EX-99.1

EX-99.1 2 d389397dex991.htm EX-99.1 EX-99.1

EXHIBIT: 99.1

LOGO

Blackstone Reports Third Quarter 2022 Results

New York, October 20, 2022: Blackstone (NYSE:BX) today reported its third quarter 2022 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “We delivered excellent results again in the

third quarter. We protected client capital during a period of extreme market turbulence as we have through many

challenging cycles in our history. Our clients entrusted us with $45 billion of inflows in the third quarter and

$183 billion year to date, and we grew total assets under management 30% year over year to a record $951 billion.

The Blackstone brand has never been stronger.”

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

www.blackstone.com.

Dividend

Blackstone has declared a quarterly dividend of $0.90 per share to record holders of common stock at the close of

business on October 31, 2022. This dividend will be paid on November 7, 2022.

Quarterly Investor Call Details

Blackstone will host its third quarter 2022 investor conference via public webcast on October 20, 2022 at

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

https://event.webcasts.com/starthere.jsp?ei=1573112&tp_key=f88b58621b. 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 $951 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



		3

LOGO

Blackstone’s Third

Quarter 2022 Earnings

OCTOBER 20, 2022

BLACKSTONE’S THIRD QUARTER 2022 GAAP RESULTS

GAAP Net Income was $4 million for the quarter and $2.2 billion year-to-date (“YTD”). GAAP Net Income Attributable to Blackstone Inc. was $2 million for the quarter and $1.2 billion YTD.



($ in thousands, except per share data) (unaudited)	3Q’21		3Q’22		3Q’21 YTD		3Q’22 YTD		3Q’21 LTM		3Q’22 LTM
Revenues
Management and Advisory Fees, Net	$	1,320,795	$	1,617,754	$	3,711,159	$	4,654,877	$	4,845,297	$	6,114,425
Incentive Fees		48,206		110,776		117,537		314,863		215,239		451,317
Investment Income (Loss)
Performance Allocations
Realized		1,522,495		725,888		2,865,482		4,946,043		4,330,636		7,734,013
Unrealized		2,724,366		(771,637)		7,886,033		(2,946,255)		8,483,318		(2,157,042)
Principal Investments
Realized		325,414		193,228		832,512		743,493		1,053,326		914,803
Unrealized		183,754		(1,069,697)		1,151,904		(1,496,226)		1,369,592		(1,191,929)
Total Investment Income (Loss)		4,756,029		(922,218)		12,735,931		1,247,055		15,236,872		5,299,845
Interest and Dividend Revenue		35,048		52,420		97,477		168,980		137,203		232,146
Other		64,187		199,382		152,387		427,839		8,804		478,538
Total Revenues	$	6,224,265	$	1,058,114	$	16,814,491	$	6,813,614	$	20,443,415	$	12,576,271
Expenses
Compensation and Benefits
Compensation		536,199		600,273		1,585,941		1,942,790		2,045,577		2,518,822
Incentive Fee Compensation		21,007		50,355		48,763		136,737		70,849		186,086
Performance Allocations Compensation
Realized		631,632		313,930		1,192,082		2,067,447		1,782,171		3,187,358
Unrealized		1,193,853		(359,590)		3,394,041		(1,273,849)		3,672,616		(889,842)
Total Compensation and Benefits		2,382,691		604,968		6,220,827		2,873,125		7,571,213		5,002,424
General, Administrative and Other		217,995		270,369		608,174		800,331		822,298		1,110,004
Interest Expense		52,413		80,507		141,718		216,896		187,420		273,446
Fund Expenses		1,260		5,517		7,417		12,144		9,319		15,103
Total Expenses	$	2,654,359	$	961,361	$	6,978,136	$	3,902,496	$	8,590,250	$	6,400,977
Other Income (Loss)
Change in Tax Receivable Agreement Liability		(37,321)		—		(34,803)		748		(61,974)		32,792
Net Gains (Losses) from Fund Investment Activities		132,312		1,178		379,781		(52,272)		470,648		29,571
Income Before Provision for Taxes	$	3,664,897	$	97,931	$	10,181,333	$	2,859,594	$	12,261,839	$	6,237,657
Provision for Taxes		458,904		94,231		746,707		614,026		1,013,049		1,051,720
Net Income	$	3,205,993	$	3,700	$	9,434,626	$	2,245,568	$	11,248,790	$	5,185,937
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		1,550		25,773		2,816		56,700		945		59,624
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		486,907		(62,093)		1,305,273		(62,425)		1,613,328		257,608
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings		1,315,641		37,724		3,667,618		1,061,516		4,426,728		2,280,450
Net Income Attributable to Blackstone Inc. (“BX”)	$	1,401,895	$	2,296	$	4,458,919	$	1,189,777	$	5,207,789	$	2,588,255
Net Income Per Share of Common Stock, Basic	$	1.94	$	0.00	$	6.21	$	1.61	$	7.30	$	3.51
Net Income Per Share of Common Stock, Diluted	$	1.94	$	0.00	$	6.21	$	1.61	$	7.29	$	3.51
Income Before Provision for Taxes Margin		58.9%		9.3%		60.6%		42.0%		60.0%		49.6%

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

Blackstone | 1

BLACKSTONE’S THIRD QUARTER 2022 HIGHLIGHTS


Financial Measures		§ Fee Related Earnings (“FRE”) of $1.2 billion ($0.98/share) in the quarter, up 51% year-over-year – FRE was $5.2 billion over the last twelve months (“LTM”) ($4.29/share) § Distributable Earnings (“DE”) of $1.4 billion ($1.06/share) in the quarter – DE was $7.6 billion over the LTM ($5.81/share) § Net Accrued Performance Revenues of $7.1 billion ($5.85/share)


Capital Metrics		§ Total Assets Under Management (“AUM”) of $950.9 billion, up 30% year-over-year – Fee-Earning AUM of $705.9 billion, up 34% year-over-year – Perpetual Capital AUM of $359.6 billion, up 83% year-over-year § Inflows of $44.8 billion in the quarter and $337.8 billion over the LTM § Realizations of $15.7 billion in the quarter and $89.2 billion over the LTM § Deployment of $31.3 billion in the quarter and $167.6 billion over the LTM

Capital Returned to Shareholders		§ Dividend of $0.90 per common share payable on November 7, 2022 – Dividends of $4.94 per common share over the LTM § Repurchased 2.0 million common shares in the quarter and 8.1 million common shares over the LTM § $1.4 billion to be distributed to shareholders with respect to the third quarter through dividends and share repurchases, and $7.5 billion over the LTM

Blackstone | 2

BLACKSTONE’S THIRD QUARTER 2022 SEGMENT EARNINGS


							% Change							% Change
($ in thousands, except per share data)	3Q’21			3Q’22			vs. 3Q’21	3Q’21 YTD			3Q’22 YTD			vs. 3Q’21 YTD
Management and Advisory Fees, Net	$	1,320,075		$	1,611,570		22%	$	3,711,022		$	4,641,855		25%
Fee Related Performance Revenues		73,313			372,131		408%		291,370			1,276,789		338%
Fee Related Compensation		(419,481	)		(558,268	)	33%		(1,239,976	)		(1,850,152	)	49%
Other Operating Expenses		(194,942	)		(246,134	)	26%		(538,544	)		(721,742	)	34%
Fee Related Earnings	$	778,965		$	1,179,299		51%	$	2,223,872		$	3,346,750		50%


Realized Performance Revenues		1,497,477			469,009		(69)%		2,691,738			3,988,593		48%
Realized Performance Compensation		(619,074	)		(206,224	)	(67)%		(1,108,269	)		(1,652,318	)	49%
Realized Principal Investment Income		151,010			139,765		(7)%		512,298			340,369		(34)%
Net Realizations		1,029,413			402,550		(61)%		2,095,767			2,676,644		28%
Total Segment Distributable Earnings	$	1,808,378		$	1,581,849		(13)%	$	4,319,639		$	6,023,394		39%


Net Interest and Dividend Income (Loss)		(16,238	)		(22,850	)	41%		(40,367	)		(38,249	)	(5)%
Taxes and Related Payables		(156,867	)		(184,130	)	17%		(381,762	)		(686,571	)	80%
Distributable Earnings	$	1,635,273		$	1,374,869		(16)%	$	3,897,510		$	5,298,574		36%


Additional Metrics:
FRE per Share	$	0.65		$	0.98		51%	$	1.85		$	2.77		50%
DE per Common Share	$	1.28		$	1.06		(17)%	$	3.06		$	4.10		34%
Total Segment Revenues	$	3,041,875		$	2,592,475		(15)%	$	7,206,428		$	10,247,606		42%
Total Assets Under Management	$	730,662,712		$	950,946,514		30%	$	730,662,712		$	950,946,514		30%
Fee-Earning Assets Under Management	$	528,412,550		$	705,865,351		34%	$	528,412,550		$	705,865,351		34%

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

Blackstone | 3

SUMMARY OF FINANCIALS

LTM Fee Related Earnings of $4.29 per share, an increase of 74% year-over-year.

LTM Total Segment Distributable Earnings were $8.7 billion, an increase of 45% year-over-year.

Fee Related Earnings per Share

LOGO

Segment Distributable Earnings

($ in millions)

LOGO

FRE Margin is calculated by dividing Fee Related Earnings by Fee Related Revenues (defined as the sum of Total Segment Management and Advisory Fees, Net and Fee Related Performance Revenues). 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 34% year-over-year and LTM Segment DE would have been up 26% year-over-year. See notes on page 32 for additional details.

Blackstone | 4

INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES

Realized distributions across strategies led to lower Net Accrued Performance Revenues quarter-over-quarter of $7.1 billion ($5.85/share).

Investment Performance

(appreciation / gross returns)


	3Q’22	3Q’22 LTM
Real Estate
Opportunistic	(0.6)%	20.1%
Core+	2.3%	19.3%

Private Equity
Corporate Private Equity	(0.3)%	0.4%
Tactical Opportunities	(1.7)%	8.5%
Secondaries	(3.5)%	18.6%

Hedge Fund Solutions
BPS Composite	1.2%	3.8%

Credit & Insurance
Private Credit	3.0%	9.3%
Liquid Credit	0.7%	(4.6)%

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. BPS Composite net returns were 1.0% and 3.0% for 3Q’22 and 3Q’22 LTM, respectively. Private Credit net returns were 2.1% and 5.4% for 3Q’22 and 3Q’22 LTM, respectively. Liquid Credit net returns were 0.5% and (5.3)% for 3Q’22 and 3Q’22 LTM, respectively. See notes on pages 32-33 for additional details on investment performance.

Blackstone | 5

CAPITAL METRICS – ADDITIONAL DETAIL

Inflows were $44.8 billion in the quarter, bringing LTM inflows to $337.8 billion.

Realizations were $15.7 billion in the quarter and $89.2 billion over the LTM.

Deployed $31.3 billion in the quarter and $167.6 billion over the LTM.


	Inflows				Realizations				Capital Deployed

($ in millions)	3Q’22		3Q’22 LTM		3Q’22		3Q’22 LTM		3Q’22		3Q’22 LTM
Real Estate	$	10,106	$	117,779	$	4,077	$	38,644	$	11,171	$	64,816
Opportunistic		2,483		34,797		1,006		23,588		2,710		11,367
Core+		6,570		50,552		2,383		11,390		8,050		50,463
BREDS		1,053		32,429		688		3,666		410		2,985
Private Equity		14,491		75,300		5,306		27,685		7,567		45,298
Corporate Private Equity		6,221		24,070		1,615		11,133		2,774		18,442
Tactical Opportunities		2,391		10,537		1,575		6,516		339		5,061
Secondaries		4,945		27,505		1,772		8,782		1,657		10,620
Infrastructure		934		13,188		346		1,255		2,798		11,175
Hedge Fund Solutions		1,155		11,494		449		2,072		244		2,807

Credit & Insurance		19,093		133,251		5,913		20,845		12,314		54,705

Total Blackstone	$	44,844	$	337,824	$	15,746	$	89,247	$	31,295	$	167,625

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

Blackstone | 6

ASSETS UNDER MANAGEMENT

Total AUM increased to $950.9 billion, up 30% year-over-year, with $44.8 billion of inflows in the quarter and $337.8 billion over the LTM.

Fee-Earning AUM of $705.9 billion was up 34% year-over-year, with $51.5 billion of inflows in the quarter and $276.9 billion over the LTM.

Perpetual Capital AUM reached $359.6 billion, up 83% year-over-year.

–

Fee-Earning Perpetual Capital AUM reached $308.4 billion, representing 44% 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 $494.4 billion at quarter end, up 26% year-over-year.

Undrawn capital (“Total Dry Powder”) available for investment reached $182.0 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 39% to $319.3 billion with inflows of $10.1 billion in the quarter and $117.8 billion over the LTM.

–

Inflows during the quarter included $4.2 billion of capital raised in BREIT, $2.1 billion in the tenth global opportunistic fund, which commenced its investment period in August, $1.1 billion in BPP, and $1.1 billion across BREDS.

–

October 1 subscriptions of $910 million in BREIT not yet included in Total AUM.

Realizations: $4.1 billion in the quarter and $38.6 billion over the LTM.

–

Completed the third secondary offering of Embassy Office Park REIT units during the quarter.

Capital Deployed: $11.2 billion in the quarter and $64.8 billion over the LTM, including the privatizations of American Campus Communities and PS Business Parks.

Appreciation: Opportunistic funds declined (0.6)% in the quarter and appreciated 20.1% over the LTM; Core+ funds appreciated 2.3% in the quarter and 19.3% over the LTM.


							% Change							% Change
($ in thousands)	3Q’21			3Q’22			vs. 3Q’21	3Q’21 YTD			3Q’22 YTD			vs. 3Q’21 YTD
Management Fees, Net	$	538,738		$	663,106		23%	$	1,481,571		$	1,940,853		31%
Fee Related Performance Revenues		35,625			260,003		630%		224,793			1,017,027		352%
Fee Related Compensation		(137,313	)		(239,572	)	74%		(447,762	)		(858,307	)	92%
Other Operating Expenses		(61,398	)		(74,701	)	22%		(160,520	)		(229,033	)	43%
Fee Related Earnings	$	375,652		$	608,836		62%	$	1,098,082		$	1,870,540		70%

Realized Performance Revenues		495,727			142,794		(71)%		935,418			2,943,430		215%
Realized Performance Compensation		(199,100	)		(33,464	)	(83)%		(376,790	)		(1,154,897	)	207%
Realized Principal Investment Income		42,677			45,297		6%		171,626			128,388		(25)%
Net Realizations		339,304			154,627		(54)%		730,254			1,916,921		163%
Segment Distributable Earnings	$	714,956		$	763,463		7%	$	1,828,336		$	3,787,461		107%

Segment Revenues	$	1,112,767		$	1,111,200		(0)%	$	2,813,408		$	6,029,698		114%
Total AUM	$	230,183,235		$	319,346,406		39%	$	230,183,235		$	319,346,406		39%
Fee-Earning AUM	$	180,168,093		$	273,447,850		52%	$	180,168,093		$	273,447,850		52%

Blackstone | 10

PRIVATE EQUITY

Total AUM: Increased 22% to $283.3 billion with inflows of $14.5 billion in the quarter and $75.3 billion over the LTM.

–

Inflows in the quarter included $5.6 billion for the ninth Corporate Private Equity fund and $2.3 billion for the ninth Secondaries fund.

Realizations: $5.3 billion in the quarter and $27.7 billion over the LTM; realizations in the quarter included proceeds from Aqua Finance, Sona Comstar, and FireEye.

Capital Deployed: $7.6 billion in the quarter and $45.3 billion over the LTM, including Invenergy, Advarra, Inc., and Xpansiv during the quarter.

Appreciation: Corporate Private Equity declined (0.3)% in the quarter and appreciated 0.4% over the LTM.

–

Tactical Opportunities declined (1.7)% in the quarter and appreciated 8.5% over the LTM; Secondaries declined (3.5)% in the quarter and appreciated 18.6% over the LTM.


							% Change							% Change
($ in thousands)	3Q’21			3Q’22			vs. 3Q’21	3Q’21 YTD			3Q’22 YTD			vs. 3Q’21 YTD
Management and Advisory Fees, Net	$	420,334		$	487,153		16%	$	1,220,059		$	1,331,994		9%
Fee Related Performance Revenues		—			—		n/a		—			(648	)	n/m
Fee Related Compensation		(139,211	)		(142,381	)	2%		(416,575	)		(446,053	)	7%
Other Operating Expenses		(56,792	)		(76,138	)	34%		(168,888	)		(227,115	)	34%
Fee Related Earnings	$	224,331		$	268,634		20%	$	634,596		$	658,178		4%

Realized Performance Revenues		988,331			309,326		(69)%		1,627,186			882,448		(46)%
Realized Performance Compensation		(417,386	)		(164,531	)	(61)%		(687,970	)		(428,614	)	(38)%
Realized Principal Investment Income		77,570			38,015		(51)%		220,769			112,357		(49)%
Net Realizations		648,515			182,810		(72)%		1,159,985			566,191		(51)%
Segment Distributable Earnings	$	872,846		$	451,444		(48)%	$	1,794,581		$	1,224,369		(32)%

Segment Revenues	$	1,486,235		$	834,494		(44)%	$	3,068,014		$	2,326,151		(24)%
Total AUM	$	231,520,802		$	283,267,698		22%	$	231,520,802		$	283,267,698		22%
Fee-Earning AUM	$	139,080,258		$	167,273,324		20%	$	139,080,258		$	167,273,324		20%

Blackstone | 11

HEDGE FUND SOLUTIONS

Total AUM: $79.3 billion with inflows of $1.2 billion in the quarter and $11.5 billion over the LTM.

–

October 1 subscriptions of $220 million are not yet included in Total AUM.

Returns: BPS Composite gross return of 1.2% in the quarter (1.0% net), outperforming the HFRX Global Hedge Fund Index, which was up 0.5%.

–

Gross returns of 3.8% over the LTM (3.0% net), with significantly less volatility than the broader markets, compared to (4.5)% return over the LTM for the HFRX Global Hedge Fund Index.


							% Change							% Change
($ in thousands)	3Q’21			3Q’22			vs. 3Q’21	3Q’21 YTD			3Q’22 YTD			vs. 3Q’21 YTD
Management Fees, Net	$	157,164		$	139,342		(11)%	$	468,584		$	434,275		(7)%
Fee Related Compensation		(35,092	)		(40,895	)	17%		(112,580	)		(145,993	)	30%
Other Operating Expenses		(25,476	)		(26,599	)	4%		(66,521	)		(75,849	)	14%
Fee Related Earnings	$	96,596		$	71,848		(26)%	$	289,483		$	212,433		(27)%

Realized Performance Revenues		7,271			4,430		(39)%		55,900			40,540		(27)%
Realized Performance Compensation		(1,443	)		(3,237	)	124%		(13,977	)		(14,320	)	2%
Realized Principal Investment Income		14,943			9,460		(37)%		52,618			22,831		(57)%
Net Realizations		20,771			10,653		(49)%		94,541			49,051		(48)%
Segment Distributable Earnings	$	117,367		$	82,501		(30)%	$	384,024		$	261,484		(32)%

Segment Revenues	$	179,378		$	153,232		(15)%	$	577,102		$	497,646		(14)%
Total AUM	$	80,602,257		$	79,273,632		(2)%	$	80,602,257		$	79,273,632		(2)%
Fee-Earning AUM	$	73,266,849		$	71,438,236		(2)%	$	73,266,849		$	71,438,236		(2)%

Blackstone | 12

CREDIT & INSURANCE

Total AUM: Increased 43% to $269.1 billion with inflows of $19.1 billion in the quarter and $133.3 billion over the LTM.

–

Inflows in the quarter included $3.2 billion for U.S. Direct Lending SMAs and $2.3 billion equity raised for BCRED.

–

Held first close for the private credit green energy strategy with $3.6 billion raised in the quarter, and $4.0 billion total, including funds raised subsequent to quarter end.

–

October 1 subscriptions of $651 million for BCRED not yet included in Total AUM.

–

Closed 6 new CLOs (5 U.S. and 1 European) for $2.6 billion.

–

On October 12, 2022, Blackstone announced a strategic partnership with Resolution Life, with Blackstone to be Resolution Life’s investment manager for certain key areas, managing up to $25.0 billion in the first year, growing to an expected over $60.0 billion over the next six years.

Realizations: $5.9 billion in the quarter and $20.8 billion over the LTM.

Capital Deployed: $12.3 billion in the quarter and $54.7 billion over the LTM.

Returns: Private Credit gross return of 3.0% (2.1% net); Liquid Credit gross return of 0.7% (0.5% net) for the quarter.


							% Change							% Change
($ in thousands)	3Q’21			3Q’22			vs. 3Q’21	3Q’21 YTD			3Q’22 YTD			vs. 3Q’21 YTD
Management Fees, Net	$	203,839		$	321,969		58%	$	540,808		$	934,733		73%
Fee Related Performance Revenues		37,688			112,128		198%		66,577			260,410		291%
Fee Related Compensation		(107,865	)		(135,420	)	26%		(263,059	)		(399,799	)	52%
Other Operating Expenses		(51,276	)		(68,696	)	34%		(142,615	)		(189,745	)	33%
Fee Related Earnings	$	82,386		$	229,981		179%	$	201,711		$	605,599		200%

Realized Performance Revenues		6,148			12,459		103%		73,234			122,175		67%
Realized Performance Compensation		(1,145	)		(4,992	)	336%		(29,532	)		(54,487	)	85%
Realized Principal Investment Income		15,820			46,993		197%		67,285			76,793		14%
Net Realizations		20,823			54,460		162%		110,987			144,481		30%
Segment Distributable Earnings	$	103,209		$	284,441		176%	$	312,698		$	750,080		140%

Segment Revenues	$	263,495		$	493,549		87%	$	747,904		$	1,394,111		86%
Total AUM	$	188,356,418		$	269,058,778		43%	$	188,356,418		$	269,058,778		43%
Fee-Earning AUM	$	135,897,350		$	193,705,941		43%	$	135,897,350		$	193,705,941		43%

Blackstone | 13

Supplemental Details

Blackstone | 14

TOTAL SEGMENTS


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

Base Management Fees	$	1,207,866		$	1,354,068		$	1,439,149		$	1,496,876		$	1,528,561		$	3,465,207		$	4,464,586

Transaction, Advisory and Other Fees, Net		114,784			120,389			64,009			85,092			89,865			271,549			238,966

Management Fee Offsets		(2,575	)		(18,237	)		(29,790	)		(25,051	)		(6,856	)		(25,734	)		(61,697	)

Total Management and Advisory Fees, Net		1,320,075			1,456,220			1,473,368			1,556,917			1,611,570			3,711,022			4,641,855

Fee Related Performance Revenues		73,313			1,733,874			558,065			346,593			372,131			291,370			1,276,789

Fee Related Compensation		(419,481	)		(1,108,034	)		(670,471	)		(621,413	)		(558,268	)		(1,239,976	)		(1,850,152	)

Other Operating Expenses		(194,942	)		(255,133	)		(214,098	)		(261,510	)		(246,134	)		(538,544	)		(721,742	)

Fee Related Earnings	$	778,965		$	1,826,927		$	1,146,864		$	1,020,587		$	1,179,299		$	2,223,872		$	3,346,750



Realized Performance Revenues		1,497,477			1,191,374			1,312,810			2,206,774			469,009			2,691,738			3,988,593

Realized Performance Compensation		(619,074	)		(449,301	)		(519,120	)		(926,974	)		(206,224	)		(1,108,269	)		(1,652,318	)

Realized Principal Investment Income		151,010			75,468			157,095			43,509			139,765			512,298			340,369

Total Net Realizations		1,029,413			817,541			950,785			1,323,309			402,550			2,095,767			2,676,644

Total Segment Distributable Earnings	$	1,808,378		$	2,644,468		$	2,097,649		$	2,343,896		$	1,581,849		$	4,319,639		$	6,023,394



Net Interest and Dividend Income (Loss)		(16,238	)		6,779			(12,117	)		(3,282	)		(22,850	)		(40,367	)		(38,249	)

Taxes and Related Payables		(156,867	)		(377,920	)		(147,652	)		(354,789	)		(184,130	)		(381,762	)		(686,571	)

Distributable Earnings	$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	1,374,869		$	3,897,510		$	5,298,574



Additional Metrics:

Total Segment Revenues	$	3,041,875		$	4,456,936		$	3,501,338		$	4,153,793		$	2,592,475		$	7,206,428		$	10,247,606

Total Assets Under Management	$	730,662,712		$	880,901,720		$	915,491,742		$	940,805,741		$	950,946,514		$	730,662,712		$	950,946,514

Fee-Earning Assets Under Management	$	528,412,550		$	649,969,058		$	677,943,302		$	683,825,961		$	705,865,351		$	528,412,550		$	705,865,351

Blackstone | 15

ASSETS UNDER MANAGEMENT – ROLLFORWARD

Total AUM Rollforward

($ in millions)



	Three Months Ended September 30, 2022										Twelve Months Ended September 30, 2022


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	320,038	$	275,886	$	80,051	$	264,829	$	940,806	$	230,183	$	231,521	$	80,602	$	188,356	$	730,663
Inflows		10,106		14,491		1,155		19,093		44,844		117,779		75,300		11,494		133,251		337,824
Outflows		(3,832)		(892)		(1,495)		(6,420)		(12,638)		(11,610)		(3,560)		(10,806)		(18,896)		(44,872)
Net Flows		6,274		13,599		(340)		12,673		32,206		106,169		71,740		687		114,356		292,952
Realizations		(4,077)		(5,306)		(449)		(5,913)		(15,746)		(38,644)		(27,685)		(2,072)		(20,845)		(89,247)
Market Activity		(2,888)		(911)		11		(2,530)		(6,319)		21,639		7,692		56		(12,808)		16,579
Ending Balance	$	319,346	$	283,268	$	79,274	$	269,059	$	950,947	$	319,346	$	283,268	$	79,274	$	269,059	$	950,947
% Change		(0)%		3%		(1)%		2%		1%		39%		22%		(2)%		43%		30%

Fee-Earning AUM Rollforward

($ in millions)



	Three Months Ended September 30, 2022										Twelve Months Ended September 30, 2022


	Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total		Real Estate		Private Equity		Hedge Fund Solutions		Credit & Insurance		Total
Beginning Balance	$	252,126	$	163,522	$	72,630	$	195,549	$	683,826	$	180,168	$	139,080	$	73,267	$	135,897	$	528,413
Inflows		35,566		5,721		957		9,237		51,480		124,160		39,567		10,581		102,631		276,939
Outflows		(8,845)		(444)		(1,615)		(6,325)		(17,229)		(17,506)		(3,166)		(10,201)		(18,532)		(49,405)
Net Flows		26,720		5,277		(658)		2,912		34,251		106,654		36,401		380		84,099		227,534
Realizations		(4,239)		(1,933)		(431)		(1,457)		(8,060)		(23,500)		(11,749)		(1,928)		(10,435)		(47,612)
Market Activity		(1,160)		408		(102)		(3,297)		(4,151)		10,126		3,541		(281)		(15,855)		(2,470)
Ending Balance	$	273,448	$	167,273	$	71,438	$	193,706	$	705,865	$	273,448	$	167,273	$	71,438	$	193,706	$	705,865
% Change		8%		2%		(2)%		(1)%		3%		52%		20%		(2)%		43%		34%

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 September 30, 2022, Blackstone had $8.7 billion in total cash, cash equivalents, corporate treasury, and other investments and $18.1 billion of cash and net investments, or $14.99 per share.

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



($ in millions)	3Q’22

Cash and Cash Equivalents	$	3,480

Corporate Treasury and Other Investments		5,199

GP/Fund Investments		2,345

Net Accrued Performance Revenues		7,060

Cash and Net Investments	$	18,083

Outstanding Debt (at par)		9,360

Cash and Net Investments

(per share)

LOGO

A+ / A+

rated by S&P and Fitch

$4.1B

credit revolver with

June 2027 maturity

$8.7B

total cash, corporate

treasury and other

Balance Sheet Highlights exclude the consolidated Blackstone Funds. Other Investments was $3.1 billion as of September 30, 2022, which was comprised of $2.8 billion of liquid investments and $318 million of illiquid investments. See notes on pages 29 and 33 for additional details on non-GAAP balance sheet measures.

Blackstone | 17

NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL


($ in millions, except per share data)	3Q’21		2Q’22		3Q’22		3Q’22
($ in millions, except per share data)	3Q’21		2Q’22		3Q’22		Per Share
Real Estate
BREP IV	$	22	$	7	$	7	$	0.01
BREP V		44		3		3		0.00
BREP VI		34		32		24		0.02
BREP VII		476		164		145		0.12
BREP VIII		713		841		830		0.69
BREP IX		551		1,015		1,002		0.83
BREP Europe IV		90		83		68		0.06
BREP Europe V		476		120		96		0.08
BREP Europe VI		176		80		74		0.06
BREP Asia I		112		114		105		0.09
BREP Asia II		116		153		119		0.10
BPP		362		755		735		0.61
BREIT		513		—		—		—
BREDS		40		15		14		0.01
BTAS		23		111		37		0.03
Real Estate	$	3,747	$	3,491	$	3,258	$	2.70
Private Equity
BCP IV		8		8		7	$	0.01
BCP V		57		3		8		0.01
BCP VI		561		407		463		0.38
BCP VII		1,278		975		870		0.72
BCP VIII		216		235		227		0.19
BCP Asia I		407		195		137		0.11
BEP I		33		27		33		0.03
BEP III		64		76		86		0.07
BCEP		198		224		219		0.18
Tactical Opportunities		296		311		233		0.19
Growth		45		—		—		—
Secondaries		430		629		548		0.45
Infrastructure		79		67		126		0.10
Life Sciences		33		24		26		0.02
BTAS/Other		195		228		202		0.17
Private Equity	$	3,899	$	3,408	$	3,186	$	2.64

Hedge Fund Solutions	$	362	$	305	$	320	$	0.26

Credit & Insurance	$	302	$	271	$	297	$	0.25

Net Accrued Performance Revenues	$	8,311	$	7,476	$	7,060	$	5.85

3Q’22 QoQ Rollforward

($ in millions)


			Net			Net
			Performance			Realized
	2Q’22		Revenues			Distributions			3Q’22

Real Estate	$	3,491	$	31		$	(264	)	$	3,258

Private Equity		3,408		(78	)		(145	)		3,186

HFS		305		16			(1	)		320

Credit & Insurance		271		97			(71	)		297

Total	$	7,476	$	66		$	(482	)	$	7,060

QoQ Change										(6)%

3Q’22 LTM Rollforward

($ in millions)


			Net		Net
			Performance		Realized
	3Q’21		Revenues		Distributions			3Q’22

Real Estate	$	3,747	$	2,883	$	(3,372	)	$	3,258

Private Equity		3,899		238		(952	)		3,186

HFS		362		166		(208	)		320

Credit & Insurance		302		311		(317	)		297

Total	$	8,311	$	3,598	$	(4,849	)	$	7,060

YoY Change									(15)%

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

Blackstone | 18

INVESTMENT RECORDS AS OF SEPTEMBER 30, 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		550,439		253,813		1.7x		27,511,017	2.5x		27,764,830		2.5x	13%	13%
BREP VII (Aug 2011 / Apr 2015)		13,501,376		1,513,376		3,386,357		0.8x		27,989,427	2.4x		31,375,784		2.0x	22%	15%
BREP VIII (Apr 2015 / Jun 2019)		16,592,910		2,298,180		14,936,814		1.6x		21,372,021	2.5x		36,308,835		2.1x	28%	18%
BREP IX (Jun 2019 / Aug 2022)		21,601,305		5,428,469		24,944,045		1.6x		7,643,491	2.2x		32,587,536		1.7x	67%	34%
*BREP X (Aug 2022 / Feb 2028)		26,542,960		26,320,364		209,582		0.9x		—	n/a		209,582		0.9x	n/a	n/m
Total Global BREP	$	100,279,576	$	36,110,828	$	43,761,128		1.5x	$	110,141,664	2.4x	$	153,902,792		2.0x	18%	16%
BREP Int’l (Jan 2001 / Sep 2005)	€	824,172	€	—	€	—		n/a	€	1,373,170	2.1x	€	1,373,170		2.1x	23%	23%
BREP Int’l II (Sep 2005 / Jun 2008) (e)		1,629,748		—		—		n/a		2,583,032	1.8x		2,583,032		1.8x	8%	8%
BREP Europe III (Jun 2008 / Sep 2013)		3,205,318		437,071		251,497		0.5x		5,811,684	2.4x		6,063,181		2.0x	19%	14%
BREP Europe IV (Sep 2013 / Dec 2016)		6,673,049		1,473,527		1,728,575		1.2x		9,747,521	2.0x		11,476,096		1.8x	20%	13%
BREP Europe V (Dec 2016 / Oct 2019)		7,965,078		1,430,203		5,708,266		1.1x		6,537,218	4.0x		12,245,484		1.8x	43%	13%
*BREP Europe VI (Oct 2019 / Apr 2025)		9,925,135		6,426,505		4,626,528		1.2x		3,273,739	2.6x		7,900,267		1.6x	75%	24%
Total BREP Europe	€	30,222,500	€	9,767,306	€	12,314,866		1.1x	€	29,326,364	2.4x	€	41,641,230		1.8x	17%	13%
BREP Asia I (Jun 2013 / Dec 2017)	$	4,263,411	$	897,775	$	2,212,848		1.4x	$	6,316,167	2.1x	$	8,529,015		1.8x	20%	13%
BREP Asia II (Dec 2017 / Mar 2022)		7,369,945		1,627,900		7,256,313		1.3x		818,696	1.8x		8,075,009		1.3x	43%	8%
*BREP Asia III (Mar 2022 / Sep 2027)		8,068,957		7,285,192		694,806		0.9x		—	n/a		694,806		0.9x	n/a	n/m
BREP Co-Investment (f)		7,208,136		37,995		951,100		2.3x		15,043,270	2.2x		15,994,370		2.2x	16%	16%
Total BREP	$	163,184,517	$	55,533,602	$	69,004,146		1.4x	$	168,186,629	2.4x	$	237,190,775		1.9x	17%	16%
*BREDS High-Yield (Various) (g)		19,981,503		5,176,958		5,398,871		1.0x		16,644,956	1.3x		22,043,826		1.2x	10%	9%

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		14,208		n/a		2,953,649	1.4x		2,967,857		1.4x	6%	6%
BCP IV (Nov 2002 / Dec 2005)		6,773,182		157,644		136,355		1.2x		21,479,599	2.9x		21,615,954		2.8x	36%	36%
BCP V (Dec 2005 / Jan 2011)		21,009,112		1,035,259		115,599		7.8x		38,427,169	1.9x		38,542,768		1.9x	8%	8%
BCP VI (Jan 2011 / May 2016)		15,195,537		1,158,107		7,117,830		1.9x		24,467,594	2.2x		31,585,424		2.1x	16%	12%
BCP VII (May 2016 / Feb 2020)		18,860,928		1,612,486		21,198,399		1.6x		10,590,931	2.4x		31,789,330		1.8x	34%	14%
*BCP VIII (Feb 2020 / Feb 2026)		25,432,016		14,722,928		13,633,546		1.3x		573,328	3.0x		14,206,874		1.3x	n/m	18%
BCP IX (TBD)		14,411,850		14,411,850		—		n/a		—	n/a		—		n/a	n/a	n/a
Energy I (Aug 2011 / Feb 2015)		2,441,558		142,138		661,369		1.7x		3,999,633	2.0x		4,661,002		1.9x	17%	12%
Energy II (Feb 2015 / Feb 2020)		4,938,719		847,680		4,865,944		1.7x		2,104,834	1.2x		6,970,778		1.5x	1%	8%
*Energy III (Feb 2020 / Feb 2026)		4,338,099		2,114,159		2,918,920		1.5x		533,929	2.8x		3,452,849		1.6x	66%	38%
BCP Asia I (Dec 2017 / Sep 2021)		2,452,208		663,800		2,882,092		1.8x		1,404,049	4.8x		4,286,141		2.2x	97%	34%
*BCP Asia II (Sep 2021 / Sep 2027)		6,554,832		6,462,967		(3,277	)	n/a		—	n/a		(3,277	)	n/a	n/a	n/a
Core Private Equity I (Jan 2017 / Mar 2021) (h)		4,764,469		1,093,991		7,927,971		2.1x		2,260,394	4.1x		10,188,365		2.3x	55%	24%
*Core Private Equity II (Mar 2021 / Mar 2026) (h)		8,189,963		5,720,136		2,516,238		1.0x		9,592	n/a		2,525,830		1.0x	n/a	2%
Total Corporate Private Equity	$	143,687,406	$	50,167,720	$	63,985,194		1.6x	$	122,987,946	2.2x	$	186,973,140		1.9x	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 SEPTEMBER 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)	$	22,515,577	$	6,939,956	$	11,653,479		1.2x	$	20,504,793	1.9x	$	32,158,272	1.6x	18%	11%
*Tactical Opportunities Co-Investment and Other (Various)		16,282,765		7,371,547		5,015,093		1.8x		8,265,944	1.6x		13,281,037	1.6x	18%	18%
Total Tactical Opportunities	$	38,798,342	$	14,311,503	$	16,668,572		1.3x	$	28,770,737	1.8x	$	45,439,309	1.6x	18%	13%
Growth
*BXG I (Jul 2020 / Jul 2025)		5,046,626		1,259,722		3,642,869		1.0x		354,582	3.3x		3,997,451	1.1x	n/m	(0)%
BXG II (TBD)		3,428,640		3,428,640		—		n/a		—	n/a		—	n/a	n/a	n/a
Total Growth	$	8,475,266	$	4,688,362	$	3,642,869		1.0x	$	354,582	3.3x	$	3,997,451	1.1x	n/m	(0)%
Strategic Partners (Secondaries)
Strategic Partners I-V (Various) (i)		11,447,898		645,878		420,496		n/a		16,913,196	n/a		17,333,692	1.7x	n/a	13%
Strategic Partners VI (Apr 2014 / Apr 2016) (i)		4,362,750		1,491,955		1,088,452		n/a		4,012,194	n/a		5,100,646	1.7x	n/a	15%
Strategic Partners VII (May 2016 / Mar 2019) (i)		7,489,970		1,794,752		4,702,171		n/a		5,792,772	n/a		10,494,943	2.0x	n/a	20%
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)		1,749,807		533,829		1,099,578		n/a		975,172	n/a		2,074,750	1.5x	n/a	16%
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)		10,763,600		4,866,535		9,062,102		n/a		5,186,528	n/a		14,248,630	1.9x	n/a	43%
*Strategic Partners Real Estate, SMA and Other (Various) (i)		8,771,763		3,003,592		3,462,601		n/a		3,147,301	n/a		6,609,902	1.7x	n/a	19%
*Strategic Partners Infra III (Jun 2020 / Jul 2024) (i)		3,250,100		1,708,501		1,113,984		n/a		124,956	n/a		1,238,940	1.4x	n/a	58%
*Strategic Partners IX (Oct 2021 / Jul 2026) (i)		17,196,913		12,285,298		3,309,826		n/a		113,017	n/a		3,422,843	1.4x	n/a	n/m
Total Strategic Partners (Secondaries)	$	65,032,801	$	26,330,340	$	24,259,210		n/a	$	36,265,136	n/a	$	60,524,346	1.7x	n/a	16%
Life Sciences
Clarus IV (Jan 2018 / Jan 2020)		910,000		140,770		904,799		1.6x		239,846	1.9x		1,144,645	1.7x	23%	15%
*BXLS V (Jan 2020 / Jan 2025)		4,839,511		3,742,428		1,178,568		1.3x		71,549	1.3x		1,250,117	1.3x	9%	2%

Credit
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)	$	2,000,000	$	97,114	$	22,509		1.8x	$	4,786,397	1.6x	$	4,808,906	1.6x	n/a	17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)		4,120,000		998,027		249,574		0.3x		6,496,230	1.6x		6,745,804	1.4x	n/a	10%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)		6,639,133		953,406		3,796,336		1.0x		5,573,791	1.6x		9,370,127	1.3x	n/a	10%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)		5,016,771		3,476,787		1,622,867		1.0x		65,480	n/m		1,688,347	1.0x	n/a	10%
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		364,069		0.5x		5,242,349	1.2x		5,606,418	1.1x	n/a	1%
*Stressed / Distressed III (Dec 2017 / Dec 2022)		7,356,380		2,646,972		2,576,770		0.9x		2,796,308	1.4x		5,373,078	1.1x	n/a	7%
Energy I (Nov 2015 / Nov 2018)		2,856,867		1,045,894		842,545		1.0x		2,580,579	1.7x		3,423,124	1.4x	n/a	10%
*Energy II (Feb 2019 / Feb 2024)		3,616,081		1,957,123		1,951,379		1.2x		1,048,553	1.5x		2,999,932	1.3x	n/a	26%
European Senior Debt I (Feb 2015 / Feb 2019)	€	1,964,689	€	352,855	€	918,765		0.8x	€	2,278,324	1.4x	€	3,197,089	1.2x	n/a	3%
*European Senior Debt II (Jun 2019 / Jun 2024)	€	4,088,344	€	1,185,458	€	4,214,580		1.0x	€	1,372,464	1.6x	€	5,587,044	1.1x	n/a	13%
Total Credit Drawdown Funds (j)	$	46,889,033	$	13,305,779	$	16,454,930		0.9x	$	38,548,150	1.5x	$	55,003,080	1.2x	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

72,685,947

12%

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

Core+ Real Estate

70,314,335

13%

BXMT - Blackstone Mortgage Trust (2013) (o)

Real Estate Debt

6,541,046

Private Equity

BIP - Blackstone Infrastructure Partners (2019) (p)

Infrastructure

25,778,540

18%

Hedge Fund Solutions

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

GP Stakes

10,325,973

15%

Credit

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

U.S. Direct Lending

11,113,320

10%

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

U.S. Direct Lending

57,469,317

Notes on page 21. BXLS - Blackstone Life Sciences.

* Represents funds that are currently in their investment period.

Blackstone | 20

INVESTMENT RECORDS AS OF SEPTEMBER 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 September 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 September 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 September 30, 2022, these vehicles represented $2.9 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 September 30, 2022, assuming reinvestment of all dividends received during the period. Return incorporates the closing NYSE stock price as of September 30, 2022. Total Net Return is from May 22, 2013.

(p)

Including co-investment vehicles that do not pay fees, BIP Total AUM is $31.1 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 $11.2 billion.

(r)

The BXSL Total AUM and Total Net Return are presented as of June 30, 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 September 30, 2022 was $22.4 billion.

Blackstone | 21

SHAREHOLDER DIVIDENDS

Generated $1.06 of Distributable Earnings per common share during the quarter, bringing the YTD amount to $4.10 per common share.

Blackstone declared a quarterly dividend of $0.90 per common share to record holders as of October 31, 2022; payable on November 7, 2022.


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

Distributable Earnings	$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	1,374,869		(16)%	$	3,897,510		$	5,298,574		36%
Add: Other Payables Attributable to Common Shareholders		133,841			352,514			115,166			298,570			145,137		8%		315,425			558,873		77%

DE before Certain Payables		1,769,114			2,625,841			2,053,046			2,284,395			1,520,006		(14)%		4,212,935			5,857,447		39%

Percent to Common Shareholders		60%			61%			61%			61%			61	%			60%			61%
DE before Certain Payables Attributable to Common Shareholders		1,059,142			1,601,199			1,254,703			1,402,640			934,240		(12)%		2,510,885			3,591,583		43%
Less: Other Payables Attributable to Common Shareholders		(133,841	)		(352,514	)		(115,166	)		(298,570	)		(145,137	)	8%		(315,425	)		(558,873	)	77%

DE Attributable to Common Shareholders		925,301			1,248,685			1,139,537			1,104,070			789,103		(15)%		2,195,460			3,032,710		38%

DE per Common Share	$	1.28		$	1.71		$	1.55		$	1.49		$	1.06		(17)%	$	3.06		$	4.10		34%

Less: Retained Capital per Common Share	$	(0.19	)	$	(0.26	)	$	(0.23	)	$	(0.22	)	$	(0.16	)	(16)%	$	(0.45	)	$	(0.61	)	36%

Actual Dividend per Common Share	$	1.09		$	1.45		$	1.32		$	1.27		$	0.90		(17)%	$	2.61		$	3.49		34%

Record Date														Oct 31, 2022

Payable Date														Nov 7, 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 1.207 billion shares.

–

Repurchased 2.0 million common shares in the quarter and 8.1 million common shares over the LTM.

–

Available authorization remaining was $1.1 billion at September 30, 2022.



	3Q’21		4Q’21		1Q’22		2Q’22		3Q’22

Participating Common Shares		721,369,398		732,037,197		734,543,862		742,187,838		741,552,385

Participating Partnership Units		483,553,949		468,446,388		467,375,889		466,568,377		464,951,386

Distributable Earnings Shares Outstanding		1,204,923,347		1,200,483,585		1,201,919,751		1,208,756,215		1,206,503,771

Participating Common Shares and Participating Partnership Units include both issued and outstanding shares and unvested shares that participate in dividends. Participating Common Shares and shares repurchased in the quarter include the effect of share repurchases that were initiated before quarter end but where the shares were not retired until after quarter end.

Blackstone | 23

Reconciliations and Disclosures

Blackstone | 24

RECONCILIATION OF GAAP TO NON-GAAP MEASURES


	QTD															YTD						LTM


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

Net Income (Loss) Attributable to Blackstone Inc.	$	1,401,895		$	1,398,478		$	1,216,874		$	(29,393	)	$	2,296		$	4,458,919		$	1,189,777		$	5,207,789		$	2,588,255

Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings		1,315,641			1,218,934			1,059,313			(35,521	)		37,724			3,667,618			1,061,516			4,426,728			2,280,450

Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities		486,907			320,033			216,375			(216,707	)		(62,093	)		1,305,273			(62,425	)		1,613,328			257,608

Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities		1,550			2,924			5,052			25,875			25,773			2,816			56,700			945			59,624

Net Income (Loss)	$	3,205,993		$	2,940,369		$	2,497,614		$	(255,746	)	$	3,700		$	9,434,626		$	2,245,568		$	11,248,790		$	5,185,937

Provision for Taxes		458,904			437,694			483,281			36,514			94,231			746,707			614,026			1,013,049			1,051,720

Income (Loss) Before Provision for Taxes	$	3,664,897		$	3,378,063		$	2,980,895		$	(219,232	)	$	97,931		$	10,181,333		$	2,859,594		$	12,261,839		$	6,237,657

Transaction-Related Charges (a)		59,193			21,424			25,333			25,141			9,247			122,614			59,721			192,906			81,145

Amortization of Intangibles (b)		17,044			17,044			17,044			17,044			13,238			51,212			47,326			67,747			64,370

Impact of Consolidation (c)		(488,457	)		(322,957	)		(221,427	)		190,832			36,320			(1,308,089	)		5,725			(1,614,273	)		(317,232	)

Unrealized Performance Revenues (d)		(2,724,366	)		(789,213	)		(1,293,050	)		3,467,668			771,637			(7,886,033	)		2,946,255			(8,483,318	)		2,157,042

Unrealized Performance Allocations Compensation (e)		1,193,853			384,007			472,284			(1,386,543	)		(359,590	)		3,394,041			(1,273,849	)		3,672,616			(889,842	)

Unrealized Principal Investment (Income) Loss (f)		2,343			(153,518	)		(26,758	)		203,288			996,105			(526,249	)		1,172,635			(640,676	)		1,019,117

Other Revenues (g)		(64,109	)		(50,633	)		(72,819	)		(155,704	)		(198,546	)		(152,252	)		(427,069	)		(8,637	)		(477,702	)

Equity-Based Compensation (h)		129,254			164,589			201,545			195,644			190,197			394,948			587,386			462,040			751,975

Administrative Fee Adjustment (i)		2,488			2,441			2,485			2,476			2,460			7,747			7,421			10,293			9,862

Taxes and Related Payables (j)		(156,867	)		(377,920	)		(147,652	)		(354,789	)		(184,130	)		(381,762	)		(686,571	)		(558,621	)		(1,064,491	)

Distributable Earnings	$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	1,374,869		$	3,897,510		$	5,298,574		$	5,361,916		$	7,571,901

Taxes and Related Payables (j)		156,867			377,920			147,652			354,789			184,130			381,762			686,571			558,621			1,064,491

Net Interest and Dividend (Income) Loss (k)		16,238			(6,779	)		12,117			3,282			22,850			40,367			38,249			45,971			31,470

Total Segment Distributable Earnings	$	1,808,378		$	2,644,468		$	2,097,649		$	2,343,896		$	1,581,849		$	4,319,639		$	6,023,394		$	5,966,508		$	8,667,862

Realized Performance Revenues (l)		(1,497,477	)		(1,191,374	)		(1,312,810	)		(2,206,774	)		(469,009	)		(2,691,738	)		(3,988,593	)		(3,968,367	)		(5,179,967	)

Realized Performance Compensation (m)		619,074			449,301			519,120			926,974			206,224			1,108,269			1,652,318			1,591,797			2,101,619

Realized Principal Investment Income (n)		(151,010	)		(75,468	)		(157,095	)		(43,509	)		(139,765	)		(512,298	)		(340,369	)		(616,119	)		(415,837	)

Fee Related Earnings	$	778,965		$	1,826,927		$	1,146,864		$	1,020,587		$	1,179,299		$	2,223,872		$	3,346,750		$	2,973,819		$	5,173,677

Adjusted EBITDA Reconciliation

Distributable Earnings	$	1,635,273		$	2,273,327		$	1,937,880		$	1,985,825		$	1,374,869		$	3,897,510		$	5,298,574		$	5,361,916		$	7,571,901

Interest Expense (o)		51,773			56,387			66,602			69,425			80,312			140,245			216,339			185,575			272,726

Taxes and Related Payables (j)		156,867			377,920			147,652			354,789			184,130			381,762			686,571			558,621			1,064,491

Depreciation and Amortization (p)		12,771			14,542			14,316			15,644			14,958			37,645			44,918			47,591			59,460

Adjusted EBITDA	$	1,856,684		$	2,722,176		$	2,166,450		$	2,425,683		$	1,654,269		$	4,457,162		$	6,246,402		$	6,153,703		$	8,968,578

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.

(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)	3Q’21			4Q’21			1Q’22			2Q’22			3Q’22			3Q’21			3Q’22			3Q’21			3Q’22
GAAP Unrealized Principal Investment Income (Loss)	$	183,754		$	304,297		$	73,961		$	(500,490	)	$	(1,069,697	)	$	1,151,904		$	(1,496,226	)	$	1,369,592		$	(1,191,929	)
Segment Adjustment		(186,097	)		(150,779	)		(47,203	)		297,202			73,592			(625,655	)		323,591			(728,916	)		172,812

Unrealized Principal Investment Income (Loss)	$	(2,343	)	$	153,518		$	26,758		$	(203,288	)	$	(996,105	)	$	526,249		$	(1,172,635	)	$	640,676		$	(1,019,117	)

(g) This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents the removal of certain Transaction-Related Charges.
	QTD															YTD						LTM
($ in thousands)	3Q’21			4Q’21			1Q’22			2Q’22			3Q’22			3Q’21			3Q’22			3Q’21			3Q’22
GAAP Other Revenue	$	64,187		$	50,699		$	72,869		$	155,588		$	199,382		$	152,387		$	427,839		$	8,804		$	478,538
Segment Adjustment		(78	)		(66	)		(50	)		116			(836	)		(135	)		(770	)		(167	)		(836	)
Other Revenues	$	64,109		$	50,633		$	72,819		$	155,704		$	198,546		$	152,252		$	427,069		$	8,637		$	477,702
(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. For interim periods, taxes are calculated using the preferred annualized effective tax rate approach. Related Payables represent tax-related payables including the amount payable under the Tax Receivable Agreement. Please refer to page 34 for the full definition of Taxes and Related Payables.
	QTD															YTD						LTM
($ in thousands)	3Q’21			4Q’21			1Q’22			2Q’22			3Q’22			3Q’21			3Q’22			3Q’21			3Q’22
Taxes	$	140,548		$	365,109		$	124,645		$	324,954		$	163,602		$	337,966		$	613,201		$	501,281		$	978,310
Related Payables		16,319			12,811			23,007			29,835			20,528			43,796			73,370			57,340			86,181
Taxes and Related Payables	$	156,867		$	377,920		$	147,652		$	354,789		$	184,130		$	381,762		$	686,571		$	558,621		$	1,064,491

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)	3Q’21			4Q’21			1Q’22			2Q’22			3Q’22			3Q’21			3Q’22			3Q’21			3Q’22
GAAP Interest and Dividend Revenue	$	35,048		$	63,166		$	54,485		$	62,075		$	52,420		$	97,477		$	168,980		$	137,203		$	232,146
Segment Adjustment		487			—			—			4,068			5,042			2,401			9,110			2,401			9,110
Interest and Dividend Revenue	$	35,535		$	63,166		$	54,485		$	66,143		$	57,462		$	99,878		$	178,090		$	139,604		$	241,256

GAAP Interest Expense	$	52,413		$	56,550		$	66,747		$	69,642		$	80,507		$	141,718		$	216,896		$	187,420		$	273,446
Segment Adjustment		(640	)		(163	)		(145	)		(217	)		(195	)		(1,473	)		(557	)		(1,845	)		(720	)
Interest Expense	$	51,773		$	56,387		$	66,602		$	69,425		$	80,312		$	140,245		$	216,339		$	185,575		$	272,726

Net Interest and Dividend Income (Loss)	$	(16,238	)	$	6,779		$	(12,117	)	$	(3,282	)	$	(22,850	)	$	(40,367	)	$	(38,249	)	$	(45,971	)	$	(31,470	)

(l) This adjustment removes the total segment amount of Realized Performance Revenues. (m) This adjustment removes the total segment amount of Realized Performance Compensation. (n) This adjustment removes the total segment amount of Realized Principal Investment Income. (o) This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement. (p) This adjustment adds back Depreciation and Amortization on a segment basis. Reconciliation of GAAP Shares of Common Stock Outstanding to Distributable Earnings Shares Outstanding

	QTD
	3Q’21			4Q’21			1Q’22			2Q’22			3Q’22
GAAP Shares of Common Stock Outstanding		693,612,698			704,339,774			707,180,830			706,476,877			708,995,155

Unvested Participating Common Shares		27,756,700			27,697,423			27,363,032			35,710,961			32,557,230
Total Participating Common Shares		721,369,398			732,037,197			734,543,862			742,187,838			741,552,385
Participating Partnership Units		483,553,949			468,446,388			467,375,889			466,568,377			464,951,386
Distributable Earnings Shares Outstanding		1,204,923,347			1,200,483,585			1,201,919,751			1,208,756,215			1,206,503,771

Disclosure of Weighted-Average Shares Common Stock Outstanding

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

Total GAAP Weighted-Average Shares of Common Stock Outstanding - Basic		722,229,117			726,445,206			734,327,015			707,382,293			742,345,646			717,516,302			739,963,370			713,742,286			736,556,059

Weighted-Average Shares of Unvested Deferred Restricted Common Stock		203,982			226,315			639,900			—			149,886			402,113			308,877			410,649			323,171

Total GAAP Weighted-Average Shares of Common Stock Outstanding - Diluted		722,433,099			726,671,521			734,966,915			707,382,293			742,495,532			717,918,415			740,272,247			714,152,935			736,879,230

GAAP Shares of Common Stock Outstanding and Total GAAP Weighted-Average Shares of Common Stock Outstanding – Basic for 3Q’22 include the effect of share repurchases that were initiated before quarter end but where the shares were not retired until after quarter end.

Blackstone | 27

BLACKSTONE’S THIRD QUARTER 2022 GAAP BALANCE SHEET RESULTS



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

Assets

Cash and Cash Equivalents	$	5,011,433		$	2,119,738		$	3,868,567		$	4,183,380		$	3,480,003

Cash Held by Blackstone Funds and Other		113,731			79,994			110,648			129,276			94,358

Investments		25,104,195			28,665,043			30,068,474			27,323,758			26,256,148

Accounts Receivable		496,265			636,616			517,465			774,137			835,529

Due from Affiliates		3,718,119			4,656,867			4,004,359			3,891,958			4,029,490

Intangible Assets, Net		303,082			284,384			265,686			246,988			232,096

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

Other Assets		538,567			492,936			422,786			658,298			785,794

Right-of-Use Assets		745,886			788,991			868,437			886,911			887,832

Deferred Tax Assets		1,116,612			1,581,637			1,327,454			1,646,400			1,767,869

Total Assets	$	39,038,092		$	41,196,408		$	43,344,078		$	41,631,308		$	40,259,321

Liabilities and Equity

Loans Payable	$	7,527,576		$	7,748,163		$	8,937,456		$	9,365,274		$	9,263,080

Due to Affiliates		1,426,209			1,906,098			1,881,054			2,001,391			2,060,891

Accrued Compensation and Benefits		7,399,559			7,905,070			8,140,773			6,765,492			6,732,507

Securities Sold, Not Yet Purchased		35,657			27,849			27,278			27,029			26,783

Repurchase Agreements		36,545			57,980			77,289			152,529			313,138

Operating Lease Liabilities		863,020			908,033			986,073			993,875			985,632

Accounts Payable, Accrued Expenses and Other Liabilities		871,661			937,169			1,053,128			991,620			1,141,905

Total Liabilities		18,160,227			19,490,362			21,103,051			20,297,210			20,523,936

Redeemable Non-Controlling Interests in Consolidated Entities		66,824			68,028			41,430			1,275,491			1,344,188

Equity

Common Stock, $0.00001 par value (709,040,610 shares issued and outstanding as of September 30, 2022)		7			7			7			7			7

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

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

Additional Paid-in-Capital		6,037,628			5,794,727			5,879,796			5,870,285			5,791,006

Retained Earnings		3,031,765			3,647,785			3,805,918			2,803,100			1,869,463

Accumulated Other Comprehensive Loss		(15,357	)		(19,626	)		(25,754	)		(42,225	)		(74,800	)

Non-Controlling Interests in Consolidated Entities		5,638,612			5,600,653			5,747,698			5,281,244			5,357,148

Non-Controlling Interests in Blackstone Holdings		6,118,386			6,614,472			6,791,932			6,146,196			5,448,373

Total Equity		20,811,041			21,638,018			22,199,597			20,058,607			18,391,197

Total Liabilities and Equity	$	39,038,092		$	41,196,408		$	43,344,078		$	41,631,308		$	40,259,321

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

Blackstone | 28

RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES



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

Investments of Consolidated Blackstone Funds	$	2,104,705		$	2,018,829		$	2,045,156		$	3,764,850		$	3,828,497

Equity Method Investments

Partnership Investments		5,303,334			5,635,212			5,858,926			5,446,688			5,566,645

Accrued Performance Allocations		15,063,648			17,096,873			17,661,244			13,544,855			12,938,888

Corporate Treasury Investments		1,520,426			658,066			916,510			810,672			799,016

Other Investments		1,112,082			3,256,063			3,586,638			3,756,693			3,123,102

Total GAAP Investments		25,104,195			28,665,043			30,068,474			27,323,758			26,256,148



Accrued Performance Allocations - GAAP	$	15,063,648		$	17,096,873		$	17,661,244		$	13,544,855		$	12,938,888

Impact of Consolidation (a)		1			1			1			12,475			2,412

Due from Affiliates - GAAP (b)		59,669			260,993			112,194			136,631			154,587

Less: Net Realized Performance Revenues (c)		(416,336	)		(1,294,884	)		(743,772	)		(262,083	)		(342,922	)

Less: Accrued Performance Compensation - GAAP (d)		(6,395,903	)		(7,324,906	)		(7,483,337	)		(5,955,982	)		(5,693,325	)

Net Accrued Performance Revenues	$	8,311,079		$	8,738,077		$	9,546,330		$	7,475,896		$	7,059,640

Corporate Treasury and Other Investments - GAAP	$	2,632,508		$	3,914,129		$	4,503,148		$	4,567,365		$	3,922,118

Impact of Consolidation (a)		178,407			144,354			140,905			708,469			697,317

Other Assets (e)		580,641			797,843			379,768			642,875			617,346

Other Liabilities (f)		(169,863	)		(94,314	)		(66,065	)		(54,321	)		(37,974	)

Corporate Treasury and Other Investments - Deconsolidated (g)	$	3,221,693		$	4,762,012		$	4,957,756		$	5,864,388		$	5,198,807

Partnership Investments - GAAP	$	5,303,334		$	5,635,212		$	5,858,926		$	5,446,688		$	5,566,645

Impact of Consolidation (h)		(3,459,004	)		(3,552,599	)		(3,623,881	)		(3,169,740	)		(3,221,867	)

GP/Fund Investments - Deconsolidated	$	1,844,330		$	2,082,613		$	2,235,045		$	2,276,948		$	2,344,778

Loans Payable - GAAP	$	7,527,576		$	7,748,163		$	8,937,456		$	9,365,274		$	9,263,080

Impact of Consolidation (i)		(100	)		(101	)		—			—			(30,627	)

Outstanding Debt - Carrying Value		7,527,476			7,748,062			8,937,456			9,365,274			9,232,453

Unamortized Discount		109,524			107,438			122,594			131,526			127,947

Outstanding Debt (at par) - Deconsolidated	$	7,637,000		$	7,855,500		$	9,060,050		$	9,496,800		$	9,360,400

(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)

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

(f)

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.

(g)

Deconsolidated Other Investments was $3.1 billion as of September 30, 2022, which was comprised of $2.8 billion of liquid investments and $318 million of illiquid investments. The liquid portion of Other Investments relates to public equity securities, which may include equity securities subject to lockup periods, and other investments held by Blackstone that can be easily converted to cash.

(h)

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.

(i)

This adjustment removes amounts related to consolidated Blackstone Funds.

Blackstone | 29

RECONCILIATION OF GAAP TO TOTAL SEGMENTS


	QTD															YTD						LTM


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

Management and Advisory Fees, Net

GAAP	$	1,320,795		$	1,459,548		$	1,475,936		$	1,561,187		$	1,617,754		$	3,711,159		$	4,654,877		$	4,845,297		$	6,114,425

Segment Adjustment (a)		(720	)		(3,328	)		(2,568	)		(4,270	)		(6,184	)		(137	)		(13,022	)		1,750			(16,350	)

Total Segment	$	1,320,075		$	1,456,220		$	1,473,368		$	1,556,917		$	1,611,570		$	3,711,022		$	4,641,855		$	4,847,047		$	6,098,075

GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues

GAAP

Incentive Fees		48,206			136,454			104,489			99,598			110,776			117,537			314,863			215,239			451,317

Investment Income - Realized Performance Allocations		1,522,495			2,787,970			1,766,386			2,453,769			725,888			2,865,482			4,946,043			4,330,636			7,734,013

GAAP	$	1,570,701		$	2,924,424		$	1,870,875		$	2,553,367		$	836,664		$	2,983,019		$	5,260,906		$	4,545,875		$	8,185,330

Total Segment

Less: Realized Performance Revenues		(1,497,477	)		(1,191,374	)		(1,312,810	)		(2,206,774	)		(469,009	)		(2,691,738	)		(3,988,593	)		(3,968,367	)		(5,179,967	)

Segment Adjustment (b)		89			824			—			—			4,476			89			4,476			89			5,300

Total Segment	$	73,313		$	1,733,874		$	558,065		$	346,593		$	372,131		$	291,370		$	1,276,789		$	577,597		$	3,010,663

GAAP Compensation to Total Segment Fee Related Compensation

GAAP

Compensation		536,199			576,032			656,505			686,012			600,273			1,585,941			1,942,790			2,045,577			2,518,822

Incentive Fees Compensation		21,007			49,349			41,019			45,363			50,355			48,763			136,737			70,849			186,086

Realized Performance Allocations Compensation		631,632			1,119,911			717,601			1,035,916			313,930			1,192,082			2,067,447			1,782,171			3,187,358

GAAP	$	1,188,838		$	1,745,292		$	1,415,125		$	1,767,291		$	964,558		$	2,826,786		$	4,146,974		$	3,898,597		$	5,892,266

Total Segment

Less: Realized Performance Compensation		(619,074	)		(449,301	)		(519,120	)		(926,974	)		(206,224	)		(1,108,269	)		(1,652,318	)		(1,591,797	)		(2,101,619	)

Less: Equity-Based Compensation - Fee Related Compensation		(127,442	)		(162,656	)		(200,387	)		(191,769	)		(187,873	)		(388,607	)		(580,029	)		(454,004	)		(742,685	)

Less: Equity-Based Compensation - Performance Compensation		(1,812	)		(1,933	)		(1,158	)		(3,875	)		(2,324	)		(6,341	)		(7,357	)		(8,036	)		(9,290	)

Segment Adjustment (c)		(21,029	)		(23,368	)		(23,989	)		(23,260	)		(9,869	)		(83,593	)		(57,118	)		(122,015	)		(80,486	)

Total Segment	$	419,481		$	1,108,034		$	670,471		$	621,413		$	558,268		$	1,239,976		$	1,850,152		$	1,722,745		$	2,958,186

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

GAAP	$	217,995		$	309,673		$	240,674		$	289,288		$	270,369		$	608,174		$	800,331		$	822,298		$	1,110,004

Segment Adjustment (d)		(23,053	)		(54,540	)		(26,576	)		(27,778	)		(24,235	)		(69,630	)		(78,589	)		(94,218	)		(133,129	)

Total Segment	$	194,942		$	255,133		$	214,098		$	261,510		$	246,134		$	538,544		$	721,742		$	728,080		$	976,875

Realized Performance Revenues

GAAP

Incentive Fees		48,206			136,454			104,489			99,598			110,776			117,537			314,863			215,239			451,317

Investment Income - Realized Performance Allocations		1,522,495			2,787,970			1,766,386			2,453,769			725,888			2,865,482			4,946,043			4,330,636			7,734,013

GAAP	$	1,570,701		$	2,924,424		$	1,870,875		$	2,553,367		$	836,664		$	2,983,019		$	5,260,906		$	4,545,875		$	8,185,330

Total Segment

Less: Fee Related Performance Revenues		(73,313	)		(1,733,874	)		(558,065	)		(346,593	)		(372,131	)		(291,370	)		(1,276,789	)		(577,597	)		(3,010,663	)

Segment Adjustment (b)		89			824			—			—			4,476			89			4,476			89			5,300

Total Segment	$	1,497,477		$	1,191,374		$	1,312,810		$	2,206,774		$	469,009		$	2,691,738		$	3,988,593		$	3,968,367		$	5,179,967

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


	QTD															YTD						LTM


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

Realized Performance Compensation
GAAP
Incentive Fee Compensation	$	21,007		$	49,349		$	41,019		$	45,363		$	50,355		$	48,763		$	136,737		$	70,849		$	186,086
Realized Performance Allocations Compensation		631,632			1,119,911			717,601			1,035,916			313,930			1,192,082			2,067,447			1,782,171			3,187,358
GAAP	$	652,639		$	1,169,260		$	758,620		$	1,081,279		$	364,285		$	1,240,845		$	2,204,184		$	1,853,020		$	3,373,444
Total Segment
Less: Fee Related Performance Compensation (e)		(31,753	)		(718,026	)		(238,342	)		(150,430	)		(155,737	)		(126,235	)		(544,509	)		(253,187	)		(1,262,535	)
Less: Equity-Based Compensation - Performance Compensation		(1,812	)		(1,933	)		(1,158	)		(3,875	)		(2,324	)		(6,341	)		(7,357	)		(8,036	)		(9,290	)
Total Segment	$	619,074		$	449,301		$	519,120		$	926,974		$	206,224		$	1,108,269		$	1,652,318		$	1,591,797		$	2,101,619

Realized Principal Investment Income
GAAP	$	325,414		$	171,310		$	285,104		$	265,161		$	193,228		$	832,512		$	743,493		$	1,053,326		$	914,803
Segment Adjustment (f)		(174,404	)		(95,842	)		(128,009	)		(221,652	)		(53,463	)		(320,214	)		(403,124	)		(437,207	)		(498,966	)
Total Segment	$	151,010		$	75,468		$	157,095		$	43,509		$	139,765		$	512,298		$	340,369		$	616,119		$	415,837

GAAP Interest and Dividend Revenue net of Interest Expense to Total Segment Net Interest and Dividend Income (Loss)
GAAP
Interest and Dividend Revenue		35,048			63,166			54,485			62,075			52,420			97,477			168,980			137,203			232,146
Interest Expense		(52,413	)		(56,550	)		(66,747	)		(69,642	)		(80,507	)		(141,718	)		(216,896	)		(187,420	)		(273,446	)
GAAP	$	(17,365	)	$	6,616		$	(12,262	)	$	(7,567	)	$	(28,087	)	$	(44,241)		$	(47,916)		$	(50,217)		$	(41,300)
Segment Adjustment (g)		1,127			163			145			4,285			5,237			3,874			9,667			4,246			9,830
Total Segment	$	(16,238	)	$	6,779		$	(12,117	)	$	(3,282	)	$	(22,850	)	$	(40,367)		$	(38,249)		$	(45,971)		$	(31,470)

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.

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NOTES

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

Income Before Provision for Taxes Margin is calculated by dividing Income Before Provision 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 $4,661 million, $3,486 million, and $1,045 million for 3Q’22 LTM, 3Q’21 LTM, and 3Q’21 respectively and Segment DE would have been $8,155 million, $6,479 million, and $2,074 million for 3Q’22 LTM, 3Q’21 LTM, and 3Q’21 respectively and there would have been no impact to Income (Loss) before Taxes for 3Q’22 LTM, 3Q’21 LTM, and 3Q’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 euro-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.

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 $779 million, $932 million, $204 million, and $430 million, respectively, as of September 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 $119 million for 3Q’22 and $451 million for 3Q’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).

–

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 3Q’22 the increase to Realized Performance Compensation was less than the decrease to Fee Related Compensation, which favorably impacted Distributable Earnings for the quarter. On a year-to-date basis, the increase to Realized Performance Compensation was greater than the decrease to Fee Related Compensation, which negatively impacted Distributable Earnings. 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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