EX-99.1

EX-99.1 2 d383237dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

LOGO

Blackstone Reports Second Quarter 2022 Results

New York, July 21, 2022: Blackstone (NYSE:BX) today reported its second quarter 2022 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “We delivered exceptional financial results

for our shareholders in the second quarter despite a challenging market backdrop. Blackstone’s flagship strategies

again outperformed public markets and our investors entrusted us with $88 billion of inflows, which represented

the second highest quarter of inflows in our 36-year history. This is a testament to our long-term performance,

deep client relationships, and the unmatched scale and breadth of our global investment platform.”

Blackstone issued a full detailed presentation of its second quarter 2022 results, which can be viewed at

www.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $1.27 per share to record holders of common stock at the close of

business on August 1, 2022. This dividend will be paid on August 8, 2022.

Quarterly Investor Call Details

Blackstone will host its second quarter 2022 investor conference via public webcast on July 21, 2022

at 9:00 a.m. ET. To register, please use the following link: https://event.webcasts.com/starthere.jsp?ei= 1557675&tp_key=dbd411b3d9. For those unable to listen to the live broadcast, there will be a webcast replay on

the Shareholders section of Blackstone’s website at https://ir.blackstone.com/.

Blackstone

345 Park Avenue, New York, NY 10154

T 212 583 5000

www.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 $941 billion in assets under

management include investment vehicles focused on private equity, real estate, public debt and equity,

infrastructure, 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

LinkedIn, Twitter, and Instagram.

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,” “opportunity,” “leads,”

“forecast” 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 those described under the section entitled “Risk Factors” in our Annual Report on

Form 10-K for the year ended December 31, 2021, 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 Second

Quarter 2022 Earnings

JULY 21, 2022

BLACKSTONE’S SECOND QUARTER 2022 GAAP RESULTS

GAAP Net Income (Loss) was $(256) million for the quarter and $2.2 billion year-to-date (“YTD”). GAAP Net Income (Loss) Attributable to Blackstone Inc. was $(29) million for the quarter and $1.2 billion YTD.



($ in thousands, except per share data) (unaudited)	2Q’21			2Q’22			2Q’21 YTD		2Q’22 YTD			2Q’21 LTM			2Q’22 LTM
Revenues
Management and Advisory Fees, Net	$	1,212,549		$	1,561,187		$	2,390,364	$	3,037,123		$	4,578,353		$	5,817,466
Incentive Fees		33,207			99,598			69,331		204,087			180,531			388,747
Investment Income (Loss)
Performance Allocations
Realized		808,620			2,453,769			1,342,987		4,220,155			3,179,547			8,530,620
Unrealized		2,697,170			(3,467,668	)		5,161,667		(2,174,618	)		7,162,432			1,338,961
Principal Investments
Realized		152,060			265,161			507,098		550,265			788,929			1,046,989
Unrealized		328,835			(500,490	)		968,150		(426,529	)		1,481,146			61,522
Total Investment Income (Loss)		3,986,685			(1,249,228	)		7,979,902		2,169,273			12,612,054			10,978,092
Interest and Dividend Revenue		31,017			62,075			62,429		116,560			128,652			214,774
Other		27,896			155,588			88,200		228,457			(247,542	)		343,343
Total Revenues	$	5,291,354		$	629,220		$	10,590,226	$	5,755,500		$	17,252,048		$	17,742,422
Expenses
Compensation and Benefits
Compensation		507,104			686,012			1,049,742		1,342,517			1,970,361			2,454,748
Incentive Fee Compensation		14,431			45,363			27,756		86,382			57,227			156,738
Performance Allocations Compensation
Realized		347,423			1,035,916			560,450		1,753,517			1,292,688			3,505,060
Unrealized		1,150,219			(1,386,543	)		2,200,188		(914,259	)		2,988,237			663,601
Total Compensation and Benefits		2,019,177			380,748			3,838,136		2,268,157			6,308,513			6,780,147
General, Administrative and Other		205,057			289,288			390,179		529,962			775,344			1,057,630
Interest Expense		44,322			69,642			89,305		136,389			174,547			245,352
Fund Expenses		3,774			4,435			6,157		6,627			10,333			10,846
Total Expenses	$	2,272,330		$	744,113		$	4,323,777	$	2,941,135		$	7,268,737		$	8,093,975
Other Income (Loss)
Change in Tax Receivable Agreement Liability		(392	)		(13	)		2,518		748			(32,346	)		(4,529	)
Net Gains (Losses) from Fund Investment Activities		127,116			(104,326	)		247,469		(53,450	)		447,088			160,705
Income (Loss) Before Provision for Taxes	$	3,145,748		$	(219,232	)	$	6,516,436	$	2,761,663		$	10,398,053		$	9,804,623
Provision for Taxes		288,250			36,514			287,803		519,795			655,105			1,416,393
Net Income (Loss)	$	2,857,498		$	(255,746	)	$	6,228,633	$	2,241,868		$	9,742,948		$	8,388,230
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		637			25,875			1,266		30,927			6,263			35,401
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		431,516			(216,707	)		818,366		(332	)		1,386,182			806,608
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings		1,116,193			(35,521	)		2,351,977		1,023,792			3,749,890			3,558,367
Net Income (Loss) Attributable to Blackstone Inc. (“BX”)	$	1,309,152		$	(29,393	)	$	3,057,024	$	1,187,481		$	4,600,613		$	3,987,854
Net Income (Loss) Per Share of Common Stock, Basic	$	1.82		$	(0.04	)	$	4.27	$	1.61		$	6.51		$	5.45
Net Income (Loss) Per Share of Common Stock, Diluted	$	1.82		$	(0.04	)	$	4.27	$	1.61		$	6.51		$	5.45
Income (Loss) Before Provision for Taxes Margin		59.5	%		(34.8	)%		61.5%		48.0%			60.3%			55.3%

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 SECOND QUARTER 2022 HIGHLIGHTS


Financial Measures		§ Fee Related Earnings (“FRE”) of $1.0 billion ($0.84/share) in the quarter, up 45% year- over-year – FRE was $4.8 billion over the last twelve months (“LTM”) ($3.96/share) § Distributable Earnings (“DE”) of $2.0 billion ($1.49/share) in the quarter, up 86% year- over-year – DE was $7.8 billion over the LTM ($6.03/share) § Net Accrued Performance Revenues of $7.5 billion ($6.18/share), up 11% year-over-year


Capital Metrics		§ Total Assets Under Management (“AUM”) of $940.8 billion, up 38% year-over-year – Fee-Earning AUM of $683.8 billion, up 37% year-over-year – Perpetual Capital AUM of $355.9 billion, up 110% year-over-year § Inflows of $88.3 billion in the quarter and $339.7 billion over the LTM § Realizations of $29.3 billion in the quarter and $95.3 billion over the LTM § Deployment of $47.8 billion in the quarter and $173.4 billion over the LTM

Capital Returned to Shareholders		§ Dividend of $1.27 per common share payable on August 8, 2022 – Dividends of $5.13 per common share over the LTM § Repurchased 1.9 million common shares in the quarter and 8.9 million common shares over the LTM § $1.9 billion to be distributed to shareholders with respect to the second quarter through dividends and share repurchases, and $7.9 billion over the LTM

Blackstone | 2

BLACKSTONE’S SECOND QUARTER 2022 SEGMENT EARNINGS


							% Change							% Change
($ in thousands, except per share data)	2Q’21			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD
Management and Advisory Fees, Net	$	1,212,742		$	1,556,917		28%	$	2,390,947		$	3,030,285		27%
Fee Related Performance Revenues		48,889			346,593		609%		218,057			904,658		315%
Fee Related Compensation		(375,385	)		(621,413	)	66%		(820,495	)		(1,291,884	)	57%
Other Operating Expenses		(182,178	)		(261,510	)	44%		(343,602	)		(475,608	)	38%
Fee Related Earnings	$	704,068		$	1,020,587		45%	$	1,444,907		$	2,167,451		50%


Realized Performance Revenues		792,938			2,206,774		178%		1,194,261			3,519,584		195%
Realized Performance Compensation		(338,271	)		(926,974	)	174%		(489,195	)		(1,446,094	)	196%
Realized Principal Investment Income		63,132			43,509		(31)%		361,288			200,604		(44)%
Net Realizations		517,799			1,323,309		156%		1,066,354			2,274,094		113%
Total Segment Distributable Earnings	$	1,221,867		$	2,343,896		92%	$	2,511,261		$	4,441,545		77%


Net Interest and Dividend Income (Loss)		(11,201	)		(3,282	)	(71)%		(24,129	)		(15,399	)	(36)%
Taxes and Related Payables		(140,673	)		(354,789	)	152%		(224,895	)		(502,441	)	123%
Distributable Earnings	$	1,069,993		$	1,985,825		86%	$	2,262,237		$	3,923,705		73%


Additional Metrics:
FRE per Share	$	0.58		$	0.84		45%	$	1.20		$	1.79		49%
DE per Common Share	$	0.82		$	1.49		82%	$	1.78		$	3.04		71%
Total Segment Revenues	$	2,117,701		$	4,153,793		96%	$	4,164,553		$	7,655,131		84%
Total Assets Under Management	$	684,028,712		$	940,805,741		38%	$	684,028,712		$	940,805,741		38%
Fee-Earning Assets Under Management	$	498,932,526		$	683,825,961		37%	$	498,932,526		$	683,825,961		37%

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 two quarters. See pages 30-31 for the Reconciliation of GAAP to Total Segment Measures.

Blackstone | 3

SUMMARY OF FINANCIALS

LTM Fee Related Earnings of $3.96 per share, an increase of 70% year-over-year.

LTM Total Segment Distributable Earnings were $8.9 billion, an increase of 78% year-over-year.

Fee Related Earnings per Share

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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). If quarterly crystallization of BREIT’s fee related performance revenues had been in effect for all quarters included in the current and prior year LTM periods, LTM FRE would have been up 48% year-over-year and LTM Segment DE would have been up 65% year-over-year. See notes on
page 32 for additional details.

Blackstone | 4

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

Significant realized distributions and unrealized negative appreciation across strategies led to lower Net Accrued Performance Revenues quarter-over-quarter of $7.5 billion ($6.18/share).

Investment Performance

(appreciation / gross returns)


	2Q’22	2Q’22 LTM
Real Estate
Opportunistic	(1.0)%	35.0%
Core+	2.3%	25.5%

Private Equity
Corporate Private Equity	(6.7)%	10.1%
Tactical Opportunities	(2.4)%	11.2%
Secondaries	5.7%	37.8%

Hedge Fund Solutions
BPS Composite	0.6%	3.9%

Credit & Insurance
Private Credit	(0.1)%	10.4%
Liquid Credit	(5.5)%	(4.2)%

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. Secondaries appreciation for 2Q’22
is not impacted by the reporting process change. Including the “catch up” from the reporting process change to reflect the economic and market activity of five quarters in 2Q’22 LTM,
Secondaries appreciation was 43.7% for 2Q’22 LTM. BPS Composite net returns were 0.4% and 3.0% for 2Q’22 and 2Q’22 LTM, respectively. BPS Composite gross and net returns were 1.8% and 1.3% for 2Q’22 YTD, respectively. Private Credit net returns were (0.6)% and 6.0% for 2Q’22 and 2Q’22 LTM, respectively. Liquid Credit net returns were (5.8)% and (4.8)% for 2Q’22 and 2Q’22 LTM, respectively. See notes on pages 32-33 for additional details on investment performance.

Blackstone | 5

CAPITAL METRICS – ADDITIONAL DETAIL

Inflows were $88.3 billion in the quarter, bringing LTM inflows to $339.7 billion.

Realizations were $29.3 billion in the quarter and $95.3 billion over the LTM.

Deployed $47.8 billion in the quarter and $173.4 billion over the LTM.

–

Committed an additional $27.5 billion that was not yet deployed in the quarter.


	Inflows				Realizations				Capital Deployed

($ in millions)	2Q’22		2Q’22 LTM		2Q’22		2Q’22 LTM		2Q’22		2Q’22 LTM
Real Estate	$	48,879	$	123,719	$	19,847	$	41,615	$	25,593	$	67,980
Opportunistic		26,487		36,893		14,469		27,807		3,997		11,842
Core+		19,187		54,293		4,344		10,228		20,732		52,825
BREDS		3,205		32,533		1,034		3,580		864		3,313
Private Equity		20,240		68,165		5,579		33,194		7,460		47,924
Corporate Private Equity		10,222		20,238		1,353		15,418		3,204		20,715
Tactical Opportunities		3,929		11,924		2,231		7,305		715		5,523
Secondaries		3,011		23,735		1,817		9,508		1,793		11,285
Infrastructure		3,078		12,267		177		963		1,747		10,402
Hedge Fund Solutions		2,007		13,680		478		2,046		372		3,966

Credit & Insurance		17,133		134,156		3,406		18,398		14,338		53,564

Total Blackstone	$	88,259	$	339,720	$	29,309	$	95,254	$	47,763	$	173,433

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

Blackstone | 6

ASSETS UNDER MANAGEMENT

Total AUM increased to $940.8 billion, up 38% year-over-year, with $88.3 billion of inflows in the quarter and $339.7 billion over the LTM.

Fee-Earning AUM of $683.8 billion was up 37% year-over-year, with $44.4 billion of inflows in the quarter and $262.4 billion over the LTM.

Perpetual Capital AUM reached $355.9 billion, up 110% year-over-year.

–

Fee-Earning Perpetual Capital AUM reached $306.3 billion, representing 45% of Fee-Earning AUM.


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

Blackstone | 7

ADDITIONAL CAPITAL DETAIL

Invested Performance Eligible AUM reached $487.4 billion at quarter end, up 39% year-over-year.

Undrawn capital (“Total Dry Powder”) available for investment reached a record $170.1 billion.


Invested Performance Eligible AUM		Total Dry Powder
($ in billions)		($ in billions)

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 54% to $320.0 billion with inflows of $48.9 billion in the quarter and $123.7 billion over the LTM.

–

Inflows during the quarter included $24.4 billion in the tenth global opportunistic fund, $9.6 billion in BPP including $7.9 billion in BPP Mileway, $6.6 billion of capital raised in BREIT, and $3.2 billion across BREDS.

–

July 1 subscriptions of $1.4 billion in BREIT not yet included in Total AUM.

Realizations: $19.8 billion in the quarter and $41.6 billion over the LTM.

–

Completed the sale of The Cosmopolitan of Las Vegas, Real Estate’s most profitable single asset sale ever, as well as the recapitalization of Mileway, the largest-ever private real estate transaction globally.

Capital Deployed: $25.6 billion in the quarter and $68.0 billion over the LTM.

–

Committed an additional $9.9 billion that was not yet deployed in the quarter; commitments included the privatizations of an industrial-focused REIT and a student housing REIT.

Appreciation: Opportunistic funds declined (1.0)% in the quarter and appreciated 35.0% over the LTM; Core+ funds appreciated 2.3% in the quarter and 25.5% over the LTM.


							% Change							% Change
($ in thousands)	2Q’21			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD
Management Fees, Net	$	491,251		$	658,036		34%	$	942,833		$	1,277,747		36%
Fee Related Performance Revenues		33,776			265,507		686%		189,168			757,024		300%
Fee Related Compensation		(121,957	)		(273,893	)	125%		(310,449	)		(618,735	)	99%
Other Operating Expenses		(54,760	)		(88,329	)	61%		(99,122	)		(154,332	)	56%
Fee Related Earnings	$	348,310		$	561,321		61%	$	722,430		$	1,261,704		75%

Realized Performance Revenues		351,053			1,997,720		469%		439,691			2,800,636		537%
Realized Performance Compensation		(154,928	)		(831,402	)	437%		(177,690	)		(1,121,433	)	531%
Realized Principal Investment Income		28,129			29,116		4%		128,949			83,091		(36)%
Net Realizations		224,254			1,195,434		433%		390,950			1,762,294		351%
Segment Distributable Earnings	$	572,564		$	1,756,755		207%	$	1,113,380		$	3,023,998		172%

Segment Revenues	$	904,209		$	2,950,379		226%	$	1,700,641		$	4,918,498		189%
Total AUM	$	207,548,236		$	320,038,428		54%	$	207,548,236		$	320,038,428		54%
Fee-Earning AUM	$	166,263,493		$	252,125,870		52%	$	166,263,493		$	252,125,870		52%

Blackstone | 10

PRIVATE EQUITY

Total AUM: Increased 23% to $275.9 billion with inflows of $20.2 billion in the quarter and $68.2 billion over the LTM.

–

Inflows in the quarter included $8.8 billion for the ninth Corporate Private Equity fund, $3.1 billion in Blackstone Infrastructure Partners, and $2.7 billion in the second Blackstone Growth fund.

Realizations: $5.6 billion in the quarter and $33.2 billion over the LTM; realizations in the quarter included proceeds from Phoenix Tower International, La Trobe Financial, and Vine/Chesapeake Energy.

Capital Deployed: $7.5 billion in the quarter and $47.9 billion over the LTM, including Crown Resorts, VFS Global, and Geosyntec during the quarter.

–

Committed an additional $4.4 billion that was not yet deployed in the quarter.

Appreciation: Corporate Private Equity declined (6.7)% in the quarter and appreciated 10.1% over the LTM.

–

Tactical Opportunities declined (2.4)% in the quarter and appreciated 11.2% over the LTM; Secondaries appreciated 5.7% in the quarter and 37.8% over the LTM.


							% Change							% Change
($ in thousands)	2Q’21			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD
Management and Advisory Fees, Net	$	393,277		$	437,853		11%	$	799,725		$	844,841		6%
Fee Related Performance Revenues		—			—		n/a		—			(648	)	n/m
Fee Related Compensation		(136,767	)		(152,622	)	12%		(277,364	)		(303,672	)	9%
Other Operating Expenses		(61,041	)		(83,233	)	36%		(112,096	)		(150,977	)	35%
Fee Related Earnings	$	195,469		$	201,998		3%	$	410,265		$	389,544		(5)%

Realized Performance Revenues		383,010			122,884		(68)%		638,855			573,122		(10)%
Realized Performance Compensation		(159,375	)		(57,380	)	(64)%		(270,584	)		(264,083	)	(2)%
Realized Principal Investment Income		27,796			8,904		(68)%		143,199			74,342		(48)%
Net Realizations		251,431			74,408		(70)%		511,470			383,381		(25)%
Segment Distributable Earnings	$	446,900		$	276,406		(38)%	$	921,735		$	772,925		(16)%

Segment Revenues	$	804,083		$	569,641		(29)%	$	1,581,779		$	1,491,657		(6)%
Total AUM	$	223,621,359		$	275,886,414		23%	$	223,621,359		$	275,886,414		23%
Fee-Earning AUM	$	132,475,486		$	163,521,507		23%	$	132,475,486		$	163,521,507		23%

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

Blackstone | 11

HEDGE FUND SOLUTIONS

Total AUM: $80.1 billion with inflows of $2.0 billion in the quarter and $13.7 billion over the LTM.

–

Inflows in the quarter included $322 million for the initial close of the second Dislocation fund.

–

July 1 subscriptions of $140 million are not yet included in Total AUM.

Returns: BPS Composite gross return of 0.6% in the quarter (0.4% net), demonstrating the ability to provide downside protection in difficult global markets.

–

BPS capitalized on the heightened level of volatility across asset classes through macro and quantitative strategies and benefited from floating-rate, non-corporate credit exposure throughout the quarter.

–

Gross returns of 3.9% over the LTM (3.0% net), with significantly less volatility than the broader markets, compared to (5.1)% return over the LTM for the HFRX Global Hedge Fund Index.


							% Change							% Change
($ in thousands)	2Q’21			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD
Management Fees, Net	$	156,599		$	148,487		(5)%	$	311,420		$	294,933		(5)%
Fee Related Compensation		(38,638	)		(57,863	)	50%		(77,488	)		(105,098	)	36%
Other Operating Expenses		(21,873	)		(26,066	)	19%		(41,045	)		(49,250	)	20%
Fee Related Earnings	$	96,088		$	64,558		(33)%	$	192,887		$	140,585		(27)%

Realized Performance Revenues		17,056			7,197		(58)%		48,629			36,110		(26)%
Realized Performance Compensation		(5,626	)		(2,083	)	(63)%		(12,534	)		(11,083	)	(12)%
Realized Principal Investment Income		2,125			(1,530	)	n/m		37,675			13,371		(65)%
Net Realizations		13,555			3,584		(74)%		73,770			38,398		(48)%
Segment Distributable Earnings	$	109,643		$	68,142		(38)%	$	266,657		$	178,983		(33)%

Segment Revenues	$	175,780		$	154,154		(12)%	$	397,724		$	344,414		(13)%
Total AUM	$	79,145,263		$	80,051,408		1%	$	79,145,263		$	80,051,408		1%
Fee-Earning AUM	$	72,240,152		$	72,629,621		1%	$	72,240,152		$	72,629,621		1%

Blackstone | 12

CREDIT & INSURANCE

Total AUM: Increased 52% to $264.8 billion with inflows of $17.1 billion in the quarter and $134.2 billion over the LTM.

–

Inflows during the quarter included $4.2 billion of equity raised for BCRED, $3.1 billion for liquid credit strategies, and $2.1 billion for the asset-based finance platform.

–

July 1 subscriptions of $906 million for BCRED not yet included in Total AUM.

–

Closed 5 new U.S. CLOs for $2.8 billion and priced 1 additional U.S. CLO for $394 million.

Realizations: $3.4 billion in the quarter and $18.4 billion over the LTM.

Capital Deployed: $14.3 billion in the quarter and $53.6 billion over the LTM driven by U.S. Direct Lending.

–

Committed an additional $13.1 billion that was not yet deployed in the quarter.

Returns: Private Credit gross return of (0.1)% ((0.6)% net) and Liquid Credit gross return of (5.5)% ((5.8)% net) for the quarter, driven by unrealized depreciation in publicly priced securities.


							% Change							% Change
($ in thousands)	2Q’21			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD
Management Fees, Net	$	171,615		$	312,541		82%	$	336,969		$	612,764		82%
Fee Related Performance Revenues		15,113			81,086		437%		28,889			148,282		413%
Fee Related Compensation		(78,023	)		(137,035	)	76%		(155,194	)		(264,379	)	70%
Other Operating Expenses		(44,504	)		(63,882	)	44%		(91,339	)		(121,049	)	33%
Fee Related Earnings	$	64,201		$	192,710		200%	$	119,325		$	375,618		215%

Realized Performance Revenues		41,819			78,973		89%		67,086			109,716		64%
Realized Performance Compensation		(18,342	)		(36,109	)	97%		(28,387	)		(49,495	)	74%
Realized Principal Investment Income		5,082			7,019		38%		51,465			29,800		(42)%
Net Realizations		28,559			49,883		75%		90,164			90,021		(0)%
Segment Distributable Earnings	$	92,760		$	242,593		162%	$	209,489		$	465,639		122%

Segment Revenues	$	233,629		$	479,619		105%	$	484,409		$	900,562		86%
Total AUM	$	173,713,854		$	264,829,491		52%	$	173,713,854		$	264,829,491		52%
Fee-Earning AUM	$	127,953,395		$	195,548,963		53%	$	127,953,395		$	195,548,963		53%

See note on page 33 for additional details on Private Credit return calculations.

Blackstone | 13

Supplemental Details

Blackstone | 14

TOTAL SEGMENTS


($ in thousands)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21 YTD			2Q’22 YTD

Base Management Fees	$	1,140,051		$	1,207,866		$	1,354,068		$	1,439,149		$	1,496,876		$	2,257,341		$	2,936,025

Transaction, Advisory and Other Fees, Net		78,125			114,784			120,389			64,009			85,092			156,765			149,101

Management Fee Offsets		(5,434	)		(2,575	)		(18,237	)		(29,790	)		(25,051	)		(23,159	)		(54,841	)

Total Management and Advisory Fees, Net		1,212,742			1,320,075			1,456,220			1,473,368			1,556,917			2,390,947			3,030,285

Fee Related Performance Revenues		48,889			73,313			1,733,874			558,065			346,593			218,057			904,658

Fee Related Compensation		(375,385	)		(419,481	)		(1,108,034	)		(670,471	)		(621,413	)		(820,495	)		(1,291,884	)

Other Operating Expenses		(182,178	)		(194,942	)		(255,133	)		(214,098	)		(261,510	)		(343,602	)		(475,608	)

Fee Related Earnings	$	704,068		$	778,965		$	1,826,927		$	1,146,864		$	1,020,587		$	1,444,907		$	2,167,451



Realized Performance Revenues		792,938			1,497,477			1,191,374			1,312,810			2,206,774			1,194,261			3,519,584

Realized Performance Compensation		(338,271	)		(619,074	)		(449,301	)		(519,120	)		(926,974	)		(489,195	)		(1,446,094	)

Realized Principal Investment Income		63,132			151,010			75,468			157,095			43,509			361,288			200,604

Total Net Realizations		517,799			1,029,413			817,541			950,785			1,323,309			1,066,354			2,274,094

Total Segment Distributable Earnings	$	1,221,867		$	1,808,378		$	2,644,468		$	2,097,649		$	2,343,896		$	2,511,261		$	4,441,545



Net Interest and Dividend Income (Loss)		(11,201	)		(16,238	)		6,779			(12,117	)		(3,282	)		(24,129	)		(15,399	)

Taxes and Related Payables		(140,673	)		(156,867	)		(377,920	)		(147,652	)		(354,789	)		(224,895	)		(502,441	)

Distributable Earnings	$	1,069,993		$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	2,262,237		$	3,923,705



Additional Metrics:

Total Segment Revenues	$	2,117,701		$	3,041,875		$	4,456,936		$	3,501,338		$	4,153,793		$	4,164,553		$	7,655,131

Total Assets Under Management	$	684,028,712		$	730,662,712		$	880,901,720		$	915,491,742		$	940,805,741		$	684,028,712		$	940,805,741

Fee-Earning Assets Under Management	$	498,932,526		$	528,412,550		$	649,969,058		$	677,943,302		$	683,825,961		$	498,932,526		$	683,825,961

Blackstone | 15

ASSETS UNDER MANAGEMENT – ROLLFORWARD

Total AUM Rollforward

($ in millions)



	Three Months Ended June 30, 2022										Twelve Months Ended June 30, 2022


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	298,197	$	267,956	$	82,897	$	266,442	$	915,492	$	207,548	$	223,621	$	79,145	$	173,714	$	684,029
Inflows		48,879		20,240		2,007		17,133		88,259		123,719		68,165		13,680		134,156		339,720
Outflows		(3,841)		(557)		(3,261)		(6,696)		(14,356)		(8,895)		(3,118)		(11,670)		(15,120)		(38,802)
Net Flows		45,037		19,683		(1,254)		10,437		73,903		114,824		65,048		2,010		119,036		300,917
Realizations		(19,847)		(5,579)		(478)		(3,406)		(29,309)		(41,615)		(33,194)		(2,046)		(18,398)		(95,254)
Market Activity		(3,349)		(6,174)		(1,113)		(8,643)		(19,279)		39,281		20,412		942		(9,522)		51,113
Ending Balance	$	320,038	$	275,886	$	80,051	$	264,829	$	940,806	$	320,038	$	275,886	$	80,051	$	264,829	$	940,806
% Change		7%		3%		(3)%		(1)%		3%		54%		23%		1%		52%		38%

Fee-Earning AUM Rollforward

($ in millions)



	Three Months Ended June 30, 2022										Twelve Months Ended June 30, 2022


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	240,621	$	160,946	$	75,686	$	200,690	$	677,943	$	166,263	$	132,475	$	72,240	$	127,953	$	498,933
Inflows		24,716		6,031		1,610		12,077		44,433		102,163		42,219		12,635		105,417		262,434
Outflows		(3,525)		(44)		(3,205)		(6,719)		(13,492)		(9,482)		(3,545)		(10,868)		(14,121)		(38,016)
Net Flows		21,191		5,987		(1,595)		5,358		30,941		92,681		38,674		1,767		91,296		224,418
Realizations		(8,913)		(2,964)		(461)		(1,764)		(14,102)		(23,490)		(12,465)		(1,910)		(10,759)		(48,624)
Market Activity		(774)		(447)		(1,000)		(8,734)		(10,955)		16,671		4,837		532		(12,941)		9,099
Ending Balance	$	252,126	$	163,522	$	72,630	$	195,549	$	683,826	$	252,126	$	163,522	$	72,630	$	195,549	$	683,826
% Change		5%		2%		(4)%		(3)%		1%		52%		23%		1%		53%		37%

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.

Blackstone | 16

DECONSOLIDATED BALANCE SHEET HIGHLIGHTS

At June 30, 2022, Blackstone had $10.0 billion in total cash, cash equivalents, corporate treasury, and other investments and $19.8 billion of cash and net investments, or $16.38 per share.

Blackstone has a $4.1 billion undrawn credit revolver and maintains A+/A+ ratings.

– On June 1, 2022, Blackstone issued €500 million of 12-year notes at a 3.5% coupon.



($ in millions)	2Q’22

Cash and Cash Equivalents	$	4,183

Corporate Treasury and Other Investments		5,864

GP/Fund Investments		2,277

Net Accrued Performance Revenues		7,476

Cash and Net Investments	$	19,801

Outstanding Debt (at par)		9,497

Cash and Net Investments

(per share)

LOGO

A+ / A+

rated by S&P and Fitch

$4.1B

credit revolver with

June 2027 maturity

$10.0B

total cash, corporate

treasury and other

Balance Sheet Highlights exclude the consolidated Blackstone Funds. Other Investments was $3.7 billion as of June 30, 2022, which was comprised of $1.3 billion of liquid investments and $2.4 billion 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)	2Q’21		1Q’22		2Q’22		2Q’22
($ in millions, except per share data)	2Q’21		1Q’22		2Q’22		Per Share
Real Estate
BREP IV	$	19	$	6	$	7	$	0.01
BREP V		26		1		3		0.00
BREP VI		42		38		32		0.03
BREP VII		300		527		164		0.14
BREP VIII		626		990		841		0.70
BREP IX		359		1,139		1,015		0.84
BREP Europe IV		89		93		83		0.07
BREP Europe V		312		548		120		0.10
BREP Europe VI		60		301		80		0.07
BREP Asia I		107		126		114		0.09
BREP Asia II		98		189		153		0.13
BPP		265		734		755		0.62
BREIT		247		—		—		—
BEPIF		—		6		—		—
BREDS		32		37		15		0.01
BTAS		6		83		111		0.09
Real Estate	$	2,591	$	4,817	$	3,491	$	2.89
Private Equity
BCP IV		9		8		8	$	0.01
BCP V		39		—		3		0.00
BCP VI		740		475		407		0.34
BCP VII		1,351		1,257		975		0.81
BCP VIII		89		315		235		0.19
BCP Asia I		213		330		195		0.16
BEP I		28		27		27		0.02
BEP III		47		93		76		0.06
BCEP		170		222		224		0.19
Tactical Opportunities		374		378		311		0.26
Growth		59		12		—		—
Secondaries		262		570		629		0.52
Infrastructure		81		106		67		0.06
Life Sciences		23		22		24		0.02
BTAS/Other		151		255		228		0.19
Private Equity	$	3,637	$	4,070	$	3,408	$	2.82

Hedge Fund Solutions	$	300	$	342	$	305	$	0.25

Credit & Insurance	$	233	$	318	$	271	$	0.22

Net Accrued Performance Revenues	$	6,761	$	9,546	$	7,476	$	6.18

2Q’22 QoQ Rollforward

($ in millions)


			Net			Net
			Performance			Realized
	1Q’22		Revenues			Distributions			2Q’22

Real Estate	$	4,817	$	(6	)	$	(1,320	)	$	3,491

Private Equity		4,070		(595	)		(66	)		3,408

HFS		342		(37	)		1			305

Credit & Insurance		318		43			(89	)		271

Total	$	9,546	$	(596	)	$	(1,474	)	$	7,476

QoQ Change										(22)%

2Q’22 LTM Rollforward

($ in millions)


			Net		Net
			Performance		Realized
	2Q’21		Revenues		Distributions			2Q’22

Real Estate	$	2,591	$	4,325	$	(3,425	)	$	3,491

Private Equity		3,637		1,150		(1,379	)		3,408

HFS		300		217		(212	)		305

Credit & Insurance		233		310		(272	)		271

Total	$	6,761	$	6,003	$	(5,288	)	$	7,476

YoY Change									11%

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 JUNE 30, 2022^(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		—		23,471		n/a		4,640,501	1.7x		4,663,972		1.7x	12%	12%
BREP V (Dec 2005 / Feb 2007)		5,539,418		—		7,046		n/a		13,450,289	2.3x		13,457,335		2.3x	11%	11%
BREP VI (Feb 2007 / Aug 2011)		11,060,444		550,447		347,417		2.0x		27,454,501	2.5x		27,801,918		2.5x	13%	13%
BREP VII (Aug 2011 / Apr 2015)		13,501,376		1,513,399		3,574,239		0.9x		27,931,757	2.4x		31,505,996		2.0x	22%	15%
BREP VIII (Apr 2015 / Jun 2019)		16,592,792		2,302,626		15,233,276		1.7x		21,102,039	2.6x		36,335,315		2.1x	28%	18%
*BREP IX (Jun 2019 / Dec 2024)		21,492,844		7,400,820		23,129,782		1.7x		7,308,322	2.2x		30,438,104		1.8x	66%	40%
BREP X (TBD)		24,416,257		24,416,257		—		n/a		—	n/a		—		n/a	n/a	n/a
Total Global BREP	$	98,044,294	$	36,183,549	$	42,315,231		1.6x	$	109,422,327	2.4x	$	151,737,558		2.1x	18%	17%
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		2,583,032	1.8x		2,583,032		1.8x	8%	8%
BREP Europe III (Jun 2008 / Sep 2013)		3,205,318		428,342		261,685		0.5x		5,792,216	2.4x		6,053,901		2.0x	19%	14%
BREP Europe IV (Sep 2013 / Dec 2016)		6,673,049		1,419,267		1,824,144		1.3x		9,725,105	2.0x		11,549,249		1.8x	20%	13%
BREP Europe V (Dec 2016 / Oct 2019)		7,965,079		1,381,611		5,884,481		1.1x		6,462,442	4.1x		12,346,923		1.8x	43%	14%
*BREP Europe VI (Oct 2019 / Apr 2025)		9,907,845		6,534,038		4,463,598		1.3x		3,264,144	2.6x		7,727,742		1.6x	75%	28%
Total BREP Europe	€	30,205,211	€	9,763,258	€	12,433,908		1.2x	€	29,200,109	2.4x	€	41,634,017		1.8x	17%	13%
BREP Asia I (Jun 2013 / Dec 2017)	$	4,261,983	$	917,133	$	2,326,971		1.5x	$	6,243,752	2.1x	$	8,570,723		1.9x	20%	13%
BREP Asia II (Dec 2017 / Mar 2022)		7,360,069		1,643,769		7,394,631		1.3x		735,246	1.8x		8,129,877		1.3x	48%	10%
*BREP Asia III (Mar 2022 / Sep 2027)		7,939,534		7,171,611		764,873		1.0x		—	n/a		764,873		1.0x	n/a	n/m
BREP Co-Investment (f)		7,208,976		38,835		956,619		2.3x		15,039,293	2.2x		15,995,912		2.2x	16%	16%
Total BREP	$	160,791,446	$	56,190,696	$	68,077,191		1.4x	$	167,160,041	2.4x	$	235,237,232		2.0x	17%	16%
*BREDS High-Yield (Various) (g)		20,003,798		5,631,946		5,272,920		1.0x		16,158,336	1.3x		21,431,256		1.2x	10%	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		15,234		n/a		2,953,649	1.4x		2,968,883		1.4x	6%	6%
BCP IV (Nov 2002 / Dec 2005)		6,773,182		167,384		128,418		1.3x		21,479,599	2.9x		21,608,017		2.8x	36%	36%
BCP V (Dec 2005 / Jan 2011)		21,009,112		1,035,259		112,877		7.6x		38,427,169	1.9x		38,540,046		1.9x	8%	8%
BCP VI (Jan 2011 / May 2016)		15,195,678		1,371,459		6,778,103		1.7x		24,354,324	2.2x		31,132,427		2.1x	17%	12%
BCP VII (May 2016 / Feb 2020)		18,856,429		1,934,706		22,565,824		1.7x		10,172,064	2.4x		32,737,888		1.8x	36%	16%
*BCP VIII (Feb 2020 / Feb 2026)		25,425,302		16,245,056		12,531,080		1.4x		517,592	2.9x		13,048,672		1.4x	123%	25%
BCP IX (TBD)		8,774,458		8,774,458		—		n/a		—	n/a		—		n/a	n/a	n/a
Energy I (Aug 2011 / Feb 2015)		2,441,558		174,492		616,487		1.6x		3,988,731	2.0x		4,605,218		1.9x	13%	12%
Energy II (Feb 2015 / Feb 2020)		4,935,906		1,033,151		4,836,068		1.7x		2,015,804	1.2x		6,851,872		1.5x	2%	8%
*Energy III (Feb 2020 / Feb 2026)		4,322,015		2,664,851		2,369,680		1.6x		342,423	2.9x		2,712,103		1.7x	113%	41%
BCP Asia I (Dec 2017 / Sep 2021)		2,452,948		869,236		3,387,455		2.2x		1,024,467	4.9x		4,411,922		2.5x	109%	41%
*BCP Asia II (Sep 2021 / Sep 2027)		6,554,765		6,499,684		(37,515	)	n/a		—	n/a		(37,515	)	n/a	n/a	n/a
Core Private Equity I (Jan 2017 / Mar 2021) (h)		4,764,447		1,149,384		8,047,555		2.1x		2,031,090	3.7x		10,078,645		2.3x	52%	25%
*Core Private Equity II (Mar 2021 / Mar 2026) (h)		8,190,362		6,738,547		1,530,541		1.1x		—	n/a		1,530,541		1.1x	n/a	n/m
Total Corporate Private Equity	$	138,021,095	$	48,682,242	$	62,881,807		1.6x	$	121,490,157	2.2x	$	184,371,964		2.0x	16%	15%

Notes on page 21. BREP – Blackstone Real Estate Partners, BREDS – Blackstone Real Estate Debt Strategies, BCP – Blackstone Capital Partners, BCOM – Blackstone Communications.

* Represents funds that are currently in their investment period.

Blackstone | 19

INVESTMENT RECORDS AS OF JUNE 30, 2022^(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)	$	22,502,048	$	6,729,103	$	13,244,038		1.3x	$	19,204,237	1.9x	$	32,448,275	1.6x	17%	12%
*Tactical Opportunities Co-Investment and Other (Various)		15,074,572		6,426,962		4,901,464		1.9x		7,985,975	1.6x		12,887,439	1.7x	18%	19%
Total Tactical Opportunities	$	37,576,620	$	13,156,065	$	18,145,502		1.4x	$	27,190,212	1.8x	$	45,335,714	1.6x	18%	14%
Growth
*BXG I (Jul 2020 / Jul 2025)		5,046,626		1,560,759		3,404,666		1.0x		349,310	3.2x		3,753,976	1.1x	n/m	2%
BXG II (TBD)		2,724,745		2,724,745		—		n/a		—	n/a		—	n/a	n/a	n/a
Total Growth	$	7,771,371	$	4,285,504	$	3,404,666		1.0x	$	349,310	3.2x	$	3,753,976	1.1x	n/m	2%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (i)		11,447,898		841,025		462,891		n/a		16,884,082	n/a		17,346,973	1.7x	n/a	13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i)		4,362,750		1,481,621		1,187,348		n/a		3,983,862	n/a		5,171,210	1.7x	n/a	15%
Strategic Partners VII (May 2016 / Mar 2019) (i)		7,489,970		1,864,053		5,287,041		n/a		5,467,940	n/a		10,754,981	2.1x	n/a	22%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)		1,749,807		521,624		1,114,775		n/a		968,153	n/a		2,082,928	1.5x	n/a	17%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)		10,763,600		5,136,286		9,537,790		n/a		4,601,030	n/a		14,138,820	1.9x	n/a	50%
*Strategic Partners Real Estate, SMA and Other (Various) (i)		8,651,148		2,985,524		3,414,860		n/a		3,000,632	n/a		6,415,492	1.6x	n/a	19%
*Strategic Partners Infra III (Jun 2020 / Jul 2024) (i)		3,250,100		2,053,491		715,816		n/a		124,956	n/a		840,772	1.7x	n/a	80%
*Strategic Partners IX (Oct 2021 / Jul 2026) (i)		14,865,033		10,241,936		3,075,626		n/a		44,826	n/a		3,120,452	1.5x	n/a	n/m
Total Strategic Partners (Secondaries)	$	62,580,306	$	25,125,560	$	24,796,147		n/a	$	35,075,481	n/a	$	59,871,628	1.8x	n/a	16%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)		910,000		18,801		841,386		1.6x		239,712	1.9x		1,081,098	1.6x	23%	15%
*BXLS V (Jan 2020 / Jan 2025)		4,839,395		2,112,416		1,130,149		1.3x		71,549	1.3x		1,201,698	1.3x	n/a	1%

Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)	$	2,000,000	$	97,114	$	19,012		1.5x	$	4,786,397	1.6x	$	4,805,409	1.6x	n/a	17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)		4,120,000		998,263		283,280		0.3x		6,493,270	1.6x		6,776,550	1.4x	n/a	10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)		6,639,133		913,019		4,109,350		1.1x		5,170,802	1.6x		9,280,152	1.3x	n/a	10%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)		5,016,771		3,617,845		1,470,872		1.0x		43,818	n/m		1,514,690	1.1x	n/a	11%
Stressed / Distressed I (Sep 2009 / May 2013)		3,253,143		76,000		—		n/a		5,777,098	1.3x		5,777,098	1.3x	n/a	9%
Stressed / Distressed II (Jun 2013 / Jun 2018)		5,125,000		547,430		316,235		0.4x		5,238,819	1.2x		5,555,054	1.1x	n/a	0%
*Stressed / Distressed III (Dec 2017 / Dec 2022)		7,356,380		2,882,714		2,508,295		1.0x		2,457,462	1.4x		4,965,757	1.1x	n/a	8%
Energy I (Nov 2015 / Nov 2018)		2,856,867		1,057,173		749,525		0.9x		2,576,126	1.7x		3,325,651	1.4x	n/a	9%
*Energy II (Feb 2019 / Feb 2024)		3,616,081		2,191,422		1,615,733		1.1x		983,485	1.4x		2,599,218	1.2x	n/a	23%
European Senior Debt I (Feb 2015 / Feb 2019)	€	1,964,689	€	331,263	€	1,011,622		0.9x	€	2,271,934	1.4x	€	3,283,556	1.2x	n/a	5%
*European Senior Debt II (Jun 2019 / Jun 2024)	€	4,088,344	€	1,682,646	€	3,801,389		1.0x	€	1,253,154	1.5x	€	5,054,543	1.1x	n/a	15%
Total Credit Drawdown Funds (j)	$	46,889,033	$	14,486,437	$	16,104,065		0.9x	$	37,558,519	1.5x	$	53,662,584	1.3x	n/a	10%

Selected Perpetual Capital Strategies^(k)

($ in thousands, except where noted)

Investment

Total

Total Net

Strategy (Inception Year)

Strategy

AUM

Return (l)

Real Estate

BPP - Blackstone Property Partners (2013) (m)

Core+ Real Estate

73,817,041

12%

BREIT - Blackstone Real Estate Income Trust (2017) (n)

Core+ Real Estate

68,281,628

13%

BXMT - Blackstone Mortgage Trust (2013) (o)

Real Estate Debt

7,277,274

Private Equity

BIP - Blackstone Infrastructure Partners (2019) (p)

Infrastructure

24,538,314

17%

Hedge Fund Solutions

BSCH - Blackstone Strategic Capital Holdings (2014) (q)

GP Stakes

10,245,103

16%

Credit

BXSL - Blackstone Secured Lending Fund (2018) (r)

U.S. Direct Lending

10,691,421

10%

BCRED - Blackstone Private Credit Fund (2021) (s)

U.S. Direct Lending

53,085,115

Notes on page 21. BXLS – Blackstone Life Sciences.

* Represents funds that are currently in their investment period.

Blackstone | 20

INVESTMENT RECORDS AS OF JUNE 30, 2022 – 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 June 30, 2022 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)

BREDS High-Yield represents the flagship real estate debt drawdown funds only.

(h)

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.

(i)

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 Strategic Partners’ fund financial statements and therefore do not include the impact of economic and market activities in the current quarter.

(j)

Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds presented.

(k)

Represents the performance for select Perpetual Capital Strategies; strategies excluded consist primarily of (1) investment strategies that have been investing for less than one year, (2) most perpetual capital assets managed for insurance clients, and (3) investment vehicles where Blackstone does not earn fees.

(l)

Unless otherwise indicated, Total Net Return represents the annualized inception to June 30, 2022 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 investor cash flows. Initial inception date of cash flows occurred during the Inception Year.

(m)

BPP includes certain vehicles managed as part of the BPP Platform but not classified as Perpetual Capital. As of June 30, 2022, these vehicles represented $3.2 billion of Total AUM.

(n)

The BREIT Total 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. Total Net Returns are presented on an annualized basis and are from January 1, 2017.

(o)

The BXMT return reflects annualized market return of a shareholder invested in BXMT since inception through June 30, 2022, assuming reinvestment of all dividends received during the period. Return incorporates the closing NYSE stock price as of June 30, 2022. Total Net Return is from May 22, 2013.

(p)

Including co-investment vehicles that do not pay fees, BIP Total AUM is $29.7 billion.

(q)

BSCH represents the aggregate Total AUM and Total Net Return of BSCH I and BSCH II funds that invest as part of the GP Stakes strategy, which targets minority investments in the general partners of private equity and other private-market alternative asset management firms globally. Including co-investment vehicles that do not pay fees, BSCH Total AUM is $11.1 billion.

(r)

The BXSL Total AUM and Total Net Return are presented as of March 31, 2022. BXSL Total Net Return reflects the change in NAV per share, plus distributions per share (assuming dividends and distributions are reinvested in accordance with BXSL’s dividend reinvestment plan) divided by the beginning NAV per share. Total Net Returns are presented on an annualized basis and are from November 20, 2018.

(s)

The BCRED Total Net Return reflects a per share blended return, assuming BCRED 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 BCRED. These returns are not representative of the returns experienced by any particular investor or share class. Total Net Returns are presented on an annualized basis and are from January 7, 2021. Total AUM reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset value as of June 30, 2022 was $21.0 billion.

Blackstone | 21

SHAREHOLDER DIVIDENDS

Generated $1.49 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $3.04 per common share.

Blackstone declared a quarterly dividend of $1.27 per common share to record holders as of August 1, 2022; payable on August 8, 2022.


																% Change							% Change
($ in thousands, except per share data)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			vs. 2Q’21	2Q’21 YTD			2Q’22 YTD			vs. 2Q’21 YTD

Distributable Earnings	$	1,069,993		$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		86%	$	2,262,237		$	3,923,705		73%
Add: Other Payables Attributable to Common Shareholders		120,336			133,841			352,514			115,166			298,570		148%		181,585			413,736		128%

DE before Certain Payables		1,190,329			1,769,114			2,625,841			2,053,046			2,284,395		92%		2,443,822			4,337,441		77%

Percent to Common Shareholders		60%			60%			61%			61%			61	%			59%			61%
DE before Certain Payables Attributable to Common Shareholders		710,081			1,059,142			1,601,199			1,254,703			1,402,640		98%		1,451,743			2,657,343		83%
Less: Other Payables Attributable to Common Shareholders		(120,336	)		(133,841	)		(352,514	)		(115,166	)		(298,570	)	148%		(181,585	)		(413,736	)	128%

DE Attributable to Common Shareholders		589,745			925,301			1,248,685			1,139,537			1,104,070		87%		1,270,158			2,243,607		77%

DE per Common Share	$	0.82		$	1.28		$	1.71		$	1.55		$	1.49		82%	$	1.78		$	3.04		71%

Less: Retained Capital per Common Share	$	(0.12	)	$	(0.19	)	$	(0.26	)	$	(0.23	)	$	(0.22	)	83%	$	(0.26	)	$	(0.45	)	73%

Actual Dividend per Common Share	$	0.70		$	1.09		$	1.45		$	1.32		$	1.27		81%	$	1.52		$	2.59		70%

Record Date														Aug 1, 2022

Payable Date														Aug 8, 2022

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 1.209 billion shares.

–

Repurchased 1.9 million common shares in the quarter and 8.9 million common shares over the LTM.

–

Available authorization remaining was $1.3 billion at June 30, 2022.



	2Q’21		3Q’21		4Q’21		1Q’22		2Q’22

Participating Common Shares		720,474,539		721,369,398		732,037,197		734,543,862		742,187,838

Participating Partnership Units		487,276,882		483,553,949		468,446,388		467,375,889		466,568,377

Distributable Earnings Shares Outstanding		1,207,751,421		1,204,923,347		1,200,483,585		1,201,919,751		1,208,756,215

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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22

Net Income (Loss) Attributable to Blackstone Inc.	$	1,309,152		$	1,401,895		$	1,398,478		$	1,216,874		$	(29,393	)	$	3,057,024		$	1,187,481		$	4,600,613		$	3,987,854

Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings		1,116,193			1,315,641			1,218,934			1,059,313			(35,521	)		2,351,977			1,023,792			3,749,890			3,558,367

Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		431,516			486,907			320,033			216,375			(216,707	)		818,366			(332	)		1,386,182			806,608

Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		637			1,550			2,924			5,052			25,875			1,266			30,927			6,263			35,401

Net Income (Loss)	$	2,857,498		$	3,205,993		$	2,940,369		$	2,497,614		$	(255,746	)	$	6,228,633		$	2,241,868		$	9,742,948		$	8,388,230

Provision for Taxes		288,250			458,904			437,694			483,281			36,514			287,803			519,795			655,105			1,416,393

Income (Loss) Before Provision for Taxes	$	3,145,748		$	3,664,897		$	3,378,063		$	2,980,895		$	(219,232	)	$	6,516,436		$	2,761,663		$	10,398,053		$	9,804,623

Transaction-Related Charges (a)		35,533			59,193			21,424			25,333			25,141			63,421			50,474			180,996			131,091

Amortization of Intangibles (b)		17,044			17,044			17,044			17,044			17,044			34,168			34,088			67,186			68,176

Impact of Consolidation (c)		(432,153	)		(488,457	)		(322,957	)		(221,427	)		190,832			(819,632	)		(30,595	)		(1,392,445	)		(842,009	)

Unrealized Performance Revenues (d)		(2,697,170	)		(2,724,366	)		(789,213	)		(1,293,050	)		3,467,668			(5,161,667	)		2,174,618			(7,162,432	)		(1,338,961	)

Unrealized Performance Allocations Compensation (e)		1,150,219			1,193,853			384,007			472,284			(1,386,543	)		2,200,188			(914,259	)		2,988,237			663,601

Unrealized Principal Investment (Income) Loss (f)		(104,658	)		2,343			(153,518	)		(26,758	)		203,288			(528,592	)		176,530			(820,144	)		25,355

Other Revenues (g)		(27,870	)		(64,109	)		(50,633	)		(72,819	)		(155,704	)		(88,143	)		(228,523	)		248,095			(343,265	)

Equity-Based Compensation (h)		121,422			129,254			164,589			201,545			195,644			265,694			397,189			422,648			691,032

Administrative Fee Adjustment (i)		2,551			2,488			2,441			2,485			2,476			5,259			4,961			10,524			9,890

Taxes and Related Payables (j)		(140,673	)		(156,867	)		(377,920	)		(147,652	)		(354,789	)		(224,895	)		(502,441	)		(441,979	)		(1,037,228	)

Distributable Earnings	$	1,069,993		$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	2,262,237		$	3,923,705		$	4,498,739		$	7,832,305

Taxes and Related Payables (j)		140,673			156,867			377,920			147,652			354,789			224,895			502,441			441,979			1,037,228

Net Interest and Dividend (Income) Loss (k)		11,201			16,238			(6,779	)		12,117			3,282			24,129			15,399			42,464			24,858

Total Segment Distributable Earnings	$	1,221,867		$	1,808,378		$	2,644,468		$	2,097,649		$	2,343,896		$	2,511,261		$	4,441,545		$	4,983,182		$	8,894,391

Realized Performance Revenues (l)		(792,938	)		(1,497,477	)		(1,191,374	)		(1,312,810	)		(2,206,774	)		(1,194,261	)		(3,519,584	)		(2,790,844	)		(6,208,435	)

Realized Performance Compensation (m)		338,271			619,074			449,301			519,120			926,974			489,195			1,446,094			1,094,453			2,514,469

Realized Principal Investment Income (n)		(63,132	)		(151,010	)		(75,468	)		(157,095	)		(43,509	)		(361,288	)		(200,604	)		(480,993	)		(427,082	)

Fee Related Earnings	$	704,068		$	778,965		$	1,826,927		$	1,146,864		$	1,020,587		$	1,444,907		$	2,167,451		$	2,805,798		$	4,773,343

Adjusted EBITDA Reconciliation

Distributable Earnings	$	1,069,993		$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	2,262,237		$	3,923,705		$	4,498,739		$	7,832,305

Interest Expense (o)		44,132			51,773			56,387			66,602			69,425			88,472			136,027			173,030			244,187

Taxes and Related Payables (j)		140,673			156,867			377,920			147,652			354,789			224,895			502,441			441,979			1,037,228

Depreciation and Amortization (p)		12,581			12,771			14,542			14,316			15,644			24,874			29,960			44,388			57,273

Adjusted EBITDA	$	1,267,379		$	1,856,684		$	2,722,176		$	2,166,450		$	2,425,683		$	2,600,478		$	4,592,133		$	5,158,136		$	9,170,993

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 Allocations.

(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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22
GAAP Unrealized Principal Investment Income (Loss)	$	328,835		$	183,754		$	304,297		$	73,961		$	(500,490	)	$	968,150		$	(426,529	)	$	1,481,146		$	61,522
Segment Adjustment		(224,177	)		(186,097	)		(150,779	)		(47,203	)		297,202			(439,558	)		249,999			(661,002	)		(86,877	)

Unrealized Principal Investment Income (Loss)	$	104,658		$	(2,343	)	$	153,518		$	26,758		$	(203,288	)	$	528,592		$	(176,530	)	$	820,144		$	(25,355	)

(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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22
GAAP Other Revenue	$	27,896		$	64,187		$	50,699		$	72,869		$	155,588		$	88,200		$	228,457		$	(247,542	)	$	343,343
Segment Adjustment		(26	)		(78	)		(66	)		(50	)		116			(57	)		66			(553	)		(78	)
Other Revenues	$	27,870		$	64,109		$	50,633		$	72,819		$	155,704		$	88,143		$	228,523		$	(248,095	)	$	343,265
(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. (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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22
Taxes	$	127,809		$	140,548		$	365,109		$	124,645		$	324,954		$	197,418		$	449,599		$	393,251		$	955,256
Related Payables		12,864			16,319			12,811			23,007			29,835			27,477			52,842			48,728			81,972
Taxes and Related Payables	$	140,673		$	156,867		$	377,920		$	147,652		$	354,789		$	224,895		$	502,441		$	441,979		$	1,037,228

Blackstone | 26

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


(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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22
GAAP Interest and Dividend Revenue	$	31,017		$	35,048		$	63,166		$	54,485		$	62,075		$	62,429		$	116,560		$	128,652		$	214,774
Segment Adjustment		1,914			487			—			—			4,068			1,914			4,068			1,914			4,555
Interest and Dividend Revenue	$	32,931		$	35,535		$	63,166		$	54,485		$	66,143		$	64,343		$	120,628		$	130,566		$	219,329

GAAP Interest Expense	$	44,322		$	52,413		$	56,550		$	66,747		$	69,642		$	89,305		$	136,389		$	174,547		$	245,352
Segment Adjustment		(190	)		(640	)		(163	)		(145	)		(217	)		(833	)		(362	)		(1,517	)		(1,165	)
Interest Expense	$	44,132		$	51,773		$	56,387		$	66,602		$	69,425		$	88,472		$	136,027		$	173,030		$	244,187

Net Interest and Dividend Income (Loss)	$	(11,201	)	$	(16,238	)	$	6,779		$	(12,117	)	$	(3,282	)	$	(24,129	)	$	(15,399	)	$	(42,464	)	$	(24,858	)

(i) 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
	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22
GAAP Shares of Common Stock Outstanding		691,093,463			693,612,698			704,339,774			707,180,830			706,476,877

Unvested Participating Common Shares		29,381,076			27,756,700			27,697,423			27,363,032			35,710,961
Total Participating Common Shares		720,474,539			721,369,398			732,037,197			734,543,862			742,187,838
Participating Partnership Units		487,276,882			483,553,949			468,446,388			467,375,889			466,568,377
Distributable Earnings Shares Outstanding		1,207,751,421			1,204,923,347			1,200,483,585			1,201,919,751			1,208,756,215

Disclosure of Weighted-Average Shares Common Stock Outstanding

	QTD															YTD						LTM
	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22

Total GAAP Weighted-Average Shares of Common Stock Outstanding - Basic		721,141,954			722,229,117			726,445,206			734,327,015			707,382,293			715,121,029			738,752,489			706,212,361			731,485,547

Weighted-Average Shares of Unvested Deferred Restricted Common Stock		123,226			203,982			226,315			639,900			—			501,179			388,373			445,500			376,701

Total GAAP Weighted-Average Shares of Common Stock Outstanding - Diluted		721,265,180			722,433,099			726,671,521			734,966,915			707,382,293			715,622,208			739,140,862			706,657,861			731,862,248

Blackstone | 27

BLACKSTONE’S SECOND QUARTER 2022 GAAP BALANCE SHEET RESULTS



($ in thousands) (unaudited)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22

Assets

Cash and Cash Equivalents	$	2,467,444		$	5,011,433		$	2,119,738		$	3,868,567		$	4,183,380

Cash Held by Blackstone Funds and Other		109,676			113,731			79,994			110,648			129,276

Investments		22,163,322			25,104,195			28,665,043			30,068,474			27,323,758

Accounts Receivable		582,542			496,265			636,616			517,465			774,137

Due from Affiliates		3,159,829			3,718,119			4,656,867			4,004,359			3,891,958

Intangible Assets, Net		321,780			303,082			284,384			265,686			246,988

Goodwill		1,890,202			1,890,202			1,890,202			1,890,202			1,890,202

Other Assets		556,714			538,567			492,936			422,786			658,298

Right-of-Use Assets		723,539			745,886			788,991			868,437			886,911

Deferred Tax Assets		1,322,144			1,116,612			1,581,637			1,327,454			1,646,400

Total Assets	$	33,297,192		$	39,038,092		$	41,196,408		$	43,344,078		$	41,631,308

Liabilities and Equity

Loans Payable	$	5,594,648		$	7,527,576		$	7,748,163		$	8,937,456		$	9,365,274

Due to Affiliates		1,226,504			1,426,209			1,906,098			1,881,054			2,001,391

Accrued Compensation and Benefits		5,789,662			7,399,559			7,905,070			8,140,773			6,765,492

Securities Sold, Not Yet Purchased		35,783			35,657			27,849			27,278			27,029

Repurchase Agreements		57,247			36,545			57,980			77,289			152,529

Operating Lease Liabilities		841,152			863,020			908,033			986,073			993,875

Accounts Payable, Accrued Expenses and Other Liabilities		1,205,182			871,661			937,169			1,053,128			991,620

Total Liabilities		14,750,178			18,160,227			19,490,362			21,103,051			20,297,210

Redeemable Non-Controlling Interests in Consolidated Entities		65,568			66,824			68,028			41,430			1,275,491

Equity

Common Stock, $0.00001 par value (706,476,877 shares issued and outstanding as of June 30, 2022)		7			7			7			7			7

Series I Preferred Stock, $0.00001 par value (1 share issued and outstanding as of June 30, 2022)		—			—			—			—			—

Series II Preferred Stock, $0.00001 par value (1 share issued and outstanding as of June 30, 2022)		—			—			—			—			—

Additional Paid-in-Capital		6,282,600			6,037,628			5,794,727			5,879,796			5,870,285

Retained Earnings		2,133,794			3,031,765			3,647,785			3,805,918			2,803,100

Accumulated Other Comprehensive Loss		(10,245	)		(15,357	)		(19,626	)		(25,754	)		(42,225	)

Non-Controlling Interests in Consolidated Entities		4,860,442			5,638,612			5,600,653			5,747,698			5,281,244

Non-Controlling Interests in Blackstone Holdings		5,214,848			6,118,386			6,614,472			6,791,932			6,146,196

Total Equity		18,481,446			20,811,041			21,638,018			22,199,597			20,058,607

Total Liabilities and Equity	$	33,297,192		$	39,038,092		$	41,196,408		$	43,344,078		$	41,631,308

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)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22

Investments of Consolidated Blackstone Funds	$	1,871,269		$	2,104,705		$	2,018,829		$	2,045,156		$	3,764,850

Equity Method Investments

Partnership Investments		4,916,675			5,303,334			5,635,212			5,858,926			5,446,688

Accrued Performance Allocations		12,101,142			15,063,648			17,096,873			17,661,244			13,544,855

Corporate Treasury Investments		2,440,325			1,520,426			658,066			916,510			810,672

Other Investments		833,911			1,112,082			3,256,063			3,586,638			3,756,693

Total GAAP Investments		22,163,322			25,104,195			28,665,043			30,068,474			27,323,758



Accrued Performance Allocations - GAAP	$	12,101,142		$	15,063,648		$	17,096,873		$	17,661,244		$	13,544,855

Impact of Consolidation (a)		1			1			1			1			12,475

Due from Affiliates - GAAP (b)		59,304			59,669			260,993			112,194			136,631

Less: Net Realized Performance Revenues (c)		(261,760	)		(416,336	)		(1,294,884	)		(743,772	)		(262,083	)

Less: Accrued Performance Compensation - GAAP (d)		(5,137,933	)		(6,395,903	)		(7,324,906	)		(7,483,337	)		(5,955,982	)

Net Accrued Performance Revenues	$	6,760,754		$	8,311,079		$	8,738,077		$	9,546,330		$	7,475,896

Corporate Treasury and Other Investments - GAAP (e)	$	3,274,236		$	2,632,508		$	3,914,129		$	4,503,148		$	4,567,365

Impact of Consolidation (a)		176,320			178,407			144,354			140,905			708,469

Other Assets (f)		479,591			580,641			797,843			379,768			642,875

Other Liabilities (g)		(494,119	)		(169,863	)		(94,314	)		(66,065	)		(54,321	)

Corporate Treasury and Other Investments - Deconsolidated (h)	$	3,436,028		$	3,221,693		$	4,762,012		$	4,957,756		$	5,864,388

Partnership Investments - GAAP	$	4,916,675		$	5,303,334		$	5,635,212		$	5,858,926		$	5,446,688

Impact of Consolidation (i)		(3,091,175	)		(3,459,004	)		(3,552,599	)		(3,623,881	)		(3,169,740	)

GP/Fund Investments - Deconsolidated	$	1,825,500		$	1,844,330		$	2,082,613		$	2,235,045		$	2,276,948

Loans Payable - GAAP	$	5,594,648		$	7,527,576		$	7,748,163		$	8,937,456		$	9,365,274

Impact of Consolidation (j)		(99	)		(100	)		(101	)		—			—

Outstanding Debt - Carrying Value		5,594,549			7,527,476			7,748,062			8,937,456			9,365,274

Unamortized Discount		84,151			109,524			107,438			122,594			131,526

Outstanding Debt (at par) - Deconsolidated	$	5,678,700		$	7,637,000		$	7,855,500		$	9,060,050		$	9,496,800

(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 $3.7 billion as of June 30, 2022, which was comprised of $1.3 billion of liquid investments and $2.4 billion 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


	QTD															YTD						LTM


($ in thousands)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22

Management and Advisory Fees, Net

GAAP	$	1,212,549		$	1,320,795		$	1,459,548		$	1,475,936		$	1,561,187		$	2,390,364		$	3,037,123		$	4,578,353		$	5,817,466

Segment Adjustment (a)		193			(720	)		(3,328	)		(2,568	)		(4,270	)		583			(6,838	)		6,459			(10,886	)

Total Segment	$	1,212,742		$	1,320,075		$	1,456,220		$	1,473,368		$	1,556,917		$	2,390,947		$	3,030,285		$	4,584,812		$	5,806,580

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Incentive Fees		33,207			48,206			136,454			104,489			99,598			69,331			204,087			180,531			388,747

Investment Income - Realized Performance Allocations		808,620			1,522,495			2,787,970			1,766,386			2,453,769			1,342,987			4,220,155			3,179,547			8,530,620

GAAP	$	841,827		$	1,570,701		$	2,924,424		$	1,870,875		$	2,553,367		$	1,412,318		$	4,424,242		$	3,360,078		$	8,919,367

Total Segment

Less: Realized Performance Revenues		(792,938	)		(1,497,477	)		(1,191,374	)		(1,312,810	)		(2,206,774	)		(1,194,261	)		(3,519,584	)		(2,790,844	)		(6,208,435	)

Segment Adjustment (b)		—			89			824			—			—			—			—			—			913

Total Segment	$	48,889		$	73,313		$	1,733,874		$	558,065		$	346,593		$	218,057		$	904,658		$	569,234		$	2,711,845

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation		507,104			536,199			576,032			656,505			686,012			1,049,742			1,342,517			1,970,361			2,454,748

Incentive Fees Compensation		14,431			21,007			49,349			41,019			45,363			27,756			86,382			57,227			156,738

Realized Performance Allocations Compensation		347,423			631,632			1,119,911			717,601			1,035,916			560,450			1,753,517			1,292,688			3,505,060

GAAP	$	868,958		$	1,188,838		$	1,745,292		$	1,415,125		$	1,767,291		$	1,637,948		$	3,182,416		$	3,320,276		$	6,116,546

Total Segment

Less: Realized Performance Compensation		(338,271	)		(619,074	)		(449,301	)		(519,120	)		(926,974	)		(489,195	)		(1,446,094	)		(1,094,453	)		(2,514,469	)

Less: Equity-Based Compensation - Fee Related Compensation		(119,491	)		(127,442	)		(162,656	)		(200,387	)		(191,769	)		(261,165	)		(392,156	)		(414,742	)		(682,254	)

Less: Equity-Based Compensation - Performance Compensation		(1,931	)		(1,812	)		(1,933	)		(1,158	)		(3,875	)		(4,529	)		(5,033	)		(7,906	)		(8,778	)

Segment Adjustment (c)		(33,880	)		(21,029	)		(23,368	)		(23,989	)		(23,260	)		(62,564	)		(47,249	)		(139,278	)		(91,646	)

Total Segment	$	375,385		$	419,481		$	1,108,034		$	670,471		$	621,413		$	820,495		$	1,291,884		$	1,663,897		$	2,819,399

GAAP General, Administrative and Other to Total Segment Other Operating Expenses

GAAP	$	205,057		$	217,995		$	309,673		$	240,674		$	289,288		$	390,179		$	529,962		$	775,344		$	1,057,630

Segment Adjustment (d)		(22,879	)		(23,053	)		(54,540	)		(26,576	)		(27,778	)		(46,577	)		(54,354	)		(90,993	)		(131,947	)

Total Segment	$	182,178		$	194,942		$	255,133		$	214,098		$	261,510		$	343,602		$	475,608		$	684,351		$	925,683

Realized Performance Revenues

GAAP

Incentive Fees		33,207			48,206			136,454			104,489			99,598			69,331			204,087			180,531			388,747

Investment Income - Realized Performance Allocations		808,620			1,522,495			2,787,970			1,766,386			2,453,769			1,342,987			4,220,155			3,179,547			8,530,620

GAAP	$	841,827		$	1,570,701		$	2,924,424		$	1,870,875		$	2,553,367		$	1,412,318		$	4,424,242		$	3,360,078		$	8,919,367

Total Segment

Less: Fee Related Performance Revenues		(48,889	)		(73,313	)		(1,733,874	)		(558,065	)		(346,593	)		(218,057	)		(904,658	)		(569,234	)		(2,711,845	)

Segment Adjustment (b)		—			89			824			—			—			—			—			—			913

Total Segment	$	792,938		$	1,497,477		$	1,191,374		$	1,312,810		$	2,206,774		$	1,194,261		$	3,519,584		$	2,790,844		$	6,208,435

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


	QTD															YTD						LTM


($ in thousands)	2Q’21			3Q’21			4Q’21			1Q’22			2Q’22			2Q’21			2Q’22			2Q’21			2Q’22

Realized Performance Compensation
GAAP
Incentive Fee Compensation	$	14,431		$	21,007		$	49,349		$	41,019		$	45,363		$	27,756		$	86,382		$	57,227		$	156,738
Realized Performance Allocations Compensation		347,423			631,632			1,119,911			717,601			1,035,916			560,450			1,753,517			1,292,688			3,505,060
GAAP	$	361,854		$	652,639		$	1,169,260		$	758,620		$	1,081,279		$	588,206		$	1,839,899		$	1,349,915		$	3,661,798
Total Segment
Less: Fee Related Performance Compensation (e)		(21,652	)		(31,753	)		(718,026	)		(238,342	)		(150,430	)		(94,482	)		(388,772	)		(247,556	)		(1,138,551	)
Less: Equity-Based Compensation - Performance Compensation		(1,931	)		(1,812	)		(1,933	)		(1,158	)		(3,875	)		(4,529	)		(5,033	)		(7,906	)		(8,778	)
Total Segment	$	338,271		$	619,074		$	449,301		$	519,120		$	926,974		$	489,195		$	1,446,094		$	1,094,453		$	2,514,469

Realized Principal Investment Income
GAAP	$	152,060		$	325,414		$	171,310		$	285,104		$	265,161		$	507,098		$	550,265		$	788,929		$	1,046,989
Segment Adjustment (f)		(88,928	)		(174,404	)		(95,842	)		(128,009	)		(221,652	)		(145,810	)		(349,661	)		(307,936	)		(619,907	)
Total Segment	$	63,132		$	151,010		$	75,468		$	157,095		$	43,509		$	361,288		$	200,604		$	480,993		$	427,082

GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest and Dividend Income (Loss)
GAAP
Interest and Dividend Revenue		31,017			35,048			63,166			54,485			62,075			62,429			116,560			128,652			214,774
Interest Expense		(44,322	)		(52,413	)		(56,550	)		(66,747	)		(69,642	)		(89,305	)		(136,389	)		(174,547	)		(245,352	)
GAAP	$	(13,305	)	$	(17,365	)	$	6,616		$	(12,262	)	$	(7,567	)	$	(26,876	)	$	(19,829	)	$	(45,895	)	$	(30,578	)
Segment Adjustment (g)		2,104			1,127			163			145			4,285			2,747			4,430			3,431			5,720
Total Segment	$	(11,201	)	$	(16,238	)	$	6,779		$	(12,117	)	$	(3,282	)	$	(24,129	)	$	(15,399	)	$	(42,464	)	$	(24,858	)

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 (1) removal of amortization of transaction-related intangibles, (2) removal of 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, and (3) 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)	Fee related performance compensation may include equity based compensation based on fee related performance revenues.

(f)

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.

(g)	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.

Blackstone | 31

NOTES

Notes to page 1 - Blackstone’s Second Quarter 2022 GAAP Results

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 4 – Summary of Financials

Effective 1Q’22, the BREIT performance revenues crystallize quarterly instead of annually. If quarterly crystallization of BREIT’s fee related performance revenues had been in effect for all quarters included in the current and prior year LTM periods, FRE would have been $4,526 million, $3,053 million, and $869 million for 2Q’22 LTM, 2Q’21 LTM, and 2Q’21 respectively and Segment DE would have been $8,647 million, $5,230 million, and $1,387 million for 2Q’22 LTM, 2Q’21 LTM, and 2Q’21 respectively and there would have been no impact to Income (Loss) before Taxes for 2Q’22 LTM, 2Q’21 LTM, and 2Q’21. This change only affects the timing of realization and not the total amount of net performance revenues recognized; the impact decreases unrealized performance allocations and unrealized performance allocations compensation for the periods, offset by increases to realized fee related performance revenues and realized fee related performance compensation.

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

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

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

Blackstone | 32

NOTES – (CONT’D)

Notes to page 5 – Investment Performance and Net Accrued Performance Revenues (Cont’d)

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 asset-based finance 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.

Effective 2Q’22, for EUR-denominated funds included in the overall Private Credit return, cash flows are translated using a historical rate instead of the daily spot rate to more closely reflect the actual performance of foreign-denominated funds in composite returns. Under the prior methodology, 2Q’22 gross and net returns and 2Q’22 LTM gross and net returns would have been (0.6)%, (0.9)%, 9.3%, and 5.3%, respectively.

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 $777 million, $889 million, $204 million, and $407 million, respectively, as of June 30, 2022. 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 $163 million for 2Q’22 and $332 million for 2Q’22 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.

Blackstone | 34

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 compensation program that commenced in 2Q’21. The expectation is that for the full year 2022, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year. In 2Q’22 the increase to Realized Performance Compensation was greater than the decrease to Fee Related Compensation, which negatively impacted Distributable Earnings on both a quarter-to-date and year-to-date basis. These changes to Performance Compensation and Fee Related Compensation are not expected to impact Distributable Earnings for the full year.

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.

Blackstone | 35

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,” “opportunity,” “leads,” “forecast” 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 those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021, 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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