 |
% | 8 |
% | ||||||||||||||||||||||
BREP Europe III (Jun 2008 / Sep 2013) |
3,205,167 |
469,493 |
446,619 |
0.7x |
— |
5,737,320 |
2.5x |
6,183,939 |
2.1x |
20 |
% | 14 |
% | ||||||||||||||||||||||
BREP Europe IV (Sep 2013 / Dec 2016) |
6,709,145 |
1,351,071 |
2,742,370 |
1.4x |
— |
8,988,619 |
2.0x |
11,730,989 |
1.8x |
23 |
% | 16 |
% | ||||||||||||||||||||||
BREP Europe V (Dec 2016 / Oct 2019) |
7,945,251 |
1,762,669 |
7,309,063 |
1.2x |
— |
721,076 |
2.7x |
8,030,139 |
1.3x |
53 |
% | 9 |
% | ||||||||||||||||||||||
*BREP Europe VI (Oct 2019 / Apr 2025) |
9,797,734 |
8,833,563 |
994,596 |
1.0x |
24 |
% | — |
N/A |
994,596 |
1.0x |
N/M |
N/M |
|||||||||||||||||||||||
Total BREP Europe |
€ 30,111,217 |
€ 12,416,796 |
€ 11,496,214 |
1.2x |
2 |
% | € 19,393,105 |
2.1x |
€ 30,889,319 |
1.6x |
16 |
% | 13 |
% | |||||||||||||||||||||
BREP Asia I (Jun 2013 / Dec 2017) |
$ 5,096,753 |
$ 1,728,262 |
$ 3,186,403 |
1.3x |
13 |
% | $ 4,072,708 |
1.9x |
$ 7,259,111 |
1.6x |
21 |
% | 12 |
% | |||||||||||||||||||||
*BREP Asia II (Dec 2017 / Jun 2023) |
7,302,307 |
4,768,630 |
2,657,881 |
1.1x |
— |
120,378 |
1.6x |
2,778,259 |
1.1x |
N/M |
-2 |
% | |||||||||||||||||||||||
BREP Co-Investment (f) |
7,055,974 |
170,047 |
1,535,066 |
2.1x |
— |
13,284,359 |
2.1x |
14,819,425 |
2.1x |
15 |
% | 16 |
% | ||||||||||||||||||||||
Total BREP |
$125,853,226 |
$ 41,306,848 |
$ 48,901,532 |
1.2x |
5 |
% | $124,071,007 |
2.2x |
$172,972,539 |
1.8x |
17 |
% | 15 |
% | |||||||||||||||||||||
*Core+ BPP (Various) (g) |
$ N/A |
$ N/A |
$31,614,603 |
N/A |
— |
$ 6,726,049 |
N/A |
$ 38,340,652 |
N/A |
N/M |
8 |
% | |||||||||||||||||||||||
*Core+ BREIT (Various) (h) |
N/A |
N/A |
16,287,116 |
N/A |
— |
353,170 |
N/A |
16,640,286 |
N/A |
N/M |
6 |
% | |||||||||||||||||||||||
*BREDS High-Yield (Various) (i) |
16,528,666 |
7,240,067 |
2,692,832 |
1.0x |
— |
12,248,508 |
1.3x |
14,941,340 |
1.2x |
11 |
% | 9 |
% |
Unrealized Investments |
Realized Investments |
Total Investments |
|||||||||||||||||||||||||||||||||||||||||||
Fund (Investment Period |
Committed |
Available |
% |
Net IRRs (d) | |||||||||||||||||||||||||||||||||||||||||
Beginning Date / Ending Date) (a) |
Capital |
Capital (b) |
Value |
MOIC (c) |
Public |
Value |
MOIC (c) |
Value |
MOIC (c) |
Realized |
Total |
||||||||||||||||||||||||||||||||||
(Dollars in Thousands, Except Where Noted) | |||||||||||||||||||||||||||||||||||||||||||||
Private Equity |
|||||||||||||||||||||||||||||||||||||||||||||
Corporate Private Equity |
|||||||||||||||||||||||||||||||||||||||||||||
BCP I (Oct 1987 / Oct 1993) |
$ | 859,081 |
$ | — |
$ | — |
N/A |
— |
$ | 1,741,738 |
2.6x |
$ | 1,741,738 |
2.6x |
19 |
% | 19 |
% | |||||||||||||||||||||||||||
BCP II (Oct 1993 / Aug 1997) |
1,361,100 |
— |
— |
N/A |
— |
3,256,819 |
2.5x |
3,256,819 |
2.5x |
32 |
% | 32 |
% | ||||||||||||||||||||||||||||||||
BCP III (Aug 1997 / Nov 2002) |
3,967,422 |
— |
— |
N/A |
— |
9,184,688 |
2.3x |
9,184,688 |
2.3x |
14 |
% | 14 |
% | ||||||||||||||||||||||||||||||||
BCOM (Jun 2000 / Jun 2006) |
2,137,330 |
24,575 |
13,571 |
N/A |
— |
2,953,649 |
1.4x |
2,967,220 |
1.4x |
6 |
% | 6 |
% | ||||||||||||||||||||||||||||||||
BCP IV (Nov 2002 / Dec 2005) |
6,773,182 |
197,294 |
182,216 |
2.5x |
— |
21,417,821 |
2.9x |
21,600,037 |
2.9x |
36 |
% | 36 |
% | ||||||||||||||||||||||||||||||||
BCP V (Dec 2005 / Jan 2011) |
21,013,658 |
1,039,805 |
547,749 |
0.5x |
37 |
% | 37,166,513 |
1.9x |
37,714,262 |
1.9x |
9 |
% | 8 |
% | |||||||||||||||||||||||||||||||
BCP VI (Jan 2011 / May 2016) |
15,192,985 |
1,462,121 |
8,803,625 |
1.2x |
37 |
% | 15,459,280 |
2.0x |
24,262,905 |
1.6x |
18 |
% | 9 |
% | |||||||||||||||||||||||||||||||
BCP VII (May 2016 / Feb 2020) |
18,814,389 |
3,712,977 |
16,769,010 |
1.2x |
N/M |
1,684,779 |
1.8x |
18,453,789 |
1.2x |
47 |
% | 9 |
% | ||||||||||||||||||||||||||||||||
*BCP VIII (Feb 2020 / Feb 2026) |
25,519,504 |
25,519,504 |
— |
N/A |
— |
— |
N/A |
— |
N/A |
N/A |
N/A |
||||||||||||||||||||||||||||||||||
Energy I (Aug 2011 / Feb 2015) |
2,435,454 |
204,075 |
821,842 |
0.8x |
45 |
% | 2,744,575 |
1.9x |
3,566,417 |
1.5x |
17 |
% | 8 |
% | |||||||||||||||||||||||||||||||
Energy II (Feb 2015 / Feb 2020) |
4,918,748 |
328,306 |
3,017,136 |
0.7x |
7 |
% | 309,888 |
2.0x |
3,327,024 |
0.7x |
64 |
% | -24 |
% | |||||||||||||||||||||||||||||||
*Energy III (Feb 2020 / Feb 2026) |
4,218,419 |
3,588,893 |
(82,173 |
) | N/M |
N/M |
— |
N/A |
(82,173 |
) | N/M |
N/A |
N/A |
||||||||||||||||||||||||||||||||
*BCP Asia (Dec 2017 / Dec 2023) |
2,421,776 |
1,303,205 |
1,013,043 |
1.3x |
1 |
% | 54,308 |
1.7x |
1,067,351 |
1.3x |
88 |
% | 15 |
% | |||||||||||||||||||||||||||||||
*Core Private Equity (Jan 2017 / Jan 2021) (j) |
4,756,716 |
1,384,441 |
4,079,837 |
1.2x |
— |
418,053 |
1.6x |
4,497,890 |
1.2x |
36 |
% | 10 |
% | ||||||||||||||||||||||||||||||||
Total Corporate Private Equity |
$ | 114,389,764 |
$ | 38,765,196 |
$ | 35,165,856 |
1.1x |
11 |
% | $ | 96,392,111 |
2.1x |
$ | 131,557,967 |
1.7x |
16 |
% | 14 |
% | ||||||||||||||||||||||||||
Tactical Opportunities |
|||||||||||||||||||||||||||||||||||||||||||||
*Tactical Opportunities (Various) |
$ | 22,572,493 |
$ | 8,879,110 |
$ | 8,426,422 |
0.9x |
9 |
% | $ | 9,481,153 |
1.7x |
$ | 17,907,575 |
1.2x |
18 |
% | 5 |
% | ||||||||||||||||||||||||||
*Tactical Opportunities Co-Investment and Other (Various) |
8,514,502 |
2,297,930 |
5,065,155 |
1.2x |
3 |
% | 1,988,734 |
1.6x |
7,053,889 |
1.3x |
23 |
% | 11 |
% | |||||||||||||||||||||||||||||||
Total Tactical Opportunities |
$ | 31,086,995 |
$ | 11,177,040 |
$ | 13,491,577 |
1.0x |
7 |
% | $ | 11,469,887 |
1.7x |
$ | 24,961,464 |
1.3x |
19 |
% | 7 |
% | ||||||||||||||||||||||||||
Strategic Partners (Secondaries) |
|||||||||||||||||||||||||||||||||||||||||||||
Strategic Partners I-V (Various) (k) |
$ | 11,865,053 |
$ | 1,713,744 |
$ | 970,995 |
N/M |
— |
$ | 16,803,497 |
N/M |
$ | 17,774,492 |
1.5x |
N/A |
13 |
% | ||||||||||||||||||||||||||||
Strategic Partners VI (Apr 2014 / Apr 2016) (k) |
4,362,750 |
1,164,549 |
1,455,316 |
N/M |
— |
3,171,774 |
N/M |
4,627,090 |
1.5x |
N/A |
15 |
% | |||||||||||||||||||||||||||||||||
Strategic Partners VII (May 2016 / Mar 2019) (k) |
7,489,970 |
2,438,824 |
5,397,627 |
N/M |
— |
1,754,124 |
N/M |
7,151,751 |
1.5x |
N/A |
21 |
% | |||||||||||||||||||||||||||||||||
*Strategic Partners Real Assets II (May 2017 / Mar 2022) (k) |
1,749,807 |
618,582 |
811,051 |
N/M |
— |
349,039 |
N/M |
1,160,090 |
1.2x |
N/A |
16 |
% | |||||||||||||||||||||||||||||||||
*Strategic Partners VIII (Mar 2019 / Jul 2023) (k) |
10,763,600 |
5,424,702 |
3,263,413 |
N/M |
— |
80,727 |
N/M |
3,344,140 |
1.4x |
N/A |
N/M |
||||||||||||||||||||||||||||||||||
*Strategic Partners Real Estate, SMA and |
|||||||||||||||||||||||||||||||||||||||||||||
Other (Various) (k) |
6,840,060 |
2,189,640 |
2,553,670 |
N/M |
— |
1,256,577 |
N/M |
3,810,247 |
1.3x |
N/A |
16 |
% | |||||||||||||||||||||||||||||||||
Total Strategic Partners (Secondaries) |
$ | 43,071,240 |
$ | 13,550,041 |
$ | 14,452,072 |
N/M |
— |
$ | 23,415,738 |
N/M |
$ | 37,867,810 |
1.5x |
N/A |
14 |
% | ||||||||||||||||||||||||||||
*Infrastructure (Various) |
$ | 13,659,163 |
$ | 11,309,149 |
$ | 2,131,958 |
0.9x |
52 |
% | $ | — |
N/A |
$ | 2,131,958 |
0.9x |
N/A |
-18 |
% | |||||||||||||||||||||||||||
Life Sciences |
|||||||||||||||||||||||||||||||||||||||||||||
Clarus IV (Jan 2018 / Jan 2020) |
910,000 |
470,576 |
554,463 |
1.4x |
3 |
% | 4,992 |
1.2x |
559,455 |
1.4x |
18 |
% | 23 |
% | |||||||||||||||||||||||||||||||
*BXLS V (Jan 2020 / Jan 2025) |
4,270,552 |
4,037,552 |
21,803 |
1.1x |
— |
— |
N/A |
21,803 |
1.1x |
N/A |
N/M |
Unrealized Investments |
Realized Investments |
Total Investments |
|||||||||||||||||||||||||||||||||
Fund (Investment Period |
Committed |
Available |
% |
Net IRRs (d) | |||||||||||||||||||||||||||||||
Beginning Date / Ending Date) (a) |
Capital |
Capital (b) |
Value |
MOIC (c) |
Public |
Value |
MOIC (c) |
Value |
MOIC (c) |
Realized |
Total |
||||||||||||||||||||||||
(Dollars in Thousands, Except Where Noted) |
|||||||||||||||||||||||||||||||||||
Credit (l) |
|||||||||||||||||||||||||||||||||||
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011) |
$ 2,000,000 |
$ 97,114 |
$ 15,513 |
0.8x |
— |
$ 4,772,316 |
1.6x |
$ 4,787,829 |
1.6x |
N/A |
17 |
% | |||||||||||||||||||||||
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016) |
4,120,000 |
1,033,255 |
846,611 |
0.6x |
— |
5,474,187 |
1.6x |
6,320,798 |
1.3x |
N/A |
9 |
% | |||||||||||||||||||||||
*Mezzanine / Opportunistic III (Sep 2016 / Sep 2021) |
6,639,133 |
2,530,761 |
4,031,200 |
1.0x |
2 |
% | 1,905,173 |
1.6x |
5,936,373 |
1.1x |
N/A |
6 |
% | ||||||||||||||||||||||
Stressed / Distressed I (Sep 2009 / May 2013) |
3,253,143 |
76,000 |
17,897 |
— |
— |
5,772,945 |
1.6x |
5,790,842 |
1.3x |
N/A |
9 |
% | |||||||||||||||||||||||
Stressed / Distressed II (Jun 2013 / Jun 2018) |
5,125,000 |
565,481 |
928,656 |
0.5x |
— |
4,367,226 |
1.3x |
5,295,882 |
1.0x |
N/A |
-2 |
% | |||||||||||||||||||||||
*Stressed / Distressed III (Dec 2017 / Dec 2022) |
7,356,380 |
4,495,807 |
1,702,749 |
0.8x |
1 |
% | 990,236 |
1.4x |
2,692,985 |
0.9x |
N/A |
-23 |
% | ||||||||||||||||||||||
Energy I (Nov 2015 / Nov 2018) |
2,856,867 |
1,070,297 |
1,216,670 |
0.7x |
— |
1,036,046 |
1.7x |
2,252,716 |
1.0x |
N/A |
-3 |
% | |||||||||||||||||||||||
*Energy II (Feb 2019 / Feb 2024) |
3,616,081 |
2,920,584 |
652,174 |
0.9x |
— |
44,826 |
2.8x |
697,000 |
1.0x |
N/A |
N/M |
||||||||||||||||||||||||
Euro |
|||||||||||||||||||||||||||||||||||
European Senior Debt I (Feb 2015 / Feb 2019) |
€ 1,964,689 |
€ 324,426 |
€ 1,601,714 |
0.9x |
2 |
% | € 1,356,846 |
1.4x |
€ 2,958,560 |
1.1x |
N/A |
2 |
% | ||||||||||||||||||||||
*European Senior Debt II (Jun 2019 / Jun 2024) |
€ 4,088,344 |
€ 3,615,837 |
€ 471,370 |
1.0x |
— |
€ — |
N/A |
€ 471,370 |
1.0x |
N/A |
N/M |
||||||||||||||||||||||||
Total Credit |
$ 41,872,262 |
$ 17,112,933 |
$ 11,686,235 |
0.8x |
1 |
% | $ 25,896,535 |
1.5x |
$ 37,582,770 |
1.2x |
N/A |
7 |
% | ||||||||||||||||||||||
N/M | Not meaningful generally due to the limited time since initial investment. |
N/A | Not applicable. |
* | Represents funds that are currently in their investment period and open-ended funds. |
(a) | Excludes investment vehicles where Blackstone does not earn fees. |
(b) | Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and expired or recallable capital and may include leverage, less invested capital. This amount is not reduced by outstanding commitments to investments. |
(c) | Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Performance Revenues, divided by invested capital. |
(d) | Net Internal Rate of Return (“IRR”) represents the annualized inception to March 31, 2020 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. IRRs are calculated using actual timing of limited partner cash flows. Initial inception date cash flow may differ from the Investment Period Beginning Date. |
(e) | The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II performance reflects a 7% Realized Net IRR and a 7% Total Net IRR. |
(f) | BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. |
(g) | BPP represents the core+ real estate funds which invest with a more modest risk profile and lower leverage. Committed Capital and Available Capital are not regularly reported to investors in our core+ strategy and are not applicable in the context of these funds. |
(h) | Unrealized Investment Value reflects BREIT’s net asset value as of March 31, 2020. Realized Investment Value represents BREIT’s cash distributions, net of servicing fees. BREIT net return reflects a per share blended return, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns experienced by any particular investor or share class. Inception to date net returns are presented on an annualized basis and are from January 1, 2017. Committed Capital and Available Capital are not regularly reported to investors in our core+ strategy and are not applicable in the context of this vehicle. |
(i) | BREDS High-Yield represents the flagship real estate debt drawdown funds only and excludes BREDS High-Grade. |
(j) | Blackstone Core Equity Partners is a core private equity fund which invests with a more modest risk profile and longer hold period. |
(k) | Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOICs are not meaningful. If information is not available on a timely basis, returns are calculated from results that are reported on a three month lag and therefore do not include the impact of economic and market activities in the quarter in which such events occur. |
(l) | Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented. |
Three Months Ended |
|||||||||||||||||
March 31, |
2020 vs. 2019 | ||||||||||||||||
2020 |
2019 |
$ |
% |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Management Fees, Net |
|||||||||||||||||
Base Management Fees |
$ | 371,438 |
$ | 260,245 |
$ | 111,193 |
43 |
% | |||||||||
Transaction and Other Fees, Net |
23,024 |
23,911 |
(887 |
) | -4 |
% | |||||||||||
Management Fee Offsets |
(8,341 |
) | (280 |
) | (8,061 |
) | N/M |
||||||||||
Total Management Fees, Net |
386,121 |
283,876 |
102,245 |
36 |
% | ||||||||||||
Fee Related Performance Revenues |
4,551 |
6,676 |
(2,125 |
) | -32 |
% | |||||||||||
Fee Related Compensation |
(120,296 |
) | (114,816 |
) | (5,480 |
) | 5 |
% | |||||||||
Other Operating Expenses |
(40,476 |
) | (38,986 |
) | (1,490 |
) | 4 |
% | |||||||||
Fee Related Earnings |
229,900 |
136,750 |
93,150 |
68 |
% | ||||||||||||
Realized Performance Revenues |
43,720 |
77,182 |
(33,462 |
) | -43 |
% | |||||||||||
Realized Performance Compensation |
(13,392 |
) | (29,900 |
) | 16,508 |
-55 |
% | ||||||||||
Realized Principal Investment Income (Loss) |
7,300 |
(2,131 |
) | 9,431 |
N/M |
||||||||||||
Net Realizations |
37,628 |
45,151 |
(7,523 |
) | -17 |
% | |||||||||||
Segment Distributable Earnings |
$ | 267,528 |
$ | 181,901 |
$ | 85,627 |
47 |
% | |||||||||
Three Months Ended |
March 31, 2020 |
|||||||||||||||||||||||||||||||
March 31, |
Inception to Date |
|||||||||||||||||||||||||||||||
2020 |
2019 |
Realized |
Total |
|||||||||||||||||||||||||||||
Fund (a) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
||||||||||||||||||||||||
BREP IV |
-33% |
-30% |
-1% |
-1% |
48% |
28% |
22% |
12% |
||||||||||||||||||||||||
BREP V |
-43% |
-36% |
7% |
6% |
15% |
12% |
14% |
11% |
||||||||||||||||||||||||
BREP VI |
-19% |
-16% |
1% |
1% |
18% |
13% |
17% |
13% |
||||||||||||||||||||||||
BREP VII |
-15% |
-13% |
5% |
5% |
31% |
22% |
22% |
15% |
||||||||||||||||||||||||
BREP VIII |
-8% |
-7% |
3% |
2% |
35% |
26% |
19% |
12% |
||||||||||||||||||||||||
BREP International II (b)(c) |
N/M |
N/M |
108% |
65% |
10% |
8% |
10% |
8% |
||||||||||||||||||||||||
BREP Europe III (b) |
5% |
3% |
- |
-1% |
30% |
20% |
23% |
14% |
||||||||||||||||||||||||
BREP Europe IV (b) |
-9% |
-7% |
5% |
4% |
31% |
23% |
22% |
16% |
||||||||||||||||||||||||
BREP Europe V (b) |
-8% |
-7% |
5% |
4% |
69% |
53% |
16% |
9% |
||||||||||||||||||||||||
BREP Asia I |
-15% |
-13% |
5% |
4% |
29% |
21% |
18% |
12% |
||||||||||||||||||||||||
BREP Asia II |
-8% |
-8% |
7% |
2% |
N/M |
N/M |
8% |
-2% |
||||||||||||||||||||||||
BREP Co-Investment (d) |
-2% |
-2% |
14% |
13% |
17% |
15% |
18% |
16% |
||||||||||||||||||||||||
BPP (e) |
-2% |
-2% |
3% |
2% |
N/M |
N/M |
10% |
8% |
||||||||||||||||||||||||
BREDS High-Yield (f) |
-12% |
-11% |
4% |
3% |
15% |
11% |
14% |
9% |
||||||||||||||||||||||||
BREDS High-Grade (f) |
-3% |
-3% |
2% |
2% |
8% |
7% |
5% |
3% |
||||||||||||||||||||||||
BREDS Liquid (g) |
-21% |
-21% |
6% |
5% |
N/A |
N/A |
9% |
5% |
||||||||||||||||||||||||
BXMT (h) |
N/A |
-48% |
N/A |
10% |
N/A |
N/A |
N/A |
3% |
||||||||||||||||||||||||
BREIT (i) |
N/A |
-8% |
N/A |
2% |
N/A |
N/A |
N/A |
6% |
N/M | Not meaningful generally due to the limited time since initial investment. |
N/A | Not applicable. |
(a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. |
(b) | Euro-based internal rates of return. |
(c) | The 8% Realized Net IRR and 8% Total Net IRR exclude investors that opted out of the Hilton investment opportunity. Overall BREP International II Performance reflects a 7% Realized Net IRR and a 7% Total Net IRR. |
(d) | BREP Co-Investment represents co-investment capital raised for various BREP investments. The Net IRR reflected is calculated by aggregating each co-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance Revenues. |
(e) | BPP represents the core+ real estate funds which invest with a more modest risk profile and lower leverage. |
(f) | BREDS High-Yield represents the flagship real estate debt drawdown funds and excludes the BREDS High-Grade drawdown fund, which has a different risk-return profile. Inception to date returns are from July 1, 2009 and July 1, 2017 for BREDS High-Yield and BREDS High-Grade, respectively. |
(g) | BREDS Liquid represents BREDS funds that invest in liquid real estate debt securities, except funds in liquidation and insurance mandates with specific investment objectives. The returns presented represent summarized asset-weighted gross and net rates of return from August 1, 2008. Inception to Date returns are presented on an annualized basis. |
(h) | Reflects annualized return of a shareholder invested in BXMT as of the beginning of each period presented, assuming reinvestment of all dividends received during the period, and net of all fees and expenses incurred by BXMT. Return incorporates the closing NYSE stock price as of each period end. Inception to date returns are from May 22, 2013. |
(i) | Effective September 30, 2019, the BREIT return reflects a per share blended return for each respective period, assuming BREIT had a single share class, reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns experienced by any particular investor or share class. Inception to date returns are presented on an annualized basis and are from January 1, 2017. Prior periods have been updated to reflect BREIT’s per share blended return. The BREIT returns presented in filings prior to September 30, 2019 were for BREIT’s Class S investors. |
Three Months Ended |
|||||||||||||||||
March 31, |
2020 vs. 2019 | ||||||||||||||||
2020 |
2019 |
$ |
% |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Management and Advisory Fees, Net |
|||||||||||||||||
Base Management Fees |
$ | 253,974 |
$ | 219,417 |
$ | 34,557 |
16 |
% | |||||||||
Transaction, Advisory and Other Fees, Net |
21,413 |
37,291 |
(15,878 |
) | -43 |
% | |||||||||||
Management Fee Offsets |
(9,215 |
) | (4,985 |
) | (4,230 |
) | 85 |
% | |||||||||
Total Management and Advisory Fees, Net |
266,172 |
251,723 |
14,449 |
6 |
% | ||||||||||||
Fee Related Compensation |
(110,368 |
) | (107,587 |
) | (2,781 |
) | 3 |
% | |||||||||
Other Operating Expenses |
(41,001 |
) | (34,201 |
) | (6,800 |
) | 20 |
% | |||||||||
Fee Related Earnings |
114,803 |
109,935 |
4,868 |
4 |
% | ||||||||||||
Realized Performance Revenues |
112,076 |
156,599 |
(44,523 |
) | -28 |
% | |||||||||||
Realized Performance Compensation |
(54,643 |
) | (50,556 |
) | (4,087 |
) | 8 |
% | |||||||||
Realized Principal Investment Income |
10,347 |
25,139 |
(14,792 |
) | -59 |
% | |||||||||||
Net Realizations |
67,780 |
131,182 |
(63,402 |
) | -48 |
% | |||||||||||
Segment Distributable Earnings |
$ | 182,583 |
$ | 241,117 |
$ | (58,534 |
) | -24 |
% | ||||||||
N/M | Not meaningful. |
Three Months Ended |
March 31, 2020 | ||||||||||||||||||||||||||||||||
March 31, |
Inception to Date | ||||||||||||||||||||||||||||||||
2020 |
2019 |
Realized |
Total | ||||||||||||||||||||||||||||||
Fund (a) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
|||||||||||||||||||||||||
BCP IV |
1% |
1% |
33% |
24% |
50% |
36% |
50% |
36% |
|||||||||||||||||||||||||
BCP V |
-26% |
-10% |
- |
1% |
11% |
9% |
10% |
8% |
|||||||||||||||||||||||||
BCP VI |
-27% |
-23% |
6% |
5% |
24% |
18% |
13% |
9% |
|||||||||||||||||||||||||
BCP VII |
-14% |
-12% |
4% |
2% |
66% |
47% |
16% |
9% |
|||||||||||||||||||||||||
BCP Asia |
-1% |
-2% |
N/M |
N/M |
190% |
88% |
37% |
15% |
|||||||||||||||||||||||||
BEP I |
-47% |
-40% |
11% |
9% |
22% |
17% |
11% |
8% |
|||||||||||||||||||||||||
BEP II |
-50% |
-51% |
- |
- |
74% |
64% |
-17% |
-24% |
|||||||||||||||||||||||||
BCOM |
1% |
- |
-9% |
-9% |
13% |
6% |
13% |
6% |
|||||||||||||||||||||||||
BCEP |
-6% |
-5% |
4% |
3% |
41% |
36% |
12% |
10% |
|||||||||||||||||||||||||
BIP |
-11% |
-11% |
N/M |
N/M |
N/A |
N/A |
-12% |
-18% |
|||||||||||||||||||||||||
Clarus IV |
2% |
1% |
N/M |
N/M |
48% |
18% |
46% |
23% |
|||||||||||||||||||||||||
Tactical Opportunities |
-20% |
-18% |
4% |
3% |
23% |
18% |
9% |
5% |
|||||||||||||||||||||||||
Tactical Opportunities Co-Investment and Other |
-11% |
-10% |
1% |
1% |
26% |
23% |
12% |
11% |
|||||||||||||||||||||||||
Strategic Partners I-V (b) |
2% |
1% |
1% |
- |
N/A |
N/A |
16% |
13% |
|||||||||||||||||||||||||
Strategic Partners VI (b) |
-1% |
-2% |
2% |
2% |
N/A |
N/A |
20% |
15% |
|||||||||||||||||||||||||
Strategic Partners VII (b) |
- |
- |
7% |
5% |
N/A |
N/A |
27% |
21% |
|||||||||||||||||||||||||
Strategic Partners Real Assets II (b) |
4% |
3% |
5% |
4% |
N/A |
N/A |
22% |
16% |
|||||||||||||||||||||||||
Strategic Partners Real Estate, SMA and Other (b) |
2% |
1% |
3% |
3% |
N/A |
N/A |
20% |
16% |
N/M | Not meaningful generally due to the limited time since initial investment. |
N/A | Not applicable. |
(a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues. |
(b) | Realizations are treated as return of capital until fully recovered and therefore inception to date realized returns are not applicable. If information is not available on a timely basis, returns are calculated from results that are reported on a three month lag and therefore do not include the impact of economic and market activities in the quarter in which such events occur. |
Three Months Ended |
|||||||||||||||||
March 31, |
2020 vs. 2019 | ||||||||||||||||
2020 |
2019 |
$ |
% |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Management Fees, Net |
|||||||||||||||||
Base Management Fees |
$ | 139,656 |
$ | 137,328 |
$ | 2,328 |
2% |
||||||||||
Transaction and Other Fees, Net |
758 |
318 |
440 |
138% |
|||||||||||||
Management Fee Offsets |
(42 |
) | — |
(42 |
) | N/M |
|||||||||||
Total Management Fees, Net |
140,372 |
137,646 |
2,726 |
2% |
|||||||||||||
Fee Related Compensation |
(46,191 |
) | (42,954 |
) | (3,237 |
) | 8% |
||||||||||
Other Operating Expenses |
(18,667 |
) | (17,885 |
) | (782 |
) | 4% |
||||||||||
Fee Related Earnings |
75,514 |
76,807 |
(1,293 |
) | -2% |
||||||||||||
Realized Performance Revenues |
1,767 |
4,091 |
(2,324 |
) | -57% |
||||||||||||
Realized Performance Compensation |
(945 |
) | (1,413 |
) | 468 |
-33% |
|||||||||||
Realized Principal Investment Loss |
(609 |
) | (283 |
) | (326 |
) | 115% |
||||||||||
Net Realizations |
213 |
2,395 |
(2,182 |
) | -91% |
||||||||||||
Segment Distributable Earnings |
$ | 75,727 |
$ | 79,202 |
$ | (3,475 |
) | -4% |
|||||||||
Invested Performance |
Estimated % Above | ||||||||||||||||
Eligible Assets Under |
High Water Mark/ | ||||||||||||||||
Management |
Benchmark (a) | ||||||||||||||||
As of March 31, |
As of March 31, | ||||||||||||||||
2020 |
2019 |
2020 |
2019 |
||||||||||||||
(Dollars in Thousands) |
|||||||||||||||||
Hedge Fund Solutions Managed Funds (b) |
$ | 39,406,514 |
$ | 43,705,601 |
4 |
% | 76 |
% |
(a) | Estimated % Above High Water Mark/Benchmark represents the percentage of Invested Performance Eligible Assets Under Management that as of the dates presented would earn performance fees when the applicable Hedge Fund Solutions managed fund has positive investment performance relative to a benchmark, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective High Water Mark or clear a benchmark return, thereby resulting in an increase in Estimated % Above High Water Mark/Benchmark. |
(b) | For the Hedge Fund Solutions managed funds, at March 31, 2020, the incremental appreciation needed for the 96% of Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was $4.7 billion, an increase of $4.2 billion, compared to $480.9 million at March 31, 2019. Of the Invested Performance Eligible Assets Under Management below their respective High Water Marks/Benchmarks as of March 31, 2020, 13% were within 5% of reaching their respective High Water Mark. |
Three |
Average Annual Returns (a) |
|||||||||||||||||||||||||||||||||||||||||||||||
Months Ended |
Periods Ended |
|||||||||||||||||||||||||||||||||||||||||||||||
March 31, |
March 31, 2020 |
|||||||||||||||||||||||||||||||||||||||||||||||
2020 |
2019 |
One Year |
Three Year |
Five Year |
Historical |
|||||||||||||||||||||||||||||||||||||||||||
Composite |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
||||||||||||||||||||||||||||||||||||
BAAM Principal Solutions Composite (b) |
-9% |
-9% |
3% |
3% |
-4% |
-5% |
2% |
1% |
3% |
2% |
6% |
5% |
(a) | Composite returns present a summarized asset-weighted return measure to evaluate the overall performance of the applicable class of Blackstone Funds. |
(b) | BAAM’s Principal Solutions (“BPS”) Composite covers the period from January 2000 to present, although BAAM’s inception date is September 1990. The BPS Composite includes only BAAM-managed commingled and customized multi-manager funds and accounts. None of the other platforms/strategies managed through the Blackstone Hedge Fund Solutions Group are included in the composite (except for investments by BPS funds/accounts directly into those platforms/strategies). BAAM-managed funds in liquidation and non-fee-paying assets (in the case of net returns) are excluded from the composite. The historical return is from January 1, 2000. |
Three Months Ended |
|||||||||||||||||
March 31, |
2020 vs. 2019 | ||||||||||||||||
2020 |
2019 |
$ |
% |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Management Fees, Net |
|||||||||||||||||
Base Management Fees |
$ | 145,328 |
$ | 140,528 |
$ | 4,800 |
3% |
||||||||||
Transaction and Other Fees, Net |
5,470 |
3,630 |
1,840 |
51% |
|||||||||||||
Management Fee Offsets |
(2,896 |
) | (3,341 |
) | 445 |
-13% |
|||||||||||
Total Management Fees, Net |
147,902 |
140,817 |
7,085 |
5% |
|||||||||||||
Fee Related Performance Revenues |
7,915 |
1,103 |
6,812 |
618% |
|||||||||||||
Fee Related Compensation |
(69,409 |
) | (58,674 |
) | (10,735 |
) | 18% |
||||||||||
Other Operating Expenses |
(38,741 |
) | (32,239 |
) | (6,502 |
) | 20% |
||||||||||
Fee Related Earnings |
47,667 |
51,007 |
(3,340 |
) | -7% |
||||||||||||
Realized Performance Revenues |
9,670 |
8,897 |
773 |
9% |
|||||||||||||
Realized Performance Compensation |
(2,322 |
) | (3,371 |
) | 1,049 |
-31% |
|||||||||||
Realized Principal Investment Income |
3,252 |
3,183 |
69 |
2% |
|||||||||||||
Net Realizations |
10,600 |
8,709 |
1,891 |
22% |
|||||||||||||
Segment Distributable Earnings |
$ | 58,267 |
$ | 59,716 |
$ | (1,449 |
) | -2% |
|||||||||
Three Months Ended March 31, |
March 31, 2020 | ||||||||||||||||||||||||
2020 |
2019 |
Inception to Date | |||||||||||||||||||||||
Composite (a) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
|||||||||||||||||||
Credit Composite (b) |
-14 |
% | -13 |
% | 4 |
% | 4 |
% | 8 |
% | 5 |
% |
(a) | Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Allocations, net of tax advances. |
(b) | Effective January 1, 2020, Credit returns have been redefined to present a composite return instead of separate returns for performing credit strategies and distressed strategies. The Credit Composite now also includes the long only strategy. The Credit Composite return is a weighted-average of (a) the return based on the combined quarterly cash flows of performing credit and distressed fee-earning funds and (b) the weighted-average quarterly return of all long only strategy fee-earning funds. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter end are included and funds in liquidation are excluded. Credit returns exclude Blackstone Funds that were contributed to GSO as part of Blackstone’s acquisition of GSO in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by GSO subsequent to March 2008. The inception to date returns are from December 31, 2005. Prior periods have been updated to reflect this presentation. Performing Credit gross returns were (17)%, 4% and 13% for the three months ended March 31, 2020, the three months ended March 31, 2019 and inception to date March 31, 2020, respectively. Performing Credit net returns were (14)%, 3% and 7% for the three months ended March 31, 2020, the three months ended March 31, 2019 and inception to date March 31, 2020, respectively. Distressed Strategies gross returns were (32)%, 4% and 8% for the three months ended March 31, 2020, the three months ended March 31, 2019 and inception to date March 31, 2020, respectively. Distressed Strategies net returns were (30)%, 3% and 3% for the three months ended March 31, 2020, the three months ended March 31, 2019 and inception to date March 31, 2020, respectively. |
(a) | This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation. Transaction-Related Charges arise from corporate actions including acquisitions, divestitures, and Blackstone’s initial public offering. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the Tax Receivable Agreement resulting from a change in tax law or similar event, transaction costs and any gains or losses associated with these corporate actions. |
(b) | This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation. This amount includes amortization of intangibles associated with Blackstone’s investment in Pátria, which is accounted for under the equity method. |
(c) | This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
(d) | This adjustment removes Unrealized Performance Revenues on a segment basis. The Segment Adjustment represents the add back of performance revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. |
Three Months Ended March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
GAAP Unrealized Performance Allocations |
$ | (3,453,081 |
) | $ | 663,999 |
||||
Segment Adjustment |
(365 |
) | 334 |
||||||
Unrealized Performance Revenues |
$ | (3,453,446 |
) | $ | 664,333 |
||||
(e) | This adjustment removes Unrealized Performance Allocations Compensation. |
(f) | This adjustment removes Unrealized Principal Investment Income (Loss) on a segment basis. The Segment Adjustment represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
Three Months Ended March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
GAAP Unrealized Principal Investment Income (Loss) |
$ | (959,365 |
) | $ | 169,044 |
||||
Segment Adjustment |
342,755 |
(29,119 |
) | ||||||
Unrealized Principal Investment Income (Loss) |
$ | (616,610 |
) | $ | 139,925 |
||||
(g) | This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of certain Transaction-Related Charges. |
Three Months Ended March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
GAAP Other Revenue |
$ | 138,180 |
$ | 10,250 |
|||||
Segment Adjustment |
(29 |
) | 2,939 |
||||||
Other Revenues |
$ | 138,151 |
$ | 13,189 |
|||||
(h) | This adjustment removes Equity-Based Compensation on a segment basis. |
(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 Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. |
Three Months Ended March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
Taxes |
$ | 16,274 |
$ | 15,344 |
|||||
Related Payables |
6,779 |
13,695 |
|||||||
Taxes and Related Payables |
$ | 23,053 |
$ | 29,039 |
|||||
(j) | This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Other Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement. |
Three Months Ended March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
GAAP Interest and Dividend Revenue |
$ | 35,084 |
$ | 44,084 |
|||||
Segment Adjustment |
2,515 |
2,615 |
|||||||
Interest and Dividend Revenue |
37,599 |
46,699 |
|||||||
GAAP Interest Expense |
41,644 |
42,002 |
|||||||
Segment Adjustment |
(104 |
) | (364 |
) | |||||
Interest Expense |
41,540 |
41,638 |
|||||||
Net Interest Income (Loss) |
$ | (3,941 |
) | $ | 5,061 |
||||
(k) | This adjustment removes the total segment amounts of Realized Performance Revenues. |
(l) | This adjustment removes the total segment amounts of Realized Performance Compensation. |
(m) | This adjustment removes the total segment amount of Realized Principal Investment Income. |
(n) | This adjustment adds back Interest Expense on a segment basis. |
March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
Investments of Consolidated Blackstone Funds |
$ | 7,275,752 |
$ | 8,603,847 |
|||||
Equity Method Investments |
|||||||||
Partnership Investments |
3,553,538 |
3,815,993 |
|||||||
Accrued Performance Allocations |
3,761,585 |
6,486,450 |
|||||||
Corporate Treasury Investments |
1,653,950 |
2,005,174 |
|||||||
Other Investments |
185,876 |
269,486 |
|||||||
Total GAAP Investments |
$ | 16,430,701 |
$ | 21,180,950 |
|||||
Accrued Performance Allocations - GAAP |
$ | 3,761,585 |
$ | 6,486,450 |
|||||
Impact of Consolidation (a) |
19 |
374 |
|||||||
Due From Affiliates - GAAP (b) |
20,910 |
9,483 |
|||||||
Less: Net Realized Performance Revenues (c) |
(31,719 |
) | (21,225 |
) | |||||
Less: Accrued Performance Compensation - GAAP (d) |
(1,563,672 |
) | (2,638,374 |
) | |||||
Net Accrued Performance Revenues |
$ | 2,187,123 |
$ | 3,836,708 |
|||||
(a) | This adjustment adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation. |
(b) | Represents GAAP accrued performance revenue recorded within Due from Affiliates. |
(c) | Represents Performance Revenues realized but not yet distributed as of the reporting date and are included in Distributable Earnings in the period they are realized. |
(d) | Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation and Benefits and Due to Affiliates. |
Senior Managing Directors | |||||||||||||||||
Blackstone and |
and Certain Other | ||||||||||||||||
General Partner |
Professionals (a) | ||||||||||||||||
Original |
Remaining |
Original |
Remaining |
||||||||||||||
Fund |
Commitment |
Commitment |
Commitment |
Commitment |
|||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Real Estate |
|||||||||||||||||
BREP VII |
$ | 300,000 |
$ | 41,298 |
$ | 100,000 |
$ | 13,766 |
|||||||||
BREP VIII |
300,000 |
55,262 |
100,000 |
18,421 |
|||||||||||||
BREP IX |
300,000 |
231,271 |
100,000 |
77,090 |
|||||||||||||
BREP Europe III |
100,000 |
13,231 |
35,000 |
4,631 |
|||||||||||||
BREP Europe IV |
130,000 |
23,540 |
43,333 |
7,847 |
|||||||||||||
BREP Europe V |
150,000 |
33,210 |
43,333 |
9,594 |
|||||||||||||
BREP Europe VI |
130,000 |
115,615 |
43,333 |
38,538 |
|||||||||||||
BREP Asia I |
50,000 |
14,806 |
16,667 |
4,935 |
|||||||||||||
BREP Asia II |
70,707 |
46,479 |
23,569 |
15,493 |
|||||||||||||
BREDS II |
50,000 |
6,227 |
16,667 |
2,076 |
|||||||||||||
BREDS III |
50,000 |
22,469 |
16,667 |
7,490 |
|||||||||||||
BREDS IV |
50,000 |
50,000 |
— |
— |
|||||||||||||
BPP |
74,688 |
8,024 |
— |
— |
|||||||||||||
Other (b) |
16,195 |
9,347 |
— |
— |
|||||||||||||
Total Real Estate |
1,771,590 |
670,779 |
538,569 |
199,881 |
|||||||||||||
Private Equity |
|||||||||||||||||
BCP V |
629,356 |
30,642 |
— |
— |
|||||||||||||
BCP VI |
719,718 |
82,287 |
250,000 |
28,583 |
|||||||||||||
BCP VII |
500,000 |
119,300 |
225,000 |
53,685 |
|||||||||||||
BCP VIII |
500,000 |
500,000 |
225,000 |
225,000 |
|||||||||||||
BEP I |
50,000 |
4,728 |
— |
— |
|||||||||||||
BEP II |
80,000 |
4,922 |
26,667 |
1,641 |
|||||||||||||
BEP III |
80,000 |
77,555 |
26,667 |
25,852 |
|||||||||||||
BCEP |
120,000 |
35,179 |
18,992 |
5,568 |
|||||||||||||
BCEP II |
94,480 |
94,480 |
19,274 |
19,274 |
|||||||||||||
BCP Asia |
40,000 |
26,675 |
13,333 |
8,892 |
|||||||||||||
Tactical Opportunities |
403,590 |
199,743 |
134,530 |
66,581 |
|||||||||||||
Strategic Partners |
739,618 |
465,955 |
90,628 |
52,299 |
|||||||||||||
BIP |
168,632 |
139,709 |
— |
— |
|||||||||||||
BXLS |
90,500 |
85,915 |
26,667 |
26,667 |
|||||||||||||
Other (b) |
274,735 |
37,069 |
— |
— |
|||||||||||||
Total Private Equity |
4,490,629 |
1,904,159 |
1,056,758 |
514,042 |
|||||||||||||
Senior Managing Directors | |||||||||||||||||
Blackstone and |
and Certain Other | ||||||||||||||||
General Partner |
Professionals (a) | ||||||||||||||||
Original |
Remaining |
Original |
Remaining |
||||||||||||||
Fund |
Commitment |
Commitment |
Commitment |
Commitment |
|||||||||||||
(Dollars in Thousands) | |||||||||||||||||
Hedge Fund Solutions |
|||||||||||||||||
Strategic Alliance I |
$ | 50,000 |
$ | 2,033 |
$ | — |
$ | — |
|||||||||
Strategic Alliance II |
50,000 |
1,482 |
— |
— |
|||||||||||||
Strategic Alliance III |
22,000 |
9,235 |
— |
— |
|||||||||||||
Strategic Holdings I |
154,610 |
66,076 |
— |
— |
|||||||||||||
Strategic Holdings II |
50,000 |
50,000 |
— |
— |
|||||||||||||
Other (b) |
3,639 |
1,877 |
— |
— |
|||||||||||||
Total Hedge Fund Solutions |
330,249 |
130,703 |
— |
— |
|||||||||||||
Credit & Insurance |
|||||||||||||||||
Mezzanine / Opportunistic II |
120,000 |
30,218 |
110,101 |
27,726 |
|||||||||||||
Mezzanine / Opportunistic III |
130,783 |
63,823 |
30,992 |
15,652 |
|||||||||||||
European Senior Debt I |
63,000 |
16,547 |
56,992 |
14,969 |
|||||||||||||
European Senior Debt II |
92,546 |
87,521 |
25,423 |
24,521 |
|||||||||||||
Stressed / Destressed I |
50,000 |
4,869 |
27,666 |
2,694 |
|||||||||||||
Stressed / Destressed II |
125,000 |
51,695 |
119,959 |
49,610 |
|||||||||||||
Stressed / Destressed III |
151,000 |
119,279 |
31,805 |
26,792 |
|||||||||||||
Energy I |
80,000 |
38,026 |
74,739 |
35,526 |
|||||||||||||
Energy II |
150,000 |
139,917 |
27,668 |
25,970 |
|||||||||||||
Credit Alpha Fund |
52,102 |
7,465 |
50,394 |
7,221 |
|||||||||||||
Credit Alpha Fund II |
25,500 |
15,614 |
6,034 |
3,775 |
|||||||||||||
Blackstone / GSO Secured Lending |
64,500 |
23,220 |
— |
— |
|||||||||||||
Other (b) |
164,271 |
45,591 |
21,548 |
3,849 |
|||||||||||||
Total Credit & Insurance |
1,268,702 |
643,785 |
583,321 |
238,305 |
|||||||||||||
Other |
|||||||||||||||||
Treasury (c) |
97,862 |
32,428 |
— |
— |
|||||||||||||
$ | 7,959,032 |
$ | 3,381,854 |
$ | 2,178,648 |
$ | 952,228 |
||||||||||
(a) | For some of the general partner commitments shown in the table above, we require our senior managing directors and certain other professionals to fund a portion of the commitment even though the ultimate obligation to fund the aggregate commitment is ours pursuant to the governing agreements of the respective funds. The amounts of the aggregate applicable general partner original and remaining commitment are shown in the table above. In addition, certain senior managing directors and other professionals may be required to fund a de minimis amount of the commitment in certain carry funds. We expect our commitments to be drawn down over time and to be funded by available cash and cash generated from operations and realizations. Taking into account prevailing market conditions and both the liquidity and cash or liquid investment balances, we believe that the sources of liquidity described above will be more than sufficient to fund our working capital requirements. |
(b) | Represents capital commitments to a number of other funds in each respective segment. |
(c) | Represents loan origination commitments, which are typically funded within 60-90 days of making a commitment, revolver commitments and capital market commitments. |
Aggregate |
|||||
Principal |
|||||
Amount |
|||||
(Dollars/Euros |
|||||
Senior Notes (a) |
in Thousands) |
||||
4.750%, Due 2/15/2023 |
$ | 400,000 |
|||
2.000%, Due 5/19/2025 |
€ |
300,000 |
|||
1.000%, Due 10/5/2026 |
€ |
600,000 |
|||
3.150%, Due 10/2/2027 |
$ | 300,000 |
|||
1.500%, Due 4/10/2029 |
€ |
600,000 |
|||
2.500%, Due 1/10/2030 |
$ | 500,000 |
|||
6.250%, Due 8/15/2042 |
$ | 250,000 |
|||
5.000%, Due 6/15/2044 |
$ | 500,000 |
|||
4.450%, Due 7/15/2045 |
$ | 350,000 |
|||
4.000%, Due 10/2/2047 |
$ | 300,000 |
|||
3.500%, Due 9/10/2049 |
$ | 400,000 |
|||
$ | 4,654,650 |
||||
(a) | The Notes are unsecured and unsubordinated obligations of the Issuer and are fully and unconditionally guaranteed, jointly and severally, by The Blackstone Group Inc. and each of the Blackstone Holdings Partnerships. The Notes contain customary covenants and financial restrictions that, among other things, limit the Issuer and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The Notes also contain customary events of default. All or a portion of the Notes may be redeemed at our option, in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the Notes are subject to repurchase at the repurchase price as set forth in the Notes. |
Securities |
|||||||||
Repurchase |
Sold, Not Yet |
||||||||
Agreements |
Purchased |
||||||||
(Dollars in Millions) | |||||||||
Balance, March 31, 2020 |
$ | 105.1 |
$ | 51.5 |
|||||
Balance, December 31, 2019 |
$ | 154.1 |
$ | 75.5 |
|||||
Three Months Ended March 31, 2020 |
|||||||||
Average Daily Balance |
$ | 134.9 |
$ | 70.8 |
|||||
Maximum Daily Balance |
$ | 152.8 |
$ | 75.7 |
April 1, 2020 to |
|||||||||||||||||||||
Contractual Obligations |
December 31, 2020 |
2021-2022 |
2023-2024 |
Thereafter |
Total |
||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||
Operating Lease Obligations (a) |
$ | 53,337 |
$ | 193,278 |
$ | 186,790 |
$ | 273,861 |
$ | 707,266 |
|||||||||||
Purchase Obligations |
35,529 |
39,263 |
3,677 |
— |
78,469 |
||||||||||||||||
Blackstone Issued Notes and Revolving Credit Facility (b) |
— |
— |
400,000 |
4,254,650 |
4,654,650 |
||||||||||||||||
Interest on Blackstone Issued Notes and Revolving Credit Facility (c) |
107,965 |
292,630 |
264,130 |
1,888,420 |
2,553,145 |
||||||||||||||||
Blackstone Funds and CLO Vehicles Debt Obligations Payable (d) |
215 |
— |
— |
6,852,598 |
6,852,813 |
||||||||||||||||
Interest on Blackstone Funds and CLO Vehicles Debt Obligations Payable (e) |
165,889 |
442,370 |
442,370 |
1,180,458 |
2,231,087 |
||||||||||||||||
Blackstone Funds Capital Commitments to Investee Funds (f) |
148,781 |
— |
— |
— |
148,781 |
||||||||||||||||
Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable Agreements (g) |
— |
91,344 |
76,183 |
557,071 |
724,598 |
||||||||||||||||
Unrecognized Tax Benefits, Including Interest and Penalties (h) |
— |
932 |
— |
— |
932 |
||||||||||||||||
Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other (i) |
3,381,854 |
— |
— |
— |
3,381,854 |
||||||||||||||||
Consolidated Contractual Obligations |
3,893,570 |
1,059,817 |
1,373,150 |
15,007,058 |
21,333,595 |
||||||||||||||||
Blackstone Funds and CLO Vehicles Debt Obligations Payable (d) |
(215 |
) | — |
— |
(6,852,598 |
) | (6,852,813 |
) | |||||||||||||
Interest on Blackstone Funds and CLO Vehicles Debt Obligations Payable (e) |
(165,889 |
) | (442,370 |
) | (442,370 |
) | (1,180,458 |
) | (2,231,087 |
) | |||||||||||
Blackstone Funds Capital Commitments to Investee Funds (f) |
(148,781 |
) | — |
— |
— |
(148,781 |
) | ||||||||||||||
Blackstone Operating Entities Contractual Obligations |
$ | 3,578,685 |
$ | 617,447 |
$ | 930,780 |
$ | 6,974,002 |
$ | 12,100,914 |
|||||||||||
(a) | We lease our primary office space and certain office equipment under agreements that expire through 2030. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses, and utilities. To the extent these are fixed or determinable they are included in the table above. The table above includes operating leases that are recognized as Operating Lease Liabilities, short-term leases that are not recorded as Operating Lease Liabilities and leases that have been signed but not yet commenced which are not recorded as Operating Lease Liabilities. The amounts in this table are presented net of contractual sublease commitments. |
(b) | Represents the principal amount due on the senior notes we issued. As of March 31, 2020, we had no outstanding borrowings under our revolver. |
(c) | Represents interest to be paid over the maturity of our senior notes and borrowings under our revolving credit facility which has been calculated assuming no pre-payments are made and debt is held until its final maturity date. These amounts exclude commitment fees for unutilized borrowings under our revolver. |
(d) | These obligations are those of the Blackstone Funds including the consolidated CLO vehicles. |
(e) | Represents interest to be paid over the maturity of the related consolidated Blackstone Funds’ and CLO vehicles’ debt obligations which has been calculated assuming no pre-payments will be made and debt will be held until its final maturity date. The future interest payments are calculated using variable rates in effect as of March 31, 2020, at spreads to market rates pursuant to the financing agreements, and range from 2.2% to 8.2%. The majority of the borrowings are due on demand and for purposes of this schedule are assumed to mature within one year. Interest on the majority of these borrowings rolls over into the principal balance at each reset date. |
(f) | These obligations represent commitments of the consolidated Blackstone Funds to make capital contributions to investee funds and portfolio companies. These amounts are generally due on demand and are therefore presented in the less than one year category. |
(g) | Represents obligations by Blackstone’s corporate subsidiary to make payments under the Tax Receivable Agreements to certain non-controlling interest holders for the tax savings realized from the taxable purchases of their interests in connection with the reorganization at the time of Blackstone’s IPO in 2007 and subsequent purchases. The obligation represents the amount of the payments currently expected to be made, which are dependent on the tax savings actually realized as determined annually without discounting for the timing of the payments. As required by GAAP, the amount of the obligation included in the Condensed Consolidated Financial Statements and shown in Note 16. “Related Party Transactions” (see “Part I. Item 1. Financial Statements”) differs to reflect the net present value of the payments due to certain non-controlling interest holders. |
(h) | The total represents gross unrecognized tax benefits of $0.5 million and interest and penalties of $0.5 million. In addition Blackstone is not able to make a reasonably reliable estimate of the timing of payments in individual years in connection with gross unrecognized benefits of $26.6 million and interest of $2.4 million, therefore, such amounts are not included in the above contractual obligations table. |
(i) | These obligations represent commitments by us to provide general partner capital funding to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments. These amounts are generally due on demand and are therefore presented in the less than one year category; however, a substantial amount of the capital commitments are expected to be called over the next three years. We expect to continue to make these general partner capital commitments as we raise additional amounts for our investment funds over time. |
• | Determining whether our management fees, Incentive Fees or Performance Allocations represent variable interests – We make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we consider, among other things, the extent of third party investment in the entity and the terms of any other interests we hold in the VIE. |
• | Determining whether kick-out rights are substantive – We make judgments as to whether the third party investors in a partnership entity have the ability to remove the general partner, the investment manager or its equivalent, or to dissolve (liquidate) the partnership entity, through a simple majority vote. This includes an evaluation of whether barriers to exercise these rights exist. |
• | Concluding whether Blackstone has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE – As there is no explicit threshold in GAAP to define “potentially significant,” management must apply judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met. |
• | 0.25% to 1.75% of committed capital or invested capital during the investment period, |
• | 0.25% to 1.50% of invested capital, committed capital and investment fair value subsequent to the investment period for private equity and real estate funds, and |
• | 0.75% to 1.50% of invested capital or net asset value subsequent to the investment period for certain of our hedge fund solutions and credit-focused funds. |
• | 0.24% to 1.50% of net asset value. |
• | 0.24% to 1.50% of net asset value or total assets. |
• | 0.65% to 2.00% of invested capital, net operating income or net asset value. |
• | 0.25% to 1.50% of net asset value. |
• | 0.40% to 0.65% of the aggregate par amount of collateral assets, including principal cash. |
• | 0.35% to 1.50% of total assets or net asset value. |
• | Note 9. “Variable Interest Entities”, and |
• | Note 17. “Commitments and Contingencies — Commitments — Investment Commitments” and “— Contingencies — Guarantees”. |
Three Months Ended March 31, |
||||||||
2020 |
2019 |
|||||||
Fund Management Fees Based on the NAV of the Applicable Funds or Separately Managed Accounts |
34% |
39% |
March 31, | |||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||
Performance |
Performance |
||||||||||||||||||||||||
Revenues, |
Revenues, |
||||||||||||||||||||||||
Net of Related |
Net of Related |
||||||||||||||||||||||||
Management |
Compensation |
Investment |
Management |
Compensation |
Investment |
||||||||||||||||||||
Fees (a) |
Expense (b) |
Income (b) |
Fees (a) |
Expense (b) |
Income (b) |
||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||
10% Decline in Fair Value of the Investments |
$ | 121,240 |
$ | 1,270,751 |
$ | 144,409 |
$ | 119,049 |
$ | 1,553,981 |
$ | 172,363 |
(a) | Represents the annualized effect of the 10% decline. |
(b) | Represents the reporting date effect of the 10% decline. |
March 31, 2020 | |||||||||
Total Assets Under Management, Excluding Undrawn Capital Commitments and the Amount of Capital Raised for CLOs |
Percentage Amount Classified as Level III Investments |
||||||||
(Dollars in Thousands) |
|||||||||
Real Estate |
$ | 107,229,423 |
89% |
||||||
Private Equity |
$ | 75,782,986 |
69% |
||||||
Hedge Fund Solutions |
$ | 70,582,618 |
12% |
||||||
Credit & Insurance |
$ | 66,048,221 |
31% |
March 31, | |||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||
Performance |
Performance |
||||||||||||||||||||||||
Revenues, |
Revenues, |
||||||||||||||||||||||||
Net of Related |
Net of Related |
||||||||||||||||||||||||
Management |
Compensation |
Investment |
Management |
Compensation |
Investment |
||||||||||||||||||||
Fees (a) |
Expense (b) |
Income (b) |
Fees (a) |
Expense (b) |
Income (b) |
||||||||||||||||||||
(Dollars in Thousands) | |||||||||||||||||||||||||
10% Decline in the Rate of Exchange of All Foreign Currencies Against the U.S. Dollar |
$ | 35,125 |
$ | 453,965 |
$ | 39,834 |
$ | 21,116 |
$ | 391,498 |
$ | 23,726 |
(a) | Represents the annualized effect of the 10% decline. |
(b) | Represents the reporting date effect of the 10% decline. |
March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
Annualized Increase in Interest Expense Due to a One Percentage Point Increase in Interest Rates (a) |
$ | — |
$ | — |
(a) | As of March 31, 2020 and 2019, Blackstone had no such debt obligations payable outstanding. |
March 31, | |||||||||||||||||
2020 |
2019 | ||||||||||||||||
Annualized Decrease in Investment Income |
Annualized Increase in Interest Income from Floating Rate Assets |
Annualized Decrease in Investment Income |
Annualized Increase in Interest Income from Floating Rate Assets |
||||||||||||||
(Dollars in Thousands) | |||||||||||||||||
One Percentage Point Increase in Interest Rates |
$ | 6,450 |
(a) | $ | 23,938 |
$ | 3,830 |
(a) | $ | 28,158 |
(a) | As of March 31, 2020 and 2019, this represents 0.3% and 0.1% of our portfolio of liquid assets, respectively. |
March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
Annualized Increase (Decrease) in Other Revenue Due to a One Percentage Point Increase in Interest Rates |
$ | (4,752 |
) | $ | 15,119 |
March 31, | |||||||||
2020 |
2019 |
||||||||
(Dollars in Thousands) | |||||||||
Decrease in Annualized Investment Income Due to a One Percentage Point Increase in Credit Spreads (a) |
$ | 48,019 |
$ | 75,148 |
(a) | As of March 31, 2020 and 2019, this represents 2.1% and 1.9% of our portfolio of liquid assets, respectively. |
• | Performance Revenues were sustained, would adversely impact our Realized Performance Revenues in future periods, including beyond this year. In addition, our ability to realize value from our investments may be adversely impacted by decreased portfolio company revenues and earnings, lack of potential buyers with financial resources to pursue an acquisition, or limited access to the equity capital markets. Limited opportunities for realizing gains could also delay or eliminate receipt of performance revenues as preferred return thresholds become harder to achieve over time. If the current economic environment persists and capital deployment opportunities remain limited, it may also cause a decline in the pace of investments, which may also eventually reduce our performance revenues. |
• | Management Fees COVID-19 pandemic is slowing our anticipated fundraising pace for new or successor funds, which may result in delayed or decreased management fees. In addition, in light of the recent decline in public equity markets and other components of their investment portfolios, fund investors may become restricted by their asset allocation policies to invest in new or successor funds that we provide. As described above, we may also experience a decline in the pace of our investments and, if our funds are unable to deploy capital at a pace that is sufficient to offset the pace of our realizations, our fee revenues could decrease. |
• | Investment Performance COVID-19 and related public health restrictions. For example, our energy investments have been and could continue to be materially adversely impacted by supply and demand shocks that have created historic dislocation in the energy markets, including as a result of the COVID-19 pandemic. Similarly, our investment in the hotel and retail sectors have experienced meaningful reductions in value as a result of the COVID-19 pandemic, and could continue to be adversely impacted. If the disruptions caused by COVID-19 continue, the businesses of impacted portfolio companies could suffer materially, which would decrease the value of our funds’ investments. Furthermore, such negative market conditions could potentially result in a portfolio company entering bankruptcy proceedings, thereby potentially resulting in a complete loss of the fund’s investment in such portfolio company and a significant negative impact to the investment fund’s performance and consequently to our operating results and cash flow, as well as to our reputation. |
• | Liquidity COVID-19 could lead to lower interest income for our credit funds. Further, dislocation and contraction of short-term liquidity in the credit markets has impacted, and if sustained will likely continue to impact, the value of credit assets held by our real estate debt and credit funds, such funds’ ability to sell assets at attractive prices or in a timely manner in order to avoid losses and the likelihood of margin calls. In addition, a sudden contraction of liquidity in the credit markets, including as a result of overwhelming desire for liquidity on the part of market participants, is likely to exacerbate the likelihood of forced sales of assets and margins calls, which would result in further declines in the value of assets. |
• | Operational Risks COVID-19 pandemic. In addition, third party service providers on whom we have become increasingly reliant for certain aspects of our business, including for the administration of certain funds, as well as for certain information systems and technology, including cloud-based services, could be impacted by an inability to perform due to COVID-19 restrictions or by failures of, or attacks on, their information systems and technology. |
• | Employee-Related Risks COVID-19 presents a significant threat to our employees’ well-being. Our key employees or executive officers may become sick or otherwise unable to perform their duties for an extended period of time. In addition, extended public health restrictions and remote working arrangements may impact employee morale and productivity. In addition to any potential impact of such extended illness on our operations, we may be exposed to the risk of litigation by our employees against us for, among other things, failure to take adequate steps to protect their well-being, particularly in the event they become sick after a return to the office. |
Period |
Total Number of Shares Purchased |
Average Price Paid per Share (a) |
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) |
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (Dollars in Thousands) (b) |
|||||||||||||
Jan. 1 - Jan. 31, 2020 |
— |
$ | — |
— |
$ | 781,182 |
|||||||||||
Feb. 1 - Feb. 28, 2020 |
1,894,242 |
$ | 60.97 |
1,888,887 |
$ | 666,007 |
|||||||||||
Mar. 1 - Mar. 31, 2020 |
3,074,995 |
$ | 44.97 |
3,074,995 |
$ | 527,714 |
|||||||||||
4,969,237 |
4,963,882 |
||||||||||||||||
(a) | Represents the average price per share of shares purchased under the repurchase program. |
(b) | On July 16, 2019, our board of directors authorized the repurchase of up to $1.0 billion of Class A common stock and Blackstone Holdings Partnership Units. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date. See “Part I. Item 1. Financial Statements – Notes to Condensed Consolidated Financial Statements – Note 14. Earnings Per Share and Stockholder’s Equity” and “Part I. Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Sources and Uses of Liquidity” for further information regarding this repurchase program. |
Exhibit Number |
Exhibit Description | |||
31.1* |
||||
31.2* |
||||
32.1* |
||||
32.2* |
||||
101.INS* |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||
101.SCH* |
Inline XBRL Taxonomy Extension Schema Document. | |||
101.CAL* |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||
101.DEF* |
Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||
101.LAB* |
Inline XBRL Taxonomy Extension Label Linkbase Document. | |||
101.PRE* |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||
104. |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith. |
The Blackstone Group Inc. | ||
/s/ Michael S. Chae | ||
Name: |
Michael S. Chae | |
Title: |
Chief Financial Officer | |
(Principal Financial Officer and | ||
Authorized Signatory) |