Form 8-K Blackstone Group L.P. For: Apr 21
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 21, 2016
The Blackstone Group L.P.
(Exact name of Registrant as specified in its charter)
| Delaware | 001-33551 | 20-8875684 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
| 345 Park Avenue New York, New York |
10154 | |||
| (Address of principal executive offices) | (Zip Code) | |||
(212) 583-5000
(Registrant’s telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations.
On April 21, 2016, The Blackstone Group L.P. issued a press release announcing financial results for its first quarter ended March 31, 2016.
The press release is attached hereto as Exhibit 99.1. All information in the press release is furnished but not filed.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit |
Description | |
| 99.1 | Press release of The Blackstone Group L.P. dated April 21, 2016. | |
i
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: April 21, 2016
| The Blackstone Group L.P. | ||
| By: Blackstone Group Management L.L.C., | ||
| its General Partner | ||
| By: | /s/ Michael S. Chae | |
| Name: | Michael S. Chae | |
| Title: | Chief Financial Officer | |
ii
Exhibit 99.1
Blackstone Reports First Quarter Results
New York, April 21, 2016: Blackstone (NYSE: BX) today reported its first quarter 2016 results.
Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “In the first quarter Blackstone reached a record $344 billion in total assets under management, with $80 billion of gross inflows driving 11% year-over-year AUM growth, and $17 billion of gross inflows in the first quarter alone. Global investors continue to turn to the alternatives asset class, and Blackstone in particular, to provide superior long-term investment performance in a challenging and uncertain environment, fueling these trends. Our major drawdown funds again outperformed the relevant indices in the first quarter and, while certain liquid strategies were not immune to the market turbulence in the period, as a firm we’ve never been better positioned for long-term success with our clients around the world.”
Blackstone’s press release of its first quarter 2016 results can also be viewed at www.blackstone.com.
Distribution
Blackstone has declared a quarterly distribution of $0.28 per common unit to record holders of common units at the close of business on May 2, 2016. This distribution will be paid on May 9, 2016.
Quarterly Investor Call Details
Blackstone will host a conference call on April 21, 2016 at 11:00 a.m. ET to discuss first quarter 2016 results. The conference call can be accessed via the Shareholders section of Blackstone’s website at www.blackstone.com or by dialing +1 (877) 391-6747 (U.S. domestic) or +1 (617) 597-9291 (international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available on www.blackstone.com or by dialing +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), pass code 204 488 67#.
About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we 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 asset management businesses, with over $340 billion in assets under management, include investment vehicles focused on
The Blackstone Group L.P.
345 Park Avenue
New York, New York 10154
T 212 583 5000
private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
Forward-Looking Statements
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations and financial performance. 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,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission, 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 release and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
This release does not constitute an offer of any Blackstone Fund.
Investor and Media Relations Contacts
| Joan Solotar Blackstone Tel: +1 (212) 583-5068 |
Weston Tucker Blackstone Tel: +1 (212) 583-5231 |
Christine Anderson Blackstone Tel: +1 (212) 583-5182 |
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 Blackstone’s First Quarter 2016 Earnings April 21, 2016 |
 Blackstone 1 Blackstone’s First Quarter 2016 Highlights Economic Net Income (“ENI”) was $371 million ($0.31/unit) in the first quarter, on $929 million of Total Segment Revenues. • ENI was $899 million ($0.76/unit) for the last twelve months (“LTM”) on $3.0 billion of Total Segment Revenues. Distributable Earnings (“DE”) was $388 million ($0.33/ unit) in the first quarter, on $259 million of Realized Performance Fees. • DE was $3.0 billion ($2.51/unit) LTM on $2.4 billion of Realized Performance Fees. Fee Related Earnings (“FRE”) was $219 million in the first quarter, up 21% from $181 million in the prior year despite the spin-off of Blackstone’s Advisory businesses completed in October 2015. • FRE was $974 million LTM, on $2.6 billion of Fee Revenues. GAAP Net Income was $150 million ($0.23/unit diluted) for the quarter and $230 million ($0.28/unit diluted) LTM, net of certain non-cash IPO and transaction related expenses and net income attributable to non-controlling interests, primarily inside ownership. Total Assets Under Management (“AUM”) reached a record $343.7 billion through a combination of strong fundraising and organic expansion. • Gross inflows were $17.1 billion in the first quarter, bringing LTM inflows to $80.2 billion. • Total AUM increased 11% year-over-year, despite returning $48.2 billion of capital to investors. Significant capital deployment of $6.7 billion in the first quarter was achieved by leveraging Blackstone’s diverse platform to find opportunities globally. Blackstone declared a first quarter distribution of $0.28 per common unit payable on May 9, 2016. |
 Blackstone 2 Blackstone’s First Quarter 2016 Segment Earnings n/m = not meaningful. See page 11 for the GAAP Statement of Operations. % Change % Change (Dollars in Thousands, Except per Unit Data) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Fee Revenues 614,891 $ 606,953 $ (1)% 2,601,360 $ 2,565,467 $ (1)% Performance Fees 1,673,736 314,065 (81)% 5,286,599 438,406 (92)% Investment Income (Loss) 189,641 (26,650) n/m 544,802 (163,442) n/m Interest Income and Dividend Revenue 30,451 35,081 15% 104,433 136,231 30% Total Revenues 2,508,719 929,449 (63)% 8,537,194 2,976,662 (65)% Total Expenses 876,936 542,004 (38)% 3,186,159 2,043,204 (36)% Taxes 9,719 16,794 73% 197,919 34,602 (83)% Economic Net Income (“ENI”) 1,622,064 $ 370,651 $ (77)% 5,153,116 $ 898,856 $ (83)% ENI per Unit 1.37 $
0.31 $
(77)% 4.43 $
0.76 $
(83)% GAAP Net Income 629,448 $ 150,033 $ (76)% 1,948,420 $ 230,374 $ (88)% Fee Related Earnings (“FRE”) 180,624 $ 219,456 $ 21% 1,008,576 $ 974,443 $ (3)% Distributable Earnings (“DE”) 1,240,207 $ 387,967 $ (69)% 3,825,519 $ 2,991,448 $ (22)% DE per Common Unit 1.05 $
0.33 $
(69)% 3.16 $
2.51 $
(21)% Total AUM 310,451,289 $ 343,705,462 $ 11% 310,451,289 $ 343,705,462 $ 11% Fee-Earning AUM 223,511,700 $ 244,452,764 $ 9% 223,511,700 $ 244,452,764 $ 9% |
 Blackstone 3 Private Equity 1.7% 1Q’16 increase in Corporate Private Equity carrying value $3.5 billion 1Q’16 capital raised $95.5 billion Total AUM up 25% YoY Corporate Private Equity carrying value increased 1.7% in the quarter driven by public portfolio appreciation. Realizations through public and strategic sales were $2.1 billion in the first quarter and $12.3 billion over the LTM. Deployed $2.0 billion during the quarter including the closing of several new investments and synergistic add-on investments to existing platform deals. Raised $3.5 billion in the quarter across the segment, including initial closings for the seventh secondary fund and the Core Private Equity fund, bringing total capital raised to $30.3 billion over the last twelve months. Total AUM increased 25% year-over-year to a record $95.5 billion, driven by fundraising across flagship funds, Strategic Partners, Tactical Opportunities and Core Private Equity. % Change % Change (Dollars in Thousands) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Fee Revenues 124,397 $ 131,133 $ 5% 542,358 $ 525,289 $ (3)% Performance Fees 949,800 104,157 (89)% 2,640,160 (88,611) n/m Investment Income (Loss) 76,303 83 (100)% 203,606 (2,909) n/m Interest Income and Dividend Revenue 7,618 9,849 29% 24,381 35,449 45% Total Revenues 1,158,118 245,222 (79)% 3,410,505 469,218 (86)% Compensation 71,072 80,274 13% 277,450 289,450 4% Performance Fee Compensation 217,602 24,723 (89)% 635,818 53,871 (92)% Other Operating Expenses 38,875 48,063 24% 149,240 208,346 40% Total Expenses 327,549 153,060 (53)% 1,062,508 551,667 (48)% Economic Income (Loss) 830,569 $ 92,162 $ (89)% 2,347,997 $ (82,449) $ n/m Total AUM 76,327,189 $ 95,466,227 $ 25% 76,327,189 $ 95,466,227 $ 25% Fee-Earning AUM 49,342,211 $ 50,228,312 $ 2% 49,342,211 $ 50,228,312 $ 2% |
 Blackstone 4 Real Estate Opportunistic funds’ carrying value was up 1.8% during the quarter due to gains across public and private investment values; core+ funds’ carrying value was up 4.4% in the quarter. Investment pace remained strong with $3.8 billion invested in the quarter, including the closing of the BioMed Realty acquisition, a publicly traded U.S. life sciences office REIT. Sustained strong level of realizations with $3.5 billion in the quarter through both Blackstone’s public stake in Gecina and private sales, including asset sales within the Equity Office Properties and Trizec office portfolios. Total AUM up 9% year-over-year and up more than 27% since the beginning of 2014 to over $100 billion despite $44.2 billion of capital returned to investors in the same period. • Fee-Earning AUM up 33% year-over-year to $67.3 billion driven by increases in scale of opportunistic funds and growth of the core+ strategy. Raised $8.4 billion in the quarter, including $5.2 billion for the first closing of the fifth European opportunistic fund and $1.7 billion for the third mezzanine debt fund. 1.8% $205 million 1Q’16 Realized Performance Fees $101.1 billion Total AUM up 9% YoY % Change % Change (Dollars in Thousands) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Fee Revenues 158,721 $ 230,197 $ 45% 683,260 $ 822,366 $ 20% Performance Fees 637,022 202,939 (68)% 2,317,202 558,063 (76)% Investment Income (Loss) 108,854 10,838 (90)% 322,283 (94,323) n/m Interest Income and Dividend Revenue 9,997 13,188 32% 34,084 47,181 38% Total Revenues 914,594 457,162 (50)% 3,356,829 1,333,287 (60)% Compensation 84,834 100,578 19% 330,918 374,125 13% Performance Fee Compensation 151,343 77,070 (49)% 674,558 230,912 (66)% Other Operating Expenses 40,143 48,097 20% 153,119 187,129 22% Total Expenses 276,320 225,745 (18)% 1,158,595 792,166 (32)% Economic Income 638,274 $ 231,417 $ (64)% 2,198,234 $ 541,121 $ (75)% Total AUM 92,785,658 $ 101,107,528 $ 9% 92,785,658 $ 101,107,528 $ 9% Fee-Earning AUM 50,783,247 $ 67,298,439 $ 33% 50,783,247 $ 67,298,439 $ 33% 1Q’16 increase in opportunistic funds’ carrying value |
 Blackstone 5 Hedge Fund Solutions (2.9)% 1Q’16 Composite Gross Return $35.4 billion Incentive Fee Eligible AUM at 1Q’16 $2.9 billion 1Q’16 Fee-Earning Gross Inflows The composite gross return was down 2.9% in the quarter on challenging market conditions. Fee-Earning gross inflows of $2.9 billion during the quarter and $9.4 billion LTM were driven by customized and commingled strategies and individual investor solutions. • April 1 subscriptions of $205 million are not yet included in Fee-Earning AUM. Total AUM up 3% year-over-year to $68.5 billion driven by continued platform diversification and growth in customized strategies and individual investor solutions. • Total AUM net inflows of $1.4 billion during the quarter and $4.5 billion LTM reflect continued investor confidence in BAAM’s ability to identify strategic opportunities while managing risk. • Total AUM for BAAM’s individual investor solutions platform reached $6.8 billion, up 79% from $3.8 billion year-over-year. % Change % Change (Dollars in Thousands) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Fee Revenues 128,775 $ 129,313 $ 0% 497,022 $ 525,612 $ 6% Performance Fees 57,943 (219) n/m 139,663 3,972 (97)% Investment Income (Loss) (5,892) (17,036) 189% (461) (25,320) n/m Interest Income and Dividend Revenue 3,949 5,296 34% 12,402 18,621 50% Total Revenues 184,775 117,354 (36)% 648,626 522,885 (19)% Compensation 56,104 54,169 (3)% 147,191 177,549 21% Performance Fee Compensation 19,121 668 (97)% 41,267 6,613 (84)% Other Operating Expenses 21,206 26,146 23% 87,855 95,012 8% Total Expenses 96,431 80,983 (16)% 276,313 279,174 1% Economic Income 88,344 $ 36,371 $ (59)% 372,313 $ 243,711 $ (35)% Total AUM 66,378,908 $ 68,475,416 $ 3% 66,378,908 $ 68,475,416 $ 3% Fee-Earning AUM 64,114,498 $ 64,831,253 $ 1% 64,114,498 $ 64,831,253 $ 1% The composite gross return is based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM’s
individual investor solutions (liquid alternatives), long-biased commodities, ventures (seeding and minority interests), strategic opportunities (co-investments), Senfina (direct trading) and
advisory (non-discretionary) platforms, except for
investments by BPS funds directly into those platforms. BAAM-managed funds
in liquidation are also excluded. On a net of fees basis, the BPS Composite was (3.1)% for 1Q’16. |
 Blackstone 6 Credit Credit markets continued to experience significant volatility, creating investment opportunities as $569 million of capital was deployed during the quarter, with significant investment activity from rescue lending strategies. Performance across the Distressed and Performing Credit Strategies was negatively impacted by energy investments. Given significant dislocation in the market there continues to be a robust deal pipeline for our rescue lending and mezzanine strategies. Fee-Earning AUM growth of 5% year-over-year driven by capital deployed in drawdown funds and growth across the BDC platform. Continued realization activity across funds of $885 million in the quarter and $7.2 billion LTM, primarily in drawdown funds and the CLO platform. $569 million 1Q’16 Total Capital Deployed $78.7 billion Total AUM up 5% YoY 1Q’16 Composite Gross Returns Performing Credit 0.6% Distressed (3.3)% % Change % Change (Dollars in Thousands) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Fee Revenues 122,129 $ 116,310 $ (5)% 465,610 $ 476,640 $ 2% Performance Fees 28,971 7,188 (75)% 189,574 (35,018) n/m Investment Income (Loss) 9,124 (20,535) n/m 17,383 (38,731) n/m Interest Income and Dividend Revenue 5,651 6,748 19% 22,830 25,696 13% Total Revenues 165,875 109,711 (34)% 695,397 428,587 (38)% Compensation 49,877 52,382 5% 187,325 192,694 3% Performance Fee Compensation 15,750 3,614 (77)% 100,422 (24,577) n/m Other Operating Expenses 21,836 26,220 20% 79,521 98,010 23% Total Expenses 87,463 82,216 (6)% 367,268 266,127 (28)% Economic Income 78,412 $ 27,495 $ (65)% 328,129 $ 162,460 $ (50)% Total AUM 74,959,534 $ 78,656,291 $ 5% 74,959,534 $ 78,656,291 $ 5% Fee-Earning AUM 59,271,744 $ 62,094,760 $ 5% 59,271,744 $ 62,094,760 $ 5% Performing Credit Strategies include mezzanine lending funds, Business Development Companies (“BDCs”) and other performing
credit strategy funds. Distressed Strategies include hedge fund strategies, rescue lending funds and distressed energy strategies. The composite gross returns represent a weighted-average composite of the
fee-earning funds exceeding $100 million of fair value at each respective quarter end for each strategy. Composite gross returns exclude the Blackstone Funds that were contributed to GSO as part of
Blackstone’s acquisition of GSO in March 2008. Performing Credit Strategies’ net returns were (0.4)% for 1Q'16 and Distressed Strategies’ net returns were (3.9)% for 1Q'16. The breakdown of Total AUM for 1Q’16
is as follows: Distressed Strategies $20.7 billion (34% Incentive Fee, 66% Carried Interest), Performing Credit Strategies $27.3 billion (61% Incentive Fee, 39% Carried Interest), and Long Only $30.7 billion.
|
 Blackstone 7 $66.0 $75.0 $78.7 $58.3 $66.4 $68.5 $81.3 $92.8 $101.1 $66.1 $76.3 $95.5 1Q'14 1Q'15 1Q'16 Fee-Earning AUM by Segment (Dollars in Billions) Total AUM by Segment (Dollars in Billions) $271.7 Private Equity Real Estate Hedge Fund Solutions Credit Total AUM increased 11% year-over-year to $343.7 billion driven by $80.2 billion from gross inflows.
• Each segment experienced growth despite $48.2 billion of capital returned to investors during the year.
• Real Estate ended the quarter with $101.1 billion Total AUM, making it Blackstone’s first segment to surpass
the $100
billion threshold.
Fee-Earning AUM of $244.5 billion was up 9%
year-over-year as $59.8 billion of gross inflows significantly outpaced $35.7 billion of realizations and outflows. Assets Under Management $53.4 $59.3 $62.1 $55.6 $64.1 $64.8 $53.5 $50.8 $67.3 $41.2 $49.3 $50.2 1Q'14 1Q'15 1Q'16 $310.5 $343.7 $203.6 $223.5 $244.5 |
 Blackstone 8 $11.5 $14.5 $25.1 $116.0 $150.8 $121.4 $25.3 $13.9 $50.4 $44.5 $60.6 $85.6 1Q'14 1Q'15 1Q'16 Additional Capital Detail Undrawn capital (“Total Dry Powder”) was $88.6 billion, up 37% year-over-year, driven by recent fundraises for the latest global private equity and real estate funds. Performance Fee Eligible AUM reached $257.4 billion at quarter end, up 14% year-over-year, despite significant realizations in the Real Estate and Private Equity segments. • Consistently strong fundraising drove a 41% year-over-year increase in Performance Fee Eligible assets not yet invested to $85.6 billion. Uninvested Not Currently Earning Performance Fees Currently Earning Performance Fees Private Equity Real Estate Hedge Fund Solutions Credit $89 billion 1Q’16 Total Dry Powder $257 billion Performance Fee Eligible AUM $53 billion Not Currently Earning Management Fees $225.4 $257.4 $185.8 Credit Hedge Fund Solutions Real Estate Private Equity $52.8 $39.0 $31.2 $4.1 $14.2 |
 Blackstone 9 $3.11 $4.17 $2.70 $2.42 $2.09 $1.89 $1.67 $2.68 $2.80 1Q'14 1Q'15 1Q'16 At March 31, 2016, Blackstone had $3.3 billion in total cash and corporate treasury investments and $8.8 billion of total net value, or $7.39 per unit. Blackstone has no net debt, a $1.1 billion undrawn credit revolver and maintained A+/A+ ratings. Balance Sheet Highlights Balance Sheet Highlights are preliminary, and exclude the consolidated Blackstone funds. Investments include Blackstone investments in
Private Equity, Real Estate, Hedge Fund Solutions,
and Credit, which were $793 million, $1.1 billion, $128 million, and $260 million, respectively, as of March 31, 2016, $1.0 billion, $1.3 billion, $131 million, and $239 million, respectively, as of March 31, 2015 and $1.1 billion, $1.5 billion, $118 million, and $253 million, respectively, as of March 31, 2014. Cash and Investments per unit amounts are calculated using period end DE Units Outstanding (see page 29, Unit Rollforward).
(Dollars in Millions)
1Q’16 Cash and Cash Equivalents $ 1,373 Treasury Cash Management Strategies 1,954 Investments 2,243 Net Accrued Performance Fees 3,212 Total Net Value $ 8,782 Outstanding Bonds (at par) $ 2,825 A+/A+ rated by S&P and Fitch $1.1 billion undrawn credit revolver with May 2019 maturity $3.3 billion total cash and corporate treasury Net Performance Fees Total Cash and Corporate Treasury Investments $7.39 $8.94 $7.20 Cash and Investments (Per Unit) |
 Blackstone 10 $458 $1,483 $754 $201 $797 $889 1Q'14 LTM 1Q'15 LTM 1Q'16 LTM $246 $2,424 $2,648 $2,127 $820 $2,027 $1,000 1Q'14 1Q'15 1Q'16 Net Accrued Performance Fees were $3.2 billion ($2.70/unit) despite high Net Realized Performance Fees of $1.8 billion over the last twelve months. • Realized 36% of the $4.9 billion Net Accrued Performance Fees balance from one year prior. Performance Fees Net Realized Performance Fees (Dollars in Millions) $2,505 $1,775 $956 Net Accrued Performance Fees (Dollars in Millions) $4,910 $3,212 $3,546 Private Equity Real Estate Credit Hedge Fund Solutions $3.2 billion Net Accrued Performance Fees 56% Net Accrued Performance Fees Related to Publics/Pending Exits $1.8 billion 1Q’16 LTM Net Realized Performance Fees Net Accrued Performance Fees per unit is calculated using period end DE Units Outstanding (see page 29, Unit Rollforward).
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 Blackstone 11 GAAP Statement of Operations % Change % Change (Dollars in Thousands, Except per Unit Data) (Unaudited) 1Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Revenues Management and Advisory Fees, Net 616,768 $ 608,906 $ (1)% 2,540,860 $ 2,534,643 $ (0)% Performance Fees Realized Carried Interest 1,207,594 230,909 (81)% 3,324,053 2,228,605 (33)% Realized Incentive Fees 29,638 28,419 (4)% 234,849 192,019 (18)% Unrealized Carried Interest 373,840 47,586 (87)% 1,748,370 (1,921,428) n/m Unrealized Incentive Fees 62,036 7,579 (88)% (31,946) (61,145) 91% Total Performance Fees 1,673,108 314,493 (81)% 5,275,326 438,051 (92)% Investment Income (Loss) Realized 187,930 (12,001) n/m 558,639 355,240 (36)% Unrealized 18,273 3,493 (81)% 15,038 (365,309) n/m Total Investment Income (Loss) 206,203 (8,508) n/m 573,677 (10,069) n/m Interest and Dividend Revenue 21,920 23,075 5% 77,660 96,112 24% Other (5,641) (5,612) (1)% 2,895 7,811 170% Total Revenues 2,512,358 932,354 (63)% 8,470,418 3,066,548 (64)% Expenses Compensation and Benefits Compensation 559,559 346,003 (38)% 1,943,076 1,512,635 (22)% Performance Fee Compensation Realized Carried Interest 292,248 58,504 (80)% 958,493 560,057 (42)% Realized Incentive Fees 12,227 14,124 16% 98,691 87,842 (11)% Unrealized Carried Interest 74,380 30,001 (60)% 412,687 (357,075) n/m Unrealized Incentive Fees 24,961 3,448 (86)% (17,846) (24,003) 35% Total Compensation and Benefits 963,375 452,080 (53)% 3,395,101 1,779,456 (48)% General, Administrative and Other 130,973 123,045 (6)% 544,882 568,175 4% Interest Expense 31,370 37,356 19% 128,227 150,508 17% Fund Expenses 16,850 5,229 (69)% 42,363 67,878 60% Total Expenses 1,142,568 617,710 (46)% 4,110,573 2,566,017 (38)% Other Income Reversal of Tax Receivable Agreement Liability - - n/m - 82,707 n/m Net Gains from Fund Investment Activities 93,555 19,142 (80)% 381,254 101,951 (73)% Income Before Provision for Taxes 1,463,345 $ 333,786 $ (77)% 4,741,099 $ 685,189 $ (86)% Provision for Taxes 99,344 18,866 (81)% 336,420 109,920 (67)% Net Income 1,364,001 $ 314,920 $ (77)% 4,404,679 $ 575,269 $ (87)% Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
7,527 (6,401) n/m 36,529 (2,783) n/m Net Income Attributable to Non-Controlling Interests in Consolidated Entities
81,796 40,086 (51)% 372,905 178,190 (52)% Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
645,230 131,202 (80)% 2,046,825 169,488 (92)% Net Income Attributable to The Blackstone Group L.P. ("BX") 629,448 $ 150,033 $ (76)% 1,948,420 $ 230,374 $ (88)% Net Income per Common Unit, Basic 1.01 $
0.23 $
(77)% 3.17 $
0.36 $
(89)% Net Income per Common Unit, Diluted 1.00 $
0.23 $
(77)% 3.14 $
0.28 $
(91)% |
 Appendix |
 Blackstone 13 Total Segments (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Management and Advisory Fees, Net Base Management Fees 516,397 $
516,492 $
564,287 $
599,407 $
586,703 $
2,027,048 $ 2,266,889 $ Advisory Fees 84,238 76,998 146,153 742 481
435,120 224,374 Transaction and Other Fees, Net
37,073 11,728 32,403 72,481 46,118 223,600 162,730 Management Fee Offsets
(17,945) (18,434) (34,176) (22,939) (20,101) (88,072) (95,650) Total Management and Advisory Fees, Net
619,763 586,784 708,667 649,691 613,201 2,597,696 2,558,343 Performance Fees
Realized Carried Interest
1,207,594 937,483 435,189 625,610 230,909 3,324,567 2,229,191 Realized Incentive Fees
29,670 47,819 34,785 82,472 28,450 237,578 193,526 Unrealized Carried Interest
373,852 (441,949) (1,055,977) (471,222) 47,606 1,752,525 (1,921,542) Unrealized Incentive Fees 62,620 26,311 (53,346) (42,834) 7,100 (28,071) (62,769) Total Performance Fees
1,673,736 569,664 (639,349) 194,026 314,065 5,286,599 438,406 Investment Income (Loss)
Realized 107,792 136,497 87,526 86,993 (10,101) 539,300 300,915 Unrealized 81,849 (125,723) (223,657) (98,428) (16,549) 5,502 (464,357) Total Investment Income (Loss)
189,641 10,774 (136,131) (11,435) (26,650) 544,802 (163,442) Interest Income and Dividend Revenue
30,451 31,026 35,459 34,665 35,081 104,433 136,231 Other (4,872) 3,973 (841) 10,240
(6,248)
3,664
7,124
Total
Revenues 2,508,719
1,202,221
(32,195)
877,187
929,449
8,537,194
2,976,662
Expenses
Compensation 329,838 289,352 329,575 240,454 287,403 1,176,804 1,146,784 Performance Fee Compensation
Realized Carried Interest
292,248 238,032 97,799 165,721 58,503 958,493 560,055 Realized Incentive Fees
12,227 21,837 15,061 36,821 14,123 98,691 87,842 Unrealized Carried Interest
74,380 (50,559) (228,697) (107,820) 30,001 412,727 (357,075) Unrealized Incentive Fees
24,961 6,131 (14,642) (18,940) 3,448 (17,846) (24,003) Total Compensation and Benefits
733,654 504,793 199,096 316,236 393,478 2,628,869 1,413,603 Other Operating Expenses
143,282 168,401 157,565 155,109 148,526 557,290 629,601 Total Expenses 876,936 673,194 356,661 471,345 542,004 3,186,159 2,043,204 Economic Income (Loss)
1,631,783 $ 529,027 $
(388,856) $
405,842 $
387,445 $
5,351,035 $ 933,458 $
Economic Net Income (Loss)
1,622,064 $ 508,440 $
(415,926) $
435,691 $
370,651 $
5,153,116 $ 898,856 $
Fee Related Earnings
180,624 $
178,441 $
265,667 $
310,879 $
219,456 $
1,008,576 $ 974,443 $
Distributable Earnings
1,240,207 $ 1,033,920 $ 691,534 $
878,027 $
387,967 $
3,825,519 $ 2,991,448 $ Total Assets Under Management 310,451,289 $ 332,723,546 $ 333,925,521 $ 336,384,575 $ 343,705,462 $ 310,451,289 $ 343,705,462 $ Fee-Earning Assets Under Management 223,511,700 $ 239,342,214 $ 240,939,356 $ 246,146,372 $ 244,452,764 $ 223,511,700 $ 244,452,764 $ Weighted Average Fee-Earning AUM 218,241,987 $ 237,576,488 $ 239,786,680 $ 242,942,380 $ 244,891,488 $ 216,244,401 $ 251,213,289 $ LP Capital Invested 4,765,536 $ 4,814,362 $ 6,145,446 $ 14,779,702 $ 6,515,571 $ 24,666,510 $ 32,255,081 $ Total Capital Invested 5,052,370 $ 5,048,058 $ 6,507,371 $ 15,747,511 $ 6,693,375 $ 26,620,667 $ 33,996,315 $ |
 Blackstone 14 Private Equity (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Management Fees, Net Base Management Fees 108,383 $
121,918 $
128,452 $
143,887 $
130,648 $
425,640 $
524,905 $
Advisory Fees 2,429 4,843 2,547 742 481
21,990 8,613 Transaction and Other Fees, Net
20,359 (11,842) 9,359 18,382 8,439 113,230 24,338 Management Fee Offsets
(4,949) (9,028) (12,262) (10,521) (6,848) (22,382) (38,659) Total Management Fees, Net
126,222 105,891 128,096 152,490 132,720 538,478 519,197 Performance Fees
Realized Carried Interest
382,978 546,575 214,532 330,902 30,282 1,017,575 1,122,291 Unrealized Carried Interest
566,822 (305,573) (809,363) (169,841) 73,875 1,622,585 (1,210,902) Total Performance Fees 949,800 241,002 (594,831) 161,061 104,157 2,640,160 (88,611) Investment Income (Loss)
Realized 44,816 50,258 46,917 47,658 (15,357) 187,000 129,476 Unrealized 31,487 (22,301) (110,689) (14,835) 15,440 16,606 (132,385) Total Investment Income (Loss)
76,303 27,957 (63,772) 32,823 83 203,606
(2,909)
Interest Income and Dividend
Revenue 7,618
7,669
8,119
9,812
9,849
24,381
35,449
Other
(1,825) 2,515 471 4,693
(1,587)
3,880
6,092
Total
Revenues 1,158,118
385,034
(521,917)
360,879
245,222
3,410,505
469,218
Expenses
Compensation 71,072 68,106 70,419 70,651 80,274 277,450 289,450 Performance Fee Compensation
Realized Carried Interest
39,482 106,502 16,303 94,635 15,427 220,104 232,867 Unrealized Carried Interest
178,120 (25,574) (141,448) (21,270) 9,296 415,714 (178,996) Total Compensation and Benefits
288,674 149,034 (54,726) 144,016 104,997 913,268 343,321 Other Operating Expenses
38,875 62,571 43,812 53,900 48,063 149,240 208,346 Total Expenses 327,549 211,605 (10,914) 197,916 153,060 1,062,508 551,667 Economic Income (Loss)
830,569 $
173,429 $
(511,003) $
162,963 $
92,162 $
2,347,997 $ (82,449) $
Total Assets Under Management
76,327,189 $ 92,026,337 $ 91,490,669 $ 94,280,074 $ 95,466,227 $ 76,327,189 $ 95,466,227 $ Fee-Earning Assets Under Management 49,342,211 $ 49,537,189 $ 50,560,404 $ 51,451,196 $ 50,228,312 $ 49,342,211 $ 50,228,312 $ Weighted Average Fee-Earning AUM 45,051,839 $ 49,925,744 $ 50,268,174 $ 51,185,170 $ 51,240,819 $ 46,107,237 $ 52,093,539 $ LP Capital Invested 2,374,599 $ 1,800,854 $ 1,535,702 $ 4,508,023 $ 1,865,698 $ 9,968,853 $ 9,710,277 $ Total Capital Invested 2,517,769 $ 1,949,748 $ 1,677,876 $ 5,270,078 $ 1,974,391 $ 11,443,494 $ 10,872,093 $ |
 Blackstone 15 Real Estate (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Management Fees, Net Base Management Fees 152,348 $
140,743 $
175,710 $
199,774 $
199,907 $
621,514 $
716,134 $
Transaction and Other Fees, Net
15,216 21,510 21,390 52,461 35,794 93,262 131,155 Management Fee Offsets
(4,866) (5,428) (10,147) (6,399) (3,595) (30,085) (25,569) Total Management Fees, Net
162,698 156,825 186,953 245,836 232,106 684,691 821,720 Performance Fees
Realized Carried Interest
811,249 363,983 169,051 290,450 200,627 2,104,353 1,024,111 Realized Incentive Fees
723 1,220
3,879
11,331
4,069
12,248
20,499
Unrealized Carried
Interest (181,019)
(188,608)
(128,854)
(182,061)
(11,522)
202,790
(511,045)
Unrealized Incentive Fees
6,069 3,935 2,784 8,014 9,765 (2,189) 24,498 Total Performance Fees
637,022 180,530 46,860 127,734 202,939 2,317,202 558,063 Investment Income (Loss)
Realized 71,344 85,432 39,821 38,985 12,975 349,082 177,213 Unrealized 37,510 (107,691) (95,382) (66,326) (2,137) (26,799) (271,536) Total Investment Income (Loss)
108,854 (22,259) (55,561) (27,341) 10,838 322,283 (94,323) Interest Income and Dividend Revenue
9,997 10,259 11,057 12,677 13,188 34,084 47,181 Other (3,977) 1,077 (938) 2,416
(1,909)
(1,431)
646
Total Revenues 914,594 326,432 188,371 361,322 457,162 3,356,829 1,333,287 Expenses Compensation 84,834 79,484 99,255 94,808 100,578 330,918 374,125 Performance Fee Compensation
Realized Carried Interest
246,496 116,168 52,546 68,827 43,076 627,659 280,617 Realized Incentive Fees
356 671
1,838 5,813 2,133 6,352 10,455 Unrealized Carried Interest
(98,084) (50,559) (23,018) (24,686) 27,703 42,105 (70,560) Unrealized Incentive Fees
2,575 230 5,215
797
4,158 (1,558) 10,400 Total Compensation and Benefits
236,177 145,994 135,836 145,559 177,648 1,005,476 605,037 Other Operating Expenses
40,143 43,346 42,050 53,636 48,097 153,119 187,129 Total Expenses 276,320 189,340 177,886 199,195 225,745 1,158,595 792,166 Economic Income
638,274 $
137,092 $
10,485 $
162,127 $
231,417 $
2,198,234 $ 541,121 $
Total Assets Under Management
92,785,658 $ 91,578,634 $ 93,187,556 $ 93,917,824 $ 101,107,528 $ 92,785,658 $ 101,107,528 $ Fee-Earning Assets Under Management 50,783,247 $ 62,683,857 $ 64,858,622 $ 67,345,357 $ 67,298,439 $ 50,783,247 $ 67,298,439 $ Weighted Average Fee-Earning AUM 51,671,739 $ 60,939,868 $ 63,492,663 $ 65,356,567 $ 66,943,268 $ 53,085,887 $ 72,387,238 $ LP Capital Invested 1,443,163 $ 2,963,609 $ 4,118,952 $ 7,733,638 $ 3,747,181 $ 10,986,073 $ 18,563,380 $ Total Capital Invested 1,405,603 $ 3,035,837 $ 4,326,151 $ 7,835,881 $ 3,820,460 $ 11,189,295 $ 19,018,329 $ |
 Blackstone 16 Hedge Fund Solutions (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Management Fees, Net Base Management Fees 130,637 $
130,216 $
133,592 $
129,941 $
130,158 $
500,234 $
523,907 $
Transaction and Other Fees, Net
25 -
219 73
543 501
835 Management Fee Offsets
(280) (608)
(507) 1,566
-
(3,839) 451 Total Management Fees, Net
130,382 129,608 133,304 131,580 130,701 496,896 525,193 Performance Fees
Realized Incentive Fees
10,516 16,915 2,783 37,983 2,684 111,200 60,365 Unrealized Carried Interest
- 8,014
(5,394)
(599)
32 -
2,053 Unrealized Incentive Fees
47,427 15,855 (29,711) (41,655) (2,935) 28,463 (58,446) Total Performance Fees
57,943 40,784 (32,322) (4,271) (219) 139,663
3,972
Investment Income
(Loss) Realized
(10,375) (1,757) (468) (141)
(4,745) (5,645) (7,111) Unrealized 4,483 2,032 (6,411) (1,539) (12,291) 5,184 (18,209) Total Investment Income (Loss)
(5,892) 275 (6,879)
(1,680)
(17,036)
(461)
(25,320) Interest Income and Dividend Revenue
3,949 3,970 4,136 5,219 5,296 12,402 18,621 Other (1,607) 459 (66)
1,414 (1,388) 126 419
Total Revenues 184,775 175,096 98,173 132,262 117,354 648,626 522,885 Expenses Compensation 56,104 45,841 44,408 33,131 54,169 147,191 177,549 Performance Fee Compensation
Realized Incentive Fees
3,470 8,711 (436) 15,410
1,863
32,650
25,548
Unrealized Carried
Interest -
4,077 (3,041) (213) -
- 823
Unrealized Incentive Fees
15,651 3,764 (7,011) (15,316) (1,195) 8,617 (19,758) Total Compensation and Benefits
75,225 62,393 33,920 33,012 54,837 188,458 184,162 Other Operating Expenses
21,206 20,499 24,147 24,220 26,146 87,855 95,012 Total Expenses 96,431 82,892 58,067 57,232 80,983 276,313 279,174 Economic Income
88,344 $
92,204 $
40,106 $
75,030 $
36,371 $
372,313 $
243,711 $
Total Assets Under Management
66,378,908 $ 67,829,866 $ 68,405,948 $ 69,105,425 $ 68,475,416 $ 66,378,908 $ 68,475,416 $ Fee-Earning Assets Under Management 64,114,498 $ 65,512,170 $ 65,182,338 $ 65,665,439 $ 64,831,253 $ 64,114,498 $ 64,831,253 $ Weighted Average Fee-Earning AUM 62,910,553 $ 65,453,883 $ 65,782,066 $ 65,802,335 $ 65,123,126 $ 59,945,488 $ 65,763,940 $ LP Capital Invested 133,351 $
2,131 $
66,427 $
41,332 $
315,757 $
820,309 $
425,647 $
Total Capital Invested
139,223 $
2,136 $
71,132 $
39,877 $
329,793 $
835,106 $
442,938 $ |
 Blackstone 17 Credit (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Management Fees, Net Base Management Fees 125,029 $
123,615 $
126,533 $
125,805 $
125,990 $
479,660 $
501,943 $
Transaction and Other Fees, Net
1,457 2,060 1,289 1,565 1,342 16,274 6,256 Management Fee Offsets
(7,850) (3,370) (11,260) (7,585) (9,658) (31,766) (31,873) Total Management Fees, Net
118,636 122,305 116,562 119,785 117,674 464,168 476,326 Performance Fees
Realized Carried Interest
13,367 26,925 51,606 4,258 - 202,639
82,789
Realized Incentive
Fees 18,431
29,684
28,123
33,158
21,697
114,130
112,662
Unrealized Carried Interest
(11,951) 44,218 (112,366) (118,721) (14,779) (72,850) (201,648) Unrealized Incentive Fees
9,124 6,521 (26,419) (9,193) 270 (54,345)
(28,821)
Total Performance Fees
28,971 107,348 (59,056) (90,498) 7,188 189,574 (35,018) Investment Income (Loss)
Realized 2,237 2,723 1,735 491 (2,974)
8,520
1,975
Unrealized
6,887 2,760 (10,177) (15,728) (17,561) 8,863 (40,706) Total Investment Income (Loss)
9,124 5,483 (8,442) (15,237) (20,535) 17,383 (38,731) Interest Income and Dividend Revenue
5,651 5,938 6,053 6,957 6,748 22,830 25,696 Other 3,493 34 (73)
1,717 (1,364) 1,442 314 Total Revenues
165,875 241,108 55,044 22,724 109,711 695,397 428,587 Expenses Compensation 49,877 47,124 51,324 41,864 52,382 187,325 192,694 Performance Fee Compensation
Realized Carried Interest
6,270 15,362 28,950 2,259 - 110,730
46,571
Realized Incentive
Fees 8,401
12,455
13,659
15,598
10,127
59,689
51,839
Unrealized Carried
Interest (5,656)
21,497
(61,190)
(61,651)
(6,998)
(45,092)
(108,342)
Unrealized Incentive Fees
6,735 2,137 (12,846) (4,421) 485 (24,905)
(14,645)
Total Compensation and
Benefits 65,627
98,575
19,897
(6,351)
55,996
287,747
168,117
Other Operating Expenses
21,836 23,539 24,898 23,353 26,220 79,521 98,010 Total Expenses 87,463 122,114 44,795 17,002 82,216 367,268 266,127 Economic Income
78,412 $
118,994 $
10,249 $
5,722 $
27,495 $
328,129 $
162,460 $
Total Assets Under Management
74,959,534 $ 81,288,709 $ 80,841,348 $ 79,081,252 $ 78,656,291 $ 74,959,534 $ 78,656,291 $ Fee-Earning Assets Under Management 59,271,744 $ 61,608,998 $ 60,337,992 $ 61,684,380 $ 62,094,760 $ 59,271,744 $ 62,094,760 $ Weighted Average Fee-Earning AUM 58,607,856 $ 61,256,993 $ 60,243,777 $ 60,598,308 $ 61,584,275 $ 57,105,789 $ 60,968,572 $ LP Capital Invested 814,423 $
47,768 $
424,365 $
2,496,709 $ 586,935 $
2,891,275 $ 3,555,777 $ Total Capital Invested 989,775 $
60,337 $
432,212 $
2,601,675 $ 568,731 $
3,152,772 $ 3,662,955 $ |
 Blackstone 18 Financial Advisory Note: On October 1,
2015, Blackstone spun-off its Financial Advisory businesses, which did not include Blackstone's capital markets services
business. The results of Blackstone’s capital markets services business have been reclassified from the Financial Advisory segment to the Private Equity segment. All prior
periods have been recast to reflect this
reclassification.
(Dollars in Thousands)
1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Revenues Advisory Fees 81,809 $
72,155 $
143,606 $
- $
-
$
413,130 $
215,761 $
Transaction and Other Fees, Net
16 -
146 -
- 333
146 Total Advisory and Transaction Fees
81,825 72,155 143,752 - -
413,463 215,907 Investment Income (Loss)
Realized (230) (159)
(479) -
- 343
(638) Unrealized
1,482 (523) (998)
- -
1,648 (1,521) Total Investment Income (Loss)
1,252 (682) (1,477)
-
- 1,991
(2,159)
Interest Income and Dividend
Revenue 3,236
3,190
6,094
-
- 10,736
9,284
Other
(956) (112)
(235) -
- (353)
(347) Total Revenues
85,357 74,551 148,134 - -
425,837 222,685 Expenses Compensation 67,951 48,797 64,169 - -
233,920 112,966 Total Compensation and Benefits
67,951 48,797 64,169 - -
233,920 112,966 Other Operating Expenses
21,222 18,446 22,658 - -
87,555 41,104 Total Expenses 89,173 67,243 86,827 - -
321,475 154,070 Economic Income (Loss)
(3,816) $
7,308 $
61,307 $
- $
-
$
104,362 $
68,615 $ |
 Blackstone 19 Unitholder Distribution A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on page 30, Definitions and Distribution Policy. 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. Per
Unit calculations are based on end of period Total Common Units Outstanding (page 29, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. For the periods presented, Net Cash
Available for Distribution per Common Unit equals the Actual Distribution per Common Unit. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common unitholders’ share was $32.2 million for 1Q’16 and $247.8 million for 1Q’16 LTM. Generated $0.33 of Distributable Earnings per common unit during the quarter, down 69% compared to the same period last year. Declared a quarterly distribution of $0.28 per common unit to record holders as of May 2, 2016; payable on May 9, 2016. % Change % Change (Dollars in Thousands, Except per Unit Data) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 vs. 1Q'15 1Q'15 LTM 1Q'16 LTM vs. 1Q'15 LTM Distributable Earnings (“DE”) 1,240,207 $ 1,033,920 $ 691,534 $ 878,027 $ 387,967 $ (69)% 3,825,519 $ 2,991,448 $ (22)% Add: Other Payables Attributable to Common Unitholders 7,288 - - 26,918 - (100)% 194,856 26,918 (86)% DE before Certain Payables 1,247,495 1,033,920 691,534 904,945 387,967 (69)% 4,020,375 3,018,366 (25)% Percent to Common Unitholders 53% 54% 54% 54% 54% 53% 54% DE before Certain Payables Attributable to Common Unitholders 663,608 554,120 370,902 487,075 210,286 (68)% 2,135,330 1,622,383 (24)% Less: Other Payables Attributable to Common Unitholders (7,288) - - (26,918) - (100)% (194,856) (26,918) (86)% DE Attributable to Common Unitholders 656,320 554,120 370,902 460,157 210,286 (68)% 1,940,474 1,595,465 (18)% DE per Common Unit 1.05 $ 0.88 $ 0.58 $ 0.72 $ 0.33 $ (69)% 3.16 $ 2.51 $ (21)% Less: Retained Capital per Common Unit (0.16) $ (0.14) $ (0.09) $ (0.11) $ (0.05) $ (69)% (0.50) $ (0.39) $ (22)% Actual Distribution per Common Unit 0.89 $ 0.74 $ 0.49 $ 0.61 $ 0.28 $ (69)% 2.66 $ 2.12 $ (20)% Record Date May 2, 2016 Payable Date May 9, 2016 |
 Blackstone 20 1Q’16 Total AUM Rollforward (Dollars in Millions) 1Q’16 LTM Total AUM Rollforward (Dollars in Millions) Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent
redemptions, client withdrawals and other decreases in available
capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations. Total Assets Under Management Private Equity Real Estate Hedge Fund Solutions Credit Inflows: Fifth European opportunistic fund ($5.2 billion); third mezzanine debt fund ($1.7 billion); BREP co-investment ($842 million); BPP U.S. ($555 million). Realizations: BREP Global and European opportunistic platforms ($1.9 billion); BREP
co-investment ($1.1 billion) and BREDS
($328
million).
Market Activity:
Carrying value increases of 1.8% and 4.4% within the
opportunistic and core+ platforms, respectively.
Inflows: Individual investor and
specialized solutions ($1.5 billion); customized solutions ($950 million); additional close of BAAM’s third
seeding vehicle ($400 million); commingled products ($362
million). Market Activity:
BAAM’s Principal Solutions Composite down 2.9% gross (3.1%
net) during the quarter. Inflows: CLOs ($528 million); BDCs ($507 million); long only products ($462 million). Outflows: Primarily driven by investor liquidity
needs, shift in investor sentiment on credit and de-leveraging of the BDC funds. Inflows: Strategic Partners ($1.8 billion); BCP VII ($899 million); Core Private Equity
($670 million); Tactical Opportunities ($327 million); reduced by allocations of multi-strategy capital to Blackstone funds ($671 million).
Realizations: BCP V ($1.4
billion); Strategic Partners ($352 million).
Private Real Hedge Fund Equity Estate Solutions 4Q'15 94,280 $ 93,918 $ 69,105 $ 79,081 $ 336,385 $ Inflows 2,989 9,057 3,181 1,864 17,090 Outflows (261) (268) (1,632) (1,385) (3,545) Realizations (2,119) (3,451) (151) (885) (6,606) Net Inflows (Outflows) 608 5,339 1,398 (406) 6,939 Market Activity 578 1,851 (2,028) (19) 382 1Q'16 95,466 $ 101,108 $ 68,475 $ 78,656 $ 343,705 $ QoQ Increase (Decrease) 1% 8% (1)% (1)% 2% Credit Total Private Real Hedge Fund Equity Estate Solutions 1Q'15 76,327 $ 92,786 $ 66,379 $ 74,960 $ 310,451 $ Inflows 30,153 20,170 11,138 18,724 80,185 Outflows (642) (442) (5,916) (5,673) (12,673) Realizations (12,299) (15,312) (680) (7,246) (35,536) Net Inflows 17,212 4,416 4,543 5,805 31,976 Market Activity 1,927 3,906 (2,446) (2,108) 1,279 1Q'16 95,466 $ 101,108 $ 68,475 $ 78,656 $ 343,705 $ YoY Increase 25% 9% 3% 5% 11% Credit Total |
 Blackstone 21 Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent
redemptions, client withdrawals and other decreases in available
capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations. 1Q’16 Fee-Earning AUM Rollforward (Dollars in Millions) 1Q’16 LTM Fee-Earning AUM Rollforward (Dollars in Millions) Private Equity Real Estate Hedge Fund Solutions Credit Inflows: BREP co-investment ($710 million); BREDS ($560 million).
Realizations: $1.4 billion across BREP platform including co-investment; $658 million in BREDS. Inflows: Individual investor and specialized solutions ($1.5 billion); customized solutions ($950 million); commingled products ($362 million). Outflows: Driven by investors’ liquidity needs and certain strategic shifts in their programs.
Inflows: BDCs ($507 million); CLOs ($500 million); long only products ($493 million). Outflows: Primarily driven by investor liquidity needs, shift in investor sentiment on credit and de-leveraging of the BDC funds. Inflows: Strategic Partners ($584 million); Tactical Opportunities ($288 million); reduced by allocations of multi-strategy capital to Blackstone funds ($368 million). Realizations: BCP V ($982 million); Strategic Partners ($214 million).
Fee-Earning Assets Under Management
Private Real Hedge Fund Equity Estate Solutions 4Q'15 51,451 $ 67,345 $ 65,665 $ 61,684 $ 246,146 $ Inflows 558 1,592 2,852 2,331 7,333 Outflows (371) (37) (1,603) (1,107) (3,117) Realizations (1,288) (2,120) (146) (723) (4,277) Net Inflows (Outflows) (1,100) (565) 1,103 501 (61) Market Activity (123) 518 (1,937) (90) (1,632) 1Q'16 50,228 $ 67,298 $ 64,831 $ 62,095 $ 244,453 $ QoQ Increase (Decrease) (2)% (0)% (1)% 1% (1)% Credit Total Private Real Hedge Fund Equity Estate Solutions 1Q'15 49,342 $ 50,783 $ 64,114 $ 59,272 $ 223,512 $ Inflows 6,794 27,846 9,448 15,668 59,755 Outflows (780) (4,170) (5,766) (5,035) (15,752) Realizations (5,148) (8,139) (641) (6,027) (19,955) Net Inflows 866 15,537 3,041 4,605 24,048 Market Activity 20 978 (2,324) (1,782) (3,107) 1Q'16 50,228 $ 67,298 $ 64,831 $ 62,095 $ 244,453 $ YoY Increase 2% 33% 1% 5% 9% Credit Total |
 Blackstone 22 Net Accrued Performance Fees $3.2 billion Net Accrued Performance Fees at 1Q’16 $2.70 per unit Net Accrued Performance Fees at 1Q’16 36% of 1Q’15 Net Accrued Performance Fees realized in 1Q’16 LTM (Dollars in Millions, Except per Unit Data) 4Q'15 1Q'16 1Q'16 Per Unit QoQ Change Private Equity BCP IV Carried Interest 144 $
155
$
0.13
$
11
$
BCP V
Carried Interest 288
358 0.30 70 BCP VI Carried Interest 359 340 0.29 (19) BEP Carried Interest 48 46 0.04 (2) Tactical Opportunities Carried Interest 52 56 0.05 4 BTAS Carried Interest 3 5 - 2 Strategic Partners Carried Interest 36 38 0.03 2 Other Carried Interest 1 2 - 1 Total Private Equity 931 $
1,000
$
0.84
$
69
$
Real
Estate BREP IV Carried Interest
20 11 0.01 (9) BREP V Carried Interest 497 417 0.35 (80) BREP VI Carried Interest 628 636 0.54 8 BREP VII Carried Interest 608 570 0.48 (38) BREP VIII Carried Interest 7 34 0.03 27 BREP Europe III Carried Interest 186 181 0.15 (5) BREP Europe IV Carried Interest 121 126 0.11 5 BREP Asia Carried Interest 54 68 0.06 14 BPP Carried Interest 28 41 0.03 13 BPP Incentive Fees 12 18 0.02 6 BREDS Carried Interest 12 16 0.01 4 BREDS Incentive Fees 6 2 - (4) Asia Platform Incentive Fees 7 7 0.01 - Total Real Estate 2,186 $
2,127 $
1.79 $
(59) $
Hedge
Fund Solutions Incentive Fees 38 5 - (33) Total Hedge Fund Solutions 38 $
5
$
- $
(33)
$
Credit Carried Interest 77 66 0.06 (11) Incentive Fees 19 14 0.01 (5) Total Credit 96 $
80
$
0.07 $
(16) $
Total Blackstone
Carried Interest
3,169 3,166 2.67 (3) Incentive Fees 82 46 0.04 (36) Net Accrued Performance Fees 3,251 $
3,212 $
2.70 $
(39) $
Memo: Net Realized Performance Fees
89 $
28
$
0.02 $
(61) $
Net Accrued Performance Fees are presented net of performance fee
compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized Performance Fees are included in DE. Net Realized Performance Fees represents Performance Fees realized, but not yet distributed as of
the reporting date and included in the Net Accrued Performance
Fee balance. When these fees are received, the receivable is reduced without further impacting DE. Per Unit calculations are based on end of period DE Units Outstanding (see page 29, Unit Rollforward). |
 Blackstone 23 Investment Records as of March 31, 2016 (a) Continued... Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total 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) 2,137,330 126,093 116,658 1.7x 66% 2,851,514 1.4x 2,968,172 1.4x 7% 6% BCP IV (Nov 2002 / Dec 2005) 6,773,182 219,136 2,160,727 1.3x 31% 18,951,775 3.2x 21,112,502 2.8x 43% 36% BCP V (Dec 2005 / Jan 2011) 21,025,507 1,261,736 10,330,979 1.6x 76% 27,296,433 2.0x 37,627,412 1.9x 10% 8% BCP VI (Jan 2011 / Jan 2017) 15,188,733 2,797,578 14,976,100 1.3x 24% 2,044,675 1.9x 17,020,775 1.3x 50% 10% BEP (Aug 2011 / Feb 2015) 2,439,112 183,562 2,713,693 1.3x 25% 539,548 2.0x 3,253,241 1.4x 57% 14% BEP II (Feb 2015 / Feb 2021) 4,951,351 4,875,450 22,908 1.0x - - n/a 22,908 1.0x n/a n/a BCP VII (TBD) 18,898,630 18,898,630 - n/a - - n/a - n/a n/a n/a Total Corporate Private Equity 77,601,448 $ 28,362,185 $ 30,321,065 $ 1.4x 42% 65,867,190 $ 2.3x 96,188,255 $ 1.9x 19% 15% Tactical Opportunities 13,287,442 6,765,473 7,328,776 1.1x 7% 1,296,745 1.5x 8,625,521 1.2x 31% 10% Strategic Partners I-V and Co-Investment 12,156,390 2,356,537 3,991,432 2.9x - 13,110,144 1.3x 17,101,576 1.5x n/a 14% Strategic Partners VI LBO, RE and SMA (e) 6,737,766 1,653,078 3,567,570 n/m - 432,994 n/m 4,000,564 1.4x n/a 44% Strategic Partners VII 1,511,972 1,511,972 - n/a - - n/a - n/a n/a n/a BCEP (f) 669,500 669,500 - n/a - - n/a - n/a n/a n/a Other Funds and Co-Investment (g) 2,343,637 620,141 1,409,258 1.1x 33% 228,347 1.3x 1,637,605 1.1x n/a n/a Total Private Equity 114,308,155 $ 41,938,886 $ 46,618,101 $ 1.4x 30% 80,935,420 $ 2.0x 127,553,521 $ 1.7x 19% 15% Real Estate Dollar 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 - 2,531,613 2.1x 2,531,613 2.1x 19% 19% BREP III (Apr 1999 / Apr 2003) 1,522,708 - - n/a - 3,336,402 2.4x 3,336,402 2.4x 21% 21% BREP IV (Apr 2003 / Dec 2005) 2,198,694 - 653,847 0.7x 14% 3,900,697 2.2x 4,554,544 1.7x 40% 13% BREP V (Dec 2005 / Feb 2007) 5,539,418 - 3,938,344 2.2x 31% 8,899,153 2.2x 12,837,497 2.2x 13% 11% BREP VI (Feb 2007 / Aug 2011) 11,059,523 579,112 7,608,688 2.2x 68% 17,951,460 2.4x 25,560,148 2.3x 15% 13% BREP VII (Aug 2011 /Apr 2015) 13,491,598 2,461,897 15,743,502 1.6x 1% 8,584,025 1.9x 24,327,527 1.7x 31% 21% BREP VIII (Apr 2015 / Oct 2020) 16,145,129 10,754,125 5,921,200 1.1x - 4,793 1.0x 5,925,993 1.1x n/a 16% Total Global BREP 51,676,831 $ 13,795,134 $ 33,865,581 $ 1.6x 20% 46,881,041 $ 2.2x 80,746,622 $ 1.9x 21% 17% Euro BREP Int'l (Jan 2001 / Sep 2005) 824,172 € - € - € n/a - 1,364,490 € 2.1x 1,364,490 € 2.1x 23% 23% BREP Int'l II (Sep 2005 / Jun 2008) 1,629,748 - 530,198 1.1x 64% 1,714,052 1.8x 2,244,250 1.6x 8% 5% BREP Europe III (Jun 2008 / Sep 2013) 3,205,140 466,916 3,201,449 1.9x - 2,635,024 2.1x 5,836,473 2.0x 23% 18% BREP Europe IV (Sep 2013 / Mar 2019) 6,696,404 2,110,961 6,334,310 1.3x - 573,041 1.4x 6,907,351 1.3x 27% 16% BREP Europe V (TBD) 4,669,823 4,669,823 - n/a - - n/a - n/a n/a n/a Total Euro BREP 17,025,287 € 7,247,700 € 10,065,957 € 1.4x 3% 6,286,607 € 2.0x 16,352,564 € 1.6x 16% 13% BREP Co-Investment (h) 6,819,065 $ - $
5,125,104 $ 1.6x 46% 7,387,601 $ 2.1x 12,512,705 $ 1.9x 17% 16% BREP Asia (Jun 2013 / Dec 2017) 5,081,069 2,728,072 3,143,960 1.3x - 185,124 1.5x 3,329,084 1.3x 22% 14% Total BREP 84,884,181 $ 24,691,363 $ 54,805,711 $ 1.5x 17% 62,823,968 $ 2.2x 117,629,679 $ 1.8x 20% 16% BPP (i) 10,909,794 $ 2,752,215 $ 9,485,250 $ 1.2x - - $
n/a 9,485,250 $ 1.2x n/a 17% BREDS (j) 9,789,251 $ 5,374,702 $ 2,481,353 $ 1.3x - 5,681,724 $ 1.3x 8,163,077 $ 1.3x 13% 12% |
 Blackstone 24 Investment Records as of March 31, 2016 (a) – Continued The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P.
n/m Not meaningful. n/a Not applicable. (a) Preliminary. (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 Carried Interest, divided
by invested capital. (d)
Net Internal Rate of Return (“IRR”) represents the annualized inception to March 31, 2016 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest.
(e) Realizations are treated as return of capital until fully recovered and therefore unrealized and realized MOIC’s are not meaningful
in the early life of the funds.
(f) BCEP, or Blackstone Core Equity Partners, is a core private equity fund which invests with a more modest risk profile and longer hold
period. (g)
Returns for Other Funds and Co-Investment are not meaningful as these funds
have limited transaction activity. (h)
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 Carried
Interest. (i)
BPP, or Blackstone Property Partners, are the core+ real estate funds which
invest with a more modest risk profile and lower leverage.
(j) Excludes Capital Trust drawdown funds. (k) BSCH is a permanent capital vehicle focused on acquiring strategic minority positions in alternative asset managers.
(l) The Total Investments MOIC for Mezzanine I, Mezzanine II, Rescue Lending I, Rescue Lending II Funds, Energy Select Opportunities Fund and
European Senior Debt Fund, excluding recycled capital during the
investment period was 2.0x, 1.4x, 1.6x, 1.0x, 1.1x and n/m, respectively. Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the six credit drawdown funds
presented. Committed
Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total Hedge Fund Solutions BSCH (Dec 2013 / Jun 2020) (k) 3,300,600 $ 2,755,702 $ 549,508 $ 1.0x - 68,755 $
n/a 618,263 $ 1.2x n/a 5% BSCH Co-Investment 75,500 31,237 44,481 1.0x - 1,254 n/a 45,735 1.0x n/a 5% Total Hedge Fund Solutions 3,376,100 $ 2,786,939 $ 593,989 $ 1.0x - 70,009 $
n/a 663,998 $ 1.2x n/a 5% Credit (l) Mezzanine I (Jul 2007 / Oct 2011) 2,000,000 $ 99,280 $
444,786 $ 1.7x - 4,406,799 $ 1.6x 4,851,585 $ 1.6x n/a 18% Mezzanine II (Nov 2011 / Nov 2016) 4,120,000 2,005,610 2,746,265 1.1x - 1,896,457 1.4x 4,642,722 1.2x n/a 13% Rescue Lending I (Sep 2009 / May 2013) 3,253,143 553,745 1,465,694 1.2x - 4,197,595 1.5x 5,663,289 1.4x n/a 11% Rescue Lending II (Jun 2013 / Jun 2018) 5,125,000 2,561,654 2,701,252 1.0x - 88,846 1.1x 2,790,098 1.0x n/a 2% Energy Select Opportunities (Nov 2015 / Nov 2018) 2,856,866 2,469,556 419,038 1.1x - - n/a
419,038 1.1x n/a n/m Euro European Senior Debt (Feb 2015 / Feb 2018) 1,964,689 € 3,369,434 € 523,149 € 1.0x - 142,288 € 1.2x 665,437 € 1.0x n/a n/m Total Credit 19,621,419 $ 11,529,777 $ 8,372,349 $ 1.1x - 10,747,165 $ 1.5x 19,119,514 $ 1.3x n/a 14% |
 Blackstone 25 Reconciliation of GAAP to Non-GAAP Measures Notes on page 26. (Dollars in Thousands) 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 1Q'15 LTM 1Q'16 LTM Net Income (Loss) Attributable to The Blackstone Group L.P. 629,448 $ 134,168 $ (254,697) $ 200,870 $ 150,033 $ 1,948,420 $ 230,374 $ Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings
645,230 134,870 (247,318) 150,734 131,202 2,046,825 169,488 Net Income Attributable to Non-Controlling Interests in Consolidated Entities
81,796 66,716 30,671 40,717 40,086 372,905 178,190 Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities 7,527 13,780 (12,520) 2,358 (6,401) 36,529 (2,783) Net Income (Loss) 1,364,001 $ 349,534 $ (483,864) $ 394,679 $ 314,920 $ 4,404,679 $ 575,269 $ Provision for Taxes 99,344 43,251 1,573 46,230 18,866 336,420 109,920 Income (Loss) Before Provision for Taxes 1,463,345 $ 392,785 $ (482,291) $ 440,909 $ 333,786 $ 4,741,099 $ 685,189 $ Transaction-Related Charges (a) 231,862 192,018 80,962 (15,279) 64,136 911,220 321,837 Amortization of Intangibles (b) 25,899 24,720 30,624 23,287 23,208 108,150 101,839 (Income) Associated with Non-Controlling Interests of Consolidated Entities
(c) (89,323) (80,496) (18,151) (43,075) (33,685) (409,434) (175,407) Economic Income (Loss) 1,631,783 $ 529,027 $ (388,856) $ 405,842 $ 387,445 $ 5,351,035 $ 933,458 $ Taxes (d) (9,719) (20,587) (27,070) 29,849 (16,794) (197,919) (34,602) Economic Net Income (Loss) 1,622,064 $ 508,440 $ (415,926) $ 435,691 $ 370,651 $ 5,153,116 $ 898,856 $ Taxes (d) 9,719 20,587 27,070 (29,849) 16,794 197,919 34,602 Performance Fee Adjustment (e) (1,673,736) (569,664) 639,349 (194,026) (314,065) (5,286,599) (438,406) Investment (Income) Loss Adjustment (f) (189,641) (10,774) 136,131 11,435 26,650 (544,802) 163,442 Net Interest Loss (g) 8,402 14,411 9,522 11,846 13,351 36,877 49,130 Performance Fee Compensation and Benefits Adjustment (h) 403,816 215,441 (130,479) 75,782 106,075 1,452,065 266,819 Fee Related Earnings 180,624 $ 178,441 $ 265,667 $ 310,879 $ 219,456 $ 1,008,576 $ 974,443 $ Net Realized Performance Fees (i) 932,789 725,433 357,114 505,540 186,733 2,504,961 1,774,820 Realized Investment Income (Loss) (j) 107,792 136,497 87,526 86,993 (10,101) 539,300 300,915 Net Interest (Loss) (g) (8,402) (14,411) (9,522) (11,846) (13,351) (36,877) (49,130) Taxes and Related Payables Including Payable Under Tax Receivable Agreement (k) (16,994) (20,587) (27,070) (25,819) (16,794) (266,728) (90,270) Equity-Based Compensation (l) 44,398 28,547 17,819 12,280 22,024 76,287 80,670 Distributable Earnings 1,240,207 $ 1,033,920 $ 691,534 $ 878,027 $ 387,967 $ 3,825,519 $ 2,991,448 $ Interest Expense 38,853 45,437 44,981 46,511 48,432 141,310 185,361 Taxes and Related Payables Including Payable Under Tax Receivable Agreement
(k) 16,994 20,587 27,070 25,819 16,794 266,728 90,270 Depreciation and Amortization 6,927 6,715 6,719 6,852 6,292 28,854 26,578 Adjusted EBITDA 1,302,981 $ 1,106,659 $ 770,304 $ 957,209 $ 459,485 $ 4,262,411 $ 3,293,657 $ |
 Blackstone 26 Reconciliation of GAAP to Non-GAAP Measures – Notes Note: See page 30, Definitions and Distribution Policy. (a) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which
include principally equity-based compensation charges
associated with Blackstone’s initial public offering and long-term retention programs outside of annual deferred compensation and other corporate actions.
(b) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which
are associated with Blackstone’s initial public offering and
other corporate actions. (c)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes
the amount of (Income) Loss Associated with Non- Controlling
Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated CLO Entities. (d) Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.
(e) This adjustment removes from EI the total segment amount of Performance Fees.
(f) This adjustment removes from EI the total segment amount of Investment Income (Loss).
(g) This adjustment represents Interest Income and Dividend Revenue less Interest Expense.
(h) This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related
to Performance Fees.
(i) Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone’s profit
sharing plans related thereto. Equals the sum of Net Realized
Incentive Fees and Net Realized Carried Interest. (j)
Represents the adjustment for Blackstone’s Realized Investment Income
(Loss). (k)
Taxes and Related Payables Including Payable Under Tax Receivable Agreement
represent the current tax provision (benefit) calculated on
Income (Loss) Before Provision (Benefit) for Taxes and the Payable Under Tax Receivable Agreement. (l) Represents equity-based award expense included in EI, which excludes all transaction-related equity-based charges.
|
 Blackstone 27 See page 28, Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective
captions on page
13, Total Segments. 1Q’16 Fee Related Earnings per Unit is based on end of
period DE Units Outstanding; 1Q’16 DE per Unit is based on DE attributable to Common Unit Holders (see page 19, Unitholder Distribution) and end of period Total Common Units Outstanding; and 1Q’16 ENI per Unit is based on Weighted-Average
ENI Adjusted Units. 1Q’16 LTM per Unit represents the sum of
the last four quarters. See page 29, Unit Rollforward.
(Dollars in Thousands, Except per Unit Data)
1Q'16 1Q'16 LTM Results Per Unit Results Per Unit Base Management Fees 586,703 $ 2,266,889 $ Advisory Fees 481 224,374 Transaction and Other Fees, Net 46,118 162,730 Management Fee Offsets (20,101) (95,650) Other Revenue (6,248) 7,124 Compensation (287,403) (1,146,784) Non-Interest Operating Expenses (100,094) (444,240) Fee Related Earnings 219,456 $ 0.18 $
974,443 $ 0.81 $
Net Realized Incentive Fees
14,327 105,684 Net Realized Carried Interest 172,406 1,669,136 Realized Investment Income (Loss) (10,101) 300,915 Net Interest (Loss) (13,351) (49,130) Taxes and Related Payables (16,794) (90,270) Equity-Based Compensation 22,024 80,670 Distributable Earnings 387,967 $ 0.33 $
2,991,448 $ 2.51 $
Net Unrealized Incentive Fees
3,652 (38,766) Net Unrealized Carried Interest 17,605 (1,564,467) Unrealized Investment (Loss) (16,549) (464,357) Add Back: Related Payables - 55,668 Less: Equity-Based Compensation (22,024) (80,670) Economic Net Income 370,651 $ 0.31 $
898,856 $ 0.76 $
Walkdown of Financial Metrics |
 Blackstone 28 Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics Unless otherwise noted, all amounts are the respective captions from the Total Segment information.
(a) Represents equity-based award expense included in Economic Income, which excludes all transaction-related equity-based
charges. (b)
See page 25, Reconciliation of GAAP to Non-GAAP Measures for this
adjustment. (c)
Represents tax-related payables including the Payable Under Tax Receivable
Agreement, which is a component of Taxes and Related Payables.
(Dollars in Thousands)
1Q'16 1Q'16 LTM Other Operating Expenses 148,526 $ 629,601 $ Less: Interest Expense (48,432) (185,361) Non-Interest Operating Expenses 100,094 $ 444,240 $ Realized Incentive Fees 28,450 193,526 Less: Realized Incentive Fee Compensation (14,123) (87,842) Net Realized Incentive Fees 14,327 $ 105,684 $ Realized Carried Interest 230,909 2,229,191 Less: Realized Carried Interest Compensation (58,503) (560,055) Net Realized Carried Interest 172,406 $ 1,669,136 $ Interest Income and Dividend Revenue 35,081 136,231 Less: Interest Expense (48,432) (185,361) Net Interest (Loss) (13,351) $ (49,130) $ Equity-Based Compensation (a) 22,024 $ 80,670 $ Taxes and Related Payables (b) (16,794) $ (90,270) $ Unrealized Incentive Fees 7,100 (62,769) Less: Unrealized Incentive Fee Compensation (3,448) 24,003 Net Unrealized Incentive Fees 3,652 $ (38,766) $ Unrealized Carried Interest 47,606 (1,921,542) Less: Unrealized Carried Interest Compensation (30,001) 357,075 Net Unrealized Carried Interest 17,605 $ (1,564,467) $ Related Payables (c) - $
55,668 $ |
 Blackstone 29 Unit Rollforward 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16 Total GAAP Weighted-Average Common Units Outstanding - Basic 625,276,969 631,881,205 638,832,799 641,134,086 644,897,849 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units 5,955,072 2,311,444 - 1,794,046 1,629,702 Weighted-Average Blackstone Holdings Partnership Units - - - 547,495,655 548,042,780 Total GAAP Weighted-Average Units Outstanding - Diluted 631,232,041 634,192,649 638,832,799 1,190,423,787 1,194,570,331 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units - - 1,913,028 - - Weighted-Average Blackstone Holdings Partnership Units
548,837,150 555,641,388 550,983,910 - - Weighted-Average Economic Net Income Adjusted Units
1,180,069,191 1,189,834,037 1,191,729,737 1,190,423,787 1,194,570,331 Economic Net Income Adjusted Units, End of Period 1,192,529,251 1,190,864,027 1,191,328,573 1,190,361,741 1,194,227,352 Total Common Units Outstanding 625,985,058 630,414,455 635,440,608 637,410,828 643,789,108 Adjustments: Blackstone Holdings Partnership Units 550,783,119 545,861,003 549,317,005 546,844,892 543,969,293 Distributable Earnings Units Outstanding 1,176,768,177 1,176,275,458 1,184,757,613 1,184,255,720 1,187,758,401 Common Unitholders 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. Distributable Earnings Units Outstanding excludes units which are not entitled to distributions. |
 Blackstone 30 Definitions and Distribution Policy Blackstone discloses the following 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:
• Blackstone uses Economic Income, or “EI”, as a key measure of value creation, a benchmark of its performance and in making
resource deployment and compensation decisions across its four
segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstone’s initial public offering (“IPO”) and long-term retention programs outside of annual deferred
compensation and other corporate actions, including acquisitions.
Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages.
• Economic Net Income, or “ENI”, represents EI adjusted to include current period taxes. Taxes represent the current tax
provision (benefit) calculated on Income (Loss) Before Provision
for Taxes. •
Blackstone uses Fee Related Earnings, or “FRE”, which is derived from
EI, as a measure to highlight earnings from operations excluding: (a) the income related to performance fees and related carry plan costs and (b) income earned from Blackstone’s investments in the Blackstone Funds.
Blackstone uses FRE as a measure to assess whether recurring
revenue from its businesses is sufficient to adequately cover all of its operating expenses and generate profits. FRE equals contractual fee revenues less (a) compensation expenses (which includes amortization of non-IPO and non-acquisition-related equity-based
awards, but excludes amortization of IPO and
acquisition-related equity-based awards, Carried Interest and incentive fee compensation), and (b) non-interest operating expenses. • Distributable Earnings, or “DE”, which is derived from Blackstone’s segment reported results, is a supplemental measure to
assess performance and amounts available for distributions to
Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a
component of ENI, is the sum across all segments of: (a)
Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other Revenue, (d) Realized Performance Fees, and (e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance
Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and
Related Payables Under the Tax Receivable Agreement. DE is reconciled to Blackstone’s Consolidated Statement of Operations. • Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, is a
supplemental non-GAAP measure derived from segment reported
results and may be used to assess its ability to service its borrowings. Adjusted EBITDA represents DE plus the addition of (a) Interest Expense, (b) Taxes and Related Payables Including Payable Under Tax Receivable Agreement, and (c) Depreciation and Amortization.
Distribution Policy. Blackstone’s intention is to distribute
quarterly to common unitholders approximately 85% of The Blackstone Group L.P.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s general partner 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 distributions to unitholders for any ensuing quarter. The amount
to be distributed 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 distributions are at the sole discretion of Blackstone’s general partner and may change its distribution policy at any time, including, without limitation, to eliminate such
distributions entirely. |
 Blackstone 31 Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 which reflect
Blackstone’s current views with respect to, among other things,
Blackstone’s operations and financial performance. 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,” “estimates,”
“anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual
outcomes
or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal
year ended December 31, 2015, as such factors may be updated from
time to time in its periodic filings with the Securities and Exchange Commission, 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 presentation and in the filings. Blackstone undertakes 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. |