EX-99.1

Invested Performance Eligible AUM

Total Dry Powder

($ in billions)

($ in billions)

EX-99.1 2 d221821dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Blackstone Reports Third Quarter 2021 Results

New York, October 21, 2021: Blackstone (NYSE:BX) today reported its third quarter 2021 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Today, Blackstone reported the best results

in our 36-year history. Earnings increased dramatically, and all of our key financial and capital metrics reached

record or near-record levels. Most importantly, we continue to deliver outstanding investment performance for our

limited partners, with the third quarter capping our best twelve-month period for fund appreciation. Looking

forward, we have more avenues for growth than ever before, and I believe we are in the early stages of a long-term

acceleration of our business.”

Blackstone issued a full detailed presentation of its third quarter 2021 results, which can be viewed at

www.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $1.09 per share to record holders of common stock at the close of

business on November 1, 2021. This dividend will be paid on November 8, 2021.

Quarterly Investor Call Details

Blackstone will host its third quarter 2021 investor conference via public webcast on October 21, 2021 at

9:00 a.m. ET. To register, please use the following link:

https://event.webcasts.com/starthere.jsp?ei=1502265&tp_key=e7a432763c. For those unable to listen to the live

Blackstone

345 Park Avenue New York NY 10154

T 212 583 5000

www.blackstone.com

broadcast, there will be a webcast replay on the Shareholders section of Blackstone’s website at
https://ir.blackstone.com/.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-
term value for our investors, the companies we invest in, and the communities in which we work. We do this by
using extraordinary people and flexible capital to help companies solve problems. Our $731 billion in assets under
management include investment vehicles focused on private equity, real estate, public debt and equity, life
sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a
global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-Looking Statements

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our
current views with respect to, among other things, our operations, taxes, earnings and financial performance, share
repurchases and dividends. You can identify these forward-looking statements by the use of words such as
“outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,”
“approximately,” “predicts,” “intends,” “plans,” “scheduled,” “estimates,” “anticipates” or the negative version
of these words or other comparable words. Such forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. We believe these factors include but are not limited to
the impact of the novel coronavirus (“COVID-19”), as well as those described under the section entitled “Risk
Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, as such factors may be updated
from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which
are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements that are included in this report and in our other
periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no
obligation to publicly update or review any forward-looking statement, whether as a result of new information,
future developments or otherwise.

This presentation does not constitute an offer of any Blackstone Fund.

Investor and Media Relations Contacts

Weston Tucker

Blackstone

Tel: +1 (212) 583-5231

tucker@blackstone.com

Christine Anderson

Blackstone

Tel: +1 (212) 583-5182

christine.anderson@blackstone.com

LOGO

Blackstone’s Third

Quarter 2021 Earnings

OCTOBER 21, 2021

BLACKSTONE’S THIRD QUARTER 2021 GAAP RESULTS

GAAP Net Income was $3.2 billion for the quarter and $9.4 billion year-to-date (“YTD”). GAAP Net Income
Attributable to Blackstone Inc. was $1.4 billion for the quarter and $4.5 billion YTD.



($ in thousands, except per share data) (unaudited)	3Q’20		3Q’21		3Q’20 YTD		3Q’21 YTD		3Q’20 LTM		3Q’21 LTM
Revenues
Management and Advisory Fees, Net	$	1,053,851	$	1,320,795	$	2,958,411	$	3,711,159	$	3,902,311	$	4,845,297
Incentive Fees		13,498		48,206		40,959		117,537		128,569		215,239
Investment Income (Loss)
Performance Allocations
Realized		371,406		1,522,495		640,846		2,865,482		1,358,401		4,330,636
Unrealized		1,403,480		2,724,366		(981,678)		7,886,033		(853,447)		8,483,318
Principal Investments
Realized		61,017		325,414		170,814		832,512		271,349		1,053,326
Unrealized		295,308		183,754		(332,295)		1,151,904		(264,382)		1,369,592
Total Investment Income (Loss)		2,131,211		4,756,029		(502,313)		12,735,931		511,921		15,236,872
Interest and Dividend Revenue		26,497		35,048		85,505		97,477		137,651		137,203
Other		(192,159)		64,187		(109,559)		152,387		(115,969)		8,804
Total Revenues	$	3,032,898	$	6,224,265	$	2,473,003	$	16,814,491	$	4,564,483	$	20,443,415
Expenses
Compensation and Benefits
Compensation		460,983		536,199		1,395,983		1,585,941		1,843,629		2,045,577
Incentive Fee Compensation		7,385		21,007		22,339		48,763		46,928		70,849
Performance Allocations Compensation
Realized		142,149		631,632		253,141		1,192,082		548,200		1,782,171
Unrealized		509,474		1,193,853		(433,091)		3,394,041		(339,246)		3,672,616
Total Compensation and Benefits		1,119,991		2,382,691		1,238,372		6,220,827		2,099,511		7,571,213
General, Administrative and Other		171,041		217,995		497,658		608,174		684,629		822,298
Interest Expense		39,540		52,413		120,460		141,718		181,148		187,420
Fund Expenses		2,274		1,260		10,962		7,417		16,191		9,319
Total Expenses	$	1,332,846	$	2,654,359	$	1,867,452	$	6,978,136	$	2,981,479	$	8,590,250
Other Income (Loss)
Change in Tax Receivable Agreement Liability		(7,693)		(37,321)		(8,212)		(34,803)		(21,251)		(61,974)
Net Gains (Losses) from Fund Investment Activities		108,752		132,312		(60,325)		379,781		(17,402)		470,648
Income Before Provision for Taxes	$	1,801,111	$	3,664,897	$	537,014	$	10,181,333	$	1,544,351	$	12,261,839
Provision for Taxes		100,960		458,904		89,672		746,707		118,615		1,013,049
Net Income	$	1,700,151	$	3,205,993	$	447,342	$	9,434,626	$	1,425,736	$	11,248,790
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		6,868		1,550		(12,027)		2,816		(15,715)		945
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		259,761		486,907		(90,938)		1,305,273		29,858		1,613,328
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings		638,803		1,315,641		253,814		3,667,618		631,951		4,426,728
Net Income Attributable to Blackstone Inc. (“BX”)	$	794,719	$	1,401,895	$	296,493	$	4,458,919	$	779,642	$	5,207,789
Net Income Per Share of Common Stock, Basic	$	1.14	$	1.94	$	0.43	$	6.21	$	1.13	$	7.30
Net Income Per Share of Common Stock, Diluted	$	1.13	$	1.94	$	0.43	$	6.21	$	1.13	$	7.29
Income Before Provision for Taxes Margin		59.4%		58.9%		21.7%		60.6%		33.8%		60.0%

Throughout this presentation, all current period amounts are preliminary and unaudited. Totals may not add due to rounding. See pages 34-36, Definitions and
Dividend Policy, for definitions of terms used throughout this presentation. See additional notes on page 32.

Blackstone | 1

BLACKSTONE’S THIRD QUARTER 2021 HIGHLIGHTS


Financial Measures		§ Fee Related Earnings (“FRE”) of $779 million ($0.65/share) in the quarter, up 28% year-over-year – FRE was $3.0 billion over the last twelve months (“LTM”) ($2.47/share), up 37% year-over-year § Distributable Earnings (“DE”) of $1.6 billion ($1.28/share) in the quarter, up 112% year-over-year – DE was $5.4 billion over the LTM ($4.19/share), up 92% year-over-year § Net Accrued Performance Revenues of $8.3 billion ($6.90/share), up 134% year-over- year


Capital Metrics		§ Total Assets Under Management (“AUM”) of $730.7 billion, up 25% year-over-year – Fee-Earning AUM of $528.4 billion, up 19% year-over-year § Inflows of $46.7 billion in the quarter and $147.9 billion over the LTM § Realizations of $21.8 billion in the quarter and $77.2 billion over the LTM § Deployment of $37.1 billion in the quarter and $104.1 billion over the LTM


Capital Returned to Shareholders		§ Dividend of $1.09 per common share payable on November 8, 2021 – Dividends of $3.57 per common share over the LTM § Repurchased 2.9 million common shares in the quarter and 6.0 million common shares over the LTM § $1.8 billion to be distributed to shareholders with respect to the third quarter through dividends and share repurchases, and $5.3 billion over the LTM

Notes on page 32.

Blackstone | 2

BLACKSTONE’S THIRD QUARTER 2021 SEGMENT EARNINGS


							% Change							% Change
($ in thousands, except per share data)	3Q’20			3Q’21			vs. 3Q’20	3Q’20 YTD			3Q’21 YTD			vs. 3Q’20 YTD
Management and Advisory Fees, Net	$	1,057,840		$	1,320,075		25%	$	2,975,140		$	3,711,022		25%
Fee Related Performance Revenues		64,950			73,313		13%		92,449			291,370		215%
Fee Related Compensation		(360,633	)		(419,481	)	16%		(1,013,801	)		(1,239,976	)	22%
Other Operating Expenses		(151,213	)		(194,942	)	29%		(433,681	)		(538,544	)	24%
Fee Related Earnings	$	610,944		$	778,965		28%	$	1,620,107		$	2,223,872		37%


Realized Performance Revenues		319,954			1,497,477		368%		589,364			2,691,738		357%
Realized Performance Compensation		(121,730	)		(619,074	)	409%		(230,819	)		(1,108,269	)	380%
Realized Principal Investment Income		15,884			151,010		851%		55,112			512,298		830%
Net Realizations		214,108			1,029,413		381%		413,657			2,095,767		407%
Total Segment Distributable Earnings	$	825,052		$	1,808,378		119%	$	2,033,764		$	4,319,639		112%


Net Interest and Dividend Income (Loss)		(12,731	)		(16,238	)	28%		(29,306	)		(40,367	)	38%
Taxes and Related Payables		(40,225	)		(156,867	)	290%		(127,268	)		(381,762	)	200%
Distributable Earnings	$	772,096		$	1,635,273		112%	$	1,877,190		$	3,897,510		108%


Additional Metrics:
FRE per Share	$	0.51		$	0.65		27%	$	1.35		$	1.85		37%
DE per Common Share	$	0.63		$	1.28		103%	$	1.52		$	3.06		101%
Total Segment Revenues	$	1,458,628		$	3,041,875		109%	$	3,712,065		$	7,206,428		94%
Total Assets Under Management	$	584,376,213		$	730,662,712		25%	$	584,376,213		$	730,662,712		25%
Fee-Earning Assets Under Management	$	444,511,078		$	528,412,550		19%	$	444,511,078		$	528,412,550		19%

Fee Related Earnings per Share is based on end of period DE Shares Outstanding (see page 23, Share Summary). DE per Common Share is based on DE Attributable
to Common Shareholders (see page 22, Shareholder Dividends) and end of period Participating Common Shares outstanding. YTD per Share amounts represent the
sum of the last three quarters. See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.

Blackstone | 3

SUMMARY OF FINANCIALS

LTM Fee Related Earnings of $2.47 per share, an increase of 36% year-over-year.

LTM Total Segment Distributable Earnings were $6.0 billion, an increase of 97% year-over-year.

Fee Related Earnings per Share

LOGO

Segment Distributable Earnings

($ in millions)

LOGO

FRE Margin is calculated by dividing Fee Related Earnings by Fee Related Revenues (defined as the sum of Total Segment Management and Advisory Fees, Net and
Fee Related Performance Revenues).

Blackstone | 4

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

Strong appreciation across strategies led to a 23% increase in Net Accrued Performance Revenues quarter-over-
quarter to $8.3 billion ($6.90/share).

Investment Performance

(appreciation / gross returns)


	3Q’21	3Q’21 LTM
Real Estate
Opportunistic	16.2%	35.9%
Core+	7.6%	22.6%

Private Equity
Corporate Private Equity	9.9%	49.1%
Tactical Opportunities	2.3%	35.2%
Secondaries	17.0%	52.8%

Hedge Fund Solutions
BPS Composite	1.3%	13.3%

Credit & Insurance
Private Credit	4.5%	24.6%
Liquid Credit	1.1%	8.4%

Net Accrued Performance Revenues

($ in millions)

LOGO

Investment Performance represents fund appreciation for Real Estate and Private Equity and gross returns for Hedge Fund Solutions and Credit & Insurance. Secondaries appreciation is reported on a three-month lag from the fund financial reporting. Effective 3Q’21, the Secondaries fund financial reporting process was updated to generally report underlying fund investments on a same-quarter basis, if available. Previously such fund financial reporting was generally on a three-month lag. This update has permitted Secondaries appreciation to be reported on a more current basis. Secondaries appreciation is presented above as if the updated reporting process was in place for prior periods. Including the “catch up” from the reporting process change to reflect the economic and market activity of two quarters in 3Q’21 and five quarters in 3Q’21 LTM, Secondaries appreciation was 24.6% and 65.1% for 3Q’21 and 3Q’21 LTM, respectively. BPS Composite net returns were 1.1% and 12.2% for 3Q’21 and 3Q’21 LTM, respectively. Private Credit net returns were 2.8% and 18.6% for 3Q’21 and 3Q’21 LTM, respectively. Liquid Credit net returns were 1.0% and 8.1% for 3Q’21 and 3Q’21 LTM, respectively. See notes on page 32 for additional details on investment performance.

Blackstone | 5

CAPITAL METRICS – ADDITIONAL DETAIL

Inflows were $46.7 billion in the quarter, bringing LTM inflows to $147.9 billion.

Realizations were $21.8 billion in the quarter and $77.2 billion over the LTM.

Deployed $37.1 billion in the quarter and $104.1 billion over the LTM.

–

Committed an additional $30.3 billion that was not yet deployed in the quarter.


	Inflows				Realizations				Capital Deployed

($ in millions)	3Q’21		3Q’21 LTM		3Q’21		3Q’21 LTM		3Q’21		3Q’21 LTM
Real Estate	$	16,046	$	45,523	$	7,048	$	23,927	$	14,335	$	37,045
Opportunistic		4,579		5,289		5,226		18,425		3,185		9,127
Core+		10,311		37,237		1,221		3,710		10,412		24,898
BREDS		1,156		2,997		602		1,792		737		3,020
Private Equity		7,356		27,539		10,815		35,160		10,193		33,462
Corporate Private Equity		2,389		12,538		5,899		16,962		5,046		15,364
Tactical Opportunities		3,778		9,489		2,364		10,546		801		6,385
Secondaries		1,176		5,466		2,498		7,436		2,322		7,779
Infrastructure		13		46		54		216		2,024		3,934
Hedge Fund Solutions		3,342		9,733		423		1,465		1,403		3,857

Credit & Insurance		19,997		65,125		3,466		16,650		11,173		29,722

Total Blackstone	$	46,740	$	147,920	$	21,752	$	77,202	$	37,104	$	104,086

Corporate Private Equity also includes Life Sciences and BTAS. Tactical Opportunities also includes Blackstone Growth.

Blackstone | 6

ASSETS UNDER MANAGEMENT

Total AUM increased to $730.7 billion, up 25% year-over-year, with $46.7 billion of inflows in the quarter and $147.9 billion over the LTM.

Fee-Earning AUM of $528.4 billion was up 19% year-over-year, with $37.0 billion of inflows in the quarter and $119.9 billion over the LTM.

Perpetual Capital AUM reached $197.0 billion, up 71% year-over-year.


Total AUM ($ in billions)	Fee-Earning AUM ($ in billions)	Perpetual Capital AUM ($ in billions)

Blackstone | 7

ADDITIONAL CAPITAL DETAIL

Invested Performance Eligible AUM reached $392.7 billion at quarter end, up 47% year-over-year.

Undrawn capital (“Total Dry Powder”) available for investment of $127.2 billion.

Invested Performance Eligible AUM represents the fair value of invested assets that are eligible to earn performance revenues.

Blackstone | 8

Segment Highlights

Blackstone | 9

REAL ESTATE

Total AUM: Increased 32% to $230.2 billion with inflows of $16.0 billion in the quarter and $45.5 billion over the LTM.

–

Inflows during the quarter included a record $7.9 billion in BREIT, $4.0 billion in the third Asian opportunistic fund and $2.2 billion across BPP funds.

–

October 1 subscriptions of $2.2 billion in BREIT and 248 million in BEPIF, a newly launched European income fund, both of which are not yet included in AUM.

Realizations: $7.0 billion in the quarter and $23.9 billion over the LTM.

–

Announced The Cosmopolitan of Las Vegas sale for $5.65 billion, Real Estate’s most profitable single-asset sale ever.

Capital Deployed: $14.3 billion in the quarter and $37.0 billion over the LTM; deployments in the quarter include the acquisition of Home Partners of America and CityCenter Las Vegas, and the privatization of QTS Data Centers.

–

Committed an additional $10.0 billion in the quarter; commitments include the acquisition of AIG’s affordable housing portfolio as well as a 15 million square-foot portfolio of high-quality infill U.S. logistics assets.

Appreciation: Opportunistic funds and Core+ funds appreciated 16.2% and 7.6% for the quarter, and 35.9% and 22.6% over the LTM, respectively.


									% Change									% Change
($ in thousands)	3Q’20				3Q’21				vs. 3Q’20	3Q’20 YTD				3Q’21 YTD				vs. 3Q’20 YTD
Management Fees, Net		$	409,210			$	538,738		32%		$	1,207,638			$	1,481,571		23%
Fee Related Performance Revenues			55,327				35,625		(36)%			66,383				224,793		239%
Fee Related Compensation			(138,342	)			(137,313	)	(1)%			(375,278	)			(447,762	)	19%
Other Operating Expenses			(42,566	)			(61,398	)	44%			(127,567	)			(160,520	)	26%
Fee Related Earnings		$	283,629			$	375,652		32%		$	771,176			$	1,098,082		42%

Realized Performance Revenues			18,872				495,727		n/m			96,801				935,418		866%
Realized Performance Compensation			(7,343	)			(199,100	)	n/m			(33,282	)			(376,790	)	n/m
Realized Principal Investment Income			4,946				42,677		763%			13,819				171,626		n/m
Net Realizations			16,475				339,304		n/m			77,338				730,254		844%
Segment Distributable Earnings		$	300,104			$	714,956		138%		$	848,514			$	1,828,336		115%

Segment Revenues		$	488,355			$	1,112,767		128%		$	1,384,641			$	2,813,408		103%
Total AUM		$	173,796,594			$	230,183,235		32%		$	173,796,594			$	230,183,235		32%
Fee-Earning AUM		$	137,877,640			$	180,168,093		31%		$	137,877,640			$	180,168,093		31%

Blackstone | 10

PRIVATE EQUITY

Total AUM: Increased 22% to $231.5 billion with inflows of $7.4 billion in the quarter and $27.5 billion over the LTM.

–

Inflows in the quarter included $2.1 billion for the fourth Blackstone Tactical Opportunities fund and $766 million for the second Corporate Private Equity Asia fund.

Realizations: $10.8 billion in the quarter and $35.2 billion over the LTM; realizations in the quarter included proceeds from Mphasis and Blue Yonder sales.

Capital Deployed: $10.2 billion in the quarter and $33.5 billion over the LTM including Ellucian, Sphera and Hello Sunshine during the quarter.

–

Committed an additional $8.2 billion that was not yet deployed in the quarter, including investments in Chamberlain Group and Interplex.

Appreciation: Corporate Private Equity increased 9.9% in the quarter and 49.1% over the LTM.

–

Tactical Opportunities increased 2.3% in the quarter and 35.2% over the LTM; Secondaries increased 17.0% in the quarter and 52.8% over the LTM.


									% Change									% Change
($ in thousands)	3Q’20				3Q’21				vs. 3Q’20	3Q’20 YTD				3Q’21 YTD				vs. 3Q’20 YTD
Management and Advisory Fees, Net		$	348,173			$	420,334		21%		$	883,905			$	1,220,059		38%
Fee Related Compensation			(119,301	)			(139,211	)	17%			(322,494	)			(416,575	)	29%
Other Operating Expenses			(45,702	)			(56,792	)	24%			(131,530	)			(168,888	)	28%
Fee Related Earnings		$	183,170			$	224,331		22%		$	429,881			$	634,596		48%

Realized Performance Revenues			295,239				988,331		235%			471,828				1,627,186		245%
Realized Performance Compensation			(112,713	)			(417,386	)	270%			(192,372	)			(687,970	)	258%
Realized Principal Investment Income			10,248				77,570		657%			38,011				220,769		481%
Net Realizations			192,774				648,515		236%			317,467				1,159,985		265%
Segment Distributable Earnings		$	375,944			$	872,846		132%		$	747,348			$	1,794,581		140%

Segment Revenues		$	653,660			$	1,486,235		127%		$	1,393,744			$	3,068,014		120%
Total AUM		$	189,153,816			$	231,520,802		22%		$	189,153,816			$	231,520,802		22%
Fee-Earning AUM		$	129,701,748			$	139,080,258		7%		$	129,701,748			$	139,080,258		7%

See note on page 5 for additional details on Secondaries appreciation.

Blackstone | 11

HEDGE FUND SOLUTIONS

Total AUM: $80.6 billion with inflows of $3.3 billion in the quarter and $9.7 billion over the LTM.

–

October 1 subscriptions of $1.1 billion are not yet included in Total AUM.

Returns: BPS Composite gross return of 1.3% in the quarter (1.1% net), outperforming the HFRX Global Hedge Fund Return Index, which was down (0.1)%.

–

LTM gross returns of 13.3% (12.2% net), with significantly less volatility than the broader markets, compared to 8.9% return for the HFRX Global Hedge Fund Return Index.


									% Change									% Change
($ in thousands)	3Q’20				3Q’21				vs. 3Q’20	3Q’20 YTD				3Q’21 YTD				vs. 3Q’20 YTD
Management Fees, Net		$	147,315			$	157,164		7%		$	434,005			$	468,584		8%
Fee Related Compensation			(41,405	)			(35,092	)	(15)%			(127,949	)			(112,580	)	(12)%
Other Operating Expenses			(19,652	)			(25,476	)	30%			(56,126	)			(66,521	)	19%
Fee Related Earnings		$	86,258			$	96,596		12%		$	249,930			$	289,483		16%

Realized Performance Revenues			5,618				7,271		29%			8,867				55,900		530%
Realized Performance Compensation			(1,257	)			(1,443	)	15%			(2,202	)			(13,977	)	535%
Realized Principal Investment Income			(150	)			14,943		n/m			(1,090	)			52,618		n/m
Net Realizations			4,211				20,771		393%			5,575				94,541		n/m
Segment Distributable Earnings		$	90,469			$	117,367		30%		$	255,505			$	384,024		50%

Segment Revenues		$	152,783			$	179,378		17%		$	441,782			$	577,102		31%
Total AUM		$	77,788,713			$	80,602,257		4%		$	77,788,713			$	80,602,257		4%
Fee-Earning AUM		$	71,699,793			$	73,266,849		2%		$	71,699,793			$	73,266,849		2%

Blackstone | 12

CREDIT & INSURANCE

Total AUM: Increased 31% to $188.4 billion with inflows of $20.0 billion in the quarter and $65.1 billion over the LTM.

–

$3.5 billion of equity capital raised in the quarter for BCRED, a continuously offered non-traded BDC, bringing total equity raised to $8.4 billion life to date and Total Global Direct Lending AUM to $47.9 billion; BCRED had October 1 subscriptions of $1.1 billion not yet included in Total AUM.

–

Latest Mezzanine / Opportunistic strategy had $1.0 billion of inflows in the quarter, bringing total investable capital to $8.7 billion for the overall strategy.

–

Closed 3 new CLOs (1 U.S. and 2 European) for $1.6 billion and closed 5 CLO refinancings and resets (3 U.S. and 2 European) for $2.3 billion.

Realizations: $3.5 billion in the quarter and $16.6 billion over the LTM.

Capital Deployed: Record $11.2 billion in the quarter, driven by $8.6 billion from U.S. Direct Lending, and $29.7 billion over the LTM; committed an additional $11.2 billion that was not yet deployed in the quarter.

Returns: Private Credit gross return of 4.5% (2.8% net), positively impacted by improving fundamentals and opportunistic exits, and Liquid Credit gross return of 1.1% (1.0% net) for the quarter.


									% Change									% Change
($ in thousands)	3Q’20				3Q’21				vs. 3Q’20	3Q’20 YTD				3Q’21 YTD				vs. 3Q’20 YTD
Management Fees, Net		$	153,142			$	203,839		33%		$	449,592			$	540,808		20%
Fee Related Performance Revenues			9,623				37,688		292%			26,066				66,577		155%
Fee Related Compensation			(61,585	)			(107,865	)	75%			(188,080	)			(263,059	)	40%
Other Operating Expenses			(43,293	)			(51,276	)	18%			(118,458	)			(142,615	)	20%
Fee Related Earnings		$	57,887			$	82,386		42%		$	169,120			$	201,711		19%


Realized Performance Revenues			225				6,148		n/m			11,868				73,234		517%
Realized Performance Compensation			(417	)			(1,145	)	175%			(2,963	)			(29,532	)	897%
Realized Principal Investment Income			840				15,820		n/m			4,372				67,285		n/m
Net Realizations			648				20,823		n/m			13,277				110,987		736%
Segment Distributable Earnings		$	58,535			$	103,209		76%		$	182,397			$	312,698		71%


Segment Revenues		$	163,830			$	263,495		61%		$	491,898			$	747,904		52%
Total AUM		$	143,637,090			$	188,356,418		31%		$	143,637,090			$	188,356,418		31%
Fee-Earning AUM		$	105,231,897			$	135,897,350		29%		$	105,231,897			$	135,897,350		29%

Blackstone | 13

Supplemental Details

Blackstone | 14

TOTAL SEGMENTS


($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20 YTD			3Q’21 YTD

Base Management Fees	$	1,043,770		$	1,076,094		$	1,117,290		$	1,140,051		$	1,207,866		$	2,895,960		$	3,465,207

Transaction, Advisory and Other Fees, Net		33,628			75,290			78,640			78,125			114,784			132,585			271,549

Management Fee Offsets		(19,558	)		(15,359	)		(17,725	)		(5,434	)		(2,575	)		(53,405	)		(25,734	)

Total Management and Advisory Fees, Net		1,057,840			1,136,025			1,178,205			1,212,742			1,320,075			2,975,140			3,711,022

Fee Related Performance Revenues		64,950			286,227			169,168			48,889			73,313			92,449			291,370

Fee Related Compensation		(360,633	)		(482,769	)		(445,110	)		(375,385	)		(419,481	)		(1,013,801	)		(1,239,976	)

Other Operating Expenses		(151,213	)		(189,536	)		(161,424	)		(182,178	)		(194,942	)		(433,681	)		(538,544	)

Fee Related Earnings	$	610,944		$	749,947		$	740,839		$	704,068		$	778,965		$	1,620,107		$	2,223,872



Realized Performance Revenues		319,954			1,276,629			401,323			792,938			1,497,477			589,364			2,691,738

Realized Performance Compensation		(121,730	)		(483,528	)		(150,924	)		(338,271	)		(619,074	)		(230,819	)		(1,108,269	)

Realized Principal Investment Income		15,884			103,821			298,156			63,132			151,010			55,112			512,298

Total Net Realizations		214,108			896,922			548,555			517,799			1,029,413			413,657			2,095,767

Total Segment Distributable Earnings	$	825,052		$	1,646,869		$	1,289,394		$	1,221,867		$	1,808,378		$	2,033,764		$	4,319,639



Net Interest and Dividend Income (Loss)		(12,731	)		(5,604	)		(12,928	)		(11,201	)		(16,238	)		(29,306	)		(40,367	)

Taxes and Related Payables		(40,225	)		(176,859	)		(84,222	)		(140,673	)		(156,867	)		(127,268	)		(381,762	)

Distributable Earnings	$	772,096		$	1,464,406		$	1,192,244		$	1,069,993		$	1,635,273		$	1,877,190		$	3,897,510



Additional Metrics:

Total Segment Revenues	$	1,458,628		$	2,802,702		$	2,046,852		$	2,117,701		$	3,041,875		$	3,712,065		$	7,206,428

Total Assets Under Management	$	584,376,213		$	618,556,928		$	648,803,007		$	684,028,712		$	730,662,712		$	584,376,213		$	730,662,712

Fee-Earning Assets Under Management	$	444,511,078		$	469,433,114		$	481,225,407		$	498,932,526		$	528,412,550		$	444,511,078		$	528,412,550

Blackstone | 15

ASSETS UNDER MANAGEMENT - ROLLFORWARD

Total AUM Rollforward

($ in millions)



	Three Months Ended September 30, 2021										Twelve Months Ended September 30, 2021


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	207,548	$	223,621	$	79,145	$	173,714	$	684,029	$	173,797	$	189,154	$	77,789	$	143,637	$	584,376
Inflows		16,046		7,356		3,342		19,997		46,740		45,523		27,539		9,733		65,125		147,920
Outflows		(1,117)		(449)		(2,359)		(2,644)		(6,568)		(4,179)		(3,373)		(15,470)		(13,666)		(36,687)
Net Flows		14,929		6,907		983		17,354		40,172		41,344		24,167		(5,737)		51,460		111,233
Realizations		(7,048)		(10,815)		(423)		(3,466)		(21,752)		(23,927)		(35,160)		(1,465)		(16,650)		(77,202)
Market Activity		14,754		11,808		897		755		28,215		38,970		53,361		10,016		9,909		112,255
Ending Balance	$	230,183	$	231,521	$	80,602	$	188,356	$	730,663	$	230,183	$	231,521	$	80,602	$	188,356	$	730,663
% Change		11%		4%		2%		8%		7%		32%		22%		4%		31%		25%

Fee-Earning AUM Rollforward

($ in millions)



	Three Months Ended September 30, 2021										Twelve Months Ended September 30, 2021


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	166,263	$	132,475	$	72,240	$	127,953	$	498,933	$	137,878	$	129,702	$	71,700	$	105,232	$	444,511
Inflows		13,568		8,372		3,011		12,023		36,974		44,334		17,730		9,465		48,396		119,925
Outflows		(821)		(822)		(2,282)		(1,915)		(5,840)		(3,425)		(1,938)		(15,647)		(11,902)		(32,912)
Net Flows		12,747		7,550		729		10,108		31,134		40,909		15,792		(6,182)		36,493		87,013
Realizations		(4,228)		(2,649)		(413)		(1,781)		(9,072)		(13,030)		(12,673)		(1,405)		(11,188)		(38,295)
Market Activity		5,386		1,704		711		(384)		7,418		14,411		6,259		9,153		5,360		35,184
Ending Balance	$	180,168	$	139,080	$	73,267	$	135,897	$	528,413	$	180,168	$	139,080	$	73,267	$	135,897	$	528,413
% Change		8%		5%		1%		6%		6%		31%		7%		2%		29%		19%

Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases, inter-segment
allocations and acquisitions. Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-
side commitments). Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from CLOs. Market Activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations. AUM is reported in the segment where the assets are managed. Total AUM Market Activity for the LTM period includes an adjustment for a change in methodology, see additional notes on page 33.

Blackstone | 16

DECONSOLIDATED BALANCE SHEET HIGHLIGHTS

At September 30, 2021, Blackstone had $8.2 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.4 billion of cash and net investments, or $15.26 per share.

Blackstone has a $2.3 billion undrawn credit revolver and maintains A+/A+ ratings.

–

On August 5, 2021, Blackstone issued $650 million of 7-year notes at a 1.625% coupon, $800 million of 10.5-year notes at a 2.0% coupon and $550 million of 30-year notes at a 2.85% coupon.



($ in millions)	3Q’21

Cash and Cash Equivalents	$	5,011

Corporate Treasury and Other Investments		3,222

GP/Fund Investments		1,844

Net Accrued Performance Revenues		8,311

Cash and Net Investments	$	18,389

Outstanding Bonds (at par)		7,637

Cash and Net Investments

(per share)

LOGO

A+ / A+

rated by S&P and Fitch

$2.3B

undrawn credit revolver

with November 2025 maturity

$8.2B

total cash, corporate

treasury and other

Balance Sheet Highlights exclude the consolidated Blackstone Funds. Effective in 3Q’21, Corporate Treasury Investments includes Other Investments and has
been renamed to Corporate Treasury and Other Investments. Previously, Other Investments was included within GP/Fund Investments. Other Investments was
$1.1 billion as of September 30, 2021, which was comprised of $843 million of liquid investments and $241 million of illiquid investments. See notes on pages 29
and 33 for additional details on non-GAAP balance sheet measures.

Blackstone | 17

NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL


($ in millions, except per share data)	3Q’20		2Q’21		3Q’21		3Q’21
($ in millions, except per share data)	3Q’20		2Q’21		3Q’21		Per Share
Real Estate
BREP IV	$	8	$	19	$	22	$	0.02
BREP V		7		26		44		0.04
BREP VI		46		42		34		0.03
BREP VII		238		300		476		0.40
BREP VIII		782		626		713		0.59
BREP IX		90		359		551		0.46
BREP Europe IV		104		89		90		0.07
BREP Europe V		179		312		476		0.40
BREP Europe VI		-		60		176		0.15
BREP Asia I		102		107		112		0.09
BREP Asia II		-		98		116		0.10
BPP		227		265		362		0.30
BREIT		-		247		513		0.43
BREDS		6		32		40		0.03
BTAS		42		6		23		0.02
Real Estate	$	1,831	$	2,591	$	3,747	$	3.11
Private Equity
BCP IV		19		9		8		0.01
BCP V		-		39		57		0.05
BCP VI		668		740		561		0.47
BCP VII		458		1,351		1,278		1.06
BCP VIII		-		89		216		0.18
BCP Asia I		40		213		407		0.34
BEP I		23		28		33		0.03
BEP III		-		47		64		0.05
BCEP		85		170		198		0.16
Tactical Opportunities		138		374		296		0.25
Blackstone Growth		9		59		45		0.04
Secondaries		76		262		430		0.36
Infrastructure		-		81		79		0.07
Life Sciences		7		23		33		0.03
BTAS/Other		20		151		195		0.16
Private Equity	$	1,544	$	3,637	$	3,899	$	3.24

Hedge Fund Solutions	$	54	$	300	$	362	$	0.30

Credit & Insurance	$	121	$	233	$	302	$	0.25

Net Accrued Performance Revenues	$	3,550	$	6,761	$	8,311	$	6.90

3Q’21 QoQ Rollforward

($ in millions)


			Net		Net
			Performance		Realized
	2Q’21		Revenues		Distributions			3Q’21

Real Estate	$	2,591	$	1,472	$	(316	)	$	3,747

Private Equity		3,637		834		(571	)		3,899

HFS		300		68		(6	)		362

Credit & Insurance		233		95		(26	)		302

Total	$	6,761	$	2,469	$	(919	)	$	8,311

QoQ Change									23%

3Q’21 LTM Rollforward

($ in millions)


			Net		Net
			Performance		Realized
	3Q’20		Revenues		Distributions			3Q’21

Real Estate	$	1,831	$	3,165	$	(1,249	)	$	3,747

Private Equity		1,544		3,531		(1,175	)		3,899

HFS		54		493		(185	)		362

Credit & Insurance		121		279		(98	)		302

Total	$	3,550	$	7,468	$	(2,707	)	$	8,311

YoY Change									134%

Net Accrued Performance Revenues (“NAPR”) are presented net of performance compensation and excludes Performance Revenues realized but not yet distributed as of the reporting date and clawback amounts, if any, which are disclosed in the 10-K/Q. Real Estate and Private Equity include co-investments, as applicable. Per Share calculations are based on end of period DE Shares Outstanding (see page 23, Share Summary).

Blackstone | 18

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021^(a)


($/€ in thousands, except where noted)	Committed		Available		Unrealized Investments			Realized Investments			Total Investments			Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date)	Capital		Capital (b)		Value		MOIC (c)	Value		MOIC (c)	Value		MOIC (c)	Realized	Total
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		-		84,502	1.7x		4,579,740	1.7x		4,664,242	1.7x	13%	12%
BREP V (Dec 2005 / Feb 2007)		5,539,418		230,597		229,254	1.6x		13,214,326	2.3x		13,443,580	2.3x	11%	11%
BREP VI (Feb 2007 / Aug 2011)		11,060,444		550,484		375,481	2.0x		27,371,647	2.5x		27,747,128	2.5x	13%	13%
BREP VII (Aug 2011 / Apr 2015)		13,496,823		1,525,932		7,320,750	1.6x		23,391,546	2.1x		30,712,296	2.0x	22%	15%
BREP VIII (Apr 2015 / Jun 2019)		16,576,617		2,571,289		14,852,933	1.5x		16,977,295	2.4x		31,830,228	1.9x	29%	17%
*BREP IX (Jun 2019 / Dec 2024)		21,007,890		9,955,631		16,356,581	1.5x		2,543,821	1.9x		18,900,402	1.5x	n/m	36%
Total Global BREP	$	73,122,355	$	14,833,933	$	39,219,501	1.5x	$	95,613,293	2.3x	$	134,832,794	2.0x	18%	16%
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		-		-	n/a		2,576,670	1.8x		2,576,670	1.8x	8%	8%
BREP Europe III (Jun 2008 / Sep 2013)		3,205,167		463,195		339,646	0.5x		5,738,120	2.5x		6,077,766	2.1x	20%	14%
BREP Europe IV (Sep 2013 / Dec 2016)		6,675,950		1,345,550		1,946,782	1.3x		9,547,188	2.0x		11,493,970	1.8x	20%	14%
BREP Europe V (Dec 2016 / Oct 2019)		7,937,730		1,597,804		8,890,814	1.6x		2,182,232	2.7x		11,073,046	1.7x	41%	14%
*BREP Europe VI (Oct 2019 / Apr 2025)		9,838,021		6,004,179		5,294,958	1.4x		288,935	1.7x		5,583,893	1.4x	49%	29%
Total BREP Europe	€	30,110,788	€	9,410,728	€	16,472,200	1.4x	€	21,706,315	2.1x	€	38,178,515	1.8x	16%	13%
BREP Asia I (Jun 2013 / Dec 2017)	$	4,261,983	$	916,830	$	2,503,201	1.4x	$	5,897,757	2.1x	$	8,400,958	1.8x	21%	13%
*BREP Asia II (Dec 2017 / Jun 2023)		7,339,220		3,031,637		5,638,584	1.3x		604,391	1.8x		6,242,975	1.3x	44%	12%
BREP Asia III (TBD)		3,956,850		3,956,850		-	n/a		-	n/a		-	n/a	n/a	n/a
BREP Co-Investment (f)		7,055,974		32,023		678,411	1.8x		14,930,723	2.2x		15,609,134	2.2x	16%	16%
Total BREP	$	130,760,742	$	33,668,896	$	67,039,516	1.5x	$	144,113,788	2.2x	$	211,153,304	1.9x	17%	15%
*Core+ BPP (Various) (g)		n/a		n/a		52,749,976	n/a		9,401,220	n/a		62,151,196	n/a	n/a	10%
*Core+ BREIT (Various) (h)		n/a		n/a		41,902,410	n/a		1,222,016	n/a		43,124,426	n/a	n/a	12%
*BREDS High-Yield (Various) (i)		19,990,586		7,561,666		5,374,549	1.1x		14,145,200	1.3x		19,519,749	1.2x	11%	10%

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		16,346	n/a		2,953,649	1.4x		2,969,995	1.4x	6%	6%
BCP IV (Nov 2002 / Dec 2005)		6,773,182		176,864		120,893	1.3x		21,479,598	2.9x		21,600,491	2.8x	36%	36%
BCP V (Dec 2005 / Jan 2011)		21,009,112		1,035,259		701,207	47.4x		37,876,327	1.9x		38,577,534	1.9x	8%	8%
BCP VI (Jan 2011 / May 2016)		15,202,513		1,378,295		9,056,562	1.8x		21,927,991	2.2x		30,984,553	2.1x	18%	13%
BCP VII (May 2016 / Feb 2020)		18,836,441		1,938,731		26,617,761	1.9x		7,674,654	2.2x		34,292,415	1.9x	31%	21%
*BCP VIII (Feb 2020 / Feb 2026)		25,056,449		19,805,651		8,011,713	1.5x		320,833	2.9x		8,332,546	1.5x	n/m	n/m
Energy I (Aug 2011 / Feb 2015)		2,441,558		174,492		768,066	1.5x		3,631,321	1.9x		4,399,387	1.8x	14%	11%
Energy II (Feb 2015 / Feb 2020)		4,914,563		1,021,332		4,475,639	1.4x		1,222,777	1.0x		5,698,416	1.2x	(7)%	3%
*Energy III (Feb 2020 / Feb 2026)		4,273,555		3,134,909		1,866,059	1.7x		260,277	2.2x		2,126,336	1.7x	96%	82%
BCP Asia I (Dec 2017 / Sep 2021)		2,401,426		1,065,744		5,163,068	3.9x		661,489	3.9x		5,824,557	3.9x	94%	84%
*BCP Asia II (Sep 2021 / Sep 2027)		6,009,332		5,996,852		-	n/a		-	n/a		-	n/a	n/a	n/a
Core Private Equity I (Jan 2017 / Mar 2021) (j)		4,756,010		1,131,903		7,542,438	2.0x		1,284,639	2.3x		8,827,077	2.0x	38%	25%
*Core Private Equity II (Mar 2021 / Mar 2026) (j)		8,178,339		7,669,126		531,171	1.1x		-	n/a		531,171	1.1x	n/a	n/m
Total Corporate Private Equity	$	128,177,413	$	44,553,733	$	64,870,923	1.8x	$	113,476,800	2.1x	$	178,347,723	2.0x	16%	16%

Notes on page 21. BREP – Blackstone Real Estate Partners, BREIT – Blackstone Real Estate Income Trust, BPP – Blackstone Property Partners, BREDS – Blackstone Real Estate Debt Strategies, BCP – Blackstone Capital Partners, BCOM – Blackstone Communications.

* Represents funds that are currently in their investment period and open ended funds.

Blackstone | 19

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021^(a) – (CONT’D)


($/€ in thousands, except where noted)	Committed		Available		Unrealized Investments				Realized Investments			Total Investments			Net IRRs (d)
Fund (Investment Period Beginning Date / Ending Date)	Capital		Capital (b)		Value		MOIC (c)		Value		MOIC (c)	Value		MOIC (c)	Realized	Total
Private Equity (continued)
Tactical Opportunities
*Tactical Opportunities (Various)	$	22,793,022	$	7,576,444	$	14,041,355		1.4x	$	16,303,649	1.9x	$	30,345,004	1.6x	19%	13%
*Tactical Opportunities Co-Investment and Other (Various)		12,410,524		4,960,882		4,617,020		1.3x		6,209,151	1.8x		10,826,171	1.5x	19%	17%
Total Tactical Opportunities	$	35,203,546	$	12,537,326	$	18,658,375		1.3x	$	22,512,800	1.9x	$	41,171,175	1.6x	19%	14%
*Blackstone Growth (Jul 2020 / Jul 2025)		4,761,851		3,232,049		2,240,854		1.4x		299,451	4.0x		2,540,305	1.5x	n/m	90%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (k)		11,863,351		917,190		639,677		n/a		17,356,347	n/a		17,996,024	1.6x	n/a	13%
Strategic Partners VI (Apr 2014 / Apr 2016) (k)		4,362,750		1,380,208		1,430,288		n/a		3,667,757	n/a		5,098,045	1.6x	n/a	16%
Strategic Partners VII (May 2016 / Mar 2019) (k)		7,489,970		2,060,914		6,087,919		n/a		3,909,313	n/a		9,997,232	1.9x	n/a	23%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (k)		1,749,807		409,161		1,208,965		n/a		598,511	n/a		1,807,476	1.3x	n/a	14%
*Strategic Partners VIII (Mar 2019 / Jul 2023) (k)		10,763,600		4,286,329		7,887,716		n/a		2,421,810	n/a		10,309,526	1.7x	n/a	57%
*Strategic Partners Real Estate, SMA and Other (Various) (k)		7,878,498		2,371,801		3,375,646		n/a		2,096,825	n/a		5,472,471	1.4x	n/a	17%
*Strategic Partners Infra III (Jun 2020 / Jul 2024) (k)		3,250,100		2,508,962		176,077		n/a		14,819	n/a		190,896	2.9x	n/a	n/m
Total Strategic Partners (Secondaries)	$	47,358,076	$	13,934,565	$	20,806,288		n/a	$	30,065,382	n/a	$	50,871,670	1.6x	n/a	16%
*Infrastructure (Various)		13,658,063		7,435,523		7,778,444		1.3x		199,291	n/a		7,977,735	1.3x	n/a	16%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)		910,000		225,286		910,982		1.6x		39,952	0.9x		950,934	1.5x	(18)%	17%
*BXLS V (Jan 2020 / Jan 2025)		4,779,454		3,733,343		1,291,353		1.4x		-	n/a		1,291,353	1.4x	n/a	21%

Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)	$	2,000,000	$	97,114	$	19,839		1.0x	$	4,775,786	1.6x	$	4,795,625	1.6x	n/a	17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)		4,120,000		1,007,503		925,999		0.7x		5,807,890	1.6x		6,733,889	1.4x	n/a	10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)		6,639,133		1,025,006		4,681,761		1.1x		4,415,663	1.7x		9,097,424	1.3x	n/a	12%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)		4,556,271		3,885,152		705,694		1.0x		8,817	n/a		714,511	1.0x	n/a	n/m
Stressed / Distressed I (Sep 2009 / May 2013)		3,253,143		76,000		-		n/a		5,776,841	1.3x		5,776,841	1.3x	n/a	9%
Stressed / Distressed II (Jun 2013 / Jun 2018)		5,125,000		547,430		629,162		0.7x		4,984,957	1.2x		5,614,119	1.1x	n/a	1%
*Stressed / Distressed III (Dec 2017 / Dec 2022)		7,356,380		3,665,909		2,188,533		1.0x		2,030,556	1.4x		4,219,089	1.1x	n/a	8%
Energy I (Nov 2015 / Nov 2018)		2,856,867		1,051,129		1,414,948		1.1x		1,647,873	1.6x		3,062,821	1.3x	n/a	8%
*Energy II (Feb 2019 / Feb 2024)		3,616,081		2,432,321		1,388,126		1.2x		416,616	1.7x		1,804,742	1.3x	n/a	31%
European Senior Debt I (Feb 2015 / Feb 2019)	€	1,964,689	€	268,902	€	1,321,951		1.0x	€	1,944,977	1.4x	€	3,266,928	1.2x	n/a	6%
*European Senior Debt II (Jun 2019 / Jun 2024)	€	4,088,344	€	2,989,441	€	2,153,577		1.0x	€	742,653	1.3x	€	2,896,230	1.1x	n/a	18%
Total Credit Drawdown Funds (l)	$	46,428,533	$	17,563,834	$	15,982,025		1.0x	$	32,980,483	1.5x	$	48,962,508	1.3x	n/a	10%
*Direct Lending BDC (Various) (m)		3,926,295		-		4,142,452		n/a		444,215	n/a		4,586,667	n/a	n/a	10%

Notes on page 21. BXLS – Blackstone Life Sciences.

* Represents funds that are currently in their investment period and open ended funds.

Blackstone | 20

INVESTMENT RECORDS AS OF SEPTEMBER 30, 2021 – NOTES

The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone Inc.

n/m

Not meaningful generally due to the limited time since initial investment.

n/a

Not applicable.

(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)

Unless otherwise indicated, Net Internal Rate of Return (“IRR”) represents the annualized inception to September 30, 2021 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 of cash flows 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 September 30, 2021. Realized Investment Value represents BREIT’s cash distributions, net of servicing fees. The 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.

(j)

Blackstone Core Equity Partners is a core private equity strategy which invests with a more modest risk profile and longer hold period than traditional private equity.

(k)

Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOICs are not applicable. Returns are calculated from results that are reported on a three-month lag from the fund financial statements and therefore do not include the impact of economic and market activities in the current quarter.

(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.

(m)

Unrealized Investment Value reflects Blackstone Secured Lending Fund’s (“BXSL”) net asset value as of September 30, 2021. Realized Investment Value represents BXSL’s cash distributions. BXSL’s net return is annualized and calculated since inception starting on November 20, 2018, as the change in NAV per share during the period, plus distributions per share (assuming dividends and distributions are reinvested in accordance with the Company’s dividend reinvestment plan) divided by the beginning NAV per share. Does not currently include Blackstone Private Credit Fund (“BCRED”), a continuously offered non-traded BDC.

Blackstone | 21

SHAREHOLDER DIVIDENDS

Generated $1.28 of Distributable Earnings per common share during the quarter, bringing the year-to-date amount to $3.06 per common share.

Blackstone declared a quarterly dividend of $1.09 per common share to record holders as of November 1, 2021; payable on November 8, 2021.


																% Change							% Change
($ in thousands, except per share data)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			vs. 3Q’20	3Q’20 YTD			3Q’21 YTD			vs. 3Q’20 YTD

Distributable Earnings	$	772,096		$	1,464,406		$	1,192,244		$	1,069,993		$	1,635,273		112%	$	1,877,190		$	3,897,510		108%

Add: Other Payables Attributable to Common Shareholders		23,461			154,783			61,249			120,336			133,841		470%		78,334			315,425		303%

DE before Certain Payables		795,557			1,619,189			1,253,493			1,190,329			1,769,114		122%		1,955,524			4,212,935		115%

Percent to Common Shareholders		58	%		59	%		59	%		60	%		60	%			58	%		60	%

DE before Certain Payables Attributable to Common Shareholders		464,233			949,854			741,662			710,081			1,059,142		128%		1,134,613			2,510,885		121%

Less: Other Payables Attributable to Common Shareholders		(23,461	)		(154,783	)		(61,249	)		(120,336	)		(133,841	)	470%		(78,334	)		(315,425	)	303%

DE Attributable to Common Shareholders		440,772			795,071			680,413			589,745			925,301		110%		1,056,279			2,195,460		108%

DE per Common Share	$	0.63		$	1.13		$	0.96		$	0.82		$	1.28		103%	$	1.52		$	3.06		101%

Less: Retained Capital per Common Share	$	(0.09)		$	(0.17)		$	(0.14)		$	(0.12)		$	(0.19)		111%	$	(0.22)		$	(0.45)		105%

Actual Dividend per Common Share	$	0.54		$	0.96		$	0.82		$	0.70		$	1.09		102%	$	1.30		$	2.61		101%

Record Date														Nov 1, 2021

Payable Date														Nov 8, 2021

A detailed description of Blackstone’s dividend policy and the definition of Distributable Earnings can be found on pages 34-36, Definitions and Dividend Policy. See additional notes on page 33.

Blackstone | 22

SHARE SUMMARY

Distributable Earnings Shares Outstanding as of quarter end of 1.205 billion shares.

–

Repurchased 2.9 million common shares in the quarter and 6.0 million common shares over the LTM.

–

Available authorization remaining was $403 million at September 30, 2021.



	3Q’20		4Q’20		1Q’21		2Q’21		3Q’21

Participating Common Shares		700,649,135		703,959,789		711,065,543		720,474,539		721,369,398

Participating Partnership Units		500,054,874		496,060,455		490,716,529		487,276,882		483,553,949

Distributable Earnings Shares Outstanding		1,200,704,009		1,200,020,244		1,201,782,072		1,207,751,421		1,204,923,347

Participating Common Shares and Participating Partnership Units include both issued and outstanding shares and unvested shares that participate in dividends.

Blackstone | 23

Reconciliations and Disclosures

Blackstone | 24

RECONCILIATION OF GAAP TO NON-GAAP MEASURES


	QTD															YTD						LTM


($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21

Net Income Attributable to Blackstone Inc.	$	794,719		$	748,870		$	1,747,872		$	1,309,152		$	1,401,895		$	296,493		$	4,458,919		$	779,642		$	5,207,789

Net Income Attributable to Non-Controlling Interests in Blackstone Holdings		638,803			759,110			1,235,784			1,116,193			1,315,641			253,814			3,667,618			631,951			4,426,728

Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		259,761			308,055			386,850			431,516			486,907			(90,938	)		1,305,273			29,858			1,613,328

Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		6,868			(1,871	)		629			637			1,550			(12,027	)		2,816			(15,715	)		945

Net Income	$	1,700,151		$	1,814,164		$	3,371,135		$	2,857,498		$	3,205,993		$	447,342		$	9,434,626		$	1,425,736		$	11,248,790

Provision (Benefit) for Taxes		100,960			266,342			(447	)		288,250			458,904			89,672			746,707			118,615			1,013,049

Income Before Provision for Taxes	$	1,801,111		$	2,080,506		$	3,370,688		$	3,145,748		$	3,664,897		$	537,014		$	10,181,333		$	1,544,351		$	12,261,839

Transaction-Related Charges (a)		47,283			70,292			27,888			35,533			59,193			170,437			122,614			265,152			192,906

Amortization of Intangibles (b)		16,483			16,535			17,124			17,044			17,044			49,449			51,212			65,931			67,747

Impact of Consolidation (c)		(266,629	)		(306,184	)		(387,479	)		(432,153	)		(488,457	)		102,965			(1,308,089	)		(14,143	)		(1,614,273	)

Unrealized Performance Revenues (d)		(1,403,480	)		(597,285	)		(2,464,497	)		(2,697,170	)		(2,724,366	)		982,043			(7,886,033	)		853,710			(8,483,318	)

Unrealized Performance Allocations Compensation (e)		509,474			278,575			1,049,969			1,150,219			1,193,853			(433,091	)		3,394,041			(339,246	)		3,672,616

Unrealized Principal Investment (Income) Loss (f)		(177,125	)		(114,427	)		(423,934	)		(104,658	)		2,343			216,169			(526,249	)		181,195			(640,676	)

Other Revenues (g)		192,623			143,615			(60,273	)		(27,870	)		(64,109	)		110,078			(152,252	)		116,513			(8,637	)

Equity-Based Compensation (h)		89,862			67,092			144,272			121,422			129,254			266,675			394,948			318,418			462,040

Administrative Fee Adjustment (i)		2,719			2,546			2,708			2,551			2,488			2,719			7,747			2,719			10,293

Taxes and Related Payables (j)		(40,225	)		(176,859	)		(84,222	)		(140,673	)		(156,867	)		(127,268	)		(381,762	)		(203,372	)		(558,621	)

Distributable Earnings	$	772,096		$	1,464,406		$	1,192,244		$	1,069,993		$	1,635,273		$	1,877,190		$	3,897,510		$	2,791,228		$	5,361,916

Taxes and Related Payables (j)		40,225			176,859			84,222			140,673			156,867			127,268			381,762			203,372			558,621

Net Interest and Dividend (Income) Loss (k)		12,731			5,604			12,928			11,201			16,238			29,306			40,367			31,802			45,971

Total Segment Distributable Earnings	$	825,052		$	1,646,869		$	1,289,394		$	1,221,867		$	1,808,378		$	2,033,764		$	4,319,639		$	3,026,402		$	5,966,508

Realized Performance Revenues (l)		(319,954	)		(1,276,629	)		(401,323	)		(792,938	)		(1,497,477	)		(589,364	)		(2,691,738	)		(1,241,011	)		(3,968,367	)

Realized Performance Compensation (m)		121,730			483,528			150,924			338,271			619,074			230,819			1,108,269			480,178			1,591,797

Realized Principal Investment Income (n)		(15,884	)		(103,821	)		(298,156	)		(63,132	)		(151,010	)		(55,112	)		(512,298	)		(93,654	)		(616,119	)

Fee Related Earnings	$	610,944		$	749,947		$	740,839		$	704,068		$	778,965		$	1,620,107		$	2,223,872		$	2,171,915		$	2,973,819

Adjusted EBITDA Reconciliation

Distributable Earnings	$	772,096		$	1,464,406		$	1,192,244		$	1,069,993		$	1,635,273		$	1,877,190		$	3,897,510		$	2,791,228		$	5,361,916

Interest Expense (o)		39,228			45,330			44,340			44,132			51,773			119,692			140,245			177,043			185,575

Taxes and Related Payables (j)		40,225			176,859			84,222			140,673			156,867			127,268			381,762			203,372			558,621

Depreciation and Amortization (p)		9,568			9,946			12,293			12,581			12,771			25,190			37,645			32,856			47,591

Adjusted EBITDA	$	861,117		$	1,696,541		$	1,333,099		$	1,267,379		$	1,856,684		$	2,149,340		$	4,457,162		$	3,204,499		$	6,153,703

Notes on pages 26-27.

Blackstone | 25

RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES

Note: See pages 34-36, Definitions and Dividend Policy.

(a)

This adjustment removes Transaction-Related Charges, which are excluded from Blackstone’s segment presentation. Transaction-Related Charges arise from corporate actions including 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 was historically accounted for under the equity method. As a result of Pátria’s IPO in January 2021, equity method has been discontinued and there will no longer be amortization of intangibles associated with the investment.

(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.


	QTD															YTD						LTM
($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
GAAP Unrealized Performance Allocations	$	1,403,480		$	597,285		$	2,464,497		$	2,697,170		$	2,724,366		$	(981,678	)	$	7,886,033		$	(853,447	)	$	8,483,318
Segment Adjustment		-			-			-			-			-			(365	)		-			(263	)		-
Unrealized Performance Revenues	$	1,403,480		$	597,285		$	2,464,497		$	2,697,170		$	2,724,366		$	(982,043	)	$	7,886,033		$	(853,710	)	$	8,483,318
(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.
	QTD															YTD						LTM
($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
GAAP Unrealized Principal Investment Income (Loss)	$	295,308		$	217,688		$	639,315		$	328,835		$	183,754		$	(332,295	)	$	1,151,904		$	(264,382	)	$	1,369,592
Segment Adjustment		(118,183	)		(103,261	)		(215,381	)		(224,177	)		(186,097	)		116,126			(625,655	)		83,187			(728,916	)
Unrealized Principal Investment Income (Loss)	$	177,125		$	114,427		$	423,934		$	104,658		$	(2,343	)	$	(216,169	)	$	526,249		$	(181,195	)	$	640,676
(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.
	QTD															YTD						LTM
($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
GAAP Other Revenue	$	(192,159	)	$	(143,583	)	$	60,304		$	27,896		$	64,187		$	(109,559	)	$	152,387		$	(115,969	)	$	8,804
Segment Adjustment		(464	)		(32	)		(31	)		(26	)		(78	)		(519	)		(135	)		(544	)		(167	)
Other Revenues	$	(192,623	)	$	(143,615	)	$	60,273		$	27,870		$	64,109		$	(110,078	)	$	152,252		$	(116,513	)	$	8,637
(h) This adjustment removes Equity-Based Compensation on a segment basis. (i) This adjustment adds an amount equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.

Blackstone | 26

RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (CONT’D)

(j)

Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. Related Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. Please refer to page 34 for the full definition of Taxes and Related Payables.


	QTD															YTD						LTM
($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
Taxes	$	32,518		$	163,315		$	69,609		$	127,809		$	140,548		$	97,254		$	337,966		$	161,184		$	501,281
Related Payables		7,707			13,544			14,613			12,864			16,319			30,014			43,796			42,188			57,340
Taxes and Related Payables	$	40,225		$	176,859		$	84,222		$	140,673		$	156,867		$	127,268		$	381,762		$	203,372		$	558,621

(k) This adjustment removes Interest and Dividend Revenue less Interest Expense on a segment basis. The Segment Adjustment represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.

	QTD															YTD						LTM
($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
GAAP Interest and Dividend Revenue	$	26,497		$	39,726		$	31,412		$	31,017		$	35,048		$	85,505		$	97,477		$	137,651		$	137,203
Segment Adjustment		-			-			-			1,914			487			4,881			2,401			7,590			2,401
Interest and Dividend Revenue	$	26,497		$	39,726		$	31,412		$	32,931		$	35,535		$	90,386		$	99,878		$	145,241		$	139,604

GAAP Interest Expense	$	39,540		$	45,702		$	44,983		$	44,322		$	52,413		$	120,460		$	141,718		$	181,148		$	187,420
Segment Adjustment		(312	)		(372	)		(643	)		(190	)		(640	)		(768	)		(1,473	)		(4,105	)		(1,845	)
Interest Expense	$	39,228		$	45,330		$	44,340		$	44,132		$	51,773		$	119,692		$	140,245		$	177,043		$	185,575
Net Interest and Dividend Income (Loss)	$	(12,731)		$	(5,604)		$	(12,928)		$	(11,201)		$	(16,238)		$	(29,306)		$	(40,367)		$	(31,802)		$	(45,971)
(l) This adjustment removes the total segment amount of Realized Performance Revenues. (m) This adjustment removes the total segment amount of Realized Performance Compensation. (n) This adjustment removes the total segment amount of Realized Principal Investment Income. (o) This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement. (p) This adjustment adds back Depreciation and Amortization on a segment basis. Reconciliation of GAAP Shares of Common Stock Outstanding to Distributable Earnings Shares Outstanding

	QTD
	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21
GAAP Shares of Common Stock Outstanding		680,680,748			683,875,544			690,569,563			691,093,463			693,612,698
Unvested Participating Common Shares		19,968,387			20,084,245			20,495,980			29,381,076			27,756,700
Total Participating Common Shares		700,649,135			703,959,789			711,065,543			720,474,539			721,369,398
Participating Partnership Units		500,054,874			496,060,455			490,716,529			487,276,882			483,553,949
Distributable Earnings Shares Outstanding		1,200,704,009			1,200,020,244			1,201,782,072			1,207,751,421			1,204,923,347

Disclosure of Weighted-Average Shares Common Stock Outstanding

	QTD															YTD						LTM
	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21
Total GAAP Weighted-Average Shares of Common Stock Outstanding - Basic		700,184,580			702,543,279			709,033,212			721,141,954			722,229,117			695,049,997			717,516,302			691,121,413			713,742,286

Weighted-Average Shares of Unvested Deferred Restricted Common Stock		343,386			436,255			879,132			123,226			203,982			287,578			402,113			284,314			410,649

Total GAAP Weighted-Average Shares of Common Stock Outstanding - Diluted		700,527,966			702,979,534			709,912,344			721,265,180			722,433,099			695,337,575			717,918,415			691,405,727			714,152,935

Blackstone | 27

BLACKSTONE’S THIRD QUARTER 2021 GAAP BALANCE SHEET RESULTS



($ in thousands) (unaudited)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21

Assets

Cash and Cash Equivalents	$	2,628,895		$	1,999,484		$	2,862,422		$	2,467,444		$	5,011,433

Cash Held by Blackstone Funds and Other		85,218			64,972			109,285			109,676			113,731

Investments		14,423,456			15,617,142			17,943,309			22,163,322			25,104,195

Accounts Receivable		477,601			866,158			975,610			582,542			496,265

Due from Affiliates		2,817,304			3,221,515			3,015,318			3,159,829			3,718,119

Intangible Assets, Net		344,258			347,955			340,478			321,780			303,082

Goodwill		1,869,860			1,901,485			1,890,185			1,890,202			1,890,202

Other Assets		544,905			481,022			434,475			556,714			538,567

Right-of-Use Assets		544,361			526,943			736,633			723,539			745,886

Deferred Tax Assets		1,305,707			1,242,576			1,402,271			1,322,144			1,116,612

Total Assets	$	25,041,565		$	26,269,252		$	29,709,986		$	33,297,192		$	39,038,092

Liabilities and Equity

Loans Payable	$	5,570,888		$	5,644,653		$	5,573,965		$	5,594,648		$	7,527,576

Due to Affiliates		1,064,336			1,135,041			1,161,775			1,226,504			1,426,209

Accrued Compensation and Benefits		3,349,418			3,433,260			4,376,226			5,789,662			7,399,559

Securities Sold, Not Yet Purchased		51,231			51,033			33,160			35,783			35,657

Repurchase Agreements		80,597			76,808			58,050			57,247			36,545

Operating Lease Liabilities		621,408			620,844			842,692			841,152			863,020

Accounts Payable, Accrued Expenses and Other Liabilities		804,009			717,104			838,930			1,205,182			871,661

Total Liabilities		11,541,887			11,678,743			12,884,798			14,750,178			18,160,227

Redeemable Non-Controlling Interests in Consolidated Entities		63,384			65,161			65,546			65,568			66,824

Equity

Common Stock, $0.00001 par value (693,612,698 shares issued and outstanding as of September 30, 2021)		7			7			7			7			7

Series I Preferred Stock, $0.00001 par value (1 share issued and outstanding as of September 30, 2021)		—			—			—			—			—

Series II Preferred Stock, $0.00001 par value (1 share issued and outstanding as of September 30, 2021)		—			—			—			—			—

Additional Paid-in-Capital		6,243,722			6,332,105			6,446,829			6,282,600			6,037,628

Retained Earnings		(36,432	)		335,762			1,408,768			2,133,794			3,031,765

Accumulated Other Comprehensive Loss		(27,407	)		(15,831	)		(11,454	)		(10,245	)		(15,357	)

Non-Controlling Interests in Consolidated Entities		3,946,190			4,042,157			4,390,594			4,860,442			5,638,612

Non-Controlling Interests in Blackstone Holdings		3,310,214			3,831,148			4,524,898			5,214,848			6,118,386

Total Equity		13,436,294			14,525,348			16,759,642			18,481,446			20,811,041

Total Liabilities and Equity	$	25,041,565		$	26,269,252		$	29,709,986		$	33,297,192		$	39,038,092

See page 29, Reconciliation of GAAP to Non-GAAP Balance Sheet Measures.

Blackstone | 28

RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES



($ in thousands)	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21

Investments of Consolidated Blackstone Funds	$	1,500,398		$	1,455,008		$	1,459,804		$	1,871,269		$	2,104,705

Equity Method Investments

Partnership Investments		4,144,249			4,353,234			4,676,341			4,916,675			5,303,334

Accrued Performance Allocations		6,112,904			6,891,262			9,367,251			12,101,142			15,063,648

Corporate Treasury Investments		2,390,982			2,579,716			1,726,285			2,440,325			1,520,426

Other Investments		274,923			337,922			713,628			833,911			1,112,082

Total GAAP Investments		14,423,456			15,617,142			17,943,309			22,163,322			25,104,195



Accrued Performance Allocations - GAAP	$	6,112,904		$	6,891,262		$	9,367,251		$	12,101,142		$	15,063,648

Impact of Consolidation (a)		1			1			1			1			1

Due from Affiliates - GAAP (b)		21,499			165,678			56,274			59,304			59,669

Less: Net Realized Performance Revenues (c)		(75,328	)		(313,610	)		(269,426	)		(261,760	)		(416,336	)

Less: Accrued Performance Compensation - GAAP (d)		(2,509,357	)		(2,917,609	)		(3,952,253	)		(5,137,933	)		(6,395,903	)

Net Accrued Performance Revenues	$	3,549,719		$	3,825,722		$	5,201,847		$	6,760,754		$	8,311,079

Corporate Treasury and Other Investments - GAAP (e)	$	2,665,905		$	2,917,638		$	2,439,913		$	3,274,236		$	2,632,508

Impact of Consolidation (a)		135,928			137,745			142,187			176,320			178,407

Other Assets (f)		525,864			947,565			766,285			479,591			580,641

Other Liabilities (g)		(124,734	)		(30,355	)		(61,599	)		(494,119	)		(169,863	)

Corporate Treasury and Other Investments - Deconsolidated (h)	$	3,202,963		$	3,972,593		$	3,286,786		$	3,436,028		$	3,221,693

Partnership Investments - GAAP	$	4,144,249		$	4,353,234		$	4,676,341		$	4,916,675		$	5,303,334

Impact of Consolidation (i)		(2,463,594	)		(2,615,599	)		(2,923,029	)		(3,091,175	)		(3,459,004	)

GP/Fund Investments - Deconsolidated	$	1,680,655		$	1,737,635		$	1,753,312		$	1,825,500		$	1,844,330

Loans Payable - GAAP	$	5,570,888		$	5,644,653		$	5,573,965		$	5,594,648		$	7,527,576

Impact of Consolidation (j)		(99	)		(99	)		(100	)		(99	)		(100	)

Outstanding Bonds - Carrying Value		5,570,789			5,644,554			5,573,865			5,594,549			7,527,476

Unamortized Discount		87,361			87,846			85,635			84,151			109,524

Outstanding Bonds (at par) - Deconsolidated	$	5,658,150		$	5,732,400		$	5,659,500		$	5,678,700		$	7,637,000

(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.

(e)

Effective 3Q’21, Corporate Treasury includes Other Investments and has been renamed to Corporate Treasury and Other Investments. Prior periods have been recast to reflect the revised classification.

(f)

This adjustment adds other assets related to Treasury Operations that are recorded within Accounts Receivable, reverse repurchase agreements and Due from Affiliates.

(g)

This adjustment adds other liabilities related to Treasury Operations that are recorded within Accounts Payable, Accrued Expenses and Other Liabilities, Repurchase Agreements and securities sold short, not yet purchased.

(h)

Deconsolidated Other Investments was $1.1 billion as of September 30, 2021, which was comprised of $843 million of liquid investments and $241 million of illiquid investments. The liquid portion of Other Investments relates to public equity securities, which may include equity securities subject to lockup periods, and other investments held by Blackstone that can be easily converted to cash.

(i)

This adjustment removes amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests and adds back investments in consolidated Blackstone Funds which have been eliminated in consolidation.

(j)

This adjustment removes amounts related to consolidated Blackstone Funds.

Blackstone | 29

RECONCILIATION OF GAAP TO TOTAL SEGMENTS


($ in thousands)	QTD															YTD						LTM


	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21

Management and Advisory Fees, Net
GAAP	$	1,053,851		$	1,134,138		$	1,177,815		$	1,212,549		$	1,320,795		$	2,958,411		$	3,711,159		$	3,902,311		$	4,845,297
Segment Adjustment (a)		3,989			1,887			390			193			(720	)		16,729			(137	)		18,502			1,750
Total Segment	$	1,057,840		$	1,136,025		$	1,178,205		$	1,212,742		$	1,320,075		$	2,975,140		$	3,711,022		$	3,920,813		$	4,847,047

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues
GAAP
Incentive Fees		13,498			97,702			36,124			33,207			48,206			40,959			117,537			128,569			215,239
Investment Income—Realized Performance Allocations		371,406			1,465,154			534,367			808,620			1,522,495			640,846			2,865,482			1,358,401			4,330,636
GAAP	$	384,904		$	1,562,856		$	570,491		$	841,827		$	1,570,701		$	681,805		$	2,983,019		$	1,486,970		$	4,545,875
Total Segment
Less: Realized Performance Revenues		(319,954	)		(1,276,629	)		(401,323	)		(792,938	)		(1,497,477	)		(589,364	)		(2,691,738	)		(1,241,011	)		(3,968,367	)
Segment Adjustment (b)		-			-			-			-			89			8			89			2,863			89
Total Segment	$	64,950		$	286,227		$	169,168		$	48,889		$	73,313		$	92,449		$	291,370		$	248,822		$	577,597

GAAP Compensation to Total Segment Fee Related Compensation
GAAP
Compensation		460,983			459,636			542,638			507,104			536,199			1,395,983			1,585,941			1,843,629			2,045,577
Incentive Fees Compensation		7,385			22,086			13,325			14,431			21,007			22,339			48,763			46,928			70,849
Realized Performance Allocations Compensation		142,149			590,089			213,027			347,423			631,632			253,141			1,192,082			548,200			1,782,171
GAAP	$	610,517		$	1,071,811		$	768,990		$	868,958		$	1,188,838		$	1,671,463		$	2,826,786		$	2,438,757		$	3,898,597
Total Segment
Less: Realized Performance Compensation		(121,730	)		(483,528	)		(150,924	)		(338,271	)		(619,074	)		(230,819	)		(1,108,269	)		(480,178	)		(1,591,797	)
Less: Equity-Based Compensation - Operating Compensation		(88,180	)		(65,397	)		(141,674	)		(119,491	)		(127,442	)		(260,719	)		(388,607	)		(312,331	)		(454,004	)
Less: Equity-Based Compensation - Performance Compensation		(1,682	)		(1,695	)		(2,598	)		(1,931	)		(1,812	)		(5,956	)		(6,341	)		(6,087	)		(8,036	)
Segment Adjustment (c)		(38,292	)		(38,422	)		(28,684	)		(33,880	)		(21,029	)		(160,168	)		(83,593	)		(237,481	)		(122,015	)
Total Segment	$	360,633		$	482,769		$	445,110		$	375,385		$	419,481		$	1,013,801		$	1,239,976		$	1,402,680		$	1,722,745

GAAP General, Administrative and Other to Total Segment Other Operating Expenses
GAAP	$	171,041		$	214,124		$	185,122		$	205,057		$	217,995		$	497,658		$	608,174		$	684,629		$	822,298
Segment Adjustment (d)		(19,828	)		(24,588	)		(23,698	)		(22,879	)		(23,053	)		(63,977	)		(69,630	)		(89,589	)		(94,218	)
Total Segment	$	151,213		$	189,536		$	161,424		$	182,178		$	194,942		$	433,681		$	538,544		$	595,040		$	728,080

Realized Performance Revenues
GAAP
Incentive Fees		13,498			97,702			36,124			33,207			48,206			40,959			117,537			128,569			215,239
Investment Income - Realized Performance Allocations		371,406			1,465,154			534,367			808,620			1,522,495			640,846			2,865,482			1,358,401			4,330,636
GAAP	$	384,904		$	1,562,856		$	570,491		$	841,827		$	1,570,701		$	681,805		$	2,983,019		$	1,486,970		$	4,545,875
Total Segment
Less: Fee Related Performance Revenues		(64,950	)		(286,227	)		(169,168	)		(48,889	)		(73,313	)		(92,449	)		(291,370	)		(248,822	)		(577,597	)
Segment Adjustment (b)		-			-			-			-			89			8			89			2,863			89
Total Segment	$	319,954		$	1,276,629		$	401,323		$	792,938		$	1,497,477		$	589,364		$	2,691,738		$	1,241,011		$	3,968,367

Blackstone | 30

RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D)


($ in thousands)	QTD															YTD						LTM


	3Q’20			4Q’20			1Q’21			2Q’21			3Q’21			3Q’20			3Q’21			3Q’20			3Q’21

Realized Performance Compensation
GAAP
Incentive Fee Compensation	$	7,385		$	22,086		$	13,325		$	14,431		$	21,007		$	22,339		$	48,763		$	46,928		$	70,849
Realized Performance Allocations Compensation		142,149			590,089			213,027			347,423			631,632			253,141			1,192,082			548,200			1,782,171
GAAP	$	149,534		$	612,175		$	226,352		$	361,854		$	652,639		$	275,480		$	1,240,845		$	595,128		$	1,853,020
Total Segment
Less: Fee Related Performance Compensation		(26,122	)		(126,952	)		(72,830	)		(21,652	)		(31,753	)		(38,705	)		(126,235	)		(108,863	)		(253,187	)
Less: Equity-Based Compensation - Performance Compensation		(1,682	)		(1,695	)		(2,598	)		(1,931	)		(1,812	)		(5,956	)		(6,341	)		(6,087	)		(8,036	)
Total Segment	$	121,730		$	483,528		$	150,924		$	338,271		$	619,074		$	230,819		$	1,108,269		$	480,178		$	1,591,797

Realized Principal Investment Income
GAAP	$	61,017		$	220,814		$	355,038		$	152,060		$	325,414		$	170,814		$	832,512		$	271,349		$	1,053,326
Segment Adjustment (e)		(45,133	)		(116,993	)		(56,882	)		(88,928	)		(174,404	)		(115,702	)		(320,214	)		(177,695	)		(437,207	)
Total Segment	$	15,884		$	103,821		$	298,156		$	63,132		$	151,010		$	55,112		$	512,298		$	93,654		$	616,119

GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest and Dividend Income (Loss)
GAAP
Interest and Dividend Revenue		26,497			39,726			31,412			31,017			35,048			85,505			97,477			137,651			137,203
Interest Expense		(39,540	)		(45,702	)		(44,983	)		(44,322	)		(52,413	)		(120,460	)		(141,718	)		(181,148	)		(187,420	)
GAAP	$	(13,043	)	$	(5,976	)	$	(13,571	)	$	(13,305	)	$	(17,365	)	$	(34,955	)	$	(44,241	)	$	(43,497	)	$	(50,217	)
Segment Adjustment (f)		312			372			643			2,104			1,127			5,649			3,874			11,695			4,246
Total Segment	$	(12,731	)	$	(5,604	)	$	(12,928	)	$	(11,201	)	$	(16,238	)	$	(29,306	)	$	(40,367	)	$	(31,802	)	$	(45,971	)

This analysis reconciles the components of Total Segment Distributable Earnings (page 3) to their equivalent GAAP measures, reported on the Consolidated Statement of Operations (page 1). Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related Charges.

(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. Beginning in 3Q’20, includes a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.

(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.

(f)	Represents (1) the add back of Interest and Dividend Revenue earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of interest expense associated with the Tax Receivable Agreement.

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NOTES

Notes to page 1 - Blackstone’s Third Quarter 2021 GAAP Results

Effective February 26, 2021, Blackstone effectuated changes to rename its Class A common stock as “common stock,” and to reclassify its Class B and Class C common stock into a new “Series I preferred stock” and “Series II preferred stock,” respectively (the “share reclassification”). Each new stock has the same rights and powers of its predecessor. All references to common stock, Series I preferred stock and Series II preferred stock prior to the share reclassification refer to Class A, Class B and Class C common stock, respectively.

Income (Loss) Before Provision (Benefit) for Taxes Margin is calculated by dividing Income (Loss) Before Provision (Benefit) for Taxes by Total Revenues.

Notes to page 2 - Blackstone’s Third Quarter 2021 Highlights

The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable Blackstone Funds and not those of Blackstone.

Notes to page 5 - Investment Performance and Net Accrued Performance Revenues

Core+ appreciation represents a weighted average of BREIT’s per share appreciation and BPP appreciation for the period. The returns are weighted based on the average of BREIT’s monthly net asset values and the average of BPP’s quarterly adjusted beginning period market values for the period.

Results for the Secondaries business (also referred to as Strategic Partners) are reported on a three-month lag from the Secondaries’ fund financial statements, which generally report underlying investments on a same-quarter basis, if available. As a result, the appreciation presented herein does not include the impact of economic and market activity in the current quarter. Current market activity is expected to affect reported results in upcoming quarters.

The BPS Composite gross and net returns are based on the BAAM Principal Solutions (“BPS”) Composite, which includes only BAAM-managed commingled and customized multi-manager funds and accounts and does not include BAAM’s individual investor solutions (liquid alternatives), strategic capital (seeding and GP minority stakes), strategic opportunities (co-invests), and advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation and, in the case of net returns, non fee-paying assets are also excluded. The funds/accounts that comprise the BPS Composite are not managed within a single fund or account and are managed with different mandates. There is no guarantee that BAAM would have made the same mix of investments in a stand-alone fund/account. The BPS Composite is not an investible product and, as such, the performance of the BPS Composite does not represent the performance of an actual fund or account.

Effective 1Q’21, Credit returns are presented as separate returns for Private Credit and Liquid Credit instead of as a Credit Composite. Private Credit returns include mezzanine lending funds and middle market direct lending funds (including BXSL and BCRED), stressed/distressed strategies (including stressed/distressed funds and credit alpha strategies) and energy strategies. Liquid Credit returns include CLOs, closed-ended funds, open-ended funds and separately managed accounts. Only fee-earning funds exceeding $100 million of fair value at the beginning of each respective quarter-end are included. Funds in liquidation, funds investing primarily in investment grade corporate credit and our structured products group are excluded. Blackstone Funds that were contributed to Blackstone Credit as part of Blackstone’s acquisition of Blackstone Credit, formerly known as GSO, in March 2008 and the pre-acquisition date performance for funds and vehicles acquired by Blackstone Credit subsequent to March 2008, are also excluded.

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NOTES – (CONT’D)

Notes to page 16 – Assets Under Management - Rollforward

In 4Q’20, the methodology for Total AUM was updated with respect to the relevant segment for certain real estate, secondaries and credit funds to include permanent fund level leverage (as this represents additional capital the fund is managing), to include uncalled capital commitments until they are legally expired and to exclude certain uncalled capital commitments where the investors have complete discretion over investment. In 2Q’21, the methodology for Total AUM was further updated to exclude permanent fund level leverage where the intended use is not for investing purposes. These methodology changes resulted in a one-time adjustment to the LTM market activity of $2.0 billion, $1.9 billion, and $(1.5) billion for Real Estate, Private Equity, and Credit & Insurance, respectively. Funds without an adjustment were either already applying that methodology in reporting Total AUM or the updates were not applicable.

Subsequent to 4Q’20, increases/decreases in permanent fund level leverage included in Total AUM and uncalled capital commitments that have not legally expired where investors do not have complete discretion over investment for the aforementioned funds will be reflected as inflows, outflows, realizations and/or market activity, as the case may be.

Notes to page 17 – Deconsolidated Balance Sheet Highlights

GP/Fund Investments include Blackstone investments in Real Estate, Private Equity, Hedge Fund Solutions, and Credit & Insurance, which were $663 million, $793 million, $174 million, and $215 million, respectively, as of September 30, 2021. Cash and Net Investments per share amounts are calculated using period end DE Shares Outstanding (see page 23, Share Summary).

Notes to page 22 – Shareholder Dividends

DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Common shareholders receive tax benefits from deductions taken by Blackstone’s corporate tax paying subsidiaries and bear responsibility for the deduction from Distributable Earnings of the Payable Under Tax Receivable Agreement and certain other tax-related payables.

Per Share calculations are based on end of period Participating Common Shares (page 23, Share Summary); actual dividends are paid to shareholders as of the applicable record date.

Retained capital is withheld pro rata from common shareholders and Blackstone Holdings Partnership unitholders. Common shareholders’ share was $137 million for 3Q’21 and $323 million for 3Q’21 YTD.

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DEFINITIONS AND DIVIDEND POLICY

Blackstone discloses the following operating metrics and financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“non-GAAP”) in this presentation:

Segment Distributable Earnings, or “Segment DE”, is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Segment DE represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related Charges. Segment DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.

–

Net Realizations is presented on a segment basis and is the sum of Realized Principal Investment Income and Realized Performance Revenues (which refers to Realized Performance Revenues excluding Fee Related Performance Revenues), less Realized Performance Compensation (which refers to Realized Performance Compensation excluding Fee Related Performance Compensation and Equity-Based Performance Compensation).

–

Total Segment Revenues and Segment Revenues represent Net Management and Advisory Fees, Fee Related Performance Revenues, Realized Performance Revenues and Realized Principal Investment Income.

Distributable Earnings, or “DE”, is derived from Blackstone’s segment reported results. DE is used to assess performance and amounts available for dividends to Blackstone shareholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. DE is the sum of Segment DE plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables. DE excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.

–

Net Interest and Dividend Income (Loss) is presented on a segment basis and is equal to Interest and Dividend Revenue less Interest Expense, adjusted for the impact of consolidation of Blackstone Funds, and interest expense associated with the Tax Receivable Agreement.

–

Taxes and Related Payables 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 including the Payable under the Tax Receivable Agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and DE reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment DE and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related Charges where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s consolidated statements of operations under U.S. GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management believes that including the amount payable under the tax receivable agreement and utilizing the current income tax provision adjusted as described above when calculating DE is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to shareholders.

Fee Related Earnings, or “FRE”, is a performance measure used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. FRE equals management and advisory fees (net of management fee reductions and offsets) plus Fee Related Performance Revenues, less (a) Fee Related Compensation on a segment basis, and (b) Other Operating Expenses. FRE is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.

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DEFINITIONS AND DIVIDEND POLICY – (CONT’D)

–

Fee Related Compensation is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation, directly related to (a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Related Performance Compensation.

–

Fee Related Performance Revenues refers to the realized portion of Performance Revenues from Perpetual Capital that are (a) measured and received on a recurring basis, and (b) not dependent on realization events from the underlying investments.

–

Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove the amortization of transaction-related intangibles, (b) remove certain expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in Blackstone’s segment presentation, and (c) give effect to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.

–

Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows. Includes co-investment capital with an investor right to convert into Perpetual Capital.

Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, is a supplemental measure used to assess performance derived from Blackstone’s segment results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents Distributable Earnings plus the addition of (a) Interest Expense on a segment basis, (b) Taxes and Related Payables, and (c) Depreciation and Amortization. Adjusted EBITDA is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes.

Performance Revenues collectively refers to: (a) Incentive Fees, and (b) Performance Allocations.

Performance Compensation collectively refers to: (a) Incentive Fee Compensation, and (b) Performance Allocations Compensation.

–

Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them as a result of a new compensation program that commenced in 2Q’21. Fee Related Compensation was decreased by a corresponding amount. These changes to Performance Compensation and Fee Related Compensation had no impact to Distributable Earnings.

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.

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DEFINITIONS AND DIVIDEND POLICY – (CONT’D)

Dividend Policy. Blackstone’s intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s board of directors to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future cash requirements such as tax-related payments, clawback obligations and dividends to shareholders for any ensuing quarter. The dividend amount could also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of Blackstone’s board of directors and our board of directors may change our dividend policy at any time, including, without limitation, to reduce such quarterly dividends or even to eliminate such dividends entirely.

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FORWARD-LOOKING STATEMENTS

This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, our operations, taxes, earnings and financial performance, share repurchases and dividends. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “scheduled,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to the impact of the novel coronavirus (“COVID-19”), as well as those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, as such factors may be updated from time to time in our periodic filings with the United States Securities and Exchange Commission (“SEC”), which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report and in our other periodic filings. The forward-looking statements speak only as of the date of this report, and we undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This presentation does not constitute an offer of any Blackstone Fund.

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