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Blackstone
Annual Report 2024

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FY2024 Annual Report · Blackstone
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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM    
TO    
Commission File Number: 001-33551
Blackstone Inc.
(Exact name of registrant as specified in its charter)
Delaware
 
20-8875684
(State or other jurisdiction of
incorporation or organization)
 
(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)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock
 
BX
 
New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for
such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this
chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 Large accelerated filer ☒
  
Accelerated filer ☐
 Non-accelerated filer ☐
  
Smaller reporting company ☐
  
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under
Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error
to previously issued financial statements. ☐
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive
officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
As of June 30, 2024, the aggregate market value of the shares of common stock held by non-affiliates of the registrant was $88.2 billion.
As of February 21, 2025, there were 729,415,925 shares of common stock of the registrant outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
None

Table of Contents
Table of Contents
   
   Page 
Part I.
 
  
Item 1.
  Business
    
7 
Item 1A.   Risk Factors
     22 
Item 1B.   Unresolved Staff Comments
     80 
Item 1C.   Cybersecurity
     81 
Item 2.
  Properties
     83 
Item 3.
  Legal Proceedings
     83 
Item 4.
  Mine Safety Disclosures
     83 
Part II.
 
  
Item 5.
  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
     84 
Item 6.
  (Reserved)
     86 
Item 7.
  Management’s Discussion and Analysis of Financial Condition and Results of Operations
     86 
Item 7A.   Quantitative and Qualitative Disclosures About Market Risk
    148 
Item 8.
  Financial Statements and Supplementary Data
    152 
Item 8A.   Unaudited Supplemental Presentation of Statements of Financial Condition
    225 
Item 9.
  Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
    228 
Item 9A.   Controls and Procedures
    228 
Item 9B.   Other Information
    229 
Item 9C.   Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
    229 
Part III.
 
  
Item 10.   Directors, Executive Officers and Corporate Governance
    230 
Item 11.   Executive Compensation
    237 
Item 12.   Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
    255 
Item 13.   Certain Relationships and Related Transactions, and Director Independence
    258 
Item 14.   Principal Accountant Fees and Services
    263 
Part IV.
 
  
Item 15.   Exhibits and Financial Statement Schedules
    264 
Item 16.   Form 10-K Summary
    283 
Signatures
    284 
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Forward-Looking Statements
This report may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E
of the U.S. 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,” “possible” 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 this Report, 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.
Risk Factor Summary
The following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash
flows. The following should be read in conjunction with the more complete discussion of the risk factors we face, which are set forth more fully in “Part I.
Item 1A. Risk Factors.”
Risks Related to Our Business
•
 
Our business could be adversely affected by difficult market, economic and geopolitical conditions, each of which could materially reduce our
revenue, earnings and cash flow and adversely affect our operating results and financial prospects and condition.
•
 
A slower than expected decrease, or an increase in, interest rates and other challenges in the financial markets could negatively impact the values
of certain assets or investments and the ability of our funds and their portfolio companies to access the capital markets, which could adversely
affect investment and realization opportunities.
•
 
A decline in the pace or size of investments made by, or poor performance of, our funds may adversely affect our revenues and obligate us to
repay Performance Allocations previously paid to us, and could adversely affect our ability to raise capital.
•
 
Our revenue, earnings, net income and cash flow can all vary materially, which may make it difficult for us to achieve steady earnings growth on a
quarterly basis.
•
 
The asset management business depends in large part on our ability to raise capital from third-party investors and is intensely competitive.
•
 
Our business could be adversely affected by the loss of services from our co-founder and other key senior managing directors and personnel or
future difficulty in recruiting and retaining professionals.
•
 
Changes in U.S. and foreign taxation of businesses and other tax laws, regulations or treaties could adversely affect us, including by adversely
impacting our effective tax rate and tax liability.
•
 
Cybersecurity or other operational risks could result in the loss of data, interruptions in our business and damage to our reputation, and subject
us to regulatory actions, increased costs and financial losses.
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•
 
Technological developments in artificial intelligence could disrupt the markets in which we operate and subject us to increased competition, legal
and regulatory risks and compliance costs.
•
 
Extensive regulation of our businesses affects our activities, creates the potential for significant liabilities and penalties, may make it more
difficult for us to deploy capital in certain jurisdictions or sell assets to certain buyers, and could result in additional burdens on our business.
•
 
We are subject to increasing scrutiny from regulators and certain investors with respect to sustainability matters, including climate change, and
the impacts of investments made by our funds.
•
 
Climate change, climate change-related regulation and sustainability concerns could adversely affect our businesses and the operations of our
portfolio companies, and any actions we take or fail to take in response to such matters could damage our reputation.
•
 
Employee misconduct could impair our ability to attract and retain clients and subject us to legal liability and reputational harm. Fraud, deceptive
practices or other misconduct at portfolio companies or service providers could similarly subject us to liability and reputational damage and harm
performance.
•
 
We are subject to substantial litigation risks and may face significant liabilities and damage to our reputation as a result of allegations of improper
conduct and negative publicity.
•
 
Certain policies and procedures implemented to mitigate potential conflicts of interest and other risk management activities may reduce the
synergies across our various businesses, and failure to deal appropriately with conflicts of interest could damage our reputation and adversely
affect our businesses.
•
 
Valuation methodologies can be subject to a significant degree of subjectivity and judgment, and the expected fair value of assets may never be
realized.
•
 
We may be unable to consummate or successfully integrate development opportunities or increase the number and type of investment products,
including those offered to retail investors and insurance companies.
•
 
Our underwriting activities, borrowings for our operations and dependence on significant leverage in investments by our funds exposes us to
risks.
•
 
Investors may have certain redemption, termination or dissolution rights or may not satisfy their contractual obligation to fund capital calls when
requested by us.
•
 
Certain of our investment funds may invest in securities of companies that rank junior to others’ investments or are experiencing significant
financial or business difficulties, exposing us to greater risk of loss.
•
 
Investments in certain assets and industries, such as energy, infrastructure and real estate, may expose us to risks inherent to those assets and
industries, including environmental liabilities and increased operational, construction, regulatory and market risks.
•
 
Our funds’ and our performance may be adversely affected by inaccurate financial projections of our funds’ portfolio companies, contingent
liabilities, counterparty defaults or forced disposal of investments at a disadvantageous time.
Risks Related to Our Organizational Structure
•
 
The significant voting power of holders of our Series I preferred stock and Series II preferred stock may limit the ability of holders of our common
stock to influence our business.
•
 
We are not required to comply with certain provisions of U.S. securities laws relating to proxy statements and, as a controlled company, certain
requirements of the New York Stock Exchange.
•
 
Our certificate of incorporation provides the Series II Preferred Stockholder with certain rights that may affect or conflict with the interests of the
other stockholders and could materially alter our operations.
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•
 
We are required to pay our senior managing directors for most of the benefits relating to certain additional tax depreciation or amortization
deductions we may claim.
•
 
If Blackstone Inc. were deemed an “investment company” under the 1940 Act, applicable restrictions could make it impractical for us to continue
our business as contemplated.
Risks Related to Our Common Stock
•
 
The price of our common stock may decline due to the large number of shares of common stock eligible for future sale and exchange.
•
 
Our certificate of incorporation provides us with a right to acquire all of the then outstanding shares of common stock under specified
circumstances.
•
 
Our bylaws designate the Court of Chancery of the State of Delaware or U.S. federal district courts, as applicable, as the sole and exclusive forum
for certain types of actions and proceedings.
 
In this report, references to “Blackstone,” the “Company,” “we,” “us” or “our” refer to Blackstone Inc. and its consolidated subsidiaries.
“Series I Preferred Stockholder” refers to Blackstone Partners L.L.C., the holder of the sole outstanding share of our Series I preferred stock.
“Series II Preferred Stockholder” refers to Blackstone Group Management L.L.C., the holder of the sole outstanding share of our Series II preferred stock.
“Blackstone Holdings,” “Blackstone Holdings Partnerships” or “Holdings Partnerships” refer to Blackstone Holdings I L.P., Blackstone Holdings AI L.P.,
Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., collectively.
“Blackstone Funds,” “our funds” and “our investment funds” refer to the funds and other vehicles that are managed by Blackstone. “Our carry funds”
refers to funds managed by Blackstone that have commitment-based multi-year drawdown structures that pay carry on the realization of an investment.
“Our hedge funds” refers to our funds of hedge funds, hedge funds, certain of our real estate debt investment funds and certain other credit-focused
funds which are managed by Blackstone.
We refer to our separately managed accounts as “SMAs.”
“Total Assets Under Management” refers to the invested and available capital in Blackstone-managed or advised vehicles (including, without limitation,
investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy
of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-
managed or advised vehicles, as applicable:
(a)
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each
of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt
and equity outstanding or aggregate par amount of assets, including principal cash for collateralized loan obligation vehicles (“CLOs”), and
(b)
a vehicle’s available capital, if any, which represents (1) uncalled commitments made by investors and (2) available borrowing capacity under
certain credit facilities.
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Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments,
including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment
vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets
Under Management are reported in the segment where the assets are managed.
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and
our personnel. Our calculation of Total Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may
not be comparable to similar measures presented by other asset managers. Our definition of Total Assets Under Management differs from the manner in
which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the
vehicles we manage or advise.
“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees
and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are
earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-
managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-
investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of
investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning
Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees,
Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our
calculation of Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be
comparable to similar measures presented by other asset managers. Our definition of Fee-Earning Assets Under Management may differ from the definition
set forth in the agreements governing the vehicles that we manage or advise.
“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 or
where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended
vehicles generally afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically
with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our perpetual capital vehicles where redemption rights
exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is
sufficient new capital, or (c) where such required
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redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Investment advisory agreements related to certain
SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance platform, may generally be terminated by an investor on
15 to 95 days’ notice. SMAs in our insurance platform can generally only be terminated for long-term underperformance, cause and certain other limited
circumstances, in each case subject to Blackstone’s right to cure.
This report does not constitute an offer of any Blackstone Fund.
6

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Part I.
Item 1.
Business
Overview
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by
strengthening the companies and assets in which we invest. Our more than $1.1 trillion in Total Assets Under Management as of December 31, 2024 include
global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds.
Our businesses use a solutions-oriented approach to drive better performance. We believe our scale, diversified business, long record of investment
performance, rigorous investment process and strong client relationships position us to continue to perform well in a variety of market conditions, expand our
assets under management, and innovate.
We invest across asset classes on behalf of our investors, including pension funds, insurance companies and individual investors. Our mission is to fulfill
our fiduciary duty by creating long-term value for our investors. We aim to do this by strengthening the companies, real estate assets and other investments in
our portfolio, equipping them to thrive in the global economy. To the extent our funds perform well, we can support a better retirement for tens of millions of
pensioners, including teachers, nurses and firefighters.
As of December 31, 2024, we employed approximately 4,895 people, including our 254 senior managing directors, at our headquarters in New York and
around the world. Our employees are integral to Blackstone’s culture of integrity, professionalism and excellence. We believe hiring, training and retaining
talented individuals, coupled with our rigorous investment process, has supported our excellent investment record over many years. This record, in turn, has
enabled us to innovate into new strategies, drive growth and better serve our investors.
Business Segments
Our four business segments are: (a) Real Estate, (b) Private Equity, (c) Credit & Insurance and (d) Multi-Asset Investing. Information about our business
segments should be read together with “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.” For more
information concerning the revenues and fees we derive from our business segments, see “—Fee Structure/Incentive Arrangements.”
Real Estate
Our Real Estate business is a global leader in real estate investing, with $315.4 billion of Total Assets Under Management as of December 31, 2024. Our
Real Estate segment operates as one globally integrated business with approximately 835 employees and has investments across the globe, including in the
Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for
our investors.
Our Blackstone Real Estate Partners (“BREP”) business is geographically diversified and targets a broad range of opportunistic real estate and real estate-
related investments. The BREP platform includes global funds as well as funds focused specifically on Europe or Asia investments. BREP seeks to invest
thematically in high-quality assets, focusing where we see outsized growth potential driven by global economic and demographic trends. BREP has made
significant investments in logistics, data centers, rental housing, hospitality, office and retail properties around the world, as well as in a variety of real estate
operating companies.
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Our Core+ real estate strategy invests in substantially stabilized real estate globally primarily through perpetual capital vehicles. The strategy includes our
(a) Blackstone Property Partners (“BPP”) funds, which are focused on high-quality assets in the Americas, Europe and Asia and (b) our non-listed real estate
investment trust (“REIT”) Blackstone Real Estate Income Trust, Inc. (“BREIT”) and our Blackstone European Property Income (“BEPIF”) vehicles, which provide
income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively.
Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both
public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our
borrowers and investment options for our investors, including commercial real estate and mezzanine loans and liquid real estate-related debt securities. The
BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds, capital managed on behalf of our Credit & Insurance segment, and
Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed REIT.
Private Equity
Our Private Equity segment encompasses global businesses with a total of approximately 675 employees managing $352.2 billion of Total Assets Under
Management as of December 31, 2024. Our Private Equity segment includes (a) Private Equity Strategies (described below), (b) Infrastructure, which includes
(1) our infrastructure-focused funds for institutional investors with a primary focus on the U.S. and Europe (Blackstone Infrastructure Partners or “BIP”) and
(2) a private wealth-focused platform offering eligible individual investors access to our infrastructure capabilities (Blackstone Infrastructure Strategies or
“BXINFRA”), (c) our secondaries business (“Secondaries”), which includes Strategic Partners Fund Solutions (“Strategic Partners”) and our GP Stakes business
(“GP Stakes”), (d) our capital markets services business (Blackstone Capital Markets or “BXCM”) and (e) a private wealth-focused platform offering eligible
individuals exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment (Blackstone Total Alternatives Solution or
“BTAS”).
Our Private Equity Strategies include: (a) our Corporate Private Equity business (described below), (b) our opportunistic investment platform that invests
flexibly across asset classes, industries and geographies (Blackstone Tactical Opportunities or “Tactical Opportunities”), (c) our life sciences investment
platform (Blackstone Life Sciences or “BXLS”), (d) our growth equity investment platform (Blackstone Growth or “BXG”) and (e) a private wealth-focused
platform offering eligible individual investors access to Blackstone’s private equity capabilities (Blackstone Private Equity Strategies Fund or “BXPE”).
Our Corporate Private Equity business consists of: (a) our global private equity funds (Blackstone Capital Partners or “BCP”), (b) our sector-focused funds,
including our energy- and energy transition-focused funds (Blackstone Energy Transition Partners or “BETP”), (c) our Asia-focused private equity funds
(Blackstone Capital Partners Asia or “BCP Asia”) and (d) our core private equity funds (Blackstone Core Equity Partners or “BCEP”).
We are a global leader in private equity investing. Our Corporate Private Equity business pursues transactions across industries on a global basis. It strives
to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation.
Corporate Private Equity’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local
markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition
value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing. BCEP pursues
control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than
traditional private equity.
Tactical Opportunities pursues a thematically driven, opportunistic investment strategy. Our flexible, global mandate enables us to find differentiated
opportunities across asset classes, industries and geographies and invest behind them with the frequent use of structure to generate attractive risk-adjusted
returns. Tactical Opportunities’ ability to dynamically shift focus to the most compelling opportunities in any market environment, combined with the
business’ expertise in structuring complex transactions, enables Tactical Opportunities to invest in attractive market areas, often with securities that provide
downside protection and maintain upside return.
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Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders
seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and
growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial
sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments
in private funds and co-investments. GP Stakes targets minority investments in the general partners of private equity and other private market alternative
asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.
BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure,
transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to
apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a
predictable annual cash flow yield.
BXLS invests across the life cycle of companies and products within the life sciences sector. BXLS primarily focuses on investments in life sciences products
in late-stage clinical development within the pharmaceutical, biotechnology and medical technology sectors.
BXG seeks to deliver attractive risk-adjusted returns by investing in dynamic, growth-stage businesses, with a focus on the consumer, consumer
technology, enterprise solutions, financial services and healthcare sectors.
BXPE invests primarily in privately negotiated, equity-oriented investments, leveraging Blackstone’s private equity talent and investment capabilities to
create an attractive portfolio of alternative investments diversified across geographies and sectors.
BXINFRA invests primarily in infrastructure equity, secondaries and credit strategies, leveraging Blackstone’s infrastructure talent and investment
capabilities to create an attractive portfolio of alternative infrastructure investments.
Credit & Insurance
Our Credit & Insurance segment (“BXCI”) has approximately 685 employees and manages $375.5 billion of Total Assets Under Management as of
December 31, 2024. BXCI offers its clients and borrowers a comprehensive solution across corporate and asset based credit, including investment grade and
non-investment grade. BXCI is one of the largest credit managers and CLO managers in the world. The investment portfolios BXCI’s credit platform manages or
sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure including senior
debt, subordinated debt, preferred stock and common equity.
BXCI is organized into three overarching credit investing strategies: private corporate credit, liquid corporate credit and infrastructure and asset based
credit. The private corporate credit strategies include mezzanine and direct lending funds, private placement strategies, stressed/distressed strategies and
SMAs. The direct lending funds include Blackstone Private Credit Fund (“BCRED”) and Blackstone Secured Lending Fund (“BXSL”), both of which are business
development companies (“BDCs”). The liquid corporate credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and
SMAs. The infrastructure and asset based credit strategies include energy strategies (including our sustainable resources platform) and asset based finance
strategies focused on privately originated, income-oriented credit assets secured by physical, financial or residential real estate collateral.
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Our insurance platform focuses on providing full investment management services for insurance and reinsurance accounts, seeking to deliver customized
and diversified portfolios consisting primarily of investment grade credit, including through Blackstone’s private credit origination capabilities. Through this
platform, we provide our clients tailored portfolio construction, strategic asset allocation, and specialized analytical tools. While focusing on policyholder
protection, we seek to achieve risk-managed, liability-matched and capital-efficient returns, as well as diversification and capital preservation. We also provide
similar services to clients through SMAs or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles.
Multi-Asset Investing
Our Multi-Asset Investing segment (“BXMA”) has approximately 240 employees managing $84.2 billion of Total Assets Under Management as of
December 31, 2024. BXMA, the world’s largest discretionary allocator to hedge funds, seeks to grow investors’ assets through investment strategies designed
to deliver, primarily through the public markets, compelling risk-adjusted returns.
BXMA is organized into two primary platforms: Absolute Return and Multi-Strategy. Absolute Return is designed to pursue consistent, efficient and
diversifying returns across multiple market environments. Absolute Return manages a broad range of commingled and customized fund solutions, a seeding
business and registered funds that provide alternative asset solutions through daily liquidity products. Multi-Strategy aims to generate strong risk-adjusted
returns through opportunistic, asset-class agnostic investing, including structured risk transfer and equity capital markets strategies.
BXMA also includes a platform managed by Harvest Fund Advisors LLC (“Harvest”), which primarily invests in publicly traded energy infrastructure,
renewables and master limited partnerships holding midstream energy assets in North America.
Perpetual Capital
Each of our business segments currently includes Perpetual Capital assets under management, which refers to assets under management with an
indefinite term, that are 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 or where required redemptions are limited in quantum. In recent years, we have continued to
meaningfully increase our assets under management in such vehicles. Perpetual Capital strategies represent a significant and growing portion of our overall
business, and the management fees and performance revenues we receive. Perpetual Capital strategies include, without limitation, (a) in our Real Estate
segment, Core+ real estate (including BREIT and BEPIF) and BXMT, (b) in our Private Equity segment, BIP, BXPE, BXINFRA and vehicles in GP Stakes, and (c) in
our Credit & Insurance segment, BXSL and BCRED. In addition, assets managed for certain of our insurance clients are Perpetual Capital assets under
management.
Private Wealth Strategy
Blackstone’s business historically focused on the provision of investment products, such as traditional drawdown funds, to institutional investors.
Blackstone’s business now also includes a substantial number of investment products that are offered through various distribution channels to certain
high-net-worth and mass affluent individual investors in the U.S. and other jurisdictions around the world. We expect to continue to expand the number and
type of such products that we offer. Our Private Wealth Solutions business is dedicated to building out our distribution capabilities in the private wealth
channel to provide certain individual investors with access to Blackstone products across a broad array of alternative investment strategies. In recent years,
capital from the private wealth channel has represented an increasing portion of our Total Assets Under Management, and we expect this trend to continue as
we continue to undertake initiatives focused on this market segment.
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Investment Process and Risk Management
We maintain a rigorous investment process across all our investment vehicles. Each investment vehicle has investment policies and procedures that
generally contain requirements, guidelines and limitations for investments, such as limitations relating to the amount that will be invested in any one
investment and the types of assets, industries or geographic regions in which the vehicle will invest, as well as limitations required by law.
Our investment professionals are responsible for identifying, evaluating, underwriting, diligencing, negotiating, executing, managing and exiting
investments. For those of our businesses with review committees and/or investment committees, such committees review and evaluate investment
opportunities in a framework that includes a qualitative and quantitative assessment of the key risks of investments. In such businesses, investment
professionals generally submit investment opportunities for review and approval by a review committee and/or investment committee, subject to delineated
exceptions set forth in the funds’ investment committee charters or resolutions. Review and investment committees are generally comprised of senior leaders
and other senior professionals of the applicable investment business, and in many cases, other senior leaders of Blackstone and its businesses. Considerations
that review and investment committees take into account when evaluating an investment may include, without limitation and depending on the nature of the
investing business and its strategy, the quality of the business or asset in which the fund proposes to invest, the quality of the management team, likely exit
strategies and factors that could reduce the value of the business or asset at exit, the ability of the business in which the investment is made to service debt in
a range of economic and interest rate environments, macroeconomic trends in the relevant geographic region or industry and the quality of the businesses’
operations. In addition, certain of our business units maintain their own sustainability policies that address, among other things, sustainability factors
applicable to their respective investment strategies. Existing investments are reviewed and monitored on a regular basis by investment and asset
management professionals. In addition, our investment professionals and Portfolio Operations professionals work with our portfolio company senior
executives to identify opportunities to drive operational efficiencies and growth.
Before our BXMA and Secondaries teams decide to invest in an investment fund or an alternative asset manager, as applicable, they conduct diligence in
a number of areas. Depending on the nature of the investment, these areas may include, among others, the fund’s/manager’s performance, investment
terms, investment strategy and investment personnel, as well as its operations, processes, risk management and internal controls. With respect to liquid
credit clients and other clients whose portfolios are actively traded in our Credit & Insurance segment, our industry-focused research analysts provide the
review and/or investment committee with a formal and comprehensive review of new investment recommendations and portfolio managers and trading
professionals discuss, among other things, risks associated with overall portfolio composition. Our Credit & Insurance segment’s research team monitors the
operating performance of underlying issuers, while portfolio managers, together with our traders, focus on optimizing asset composition to maximize value
for our investors. This investment process is assisted by a variety of proprietary and non-proprietary research models and methods.
Structure and Operation of Our Investment Vehicles
Our asset management businesses include private investment funds, registered funds, BDCs, REITs, CLOs, SMAs and other vehicles focused on real estate,
private equity, infrastructure, life sciences, growth equity, credit, real assets and secondary funds. Many of our private investment funds and other vehicles
are targeted at institutional investors. We also have several products that are targeted at individual investors, including high-net-worth investors (“Private
Wealth Products”).
Our private investment funds are generally organized as limited partnerships with respect to U.S. domiciled vehicles and limited partnerships or other
similar limited liability entities with respect to non-U.S. domiciled vehicles. These funds accept commitments and/or subscriptions for investment from
institutional investors and/or high-net-worth individuals. Our Private Wealth Products are organized using a variety of structures, including
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corporations, statutory trusts, limited partnerships or other vehicles, and accept subscriptions for investment from high-net-worth individuals and/or other
individual investors. Our private investment funds are generally either commitment-structured funds, where commitments are generally drawn down from
investors on an as-needed basis to fund investments (or for other permitted purposes) over a specified term, or open-ended funds, where the investor’s
capital may be fully funded on or shortly after the investor’s subscription date and cash proceeds resulting from the disposition of investments can be
reinvested, subject to certain limitations and limited investor withdrawal rights. In most of our Private Wealth Products, the investor’s capital is fully funded
on the subscription date. Our BXCI insurance platform is generally structured around SMAs and our BXCI CLO vehicles are generally private companies with
limited liability.
Our investment funds, SMAs and other vehicles not domiciled in the European Economic Area (the “EEA”) are each generally advised by a Blackstone
entity serving as investment adviser that is registered under the U.S. Investment Advisers Act of 1940, as amended (the “Advisers Act”). For our investment
funds, SMAs and other vehicles domiciled in the EEA, a Blackstone entity domiciled in the EEA generally serves as external alternative investment fund
manager (“AIFM”), and the AIFM typically delegates its portfolio management function to a Blackstone-affiliated investment adviser registered under the
Advisers Act. The Blackstone entity serving as investment adviser or AIFM, as applicable, typically carries out substantially all of the day-to-day operations of
each investment vehicle pursuant to an investment advisory, investment management, AIFM or other similar agreement. Generally, the material terms of our
investment advisory and AIFM agreements, as applicable, relate to the scope of services to be rendered by the investment adviser or the AIFM to the
applicable vehicle, the calculation of management fees to be borne by investors in our investment vehicles, the calculation of and the manner and extent to
which other fees received by the investment adviser or the AIFM, as applicable, from funds or fund portfolio companies serve to offset or reduce the
management fees payable by investors in our investment vehicles and certain rights of termination with respect to our investment advisory and AIFM
agreements.
Our private investment funds do not generally register as investment companies under the U.S. Investment Company Act of 1940, as amended (the “1940
Act”), in reliance on the statutory exemptions provided by Section 3(c)(7), Section 3(c)(5)(C) or Section 3(c)(1) thereof. In addition, each of BXMT and BREIT
conducts its operations in a manner that allows it to maintain its REIT qualification and avail itself of the statutory exemption provided by Section 3(c)(5)(C) of
the 1940 Act and our U.S. BXPE and BXINFRA vehicles rely on the statutory exemption provided by Section 3(c)(7) of the 1940 Act. Our Private Wealth
Products include funds that are registered, or regulated as a BDC, under the 1940 Act. In addition, certain of our investment advisers or AIFMs advise or
sub-advise funds domiciled in, and subject to registration and regulatory requirements of, the EEA.
In addition to having an investment adviser, each investment fund that is a limited partnership, or “partnership” fund, also has a general partner that,
apart from partnership funds domiciled in the EEA, generally makes all operational and investment decisions, including the making, monitoring and disposing
of investments. Investment vehicles in our Private Wealth Products typically have a board that includes independent directors. In the case of our SMAs, the
investor, rather than we, generally holds or has custody of the investments. The investors in our investment funds generally take no part in the conduct or
control of the business of the investment funds, have no right or authority to act for or bind the investment funds and have no influence over the voting or
disposition of the securities or other assets held by the investment funds. Third-party investors in some of our partnership funds have the right to remove the
general partner of the fund or to accelerate the termination of the fund without cause by a majority or supermajority vote. In addition, the governing
agreements of many of our partnership funds provide that in the event certain “key persons” in our partnership funds do not meet specified time
commitments with regard to managing the fund, then (a) investors in such funds have the right to vote to terminate the investment period by a specified
percentage (including, in certain cases a simple majority) vote in accordance with specified procedures, or accelerate the withdrawal of their capital on an
investor-by-investor basis, or (b) the fund’s investment period will automatically terminate and a specified percentage (including, in certain cases a simple
majority) in accordance with specified procedures is required to restart it. In addition, the governing agreements of some of our partnership funds provide
that investors have the right to terminate the investment period for any reason by a supermajority vote of the investors in such fund.
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Fee Structure/Incentive Arrangements
Management Fees
The following is a general description of the management fees earned by Blackstone. Management fees are generally based on an annual rate but
payable on a regular basis (typically monthly or quarterly). Management fees received are not subject to clawback.
•
 
In our carry funds, the investment adviser or AIFM (depending on the domicile of the fund) receives a management fee based on a percentage of
the fund’s capital commitments, invested capital and/or undeployed capital during the investment period and the fund’s invested capital,
investment fair value or capital commitments after the investment period. Management fees are generally payable over either the term or life of
the fund. Depending on the fee basis, negative performance of one or more investments in the fund may reduce the total management fee paid
for the relevant period, but not the fee rate.
•
 
In our other fund structures, unless outlined differently below, the investment adviser or AIFM (depending on the domicile of the fund) receives a
management fee based on a percentage of the fund’s net asset value over the term or life of the fund. These funds may permit investors to
withdraw or redeem their interests periodically, in some cases following the expiration of a specified period of time when capital may not be
withdrawn. Decreases in net asset value reduce the total management fee paid for the relevant period, but not the fee rate.
•
 
In our CLOs, the investment adviser typically receives a base management fee and a subordinated management fee, which are calculated as a
percentage of the CLO’s assets. Although varying from deal to deal, a CLO will typically be wound down within eight to eleven years of being
launched. The amount of fees will decrease as the CLO deleverages toward the end of its term.
•
 
In our separately managed accounts, the investment adviser generally receives a management fee based on a percentage of each account’s net
asset value or invested capital. Such management fees are generally subject to contractual rights the investor has to terminate our management
on generally as short as 30 days’ notice.
•
 
In our credit-focused registered investment companies and our BDCs, the investment adviser typically receives a management fee based on a
percentage of net asset value or total managed assets. Such management fees are generally subject to contractual rights of the company’s board
of directors to terminate our management of an account on as short as 30 days’ notice.
•
 
For BXMT, the investment adviser receives a management fee based on a percentage of BXMT’s net proceeds received from equity offerings and
accumulated “distributable earnings” (which is generally equal to its net income, calculated under GAAP, excluding certain non-cash and other
items), subject to certain adjustments.
For additional information regarding the management fee rates we receive, see “Part II. Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations — Critical Accounting Policies — Revenue Recognition — Management and Advisory Fees, Net.”
Incentive Arrangements
Our incentive arrangements are composed of (a) contractual incentive fees received from certain investment vehicles upon achieving specified
cumulative investment returns (“Incentive Fees”), and (b) a disproportionate allocation of the income generated by investment vehicles otherwise allocable to
investors upon achieving certain investment returns (“Performance Allocations”, and, together with Incentive Fees, “Performance Revenues”).
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In our carry funds, our Performance Revenues consist of the Performance Allocations to which the general partner or an affiliate thereof is entitled,
commonly referred to as carried interest. Our ability to generate and realize carried interest is an important element of our business and has historically
accounted for a very significant portion of our income.
Carried interest is typically structured as a net profits interest in the applicable fund. In the case of our carry funds, carried interest is generally calculated
on a “realized gain” basis, and each general partner (or affiliate) is generally entitled to an allocation of up to 20% of the net realized income and gains
(generally taking into account realized and unrealized or net unrealized losses) generated by such fund. Net realized income or loss is not generally netted
between or among funds, and in some cases our carry funds provide for allocations to be made on current income distributions (subject to certain
conditions).
For most carry funds, the carried interest is subject to a preferred limited partner return generally ranging from 5% to 8% per year, subject to a catch-up
allocation to the general partner. Some of our carry funds do not provide for a preferred return, and generally the terms of our carry funds vary in certain
respects across our business units and vintages. If, at the end of the life of a carry fund (or earlier with respect to certain of our carry funds), as a result of
diminished performance of later investments in a carry fund’s life, (a) the general partner receives in excess of the relevant carried interest percentage(s)
applicable to the fund as applied to the fund’s cumulative net profits over the life of the fund, or (in certain cases) (b) the carry fund has not achieved
investment returns that exceed the preferred return threshold (if applicable), then we will be obligated to repay an amount equal to the carried interest that
was previously distributed to us that exceeds the amounts to which we were ultimately entitled, up to the amount of carried interest received on an after-tax
basis. This is known as a “clawback” obligation and is an obligation of any person who received such carried interest, including us and other participants in our
carried interest plans.
Although a portion of any dividends paid to our stockholder may include any carried interest received by us, we do not intend to seek fulfillment of any
clawback obligation by seeking to have our stockholders return any portion of such dividends attributable to carried interest associated with any clawback
obligation. To the extent we are required to fulfill a clawback obligation, however, we may determine to decrease the amount of our dividends to our
stockholders. The clawback obligation operates with respect to a given carry fund’s own net investment performance only and carried interest of other funds
is not netted for determining this contingent obligation. Moreover, although a clawback obligation is several, the governing agreements of most of our funds
provide that to the extent another recipient of carried interest (such as a current or former employee) does not fund his or her respective share of the
clawback obligation then due, then we and our employees who participate in such carried interest plans may have to fund additional amounts (generally an
additional 50% to 70% beyond our pro-rata share of such obligation) although we retain the right to pursue any remedies that we have under such governing
agreements against those carried interest recipients who fail to fund their obligations. We have recorded a contingent repayment obligation equal to the
amount that would be due on December 31, 2024, if the various carry funds were liquidated at their current carrying value. For additional information
concerning the clawback obligations we could face, see “—Item 1A. Risk Factors — Risks Related to Our Business — We may not have sufficient cash to pay
back “clawback” obligations if and when they are triggered under the governing agreements with our investors.”
In our structures other than carry funds, our Performance Revenues generally consist of performance-based allocations of a vehicle’s net capital
appreciation during a measurement period, subject to the achievement of minimum return levels, high water marks, loss carry forwards and/or other hurdle
provisions, in accordance with the respective terms set out in each vehicle’s governing agreements. Such allocations are typically realized at the end of the
measurement period and, once realized, are typically not subject to clawback or reversal. In particular, our ability to generate and realize these amounts is an
important element of our business. Such allocations in certain of our Perpetual Capital strategies contribute a significant and growing portion to our overall
revenues.
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The following is a general description of the Performance Revenues earned by Blackstone in structures other than carry funds:
•
 
The general partners of certain open-ended BPP and BIP funds are entitled to an incentive fee allocation generally between 7% and 12.5% of net
profit, subject to a hurdle amount generally of between 5.5% and 7%, a loss recovery amount and a catch-up. Incentive allocations for these
funds are generally realized every three years from when a limited partner makes its initial investment, or upon a limited partner’s redemption
from the fund.
•
 
The general partner or special limited partner of each of BREIT, BEPIF, BXPE and BXINFRA receives a performance participation allocation of 12.5%
of total return, subject to a 5% hurdle amount with a catch-up and recouping any loss carry forward amounts, measured annually and payable
quarterly.
•
 
The investment adviser of our BDCs receives (a) income incentive fees of 12.5% or 17.5%, as applicable, subject to, in certain cases, certain
hurdles, catch-ups and caps, payable quarterly, and (b) capital gains incentive fees (net of realized and unrealized losses) of 12.5% or 17.5%, as
applicable, payable annually.
•
 
The general partners or similar entities of each of our real estate and credit hedge fund structures receive incentive fees of generally up to 20% of
the applicable fund’s net capital appreciation per annum.
•
 
The investment manager of BXMT receives an incentive fee generally equal to 20% of BXMT’s distributable earnings in excess of a 7% per annum
return on stockholders’ equity (excluding stock appreciation or depreciation), provided that BXMT’s distributable earnings over the prior three
years is greater than zero.
•
 
In our Multi-Asset Investing segment, the investment adviser of certain of our funds of hedge funds, hedge or multi-strategy funds, separately
managed accounts that invest in hedge funds and certain non-U.S. registered investment companies, is entitled to an incentive fee generally
between 0% to 20%, as applicable, of the applicable investment vehicle’s net appreciation, subject to “high water mark” provisions and in some
cases a preferred return.
Advisory and Transaction Fees
Some of our investment advisers or their affiliates receive customary fees (for example, acquisition, origination and other transaction fees) upon
consummation of their funds’ transactions, and may from time to time receive advisory, monitoring and other fees in connection with their activities. For
most of the funds where we receive such fees, we are required to reduce the management fees charged to the funds’ investors by 50% to 100% of such
limited partner’s share of such fees.
Capital Invested In and Alongside Our Investment Funds
To further align our interests with those of investors in our investment funds, we have invested the firm’s capital and that of our personnel in the
investment funds we sponsor and manage. Minimum general partner capital commitments to our investment funds are determined separately with respect
to each of our investment funds and, generally, are less than 5% of the limited partner commitments of any particular fund. See “Part II. Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for more information regarding
our minimum general partner capital commitments to our funds. We determine whether to make general partner capital commitments to our funds in excess
of the minimum required commitments based on, among other things, our anticipated liquidity, working capital and
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other capital needs. In many cases, we require our senior managing directors and other professionals to fund a portion of the general partner capital
commitments to our funds. In other cases, we may from time to time offer to our senior managing directors and employees a part of the funded or unfunded
general partner commitments to our investment funds. Our general partner capital commitments are funded with cash and not with carried interest or
deferral of management fees.
Investors in many of our funds also receive the opportunity to make additional “co-investments” with the investment funds. Our personnel, as well as
Blackstone itself and certain Blackstone relationships, also have the opportunity to make investments, in or alongside our funds and other vehicles we
manage, in some instances without being subject to management fees, carried interest or incentive fees. In certain cases, limited partner investors may pay
additional management fees or carried interest in connection with such co-investments.
Competition
The asset management industry is intensely competitive, and we expect it to remain so. We compete both globally and on a regional, industry and sector
basis. We compete on the basis of a number of factors, including investment performance, transaction execution skills, access to capital, access to and
retention of qualified personnel, reputation, range of products and services, innovation and price.
We face competition in the pursuit of institutional and individual investors for our investment funds. Although over time many institutional and individual
investors have increased the amount of capital they commit to alternative investment funds, such increases may create increased competition with respect to
fees charged by our funds. Certain institutional investors have demonstrated a preference to in-source their own investment professionals and to make direct
investments in alternative assets without the assistance of private equity advisers like us. We compete for investments with such institutional investors and
such institutional investors could cease to be our clients. In the private wealth and insurance channels, the market for capital is highly competitive, requires
significant investment and is highly regulated, which could create competitive challenges for us. In the private wealth channel, the willingness of our
competitors to pay higher or differing types of distributor fees increases competition for fundraising.
We also face competition in the pursuit of attractive investment opportunities for our funds. Depending on the investment, we face competition
primarily from sponsors managing other funds, investment vehicles and other pools of capital, other financial institutions and institutional investors (including
sovereign wealth and pension funds), corporate buyers and other parties. Several of these competitors have significant amounts of capital and many of them
have investment objectives similar to ours, which may create additional competition for investment opportunities. Some of these competitors may also have a
lower cost of capital and access to funding sources or other resources that are not available to us, which may create competitive disadvantages for us with
respect to investment opportunities. In addition, some of these competitors may have higher risk tolerances, different risk assessments or lower return
thresholds, which could allow them to consider a wider variety of investments and to bid more aggressively than us for investments. Corporate buyers may be
able to achieve synergistic cost savings with regard to an investment or be perceived by sellers as otherwise being more desirable bidders, which may provide
them with a competitive advantage in bidding for an investment.
In all of our businesses, competition is also intense for the attraction and retention of qualified employees. Our ability to continue to compete effectively
in our businesses will depend upon our ability to attract new employees and retain and motivate our existing employees.
For additional information concerning the competitive risks that we face, see “—Item 1A. Risk Factors — Risks Related to Our Business — The asset
management business is intensely competitive.”
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Sustainability
Our investors have relied on our relentless commitment to excellence for nearly 40 years. Our sustainability efforts are anchored in our goal of generating
strong returns for investors to fulfill our fiduciary duty. We have pursued attractive investments in companies and assets that are part of the global energy
transition. Our approach includes efforts to help select portfolio companies measure emissions and capture cost savings through energy management. Senior
management reports quarterly to our board of directors, which reviews our sustainability strategy, including on the basis of periodic reports from
management addressing relevant matters and practices.
At Blackstone, our people are our most valuable asset. We believe teams with a diverse breadth of backgrounds and experiences contribute to better
outcomes. We believe building inclusive workplaces positions us and our portfolio companies to access a broad pool of qualified talent, including from
historically under-tapped talent pools, and foster inclusive cultures that generate lasting value for our investors. See “— Human Capital Management.”
Human Capital Management
Blackstone’s employees are integral to our culture of integrity, professionalism, excellence and cooperation, and the intellectual capital possessed by
them is critical to our success.
We believe a workforce reflecting a diverse breadth of backgrounds and experiences makes us better investors and a better firm. Our talent strategy
leverages a people-driven framework based on four key pillars: recruiting, talent development, community and inclusion, and accountability. We believe that
by focusing on each of these pillars and investing in our people and our culture, we will create an inclusive environment that helps expand our access to the
best available talent and drives retention and advancement opportunities for our employees.
To that end, our employee resource groups, which are open to all employees, serve as a platform for our professionals to expand cultural awareness and
connect to other employees, including through speaker series, professional development opportunities and social events. We also seek to enable ourselves
and our portfolio companies to access a broad pool of qualified talent, including through firm programs aimed at introducing talented undergraduate students
to financial services and Blackstone and portfolio programs aimed at helping our portfolio companies access historically under-tapped talent pools.
Our board of directors plays an active role in reviewing our human capital management efforts. To that end, senior management reviews with our board
of directors management succession planning and development and other key aspects of our talent management strategy.
Employee and Community Engagement
Blackstone is committed to ensuring our employees are engaged with their work and with their local communities. Blackstone regularly gathers feedback
from our employees via internal and/or external surveys to assess employee engagement and satisfaction and develop targeted solutions. Blackstone also
supports its employee resource groups in their efforts to expand cultural awareness and connection across the firm.
In addition, the Blackstone Charitable Foundation (“BXCF”) was established in 2007 and is committed to supporting Blackstone’s goal of helping foster
economic opportunity and career mobility. This includes, among other initiatives, its signature Blackstone LaunchPad network, which seeks to close the
opportunity gap by equipping college and university students with the entrepreneurial skills they need to build lasting careers, and BX Connects, a global
program that provides Blackstone employees with the opportunity to support their local communities through volunteering and giving. BX Connects uses the
firm’s scale, talent and resources to make grants, develop nonprofit partnerships and create employee engagement opportunities. Nearly 90% of our
employees engaged globally with BXCF’s charitable initiatives in 2024.
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Talent Acquisition, Development and Retention
We believe the talent of our employees, coupled with our rigorous investment process, has supported our excellent investment record over many years.
We hire qualified people, train them and encourage them to work together to provide their best thinking to the firm for the benefit of the investors in the
funds we manage. Across all our businesses, we face intense competition for qualified personnel.
We seek to attract and retain the brightest minds across a wide spectrum of disciplines and from varied backgrounds and experiences. We believe our
reputation, talent development opportunities and compensation make us an attractive employer. We encourage independent thinking and reward initiative
while providing training and development opportunities to help our employees grow professionally. In addition, our Respect at Work programs and trainings
help maintain an inclusive work environment in which all individuals are treated with respect and dignity. Employee education and training are also critical to
maintaining a culture of compliance.
Blackstone offers a wide range of learning and professional development opportunities, both formally and informally, to help employees advance their
careers and maximize the value they can add to the global firm. Incoming analyst classes are provided with training that spans their first few years. In addition,
our new hires are provided with training and other opportunities to help them thrive in our culture, including through our Culture Program and our
Leadership Speaker Series. Blackstone employees are trained or enrolled in compliance training when they start at the firm, and we retrain employees globally
at least once annually. Over the course of their careers at Blackstone, employees are offered learning opportunities in a number of areas including leadership
and management development and communication skills, among others. We offer a global development curriculum on key capabilities required to succeed at
Blackstone, and we partner with external organizations to deliver training programs for our employees. We consistently seek to create visibility and
opportunities for talent to take on roles beyond their current positions, and for managers to connect regularly to discuss and match talent with critical roles.
These efforts result in cross-pollination of talent that we believe engages our people and generates stronger outcomes for the firm.
As discussed below, we seek to retain and incentivize the performance of our employees through our compensation structure. We also enter into
non-competition and non-solicitation agreements with certain employees. See “Part III. Item 11. Executive Compensation — Non-Competition and
Non-Solicitation Agreements” for a description of the material terms of such agreements.
Compensation, Benefits and Wellness
Our compensation is designed to motivate and retain employees and align their interests with those of the investors in our funds. In particular, incentive
compensation for our senior managing directors and employees involves a combination of annual cash bonus payments and performance interests or
deferred equity awards, which we believe encourages them to focus on the performance of our investment funds and the overall performance of the firm.
The proportion of compensation that is “at risk” generally increases as an employee’s level of responsibility rises. Employees at higher total compensation
levels are generally targeted to receive a greater percentage of their total compensation payable in annual cash bonuses, participation in performance
interests and deferred equity awards and a lesser percentage in the form of base salary compared to employees at lower total compensation levels. To further
align their interests with those of investors in our funds, we provide employees with the opportunity to make investments in or alongside certain of the funds
and other vehicles we manage. We also provide our employees and their families robust health and wellbeing offerings, including time-off options and family
planning resources.
We believe our current compensation and benefit allocations for senior professionals are best in class and are consistent with companies in the
alternative asset management industry. Our senior management periodically reviews the effectiveness and competitiveness of our compensation program.
Most of our current senior managing
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directors and other senior personnel have equity interests in our business that entitle such personnel to cash distributions. See “Part III. Item 11. Executive
Compensation – Compensation Discussion and Analysis – Overview of Compensation Philosophy and Program” for more information on compensation of our
senior managing directors and certain other employees.
We care greatly about the health, safety and wellbeing of our employees. Blackstone also offers comprehensive and competitive benefits to its full-time
employees, including, without limitation, primary and secondary caregiver leave, adoption leave, fertility coverage and back up childcare. In addition, we offer
additional family planning benefits for employees such as infertility benefits, including cryopreservation and primary caregiver leave for a minimum of 21
weeks. We offer employee well-being programs that provide information, tools and resources, including connections to immediate support, community
referrals and counseling. We have partnered with various platforms to provide on-demand emotional and mental health support and personalized support
and resources for employees and their families throughout all stages of life.
Data Privacy and Security
Blackstone is committed to data privacy. We provide data privacy training at onboarding to new employees and at least annually to existing employees.
Data privacy is typically addressed in the Global Head of Compliance’s annual update to our board of directors. Blackstone’s approach to data privacy is set out
in our Online Privacy Notice and Investor Data Privacy Notice. Our privacy function, which involves conducting privacy impact assessments, implementing
privacy-by-design initiatives and reconciling global privacy programs with local privacy requirements, is led by our Data and Policy Strategy Officer and
overseen by the Data Protection Operating Committee, Blackstone’s global privacy compliance steering committee. Please see “—Item 1C. Cybersecurity” for
a discussion of our cybersecurity risk management, strategy and governance.
Regulatory and Compliance Matters
Our businesses, as well as the financial services industry generally, are subject to extensive regulation in the United States and in many of the markets in
which we operate.
Our business is subject to compliance with laws and regulations of U.S. federal and state governments, non-U.S. governments, their respective agencies
and/or various self-regulatory organizations or exchanges. The SEC and various self-regulatory organizations, state securities regulators and international
securities regulators have in recent years increased their regulatory activities, including regulation, examination and enforcement in respect of asset
management firms, including Blackstone. Any failure to comply with these regulations could expose us to liability and/or damage our reputation. Our
businesses have operated for many years within a legal framework that requires us to monitor and comply with a broad range of legal and regulatory
developments that affect our activities. However, additional legislation, changes in rules promulgated by financial regulatory authorities or self-regulatory
organizations or changes in the interpretation or enforcement of existing laws and rules, either in the United States or abroad, may directly affect our mode of
operation and profitability.
All of the investment advisers of our investment funds operating in the U.S. are registered as investment advisers with the SEC under the Advisers Act
(other investment advisers may be registered in non-U.S. jurisdictions). Registered investment advisers are subject to the requirements and regulations of the
Advisers Act. Such requirements relate to, among other things, fiduciary duties to advisory clients, maintaining an effective compliance program and code of
ethics, investment advisory contracts, solicitation agreements, conflicts of interest, recordkeeping and reporting requirements, disclosure, advertising and
custody requirements, political contributions, limitations on agency cross and principal transactions between an adviser and advisory clients, and general anti-
fraud prohibitions. Certain investment advisers are also registered with international regulators in connection with their management of products that are
locally distributed and/or regulated.
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Blackstone Securities Partners L.P. (“BSP”), a subsidiary through which we conduct our capital markets business and certain of our fund marketing and
distribution, is registered as a broker-dealer with the SEC and is subject to regulation and oversight by the SEC, is a member of the Financial Industry
Regulatory Authority, or “FINRA,” and is registered as a broker-dealer in 50 states, the District of Columbia, the Commonwealth of Puerto Rico and the Virgin
Islands. Broker-dealers are subject to regulations that cover all aspects of the securities business, including, among others, the implementation of a
supervisory control system over the securities business, advertising and sales practices, conduct of and compensation in connection with public securities
offerings, maintenance of adequate net capital, record keeping and the conduct and qualifications of employees. In addition, FINRA, a self-regulatory
organization subject to oversight by the SEC, adopts and enforces rules governing the conduct, and examines the activities, of its member firms, including BSP.
State securities regulators also have regulatory oversight authority over BSP.
In addition, certain of the closed-end and open-end investment companies we manage, advise or sub-advise are registered, or regulated as a BDC, under
the 1940 Act. The 1940 Act and the rules thereunder govern, among other things, the relationship between us and such investment vehicles and limit such
investment vehicles’ ability to enter into certain transactions with us or our affiliates, including other funds managed, advised or sub-advised by us.
Pursuant to the U.K. Financial Services and Markets Act 2000, or “FSMA,” certain of our subsidiaries are subject to regulations promulgated and
administered by the Financial Conduct Authority (“FCA”). The FSMA and rules promulgated thereunder form the cornerstone of legislation which governs all
aspects of our investment business in the United Kingdom, including sales, provision of investment advice, use and safekeeping of client funds and securities,
regulatory capital, recordkeeping, approval standards for individuals, anti-money laundering, periodic reporting and settlement procedures. Blackstone
Europe LLP (“BELL”) acts as a sub-advisor to its Blackstone U.S. affiliates in relation to the investment and re-investment of Europe, Middle East and Africa
(“EMEA”) based assets of Blackstone Funds, arranging transactions to be entered into by or on behalf of Blackstone Funds, and providing certain related
services. BELL’s principal place of business is in London, and it has a branch in Abu Dhabi Global Market. BELL does not currently have a MiFID II cross border
passport to provide investment services into the European Economic Area (“EEA”). Accordingly, BELL can only provide investment services in certain EEA
jurisdictions where it has obtained a domestic license on a cross-border services basis (currently, Belgium, Denmark, Finland, Spain and Italy), or can operate
pursuant to an exemption or relief (currently Ireland, Liechtenstein and Norway). These operations are, however, in certain cases subject to limitations.
Blackstone Ireland Limited (“BIL”) is authorized and regulated by the Central Bank of Ireland (“CBI”) as an Investment Firm under the (Irish) European
Union (Markets in Financial Instruments) Regulations 2017, as amended (the “MiFID Regulations”). BIL’s principal activity is the provision of management and
advisory services to certain CLOs and sub-advisory services to certain Blackstone affiliates. Blackstone Ireland Fund Management Limited (“BIFM”) is
authorized and regulated by the CBI as an Alternative Investment Fund Manager under the (Irish) European Union (Alternative Investment Fund Managers
Regulations) 2013 (“AIFMRs”). BIFM acts as AIFM and provides investment management functions including portfolio management, risk management,
administration, marketing and related activities to its alternative investment funds in accordance with AIFMRs and the conditions imposed by the CBI as set
out in the CBI’s alternative investment fund rulebook.
Blackstone Europe Fund Management S.à r.l. (“BEFM”) is authorized as (a) an Alternative Investment Fund Manager under the Luxembourg Law of 12 July
2013 on alternative investment fund managers (as amended, the “AIFM Law”), which implements AIFMD in Luxembourg and (b) a management company
under the Law of 17 December 2010 on undertakings for collective investment (as amended, the “UCITS Law”), which implements UCITS Directive in
Luxembourg. BEFM may also provide discretionary portfolio management services and investment advice in accordance with the AIFM Law and the UCITS
Law, as well as reception and transmission of orders. BEFM provides investment management functions including portfolio management, risk management,
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administration, marketing and related activities to its managed funds, in accordance with the AIFM Law, UCITS Law and the regulatory provisions imposed by
the Commission de Surveillance du Secteur Financier in Luxembourg. BEFM also promotes Blackstone products and services in European countries where BELL
is not otherwise licensed to do so. BEFM has branches in Paris, Milan and Frankfurt which provide marketing services and where distribution and deal
sourcing individuals are based.
Certain Blackstone operating entities are licensed and subject to regulation by financial regulatory authorities in Japan, Hong Kong, Australia and
Singapore: The Blackstone Group Japan K.K., a financial instruments firm, is registered with Kanto Local Finance Bureau and regulated by the Japan Financial
Services Agency; The Blackstone Group (HK) Limited is regulated by the Hong Kong Securities and Futures Commission; The Blackstone Group (Australia) Pty
Limited and Blackstone Real Estate Australia Pty Limited each holds an Australian financial services license authorizing it to provide financial services in
Australia and is regulated by the Australian Securities and Investments Commission; and Blackstone Singapore Pte. Ltd. is regulated by the Monetary Authority
of Singapore.
Rigorous legal and compliance analysis of our businesses and investments is endemic to our culture and risk management. Our Chief Legal Officer and
Global Head of Compliance, together with the Chief Compliance Officers of each of our businesses, supervise our compliance personnel, who are responsible
for addressing the regulatory and compliance matters that affect our activities. We strive to maintain a culture of compliance through the use of policies and
procedures including a code of ethics, electronic compliance systems, testing and monitoring, communication of compliance guidance and employee
education and training. Our compliance policies and procedures address regulatory and compliance matters such as the handling of material non-public
information, personal securities trading, marketing practices, gifts and entertainment, anti-money laundering, anti-bribery and sanctions, valuation of
investments on a fund-specific basis, recordkeeping, potential conflicts of interest, the allocation of investment and co-investment opportunities, collection of
fees and expense allocation.
Our compliance group also monitors the information barriers that we maintain between Blackstone’s businesses. We believe that our various businesses’
access to the intellectual knowledge and contacts and relationships that reside throughout our firm benefits all of our businesses. To maximize that access and
related synergies without compromising compliance with our legal and contractual obligations, our compliance group oversees and monitors the
communications between groups that are on the private side of our information barrier and groups that are on the public side, as well as between different
public side groups. Our compliance group also monitors contractual obligations that may be impacted and potential conflicts that may arise in connection
with these inter-group discussions.
In addition, disclosure controls and procedures and internal controls over financial reporting are documented, tested and assessed for design and
operating effectiveness in accordance with the U.S. Sarbanes-Oxley Act of 2002. Internal Audit, which independently reports to the audit committee of our
board of directors, operates with a global mandate and is responsible for the examination and evaluation of the adequacy and effectiveness of the
organization’s governance and risk management processes and internal controls. Internal Audit is designed to improve our firmwide operations through a
systematic and disciplined approach to evaluate and improve the effectiveness of risk management, internal controls, and governance processes. Internal
Audit conducts its audits in accordance with professional standards, and its findings and recommendations are reported to senior management and the audit
committee of our board of directors.
Our enterprise risk management framework is designed to manage non-investment risk areas across the firm, such as financial, human capital, legal,
operational, regulatory, legislative, reputational and technology risks. Our enterprise risk committee assists Blackstone management to identify, assess,
monitor and mitigate such key enterprise risks at the corporate, business unit and fund level. The enterprise risk committee is chaired by our Chief Financial
Officer and is comprised of senior management across business units, corporate functions and regional locations. Senior management reports to the audit
committee of the board of directors on the agenda of risk topics evaluated by the enterprise risk committee and provides periodic risk reports, a summary of
key risks to the firm, and detailed assessments of selected risks, as applicable.
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Additionally, our firmwide valuation committee reviews the valuation process for investments held by us and our investment vehicles, including the
application of appropriate valuation standards on a consistent basis. The firmwide valuation committee is chaired by our Chief Financial Officer and is
comprised of members of senior management, senior leaders from our businesses and representatives from legal and finance.
Further, the review committees and/or investment committees of our businesses review and evaluate investment opportunities in a framework that
includes a qualitative and quantitative assessment of the key risks of investments. See “—Investment Process and Risk Management.”
There are a number of pending or recently enacted legislative and regulatory initiatives that could significantly affect our business. Please see “—
Item 1A. Risk Factors — Risks Related to Our Business — Financial regulatory changes in the United States could adversely affect our business”, “—Extensive
regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased regulatory focus,
could result in additional burdens on our business” and “—Complex regulatory regimes and potential regulatory changes in jurisdictions outside the United
States could adversely affect our business.”
Available Information, Website and Social Media Disclosure
We file annual, quarterly and current reports and other information with the SEC. These filings are available to the public over the internet at the SEC’s
website at www.sec.gov.
Our principal internet address is www.blackstone.com. We make available free of charge on or through www.blackstone.com our annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports, as soon as reasonably practicable after we
electronically file such material with, or furnish it to, the SEC.
In addition, we may use our website (www.blackstone.com), Facebook page (www.facebook.com/blackstone), X (Twitter) (www.x.com/blackstone),
LinkedIn (www.linkedin.com/company/blackstonegroup), Instagram (www.instagram.com/blackstone), SoundCloud (www.soundcloud.com/blackstone-
300250613), Pandora (https://www.pandora.com/artist/blackstone/ARvlPz9Plblrlmg), PodBean (www.blackstone.podbean.com), Spotify
(https://spoti.fi/2LJ1tHG and https://open.spotify.com/artist/52Eom8vQxM8Lk75ZZlf2hJ), YouTube (www.youtube.com/user/blackstonegroup) and Apple
Podcast (https://apple.co/31Pe1Gg) accounts as channels of distribution of company information. The information we post through these channels may be
deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and
webcasts. In addition, you may automatically receive email alerts and other information about Blackstone when you enroll your email address by visiting the
“Contact Us/E-mail Alerts” section of our website at http://ir.blackstone.com. The contents of our website, any alerts and social media channels are not,
however, a part of this report.
Item 1A.
Risk Factors
Risks Related to Our Business
Difficult market, economic and geopolitical conditions can adversely affect our business in many ways, each of which could materially reduce our revenue,
earnings and cash flow and adversely affect our financial prospects and condition.
Our business is materially affected by financial market and economic conditions and events throughout the world that are outside our control. We may
not be able to or may choose not to manage our exposure to these conditions and/or events. Such conditions and/or events can adversely affect our business
in many ways, including
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reducing the ability of our funds to raise or deploy capital, reducing the value or performance of our funds’ investments and making it more difficult for our
funds to exit and realize value from existing investments. This could in turn materially reduce our revenue, earnings and cash flow and adversely affect our
financial prospects and condition. In addition, in the face of a difficult market or economic environment, we may need to reduce our fixed costs and other
expenses in order to maintain profitability. This may include cutting back or eliminating the use of certain services or service providers, or terminating the
employment of a significant number of our personnel that, in each case, could be important to our business and without which our operating results could be
adversely affected. A failure to manage or reduce our costs and other expenses within a time frame sufficient to match any decrease in profitability would
adversely affect our operating performance.
Turmoil in the global financial markets can provoke significant volatility of equity and debt securities prices. This can have a material and rapid impact on
our mark-to-market valuations, particularly with respect to our public holdings and credit investments. As publicly traded equity securities have in recent
years represented a meaningful proportion of the assets of many of our funds, stock market volatility, including a sharp decline in the stock market, may
adversely affect our results, including our revenues and net income. Moreover, our public equity holdings have at times been concentrated in a few large
positions, thereby making our unrealized mark-to-market valuations particularly sensitive to sharp changes in the price of any of these positions. Further,
although the equity markets are not the only means by which we exit investments, should we experience a period of challenging equity markets, our funds
may experience continued difficulty in realizing value from investments.
Although decelerating, inflation remains above the U.S. Federal Reserve’s target levels. Despite multiple federal fund rate decreases over the course of
2024, interest rates have remained elevated, with the U.S. Federal Reserve indicating in early 2025 an expectation of slower rate decreases moving forward.
Periods of elevated inflation and high interest rates, such as that experienced in recent years, can contribute to significant volatility in debt and equity markets
and economic deceleration or contraction in the rate of growth in certain industries, sectors or geographies. Economic slowdown may contribute to poor
financial results for our funds’ portfolio companies or assets, which may result in lower investment returns for our funds. The valuations of our funds’ real
estate assets, and fundraising in certain of our real estate strategies targeting high-net-worth investors, have been adversely impacted by elevated interest
rates and a high cost of capital. A slower-than-expected decrease, or a further increase, in interest rates would continue to present a challenge to real estate
valuations. Such factors are even more challenging in the life science office and traditional office market, as well as other properties with long-term leases
that do not provide for short-term rent increases.
Geopolitical concerns and other global events outside of our control have also contributed and may continue to contribute to volatile global equity and
debt markets, particularly as geopolitical instability has in recent years become more prevalent. These concerns and events include, without limitation, trade
conflict, civil unrest, threats to national security, and national and international security events (including war, terrorist acts or other hostilities). For example,
in the U.S., the current Presidential administration has stated its intention to make governmental policy and regulatory changes in a variety of areas, including
the imposition of tariffs or other trade barriers. In that connection, certain countries subject to those changes have expressed an intent to impose similar
measures in return. Outside the U.S., ongoing wars in the Middle East and Ukraine, as well as concern as to whether China’s stimulus measures will effectively
stabilize slowing economic growth in the country, have further contributed to global economic uncertainty and volatility in the global financial markets. This
may adversely impact our performance and the performance of our funds and their respective portfolio companies.
In addition, severe public health events, such as those caused by the COVID-19 pandemic, may occur from time to time, and could directly and indirectly
impact us in material respects that we are unable to predict or control, including by threatening our employees’ well-being and morale and interrupting
business activities. In addition, related factors may materially and adversely affect us, including the effectiveness of governmental responses, the extension,
amendment or withdrawal of any government programs or initiatives and the timing and speed of economic recovery. Actions taken in response may
contribute to significant volatility in the financial markets, resulting in increased volatility in equity prices, material interest rate changes, supply chain
disruptions, such as simultaneous supply and demand shock to global, regional and national economies, and an increase in inflationary pressures.
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In addition to the factors described above, other market, economic and geopolitical factors described herein that may adversely affect our business
include, without limitation:
•
 
higher prices for commodities or other goods,
•
 
economic slowdown or recession in the U.S. and internationally,
•
 
changes in interest rates and/or a lack of availability of credit in the U.S. and internationally and
•
 
changes in law and/or regulation, and uncertainty regarding government and regulatory policy.
A period of economic slowdown, which may occur across one or more industries, sectors or geographies, creates operating performance challenges for
certain of our funds’ investments, which could adversely affect our operating results and cash flows.
Despite overall resilience in some geographies, many global economies have in recent years experienced periods of deceleration. Further economic
deceleration or contraction in the rate of growth in certain industries, sectors or geographies may contribute to poor financial results for our funds’ portfolio
companies or assets, which may result in lower investment returns for our funds. For example, periods of economic weakness have contributed and may in
the future contribute to a decline in commodity prices and decreased consumer demand for certain goods and services (including energy), and/or volatility in
the oil and natural gas markets, each of which would have an adverse effect on our energy and consumer investments. In addition, slowing growth in certain
markets and real estate sectors with excess near-term supply, such as life sciences office and U.S. multifamily, has negatively impacted and may continue to
negatively impact the valuations of assets in such sectors in the near-term. A sustained high interest rate environment could increase the likelihood of an
economic slowdown.
In addition, in recent years elevated inflation globally contributed to heightened costs of labor, energy and materials, which put profit margin pressure on
certain of our funds’ portfolio companies and negatively impacted the performance of certain of such companies. While inflation decelerated over 2024,
profit margins may be pressured if inflation re-accelerates, particularly for companies that lack pricing power. In addition, as the governing agreements of our
funds contain only limited requirements, if any, regarding diversification of fund investments (by, for example, sector or geographic region), during periods of
economic slowdown in certain sectors or regions, the impact on our funds may be exacerbated by concentration of investments in such sectors or regions.
Such concentration may increase the risk that events affecting specific sectors, geographic regions or asset types could have an adverse or disparate impact on
such funds, as compared to funds that invest more broadly. As a result, our ability to raise new funds, as well as our operating results and cash flows, could be
adversely affected.
Moreover, during periods of weakness, our funds’ portfolio companies may also have difficulty expanding their businesses and operations or meeting
their debt service obligations or other expenses as they become due, including expenses payable to us. Furthermore, negative market conditions could
potentially result in a portfolio company entering bankruptcy proceedings. This could result in a complete loss of the fund’s investment in such portfolio
company and a significant negative impact to the fund’s performance and consequently to our operating results and cash flow, as well as to our reputation. In
addition, negative market conditions would also increase the risk of default with respect to investments held by our funds that have significant debt
investments, such as our credit-focused funds.
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High interest rates and challenging debt market conditions have negatively impacted and could continue to negatively impact the values of certain assets
or investments and the ability of our funds and their portfolio companies to access capital markets, which could adversely affect investment and realization
opportunities, lead to lower-yielding investments and potentially decrease our net income.
Although the U.S. Federal Reserve lowered interest rates three times over the course of 2024, it has expressed an expectation that any such decreases
would be slower going forward. Accordingly, significant uncertainty remains regarding the timing and extent of future interest rate decreases. Elevated
interest rates create downward pressure on the value of certain assets owned by our funds, including, among others, real estate and fixed-rate debt. A
slower-than-expected decrease, or a further increase in, interest rates would continue to present a challenge for the valuations of such assets, as well as for
fundraising in certain of our strategies targeting high-net-worth investors. An increase in interest rates could also contribute to a period of economic
slowdown, which would create operating performance challenges for certain of our funds’ investments. Relatedly, opportunities to realize value from certain
of our funds’ investments are likely to continue to be more limited if interest rates remain at high levels for an extended period. For example, certain real
estate sectors and operating companies could be affected given the potential adverse impact on equity prices and caution on the part of potential acquirers.
Further, our funds have faced, and could continue to face, difficulty in realizing value from investments due to sustained declines in equity market values as a
result of concerns regarding interest rates.
In recent years, high interest rates have increased the cost of debt financing for the transactions our funds pursue. A significant contraction or weakening
in the market for debt financing or other adverse change relating to the terms of debt financing (such as, for example, higher equity requirements and/or
more restrictive covenants), particularly in the area of acquisition financings for private equity and real estate transactions, could have a material adverse
effect on our business. For example, a portion of the indebtedness used to finance certain fund investments often includes high-yield debt securities issued in
the capital markets. Availability of capital from the high-yield debt markets is subject to significant volatility, and there may be times when we might not be
able to access those markets at attractive rates, or at all, when completing an investment. Further, the financing of acquisitions or the operations of our funds’
portfolio companies with debt may become less attractive due to limitations on the deductibility of corporate interest expense. See “— Changes in U.S. and
foreign taxation of businesses and other tax laws, regulations or treaties or an adverse interpretation of these items by tax authorities could adversely affect
us, including by adversely impacting our effective tax rate and tax liability.”
If our funds were unable to obtain committed debt financing for potential acquisitions, or could only obtain debt financing at an increased interest rate or
on unfavorable terms or the ability to deduct corporate interest expense is substantially limited, our funds may face increased competition from strategic
buyers of assets who may have an overall lower cost of capital or the ability to benefit from a higher amount of cost savings following an acquisition. In
addition, high interest rates, coupled with periods of significant equity and credit market volatility, may potentially make it more difficult for us to find
attractive opportunities for our funds to exit and realize value from their existing investments.
Our funds’ portfolio companies also regularly utilize the corporate debt markets to obtain financing for their operations. To the extent monetary policy,
tax or other regulatory changes or difficult credit markets render such financing difficult to obtain, more expensive or otherwise less attractive, this may also
negatively impact the financial results of those portfolio companies and, therefore, the investment returns on our funds and our revenues. In addition, to the
extent that (a) market conditions, and/or tax or other regulatory changes make it difficult or not possible to refinance debt that is maturing in the near term,
or (b) such refinancing would result in a rating agency viewing a portfolio company as having incurred an excessive amount of debt, some of our funds’
portfolio companies may be unable to repay such debt at maturity and may be forced to sell assets, undergo a recapitalization or seek bankruptcy protection.
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A decline in the pace or size of investments made by our funds may adversely affect our revenues.
The revenues that we earn are driven in part by the pace at which our funds make investments and the size of those investments, and a decline in the
pace or the size of such investments may reduce our revenues. In particular, in recent years we have meaningfully increased the number of perpetual capital
vehicles we offer and the assets under management in such vehicles. The fees we earn from our perpetual capital vehicles, including our Core+ real estate
strategy, represent a significant and growing portion of our overall revenues. If our funds, including our perpetual capital vehicles, are unable to deploy capital
at a sufficient pace, our revenues would be adversely impacted. Many factors could cause a decline in the pace of investment, including a market environment
characterized by high prices, the inability of our investment professionals to identify attractive investment opportunities, competition for such opportunities
among other potential acquirers, decreased availability of financing on attractive terms or at all or decreased availability of investor capital, including as a
result of a challenging fundraising environment or heightened investor requests for repurchases in certain vehicles. A number of our funds have invested and
intend to continue to invest in large transactions or transactions that otherwise have substantial business, regulatory or legal complexity and may be more
difficult to execute successfully than smaller or less complex investments. In addition, realizing value from such investments may be more difficult as a result
of, among other things, a limited universe of potential acquirers.
We may also fail to consummate identified investment opportunities because of regulatory or legal complexities or uncertainty and adverse
developments in the U.S. or global economy, financial markets or geopolitical conditions. Additionally, our ability to deploy capital in certain countries may be
adversely impacted by U.S. and foreign government policy changes and regulations. For example, an FTC rule that significantly increases the amount of
information required to be provided in a Hart-Scott-Rodino filing became effective in February 2025. The process of obtaining pre-approval for certain
transactions undertaken by our investment funds is expected to become more administratively burdensome and time consuming. Any potential time delay
associated with obtaining approval may make it more difficult for our funds to deploy capital and exit and realize value from investments.
Further, state regulatory agencies may impose restrictions on private funds’ investments in certain types of assets or industries, which could affect our
funds’ ability to find attractive and diversified investments and to complete such investments in a timely manner. For example, certain states have, and others
may in the future, increase state regulatory review measures of investments by private equity into the patient-facing healthcare industry, and certain states
have considered, and others may seek to enact, legislation to restrict institutional investment in single-family homes. Such laws may impact the ability of our
funds to invest in certain assets or sectors. In addition, the ability to deploy capital in China has been adversely impacted by policies and regulations in the
U.S., which may be exacerbated prospectively. See “—Laws and regulations on foreign direct investment applicable to us and our funds’ portfolio companies,
both within and outside the U.S., may make it more difficult for us to deploy capital in certain jurisdictions or to sell assets to certain buyers.”
Our revenue, earnings, net income and cash flow can all vary materially due to our reliance on Performance Revenues, which may make it difficult for us to
achieve steady earnings growth on a quarterly basis and may cause the price of our common stock to decline.
Our revenue, earnings, net income and cash flow can all vary materially due to our reliance on Performance Revenues. We may experience fluctuations in
our results, including our revenue and net income, from quarter to quarter due to a number of other factors. These include timing of realizations, changes in
the valuations of our funds’ investments, changes in the amount of distributions, dividends or interest paid in respect of investments, changes in our
operating expenses and the degree to which we encounter competition. Each of these factors may be impacted by economic and market conditions.
Achieving steady growth in net income and cash flow on a quarterly basis may be difficult, which could in turn lead to large adverse movements or general
increased volatility in the price of our common stock. We do not provide guidance regarding our expected quarterly and annual operating results. The lack of
guidance may affect the expectations of public market analysts and could cause increased volatility in our common stock price.
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For certain of our perpetual capital vehicles, including certain Core+ real estate funds, infrastructure focused funds, BCRED and other of our perpetual
capital vehicles, that have in recent years become increasingly large contributors to our earnings, incentive income is paid to us in varying frequencies, ranging
from quarterly to every five years. This contributes to the volatility of our cash flow. Furthermore, we earn this incentive income only if the net asset value of
a vehicle has increased or, in the case of certain vehicles, increased beyond a particular return threshold, or if the vehicle has earned a net profit. Certain of
these vehicles also have “high water marks” whereby we do not earn incentive income during a particular period even though the vehicle had positive returns
in such period as a result of losses in prior periods. If one of these vehicles experiences losses, we will not earn incentive income from it until it surpasses the
previous high-water mark. The incentive income we earn is therefore dependent on the net asset value or the net profit of the vehicle, which could lead to
significant volatility in our results.
For our carry funds, we receive Performance Allocations only when investments are realized and achieve a certain preferred return. This also contributes
to the volatility of our cash flow. Performance Allocations depend on our carry funds’ performance and opportunities for realizing gains, which may be limited.
It takes a substantial period of time to realize the cash value (or other proceeds) of an investment. Even if an investment proves to be profitable, it may be a
number of years before any profits can be realized, particularly if market conditions are unaccommodating. We cannot predict when, or if, any realization of
investments will occur. In addition, the valuations of, and realization opportunities for, investments made by our funds, could also be subject to high volatility
as a result of uncertainty or potential changes to governmental policy with respect to, among other things, tax, trade, immigration, healthcare, labor,
infrastructure and energy.
Prior to our receiving any Performance Allocations in respect of realization of a profitable investment, 100% of the proceeds of that investment must
generally be paid to the investors in that carry fund until they have recovered certain fees and expenses and achieved a certain return on all realized
investments by that carry fund as well as a recovery of any unrealized losses. A particular realization event may have a significant impact on our results for
that particular quarter that may not be replicated in subsequent quarters. We recognize revenue on investments in our investment funds based on our
allocable share of realized and unrealized gains (or losses) reported by such investment funds. A decline in realized or unrealized gains, or an increase in
realized or unrealized losses, would adversely affect our revenue and possibly cash flow. This could further increase the volatility of our quarterly results.
Because our carry funds have preferred return thresholds to investors that need to be met prior to our receiving any Performance Allocations, substantial
declines in the carrying value of the investment portfolios of a carry fund can significantly delay or eliminate any Performance Allocations paid to us in respect
of that fund because the value of the assets in the fund would need to recover to their aggregate cost basis plus the preferred return over time before we
would be entitled to receive any Performance Allocations from that fund.
The timing and receipt of Performance Allocations also varies with the life cycle of our carry funds. During periods in which a relatively large portion of
our assets under management is attributable to carry funds and investments in their “harvesting” period, our carry funds would make larger distributions
than in the fundraising or investment periods that precede harvesting. During periods in which a significant portion of our assets under management is
attributable to carry funds that are not in their harvesting periods, we may receive substantially lower Performance Allocations.
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Adverse economic and market conditions may adversely affect the amount of cash generated by our businesses, the value of our principal investments,
and in turn, our ability to pay dividends to our stockholders.
We primarily use cash to, without limitation (a) provide capital to facilitate the growth of our existing businesses, including funding our general partner
and co-investment commitments to our funds and warehousing investments for our funds, (b) provide capital for business expansion, (c) pay operating
expenses, including cash compensation to our employees, and other obligations as they arise, including servicing our debt and (d) pay dividends to our
stockholders, make distributions to the holders of Blackstone Holdings Partnership Units and make repurchases under our share repurchase program. Our
principal sources of cash are: (a) cash we received in connection with our prior bond offerings and other borrowings, (b) management fees, (c) realized
incentive fees and (d) realized performance allocations, which is the sum of Realized Principal Investment Income and Realized Performance Revenues less
Realized Performance Compensation. We have also entered into a $4.325 billion revolving credit facility with a final maturity date of December 15, 2028 the
(“Revolving Credit Facility”). Our long-term debt totaled $11.3 billion in borrowings from our prior bond issuances. As of December 31, 2024, we had no
borrowings outstanding under the Revolving Credit Facility. In February 2025, we drew $900.0 million under the Revolving Credit Facility. As of December 31,
2024, we had $2.0 billion in Cash and Cash Equivalents, $1.1 billion invested in Corporate Treasury Investments and $5.8 billion in Other Investments.
If growth of the global economy decelerates, or conditions in the financing markets were challenged, the investment performance of our funds could
suffer, resulting in, for example, the payment of decreased or no Performance Allocations to us. This could materially and adversely affect the amount of cash
we have on hand, which could in turn require us to rely on other sources of cash, such as the capital markets, which may not be available to us on acceptable
terms or at all for the above purposes. A decrease in the amount of cash we have on hand could also materially and adversely affect our ability to pay
dividends to our stockholders and make repurchases under our share repurchase program. Furthermore, during adverse economic and market conditions, we
might not be able to renew all or part of our existing revolving credit facility or find alternate financing on commercially reasonable terms or at all. As a result,
our uses of cash may exceed our sources of cash, thereby potentially affecting our liquidity position. In addition, we have made and expect to continue to
make significant principal investments in our current and future investment funds. Contributing capital to these investment funds is risky, and we may lose
some or the entire principal amount of our investments, including, without limitation, as a result of poor investment performance in a challenging economic
and market environment.
Our business depends in large part on our ability to raise capital from third-party investors. A failure to raise capital from third-party investors on
attractive fee terms or at all, would impact our ability to collect management fees or deploy such capital into investments and potentially collect
Performance Revenues, which would materially reduce our revenue and cash flow and adversely affect our financial condition.
Our ability to raise capital from third-party investors depends on a number of factors, such as economic and market conditions (including the level of
interest rates and stock market performance) and the asset allocation rules or investment policies to which such third-party investors are subject. These
factors could inhibit or restrict the ability of third-party investors to make investments in our funds or the asset classes in which our funds invest. For example,
lawmakers across a number of states, including Pennsylvania and Florida, have put forth proposals or expressed intent to take steps to reduce or minimize the
ability of their state pension funds to invest in alternative asset classes, including by proposing to increase the reporting or other obligations applicable to
their state pension funds that invest in such asset classes. Such proposals or actions would potentially discourage investment by such state pension funds in
alternative asset classes by imposing meaningful compliance burdens and costs on them, which could adversely affect our ability to raise capital from such
state pension funds. Other states could potentially take similar actions, which may further impair our access to capital from an investor base that has
historically represented a significant portion of our fundraising.
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In addition, volatility in the valuations of investments, has in the past and may in the future affect our ability to raise capital from third-party investors. To
the extent periods of volatility are coupled with a lack of realizations from investors’ existing portfolios, such investors may be left with disproportionately
outsized remaining commitments to a number of investment funds. This significantly limits such investors’ ability to make new commitments to third-party
managed investment funds such as those managed by us. Further, during periods of market volatility, investor subscription requests may be reduced and
investor redemption or repurchase requests may be elevated in products that permit redemption or repurchase of investor interests. See “—Investors in a
number of our vehicles may withdraw their investments, and investors in certain of our vehicles may have a right to terminate our management of, or cause
the dissolution of, such vehicles, which would lead to a decrease in our revenues.” In addition, certain of our investment vehicles that are available to
individual investors are subject to state registration requirements that impose limits on the proportion of such investors’ net worth that can be invested in our
products. These restrictions may limit such investors’ ability or willingness to allocate capital to such products and adversely affect our fundraising in the retail
channel.
Our ability to raise new funds could similarly be hampered if the general appeal of alternative investments were to decline. An investment in a limited
partner interest in an alternative investment fund is generally more illiquid and the returns on such investment may be more volatile than an investment in
securities for which there is a more active and transparent market. In periods of positive markets and low volatility, for example, investors may favor passive
investment strategies such as index funds over our actively managed investment vehicles. Similarly, during periods of high interest rates, investors may favor
investments that are generally viewed as producing a risk-free return, such as treasury bonds, over investments in our products, particularly if the spread
between the products declines. Alternative investments could also fall into disfavor as a result of concerns about liquidity and short-term performance. Such
concerns could be exhibited, in particular, by public pension funds, which have historically been among the largest investors in alternative assets. Many public
pension funds are significantly underfunded and their funding problems have been, and may in the future be, exacerbated by economic downturn. Concerns
with liquidity could cause such public pension funds to reevaluate the appropriateness of alternative investments. In addition, our ability to raise capital from
third parties outside of the United States could be limited to the extent the other countries impose restrictions or limitations on outbound foreign investment.
Moreover, certain institutional investors are demonstrating a preference to in-source their own investment professionals and to make direct investments
in alternative assets without the assistance of alternative asset advisers like us. Such institutional investors may become our competitors and could cease to
be our clients. As some existing investors cease or significantly curtail making commitments to alternative investment funds, we may need to identify and
attract new investors in order to maintain or increase the size of our investment funds. We may be unable to find or secure commitments from those new
investors or that the fee terms of the commitments from such new investors will be consistent with the fees historically paid to us by our investors. If
economic conditions were to deteriorate or if we are unable to find new investors, we might raise less than our desired amount for a given fund. Further, as
we seek to expand into other asset classes, we may be unable to raise a sufficient amount of capital to adequately support such businesses. A failure to
successfully raise capital could materially reduce our revenue and cash flow and adversely affect our financial condition.
In connection with raising new funds or making further investments in existing funds, we negotiate terms for such funds and investments with existing
and potential investors. The outcome of such negotiations could result in our agreement to terms that are materially less favorable to us than for prior funds
we have managed or funds managed by our competitors, including with respect to management fees, incentive fees and/or carried interest, which could have
an adverse impact on our revenues. Such terms could also restrict our ability to raise investment funds with investment objectives or strategies that compete
with existing funds, add additional expenses and obligations for us in managing the fund or increase our potential liabilities, all of which could ultimately
reduce our revenues. In addition, certain institutional investors, including sovereign wealth funds and public pension funds, have demonstrated an increased
preference for alternatives to the traditional investment fund structure, such as managed accounts, smaller funds and co-investment vehicles. There can be
no assurance that such alternatives will be as profitable for us as the traditional investment fund structure, or as to the impact such a trend could have on the
cost of our operations or profitability if we were to implement these alternative investment structures.
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Although we have no obligation to modify any of our fees with respect to our existing funds, we may experience pressure to do so in our funds, including
in response to regulatory focus by the SEC on the quantum and types of fees and expenses charged by private funds. We have confronted and expect to
continue to confront requests from a variety of investors and groups representing investors to decrease fees, which could result in a reduction in the fees and
Performance Revenues we earn.
The asset management business is intensely competitive.
The asset management business is intensely competitive. Competition is based on a variety of factors, including investment performance, the quality of
client service, investor availability of capital and willingness to invest, fund terms (including fees and liquidity terms), brand recognition and business
reputation. Our asset management business competes with a number of private funds, specialized investment funds, funds structured for individual investors,
hedge funds, funds of hedge funds and other sponsors managing pools of capital, as well as corporate buyers, traditional asset managers, commercial banks,
investment banks and other financial institutions (including sovereign wealth funds). We expect that competition will continue to increase. For example,
certain traditional asset managers have developed their own private equity and private wealth platforms and are marketing other asset allocation strategies
as alternatives to hedge fund investments. A number of factors serve to increase our competitive risks:
•
 
a number of our competitors have greater financial, technical, research, marketing and other resources and more personnel than we do,
•
 
some of our funds may not perform as well as competitors’ funds or other available investment products,
•
 
several of our competitors have significant amounts of capital, and many of them have similar investment objectives to ours, which may create
additional competition for investment opportunities and may reduce the size and duration of pricing inefficiencies that many alternative
investment strategies seek to exploit,
•
 
some of our competitors, particularly strategic competitors, may have a lower cost of capital, which may be exacerbated by limits on the
deductibility of interest expense,
•
 
some of our competitors may have access to funding sources that are not available to us, which may create competitive disadvantages for us with
respect to investment opportunities,
•
 
some of our competitors may be subject to less regulation and accordingly may have more flexibility to undertake and execute certain businesses
or investments than we can and/or bear less compliance cost than we do,
•
 
some of our competitors may have more flexibility than us in raising certain types of investment funds under the investment management
contracts they have negotiated with their investors,
•
 
some of our competitors may have higher risk tolerances, different risk assessments or lower return thresholds, which could allow them to
consider a wider variety of investments and to bid more aggressively than us for investments that we want to make or to seek exit opportunities
through different channels,
•
 
some of our competitors may be more successful than we are in the development of new or customized products to address investor demand for
new or different investment strategies and/or regulatory changes, including with respect to private credit products and products that are
developed for individual investors or that target insurance capital,
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•
 
in order to broaden distribution of their private wealth products, some of our competitors may be willing to pay higher placement, servicing or
other forms of distributor fees, which may adversely impact the amount of capital we are able to raise in the private wealth channel,
•
 
there are relatively few barriers to entry impeding new alternative asset managers, and the successful efforts of new entrants, including former
“star” portfolio managers at large diversified financial institutions as well as such institutions themselves, is expected to continue to result in
increased competition,
•
 
some of our competitors may have better expertise or be regarded by investors as having better expertise in a specific asset class or geographic
region than we do,
•
 
corporate buyers may be able to achieve synergistic cost savings in respect of an investment, which may provide them with a competitive
advantage relative to us when bidding for an investment,
•
 
some investors may prefer to invest with an investment manager that is not publicly traded or is smaller, with a more limited number of
investment products and
•
 
other industry participants will from time to time seek to recruit our investment professionals and other employees away from us.
Additionally, technological innovation, including the use of artificial intelligence, has the potential to disrupt the financial industry and change the way
financial institutions, including asset managers, do business. Some of our competitors may be more successful than we are in the development and
implementation of new technologies, including services and platforms based on artificial intelligence, to address investor demand or improve operations. If
we are unable to adequately advance our capabilities in these areas, or do so at a slower pace than others in our industry, we may be at a competitive
disadvantage.
We may lose investment opportunities if we do not match investment prices, structures and terms offered by competitors. Alternatively, we may
experience decreased rates of return and increased risks of loss if we match investment prices, structures and terms offered by competitors. Moreover, if we
are forced to compete with other alternative asset managers on the basis of price, we may not be able to maintain our current fund fee and carried interest
terms. We have historically competed primarily on the performance of our funds, and not on the level of our fees or carried interest relative to those of our
competitors. However, there is a risk that fees and carried interest in the alternative investment management industry will decline, without regard to the
historical performance of a manager. Further, as part of a shift in the distribution arrangements in the private wealth industry, certain third-party
intermediaries have sought to revise existing or implement new fee arrangements that align their fees with the initial amount or ongoing net asset value of
capital invested through the intermediary in the applicable vehicle. While the extent of this shift going forward is uncertain, the costs associated with the
distribution of certain of our private wealth perpetual products have increased and there may be further increases in distribution costs for these and future
products. The reduction of net management fees or performance allocations we receive, including as a result of new fee arrangements, or the incurrence of
higher costs in connection with product distribution, without corresponding decreases in our cost structure, would adversely affect the profitability of
impacted products. Certain of the third-party intermediaries on whom we rely to distribute our investment products also sell their own competing proprietary
investment products, which could limit the distribution of our products.
In addition, the attractiveness of our investment funds relative to investments in other investment products could decrease depending on economic
conditions. Furthermore, any new or incremental regulatory measures for the U.S. financial services industry may increase costs and create regulatory
uncertainty and additional competition for many of our funds. Conversely, regulatory measures aimed at reducing burden on U.S. banks, such as less onerous
bank regulatory capital requirements, may create additional competition for certain of our credit strategies. See “—Financial regulatory changes in the United
States could adversely affect our business.”
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These competitive pressures could adversely affect our ability to make successful investments and limit our ability to raise future investment funds,
either of which would adversely impact our business, revenue, results of operations and cash flow.
We have increasingly undertaken business initiatives to increase the number and type of investment products we offer to individual investors, which could
expose us to new and greater levels of risk.
Although individual investors have been part of our historic distribution efforts, we have increasingly undertaken business initiatives to increase the
number and type of investment products we offer to high-net-worth individuals, family offices and mass affluent investors in the U.S. and other jurisdictions
around the world. Specifically, we create investment products designed for investment by individual investors in the U.S., some of whom are not accredited
investors, or similar investors in non-U.S. jurisdictions, including in some markets in Europe and Asia Pacific. In some cases, our funds are distributed to such
investors indirectly through third-party managed vehicles sponsored by brokerage firms, private banks or third-party feeder providers, and in other cases
directly to the clients of private banks, independent investment advisors and brokers.
Accessing individual investors and offering products directed at such investors exposes us to greater levels of risk, including heightened litigation and
regulatory enforcement, an increased compliance burden, and more complex administration and accounting operations. We may be subject to claims related
to matters such as the adequacy of disclosures, appropriateness of fees, suitability and board of directors’ oversight, each of which could result in civil
lawsuits, regulatory penalties and enforcement actions. Our registered investment advisers could also be subject to direct or derivative claims from a fund’s
investors or board of directors for alleged mismanagement of the fund. In addition, regulatory requirements imposing limitations on the ability of affiliates of
certain of our vehicles to engage in certain transactions may limit our funds’ ability to engage in otherwise attractive investment opportunities.
To the extent distribution of such products is through new channels and markets, including through an increasing number of distributors with whom we
engage, we may not be able to effectively monitor or control the manner of their distribution. This could result in litigation or regulatory action against us,
including with respect to, among other things, claims that products distributed through such channels are distributed to investors for whom they are
unsuitable, claims related to conflicts of interest or the adequacy of disclosure to investors or claims that the products are distributed in a manner
inconsistent with our regulatory requirements or otherwise inappropriate manner. In addition, regulation applicable to our arrangements with such
distributors and channels increases the compliance burden associated with onboarding new distributors or pursuing new distribution channels, resulting in
increased cost and complexity. Although we engage in due diligence and onboarding procedures that seek to uncover issues relating to the third-party
channels through which individual investors access our investment products, we do not control and have limited information regarding many of these third-
party channels. Therefore, we are exposed to the risks of reputational damage, regulatory scrutiny and legal liability to the extent such third parties
improperly sell our products to investors. This risk is heightened by the continuing increase in the number of third parties through whom we distribute our
investment products around the world and who we do not control. For example, in certain cases, we may be viewed by a regulator as responsible for the
content of materials prepared by third parties.
Similarly, there is a risk that Blackstone employees involved in the direct distribution of our products, or employees who engage with independent
advisors, brokerage firms and other third parties around the world involved in distributing our products, do not follow our compliance and supervisory
procedures. In addition, the distribution of such products, including through new channels whether directly or through market intermediaries, could expose
us to allegations of improper conduct and/or actions by state and federal regulators in the U.S. and regulators in jurisdictions outside of the United States.
Such allegations or actions may be with respect to, among other things, product suitability, distributor eligibility, investor classification, compliance with
securities laws, conflicts of interest and the adequacy of disclosure to investors to whom our products are distributed through those channels.
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As we expand the distribution of products to individual investors outside of the United States, we are increasingly exposed to risks in non-U.S.
jurisdictions. In addition to risks similar to those that we face in the U.S., securities laws and other applicable regulatory regimes can be extensive, complex
and vary by jurisdiction. In addition, the distribution of products to individual investors outside of the U.S. may involve complex structures (such as
distributor-sponsored feeder funds or nominee/omnibus investors) and market practices that vary by local jurisdiction. As a result, this expansion subjects us
to additional complexity, litigation and regulatory risk.
Our efforts to continue to grow the assets we manage on behalf of individual investors may not be successful. Furthermore, our initiatives to expand our
individual investor base, including outside of the United States, requires the investment of significant time, effort and resources, including the potential hiring
of additional personnel, the implementation of new operational, compliance and other systems and processes and the development or implementation of
new technology. In addition, as the distribution of products to individual investors continues to grow across the alternative asset management industry,
regulators may seek to impose new regulatory oversight, disclosure and other requirements that make such distribution more difficult or resource intensive.
We depend on our co-founder and other key senior managing directors and personnel, and the loss of their services would have a material adverse effect
on our business, results and financial condition.
We depend on the efforts, skill, reputations and business contacts of our co-founder, Stephen A. Schwarzman, our President, Jonathan D. Gray, and other
key senior managing directors and personnel, the information and deal flow they generate during the normal course of their activities and the synergies
among the diverse fields of expertise and knowledge held by our professionals. Accordingly, our success will depend on the continued service of these
individuals, who are not obligated to remain employed with us. Several key personnel have left the firm in the past and others may do so in the future, and we
cannot predict the impact that the departure of any key personnel will have on our ability to achieve our investment objectives. For example, the governing
agreements of many of our funds generally provide investors with the ability to terminate the investment period in the event that certain “key persons” in the
fund do not meet the specified time commitment to the fund or our firm ceases to control the general partner. The loss of the services of any key personnel
could have a material adverse effect on our revenues, net income and cash flows and could harm our ability to maintain or grow assets under management in
existing funds or raise additional funds in the future. Our senior managing directors and other key personnel possess substantial experience and expertise and
have strong business relationships with our investors and other members of the business community. As a result, the loss of these personnel could jeopardize
our relationships with such parties and result in the reduction of assets under management or fewer investment opportunities.
We have historically relied in part on the interests of these professionals in the investment funds’ carried interest and incentive fees to discourage them
from leaving the firm. However, to the extent our investment funds perform poorly, thereby reducing the potential for carried interest and incentive fees,
their interests in carried interest and incentive fees become less valuable to them and become less effective as incentives for them to continue to be
employed at Blackstone. We might not be able to provide future key personnel with interests in our business to the same extent or with the same tax
consequences from which our existing personnel previously benefited. For example, U.S. federal income tax law currently imposes a three-year holding period
requirement for carried interest to be treated as long-term capital gains. The holding period requirement may result in some of the carried interest received
by such individuals being treated as ordinary income, which would materially increase the amount of taxes that such key personnel would be required to pay.
The tax treatment of carried interest continues to be an area of focus for policymakers and government officials. The current U.S. Presidential administration’s
stated tax priorities include changes to the tax treatment of carried interest that, if implemented, would materially increase the amount of taxes many of our
key personnel would be required to pay. The levying of additional taxes on carried interest, or possible increase in state law tax rates, along with changing
opinions regarding living in some geographies where we have offices, may adversely affect our ability to recruit, retain and motivate our current and future
professionals.
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There is no guarantee that the non-competition and non-solicitation agreements to which our senior managing directors and other key personnel are
subject, together with our other arrangements with them, will prevent them from leaving, joining our competitors or otherwise competing with us. Such
agreements also expire after a certain period of time, at which point such personnel would be free to compete against us and solicit our clients and
employees. In addition, such agreements may not be enforceable in all cases, particularly as U.S. states and/or federal agencies enact legislation or adopt
rules aimed at effectively prohibiting non-competition agreements. For example, the U.S. Federal Trade Commission (the “FTC”) approved a rule in 2024 that
generally prohibits post-employment non-competition provisions in agreements between employers and their employees. While this rule is currently
unenforceable due to ongoing litigation, we cannot predict with certainty whether such rules will ultimately be overturned or if a court will enforce any
particular non-competition agreement to which our senior managing directors or other key personal are subject if challenged. Further, legislation that would
prohibit post-employment non-competition agreements except in limited circumstances has been introduced in New York.
We strive to maintain a work environment that reinforces our culture of collaboration, motivation and alignment of interests with investors. If we do not
continue to develop and implement the right processes and tools to maintain this culture, particularly in light of rapid and significant growth in our scale,
global presence and employee population, our ability to compete successfully and achieve our business objectives could be impaired, which could negatively
impact our business, financial condition and results of operations.
Changes in U.S. and foreign taxation of businesses and other tax laws, regulations or treaties or an adverse interpretation of these items by tax authorities
could adversely affect us, including by adversely impacting our effective tax rate and tax liability.
Our effective tax rate and tax liability is based on the application of current income tax laws, regulations and treaties. These laws, regulations and treaties
are complex, and the manner which they apply to us and our funds is sometimes open to interpretation. Significant management judgment is required in
determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets.
Although management believes its application of current laws, regulations and treaties to be correct and sustainable upon examination by tax authorities, tax
authorities have challenged and could challenge in the future our interpretation of such laws, regulations and treaties or our taking of certain tax positions on
the basis of such interpretation. This could result in penalties, interest payments and/or additional tax liability or adjustment to our income tax provision that
could increase our effective tax rate.
Past and future changes to tax laws and regulations may have an adverse impact on us. Such changes could materially change the amount and/or timing
of tax we and our portfolio companies may be required to pay and may increase tax-related regulatory and compliance costs. Both the current U.S.
Presidential administration and certain members of the U.S. Congress have stated that one of their top legislative priorities is significant reform of the Internal
Revenue Code and other federal tax laws. Among other things, they may pursue tax policies seeking to alter the income tax rates and brackets applicable to
corporations and individuals (including changing the tax treatment of carried interest), exempt certain types of income from taxation, eliminate clean energy
subsidies enacted by the Inflation Reduction Act of 2022 and provide tax incentives for domestic production. The timing and details of any such tax reform,
and the impact on us, our personnel, and our funds’ portfolio companies is uncertain.
In addition, the U.S. Congress, the Organization for Economic Co-operation and Development (“OECD”) and other government agencies in jurisdictions in
which we and our affiliates invest or do business have maintained a focus on issues related to the taxation of multinational companies. The OECD, which
represents a coalition of member countries, has sought to make changes to numerous long-standing tax principles through its base erosion and profit shifting
(“BEPS”) project, which is focused on a number of issues, including the shifting of profits between affiliated entities in different tax jurisdictions, interest
deductibility and eligibility for the benefits of double tax treaties. Several of the measures are potentially relevant to some of our structures and could have an
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adverse tax impact on our funds, investors and/or our funds’ portfolio companies. Some member countries have been moving forward on the BEPS agenda
but, because timing of implementation and the specific measures adopted will vary among participating member countries, uncertainty remains regarding the
impact of BEPS. Such measures could result in a loss of tax treaty benefits and increased taxes on returns from our investments.
The OECD is also working on a two-pillar initiative, which is aimed at (a) shifting taxing rights to the jurisdiction of the consumer (“Pillar One”) and
(b) ensuring all companies pay a global minimum tax (“Pillar Two”). Under Pillar Two, certain entities within a multinational group will be subject to top-up
taxes where the overall tax paid on the group’s profit in any jurisdiction falls below the minimum 15% effective tax rate. The EU, among other regions
implementing or intending to implement these rules, adopted Pillar Two and required that all EU member states adopt local legislation to implement such
rules beginning December 31, 2023. However, the United States is not expected to adopt Pillar Two, creating additional uncertainty as to the application of
these rules to multinational enterprises with a U.S. parent entity. Pillar One and Pillar Two could result in increased effective tax rates, possible denial of
deductions, withholding taxes and/or profits being allocated differently and increased complexity, burden and cost of tax compliance for us and our funds’
portfolio companies. Given the ongoing design, implementation, administration and interpretation of Pillar One and Pillar Two, the timing, scope and impact
of any relevant domestic legislation or multilateral conventions remain uncertain.
Cybersecurity and data protection risks could result in the loss of data, interruptions in our business, and damage to our reputation, and subject us to
regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations.
Our operations are highly dependent on our technology platforms and we rely heavily on our analytical, financial, accounting, communications and other
data processing systems. Our systems face ongoing cybersecurity threats and attacks, which could result in the loss of confidentiality, integrity or availability of
such systems and the data held by such systems. Attacks on our systems could involve, and in some instances have in the past involved, attempts intended to
obtain unauthorized access to our proprietary information, destroy data or disable, degrade or sabotage our systems, or divert or otherwise steal funds,
including through the introduction of computer viruses, “phishing” attempts and other forms of social engineering. Attacks on our systems could also involve
ransomware or other forms of cyber extortion. Cyberattacks and other data security threats could originate from a wide variety of external sources, including
cyber criminals, nation state hackers, hacktivists and other outside parties. Cyberattacks and other security threats could also originate from the malicious or
accidental acts of insiders, such as employees, consultants, independent contractors or other service providers.
There has been an increase in the frequency and sophistication of the cyber and data security threats we face, with attacks ranging from those common
to businesses generally to those that are more advanced and persistent. Such attacks may target us because, as an alternative asset management firm, we
hold a significant amount of confidential and sensitive information about our investors, our funds’ portfolio companies and potential investments. As a result,
we may face a heightened risk of a security breach or disruption with respect to this information. Measures we take to ensure the integrity of our systems
may not provide adequate protection, especially because cyberattack techniques are continually evolving, may persist undetected over extended periods of
time, and may not be mitigated in a timely manner to prevent or minimize the impact of an attack on Blackstone, our investors, our portfolio companies or
potential investments. If our systems or those of third-party service providers are compromised either as a result of malicious activity or through inadvertent
transmittal or other loss of data, do not operate properly or are disabled, or we fail to provide the appropriate regulatory or other notifications in a timely
manner, we could suffer financial loss, increased costs, a disruption of our businesses, liability to our counterparties, investment funds or fund investors,
regulatory intervention or reputational damage. The costs related to cyber or other data security threats or disruptions may not be fully insured or
indemnified by other means.
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In addition, we could also suffer losses in connection with updates to, or the failure to timely update, the technology platforms on which we rely. We are
reliant on third-party service providers for certain aspects of our business, including for the administration of certain funds, as well as for certain technology
platforms, including cloud-based services. These third-party service providers also face ongoing cybersecurity threats and compromises of their systems.
These cybersecurity threats and compromises could occur as a result of threat actors impersonating Blackstone or its employees, including through the use of
artificial intelligence technologies. Such technologies could make such impersonation more likely to occur or appear more credible. As a result, unauthorized
individuals could gain, and in some past instances have gained, access to certain confidential data.
Cybersecurity, privacy and data protection have become top priorities for regulators around the world. Many jurisdictions in which we operate have laws
and regulations relating to privacy, data protection and cybersecurity, including, as examples, the General Data Protection Regulation (“GDPR”) in the
European Union, the U.K. Data Protection Act, and the California Privacy Rights Act (“CPRA”). Some jurisdictions have also enacted or proposed laws requiring
companies to notify individuals and government agencies of data security breaches involving certain types of personal data. For example, in February 2022,
the SEC proposed rules regarding registered investment advisers’ and funds’ cybersecurity risk management requiring the adoption and implementation of
cybersecurity policies and procedures, enhanced disclosure in regulatory filings and prompt reporting of incidents to the SEC. if adopted, such rules could
increase our compliance costs and potential regulatory liability related to cybersecurity. In light of the focus of federal regulators on cybersecurity, SEC
enforcement activity, including by the SEC’s Office of Compliance Inspections and Examinations in its examination programs, has increased in recent years and
may increase further. Although we maintain cybersecurity controls designed to prevent cyber incidents from occurring, no security is impenetrable to
cyberattacks. It is possible that current and future cyber enforcement activity will target practices that we believe are compliant, but the SEC deems
otherwise. See “—Rapidly developing and changing privacy, data protection and cybersecurity laws and regulations could further increase compliance costs
and subject us to enforcement risks and reputational damage”.
Breaches in our security or in the security of third-party service providers, whether malicious in nature or through inadvertent transmittal or other loss of
data, could potentially jeopardize our, our employees’ or our fund investors’ or counterparties’ confidential, proprietary and other information processed and
stored in, and transmitted through, our computer systems and networks. Breaches could also potentially cause interruptions or malfunctions in our, our
employees’, our fund investors’, our counterparties’ or third parties’ business and operations, which could result in significant financial losses, increased costs,
liability to our fund investors and other counterparties, regulatory intervention and reputational damage. Furthermore, if we fail to comply with the relevant
laws and regulations or fail to provide the appropriate regulatory or other notifications of breach in a timely matter, it could result in regulatory investigations
and penalties, which could lead to negative publicity and reputational harm and may cause our fund investors and clients to lose confidence in the
effectiveness of our security measures and Blackstone more generally.
Our funds’ portfolio companies also rely on data processing systems and the secure processing, storage and transmission of information, including
payment and health information, which in some instances are provided by third parties. A disruption or compromise of these systems could have a material
adverse effect on the value of these businesses. Our funds may invest in strategic assets having a national or regional profile or in infrastructure, the nature of
which could expose them to a greater risk of being subject to a terrorist attack or a security breach than other assets or businesses. Such an event may have
material adverse consequences on our investment or assets of the same type or may require portfolio companies to increase preventative security measures
or expand insurance coverage.
Our and our funds’ portfolio companies’ technology platforms, data and intellectual property are also subject to a heightened risk of theft or compromise
to the extent we or our funds’ portfolio companies engage in operations outside the United States, in particular in those jurisdictions that do not have
comparable levels of protection of proprietary information and assets such as intellectual property, trademarks, trade secrets, know-
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how and customer information and records. In addition, we and our funds’ portfolio companies may be required to compromise protections or forego rights
to technology, data and intellectual property in order to operate in or access markets in a foreign jurisdiction. Any such direct or indirect compromise of these
assets could have a material adverse impact on us and our funds’ portfolio companies.
Rapidly developing and changing global data security and privacy laws and regulations could increase compliance costs and subject us to enforcement
risks and reputational damage.
We and our funds’ portfolio companies are subject to various risks and costs associated with the collection, storage, transmission and other processing of
personal data. This personal data is wide ranging and relates to our investors, employees, contractors and other counterparties and third parties. Any inability,
or perceived inability, by us to adequately address privacy concerns, or comply with applicable privacy laws, regulations, policies, industry standards, or
related contractual obligations, even if unfounded, could result in regulatory and third-party liability, increased costs, disruptions to business and operations,
and reputational damage. Furthermore, any such inability or perceived inability of our funds’ portfolio companies, even if unfounded, could result in
reputational damage to us.
Data security and privacy compliance obligations to which we are subject impose compliance costs on us, which could increase significantly as laws and
regulations evolve globally. Our compliance obligations include those relating to U.S. laws and regulations, including, without limitation, state regulations such
as the CPRA, which provides for enhanced consumer protections for California residents, a private right of action for data breaches and statutory fines and
damages for data breaches or other California Consumer Privacy Act (“CCPA”) violations, as well as a requirement of “reasonable” cybersecurity. At the U.S.
federal level, the SEC has adopted amendments to Regulation S-P that will take effect in 2025. These amendments impose operationally challenging
notification requirements and deadlines and obligations to implement written policies and procedures to govern oversight of service providers that will likely
increase associated compliance costs.
Our compliance obligations also include those relating to foreign data collection and privacy laws, including, for example, the GDPR and U.K. Data
Protection Act, as well as laws in many other jurisdictions globally, including Switzerland, Japan, Hong Kong, Singapore, India, China, Australia, Canada and
Brazil. Global laws in this area are rapidly increasing in the scale and depth of their requirements, and are also often extra-territorial in nature. In addition, a
wide range of regulators and private actors are seeking to enforce these laws across regions and borders. Furthermore, we frequently have privacy
compliance requirements as a result of our contractual obligations with counterparties. These legal, regulatory and contractual obligations heighten our data
protection and privacy obligations in the ordinary course of conducting our business in the U.S. and internationally.
Any inability, or perceived inability, by us or our funds’ portfolio companies to adequately address data protection or privacy concerns, or comply with
applicable laws, regulations, policies, industry standards and guidance, contractual obligations, or other legal obligations, even if unfounded, could result in
significant legal, regulatory and third-party liability, increased costs, disruption of our and our funds’ portfolio companies’ business and operations, and a loss
of client (including investor) confidence and other reputational damage. Many regulators have indicated an intention to take more aggressive enforcement
actions regarding data privacy matters, and private litigation resulting from such matters is increasing and resulting in progressively larger judgments and
settlements. Specifically, the SEC’s stated examination priorities include an intended focus on adviser’s policies and procedures, internal controls, oversight of
third-party vendors and governance practices as it pertains to the safeguarding of customer records. Furthermore, as new data protection and privacy-related
laws and regulations are implemented, the time and resources needed for us and our funds’ portfolio companies to comply with such laws and regulations
continues to increase and become a significant compliance workstream.
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Technological developments in artificial intelligence could disrupt the markets in which we operate and subject us to increased competition, legal and
regulatory risks and compliance costs.
Technological developments in artificial intelligence, including machine learning technology and generative artificial intelligence (collectively, “AI
Technologies”) and their current and potential future applications, including in the private investment and financial sectors, as well as the legal and regulatory
frameworks within which they operate, are rapidly evolving. The full extent of current or future risks related thereto is not possible to predict and we may not
be able to anticipate, prevent, mitigate or remediate all of the potential risks, challenges or impacts of such changes. AI Technologies could significantly
disrupt the business models, investment strategies, operational processes, and markets in which we operate and subject us to increased competition, legal
and regulatory risks and compliance costs, which could have a material adverse effect on our business, financial condition and results of operations.
Advancements in computing and AI Technologies, including efficiency improvements, without related increases in the adoption and development of such
technologies, could also negatively impact demand for, and the valuation of, digital infrastructure assets, a sector to which certain of our investment strategies
have significant exposure.
Through our use of AI technologies, we avail ourselves of the potential benefits, insights and efficiencies resulting from these technologies. For example,
our employees can utilize internal generative AI-powered applications to help summarize, search or translate documents or gather information on a wide
variety of topics. However, these technologies also present a number of potential risks that cannot be fully mitigated. If the data we, or third parties whose
services we rely on, use in connection with the possible development or deployment of AI Technologies is incomplete, inadequate or biased in some way, the
performance of our products, services, and businesses could suffer. Data in models that AI Technologies utilize are likely to contain a degree of inaccuracy and
error, which could result in flawed algorithms. This could reduce the effectiveness of AI Technologies and adversely impact us and our operations to the extent
we rely on the work product of such AI Technologies in such operations. The volume and reliance on data and algorithms also make AI Technologies, and in
turn us and our portfolio companies and investments, more susceptible to cybersecurity threats, including the compromise of underlying models, training
data, or other intellectual property. We, our funds, our portfolio companies and our funds’ investments could be exposed to risks to the extent third-party
service providers, or any counterparties use AI Technologies in their business activities. There is also a risk that AI Technologies may be misused or
misappropriated by our employees and/or third parties engaged by us. For example, a user may input confidential information, including material non-public
information or personal identifiable information, into AI Technology applications, resulting in such information becoming part of a dataset that is accessible by
third-party AI Technology applications and users, including our competitors. Such actions could subject us to legal and regulatory investigations and/or
actions. In addition, we may not be able to control how third-party AI Technologies that we choose to use are developed or maintained, or how data we input
is used or disclosed, even where we have sought contractual protections with respect to these matters. We may be subject to legal and regulatory
investigations and/or actions related to our use of AI Technologies, including as related to alleged misuse or misappropriation of our data. This could also have
an adverse impact on our reputation. We may also communicate externally regarding AI Technology-related initiatives, including our development and use of
AI Technologies, which subjects us to the risk of being accused of making inaccurate or misleading statements regarding our ability to avail ourselves of the
potential benefits of AI Technology.
Regulations related to AI Technologies may also impose on us certain obligations and costs related to monitoring and compliance. For example, in April
2023, the Federal Trade Commission, U.S. Department of Justice, Consumer Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission
released a joint statement on artificial intelligence demonstrating interest in monitoring the development and use of automated systems and enforcement of
their respective laws and regulations. In October 2023, an executive order established new standards for AI safety and security. In addition to the U.S.
regulatory framework, in 2024, the EU adopted the Artificial Intelligence Act in 2024, which applies to certain AI Technologies and the data used to train, test
and deploy them, which may create additional compliance burdens, higher administrative costs and significant penalties should we fail to comply.
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Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties. The possibility of increased
regulatory focus could result in additional burdens on our business.
Our business is subject to extensive regulation, including periodic examinations, inquiries and investigations, by governmental agencies and
self-regulatory organizations in the jurisdictions in which we operate around the world. These authorities have regulatory powers dealing with many aspects
of financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on particular activities. Many of these
regulators, including U.S. and foreign government agencies and self-regulatory organizations, as well as state securities commissions in the United States, are
also empowered to conduct examinations, inquiries, investigations and administrative proceedings that can result in fines, suspensions of personnel, changes
in policies, procedures or disclosure or other sanctions, including censure, the issuance of cease-and-desist orders, the suspension or expulsion of a
broker-dealer or investment adviser from registration or memberships or the commencement of a civil or criminal lawsuit against us or our personnel.
The financial services industry in recent years has been the subject of heightened scrutiny, and the SEC has specifically focused on private equity and the
private funds industry. In that connection, in recent years the SEC’s stated examination priorities and published observations from examinations have
included, among other things, private equity firms’ collection of fees and allocation of expenses, their marketing and valuation practices, allocation of
investment opportunities, investor side letter terms, consistency of firms’ practices with disclosures, handling of material non-public information and insider
trading, disclosures of investment risk, conflicts of interest, adherence to notice, consent and other contractual requirements regarding limited partnership
advisory committees, fiduciary standards of conduct, financial technologies, and compliance with the SEC’s recently adopted rules, including those referenced
herein.
In recent years, the SEC has proposed, and in some instances, adopted, a number of rules related to private funds and private fund advisors that impact
our business and operations. For example, the SEC (in May 2023) and the SEC and CFTC jointly (in February 2024) adopted changes to Form PF, a confidential
form relating to reporting by private fund advisers and intended to be used by the Financial Stability Oversight Counsel (“FSOC”) for systemic risk oversight
purposes, that expand existing reporting obligations. Such increased obligations may increase our costs, including if we are required to spend more time, hire
additional personnel, or buy new technology to comply effectively.
The SEC has also proposed several other rules that may impact our operations. For example, an October 2022 SEC proposal would, if adopted, impose
substantial obligations on registered investment advisers to conduct initial due diligence and ongoing monitoring of a broad universe of service providers that
we may use in our investment advisory business. If adopted, these new rules could significantly increase compliance burdens and associated regulatory costs
and complexity for us and enhance the risk of regulatory action, which could adversely impact our reputation and our fundraising efforts, including as a result
of regulatory sanctions. Moreover, in February 2023, the SEC proposed extensive amendments to the custody rule for SEC-registered investment advisers
which would apply to all assets of an advisory client, including real estate and other assets that generally are not considered securities under the federal
securities laws. If adopted, the amendments would require, among other things, that qualified custodians maintain possession of and control of assets of
advisory clients and participate in or effectuate any changes of such assets’ beneficial ownership. There is a lack of clarity as to whether all assets held by
Blackstone’s advisory clients can be custodied in a manner that satisfies the proposed rule or whether existing qualified custodians will provide custodial
services for such assets at a reasonable cost or at all. If adopted, these amendments could expose our registered investment advisers to additional regulatory
liability, increase compliance costs and impose limitations on our investing activities. Whether such proposed rules will ultimately be adopted, or, if adopted,
what the full extent of their impact would be is unclear. The general anticipation is that, if adopted, these proposed rules will increase regulatory and
compliance costs, place burdens on our resources, including the time and attention of our personnel, and heighten the risk of regulatory action.
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We regularly are subject to requests for information, inquiries and informal or formal investigations by the SEC and other regulatory authorities, with
which we routinely cooperate, and which have included review of historical practices that were previously examined. Such investigations have previously and
may in the future result in penalties and other sanctions. SEC actions and initiatives can have an adverse effect on our financial results, including as a result of
the imposition of a sanction, a limitation on our or our personnel’s activities, or changing our historic practices. Even if an investigation or proceeding did not
result in a sanction, or the sanction imposed against us or our personnel by a regulator were small in monetary amount, the adverse publicity relating to the
investigation, proceeding or imposition of these sanctions could harm our reputation and cause us to lose existing clients or fail to gain new clients. In
addition, certain states and other regulatory authorities have required investment managers to register as lobbyists, and we have registered as such in a
number of jurisdictions. Other states or municipalities may consider similar legislation or adopt regulations or procedures with similar effect. These
registration requirements impose significant compliance obligations on registered lobbyists and their employers, which may include annual registration fees,
periodic disclosure reports and internal recordkeeping.
We are subject to increasing scrutiny from regulators, elected officials, stockholders, investors and other stakeholders with respect to sustainability
matters, which may adversely impact our ability to raise capital from certain investors, constrain capital deployment opportunities for our funds and harm
our brand and reputation.
We, our funds and their portfolio companies are subject to increasing scrutiny from regulators, elected officials, stockholders, investors and other
stakeholders with respect to sustainability matters. In recent years, alternative asset managers have become subject to competing demands from different
investors and other stakeholder groups with divergent views on sustainability matters, including the role of such matters in the investment process. Certain
investors, including public pension funds, have placed increasing importance on the impacts of investments made by the private funds to which they commit
capital, including with respect to climate change, among other aspects of sustainability. At times, investors, including public pension funds, have limited
participation in certain investment opportunities, such as hydrocarbons, and/or conditioned future capital commitments to certain funds on the
implementation of screens or other sector-specific investment guidelines. Conversely, certain investors have raised concerns as to whether the incorporation
of sustainability factors in the investment and portfolio management process may be inconsistent with the fiduciary duty to maximize return for investors, or
may result in the subordination of the interests of investors based solely or in part on sustainability considerations. Investors, including public pension funds,
which represent a significant portion of our funds’ investor bases, may decide to withdraw previously committed capital (where such withdrawal is permitted)
or not commit capital to future fundraises based on their assessment of how we approach and consider the sustainability cost of investments and whether
the return-driven objectives of our funds align with their sustainability priorities. This divergence increases the risk that any action or lack thereof with respect
to sustainability matters will be perceived negatively by at least some stakeholders and adversely impact our reputation and business. If we do not
successfully manage sustainability-related expectations across the varied interests of our stakeholders, including existing or potential investors, our ability to
access and deploy capital may be adversely impacted. In addition, a failure to successfully manage sustainability-related expectations may negatively impact
our reputation and erode stakeholder trust.
Certain investors also have begun to request or require data from their asset managers and/or use third-party benchmarks and ratings to allow them to
monitor the sustainability impact of their investments. Regulatory initiatives to require investors to make disclosures to their stakeholders regarding
sustainability matters have become increasingly common in certain jurisdictions, which may further increase the number and type of investors who place
importance on these issues and who demand certain types of reporting from us or our funds. In addition, government authorities of certain U.S. states have
requested information from and scrutinized certain asset managers with respect to whether such managers have adopted sustainability policies that would
restrict
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such asset managers from investing in certain industries or sectors, such as conventional energy. These authorities have indicated that such asset managers
may lose opportunities to manage money belonging to these states and their pension funds to the extent the asset managers boycott certain industries. This
may impair our ability to access capital from certain investors, and we may in turn not be able to maintain or increase the size of our funds or raise sufficient
capital for new funds, which may adversely impact our revenues.
There has been increased regulatory focus on sustainability-related practices by investment managers and the accuracy of statements made regarding
such practices, including whether such statements are inaccurate or misleading, either because they overstate (often referred to as “greenwashing”) or
understate the extent to which such investment managers are engaging in sustainability-related practices. The SEC has commenced enforcement actions
against several investment advisers relating to sustainability disclosures and policies and procedures failures. Any perception or accusation that we are
overstating, or, conversely, understating our engagement in sustainability-related practices could damage our reputation, result in litigation or regulatory
actions, and adversely impact our ability to raise capital and attract new investors. Outside of the United States, the European regulatory environment for
alternative investment fund managers and financial services firms continues to evolve and increase in complexity, making compliance more costly and
time-consuming. See “—Climate change, climate and sustainability-related regulation and sustainability concerns could adversely affect our business and the
operations of our funds’ portfolio companies, and any actions we take or fail to take in response to such matters could damage our reputation.”
We may also communicate certain initiatives regarding environmental, human capital management, and other sustainability-related matters in our SEC
filings or in other disclosures by us or our funds. These initiatives could be difficult and expensive to implement, the personnel, processes and technologies
needed to implement them may not be cost effective and may not advance at a sufficient pace, and we may not be able to accomplish them within the
timelines we announce or at all. We could, for example, determine that it is not feasible or practical to implement or complete certain of such initiatives based
on cost, timing or other considerations.
Furthermore, we could be criticized for the accuracy, adequacy or completeness of the disclosure related to our or our funds’ sustainability-related
policies, practices and initiatives (and progress on those initiatives), which disclosure may be based on frameworks and standards for measuring progress that
are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. In addition, we could be
criticized for the scope or nature of such initiatives, or for any revisions to these initiatives. Further, as part of our sustainability practices, we rely from time to
time on third-party data, services and methodologies and such services, data and methodologies could prove to be incomplete or inaccurate. If our or such
third parties’ sustainability-related data, processes or reporting are incomplete or inaccurate, or if we fail to achieve progress on a timely basis, or at all, we
may be subject to enforcement action and our reputation could be adversely affected, particularly if in connection with such matters we were to be accused
of greenwashing.
Climate change, climate and sustainability-related regulation and sustainability concerns could adversely affect our businesses and the operations of our
funds’ portfolio companies, and any actions we take or fail to take in response to such matters could damage our reputation.
We, our funds and our funds’ portfolio companies face risks associated with climate change including risks related to the impact of climate- and
sustainability-related legislation and regulation (both domestically and internationally), risks related to business trends related to climate change and
technology (such as the process of transitioning to a lower-carbon economy), and risks stemming from the physical impacts of climate change.
Climate and sustainability-related regulations or interpretations of existing laws may result in enhanced disclosure obligations, which could negatively
affect us, our funds and our funds’ portfolio companies and materially increase the regulatory burden and cost of compliance. For example, in recent years
the EU has adopted the Corporate Sustainability Reporting Directive (“CSRD”), the Sustainable Finance Disclosure Regulation (“SFDR”)
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and its corresponding Taxonomy Regulation, and the Corporate Sustainability Due Diligence Directive (“CSDDD”), while the U.K. has published final rules for its
Sustainability Disclosure Requirements and investment labels regime (“SDR”). In June 2024, BELL began reporting certain U.K.-law required climate-related
financial information in line with the Task Force on Climate-Related Financial Disclosure’s recommendations. Several U.S. states are also at various stages of
seeking to regulate climate-related disclosures. For example, California has enacted, and legislators in New York have introduced, climate disclosure laws that
could require us to report on, among other matters, greenhouse gas emissions and climate-related risks. These frameworks have detailed disclosure
requirements that would impact us and/or certain of our funds and may conflict with certain of our other regulatory obligations, such as limitations on
general solicitation for private funds. As a consequence, we may be unable to fully comply with some requirements of these new regimes, which could result
in regulatory actions against us. In addition, the current U.S. Presidential administration or the U.S. Congress may seek to modify policies or regulations of the
prior administration, including limitations on coal and gas electric generation, mining and/or exploration, as well as various tax incentives under the Inflation
Reduction Act intended to spur clean energy investment. While certain of our funds’ portfolio companies and investments may benefit from such policies,
certain other portfolio companies and investments focused on renewables or other forms of “green energy” may be adversely impacted.
Moreover, collecting, measuring and reporting the information and metrics required under various existing regulations has imposed administrative
burden and increased cost on us. Such burden and cost are likely to increase if new or proposed regulations are enacted, particularly if the requirements
imposed on us by various regulations lack harmonization on a global basis. We may also communicate certain climate-related initiatives, commitments and
goals in our SEC filings or in other disclosures, which subjects us to additional risks, including the risk of being accused of greenwashing.
Certain of our funds’ portfolio companies operate in sectors that could face transition risk. For certain of our funds’ portfolio companies, business trends
related to climate change may require capital expenditures, product or service redesigns, and changes to operations and supply chains to meet changing
customer expectations. While this can create opportunities, not addressing these changed expectations could create business risks for portfolio companies,
which could negatively impact the value of such companies and the returns in our funds. For example, significant chronic or acute physical effects of climate
change, including extreme weather events such as hurricanes, floods, or wildfires, can have an adverse impact on certain of our funds’ portfolio companies
and investments, especially our real asset investments and portfolio companies that rely on physical factories, plants, stores or other assets located in the
affected areas, or that focus on tourism or recreational travel. As the effects of climate change increase, we expect the frequency and impact of weather- and
climate-related events and conditions to increase as well.
In addition, our reputation and fundraising may be harmed if certain stakeholders, such as our limited partners or stockholders, believe that we are not
adequately or appropriately responding to climate change or, conversely, are focusing on climate change in a way that is inconsistent with our fiduciary duty
obligations, including through the way in which we operate our business, the composition of our funds’ existing portfolios, the new investments made by our
funds, or the decisions we make to continue to conduct or change our activities in response to climate change considerations. Moreover, we face business
trends related to climate change risks, such as, for example, the increased attention to sustainability considerations by our fund investors, including in
connection with their determination of whether to invest in our funds. See “—We are subject to increasing scrutiny from regulators, elected officials,
stockholders, investors and other stakeholders with respect to sustainability matters, which may adversely impact our ability to raise capital from certain
investors, constrain capital deployment opportunities for our funds and harm our brand and reputation.”
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Financial regulatory changes in the United States could adversely affect our business.
The financial services industry continues to be the subject of heightened regulatory scrutiny in the United States. There has been active debate over the
appropriate extent of regulation and oversight of private investment funds and their managers. Our business may be adversely affected by new or revised
regulations imposed by the SEC or other U.S. governmental regulatory authorities or self-regulatory organizations that supervise the financial markets. Our
business also may be adversely affected by changes in the interpretation or enforcement of existing laws and regulations by these governmental authorities
and self-regulatory organizations. Further, new regulations or interpretations of existing laws may result in enhanced disclosure obligations, including with
respect to climate matters, which could materially increase the regulatory burden imposed on us, our funds or our funds’ portfolio companies.
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in July 2010, imposed significant changes on almost
every aspect of the U.S. financial services industry, including aspects of our business. The Dodd-Frank Act created the FSOC, an interagency body charged with
identifying and monitoring systemic risk to financial markets. The FSOC can designate certain financial companies as nonbank financial companies subject to
supervision by the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). If we were to be designated as such by the FSOC, or if any
of our business activities were to be identified by the FSOC as warranting enhanced regulation or supervision by certain regulators, we could be subject to a
materially greater regulatory burden. This could adversely impact our compliance and other costs, the implementation of certain of our investment strategies
and our profitability. Under the Dodd-Frank Act, whistleblowers who voluntarily provide original information to the SEC can receive compensation and
protection, including payment equal to between 10% and 30% of certain monetary sanctions imposed in a successful government action resulting from the
information provided by the whistleblower.
Whistleblower claims have increased significantly since the enactment of these provisions and in the 2023 fiscal year the SEC awarded approximately
$600 million to 68 individuals. Addressing such claims could generate significant expenses and take up significant management time for us and our funds’
portfolio companies, even if such claims are frivolous or without merit.
Rule 206(4)-5 under the Advisers Act regulates “pay to play” practices by investment advisers involving campaign contributions and other payments to
elected state and local officials who have the ability to, directly or indirectly, influence the hiring of an investment adviser by a government entity. The rule
prohibits investment advisers from providing advisory services for compensation to a government plan investor for two years, subject to limited exceptions,
after the investment adviser, its senior executives or certain other “covered associates” make a disqualifying political contribution or payment to any such
government official. There have also been similar rules on at the state level. Any failure on our part to comply with such rules could result in enforcement
action, expose us to significant penalties and reputational damage and disqualify us from relying on private offering securities exemptions pursuant to which
we raise a material portion of our investor capital.
The SEC has adopted “Regulation Best Interest,” which imposes a “best interest” standard of care for broker-dealers when recommending certain
securities transactions to a customer. Regulation Best Interest requires such broker-dealers to evaluate available alternatives, including those that may have
lower expenses and/or lower investment risk than our investment funds. The continued regulatory focus on Regulation Best Interest may negatively impact
whether certain broker-dealers and their associated persons are willing to recommend investment products, including certain of our funds, to retail
customers, which may adversely impact our ability to distribute our products to certain investors. Furthermore, the U.S. Department of Labor as well as
several states have proposed regulations or taken other actions pertaining to conduct standards for investment advisers and broker-dealers that may result in
additional requirements related to our business. Additionally, the SEC has instituted and settled multiple actions against investment advisers for violating its
2022 amended marketing rule, which imposed more prescriptive requirements on fund marketing.
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The potential for governmental policy and/or legislative changes and regulatory reform may create regulatory uncertainty for our investment strategies,
may make it more difficult to operate our business, and may adversely affect the profitability of our funds’ portfolio companies.
Governmental policy and/or legislative changes and regulatory reform could make it more difficult for us to operate our business, including by impeding
fundraising or making certain investments or investment strategies unattractive or less profitable. In addition, our ability to identify business and other risks
associated with new investments depends in part on our ability to anticipate and accurately assess regulatory, legislative and other changes that may have a
material impact on our funds’ investments. Anticipating policy changes and reforms may be particularly difficult during periods of heightened partisanship at
the federal, state and local levels, including due to the divisiveness surrounding populist movements, political disputes and socioeconomic issues. The failure
to accurately anticipate the possible outcome of such changes and/or reforms could have a material adverse effect on the returns generated from our funds’
investments and our revenues.
In recent years, there has been increased regulatory enforcement activity and rulemaking impacting the financial services industry. Under the prior U.S.
administration and at the SEC and certain other regulatory bodies, policy changes could impose additional costs on us or our funds’ investments, require
significant attention of senior management or result in limitations on the manner in which we or the companies in which we invest conduct business. We
cannot predict at this time whether and the extent to which the current U.S. Presidential administration and newly-appointed senior officials at the SEC and
other federal agencies will pursue these or other policy changes. Such changes or reforms may include, without limitation:
•
 
There has been recurring consideration amongst regulators and intergovernmental institutions regarding the role of nonbank institutions in
providing credit and, particularly, so-called “shadow banking,” a term generally taken to refer to financial intermediation involving entities and
activities outside the regulated banking system. Federal regulatory bodies, such as the FSOC, and international organizations, such as the
Financial Stability Board, regularly assess financial stability-related risks associated with, among other things, nonbank lending and certain types
of open-end funds. At this time, whether any rules or regulations related thereto will be proposed is unclear. If nonbank financial intermediation
became subject to regulations or oversight standards similar to those applicable to traditional banks, certain of our business activities, including
nonbank lending, would be adversely affected and the regulatory burden on us would materially increase, which could adversely impact the
implementation of our investment strategy and our returns.
•
 
In the United States, FSOC has the authority to designate nonbank financial companies as systemically important financial institutions (“SIFIs”)
subject to supervision by the Federal Reserve Board. Currently, there are no nonbank financial companies with a nonbank SIFI designation. The
FSOC has, however, designated certain nonbank financial companies as SIFIs in the past, and additional nonbank financial companies, which may
include large asset management companies such as us, may be designated as SIFIs in the future. In November 2023, FSOC adopted amendments
to its guidance regarding procedures for designating nonbank financial companies as SIFIs which eliminated the prior guidance’s prioritization of
an “activities-based” approach for identifying, assessing and addressing potential risks to financial stability. Under the previous guidance’s
“activities-based” approach, FSOC indicated that it would primarily focus on regulating activities that pose systemic risk rather than focusing on
individual firm-specific determinations. The elimination of an “activities-based” approach over designation of an individual firm as a nonbank SIFI
may increase the likelihood of FSOC designating one or more firms as a nonbank SIFI. If we were designated as a nonbank SIFI, including as a
result of our asset management or nonbank lending activities, we could become subject to direct supervision by the Federal Reserve Board, and
could become subject to enhanced prudential, capital, supervisory and other requirements, such as risk-based capital requirements, leverage
limits, liquidity requirements, resolution plan and credit exposure report requirements, concentration limits, a contingent capital requirement,
enhanced public
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disclosures, short-term debt limits and overall risk management requirements. Requirements such as these, which were designed to regulate
banking institutions, would likely need to be modified to be applicable to an asset manager, although no proposals have been made indicating how
such measures would be adapted for asset managers.
In addition, future reviews by the FSOC of nonbank financial companies for designation as SIFIs may focus on other types of products and activities, such
as nonbank lending activities conducted by certain of our businesses. If any of our activities were identified by the FSOC as posing potential risks to U.S.
financial stability, such activities could be subject to modified or enhanced regulation or supervision by U.S. regulators with jurisdiction over such activities,
although no proposals have been made indicating how such measures would be applied to any such identified activities.
Trade negotiations and related government actions may create regulatory uncertainty for our funds’ portfolio companies and our investment strategies
and adversely affect the profitability of our funds’ portfolio companies.
In recent years, the U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or
potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries, and has made proposals and taken
actions related thereto. For example, the U.S. government has imposed, and may in the future further increase, tariffs on certain foreign goods, including
from China, such as steel and aluminum. Some foreign governments, including China, have instituted retaliatory tariffs on certain U.S. goods. Most recently,
the current U.S. Presidential administration has imposed or sought to impose significant increases to tariffs on goods imported into the U.S., including from
China, Canada and Mexico. While the U.S. has reached an agreement with each of Canada and Mexico to delay the imposition of such tariffs until early March
2025, the administration has indicated intent to reinstate them. Tariffs on goods imported from China took effect in February 2025, and the administration has
stated plans to increase such tariffs further. Tariffs on goods imported from China, and to the extent reinstated, from Canada and Mexico could further
increase costs, decrease margins, reduce the competitiveness of products and services offered by current and future portfolio companies. This could
materially adversely affect the revenues and profitability of select companies whose businesses rely on goods imported from countries that are subject to
significant tariffs. Further governmental actions related to the imposition of tariffs or other trade barriers or changes to international trade agreements or
policies in respect of other jurisdictions could also have a similar adverse impact.
The U.S. has also implemented a number of economic sanctions programs and export controls that specifically target Chinese entities and nationals on
national security grounds, including, for example, with respect to China’s response to political demonstrations in Hong Kong and China’s conduct concerning
the treatment of Uyghurs and other ethnic minorities in its Xinjiang province. Moreover, the U.S. has implemented additional sanctions against entities
participating in China’s military industrial complex and providing support to the country’s military, intelligence, and surveillance apparatuses. These sanctions
impose certain restrictions on U.S. persons and entities buying or selling publicly traded securities of these designated entities. Further escalation of the
“trade war” between the U.S. and China, the countries’ inability to reach further trade agreements, or the continued use of reciprocal sanctions by each
country, may negatively impact opportunities for investment as well as the rate of global growth, particularly in China, which has and continues to exhibit
signs of slowing growth. Such slowing growth could adversely affect the revenues and profitability of our funds’ portfolio companies.
There is uncertainty as to further actions that may be taken under the current U.S. Presidential administration with respect to U.S. trade policy, including
with respect to the proposed tariffs on goods from Canada and Mexico. See “—Laws and regulations on foreign direct investment applicable to us and our
funds’ portfolio companies, both within and outside the U.S, may make it more difficult for us to deploy capital in certain jurisdictions or to sell assets to
certain buyers.”
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Our provision of products and services to insurance companies subjects us to a variety of risks and uncertainties.
We have increasingly undertaken initiatives to deliver to insurance companies customizable and diversified portfolios of Blackstone products and
strategies across asset classes, including investment grade and non-investment grade credit, with a focus on corporate, asset based and private credit. Our
insurance initiatives include partial or full management of insurance companies’ general account or reinsurance assets. This strategy has in recent years
contributed to meaningful growth in our Assets Under Management, including in Perpetual Capital Assets Under Management. BXCI’s insurance platform
currently manages assets for a number of insurance companies and certain of their respective affiliates pursuant to several investment management
agreements. Our insurance platform also manages or sub-manages assets for certain insurance-dedicated funds and special purpose vehicles, and has
developed, and may continue to develop, other capital-efficient products for insurance companies.
The continued success of our insurance platform will depend in large part on further developing investment partnerships with insurance company clients
and maintaining existing asset management arrangements, including those described above. If we fail to deliver or originate high-quality, high-performing
products, strategies or assets that help our insurance company clients meet long-term policyholder obligations, we may not be successful in retaining existing
investment partnerships, developing new investment partnerships or originating or selling capital-efficient assets or products. Such failure may have a
material adverse effect on our business, results and financial condition.
The U.S. and non-U.S. insurance industries are subject to significant regulatory oversight. Regulatory authorities in many relevant jurisdictions have broad
regulatory (including through certain regulatory support organizations), administrative, and in some cases discretionary, authority with respect to insurance
companies and/or their investment advisors, which may include, among other things, the investments insurance companies may acquire and hold, marketing
practices, affiliate transactions, reserve requirements and capital adequacy. These requirements are primarily concerned with the protection of policyholders,
and regulatory authorities often have wide discretion in applying the relevant restrictions and regulations to insurance companies, which may indirectly affect
us. We may be the target or subject of, or may have indemnification obligations related to, litigation (including class action litigation by policyholders),
enforcement investigations or regulatory scrutiny. Regulators and other authorities generally have the power to bring administrative or judicial proceedings
against insurance companies, which could result in, among other things, suspension or revocation of licenses, cease-and-desist orders, fines, civil penalties,
criminal penalties or other disciplinary action. To the extent we are involved in such regulatory actions, our reputation could be harmed, we may become
liable for indemnification obligations and we could potentially be subject to enforcement actions, fines and penalties.
Recently, insurance regulatory authorities and regulatory support organizations have increased scrutiny of private equity’s involvement in the insurance
industry, including with respect to the ownership by such managers or their affiliated funds of, and the management of assets on behalf of, insurance
companies. For example, insurance regulators, including the National Association of Insurance Commissioners (“NAIC”), the U.S. standard-setting and
regulatory support organization for the insurance industry, have increasingly focused on the terms and structure of investment management agreements. This
has included focus on whether such agreements are at arms’ length, establish a control relationship with the insurance company, grant the asset manager
excessive authority or oversight over the investment strategy of the insurance company or provide for management fees that are not fair and reasonable or
termination provisions that make it difficult or costly for the insurer to terminate the agreement. Non-U.S. regulators (including in Europe, Asia-Pacific,
Bermuda and the Cayman Islands, among others) and the International Association of Insurance Supervisors, an international insurance standard-setting
organization comprised of over 200 jurisdictions, have similarly focused on each of these topics.
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Regulators have also increasingly focused on the risk profile of certain investments held by insurance companies (including, without limitation, all or
certain tranches of collateralized loan obligations and other structured securities), appropriateness of investment ratings and potential conflicts of interest,
including affiliated investments, and potential misalignment of incentives and any potential risks from these and other aspects of an insurance company’s
relationship with alternative asset managers that may impact the insurance company’s risk profile. This enhanced scrutiny may increase the risk of regulatory
actions against us and could result in new or amended regulations that limit our ability, or make it more burdensome or costly, to enter into new investment
management agreements with insurance companies and thereby grow our insurance strategy. Some of the arrangements we have or will develop with
insurance companies involve complex U.S. and non-U.S. tax structures for which no clear precedent or authority may be available. Such structures may be
subject to potential regulatory, legislative, judicial or administrative change or scrutiny and differing interpretations and any adverse regulatory, legislative,
judicial or administrative changes, scrutiny or interpretations may result in substantial costs to insurance companies or us.
Insurance company investment portfolios are often subject to internal and regulatory requirements governing the categories and ratings of investment
products and assets they may acquire and hold. Many of the investment products and strategies we originate or develop for, or other assets or investments
we include in, insurance company portfolios will be rated and a ratings downgrade or any other negative action by a rating agency or the NAIC’s Securities
Valuation Office (“SVO”), as applicable, with respect to such products, assets or investments could make them less attractive and limit our ability to offer such
products to, or invest or deploy capital on behalf of, insurers. Furthermore, insurance companies are subject to certain minimum capital and surplus
requirements that vary by the jurisdiction where the insurance company is domiciled and are generally subject to change over time (as discussed in more
detail below). In the United States, our insurance company clients are subject to risk-based capital (“RBC”) standards and other minimum capital and surplus
requirements imposed by state laws. The RBC standards are based upon the Risk-Based Capital for Insurers Model Act promulgated by the NAIC, as adopted
by applicable clients’ insurance regulators. Our Bermuda insurance company clients are subject to Bermuda Solvency Capital Requirements standards and
other minimum capital and surplus requirements imposed by the Bermuda Monetary Authority.
New statutory accounting guidance or changes or clarifications in interpretations of existing guidance may adversely impact our ability to originate, or
invest in, appropriate assets on behalf of our insurance company clients or cause our clients to increase their required capital in respect of such assets, thus
making such assets less attractive to insurers, which may adversely affect our business. Certain proposals or exposure drafts released by insurance regulatory
authorities, including the NAIC or the SVO, may result in changes to the risk-based capital treatment and/or ratings or re-ratings processes of certain assets or
investments that are, or may be, held by our insurance company clients. For example, in 2024, the NAIC increased the applicable capital charge of residual
tranches or equity securities of asset-based securitizations from 30% to 45% in respect of life insurers. This increase in the applicable RBC charge of such
assets could potentially make such assets or investments less attractive to insurers and limit our ability to originate, or invest in, such assets on behalf of
insurers.
We rely on complex exemptions from statutes in conducting our asset management activities.
We regularly rely on exemptions from various requirements of the U.S. Securities Act of 1933, as amended (the “Securities Act”), the Exchange Act, the
1940 Act, the Commodity Exchange Act and the U.S. Employee Retirement Income Security Act of 1974, as amended, in conducting our asset management
activities. These exemptions are sometimes highly complex and may in certain circumstances depend on compliance by third parties whom we do not control.
These exemptions may become unavailable to us for a variety of reasons, including, for example, if we or certain “covered persons” were to become the
subject of a criminal, regulatory or court order or other “disqualifying event” under Rule 506 of Regulation D under the Securities Act that were not otherwise
waived. If for any reason these exemptions were to become unavailable to us, we could become subject to regulatory action or third-party claims and our
business could be materially and adversely affected.
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Complex regulatory regimes and potential regulatory changes in jurisdictions outside the United States could adversely affect our business.
Similar to the United States, our business and operations in the jurisdictions outside the United States, in particular Europe, are subject to extensive laws
and regulation. Governmental regulators and other authorities in Europe have proposed or implemented a number of initiatives, rules and regulations that
could adversely affect our business, including by imposing additional compliance and administrative burdens and increasing the costs of doing business in
such jurisdictions. Increasingly, the rules and regulations in the financial sector in Europe are becoming more prescriptive. Rules and regulations in other
jurisdictions are often informed by key features of U.S. and European rules and regulations and, as a result, our businesses in all jurisdictions, including across
Asia, may become subject to increased regulation in the future.
In Europe, the EU Alternative Investment Fund Managers Directive (“AIFMD”) establishes a regulatory regime for alternative investment fund managers
(“AIFMs”), including our AIFMs in Luxembourg and Ireland. The U.K. has “on-shored” AIFMD and therefore similar requirements continue to apply to funds
marketed to U.K. investors. Changes to AIFMD, most of which will come into effect in 2026, have been adopted in the EU. These changes increase the
compliance burdens on certain of our funds and require them to make changes to their operations, including, among other things, in respect of their use of
leverage, which could impact the returns of such funds. In addition, the changes may restrict certain of our AIFs from marketing in EEA jurisdictions via
national private placement regimes, which may impact our ability to raise capital from EEA investors.
The EU regulation on over-the-counter (“OTC”) derivative transactions, central counterparties and trade repositories (“EMIR”) requires mandatory
clearing of certain OTC derivatives through central counterparties, creates additional risk mitigation requirements (including, in particular, margining
requirements) in respect of certain OTC derivative transactions that are not cleared by a central counterparty, and imposes reporting and recordkeeping
requirements in respect of most derivative transactions. In addition, the EU regulation on transparency of securities financing transactions (“SFTR”) requires
certain mandatory reporting and disclosure in connection with certain securities financing transactions and total return swaps. Furthermore, the EU Central
Securities Depositories Regulation (“CSDR”) provides for an EU-wide framework with respect to securities settlement and central securities depository and
settlement services. Each of the aforementioned regulations is likely to increase the operational burden and costs associated with certain of our and our
funds’ operations.
Further, in the EU, the Markets in Financial Instruments Directive 2014 (2014/65/EU) (“MiFID II”), which has also been on-shored in the U.K., requires us
to comply with disclosure, transparency, reporting and record keeping obligations and enhanced obligations in relation to the receipt of investment research,
best execution, product governance and marketing communications. Compliance with MiFID II has resulted in greater overall complexity, higher compliance
and administration and operational costs and less overall flexibility for us. This includes increased regulatory capital and liquidity adequacy requirements for
certain of our entities licensed under MiFID, as well as remuneration requirements of certain senior staff. Additional regulation around remuneration may
make it harder for us to attract and retain talent, compared to competitors not subject to the same rules. Enhanced internal governance, disclosure and
reporting requirements increase the costs of compliance.
Certain regulatory requirements in the EU and U.K. intended to enhance protection for retail investors and impose additional obligations on the
distribution of certain products to retail investors may lead to increased costs and limit our ability to access capital from retail investors in certain jurisdictions.
These include EU and U.K. rules requiring that retail investors in packaged retail investment and insurance products receive key information documents and
U.K. rules enhancing duties related to distribution of financial products to retail investors. Furthermore, in May 2023, the European Commission announced
its Retail Investment Strategy, which could result in new regulation that could impact our ability to offer our funds to retail investors in the EU. Data protection
authorities have significant audit and investigatory powers to probe how personal data is being used and processed and breaches of these regulations can
lead to significant fines, regulatory action and reputational risk. See “—
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Rapidly developing and changing global data security and privacy laws and regulations could increase compliance costs and subject us to enforcement risks
and reputational damage.” European regulators, including the U.K. FCA and CSSF in Luxembourg are increasing their attention on greenwashing and rapidly
developing and implementing regimes focused on sustainability within the financial services sector, which could adversely affect our business and the
operations of our funds’ portfolio companies in various ways. See “— Climate change, climate and sustainability-related regulation and sustainability concerns
could adversely affect our business and the operations of our funds’ portfolio companies, and any actions we take or fail to take in response to such matters
could damage our reputation.”
Laws and regulations on foreign direct investment applicable to us and our funds’ portfolio companies, both within and outside the U.S., may make it more
difficult for us to deploy capital in certain jurisdictions or to sell assets to certain buyers.
A number of jurisdictions, including the U.S., have restrictions on foreign direct investment pursuant to which their respective heads of state and/or
regulatory bodies have the authority to block or impose conditions with respect to certain transactions, such as investments, acquisitions and divestitures, if
such transaction threatens to impair national security. In addition, many jurisdictions restrict foreign investment in assets important to national security by
taking steps including, but not limited to, placing limitations on foreign equity investment, implementing investment screening or approval mechanisms, and
restricting the employment of foreigners as key personnel. These U.S. and foreign laws could limit our funds’ ability to invest in certain businesses or entities
or impose burdensome notification requirements, operational restrictions or delays in pursuing and consummating transactions. For example, the Committee
on Foreign Investment in the United States (“CFIUS”) has the authority to review transactions that could result in potential control of, or certain types of
non-controlling investments in, a U.S. business or U.S. real estate by a foreign person. In recent years, legislation has expanded the scope of CFIUS’ jurisdiction
to cover more types of transactions and empower CFIUS to scrutinize more closely investments in certain transactions. CFIUS may recommend that the
President block, unwind or impose conditions or terms on such transactions, certain of which may adversely affect the ability of the fund to execute on its
investment strategy with respect to such transaction as well as limit our flexibility in structuring or financing certain transactions. Additionally, CFIUS or any
non-U.S. equivalents thereof may seek to impose limitations on one or more such investments that may prevent us from maintaining or pursuing investment
opportunities that we otherwise would have maintained or pursued, which could make it more difficult for us to deploy capital in certain of our funds.
In August 2023, an executive order established an outbound investment screening regime (the “Outbound Order”), which was intended to regulate or
prohibit certain investments by U.S. persons in advanced technology sectors in jurisdictions that may be designated as a “country of concern.” In January
2025, the current U.S. Presidential administration signed an Annex to the Outbound Order that identified China, along with the Special Administrative Regions
of Hong Kong and Macau, as a “country of concern.” Similarly, in February 2025, the U.S. Presidential administration issued a memorandum to various
regulatory agencies regarding enhanced restrictions on outbound investments into China, as well as on Chinese investments into the U.S. These actions could
negatively impact our ability to raise capital from and deploy capital in such jurisdictions, including if the administration seeks to expand such limitations to
apply to a broader range of activities. Further, a number of U.S. states are passing and implementing state laws prohibiting or otherwise restricting the
acquisition of interests in real property located in the state by foreign persons. These laws may also impact the ability of certain non-U.S. limited partners to
participate in certain of our investment strategies.
Our funds’ investments outside of the United States may face delays, limitations, or restrictions as a result of notifications made under and/or
compliance with these legal regimes and rapidly changing agency practices. Other countries continue to establish and/or strengthen their own national
security investment clearance regimes, which could have a corresponding effect of limiting our ability to make investments in such countries. Heightened
scrutiny of foreign direct investment worldwide may also make it more difficult for us to identify suitable buyers for investments upon exit and may constrain
the universe of exit opportunities for an investment in a portfolio company. As a result of such regimes, we may incur significant delays and costs, be
altogether prohibited from
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making a particular investment or impede or restrict syndication or sale of certain assets to certain buyers, all of which could adversely affect the performance
of our funds and in turn, materially reduce our revenues and cash flow. Complying with these laws imposes potentially significant costs and complex
additional burdens, and any failure by us or our funds’ portfolio companies to comply with them could expose us to significant penalties, sanctions, loss of
future investment opportunities, additional regulatory scrutiny, and reputational harm.
We are subject to substantial risk of litigation and regulatory proceedings and may face significant liabilities and damage to our reputation as a result of
allegations of improper conduct and negative publicity.
From time to time we, our funds and our funds’ portfolio companies have been and may be subject to litigation, including securities class action lawsuits
by stockholders, as well as class action lawsuits that challenge our acquisition transactions and/or attempt to enjoin them. For a discussion of certain legal
proceedings to which we are a party, see “Part II. Item 8. Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — 18.
Commitments and Contingencies - Contingencies - Litigation.” Any private lawsuits or regulatory actions brought against us and resulting in a finding of
substantial legal liability could materially adversely affect our business, financial condition or results of operations. In addition, such actions, even if resulting
in a favorable outcome to us, could result in significant reputational harm, which could seriously harm our business.
In recent years, the volume of claims and amount of damages claimed in litigation and regulatory proceedings against the financial services industry in
general have been increasing. The investment decisions we make in our asset management business and the activities of our investment professionals
(including in connection with portfolio companies and investment advisory activities) may subject us, our funds and our funds’ portfolio companies to the risk
of third-party litigation or regulatory proceedings arising from investor dissatisfaction with the performance of those investment funds, alleged conflicts of
interest, the suitability or manner of distribution of our products, including to retail investors, the activities of our funds’ portfolio companies and a variety of
other claims.
In addition, to the extent investors in our investment funds suffer losses resulting from fraud, gross negligence, willful misconduct or other similar
misconduct, investors may have remedies against us, our investment funds, our senior managing directors or our affiliates under the federal securities law
and/or state law. While the general partners and investment advisers to our investment funds, including their directors, officers, other employees and
affiliates, are generally indemnified to the fullest extent permitted by law with respect to their conduct in connection with the management of the business
and affairs of our investment funds, such indemnity does not extend to actions determined to have involved fraud, gross negligence, willful misconduct or
other similar misconduct. The activities of our capital markets services business may also subject us to the risk of liabilities to our clients and third parties,
including our clients’ stockholders, under securities or other laws in connection with transactions in which we participate. See “—Underwriting activities by
our capital markets services business expose us to risks.” We depend to a large extent on our business relationships and our reputation for integrity and
high-caliber professional services to attract and retain investors and to pursue investment opportunities for our funds. As a result, allegations by private
actors, regulators, or employees of improper conduct by us, even if unfounded, as well as negative publicity and press speculation about us, may harm our
reputation. This could adversely impact our relationships with clients and our fundraising. In recent years, there has been increased activity on the part of
certain activist and other organized groups, with respect to investments made by private funds. Such groups have at times contacted and otherwise sought to
engage with government and regulatory bodies and fund investors, including public pension funds, on our funds’ investments, which has led to negative
publicity that could harm our reputation. The pervasiveness of social media and public focus on the externalities of business activities could lead to wider
dissemination of adverse or inaccurate information about us, making remediation more difficult and magnifying reputational risk.
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Employee misconduct could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational
harm. Fraud, deceptive practices or other misconduct at portfolio companies or service providers could similarly subject us to liability and reputational
damage and also harm performance.
Our employees could engage in misconduct that adversely affects our business. We are subject to a number of obligations and standards arising from our
asset management business and our authority over the assets managed by our asset management business. The violation of these obligations and standards
by any of our employees would adversely affect our clients and us. Our business often requires that we deal with confidential matters of great significance to
companies in which we may invest. If our employees were to improperly use or disclose confidential information, we could suffer serious harm to our
reputation, financial position and current and future business relationships. Detecting or deterring employee misconduct is not always possible, and the
extensive precautions we take to detect and prevent this activity may not be effective in all cases.
We are subject to U.S. and foreign anti-corruption and anti-bribery laws, including the U.S. Foreign Corrupt Practices Act, as amended (“FCPA”), as well as
anti-money laundering laws. Any determination that we have violated the FCPA, the EU and U.K. anti-money laundering regimes, the U.K. anti-bribery laws or
other applicable anti-corruption, anti-bribery, or anti-money laundering laws could subject us to, among other things, civil and criminal penalties or material
fines, profit disgorgement, injunctions on future conduct, securities litigation and a general loss of investor confidence. Any one of these could adversely
affect our business prospects, financial position or the price of our common stock. Although the current U.S. President administration has signed an executive
order to pause, subject to certain exceptions, the initiation of new investigations and enforcement actions under the FCPA, such laws have attracted
significant regulatory focus in recent years, including outside of the U.S. For example, the SEC will be responsible for examining investment advisers’
compliance with a U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) rule currently scheduled to go into effect January 2026,
that requires registered investment adviser and exempt reporting advisers to, among other measures, adopt an anti-money laundering and countering the
financing of terrorism (“AML/CFT”) program, file certain reports with FinCEN and to maintain records related to such activities. The application of these rules
would impose significant compliance costs on us. The EU and the U.K. are similarly revising their respective anti-money laundering regimes. The EU’s revised
anti-money laundering regime is expected to come into effect as early as June 2026 and the U.K. has also significantly expanded the reach of its anti-bribery
laws. While we have policies and procedures designed to ensure strict compliance by us and our personnel with the FCPA and anti-money laundering and
other applicable laws, such policies and procedures may not be effective in all instances to prevent violations. In addition, in light of the executive order to
pause initiation of new FCPA investigations and enforcement actions in the U.S., other asset managers, particularly those who, unlike us, are not subject to the
anti-corruption laws of a jurisdiction outside of the United States, may implement changes to their FCPA or anti-money laundering policies that would provide
such managers access to investment opportunities that may not be available to us because of our current policies and procedures.
Furthermore, we may also be adversely affected if there is misconduct by personnel of our funds’ portfolio companies or by such companies’ service
providers. For example, financial fraud or other deceptive practices at our funds’ portfolio companies, or failures by personnel at our funds’ portfolio
companies to comply with anti-corruption, anti-bribery, anti-money laundering, trade and economic sanctions, export controls, anti-harassment,
anti-discrimination or other legal and regulatory requirements, could subject us to, among other things, civil and criminal penalties or material fines, profit
disgorgement, injunctions on future conduct and securities litigation, and could also cause significant reputational and business harm to us. Such misconduct
may undermine our due diligence efforts with respect to such portfolio companies and could negatively affect the valuations of the investments by our funds
in such portfolio companies. Losses to our funds and us could also result from misconduct or other actions by service providers, such as administrators,
consultants or other advisors, if such service providers improperly use or disclose confidential information, misappropriate funds, or violate legal or regulatory
obligations. Moreover, we may face an increased risk of such misconduct to the extent our funds’ investment in non-U.S. markets, particularly emerging
markets, increases.
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Poor performance of our investment funds would cause a decline in our revenue, income and cash flow, may obligate us to repay Performance Allocations
previously paid to us, and could adversely affect our ability to raise capital for future investment funds.
In the event that any of our investment funds were to perform poorly, our revenue, income and cash flow would decline because the value of our assets
under management would decrease, which would result in a reduction in management fees, and our investment returns would decrease, resulting in a
reduction in the Performance Revenues we earn. Moreover, we could experience losses on our investments of our own principal as a result of poor
investment performance by our investment funds. Furthermore, if a carry fund does not achieve certain investment returns over its life as a result of poor
performance of later investments, we will be obligated to repay the excess Performance Allocations that were previously distributed to us above the amount
to which the relevant general partner is ultimately entitled. Similarly, certain of our vehicles’ terms require an offset of Performance Revenues related to past
performance, often referred to as a “recoupment of loss carryforward.” If a recoupment of loss carryforward is triggered, including as a result of a meaningful
decline in the vehicle’s revenues following a period of strong performance, such offset would serve to reduce the amount of future Performance Revenues to
which we would be entitled in such vehicle. In the event that the offset is insufficient for the vehicle to fully recoup such loss carryforward, we may be
required to make a cash payment after a certain period.
Poor performance of our investment funds could make it more difficult for us to raise new capital. Investors in funds might decline to invest in future
investment funds we raise and investors in hedge funds or other investment funds might withdraw their investments as a result of poor performance of the
investment funds in which they are invested. Investors and potential investors in our funds continually assess our investment funds’ performance, and our
ability to raise capital for existing and future investment funds and avoid excessive redemption levels will depend on our investment funds’ continued
satisfactory performance. Accordingly, poor fund performance may deter future investment in our funds and thereby decrease the capital invested in our
funds and ultimately, our management fee revenue. Alternatively, in the face of poor fund performance, investors could demand lower fees or fee concessions
for existing or future funds which would likewise decrease our revenue.
Furthermore, our organizational documents do not limit our ability to enter into new lines or business, and, from time to time, we may pursue new or
different investment strategies and expand into geographic markets and businesses that may not perform as expected and result in poor performance by us
and our investment funds. In addition to the risk of poor performance, such activity may subject us to a number of risks and uncertainties, including risks
associated with (a) the possibility that we have insufficient expertise to engage in such activities profitably or without incurring inappropriate amounts of risk,
(b) the diversion of management’s attention from our core businesses, (c) known or unknown contingent liabilities, which could result in unforeseen losses for
us and our funds, (d) the disruption of ongoing businesses, (e) the ability to properly manage conflicts of interest and (f) compliance with additional regulatory
requirements.
Our equity investments and some of our debt investments rank junior to investments made by others, exposing us to a greater risk of losing our fund’s
investment.
In many cases, the companies in which our funds invest will have indebtedness or equity securities, or may be permitted to incur indebtedness or to issue
equity securities, that rank senior to our fund’s investment. By their terms, such instruments may provide that their holders are entitled to receive payments
of distributions, interest or principal on or before the dates on which payments are to be made in respect of our fund’s investment. Also, in the event of
insolvency, liquidation, dissolution, reorganization or bankruptcy of a company in which an investment is made, holders of securities ranking senior to our
fund’s investment would typically be entitled to receive payment in full before distributions could be made in respect of our fund’s investment. In addition,
debt investments made
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by our funds in our portfolio companies may be equitably subordinated to the debt investments made by third parties in our portfolio companies. After
repaying senior security holders, the company may not have any remaining assets to use for repaying amounts owed in respect of our fund’s investment. To
the extent any assets remain, holders of claims that rank equally with our fund’s investment would be entitled to share on an equal and ratable basis in
distributions that are made out of those assets. Under such circumstances, the ability of our funds to influence a company’s affairs and to take actions to
protect their investments during periods of financial distress or following an insolvency may be limited, exposing them to a greater risk of losing their
investment.
The historical returns attributable to our funds should not be considered as indicative of the future results of our funds or of our future results or of any
returns expected on an investment in common stock.
The historical and potential future returns of the investment funds that we manage are not directly linked to returns on our common stock. Therefore,
any continued positive performance of the investment funds that we manage will not necessarily result in positive returns on an investment in our common
stock. However, poor performance of the investment funds that we manage would cause a decline in our revenue from such investment funds, and would
therefore have a negative effect on our performance and in all likelihood the returns on an investment in our common stock. Moreover, with respect to the
historical returns of our investment funds:
•
 
we may create new funds in the future that reflect a different asset mix and different investment strategies (including funds whose management
fees represent a more significant proportion of the fees than has historically been the case), as well as a varied geographic and industry exposure
as compared to our present funds, and any such new funds could have different returns from our existing or previous funds,
•
 
the rates of returns of our carry funds reflect unrealized gains as of the applicable measurement date that may never be realized, which may
adversely affect the ultimate value realized from those funds’ investments,
•
 
competition for investment opportunities continues to increase as a result of, among other things, the increased amount of capital invested in
alternative investment funds,
•
 
our investment funds’ returns in some years benefited from investment opportunities and general market conditions that may not repeat
themselves, our current or future investment funds might not be able to avail themselves of comparable investment opportunities or market
conditions, and the circumstances under which our current or future funds may make future investments may differ significantly from those
conditions prevailing in the past,
•
 
newly established funds may generate lower returns during the period in which they initially deploy their capital, which may result in little or no
carried interest due to performance hurdles and
•
 
the rates of return reflect our historical cost structure, which may vary in the future due to various factors enumerated elsewhere in this report
and other factors beyond our control, including changes in laws.
The future internal rate of return for any current or future fund may vary considerably from the historical internal rate of return generated by any
particular fund, or for our funds as a whole. In addition, future returns will be affected by the applicable risks described elsewhere in this Annual Report on
Form 10-K, including risks of the industries and businesses in which a particular fund invests.
Certain policies and procedures implemented to mitigate potential conflicts of interest and address certain regulatory requirements may reduce the
synergies across our various businesses.
Because of our various asset management businesses and our capital markets services business, we will be subject to a number of actual and potential
conflicts of interest and subject to greater regulatory oversight and more legal and contractual restrictions than that to which we would otherwise be subject
if we had just one line of
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business. To mitigate these conflicts and address regulatory, legal and contractual requirements across our various businesses, we have implemented certain
policies and procedures (for example, information walls) that may reduce the positive synergies that we cultivate across these businesses for purposes of
identifying and managing attractive investments. For example, we may come into possession of confidential or material non-public information with respect
to issuers in which we may be considering making an investment or issuers in which our affiliates may hold an interest; however, certain regulatory
requirements and our policies and procedures require us to restrict access by certain personnel in our funds to such information. As a consequence of such
policies and procedures, we may be precluded from providing such information or other ideas to our other businesses even where it might be of benefit to
them.
Our failure to deal appropriately with conflicts of interest in our investment business could damage our reputation and adversely affect our businesses.
As we have expanded, and continue to expand, the number and scope of our businesses, we increasingly confront potential conflicts of interest relating
to our funds’ investment activities. Investment manager conflicts of interest continue to be a significant area of focus for regulators and the media. Because of
our size and the variety of businesses and investment strategies that we pursue, we may face a higher degree of scrutiny compared with investment managers
that are smaller or focus on fewer asset classes. Certain of our funds may have overlapping investment objectives, including funds that have different fee
structures and/or investment strategies that are more narrowly focused. Potential conflicts may arise with respect to allocation of investment opportunities
among us, our funds and our affiliates, including to the extent that the fund documents do not mandate a specific investment allocation. For example, we may
allocate an investment opportunity that is appropriate for two or more investment funds in a manner that excludes one or more funds or results in a
disproportionate allocation based on factors or criteria that we determine, such as sourcing of the transaction, specific nature of the investment or size and
type of the investment, and ability to execute quickly among other factors. We may also decide to provide a co-investment opportunity to certain investors in
lieu of allocating more of that investment to our funds or vice-versa. Moreover, the challenge of allocating investment opportunities to certain funds may be
exacerbated as we expand our business to include more lines of business, including more public vehicles. Allocating investment opportunities appropriately
frequently involves significant and subjective judgments. The risk that fund investors or regulators could challenge allocation decisions as inconsistent with
our obligations under applicable law, governing fund agreements or our own policies cannot be eliminated. In addition, the perception of non-compliance
with such requirements or policies could harm our reputation with fund investors.
We may also cause different funds to invest in a single portfolio company, for example where the fund that made an initial investment no longer has
capital available to invest. We may also cause different funds that we manage to purchase different classes of securities in the same portfolio company. For
example, one of our CLO funds could acquire a debt security issued by the same company in which one of our private equity funds owns common equity
securities. A direct conflict of interest could arise between the debt holders and the equity holders if such a company were to develop insolvency concerns,
and we would have to carefully manage that conflict. A decision to acquire material non-public information about a company while pursuing an investment
opportunity for a particular fund gives rise to a potential conflict of interest when it results in our having to restrict the ability of other funds to take any action
with respect to that company. Our affiliates or portfolio companies may be service providers or counterparties to our funds or portfolio companies and
receive fees or other compensation for services that are not shared with our fund investors. In such instances, we may be incentivized to cause our funds or
portfolio companies to purchase such services from our affiliates or portfolio companies rather than an unaffiliated service provider despite the fact that a
third-party service provider could potentially provide higher quality services or offer them at a lower cost. In addition, conflicts of interest may exist in the
valuation of our funds’ investments, as well as the personal trading of employees and the allocation of fees and expenses among us, our funds and their
portfolio companies, and our affiliates. Lastly, in certain, infrequent instances we may purchase an investment alongside one of our investment funds or sell
an investment to one of our investment funds and
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conflicts may arise in respect of the allocation, pricing and timing of such investments and the ultimate disposition of such investments. A failure to
appropriately deal with these, among other, conflicts, could negatively impact our reputation and ability to raise additional funds or result in potential
litigation or regulatory action against us. Further, rules proposed or adopted by the SEC and other measures it takes to preclude or limit certain conflicts of
interest may make it more difficult for our funds to pursue transactions that may otherwise be attractive to the fund and its investors, which may adversely
impact fund performance.
Conflicts of interest may arise in our allocation of co-investment opportunities.
Potential conflicts will arise with respect to our decisions regarding how to allocate co-investment opportunities among investors and the terms of any
such co-investments. As a general matter, our allocation of co-investment opportunities is within our discretion and there can be no assurance that
co-investment opportunities of any particular type or amount will become available to any of our investors. We may take into account a variety of factors and
considerations we deem relevant in allocating co-investment opportunities, including, without limitation, whether a potential co-investor has expressed an
interest in evaluating co-investment opportunities, our assessment of a potential co-investor’s ability to invest an amount of capital that fits the needs of the
investment and our assessment of a potential co-investor’s ability to commit to a co-investment opportunity within the required timeframe of the particular
transaction.
Our fund documents typically do not mandate specific allocations with respect to co-investments. The investment advisers of our funds may have an
incentive to provide potential co-investment opportunities to certain investors in lieu of others and/or in lieu of an allocation to our funds, including, for
example, as part of an investor’s overall strategic relationship with us, or if such allocations are expected to generate relatively greater fees or Performance
Allocations to us than would arise if such co-investment opportunities were allocated otherwise. At the same time, we may have an incentive to offer
co-investment opportunities to our funds in lieu of (or to an extent that reduces the amount available to) coinvestors, particularly as we expand the number
and type of private wealth products we offer.
As a general matter, co-investors may bear different fees and expenses than our funds. In certain instances, co-investment arrangements may be
structured through one or more of our investment vehicles, and in such circumstances co-investors will generally bear the costs and expenses thereof. As a
result, there may be conflicts of interest regarding the allocation of costs and expenses between co-investors and investors in our funds. The terms of any such
existing and future co-investment vehicles may differ materially, and in some instances may be more favorable to us, than the terms of certain of our funds or
prior co-investment vehicles. Such different terms may create an incentive for us to allocate a greater or lesser percentage of an investment opportunity to
such co-investment vehicles. There can be no assurance that any conflicts of interest will be resolved in favor of any particular investment funds or investors
(including any applicable co-investors). As with our investment allocation decisions generally, there is a risk that regulators and/or investors could challenge
our allocations of co-investment opportunities or fees and expenses.
Valuation methodologies for certain assets in our funds can be subject to a significant degree of subjectivity and judgment, and the fair value of assets
established pursuant to such methodologies may never be realized, which could result in significant losses for our funds and the reduction of Management
Fees and/or Performance Revenues.
Our investment funds make investments in illiquid investments or financial instruments for which there is little, if any, market activity. We determine the
value of such investments and financial instruments on at least a quarterly basis based on the fair value of such investments as determined in accordance with
GAAP. The fair value of such investments and financial instruments is generally determined using a primary methodology and corroborated by a secondary
methodology. Methodologies are used on a consistent basis and described in Blackstone’s and the investment funds’ valuation policies and governing
agreements.
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The determination of fair value using these methodologies takes into consideration a range of factors including, but not limited to, the price at which the
investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges for comparable securities, comparable
market transactions, current and projected operating performance and financing transactions subsequent to the acquisition of the investment. These
valuation methodologies involve a significant degree of subjective management judgment. For example, as to investments that we share with another
sponsor, we may apply a different valuation methodology or factors or derive a different value than such other sponsor on the same investment. In addition,
the valuations of our private investments may at times differ significantly from the valuations of publicly traded companies in similar sectors or with similar
business models.
For example, valuations of our private investments do not have an observable market price and may take into account certain long-term financial
projections or estimates, including those prepared by the management of a portfolio company or other investment. Such projections or estimates may not
materialize and are based on significant judgments and assumptions at the time they are developed and may not be available to the public. Valuations of
publicly traded companies, on the other hand, are based on the observable price in the reference market which are generally subject to a higher degree of
market volatility. These differences, and the potential exercise of our subjective judgment, might cause some investors and/or regulators to question our
valuations or methodologies. There can be no assurance that our policies will address all necessary valuation factors or completely eliminate potential
conflicts of interest in such determinations. The SEC continues to focus on issues related to valuation of private funds, including consistent application of the
methodology, disclosure, and conflicts of interest, in its enforcement, examination, and rulemaking activities. Further, variation in the underlying assumptions,
estimates, methodologies and/or judgments we use in the determination of the value of certain investments and financial instruments could potentially
produce materially different results. Valuation methodologies may also change from time to time. See “Part II. Item 7. Management’s Discussion and Analysis
of Financial Condition and Results of Operation — Critical Accounting Policies” for an overview of our fair value policy and the significant judgment required in
the application thereof.
Because there is significant uncertainty in the valuation of, or in the stability of the value of illiquid investments, the fair values of such investments as
reflected in an investment fund’s net asset value do not necessarily reflect the prices that would actually be obtained by us on behalf of the investment fund
when such investments are realized. Realizations at values lower than the values at which investments have been reflected in prior fund net asset values
would result in reduced gains or losses for the applicable fund, a decline in certain asset management fees and the reduction in potential Performance
Revenues. Changes in values of investments from quarter to quarter may result in volatility in our investment funds’ net asset value, our funds’ investment in,
or fees from, those funds and the results of operations and cash flow that we report from period to period. Further, a situation where asset values turn out to
be materially different than values reflected in prior fund net asset values could cause investors to lose confidence in us, which would in turn result in
difficulty in raising additional funds or redemptions from funds where investors hold redemption rights.
Our use of borrowings to finance our business exposes us to risks.
We use borrowings to finance our business operations as a public company. We have numerous outstanding notes with various maturity dates as well as
other borrowings, including under the Revolving Credit Facility. As borrowings under the credit facility and our outstanding notes mature, we will be required
to refinance or repay such borrowings. In order to do so, we may enter into a new facility, use asset based financing arrangements or issue new notes, each of
which could result in higher borrowing costs. We may also issue equity, which would dilute existing stockholders. Further, we may choose to repay such
borrowings using cash on hand, cash provided by our continuing operations or cash from the sale of our assets, each of which could reduce the amount of
cash available to facilitate the growth and expansion of our businesses, make repurchases under our share repurchase program and pay dividends to our
stockholders, operating expenses and other obligations as they arise. In order to obtain new borrowings, or to extend or refinance existing borrowings, we are
dependent on the willingness and
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ability of financial institutions such as global banks to extend credit to us on favorable terms or at all, and on our ability to access the debt and equity capital
markets, which can be volatile. There is no guarantee that such financial institutions will continue to extend credit to us or that we will be able to access the
capital markets to obtain new borrowings or refinance existing borrowings when they mature. In addition, the use of leverage to finance our business exposes
us to the types of risk described in “— Dependence on significant leverage in investments by our funds could adversely affect our ability to achieve attractive
rates of return on those investments.”
We or our funds have and may in the future also enter into “margin loans” whereby we or our funds borrow money from a bank and pledge the equity of
the underlying portfolio company or real estate asset as collateral for the loan. The use of margin borrowings results in certain additional risks to the
borrower. For example, should the securities pledged to brokers to secure our margin borrowings decline in value, we or our funds could be subject to a
“margin call,” pursuant to which we or our funds must either deposit additional funds or securities with the broker, or suffer mandatory liquidation of the
pledged securities to compensate for the decline in value. In the event of a sudden drop in the value of our assets, we or our funds might not be able to
liquidate assets quickly enough to satisfy margin requirements. See “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations — Liquidity and Capital Resources — Sources and Uses of Liquidity” for further information regarding our outstanding borrowings.
Dependence on significant leverage in investments by our funds could adversely affect our ability to achieve attractive rates of return on those
investments.
Many of our funds’ investments rely heavily on the use of leverage, and our ability to achieve attractive rates of return on investments will depend on our
ability to access sufficient sources of indebtedness at attractive rates. For example, in many private equity and real estate investments, indebtedness may
constitute as much as 70% or more of a portfolio company’s or real estate asset’s total debt and equity capitalization, including debt that may be incurred in
connection with the investment. The absence of available sources of sufficient senior debt financing for extended periods of time could therefore materially
and adversely affect our private equity and real estate businesses. Furthermore, limits on the deductibility of corporate interest expense could make it more
costly to use debt financing for our acquisitions or otherwise have an adverse impact on the cost structure of our transactions, and could therefore adversely
affect the returns on our funds’ investments. See “— Changes in U.S. and foreign taxation of businesses and other tax laws, regulations or treaties or an
adverse interpretation of these items by tax authorities could adversely affect us, including by adversely impacting our effective tax rate and tax liability.”
In addition, an increase in either the general levels of interest rates or in the risk spread demanded by sources of indebtedness would make it more
expensive to finance those businesses’ investments. See “— High interest rates and challenging debt market conditions have negatively impacted and could
continue to negatively impact the values of certain assets or investments and the ability of our funds and their portfolio companies to access the capital
markets, which could adversely affect investment and realization opportunities, lead to lower-yielding investments and potentially decrease our net income.”
Investments in highly leveraged entities are inherently more sensitive to declines in revenues, increases in expenses and interest rates and adverse
economic, market and industry developments. The incurrence of a significant amount of indebtedness by an entity could, among other things:
•
 
give rise to an obligation to make mandatory pre-payments of debt using excess cash flow, which might limit the entity’s ability to respond to
changing industry conditions to the extent additional cash is needed for the response, to make unplanned but necessary capital expenditures or
to take advantage of growth opportunities,
•
 
limit the entity’s ability to adjust to changing market conditions, thereby placing it at a competitive disadvantage compared to its competitors
who have relatively less debt,
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•
 
allow even moderate reductions in operating cash flow to render it unable to service its indebtedness, leading to a bankruptcy or other
reorganization of the entity and a loss of part or all of the equity investment in it,
•
 
limit the entity’s ability to engage in strategic acquisitions that might be necessary to generate attractive returns or further growth and
•
 
limit the entity’s ability to obtain additional financing or increase the cost of obtaining such financing, including for capital expenditures, working
capital or general corporate purposes.
As a result, the risk of loss associated with a leveraged entity is generally greater than for companies with comparatively less debt.
When our funds’ existing portfolio investments reach the point when debt incurred to finance those investments matures in significant amounts and
must be either repaid or refinanced, those investments may materially suffer if they have generated insufficient cash flow to repay maturing debt and there is
insufficient capacity and availability in the financing markets to permit them to refinance maturing debt on satisfactory terms, or at all. If a limited availability
of financing for such purposes were to persist for an extended period of time, when significant amounts of the debt incurred to finance our private equity and
real estate funds’ existing portfolio investments came due, these funds could be materially and adversely affected.
Many of the hedge funds in which our funds of hedge funds invest, our credit-focused funds and or CLOs, may choose to use leverage as part of their
respective investment programs and regularly borrow a substantial amount of their capital. The use of leverage poses a significant degree of risk and
enhances the possibility of a significant loss in the value of the investment portfolio. A fund may borrow money from time to time to purchase or carry
securities or may enter into derivative transactions (such as total return swaps) with counterparties that have embedded leverage. The interest expense and
other costs incurred in connection with such borrowing may not be recovered by appreciation in the securities purchased or carried and will be lost - and the
timing and magnitude of such losses may be accelerated or exacerbated - in the event of a decline in the market value of such securities. Gains realized with
borrowed funds may cause the fund’s net asset value to increase at a faster rate than would be the case without borrowings. However, if investment results
fail to cover the cost of borrowings, the fund’s net asset value could also decrease faster than if there had been no borrowings.
Any of the foregoing circumstances could have a material adverse effect on our financial condition, results of operations and cash flow.
The due diligence process that we undertake in connection with investments by our funds may not reveal all facts and issues that may be relevant in
connection with an investment.
When evaluating a potential business or asset for investment, we conduct due diligence that we deem reasonable and appropriate based on the facts
and circumstances applicable to such investment. When conducting due diligence, we may be required to evaluate important and complex issues, including
but not limited to those related to business, financial, credit risk, tax, accounting, sustainability, legal and regulatory and macroeconomic trends. With respect
to sustainability, the nature and scope of our diligence will vary based on the investment, but may include a review of, among other things: energy
management, air and water pollution, land contamination, human capital management, human rights, employee health and safety, accounting standards and
bribery and corruption. Selecting and evaluating such factors is subjective by nature, and there is no guarantee that the criteria utilized or judgment exercised
by Blackstone or a third-party specialist (if any) will reflect the policies or preferred practices of any particular investor or align with the practices of other
asset managers or with market trends. The materiality of various risks and impact of such risks on an individual potential investment or portfolio as a whole
depend on many factors, including the relevant industry, geography and asset class and the nature of the investment. Outside consultants, legal advisers,
accountants and investment banks may be involved in the due
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diligence process in varying degrees depending on the type of investment. The due diligence investigation that we will carry out with respect to any
investment opportunity may not reveal or highlight all relevant facts (including fraud) or risks that may be necessary or helpful in evaluating such investment
opportunity and we may not identify or foresee future developments that could have a material adverse effect on an investment, including, for example,
potential factors, such as technological disruption of a specific company or asset, or an entire industry.
Further, some matters covered by our diligence, such as sustainability, are continuously evolving and we may not accurately or fully anticipate such
evolution. The framework we may use to evaluate certain diligence considerations may not represent a universally recognized standard for assessing such
considerations. For example, AIFMD requires us to identify, measure, manage and monitor sustainability risks relevant to the funds managed by our EU AIFMs
and take into account sustainability risks when performing investment due diligence. Such requirements may make our funds less attractive to investors, and
any non-compliance with such requirements may subject us to regulatory action. In addition, when conducting due diligence on investments, including with
respect to investments made by our funds of hedge funds in third-party hedge funds, we rely on the resources available to us and information supplied by
third parties, including information provided by the target of the investment (or, in the case of investments in a third-party hedge fund, information provided
by such hedge fund or its service providers). The information we receive from third parties may not be accurate or complete and therefore we may not have
all the relevant facts and information necessary to properly assess and monitor our funds’ investment.
We may be unable to consummate or successfully integrate development opportunities, acquisitions or joint ventures that we pursue.
We may from time to time seek to engage in selective development or acquisition of asset management businesses or other businesses complementary
to our business where we think we can add substantial value or generate substantial returns. We may not be able to identify or consummate such
opportunities, including due to competition for such opportunities, our ability to accurately value such opportunities and the need to negotiate acceptable
terms, and obtain requisite approvals and licenses from the relevant governmental authorities, for such opportunities. Moreover, even if we are able to
identify and successfully complete an acquisition, we may encounter unexpected difficulties or incur unexpected costs associated with integrating and
overseeing the operations of the new businesses.
We and our affiliates from time to time are required to report specified dealings or transactions involving Iran or other sanctioned individuals or entities.
The Iran Threat Reduction and Syria Human Rights Act of 2012 (“ITRA”) requires companies subject to SEC reporting obligations under Section 13 of the
Exchange Act to disclose in their periodic reports specified dealings or transactions involving Iran or other individuals and entities targeted by certain OFAC
sanctions, including, by way of example, the Russian Federal Security Service, engaged in by the reporting company or any of its affiliates during the period
covered by the relevant periodic report. In some cases, ITRA requires companies to disclose these types of transactions even if they were permissible under
U.S. law. Companies that currently may be or may have been at the time considered our affiliates have from time to time publicly filed and/or provided to us
the disclosures reproduced on Exhibit 99.1 of our Quarterly Reports as well as Exhibit 99.1 of this annual report, which disclosure is hereby incorporated by
reference herein. We do not independently verify or participate in the preparation of these disclosures. We are required to separately file with the SEC a
notice when such activities have been disclosed in this report, and the SEC is required to post such notice of disclosure on its website and send the report to
the President and certain U.S. Congressional committees. The President thereafter is required to initiate an investigation and, within 180 days of initiating
such an investigation, determine whether sanctions should be imposed. Disclosure of such activity, even if such activity is not subject to sanctions under
applicable law, and any sanctions actually imposed on us or our affiliates as a result of these activities, could harm our reputation and have a negative impact
on our business, and any failure to disclose any such activities as required could additionally result in fines or penalties.
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Our asset management activities involve investments in relatively illiquid assets, and we may fail to realize any profits from these activities for a
considerable period of time.
Many of our investment funds invest in securities that are not publicly traded. In many cases, our investment funds may be prohibited by contract or by
applicable securities laws from selling such securities for a period of time. Our investment funds will generally not be able to sell these securities publicly
unless their sale is registered under applicable securities laws, or unless an exemption from such registration is available. The ability of many of our
investment funds, particularly our private equity funds, to dispose of investments is heavily dependent on the public equity markets. For example, the ability
to realize any value from an investment may depend upon the ability to complete an initial public offering of the portfolio company in which such investment
is held. Even if the securities are publicly traded, large holdings of securities can often be disposed of only over a substantial length of time, exposing the
investment returns to risks of downward movement in market prices during the intended disposition period. Moreover, because the investment strategy of
many of our funds, particularly our private equity and real estate funds, often entails our having representation on our funds’ public portfolio company
boards, our funds may be restricted in their ability to effect such sales during certain time periods. Accordingly, under certain conditions, our investment
funds may be forced to either sell securities at lower prices than they had expected to realize or defer - potentially for a considerable period of time - sales
that they had planned to make.
We make investments in companies that are based outside of the United States, which may expose us to additional risks not typically associated with
investing in companies that are based in the United States.
Many of our investment funds invest a significant portion of their assets in the equity, debt, loans or other securities of issuers located outside the United
States. International investments have increased and we expect will continue to increase as a proportion of certain of our funds’ portfolios in the future.
Investments in non-U.S. securities involve certain factors not typically associated with investing in U.S. securities, including risks relating to:
•
 
currency exchange matters, including fluctuations in currency exchange rates and costs associated with conversion of investment principal and
income from one currency into another,
•
 
less developed or efficient financial markets than in the United States, which may lead to potential price volatility and relative illiquidity,
•
 
the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government
supervision and regulation,
•
 
changes in laws or clarifications to existing laws that could impact our tax treaty positions, which could adversely impact the returns on our
funds’ investments,
•
 
a less developed legal or regulatory environment, differences in the legal and regulatory environment or enhanced legal and regulatory
compliance,
•
 
heightened exposure to corruption risk in certain non-U.S. markets,
•
 
political hostility to investments by foreign or private equity investors,
•
 
reliance on a more limited number of commodity inputs, service providers and/or distribution mechanisms,
•
 
more volatile or challenging market or economic conditions, including higher rates of inflation,
•
 
higher transaction costs,
•
 
difficulty in enforcing contractual obligations,
•
 
fewer investor protections and less publicly available information about companies,
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•
 
certain economic and political risks, including potential exchange control regulations and restrictions on our non-U.S. investments and
repatriation of profits on investments or of capital invested, the risks of war, terrorist attacks, political, economic or social instability, the
possibility of expropriation or confiscatory taxation and adverse economic and political developments and
•
 
the possible imposition of non-U.S. taxes or withholding on income and gains recognized with respect to such securities.
In addition, investments in companies that are based outside of the United States may be negatively impacted by restrictions on international trade or
the imposition of tariffs, which have been an area of focus for the current U.S. Presidential administration. See “— Trade negotiations and related government
actions may create regulatory uncertainty for our funds’ portfolio companies and our investment strategies and adversely affect the profitability of our funds’
portfolio companies.”
We may not have sufficient cash to pay back “clawback” obligations if and when they are triggered under the governing agreements with our investors.
In certain circumstances, at the end of the life of a carry fund (and earlier with respect to certain of our funds), we may be obligated to repay the amount
by which Performance Allocations that were previously distributed to us exceed the amounts to which the relevant general partner is ultimately entitled on an
after-tax basis. This includes situations in which the general partner receives in excess of the relevant Performance Allocations applicable to the fund as
applied to the fund’s cumulative net profits over the life of the fund or, in some cases, the fund has not achieved investment returns that exceed the preferred
return threshold. This obligation is known as a “clawback” obligation and is an obligation of any person who received such Performance Allocations, including
us and other participants in our Performance Allocations plans. Although a portion of any dividends by us to our stockholders may include any Performance
Allocations received by us, we do not intend to seek fulfillment of any clawback obligation by seeking to have our stockholders return any portion of such
dividends attributable to Performance Allocations associated with any clawback obligation. To the extent we are required to fulfill a clawback obligation,
however, our board of directors may determine to decrease the amount of our dividends to our stockholders. The clawback obligation operates with respect
to a given carry fund’s own net investment performance only and performance of other funds are not netted for determining this contingent obligation.
Adverse economic conditions may increase the likelihood that one or more of our carry funds may be subject to clawback obligations. To the extent one
or more clawback obligations were to occur for any one or more carry funds, we might not have available cash at the time such clawback obligation is
triggered to repay the Performance Allocations and satisfy such obligation. If we were unable to repay such Performance Allocations, we would be in breach
of the governing agreements with our investors and could be subject to liability. Moreover, although a clawback obligation is several, the governing
agreements of most of our funds provide that to the extent another recipient of Performance Allocations (such as a current or former employee) does not
fund his or her respective share, then we and our employees who participate in such Performance Allocations plans may have to fund additional amounts
(generally an additional 50-70% beyond our pro-rata share of such obligations) beyond what we actually received in Performance Allocations. Although we
retain the right to pursue any remedies that we have under such governing agreements against those Performance Allocations recipients who fail to fund their
obligations, we may not be successful in recovering such amounts.
Investors in a number of our vehicles may withdraw their investments, and investors in certain of our vehicles may have a right to terminate our
management of, or cause the dissolution of, such vehicles, which would lead to a decrease in our revenues.
We have a number of vehicles that permit investors in such vehicles to withdraw their investments and/or terminate our management of such capital, as
applicable and in certain cases, subject to certain limitations. Investors in our hedge funds may generally redeem their investments on a periodic basis
following, in certain cases,
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the expiration of a specified period of time when capital may not be withdrawn, subject to the applicable fund’s specific redemption provisions. In addition, in
certain other open-ended and/or perpetual capital vehicles, including certain of our investment vehicles that are available to individual investors, such as
BREIT, BCRED and BXPE, investors may request redemptions or repurchases of their interests on a periodic basis, subject to certain limitations. During periods
of market volatility, investor subscriptions to such vehicles are likely to be reduced, and investor redemption or repurchase requests are likely to be elevated,
which may negatively impact the fees we earn from such vehicles. In a declining market, our liquid or semi-liquid vehicles have and may continue to
experience declines in value, which may be provoked and/or exacerbated by margin calls and forced selling of assets. Investors may also seek to redeem their
interests due to changes in interest rates that make other investments more attractive, rebalancing of their asset allocations, changes in investor perception of
us and our reputation, unhappiness with a fund’s performance or investment strategy, departures or changes in responsibilities of key investment
professionals, and liquidity needs.
To the extent appropriate and permissible under a vehicle’s constituent documents, we have previously and may in the future limit or prorate
redemptions or repurchases in such vehicle for a period of time. This may subject us to reputational harm, make such vehicles less attractive to investors in
the future and negatively impact future subscriptions to such vehicles. This could have a material adverse effect on the revenues we derive from such
vehicles. For example, market volatility drove a material increase in BREIT repurchase requests beginning in late 2022, and pursuant to the terms of the
vehicle, BREIT began to prorate such requests beginning in November 2022. BREIT inflows also materially declined after proration was announced, which led
to net outflows in BREIT. The inclusion of redemption features in investment vehicles creates heightened risk of operational error, including with respect to
the calculation of net asset values, which could expose us to increased risk of litigation, regulatory action and reputational damage.
In addition, we currently manage a significant portion of investor assets through separately managed accounts whereby we earn management and/or
incentive fees, and we intend to continue to seek additional separately managed account mandates. The investment management agreements we enter into
in connection with managing separately managed accounts on behalf of certain clients may be terminated by such clients on as little as 30 days’ prior written
notice. In addition, the boards of directors of the investment management companies we manage could terminate our advisory engagement of those
companies, on as little as 30 days’ prior written notice. In the case of any such terminations, the management and incentive fees we earn in connection with
managing such account or company would immediately cease, which could result in a significant adverse impact on our revenues.
The governing agreements of many of our investment funds provide that, subject to certain conditions, third-party investors in those funds have the right
to remove the general partner of the fund or to accelerate the termination date of the investment fund without cause by a majority or supermajority vote,
resulting in a reduction in management fees we would earn from such investment funds and a significant reduction in the amounts of Performance Revenues
from those funds. Performance Revenues could be significantly reduced as a result of our inability to maximize the value of investments by an investment
fund during the liquidation process or in the event of the triggering of a “clawback” obligation or a recoupment of loss carry forward amounts. In addition, the
governing agreements of our investment funds provide that in the event certain “key persons” in our investment funds do not meet specified time
commitments with regard to managing the fund, then investors in certain funds have the right to vote to terminate the investment period by a specified
percentage (including, in certain cases, a simple majority) vote in accordance with specified procedures, accelerate the withdrawal of their capital on an
investor-by-investor basis, or the fund’s investment period will automatically terminate and a specified percentage (including, in certain cases, a simple
majority) vote of investors is required to restart it. In addition, the governing agreements of some of our investment funds provide that investors have the
right to terminate, for any reason, the investment period by a vote of 75% of the investors in such fund. In addition to having a significant negative impact on
our revenue, net income and cash flow, the occurrence of such an event with respect to any of our investment funds would likely result in significant
reputational damage to us.
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In addition, because our investment funds have advisers that are registered under the Advisers Act, an “assignment” of the management agreements of
our investment funds (which may be deemed to occur in the event these advisers were to experience a change of control) would generally be prohibited
without consent of the investment fund, which may require investor consent. We cannot be certain that consents required for assignments of our investment
management agreements will be obtained if a change of control occurs, which could result in the termination of such agreements and the corresponding loss
of revenue. In addition, with respect to our 1940 Act registered funds, the continuance of each investment fund’s investment management agreement
generally must be approved annually by the fund’s board of directors, including independent members of such fund’s board of directors and, in certain cases,
by its stockholders, as required by law. Termination of these agreements would cause us to lose the fees we earn from such investment funds.
Third-party investors in our investment funds with commitment-based structures may not satisfy their contractual obligation to fund capital calls when
requested by us, which could adversely affect a fund’s operations and performance.
Investors in all of our carry funds (and certain of our hedge funds) make capital commitments to those funds that we are entitled to call from those
investors at any time during prescribed periods. We depend on investors fulfilling their commitments when we call capital from them in order for those funds
to consummate investments and otherwise pay their obligations (for example, management fees) when due. A default by an investor may also limit a fund’s
availability to incur borrowings and avail itself of what would otherwise have been available credit. We have not had investors default on capital calls to any
meaningful extent. Any investor that did not fund a capital call would generally be subject to several possible penalties, including having a significant amount
of its existing investment forfeited in that fund. However, the impact of the forfeiture penalty is directly correlated to the amount of capital previously
invested by the investor in the fund and if an investor has invested little or no capital, for instance early in the life of the fund, then the forfeiture penalty may
not be as meaningful. Third-party investors in carry funds typically use distributions from prior investments to meet future capital calls. In cases where
valuations of investors’ existing investments fall and the pace of distributions slows, investors may be unable to make new commitments to third-party
managed investment funds such as those advised by us. If investors were to fail to satisfy a significant amount of capital calls for any particular fund or funds,
the operation and performance of those funds could be materially and adversely affected.
Risk management activities may adversely affect the return on our funds’ investments.
When managing our exposure to market risks, we may (on our own behalf or on behalf of our funds) from time to time use forward contracts, options,
swaps, caps, collars and floors or pursue other strategies or use other forms of derivative instruments to limit our exposure to changes in the relative values of
investments that may result from market developments, including changes in prevailing interest rates, currency exchange rates and commodity prices. The
use of derivative financial instruments and other risk management strategies may not be properly designed to hedge, manage or otherwise reduce the risks
we have identified. In addition, we may not be able to identify, or may not have fully identified, all applicable material market risks to which we are exposed.
We may also choose not to hedge, in whole or in part, any of the risks that have been identified. The success of any hedging or other derivatives transactions
generally will depend on our ability to correctly predict market changes, the degree of correlation between price movements of a derivative instrument, the
position being hedged, the creditworthiness of the counterparty and other factors, some of which may be beyond our ability to hedge. As a result, while we
may enter into a transaction in order to reduce our exposure to market risks, the unintended market changes may result in poorer overall investment
performance than if it had not been executed. Such transactions may also limit the opportunity for gain if the value of a hedged position increases.
While such hedging arrangements may reduce certain risks, such arrangements themselves may entail certain other risks. These arrangements may
require the posting of cash collateral at a time when a fund has insufficient cash or illiquid assets such that the posting of the cash is either impossible or
requires the sale of assets at prices
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that do not reflect their underlying value. In addition, if our derivative counterparties or clearinghouses fail to meet their obligations with respect to the
posting of cash collateral, our efforts to mitigate certain risks may be ineffective. Moreover, these hedging arrangements may generate significant transaction
costs, including potential tax costs, that reduce the returns generated by a fund.
Finally, the regulation of derivatives and commodity interest transactions in the United States and other countries is a rapidly changing area of law and is
subject to ongoing modification by governmental and judicial action. Newly instituted and amended regulations could significantly increase the cost of
entering into derivative contracts (including through requirements to post collateral, which could negatively impact available liquidity), materially alter the
terms of derivative contracts, reduce the availability of derivatives to protect against risks, reduce our ability to restructure our existing derivative contracts
and increase our exposure to less creditworthy counterparties. Furthermore, the CFTC may in the future require certain foreign exchange products to be
subject to mandatory clearing, which could increase the cost of entering into currency hedges.
Our real estate funds are subject to the risks inherent in the ownership and operation of real estate and the construction and development of real estate.
Investments by our real estate funds will be subject to the risks inherent in the ownership and operation of real estate and real estate-related businesses
and assets. Such investments are subject to the potential for deterioration of real estate fundamentals and the risk of adverse changes in local market and
economic conditions, which may include changes in supply of and demand for competing properties in an area, increases in interest rates and borrowing
costs, fluctuations in the average occupancy and room rates for hotel properties, changes in demand for commercial office properties (including as a result of
an increased prevalence of remote work), changes in the financial resources of tenants, defaults by borrowers or tenants, depressed travel activity, and the
lack of availability of mortgage funds, which may render the sale or refinancing of properties difficult or impracticable. In addition, investments in real estate
and real estate-related businesses and assets may be subject to the risk of environmental liabilities, contingent liabilities upon disposition of assets, casualty
or condemnations losses, energy and supply shortages, natural disasters, climate change related risks (including climate-related transition risks and acute and
chronic physical risks), acts of god, terrorist attacks, war, pandemics or other severe public health events, such as COVID-19, and other events that are beyond
our control, and various uninsured or uninsurable risks. Further, investments in real estate and real estate-related businesses and assets are subject to
changes in law and regulation, including in respect of building, environmental and zoning laws, rent control and other regulations impacting our residential
real estate investments and changes to tax laws and regulations, including real property and income tax rates and the taxation of business entities and the
deductibility of corporate interest expense. For example, we have seen an increasing focus toward rent regulation as a means to address residential
affordability caused by undersupply of housing in certain markets in the U.S. and Europe, which may contribute to adverse operating performance in certain
parts of our residential real estate portfolio, including by moderating rent growth in certain geographies and markets. In addition, to the extent our real estate
funds acquire direct or indirect interests in undeveloped land or underdeveloped real property, which may often be non-income producing, they will be
subject to the risks normally associated with such assets and development activities, including risks relating to the availability and timely receipt of zoning and
other regulatory or environmental approvals, the cost and timely completion of construction (including risks beyond the control of our funds, such as weather
or labor conditions or material shortages) and the availability of both construction and permanent financing on favorable terms.
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Certain of our investment funds may invest in securities of companies that are experiencing significant financial or business difficulties, including
companies involved in bankruptcy or other reorganization and liquidation proceedings. Such investments are subject to a greater risk of poor performance
or loss.
Certain of our investment funds, especially our credit-focused funds, may invest in business enterprises involved in work-outs, liquidations, spin-offs,
reorganizations, bankruptcies and similar transactions and may purchase high-risk receivables. An investment in such business enterprises entails the risk that
the transaction in which such business enterprise is involved either will be unsuccessful, will take considerable time or will result in a distribution of cash or a
new security the value of which will be less than the purchase price to the fund of the security or other financial instrument in respect of which such
distribution is received. In addition, if an anticipated transaction does not in fact occur, the fund may be required to sell its investment at a loss. Investments
in troubled companies may also be adversely affected by U.S. federal and state laws relating to, among other things, fraudulent conveyances, voidable
preferences, lender liability and a bankruptcy court’s discretionary power to disallow, subordinate or disenfranchise particular claims. Investments in
securities and private claims of troubled companies made in connection with an attempt to influence a restructuring proposal or plan of reorganization in a
bankruptcy case may also involve substantial litigation. Because there is substantial uncertainty concerning the outcome of transactions involving financially
troubled companies, there is a potential risk of loss by a fund of its entire investment in such company. Adverse publicity and investor perceptions, whether or
not based on fundamental analysis, may also decrease the value and liquidity of securities rated below investment grade or otherwise adversely affect our
reputation.
In addition, at least one federal Circuit Court has determined that an investment fund could be liable for ERISA Title IV pension obligations (including
withdrawal liability incurred with respect to union multiemployer plans) of its portfolio companies, if such fund is a “trade or business” and the fund’s
ownership interest in the portfolio company is significant enough to bring the investment fund within the portfolio company’s “controlled group.” While a
number of cases have held that managing investments is not a “trade or business” for tax purposes, the Circuit Court in this case concluded the investment
fund could be a “trade or business” for ERISA purposes based on certain factors, including the fund’s level of involvement in the management of its portfolio
companies and the nature of its management fee arrangements. Litigation related to the Circuit Court’s decision suggests that additional factors may be
relevant for purposes of determining whether an investment fund could face “controlled group” liability under ERISA, including the structure of the
investment and the nature of the fund’s relationship with other affiliated investors and co-investors in the portfolio company. Moreover, regardless of whether
an investment fund is determined to be a “trade or business” for purposes of ERISA, a court might hold that one of the fund’s portfolio companies could
become jointly and severally liable for another portfolio company’s unfunded pension liabilities pursuant to the ERISA “controlled group” rules, depending
upon the relevant investment structures and ownership interests as noted above.
Investments in energy, manufacturing, infrastructure, real estate and certain other assets may expose us to increased environmental liabilities that are
inherent in the ownership of real assets.
Ownership of real assets in our funds or vehicles may increase our risk of direct and/or indirect liability under environmental laws that impose, regardless
of fault, joint and several liability for the cost of remediating contamination and compensation for damages. In addition, changes in environmental laws or
regulations (including climate change initiatives) or the environmental condition of an investment may create liabilities that did not exist at the time of
acquisition. Even in cases where we are indemnified by a seller against liabilities arising out of violations of environmental laws and regulations, there can be
no assurance as to the financial viability of the seller to satisfy such indemnities or our ability to achieve enforcement of such indemnities. See “—Climate
change, climate and sustainability-related regulation and sustainability concerns could adversely affect our businesses and the operations of our funds’
portfolio companies, and any actions we take or fail to take in response to such matters could damage our reputation.”
Investments by our funds in the power and energy industries involve various operational, construction, regulatory and market risks.
The development, operation and maintenance of power and energy generation facilities involves many risks, including, as applicable, labor issues,
start-up risks, breakdown or failure of facilities, lack of sufficient capital to maintain the facilities and the dependence on a specific fuel source. Power and
energy generation facilities in
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which our funds invest are also subject to risks associated with volatility in the price of fuel sources and the impact of unusual or adverse weather conditions
or other natural events, such as droughts, wildfires or hurricanes, as well as the risk of performance below expected levels of output, efficiency or reliability.
The occurrence of any such items could result in lost revenues and/or increased expenses. In turn, such developments could impair a portfolio company’s
ability to repay its debt or conduct its operations. We may also choose or be required to decommission a power generation facility or other asset. The
decommissioning process could be protracted and result in the incurrence of significant financial and/or regulatory obligations or other uncertainties.
Our power and energy sector portfolio companies may also face construction risks typical for power generation and related infrastructure businesses.
Such developments could result in substantial unanticipated delays or expenses and, under certain circumstances, could prevent completion of construction
activities once undertaken. Delays in the completion of any power project may result in lost revenues or increased expenses, including higher operation and
maintenance costs related to such portfolio company.
The power and energy sectors are the subject of substantial and complex laws, rules and regulation by various federal and state regulatory agencies.
Failure to comply with applicable laws, rules and regulations could result in the prevention of operation of certain facilities or the prevention of the sale of
such a facility to a third party, as well as the loss of certain rate authority, refund liability, penalties and other remedies. Each of these could result in additional
costs to a portfolio company and adversely affect investment results. In addition, the increased scrutiny placed by regulators, elected officials and certain
investors with respect to the incorporation of sustainability factors in the investment process and the impact of certain investments made by our energy funds
has negatively impacted and is likely to continue to negatively impact our ability to exit certain of our conventional energy investments on favorable terms.
The current U.S. Presidential administration and certain members of the U.S. Congress have expressed support for the repeal of subsidies provided to the
clean energy sector by the Inflation Reduction Act of 2022. Conversely, legislative efforts by either party to overturn or modify policies or regulations enacted
by the prior administration could adversely affect our certain investments, including our alternative energy investments. Additionally, certain investors have
raised concerns as to whether the incorporation of sustainability factors in the investment and portfolio management process may be inconsistent with the
fiduciary duty to maximize returns for investors, which may result in such investors calling into question certain non-conventional energy investments made by
our energy funds.
In addition, the performance of the investments made by our credit and equity funds in the energy and natural resources markets are also subject to a
high degree of market risk, as such investments are likely to be directly or indirectly substantially dependent upon prevailing prices of oil, natural gas and
other commodities. Oil and natural gas prices are subject to wide fluctuation in response to factors beyond the control of us or our funds’ portfolio
companies, including relatively minor changes in the supply and demand for oil and natural gas, market uncertainty, the level of consumer product demand,
weather conditions, climate change initiatives, governmental regulation (including with respect to trade and economic sanctions), the price and availability of
alternative fuels, political and economic conditions in oil producing countries, foreign supply of such commodities and overall domestic and foreign economic
conditions. These factors make it difficult to predict future commodity price movements with any certainty.
Our funds’ investments in infrastructure assets may expose us to increased risks that are inherent in the ownership of real assets.
Investments in infrastructure assets may expose us to increased risks that are inherent in the ownership of real assets. For example,
•
 
Ownership of infrastructure assets may present risk of liability for personal and property injury or impose significant operating challenges and
costs with respect to, for example, compliance with zoning, environmental or other applicable laws.
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•
 
Infrastructure asset investments may face construction risks including, without limitation: (a) labor disputes, shortages of material and skilled
labor, or work stoppages, (b) slower than projected construction progress and the unavailability or late delivery of necessary equipment, (c) less
than optimal coordination with public utilities in the relocation of their facilities, (d) adverse weather conditions and unexpected construction
conditions, (e) accidents or the breakdown or failure of construction equipment or processes, and (f) catastrophic events such as explosions, fires,
terrorist attacks and other similar events. These risks could result in substantial unanticipated delays or expenses (which may exceed expected or
forecasted budgets) and, under certain circumstances, could prevent completion of construction activities once undertaken. Certain
infrastructure asset investments may remain in construction phases for a prolonged period and, accordingly, may not be cash generative for a
prolonged period. Recourse against the contractor may be subject to liability caps or may be subject to default or insolvency on the part of the
contractor.
•
 
The operation of infrastructure assets is exposed to potential unplanned interruptions caused by significant catastrophic or force majeure events.
These risks could, among other effects, adversely impact the cash flows available from investments in infrastructure assets, cause personal injury
or loss of life, damage property, or instigate disruptions of service. In addition, the cost of repairing or replacing damaged assets could be
considerable. Repeated or prolonged service interruptions may result in permanent loss of customers, litigation, or penalties for regulatory or
contractual non-compliance. Force majeure events that are incapable of, or too costly to, cure may also have a permanent adverse effect on an
investment.
•
 
The management of the business or operations of an infrastructure asset may be contracted to a third-party management company unaffiliated
with us. Although it would be possible to replace any such operator, the failure of such an operator to adequately perform its duties or to act in
ways that are in our best interest, or the breach by an operator of applicable agreements or laws, rules and regulations, could have an adverse
effect on the investment’s financial condition or results of operations. Infrastructure investments may involve the subcontracting of design and
construction activities in respect of projects, and as a result our funds’ investments are subject to the risks that contractual provisions passing
liabilities to a subcontractor could be ineffective, the subcontractor fails to perform services which it has agreed to perform and the
subcontractor becomes insolvent.
Infrastructure investments often involve an ongoing commitment to a municipal, state, federal or foreign government or regulatory agencies. The nature
of these obligations exposes us to a higher level of regulatory control than typically imposed on other businesses and may require us to rely on complex
government licenses, concessions, leases or contracts, which may be difficult to obtain or maintain. Such licenses, concessions, leases or contracts may also
be terminated for convenience without adequate compensation. Further, many of our funds’ investments are in critical infrastructure sectors, such as
transportation systems, energy and digital infrastructure, which are generally subject to heightened regulatory scrutiny at the time of investment and ongoing
compliance requirements. Such requirements are likely to expand our compliance burdens, costs and enforcement risks.
Infrastructure investments may require operators to manage such investments and such operators’ failure to comply with laws, including prohibitions
against bribing of government officials, may adversely affect the value of such investments and cause us serious reputational and legal harm. Revenues for
such investments may rely on contractual agreements for the provision of services with a limited number of counterparties, and are consequently subject to
counterparty default risk. The operations and cash flow of infrastructure investments are also more sensitive to inflation and, in certain cases, commodity
price risk. Furthermore, services provided by infrastructure investments may be subject to rate regulations by government entities that determine or limit
prices that may be charged. Similarly, users of applicable services or government entities in response to such users may react negatively to any adjustments in
rates and thus reduce the profitability of such infrastructure investments.
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Our funds’ investments in the life sciences industry may expose us to increased risks.
Investments by BXLS may expose us to increased risks. For example,
•
 
BXLS’s strategies include, among others, investments that are referred to as “corporate partnership” transactions. Corporate partnership
transactions are risk-sharing collaborations with biopharmaceutical and medical device partners on drug and medical device development
programs and investments in royalty streams of pre-commercial biopharmaceutical products. BXLS’s ability to source corporate partnership
transactions has been, and will continue to be, in part dependent on the ability of special purpose development companies to identify, diligence,
negotiate and in many cases, take the lead in executing the agreed development plans. Moreover, as such special purpose development
companies are jointly owned by us or our affiliates and unaffiliated life sciences investors, we (and our funds) are not the sole beneficiaries of
such sourcing strategies and capabilities of such special purpose development companies. In addition, payments to BXLS under such corporate
partnerships (which can include future royalty or other milestone-based payments) are often contingent upon the achievement of certain
milestones, including approvals of the applicable product candidate and/or product sales thresholds, over which BXLS may not have the ability to
exercise meaningful control.
•
 
Life sciences and healthcare companies are subject to extensive regulation by the U.S. Food and Drug Administration, similar foreign regulatory
authorities and, to a lesser extent, other federal and state agencies. These companies are subject to the expense, delay and uncertainty of the
product approval process, and there can be no guarantee that a particular product candidate will obtain regulatory approval. In addition, the
current regulatory framework may change or additional regulations may arise at any stage during the product development phase of an
investment, which may delay or prevent regulatory approval or impact applicable exclusivity periods. If a company in which our funds are
invested is unable to obtain regulatory approval for a product candidate, or a product candidate in which our funds are invested does not obtain
regulatory approval, in a timely fashion or at all, the value of our fund’s investment would be adversely impacted. In addition, in connection with
certain corporate partnership transactions, our special purpose development companies will be contractually obligated to run clinical trials.
Further, a clinical trial (including enrollment therein) or regulatory approval process for pharmaceuticals has and may in the future be delayed,
otherwise hindered or abandoned as a result of epidemics (including COVID-19), which could have a negative impact on the ability of the
investment to engage in trials or receive approvals, and thereby could adversely affect the performance of the investment. In the event such
clinical trials do not comply with the complicated regulatory requirements applicable thereto, such special purpose development companies may
be subject to regulatory actions.
•
 
Intellectual property often constitutes an important part of a life sciences company’s assets and competitive strengths, particularly for royalty
monetization and corporate partnership transactions. To the extent such companies’ intellectual property positions with respect to products in
which BXLS invests, whether through a royalty monetization or otherwise, are challenged, invalidated or circumvented, the value of BXLS’s
investment or BXLS’ rights in a termination event may be impaired. The success of a life sciences investment depends in part on the ability of the
biopharmaceutical or medical device companies in whose products BXLS invests to obtain and defend patent rights and other intellectual
property rights that are important to the commercialization of such products. The patent positions of such companies can be highly uncertain
and often involve complex legal, scientific and factual questions.
•
 
The commercial success of products could be compromised if governmental or third-party payers do not provide coverage and reimbursement,
breach, rescind or modify their contracts or reimbursement policies or delay payments for such products. In both the U.S. and foreign markets,
the successful sale of a life sciences company’s product depends on the ability to obtain and maintain adequate coverage and reimbursement
from third-party payers, including government healthcare programs and private insurance plans. Governments and third-party payers continue to
pursue aggressive initiatives to contain costs and
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manage drug utilization and are increasingly focused on the effectiveness, benefits and costs of similar treatments, which could result in lower
reimbursement rates and narrower populations for whom the products in which BXLS invests will be reimbursed by third-party payers. For
example, in the U.S., federal legislation has passed that modifies coverage, reimbursement and pricing policies for certain products. Regulatory
agencies have provided guidance on how they intend to implement certain components of the legislation. In addition, the Secretary of the
Department of Health and Human Services has indicated the potential for substantial policy and personnel changes. In general, as regulatory
agencies and others develop policies and continue to define and implement legislation, such policies and legislation may result in lower product
prices, altered market dynamics, lower consumer demand for certain products, or the unavailability of adequate third-party payer reimbursement
to enable BXLS to realize an appropriate return on its investment.
Our funds may be forced to dispose of investments at a disadvantageous time.
Our funds may make investments of which they do not advantageously dispose of prior to the date the applicable fund is dissolved, either by expiration
of such fund’s term or otherwise. Although we generally expect that our funds will dispose of investments prior to dissolution or that investments will be
suitable for in-kind distribution at dissolution, we may not be able to do so. The general partners of our funds have only a limited ability to extend the term of
the fund with the consent of fund investors or the advisory board of the fund, as applicable, and therefore, we may be required to sell, distribute or otherwise
dispose of investments at a disadvantageous time prior to dissolution. This would result in a lower than expected return on the investments and, perhaps, on
the fund itself.
Hedge fund investments are subject to numerous additional risks.
Investments by our funds of hedge funds in other hedge funds, as well as investments by our credit-focused, real estate debt and other hedge funds and
similar products, are subject to numerous additional risks, including the following:
•
 
Certain of the funds in which we invest are newly established funds without any operating history or are managed by management companies or
general partners who may not have as significant track records as a more established manager.
•
 
Generally, the execution of third-party hedge funds’ investment strategies is subject to the sole discretion of the management company or the
general partner of such funds. As a result, we do not have the ability to control the investment activities of such funds, including with respect to
the selection of investment opportunities, any deviation from stated or expected investment strategy, the liquidation of positions and the use of
leverage to finance the purchase of investments, each of which may impact our ability to generate a successful return on our fund’s investment in
such underlying fund.
•
 
Hedge funds may engage in speculative trading strategies, including short selling, which is subject to the theoretically unlimited risk of loss
because there is no limit on how much the price of a security may appreciate before the short position is closed out. A fund may be subject to
losses if a security lender demands return of the lent securities and an alternative lending source cannot be found or if the fund is otherwise
unable to borrow securities that are necessary to hedge or cover its positions.
•
 
Hedge funds are exposed to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions because of a
dispute over the terms of the contract (whether or not bona fide) or because of a credit or liquidity problem or otherwise, thus causing the fund
to suffer a loss. Counterparty risk is accentuated for contracts with longer maturities where events may intervene to prevent settlement, or
where the fund has concentrated its transactions with a single or small group of counterparties. Generally, hedge funds are not restricted from
dealing with any particular counterparty or from concentrating any or all of their transactions with one counterparty. Moreover, the funds’
internal consideration of the creditworthiness of their counterparties may prove insufficient. The absence of a regulated market to facilitate
settlement may increase the potential for losses.
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•
 
Credit risk may arise through a default by one of several large institutions that are dependent on one another to meet their liquidity or
operational needs, so that a default by one institution causes a series of defaults by the other institutions. This “systemic risk” may adversely
affect the financial intermediaries (such as clearing agencies, clearing houses, banks, securities firms and exchanges) with which the hedge funds
interact on a daily basis.
•
 
The efficacy of investment and trading strategies depends largely on the ability to establish and maintain an overall market position in a
combination of financial instruments. A hedge fund’s trading orders may not be executed in a timely and efficient manner due to various
circumstances, including systems failures or human error. In such event, the funds might only be able to acquire some but not all of the
components of the position, or if the overall position were to need adjustment, the funds might not be able to make such adjustment. As a result,
the funds would not be able to achieve the market position selected by the management company or general partner of such funds, and might
incur a loss in liquidating their position.
•
 
Hedge funds are subject to risks due to potential illiquidity of assets. Hedge funds may make investments or hold trading positions in markets
that are volatile and which may become illiquid. Timely divestiture or sale of trading positions can be impaired by decreased trading volume,
increased price volatility, concentrated trading positions, limitations on the ability to transfer positions in highly specialized or structured
transactions to which they may be a party, and changes in industry and government regulations. It may be impossible or costly for hedge funds to
liquidate positions rapidly in order to meet margin calls, withdrawal requests or otherwise, particularly if there are other market participants
seeking to dispose of similar assets at the same time or the relevant market is otherwise moving against a position or in the event of trading halts
or daily price movement limits on the market or otherwise. Any “gate” or similar limitation on withdrawals with respect to hedge funds may not
be effective in mitigating such risk. Moreover, these risks may be exacerbated for our funds of hedge funds. For example, if one of our funds of
hedge funds were to invest a significant portion of its assets in two or more hedge funds that each had illiquid positions in the same issuer, the
illiquidity risk for our funds of hedge funds would be compounded. For example, in 2008 many hedge funds, including some of our hedge funds,
experienced significant declines in value. In many cases, these declines in value were both provoked and exacerbated by margin calls and forced
selling of assets. Moreover, certain of our funds of hedge funds were invested in third-party hedge funds that halted redemptions in the face of
illiquidity and other issues, which precluded those funds of hedge funds from receiving their capital back on request.
•
 
Hedge fund investments are subject to risks relating to investments in commodities, futures, options and other derivatives, the prices of which
are highly volatile and may be subject to the theoretically unlimited risk of loss in certain circumstances, including if the fund writes a call option.
Price movements of commodities, futures and options contracts and payments pursuant to swap agreements are influenced by, among other
things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of
governments and national and international political and economic events and policies. The value of futures, options and swap agreements also
depends upon the price of the commodities underlying them and prevailing exchange rates. In addition, hedge funds’ assets are subject to the
risk of the failure of any of the exchanges on which their positions trade or of their clearinghouses or counterparties. Most U.S. commodities
exchanges limit fluctuations in certain commodity interest prices during a single day by imposing “daily price fluctuation limits” or “daily limits,”
the existence of which may reduce liquidity or effectively curtail trading in particular markets. As a result of their affiliation with us, our hedge
funds may from time to time be restricted from trading in certain securities (e.g., publicly traded securities issued by our current or potential
portfolio companies). This may limit their ability to acquire and/or subsequently dispose of investments in connection with transactions that
would otherwise generally be permitted in the absence of such affiliation. In addition, the use of leverage by the hedge funds in which our funds
of hedge funds invest poses additional risks, including those described in “— Dependence on significant leverage in investments by our funds
could adversely affect our ability to achieve attractive rates of return on those investments.”
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We are reliant on third-party service providers for certain aspects of our business, and are subject to risks in using prime brokers, custodians,
counterparties, administrators and other agents.
We are reliant on other third-party service providers for certain technology platforms that facilitate the continued operation of our business, including
cloud-based services. We generally have less control over the delivery of such third-party services, and as a result, may face disruptions to our ability to
operate our business as a result of interruptions of such services. A prolonged global failure of cloud services provided to us could result in cascading systems
failures. In addition, we may not be able to adapt our information systems and technology to accommodate our growth, or the cost of maintaining such
systems may increase materially from its current level, which could have a material adverse effect on us.
Many of our funds depend on the services of prime brokers, custodians, counterparties, administrators and other agents, including to carry out certain
securities and derivatives transactions. The terms of these contracts are often customized and complex, and many of these arrangements occur in markets or
relate to products that are subject to limited or no regulatory oversight. Some of our funds utilize prime brokerage arrangements with a relatively limited
number of counterparties, which has the effect of concentrating the transaction volume (and related counterparty default risk) of these funds with these
counterparties. Our funds are subject to the risk that the counterparty to one or more of these contracts defaults, either voluntarily or involuntarily, on its
performance under the contract. Any such default may occur suddenly and without notice to us. Moreover, if a counterparty defaults, we may be unable to
take action to cover our exposure, either because we lack contractual recourse or because market conditions make it difficult to take effective action. This
inability could occur in times of market stress, which is when defaults are most likely to occur.
In addition, our risk management process may not accurately anticipate the impact of market stress or counterparty financial condition, and as a result,
we may not have taken sufficient action to reduce our risks effectively. Default risk may arise from events or circumstances that are difficult to detect, foresee
or evaluate. In addition, concerns about, or a default by, one large participant could lead to significant liquidity problems for other participants, which may in
turn expose us to significant losses. Although we have risk management processes to ensure that we are not exposed to a single counterparty for significant
periods of time, given the large number and size of our funds, we often have large positions with a single counterparty. For example, most of our funds have
credit lines. If the lender under one or more of those credit lines were to become insolvent, we may have difficulty replacing the credit line and one or more
of our funds may face liquidity problems.
In the event of a counterparty default, particularly a default by a major investment bank or a default by a counterparty to a significant number of our
contracts, one or more of our funds may have outstanding trades that they cannot settle or are delayed in settling. As a result, these funds could incur
material losses and the resulting market impact of a major counterparty default could harm our businesses, results of operation and financial condition. In
addition, under certain local clearing and settlement regimes in Europe, we or our funds could be subject to settlement discipline fines. See “— Complex
regulatory regimes and potential regulatory changes in jurisdictions outside the United States could adversely affect our business.”
In the event of the insolvency of a prime broker, custodian, counterparty or any other party that is holding assets of our funds as collateral, our funds
might not be able to recover equivalent assets in full as they will rank among the prime broker’s, custodian’s or counterparty’s unsecured creditors in relation
to the assets held as collateral. In addition, our funds’ cash held with a prime broker, custodian or counterparty generally will not be segregated from the
prime broker’s, custodian’s or counterparty’s own cash, and our funds may therefore rank as unsecured creditors in relation thereto. If our derivatives
transactions are cleared through a derivatives clearing organization, the CFTC has issued final rules regulating the segregation and protection of collateral
posted by customers of cleared and uncleared swaps. The CFTC is also working to provide new guidance regarding prime broker arrangements and
intermediation generally with regard to trading on swap execution facilities.
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The counterparty risks that we face have increased in complexity and magnitude over time. For example, in certain areas the number of counterparties
we face has increased and may continue to increase, which may result in increased complexity and monitoring costs. Conversely, in certain other areas, the
consolidation and elimination of counterparties has increased our concentration of counterparty risk and decreased the universe of potential counterparties,
and our funds are generally not restricted from dealing with any particular counterparty or from concentrating any or all of their transactions with one
counterparty. In addition, counterparties have in the past and may in the future react to market volatility by tightening underwriting standards and increasing
margin requirements for all categories of financing, which may decrease the overall amount of leverage available and increase the costs of borrowing.
Underwriting activities by our capital markets services business expose us to risks.
Blackstone Securities Partners L.P. may act as an underwriter, syndicator or placement agent in securities offerings and, through affiliated entities, loan
syndications. We may incur losses and be subject to reputational harm to the extent that, for any reason, we are unable to sell securities or indebtedness we
purchased or placed as an underwriter, syndicator or placement agent at the anticipated price levels or at all. As an underwriter, syndicator or placement
agent, we also may be subject to liability for material misstatements or omissions in prospectuses and other offering documents relating to offerings we
underwrite, syndicate or place.
Risks Related to Our Organizational Structure
We are not required to comply with certain provisions of U.S. securities laws relating to proxy statements and certain related matters. This, coupled with
the significant voting power of holders of our Series I preferred stock and Series II preferred stock, may limit the ability of holders of our common stock to
influence our business.
Holders of our common stock are entitled to vote pursuant to Delaware law with respect to:
•
 
A conversion of the legal entity form of Blackstone,
•
 
A transfer, domestication or continuance of Blackstone to a foreign jurisdiction,
•
 
Any amendment of our certificate of incorporation to change the par value of our common stock or the powers, preferences or special rights of
our common stock in a way that would affect our common stock adversely,
•
 
Any amendment of our certificate of incorporation that requires for action the vote of a greater number or portion of the holders of common
stock than is required by any section of Delaware law, and
•
 
Any amendment of our certificate of incorporation to elect to become a close corporation under Delaware law.
In addition, our certificate of incorporation provides voting rights to holders of our common stock on the following additional matters:
•
 
A sale, exchange or disposition of all or substantially all of our assets,
•
 
A merger, consolidation or other business combination,
•
 
Any amendment of our certificate of incorporation or bylaws enlarging the obligations of the common stockholders,
•
 
Any amendment of our certificate of incorporation requiring the vote of the holders of a percentage of the voting power of the outstanding
common stock and Series I preferred stock, voting together as a single class, to take any action in a manner that would have the effect of reducing
such voting percentage and
•
 
Any amendments of our certificate of incorporation that are not included in the specified set of amendments that the Series II Preferred
Stockholder has the sole right to vote on.
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Furthermore, our certificate of incorporation provides that the holders of at least 66 2/3% of the voting power of the outstanding shares of common
stock and Series I preferred stock may vote to require the Series II Preferred Stockholder to transfer its shares of Series II preferred stock to a successor Series
II Preferred Stockholder designated by the holders of at least a majority of the voting power of the outstanding shares of common stock and Series I preferred
stock.
Other matters that are required to be submitted to a vote of the holders of our common stock generally require the approval of a majority of the voting
power of our outstanding shares of common stock and Series I preferred stock, voting together as a single class, including certain sales, exchanges or other
dispositions of all or substantially all of our assets, a merger, consolidation or other business combination, certain amendments to our certificate of
incorporation and the designation of a successor Series II Preferred Stockholder. Holders of our Series I preferred stock, as such, will collectively be entitled to
a number of votes equal to the aggregate number of Blackstone Holdings Partnership Units held by the limited partners of the Blackstone Holdings
Partnerships on the relevant record date and will vote together with holders of our common stock as a single class. As of February 21, 2025, Blackstone
Partners L.L.C., an entity owned by the senior managing directors of Blackstone and controlled by Mr. Schwarzman, owned the only share of Series I preferred
stock outstanding, representing approximately 38.5% of the total combined voting power of the common stock and Series I preferred stock, taken together.
Our certificate of incorporation and bylaws contain additional provisions affecting the holders of our common stock, including certain limits on the ability
of the holders of our common stock to call meetings, to acquire information about our operations and to influence the manner or direction of our
management. In addition, any person that beneficially owns 20% or more of the common stock then outstanding (other than the Series II Preferred
Stockholder or its affiliates, a direct or subsequently approved transferee of the Series II Preferred Stockholder or its affiliates or a person or group that has
acquired such stock with the prior approval of our board of directors) is unable to vote such stock on any matter submitted to such stockholders.
Moreover, we are not required to file proxy statements or information statements under Section 14 of the Exchange Act except in circumstances where a
vote of holders of our common stock is required under our certificate of incorporation or Delaware law, such as a merger, business combination or sale of all
or substantially all of our assets. In addition, we will generally not be subject to the “say-on-pay” and “say-on-frequency” provisions of the Dodd-Frank Act. As
a result, our common stockholders do not have an opportunity to provide a non-binding vote on the compensation of our named executive officers.
Moreover, holders of our common stock are not able to bring matters before our annual meeting of stockholders or nominate directors at such meeting, nor
are they generally able to submit stockholder proposals under Rule 14a-8 of the Exchange Act.
As a result, the holders of our common stock may be limited in their ability to influence our business. See “—Potential conflicts of interest may arise
among the Series II Preferred Stockholder and the holders of our common stock.”
We are a controlled company and as a result qualify for some exceptions from certain corporate governance and other requirements of the New York Stock
Exchange.
Because the Series II Preferred Stockholder holds more than 50% of the voting power for the election of directors, we are a “controlled company” and fall
within exceptions from certain corporate governance and other requirements of the rules of the New York Stock Exchange. Pursuant to these exceptions,
controlled companies
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may elect not to comply with certain corporate governance requirements of the New York Stock Exchange, including the requirements (a) that a majority of
our board of directors consist of independent directors, (b) that we have a nominating and corporate governance committee that is composed entirely of
independent directors, (c) that we have a compensation committee that is composed entirely of independent directors and (d) that the compensation
committee be required to consider certain independence factors when engaging compensation consultants, legal counsel and other committee advisers.
While we currently have a majority independent board of directors, we have elected to avail ourselves of the other exceptions. Accordingly, our common
stockholders generally do not have the same protections afforded to stockholders of companies that are subject to all of the corporate governance
requirements of the NYSE.
Potential conflicts of interest may arise among the Series II Preferred Stockholder and the holders of our common stock.
Blackstone Group Management L.L.C., an entity owned by senior managing directors of Blackstone and controlled by Mr. Schwarzman, is the sole holder
of the Series II Preferred stock. As a result, conflicts of interest may arise among the Series II Preferred Stockholder, on the one hand, and us and our holders
of our common stock, on the other hand. The Series II Preferred Stockholder has the ability to influence our business and affairs through its ownership of
Series II Preferred stock, the Series II Preferred Stockholder’s general ability to appoint our board of directors, and provisions under our certificate of
incorporation requiring Series II Preferred Stockholder approval for certain corporate actions (in addition to approval by our board of directors). If the holders
of our common stock are dissatisfied with the performance of our board of directors, they have no ability to remove any of our directors, with or without
cause. In addition, our certificate of incorporation contains provisions stating that the Series II Preferred Stockholder is under no obligation to consider the
separate interests of the other stockholders (including, without limitation, the tax consequences to such stockholders) in its decisions and shall not be liable to
the other stockholders for damages for any losses, liabilities or benefits not derived by such stockholders in connection with such decisions.
Further, through its ability to elect our board of directors, the Series II Preferred Stockholder has the ability to indirectly influence the determination of
the amount and timing of our funds’ investments and dispositions, cash expenditures, indebtedness, issuances of additional partnership interests, tax
liabilities and amounts of reserves, each of which can affect the amount of cash that is available for distribution to holders of Blackstone Holdings Partnership
Units.
In addition, conflicts may arise relating to the selection, structuring and disposition of investments and other transactions, declaring dividends and other
distributions and other matters due to the fact that our senior managing directors hold their Blackstone Holdings Partnership Units directly or through
pass-through entities that are not subject to corporate income taxation. See “Part III. Item 13. Certain Relationships and Related Transactions, and Director
Independence” and “Part III. Item 10. Directors, Executive Officers and Corporate Governance.”
The Series II Preferred Stockholder will not be liable to Blackstone or holders of our common stock for any acts or omissions unless there has been a final
and non-appealable judgment determining that the Series II Preferred Stockholder acted in bad faith or engaged in fraud or willful misconduct and we
have also agreed to indemnify the Series II Preferred Stockholder to a similar extent.
Even if there is deemed to be a breach of the obligations set forth in our certificate of incorporation, our certificate of incorporation provides that the
Series II Preferred Stockholder will not be liable to us or the holders of our common stock for any acts or omissions unless there has been a final and
non-appealable judgment by a court of competent jurisdiction determining that the Series II Preferred Stockholder or its officers and directors acted in bad
faith or engaged in fraud or willful misconduct. These provisions are detrimental to the holders of our common stock because they restrict the remedies
available to stockholders for actions of the Series II Preferred Stockholder.
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In addition, we have agreed to indemnify the Series II Preferred Stockholder and our former general partner and its controlling affiliates and any current
or former officer or director of any of Blackstone or its subsidiaries, the Series II Preferred Stockholder or former general partner and certain other specified
persons (collectively, the “Indemnitees”), to the fullest extent permitted by law, against any and all losses, claims, damages, liabilities, joint or several,
expenses (including legal fees and expenses), judgments, fines, penalties, interest, settlements or other amounts incurred by any Indemnitee. We have agreed
to provide this indemnification if the Indemnitee acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best
interests of Blackstone, and with respect to any alleged conduct resulting in a criminal proceeding against the Indemnitee, such person had no reasonable
cause to believe that such person’s conduct was unlawful. We have also agreed to provide this indemnification for criminal proceedings.
The Series II Preferred Stockholder may transfer its interest in the sole share of Series II preferred stock which could materially alter our operations.
Without the approval of any other stockholder, the Series II Preferred Stockholder may transfer the sole outstanding share of our Series II preferred stock
held by it to a third party upon receipt of approval to do so by our board of directors and satisfaction of certain other requirements. Further, the members or
other interest holders of the Series II Preferred Stockholder may sell or transfer all or part of their outstanding equity or other interests in the Series II
Preferred Stockholder at any time without our approval. A new holder of our Series II preferred stock or new controlling members of the Series II Preferred
Stockholder may appoint directors to our board of directors who have a different philosophy and/or investment objectives from those of our current
directors. A new holder of our Series II Preferred stock, new controlling members of the Series II Preferred Stockholder and/or the directors they appoint to
our board of directors could also have a different philosophy for the management of our business, including the hiring and compensation of our investment
professionals. If any of the foregoing were to occur, we could experience difficulty in forming new funds and other investment vehicles and in making new
investments, and the value of our existing investments, our business, our results of operations and our financial condition could materially suffer.
We intend to pay regular dividends to holders of our common stock, but our ability to do so may be limited by cash flow from operations and available
liquidity, our holding company structure, applicable provisions of Delaware law and contractual restrictions.
Our intention 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 our 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 stockholders for any ensuing quarter. All of the
foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our board of directors, and may change
at any time, including, without limitation, to reduce such quarterly dividends or to eliminate such dividends entirely.
Blackstone Inc. is a holding company and has no material assets other than the ownership of the partnership units in Blackstone Holdings held through
wholly owned subsidiaries. Blackstone Inc. has no independent means of generating revenue. Accordingly, we intend to cause Blackstone Holdings to make
distributions to its partners, including Blackstone Inc.’s wholly owned subsidiaries, to fund any dividends Blackstone Inc. may declare on our common stock.
Our ability to make dividends to our stockholders will depend on a number of factors, including among others general economic and business conditions,
our strategic plans and prospects, our business and investment opportunities, our financial condition and operating results, including the timing and extent of
our realizations, working capital requirements and anticipated cash needs, contractual restrictions and obligations including fulfilling
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our current and future capital commitments, legal, tax and regulatory restrictions, restrictions and other implications on the payment of dividends by us to
holders of our common stock or payment of distributions by our subsidiaries to us and such other factors as our board of directors may deem relevant. Our
ability to pay dividends is also subject to the availability of lawful funds therefor as determined in accordance with the Delaware General Corporation Law.
The amortization of finite-lived intangible assets and non-cash equity-based compensation results in expenses that may increase the net loss we record in
certain periods or cause us to record a net loss in periods during which we would otherwise have recorded net income.
As of December 31, 2024, we have $165.2 million of finite-lived intangible assets (in addition to $1.9 billion of goodwill), net of accumulated
amortization. These finite-lived intangible assets are from our initial public offering (“IPO”) and subsequent business acquisitions. We are amortizing these
finite-lived intangibles over their estimated useful lives, which range from three to twenty years, using the straight-line method, with a weighted-average
remaining amortization period of 5.3 years as of December 31, 2024. We also record non-cash equity-based compensation from grants made in the ordinary
course of business and in connection with other business acquisitions. The amortization of these finite-lived intangible assets and of this non-cash
equity-based compensation will increase our expenses during the relevant periods. These expenses may increase the net loss we record in certain periods or
cause us to record a net loss in periods during which we would otherwise have recorded net income. A substantial and sustained decline in our share price
could result in an impairment of intangible assets or goodwill leading to a further reduction in net income or increase to net loss in the relevant period.
We are required to pay our senior managing directors for most of the benefits relating to any additional tax depreciation or amortization deductions we
may claim as a result of the tax basis step-up we received as part of the reorganization we implemented in connection with our IPO or receive in
connection with future exchanges of our common stock and related transactions.
As part of the reorganization we implemented in connection with our IPO, we purchased interests in our business from our pre-IPO owners. In addition,
holders of partnership units in Blackstone Holdings (other than Blackstone Inc.’s wholly owned subsidiaries), subject to the vesting and minimum retained
ownership requirements and transfer restrictions set forth in the partnership agreements of the Blackstone Holdings Partnerships, may up to four times each
year (subject to the terms of the exchange agreement) exchange their Blackstone Holdings Partnership Units for shares of Blackstone Inc.’s common stock on a
one-for-one basis. A Blackstone Holdings limited partner must exchange one partnership unit in each of the Blackstone Holdings Partnerships to effect an
exchange for a share of common stock. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and
intangible assets of Blackstone Holdings that otherwise would not have been available. These increases in tax basis may increase (for tax purposes)
depreciation and amortization and therefore reduce the amount of tax that we would otherwise be required to pay in the future, although the IRS may
challenge all or part of that tax basis increase, and a court could sustain such a challenge.
We have entered into a tax receivable agreements with our senior managing directors and other pre-IPO owners that provides for the payment by us to
the counterparties of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of
these increases in tax basis and of certain other tax benefits related to entering into the tax receivable agreement, including tax benefits attributable to
payments under the tax receivable agreement. This payment obligation is an obligation of Blackstone Inc. and/or its wholly owned subsidiaries and not of
Blackstone Holdings. As such, the cash distributions to public stockholders may vary from holders of Blackstone Holdings Partnership Units (held by Blackstone
personnel and others) to the extent payments are made under the tax receivable agreements to selling holders of Blackstone Holdings Partnership Units. As
the payments reflect actual tax savings received by Blackstone entities, there may be a timing difference between the tax savings received by Blackstone
entities and the cash payments to
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selling holders of Blackstone Holdings Partnership Units. While the actual increase in tax basis, as well as the amount and timing of any payments under this
agreement, will vary depending upon a number of factors, including the timing of exchanges, the price of our common stock at the time of the exchange, the
extent to which such exchanges are taxable and the amount and timing of our income, we expect that as a result of the size of the increases in the tax basis of
the tangible and intangible assets of Blackstone Holdings, the payments that we may make under the tax receivable agreements will be substantial. The
payments under a tax receivable agreement are not conditioned upon a tax receivable agreement counterparty’s continued ownership of us. We may need to
incur debt to finance payments under the tax receivable agreement to the extent our cash resources are insufficient to meet our obligations under the tax
receivable agreements as a result of timing discrepancies or otherwise.
Although we are not aware of any issue that would cause the IRS to challenge a tax basis increase, the tax receivable agreement counterparties will not
reimburse us for any payments previously made under the tax receivable agreement. As a result, in certain circumstances payments to the counterparties
under the tax receivable agreement could be in excess of our actual cash tax savings. Our ability to achieve benefits from any tax basis increase, and the
payments to be made under the tax receivable agreements, will depend upon a number of factors, as discussed above, including the timing and amount of
our future income.
If Blackstone Inc. were deemed an “investment company” under the 1940 Act, applicable restrictions could make it impractical for us to continue our
business as contemplated and could have a material adverse effect on our business.
An entity will generally be deemed to be an “investment company” for purposes of the 1940 Act if: (a) it is or holds itself out as being engaged primarily,
or proposes to engage primarily, in the business of investing, reinvesting or trading in securities, or (b) absent an applicable exemption, it owns or proposes to
acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an
unconsolidated basis. We believe that we are engaged primarily in the business of providing asset management and capital markets services and not in the
business of investing, reinvesting or trading in securities. We also believe that the primary source of income from each of our businesses is properly
characterized as income earned in exchange for the provision of services. We hold ourselves out as an asset management and capital markets firm and do not
propose to engage primarily in the business of investing, reinvesting or trading in securities. Accordingly, we do not believe that Blackstone Inc. is an
“orthodox” investment company as defined in section 3(a)(1)(A) of the 1940 Act and described in clause (a) in the first sentence of this paragraph.
Furthermore, Blackstone Inc. does not have any material assets other than its equity interests in certain wholly owned subsidiaries, which in turn will have no
material assets (other than intercompany debt) other than general partner interests in the Blackstone Holdings Partnerships. These wholly owned subsidiaries
are the sole general partners of the Blackstone Holdings Partnerships and are vested with all management and control over the Blackstone Holdings
Partnerships. We do not believe the equity interests of Blackstone Inc. in its wholly owned subsidiaries or the general partner interests of these wholly owned
subsidiaries in the Blackstone Holdings Partnerships are investment securities. Moreover, because we believe that the capital interests of the general partners
of our funds in their respective funds are neither securities nor investment securities, we believe that less than 40% of Blackstone Inc.’s total assets (exclusive
of U.S. government securities and cash items) on an unconsolidated basis are comprised of assets that could be considered investment securities. Accordingly,
we do not believe Blackstone Inc. is an inadvertent investment company by virtue of the 40% test in section 3(a)(1)(C) of the 1940 Act as described in clause
(b) in the first sentence of this paragraph. In addition, we believe Blackstone Inc. is not an investment company under section 3(b)(1) of the 1940 Act because
it is primarily engaged in a non-investment company business.
The 1940 Act and the rules thereunder contain detailed parameters for the organization and operation of investment companies. Among other things,
the 1940 Act and the rules thereunder limit or prohibit transactions with affiliates, impose limitations on the issuance of debt and equity securities, generally
prohibit the issuance of options and impose certain governance requirements. We intend to conduct our operations so that Blackstone Inc.
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will not be deemed to be an investment company under the 1940 Act. If anything were to happen which would cause Blackstone Inc. to be deemed to be an
investment company under the 1940 Act, requirements imposed by the 1940 Act, including limitations on our capital structure, ability to transact business
with affiliates (including us) and ability to compensate key employees, could make it impractical for us to continue our business as currently conducted, impair
the agreements and arrangements between and among Blackstone Inc., Blackstone Holdings and our senior managing directors, or any combination thereof,
and materially adversely affect our business, financial condition and results of operations. In addition, we may be required to limit the amount of investments
that we make as a principal or otherwise conduct our business in a manner that does not subject us to the registration and other requirements of the
1940 Act.
Other anti-takeover provisions in our charter documents could delay or prevent a change in control.
In addition to the provisions described elsewhere relating to the Series II Preferred Stockholder’s control, other provisions in our certificate of
incorporation and bylaws may discourage, delay or prevent a merger or acquisition that a stockholder may consider favorable by, for example:
•
 
permitting our board of directors to issue one or more series of preferred stock,
•
 
providing for the loss of voting rights for the common stock,
•
 
requiring advance notice for stockholder proposals and nominations if they are ever permitted by applicable law,
•
 
placing limitations on convening stockholder meetings,
•
 
prohibiting stockholder action by written consent unless such action is consent to by the Series II Preferred Stockholder and
•
 
imposing super-majority voting requirements for certain amendments to our certificate of incorporation.
These provisions may also discourage acquisition proposals or delay or prevent a change in control.
Risks Related to Our Common Stock
The price of our common stock may decline due to the large number of shares of common stock eligible for future sale and for exchange.
The market price of our common stock could decline as a result of sales of a large number of shares of common stock in the market in the future or the
perception that such sales could occur. These sales, or the possibility that these sales may occur, also might make it more difficult for us to sell shares of
common stock in the future at a time and at a price that we deem appropriate. We had a total of 729,415,925 shares of common stock outstanding as of
February 21, 2025. Subject to the lock-up restrictions described below, we may issue and sell in the future additional shares of common stock. Limited
partners of Blackstone Holdings owned an aggregate of 439,589,683 Blackstone Holdings Partnership Units outstanding as of February 21, 2025. In connection
with our initial public offering, we entered into an exchange agreement with holders of Blackstone Holdings Partnership Units (other than Blackstone Inc.’s
wholly owned subsidiaries) so that these holders, subject to the vesting and minimum retained ownership requirements and transfer restrictions set forth in
the partnership agreements of the Blackstone Holdings Partnerships, may up to four times each year (subject to the terms of the exchange agreement)
exchange their Blackstone Holdings Partnership Units for shares of Blackstone Inc. common stock on a one-for-one basis, subject to customary conversion rate
adjustments for splits, unit distributions and reclassifications. A Blackstone Holdings limited partner must exchange one partnership unit in each of the
Blackstone Holdings Partnerships to effect an exchange for a share of common stock. The common stock we issue upon such exchanges would be “restricted
securities,” as defined in Rule 144 under the Securities Act, unless we register such issuances. However, we have entered into a registration rights agreement
with the limited partners of the Blackstone Holdings Partnerships that requires us to register these shares of common stock under the
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Securities Act and we have filed registration statements that cover the delivery of common stock issued upon exchange of Blackstone Holdings Partnership
Units. See “Part III. Item 13. Certain Relationships and Related Transactions, and Director Independence — Transactions with Related Persons — Registration
Rights Agreement.” While the partnership agreements of the Blackstone Holdings Partnerships and related agreements contractually restrict the ability of
Blackstone personnel to transfer the Blackstone Holdings Partnership Units or Blackstone Inc. common stock they hold and require that they maintain a
minimum amount of equity ownership during their employ by us, these contractual provisions may lapse over time or be waived, modified or amended at any
time.
As of February 21, 2025, we had granted 52,898,279 outstanding deferred restricted shares of common stock and 8,879,032 outstanding deferred
restricted Blackstone Holdings Partnership Units to our non-senior managing director professionals and senior managing directors under the Blackstone Inc.
Amended and Restated 2007 Equity Incentive Plan (“2007 Equity Incentive Plan”). The aggregate number of shares of common stock and Blackstone Holdings
Partnership Units (together, “Shares”) covered by our 2007 Equity Incentive Plan is increased on the first day of each fiscal year during its term by a number of
Shares equal to the positive difference, if any, of (a) 15% of the aggregate number of Shares outstanding on the last day of the immediately preceding fiscal
year (excluding Blackstone Holdings Partnership Units held by Blackstone Inc. or its wholly owned subsidiaries) minus (b) the aggregate number of Shares
covered by our 2007 Equity Incentive Plan as of such date (unless the administrator of the 2007 Equity Incentive Plan should decide to increase the number of
Shares covered by the plan by a lesser amount). An aggregate of 173,433,328 additional Shares were available for grant under our 2007 Equity Incentive Plan
as of February 21, 2025. We have filed a registration statement and intend to file additional registration statements on Form S-8 under the Securities Act to
register common stock covered by the 2007 Equity Incentive Plan (including pursuant to automatic annual increases). Any such Form S-8 registration
statement will automatically become effective upon filing. Moreover, we have filed a registration statement on Form S-3 under the Securities Act to register
common stock, among other securities, for future offerings. Accordingly, common stock registered under such registration statement will be available for sale
in the open market.
In addition, the Blackstone Holdings partnership agreements authorize the wholly owned subsidiaries of Blackstone Inc. which are the general partners of
those partnerships to issue an unlimited number of additional partnership securities of the Blackstone Holdings Partnerships with such designations,
preferences, rights, powers and duties that are different from, and may be senior to, those applicable to the Blackstone Holdings Partnership Units, and which
may be exchangeable for our shares of common stock.
Our certificate of incorporation also provides us with a right to acquire all of the then outstanding shares of common stock under specified circumstances,
which may adversely affect the price of our shares of common stock and the ability of holders of shares of common stock to participate in further growth in
our stock price.
Our certificate of incorporation provides that, if at any time, less than 10% of the total shares of any class of our stock then outstanding (other than Series
I preferred stock and Series II preferred stock) is held by persons other than the Series II Preferred Stockholder and its affiliates, we may exercise our right to
call and purchase all of the then outstanding shares of common stock held by persons other than the Series II Preferred Stockholder or its affiliates or assign
this right to the Series II Preferred Stockholder or any of its affiliates. As a result, a stockholder may have his or her shares of common stock purchased from
him or her at an undesirable time or price and in a manner which adversely affects the ability of a stockholder to participate in further growth in our stock
price.
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Our amended and restated bylaws designate the Court of Chancery of the State of Delaware or the federal district courts of the United States of America,
as applicable, as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our
stockholders’ ability to obtain a favorable judicial forum for disputes with Blackstone or our directors, officers or other employees.
Our amended and restated bylaws provide that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State
of Delaware will, to the fullest extent permitted by law, be the sole and exclusive forum for: (a) any derivative action or proceeding brought on our behalf,
(b) any action asserting a breach of fiduciary duty owed by any of our current or former directors, officers, stockholders or employees to us or our
stockholders, (c) any action asserting a claim against us arising under the Delaware General Corporation Law (the “DGCL”), our certificate of incorporation or
our amended and restated bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware, or (d) any action asserting a
claim against us that is governed by the internal affairs doctrine.
Our amended and restated bylaws further provide that, unless we consent in writing to the selection of an alternative forum, to the fullest extent
permitted by law, the federal district courts of the United States of America will be the exclusive forum for the resolution of any complaint asserting a cause of
action arising under the federal securities laws of the United States, including, in each case, the applicable rules and regulations promulgated thereunder.
Any person or entity purchasing or otherwise acquiring any interest in any shares of our capital stock shall be deemed to have notice of and to have
consented to the forum provision in our amended and restated bylaws. This choice-of-forum provision may limit a stockholder’s ability to bring a claim in a
different judicial forum, including one that it may find favorable or convenient for a specified class of disputes with Blackstone or our directors, officers, other
stockholders or employees, which may discourage such lawsuits. Alternatively, if a court were to find this provision of our amended and restated bylaws
inapplicable or unenforceable with respect to one or more of the specified types of actions or proceedings, we may incur additional costs associated with
resolving such matters in other jurisdictions, which could materially adversely affect our business, financial condition and results of operations and result in a
diversion of the time and resources of our management and board of directors.
Item 1B.
Unresolved Staff Comments
None.
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Item 1C.
Cybersecurity
Cybersecurity Risk Management and Strategy
Blackstone maintains a comprehensive cybersecurity program, including policies and procedures designed to protect our systems, operations and the
data entrusted to us by our investors, employees, portfolio companies and business partners from anticipated threats or hazards. Blackstone utilizes a variety
of protective measures as a part of its cybersecurity program. These measures include, where appropriate, physical and digital access controls, patch
management, identity verification and mobile device management software, new hire and annual employee cybersecurity awareness and best practices
training programs, security baselines and tools to report anomalous activity, and monitoring of data usage, hardware and software.
We test our cybersecurity defenses regularly through automated and manual vulnerability scanning, to identify and remediate critical vulnerabilities. In
addition, we conduct annual “white hat” penetration tests to validate our security posture. We examine our cybersecurity program every two to three years
with third parties, evaluating its effectiveness in part by considering industry standards and established frameworks, such as the National Institute of
Standards and Technology and Center for Internet Security, as guidelines. Further, we engage in cybersecurity incident tabletop exercises and scenario
planning exercises involving hypothetical cybersecurity incidents to test our cybersecurity incident response processes. Our Chief Security Officer (the “CSO”)
and members of senior management, Legal and Compliance, Technology and Innovations (“BXTI”) and Global Corporate Affairs participate in these exercises.
Learnings from these tabletop exercises and any cybersecurity events we experience are reviewed, discussed and incorporated into our cybersecurity incident
response processes, as appropriate.
In addition to our internal exercises to test aspects of our cybersecurity program, we periodically engage independent third parties to analyze data on the
interactions of users of our information technology resources, including employees, and conduct penetration tests and scanning exercises to assess the
performance of our cybersecurity systems and processes.
We have a comprehensive Security Incident Response Plan (the “IRP”) designed to inform the proper escalation of non-routine suspected or confirmed
information security or cybersecurity events based on the expected risk an event presents. As appropriate, a Security Incident Response Team composed of
individuals from several internal technical and managerial functions may be formed to investigate and remediate the event and determine the extent of
external advisor support required, including from external counsel, forensic investigators, and/or law enforcement. The IRP sets out ongoing monitoring or
remediating actions to be taken after resolution of an incident. The IRP is reviewed at least annually by members of BXTI and Legal and Compliance.
Blackstone maintains a formal cybersecurity risk management process and cybersecurity risk register, designed to identify, track and treat cybersecurity
risks at the firm, and integrates these processes into the firm’s overall risk management practices described above. Our CSO periodically discusses and reviews
cybersecurity risks and related mitigants with our enterprise risk committee and incorporates relevant cybersecurity risk updates and metrics in the semi-
annual enterprise-wide risk management report.
Blackstone has a process designed to assess the cybersecurity risks associated with the engagement of third-party vendors. This assessment is conducted
on the basis of, among other factors, the types of services provided and the extent and type of Blackstone data accessed or processed by a third-party vendor.
On the basis of its preliminary risk assessment of a third-party vendor, Blackstone may conduct further cybersecurity reviews or request remediation of, or
contractual protections related to, any actual or potential identified cybersecurity risks.
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In addition, where appropriate, Blackstone seeks to include in its contractual arrangements with certain of its third-party vendors provisions addressing its
requirements and industry best practices with respect to data and cybersecurity, as well as the right to assess, monitor, audit and test such vendors’
cybersecurity programs and practices. Blackstone also utilizes a number of digital controls, which are reviewed at least annually, to monitor and manage third-
party access to its internal systems and data.
For a discussion of how risks from cybersecurity threats affect our business, see “—Item 1A. Risk Factors — Risk Related to our Business — Cybersecurity
and data protection risks could result in the loss of data, interruptions in our business, and damage to our reputation, and subject us to regulatory actions,
increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations.” in this Annual Report on
Form 10-K.
Cybersecurity Governance
Blackstone has a dedicated cybersecurity team, led by our CSO, who works closely with our senior management, including our Chief Technology Officer
(“CTO”), to develop and advance the firm’s cybersecurity program and strategy.
Our CSO and CTO have extensive experience in cybersecurity and technology, respectively. Our CSO is a Senior Managing Director in BXTI and is
responsible for all aspects of cyber and physical security across Blackstone. He has over 25 years of information security, technology and engineering
experience, including having previously led the international security organization at a large credit bureau.
Our CTO is a Senior Managing Director and the head of BXTI. Our CTO has over 23 years of information security, technology and engineering experience,
including having previously served as the Chief Technology and Chief Innovation Officer at a large financial institution. Our CTO is responsible for all aspects of
technology across Blackstone, advises our investment teams and acts as a resource to portfolio companies on technology-related matters.
BXTI conducts periodic cybersecurity risk assessments, including assessments or audits of third-party vendors, and assists with the management and
mitigation of identified cybersecurity risks. The CSO and CTO are responsible for the review of Blackstone’s cybersecurity framework annually as well as on an
event-driven basis as necessary. The CSO and CTO also review the scope of our cybersecurity measures periodically, including in the event of a change in
business practices that may implicate the security or integrity of our information and systems.
Blackstone’s board of directors is responsible for understanding the primary risks to our business. The audit committee of our board of directors is
responsible for reviewing with management the areas of material risk to our operations and financial results (including, without limitation, applicable major
financial and cybersecurity risks and exposures) and our guidelines and policies with respect to risk assessment and risk management. Blackstone’s CSO
reports to the board of directors and the audit committee of the board of directors at least annually on cybersecurity matters, including risks. These reports
also include, as applicable, an overview of cybersecurity incidents. Additionally, the CSO provides quarterly updates to management on Blackstone’s
cybersecurity risks and program developments.
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Item 2.
Properties
Our principal executive offices are located in leased office space at 345 Park Avenue, New York, New York. As of December 31, 2024, in addition to our
offices in New York, we also leased offices in Hong Kong, London, Miami, New Jersey, San Francisco, Singapore, Tokyo and other cities around the world. We
consider these facilities to be suitable and adequate for the management and operations of our business.
Item 3.
Legal Proceedings
We may from time to time be involved in litigation and claims incidental to the conduct of our business. Our businesses are also subject to extensive
regulation, which may result in regulatory proceedings against us. See “— Item 1A. Risk Factors” above. We are not currently subject to any pending legal
(including judicial, regulatory, administrative or arbitration) proceedings that we expect to have a material impact on our consolidated financial statements.
However, given the inherent unpredictability of these types of proceedings and the potentially large and/or indeterminate amounts that could be sought, an
adverse outcome in certain matters could have a material effect on Blackstone’s financial results in any particular period. See “Part II. Item 8. Financial
Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 18. Commitments and Contingencies — Contingencies —
Litigation.”
Item 4.
Mine Safety Disclosures
Not applicable.
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Part II.
Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Our common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “BX.”
The number of holders of record of our common stock as of February 21, 2025 was 60. This does not include the number of stockholders that hold shares
in “street name” through banks or broker-dealers. Blackstone Partners L.L.C. is the sole holder of the single share of Series I preferred stock outstanding and
Blackstone Group Management L.L.C. is the sole holder of the single share of Series II preferred stock outstanding.
The following table sets forth the quarterly per share dividends earned for the periods indicated. Each quarter’s dividends are declared and paid in the
following quarter.
 
  
2024    
2023  
First Quarter
  
$0.83   
$0.82 
Second Quarter
  
  0.82   
  0.79 
Third Quarter
  
  0.86   
  0.80 
Fourth Quarter
  
  1.44   
  0.94 
  
 
 
 
  
 
 
 
  
$3.95   
$3.35 
  
 
 
 
  
 
 
 
Dividend Policy
Our 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 our board of directors to be necessary or appropriate to provide for the conduct of our business,
to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for
future cash requirements such as tax-related payments, clawback obligations and dividends to stockholders for any ensuing quarter. The dividend amount
could also be adjusted upward in any one quarter.
For Blackstone’s definition of Distributable Earnings, see “— Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Key Financial Measures and Indicators.”
All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our 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.
Because Blackstone Inc. is a holding company and has no material assets, other than its ownership of partnership units in Blackstone Holdings (held
through wholly owned subsidiaries), intercompany loans receivable and deferred tax assets, we fund any dividends by Blackstone Inc. by causing Blackstone
Holdings to make distributions to its partners, including Blackstone Inc. (through its wholly owned subsidiaries). If Blackstone Holdings makes such
distributions, the limited partners of Blackstone Holdings will be entitled to receive equivalent distributions pro-rata based on their partnership interests in
Blackstone Holdings. Blackstone Inc. then dividends its share of such distributions, net of taxes and amounts payable under the tax receivable agreements, to
our stockholders on a pro-rata basis.
Because the publicly traded entity and/or its wholly owned subsidiaries must pay taxes and make payments under the tax receivable agreements
described in “— Item 8. Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 17. Related Party Transactions,”
the amounts ultimately paid as dividends by Blackstone Inc. to common stockholders in respect of each fiscal year are generally expected to be
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less, on a per share or per unit basis, than the amounts distributed by the Blackstone Holdings Partnerships to the Blackstone personnel and others who are
limited partners of the Blackstone Holdings Partnerships in respect of their Blackstone Holdings Partnership Units.
Dividends are treated as qualified dividends to the extent of Blackstone’s current and accumulated earnings and profits, with any excess dividends
treated as a return of capital to the extent of the stockholder’s basis.
In addition, the partnership agreements of the Blackstone Holdings Partnerships provide for cash distributions, which we refer to as “tax distributions,” to
the partners of such partnerships if the wholly owned subsidiaries of Blackstone Inc. which are the general partners of the Blackstone Holdings Partnerships
determine that the taxable income of the relevant partnership will give rise to taxable income for its partners. Generally, these tax distributions will be
computed based on our estimate of the net taxable income of the relevant partnership allocable to a partner multiplied by an assumed tax rate equal to the
highest effective marginal combined U.S. federal, state and local income tax rate prescribed for an individual or corporate resident in New York, New York
(taking into account the non-deductibility of certain expenses and the character of our income). The Blackstone Holdings Partnerships will make tax
distributions only to the extent distributions from such partnerships for the relevant year were otherwise insufficient to cover such estimated assumed tax
liabilities.
Share Repurchases in the Fourth Quarter of 2024
The following table sets forth information regarding repurchases of shares of our common stock during the quarter ended December 31, 2024:
Period
  
Total Number
of Shares
Purchased   
Average
Price Paid
per Share   
Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs (a)   
Approximate Dollar
Value of Shares that
May Yet Be Purchased
Under the Program
(Dollars in Thousands) (a)
Oct. 1 - Oct. 31, 2024
  
 
77,777   
$169.32   
 
77,777    
$
1,846,014 
Nov. 1 - Nov. 30, 2024
  
  186,576   
$180.89   
 
186,576    
$
1,812,265 
Dec. 1 - Dec. 31, 2024
  
 
—   
$
—   
 
—    
$
1,812,265 
  
 
 
 
  
  
 
 
 
  
  
  264,353   
  
 
264,353    
  
 
 
 
  
  
 
 
 
  
(a)
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership
Units. This authorization replaced Blackstone’s prior $2.0 billion repurchase authorization. Under the repurchase program, repurchases may be made
from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will
depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed,
suspended or discontinued at any time and does not have a specified expiration date. See “— Item 8. Financial Statements and Supplementary Data —
Notes to Consolidated Financial Statements — Note 15. Earnings Per Share and Stockholders’ Equity — Share Repurchase Program” and “— Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Share Repurchase Program”
for further information regarding this repurchase program.
As permitted by our policies and procedures governing transactions in our securities by our directors, executive officers and other employees, from time
to time some of these persons may establish plans or arrangements complying with Rule 10b5-1 under the Exchange Act, and similar plans and arrangements
relating to our shares and Blackstone Holdings Partnership Units.
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Item 6.
(Reserved)
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with Blackstone Inc.’s consolidated financial statements and the related notes included
within this Annual Report on Form 10-K.
For a discussion of our results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022, see “Part II. Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” of Exhibit 99.1 of Blackstone’s Current Report on Form 8-K filed on
November 25, 2024.
Our Business
Blackstone is the world’s largest alternative asset manager. Our business is organized into four segments: Real Estate, Private Equity, Credit & Insurance
and Multi-Asset Investing. For more information about our business segments, see “Part I. Item 1. Business — Business Segments.”
We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies, and from capital
markets services. We also invest in the funds we manage and we are entitled to a pro-rata share of the income of the fund (a “pro-rata allocation”). In
addition to a pro-rata allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income
otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain structures, we receive a
contractual incentive fee from an investment vehicle based on achieving certain investment returns (an “Incentive Fee,” and together with Performance
Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different businesses in
which we operate. Net investment gains and investment income generated by the Blackstone Funds are driven by the performance of the underlying
investments as well as overall market conditions. Fair values are affected by changes in the fundamentals of our portfolio companies and other investments,
the industries in which they operate, the overall economy and other market conditions.
Business Environment
Blackstone’s businesses are materially affected by conditions in the financial markets and economic conditions in the U.S., Europe, Asia and, to a lesser
extent, elsewhere in the world.
Global markets experienced volatility in 2024, due to significant movement in Treasury yields, a strong U.S. Dollar, global geopolitical instability and
macroeconomic uncertainty. The 10-year Treasury yield increased 86 basis points from the beginning of 2024 to an intraday high of 4.74% in April, declined
114 basis points to an intraday low of 3.6% in September, and subsequently rose again to end the year at 4.57%. Short-term rates decreased in 2024 with
three-month SOFR down 103 basis points to 4.31%. The U.S. Dollar appreciated against major currencies in the fourth quarter and full year, including the
Pound Sterling, Euro, Canadian Dollar, and Indian Rupee.
Most major equity markets appreciated in the fourth quarter of 2024. The S&P 500 delivered a total return of 2.0% in the fourth quarter and 25.0% for
the full year. All sectors gained during the year, led by the telecom sector, which rose 40.2%. In credit markets, the S&P leveraged loan index increased 9.0% in
2024 while the Credit Suisse high yield bond index rose 7.9%. High yield spreads tightened 57 basis points in 2024, while issuance increased 64% year-over-
year. Base rates were volatile during the year. Equity market volatility increased, with the CBOE Volatility Index up 39% year-over-year. Oil prices were largely
unchanged, with the price of West Texas Intermediate crude oil up 0.1% in 2024 to $71.72 per barrel. The Henry Hub Natural Gas spot price increased 45%
year-over-year to $3.63.
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The U.S. economy exhibited steady growth in 2024, underpinned by a healthy labor market and consumer spending. The advance estimate of U.S. real
GDP for 2024 indicated growth of 2.8% year-over-year, in line with 2.9% growth recorded in 2023. Inflation decreased moderately over the course of 2024,
with headline CPI decreasing from 3.1% year-over-year growth in January 2024 to 2.9% in December 2024, and Core CPI decreasing from 3.9% year-over-year
growth in January 2024 to 3.2% year-over-year in December 2024. The Federal Reserve decreased the federal funds target range three times in 2024 to
4.25%-4.50% by year end. The Federal Reserve held rates steady in January 2025, indicating its expectations for a slower pace of rate cuts moving forward.
The U.S. unemployment rate was 4.1% in December 2024, but further decreased below forecasts to 4.0% in January 2025, suggesting a tightening labor
market. Average hourly earnings increasing 4.1% year-over-year and 0.5% month-over-month in January 2025. Meanwhile, shelter cost inflation has
decreased since the end of 2023, declining to 4.6% in December 2024 as compared to 6.2% the prior year. In manufacturing, the Institute for Supply
Management Purchasing Managers’ Index increased to 49.2 in December 2024 compared to 46.9 in 2023.
Outside the U.S., several major economies demonstrated slower GDP growth and began loosening monetary policy after an extended period of
tightening due to decreasing inflation. Eurozone real GDP declined to 2.4% annual growth in December 2024 from 2.9% in December 2023. Inflation in the
Eurozone fell from 2.8% year-over-year growth in January 2024 to 2.4% at year end despite the European Central Bank lowering its deposit facility by 100 basis
points during the year and an additional 25 basis points in February 2025. In China, real GDP grew 5.0% year-over-year in 2024, down from 5.4% in 2023 and
below the average of the preceding ten years. In Japan, the advance estimate of real GDP indicated a contraction of 0.2% year-over-year in 2024, down from
1.5% growth in 2023.
Capital markets activity expanded moderately, with global initial public offering volumes up 4% and global announced merger and acquisition volumes up
12% compared to 2023; however, both metrics remain below prior peak levels.
During 2024, the U.S. made meaningful progress on inflation and maintained a healthy economy, which helped improve investor sentiment. Nonetheless,
continued geopolitical turbulence, the potential for slower-than-anticipated interest rate decreases, and U.S. trade, immigration and other policy and
regulatory changes are contributing to economic outlook uncertainty, including a potential economic slowdown.
Notable Transactions
On December 6, 2024, Blackstone, through its indirect subsidiary Blackstone Reg Finance Co. L.L.C., issued $750 million aggregate principal amount of
5.000% senior notes due December 6, 2034 pursuant to a Registration Statement on Form S-3 (the “Registered 2034 Notes”).
For additional information see Note 12. “Borrowings” in the “Notes to Consolidated Financial Statements” in “— Item 8. Financial Statements and
Supplementary Data” and “— Liquidity and Capital Resources —Sources and Uses of Liquidity.”
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Organizational Structure
The simplified diagram below depicts our current organizational structure. The diagram does not depict all of our subsidiaries, including intermediate
holding companies through which certain of the subsidiaries depicted are held.
Key Financial Measures and Indicators
We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our
investment activities. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of
America (“GAAP”). See “— Item 8. Financial Statements and Supplementary Data — Notes to Consolidated Financial Statements — Note 2. Summary of
Significant Accounting Policies” and “— Critical Accounting Policies.” Our key non-GAAP financial measures and operating indicators and metrics are discussed
below.
Distributable Earnings
Distributable Earnings is derived from Blackstone’s segment reported results. Distributable Earnings is used to assess performance and amounts available
for dividends to Blackstone stockholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships.
Distributable Earnings is the sum of Segment Distributable Earnings plus Net Interest and Dividend Income (Loss) less Taxes and Related Payables.
Distributable Earnings 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. See “— Non-GAAP Financial Measures” for our reconciliation of Distributable Earnings.
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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 Distributable Earnings reflects the benefit of deductions available to the company on certain expense items that are excluded
from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and
certain Transaction-Related and Non-Recurring Items 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 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 Distributable Earnings is meaningful as it increases comparability between periods and
more accurately reflects earnings that are available for distribution to stockholders.
Segment Distributable Earnings
Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across
Blackstone’s four segments. Blackstone believes it is useful to stockholders to review the measure that management uses in assessing segment performance.
Segment Distributable Earnings 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 and Non-Recurring Items.
Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and
non-recurring gains, losses, or other charges, if any. 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,
gains or losses associated with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not
reflective of Blackstone’s operational performance. Segment Distributable Earnings 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. See “— Non-GAAP Financial Measures” for
our reconciliation of Segment Distributable Earnings.
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).
Realized 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. In the year ended
December 31, 2024, Realized Performance Compensation increased by an aggregate of $83.1 million and Fee Related Compensation decreased by a
corresponding amount. In the year ended December 31, 2023, Realized Performance Compensation increased by an aggregate of $65.0 million and Fee
Related Compensation decreased by a corresponding amount. These changes to Realized Performance Compensation and Fee Related Compensation reduced
Net Realizations, increased Fee Related Earnings and had a neutral impact to Income Before Provision (Benefit) for Taxes and Distributable Earnings in the
years ended December 31, 2024 and December 31, 2023.
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Fee Related Earnings
Fee Related Earnings 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. Blackstone believes Fee Related Earnings is useful to stockholders as it provides insight into the
profitability of the portion of Blackstone’s business that is not dependent on realization activity. Fee Related Earnings 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. Fee Related Earnings is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income
(Loss) Before Provision (Benefit) for Taxes. See “— Non-GAAP Financial Measures” for our reconciliation of Fee Related Earnings.
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
transaction-related and non-recurring items that arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and
non-recurring gains, losses or other charges, if any, (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.
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization
Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization (“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. See “—
Non-GAAP Financial Measures” for our reconciliation of Adjusted EBITDA.
Net Accrued Performance Revenues
Net Accrued Performance Revenues is a non-GAAP financial measure Blackstone believes is useful to stockholders as an indicator of potential future
realized performance revenues based on the current investment portfolio of the funds and vehicles we manage. Net Accrued Performance Revenues
represents the accrued performance revenues receivable by Blackstone, net of the related accrued performance compensation payable by Blackstone,
excluding performance revenues that have been realized but not yet distributed as of the reporting date and clawback amounts, if any. Net Accrued
Performance Revenues is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Investments. See “—
Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues and Note 2 “Summary of Significant Accounting Policies — Equity
Method Investments” in the “Notes to Consolidated Financial Statements” in “— Item 8. Financial Statements and Supplementary Data” for additional
information on the calculation of Investments — Accrued Performance Allocations.
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Operating Metrics
The alternative asset management business is primarily based on managing third-party capital and does not require substantial capital investment to
support rapid growth. Since our inception, we have developed and used various key operating metrics to assess and monitor the operating performance of
our various alternative asset management businesses in order to monitor the effectiveness of our value creating strategies.
Total and Fee-Earning Assets Under Management
“Total Assets Under Management” refers to the invested and available capital in Blackstone-managed or advised vehicles (including, without limitation,
investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy
of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-
managed or advised vehicles, as applicable:
(a)
a vehicle’s invested capital at fair value which, as applicable, is measured as (1) total investments measured at fair value, or gross asset values, each
of which may include the fair value of investments purchased with leverage under certain credit facilities, (2) net asset value, or (3) amount of debt
and equity outstanding or aggregate par amount of assets, including principal cash for CLOs, and
(b)
a vehicle’s available capital, if any, which represents (1) uncalled commitments made by investors and (2) available borrowing capacity under
certain credit facilities.
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments,
including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment
vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets
Under Management are reported in the segment where the assets are managed.
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and
our personnel. Our calculation of Total Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may
not be comparable to similar measures presented by other asset managers. Our definition of Total Assets Under Management differs from the manner in
which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the
vehicles we manage or advise.
“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees
and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are
earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-
managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-
investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of
investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
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Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning
Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees,
Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our
calculation of Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be
comparable to similar measures presented by other asset managers. Our definition of Fee-Earning Assets Under Management may differ from the definition
set forth in the agreements governing the vehicles that we manage or advise.
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended
vehicles generally afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically
with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our perpetual capital vehicles where redemption rights
exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is
sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles.
Investment advisory agreements related to certain SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance
platform, may generally be terminated by an investor on 15 to 95 days’ notice. SMAs in our insurance platform can generally only be terminated for long-term
underperformance, cause and certain other limited circumstances, in each case subject to Blackstone’s right to cure.
Perpetual Capital
“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 or
where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
In our Perpetual Capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’
board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as
interval funds or in certain insurance-dedicated vehicles. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual
Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring
revenues in a different manner than traditional fund structures.
Dry Powder
Dry Powder represents the amount of capital available for investment or reinvestment, including general partner and employee capital, and is an
indicator of the capital we have available for future investments. We believe this measure is useful to stockholders as it provides insight into the extent to
which capital is available for Blackstone to deploy capital into investment opportunities as they arise.
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Invested Performance Eligible Assets Under Management
Invested Performance Eligible Assets Under Management represents invested capital at fair value on which performance revenues could be earned if
certain hurdles are met. We believe Invested Performance Eligible Assets Under Management is useful to stockholders as it provides insight into the capital
deployed that has the potential to generate performance revenues.
Consolidated Results of Operations
Following is a discussion of our consolidated results of operations. For a more detailed discussion of the factors that affected the results of our four
business segments (which are presented on a basis that deconsolidates the investment funds, eliminates non-controlling ownership interests in Blackstone’s
consolidated operating partnerships and removes the amortization of intangibles assets and Transaction-Related and Non-Recurring Items) in these periods,
see “— Segment Analysis” below.
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The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the years ended
December 31, 2024, 2023 and 2022:
 
Year Ended December 31,
 
2024 vs. 2023
  
2023 vs. 2022
 
2024
 
2023
 
2022
 
$
 
%
  
$
 
%
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
(Dollars in Thousands)
Revenues
 
 
 
 
 
  
 
Management and Advisory Fees, Net
  $
7,188,936    $ 6,671,260    $ 6,303,315    $
517,676     
8%    $
367,945     
6% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Incentive Fees
   
964,178     
695,171     
525,127     
269,007      39%     
170,044      32% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Investment Income (Loss)
 
 
 
 
 
  
 
Performance Allocations
 
 
 
 
 
  
 
Realized
   
3,457,746     
2,223,841     
5,381,640      1,233,905      55%      (3,157,799)     -59% 
Unrealized
   
371,407      (1,691,668)     (3,435,056)     2,063,075      n/m     
1,743,388      -51% 
Principal Investments
 
 
 
 
 
  
 
Realized
   
332,258     
303,823     
850,327     
28,435     
9%     
(546,504)     -64% 
Unrealized
   
380,591     
(603,154)     (1,563,849)    
983,745      n/m     
960,695      -61% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Investment Income
   
4,542,002     
232,842     
1,233,062      4,309,160      n/m      (1,000,220)     -81% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Interest and Dividend Revenue
   
411,159     
516,497     
271,612     
(105,338)     -20%     
244,885      90% 
Other
   
123,693     
(92,929)    
184,557     
216,622      n/m     
(277,486)     n/m 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Revenues
    13,229,968     
8,022,841     
8,517,673      5,207,127      65%     
(494,832)    
-6% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Expenses
 
 
 
 
 
  
 
Compensation and Benefits
 
 
 
 
 
  
 
Compensation
   
3,048,229     
2,785,447     
2,569,780     
262,782     
9%     
215,667     
8% 
Incentive Fee Compensation
   
373,586     
281,067     
207,998     
92,519      33%     
73,069      35% 
Performance Allocations Compensation
 
 
 
 
 
  
 
Realized
   
1,432,217     
900,859     
2,225,264     
531,358      59%      (1,324,405)     -60% 
Unrealized
   
140,021     
(654,403)     (1,470,588)    
794,424      n/m     
816,185      -56% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Compensation and Benefits
   
4,994,053     
3,312,970     
3,532,454      1,681,083      51%     
(219,484)    
-6% 
General, Administrative and Other
   
1,361,909     
1,117,305     
1,092,671     
244,604      22%     
24,634     
2% 
Interest Expense
   
443,688     
431,868     
317,225     
11,820     
3%     
114,643      36% 
Fund Expenses
   
19,676     
118,987     
30,675     
(99,311)     -83%     
88,312      288% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Expenses
   
6,819,326     
4,981,130     
4,973,025      1,838,196      37%     
8,105     
— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Other Income (Loss)
 
 
 
 
 
  
 
Change in Tax Receivable Agreement Liability
   
(41,246)    
(27,196)    
22,283     
(14,050)     52%     
(49,479)     n/m 
Net Gains (Losses) from Fund Investment Activities
   
90,084     
(56,801)    
(105,142)    
146,885      n/m     
48,341      -46% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Other Income (Loss)
   
48,838     
(83,997)    
(82,859)    
132,835      n/m     
(1,138)    
1% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Income Before Provision for Taxes
   
6,459,480     
2,957,714     
3,461,789      3,501,766      118%     
(504,075)     -15% 
Provision for Taxes
   
1,021,671     
513,461     
472,880     
508,210      99%     
40,581     
9% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Net Income
   
5,437,809     
2,444,253     
2,988,909      2,993,556      122%     
(544,656)     -18% 
Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated
Entities
   
(61,289)    
(245,518)    
(142,890)    
184,229      -75%     
(102,628)     72% 
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
   
473,826     
224,155     
107,766     
249,671      111%     
116,389      108% 
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
   
2,248,764     
1,074,736     
1,276,402      1,174,028      109%     
(201,666)     -16% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Net Income Attributable to Blackstone Inc.
  $
2,776,508    $ 1,390,880    $ 1,747,631    $ 1,385,628      100%    $
(356,751)     -20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
n/m Not meaningful.
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Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
Revenues
Revenues were $13.2 billion for the year ended December 31, 2024, an increase of $5.2 billion, compared to $8.0 billion for the year ended
December 31, 2023. The increase in Revenues was primarily attributable to an increase of $4.3 billion in Investment Income, which was composed of
increases of $3.0 billion in Unrealized Investment Income and $1.3 billion in Realized Investment Income.
The $3.0 billion increase in Unrealized Investment Income was primarily attributable to net unrealized appreciation of investments in the year ended
December 31, 2024, compared to the year ended December 31, 2023. Principal drivers were:
•
 
An increase of $1.2 billion in our Real Estate segment, primarily attributable to lower unrealized depreciation of Blackstone’s investment in
certain Core+ real estate and BREP funds in the year ended December 31, 2024, compared to the year ended December 31, 2023.
•
 
An increase of $975.8 million in our Private Equity segment, primarily attributable to higher unrealized appreciation of Blackstone’s investment in
certain Corporate Private Equity funds in the year ended December 31, 2024 compared to the year ended December 31, 2023. Corporate Private
Equity funds appreciated 16.6% in the year ended December 31, 2024, compared to 12.1% in the year ended December 31, 2023.
•
 
An increase of $688.3 million in our Credit & Insurance segment, primarily attributable to higher unrealized gain on the ownership of Corebridge
common stock based on the publicly traded price as of December 31, 2024, compared to December 31, 2023, and higher unrealized appreciation
of Blackstone’s investment in certain mezzanine funds in the year ended December 31, 2024, compared to the year ended December 31, 2023.
The $1.3 billion increase in Realized Investment Income was primarily attributable to higher realized gains in our Private Equity segment.
Expenses
Expenses were $6.8 billion for the year ended December 31, 2024, an increase of $1.8 billion, compared to $5.0 billion for the year ended
December 31, 2023. The increase was primarily attributable to an increase of $1.7 billion in Total Compensation and Benefits, of which $1.3 billion was an
increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily due to the increase in Investment
Income, on which a portion of compensation is based.
Other Income (Loss)
Other Income (Loss) was $48.8 million for the year ended December 31, 2024, an increase of $132.8 million, compared to $(84.0) million for the year
ended December 31, 2023. The increase in Other Income (Loss) was principally due to an increase of $146.9 million in Net Gains (Losses) from Fund
Investment Activities.
The increase in Net Gains (Losses) from Fund Investment Activities was driven by an increase of $169.7 million in our Real Estate segment, partially offset
by a decrease of $41.0 million in our Private Equity segment. The increase in our Real Estate segment was primarily driven by lower unrealized depreciation of
investments and lower realized losses on investments in our consolidated funds. The decrease in our Private Equity segment was primarily due to the
deconsolidation of a fund, partially offset by higher unrealized appreciation of investments in our consolidated funds.
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Provision for Taxes
Blackstone’s Provision for Taxes for the year ended December 31, 2024 was $1.0 billion, an increase of $508.2 million, compared to $513.5 million for the
year ended December 31, 2023. This resulted in an effective tax rate of 15.8% and 17.4% based on our Income Before Provision for Taxes of $6.5 billion and
$3.0 billion for the years ended December 31, 2024 and 2023, respectively.
The decrease in Blackstone’s effective tax rate for the year ended December 31, 2024, compared to the year ended December 31, 2023, relates primarily
to the impact of Non-Controlling Interests in Consolidated Entities and a decrease in Blackstone’s state tax provisions for the jurisdictions in which it operates.
Blackstone had a corporate alternative minimum tax (“CAMT”) liability for the year ended December 31, 2024 as calculated pursuant to the Inflation
Reduction Act. Blackstone will continue to assess the overall impact to its Provision for Income Tax upon the issuance of applicable additional guidance by the
U.S. Treasury Department related to interpretations of CAMT. For the year ended December 31, 2024 there is no meaningful CAMT impact reflected in the
Provision for Income Taxes given current year tax payments made under CAMT are permitted to be carried forward and used as credits in future years
resulting in a deferred tax benefit.
Additional information regarding our income taxes can be found in “— Item 8. Financial Statements and Supplementary Data — Notes to Consolidated
Financial Statements — Note 14. Income Taxes” of this filing.
Non-Controlling Interests in Consolidated Entities
The Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities and Net Income Attributable to Non-Controlling Interests in
Consolidated Entities is attributable to the consolidated Blackstone Funds. The amounts of these items vary directly with the performance of the consolidated
Blackstone Funds and largely eliminate the amount of Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities from the Net Income
Attributable to Blackstone Inc.
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings is derived from the Income Before Provision for Taxes at the Blackstone
Holdings level, excluding the Net Gains (Losses) from Fund Investment Activities and the percentage allocation of the income between Blackstone personnel
and others who are limited partners of Blackstone Holdings and Blackstone after considering any contractual arrangements that govern the allocation of
income such as fees allocable to Blackstone.
For the years ended December 31, 2024 and 2023, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of
Blackstone Holdings was 38.5% and 39.2%, respectively. The decrease of 0.7% was primarily due to the conversion of Blackstone Holdings Partnership Units to
shares of common stock and the vesting of shares of common stock.
The Other Income (Loss) — Change in Tax Receivable Agreement Liability was entirely allocated to Blackstone Inc.
Operating Metrics
Total and Fee-Earning Assets Under Management
The following graphs and tables summarize the Total Assets Under Management by Segment and Fee-Earning Assets Under Management by Segment,
followed by a rollforward of activity for the years ended December 31, 2024, 2023 and 2022. For a description of how Total Assets Under Management and
Fee-Earning Assets Under Management are determined, please see “— Key Financial Measures and Indicators — Operating Metrics — Total and Fee-Earning
Assets Under Management.”
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Note: Totals may not add due to rounding.
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Year Ended December 31,
 
2024
 
2023
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
Total Assets Under Management
 
 
 
 
 
 
 
 
 
 
Balance, Beginning of Period
 $336,940,096   $314,391,397   $312,674,037   $76,186,917   $1,040,192,447   $326,146,904   $299,850,659   $273,746,559   $ 74,928,955   $ 974,673,077 
Inflows (a)
   27,941,070     41,285,126     91,200,162     11,032,279    
171,458,637     53,922,506     23,986,567     62,132,619    
8,476,721    
148,518,413 
Outflows (b)
   (24,543,453)    
(7,225,733)    
(6,347,592)     (9,687,779)    
(47,804,557)     (15,642,086)    
(3,085,261)     (16,132,113)     (10,858,518)    
(45,717,978) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Inflows (Outflows)
  
3,397,617     34,059,393     84,852,570     1,344,500    
123,654,080     38,280,420     20,901,306     46,000,506     (2,381,797)    
102,800,435 
Realizations (c)
   (22,164,223)     (28,930,508)     (33,319,081)     (2,728,668)    
(87,142,480)     (18,744,078)     (24,426,644)     (20,080,725)     (2,439,392)    
(65,690,839) 
Market Activity (d)(g)
  
(2,820,358)     32,648,353     11,300,292     9,347,662    
50,475,949    
(8,743,150)     18,066,076     13,007,697    
6,079,151    
28,409,774 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, End of Period (e)
 $315,353,132   $352,168,635   $375,507,818   $84,150,411   $1,127,179,996   $336,940,096   $314,391,397   $312,674,037   $ 76,186,917   $1,040,192,447 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease)
 $ (21,586,964)   $ 37,777,238   $ 62,833,781   $ 7,963,494   $
86,987,549   $ 10,793,192   $ 14,540,738   $ 38,927,478   $
1,257,962   $
65,519,370 
Increase (Decrease)
  
-6%   
12%   
20%   
10%   
8%   
3%   
5%   
14%   
2%   
7% 
 
Year Ended December 31,
  
  
  
  
  
 
2022
  
  
  
  
  
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
  
  
  
  
  
Total Assets Under Management 
 
 
 
 
 
 
 
 
 
Balance, Beginning of
Period
 $279,474,105   $272,810,231   $251,150,891   $ 77,466,493   $880,901,720   
 
 
 
 
Inflows (a)
   90,199,877     52,712,942     71,695,591     11,431,029     226,039,439   
 
 
 
 
Outflows (b)
   (13,577,103)    
(3,989,727)     (19,535,887)     (14,958,862)     (52,061,579)   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Inflows (Outflows)
   76,622,774     48,723,215     52,159,704     (3,527,833)     173,977,860   
 
 
 
 
Realizations (c)
   (37,061,836)     (24,926,992)     (18,132,037)     (1,646,775)     (81,767,640)   
 
 
 
 
Market Activity (d)(g)
  
7,111,861    
3,244,205     (11,431,999)    
2,637,070    
1,561,137                                                                                            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, End of Period (e)
 $326,146,904   $299,850,659   $273,746,559   $ 74,928,955   $974,673,077   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease)
 $ 46,672,799   $ 27,040,428   $ 22,595,668   $ (2,537,538)   $ 93,771,357   
 
 
 
 
Increase (Decrease)
  
17%   
10%   
9%   
-3%   
11%  
 
 
 
 
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Year Ended December 31,
 
2024
 
2023
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
Fee-Earning Assets Under Management
 
 
 
 
 
 
 
 
 
 
Balance, Beginning of Period
 $298,889,475   $176,997,265   $218,188,936   $68,532,226   $762,607,902   $281,967,153   $175,990,967   $192,535,693   $ 67,893,075   $718,386,888 
Inflows (a)
   28,674,456     46,270,186     71,529,783     8,957,656     155,432,081     60,404,380    
8,501,835     42,750,955    
7,694,930     119,352,100 
Outflows (b)
   (23,207,214)    
(7,997,715)    
(6,391,518)     (8,768,766)     (46,365,213)     (18,176,929)    
(737,831)     (12,485,948)     (10,461,779)     (41,862,487) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Inflows (Outflows)
  
5,467,242     38,272,471     65,138,265    
188,890     109,066,868     42,227,451    
7,764,004     30,265,007     (2,766,849)     77,489,613 
Realizations (c)
   (23,409,231)    
(9,408,638)     (23,840,463)     (2,505,119)     (59,163,451)     (20,266,342)    
(9,767,895)     (13,242,327)     (2,324,408)     (45,600,972) 
Market Activity (d)(h)
  
(2,032,548)    
6,321,798    
5,130,822     8,777,212     18,197,284    
(5,038,787)    
3,010,189    
8,630,563    
5,730,408     12,332,373 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, End of Period (e)
 $278,914,938   $212,182,896   $264,617,560   $74,993,209   $830,708,603   $298,889,475   $176,997,265   $218,188,936   $ 68,532,226   $762,607,902 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease)
 $ (19,974,537)   $ 35,185,631   $ 46,428,624   $ 6,460,983   $ 68,100,701   $ 16,922,322   $
1,006,298   $ 25,653,243   $
639,151   $ 44,221,014 
Increase (Decrease)
  
-7%   
20%   
21%   
9%   
9%   
6%   
1%   
13%   
1%   
6% 
Annualized Base Management Fee Rate
(f)
  
0.93%   
1.04%   
0.65%   
0.66%   
0.85%   
0.97%   
1.09%   
0.64%   
0.69%   
0.88% 
 
Year Ended December 31,
  
  
  
  
  
 
2022
  
  
  
  
  
 
Real Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
  
  
  
  
  
Fee-Earning Assets Under
Management
 
 
 
 
 
 
 
 
 
 
Balance, Beginning of
Period
 $221,476,699   $166,331,770   $191,174,657   $ 70,985,932   $649,969,058   
 
 
 
 
Inflows (a)
   98,569,361     20,577,513     42,659,407     10,463,507     172,269,788   
 
 
 
 
Outflows (b)
   (20,168,572)    
(4,311,749)     (19,184,148)     (14,428,904)     (58,093,373)                                                                                            
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Inflows (Outflows)
   78,400,789     16,265,764     23,475,259     (3,965,397)     114,176,415   
 
 
 
 
Realizations (c)
   (22,661,825)    
(9,704,296)    
(8,466,629)     (1,573,442)     (42,406,192)   
 
 
 
 
Market Activity (d)(h)
  
4,751,490    
3,097,729     (13,647,594)    
2,445,982    
(3,352,393)   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, End of Period (e)
 $281,967,153   $175,990,967   $192,535,693   $ 67,893,075   $718,386,888   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease)
 $ 60,490,454   $
9,659,197   $
1,361,036   $ (3,092,857)   $ 68,417,830   
 
 
 
 
Increase (Decrease)
  
27%   
6%   
1%   
-4%   
11%  
 
 
 
 
Annualized Base
Management Fee Rate
(f)
  
0.97%   
1.09%   
0.62%   
0.74%   
0.88%  
 
 
 
 
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(a)
Inflows include contributions, capital raised, other increases in available capital (recallable capital and increased side-by-side commitments), purchases,
inter-segment allocations and acquisitions.
(b) Outflows represent redemptions, client withdrawals and decreases in available capital (expired capital, expense drawdowns and decreased side-by-side
commitments).
(c)
Realizations represent realization proceeds from the disposition or other monetization of assets, current income or capital returned to investors from
CLOs.
(d) Market activity includes realized and unrealized gains (losses) on portfolio investments and the impact of foreign exchange rate fluctuations.
(e)
Total and Fee-Earning Assets Under Management are reported in the segment where the assets are managed.
(f)
Annualized Base Management Fee Rate represents annualized year to date Base Management Fee divided by the average of the beginning of year and
each quarter end’s Fee-Earning Assets Under Management in the reporting period.
(g)
For the year ended December 31, 2024, the impact to Total Assets Under Management from foreign exchange rate fluctuations was $(4.7) billion, $(1.3)
billion, $(1.2) billion, $(652.0) million, and $(7.8) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments,
respectively. For the year ended December 31, 2023, the impact was $2.2 billion, $1.1 billion, $1.1 billion, $232.1 million and $4.6 billion for the Real
Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the year ended December 31, 2022, the impact was
$(6.6) billion, $(1.5) billion, $(2.1) billion and $(10.8) billion for the Real Estate, Private Equity, Credit & Insurance and Total segments, respectively.
(h) For the year ended December 31, 2024, the impact to Fee-Earning Assets Under Management from foreign exchange rate fluctuations was $(3.0) billion,
$(278.0) million, $(1.1) billion, $(651.2) million, and $(5.1) billion for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total
segments, respectively. For the year ended December 31, 2023, the impact was $1.6 billion, $110.2 million, $1.0 billion, $223.5 million and $3.0 billion
for the Real Estate, Private Equity, Credit & Insurance, Multi-Asset Investing and Total segments, respectively. For the year ended December 31, 2022, the
impact was $(3.5) billion, $(1.7) billion and $(5.9) billion for the Real Estate, Credit & Insurance and Total segments, respectively.
Effective during the third quarter of 2024, the residential debt business was transferred from Real Estate to Credit & Insurance to align with a change in
Blackstone’s management of those businesses. This organizational change resulted in a decrease (reflected as an outflow) for the year ended December 31,
2024 to Real Estate Total and Fee-Earning Assets Under Management and an increase (reflected as a contra-outflow) to Credit & Insurance Total and
Fee-Earning Assets Under Management (the “Residential Debt Transfer”). These changes do not impact Blackstone’s Total or Fee-Earning Assets Under
Management or outflows in total.
Total Assets Under Management and Fee-Earning Assets Under Management may have differences in the measurement and timing of certain activities
that affect each of inflows, outflows, realizations and market activity. These differences include, but are not limited to:
•
 
For commitment-based drawdown funds, Total Assets Under Management inflows are generally reported at each fund closing whereas
Fee-Earning Assets Under Management inflows are generally reported when a fund’s investment period commences. Fund closings and the
investment period commencement generally occur in different periods and as such, Fee-Earning Assets Under Management inflows in such funds
may exceed Total Assets Under Management inflows in the period when the investment period commences. This is most prevalent in our Real
Estate and Private Equity segments.
•
 
For commitment-based drawdown funds, Total Assets Under Management realizations generally represents the total proceeds whereas
Fee-Earning Assets Under Management generally represents only the invested capital. As such, Total Assets Under Management realizations
typically exceeds Fee-Earning Assets Under Management realizations. This is most prevalent in our Real Estate and Private Equity segments.
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•
 
For commitment-based drawdown funds, Total Assets Under Management is reported based on invested capital at fair value and available capital
whereas Fee-Earning Assets Under Management is reported based on committed or remaining invested capital. As such, Total Assets Under
Management market activity generally exceeds Fee-Earning Assets Under Management market activity. This is most prevalent in our Real Estate
and Private Equity segments.
•
 
For certain credit funds, Total Assets Under Management are based on gross asset value while Fee-Earning Assets Under Management are based
on net asset value. As such, Total Assets Under Management inflows, outflows, realizations and market activity for the period generally exceed
the Fee-Earning Assets Under Management inflows, outflows, realizations and market activity for the period.
Total Assets Under Management
Total Assets Under Management were $1,127.2 billion at December 31, 2024, an increase of $87.0 billion compared to $1,040.2 billion at
December 31, 2023. The net increase was due to:
•
 
In our Real Estate segment, a decrease of $21.6 billion from $336.9 billion at December 31, 2023 to $315.4 billion at December 31, 2024. The net
decrease was due to outflows of $24.5 billion, realizations of $22.2 billion and market depreciation of $2.8 billion, offset by inflows of
$27.9 billion.
o
Outflows were driven by $12.5 billion due to the Residential Debt Transfer and $9.4 billion from BREIT.
o
Realizations were driven by $8.2 billion from BREDS, $6.8 billion from BREIT and $3.8 billion from BREP and co-investment.
o
Market depreciation was primarily driven by $4.1 billion from BREP and co-investment (which included $2.5 billion of foreign exchange
depreciation) and $3.4 billion from BPP and co-investment (which included $2.0 billion of foreign exchange depreciation), partially offset by
appreciation of $3.8 billion from BREDS (which included $26.9 million of foreign exchange depreciation) and $1.0 billion from BREIT (which
included $134.9 million of foreign exchange depreciation).
o
Inflows were driven by $11.4 billion from BREDS, $8.4 billion from BREIT and $5.0 billion from BREP and co-investment.
•
 
In our Private Equity segment, an increase of $37.8 billion from $314.4 billion at December 31, 2023 to $352.2 billion at December 31, 2024. The
net increase was due to inflows of $41.3 billion and market appreciation of $32.6 billion, offset by realizations of $28.9 billion and outflows of
$7.2 billion.
o
Inflows were driven by $14.4 billion from Corporate Private Equity, $10.2 billion from Infrastructure, $6.7 billion from Secondaries and
$4.8 billion from Tactical Opportunities.
o
Market appreciation was driven by $14.7 billion from Corporate Private Equity (which included $700.5 million of foreign exchange
depreciation), $7.4 billion from BIP (which included $425.1 million of foreign exchange depreciation) and $6.3 billion from Secondaries.
o
Realizations were driven by $15.1 billion from Corporate Private Equity and $7.9 billion from Secondaries.
o
Outflows were driven by $2.2 billion from Secondaries, $1.8 billion from Tactical Opportunities and $1.5 billion from BIP.
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•
 
In our Credit & Insurance segment, an increase of $62.8 billion from $312.7 billion at December 31, 2023 to $375.5 billion at December 31, 2024.
The net increase was due to inflows of $91.2 billion and market appreciation of $11.3 billion, offset by realizations of $33.3 billion and outflows of
$6.3 billion.
o
Inflows were driven by $39.0 billion from direct lending, $21.9 billion from liquid corporate credit, $22.2 billion from infrastructure and
asset based credit strategies and $4.3 billion from mezzanine funds.
o
Market appreciation was driven by $5.1 billion from direct lending (which included $345.4 million of foreign exchange depreciation),
$2.0 billion from the insurance platform and $1.6 billion from mezzanine funds.
o
Realizations were driven by $14.0 billion from direct lending, $9.9 billion from liquid corporate credit and $4.5 billion from infrastructure and
asset based credit strategies.
o
Outflows were driven by $8.0 billion from liquid corporate credit, $7.6 billion from direct lending and $1.7 billion from the insurance
platform, partially offset by $(12.5) billion due to the Residential Debt Transfer.
•
 
In our Multi-Asset Investing segment, an increase of $8.0 billion from $76.2 billion at December 31, 2023 to $84.2 billion at December 31, 2024.
The net increase was due to inflows of $11.0 billion and market appreciation of $9.3 billion, offset by outflows of $9.7 billion and realizations of
$2.7 billion.
o
Inflows were driven by $7.9 billion from Absolute Return, $2.7 billion from Multi-Strategy and $441.7 million from Harvest.
o
Market appreciation was driven by $5.9 billion from Absolute Return, $2.5 billion from Harvest and $952.2 million from Multi-Strategy
(which included $652.0 million of foreign exchange depreciation).
o
Outflows were driven by $8.0 billion from Absolute Return, $891.1 million from Multi-Strategy and $770.0 million from Harvest.
o
Realizations were driven by $1.2 billion from Absolute Return, $1.2 billion from Multi-Strategy and $375.0 million from Harvest.
Fee-Earning Assets Under Management
Fee-Earning Assets Under Management were $830.7 billion at December 31, 2024, an increase of $68.1 billion compared to $762.6 billion at
December 31, 2023. The net increase was due to:
•
 
In our Real Estate segment, a decrease of $20.0 billion from $298.9 billion at December 31, 2023 to $278.9 billion at December 31, 2024. The net
decrease was due to realizations of $23.4 billion, outflows of $23.2 billion and market depreciation of $2.0 billion, offset by inflows of
$28.7 billion.
o
Realizations were driven by $11.0 billion from BREDS and $6.8 billion from BREIT.
o
Outflows were driven by $12.1 billion due to the Residential Debt Transfer and $9.4 billion from BREIT.
o
Market depreciation was driven by $3.2 billion from BPP and co-investment (which included $2.0 billion of foreign exchange depreciation)
and $829.5 million from BREP and co-investment (which included $854.7 million of foreign exchange depreciation), partially offset by
appreciation of $1.1 billion from BREDS (which included $36.1 million of foreign exchange depreciation) and $1.0 billion from BREIT (which
included $134.9 million of foreign exchange depreciation).
o
Inflows were driven by $10.1 billion from BREDS, $8.4 billion from BREIT and $6.0 billion from BREP and co-investment.
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•
 
In our Private Equity segment, an increase of $35.2 billion from $177.0 billion at December 31, 2023 to $212.2 billion at December 31, 2024. The
net increase was due to inflows of $46.3 billion and market appreciation of $6.3 billion, offset by realizations of $9.4 billion and outflows of
$8.0 billion.
o
Inflows were driven by $28.9 billion from Corporate Private Equity, $6.1 billion from BIP, $4.0 billion from Secondaries and $3.3 billion from
Tactical Opportunities.
o
Market appreciation was driven by $6.0 billion from BIP (which included $284.3 million of foreign exchange depreciation).
o
Realizations were driven by $4.0 billion from Corporate Private Equity, $2.5 billion from Secondaries and $1.8 billion from Tactical
Opportunities.
o
Outflows were driven by $4.7 billion from Corporate Private Equity and $1.5 billion from BIP.
•
 
In our Credit & Insurance segment, an increase of $46.4 billion from $218.2 billion at December 31, 2023 to $264.6 billion at December 31, 2024.
The net increase was due to inflows of $71.5 billion and market appreciation of $5.1 billion, offset by realizations of $23.8 billion and outflows of
$6.4 billion.
o
Inflows were driven by $26.8 billion from direct lending, $20.8 billion from liquid corporate credit and $19.6 billion from infrastructure and
asset based credit strategies.
o
Market appreciation was driven by $4.0 billion from direct lending (which included $266.6 million of foreign exchange depreciation.
o
Realizations were driven by $9.8 billion from liquid corporate credit, $7.6 billion from direct lending and $4.1 billion from infrastructure and
asset based credit strategies.
o
Outflows were driven by $7.7 billion from liquid corporate credit, $6.1 billion from direct lending (including $4.0 billion as a result of an
update to the methodology to exclude leverage that contributes to performance revenues but does not earn management fees), $1.8 billion
from mezzanine funds and $1.7 billion from the insurance platform, partially offset by $(12.1) billion due to the Residential Debt Transfer.
•
 
In our Multi-Asset Investing segment, an increase of $6.5 billion from $68.5 billion at December 31, 2023 to $75.0 billion at December 31, 2024.
The net increase was due to inflows of $9.0 billion and market appreciation of $8.8 billion, offset by outflows of $8.8 billion and realizations of
$2.5 billion.
o
Inflows were driven by $6.9 billion from Absolute Return, $1.7 billion from Multi-Strategy and $373.4 million from Harvest.
o
Market appreciation was driven by $5.6 billion from Absolute Return, $2.3 billion from Harvest and $908.5 million from Multi-Strategy
(which included $651.2 million of foreign exchange depreciation).
o
Outflows were driven by $7.7 billion from Absolute Return, $686.7 million from Harvest and $428.9 million from Multi-Strategy.
o
Realizations were driven by $1.1 billion from Absolute Return, $1.1 billion from Multi-Strategy and $292.6 million from Harvest.
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Dry Powder
The following presents our Dry Powder as of December 31 of each year:
Note:  Totals may not add due to rounding.
(a)
Represents illiquid drawdown funds, a component of Perpetual Capital and fee-paying co-investments; includes fee-paying third-party capital as well as
general partner and employee capital that does not earn fees. Amounts are reduced by outstanding capital commitments, for which capital has not yet
been invested.
Net Accrued Performance Revenues
The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of December 31, 2024
and 2023. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 18. “Commitments and
Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Consolidated Financial Statements” in “—Item 8. Financial Statements
and Supplementary Data” of this filing. See “— Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.
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December 31,
  
2024
  
2023
  
 
  
 
  
(Dollars in Millions)
Real Estate
  
  
BREP Global
   $ 873    $1,323 
BREP Europe
    
126     
109 
BREP Asia
    
98     
92 
BPP
    
42     
129 
BREDS
    
27     
32 
BTAS
    
19     
2 
  
 
 
 
  
 
 
 
Total Real Estate (a)
     1,186      1,687 
  
 
 
 
  
 
 
 
Private Equity
  
  
BCP Global
     1,733      1,562 
BCP Asia
    
334     
182 
Energy/Energy Transition
    
568     
306 
Core Private Equity
    
247     
234 
Tactical Opportunities
    
201     
229 
Secondaries
     1,072     
731 
Infrastructure
    
84     
333 
Life Sciences
    
197     
82 
BTAS/BXPE
    
229     
185 
  
 
 
 
  
 
 
 
Total Private Equity (a)
     4,665      3,844 
  
 
 
 
  
 
 
 
Credit & Insurance
    
401     
286 
  
 
 
 
  
 
 
 
Multi-Asset Investing
    
30     
17 
  
 
 
 
  
 
 
 
Total Blackstone Net Accrued Performance Revenues
   $6,281    $5,835 
  
 
 
 
  
 
 
 
Note:  Totals may not add due to rounding.
(a)
Real Estate and Private Equity include co-investments, as applicable
For the year ended December 31, 2024, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $3.1 billion,
partially offset by net realized distributions of $2.7 billion.
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Invested Performance Eligible Assets Under Management
The following presents our Invested Performance Eligible Assets Under Management as of December 31 of each year:
Note:  Totals may not add due to rounding.
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Perpetual Capital
The following presents our Perpetual Capital Total Assets Under Management as of December 31 of each year:
Note:  Totals may not add due to rounding.
(a)
Perpetual Capital Total Assets Under Management for the Multi-Asset Investing segment was zero for the years ended December 31, 2022 and 2023, and
$247.1 million for year ended December 31, 2024.
Perpetual Capital Total Assets Under Management were $444.8 billion as of December 31, 2024, an increase of $48.5 billion, compared to $396.3 billion
as of December 31, 2023. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $42.8 billion and
$22.9 billion, respectively, partially offset by a decrease in our Real Estate segment of $17.5 billion. Principal drivers of this net increase were:
•
 
In our Credit & Insurance segment, growth of $26.3 billion in insurance capital managed in the segment, a portion of which was related to the
perpetual capital portion of the Residential Debt Transfer, as well as growth of $11.3 billion in BCRED.
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•
 
In our Private Equity segment, growth in BIP and BXPE capital managed in the segment resulted in increases of $13.8 billion and $5.5 billion,
respectively.
•
 
In our Real Estate segment, the decrease of $17.5 billion was primarily due to the decreases of $6.8 billion in BREIT and $6.0 billion in BREDS,
primarily reflecting the perpetual capital portion of the Residential Debt Transfer.
Investment Records
Fund returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods
presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not
necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no
assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following tables present the investment record of our significant and formerly significant carry/drawdown funds and select perpetual capital
strategies from inception through December 31, 2024:
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Carry/Drawdown Funds
Fund (Investment Period
   Committed   
Available   
Unrealized Investments
 
Realized Investments   
Total Investments
  
Net IRRs (d)
Beginning Date / Ending Date) (a)
  
Capital
   Capital (b)   
Value
   MOIC (c)   % Public 
Value
   MOIC (c)  
Value
   MOIC (c)   Realized  Total
  
(Dollars/Euros in Thousands, Except Where Noted)
Real Estate
 
Pre-BREP
   $
140,714    $
—    $
—     
n/a       — 
  $
345,190     
2.5x     $
345,190     
2.5x      
33%      33% 
BREP I (Sep 1994 / Oct 1996)
    
380,708     
—     
—     
n/a       — 
   
1,327,708     
2.8x      
1,327,708     
2.8x      
40%      40% 
BREP II (Oct 1996 / Mar 1999)
    
1,198,339     
—     
—     
n/a       — 
   
2,531,614     
2.1x      
2,531,614     
2.1x      
19%      19% 
BREP III (Apr 1999 / Apr 2003)
    
1,522,708     
—     
—     
n/a       — 
   
3,330,406     
2.4x      
3,330,406     
2.4x      
21%      21% 
BREP IV (Apr 2003 / Dec 2005)
    
2,198,694     
—     
—     
n/a       — 
   
4,684,608     
1.7x      
4,684,608     
1.7x      
12%      12% 
BREP V (Dec 2005 / Feb 2007)
    
5,539,418     
—     
6,711     
n/a       — 
    13,463,448     
2.3x       13,470,159     
2.3x      
11%      11% 
BREP VI (Feb 2007 / Aug 2011)
     11,060,122     
—     
5,033     
n/a       — 
    27,761,681     
2.5x       27,766,714     
2.5x      
13%      13% 
BREP VII (Aug 2011 / Apr 2015)
     13,505,657      1,016,699      1,515,050     
0.5x       — 
    28,733,571     
2.2x       30,248,621     
1.9x      
18%      14% 
BREP VIII (Apr 2015 / Jun 2019)
     16,626,351      1,673,758      10,625,834     
1.3x      
2%      22,891,220     
2.3x       33,517,054     
1.8x      
23%      13% 
BREP IX (Jun 2019 / Aug 2022)
     21,349,948      3,313,697      22,447,870     
1.3x      
1%     
9,136,965     
2.2x       31,584,835     
1.4x      
54%      10% 
*BREP X (Aug 2022 / Feb 2028)
     30,644,637      20,405,498      11,567,610     
1.1x      
2%     
632,157     
1.2x       12,199,767     
1.1x      
7%     
8% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total Global BREP
   $104,167,296    $26,409,652    $46,168,108     
1.2x      
1%    $114,838,568     
2.3x     $161,006,676     
1.8x      
17%      15% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
BREP Int’l (Jan 2001 / Sep 2005)
   €
824,172    €
—    €
—     
n/a       — 
  €
1,373,170     
2.1x     €
1,373,170     
2.1x      
23%      23% 
BREP Int’l II (Sep 2005 / Jun 2008) (e)
    
1,629,748     
—     
—     
n/a       — 
   
2,583,032     
1.8x      
2,583,032     
1.8x      
8%     
8% 
BREP Europe III (Jun 2008 / Sep 2013)
    
3,205,420     
400,061     
96,634     
0.5x       — 
   
5,896,568     
2.1x      
5,993,202     
2.0x      
15%      13% 
BREP Europe IV (Sep 2013 / Dec 2016)
    
6,676,577      1,124,309      1,016,101     
0.8x       — 
    10,170,138     
1.9x       11,186,239     
1.7x      
17%      12% 
BREP Europe V (Dec 2016 / Oct 2019)
    
7,997,397     
814,656      4,251,304     
0.8x       — 
   
6,762,819     
3.8x       11,014,123     
1.5x      
41%     
7% 
BREP Europe VI (Oct 2019 / Sep 2023)
    
9,934,901      3,037,326      8,529,750     
1.2x       — 
   
3,449,052     
2.6x       11,978,802     
1.4x      
73%      11% 
*BREP Europe VII (Sep 2023 / Mar 2029)
    
8,681,767      6,566,084      2,440,509     
1.2x       — 
   
—     
n/a      
2,440,509     
1.2x       n/a 
   n/m 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total BREP Europe
   € 38,949,982    €11,942,436    €16,334,298     
1.0x       — 
  € 30,234,779     
2.3x     € 46,569,077     
1.6x      
16%      11% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
continued...
109

Table of Contents
Fund (Investment Period
  
Committed   
Available   
Unrealized Investments
 
Realized Investments   
Total Investments
  
Net IRRs (d)
Beginning Date / Ending Date) (a)
  
Capital
  
Capital (b)   
Value
   MOIC (c)   % Public 
Value
   MOIC (c)  
Value
   MOIC (c)   Realized  Total
  
(Dollars/Euros in Thousands, Except Where Noted)
Real Estate (continued)
  
  
  
  
  
 
  
  
  
  
 
BREP Asia I (Jun 2013 / Dec 2017)
   $
4,262,075    $
898,555    $ 1,551,149     
1.7x      
30%    $
7,250,832     
1.9x     $
8,801,981     
1.9x      
16%      12% 
BREP Asia II (Dec 2017 / Mar 2022)
    
7,356,455      1,274,879      6,161,561     
1.2x      
9%     
2,221,602     
1.8x      
8,383,163     
1.3x      
24%     
4% 
*BREP Asia III (Mar 2022 / Sep 2027)
    
8,226,453      5,475,691      2,721,116     
1.0x      
— 
   
7,244     
1.6x      
2,728,360     
1.0x       n/a 
   -14% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total BREP Asia
     19,844,983      7,649,125      10,433,826     
1.2x      
10%     
9,479,678     
1.9x       19,913,504     
1.4x      
16%     
7% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
BREP Co-Investment (f)
    
7,597,969     
102,615      1,012,900     
1.5x      
— 
    15,268,392     
2.2x       16,281,292     
2.2x      
16%      16% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total BREP
   $177,144,079    $46,965,122    $75,840,496     
1.1x      
2%    $176,549,262     
2.2x     $252,389,758     
1.7x      
17%      14% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
*BREDS High-Yield (Various) (g)
   $ 27,086,612    $ 9,974,424    $ 5,319,868     
1.1x      
— 
  $ 21,728,008     
1.3x     $ 27,047,876     
1.3x      
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      
— 
   
3,268,627     
2.5x      
3,268,627     
2.5x      
32%      32% 
BCP III (Aug 1997 / Nov 2002)
    
3,967,422     
—     
—     
n/a      
— 
   
9,228,707     
2.3x      
9,228,707     
2.3x      
14%      14% 
BCOM (Jun 2000 / Jun 2006)
    
2,137,330     
24,575     
195     
n/a      
— 
   
2,995,106     
1.4x      
2,995,301     
1.4x      
6%     
6% 
BCP IV (Nov 2002 / Dec 2005)
    
6,773,182     
195,824     
374     
n/a      
— 
    21,720,334     
2.9x       21,720,708     
2.9x      
36%      36% 
BCP V (Dec 2005 / Jan 2011)
     21,009,112      1,035,259     
66,016     
n/a       100%      38,806,330     
1.9x       38,872,346     
1.9x      
8%     
8% 
BCP VI (Jan 2011 / May 2016)
     15,195,360      1,341,143      4,138,595     
2.1x      
14%      28,966,019     
2.3x       33,104,614     
2.2x      
14%      12% 
BCP VII (May 2016 / Feb 2020)
     18,870,216      1,462,359      17,565,769     
1.6x      
22%      19,772,664     
2.6x       37,338,433     
2.0x      
25%      13% 
BCP VIII (Feb 2020 / Apr 2024)
     25,909,120      8,773,377      24,105,211     
1.4x      
7%     
4,260,890     
2.2x       28,366,101     
1.5x       n/m 
    11% 
*BCP IX (Apr 2024 / Apr 2029)
     20,930,930      20,775,172     
133,941     
n/a      
— 
   
—     
n/a      
133,941     
n/a       n/a 
   n/a 
Energy I (Aug 2011 / Feb 2015)
    
2,441,558     
174,492     
543,965     
1.7x      
58%     
4,194,257     
2.0x      
4,738,222     
2.0x      
14%      11% 
Energy II (Feb 2015 / Feb 2020)
    
4,920,591     
867,138      4,549,724     
2.2x      
70%     
4,625,923     
1.8x      
9,175,647     
2.0x      
12%     
9% 
Energy III (Feb 2020 / Jun 2024)
    
4,356,820      1,739,292      5,001,338     
2.0x      
6%     
2,108,325     
2.7x      
7,109,663     
2.2x      
45%      28% 
*Energy Transition IV (Jun 2024 / Jun 2029)
    
5,233,885      5,166,812     
138,706     
n/a      
— 
   
—     
n/a      
138,706     
n/a       n/a 
   n/a 
BCP Asia I (Dec 2017 / Sep 2021)
    
2,437,080     
417,510      2,667,487     
2.1x      
66%     
2,847,272     
3.2x      
5,514,759     
2.5x      
46%      25% 
*BCP Asia II (Sep 2021 / Sep 2027)
    
6,778,630      4,298,290      4,252,246     
2.4x      
31%     
352,291     
4.0x      
4,604,537     
2.5x       n/m 
    51% 
Core Private Equity I (Jan 2017 / Mar 2021) (h)
    
4,760,130      1,178,572      7,669,957     
2.0x      
— 
   
2,918,512     
5.2x       10,588,469     
2.4x      
59%      17% 
*Core Private Equity II (Mar 2021 / Mar 2026) (h)
    
8,450,662      5,295,462      4,617,109     
1.3x      
— 
   
502,247     
n/a      
5,119,356     
1.5x       n/a 
    14% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total Corporate Private Equity
   $156,392,209    $52,745,277    $75,450,633     
1.7x      
17%    $148,309,242     
2.3x     $223,759,875     
2.0x      
16%      15% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
continued...
110

Table of Contents
Fund (Investment Period
   Committed   
Available   
Unrealized Investments
 
Realized Investments   
Total Investments
  
Net IRRs (d)
Beginning Date / Ending Date) (a)
  
Capital
  
Capital (b)   
Value
   MOIC (c)   % Public 
Value
   MOIC (c)  
Value
   MOIC (c)   Realized  Total
  
(Dollars/Euros in Thousands, Except Where Noted)
Private Equity (continued)
  
  
  
  
  
 
  
  
  
  
 
Tactical Opportunities
  
  
  
  
  
 
  
  
  
  
 
*Tactical Opportunities (Various)
   $31,012,258    $12,380,961    $15,895,619     
1.3x      
5%    $25,163,336     
1.8x     $41,058,955     
1.6x      
15%      10% 
*Tactical Opportunities Co-Investment and Other (Various)
     12,561,612      2,132,801      5,978,820     
1.3x      
2%      10,746,563     
1.8x       16,725,383     
1.5x      
19%      16% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total Tactical Opportunities
   $43,573,870    $14,513,762    $21,874,439     
1.3x      
4%    $35,909,899     
1.8x     $57,784,338     
1.5x      
16%      12% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Growth
  
  
  
  
  
 
  
  
  
  
 
*BXG I (Jul 2020 / Jul 2025)
   $ 5,008,477    $
922,294    $ 3,801,964     
1.0x      
2%    $
526,827     
2.6x     $ 4,328,791     
1.1x       n/m 
    -2% 
BXG II (TBD)
     4,204,439      4,204,439     
—     
n/a       — 
   
—     
n/a      
—     
n/a       n/a 
   n/a 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total Growth
   $ 9,212,916    $ 5,126,733    $ 3,801,964     
1.0x      
2%    $
526,827     
2.6x     $ 4,328,791     
1.1x       n/m 
    -2% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Strategic Partners (Secondaries)
  
  
  
  
  
 
  
  
  
  
 
Strategic Partners I-V (Various) (i)
   $11,035,527    $
9,759    $
7,741     
n/a       — 
  $16,782,783     
n/a     $16,790,524     
1.7x       n/a 
    13% 
Strategic Partners VI (Apr 2014 / Apr 2016) (i)
     4,362,772     
597,770     
625,434     
n/a       — 
    4,445,551     
n/a       5,070,985     
1.7x       n/a 
    13% 
Strategic Partners VII (May 2016 / Mar 2019) (i)
     7,489,970      1,659,369      2,937,628     
n/a       — 
    7,765,917     
n/a       10,703,545     
1.9x       n/a 
    16% 
Strategic Partners Real Assets II (May 2017 / Jun 2020) (i)
     1,749,807     
523,693      1,312,353     
n/a       — 
    1,173,420     
n/a       2,485,773     
1.8x       n/a 
    15% 
Strategic Partners VIII (Mar 2019 / Oct 2021) (i)
     10,763,600      3,770,674      7,841,009     
n/a       — 
    6,876,095     
n/a       14,717,104     
1.8x       n/a 
    23% 
*Strategic Partners Real Estate, SMA and Other (Various) (i)
     7,455,591      2,136,862      2,541,983     
n/a       — 
    2,525,494     
n/a       5,067,477     
1.5x       n/a 
    12% 
Strategic Partners Infrastructure III (Jun 2020 / Jun 2024) (i)
     3,250,100     
834,943      2,724,436     
n/a       — 
   
274,616     
n/a       2,999,052     
1.5x       n/a 
    20% 
*Strategic Partners IX (Oct 2021 / Jan 2027) (i)
     19,692,625      6,648,493      10,794,906     
n/a       — 
   
907,344     
n/a       11,702,250     
1.3x       n/a 
    18% 
*Strategic Partners GP Solutions (Jun 2021 / Dec 2026) (i)
     2,095,211     
690,975     
936,543     
n/a       — 
   
3,947     
n/a      
940,490     
1.0x       n/a 
    -3% 
*Strategic Partners Infrastructure IV (Jul 2024 / Jun 2029) (i)
     2,432,184      1,878,879     
—     
n/a       — 
   
—     
n/a      
—     
n/a       n/a 
   n/a 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Total Strategic Partners (Secondaries)
   $70,327,387    $18,751,417    $29,722,033     
n/a       — 
  $40,755,167     
n/a     $70,477,200     
1.6x       n/a 
    14% 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Life Sciences
  
  
  
  
  
 
  
  
  
  
 
Clarus IV (Jan 2018 / Jan 2020)
   $
910,000    $
56,714    $
739,540     
2.2x       — 
  $
566,712     
1.4x     $ 1,306,252     
1.7x      
6%      10% 
*BXLS V (Jan 2020 / Jul 2025)
     5,039,842      2,358,846      4,435,679     
2.0x      
1%     
491,187     
1.3x       4,926,866     
1.8x       n/m 
    19% 
continued...
111

Table of Contents
Fund (Investment Period
   Committed   
Available   
Unrealized Investments
  Realized Investments   
Total Investments
  
Net IRRs (d)
Beginning Date / Ending Date) (a)
  
Capital
   Capital (b)   
Value
   MOIC (c)   % Public 
Value
   MOIC (c)  
Value
   MOIC (c)   Realized   Total
  
(Dollars/Euros in Thousands, Except Where Noted)
Credit
  
  
  
  
  
 
  
  
  
  
  
Mezzanine / Opportunistic I (Jul 2007 / Oct 2011)
   $ 2,000,000    $
97,114    $
—     
n/a      
— 
  $ 4,809,113     
1.6x     $ 4,809,113     
1.6x      
n/a     17%
Mezzanine / Opportunistic II (Nov 2011 / Nov 2016)
     4,120,000     
993,260     
71,353     
0.2x      
— 
    6,678,087     
1.4x       6,749,440     
1.4x      
n/a    
9%
Mezzanine / Opportunistic III (Sep 2016 / Jan 2021)
     6,639,133      1,105,632      2,078,013     
1.2x       39%      8,543,763     
1.6x       10,621,776     
1.5x      
n/a     12%
*Mezzanine / Opportunistic IV (Jan 2021 / Jan 2026)
     5,016,771      1,527,819      4,400,942     
1.2x      
1%      1,778,323     
1.6x       6,179,265     
1.3x      
n/a     14%
Mezzanine / Opportunistic V (TBD)
     3,225,846      3,225,846     
—     
n/a      
— 
   
—     
n/a      
—     
n/a      
n/a    
n/a
Stressed / Distressed I (Sep 2009 / May 2013)
     3,253,143     
—     
—     
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     
115,300     
0.2x      
— 
    5,471,571     
1.2x       5,586,871     
1.1x      
n/a    
1%
Stressed / Distressed III (Dec 2017 / Dec 2022)
     7,356,380      1,023,698      2,033,182     
1.0x      
— 
    4,850,806     
1.5x       6,883,988     
1.3x      
n/a     10%
Energy I (Nov 2015 / Nov 2018)
     2,856,867      1,154,819     
246,914     
0.8x      
— 
    3,335,250     
1.6x       3,582,164     
1.5x      
n/a     10%
Energy II (Feb 2019 / Jun 2023)
     3,616,081      1,475,543      1,023,478     
1.1x      
— 
    2,766,095     
1.4x       3,789,573     
1.3x      
n/a     16%
*Green Energy III (May 2023 / May 2028)
     6,477,000      3,627,742      3,010,359     
1.0x      
— 
   
202,453     
n/a       3,212,812     
1.1x      
n/a     15%
European Senior Debt I (Feb 2015 / Feb 2019)
   € 1,964,689    €
147,189    €
175,127     
0.4x      
— 
  € 2,981,872     
1.3x     € 3,156,999     
1.1x      
n/a    
1%
European Senior Debt II (Jun 2019 / Jun 2023) (j)
   € 4,088,344    €
842,963    € 3,902,298     
0.9x      
— 
  € 3,017,599     
2.6x     € 6,919,897     
1.3x      
n/a     10%
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
Total Credit Drawdown Funds (k)
   $56,591,880    $15,804,206    $17,201,715     
0.9x      
5%    $51,068,185     
1.5x     $68,269,900     
1.3x      
n/a     10%
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
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Select Perpetual Capital Strategies (l)
Strategy (Inception Year) (a)
  
Investment Strategy
  
Total Assets
Under
Management   
Total Net
Return (m)
  
 
  
 
  
 
  
(Dollars in Thousands, Except Where Noted)
Real Estate
  
  
  
BPP—Blackstone Property Partners Platform (2013) (n)
    
Core+ Real Estate
    $61,401,469     
5% 
BREIT—Blackstone Real Estate Income Trust (2017) (o)
    
Core+ Real Estate
      53,966,819     
9% 
BREIT—Class I (p)
    
Core+ Real Estate
   
    
9% 
BXMT—Blackstone Mortgage Trust (2013) (q)
    
Real Estate Debt
      5,814,824     
6% 
Private Equity
  
  
  
BSCH—Blackstone Strategic Capital Holdings (2014) (r)
    Secondaries - GP Stakes      10,999,962      13% 
BIP—Blackstone Infrastructure Partners (2019) (s)
    
Infrastructure
      43,370,836      17% 
BXPE—Blackstone Private Equity Strategies Fund Program (2024) (t)
    
Private Equity
      7,329,314      13% 
BXPE—Class I (u)
    
Private Equity
   
     14% 
Credit
  
  
  
BXSL—Blackstone Secured Lending Fund (2018) (v)
    
U.S. Direct Lending
      13,277,747      11% 
BCRED—Blackstone Private Credit Fund (2021) (w)
    
U.S. Direct Lending
      75,799,683      10% 
BCRED—Class I (x)
    
U.S. Direct Lending
   
     10% 
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
n/m
Not meaningful generally due to the limited time since initial investment.
n/a
Not applicable.
SMA
Separately managed account.
*
Represents funds that are in their investment period as of December 31, 2024.
(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 December 31, 2024 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)
Strategic Partners’ Unrealized Investment Value, Realized Investment Value, Total Investment Value, Total MOIC and Total Net IRRs are reported on a
three-month lag and therefore do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns
of capital until fully recovered and therefore Unrealized and Realized MOICs and Realized Net IRRs are not applicable. Committed Capital and Available
Capital are presented as of the current quarter.
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(j)
European Senior Debt II Levered has a net return of 15%, European Senior Debt II Unlevered has a net return of 8%.
(k)
Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the credit drawdown funds
presented.
(l)
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) perpetual capital assets managed for certain insurance clients, and (3) investment vehicles where Blackstone does
not earn fees.
(m)
Unless otherwise indicated, Total Net Return represents the annualized inception to December 31, 2024 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.
(n)
BPP represents the aggregate Total Assets Under Management and Total Net Return of the BPP Platform, which comprises over 30 funds,
co-investment and separately managed account vehicles. It includes certain vehicles managed as part of the BPP Platform but not classified as
Perpetual Capital. As of December 31, 2024, these vehicles represented $2.8 billion of Total Assets Under Management.
(o)
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. This return is not representative of the return
experienced by any particular investor or share class. Total Net Return is presented on an annualized basis and is from January 1, 2017.
(p)
Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes
reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. Class I
Total Net Return is presented on an annualized basis and is from January 1, 2017.
(q)
The BXMT Total Net Return reflects annualized market return of a shareholder invested in BXMT since inception, May 22, 2013, assuming
reinvestment of all dividends received during the period.
(r)
BSCH represents the aggregate Total Assets Under Management and Total Net Return of BSCH I and BSCH II funds that invest as part of the
Secondaries—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 Assets Under Management is $12.3 billion.
(s)
BIP represents the aggregate Total Assets Under Management and Total Net Return of infrastructure-focused funds for institutional investors with a
primary focus on the U.S. and Europe. Including co-investment vehicles, BIP Total Assets Under Management is $54.8 billion.
(t)
The BXPE Total Net Return reflects a per share blended return, assuming the BXPE fund program had a single vehicle and a single share class,
reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXPE. This
return is not representative of the return experienced by any particular vehicle, investor or share class. Total Net Return is presented on an annualized
basis and is from January 2, 2024. BXPE Total Assets Under Management reflects net asset value as of December 31, 2024. For purposes of segment
Assets Under Management reporting, BXPE Assets Under Management is reported by the business managing the assets.
(u)
Represents the blended Total Net Return for the BXPE fund program’s Class I shares, its largest share class across vehicles. Performance varies by
vehicle and share class. Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission,
net of all fees and expenses incurred by the Class I shares. Class I Total Net Return is presented on an annualized basis and is from January 2, 2024.
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(v)
The BXSL Total Assets Under Management and Total Net Return are presented as of September 30, 2024. Refer to BXSL public filings for current
quarter results. BXSL Total Net Return reflects the change in Net Asset Value (“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.
(w)
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. This return is not representative of the return
experienced by any particular investor or share class. Total Net Return is presented on an annualized basis and is from January 7, 2021. Total Assets
Under Management reflects gross asset value plus amounts borrowed or available to be borrowed under certain credit facilities. BCRED net asset
value as of December 31, 2024 was $38.9 billion.
(x)
Represents the Total Net Return for BCRED’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes
reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BCRED. Class I
Total Net Return is presented on an annualized basis and is from January 7, 2021.
Segment Analysis
Discussed below is our Segment Distributable Earnings for each of our segments. This information is reflected in the manner utilized by our senior
management to make operating decisions, assess performance and allocate resources. References to “our” sectors or investments may also refer to portfolio
companies and investments of the underlying funds that we manage.
Real Estate
The following table presents the results of operations for our Real Estate segment:
  
Year Ended December 31,
 
2024 vs. 2023
 
2023 vs. 2022
  
2024
 
2023
 
2022
 
$
 
%
 
$
 
%
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
(Dollars in Thousands)
Management Fees, Net
  
 
 
 
 
 
 
Base Management Fees
  $2,716,983    $2,794,232    $ 2,462,179    $ (77,249)     -3%   $
332,053      13% 
Transaction and Other Fees, Net
   
175,010     
78,483     
171,424     
96,527     123%    
(92,941)     -54% 
Management Fee Offsets
   
(16,716)    
(29,357)    
(10,538)    
12,641      -43%    
(18,819)    179% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Management Fees, Net
    2,875,277      2,843,358      2,623,065     
31,919     
1%    
220,293     
8% 
Fee Related Performance Revenues
   
203,425     
294,240      1,075,424      (90,815)     -31%    
(781,184)     -73% 
Fee Related Compensation
    (674,965)     (675,880)     (1,039,125)    
915      —     
363,245      -35% 
Other Operating Expenses
    (380,321)     (325,050)    
(315,331)     (55,271)     17%    
(9,719)    
3% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
    2,023,416      2,136,668      2,344,033      (113,252)     -5%    
(207,365)     -9% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Performance Revenues
   
200,974     
244,358      2,985,713      (43,384)     -18%     (2,741,355)     -92% 
Realized Performance Compensation
    (101,011)     (123,299)     (1,168,045)    
22,288      -18%     1,044,746      -89% 
Realized Principal Investment Income
   
14,522     
7,628     
150,790     
6,894      90%    
(143,162)     -95% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Realizations
   
114,485     
128,687      1,968,458      (14,202)     -11%     (1,839,771)     -93% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Distributable Earnings
  $2,137,901    $2,265,355    $ 4,312,491    $(127,454)     -6%   $(2,047,136)     -47% 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
n/m
Not meaningful.
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Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
Segment Distributable Earnings were $2.1 billion for the year ended December 31, 2024, a decrease of $127.5 million, compared to $2.3 billion for the
year ended December 31, 2023. The decrease in Segment Distributable Earnings was attributable to decreases of $113.3 million in Fee Related Earnings and
$14.2 million in Net Realizations.
The performance of funds in our Real Estate segment in 2024 was negatively impacted by volatility in the 10-year Treasury yield, including a sharp
increase in the fourth quarter, and a strong U.S. dollar. However, we believe a commercial real estate recovery is underway. Although the pace of such
recovery is uncertain, the underpinnings are firmly in place, including a healthy economic backdrop that supports cash flow growth, meaningful
improvements in the cost and availability of capital and a material decrease in construction starts. Subject to inflation subsiding, this should set the stage for a
multi-year recovery. The constraints on future new supply, including in certain sectors in which our global opportunistic and Core+ real estate portfolios are
concentrated, such as logistics and rental housing, should also support real estate values over time.
We additionally continue to believe that, despite recent speculation about data center demand, there will continue to be significant demand for digital
infrastructure as artificial intelligence and other technological innovation is increasingly adopted and developed. Our Real Estate segment is well positioned to
benefit from this trend. In certain markets and sectors with elevated near-term supply, including U.S. logistics and multifamily, however, growth has slowed
and may moderate further. Life science office and traditional office valuations have also been negatively impacted by challenging sector dynamics and capital
markets. While our NYSE-listed REIT, Blackstone Mortgage Trust (“BXMT”), is mostly focused in sectors with strong long-term fundamentals, its office exposure
is higher than in our real estate equity business. Although this has posed challenges for the vehicle, its office exposure has been meaningfully reduced
through loan resolutions and repayments. Given our conviction that a recovery is underway, our Real Estate funds deployed $25.3 billion in 2024, a nearly 70%
increase year over year. While we expect our real estate realization activity to remain muted as commercial real estate continues to recover, we believe the
market for realizations will strengthen over time. In BREIT, improving investor sentiment throughout 2024 has contributed to favorable trends in net flows,
with a 97% decline in net repurchase requests in December 2024 relative to their peak in January 2023.
Fee Related Earnings
Fee Related Earnings were $2.0 billion for the year ended December 31, 2024, a decrease of $113.3 million, compared to $2.1 billion for the year ended
December 31, 2023. The decrease in Fee Related Earnings was primarily attributable to a decrease of $90.8 million in Fee Related Performance Revenues and
an increase of $55.3 million in Other Operating Expenses, partially offset by an increase of $31.9 million in Management Fees, Net.
Fee Related Performance Revenues were $203.4 million for the year ended December 31, 2024, a decrease of $90.8 million, compared to $294.2 million
for the year ended December 31, 2023. The decrease was primarily due to lower Fee Related Performance Revenues in BPP and co-investment and BXMT.
Other Operating Expenses were $380.3 million for the year ended December 31, 2024, an increase of $55.3 million, compared to $325.1 million for the
year ended December 31, 2023. The increase was primarily due to higher sub-servicing fees and professional fees.
Management Fees, Net were $2.9 billion for the year ended December 31, 2024, an increase of $31.9 million, compared to $2.8 billion for the year ended
December 31, 2023, primarily driven by an increase in Transaction and Other Fees, Net, partially offset by a decrease in Base Management Fees. Transaction
and Other Fees, Net increased $96.5 million primarily due to an increase in acquisition fees paid to the advisor of our BREP funds. Base Management Fees
decreased $77.2 million primarily due to a decrease in Fee-Earning Assets Under Management in BREIT.
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Net Realizations
Net Realizations were $114.5 million for the year ended December 31, 2024, a decrease of $14.2 million, compared to $128.7 million for the year ended
December 31, 2023. The decrease in Net Realizations was primarily attributable to a decrease of $43.4 million in Realized Performance Revenues, partially
offset by a decrease of $22.3 million in Realized Performance Compensation.
Realized Performance Revenues were $201.0 million for the year ended December 31, 2024, a decrease of $43.4 million, compared to $244.4 million for
the year ended December 31, 2023. The decrease was primarily due to lower Realized Performance Revenues in BREP.
Realized Performance Compensation was $101.0 million for the year ended December 31, 2024, a decrease of $22.3 million, compared to $123.3 million
for the year ended December 31, 2023. The decrease was primarily due to the decrease in Realized Performance Revenues.
Fund Returns
Fund return information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods
presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not
necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no
assurance that any of our funds or our other existing and future funds will achieve similar returns.
The following table presents the internal rates of return, except where noted, of our significant real estate funds:
  
Year Ended December 31,
  
December 31, 2024
Inception to Date
  
2024
  
2023
  
2022
  
Realized
  
Total
Fund (a)
   Gross   
Net
   Gross   
Net
   Gross   
Net
   Gross   
Net    Gross   
Net
BREP VIII
   -11%    -11%    -10%     -9%     8%    
6%    30%    23%    18%     13% 
BREP IX
    -8%     -8%     -6%     -6%    18%     13%    80%    54%    15%     10% 
BREP X
    27%     15%     n/m     n/m    n/m     n/m    15%     7%    29%    
8% 
BREP Europe V (b)
   -13%    -12%    -14%    -13%     -1%     -2%    50%    41%    11%    
7% 
BREP Europe VI (b)
   
3%    
1%     10%    
6%    10%    
6%    97%    73%    19%     11% 
BREP Asia II
    -2%     -3%     -2%     -1%     2%    
1%    35%    24%     7%    
4% 
BREP Asia III
   
6%     -7%     -4%    -19%    n/m     n/m     n/a     n/a    
—    -14% 
BREP Co-Investment (c)
    -8%    -10%    
1%    
1%    26%     25%    18%    16%    18%     16% 
BPP (d)
    -2%     -3%     -8%     -8%    11%    
9%     n/a     n/a     6%    
5% 
BREIT (e)
    n/a    
2%     n/a     -1%     n/a    
8%     n/a     n/a     n/a    
9% 
BREIT - Class I (f)
    n/a    
2%     n/a     -1%     n/a    
8%     n/a     n/a     n/a    
9% 
BREDS High-Yield (g)
    17%     12%     12%    
8%     3%    
—    14%    10%    14%    
9% 
BXMT (h)
    n/a     -8%     n/a     13%     n/a    -24%     n/a     n/a     n/a    
6% 
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
n/m
Not meaningful generally due to the limited time since initial investment.
n/a
Not applicable.
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(a)
Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues.
Excludes investment vehicles where Blackstone does not earn fees.
(b)
Euro-based internal rates of return.
(c)
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.
(d)
The BPP platform, which comprises over 30 funds, co-investment and separately managed account vehicles, represents the Core+ real estate funds
which invest with a more modest risk profile and lower leverage.
(e)
Reflects a per share blended return for each respective period, assuming BREIT had a single share class, reinvestment of all dividends received during
the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. These returns are not representative of the returns
experienced by any particular investor or share class. Inception to date returns are presented on an annualized basis and are from January 1, 2017.
(f)
Represents the Total Net Return for BREIT’s Class I shares, its largest share class. Performance varies by share class. Class I Total Net Return assumes
reinvestment of all dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BREIT. Inception
to date return is from January 1, 2017.
(g)
BREDS High-Yield represents the flagship real estate debt drawdown funds only. Inception to date returns are from July 1, 2009.
(h)
Reflects annualized return of a shareholder invested in BXMT as of the beginning of each period presented, assuming reinvestment of all dividends
received during the period, and net of all fees and expenses incurred by BXMT. Return incorporates the closing NYSE stock price as of each period end.
Inception to date returns are from May 22, 2013.
Funds with Closed Investment Periods as of December 31, 2024
The Real Estate segment has thirteen funds with closed investment periods as of December 31, 2024: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP
Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of December 31, 2024, BREP VII, BREP VI,
BREP V, BREP Europe VI, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its
limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all
remaining investments were valued at zero. BREP IX, BREP VIII, BREP Europe V, BREDS IV and BREDS III were above their carried interest thresholds as of
December 31, 2024, and BREP Asia II was below its carried interest threshold. Funds are considered above their carried interest thresholds based on the
aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.
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Private Equity
The following table presents the results of operations for our Private Equity segment:
 
Year Ended December 31,
 
2024 vs. 2023
  
2023 vs. 2022
 
2024
 
2023
 
2022
 
$
 
%
  
$
 
%
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
(Dollars in Thousands)
Management and Advisory Fees, Net
 
 
 
 
 
  
 
Base Management Fees
  $ 2,027,855    $ 1,903,972    $ 1,882,197    $ 123,883     
7%    $ 21,775     
1% 
Transaction, Advisory and Other Fees, Net
   
176,469     
108,848     
97,972     
67,621      62%      10,876     
11% 
Management Fee Offsets
   
(6,044)    
(5,228)    
(56,078)    
(816)     16%      50,850      -91% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Management and Advisory Fees, Net
    2,198,280      2,007,592      1,924,091     
190,688     
9%      83,501     
4% 
Fee Related Performance Revenues
    1,185,428     
—     
(648)     1,185,428      n/m     
648     -100% 
Fee Related Compensation
    (1,164,237)    
(619,678)    
(599,758)     (544,559)     88%      (19,920)    
3% 
Other Operating Expenses
   
(391,309)    
(329,221)    
(314,967)    
(62,088)     19%      (14,254)    
5% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Fee Related Earnings
    1,828,162      1,058,693      1,008,718     
769,469      73%      49,975     
5% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Realized Performance Revenues
    1,392,447      1,343,865      1,206,594     
48,582     
4%      137,271     
11% 
Realized Performance Compensation
   
(633,491)    
(584,154)    
(550,306)    
(49,337)     
8%      (33,848)    
6% 
Realized Principal Investment Income
   
52,356     
76,220     
144,585     
(23,864)    -31%      (68,365)     -47% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Net Realizations
   
811,312     
835,931     
800,873     
(24,619)     -3%      35,058     
4% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Segment Distributable Earnings
  $ 2,639,474    $ 1,894,624    $ 1,809,591    $ 744,850      39%    $ 85,033     
5% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
n/m
Not meaningful.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
Segment Distributable Earnings were $2.6 billion for the year ended December 31, 2024, an increase of $744.9 million, compared to $1.9 billion for the
year ended December 31, 2023. The increase in Segment Distributable Earnings was attributable to an increase of $769.5 million in Fee Related Earnings,
partially offset by a decrease of $24.6 million in Net Realizations.
Our Private Equity segment demonstrated resilience across all strategies in 2024. In addition to particular strength in Corporate Private Equity and Life
Sciences, our Infrastructure business was a notable driver of Fee Related Performance Revenues in the fourth quarter due to a significant scheduled
crystallization event. We continue to believe our Infrastructure business is well positioned to benefit from the expected increase in demand for investment in
infrastructure, including digital infrastructure, over time. In Corporate Private Equity, our operating companies saw stable revenue growth and margin
expansion during the year. Realization activity in the segment meaningfully increased toward the end of 2024, concentrated in Corporate Private Equity, and
we see a more constructive environment for realizations in the segment through the course of 2025. Improved market sentiment has created positive
momentum for deployment in the segment, which nearly doubled year-over-year, and for fundraising, including in our perpetual capital strategies.
Fee Related Earnings
Fee Related Earnings were $1.8 billion for the year ended December 31, 2024, an increase of $769.5 million, compared to $1.1 billion for the year ended
December 31, 2023. The increase in Fee Related Earnings was primarily attributable to increases of $1.2 billion in Fee Related Performance Revenues and
$190.7 million in Management and Advisory Fees, Net, partially offset by an increase of $544.6 million in Fee Related Compensation.
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Fee Related Performance Revenues were $1.2 billion for the year ended December 31, 2024, an increase of $1.2 billion, compared to the year ended
December 31, 2023. The increase was due to crystallization of performance revenues in BIP and BXPE.
Management and Advisory Fees, Net were $2.2 billion for the year ended December 31, 2024, an increase of $190.7 million, compared to $2.0 billion for
the year ended December 31, 2023, primarily driven by increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base
Management Fees increased $123.9 million primarily due to an increase in Fee-Earning Assets Under Management in BIP and BXPE, as well as the investment
period commencement and subsequent fee holiday expirations of BCP IX and BETP IV. Transaction, Advisory and Other Fees, Net increased $67.6 million
primarily due to increased volume of deal activity in BXCM.
Fee Related Compensation were $1.2 billion for the year ended December 31, 2024, an increase of $544.6 million, compared to $619.7 million for the
year ended December 31, 2023. The increase was primarily due to increases in Fee Related Performance Revenues and Management and Advisory Fees, Net,
both of which impact Fee Related Compensation.
Net Realizations
Net Realizations were $811.3 million for the year ended December 31, 2024, a decrease of $24.6 million, compared to $835.9 million for the year ended
December 31, 2023. The decrease in Net Realizations was attributable to an increase of $49.3 million in Realized Performance Compensation and a decrease
of $23.9 million in Realized Principal Investment Income, partially offset by an increase of $48.6 million in Realized Performance Revenues.
Realized Performance Compensation was $633.5 million for the year ended December 31, 2024, an increase of $49.3 million, compared to $584.2 million
for the year ended December 31, 2023. The increase was primarily due to increases in Realized Performance Compensation in Corporate Private Equity and
Tactical Opportunities, partially offset by decreases in Secondaries.
Realized Principal Investment Income was $52.4 million for the year ended December 31, 2024, a decrease of $23.9 million, compared to $76.2 million
for the year ended December 31, 2023. The decrease was primarily due to decreases in Realized Principal Investment Income in Corporate Private Equity.
Realized Performance Revenues were $1.4 billion for the year ended December 31, 2024, an increase of $48.6 million, compared to $1.3 billion for the
year ended December 31, 2023. The increase was primarily due to increases in Realized Performance Revenues in Tactical Opportunities and Corporate
Private Equity, partially offset by decreases in Secondaries.
Fund Returns
Fund returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods
presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not
necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no
assurance that any of our funds or our other existing and future funds will achieve similar returns.
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The following table presents the internal rates of return of our significant private equity funds:
  
Year Ended December 31,
  
December 31, 2024
Inception to Date
  
2024
  
2023
  
2022
  
Realized
  
Total
Fund (a)
   Gross   
Net    Gross   
Net
   Gross   
Net
   Gross   
Net    Gross   
Net
BCP VI
    7%     6%    
7%    
6%     12%     11%    19%    14%    17%    12% 
BCP VII
   13%    10%     13%     10%    -12%    -11%    34%    25%    18%    13% 
BCP VIII
   14%     9%     12%    
6%    
4%    
—    n/m    n/m    19%    11% 
BEP II
   40%    23%     12%    
8%     36%     33%    15%    12%    14%     9% 
BEP III
   20%    15%     28%     20%     42%     31%    63%    45%    42%    28% 
BCP Asia I
   14%    12%     16%     13%    -38%    -35%    66%    46%    36%    25% 
BCP Asia II
   91%    76%     62%     23%     n/m     n/m    n/m    n/m    80%    51% 
BCEP I
   10%     8%    
2%    
2%    
—    
—    64%    59%    19%    17% 
BCEP II
   14%    10%     31%     24%     14%    
9%     n/a     n/a    19%    14% 
Tactical Opportunities
   13%     9%    
9%    
5%     -2%     -4%    18%    15%    15%    10% 
Tactical Opportunities Co-Investment and Other
   13%    11%    
7%    
7%    
—    
4%    21%    19%    19%    16% 
BXG I
    2%     -2%     -2%     -5%    -13%    -13%    n/m    n/m     2%     -2% 
Strategic Partners VI (b)
    2%    
—     -2%     -3%    -10%    -11%     n/a     n/a    18%    13% 
Strategic Partners VII (b)
    -1%     -2%    
1%    
—     -4%     -5%     n/a     n/a    20%    16% 
Strategic Partners Real Assets II (b)
   13%    11%     19%     16%     13%     12%     n/a     n/a    19%    15% 
Strategic Partners VIII (b)
    1%    
—     -1%     -3%    
3%    
2%     n/a     n/a    30%    23% 
Strategic Partners Real Estate, SMA and Other (b)
    -1%     -6%     -6%     -7%     35%     32%     n/a     n/a    14%    12% 
Strategic Partners Infrastructure III (b)
   13%    10%     15%     11%     58%     45%     n/a     n/a    30%    20% 
Strategic Partners IX (b)
   25%    19%     15%    
7%     n/m     n/m     n/a     n/a    28%    18% 
Strategic Partners GP Solutions (b)
   
—     -3%    -16%    -11%     39%     29%     n/a     n/a     1%     -3% 
BSCH (c)
   35%    25%    
8%    
5%    
4%    
1%     n/a     n/a    21%    13% 
BIP (d)
   24%    20%     13%     10%     26%     20%     n/a     n/a    21%    17% 
Clarus IV
   22%    17%     -3%     -4%    
4%    
2%    11%     6%    16%    10% 
BXLS V
   42%    31%     43%     27%     10%    
2%    n/m    n/m    31%    19% 
BXPE (e)
    n/a    13%     n/a     n/a     n/a     n/a     n/a     n/a     n/a    13% 
BXPE - Class I (f)
    n/a    14%     n/a     n/a     n/a     n/a     n/a     n/a     n/a    14% 
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
n/m
Not meaningful generally due to the limited time since initial investment.
n/a
Not applicable.
SMA
Separately managed account.
(a)
Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Revenues.
Excludes investment vehicles where Blackstone does not earn fees.
(b)
Gross and net returns are reported on a three-month lag, reflect Strategic Partners’ fund financial performance as of the prior quarter and therefore
do not include the impact of economic and market activities in the current quarter. Realizations are treated as returns of capital until fully recovered
and therefore inception to date realized returns are not applicable.
(c)
Gross and net returns represent BSCH I and BSCH II GP Stakes funds. Returns include performance of investments in four public-market general
partner stakes acquired in BSCH I, prior to a shift in GP Stakes’ strategy in 2017 to focus exclusively on private-markets general partners.
(d)
Gross and net returns reflect infrastructure-focused funds for institutional investors.
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(e)
Reflects a per share blended return for each respective period, assuming BXPE had a single vehicle and a single share class, reinvestment of any
dividends received during the period, and no upfront selling commission, net of all fees and expenses incurred by BXPE. These returns are not
representative of the returns experienced by any particular vehicle, investor or share class. Inception to date returns are presented on an annualized
basis and are from January 2, 2024.
(f)
Represents the blended Total Net Return for BXPE’s Class I shares, its largest share class across vehicles. Performance varies by vehicle and share class.
Class I Total Net Return assumes reinvestment of any dividends received during the period, and no upfront selling commission, net of all fees and
expenses incurred by the Class I shares. Class I Total Net Return is presented on an annualized basis from January 2, 2024.
Funds With Closed Investment Periods as of December 31, 2024
The Corporate Private Equity funds have eleven funds with closed investment periods: BCP IV, BCP V, BCP VI, BCP VII, BCP VIII, BCOM, BEP I, BEP II, BEP III,
BCEP I and BCP Asia I. As of December 31, 2024, BCP IV was above its carried interest threshold (i.e., the preferred return payable to its limited partners
before the general partner is eligible to receive carried interest) and would still be above its carried interest threshold even if all remaining investments were
valued at zero. BCP V is comprised of two fund classes, the BCP V “main fund” and BCP V-AC fund. Within these fund classes, the general partner is subject to
equalization such that (a) the general partner accrues carried interest when the respective carried interest for either fund class is positive and (b) the general
partner realizes carried interest so long as clawback obligations, if any, for either of the respective fund classes are fully satisfied. BCP V, BCP VI, BCP VII,
BCP VIII, BCOM, BEP I, BEP II, BEP III, BCEP I and BCP Asia I were above their respective carried interest thresholds. Funds are considered above their carried
interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in
certain funds.
Tactical Opportunities funds have various funds with closed investment periods, including but not limited to: BTOF-POOL, BTOF-POOL II, and
BTOF-POOL III, which are each above their carried interest thresholds based on aggregate fund position. Blackstone Growth funds have no funds with closed
investment periods. Secondaries funds have various funds with closed investment periods, including but not limited to: Strategic Partners Infrastructure III,
Strategic Partners VIII, Strategic Partners Real Estate VII and BSCH I which are above their respective carried interest thresholds based on aggregate fund
position. Blackstone Life Sciences funds have one fund with a closed investment period: Clarus IV, which was above its carried interest threshold.
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Credit & Insurance
The following table presents the results of operations for our Credit & Insurance segment:
 
Year Ended December 31,
 
2024 vs. 2023
 
2023 vs. 2022
 
2024
 
2023
 
2022
 
$
 
%
 
$
 
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in Thousands)
Management Fees, Net
 
 
 
 
 
 
 
Base Management Fees
  $ 1,561,649    $ 1,297,406    $ 1,185,289    $ 264,243      20%   $ 112,117     
9% 
Transaction and Other Fees, Net
   
44,354     
44,542     
34,481     
(188)    
—    
10,061      29% 
Management Fee Offsets
   
(24,196)    
(3,907)    
(5,432)    
(20,289)    519%    
1,525      -28% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Management Fees, Net
   
1,581,807     
1,338,041     
1,214,338     
243,766      18%    
123,703      10% 
Fee Related Performance Revenues
   
747,092     
564,287     
374,721     
182,805      32%    
189,566      51% 
Fee Related Compensation
   
(755,620)    
(628,064)    
(512,727)    
(127,556)     20%    
(115,337)     22% 
Other Operating Expenses
   
(371,354)    
(323,773)    
(260,028)    
(47,581)     15%    
(63,745)     25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
   
1,201,925     
950,491     
816,304     
251,434      26%    
134,187      16% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Performance Revenues
   
313,092     
317,620     
147,285     
(4,528)     -1%    
170,335     116% 
Realized Performance Compensation
   
(129,814)    
(140,210)    
(63,845)    
10,396      -7%    
(76,365)    120% 
Realized Principal Investment Income
   
39,855     
21,752     
79,763     
18,103      83%    
(58,011)     -73% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Realizations
   
223,133     
199,162     
163,203     
23,971      12%    
35,959      22% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Distributable Earnings
  $
1,425,058    $
1,149,653    $
979,507    $
275,405      24%   $
170,146      17% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
n/m
Not meaningful.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
Segment Distributable Earnings were $1.4 billion for the year ended December 31, 2024, an increase of $275.4 million, compared to $1.1 billion for the
year ended December 31, 2023. The increase in Segment Distributable Earnings was attributable to increases of $251.4 million in Fee Related Earnings and
$24.0 million in Net Realizations.
Our Credit & Insurance segment demonstrated consistently strong performance in 2024. Longer-term structural shifts in the lending market have
contributed to attractive and sizeable deployment opportunities in the segment, which invested $63.8 billion in 2024. Credit & Insurance funds have benefited
from an environment of high interest rates, although these rates began to decrease in 2024. A further decline in interest rates and/or widening of credit
spreads would make it more difficult for our credit funds to replicate recent strong performance. Nevertheless, even with modest base rate decreases, we
continue to see significant opportunities to generate excess returns relative to liquid markets in our non-investment grade strategies. Moreover, rapidly
expanding private credit markets and opportunities for corporate and bank partnerships should continue to be supportive of overall transaction activity,
including deployment.
Fundraising in our Credit & Insurance segment, including in our perpetual capital strategies, continued to be positively impacted by the long-term
structural shifts in the lending market. In addition to strong interest in non-investment grade strategies, such as opportunistic and direct lending, and a
meaningful increase in demand for investment grade private credit, we see robust momentum in our perpetual capital strategies. At the same time, given the
significant opportunities in the space, competition in the private credit markets has increased and is likely to increase further as a result of product innovation
and customization by private credit managers. In addition, regulatory measures aimed at reducing burden on U.S. banks, such as less onerous bank regulatory
capital requirements, may also increase competition.
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Fee Related Earnings
Fee Related Earnings were $1.2 billion for the year ended December 31, 2024, an increase of $251.4 million, compared to $950.5 million for the year
ended December 31, 2023. The increase in Fee Related Earnings was primarily attributable to increases of $243.8 million in Management Fees, Net and
$182.8 million in Fee Related Performance Revenues, partially offset by an increase of $127.6 million in Fee Related Compensation.
Management Fees, Net were $1.6 billion for the year ended December 31, 2024, an increase of $243.8 million, compared to $1.3 billion for the year
ended December 31, 2023, primarily driven by an increase in Base Management Fees. Base Management Fees increased $264.2 million primarily due to an
increase in Fee-Earning Assets Under Management in direct lending.
Fee Related Performance Revenues were $747.1 million for the year ended December 31, 2024, an increase of $182.8 million, compared to
$564.3 million for the year ended December 31, 2023. The increase was primarily due to higher net investment income and Fee-Earning Assets Under
Management in BCRED.
Fee Related Compensation was $755.6 million for the year ended December 31, 2024, an increase of $127.6 million, compared to $628.1 million for the
year ended December 31, 2023. The increase was primarily due to increases in Management Fees, Net and Fee Related Performance Revenues, both of which
impact Fee Related Compensation.
Net Realizations
Net Realizations were $223.1 million for the year ended December 31, 2024, an increase of $24.0 million, compared to $199.2 million for the year ended
December 31, 2023. The increase in Net Realizations was primarily attributable to an increase of $18.1 million in Realized Principal Investment Income,
partially offset by a decrease of $10.4 million in Realized Performance Compensation.
Realized Principal Investment Income was $39.9 million for the year ended December 31, 2024, an increase of $18.1 million, compared to $21.8 million
for the year ended December 31, 2023. The increase was primarily due to the impact of a realized loss related to the insurance platform in the year ended
December 31, 2023.
Realized Performance Compensation was $129.8 million for the year ended December 31, 2024, a decrease of $10.4 million, compared to $140.2 million
for the year ended December 31, 2023. The decrease was primarily due to the decrease in Realized Performance Revenues.
Composite Returns
Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the
periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and
is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds
or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar
returns.
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The following table presents the return information for the Private Credit and Liquid Credit composites:
 
Year Ended December 31,
 
Inception to
December 31, 2024
 
2024
 
2023
 
2022
 
Total
Composite (a)
  Gross  
Net   Gross  
Net   Gross 
Net  
Gross
 
Net
Private Credit (b)
   16%    12%    16%    12%     7%     4%     12%      8% 
Liquid Credit (b)
   10%     9%    13%    12%    -3%    -3%    
5%      5% 
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
(a)
Net returns are based on the change in carrying value (realized and unrealized) after management fees, expenses and Performance Allocations, net of
tax advances.
(b)
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 funds
are excluded. Blackstone Funds that were contributed to BXC as part of Blackstone’s acquisition of BXC in March 2008 and the pre-acquisition date
performance for funds and vehicles acquired by BXC subsequent to March 2008, are also excluded. Private Credit and Liquid Credit’s inception to date
returns are from December 31, 2005.
Operating Metrics
The following table presents information regarding our Invested Performance Eligible Assets Under Management:
  
Invested Performance
Eligible Assets Under
Management
  
Estimated % Above
High Water
Mark/Hurdle (a)
  
December 31,
  
December 31,
  
2024
  
2023
  
2022
  
2024  
2023  
2022
  
(Dollars in Thousands)
  
 
 
 
 
 
Credit & Insurance (b)
   $ 110,519,827    $ 89,500,575    $ 87,166,271     99%  
 97%  
 93% 
(a)
Estimated % Above High Water Mark/Hurdle represents the percentage of Invested Performance Eligible Assets Under Management that as of the
dates presented would earn performance fees when the applicable Credit & Insurance managed fund has positive investment performance relative to
a hurdle, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their respective
High Water Mark or clear a hurdle return, thereby resulting in an increase in Estimated % Above High Water Mark/Hurdle.
(b)
For the Credit & Insurance managed funds, at December 31, 2024, the incremental appreciation needed for the 1% of Invested Performance Eligible
Assets Under Management below their respective High Water Marks/Hurdles to reach their respective High Water Marks/Hurdles was $2.2 billion, an
increase of $37.0 million, compared to $2.1 billion at December 31, 2023. Of the Invested Performance Eligible Assets Under Management below their
respective High Water Marks/Hurdles as of December 31, 2024, 5% were within 5% of reaching their respective High Water Mark.
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Multi-Asset Investing
The following table presents the results of operations for our Multi-Asset Investing segment:
 
Year Ended December 31,
 
2024 vs. 2023
  
2023 vs. 2022
 
2024
 
2023
 
2022
 
$
 
%
  
$
 
%
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
(Dollars in Thousands)
Management Fees, Net
 
 
 
 
 
  
 
Base Management Fees
  $ 474,395    $ 470,237    $ 515,373    $
4,158     
1%    $ (45,136)     -9% 
Transaction and Other Fees, Net
   
3,855     
4,019     
6,240     
(164)     -4%     
(2,221)    -36% 
Management Fee Offsets
   
(80)    
(3)    
(161)    
(77)     n/m     
158     -98% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Management Fees, Net
   
478,170     
474,253     
521,452     
3,917     
1%     
(47,199)     -9% 
Fee Related Compensation
   
(144,500)    
(164,488)    
(179,165)      19,988      -12%       14,677      -8% 
Other Operating Expenses
   
(105,108)    
(106,289)    
(98,697)    
1,181      -1%     
(7,592)    
8% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Fee Related Earnings
   
228,562     
203,476     
243,590     
25,086      12%     
(40,114)    -16% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Realized Performance Revenues
   
380,518     
155,259     
121,746      225,259     145%     
33,513      28% 
Realized Performance Compensation
   
(86,930)    
(48,354)    
(31,901)    
(38,576)     80%     
(16,453)     52% 
Realized Principal Investment Income
   
(14,207)    
5,332     
21,118     
(19,539)     n/m     
(15,786)    -75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Net Realizations
   
279,381     
112,237     
110,963      167,144     149%     
1,274     
1% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Segment Distributable Earnings
  $
507,943    $
315,713    $
354,553    $ 192,230      61%    $ (38,840)    -11% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
n/m
Not meaningful.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023
Segment Distributable Earnings were $507.9 million for the year ended December 31, 2024, an increase of $192.2 million, compared to $315.7 million for
the year ended December 31, 2023. The increase in Segment Distributable Earnings was attributable to increases of $25.1 million in Fee Related Earnings and
$167.1 million in Net Realizations.
Nearly all strategies across our Multi-Asset Investing segment exhibited positive performance in 2024, with significantly less volatility than the broader
markets. In particular, the Absolute Return Composite had its nineteenth consecutive quarter of positive performance and best year since 2009, benefiting
from performance across strategies, including quantitative, macro and equities. Segment Distributable Earnings in the Multi-Asset Investing segment would
likely be negatively impacted, however, by a significant or sustained weak market environment or decline in asset prices, including as a result of concerns over
macroeconomic factors. In addition, certain of our strategies are designed to benefit from a high interest rate environment. Declining interest rates may make
it more difficult for these Multi-Asset Investing strategies to replicate their positive performance. Conversely, if interest rates remain at sustained high levels
for an extended period, certain investors may seek to reallocate capital away from traditional Multi-Asset Investing strategies in favor of fixed income
investments. Outperformance by our Multi-Asset Investing segment strategies in a weak market environment has in some cases resulted in such strategies
representing an increasing portion of the value of certain investors’ portfolios, which may limit such investors’ ability to allocate additional capital to certain
funds in the segment, or result in such investors seeking to withdraw capital from such funds.
Fee Related Earnings
Fee Related Earnings were $228.6 million for the year ended December 31, 2024, an increase of $25.1 million, compared to $203.5 million for the year
ended December 31, 2023. The increase in Fee Related Earnings was primarily attributable to a decrease of $20.0 million in Fee Related Compensation.
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Fee Related Compensation was $144.5 million for the year ended December 31, 2024, a decrease of $20.0 million, compared to $164.5 million for the
year ended December 31, 2023. The decrease was primarily due to lower compensation accruals.
Net Realizations
Net Realizations were $279.4 million for the year ended December 31, 2024, an increase of $167.1 million, compared to $112.2 million for the year
ended December 31, 2023. The increase in Net Realizations was primarily attributable to an increase of $225.3 million in Realized Performance Revenues,
partially offset by an increase of $38.6 million in Realized Performance Compensation.
Realized Performance Revenues were $380.5 million for the year ended December 31, 2024, an increase of $225.3 million, compared to $155.3 million
for the year ended December 31, 2023. The increase was primarily due to higher Realized Performance Revenues in Absolute Return.
Realized Performance Compensation was $86.9 million for the year ended December 31, 2024, an increase of $38.6 million, compared to $48.4 million
for the year ended December 31, 2023. The increase was primarily due to the increase in Realized Performance Revenues.
Composite Returns
Composite returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the
periods presented. The composite returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and
is also not necessarily indicative of the future results of any particular fund or composite. An investment in Blackstone is not an investment in any of our funds
or composites. There can be no assurance that any of our funds or composites or our other existing and future funds or composites will achieve similar
returns.
The following table presents the return information of the Absolute Return Composite:
  
Average Annual Returns (a)
  
Periods Ended December 31, 2024
  
One Year
 
Three Year  
Five Year  
Historical
Composite
   Gross  
Net   Gross  Net   Gross  Net   Gross 
Net
Absolute Return Composite (b)
   13%    12%    9%    8%    8%    7%    7%    6% 
The returns presented herein represent those of the applicable Blackstone Funds and not those of Blackstone.
(a)
Composite returns present a summarized asset-weighted return measure to evaluate the overall performance of the applicable class of Blackstone Funds.
(b) Absolute Return Composite covers the period from January 2000 to present, although BXMA’s inception date is September 1990. The Absolute Return
Composite includes only BXMA-managed commingled and customized multi-manager funds and accounts and does not include BXMA’s liquid solutions,
seeding, Multi-Strategy, Harvest and advisory (non-discretionary) platforms, except for investments by Absolute Return funds directly into those
platforms. BXMA-managed funds in liquidation and, in the case of net returns, non-fee-paying assets are also excluded. The funds/accounts that
comprise the Absolute Return Composite are not managed within a single fund or account and are managed with different mandates. There is no
guarantee that BXMA would have made the same mix of investments in a stand-alone fund/account. The Absolute Return Composite is not an investible
product and, as such, the performance of the Absolute Return Composite does not represent the performance of an actual fund or account. The
historical return is from January 1, 2000.
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Operating Metrics
The following table presents information regarding our Invested Performance Eligible Assets Under Management:
  
Invested Performance
Eligible Assets Under
Management
  
Estimated % Above
High Water
Mark/Benchmark (a)
  
December 31,
  
December 31,
  
2024
  
2023
  
2022
  
2024  
2023  
2022
  
 
  
 
  
 
  
 
 
 
 
 
  
(Dollars in Thousands)
  
 
 
 
 
 
Multi-Asset Investing Managed Funds (b)
   $ 51,630,740    $ 45,631,127    $ 43,052,178     98%  
 95%  
 82% 
(a)
Estimated % Above High Water Mark/Benchmark represents the percentage of Invested Performance Eligible Assets Under Management that as of the
dates presented would earn performance fees when the applicable Multi-Asset Investing managed fund has positive investment performance relative to
a benchmark, where applicable. Incremental positive performance in the applicable Blackstone Funds may cause additional assets to reach their
respective High Water Mark or clear a benchmark return, thereby resulting in an increase in Estimated % Above High Water Mark/Benchmark.
(b) For the Multi-Asset Investing managed funds, at December 31, 2024, the incremental appreciation needed for the 2% of Invested Performance Eligible
Assets Under Management below their respective High Water Marks/Benchmarks to reach their respective High Water Marks/Benchmarks was
$116.0 million, a decrease of $(462.3) million, compared to $578.3 million at December 31, 2023. Of the Invested Performance Eligible Assets Under
Management below their respective High Water Marks/Benchmarks as of December 31, 2024, 5% were within 5% of reaching their respective High
Water Mark.
Non-GAAP Financial Measures
These non-GAAP financial measures are presented without the consolidation of any Blackstone Funds that are consolidated into the consolidated
financial statements. Consequently, all non-GAAP financial measures exclude the assets, liabilities and operating results related to the Blackstone Funds. See
“— Key Financial Measures and Indicators” for our definitions of Distributable Earnings, Segment Distributable Earnings, Fee Related Earnings and Adjusted
EBITDA.
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The following table is a reconciliation of Net Income Attributable to Blackstone Inc. to Distributable Earnings, Total Segment Distributable Earnings, Fee
Related Earnings and Adjusted EBITDA:
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
 
  
 
  
 
  
 
 
  
(Dollars in Thousands)
Net Income Attributable to Blackstone Inc.
  
$ 2,776,508     $ 1,390,880     $ 1,747,631 
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
  
  2,248,764       1,074,736       1,276,402 
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
  
 
473,826      
224,155      
107,766 
Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
  
 
(61,289)     
(245,518)     
(142,890) 
  
 
 
 
  
 
 
 
  
 
 
 
Net Income
  
  5,437,809       2,444,253       2,988,909 
Provision for Taxes
  
  1,021,671      
513,461      
472,880 
  
 
 
 
  
 
 
 
  
 
 
 
Net Income Before Provision for Taxes
  
  6,459,480       2,957,714       3,461,789 
Transaction-Related and Non-Recurring Items (a)
  
 
56,372      
25,981      
57,133 
Amortization of Intangibles (b)
  
 
29,332      
33,457      
60,481 
Impact of Consolidation (c)
  
 
(412,537)     
21,363      
35,124 
Unrealized Performance Revenues (d)
  
 
(371,407)      1,691,788       3,436,978 
Unrealized Performance Allocations Compensation (e)
  
 
140,021      
(654,403)      (1,470,588) 
Unrealized Principal Investment (Income) Loss (f)
  
 
(271,868)     
593,301       1,235,529 
Other Revenues (g)
  
 
(123,166)     
93,083      
(183,754) 
Equity-Based Compensation (h)
  
  1,159,122      
959,474      
782,090 
Administrative Fee Adjustment (i)
  
 
11,590      
9,707      
9,866 
Taxes and Related Payables (j)
  
 
(710,197)     
(670,510)     
(791,868) 
  
 
 
 
  
 
 
 
  
 
 
 
Distributable Earnings
  
  5,966,742       5,060,955       6,632,780 
Taxes and Related Payables (j)
  
 
710,197      
670,510      
791,868 
Net Interest and Dividend (Income) Loss (k)
  
 
33,437      
(106,120)     
31,494 
  
 
 
 
  
 
 
 
  
 
 
 
Total Segment Distributable Earnings
  
  6,710,376       5,625,345       7,456,142 
Realized Performance Revenues (l)
  
  (2,287,031)      (2,061,102)      (4,461,338) 
Realized Performance Compensation (m)
  
 
951,246      
896,017       1,814,097 
Realized Principal Investment Income (n)
  
 
(92,526)     
(110,932)     
(396,256) 
  
 
 
 
  
 
 
 
  
 
 
 
Fee Related Earnings
  
$ 5,282,065     $ 4,349,328     $ 4,412,645 
  
 
 
 
  
 
 
 
  
 
 
 
Adjusted EBITDA Reconciliation
  
  
  
Distributable Earnings
  
$ 5,966,742     $ 5,060,955     $ 6,632,780 
Interest Expense (o)
  
 
444,417      
429,521      
316,569 
Taxes and Related Payables (j)
  
 
710,197      
670,510      
791,868 
Depreciation and Amortization (p)
  
 
98,756      
94,124      
69,219 
  
 
 
 
  
 
 
 
  
 
 
 
Adjusted EBITDA
  
$ 7,220,112     $ 6,255,110     $ 7,810,436 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related
and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains,
losses, or other charges, if any. 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, gains or losses associated
with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of
Blackstone’s operational performance. For the year ended December 31, 2024, this adjustment includes removal of an accrual for a liability for a legal
matter.
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(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 Revenues on a segment basis. The Segment Adjustment represents the add back of performance
revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation.
 
  
Year Ended December 31,
 
  
2024
  
2023
 
2022
 
  
 
  
 
 
 
 
  
(Dollars in Thousands)
GAAP Unrealized Performance Allocations
  $371,407   $(1,691,668)   $(3,435,056) 
Segment Adjustment
   
—    
(120)    
(1,922) 
  
 
 
 
  
 
 
 
 
 
 
 
Unrealized Performance Revenues
  $371,407   $(1,691,788)   $(3,436,978) 
  
 
 
 
  
 
 
 
 
 
 
 
(e)
This adjustment removes Unrealized Performance Allocations Compensation.
(f)
This adjustment removes Unrealized Principal Investment Income 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.
 
  
Year Ended December 31,
 
  
2024
 
2023
 
2022
 
  
 
 
 
 
 
 
  
(Dollars in Thousands)
GAAP Unrealized Principal Investment Income (Loss)
  $ 380,591    $(603,154)   $(1,563,849) 
Segment Adjustment
    (108,723)    
9,853     
328,320 
  
 
 
 
 
 
 
 
 
 
 
 
Unrealized Principal Investment Income (Loss)
  $ 271,868    $(593,301)   $(1,235,529) 
  
 
 
 
 
 
 
 
 
 
 
 
(g)
This adjustment removes Other Revenues on a segment basis. The Segment Adjustment represents the removal of certain Transaction-Related and
Non-Recurring Items.
 
  
Year Ended December 31,
 
  
2024
 
2023
 
2022
 
  
 
 
 
 
 
 
  
(Dollars in Thousands)
GAAP Other Revenue
  $123,693    $(92,929)   $184,557 
Segment Adjustment
   
(527)    
(154)    
(803) 
  
 
 
 
 
 
 
 
 
 
 
 
Other Revenues
  $123,166    $(93,083)   $183,754 
  
 
 
 
 
 
 
 
 
 
 
 
(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.
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(j)
Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision
(Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. Related Payables represent tax-related payables including the amount
payable under the Tax Receivable Agreement. See “— Key Financial Measures and Indicators — Distributable Earnings” for the full definition of Taxes and
Related Payables.
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
 
  
 
  
 
  
 
 
  
(Dollars in Thousands)
Taxes
  $604,508    $580,925    $693,443  
Related Payables
    105,689      89,585      98,425  
  
 
 
 
  
 
 
 
  
 
 
 
Taxes and Related Payables
  $710,197    $670,510    $791,868  
  
 
 
 
  
 
 
 
  
 
 
 
(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.
 
  
Year Ended December 31,
 
  
2024
 
2023
 
2022
 
  
 
 
 
 
 
 
  
(Dollars in Thousands)
GAAP Interest and Dividend Revenue
  $411,159    $516,497    $271,612 
Segment Adjustment
   
(179)     19,144      13,463 
  
 
 
 
 
 
 
 
 
 
 
 
Interest and Dividend Revenue
    410,980      535,641      285,075 
  
 
 
 
 
 
 
 
 
 
 
 
GAAP Interest Expense
    443,688      431,868      317,225 
Segment Adjustment
   
729     
(2,347)    
(656) 
  
 
 
 
 
 
 
 
 
 
 
 
Interest Expense
    444,417      429,521      316,569 
  
 
 
 
 
 
 
 
 
 
 
 
Net Interest and Dividend Income (Loss)
  $ (33,437)   $106,120    $ (31,494) 
  
 
 
 
 
 
 
 
 
 
 
 
(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.
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The following tables are a reconciliation of Total GAAP Investments to Net Accrued Performance Revenues. Total GAAP Investments and Net Accrued
Performance Revenues consist of the following:
 
  
December 31,
 
  
2024
  
2023
 
  
 
  
 
 
  
(Dollars in Thousands)
Investments of Consolidated Blackstone Funds
  
$ 3,890,732    
$ 4,319,483 
Equity Method Investments
  
  
Partnership Investments
  
  6,546,728    
  5,924,275 
Accrued Performance Allocations
  
  12,397,366    
  10,775,355 
Corporate Treasury Investments
  
  1,147,328    
 
803,870 
Other Investments
  
  5,818,412    
  4,323,639 
  
 
 
 
  
 
 
 
Total GAAP Investments
  
$29,800,566    
$26,146,622 
  
 
 
 
  
 
 
 
Accrued Performance Allocations - GAAP
  
$12,397,366    
$10,775,355 
Due from Affiliates - GAAP (a)
  
 
489,086    
 
313,838 
Less: Net Realized Performance Revenues (b)
  
  (1,050,026)   
 
(552,249) 
Less: Accrued Performance Compensation - GAAP (c)
  
  (5,555,870)   
  (4,702,363) 
  
 
 
 
  
 
 
 
Net Accrued Performance Revenues
  
$ 6,280,556    
$ 5,834,581 
  
 
 
 
  
 
 
 
(a)
Represents GAAP accrued performance revenue recorded within Due from Affiliates.
(b) 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.
(c)
Represents GAAP accrued performance compensation associated with Accrued Performance Allocations and is recorded within Accrued Compensation
and Benefits and Due to Affiliates.
Liquidity and Capital Resources
General
Blackstone’s business model derives revenue primarily from third-party Assets Under Management. Blackstone is not a capital or balance sheet intensive
business and targets operating expense levels such that total management and advisory fees exceed total operating expenses each period. As a result, we
require limited capital resources to support the working capital or operating needs of our businesses. We draw primarily on the long-term committed or
invested capital of investors in our investment vehicles to fund the investment requirements of the Blackstone Funds and use our own realizations and cash
flows to invest in growth initiatives, make commitments to our own funds, where our minimum general partner commitments are generally less than 5% of
the limited partner commitments of a fund, and pay dividends to stockholders and distributions to holders of Holdings Units.
Fluctuations in our statement of financial condition result primarily from activities of the Blackstone Funds that are consolidated as well as business
transactions, such as the issuance of senior notes. The majority economic ownership interests of such consolidated Blackstone Funds are reflected as
Redeemable Non-Controlling Interests in Consolidated Entities, and Non-Controlling Interests in Consolidated Entities in the consolidated financial statements.
The consolidation of these Blackstone Funds has no net effect on Blackstone’s Net Income or Equity. Additionally, fluctuations in our statement of financial
condition also include appreciation or depreciation in Blackstone investments in the non-consolidated Blackstone Funds, additional investments and
redemptions of such interests in the non-consolidated Blackstone Funds and the collection of receivables related to management and advisory fees.
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Total Assets were $43.5 billion as of December 31, 2024, an increase of $3.2 billion from December 31, 2023. The increase in Total Assets was principally
due to an increase of $3.8 billion in total assets attributable to consolidated operating partnerships, partially offset by a decrease of $485.7 million in total
assets attributable to consolidated Blackstone funds.
•
 
The increase in total assets attributable to consolidated operating partnerships was primarily due to increases of $4.2 billion in Investments and
$938.6 million in Due from Affiliates, partially offset by a decrease of $983.7 million in Cash and Cash Equivalents.
o
The increase in Investments was primarily due to appreciation in our Private Equity segment.
o
The increase in Due from Affiliates was primarily due to an increase in amounts due from certain non-controlling interest holders and
Blackstone employees.
o
The decrease in Cash and Cash Equivalents was primarily due to ongoing operating activities.
•
 
The decrease in total assets attributable to consolidated Blackstone funds was primarily due to decreases of $428.8 million in Investments and
$112.1 million in Cash Held by Blackstone Funds and Other, which were primarily due to the deconsolidation of two CLOs during the year ended
December 31, 2024.
Total Liabilities were $24.0 billion as of December 31, 2024, an increase of $1.8 billion from December 31, 2023. The increase in Total Liabilities was
principally due to an increase of $2.6 billion in total liabilities attributable to consolidated operating partnerships, partially offset by a decrease of
$866.0 million in total liabilities attributable to consolidated Blackstone funds.
•
 
The increase in total liabilities attributable to consolidated operating partnerships was primarily due to increases of $839.9 million in Accrued
Compensation and Benefits, $837.5 million in Accounts Payable, Accrued Expenses and Other Liabilities and $616.5 million in Loans Payable.
o
The increase in Accrued Compensation and Benefits was primarily due to an increase in compensation-related accruals.
o
The increase in Accounts Payable, Accrued Expenses and Other Liabilities was primarily due to an increase in derivative liabilities.
o
The increase in Loans Payable was primarily due to the issuance of senior notes during the quarter ended December 31, 2024.
•
 
The decrease in total liabilities attributable to consolidated Blackstone funds was primarily due to decreases of $599.6 million in Loans Payable
and $322.4 million in Accounts Payable, Accrued Expenses and Other Liabilities, which were primarily due to the deconsolidation of two CLOs
during the year ended December 31, 2024.
Sources and Uses of Liquidity
On December 6, 2024, Blackstone, through its indirect subsidiary Blackstone Reg Finance Co. L.L.C., issued $750 million aggregate principal amount of
5.000% senior notes due December 6, 2034 pursuant to a Registration Statement on Form S-3. For additional information see Note 12. “Borrowings” in the
“Notes to Consolidated Financial Statements” in “— Item 8. Financial Statements and Supplementary Data” of this filing and “— Notable Transactions”.
We have multiple sources of liquidity to meet our capital needs, including annual cash flows, accumulated earnings in our businesses, the proceeds from
our issuances of senior notes and other borrowings, liquid investments we hold on our balance sheet and access to our $4.325 billion committed revolving
credit facility (the “Revolving Credit Facility”). As of December 31, 2024, Blackstone had $2.0 billion in Cash and Cash Equivalents, $1.1 billion invested in
Corporate Treasury Investments and $5.8 billion in Other Investments (which included $5.3 billion of liquid investments), against $11.3 billion in borrowings
from our bond issuances, and no borrowings outstanding under the Revolving Credit Facility. In February 2025, we drew $900.0 million under the Revolving
Credit Facility.
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In addition to the cash we receive from our notes offerings and availability under the Revolving Credit Facility and other borrowings, we expect to receive
(a) cash generated from operating activities, (b) Performance Revenue realizations, and (c) realizations on the fund investments that we make. The amounts
received from these three sources in particular may vary substantially from year to year and quarter to quarter depending on the frequency and size of
realization events or net returns experienced by our investment funds. Our available capital could be adversely affected if there are prolonged periods of few
substantial realizations from our investment funds accompanied by substantial capital calls for new investments from those investment funds. Therefore,
Blackstone’s commitments to our funds are taken into consideration when managing our overall liquidity and cash position.
We expect that our primary liquidity needs will be cash to (a) provide capital to facilitate the growth of our existing businesses, which includes, without
limitation, funding our general partner and co-investment commitments to our funds and warehousing investments for our funds, (b) provide capital for
business expansion, (c) pay operating expenses, including cash compensation to our employees, and other obligations as they arise, including servicing debts,
(d) pay income taxes and (e) pay dividends to our stockholders, make distributions to the holders of Blackstone Holdings Partnership Units and make
repurchases under our share repurchase program. For a tabular presentation of Blackstone’s contractual obligations and the expected timing of such see
“— Contractual Obligations.”
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Capital Commitments
Our own capital commitments to our funds, the funds we invest in and our investment strategies as of December 31, 2024 consisted of the following:
  
Blackstone and
General Partner (a)
  
Senior Managing Directors
and Certain Other
Professionals (b)
Fund
  
Original
Commitment   
Remaining
Commitment  
Original
Commitment  
Remaining
Commitment
  
 
  
 
  
 
  
 
  
(Dollars in Thousands)
Real Estate
  
  
  
  
BREP VII
   $ 300,000    $
22,665    $ 100,000    $
7,555 
BREP VIII
    
300,000     
31,334      100,000     
10,445 
BREP IX
    
300,000     
46,352      100,000     
15,451 
BREP X
    
300,000      202,928      100,000     
67,643 
BREP Europe III
    
100,000     
11,257     
35,000     
3,752 
BREP Europe IV
    
130,000     
19,109     
43,333     
6,370 
BREP Europe V
    
150,000     
16,097     
43,333     
4,650 
BREP Europe VI
    
130,000     
40,173     
43,333     
13,391 
BREP Europe VII
    
130,000     
97,712     
43,333     
32,571 
BREP Asia I
    
50,392     
10,342     
16,797     
3,447 
BREP Asia II
    
70,707     
12,525     
23,569     
4,175 
BREP Asia III
    
81,078     
52,598     
27,026     
17,533 
BREDS III
    
50,000     
11,721     
16,667     
3,907 
BREDS IV
    
50,000     
15,751     
49,113     
15,471 
BREDS V
    
50,000     
42,448     
48,070     
40,809 
BPP
    
232,243     
23,559     
—     
— 
Other (c)
    
41,986     
17,529     
—     
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Real Estate
     2,466,406      674,100      789,574      247,170 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
continued...
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Blackstone and
General Partner (a)
  
Senior Managing Directors
and Certain Other
Professionals (b)
Fund
  
Original
Commitment  
Remaining
Commitment  
Original
Commitment  
Remaining
Commitment
  
 
  
 
  
 
  
 
  
(Dollars in Thousands)
Private Equity
  
  
  
  
BCP V
     629,356     
30,642     
—     
— 
BCP VI
     719,718     
81,400      250,000     
28,275 
BCP VII
     500,000     
30,128      225,000     
13,557 
BCP VIII
     500,000      154,646      225,000     
69,590 
BCP IX
     500,000      500,000      225,000      225,000 
BEP I
    
50,000     
4,728     
—     
— 
BEP II
    
80,000     
12,018     
26,667     
4,006 
BEP III
    
80,000     
32,198     
26,667     
10,733 
BETP IV
    
80,000     
80,000     
26,667     
26,667 
BCEP I
     117,747     
27,016     
18,992     
4,358 
BCEP II
     160,000     
98,311     
32,640     
20,055 
BCP Asia I
    
40,000     
5,869     
13,333     
1,956 
BCP Asia II
     100,000     
70,478     
33,333     
23,493 
Tactical Opportunities
     492,772      196,071      164,257     
65,357 
Secondaries
    1,501,922      702,125     1,166,636      563,675 
BIP
     428,876     
74,227     
—     
— 
BXLS
     173,414      100,269     
37,350     
21,298 
BXG
     166,154      106,351     
54,607     
34,829 
Other (c)
     290,209     
29,163     
—     
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Private Equity
    6,610,168     2,335,640     2,526,149     1,112,849 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Credit & Insurance
  
  
  
  
Mezzanine / Opportunistic II
     120,000     
29,059      110,101     
26,662 
Mezzanine / Opportunistic III
     130,783     
34,664     
98,118     
26,006 
Mezzanine / Opportunistic IV
     122,000     
57,092      115,979     
54,275 
Mezzanine / Opportunistic V
    
63,252     
63,252     
21,084     
21,084 
Stressed / Distressed II
     125,000     
51,695      119,878     
49,576 
Stressed / Distressed III
     151,000     
93,648      146,432     
90,815 
Energy I
    
80,000     
36,700     
75,445     
34,611 
Energy II
     150,000      103,458      149,036      102,793 
Green Energy III
     127,000     
98,481      119,036     
92,305 
Energy SMAs
    
53,937     
25,956     
2,528     
1,130 
European Senior Debt I
    
63,000     
5,084     
56,882     
4,590 
European Senior Debt II
    
92,288     
32,492     
89,599     
31,589 
European Senior Debt III
    
23,870     
13,715     
7,957     
4,572 
Credit Alpha Fund
    
52,102     
19,752     
50,670     
19,209 
Credit Alpha Fund II
    
25,500     
12,550     
24,385     
12,001 
Direct Lending SMAs
    
87,253     
52,556     
16,328     
8,887 
Other (c)
    
77,923     
26,264     
34,985     
4,308 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Credit & Insurance
    1,544,908      756,415     1,238,443      584,413 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
continued...
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Blackstone and
General Partner (a)
  
Senior Managing Directors
and Certain Other
Professionals (b)
Fund
  
Original
Commitment   
Remaining
Commitment   
Original
Commitment   
Remaining
Commitment
  
 
  
 
  
 
  
 
  
(Dollars in Thousands)
Multi-Asset Investing
  
  
  
  
Strategic Alliance II
   
50,000    
1,482    
—    
— 
Strategic Alliance III
   
22,000    
23,617    
—    
— 
Strategic Alliance IV
   
15,000    
10,712    
—    
— 
Dislocation
   
20,000    
12,322    
—    
— 
Other (c)
   
4,775    
2,240    
—    
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Multi-Asset Investing
   
111,775    
50,373    
—    
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Other
  
  
  
  
Treasury (d)
   
2,758,552     2,563,381    
—    
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $ 13,491,809   $ 6,379,912   $ 4,554,166   $ 1,944,432 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
We expect our commitments to be drawn down over time and to be funded by available cash and cash generated from operations and realizations.
Taking into account prevailing market conditions and both the liquidity and cash or liquid investment balances, we believe that the sources of liquidity
described above will be more than sufficient to fund our working capital requirements. Additionally, for some of the general partner commitments shown
in the table above, we require our senior managing directors and certain other professionals to fund a portion of the commitment even though the
ultimate obligation to fund the aggregate commitment is ours pursuant to the governing agreements of the respective funds. The amounts of the
aggregate applicable general partner original and remaining commitment are shown in the table above. Remaining commitment may exceed original
commitment due to recallable capital.
(b) Includes the full portion of our commitments (1) required to be funded by senior managing directors and certain other professionals and (2) that are
elected by such individuals to be funded for the life of a fund, where such fund permits such election. Excludes amounts that are elected by such
individuals to be funded on an annual basis and certain de minimis commitments funded by such individuals in certain carry funds.
(c)
Represents capital commitments to a number of other funds in each respective segment.
(d) Represents loan origination commitments, revolver commitments and capital market commitments.
For a tabular presentation of the timing of Blackstone’s remaining capital commitments to our funds, the funds we invest in and our investment strategies
see “— Contractual Obligations”.
Borrowings
As of December 31, 2024, Blackstone Holdings Finance Co. L.L.C. and Blackstone Reg Finance Co. L.L.C. (each an “Issuer” and together the “Issuers”), both
indirect subsidiaries of Blackstone, had issued and outstanding the following senior notes (collectively the “Notes”):
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Senior Notes (a)
  
Aggregate
Principal
Amount
(Dollars/Euros
in Thousands)
2.000%, Due 5/19/2025
  
€
300,000 
1.000%, Due 10/5/2026
  
€
600,000 
3.150%, Due 10/2/2027
  
$
300,000 
5.900%, Due 11/3/2027
  
$
600,000 
1.625%, Due 8/5/2028
  
$
650,000 
1.500%, Due 4/10/2029
  
€
600,000 
2.500%, Due 1/10/2030
  
$
500,000 
1.600%, Due 3/30/2031
  
$
500,000 
2.000%, Due 1/30/2032
  
$
800,000 
2.550%, Due 3/30/2032
  
$
500,000 
6.200%, Due 4/22/2033
  
$
900,000 
3.500%, Due 6/1/2034
  
€
500,000 
5.000%, Due 12/6/2034 (b)
  
$
750,000 
6.250%, Due 8/15/2042
  
$
250,000 
5.000%, Due 6/15/2044
  
$
500,000 
4.450%, Due 7/15/2045
  
$
350,000 
4.000%, Due 10/2/2047
  
$
300,000 
3.500%, Due 9/10/2049
  
$
400,000 
2.800%, Due 9/30/2050
  
$
400,000 
2.850%, Due 8/5/2051
  
$
550,000 
3.200%, Due 1/30/2052
  
$ 1,000,000 
  
 
 
 
  
$11,320,800 
  
 
 
 
(a)
The Notes are unsecured and unsubordinated obligations of the Issuers, as applicable, and are fully and unconditionally guaranteed, jointly and severally,
by Blackstone Inc. and each of the Blackstone Holdings Partnerships (the “Guarantors”). The Notes contain customary covenants and financial restrictions
that, among other things, limit the Issuers and the guarantors’ ability, subject to certain exceptions, to incur indebtedness secured by liens on voting
stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The Notes also contain customary
events of default. All or a portion of the Notes may be redeemed at our option, in whole or in part, at any time and from time to time, prior to their
stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the Notes are subject to
repurchase at the repurchase price as set forth in the Notes.
(b) The Registered 2034 Notes’ Guarantors and Issuer, Blackstone Reg Finance Co. L.L.C. (collectively, the “Obligor Group”) do not have material assets,
liabilities and results of operations, with the exception of certain amounts already disclosed in our consolidated financial statements (specifically,
goodwill, the majority of our deferred tax assets, the Tax Receivable Agreement liability and the Registered 2034 Notes). Therefore, we have excluded the
summarized financial information for the Obligor Group due to management’s belief that such summarized financial information would be repetitive and
would not provide material information to investors. For additional information see “— Notable Transactions” and Note 12. “Borrowings” in the “Notes
to Consolidated Financial Statements” in “— Item 8. Financial Statements and Supplementary Data” of this filing.
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Blackstone, through Blackstone Holdings Finance Co. L.L.C., has a $4.325 billion unsecured revolving credit facility (the “Revolving Credit Facility”) with
Citibank, N.A., as administrative agent with a maturity date of December 15, 2028. Borrowings may also be made in U.K. sterling, euros, Swiss francs,
Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and
events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under
management, each tested quarterly.
For a tabular presentation of the payment timing of principal and interest due on Blackstone’s issued notes and the Revolving Credit Facility see
“— Contractual Obligations”.
Contractual Obligations
The following table sets forth information relating to our contractual obligations as of December 31, 2024 on a consolidated basis and on a basis
deconsolidating the Blackstone Funds:
Contractual Obligations
  
2025
 
2026-2027
 
2028-2029
 
Thereafter
 
Total
  
 
 
 
 
 
 
 
 
 
  
(Dollars in Thousands)
Operating Lease Obligations (a)
  $
180,493    $
367,948    $
380,512    $
919,296    $ 1,848,249 
Purchase Obligations
   
126,174     
148,459     
19,991     
976     
295,600 
Blackstone Operating Borrowings (b)
   
318,843      1,538,876      1,285,330     
8,217,700      11,360,749 
Interest on Blackstone Operating Borrowings (c)
   
422,762     
825,184     
714,130     
3,368,535     
5,330,611 
Borrowings of Consolidated Blackstone Funds
   
—     
—     
—     
99,419     
99,419 
Interest on Borrowings of Consolidated Blackstone Funds
   
—     
15,662     
15,662     
14,032     
45,356 
Blackstone Funds Capital Commitments to Investee Funds (d)
   
127,215     
—     
—     
—     
127,215 
Due to Certain Non-Controlling Interest Holders in Connection with Tax Receivable
Agreements (e)
   
43,954     
205,716     
252,970     
1,342,197     
1,844,837 
Unrecognized Tax Benefits, Including Interest and Penalties (f)
   
—     
—     
—     
—     
— 
Blackstone Operating Entities Capital Commitments to Blackstone Funds and Other
(g)
    6,379,912     
—     
—     
—     
6,379,912 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Contractual Obligations
    7,599,353      3,101,845      2,668,595      13,962,155      27,331,948 
Borrowings of Consolidated Blackstone Funds
   
—     
—     
—     
(99,419)    
(99,419) 
Interest on Borrowings of Consolidated Blackstone Funds
   
—     
(15,662)    
(15,662)    
(14,032)    
(45,356) 
Blackstone Funds Capital Commitments to Investee Funds (d)
   
(127,215)    
—     
—     
—     
(127,215) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Blackstone Operating Entities Contractual Obligations
  $7,472,138    $3,086,183    $2,652,933    $13,848,704    $27,059,958 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
We lease our primary office space and certain office equipment under agreements that expire through 2043. Occupancy lease agreements, in addition to
contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the
extent these are fixed or determinable they are included in the table above. The table above includes operating leases that are recognized as Operating
Lease Liabilities, short-term leases that are not recorded as Operating Lease Liabilities and leases that have been signed but not yet commenced which
are not recorded as Operating Lease Liabilities. The amounts in this table are presented net of contractual sublease commitments.
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(b) Represents the principal amounts due on our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the
borrowings are held until their final maturity. For our secured borrowings we project prepayments based on the performance of the underlying assets
and principal may be paid down in full prior to their stated maturity. As of December 31, 2024, we had no borrowings outstanding under the Revolving
Credit Facility. In February 2025, we drew $900.0 million under the Revolving Credit Facility.
(c)
Represents interest to be paid over the maturity of our senior notes and secured borrowings. For our senior notes, we assume no pre-payments and the
borrowings are held until their final maturity. For our secured borrowings, we project pre-payments based on the performance of the underlying assets
with interest payments based on the estimated principal outstanding, inclusive of projected pre-payments. These amounts include commitment fees for
unutilized borrowings under the Revolving Credit Facility.
(d) These obligations represent commitments of the consolidated Blackstone Funds to make capital contributions to investee funds and portfolio companies.
These amounts are generally due on demand and are therefore presented in the less than one year category.
(e)
Represents obligations by Blackstone’s corporate subsidiary to make payments under the Tax Receivable Agreements to certain non-controlling interest
holders for the tax savings realized from the taxable purchases of their interests in connection with the reorganization at the time of Blackstone’s IPO in
2007 and subsequent purchases. The obligation represents the amount of the payments currently expected to be made, which are dependent on the tax
savings actually realized as determined annually without discounting for the timing of the payments. As required by GAAP, the amount of the obligation
included in the consolidated financial statements and shown in Note 17. “Related Party Transactions” (see “ — Item 8. Financial Statements and
Supplementary Data”) differs to reflect the net present value of the payments due to certain non-controlling interest holders.
(f)
Blackstone is not able to make a reasonably reliable estimate of the timing of payments in individual years in connection with gross unrecognized
benefits of $250.9 million and interest of $87.3 million as of December 31, 2024; therefore, such amounts are not included in the above contractual
obligations table.
(g)
These obligations represent commitments by us to provide general partner capital funding to the Blackstone Funds, limited partner capital funding to
other funds and Blackstone principal investment commitments. These amounts are generally due on demand and are therefore presented in the less
than one year category; however, a substantial amount of the capital commitments are expected to be called over the next three years. We expect to
continue to make these general partner capital commitments as we raise additional amounts for our investment funds over time.
Guarantees
Blackstone and certain of its consolidated funds provide financial guarantees. The amounts and nature of these guarantees are described in Note 18.
“Commitments and Contingencies — Contingencies — Guarantees” in the “Notes to Consolidated Financial Statements” in “— Item 8. Financial Statements
and Supplementary Data” of this filing.
Indemnifications
In many of its service contracts, Blackstone agrees to indemnify the third-party service provider under certain circumstances. The terms of the
indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined and has not been included in the above
contractual obligations table or recorded in our consolidated financial statements as of December 31, 2024.
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Clawback Obligations
Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceed the
amount due to Blackstone based on cumulative results of that fund. The amounts and nature of Blackstone’s clawback obligations are described in Note 18.
“Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Consolidated Financial Statements” in “ — Item 8.
Financial Statements and Supplementary Data” of this filing.
Share Repurchase Program
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership
Units. This authorization replaced Blackstone’s prior $2.0 billion repurchase authorization. Under the repurchase program, repurchases may be made from
time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual number repurchased will depend on a
variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or
discontinued at any time and does not have a specified expiration date.
During the year ended December 31, 2024, Blackstone repurchased 4.0 million shares of common stock at a total cost of $520.4 million. As of
December 31, 2024, the amount remaining available for repurchases under the program was $1.8 billion.
Dividends
Our 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 our board of directors to be necessary or appropriate to provide for the conduct of our business,
to make appropriate investments in our business and funds, to comply with applicable law, any of our debt instruments or other agreements, or to provide for
future cash requirements such as tax-related payments, clawback obligations and dividends to stockholders for any ensuing quarter. The dividend amount
could also be adjusted upward in any one quarter.
For Blackstone’s definition of Distributable Earnings, see “—Key Financial Measures and Indicators.”
All of the foregoing is subject to the qualification that the declaration and payment of any dividends are at the sole discretion of our 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.
Because the publicly traded entity and/or its wholly owned subsidiaries must pay taxes and make payments under the tax receivable agreements, the
amounts ultimately paid as dividends by Blackstone to common stockholders in respect of each fiscal year are generally expected to be less, on a per share or
per unit basis, than the amounts distributed by the Blackstone Holdings Partnerships to the Blackstone personnel and others who are limited partners of the
Blackstone Holdings Partnerships in respect of their Blackstone Holdings Partnership Units.
Dividends are treated as qualified dividends to the extent of Blackstone’s current and accumulated earnings and profits, with any excess dividends
treated as a return of capital to the extent of the stockholder’s basis.
The following graph shows fiscal quarterly and annual per common stockholder dividends for 2024, 2023 and 2022. Dividends are declared and paid in
the quarter subsequent to the quarter in which they are earned.
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With respect to fiscal year 2024, we paid to stockholders of our common stock a dividend of $0.83, $0.82, $0.86 and $1.44 per share in respect of the
first, second, third and fourth quarters, respectively, aggregating to $3.95 per share of common stock. With respect to fiscal years 2023 and 2022, we paid
stockholders of our common stock aggregate dividends of $3.35 per share and $4.40 per share, respectively.
Leverage
We may under certain circumstances use leverage opportunistically and over time to create the most efficient capital structure for Blackstone and our
stockholders. In addition to the borrowings from our note issuances and our revolving credit facility, we may use asset based financing arrangements,
including but not limited to, margin loans, reverse repurchase agreements, repurchase agreements and securities sold, not yet purchased. Reverse repurchase
agreements are entered into primarily to take advantage of opportunistic yields otherwise absent in the overnight markets and also to use the collateral
received to cover securities sold, not yet purchased. Repurchase agreements are entered into primarily to opportunistically yield higher spreads on purchased
securities. The balances held in these financial instruments fluctuate based on Blackstone’s liquidity needs, market conditions and investment risk profiles.
The following table presents information regarding these financial instruments which are included in Accounts Payable, Accrued Expenses and Other
Liabilities in our Consolidated Statements of Financial Condition:
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Repurchase
Agreements  
Securities
Sold, Not Yet
Purchased
  
 
  
 
  
(Dollars in Millions)
Balance, December 31, 2024
  
$
6.8   
$
1.9 
Balance, December 31, 2023
  
$
—   
$
3.9 
Year Ended December 31, 2024
  
  
Average Daily Balance
  
$
56.8   
$
3.7 
Maximum Daily Balance
  
$
268.5   
$
4.0 
Critical Accounting Policies
We prepare our consolidated financial statements in accordance with GAAP. In applying many of these accounting principles, we need to make
assumptions, estimates and/or judgments that affect the reported amounts of assets, liabilities, revenues and expenses in our consolidated financial
statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable under the circumstances.
These assumptions, estimates and/or judgments, however, are often subjective. Actual results may be affected negatively based on changing circumstances. If
actual amounts are ultimately different from our estimates, the revisions are included in our results of operations for the period in which the actual amounts
become known. We believe the following critical accounting policies could potentially produce materially different results if we were to change underlying
assumptions, estimates and/or judgments. For a description of our accounting policies, see Note 2. “Summary of Significant Accounting Policies” in the “Notes
to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data” of this filing.
Principles of Consolidation
For a description of our accounting policy on consolidation, see Note 2. “Summary of Significant Accounting Policies — Consolidation” and Note 8.
“Variable Interest Entities” in the “Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data” for detailed
information on Blackstone’s involvement with VIEs. The following discussion is intended to provide supplemental information about how the application of
consolidation principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment.
The determination that Blackstone holds a controlling financial interest in a Blackstone Fund or investment vehicle significantly changes the presentation
of our consolidated financial statements. In our Consolidated Statements of Financial Position included in this filing, we present 100% of the assets and
liabilities of consolidated VIEs along with a non-controlling interest which represents the portion of the consolidated vehicle’s interests held by third parties.
However, assets of our consolidated VIEs can only be used to settle obligations of the consolidated VIE and are not available for general use by Blackstone.
Further, the liabilities of our consolidated VIEs do not have recourse to the general credit of Blackstone. In the Consolidated Statements of Operations, we
eliminate any management fees, Incentive Fees, or Performance Allocations received or accrued from consolidated VIEs as they are considered intercompany
transactions. We recognize 100% of the consolidated VIE’s investment income (loss) and allocate the portion of that income (loss) attributable to third-party
ownership to non-controlling interests in arriving at Net Income Attributable to Blackstone Inc.
The assessment of whether we consolidate a Blackstone Fund or investment vehicle we manage requires the application of significant judgment. These
judgments are applied both at the time we become involved with the VIE and on an ongoing basis and include, but are not limited to:
•
 
Determining whether our management fees, Incentive Fees or Performance Allocations represent variable interests — We make judgments as to
whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we
consider, among other things, the extent of third-party investment in the entity and the terms of any other interests we hold in the VIE.
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•
 
Determining whether kick-out rights are substantive — We make judgments as to whether the third-party investors in a partnership entity have
the ability to remove the general partner, the investment manager or its equivalent, or to dissolve (liquidate) the partnership entity, through a
simple majority vote. This includes an evaluation of whether barriers to exercise these rights exist.
•
 
Concluding whether Blackstone has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE
— As there is no explicit threshold in GAAP to define “potentially significant,” management must apply judgment and evaluate both quantitative
and qualitative factors to conclude whether this threshold is met.
Revenue Recognition
For a description of our accounting policy on revenue recognition, see Note 2. “Summary of Significant Accounting Policies — Revenue Recognition” in
the “Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data.” For an additional description of the nature of
our revenue arrangements, including how management fees, Incentive Fees, and Performance Allocations are generated, please refer to “Part I. Item 1.
Business — Fee Structure/Incentive Arrangements.” The following discussion is intended to provide supplemental information about how the application of
revenue recognition principles impact our financial results, and management’s process for implementing those principles including areas of significant
judgment.
Management and Advisory Fees, Net — Blackstone earns base management fees from its customers at a fixed percentage of a calculation base. The
range of management fee rates and the calculation base from which they are earned, generally, are as follows:
For vehicles within the Real Estate segment:
•
 
0.35% to 1.50% of committed capital or invested capital during the investment period or subsequent to the investment period, respectively, for
certain drawdown vehicles and co-investment vehicles,
•
 
0.40% to 1.25% of net asset value for other vehicles, including separately managed accounts, certain perpetual capital vehicles, drawdown
vehicles, and co-investment vehicles, and
•
 
1.50% of BXMT’s net proceeds received from equity offerings and accumulated “distributable earnings” (which is generally equal to its GAAP net
income excluding certain non-cash and other items), subject to certain adjustments.
For vehicles within the Private Equity segment:
•
 
0.40% to 1.75% of committed capital during the investment period or invested capital or gross investment value subsequent to the investment
period for drawdown vehicles and certain co-investment vehicles,
•
 
0.50% to 1.75% of invested capital for separately managed accounts and certain co-investment vehicles, and
•
 
0.75% to 1.25% of net asset value for perpetual capital vehicles.
For vehicles within the Credit & Insurance segment:
•
 
0.20% to 1.25% of net asset value or fair value of investments for certain separately managed accounts and open-ended vehicles,
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•
 
0.35% to 1.25% of net asset value or gross asset value of our BDCs and certain registered investment companies,
•
 
0.20% to 0.50% of the aggregate par amount of collateral assets, including principal cash, for CLO vehicles, and
•
 
0.20% to 1.50% of invested capital for drawdown vehicles and certain separately managed accounts.
For vehicles within the Multi-Asset Investing segment:
•
 
0.20% to 1.50% of net asset value for all vehicles.
Management fee calculations based on committed capital or invested capital are mechanical in nature and therefore do not require the use of significant
estimates or judgments. Management fee calculations based on net asset value, gross asset value, or investment fair value depend on the fair value of the
underlying investments within the funds. Estimates and assumptions are made when determining the fair value of the underlying investments within the
funds and could vary depending on the valuation methodology that is used as well as economic conditions. See “ — Fair Value” below for further discussion of
the judgment required for determining the fair value of the underlying investments.
Investment Income (Loss) — Performance Allocations are made to the general partner based on cumulative fund performance to date, subject to a
preferred return to limited partners. Blackstone has concluded that investments made alongside its limited partners in a partnership which entitle Blackstone
to a Performance Allocation represent equity method investments that are not in the scope of the GAAP guidance on accounting for revenues from contracts
with customers. Blackstone accounts for these arrangements under the equity method of accounting. Under the equity method, Blackstone’s share of
earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value
(“HLBV”) method. Under the HLBV method, at the end of each reporting period Blackstone calculates the accrued Performance Allocations that would be due
to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of
whether such amounts have been realized. Performance Allocations are subject to clawback to the extent that the Performance Allocation received to date
exceeds the amount due to Blackstone based on cumulative results.
The change in the fair value of the investments held by certain Blackstone Funds is a significant input into the accrued Performance Allocation calculation
and accrual for potential repayment of previously received Performance Allocations. Estimates and assumptions are made when determining the fair value of
the underlying investments within the funds. See “ — Fair Value” below for further discussion related to significant estimates and assumptions used for
determining fair value of the underlying investments.
Fair Value
Blackstone uses fair value throughout the reporting process. For a description of our accounting policies related to valuation, see Note 2. “Summary of
Significant Accounting Policies — Fair Value of Financial Instruments” and “Summary of Significant Accounting Policies — Investments, at Fair Value” in the
“Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data” of this filing. The following discussion is intended
to provide supplemental information about how the application of fair value principles impact our financial results, and management’s process for
implementing those principles including areas of significant judgment.
The fair value of the investments held by Blackstone Funds is the primary input to the calculation of certain of our management fees, Incentive Fees,
Performance Allocations and the related Compensation we recognize. Generally, Blackstone Funds are accounted for in accordance with the GAAP guidance
on investment companies, and under the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment
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Companies, and reflect their investments, including majority-owned and controlled investments, at fair value. In the absence of observable market prices, we
utilize valuation methodologies applied on a consistent basis and assumptions that we believe market participants would use to determine the fair value of
the investments. For investments where little market activity exists management’s determination of fair value is based on the best information available in the
circumstances, which may incorporate management’s own assumptions and involves a significant degree of judgment, and the consideration of a combination
of internal and external factors, including the appropriate risk adjustments for non-performance and liquidity risks.
Blackstone has also elected the fair value option for certain instruments it owns directly, including loans and receivables, investments in private debt
securities and other proprietary investments. Blackstone is required to measure certain financial instruments at fair value, including debt instruments, equity
securities and freestanding derivatives.
Fair Value of Investments or Instruments that are Publicly Traded
Securities that are publicly traded and for which a quoted market exists will be valued at the closing price of such securities in the principal market in
which the security trades, or in the absence of a principal market, in the most advantageous market on the valuation date. When a quoted price in an active
market exists, no block discounts or control premiums are permitted regardless of the size of the public security held. In some cases, securities will include
legal and contractual restrictions limiting their purchase and sale for a period of time. A discount to the publicly traded price may be appropriate in instances
where a legal restriction is a characteristic of the security, such as may be required under SEC Rule 144. The amount of the discount, if taken, shall be
determined based on the time period that must pass before the restricted security becomes unrestricted or otherwise available for sale.
Fair Value of Investments or Instruments that are not Publicly Traded
Investments for which market prices are not observable include private investments in the equity or debt of operating companies or real estate
properties. Our primary methodology for determining the fair values of such investments is generally the income approach which provides an indication of
fair value based on the present value of cash flows that a business, security, or property is expected to generate in the future. The most widely used
methodology under the income approach is the discounted cash flow method which includes significant assumptions about the underlying investment’s
projected net earnings or cash flows, discount rate, capitalization rate and exit multiple. Our secondary methodology, generally used to corroborate the
results of the income approach, is typically the market approach. The most widely used methodology under the market approach relies upon valuations for
comparable public companies, transactions, or assets, and includes making judgments about which companies, transactions, or assets are comparable.
Depending on the facts and circumstances associated with the investment, different primary and secondary methodologies may be used including option
value, contingent claims or scenario analysis, yield analysis, projected cash flow through maturity or expiration, discount to sale, probability weighted
methods or recent round of financing.
In certain cases debt and equity securities are valued on the basis of prices from an orderly transaction between market participants provided by
reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to
transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships
between investments.
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Management Process on Fair Value
Due to the importance of fair value throughout the consolidated financial statements and the significant judgment required to be applied in arriving at
those fair values, we have developed a process around valuation that incorporates several levels of approval and review from both internal and external
sources. Investments held by Blackstone Funds and investment vehicles are valued on at least a quarterly basis by our internal valuation or asset management
teams, which are independent from our investment teams. For investments held by vehicles managed by more than one business unit, Blackstone has
developed a process designed to facilitate coordination and alignment, as appropriate, of the fair value of in-scope investments across business units.
For investments valued utilizing the income method and where Blackstone has information rights, we generally have a direct line of communication with
each of the companies’ and underlying assets’ finance teams and collect financial data used to support projections used in a discounted cash flow analysis.
The valuation team then analyzes the data received and updates the valuation models reflecting any changes in the underlying cash flow projections,
weighted-average cost of capital, exit multiple or capitalization rate, and any other valuation input relevant to economic conditions.
The results of all valuations of investments held by Blackstone Funds and investment vehicles are reviewed by the relevant business unit’s valuation
sub-committee, which is comprised of key personnel from the business unit, typically the chief investment officer, chief operating officer, chief financial
officer, chief compliance officer (or their respective equivalents where applicable) and other senior managing directors in the business. To further corroborate
results, each business unit also generally obtains either a positive assurance opinion or a range of value from an independent valuation party, at least annually
for internally prepared valuations for investments that have been held by Blackstone Funds and investment vehicles for greater than a year and quarterly for
certain investments. Our firmwide valuation committee, chaired by our Chief Financial Officer and comprised of senior members of our businesses and
representatives from corporate functions, including legal and finance, reviews the valuation process for investments held by us and our investment vehicles,
including the application of appropriate valuation standards on a consistent basis. Each quarter, the valuation process is also reviewed by the audit committee
of our board of directors, which is comprised of our non-employee directors.
Income Tax
For a description of our accounting policy on taxes and additional information on taxes see Note 2. “Summary of Significant Accounting Policies” and
Note 14. “Income Taxes,” in the “Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data” of this filing.
Our provision for income taxes is comprised of current and deferred taxes. Current income taxes approximate taxes to be paid or refunded for the current
period. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and
are measured using the applicable enacted tax rates and laws that will be in effect when such differences are expected to reverse.
Additionally, significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax balances (including any
valuation allowance), accrued interest or penalties and uncertain tax positions. In evaluating these judgments, we consider, among other items, projections of
taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax
operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that
Blackstone uses to manage its business. To the extent any portion of the deferred tax assets are not considered to be more likely than not to be realized, a
valuation allowance is recorded.
Revisions in estimates and/or actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax
benefits, if any.
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Recent Accounting Developments
Information regarding recent accounting developments and their impact on Blackstone, if any, can be found in Note 2. “Summary of Significant
Accounting Policies” in the “Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data” of this filing.
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Our predominant exposure to market risk is related to our role as general partner or investment adviser to the Blackstone Funds and the sensitivities to
movements in the fair value of their investments, including the effect on management fees, performance revenues and investment income. See “Part I. —
Item 1. Business — Investment Process and Risk Management.”
Effect on Fund Management Fees
Blackstone earns base management fees from its customers at a fixed percentage of a calculation base. For a description of our accounting policy on
revenue recognition and management fee calculation bases, generally, see Note 2. “Summary of Significant Accounting Policies — Revenue Recognition” in
the “Notes to Consolidated Financial Statements” in “ — Item 8. Financial Statements and Supplementary Data.” Management fees will only be directly
affected by short-term changes in market conditions to the extent they are based on NAV, gross asset value (“GAV”), or represent permanent impairments of
value. These management fees will be increased (or reduced) in direct proportion to the effect of changes in the fair value of our investments in the related
funds. The proportion of our management fees that are based on NAV or GAV is dependent on the number and types of Blackstone Funds, vehicles, or
separately managed accounts in existence and the current stage of each fund’s life cycle. For the years ended December 31, 2024 and December 31, 2023, the
percentages of our fund management fees based on the NAV or GAV of the applicable funds or separately managed accounts, were as follows:
 
   Year Ended December 31,
  
2024
 
2023
Fund Management Fees Based on the NAV or GAV of the Applicable Funds or Separately Managed Accounts
   
47% 
   
47% 
Market Risk
The Blackstone Funds hold investments which are reported at fair value and Blackstone invests directly in securities measured at fair value. Based on the
fair value as of December 31, 2024 and December 31, 2023, we estimate that a 10% decline in the fair value of investments, excluding equity securities
without a readily determinable fair value measured in accordance with the measurement alternative, and certain freestanding derivative instruments would
result in the following declines in Management and Advisory Fees, Net, Unrealized Performance Allocations, Net and Unrealized Principal Investment Income:
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December 31,
  
2024
  
2023
  
Management
and Advisory
Fees, Net (a)   
Unrealized
Performance
Allocations,
Net (b)
  
Unrealized
Principal
Investment
Income (c)   
Management
and Advisory
Fees, Net (a)   
Unrealized
Performance
Allocations,
Net (b)
  
Unrealized
Principal
Investment
Income (c)
  
 
  
 
  
 
  
 
  
 
  
 
  
(Dollars in Thousands)
10% Decline in Fair Value of the Investments
   $ 424,575    $2,399,495    $802,964    $ 392,340    $2,172,376    $835,037 
(a)
Represents the annualized effect of the 10% decline.
(b) Represents the reporting date effect of the 10% decline. Presented net of Unrealized Performance Allocations Compensation.
(c)
Represents the reporting date effect of the 10% decline. Also includes the net effect of consolidated funds, which reflects the change on Net Gains from
Fund Investment Activities, net of Non-Controlling Interests.
The fair value of the investments, derivatives and securities subject to the market risk sensitivities can vary significantly based on a number of factors,
including the diversity of the Blackstone Funds’ investment portfolio, market conditions, trading values, similar transactions, financial metrics, and industry
comparatives. See “Part I. Item 1A. Risk Factors” above. Also see “ — Item 7. Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Critical Accounting Policies — Fair Value.” We believe these fair value amounts should be utilized with caution as our intent and strategy is to
hold investments and securities until prevailing market conditions are beneficial for investment sales.
Exchange Rate Risk
Blackstone and the Blackstone Funds hold investments that are denominated in non-U.S. dollar currencies that may be affected by movements in the rate
of exchange between the U.S. dollar and non-U.S. dollar currencies. Additionally, a portion of our management fees are denominated in non-U.S. dollar
currencies. We estimate that as of December 31, 2024 and December 31, 2023, a 10% decline in the rate of exchange of all foreign currencies against the U.S.
dollar would result in the following declines in Management and Advisory Fees, Net, Unrealized Performance Allocations, Net and Unrealized Principal
Investment Income:
  
December 31,
  
2024
  
2023
  
Management
and Advisory
Fees, Net (a)   
Unrealized
Performance
Allocations,
Net (b)(c)   
Unrealized
Principal
Investment
Income (b)  
Management
and Advisory
Fees, Net (a)   
Unrealized
Performance
Allocations,
Net (b)(c)   
Unrealized
Principal
Investment
Income (b)
  
 
  
 
  
 
  
 
  
 
  
 
  
(Dollars in Thousands)
10% Decline in the Rate of Exchange of All Foreign Currencies Against the
U.S. Dollar
   $
52,416    $ 683,852    $ 82,194    $
40,373    $ 596,201    $ 74,707 
(a)
Represents the annualized effect of the 10% decline.
(b) Represents the reporting date effect of the 10% decline.
(c)
Presented net of Unrealized Performance Allocations Compensation.
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Interest Rate Risk
Blackstone may have debt obligations payable that accrue interest at variable rates. Interest rate changes may therefore affect the amount of our interest
payments, future earnings and cash flows. As of December 31, 2024 and 2023, Blackstone had $39.9 million outstanding under the Secured Borrowings that is
subject to interest at a variable rate. The annualized increase in interest expense due to a 1% increase in interest rates would be $0.4 million as a result of
these borrowings for the year ended December 31, 2024 and 2023.
Blackstone has a diversified portfolio of liquid assets to meet the liquidity needs of various businesses. This portfolio includes cash, open-ended money
market mutual funds, open-ended bond mutual funds, marketable investment securities, freestanding derivative contracts, repurchase and reverse
repurchase agreements and other investments. If interest rates were to increase by one percentage point, we estimate that our annualized investment
income would decrease, offset by an estimated increase in interest income on an annual basis from interest on floating rate assets, as follows:
  
December 31,
  
2024
  
2023
  
Annualized
Decrease in
Investment
Income
 
Annualized
Increase in
Interest Income
from Floating
Rate Assets
  
Annualized
Decrease in
Investment
Income
 
Annualized
Increase in
Interest Income
from Floating
Rate Assets
  
 
 
 
  
 
 
 
  
(Dollars in Thousands)
One Percentage Point Increase in Interest Rates
  
$4,042 (a)  
$
4,807    
$6,504 (a)  
$
12,881 
(a)
As of December 31, 2024 and 2023, this represents 0.1% of our portfolio of liquid assets.
Blackstone has U.S. dollar and non-U.S. dollar based interest rate derivatives whose future cash flows and present value may be affected by movement in
their respective underlying yield curves. We estimate that as of December 31, 2024 and December 31, 2023, a one percentage point increase parallel shift in
global yield curves would result in the following impact on Other Revenue:
  
December 31,
  
2024
  
2023
  
 
  
 
  
(Dollars in Thousands)
Annualized Increase (Decrease) in Other Revenue Due to a One Percentage Point Increase in Interest Rates
   $ 2,388    $ 1,352 
Credit Risk
Certain Blackstone Funds and the Investee Funds are subject to certain inherent risks through their investments.
Our portfolio of liquid assets contains certain credit risks including, but not limited to, exposure to uninsured deposits with financial institutions,
unsecured corporate bonds and mortgage-backed securities. These exposures are actively monitored on a continuous basis and positions are reallocated
based on changes in risk profile, market or economic conditions.
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We estimate that our annualized investment income would decrease, if credit spreads were to increase by one percentage point, as follows:
  
December 31,
  
2024
  
2023
  
 
  
 
  
(Dollars in Thousands)
Decrease in Annualized Investment Income Due to a One Percentage Point Increase in Credit Spreads (a)
   $ 1,524    $ 5,343 
(a)
As of December 31, 2024 and 2023, this represents less than 0.1% and 0.1% of our portfolio of liquid assets, respectively.
Certain of our entities hold derivative instruments that contain an element of risk in the event that the counterparties may be unable to meet the terms
of such agreements. We minimize our risk exposure by limiting the counterparties with which we enter into contracts to banks and investment banks that
meet established credit and capital guidelines. We do not expect any counterparty to default on its obligations and therefore do not expect to incur any loss
due to counterparty default.
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Item 8.
Financial Statements and Supplementary Data
Index to Consolidated Financial Statements
   Page 
Report of Independent Registered Public Accounting Firm (PCAOB ID 34)
   153
Consolidated Statements of Financial Condition as of December 31, 2024 and 2023
   156
Consolidated Statements of Operations for the Years Ended December 31, 2024, 2023 and 2022
   158
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2024, 2023 and 2022
   159
Consolidated Statements of Changes in Equity for the Years Ended December 31, 2024, 2023 and 2022
   160
Consolidated Statements of Cash Flows for the Years Ended December 31, 2024, 2023 and 2022
   163
Notes to Consolidated Financial Statements
   165
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Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Blackstone Inc.:
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial condition of Blackstone Inc. and subsidiaries (“Blackstone”) as of December 31,
2024 and 2023, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the
period ended December 31, 2024, and the related notes (collectively referred to as the “financial statements”). We also have audited Blackstone’s internal
control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework (2013) issued by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Blackstone as of December 31,
2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with
accounting principles generally accepted in the United States of America. Also, in our opinion, Blackstone maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework (2013) issued by
COSO.
Basis for Opinions
Blackstone’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s report on internal control over
financial reporting. Our responsibility is to express an opinion on these financial statements and an opinion on Blackstone’s internal control over financial
reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and
are required to be independent with respect to Blackstone in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective
internal control over financial reporting was maintained in all material respects.
Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included
obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the
design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
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Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control
over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company, (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company, and (3) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation
of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of
compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or
required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion
on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical
audit matter or on the accounts or disclosures to which it relates.
Fair Value of Certain Underlying Investments to determine Performance Allocations and Accrued Performance Allocations — Refer to Notes 2 and 4 to the
financial statements
Critical Audit Matter Description
Blackstone, as a general partner, is entitled to an allocation of income from certain carry fund and open-ended structures (“Blackstone Funds”) assuming
certain investment returns are achieved, referred to as “Performance Allocations”. Performance Allocations are made based on either cumulative fund
performance to date, subject to a preferred return to limited partners or based on fund or vehicle performance over a period of time, subject to a high water
mark and preferred return to investors. The change in the fair value of the underlying investments held by the Blackstone Funds is the significant input into
this calculation.
As the fair value of underlying investments varies between reporting periods, adjustments are made to amounts recorded as Accrued Performance
Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation or (b) negative performance that would
cause the amount due to the general partner to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued
Performance Allocation to the general partner.
We considered the valuation of certain investments without readily determinable fair values used in the calculation of Performance Allocations and
Accrued Performance Allocations as a critical audit matter because of the valuation techniques, assumptions, market impacts and the degree of subjectivity of
certain unobservable inputs used in the valuation. Auditing the fair value of these investments required a high degree of auditor judgment and increased
effort, including the involvement of our internal fair value specialists as needed, who possess significant fair value methodology and modeling expertise.
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How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to testing the fair values of certain investments without readily determinable fair values included the following, among
others:
•
 
We assessed the design and tested the operating effectiveness of controls, including those related to management’s review of the techniques
and assumptions used in the determination of fair value.
•
 
We evaluated the appropriateness of management’s assumptions through independent analysis and comparison to external sources.
•
 
We utilized more experienced audit team members and, as needed, our internal fair value specialists, to assist in the evaluation of management’s
valuation methodologies and assumptions (or “inputs”).
•
 
We performed an iterative risk assessment and based on our evaluation altered the nature, timing and extent of our procedures to focus our
testing on the relevant inputs that required a higher degree of management judgment (e.g., cash flow projections, guideline public companies,
certain components of the discount rates, capitalization rates and exit multiples used in the calculation of the terminal value). Our procedures
included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing
those to the inputs used by management.
•
 
We evaluated management’s valuation methodologies and modeling techniques for appropriateness with the expected methodologies of market
participants in developing a fair value estimate.
•
 
We evaluated the impact of current market events and conditions, as well as relevant comparable transactions, on the valuation techniques and
assumptions used by management (e.g., industry and sector performance, cash flow projections, other market fundamentals, and interest rates).
•
 
When applicable, we inspected industry reports to evaluate the consistency of current valuations with expected industry performance and
inclusion of significant economic or industry events.
•
 
We evaluated management’s ability to accurately estimate fair value by comparing previous estimates of fair value to subsequent executed
investment transactions with third parties.
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 28, 2025
We have served as Blackstone’s auditor since 2006.
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Blackstone Inc.
Consolidated Statements of Financial Condition
(Dollars in Thousands, Except Share Data)
  
December 31,
2024
 
December 31,
2023
Assets
  
 
Cash and Cash Equivalents
   $ 1,972,140   $ 2,955,866
Cash Held by Blackstone Funds and Other
  
204,052  
316,197
Investments
  
29,800,566  
26,146,622
Accounts Receivable
  
237,930  
193,365
Due from Affiliates
  
5,409,315  
4,466,521
Intangible Assets, Net
  
165,243  
201,208
Goodwill
  
1,890,202  
1,890,202
Other Assets
  
947,859  
944,848
Right-of-Use Assets
  
838,620  
841,307
Deferred Tax Assets
  
2,003,948  
2,331,394
  
 
 
 
 
 
 
 
Total Assets
   $ 43,469,875   $ 40,287,530
  
 
 
 
 
 
 
 
Liabilities and Equity
  
 
Loans Payable
   $ 11,320,956   $ 11,304,059
Due to Affiliates
  
2,808,148  
2,393,410
Accrued Compensation and Benefits
  
6,087,700  
5,247,766
Operating Lease Liabilities
  
965,742  
989,823
Accounts Payable, Accrued Expenses and Other Liabilities
  
2,792,314  
2,277,258
  
 
 
 
 
 
 
 
Total Liabilities
  
23,974,860  
22,212,316
  
 
 
 
 
 
 
 
Commitments and Contingencies
  
 
Redeemable Non-Controlling Interests in Consolidated Entities
  
801,399  
1,179,073
  
 
 
 
 
 
 
 
Equity
  
 
Stockholders’ Equity of Blackstone Inc.
  
 
Common Stock, $0.00001 par value, 90 billion shares authorized, (731,925,965 shares issued and outstanding as of December 31,
2024; 719,358,114 shares issued and outstanding as of December 31, 2023)
  
7  
7
Series I Preferred Stock, $0.00001 par value, 999,999,000 shares authorized, (1 share issued and outstanding as of December 31,
2024 and December 31, 2023)
  
—  
—
Series II Preferred Stock, $0.00001 par value, 1,000 shares authorized, (1 share issued and outstanding as of December 31, 2024
and December 31, 2023)
  
—  
—
Additional Paid-in-Capital
  
7,444,561  
6,175,190
Retained Earnings
  
808,079  
660,734
Accumulated Other Comprehensive Loss
  
(40,326)  
(19,133) 
  
 
 
 
 
 
 
 
Total Stockholders’ Equity of Blackstone Inc.
  
8,212,321  
6,816,798
Non-Controlling Interests in Consolidated Entities
  
6,154,943  
5,177,255
Non-Controlling Interests in Blackstone Holdings
  
4,326,352  
4,902,088
  
 
 
 
 
 
 
 
Total Equity
  
18,693,616  
16,896,141
  
 
 
 
 
 
 
 
Total Liabilities and Equity
   $ 43,469,875   $ 40,287,530
  
 
 
 
 
 
 
 
continued…
See notes to consolidated financial statements.
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Blackstone Inc.
Consolidated Statements of Financial Condition
(Dollars in Thousands)
The following presents the asset and liability portion of the consolidated balances presented in the Consolidated Statements of Financial Condition
attributable to consolidated Blackstone Funds which are variable interest entities. The following assets may only be used to settle obligations of these
consolidated Blackstone Funds and these liabilities are only the obligations of these consolidated Blackstone Funds and they do not have recourse to the
general credit of Blackstone.
  
December 31,
2024
 
December 31,
2023
Assets
  
 
Cash Held by Blackstone Funds and Other
  $
204,052   $
316,197
Investments
  
3,890,732  
4,319,483
Accounts Receivable
  
45,993  
6,995
Due from Affiliates
  
19,956  
12,762
Other Assets
  
9,807  
770
  
 
 
 
 
 
 
 
Total Assets
  $ 4,170,540    $ 4,656,207  
  
 
 
 
 
 
 
 
Liabilities
  
 
Loans Payable
  $
87,488   $
687,122
Due to Affiliates
  
229,478  
123,909
Accounts Payable, Accrued Expenses and Other Liabilities
  
68,763  
391,172
  
 
 
 
 
 
 
 
Total Liabilities
  $
385,729   $ 1,202,203
  
 
 
 
 
 
 
 
See notes to consolidated financial statements.
157

Table of Contents
Blackstone Inc.
Consolidated Statements of Operations
(Dollars in Thousands, Except Share and Per Share Data)
  
Year Ended December 31,
  
2024
 
2023
 
2022
Revenues
  
 
 
Management and Advisory Fees, Net
   $
7,188,936   $
6,671,260   $
6,303,315
  
 
 
 
 
 
 
 
 
 
 
 
Incentive Fees
  
964,178  
695,171  
525,127
  
 
 
 
 
 
 
 
 
 
 
 
Investment Income (Loss)
  
 
 
Performance Allocations
  
 
 
Realized
  
3,457,746  
2,223,841  
5,381,640
Unrealized
  
371,407  
(1,691,668)  
(3,435,056) 
Principal Investments
  
 
 
Realized
  
332,258  
303,823  
850,327
Unrealized
  
380,591  
(603,154)  
(1,563,849) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Investment Income
  
4,542,002  
232,842  
1,233,062
  
 
 
 
 
 
 
 
 
 
 
 
Interest and Dividend Revenue
  
411,159  
516,497  
271,612
Other
  
123,693  
(92,929)  
184,557
  
 
 
 
 
 
 
 
 
 
 
 
Total Revenues
  
13,229,968  
8,022,841  
8,517,673
  
 
 
 
 
 
 
 
 
 
 
 
Expenses
  
 
 
Compensation and Benefits
  
 
 
Compensation
  
3,048,229  
2,785,447  
2,569,780
Incentive Fee Compensation
  
373,586  
281,067  
207,998
Performance Allocations Compensation
  
 
 
Realized
  
1,432,217  
900,859  
2,225,264
Unrealized
  
140,021  
(654,403)  
(1,470,588) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Compensation and Benefits
  
4,994,053  
3,312,970  
3,532,454
General, Administrative and Other
  
1,361,909  
1,117,305  
1,092,671
Interest Expense
  
443,688  
431,868  
317,225
Fund Expenses
  
19,676  
118,987  
30,675
  
 
 
 
 
 
 
 
 
 
 
 
Total Expenses
  
6,819,326  
4,981,130  
4,973,025
  
 
 
 
 
 
 
 
 
 
 
 
Other Income (Loss)
  
 
 
Change in Tax Receivable Agreement Liability
  
(41,246)  
(27,196)  
22,283
Net Gains (Losses) from Fund Investment Activities
  
90,084  
(56,801)  
(105,142) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Other Income (Loss)
  
48,838  
(83,997)  
(82,859) 
  
 
 
 
 
 
 
 
 
 
 
 
Income Before Provision for Taxes
  
6,459,480  
2,957,714  
3,461,789
Provision for Taxes
  
1,021,671  
513,461  
472,880
  
 
 
 
 
 
 
 
 
 
 
 
Net Income
  
5,437,809  
2,444,253  
2,988,909
Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
  
(61,289)  
(245,518)  
(142,890) 
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
  
473,826  
224,155  
107,766
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
  
2,248,764  
1,074,736  
1,276,402
  
 
 
 
 
 
 
 
 
 
 
 
Net Income Attributable to Blackstone Inc.
   $
2,776,508   $
1,390,880   $
1,747,631
  
 
 
 
 
 
 
 
 
 
 
 
Net Income Per Share of Common Stock
  
 
 
Basic
   $
3.62   $
1.84   $
2.36
  
 
 
 
 
 
 
 
 
 
 
 
Diluted
   $
3.62   $
1.84   $
2.36
  
 
 
 
 
 
 
 
 
 
 
 
Weighted-Average Shares of Common Stock Outstanding
  
 
 
Basic
  
766,487,450  
755,204,556  
740,664,038
  
 
 
 
 
 
 
 
 
 
 
 
Diluted
  
766,646,508  
755,419,936  
740,942,399
  
 
 
 
 
 
 
 
 
 
 
 
See notes to consolidated financial statements.
158

Table of Contents
Blackstone Inc.
Consolidated Statements of Comprehensive Income
(Dollars in Thousands)
  
Year Ended December 31,
  
2024
 
2023
 
2022
Net Income
  $ 5,437,809   $ 2,444,253   $ 2,988,909
Other Comprehensive Income (Loss) - Currency Translation Adjustment
  
(76,662)  
59,698  
(32,523) 
  
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income
  
5,361,147  
2,503,951  
2,956,386
  
 
 
 
 
 
 
 
 
 
 
 
Less:
  
 
 
Comprehensive Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
  
(95,256)  
(199,998)  
(163,263) 
Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities
  
473,826  
224,155  
107,766
Comprehensive Income Attributable to Non-Controlling Interests in Blackstone Holdings
  
2,227,262  
1,080,572  
1,272,101
  
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income Attributable to Non-Controlling Interests
  
2,605,832  
1,104,729  
1,216,604
  
 
 
 
 
 
 
 
 
 
 
 
Comprehensive Income Attributable to Blackstone Inc.
  $ 2,755,315   $ 1,399,222   $ 1,739,782
  
 
 
 
 
 
 
 
 
 
 
 
See notes to consolidated financial statements.
159

Table of Contents
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
Shares of
Blackstone
Inc. (a)
Blackstone Inc. (a)
Common
Stock
Common
Stock
Additional
Paid-in-
Capital
Retained
Earnings
(Deficit)
Accumulated
Other
Compre-
hensive
Income
(Loss)
Total
Stockholders’
Equity
Non-
Controlling
Interests in
Consolidated
Entities
Non-
Controlling
Interests in
Blackstone
Holdings
Total
Equity
Redeemable
Non-
Controlling
Interests in
Consolidated
Entities
Balance at December 31, 2021
  704,339,774   $
7   $5,794,727   $ 3,647,785   $
(19,626)    $ 9,422,893   $ 5,600,653   $ 6,614,472   $ 21,638,018   $
68,028
Transfer In Due to Consolidation of Fund Entities
 
—  
—  
—  
—  
—  
—  
—  
—  
—  
1,146,410
Net Income (Loss)
 
—  
—  
—  
 1,747,631  
—  
1,747,631  
107,766  
1,276,402  
3,131,799  
(142,890) 
Currency Translation Adjustment
 
—  
—  
—  
—  
(7,849)   
(7,849)  
—  
(4,301)  
(12,150)  
(20,373) 
Capital Contributions
 
—  
—  
—  
—  
—  
—  
739,660  
9,868  
749,528  
555,693
Capital Distributions
 
—  
—  
—  
(3,647,310)  
—  
(3,647,310)  
(1,091,798)  
(2,881,343)  
(7,620,451)  
(180,200) 
Transfer of Non-Controlling Interests in Consolidated Entities
 
—  
—  
—  
—  
—  
—  
(299,801)  
—  
(299,801)  
288,338
Deferred Tax Effects on Equity Transactions
 
—  
—  
6,690  
—  
—  
6,690  
—  
—  
6,690  
—
Equity-Based Compensation
 
—  
—  
504,738  
—  
—  
504,738  
—  
333,645  
838,383  
—
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of
Common Stock
 
5,407,340  
—  
(73,987)  
—  
—  
(73,987)  
—  
—  
(73,987)  
—
Repurchase of Shares of Common Stock and Blackstone Holdings
Partnership Units
 
(3,850,000)  
—  
(391,968)  
—  
—  
(391,968)  
—  
—  
(391,968)  
—
Change in Blackstone Inc.’s Ownership Interest
 
—  
—  
36,824  
—  
—  
36,824  
—  
(36,824)  
—  
—
Conversion of Blackstone Holdings Partnership Units to Shares of Common
Stock
 
4,379,809  
—  
58,249  
—  
—  
58,249  
—  
(58,249)  
—  
—
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2022
  710,276,923   $
7    $5,935,273   $ 1,748,106   $
(27,475)    $ 7,655,911   $ 5,056,480   $ 5,253,670   $ 17,966,061   $   1,715,006
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than
one cent.
continued…
See notes to consolidated financial statements.
160

Table of Contents
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
Shares of
Blackstone
Inc. (a)
Blackstone Inc. (a)
Common
Stock
Common
Stock
Additional
Paid-in-
Capital
Retained
Earnings
(Deficit)
Accumulated
Other
Compre-
hensive
Income
(Loss)
Total
Stockholders’
Equity
Non-
Controlling
Interests in
Consolidated
Entities
Non-
Controlling
Interests in
Blackstone
Holdings
Total
Equity
Redeemable
Non-
Controlling
Interests in
Consolidated
Entities
Balance at December 31, 2022
  710,276,923   $
7   $5,935,273   $ 1,748,106   $
(27,475)    $ 7,655,911   $ 5,056,480   $ 5,253,670   $ 17,966,061   $
1,715,006
Transfer Out Due to Deconsolidation of Fund Entities
 
—  
—  
—  
—  
—  
—  
—  
—  
—  
(53,713) 
Net Income (Loss)
 
—  
—  
—  
 1,390,880  
—  
1,390,880  
224,155  
1,074,736  
2,689,771  
(245,518) 
Currency Translation Adjustment
 
—  
—  
—  
—  
8,342  
8,342  
—  
5,836  
14,178  
45,520
Capital Contributions
 
—  
—  
—  
—  
—  
—  
571,559  
9,706  
581,265  
150,533
Capital Distributions
 
—  
—  
—  
(2,478,252)  
—  
(2,478,252)  
(666,668)  
(1,799,901)  
(4,944,821)  
(432,755) 
Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities 
—  
—  
40  
—  
—  
40  
(8,271)  
—  
(8,231)  
—
Deferred Tax Effects on Equity Transactions
 
—  
—  
2,467  
—  
—  
2,467  
—  
—  
2,467  
—
Equity-Based Compensation
 
—  
—  
614,645  
—  
—  
614,645  
—  
398,830  
1,013,475  
—
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of
Common Stock
 
7,745,355  
—  
(66,762)  
—  
—  
(66,762)  
—  
—  
(66,762)  
—
Repurchase of Shares of Common Stock and Blackstone Holdings Partnership
Units
 
(3,718,169)  
—  
(351,262)  
—  
—  
(351,262)  
—  
—  
(351,262)  
—
Change in Blackstone Inc.’s Ownership Interest
 
—  
—  
(15,047)  
—  
—  
(15,047)  
—  
15,047  
—  
—
Conversion of Blackstone Holdings Partnership Units to Shares of Common
Stock
 
5,054,005  
—  
55,836  
—  
—  
55,836  
—  
(55,836)  
—  
—
 
  
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2023
  719,358,114   $
7   $6,175,190   $
660,734   $
(19,133)    $ 6,816,798   $ 5,177,255   $ 4,902,088   $ 16,896,141   $   1,179,073
 
  
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than
one cent.
continued…
See notes to consolidated financial statements.
161

Table of Contents
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
Shares of
Blackstone
Inc. (a)
Blackstone Inc. (a)
Common
Stock
Common
Stock
Additional
Paid-in-
Capital
Retained
Earnings
(Deficit)
Accumulated
Other
Compre-
hensive
Income
(Loss)
Total
Stockholders’
Equity
Non-
Controlling
Interests in
Consolidated
Entities
Non-
Controlling
Interests in
Blackstone
Holdings
Total
Equity
Redeemable
Non-
Controlling
Interests in
Consolidated
Entities
Balance at December 31, 2023
  719,358,114   $
7
  $6,175,190   $
660,734   $
(19,133)    $ 6,816,798   $ 5,177,255   $ 4,902,088   $ 16,896,141   $ 1,179,073
Transfer In Due to Consolidation of Fund Entities
 
—  
—
 
—  
—  
—  
—  
87,643  
—  
87,643  
1,065
Net Income (Loss)
 
—  
—
 
—  
 2,776,508  
—  
2,776,508  
473,826  
2,248,764  
5,499,098  
(61,289) 
Currency Translation Adjustment
 
—  
—
 
—  
—  
(21,193)   
(21,193)  
—  
(21,502)  
(42,695)  
(33,967) 
Capital Contributions
 
—  
—
 
—  
—  
—  
—  
936,217  
11,588  
947,805  
70,483
Capital Distributions
 
—  
—
 
—  
(2,629,163)  
—  
(2,629,163)  
(579,631)  
(1,806,608)  
(5,015,402)  
(284,875) 
Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities  
—  
—
 
(134)  
—  
—  
(134)  
59,633  
—  
59,499  
(69,091) 
Deferred Tax Effects on Equity Transactions
 
—  
—
 
(196,172)  
—  
—  
(196,172)  
—  
—  
(196,172)  
—
Equity-Based Compensation
 
—  
—
 
686,218  
—  
—  
686,218  
—  
432,546  
1,118,764  
—
Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of
Common Stock
 
10,565,137  
—
 
(140,636)  
—  
—  
(140,636)  
—  
—  
(140,636)  
—
Repurchase of Shares of Common Stock and Blackstone Holdings Partnership
Units
 
(3,964,353)  
—
 
(520,429)  
—  
—  
(520,429)  
—  
—  
(520,429)  
—
Change in Blackstone Inc.’s Ownership Interest
 
—  
—
 
1,382,158  
—  
—  
1,382,158  
—  
(1,382,158)  
—  
—
Conversion of Blackstone Holdings Partnership Units to Shares of Common
Stock
 
5,967,067  
—
 
58,366  
—  
—  
58,366  
—  
(58,366)  
—  
—
 
  
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2024
  731,925,965   $
7
  $7,444,561   $
808,079   $
(40,326)    $ 8,212,321   $ 6,154,943   $ 4,326,352   $ 18,693,616   $    801,399
 
  
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than
one cent.
See notes to consolidated financial statements.
162

Table of Contents
Blackstone Inc.
Consolidated Statements of Cash Flows
(Dollars in Thousands)
  
Year Ended December 31,
  
2024
 
2023
 
2022
Operating Activities
  
 
 
Net Income
  $ 5,437,809   $ 2,444,253   $ 2,988,909
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
  
 
 
Net Realized Gains on Investments
  
(4,172,938)  
(2,989,636)  
(6,474,051) 
Changes in Unrealized (Gains) Losses on Investments
  
(487,013)  
683,715  
1,828,364
Non-Cash Performance Allocations
  
(371,407)  
1,691,668  
3,435,055
Non-Cash Performance Allocations and Incentive Fee Compensation
  
1,941,899  
473,364  
931,288
Equity-Based Compensation Expense
  
1,168,435  
987,549  
846,349
Amortization of Intangibles
  
35,965  
40,075  
67,097
Other Non-Cash Amounts Included in Net Income
  
(444,772)  
(835,230)  
(1,341,059) 
Cash Flows Due to Changes in Operating Assets and Liabilities
  
 
 
Cash Acquired with Consolidation of Fund Entity
  
39,729  
—  
31,791
Cash Relinquished with Deconsolidation of Fund Entities
  
(113,224)  
(113,589)  
—
Accounts Receivable
  
(78,284)  
237,623  
177,832
Due from Affiliates
  
(386,755)  
331,623  
654,290
Other Assets
  
(560)  
(47,299)  
(26,853) 
Accrued Compensation and Benefits
  
(1,211,545)  
(1,071,559)  
(2,197,446) 
Accounts Payable, Accrued Expenses and Other Liabilities
  
194,581  
(40,283)  
158,019
Due to Affiliates
  
16,930  
85,733  
117,219
Investments Purchased
  
(2,429,824)  
(5,010,341)  
(5,228,723) 
Cash Proceeds from Sale of Investments
  
4,342,636  
7,189,240  
10,368,172
  
 
 
 
 
 
 
 
 
 
 
 
Net Cash Provided by Operating Activities
  
3,481,662  
4,056,906  
6,336,253
  
 
 
 
 
 
 
 
 
 
 
 
Investing Activities
  
 
 
Purchase of Furniture, Equipment and Leasehold Improvements
  
(61,409)  
(224,231)  
(235,497) 
Net Cash Paid for Acquisitions, Net of Cash Acquired
  
—  
(5,420)  
—
  
 
 
 
 
 
 
 
 
 
 
 
Net Cash Used in Investing Activities
  
(61,409)  
(229,651)  
(235,497) 
  
 
 
 
 
 
 
 
 
 
 
 
Financing Activities
  
 
 
Distributions to Non-Controlling Interest Holders in Consolidated Entities
  
(874,024)  
(1,003,715)  
(1,271,907) 
Contributions from Non-Controlling Interest Holders in Consolidated Entities
  
907,267  
708,410  
1,268,297
Payments Under Tax Receivable Agreement
  
(87,508)  
(64,634)  
(46,880) 
Net Settlement of Vested Common Stock and Repurchase of Common Stock
  
(661,065)  
(418,024)  
(465,956) 
continued…
See notes to consolidated financial statements.
163

Table of Contents
Blackstone Inc.
Consolidated Statements of Cash Flows
(Dollars in Thousands)
  
Year Ended December 31,
  
2024
 
2023
 
2022
Financing Activities (Continued)
  
 
 
Proceeds from Loans Payable
  $
741,173   $
494,975   $ 3,521,544
Repayment and Repurchase of Loans Payable
  
(103,221)  
(502,460)  
(280,768) 
Dividends/Distributions to Stockholders and Unitholders
   (4,424,183)  
(4,268,447)  
(6,518,785) 
  
 
 
 
 
 
 
 
 
 
 
 
Net Cash Used in Financing Activities
   (4,501,561)  
(5,053,895)  
(3,794,455) 
  
 
 
 
 
 
 
 
 
 
 
 
Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other
  
(14,563)  
4,988  
(12,318) 
  
 
 
 
 
 
 
 
 
 
 
 
Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other
  
 
 
Net Increase (Decrease)
   (1,095,871)  
(1,221,652)  
2,293,983
Beginning of Period
  
3,272,063  
4,493,715  
2,199,732
  
 
 
 
 
 
 
 
 
 
 
 
End of Period
  $ 2,176,192   $ 3,272,063   $ 4,493,715
  
 
 
 
 
 
 
 
 
 
 
 
Supplemental Disclosure of Cash Flows Information
  
 
 
Payments for Interest
  $
407,333   $
400,333   $
261,886
  
 
 
 
 
 
 
 
 
 
 
 
Payments for Income Taxes
  $
646,872   $
569,381   $
683,171
  
 
 
 
 
 
 
 
 
 
 
 
Supplemental Disclosure of Non-Cash Investing and Financing Activities
  
 
 
Non-Cash Contributions from Non-Controlling Interest Holders
  $
101,429   $
22,049   $
34,286
  
 
 
 
 
 
 
 
 
 
 
 
Non-Cash Distributions to Non-Controlling Interest Holders
  $
(2,070)   $ (105,414)   $
—
  
 
 
 
 
 
 
 
 
 
 
 
Notes Issuance Costs
  $
6,082   $
—   $
30,240
  
 
 
 
 
 
 
 
 
 
 
 
Transfer of Interests to Non-Controlling Interest Holders
  $
(9,458)   $
(8,231)   $
(11,463) 
  
 
 
 
 
 
 
 
 
 
 
 
Net Settlement of Vested Common Stock
  $
972,398   $
681,004   $
387,332
  
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Asset Effects from Equity Transactions
  $
(26,035)   $ (117,459)   $ (120,167) 
  
 
 
 
 
 
 
 
 
 
 
 
Change in Due to Affiliates Related to the Impact of Conversions on Tax Receivable Agreements
  $
208,676   $
114,992   $
113,477
  
 
 
 
 
 
 
 
 
 
 
 
The following table provides a reconciliation of Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other reported within the
Consolidated Statements of Financial Condition:
  
December 31,
2024
 
December 31,
2023
Cash and Cash Equivalents
  $ 1,972,140   $ 2,955,866
Cash Held by Blackstone Funds and Other
  
204,052  
316,197
  
 
 
 
 
 
 
 
  $ 2,176,192    $ 3,272,063  
  
 
 
 
 
 
 
 
See notes to consolidated financial statements.
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Blackstone Inc.
Notes to Consolidated Financial Statements
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
1.
Organization
Blackstone Inc., together with its consolidated subsidiaries (“Blackstone” or the “Company”), is the world’s largest alternative asset manager. Blackstone’s
asset management business includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real
assets, secondaries and hedge funds. “Blackstone Funds” refers to the funds and other vehicles that are managed by Blackstone. Blackstone’s business is
organized into four segments: Real Estate, Private Equity, Credit & Insurance and Multi-Asset Investing.
Blackstone Inc. was initially formed as The Blackstone Group L.P., a Delaware limited partnership, on March 12, 2007. Prior to its conversion on July 1,
2019 to a Delaware corporation, Blackstone Inc. was managed and operated by Blackstone Group Management L.L.C., which is wholly owned by Blackstone’s
senior managing directors and controlled by one of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”).
The activities of Blackstone are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone
Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings,” “Blackstone Holdings Partnerships” or the
“Holding Partnerships”). Blackstone, through its wholly owned subsidiaries, is the sole general partner of each of the Holding Partnerships. Generally, holders
of the limited partner interests in the Holding Partnerships may, four times each year, exchange their limited partnership interests (“Partnership Units”) for
Blackstone common stock, on a one-to-one basis, exchanging one Partnership Unit from each of the Holding Partnerships for one share of Blackstone
common stock.
2.
Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in
the United States of America (“GAAP”).
The consolidated financial statements include the accounts of Blackstone, its wholly owned or majority-owned subsidiaries, the consolidated entities
which are considered to be variable interest entities and for which Blackstone is considered the primary beneficiary, and certain partnerships or similar
entities which are not considered variable interest entities but in which the general partner is determined to have control.
All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts
reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the
consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments,
the measurement of deferred tax balances (including any valuation allowances) and the accounting for Goodwill and equity-based compensation. Actual
results could differ from those estimates and such differences could be material.
Consolidation
Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general
partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the
right to dissolve the partnerships or have substantive kick-out rights or participating rights that would overcome the control held by Blackstone. Accordingly,
Blackstone consolidates Blackstone Holdings and records non-controlling interests to reflect the economic interests of the limited partners of Blackstone
Holdings.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In addition, Blackstone consolidates all variable interest entities (“VIE”) for which it is the primary beneficiary. An enterprise is determined to be the
primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that
most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the
entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone
holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually
through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment.
Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously
reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests
in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily
apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone,
affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE
or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or
deconsolidate accordingly.
Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or
beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of
Financial Condition.
Blackstone’s other disclosures regarding VIEs are discussed in Note 8. “Variable Interest Entities.”
Revenue Recognition
Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other.
Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an
entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price,
(d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance
obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in
the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 19.
“Segment Reporting” for a disaggregated presentation of revenues from contracts with customers.
Management and Advisory Fees, Net — Management and Advisory Fees, Net are comprised of management fees, including base management fees,
transaction, advisory and other fees net of management fee reductions and offsets.
Blackstone earns base management fees from its customers at a fixed percentage of a calculation base which is typically net asset value, gross asset
value, total fair value of investments, committed capital, total invested capital or remaining invested capital. Blackstone identifies its customers on a fund by
fund basis in accordance with
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
the terms and circumstances of the individual fund. Generally the customer is identified as the investors in its managed funds and investment vehicles, but for
certain widely held funds or vehicles, the fund or vehicle itself may be identified as the customer. These customer contracts require Blackstone to provide
investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable
consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is
generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to
clawback once paid.
Transaction, advisory and other fees are principally fees charged to the investors of funds indirectly through the managed funds and portfolio companies.
The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the investors to
Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone by the portfolio companies.
The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and
associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management
services to the investors of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are
performed.
Management fee offsets are reductions to management fees payable by the investors of the Blackstone Funds, which are based on the amount such
investors reimburse the Blackstone Funds or Blackstone primarily for placement fees. Providing investment management services requires Blackstone to
arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the investors of funds, it presents the
cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore
acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other
expense, as appropriate, with any reimbursement from the investors of the funds recorded as Management and Advisory Fees, Net. In cases where the
investors of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract.
Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the Consolidated Statements of Financial
Condition and amortization is recorded within General, Administrative and Other within the Consolidated Statements of Operations. In cases where the
Blackstone Funds are determined to be the customer in the arrangement, placement fees are generally expensed as incurred. Blackstone may also pay
ongoing investor servicing fees to certain distributors of its products. Where Blackstone is the principal in those arrangements, ongoing investor servicing fees
are expensed as incurred and are recorded within General, Administrative and Other expense.
Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are
included in Due from Affiliates in the Consolidated Statements of Financial Condition.
Incentive Fees — Contractual fees earned based on the performance of Blackstone vehicles (“Incentive Fees”) are a form of variable consideration in
Blackstone’s contracts with customers to provide investment management services. Incentive Fees are earned based on performance of the vehicle during the
period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each vehicle’s governing
agreements. Incentive Fees will not be recognized as revenue until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized
will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Incentive Fees are typically recognized as revenue
when realized at the end of the measurement period. Once realized, such fees are not subject to clawback or reversal. Accrued but unpaid Incentive Fees
charged directly to investors in Blackstone vehicles as of the reporting date are recorded within Due from Affiliates in the Consolidated Statements of Financial
Condition.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Investment Income (Loss) — Investment Income (Loss) represents the unrealized and realized gains and losses on Blackstone’s Performance Allocations
and Principal Investments.
In carry fund structures and certain open-ended structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and
is entitled to its pro-rata share of the results of the fund vehicle (a “pro-rata allocation”). In addition to a pro-rata allocation, and assuming certain investment
returns are achieved, Blackstone is entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to
as carried interest (“Performance Allocations”).
Performance Allocations are made to the general partner based either on cumulative fund performance to date, subject to a preferred return to limited
partners or based on vehicle performance over a period of time, subject to a high water mark and preferred return to investors. At the end of each reporting
period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each
fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts
have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as
Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general
partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in
a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance
Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments.
Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed.
Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued
Performance Allocations as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition.
Performance Allocations in carry fund structures are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns
are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations in carry fund
structures are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative
results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all
amounts previously distributed to Blackstone Holdings and non-controlling interest holders that would need to be repaid to the Blackstone carry funds if the
Blackstone carry funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual
clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, which may have an interim clawback
liability. Performance Allocations in open-ended structures are realized based on the stated time period in the agreements and are generally not subject to
clawback once paid.
Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone
Funds that are not consolidated and receive pro-rata allocations, its equity method investments, and other principal investments. Income (Loss) on Principal
Investments is realized when Blackstone redeems all or a portion of its investment or when Blackstone receives cash income, such as dividends or
distributions. Unrealized Income (Loss) on Principal Investments results from changes in the fair value of the underlying investment as well as the reversal of
unrealized gain (loss) at the time an investment is realized.
Interest and Dividend Revenue — Interest and Dividend Revenue comprises primarily interest and dividend income earned on principal investments not
accounted for under the equity method held by Blackstone.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Other Revenue — Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in
currencies other than U.S. dollars.
Fair Value of Financial Instruments
GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial
instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific
to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial
instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of
judgment used in measuring fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of
fair values, as follows:
•
 
Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial
instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price
for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price.
•
 
Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date,
and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in
this category include corporate bonds and loans, including corporate bonds and loans held within consolidated collateralized loan obligations
(“CLO”) vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter derivatives where
the fair value is based on observable inputs. Notes issued by consolidated CLO vehicles are classified within Level II of the fair value hierarchy.
•
 
Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the
financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial
instruments that are included in this category generally include private investments in the equity of operating companies, real estate properties,
distressed debt and non-investment grade residual interests in securitizations, investments in non-consolidated CLOs and certain over-the-
counter derivatives where the fair value is based on unobservable inputs. For certain investments where the fair value is not readily
determinable, net asset value (“NAV”) is applied as a practical expedient.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which
category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value
measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers
factors specific to the financial instrument.
Level II Valuation Techniques
Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, debt securities sold, not yet purchased and certain
equity securities and derivative instruments valued using observable inputs.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows:
•
 
Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants including those
provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain
information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable
investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an
identical security adjusted for the effect of a restriction.
•
 
Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit
spreads.
•
 
Notes issued by consolidated CLO vehicles are measured based on the more observable fair value of CLO assets less (a) the fair value of any
beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services.
Level III Valuation Techniques
In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some
investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances,
and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and
external factors, including the appropriate risk adjustments for non-performance and liquidity risks. Investments for which market prices are not observable
include private investments in the equity of operating companies, real estate properties and investments in non-consolidated CLO vehicles.
Real Estate Investments — The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable
assets, if any, and replacement costs, among other measures and considerations. The methods used to estimate the fair value of real estate investments
include the discounted cash flow method, where value is calculated by discounting the estimated cash flows and the estimated terminal value of the subject
investment by the assumed buyer’s weighted-average cost of capital. A terminal value is derived by reference to an exit multiple, such as for estimates of
earnings before interest, taxes, depreciation and amortization (“EBITDA”), or a capitalization rate, such as for estimates of net operating income (“NOI”).
Valuations may also be derived by the performance multiple or market approach, by reference to observable valuation measures for comparable companies
or assets (for example, dividing NOI by a relevant capitalization rate observed for comparable companies or transactions), adjusted by management for
differences between the investment and the referenced comparables.
Private Equity Investments — The fair values of private equity investments are determined by reference to projected net earnings, EBITDA, public market
or private transactions, valuations for comparable companies and other measures which, in many cases, are based on unaudited information at the time
received. The methods used to estimate the fair value of private equity investments include the discounted cash flow method. Where a discounted cash flow
method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Valuations may also be derived by reference to observable
valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA,
by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the
investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Credit-Focused Investments — The fair values of credit-focused investments are generally determined on the basis of prices between market participants
provided by reputable dealers or pricing services. For credit-focused investments that are not publicly traded or whose market prices are not readily available,
Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. The discounted cash flow method
projects the expected cash flows of the debt instrument based on contractual terms, and discounts such cash flows back to the valuation date using a market-
based yield. The market-based yield is generally estimated using yields of publicly traded debt instruments issued by companies operating in similar industries
as the subject investment or based on changes in credit spreads of a broader benchmark index applicable to a subject investment.
The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of
comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value
coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring.
Investments, at Fair Value
Generally, the Blackstone Funds are accounted for as investment companies in accordance with the GAAP guidance on investment companies, and under
the American Institute of Certified Public Accountants Audit and Accounting Guide, Investment Companies, and reflect their investments, including majority-
owned and controlled investments, at fair value. Such consolidated funds’ investments are reflected in Investments on the Consolidated Statements of
Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from
Fund Investment Activities in the Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a
liability, in an orderly transaction between market participants at the measurement date, at current market conditions (i.e., the exit price).
Certain principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the
Consolidated Statements of Operations within Investment Income (Loss).
For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at
initial recognition or other eligible election dates. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments
and certain investments that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for
measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate and credit-focused investments.
Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on
interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the
accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue.
Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures notes issued by
consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any non-financial assets held temporarily,
less (b) the sum of the fair value of any beneficial interests retained by Blackstone (other than those that represent compensation for services) and
Blackstone’s carrying value of any beneficial interests that represent compensation for services. As a result of this measurement alternative, there is no
attribution of amounts to Non-Controlling Interests for consolidated CLO vehicles. Assets of the consolidated CLOs are presented within Investments within
the Consolidated Statements of Financial Condition and notes payable within Loans Payable for the amounts due to unaffiliated third parties. Changes in the
fair value of consolidated CLO assets and liabilities and related interest, dividend and other income are presented within Net Gains (Losses) from Fund
Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method
of accounting. The fair value of such investments is based on quoted prices in an active market, quoted prices that are published on a regular basis and are
the basis for current transactions or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the
Consolidated Statements of Operations.
Further disclosure on instruments for which the fair value option has been elected is presented in Note 6. “Fair Value Option.”
Blackstone may elect to measure certain proprietary investments in equity securities without readily determinable fair values under the measurement
alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the
same or a similar security from the same issuer. If the measurement alternative election is not made, the equity security is measured at fair value. The
measurement alternative election is made on an instrument by instrument basis. The election is reassessed each reporting period to determine whether
investments under the measurement alternative have readily determinable fair values, in which case they would no longer be eligible for this election.
Certain investments of Blackstone and the consolidated Blackstone funds are valued at NAV per share pursuant to the practical expedient. In limited
circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In
such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of
GAAP.
The terms of the investee’s investment generally provide for minimum holding periods or lock-ups, the institution of gates on redemptions or the
suspension of redemptions or an ability to side pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be
redeemable at, or within three months of, the reporting date.
Security and loan transactions are recorded on a trade date basis.
Equity Method Investments
Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting
except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not
consolidate. Therefore, its investments in such Blackstone Funds, which generally include both a proportionate and disproportionate allocation of the profits
and losses (as is the case with funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of
accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of
Operations.
In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with funds that
include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach
referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates
the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying
investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies
between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive
performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount
due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results
compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record
negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay
guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method
investments are reflected in Investments in the Consolidated Statements of Financial Condition.
Strategic Partners’ results presented in Blackstone’s consolidated financial statements are reported on a three-month lag from Strategic Partners’ fund
financial statements, which report the performance of underlying investments generally on a same quarter basis, if available. Therefore, Strategic Partners’
results presented herein do not reflect the impact of economic and market activity in the current quarter. Current quarter market activity of Strategic
Partners’ underlying investments is expected to affect Blackstone’s reported results in upcoming periods.
Cash and Cash Equivalents
Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three
months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations.
Cash Held by Blackstone Funds and Other
Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities.
Such amounts are not available to fund the general liquidity needs of Blackstone.
Accounts Receivable and Due from Affiliates
Accounts Receivable and Due from Affiliates is comprised of management and incentive fees receivable from limited partners, receivables from managed
investment vehicles and portfolio companies, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended
to affiliates and to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically
for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements
of Operations.
Intangibles and Goodwill
Blackstone’s intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and
Performance Allocations. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from three to
twenty years, reflecting the contractual lives of such assets. Amortization expense is included within General, Administrative and Other in the Consolidated
Statements of Operations. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not
be recoverable.
Goodwill comprises goodwill arising from the contribution and reorganization of Blackstone’s predecessor entities in 2007 immediately prior to its initial
public offering (“IPO”) and the acquisitions of GSO Capital Partners LP in 2008, Strategic Partners in 2013, Harvest Fund Advisors LLC in 2017, Clarus
Ventures LLC in 2018 and DCI LLC in 2020. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more
frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a
qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying
values.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The operating segments are considered the reporting units for testing the impairment of goodwill. If it is determined that it is more likely than not that an
operating segment’s fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by
which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
Furniture, Equipment and Leasehold Improvements
Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware
and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line
method over the assets’ estimated useful economic lives, which for leasehold improvements, furniture and fittings and other fixed assets were the lesser of
the lease term or the life of the asset, the lesser of seven years or the lease term, or three to five years, respectively. Blackstone evaluates long-lived assets for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Foreign Currency
In the normal course of business, Blackstone may enter into transactions denominated in currencies other than United States dollars. Foreign exchange
gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains
and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, Blackstone
consolidates a number of entities that have a non-U.S. dollar functional currency. Non-U.S. dollar denominated assets and liabilities are translated to U.S.
dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates
that they were recorded. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are recorded in Other
Comprehensive Income and allocated to Non-Controlling Interests in Consolidated Entities and Non-Controlling Interests in Blackstone Holdings, as applicable.
Comprehensive Income
Comprehensive Income consists of Net Income and Other Comprehensive Income. Blackstone’s Other Comprehensive Income is comprised of foreign
currency cumulative translation adjustments.
Compensation and Benefits
Compensation and Benefits — Compensation — Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and senior
managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors.
Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date,
and expensed over the vesting period on a straight-line basis, taking into consideration expected forfeitures, except in the case of (a) equity-based awards that
do not require future service, which are expensed immediately, and (b) certain awards to recipients that meet criteria making them eligible for retirement
(allowing such recipient to keep a percentage of those awards upon departure from Blackstone after becoming eligible for retirement), for which the expense
for the portion of the award that would be retained in the event of retirement is either expensed immediately or amortized to the retirement date. Cash
settled equity-based awards and awards settled in a variable number of shares are classified as liabilities and are remeasured at the end of each reporting
period.
Compensation and Benefits — Incentive Fee Compensation — Incentive Fee Compensation consists of compensation paid based on Incentive Fees.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Compensation and Benefits — Performance Allocations Compensation — Performance Allocation Compensation consists of compensation paid based on
Performance Allocations (which may be distributed in cash or in-kind). Such compensation expense is subject to both positive and negative adjustments.
Performance Allocations Compensation is generally based on the performance of individual investments held by a fund rather than on a fund by fund basis.
These amounts may also include allocations of investment income from Blackstone’s principal investments, to senior managing directors and employees
participating in certain profit sharing initiatives.
Non-Controlling Interests in Consolidated Entities
Non-Controlling Interests in Consolidated Entities represent the component of Equity in general partner entities and consolidated Blackstone Funds held
by third-party investors and employees. The percentage interests in consolidated Blackstone Funds held by third parties and employees is adjusted for general
partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period.
Income (Loss) and other comprehensive income, if applicable, arising from the respective entities is allocated to non-controlling interests in consolidated
entities based on the relative ownership interests of third-party investors and employees after considering any contractual arrangements that govern the
allocation of income (loss) such as fees allocable to Blackstone Inc.
Redeemable Non-Controlling Interests in Consolidated Entities
Investors in certain consolidated vehicles may be granted redemption rights that allow for quarterly or monthly redemption, as outlined in the relevant
governing documents. Such redemption rights may be subject to certain limitations, including limits on the aggregate amount of interests that may be
redeemed in a given period, may only allow for redemption following the expiration of a specified period of time, or may be withdrawn subject to a
redemption fee during the period when capital may not be withdrawn. As a result, amounts relating to third-party interests in such consolidated vehicles are
presented as Redeemable Non-Controlling Interests in Consolidated Entities within the Consolidated Statements of Financial Condition. When redeemable
amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the
Consolidated Statements of Financial Condition. For all consolidated vehicles in which redemption rights have not been granted, non-controlling interests are
presented within Equity in the Consolidated Statements of Financial Condition as Non-Controlling Interests in Consolidated Entities.
Non-Controlling Interests in Blackstone Holdings
Non-Controlling Interests in Blackstone Holdings represent the component of Equity in the consolidated Blackstone Holdings Partnerships held by
Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships.
Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the
Holdings Partnerships, is attributable to Non-Controlling Interests in Blackstone Holdings. This residual attribution is based on the year to date average
percentage of Blackstone Holdings Partnership Units and unvested participating Holdings Partnership Units held by Blackstone personnel and others who are
limited partners of the Blackstone Holdings Partnerships. Unvested participating Holdings Partnership Units are excluded from the attribution in periods of
loss as they are not contractually obligated to share in losses of the Holdings Partnerships.
Other Income
Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and
sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and
dividends attributable to the consolidated Blackstone Funds’ investments.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations.
Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other
Income — Change in the Tax Receivable Agreement Liability” for additional information.
Income Taxes
Blackstone Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local income taxes on Blackstone’s share
of taxable income. The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax
purposes and generally as corporate entities in non-U.S. jurisdictions. Accordingly, these entities in some cases are subject to New York City unincorporated
business taxes or non-U.S. income taxes. In addition, certain of the wholly owned subsidiaries of Blackstone and the Blackstone Holdings Partnerships will be
subject to federal, state and local corporate income taxes at the entity level and the related tax provision attributable to Blackstone’s share of this income tax
is reflected in the consolidated financial statements. Cash paid for transferrable tax credits is reflected in Payments for Income Taxes in the Consolidated
Statements of Cash Flows.
Provision for Income Taxes
Income taxes are provided for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary
differences between the financial reporting and tax bases of assets and liabilities, resulting in all pretax amounts being appropriately tax effected in the
period, irrespective of which tax return year items will be reflected. Blackstone reports interest expense and tax penalties related to income tax matters in
provision for income taxes.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These
temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such
differences are expected to reverse. Valuation allowances are established to reduce the deferred tax assets to the amount that is more likely than not to be
realized. Deferred tax assets are separately stated, and deferred tax liabilities are included in Accounts Payable, Accrued Expenses, and Other Liabilities in the
consolidated financial statements.
Unrecognized Tax Benefits
Blackstone recognizes tax positions in the consolidated financial statements when it is more likely than not that the position will be sustained on
examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest
amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in the return and
amounts recognized in the consolidated financial statements. Accrued interest and penalties related to unrecognized tax benefits are reported on the related
liability line in the consolidated financial statements.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Net Income (Loss) Per Share of Common Stock
Basic Income (Loss) Per Share of Common Stock is calculated by dividing Net Income (Loss) Attributable to Blackstone Inc. by the weighted-average
shares of common stock, unvested participating shares of common stock outstanding for the period and vested deferred restricted shares of common stock
that have been earned for which issuance of the related shares of common stock is deferred until future periods. Diluted Income (Loss) Per Share of Common
Stock reflects the impact of all dilutive securities. Unvested participating shares of common stock are excluded from the computation in periods of loss as they
are not contractually obligated to share in losses.
Blackstone applies the treasury stock method to determine the dilutive weighted-average common shares outstanding for certain equity-based
compensation awards. Blackstone applies the “if-converted” method to the Blackstone Holdings Partnership Units to determine the dilutive impact, if any, of
the exchange right included in the Blackstone Holdings Partnership Units. Blackstone applies the contingently issuable share model to contracts that may
require the issuance of shares.
Reverse Repurchase and Repurchase Agreements
Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase
agreements”), generally comprised of U.S. and non-U.S. government and agency securities, asset backed securities and corporate debt, represent
collateralized financing transactions. Such transactions are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated
Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of reverse repurchase and repurchase
agreements approximates fair value.
Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering
into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to
liquidate collateral and the right to offset a counterparty’s rights and obligations.
Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such
securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can
be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. Additional
disclosures relating to repurchase agreements are included in Note 9. “Repurchase Agreements.”
Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of
Financial Condition. Additional disclosures relating to offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities.”
Securities Sold, Not Yet Purchased
Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short
sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone
is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed
security was sold short.
Securities Sold, Not Yet Purchased are recorded at fair value within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated
Statements of Financial Condition.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Derivative Instruments
Blackstone recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date Blackstone
enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability
(“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability
(“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument
(“freestanding derivative”).
For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative
instruments held by consolidated Blackstone Funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are
held by Blackstone, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets of the
consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated
Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued
Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including
cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides
Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.
Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 5. “Derivative Financial Instruments.”
Blackstone’s disclosures regarding offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities.”
Leases
Blackstone determines if an arrangement is a lease at inception of the arrangement. Blackstone primarily enters into operating leases, as the lessee, for
office space. Operating leases are included in Right-of-Use (“ROU”) Assets and Operating Lease Liabilities in the Consolidated Statement of Financial
Condition. ROU Assets and Operating Lease Liabilities are recognized based on the present value of the future minimum lease payments over the lease term
at the commencement date. Blackstone determines the present value of the lease payments using an incremental borrowing rate based on information
available at the inception date. Leases may include options to extend or terminate the lease which are included in the ROU Assets and Operating Lease
Liability when they are reasonably certain of exercise.
Certain leases include lease and nonlease components, which are accounted for as one single lease component. Occupancy lease agreements, in addition
to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the
extent these are fixed or determinable, they are included as part of the minimum lease payments used to measure the Operating Lease Liability. Operating
lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term. When additional payments are based on
usage or vary based on other factors, they are expensed when incurred as variable lease expense.
Minimum lease payments for leases with an initial term of twelve months or less are not recorded on the Consolidated Statement of Financial Condition.
Blackstone recognizes lease expense for these leases on a straight-line basis over the lease term.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Additional disclosures relating to leases are discussed in Note 13. “Leases.”
Affiliates
Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the portfolio companies to be affiliates.
Dividends
Dividends are reflected in the consolidated financial statements when declared.
Recent Accounting Developments
In June 2022, the Financial Accounting Standards Board issued amended guidance addressing certain sale restrictions on equity securities measured at
fair value. The guidance requires that reporting entities not consider contractual sale restrictions that prohibit the sale of equity securities when measuring
fair value and introduces new disclosure requirements for equity securities subject to contractual sale restrictions. The new guidance was effective for
Blackstone beginning January 1, 2024, was adopted on a prospective basis and did not result in a change in measurement of equity securities upon adoption.
Related disclosures are included within the consolidated financial statements.
3.
Goodwill and Intangible Assets
The carrying value of Goodwill was $1.9 billion as of December 31, 2024 and 2023. At December 31, 2024 and 2023, Blackstone determined there was no
evidence of Goodwill impairment.
At December 31, 2024 and 2023, Goodwill has been allocated to each of Blackstone’s four segments as follows: Real Estate ($421.7 million), Private
Equity ($870.0 million), Credit & Insurance ($366.7 million) and Multi-Asset Investing ($231.8 million).
Intangible Assets, Net consists of the following:
 
  
December 31,
 
  
2024
  
2023
Finite-Lived Intangible Assets/Contractual Rights
  
$ 1,769,372    $ 1,769,372
Accumulated Amortization
  
(1,604,129)   
(1,568,164) 
  
 
 
 
  
 
 
 
Intangible Assets, Net
  
$
165,243    $
201,208
  
 
 
 
  
 
 
 
Changes in Blackstone’s Intangible Assets, Net consists of the following:
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
Balance, Beginning of Year
  
$ 201,208    $ 217,287    $ 284,384
Amortization Expense
  
(35,965)   
(40,075)   
(67,097) 
Acquisitions
  
—   
23,996   
—
  
 
 
 
  
 
 
 
  
 
 
 
Balance, End of Year
  
$ 165,243    $ 201,208    $ 217,287
  
 
 
 
  
 
 
 
  
 
 
 
Amortization of Intangible Assets held at December 31, 2024 is expected to be $35.9 million, $35.7 million, $34.6 million, $17.8 million and $16.6 million
for each of the years ending December 31, 2025, 2026, 2027, 2028 and 2029, respectively. Blackstone’s Intangible Assets as of December 31, 2024 are
expected to amortize over a weighted-average period of 5.3 years.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
4.
Investments
Investments consist of the following:
December 31,
2024
2023
Investments of Consolidated Blackstone Funds
  
$        3,890,732   
$       4,319,483
Equity Method Investments
  
  
Partnership Investments
  
6,546,728   
5,924,275
Accrued Performance Allocations
  
12,397,366   
10,775,355
Corporate Treasury Investments
  
1,147,328   
803,870
Other Investments
  
5,818,412   
4,323,639
  
 
 
 
  
 
 
 
  
$
29,800,566   
$
26,146,622  
  
 
 
 
  
 
 
 
Blackstone’s share of Investments of Consolidated Blackstone Funds totaled $439.7 million and $1.0 billion at December 31, 2024 and
December 31, 2023, respectively.
Where appropriate, the accounting for Blackstone’s investments incorporates the changes in fair value of those investments as determined under GAAP.
The significant inputs and assumptions required to determine the change in fair value of the investments of Consolidated Blackstone Funds, Corporate
Treasury Investments and Other Investments are discussed in more detail in Note 7. “Fair Value Measurements of Financial Instruments.”
Investments of Consolidated Blackstone Funds
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a
reconciliation to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations:
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
Realized Gains (Losses)
  
$(19,139)   
$ (42,756)   
$
99,457
Net Change in Unrealized Gains (Losses)
  
92,834   
(80,416)   
(264,204) 
  
 
 
 
  
 
 
 
  
 
 
 
Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds
  
73,695   
(123,172)   
(164,747) 
Interest and Dividend Revenue, Foreign Exchange Gains and Other Gains Attributable to
Consolidated Blackstone Funds
  
16,389   
66,371   
59,605
  
 
 
 
  
 
 
 
  
 
 
 
Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities
  
$ 90,084   
$ (56,801)   
$(105,142) 
  
 
 
 
  
 
 
 
  
 
 
 
Equity Method Investments
Blackstone’s equity method investments include Partnership Investments, which represent the pro-rata investments, and any associated Accrued
Performance Allocations, in Blackstone Funds, excluding any equity method investments for which the fair value option has been elected. Blackstone
evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from
the United States Securities and Exchange Commission. As of and for the years ended December 31, 2024, 2023 and 2022, no individual equity method
investment held by Blackstone met the significance criteria.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Partnership Investments
Blackstone recognized net gains related to its Partnership Investments accounted for under the equity method of $605.4 million, $245.8 million and
$292.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.
The summarized financial information of Blackstone’s equity method investments for December 31, 2024 are as follows:
December 31, 2024 and the Year Then Ended
Real
Estate
Private
Equity
Credit &
Insurance
Multi-Asset
Investing
Total
Statement of Financial Condition
  
 
 
 
 
Assets
  
 
 
 
 
Investments
  $ 270,306,524   $ 226,288,905   $ 120,658,563   $ 33,758,058   $ 651,012,050
Other Assets
  
14,990,868  
7,948,890  
6,511,331  
2,409,862  
31,860,951
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
  $ 285,297,392   $ 234,237,795   $ 127,169,894   $ 36,167,920   $ 682,873,001
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
  
 
 
 
 
Debt
  $ 112,085,824   $ 27,581,552   $ 49,403,806   $
266,931   $ 189,338,113
Other Liabilities
  
6,752,800  
3,773,648  
4,680,341  
645,001  
15,851,790
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities
  
118,838,624  
31,355,200  
54,084,147  
911,932  
205,189,903
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
  
166,458,768  
202,882,595  
73,085,747  
35,255,988  
477,683,098
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Equity
  $ 285,297,392   $ 234,237,795   $ 127,169,894   $ 36,167,920   $ 682,873,001
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations
  
 
 
 
 
Interest Income
  $
4,539,867   $
697,624   $
9,567,357   $
204,281   $ 15,009,129
Other Income
  
10,702,305  
2,618,913  
1,151,506  
10,959  
14,483,683
Interest Expense
  
(7,581,761)  
(1,718,896)  
(2,913,721)  
(10,922)  
(12,225,300)
Other Expenses
  
(11,570,892)  
(2,223,931)  
(2,020,440)  
(153,459)  
(15,968,722)
Net Realized and Unrealized Gain (Loss) from Investments
  
(4,805,753)  
23,076,302  
2,056,892  
3,621,672  
23,949,113
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
  $
(8,716,234)   $ 22,450,012   $
7,841,594   $ 3,672,531   $ 25,247,903  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The summarized financial information of Blackstone’s equity method investments for December 31, 2023 are as follows:
  
December 31, 2023 and the Year Then Ended
  
Real
Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
Statement of Financial Condition
  
 
 
 
 
Assets
  
 
 
 
 
Investments
  $ 283,919,193   $ 196,798,070   $ 91,574,839   $ 30,667,406   $ 602,959,508
Other Assets
  
12,496,703  
5,514,318  
4,995,562  
4,354,754  
27,361,337
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
  $ 296,415,896   $ 202,312,388   $ 96,570,401   $ 35,022,160   $ 630,320,845
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
  
 
 
 
 
Debt
  $ 113,462,431   $ 22,205,324   $ 37,327,026   $
179,610   $ 173,174,391
Other Liabilities
  
7,365,824  
2,791,378  
4,008,215  
3,145,046  
17,310,463
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities
  
120,828,255  
24,996,702  
41,335,241  
3,324,656  
190,484,854
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
  
175,587,641  
177,315,686  
55,235,160  
31,697,504  
439,835,991
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Equity
  $ 296,415,896   $ 202,312,388   $ 96,570,401   $ 35,022,160   $ 630,320,845
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations
  
 
 
 
 
Interest Income
  $
4,673,775   $
1,779,971   $ 8,890,426   $
20,995   $ 15,365,167
Other Income
  
10,786,480  
1,130,841  
324,061  
382,840  
12,624,222
Interest Expense
  
(6,614,272)  
(1,340,522)  
(2,583,654)  
(5,872)  
(10,544,320) 
Other Expenses
  
(11,705,874)  
(2,631,916)  
(1,691,066)  
(273,193)  
(16,302,049) 
Net Realized and Unrealized Gain (Loss) from Investments
  
(7,330,220)  
12,955,425  
1,124,916  
2,579,602  
9,329,723
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income (Loss)
  $ (10,190,111)   $ 11,893,799   $ 6,064,683   $ 2,704,372   $ 10,472,743
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
182

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The summarized financial information of Blackstone’s equity method investments for December 31, 2022 are as follows:
  
December 31, 2022 and the Year Then Ended
  
Real
Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
Statement of Financial Condition
  
 
 
 
 
Assets
  
 
 
 
 
Investments
  $ 295,985,447   $ 190,972,309   $ 87,362,311   $ 29,969,945   $ 604,290,012
Other Assets
  
13,601,083  
3,529,890  
6,345,260  
3,743,263  
27,219,496
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
  $ 309,586,530   $ 194,502,199   $ 93,707,571   $ 33,713,208   $ 631,509,508
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
  
 
 
 
 
Debt
  $ 118,075,949   $ 23,197,140   $ 39,049,599   $
244,796   $ 180,567,484
Other Liabilities
  
7,735,780  
2,187,967  
5,644,625  
1,215,788  
16,784,160
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities
  
125,811,729  
25,385,107  
44,694,224  
1,460,584  
197,351,644
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
  
183,774,801  
169,117,092  
49,013,347  
32,252,624  
434,157,864
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Equity
  $ 309,586,530   $ 194,502,199   $ 93,707,571   $ 33,713,208   $ 631,509,508
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Statement of Operations
  
 
 
 
 
Interest Income
  $
2,917,115   $
2,017,933   $ 5,764,150   $
11,052   $ 10,710,250
Other Income
  
9,432,802  
1,047,067  
690,193  
64,156  
11,234,218
Interest Expense
  
(3,644,118)  
(761,405)  
(1,450,447)  
(2,743)  
(5,858,713) 
Other Expenses
  
(11,089,520)  
(2,246,183)  
(1,303,902)  
(141,596)  
(14,781,201) 
Net Realized and Unrealized Gain (Loss) from Investments
  
7,807,056  
2,252,738  
(1,330,895)  
377,489  
9,106,388
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income
  $
5,423,335   $
2,310,150   $ 2,369,099   $
308,358   $ 10,410,942
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Performance Allocations
Accrued Performance Allocations to Blackstone were as follows:
  
Real
Estate
 
Private
Equity
 
Credit &
Insurance
 
Multi-Asset
Investing
 
Total
Accrued Performance Allocations, December 31, 2023
  $
2,990,602   $
7,093,920   $
599,779   $
91,054   $ 10,775,355
Performance Allocations as a Result of Changes in Fund Fair Values
  
(490,902)  
3,801,294  
471,043  
222,708  
4,004,143
Foreign Exchange Gain
  
5,124  
—  
—  
—  
5,124
Fund Distributions
  
(518,807)  
(1,433,278)  
(268,973)  
(166,198)  
(2,387,256) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Performance Allocations, December 31, 2024
  $  1,986,017   $  9,461,936   $  801,849   $   147,564   $ 12,397,366
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Corporate Treasury Investments
The portion of corporate treasury investments included in Investments represents Blackstone’s investments into primarily fixed income securities, mutual
fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third-party advisors. The following table
presents the Realized and Net Change in Unrealized Gains (Losses) on these investments:
183

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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
Realized Gains (Losses)
  
$
(3,234)   
$ (4,881)   
$(21,511) 
Net Change in Unrealized Gains
  
17,269   
17,392   
(57,426) 
  
 
 
 
  
 
 
 
  
 
 
 
  
$  14,035   
$12,511   
$(78,937) 
  
 
 
 
  
 
 
 
  
 
 
 
Other Investments
Other Investments consist of equity method investments where Blackstone has elected the fair value option and other proprietary investment securities
held by Blackstone, including equity securities carried at fair value, equity investments without readily determinable fair values, and senior secured and
subordinated notes in non-consolidated CLO vehicles. Equity investments without a readily determinable fair value had a carrying value of $356.3 million as of
December 31, 2024. In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are reported at fair
value. See Note 7. “Fair Value Measurements of Financial Instruments” for additional detail. Upward and downward adjustments related to such investments
held as of December 31, 2024 were $20.4 million and $7.6 million, respectively, during the year ended December 31, 2024, and $211.3 million and
$12.4 million on a cumulative basis since the inception of the investments, respectively. The following table presents Blackstone’s Realized and Net Change in
Unrealized Gains (Losses) in Other Investments:
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
Realized Gains (Losses)
  
$
6,570   
$(19,346)    $
203,327
Net Change in Unrealized Gains (Losses)
  
436,061
(47,017) 
(1,128,244) 
  
 
  
  
 
 
 
  
 
 
 
  
$442,631   
$(66,363)    $ (924,917) 
  
 
 
 
  
 
 
 
  
 
 
 
5.
Derivative Financial Instruments
Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management
objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure
against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk
exposure against the effects of a portion of its non-U.S. dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone
and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty
risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade
ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.
Freestanding Derivatives
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk
management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may
include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.
184

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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the
absolute value amount of all outstanding derivative contracts.
December 31, 2024
December 31, 2023
Assets
Liabilities
Assets
Liabilities
Notional
Fair
Value
Notional
Fair
Value
Notional
Fair
Value
Notional
Fair
Value
Freestanding Derivatives
     
      
      
      
      
      
      
      
Blackstone
Interest Rate Contracts
  $ 624,740
$166,126
$ 600,000
$ 107,425
$ 634,840
$145,798
$ 607,000
$ 86,589
Foreign Currency Contracts
 
239,365  
4,030  
479,383  
14,198  
387,102  
11,442  
334,228  
3,538
Credit Default Swaps
 
—  
—  
640  
10  
3,108  
479  
3,748  
508
Total Return Swaps
 
58,263  
10,153  
—  
—  
63,158  
13,171  
—  
—
Equity Options
 
—  
—  
1,139,400  
938,216  
—  
—  
1,110,490  
563,986
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
922,368  
180,309  
2,219,423  
1,059,849  
1,088,208  
170,890  
2,055,466  
654,621
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments of Consolidated Blackstone Funds
 
 
 
 
 
 
 
 
Interest Rate Contracts
 
785,790  
13,243  
915,215  
15,918  
855,683  
19,189  
—  
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
785,790  
13,243  
915,215  
15,918  
855,683  
19,189  
—  
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  $1,708,158   $193,552   $3,134,638   $1,075,767   $1,943,891   $190,079   $2,055,466   $654,621 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments:
  
Year Ended December 31,
  
2024
 
2023
 
2022
Freestanding Derivatives
  
 
 
Realized Gains (Losses)
  
 
 
Interest Rate Contracts
  $
1,051   $
24,291   $ 15,319
Foreign Currency Contracts
  
9,193  
443  
(8,520) 
Credit Default Swaps
  
75  
(413)  
(231) 
Total Return Swaps
  
21,080  
15,775  
1,654
  
 
 
 
 
 
 
 
 
 
 
 
  
31,399  
40,096  
8,222
  
 
 
 
 
 
 
 
 
 
 
 
Net Change in Unrealized Gains (Losses)
  
 
 
Interest Rate Contracts
  
10,291  
(87,177)  
167,706
Foreign Currency Contracts
  
(17,954)  
3,288  
9,666
Credit Default Swaps
  
(55)  
363  
73
Total Return Swaps
  
(2,837)  
6,381  
5,290
Equity Options
   (374,230)  
(515,405)  
(48,581) 
  
 
 
 
 
 
 
 
 
 
 
 
   (384,785)  
(592,550)  
134,154
  
 
 
 
 
 
 
 
 
 
 
 
  $(353,386)   $(552,454)   $142,376
  
 
 
 
 
 
 
 
 
 
 
 
As of December 31, 2024, 2023 and 2022, Blackstone had not designated any derivatives as fair value, cash flow or net investment hedges.
185

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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
6.
Fair Value Option
The following table summarizes the financial instruments for which the fair value option has been elected:
December 31,
2024
2023
Assets
  
  
Loans and Receivables
  $
100,866   $
60,738
Equity and Preferred Securities
  
4,498,617   
2,894,302
Debt Securities
  
63,671   
63,486
Assets of Consolidated CLO Vehicles
  
  
Corporate Loans
  
62,426   
938,801
  
 
 
 
  
 
 
 
  $ 4,725,580   $ 3,957,327 
  
 
 
 
  
 
 
 
Liabilities
  
  
CLO Notes Payable
  $
87,488   $
687,122
Corporate Treasury Commitments
  
368   
1,264
  
 
 
 
  
 
 
 
  $
87,856   $
688,386
  
 
 
 
  
 
 
 
186

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was
elected:
  
Year Ended December 31,
  
2024
 
2023
 
2022
    
  Net Change    
 
Net Change    
 
Net Change
   Realized   in Unrealized 
Realized
  in Unrealized  
Realized
  in Unrealized
  
Gains
 
Gains
 
Gains
 
Gains
 
Gains
 
Gains
  
(Losses)  
(Losses)
 
(Losses)
 
(Losses)
 
(Losses)
 
(Losses)
Assets
  
 
 
 
 
 
Loans and Receivables
  $(4,849)   $
12   $ (8,053)   $
4,886   $(10,733)   $
(464) 
Equity and Preferred Securities
  
9,431  
(48,209)  
(1,439)   (122,605)  
22,285  
(91,338) 
Debt Securities
  
—  
(2,694)  
—  
(3,884)   (22,240)  
(19,490) 
Assets of Consolidated CLO Vehicles
  
 
 
 
 
 
Corporate Loans
   (3,828)  
2,889  
(6,063)  
8,728  
—  
—
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  $
754   $ (48,002)   $(15,555)   $(112,875)   $(10,688)   $(111,292) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
  
 
 
 
 
 
CLO Notes Payable
  $
—   $
2,178   $
—   $
282   $
—   $
—
Corporate Treasury Commitments
  
—  
896  
—  
6,880  
—  
(7,508) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  $
—   $
3,074   $
—   $
7,162   $
—   $
(7,508) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table presents information for those financial instruments for which the fair value option was elected:
  
December 31, 2024
 
December 31, 2023
    
 
For Financial Assets
Past Due (a)
   
 
For Financial Assets
Past Due (a)
  
Excess
   
 
Excess
 
Excess
   
 
Excess
   (Deficiency)    
 
(Deficiency)  
(Deficiency)    
 
(Deficiency)
   of Fair Value  
Fair
  of Fair Value  
of Fair Value  
Fair
 
of Fair Value
   Over Principal 
Value
  Over Principal  Over Principal 
Value
  Over Principal
Loans and Receivables
  $
2,769   $
—   $
—
  $
675   $
—   $
—
Debt Securities
  
(55,890)  
—  
—
  
(52,577)  
—   
—
Assets of Consolidated CLO Vehicles
  
 
 
 
  
 
  
 
 
Corporate Loans
  
(2,478)   1,359   
—    
(8,751)   1,345    
—  
  
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
  
 
 
 
  $ (55,599)   $1,359   $
—
  $ (60,653)   $1,345   $
—
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
(a)
Assets are classified as past due if contractual payments are more than 90 days past due.
As of December 31, 2024 and 2023, no Loans and Receivables for which the fair value option was elected were past due or in non-accrual status. As of
December 31, 2024 and 2023, there were two Corporate Loans included within the Assets of Consolidated CLO Vehicles for which the fair value option was
elected that were past due but was not in non-accrual status.
187

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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
7.
Fair Value Measurements of Financial Instruments
Financial Assets and Liabilities by the Fair Value Hierarchy
The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy:
  
December 31, 2024
  
Level I
  
Level II
  
Level III
  
NAV (a)
  
Total
Assets
Cash and Cash Equivalents
  $
60,799   $
—   $
—   $
—   $
60,799
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Investments
  
  
  
  
  
Investments of Consolidated Blackstone Funds
  
  
  
  
  
Equity Securities, Partnerships and LLC Interests (b)
  
12,076
155,316
3,158,254
473,496
3,799,142
Debt Instruments
  
—   
63,159   
15,188   
—   
78,347
Freestanding Derivatives
  
—   
13,243   
—   
—   
13,243
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Investments of Consolidated Blackstone Funds
  
12,076   
231,718    3,173,442    473,496   
3,890,732
Corporate Treasury Investments
  
67,729   
565,968   
450,345   
63,286   
1,147,328
Other Investments
   2,089,838    3,182,353   
179,522   
6,289   
5,458,002
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Investments
   2,169,643    3,980,039    3,803,309    543,071    10,496,062
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Accounts Receivable — Loans and Receivables
  
—   
—   
100,866   
—   
100,866
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Other Assets — Freestanding Derivatives
  
—   
170,156   
10,153   
—   
180,309
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $2,230,442   $4,150,195   $3,914,328   $543,071   $10,838,036
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Liabilities
  
  
  
  
  
Loans Payable — CLO Notes Payable
  $
—   $
87,488   $
—   $
—   $
87,488
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Accounts Payable, Accrued Expenses and Other Liabilities
  
  
  
  
  
Consolidated Blackstone Funds — Freestanding Derivatives
  
—   
15,918   
—   
—   
15,918
Freestanding Derivatives
  
—   
121,633   
938,216   
—   
1,059,849
Contingent Consideration
  
—   
—   
504   
—   
504
Corporate Treasury Commitments
  
—   
—   
368   
—   
368
Securities Sold, Not Yet Purchased
  
1,916   
—   
—   
—   
1,916
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Accounts Payable, Accrued Expenses and Other Liabilities
  
1,916   
137,551   
939,088   
—   
1,078,555
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $
1,916   $ 225,039   $ 939,088   $
—   $ 1,166,043 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
188

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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
December 31, 2023
  
Level I
  
Level II
  
Level III
  
NAV
  
Total
Assets
Cash and Cash Equivalents
  $ 263,574   $
—   $
—   $
—   $ 263,574
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Investments
  
  
  
  
  
Investments of Consolidated Blackstone Funds
  
  
  
  
  
Equity Securities, Partnerships and LLC Interests (b)
  
11,118
123,022
2,653,246
558,259
3,345,645
Debt Instruments
  
—   
924,264   
30,385   
—   
954,649
Freestanding Derivatives
  
—   
19,189   
—   
—   
19,189
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Investments of Consolidated Blackstone Funds
  
11,118    1,066,475    2,683,631    558,259    4,319,483
Corporate Treasury Investments
  
72,071   
435,430   
296,369   
—   
803,870
Other Investments
   1,564,112    2,355,423   
223,441   
7,275    4,150,251
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Investments
   1,647,301    3,857,328    3,203,441    565,534    9,273,604
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Accounts Receivable — Loans and Receivables
  
—   
—   
60,738   
—   
60,738
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Other Assets — Freestanding Derivatives
  
90   
157,629   
13,171   
—   
170,890
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $1,910,965   $4,014,957   $3,277,350   $565,534   $9,768,806
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Liabilities
  
  
  
  
  
Loans Payable — CLO Notes Payable
  $
—   $ 687,122   $
—   $
—   $ 687,122
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Accounts Payable, Accrued Expenses and Other Liabilities
  
  
  
  
  
Freestanding Derivatives
  
436   
90,199   
563,986   
—   
654,621
Contingent Consideration
  
—   
—   
387   
—   
387
Corporate Treasury Commitments
  
—   
—   
1,264   
—   
1,264
Securities Sold, Not Yet Purchased
  
3,886   
—   
—   
—   
3,886
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total Accounts Payable, Accrued Expenses and Other Liabilities
  
4,322   
90,199   
565,637   
—   
660,158
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $
4,322   $ 777,321   $ 565,637   $
—   $1,347,280 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
LLC Limited Liability Company.
(a)
A summary of the investments where the fair value is not readily determinable and NAV is used as a practical expedient as of December 31, 2024 is
presented by strategy type below:
Strategy
  
Fair Value   
Unfunded
Commitments  
Redemption
Frequency
(if currently eligible)  
Redemption
Notice Period
Equity
  
$421,052 
$
—  
(1)
 
(1)
Real Estate
  
52,444  
—   
(2)
 
(2)
Private Equity
  
63,286
50,400
(3)
(3)
Other
  
6,289  
—   
(4)
 
(4)
  
 
 
   
 
 
 
  
 
  
$543,071  
$
50,400   
 
  
 
 
   
 
 
 
  
 
(1)
The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments
representing 69% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date.
Investments representing 31% of the fair value of the investments in this category are redeemable as of the reporting date.
189

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(2)
The Real Estate category includes investments in funds that primarily invest in real estate assets. All investments in this category are redeemable as
of the reporting date.
(3)
The Private Equity category includes investments in funds that primarily invest in infrastructure. All investments in these categories may not be
redeemed at, or within three months of, the reporting date.
(4)
Other is composed of the Credit Driven category, the Commodities category and the Diversified Instruments category. The Credit Driven category
includes investments in hedge funds that invest primarily in domestic and international bonds. The Commodities category includes investments in
commodities-focused funds that primarily invest in futures and physical-based commodity driven strategies. The Diversified Instruments category
includes investments in funds that invest across multiple strategies. All investments in these categories may not be redeemed at, or within three
months of, the reporting date.
(b) Equity Securities, Partnership and LLC Interest includes investments in investment funds.
Equity Securities Subject to Sale Restrictions
Within Investments of Consolidated Blackstone Funds and Other Investments, Blackstone held equity securities subject to sale restrictions with a fair
value of $630.9 million as of December 31, 2024. The nature of such restrictions are contractual or legal in nature and deemed an attribute of the holder
rather than the investment. Contractual restrictions include certain phased restrictions on sale or transfer, underwriter lock-ups and sale or transfer
restrictions applicable to certain Investments of Consolidated Blackstone Funds pledged as collateral. Restrictions will generally lapse over time or after a
predetermined date and the weighted-average remaining duration of such restrictions is 2.2 years. Level III equity securities included in Investments of
Consolidated Blackstone Funds are illiquid and privately negotiated in nature and may also be subject to contractual sale or transfer restrictions including
those pursuant to their respective governing or similar agreements. Investments within Other Investments subject to restrictions on sale or transfer as a result
of pledge arrangements are discussed in Note 18. “Commitments and Contingencies — Contingencies — Strategic Ventures.”
190

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Level III Quantitative Inputs and Assumptions
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of
December 31, 2024. Consistent with presentation in these Notes to Consolidated Financial Statements, this table presents the Level III Investments only of
Consolidated Blackstone Funds and therefore does not reflect any other Blackstone Funds.
 
 
 
 
 
 
 
 
 
 
 
Impact to
 
 
 
 
 
 
 
 
 
 
 
Valuation
 
 
 
 
 
 
 
 
 
 
 
from an
 
 
 
Valuation
 
Unobservable
 
 
 
Weighted-  
Increase
 
Fair Value  
Techniques
 
Inputs
 
Ranges
 
Average (a) 
in Input
Financial Assets
 
 
 
 
 
 
Investments of Consolidated Blackstone Funds
 
 
 
 
 
 
Equity Securities, Partnership and LLC Interests
 
$3,158,254  
 Discounted Cash Flows  
 Discount Rate
  
4.2% - 39.1% 
10.4%
 
Lower
 
 
 
 Exit Multiple - EBITDA   
4.0x - 30.6x  
15.4x
 
Higher
 
 
 
 Exit Capitalization Rate  
3.1% - 15.0% 
5.2%
 
Lower
Debt Instruments
 
 
15,188  
 Third-Party Pricing
  
 n/a
  
 
 
 
 
 
 
 
 
 
 
 
Total Investments of Consolidated Blackstone Funds
 
  3,173,442  
 
 
 
 
Corporate Treasury Investments
 
 
450,345  
 Third-Party Pricing
  
 n/a
  
 
 
 
 
 Transaction Price
  
 n/a
  
 
 
Loans and Receivables
 
 
100,866  
 Discounted Cash Flows  
 Discount Rate
  
8.4% - 11.2% 
9.3%
 
Lower
Other Investments (b)
 
 
189,675  
 Discounted Cash Flows  
 Discount Rate
  
7.1% - 7.7%  
7.4%
 
Lower
 
 
 Third-Party Pricing
  
 n/a
  
 
 
 
 
 
 
 
 
 
 
 
 
$3,914,328  
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
 
Freestanding Derivatives (c)
 
$ 938,216  
 Option Pricing Model   
 Volatility
  
6.0%
 
n/a
 
Higher
Other Liabilities (d)
 
 
872  
 Third-Party Pricing
  
 n/a
  
 
 
 
 
 Other
  
 n/a
  
 
 
 
 
 
 
 
 
 
 
 
 
$ 939,088  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
191

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of
December 31, 2023:
 
 
  
 
  
 
  
 
 
 
 
Impact to
 
 
  
 
  
 
  
 
 
 
 
Valuation
 
 
  
 
  
 
  
 
 
 
 
from an
 
 
  
Valuation
  
Unobservable
  
 
 
Weighted-  
Increase
 
Fair Value   
Techniques
  
Inputs
  
Ranges
 
Average (a) 
in Input
Financial Assets
Investments of Consolidated Blackstone Funds
Equity Securities, Partnership and LLC Interests
 
$2,653,246   
Discounted Cash Flows   
 Discount Rate
  
3.3% - 38.0%  
9.7%
 
Lower
 
  
  
Exit Multiple - EBITDA
  
4.0x - 30.6x  
15.0x
 
Higher
 
  
  
Exit Capitalization Rate   
3.1% - 12.8%  
5.1%
 
Lower
Debt Instruments
 
30,385   
Third-Party Pricing
  
n/a
  
 
 
 
 
 
 
  
  
  
 
 
Total Investments of Consolidated Blackstone Funds
 
2,683,631   
  
  
 
 
Corporate Treasury Investments
 
296,369   
Discounted Cash Flows   
Discount Rate
  
11.2% - 22.4% 
17.1%
 
Lower
 
  
Transaction Price
  
n/a
  
Loans and Receivables
 
60,738   
Discounted Cash Flows   
Discount Rate
  
8.8% - 14.9%
10.3%
Lower
Other Investments (b)
 
236,612   
Third-Party Pricing
  
n/a
  
 
 
 
 
Transaction Price
 
n/a
 
 
 
 
 
 
 
  
  
  
 
 
 
$3,277,350   
  
  
 
 
 
 
 
 
  
  
  
 
 
Financial Liabilities
 
  
  
  
 
 
Freestanding Derivatives (c)
 
$
563,986   
Option Pricing Model
  
Volatility
  
6.3%
 
n/a
 
Higher
Other Liabilities (d)
 
1,651   
Third-Party Pricing
  
n/a
  
 
 
 
  
 Other
  
n/a
  
 
 
 
 
 
 
  
  
  
 
 
 
$
565,637   
  
  
 
 
 
 
 
 
  
  
  
 
 
n/a
  Not applicable.
EBITDA
  Earnings before interest, taxes, depreciation and amortization.
Exit Multiple
  Ranges include the last twelve months EBITDA and forward EBITDA multiples.
Third-Party Pricing
 
Third-Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable
dealers or pricing services.
Transaction Price
  Includes recent acquisitions or transactions.
(a)
  Unobservable inputs were weighted based on the fair value of the investments included in the range.
(b)
  As of December 31, 2024 and 2023, Other Investments includes Level III Freestanding Derivatives.
(c)
 
The volatility of the historical performance of the underlying reference entity is used to project the expected returns relevant for the
fair value of the derivative.
(d)
 
As of December 31, 2024 and 2023, Other Liabilities includes Level III Contingent Consideration and Level III Corporate Treasury
Commitments.
During the year ended December 31, 2024, there have been no changes in valuation techniques within Level II and Level III that have had a material
impact on the valuation of financial instruments.
192

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Rollforward of Level III Financial Assets and Liabilities
The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to
determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III
prior to the end of the respective reporting period. These tables also exclude financial assets and liabilities measured at fair value on a non-recurring basis.
Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains (Losses) from
Fund Investment Activities in the Consolidated Statements of Operations.
Level III Financial Assets at Fair Value
Year Ended December 31,
2024
2023
Investments of
Consolidated
Funds
Loans
and
Receivables
Other
Investments (a)
Total
Investments of
Consolidated
Funds
Loans
and
Receivables
Other
Investments (a)
Total
Balance, Beginning of Period
  $
2,683,631   $
60,738   $
373,024   $ 3,117,393   $
4,249,832   $ 315,039   $
30,971   $ 4,595,842
Transfer In Due to Consolidation and Acquisition
  
85,540  
—  
—  
85,540  
—  
—  
—  
—
Transfer Out Due to Deconsolidation
  
(14,237)  
—  
—  
(14,237)  
(1,453,837)  
—  
—   (1,453,837) 
Transfer Into Level III (b)
  
35,547  
—  
109,347  
144,894  
28,190  
—  
898  
29,088
Transfer Out of Level III (b)
  
(35,373)  
—  
(58)   
(35,431)  
(18,197)  
—  
(3,374)   
(21,571) 
Purchases
  
694,710  
857,245  
465,775  
2,017,730  
294,789  
284,002  
354,202  
932,993
Sales
  
(214,743)  
(784,457)  
(307,926)    (1,307,126)  
(289,721)  
(563,732)  
(14,542)   
(867,995) 
Issuances
  
—  
30,028  
—  
30,028  
—  
68,450  
—  
68,450
Settlements (c)
  
—  
(74,742)  
(21,261)   
(96,003)  
—  
(70,419)  
(8,252)   
(78,671) 
Changes in Gains (Losses) Included in Earnings
  
(61,633)  
12,054  
5,511  
(44,068)  
(127,425)  
27,398  
13,121  
(86,906) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, End of Period
  $
3,173,442   $ 100,866   $
624,412   $ 3,898,720   $
2,683,631   $
60,738   $
373,024   $ 3,117,393
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Changes in Unrealized Gains (Losses) Included in Earnings Related to
Financial Assets Still Held at the Reporting Date
  $
(9,279)   $
(1,297)   $
(1,368)    $
(11,944)   $
(94,828)   $
2,227   $
7,725   $
(84,876) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Level III Financial Liabilities at Fair Value
  
Year Ended December 31,
  
2024
  
2023
  
Freestanding
Derivatives   
Other
Liabilities 
Total
  
Freestanding
Derivatives   
Other
Liabilities 
Total
Balance, Beginning of Period
  
$
563,986   
$ 1,651  
$565,637   
$
48,581   
$ 8,144  
$ 56,725
Transfer In (Out) Due to Consolidation and Acquisition
  
—   
—  
—   
—   
800  
800
Sales
  
—   
—  
—   
—   
(413)  
(413) 
Changes in Losses (Gains) Included in Earnings
  
374,230   
(779)  
373,451   
515,405   
(6,880)  
508,525
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Balance, End of Period
  
$
938,216
$
872
$939,088
$
563,986
$ 1,651
$565,637
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
Changes in Unrealized Losses (Gains) Included in Earnings Related to Financial Liabilities Still Held at the
Reporting Date
  
$
374,230   
$
(779)  
$373,451   
$
515,405   
$ (6,880)  
$508,525
  
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
(a)
Represents freestanding derivatives, corporate treasury investments and Other Investments.
(b) Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and
liabilities.
193

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(c)
For Freestanding Derivatives included within Other Investments, Settlements includes all ongoing contractual cash payments made or received over the
life of the instrument.
8.
Variable Interest Entities
Pursuant to GAAP consolidation guidance, Blackstone consolidates certain VIEs for which it is the primary beneficiary either directly or indirectly, through
a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose
of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance-based fees. The investment
strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds are similar, including loss of invested capital and
loss of management fees and performance-based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers
itself the sponsor of the applicable Blackstone Fund. Blackstone does not provide performance guarantees and has no other financial obligation to provide
funding to consolidated VIEs other than its own capital commitments.
The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to Blackstone
for the consolidated VIEs’ liabilities.
Blackstone holds variable interests in certain VIEs which are not consolidated as it is determined that Blackstone is not the primary beneficiary.
Blackstone’s involvement with such entities is in the form of direct and indirect equity interests and fee arrangements. The maximum exposure to loss
represents the loss of assets recognized by Blackstone relating to non-consolidated VIEs and any clawback obligation relating to previously distributed
Performance Allocations. Blackstone’s maximum exposure to loss relating to non-consolidated VIEs was as follows:
December 31,
2024
December 31,
2023
Investments
  
$4,537,481   
$3,751,591
Due from Affiliates
  
242,109   
203,187
Potential Clawback Obligation
  
41,908   
72,119
  
 
 
 
  
 
 
 
Maximum Exposure to Loss
  
$4,821,498
$4,026,897
  
 
 
 
  
 
 
 
Amounts Due to Non-Consolidated VIEs
  
$
855   
$
223 
  
 
 
 
  
 
 
 
9.
Repurchase Agreements
As of December 31, 2024, Blackstone pledged securities with a carrying value of $6.8 million. As of December 31, 2023, Blackstone had no Repurchase
Agreements and hence no pledged securities.
194

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table provides information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged as of December 31,
2024.
 
  
December 31, 2024
 
  
Remaining Contractual Maturity of the Agreements
 
  
Overnight and
Continuous   
Up to
30 Days   
30 - 90
Days   
Greater than
90 days
  
Total
Repurchase Agreements
  
  
  
  
  
Loans
  $
—    $6,758   $ —   $
—   $6,758 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities”
    $6,758
  
  
  
 
 
 
Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities”
    $
—
  
  
  
 
 
 
10. Other Assets
Other Assets consists of the following:
 
  
December 31,
 
  
2024
  
2023
Furniture, Equipment and Leasehold Improvements
  
$ 989,518   
$ 937,355
Less: Accumulated Depreciation
  
(483,200)   
(394,602) 
  
 
 
 
  
 
 
 
Furniture, Equipment and Leasehold Improvements, Net
  
506,318   
542,753
Prepaid Expenses
  
192,777   
207,886
Freestanding Derivatives
  
180,309   
170,890
Other
  
68,455   
23,319
  
 
 
 
  
 
 
 
  
$ 947,859   
$ 944,848
  
 
 
 
  
 
 
 
Depreciation expense of $98.8 million, $94.1 million and $69.2 million related to furniture, equipment and leasehold improvements for the years ended
December 31, 2024, 2023 and 2022, respectively, is included in General, Administrative and Other in the Consolidated Statements of Operations.
11. Offsetting of Assets and Liabilities
The following tables present the offsetting of assets and liabilities as of December 31, 2024 and 2023:
December 31, 2024
Gross and Net
Amounts of Assets
Presented in the
Statement of
Financial Condition
Gross Amounts Not Offset in
the Statement of
Financial Condition
Financial
Instruments (a)
Cash Collateral
Received
Net Amount
Assets
  
  
  
  
Freestanding Derivatives
   $
193,552    $
122,391    $
54,388    $   16,773 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
195

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
December 31, 2024
Gross and Net
Amounts of Liabilities
Presented in the
Statement of
Financial Condition
Gross Amounts Not Offset in
the Statement of
Financial Condition
Financial
Instruments (a)
Cash Collateral
Pledged
Net
Amount
Liabilities
  
  
  
  
Freestanding Derivatives
   $
137,551    $
125,056    $
10    $
12,485
Repurchase Agreements
  
6,758   
6,758   
—   
—
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   $
144,309     $
131,814    $
    10    $    12,485 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
December 31, 2023
Gross and Net
Amounts of Assets
Presented in the
Statement of
Financial Condition
Gross Amounts Not Offset in
the Statement of
Financial Condition
Financial
Instruments (a)
Cash Collateral
Received
Net
Amount
Assets
  
  
  
  
Freestanding Derivatives
   $
  190,079    $  107,330    $
 49,532    $   33,217 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
December 31, 2023
Gross and Net
Amounts of Liabilities
Presented in the
Statement of
Financial Condition
Gross Amounts Not Offset in
the Statement of
Financial Condition
Net
Amount
Financial
Instruments (a)
Cash Collateral
Pledged
Liabilities
  
  
  
  
Freestanding Derivatives
   $
 90,635     $
 87,777    $
   625    $    2,233 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
Amounts presented are inclusive of both legally enforceable master netting agreements and financial instruments received or pledged as collateral.
Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net balance sheet exposure.
Repurchase Agreements and Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the
Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Consolidated Statements of Financial
Condition. See Note 10. “Other Assets” for the components of Other Assets.
196

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Notional Pooling Arrangements
Blackstone has notional cash pooling arrangements with financial institutions for cash management purposes. These arrangements allow for cash
withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on
deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of December 31, 2024, the
aggregate cash balance on deposit relating to the cash pooling arrangements was $981.9 million, which was offset and reported net of the accompanying
overdraft of $981.8 million.
12. Borrowings
On December 6, 2024, Blackstone, through its indirect subsidiary Blackstone Reg Finance Co. L.L.C., issued $750 million aggregate principal amount of
senior notes due December 6, 2034 pursuant to a Registration Statement on Form S-3 (the “Registered 2034 Notes”). The Registered 2034 Notes have an
interest rate of 5.000% per annum, accruing from December 6, 2024. Interest on the Registered 2034 Notes is payable semi-annually in arrears on June 6 and
December 6 of each year commencing on June 6, 2025.
All of Blackstone’s outstanding senior notes as of December 31, 2024 are unsecured and unsubordinated obligations of Blackstone Holdings Finance Co.
L.L.C. or Blackstone Reg Finance Co. L.L.C. (together, the “Issuers”), as applicable, both indirect subsidiaries of Blackstone, that are fully and unconditionally
guaranteed by Blackstone Inc. and its indirect subsidiaries, Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone
Holdings III L.P. and Blackstone Holdings IV L.P. (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors.
Transaction costs related to senior note issuances have been capitalized and are amortized over the life of each respective note.
Blackstone borrows and enters into credit agreements for its general operating and investment purposes and certain Blackstone Funds borrow to meet
financing needs of their operating and investing activities. Borrowing facilities have been established for the benefit of selected Blackstone Funds. When a
Blackstone Fund borrows from the facility in which it participates, the proceeds from the borrowing are strictly limited for its intended use by the borrowing
fund and not available for other Blackstone purposes. Blackstone’s credit facilities consist of the following:
197

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
December 31,
  
2024
 
2023
  
Credit
Available
  
Borrowing
Outstanding   
Effective
Interest
Rate
 
Credit
Available
  
Borrowing
Outstanding   
Effective
Interest
Rate
Revolving Credit Facility (a)
  
$ 4,325,000
$
—
-
$ 4,325,000
$
—
— 
Blackstone Issued Senior Notes (b)
  
  
  
 
  
  
2.000%, Due 5/19/2025
  
310,620   
310,620   
2.10%   
331,170   
331,170   
2.16% 
1.000%, Due 10/5/2026
  
621,240   
621,240   
1.13%   
662,340   
662,340   
1.16% 
3.150%, Due 10/2/2027
  
300,000   
300,000   
3.30%   
300,000   
300,000   
3.30% 
5.900%, Due 11/3/2027
  
600,000   
600,000   
6.13%   
600,000   
600,000   
6.13% 
1.625%, Due 8/5/2028
  
650,000   
650,000   
1.79%   
650,000   
650,000   
1.79% 
1.500%, Due 4/10/2029
  
621,240   
621,240   
1.56%   
662,340   
662,340   
1.60% 
2.500%, Due 1/10/2030
  
500,000   
500,000   
2.73%   
500,000   
500,000   
2.73% 
1.600%, Due 3/30/2031
  
500,000   
500,000   
1.71%   
500,000   
500,000   
1.71% 
2.000%, Due 1/30/2032
  
800,000   
800,000   
2.18%   
800,000   
800,000   
2.18% 
2.550%, Due 3/30/2032
  
500,000   
500,000   
2.67%   
500,000   
500,000   
2.67% 
6.200%, Due 4/22/2033
  
900,000   
900,000   
6.33%   
900,000   
900,000   
6.33% 
3.500%, Due 6/1/2034
  
517,700   
517,700   
3.79%   
551,950   
551,950   
3.90% 
5.000%, Due 12/6/2034
  
750,000   
750,000   
5.23%   
—   
—   
—
6.250%, Due 8/15/2042
  
250,000   
250,000   
6.65%   
250,000   
250,000   
6.65% 
5.000%, Due 6/15/2044
  
500,000   
500,000   
5.16%   
500,000   
500,000   
5.16% 
4.450%, Due 7/15/2045
  
350,000   
350,000   
4.56%   
350,000   
350,000   
4.56% 
4.000%, Due 10/2/2047
  
300,000   
300,000   
4.20%   
300,000   
300,000   
4.20% 
3.500%, Due 9/10/2049
  
400,000   
400,000   
3.61%   
400,000   
400,000   
3.61% 
2.800%, Due 9/30/2050
  
400,000   
400,000   
2.88%   
400,000   
400,000   
2.88% 
2.850%, Due 8/5/2051
  
550,000   
550,000   
2.91%   
550,000   
550,000   
2.91% 
3.200%, Due 1/30/2052
  
1,000,000   
1,000,000   
3.27%   
1,000,000   
1,000,000   
3.27% 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
15,645,800   
11,320,800   
 
15,032,800   
10,707,800   
Other (c)
  
  
  
 
  
  
Secured Borrowing, Due 10/27/2033
  
19,949   
19,949   
6.94%   
19,949   
19,949   
7.69% 
Secured Borrowing, Due 1/29/2035
  
20,000   
20,000   
6.94%   
20,000   
20,000   
3.72% 
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
15,685,749   
11,360,749   
 
15,072,749   
10,747,749   
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
Borrowings of Consolidated
  
  
  
 
  
  
Blackstone Funds
  
  
  
 
  
  
CLO Notes Payable (d)
  
99,419   
99,419   
 8.72%   
858,133   
858,133   
 7.57%  
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
99,419   
99,419   
 
858,133   
858,133   
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
  
$15,785,168   
$11,460,168   
 
$15,930,882   
$11,605,882   
  
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
(a)
Represents the Revolving Credit Facility of Blackstone, through Blackstone Holdings Finance Co. L.L.C. Interest on the borrowings is based on an adjusted
Secured Overnight Finance Rate (“SOFR”) or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee of
0.06%. The margin above adjusted SOFR used to calculate interest on borrowings was 0.75% plus an additional credit spread adjustment of 0.10% to
account for the difference between London Interbank Offered Rate (“LIBOR”) and SOFR. The
198

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
margin is subject to change based on Blackstone’s credit rating. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or
Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of
default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under
management, each tested quarterly. As of December 31, 2024 and 2023, Blackstone had outstanding but undrawn letters of credit against the Revolving
Credit Facility of $38.9 million and $40.3 million, respectively. The amount Blackstone can draw from the Credit Facility is reduced by the undrawn letters
of credit, however the Credit Available presented herein is not reduced by the undrawn letters of credit. In February 2025, Blackstone drew
$900.0 million under the Revolving Credit Facility.
(b) The Issuers have issued long-term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the
Issuers. The Notes are fully and unconditionally guaranteed, jointly and severally, by Blackstone, the Guarantors and the Issuers. The guarantees are
unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note
liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuers’ and the Guarantors’
ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge,
consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not
less than 25% in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and
during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency,
receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and
payable. All or a portion of the Notes may be redeemed at the Issuers’ option in whole or in part, at any time and from time to time, prior to their stated
maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may
require the Issuers to repurchase the Notes at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased plus
any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase.
(c)
Principal on the Secured Borrowings will be paid over the term with repayment amounts dependent on the performance of the underlying assets
securing each borrowing. Repayment amounts from the underlying assets are restricted to solely satisfy the Secured Borrowings obligations. As of
December 31, 2024, the fair value of the assets securing both Secured Borrowings equaled $49.6 million.
(d) CLO Notes Payable have maturity dates ranging from June 2025 to January 2037. A portion of the borrowing outstanding is comprised of subordinated
notes which do not have contractual interest rates but instead pay distributions from the excess cash flows of the CLO vehicles.
The following table presents the general characteristics of each of Blackstone’s borrowings as of December 31, 2024 and 2023, as well as their carrying
value and fair value. The borrowings are included in Loans Payable within the Consolidated Statements of Financial Condition. Each of the Senior Notes were
issued at a discount through Blackstone Holdings Finance Co. L.L.C. or Blackstone Reg Finance Co. L.L.C., as applicable, both indirect subsidiaries of Blackstone.
The Senior Notes accrue interest from the issue date thereof and pay interest in arrears on a semi-annual basis or annual basis. The Secured Borrowings were
issued at par, accrue interest from the issue date thereof and pay interest in arrears on a quarterly basis. CLO Notes Payable pay interest in arrears on a
quarterly basis.
199

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
December 31,
  
2024
  
2023
Description
  
Carrying
Value
  
Fair Value
  
Carrying
Value
  
Fair Value
Blackstone Operating Borrowings
  
  
  
  
Senior Notes (a)
  
  
  
  
2.000%, Due 5/19/2025
  $
315,860   $
309,502   $
336,005   $
324,778 
1.000%, Due 10/5/2026
  
624,078   
601,801   
664,085   
620,864
3.150%, Due 10/2/2027
  
298,864   
287,007   
298,476   
283,059
5.900%, Due 11/3/2027
  
596,505   
617,550   
595,411   
625,158
1.625%, Due 8/5/2028
  
646,374   
579,189   
645,406   
566,508
1.500%, Due 4/10/2029
  
626,043   
584,295   
666,655   
601,272
2.500%, Due 1/10/2030
  
494,568   
444,970   
493,573   
431,005
1.600%, Due 3/30/2031
  
496,911   
403,415   
496,447   
391,955
2.000%, Due 1/30/2032
  
790,508   
644,816   
789,283   
633,153
2.550%, Due 3/30/2032
  
496,146   
417,830   
495,670   
410,755
6.200%, Due 4/22/2033
  
892,561   
946,818   
891,899   
962,037
3.500%, Due 6/1/2034
  
489,624   
522,877   
521,549   
536,319
5.000%, Due 12/6/2034
  
741,218   
726,023   
—   
—
6.250%, Due 8/15/2042
  
239,756   
254,095   
239,457   
263,270
5.000%, Due 6/15/2044
  
490,261   
457,335   
489,975   
464,560
4.450%, Due 7/15/2045
  
344,840   
290,836   
344,691   
297,486
4.000%, Due 10/2/2047
  
291,372   
230,337   
291,149   
233,685
3.500%, Due 9/10/2049
  
392,618   
277,496   
392,436   
294,608
2.800%, Due 9/30/2050
  
394,252   
238,256   
394,103   
252,008
2.850%, Due 8/5/2051
  
543,478   
329,791   
543,317   
352,457
3.200%, Due 1/30/2052
  
987,682   
652,770   
987,401   
696,740
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   11,193,519    9,817,009    10,576,988    9,241,677
Other
  
  
  
  
Secured Borrowing, Due 10/27/2033
  
19,949   
19,949   
19,949   
19,949
Secured Borrowing, Due 1/29/2035
  
20,000   
20,000   
20,000   
20,000
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   11,233,468    9,856,958    10,616,937    9,281,626
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Borrowings of Consolidated
  
  
  
  
Blackstone Funds
  
  
  
  
CLO Notes Payable
  
87,488   
87,488   
687,122   
687,122
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
87,488   
87,488   
687,122   
687,122
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  $11,320,956   $9,944,446   $11,304,059   $9,968,748 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy.
200

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Scheduled principal payments for borrowings at December 31, 2024 were as follows:
Blackstone
Operating
Borrowings
Borrowings of
Consolidated
Blackstone Funds
Total
Borrowings
2025
  
$
318,843   
$
—    
$
318,843 
2026
  
627,287   
—   
627,287
2027
  
911,589   
—   
911,589
2028
  
660,131   
—   
660,131
2029
  
625,199   
—   
625,199
Thereafter
  
8,217,700   
99,419   
8,317,119
  
 
 
 
  
 
 
 
  
 
 
 
  
$11,360,749   
$
99,419   
$11,460,168
  
 
 
 
  
 
 
 
  
 
 
 
13. Leases
Blackstone enters into non-cancelable lease and sublease agreements primarily for office space, which expire on various dates through 2043. In addition
to contractual rent payments, which are generally subject to escalation provisions, occupancy lease agreements may include payments for certain costs
incurred by the landlord, such as building expenses and utilities. To the extent these costs are fixed or determinable, they are included as part of the minimum
lease payments used to measure the Operating Lease Liability and are included in Straight-Line Lease Cost. At December 31, 2024 and 2023, Blackstone
maintained irrevocable standby letters of credit and cash deposits as security for the leases of $14.1 million and $14.7 million, respectively. As of
December 31, 2024, the weighted-average remaining lease term was 8.1 years, and the weighted-average discount rate was 3.4%.
The components of lease expense were as follows:
Year Ended December 31,
2024
2023
2022
Operating Lease Cost
  
  
  
Straight-Line Lease Cost (a)
  
$ 156,680   
$ 160,534   
$ 139,740
Variable Lease Cost (b)
  
20,222   
15,268   
12,072
Sublease Income
  
(65)   
(63)   
(888) 
  
 
 
 
  
 
 
 
  
 
 
 
  
$ 176,837   
$ 175,739   
$ 150,924
  
 
 
 
  
 
 
 
  
 
 
 
(a)
Straight-line lease cost includes short-term leases, which are immaterial.
(b) Variable lease cost approximates variable lease cash payments.
Supplemental cash flow information related to leases was as follows:
Year Ended December 31,
2024
2023
2022
Operating Cash Flows for Operating Lease Liabilities
  
$ 145,388   
$ 127,183   
$ 107,249 
Non-Cash Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities
  
$ 129,451   
$ 117,155   
$ 278,010
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Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table shows the undiscounted cash flows on an annual basis for Operating Lease Liabilities as of December 31, 2024:
2025
  
$ 178,730
2026
  
176,178
2027
  
173,142
2028
  
167,033
2029
  
106,720
Thereafter
  
281,538
  
 
 
 
Total Lease Payments (a)
  
1,083,341
Less: Imputed Interest
  
(117,599) 
  
 
 
 
Present Value of Operating Lease Liabilities
  
$ 965,742
  
 
 
 
(a)
Excludes signed leases that have not yet commenced.
14. Income Taxes
The Income Before Provision for Taxes consists of the following:
Year Ended December 31,
2024
2023
2022
Income Before Provision (Benefit) for Taxes
U.S. Domestic Income
   $ 6,029,702    $ 2,577,184    $ 3,023,588 
Foreign Income
  
429,778   
380,530   
438,201
  
 
 
 
  
 
 
 
  
 
 
 
   $  6,459,480    $  2,957,714    $  3,461,789
  
 
 
 
  
 
 
 
  
 
 
 
The Provision for Taxes consists of the following:
 
  
Year Ended December 31,
 
  
2024
  
2023
  
2022
Current
  
  
  
Federal Income Tax
  
$
424,659    $
362,144    $
503,075
Foreign Income Tax
  
128,757   
112,861   
75,859
State and Local Income Tax
  
120,454   
186,851   
255,421
  
 
 
 
  
 
 
 
  
 
 
 
  
673,870
661,856
834,355
  
 
 
 
  
 
 
 
  
 
 
 
Deferred
  
  
  
 
Federal Income Tax
  
265,749   
(94,732)   
(312,961) 
Foreign Income Tax
  
(471)   
(7,020)   
(3,048) 
State and Local Income Tax
  
82,523   
(46,643)   
(45,466) 
  
 
 
 
  
 
 
 
  
 
 
 
  
347,801   
(148,395)   
(361,475) 
  
 
 
 
  
 
 
 
  
 
 
 
Provision for Taxes
  
$ 1,021,671    $   513,461    $   472,880
  
 
 
 
  
 
 
 
  
 
 
 
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Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table summarizes Blackstone’s tax position:
 
  
Year Ended December 31,
 
  
2024
 
2023
 
2022
Income Before Provision for Taxes
  $6,459,480
  $2,957,714
  $3,461,789
Provision for Taxes
  $1,021,671
  $ 513,461
  $ 472,880
Effective Income Tax Rate
  
15.8%  
17.4%  
13.7% 
The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate:
 
  
 
 
 
 
 
 
2024  
2023
 
  
Year Ended December 31,
 
vs.
 
vs.
 
  
2024  
2023  
2022  
2023  
2022
Statutory U.S. Federal Income Tax Rate
  
21.0%  
21.0%  
21.0%  
—
 
—
Income Passed Through to Non-Controlling Interest Holders
  
-9.0%  
-8.2%  
-8.1%  
-0.8%  
-0.1% 
State and Local Income Taxes
  
2.9%  
4.3%  
6.0%  
-1.4%  
-1.7% 
Basis Adjustment (a)
  
—
 
—
 
-4.6%  
—
 
4.6% 
Other
  
0.9%  
0.3%  
-0.6%  
0.6%  
0.9% 
  
  
 
 
  
 
 
  
 
 
  
 
 
  
 
Effective Income Tax Rate
  
15.8%  
17.4%  
13.7%  
-1.6%  
3.7% 
  
  
 
 
  
 
 
  
 
 
  
 
 
  
 
(a)
Represents the impact of the out-of-period adjustment made during the year ended December 31, 2022 to revise the book investment basis used to
calculate deferred tax assets and the deferred tax provision.
Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for
financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are
expected to reverse. A summary of the tax effects of the temporary differences is as follows:
December 31,
2024
2023
Deferred Tax Assets
Investment Basis Differences/Net Unrealized Gains and Losses
  
$1,737,508    $2,210,974
Other
  
287,639   
120,420
  
 
 
 
  
 
 
 
Total Deferred Tax Assets Before Valuation Allowance
  
2,025,147   
2,331,394
Valuation Allowance
  
(21,199)   
—
  
 
 
 
  
 
 
 
Total Deferred Tax Assets
  
2,003,948
2,331,394
  
 
 
 
  
 
 
 
Deferred Tax Liabilities
  
  
Investment Basis Differences/Net Unrealized Gains and Losses
  
12,282   
18,333
Other
  
1,953   
2,163
  
 
 
 
  
 
 
 
Total Deferred Tax Liabilities
  
14,235   
20,496 
  
 
 
 
  
 
 
 
Net Deferred Tax Assets
  
$1,989,713    $2,310,898
  
 
 
 
  
 
 
 
The decrease in the Net Deferred Tax Assets for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due
to an out-of-period adjustment Blackstone recorded to correct the allocation of book equity between Additional Paid-In-Capital and Non-Controlling Interests
in Blackstone Holdings
203

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
related to change in ownership transactions, including repurchases, which had a corresponding impact to the investment basis used to calculate deferred
taxes. The cumulative impact of the correction related to prior years resulted in a decrease of $317.1 million in Deferred Tax Assets as of December 31, 2024,
with a corresponding increase to Additional Paid-in-Capital as of December 31, 2024. Realization of deferred tax assets depends on the expectation and
character of future taxable income. Blackstone has no significant net operating losses carryforward as of December 31, 2024. See Note 15. “Earnings Per Share
and Stockholders’ Equity — Share Repurchase Program” for further information on the out-of-period adjustment.
Blackstone has determined that deferred tax assets recorded during the period related to certain state and local tax credits are not more likely than not
to be realized and therefore has established a valuation allowance of $21.2 million as of December 31, 2024.
In evaluating the ability to realize deferred tax assets, Blackstone among other things, considers projections of taxable income (including character of
such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about
future taxable income require significant judgment and are consistent with the plans and estimates that Blackstone uses to manage its business. To the extent
any portion of the deferred tax assets are not considered to be more likely than not to be realized, valuation allowances are recorded.
Currently, Blackstone does not believe it meets the indefinite reversal criteria that would preclude Blackstone from recognizing a deferred tax liability
with respect to its foreign subsidiaries. Therefore, if applicable Blackstone recorded a deferred tax liability for any outside basis difference of an investment in
a foreign subsidiary.
Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is
subject to examination by federal and certain state, local and foreign tax authorities. As of December 31, 2024, the most material jurisdictions where
Blackstone entities are under active examination are New York State and City. The following are the major filing jurisdictions and their respective earliest open
period subject to examination:
Jurisdiction
  
Year
Federal
  
2021 
New York City
  
2009
New York State
  
2016
United Kingdom
  
2011
Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were:
 
  
December 31,
 
  
2024
  
2023
  
2022
Unrecognized Tax Benefits — January 1
  
$210,778    $153,624    $ 47,501 
Additions Based on Tax Positions Related to Current Year
  
46,572   
19,807   
—
Reductions for Tax Positions of Current Year
  
—   
(19,737)   
—
Additions for Tax Positions of Prior Years
  
—   
57,081   
106,059
Reductions for Tax Positions of Prior Years
  
(6,111)   
—   
—
Exchange Rate Fluctuations
  
218   
3   
64
  
 
 
 
  
 
 
 
  
 
 
 
Unrecognized Tax Benefits — December 31
  
$251,457    $210,778    $153,624
  
 
 
 
  
 
 
 
  
 
 
 
204

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
If recognized, the above tax benefits would reduce the annual effective rate. Blackstone believes the liability established for unrecognized tax benefits is
adequate in relation to the potential for additional assessments. It is reasonably possible that significant changes in the balance of unrecognized tax benefits
may occur during the twelve months subsequent to December 31, 2024; however, it is not possible to estimate the expected change to the total unrecognized
tax benefits and its impact on Blackstone’s effective tax rate during the twelve months subsequent to December 31, 2024.
The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial
Condition.
During the years ended December 31, 2024, 2023 and 2022, Blackstone accrued no penalties and accrued interest expense related to unrecognized tax
benefits of $29.1 million, $22.8 million, and $32.6 million, respectively.
Other Income — Change in Tax Receivable Agreement Liability
In 2024 and 2023, the $(41.2) million and $(27.2) million, respectively, Change in Tax Receivable Agreement Liability was primarily attributable to a
change in Blackstone’s state tax apportionment.
15. Earnings Per Share and Stockholders’ Equity
Earnings Per Share
Basic and diluted net income per share of common stock for the years ended December 31, 2024, 2023 and 2022 was calculated as follows:
  
Year Ended December 31,
  
2024
  
2023
  
2022
Net Income for Per Share of Common Stock Calculations
  
  
  
Net Income Attributable to Blackstone Inc., Basic and Diluted
   $
2,776,508    $
1,390,880    $
1,747,631
  
 
 
 
  
 
 
 
  
 
 
 
Shares/Units Outstanding
  
  
  
Weighted-Average Shares of Common Stock Outstanding, Basic
  
766,487,450   
755,204,556   
740,664,038
Weighted-Average Shares of Unvested Deferred Restricted Common Stock (a)
  
159,058   
215,380   
278,361
  
 
 
 
  
 
 
 
  
 
 
 
Weighted-Average Shares of Common Stock Outstanding, Diluted
  
766,646,508   
755,419,936   
740,942,399 
  
 
 
 
  
 
 
 
  
 
 
 
Net Income Per Share of Common Stock
  
  
  
Basic
   $
3.62    $
1.84    $
2.36
  
 
 
 
  
 
 
 
  
 
 
 
Diluted
   $
3.62    $
1.84    $
2.36
  
 
 
 
  
 
 
 
  
 
 
 
Dividends Declared Per Share of Common Stock (b)
   $
3.45    $
3.32    $
4.94
  
 
 
 
  
 
 
 
  
 
 
 
(a)
For the years ended December 31, 2024 and 2023, this includes shares to be issued under the contingently issuable share model for an acquisition-
related compensation arrangement.
(b) Dividends declared reflects the calendar date of the declaration for each distribution. The fourth quarter dividends, if any, for any fiscal year will be
declared and paid in the subsequent fiscal year.
In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on Net Income Per Share of Common Stock,
Blackstone considered that net income available to holders of shares of common stock would increase due to the elimination of non-controlling interests in
Blackstone Holdings, inclusive of any tax impact. The hypothetical conversion may be dilutive to the extent there is activity at the Blackstone Inc. level that has
not previously been attributed to the non-controlling interests or if there is a change in tax rate as a result of a hypothetical conversion.
205

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table summarizes the anti-dilutive securities for the periods indicated:
  
Year Ended December 31,
  
2024
  
2023
  
2022
Weighted-Average Blackstone Holdings Partnership Units
  
  455,306,643   
  460,897,953   
  466,083,269 
Stockholders’ Equity
As of December 31, 2024, Blackstone had 10 billion shares of preferred stock authorized with a par value of $0.00001 per share, of which (a) 999,999,000
shares are designated as Series I preferred stock and (b) 1,000 shares are designated as Series II preferred stock. The remaining nine billion shares may be
designated from time to time in accordance with Blackstone’s certificate of incorporation. There was one share of Series I preferred stock and one share of
Series II preferred stock issued and outstanding as of December 31, 2024.
Under Blackstone’s certificate of incorporation and Delaware law, holders of Blackstone’s common stock are entitled to vote, together with holders of
Blackstone’s Series I preferred stock, voting as a single class, on a number of significant matters, including certain sales, exchanges or other dispositions of all
or substantially all of Blackstone’s assets, a merger, consolidation or other business combination, the removal of the Series II Preferred Stockholder and forced
transfer by the Series II Preferred Stockholder of its shares of Series II preferred stock and the designation of a successor Series II Preferred Stockholder. The
Series II Preferred Stockholder elects Blackstone’s directors. Holders of Blackstone’s Series I preferred stock and Series II preferred stock are not entitled to
dividends from Blackstone, or receipt of any of Blackstone’s assets in the event of any dissolution, liquidation or winding up. Blackstone Partners L.L.C. is the
sole holder of the Series I preferred stock and Blackstone Group Management L.L.C. is the sole holder of the Series II preferred stock.
Share Repurchase Program
On July 16, 2024, Blackstone’s board of directors authorized the repurchase of up to $2.0 billion of common stock and Blackstone Holdings Partnership
Units. This authorization replaced Blackstone’s prior $2.0 billion repurchase authorization. Under the repurchase program, repurchases may be made from
time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a
variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or
discontinued at any time and does not have a specified expiration date.
During the year ended December 31, 2022, Blackstone repurchased 3.9 million shares of common stock at a total cost of $392.0 million. During the year
ended December 31, 2023, Blackstone repurchased 3.7 million shares of common stock at a total cost of $351.3 million. During the year ended December 31,
2024, Blackstone repurchased 4.0 million shares of common stock at a total cost of $520.4 million. As of December 31, 2024, the amount remaining available
for repurchases under the program was $1.8 billion.
Change in Blackstone Inc. Ownership Interest
During the year ended December 31, 2024, Blackstone recorded an out-of-period adjustment to correct the allocation of book equity between Additional
Paid-In-Capital and Non-Controlling Interests in Blackstone Holdings related to change in ownership transactions, including repurchases, and the
corresponding impact to the investment basis used to calculate deferred taxes. The cumulative impact of the correction related to prior years
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
resulted in a decrease of $1.1 billion in Non-Controlling Interests in Blackstone Holdings as of December 31, 2024, a decrease of $317.1 million in Deferred Tax
Assets as of December 31, 2024, and a net increase of $781.6 million in Additional Paid-In-Capital as of December 31, 2024. The impact of the out-of-period
adjustment is reflected in Change in Blackstone Inc.’s Ownership Interest and Deferred Tax Effects Resulting from Change in Blackstone Inc.’s Ownership
Interest within the Consolidated Statement of Changes in Equity. Blackstone concluded the out-of-period adjustment was not material to the current or prior
periods.
Shares Eligible for Dividends and Distributions
As of December 31, 2024, the total shares of common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and
distributions were as follows:
 
  
Shares/Units
Common Stock Outstanding
  
731,925,965
Unvested Participating Common Stock
  
36,796,276 
  
  
 
Total Participating Common Stock
  
768,722,241
Participating Blackstone Holdings Partnership Units
  
452,448,896
  
  
 
  
1,221,171,137
  
  
 
16. Equity-Based Compensation
Blackstone has granted equity-based compensation awards to Blackstone’s senior managing directors, non-partner professionals, non-professionals and
selected external advisers under Blackstone’s Amended and Restated 2007 Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of
options, share appreciation rights or other share-based awards (shares, restricted shares, restricted shares of common stock, deferred restricted shares of
common stock, phantom restricted shares of common stock or other share-based awards based in whole or in part on the fair value of shares of common
stock or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1, 2024, Blackstone had the
ability to grant 173,443,452 shares under the Equity Plan.
For the years ended December 31, 2024, 2023 and 2022, Blackstone recorded compensation expense of $1.2 billion, $987.5 million, and $846.3 million,
respectively, in relation to its equity-based awards with corresponding tax benefits of $298.2 million, $183.4 million, and $135.9 million, respectively.
As of December 31, 2024, there was $2.5 billion of estimated unrecognized compensation expense related to unvested awards, including compensation
with performance conditions where it is probable that the performance condition will be met. This cost is expected to be recognized over a weighted-average
period of 3.4 years.
Total vested and unvested outstanding shares, including common stock, Blackstone Holdings Partnership Units and deferred restricted shares of common
stock, were 1,221,159,186 as of December 31, 2024. Total outstanding phantom shares were 83,228 as of December 31, 2024.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
A summary of the status of Blackstone’s unvested equity-based awards as of December 31, 2024 and of changes during the period January 1, 2024
through December 31, 2024 is presented below:
  
Blackstone Holdings
  
Blackstone Inc.
  
 
 
 
  
Equity Settled Awards
  
Cash Settled Awards
Unvested Shares/Units
  
Partnership
Units
 
Weighted-
Average
Grant
Date Fair
Value
  
Deferred
Restricted
Shares of
Common
Stock
 
Weighted-
Average
Grant
Date Fair
Value
  
Phantom
Shares
 
Weighted-
Average
Grant
Date Fair
Value
Balance, December 31, 2023
  
4,585,893  
$ 38.94   
36,456,644   
$ 86.05   
85,447  
$114.50 
Granted
    
—  
—      11,894,835  
131.67     
38,819  
121.94
Vested
  
(3,700,053)  
40.06   
(12,165,823)  
79.92   
(32,886)  
144.80
Forfeited
  
(35,431)  
46.58   
(2,257,086)  
101.29  
(20,863)  
130.85
  
 
 
 
 
  
 
 
 
 
  
 
 
 
 
Balance, December 31, 2024
  
850,409  
$ 33.38   
33,928,570  
$103.44  
    70,517  
$187.66
  
 
 
 
 
  
 
 
 
 
  
 
 
 
 
Shares/Units Expected to Vest
The following unvested shares and units, after expected forfeitures, as of December 31, 2024, are expected to vest:
Shares/Units
Weighted-Average
Service Period in
Years
Blackstone Holdings Partnership Units
  
828,312   
0.6
Deferred Restricted Shares of Common Stock
  
30,826,072   
2.8
  
  
 
  
 
Total Equity-Based Awards
  
31,654,384   
2.7
  
  
 
  
 
Phantom Shares
  
59,807   
2.9
  
  
 
  
 
Deferred Restricted Shares of Common Stock and Phantom Shares
Blackstone has granted deferred restricted shares of common stock to certain senior and non-senior managing director professionals, analysts and senior
finance and administrative personnel and selected external advisers and phantom shares (cash settled equity-based awards) to other senior and non-senior
managing director employees. Holders of deferred restricted shares of common stock and phantom shares are not entitled to any voting rights. Only phantom
shares are to be settled in cash. Deferred restricted shares of common stock where the number of shares have not been set are liability classified and
excluded from the above tables.
The fair values of deferred restricted shares of common stock have been derived based on the closing price of common stock on the date of the grant,
multiplied by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to 5 years. Additionally, the calculation of
the compensation expense assumes forfeiture rates based on historical turnover rates, ranging from 1.0% to 13.8% annually by employee class, and a per
share discount on non-participating shares, ranging from $1.07 to $21.53.
The phantom shares vest over the assumed service period, which ranges from 1 to 5 years. On each such vesting date, Blackstone delivered or will deliver
cash to the holder in an amount equal to the number of phantom shares held multiplied by the then fair market value of Blackstone’s common stock on such
date. Additionally, the calculation of the compensation expense assumes a forfeiture rate based on historical turnover rates, ranging from 6.8% to 13.8%
annually by employee class. Blackstone is accounting for these cash settled awards as a liability.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Blackstone paid $3.9 million, $1.7 million, and $0.6 million to employees in settlement of phantom shares for the years ended December 31, 2024, 2023
and 2022, respectively.
Performance-Based Compensation
During the year ended December 31, 2021, Blackstone issued performance-based compensation, the dollar value of which is based on the future
achievement of established business performance conditions. The number of vested shares of common stock to be issued is variable based on the 30-day
volume weighted-average price at the end of the performance period. Due to the nature of settlement, the performance-based compensation is classified as a
liability. Compensation expense is recognized over the performance period based upon the probable outcome of the performance condition. Due to the
variable share settlement, the tables above exclude the impact of this performance-based compensation, as the number of shares to be issued is based on
the probability of achieving the performance condition and not yet set.
Blackstone Holdings Partnership Units
Blackstone has granted deferred restricted Blackstone Holdings Partnership Units to certain current and former senior managing directors. Holders of
deferred restricted Blackstone Holdings Partnership Units are not entitled to any voting rights.
The fair values of deferred restricted Blackstone Holdings Partnership Units have been derived based on the closing price of Blackstone’s common units
on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period up to 1 year. Additionally, the
calculation of the compensation expense assumes a forfeiture rate of 6.8%, based on historical experience.
17. Related Party Transactions
Affiliate Receivables and Payables
Due from Affiliates and Due to Affiliates consisted of the following:
December 31,
2024
2023
Due from Affiliates
Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities
and Portfolio Companies
  $ 4,049,707   $ 3,638,948 
Due from Certain Non-Controlling Interest Holders and Blackstone Employees
  
1,191,527   
720,743
Accrual for Potential Clawback of Previously Distributed Performance Allocations
  
168,081   
106,830
  
 
 
 
  
 
 
 
  $ 5,409,315   $ 4,466,521
  
 
 
 
  
 
 
 
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
December 31,
  
2024
  
2023
Due to Affiliates
  
  
Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements
  $ 1,844,978   $ 1,681,516 
Due to Non-Consolidated Entities
  
208,537   
124,560
Due to Certain Non-Controlling Interest Holders and Blackstone Employees
  
255,086   
305,816
Accrual for Potential Repayment of Previously Received Performance Allocations
  
499,547   
281,518
 
 
 
 
 
 
  $ 2,808,148   $ 2,393,410
  
 
 
 
  
 
 
 
Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties
The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds
both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or
incentive fee arrangements. As of December 31, 2024 and 2023, such investments aggregated to $2.0 billion and $1.7 billion, respectively. Their share of the
Net Income Attributable to Redeemable Non-Controlling and Non-Controlling Interests in Consolidated Entities aggregated $176.0 million, $87.8 million, and
$10.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Contingent Repayment Guarantee
Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to
the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly
received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of
Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and non-controlling interest holders that would need
to be repaid to the Blackstone Funds if the carry funds were to be liquidated based on the fair value of their underlying investments as of December 31, 2024.
See Note 18. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback).”
Tax Receivable Agreements
Blackstone used a portion of the proceeds from the IPO and other sales of shares to purchase interests in the predecessor businesses from the
predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for shares of
Blackstone common stock on a one-for-one basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible
and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone would otherwise be required to pay in the future.
Blackstone has entered into tax receivable agreements with each of the predecessor owners. In addition, others who acquire Blackstone Holdings
Partnership Units, including senior managing directors, execute tax receivable agreements. The agreements provide for the payment by the corporate
taxpayer to such owners of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as
a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes
of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the
amount of such taxes that the corporate taxpayers would have been required to pay had there been no increase to the tax basis of the tangible and intangible
assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit
of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will
aggregate $1.8 billion over the next 15 years. The after-tax net present value of these estimated payments totals $529.9 million assuming a 15% discount rate
and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable
agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not
conditioned upon continued ownership of Blackstone equity interests by the pre-IPO owners and the others mentioned above. Subsequent to
December 31, 2024, payments totaling $46.3 million were made to certain pre-IPO owners and others mentioned above in accordance with the tax receivable
agreement and related to tax benefits Blackstone received for the 2023 taxable year.
Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to shares of
Blackstone common stock, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the balance sheet date, the due
to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Deferred Tax
Asset Effects from Equity Transactions in the Supplemental Disclosure of Non-Cash Investing and Financing Activities in the Consolidated Statements of Cash
Flows.
Other
Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis.
Additionally, please see Note 18. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a
lending institution for certain loans held by employees.
18. Commitments and Contingencies
Commitments
Investment Commitments
Blackstone had $6.4 billion of investment commitments as of December 31, 2024 representing general partner capital funding commitments to the
Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The
consolidated Blackstone Funds had signed investment commitments of $127.2 million as of December 31, 2024 which includes $104.0 million of signed
investment commitments for portfolio company acquisitions in the process of closing.
Regulated Entities
Certain U.S. and non-U.S. entities are subject to various investment adviser and other financial regulatory rules and requirements that may include
minimum net capital requirements. These entities have continuously operated in excess of these requirements. This includes a number of U.S. entities that
are registered as investment advisers with the SEC.
These regulatory capital requirements may restrict Blackstone’s ability to withdraw capital from its entities. At December 31, 2024, $92.8 million of net
assets of consolidated entities may be restricted as to the payment of cash dividends and advances to Blackstone.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Contingencies
Guarantees
Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the ongoing business activities and/or
acquisitions of their Portfolio Companies. There is no direct recourse to Blackstone to fulfill such obligations. To the extent that underlying funds are required
to fulfill guarantee obligations, Blackstone’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated
real estate funds was $28.4 million as of December 31, 2024.
The Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone
Funds or for members’ capital contributions to Blackstone Europe LLP. The amount guaranteed as of December 31, 2024 was $91.5 million.
Strategic Ventures
In December 2022 and January 2023, Blackstone entered into long-term strategic ventures (“UC strategic ventures”) with the Regents of the University of
California (“UC Investments”), an institutional investor that subscribed for $4.5 billion of Blackstone Real Estate Income Trust, Inc. (“BREIT”) Class I shares
during the three months ended March 31, 2023. The UC strategic ventures provide a waterfall structure with UC Investments receiving an 11.25% target
annualized net return on its $4.5 billion investment in BREIT shares and upside from its investment. This target return, while not guaranteed, is supported by a
pledge by Blackstone of $1.1 billion of its holdings in BREIT as of the subscription dates, including any appreciation or dividends received by Blackstone in
respect thereof. Pursuant to the UC strategic ventures, Blackstone is entitled to receive an incremental 5% cash payment from UC Investments on any returns
received in excess of the target return. An asset or liability is recognized based on fair value with the maximum potential future obligation capped at the fair
value of the assets pledged by Blackstone in connection with the above arrangements. As of December 31, 2024, the fair value of the assets pledged was
$1.1 billion and the total liability recognized was $938.2 million.
Litigation
Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to
extensive regulation, which may result in regulatory proceedings against Blackstone.
Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable.
In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions,
based on information known by management, Blackstone does not have any unaccrued liability related to any current legal proceeding or claim that would
individually or in the aggregate materially affect its results of operations, financial position or cash flows.
In December 2017, eight pension plan members of the Kentucky Retirement System (“KRS”) filed a derivative lawsuit on behalf of KRS in Franklin County
Circuit Court in Kentucky (the “Mayberry Action”). Plaintiffs alleged breaches of fiduciary duty and other violations of Kentucky law in connection with KRS’s
investment in three hedge funds of funds, including a fund managed by Blackstone Alternative Asset Management L.P. (“BLP”). The suit named more than 30
defendants, including, among others, The Blackstone Group L.P. (now Blackstone Inc.); BLP; Stephen A. Schwarzman, as Chairman and CEO of Blackstone; and
J. Tomilson Hill, as then-CEO of BLP (collectively, the “Blackstone Defendants”). In July 2020, the Kentucky Supreme Court directed the Circuit Court to dismiss
the action for lack of standing.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In July 2020, the Kentucky Attorney General (the “AG”) filed its own action asserting substantially identical claims against largely the same defendants
(the “July 2020 Action”). In May 2024, the Court denied the Blackstone Defendants’ and most other defendants’ motions to dismiss the July 2020 Action. In
April 2024, the AG amended its complaint, adding breach-of-contract claims against the fund manager defendants. Defendants moved to dismiss this
amended complaint in June 2024. Those motions are pending.
In August 2022, KRS was ordered to disclose a 2021 report it commissioned to investigate the investment activities underlying the lawsuit. The report
“did not find any violations of fiduciary duty or illegal activity by [BLP],” and quotes communications by KRS staff during the period of the investment
recognizing that BLP was exceeding KRS’s returns benchmark, providing KRS with “far fewer negative months than any liquid market comparable,” and that
BLP “[h]as killed it.”
In January 2021, certain former plaintiffs in the Mayberry Action filed a separate action (“Taylor I”) against the Blackstone Defendants and other
defendants in the Mayberry Action, asserting substantially similar allegations as the AG’s July 2020 action did, but styled as a direct class action. Taylor I was
removed to the U.S. District Court for the Eastern District of Kentucky and stayed pending the outcome of the AG’s July 2020 action.
In August 2021, a group of KRS members—including those that filed Taylor I—filed an action in Franklin County Circuit Court (“Taylor II”) substantially
similar to Taylor I, against the Blackstone Defendants, other defendants named in the Mayberry Action, and other KRS officials. The Court denied most
defendants’ motions to dismiss this action in May 2024. Defendants subsequently filed appeals, including a cross-appeal by the Blackstone Defendants, which
is currently pending. Additionally, the Blackstone Defendants and the other fund manager defendants filed a petition for a writ of prohibition. On
November 12, 2024, the Kentucky Court of Appeals denied defendants’ writ of prohibition, and defendants subsequently appealed to the Kentucky Supreme
Court. Taylor II is stayed pending review of these appeals and cross-appeals.
In April 2021, the AG filed an action (the “Declaratory Judgment Action”) against BLP and the other fund manager defendants from the Mayberry Action
in Franklin County Circuit Court, seeking a declaration that certain provisions in the subscription agreements with KRS violate the Kentucky Constitution. In
August 2024, the Kentucky Supreme Court granted BLP’s motion for discretionary review of the Circuit Court’s grant of summary judgment to the AG. The
appeal is pending.
In July 2021, BLP filed a breach-of-contract action against defendants affiliated with KRS, alleging that the Mayberry Action and the Declaratory Judgment
Action breach the parties’ subscription agreements and seeking damages. In February 2024, the Kentucky Supreme Court granted BLP’s motion for
discretionary review of the Circuit Court’s dismissal on ripeness grounds. The appeal is fully briefed and pending.
On January 3, 2025, we and several other defendants entered into a settlement agreement with KRS and the Commonwealth of Kentucky to, subject to
approval by the Franklin County Circuit Court and certain requirements, resolve all claims against these defendants in the AG’s actions, resolve BLP’s breach-
of-contract claims, and bar all claims against the Blackstone Defendants in Taylor I and Taylor II without any admission of wrongdoing. The settlement includes
an $82.5 million cash settlement divided among several defendants, of which our portion is expected to be covered by insurance. On January 8, 2025, the
settling parties moved for court approval of the settlement. Taylor II plaintiffs objected and requested, in part, that the court refer their matter to mediation.
On February 14, 2025, the court ordered the Taylor II parties to conduct a mediation in March 2025 and scheduled an approval hearing for the defendants’
settlement with KRS and the Commonwealth to follow on March 26, 2025. Our financial results for the year ended December 31, 2024 include an accrual for
the estimated liability related to this matter.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In October 2022, as part of a sweep of private equity and other investment advisory firms, the SEC sent us a request for information relating to the
retention of certain types of electronic business communications, including text messages, that may be required to be preserved under certain SEC rules. In
January 2025, we entered into a settlement agreement with the SEC to resolve this matter and paid a civil monetary penalty of $12 million. During the three
months ended December 31, 2024, we updated our accrued liability to reflect the settlement amount, which was less than the amount we previously accrued
during 2024.
Contingent Obligations (Clawback)
Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the
amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end
of a fund’s life except for certain Blackstone funds, which may have an interim clawback liability. The lives of the funds, including available contemplated
extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at
various points through 2032. Further extensions of such terms may be implemented under given circumstances.
For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of
some of the funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received
Performance Allocation distributions with respect to such fund’s realized investments.
The following table presents the clawback obligations by segment:
December 31,
2024
2023
Segment
Blackstone
Holdings
Current and
Former
Personnel (a)
Total (b)
Blackstone
Holdings
Current and
Former
Personnel (a)
Total (b)
Real Estate
   $316,749    $ 158,346    $475,095    $145,435    $
90,337    $235,772 
Private Equity
  
15,044   
6,273   
21,317   
29,046   
16,231   
45,277
Credit & Insurance
  
1,468   
1,667   
3,135   
207   
262   
469
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   $333,261    $ 166,286    $499,547    $174,688    $   106,830    $281,518
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a
fund rather than on a fund by fund basis.
(b) Total is a component of Due to Affiliates. See Note 17. “Related Party Transactions — Affiliate Receivables and Payables — Due to Affiliates.”
During the year ended December 31, 2024, the Blackstone general partners paid an interim cash clawback obligation of $2.1 million related to a Private
Equity segment fund, of which $1.2 million was paid by Blackstone Holdings and $0.9 million by current and former Blackstone personnel.
For Private Equity, Real Estate, and certain Credit & Insurance Funds, a portion of the Performance Allocations paid to current and former Blackstone
personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the Consolidated Financial
Statements of Blackstone, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of
hedge funds. At December 31, 2024, $1.1 billion was held in segregated accounts for the purpose of meeting any clawback obligations of current and former
personnel if such payments are required.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In the Credit & Insurance segment, payment of Performance Allocations to Blackstone by the majority of the stressed/distressed, mezzanine and credit
alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated
accounts in the event of a cash clawback obligation.
If, at December 31, 2024, all of the investments held by Blackstone’s carry funds were deemed worthless, a possibility that management views as remote,
the amount of Performance Allocations subject to potential clawback would be $7.3 billion, on an after-tax basis where applicable, of which Blackstone
Holdings is potentially liable for $6.7 billion if current and former Blackstone personnel default on their share of the liability, a possibility that management
also views as remote.
19. Segment Reporting
Blackstone conducts its alternative asset management businesses through four segments:
•
 
Real Estate – Blackstone’s Real Estate segment primarily comprises its management of opportunistic real estate funds, Core+ real estate funds,
and real estate debt strategies.
•
 
Private Equity – Blackstone’s Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and
geographically-focused Corporate Private Equity funds, core private equity funds, an opportunistic investment platform, a secondary funds
business and GP Stakes, infrastructure-focused funds, a life sciences investment platform, a growth equity investment platform, an investment
platform offering eligible individual investors access to Blackstone’s private equity capabilities, a multi-asset investment program for eligible high
net worth investors and a capital markets services business.
•
 
Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of Blackstone Credit & Insurance, which is organized into three
overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. In addition, the segment
includes an insurer-focused platform.
•
 
Multi-Asset Investing – Multi-Asset Investing is organized into two primary platforms: Absolute Return and Multi-Strategy. In addition, the
segment also includes a publicly traded energy infrastructure, renewables and master limited partnership investment platform.
These business segments are differentiated by their various investment strategies. Each of the segments primarily earns its income from management
fees and investment returns on assets under management. Blackstone’s chief operating decision makers are its Chief Executive Officer and Co-Founder and its
President and Chief Operating Officer. 
Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across
Blackstone’s four segments.
Segment Distributable Earnings 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 and Non-Recurring Items.
Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-
recurring gains, losses, or other charges, if any. 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, gains or losses
associated with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of
Blackstone’s operational performance.
215

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
For segment reporting purposes, Segment Distributable Earnings is presented along with its major components, Fee Related Earnings and Net
Realizations. Fee Related Earnings is 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. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less
Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance
Revenues or Performance Compensation.
Geographic Information
Blackstone conducts its business primarily in the United States with domestically generated revenues making up 68%, 70% and 77% of total GAAP
revenues for the years ended December 31, 2024, 2023 and 2022, respectively. The table below presents the percentage of total GAAP revenues generated by
Blackstone by geographic region. Revenues attributed to a geographic region are generally based on the geography of investments held by Blackstone and
Blackstone Funds. The geography of an investment is generally the country of domicile for an asset or where a portfolio company is headquartered.
 
  
Year Ended December 31,
 
  
2024  
2023  
2022
Americas
  
76%  
78%  
83% 
Europe, Middle East and Africa
  
16%  
15%  
15% 
Asia-Pacific
  
8%  
7%  
2% 
  
  
 
 
  
 
 
  
 
  
100%  
100%  
100% 
  
  
 
 
  
 
 
  
 
Blackstone’s long-lived assets are comprised of Right-of-Use Assets and Furniture, Equipment and Leasehold Improvements, Net. As of December 31,
2024 and 2023, Blackstone held long-lived assets in the United States of $1.1 billion. As of December 31, 2023, Blackstone held long-lived assets in the United
Kingdom of $141.7 million. No individual foreign country constituted more than 10% of Blackstone’s total long-lived assets as of December 31, 2024.
Major Customer Information
For the years ended December 31, 2024 and 2023, Blackstone Private Credit Fund (“BCRED”) accounted for an aggregate of $980.6 million and
$762.6 million of Management and Advisory Fees, Net and Incentive Fees, respectively. For the years ended December 31, 2023 and 2022, BREIT accounted
for $839.9 million and $841.3 million of Blackstone’s Management and Advisory Fees, Net, respectively. BCRED and BREIT are vehicles in Blackstone’s Credit &
Insurance segment and Real Estate segment, respectively. Generally, for purposes of major customer analysis, Blackstone identifies the customer as the
investors in its managed investment vehicles. For certain widely held vehicles like BCRED and BREIT, however, the investment vehicle is determined to be the
customer. Blackstone evaluates the major customer disclosure in the context of its revenue streams as determined under the GAAP guidance for contracts
with customers which includes Management and Advisory Fees, Net and Incentive Fees.
216

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Segment Presentation
The following tables present the financial data for Blackstone’s four segments as of December 31, 2024 and 2023, and for the years ended
December 31, 2024, 2023 and 2022.
  
December 31, 2024 and the Year Then Ended
  
Real
Estate
 
Private Equity  
Credit &
Insurance
 
Multi-Asset
Investing
 
Total Segments
Management and Advisory Fees, Net
  
 
 
 
 
Base Management Fees
  $ 2,716,983   $ 2,027,855   $1,561,649   $
474,395   $ 6,780,882
Transaction, Advisory and Other Fees, Net
  
175,010  
176,469  
44,354  
3,855  
399,688
Management Fee Offsets
  
(16,716)  
(6,044)  
(24,196)  
(80)  
(47,036) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Management and Advisory Fees, Net
  
2,875,277  
2,198,280  
1,581,807  
478,170  
7,133,534
Fee Related Performance Revenues
  
203,425  
1,185,428  
747,092  
—  
2,135,945
Fee Related Compensation
  
(674,965)  
(1,164,237)  
(755,620)  
(144,500)  
(2,739,322) 
Other Operating Expenses
  
(380,321)  
(391,309)  
(371,354)  
(105,108)  
(1,248,092) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
  
2,023,416  
1,828,162  
1,201,925  
228,562  
5,282,065
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Performance Revenues
  
200,974  
1,392,447  
313,092  
380,518  
2,287,031
Realized Performance Compensation
  
(101,011)  
(633,491)  
(129,814)  
(86,930)  
(951,246) 
Realized Principal Investment Income
  
14,522  
52,356  
39,855  
(14,207)  
92,526
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Realizations
  
114,485  
811,312  
223,133  
279,381  
1,428,311
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Segment Distributable Earnings
  $ 2,137,901   $ 2,639,474   $1,425,058   $
507,943   $ 6,710,376
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
  $11,573,910   $18,027,030   $8,668,716   $1,958,735   $40,228,391
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
217

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
December 31, 2023 and the Year Then Ended
Real
Estate
Private Equity
Credit &
Insurance
Multi-Asset
Investing
Total Segments
Management and Advisory Fees, Net
Base Management Fees
  $ 2,794,232   $ 1,903,972   $1,297,406   $
470,237   $ 6,465,847
Transaction, Advisory and Other Fees, Net
  
78,483  
108,848  
44,542  
4,019  
235,892
Management Fee Offsets
  
(29,357)  
(5,228)  
(3,907)  
(3)  
(38,495) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Management and Advisory Fees, Net
  
2,843,358  
2,007,592  
1,338,041  
474,253  
6,663,244
Fee Related Performance Revenues
  
294,240  
—   
564,287  
—   
858,527
Fee Related Compensation
  
(675,880)  
(619,678)  
(628,064)  
(164,488)  
(2,088,110) 
Other Operating Expenses
  
(325,050)  
(329,221)  
(323,773)  
(106,289)  
(1,084,333) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
  
2,136,668  
1,058,693  
950,491  
203,476  
4,349,328
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Performance Revenues
  
244,358  
1,343,865  
317,620  
155,259  
2,061,102
Realized Performance Compensation
  
(123,299)  
(584,154)  
(140,210)  
(48,354)  
(896,017) 
Realized Principal Investment Income
  
7,628  
76,220  
21,752  
5,332  
110,932
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Realizations
  
128,687  
835,931  
199,162  
112,237  
1,276,017
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Segment Distributable Earnings
  $ 2,265,355   $ 1,894,624   $1,149,653   $
315,713   $ 5,625,345
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment Assets
  $13,016,980   $14,901,682   $6,705,647   $1,819,602   $36,443,911
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31, 2022
  
Real
Estate
 
Private Equity  
Credit &
Insurance
 
Multi-Asset
Investing
 
Total Segments
Management and Advisory Fees, Net
  
 
 
 
 
Base Management Fees
  $ 2,462,179   $ 1,882,197   $1,185,289   $
515,373   $ 6,045,038
Transaction, Advisory and Other Fees, Net
  
171,424  
97,972  
34,481  
6,240  
310,117
Management Fee Offsets
  
(10,538)  
(56,078)  
(5,432)  
(161)  
(72,209) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Management and Advisory Fees, Net
  
2,623,065  
1,924,091  
1,214,338  
521,452  
6,282,946
Fee Related Performance Revenues
  
1,075,424  
(648)  
374,721  
—  
1,449,497
Fee Related Compensation
  
(1,039,125)  
(599,758)  
(512,727)  
(179,165)  
(2,330,775) 
Other Operating Expenses
  
(315,331)  
(314,967)  
(260,028)  
(98,697)  
(989,023) 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fee Related Earnings
  
2,344,033  
1,008,718  
816,304  
243,590  
4,412,645
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Realized Performance Revenues
  
2,985,713  
1,206,594  
147,285  
121,746  
4,461,338
Realized Performance Compensation
  
(1,168,045)  
(550,306)  
(63,845)  
(31,901)  
(1,814,097) 
Realized Principal Investment Income
  
150,790  
144,585  
79,763  
21,118  
396,256
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Net Realizations
  
1,968,458  
800,873  
163,203  
110,963  
3,043,497
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Segment Distributable Earnings
  $ 4,312,491   $ 1,809,591   $  979,507   $  354,553   $ 7,456,142
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
218

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Reconciliations of Total Segment Amounts
The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the years ended
December 31, 2024, 2023 and 2022 along with Total Assets as of December 31, 2024 and 2023:
  
Year Ended December 31,
  
2024
 
2023
 
2022
Revenues
     
       
       
 
Total GAAP Revenues
  $
13,229,968    $
8,022,841    $
8,517,673 
Less: Unrealized Performance Revenues (a)
   
(371,407)    
1,691,788     
3,436,978 
Less: Unrealized Principal Investment (Income) Loss (b)
   
(271,868)    
593,301     
1,235,529 
Less: Interest and Dividend Revenue (c)
   
(410,980)    
(535,641)    
(285,075) 
Less: Other Revenue (d)
   
(123,166)    
93,083     
(183,754) 
Impact of Consolidation (e)
   
(444,828)    
(200,237)    
(109,379) 
Transaction-Related and Non-Recurring Items (f)
   
39,272     
25,672     
(24,656) 
Intersegment Eliminations
   
2,045     
2,998     
2,721 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Revenue (g)
  $   11,649,036    $  9,693,805    $  12,590,037 
  
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31,
  
2024
 
2023
 
2022
Expenses
  
 
 
Total GAAP Expenses
  $
6,819,326    $
4,981,130    $
4,973,025 
Less: Unrealized Performance Allocations Compensation (h)
    
(140,021)    
654,403     
1,470,588 
Less: Equity-Based Compensation (i)
    
(1,159,122)    
(959,474)    
(782,090) 
Less: Interest Expense (j)
    
(444,417)    
(429,521)    
(316,569) 
Impact of Consolidation (e)
    
(81,129)    
(137,603)    
(61,644) 
Amortization of Intangibles (k)
    
(29,332)    
(33,457)    
(60,481) 
Transaction-Related and Non-Recurring Items (f)
    
(17,100)    
(309)    
(81,789) 
Administrative Fee Adjustment (l)
    
(11,590)    
(9,707)    
(9,866) 
Intersegment Eliminations
    
2,045     
2,998     
2,721 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Expenses (m)
  $   4,938,660    $   4,068,460    $  5,133,895 
  
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
2024
 
2023
 
2022
Other Income
  
 
 
Total GAAP Other Income (Loss)
  $                               
48,838    $                                  (83,997)   $                (82,859)
Impact of Consolidation (e)
   
(48,838)    
83,997     
82,859 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Other Income
  $
     —    $
—    $
— 
  
 
 
 
 
 
 
 
 
 
 
 
219

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
 
Year Ended December 31,
 
2024
 
2023
 
2022
Income Before Provision for Taxes
     
       
       
 
Total GAAP Income Before Provision for Taxes
  $6,459,480    $2,957,714    $ 3,461,789 
Less: Unrealized Performance Revenues (a)
   
(371,407)     1,691,788      3,436,978 
Less: Unrealized Principal Investment (Income) Loss (b)
   
(271,868)    
593,301      1,235,529 
Less: Interest and Dividend Revenue (c)
   
(410,980)    
(535,641)    
(285,075) 
Less: Other Revenue (d)
   
(123,166)    
93,083     
(183,754) 
Plus: Unrealized Performance Allocations Compensation (h)
   
140,021     
(654,403)     (1,470,588) 
Plus: Equity-Based Compensation (i)
    1,159,122     
959,474     
782,090 
Plus: Interest Expense (j)
   
444,417     
429,521     
316,569 
Impact of Consolidation (e)
   
(412,537)    
21,363     
35,124 
Amortization of Intangibles (k)
   
29,332     
33,457     
60,481 
Transaction-Related and Non-Recurring Items (f)
   
56,372     
25,981     
57,133 
Administrative Fee Adjustment (l)
   
11,590     
9,707     
9,866 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Distributable Earnings
  $6,710,376    $5,625,345    $ 7,456,142 
  
 
 
 
 
 
 
 
 
 
 
 
 
As of December 31,
 
2024
 
2023
Total Assets
 
   
   
   
 
Total GAAP Assets
   $ 43,469,875   
$ 40,287,530 
Impact of Consolidation (e)
     (3,241,484)  
  (3,843,619) 
  
 
 
 
 
 
 
 
Total Segment Assets
   $ 40,228,391   
$ 36,443,911 
  
 
 
 
 
 
 
 
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of
intangibles and Transaction-Related and Non-Recurring Items.
(a)
This adjustment removes Unrealized Performance Revenues on a segment basis.
(b) This adjustment removes Unrealized Principal Investment (Income) Loss on a segment basis.
(c)
This adjustment removes Interest and Dividend Revenue on a segment basis.
(d) This adjustment removes Other Revenue on a segment basis. For the years ended December 31, 2024, 2023 and 2022, Other Revenue on a GAAP basis
was $123.7 million, $(92.9) million and $184.6 million and included $122.3 million, $(94.7) million, and $182.9 million of foreign exchange gains (losses),
respectively.
(e)
This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment
includes the elimination of Blackstone’s interest in these funds, the removal of amounts attributable to the reimbursement of certain expenses by the
Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and
Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating
partnerships held by non-controlling interests.
(f)
This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related
and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains,
losses, or other charges, if any. 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, gains or losses associated
with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of
Blackstone’s operational performance. For the year ended December 31, 2024, this adjustment includes removal of an accrual for a liability for a legal
matter.
220

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(g)
Total Segment Revenues is comprised of the following:
  
Year Ended December 31,
  
2024
 
2023
 
2022
Total Segment Management and Advisory Fees, Net
     $       7,133,534           $     6,663,244
  $      6,282,946
Total Segment Fee Related Performance Revenues
  
2,135,945    
858,527       
1,449,497  
Total Segment Realized Performance Revenues
  
2,287,031
 
2,061,102
 
4,461,338
Total Segment Realized Principal Investment Income
  
92,526
 
110,932
 
396,256
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Revenues
   $ 
11,649,036 
 
$
9,693,805
  $
12,590,037
  
 
 
 
 
 
 
 
 
 
 
 
(h) This adjustment removes Unrealized Performance Allocations Compensation.
(i)
This adjustment removes Equity-Based Compensation on a segment basis.
(j)
This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement.
(k)
This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation.
(l)
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.
(m) Total Segment Expenses is comprised of the following:
  
Year Ended December 31,
  
2024
 
2023
 
2022
Total Segment Fee Related Compensation
  $   2,739,322           $    2,088,110
     $   2,330,775
Total Segment Realized Performance Compensation
  
951,246    
896,017        
1,814,097  
Total Segment Other Operating Expenses
  
1,248,092
 
1,084,333
 
989,023
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment Expenses
  $ 4,938,660
 
$  4,068,460
 
$  5,133,895
  
 
 
 
 
 
 
 
 
 
 
 
Reconciliations of Total Segment Components
The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Consolidated Statement of
Operations for the years ended December 31, 2024, 2023 and 2022:
  
Year Ended December 31,
  
2024
 
2023
 
2022
Management and Advisory Fees, Net
  
 
 
GAAP
  $7,188,936   $ 6,671,260   $ 6,303,315
Segment Adjustment (a)
  
(55,402)  
(8,016)  
(20,369) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $7,133,534   $ 6,663,244   $ 6,282,946
  
 
 
 
 
 
 
 
 
 
 
 
221

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
Year Ended December 31,
  
2024
 
2023
 
2022
GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues
  
 
 
GAAP
  
 
 
Incentive Fees
  $
964,178   $
695,171   $
525,127
Investment Income — Realized Performance Allocations
  
3,457,746  
2,223,841  
5,381,640
  
 
 
 
 
 
 
 
 
 
 
 
GAAP
  
4,421,924  
2,919,012  
5,906,767
Total Segment
  
 
 
Less: Realized Performance Revenues
  
(2,287,031)  
(2,061,102)  
(4,461,338) 
Segment Adjustment (b)
  
1,052  
617  
4,068
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $ 2,135,945   $
858,527   $ 1,449,497
  
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31,
  
2024
 
2023
 
2022
GAAP Compensation to Total Segment Fee Related Compensation
  
 
 
GAAP
  
 
 
Compensation
  $  3,048,229   $ 2,785,447   $ 2,569,780
Incentive Fee Compensation
  
373,586  
281,067  
207,998
Realized Performance Allocations Compensation
  
1,432,217  
900,859  
2,225,264
  
 
 
 
 
 
 
 
 
 
 
 
GAAP
  
4,854,032  
3,967,373  
5,003,042
Total Segment
  
 
 
Less: Realized Performance Compensation
  
(951,246)  
(896,017)  
(1,814,097) 
Less: Equity-Based Compensation — Fee Related Compensation
  
(1,143,054)  
(946,575)  
(772,170) 
Less: Equity-Based Compensation — Performance Compensation
  
(16,068)  
(12,899)  
(9,920) 
Segment Adjustment (c)
  
(4,342)  
(23,772)  
(76,080) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $ 2,739,322   $  2,088,110   $ 2,330,775
  
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31,
  
2024
 
2023
 
2022
GAAP General, Administrative and Other to Total Segment Other Operating Expenses
  
 
 
GAAP
  $ 1,361,909   $  1,117,305   $ 1,092,671
Segment Adjustment (d)
  
(113,817)  
(32,972)  
  (103,648) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $  1,248,092   $ 1,084,333   $   989,023
  
 
 
 
 
 
 
 
 
 
 
 
222

Table of Contents
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
  
Year Ended December 31,
  
2024
 
2023
 
2022
Realized Performance Revenues
  
 
 
GAAP
  
 
 
Incentive Fees
  $
964,178   $
695,171   $
525,127
Investment Income — Realized Performance Allocations
  
3,457,746  
2,223,841  
5,381,640
  
 
 
 
 
 
 
 
 
 
 
 
GAAP
  
4,421,924  
2,919,012  
5,906,767
Total Segment
  
 
 
Less: Fee Related Performance Revenues
  
(2,135,945)  
(858,527)  
(1,449,497) 
Segment Adjustment (b)
  
1,052  
617  
4,068
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $ 2,287,031   $ 2,061,102   $ 4,461,338
  
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31,
  
2024
 
2023
 
2022
Realized Performance Compensation
  
 
 
GAAP
  
 
 
Incentive Fee Compensation
  $
373,586   $
281,067   $
207,998
Realized Performance Allocations Compensation
  
1,432,217  
900,859  
 2,225,264
  
 
 
 
 
 
 
 
 
 
 
 
GAAP
  
1,805,803  
 1,181,926  
2,433,262
Total Segment
  
 
 
Less: Fee Related Performance Compensation (e)
  
(838,489)  
(273,010)  
(609,245) 
Less: Equity-Based Compensation — Performance Compensation
  
(16,068)  
(12,899)  
(9,920) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $
951,246   $
896,017   $ 1,814,097
  
 
 
 
 
 
 
 
 
 
 
 
  
Year Ended December 31,
  
2024
 
2023
 
2022
Realized Principal Investment Income
  
 
 
GAAP
  $   332,258   $
303,823   $    850,327
Segment Adjustment (f)
  
(239,732)  
(192,891)  
(454,071) 
  
 
 
 
 
 
 
 
 
 
 
 
Total Segment
  $    92,526   $    110,932   $
396,256
  
 
 
 
 
 
 
 
 
 
 
 
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 and Non-Recurring Items.
(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 amounts attributable to the reimbursement of certain expenses by the Blackstone Funds and certain NAV-based fee arrangements,
which are presented on a gross basis under GAAP but as a reduction of 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 and Non-Recurring Items that are not recorded in the Total Segment measures.
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
(d) Represents the (1) removal of Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment measures, (2) removal of
amounts attributable to certain expenses that are reimbursed by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on
a gross basis under GAAP but as a reduction of 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. For the year ended
December 31, 2024, this adjustment includes removal of an accrual for a liability for a legal matter.
(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.
20. Subsequent Events
There have been no events since December 31, 2024 that require recognition or disclosure in the consolidated financial statements.
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Item 8A.
Unaudited Supplemental Presentation of Statements of Financial Condition
Blackstone Inc.
Unaudited Consolidating Statements of Financial Condition
(Dollars in Thousands)
  
December 31, 2024
  
Consolidated
Operating
Partnerships
 
Consolidated
Blackstone
Funds (a)
 
Reclasses and
Eliminations  
Consolidated
Assets
  
 
 
 
Cash and Cash Equivalents
   $ 1,972,140   
$
—   
$
—   
$ 1,972,140 
Cash Held by Blackstone Funds and Other
    
—   
 
204,052   
 
—   
 
204,052 
Investments
     26,791,383   
  3,890,732   
  (881,549)  
  29,800,566 
Accounts Receivable
    
191,937   
 
45,993   
 
—   
 
237,930 
Due from Affiliates
    
5,436,866   
 
21,089   
 
(48,640)  
 
5,409,315 
Intangible Assets, Net
    
165,243   
 
—   
 
—   
 
165,243 
Goodwill
    
1,890,202   
 
—   
 
—   
 
1,890,202 
Other Assets
    
938,052   
 
9,807   
 
—   
 
947,859 
Right-of-Use Assets
    
838,620   
 
—   
 
—   
 
838,620 
Deferred Tax Assets
    
2,003,948   
 
—   
 
—   
 
2,003,948 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets
   $40,228,391   
$4,171,673   
$(930,189)  
$43,469,875 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Equity
  
 
 
 
Loans Payable
   $11,233,468   
$
87,488   
$
—   
$11,320,956 
Due to Affiliates
    
2,582,178   
 
276,789   
 
(50,819)  
 
2,808,148 
Accrued Compensation and Benefits
    
6,087,700   
 
—   
 
—   
 
6,087,700 
Operating Lease Liabilities
    
965,742   
 
—   
 
—   
 
965,742 
Accounts Payable, Accrued Expenses and Other Liabilities
    
2,723,551   
 
68,763   
 
—   
 
2,792,314 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities
     23,592,639   
 
433,040   
 
(50,819)  
  23,974,860 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redeemable Non-Controlling Interests in Consolidated Entities
    
1   
 
801,398   
 
—   
 
801,399 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
  
 
 
 
Common Stock
    
7   
 
—   
 
—   
 
7 
Series I Preferred Stock
    
—   
 
—   
 
—   
 
— 
Series II Preferred Stock
    
—   
 
—   
 
—   
 
— 
Additional Paid-in-Capital
    
7,444,561   
 
878,014   
  (878,014)  
 
7,444,561 
Retained Earnings
    
808,079   
 
1,356   
 
(1,356)  
 
808,079 
Accumulated Other Comprehensive Loss
    
(20,590)  
 
(19,736)  
 
—   
 
(40,326) 
Non-Controlling Interests in Consolidated Entities
    
4,077,342   
  2,077,601   
 
—   
 
6,154,943 
Non-Controlling Interests in Blackstone Holdings
    
4,326,352   
 
—   
 
—   
 
4,326,352 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Equity
     16,635,751   
  2,937,235   
  (879,370)  
  18,693,616 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Liabilities and Equity
   $40,228,391   
$4,171,673   
$(930,189)  
$43,469,875 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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Blackstone Inc.
Unaudited Consolidating Statements of Financial Condition—Continued
(Dollars in Thousands)
  
December 31, 2023
  
Consolidated
Operating
Partnerships
 
Consolidated
Blackstone
Funds (a)
  
Reclasses and
Eliminations  
Consolidated
Assets
  
 
  
 
Cash and Cash Equivalents
  $ 2,955,866    $
—   $
—    $ 2,955,866 
Cash Held by Blackstone Funds and Other
   
—     
316,197    
—     
316,197 
Investments
    22,595,236      4,319,483     (768,097)     26,146,622 
Accounts Receivable
   
186,370     
6,995    
—     
193,365 
Due from Affiliates
   
4,498,250     
13,901    
(45,630)    
4,466,521 
Intangible Assets, Net
   
201,208     
—    
—     
201,208 
Goodwill
   
1,890,202     
—    
—     
1,890,202 
Other Assets
   
944,078     
770    
—     
944,848 
Right-of-Use Assets
   
841,307     
—    
—     
841,307 
Deferred Tax Assets
   
2,331,394     
—    
—     
2,331,394 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Assets
  $36,443,911    $4,657,346   $(813,727)   $40,287,530 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Liabilities and Equity
  
 
  
 
Loans Payable
  $10,616,937    $
687,122   $
—    $11,304,059 
Due to Affiliates
   
2,273,008     
220,758     (100,356)    
2,393,410 
Accrued Compensation and Benefits
   
5,247,766     
—    
—     
5,247,766 
Operating Lease Liabilities
   
989,823     
—    
—     
989,823 
Accounts Payable, Accrued Expenses and Other Liabilities
   
1,886,086     
391,172    
—     
2,277,258 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Liabilities
    21,013,620      1,299,052     (100,356)     22,212,316 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Redeemable Non-Controlling Interests in Consolidated Entities
   
9      1,179,064    
—     
1,179,073 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Equity
  
 
  
 
Common Stock
   
7     
—    
—     
7 
Series I Preferred Stock
   
—     
—    
—     
— 
Series II Preferred Stock
   
—     
—    
—     
— 
Additional Paid-in-Capital
   
6,175,190     
701,792     (701,792)    
6,175,190 
Retained Earnings
   
660,734     
11,579    
(11,579)    
660,734 
Accumulated Other Comprehensive Income (Loss)
   
(36,175)    
17,042    
—     
(19,133) 
Non-Controlling Interests in Consolidated Entities
   
3,728,438      1,448,817    
—     
5,177,255 
Non-Controlling Interests in Blackstone Holdings
   
4,902,088     
—    
—     
4,902,088 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Equity
    15,430,282      2,179,230     (713,371)     16,896,141 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
Total Liabilities and Equity
  $36,443,911    $4,657,346   $(813,727)   $40,287,530 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
(a)
The Consolidated Blackstone Funds consisted of the following:
Blackstone Annex Onshore Fund L.P.
Blackstone Horizon Fund L.P.
BTD CP Holdings LP
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Blackstone Dislocation Fund L.P.
Blackstone European Property Income Fund (Master) FCP*
Blackstone European Property Income Fund SICAV*
BEPIF (Aggregator) SCSp
BX Shipston SCSp**
Blackstone Infrastructure Partners Europe F (CYM) L.P.*
Blackstone Infrastructure Partners Europe Lower Fund 1 (LUX) SCSp*
Blackstone Infrastructure Partners F.4 L.P.*
Blackstone Infrastructure Strategies L.P.*
Blackstone Private Equity Strategies Fund L.P.**
Blackstone Private Equity Strategies Fund SICAV**
Blackstone Private Equity Strategies Fund (Master) FCP**
Clover Credit Partners CLO III, Ltd.
Bayswater Park CLO, Ltd.**
Peebles Park CLO, Ltd.**
Private equity side-by-side investment vehicles
Real estate side-by-side investment vehicles
*
Consolidated as of December 31, 2024 only
**
Consolidated as of December 31, 2023 only
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Item 9.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
None.
Item 9A.
Controls and Procedures
Evaluation of Disclosure Controls and Procedures
We maintain “disclosure controls and procedures,” as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in reports that we file or submit under the
Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and
that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate,
to allow timely decisions regarding required disclosure. In designing disclosure controls and procedures, our management necessarily was required to apply
its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. The design of any disclosure controls and procedures
also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving
its stated goals under all potential future conditions. Any controls and procedures, no matter how well designed and operated, can provide only reasonable
assurance of achieving the desired objectives.
Our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures
pursuant to Rule 13a-15 and 15d-15(e) under the Exchange Act as of the end of the period covered by this report. Based on that evaluation, our Chief
Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our disclosure
controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) are effective at the reasonable assurance level to accomplish
their objectives of ensuring that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated
and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure.
Changes in Internal Control over Financial Reporting
No change in our internal control over financial reporting (as such term is defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act) occurred
during our most recent quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
Management’s Report on Internal Control Over Financial Reporting
Management of Blackstone Inc. and subsidiaries (“Blackstone”) is responsible for establishing and maintaining adequate internal control over financial
reporting. Blackstone’s internal control over financial reporting is a process designed under the supervision of its principal executive and principal financial
officers to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its consolidated financial statements for external
reporting purposes in accordance with accounting principles generally accepted in the United States of America.
Blackstone’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect transactions and dispositions of assets; provide reasonable assurances that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made
only in accordance with authorizations of management and the directors; and provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of Blackstone’s assets that could have a material effect on its financial statements.
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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any
evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree
of compliance with the policies or procedures may deteriorate.
Management conducted an assessment of the effectiveness of Blackstone’s internal control over financial reporting as of December 31, 2024 based on
the framework established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission. Based on this assessment, management has determined that Blackstone’s internal control over financial reporting as of December 31, 2024 was
effective.
Deloitte & Touche LLP, an independent registered public accounting firm, has audited Blackstone’s financial statements included in this Annual Report on
Form 10-K and issued its report on the effectiveness of Blackstone’s internal control over financial reporting as of December 31, 2024, which is included
herein.
Item 9B.
Other Information
Section 13(r) Disclosure
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) of the Exchange Act, Blackstone
hereby incorporates by reference herein Exhibit 99.1 of this report, which includes disclosures provided to us by Mundys S.p.A.
Item 9C.
Disclosures Regarding Foreign Jurisdictions that Prevent Inspections
Not applicable.
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Part III.
Item 10.
Directors, Executive Officers and Corporate Governance
Directors and Executive Officers of Blackstone Inc.
Our directors and executive officers as of the date of this filing are:
Name
  
Age    Position
Stephen A. Schwarzman
  
78    Co-Founder, Chairman and Chief Executive Officer and Director
Jonathan D. Gray
  
55    President, Chief Operating Officer and Director
Michael S. Chae
  
56    Vice Chairman and Chief Financial Officer
John G. Finley
  
68    Chief Legal Officer
Vikrant Sawhney
  
54    Chief Administrative Officer and Global Head of Institutional Client Solutions
Joseph P. Baratta
  
54    Director
James W. Breyer
  
63    Director
Reginald J. Brown
  
57    Director
Rochelle B. Lazarus
  
77    Director
William G. Parrett
  
79    Director
Ruth Porat
  
67    Director
Stephen A. Schwarzman is the Chairman, Chief Executive Officer and Co-Founder of Blackstone and the Chairman of our board of directors.
Mr. Schwarzman was elected Chairman of the board of directors effective March 20, 2007. He also sits on the firm’s Management Committee.
Mr. Schwarzman has been involved in all phases of the firm’s development since its founding in 1985. Mr. Schwarzman is an active philanthropist with a
history of supporting education, as well as culture and the arts, among other things. In 2020, he signed The Giving Pledge, committing to give the majority of
his wealth to philanthropic causes. In both business and philanthropy, Mr. Schwarzman has dedicated himself to tackling big problems with transformative
solutions. Since 2019, he has donated £185 million to the University of Oxford to help redefine the study of the humanities for the 21st century. His gift – the
largest single donation to Oxford since the renaissance – will create a new Centre for the Humanities which unites all humanities faculties under one roof for
the first time in Oxford’s history and will offer new performing arts and exhibition venues as well as a new Institute for Ethics in AI. In October 2018, he
announced a foundational $350 million gift to establish the MIT Schwarzman College of Computing, an interdisciplinary hub which will reorient MIT to
address the opportunities and challenges presented by the rise of artificial intelligence, including critical ethical and policy considerations to ensure that the
technologies are employed for the common good. Since 2015, Mr. Schwarzman has donated $162.8 million to Yale University to establish the Schwarzman
Center, a first-of-its-kind campus center in Yale’s historic “Commons” building, and also gave a founding gift of $40 million to the Inner-City Scholarship Fund,
which provides tuition assistance to underprivileged children attending Catholic schools in the Archdiocese of New York. In 2013, he founded an international
scholarship program, “Schwarzman Scholars,” at Tsinghua University in Beijing to educate future leaders about China. At over $575 million, the program is
modeled on the Rhodes Scholarship and is the single largest philanthropic effort in China’s history coming largely from international donors. Mr. Schwarzman
is Co-Chair of the board of trustees of Schwarzman Scholars. In 2007, Mr. Schwarzman donated $100 million to the New York Public Library on whose board
he serves. In 2019, Mr. Schwarzman published his first book, What It Takes: Lessons in the Pursuit of Excellence, a New York Times Best Seller which draws
from his experiences in business, philanthropy and public service. Mr. Schwarzman is a member of The Council on Foreign Relations, The Business Council, The
Business Roundtable, and The International Business Council of the World Economic Forum. He is the former co-chair of the Partnership for New York City and
serves on the boards of The Asia Society and New York Presbyterian Hospital, as well as on The Advisory Board of the School of Economics and Management
at Tsinghua University, Beijing. He is a Trustee of The Frick Collection in New York City and Chairman Emeritus of the board of directors of The John F.
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Kennedy Center for the Performing Arts. In 2007, Mr. Schwarzman was included in TIME’s “100 Most Influential People.” In 2016, he topped Forbes
Magazine’s list of the most influential people in finance and in 2018 was ranked in the Top 50 on Forbes’ list of the “World’s Most Powerful People.” The
Republic of France has awarded Mr. Schwarzman both the Légion d’Honneur and the Ordre des Arts et des Lettres at the Commandeur level. Mr. Schwarzman
is one of the only Americans to receive both awards recognizing significant contributions to France. He was also awarded the Order of the Aztec Eagle,
Mexico’s highest honor for foreigners, for his work on behalf of the U.S. in support of the U.S.-Mexico-Canada Agreement in 2018. In 2024, Mr. Schwarzman
was appointed as an Honorary Knight of the Most Excellent Order of the British Empire (KBE) in recognition of his services to philanthropy. Mr. Schwarzman
holds a BA from Yale University and an MBA from Harvard Business School. He has served as an adjunct professor at the Yale School of Management and on
the Harvard Business School Board of Dean’s Advisors.
Jonathan D. Gray is President and Chief Operating Officer of Blackstone and has been a member of our board of directors since February 2012. He sits on
the firm’s Management Committee and nearly all of its investment committees. Mr. Gray was appointed to his current role in 2018. Mr. Gray previously served
as Global Head of Real Estate, helping build that business into the largest commercial real estate platform in the world. He joined Blackstone in 1992 in the
M&A and Private Equity areas. Mr. Gray has served as chairman of the board of directors of Hilton Worldwide Holdings Inc. since 2007 and is also on the
board of directors of XRG. He previously served on the board of directors of Corebridge Financial. Mr. Gray and his wife, Mindy, established the Basser Center
for BRCA at the University of Pennsylvania School of Medicine in 2012 focused on the prevention and treatment of BRCA-related cancers. They have also
established numerous programs for low-income children in New York, including creating NYC Kids RISE, college savings initiative provided to every NYC public
school kindergartner. The Grays have been named to The Chronicle of Philanthropy’s list of the largest donors in the U.S. Mr. Gray received a BS in Economics
from the Wharton School, as well as a BA in English from the College of Arts and Sciences at the University of Pennsylvania.
Michael S. Chae is Blackstone’s Vice Chairman and Chief Financial Officer and a member of the firm’s Management Committee and investment
committees across most of the firm’s businesses. Mr. Chae has served as Blackstone’s Vice Chairman and Chief Financial Officer since January 2025 and
August 2015, respectively. He chairs our firmwide valuation and enterprise risk committees. Since joining Blackstone in 1997, Mr. Chae has served in a broad
range of leadership roles including Head of International Private Equity, Head of Private Equity for Asia/Pacific, and as a senior partner in the U.S. private
equity business, where he led numerous investments and served on the boards of many private and publicly traded portfolio companies. Before joining
Blackstone, Mr. Chae worked at The Carlyle Group and Dillon, Read & Co. Mr. Chae received an AB from Harvard College, an MPhil. in International Relations
from Cambridge University and a JD from Yale Law School. Mr. Chae serves on the boards of the Harvard Management Company, the Robin Hood Foundation,
the Asia Society and St. Bernard’s School. He previously served as the President of the board of trustees of the Lawrenceville School where he remains a
trustee emeritus. He is a member of the Council on Foreign Relations and founded the Chae Initiative in Private Sector Leadership at Yale Law School.
John G. Finley is Chief Legal Officer of Blackstone and a member of the firm’s Management Committee. Before joining Blackstone in September 2010,
Mr. Finley had been a partner with Simpson Thacher & Bartlett where he was a member of that law firm’s Executive Committee and Co-Head of Global
Mergers & Acquisitions. Mr. Finley is an Adviser on the American Law Institute’s Restatement of the Law, Corporate Governance project and a member of the
Dean’s Advisory Board of Harvard Law School, Gettysburg Foundation, and Board of Advisors of the Penn Institute for Law and Economics. Mr. Finley
previously served as a director at Tradeweb. He has served on the U.S. Advisory Council on Historic Preservation, the Committee of Securities Regulation of
the New York State Bar Association and the Board of Advisors of the Knight-Bagehot Fellowship in Economics and Business Journalism at Columbia University.
Mr. Finley received a BS in Economics from the Wharton School of the University of Pennsylvania, a BA in History from the College of Arts and Sciences of the
University of Pennsylvania, and a JD from Harvard Law School.
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Vikrant Sawhney is Blackstone’s Chief Administrative Officer and Global Head of Institutional Client Solutions and a member of the firm’s Management
Committee. Mr. Sawhney has served as Blackstone’s Chief Administrative Officer and Global Head of Institutional Client Services since September 2019. Since
joining Blackstone in 2007, Mr. Sawhney started Blackstone Capital Markets and also served as the Chief Operating Officer of the Private Equity group. Before
joining Blackstone, Mr. Sawhney worked as a Managing Director at Deutsche Bank, and prior to that at the law firm of Simpson Thacher & Bartlett.
Mr. Sawhney currently sits on the Board of the Blackstone Charitable Foundation. He is also the chair of the board of directors of Dream, an east Harlem-
based educational and social services organization, and a Trustee of Quinnipiac University. He graduated magna cum laude from Dartmouth College, where he
was elected to Phi Beta Kappa. He received a JD, cum laude, from Harvard Law School.
Joseph P. Baratta is Global Head of Private Equity Strategies at Blackstone and a member of the board of directors. Mr. Baratta joined the board of
directors in March 2020 and has served as Blackstone’s Global Head of Private Equity since July 2012. He also sits on the firm’s Management Committee.
Mr. Baratta joined Blackstone in 1998, and in 2001 he moved to London to help establish Blackstone’s corporate private equity business in Europe. Before
joining Blackstone, Mr. Baratta was with Tinicum Incorporated and McCown De Leeuw & Company. Mr. Baratta also worked at Morgan Stanley in its mergers
and acquisitions department. Mr. Baratta has served on the boards of a number of Blackstone portfolio companies and currently serves as a member or
observer on the boards of directors of First Eagle Investment Management, Refinitiv, SESAC, Ancestry, Candle Media and Merlin Entertainments Group. He is a
trustee of the Tate Foundation and serves on the board of Year Up, an organization focused on youth employment. Mr. Baratta graduated magna cum laude
from Georgetown University.
James W. Breyer is a member of our board of directors. Mr. Breyer joined the board of directors in July 2016. Since 2006, Mr. Breyer has been the
Founder and Chief Executive Officer of Breyer Capital, a premier venture capital firm based in Austin, Texas and Menlo Park, California. Mr. Breyer has been an
early investor in over 40 technology companies that have completed successful public offerings or mergers. He served as Partner at Accel Partners from 1990
to 2016 and Managing Partner from 1995 to 2011. Over the past several years, Mr. Breyer has developed a deep personal and investment interest in long-
term oriented entrepreneurs and teams working in artificial/augmented intelligence and human-assisted intelligence and has made numerous investments in
this space. Mr. Breyer previously served on the board of directors of Twenty-First Century Fox, Inc. from 2011 to 2019, Facebook, Inc. from 2005 to 2013, Etsy,
Inc. from 2008 to 2016, Dell, Inc. from 2009 to 2013 and Wal-Mart Stores, Inc. from 2001 to 2013, as well as a number of other technology companies.
Mr. Breyer is currently a member of Harvard Business School’s Board of Dean’s Advisors, a member of Harvard University’s Global Advisory Council, a founding
member of the Dean’s Advisory Board of Stanford University’s School of Engineering, Chairman of the Stanford Engineering Venture Fund and founding
member of the Stanford Institute for Human-Assisted Artificial Intelligence Advisory Board. In addition, Mr. Breyer is a long-time active volunteer as a Trustee
of the San Francisco Museum of Modern Art, the Metropolitan Museum of Art, the American Film Institute and Stanford’s Center for Philanthropy and Civil
Society.
Reginald J. Brown is a member of the board of directors of Blackstone. Mr. Brown joined the board of directors in September 2020. Since
December 2020, Mr. Brown has been a partner in the Washington, D.C. office of Kirkland & Ellis LLP. Prior to joining Kirkland, Mr. Brown was a partner at
WilmerHale from 2005 to 2020, where he served as chairman of the firm’s Financial Institutions Group and led the firm’s congressional investigations practice
as vice chair of the Crisis Management and Strategic Response Group. From 2003 to 2005, Mr. Brown served as associate White House Counsel and special
assistant to the President, and prior to serving in government, he worked as Assistant to the CEO and Vice President for Corporate Strategy at Nationwide
Mutual Insurance Company. Mr. Brown holds a BA from Yale University and a JD from Harvard Law School.
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Rochelle B. Lazarus is a member of our board of directors. Ms. Lazarus joined the board of directors in July 2013. Ms. Lazarus is Chairman Emeritus of
Ogilvy & Mather and served as Chairman of that company from 1997 to June 2012. Prior to becoming Chief Executive Officer and Chairman, she also served as
President of O&M Direct North America, Ogilvy & Mather New York, and Ogilvy & Mather North America. Ms. Lazarus currently serves on the boards of
Rockefeller Capital Management, Organon, World Wildlife Fund, Lincoln Center for the Performing Arts and the Partnership for New York City. She also
previously served on the boards of directors of General Electric Company and Merck & Co. Ms. Lazarus is a trustee of the New York Presbyterian Hospital and
is a member of the Board of Overseers of Columbia Business School.
William G. Parrett is a member of our board of directors. Mr. Parrett joined the board of directors in November 2007. Until May 2007, Mr. Parrett served
as the Chief Executive Officer of Deloitte Touche Tohmatsu and Senior Partner of Deloitte (USA). Certain of the member firms of Deloitte Touche Tohmatsu or
their subsidiaries and affiliates provide professional services to Blackstone or its affiliates. Mr. Parrett co-founded the Global Financial Services Industry
practice of Deloitte and served as its first Chairman. Mr. Parrett is a member of the board of directors and the nominating and governance committee of
Oracle Corporation. Mr. Parrett is a senior advisor to the New York Foundation for Senior Citizens. Mr. Parrett was also previously a member of the boards of
directors of Eastman Kodak Company, Thermo Fisher Scientific Inc., UBS AG, UBS Americas, Conduent Inc. and ThoughtWorks, Inc. Mr. Parrett is a past Senior
Trustee of the United States Council for International Business and a past Chairman of the Board of Trustees of United Way Worldwide. Mr. Parrett is a
Certified Public Accountant with an active license.
Ruth Porat is a member of the board of directors of Blackstone. Ms. Porat joined the board of directors in June 2020. Ms. Porat is President and Chief
Investment Officer of Alphabet and Google. She joined Google as Senior Vice President and Chief Financial Officer in May 2015 and has held the same title at
Alphabet since it was created in October 2015. She has served as President and Chief Investment Officer of Alphabet and Google since September 2023. As
President and Chief Investment Officer, she has responsibility for, among other things, their corporate investments and investment vehicles, including GV and
CapG, the Other Bets investment portfolio, Real Estate and Workplace Services, and other infrastructure. The role also includes engaging with policymakers
and regulators globally regarding their contributions to economic growth, job creation and opportunity, competitiveness, and infrastructure expansion. Prior
to joining Google, Ms. Porat was Executive Vice President and Chief Financial Officer of Morgan Stanley and held roles there that included Vice Chairman of
Investment Banking, Co-Head of Technology Investment Banking and Global Head of the Financial Institutions Group. Ms. Porat is a member of the boards of
directors of the Council on Foreign Relations and Bloomberg Philanthropies, and the Board of Trustees of Memorial Sloan Kettering Cancer Center. She
previously spent ten years on Stanford University’s Board of Trustees and on the Board of the Stanford Management Company. Ms. Porat holds a BA from
Stanford University, an MSc from The London School of Economics and an MBA from the Wharton School.
Governance and Board Composition
Our capital stock consists of common stock, Series I preferred stock and Series II preferred stock. Under our amended and restated certificate of
incorporation and Delaware law, holders of our common stock are entitled to vote, together with holders of our Series I preferred stock, voting as a single
class, on a number of significant matters, including certain sales, exchanges or other dispositions of all or substantially all of our assets, a merger,
consolidation or other business combination, the removal of the Series II Preferred Stockholder and forced transfer by the Series II Preferred Stockholder (as
defined below) of its shares of Series II preferred stock and the designation of a successor Series II Preferred Stockholder. The single share of outstanding
Series II preferred stock is currently held by Blackstone Group Management L.L.C. (the “Series II Preferred Stockholder”), an entity owned by our senior
managing directors and controlled by our Co-Founder, Mr. Schwarzman.
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The Series II Preferred Stockholder elects our board of directors in accordance with the Series II Preferred Stockholder’s limited liability company
agreement, where our senior managing directors have agreed that our Co-Founder, Mr. Schwarzman, will have the power to vote upon, act upon, consent to,
approve or otherwise determine any matters to be voted upon, acted upon, consented to, approved or otherwise determined by the members of the Series II
Preferred Stockholder. The limited liability company agreement of our Series II Preferred Stockholder provides that at such time as Mr. Schwarzman should
cease to be a founding member, Jonathan D. Gray will thereupon succeed Mr. Schwarzman as the sole founding member of our Series II Preferred
Stockholder, and thereafter such power will revert to the members of Series II Preferred Stockholder holding a majority in interest in the Series II Preferred
Stockholder.
In identifying candidates for membership on the board of directors, Mr. Schwarzman, acting on behalf of the Series II Preferred Stockholder, takes into
account (a) minimum individual qualifications, such as strength of character, mature judgment, industry knowledge or experience and an ability to work
collegially with the other members of the board of directors, and (b) all other factors he considers appropriate.
After conducting an initial evaluation of a candidate, Mr. Schwarzman will interview that candidate if he believes the candidate might be suitable to be a
director and may also ask the candidate to meet with other directors and senior management. If, following such interview and any consultations with
directors and senior management, Mr. Schwarzman believes a candidate would be a valuable addition to the board of directors, he will appoint that individual
to the board of directors.
When considering whether the members of the board of directors have the experience, qualifications, attributes and skills, taken as a whole, to enable
the board to satisfy its oversight responsibilities effectively in light of Blackstone’s business and structure, Mr. Schwarzman focused on the information
described in each of the board members’ biographical information set forth above. In particular, with regard to Mr. Breyer, Mr. Schwarzman considered his
extensive financial background and significant investment experience at Breyer Capital and Accel Partners. With regard to Mr. Brown, Mr. Schwarzman
considered his distinguished career in public service and experience advising large institutions and prominent figures in the private and public sector. With
regard to Ms. Lazarus, Mr. Schwarzman considered her extensive business background and her management experience in a variety of senior leadership roles
at Ogilvy & Mather. With regard to Mr. Parrett, Mr. Schwarzman considered his significant experience, expertise and background with regard to auditing and
accounting matters, his leadership role at Deloitte and his extensive experience serving as a director on boards of directors. With regard to Ms. Porat,
Mr. Schwarzman considered her extensive experience in the financial industry and her leadership roles with Alphabet, Google and Morgan Stanley. With
regard to Messrs. Gray and Baratta, Mr. Schwarzman considered their leadership and extensive knowledge of our business and operations gained through
their years of service at our firm and, with regard to himself, Mr. Schwarzman considered his role as co-founder and long-time Chief Executive Officer of our
firm.
Controlled Company Exception and Director Independence
Because the Series II Preferred Stockholder holds more than 50% of the voting power for the election of directors, we are a “controlled company” within
the meaning of the corporate governance standards of the NYSE. Under these standards, a “controlled company” may elect not to comply with certain
corporate governance standards, including the requirements (a) that a majority of its board of directors consist of independent directors, (b) that its board of
directors have a compensation committee that is comprised entirely of independent directors with a written charter addressing the committee’s purpose and
responsibilities and (c) that its board of directors have a nominating and corporate governance committee that is comprised entirely of independent directors
with a written charter addressing the committee’s purpose and responsibilities. See “Part I. Item 1A Risk Factors — Risks Related to Our Organizational
Structure — We are a controlled company and as a result qualify for some exceptions from certain corporate governance and other requirements of the New
York Stock Exchange.” We currently utilize the second and third of these exemptions. In the event that we cease to be a “controlled company” and our shares
of common stock continue to be listed on the NYSE, we will be required to comply with these provisions within the applicable transition periods. While we are
exempt from the NYSE rules requiring a majority of independent directors, we currently have and intend to continue to maintain a majority independent
board of directors.
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Our board of directors has a total of eight members, including five members, Messrs. Breyer, Brown and Parrett, and Mses. Lazarus and Porat, who are
independent under NYSE rules relating to corporate governance matters and the independence standards described in our governance policy. In addition,
Mr. Mulroney and Ms. Ayotte, who ceased to be directors on our board of directors effective February 29, 2024 and November 14, 2024, respectively, each
satisfied the independence requirements of the NYSE during his or her respective tenure.
Board Committees
Our board of directors has three standing committees: the audit committee, the compensation committee and the executive committee.
Audit Committee. The audit committee consists of Messrs. Parrett (Chairman) and Breyer and Mses. Ayotte, Lazarus and Porat. The purpose of the audit
committee is, among other things, to assist the board of directors in fulfilling its responsibility with respect to its oversight of (a) the quality and integrity of
our financial statements, (b) our compliance with legal and regulatory requirements, (c) our independent auditor’s qualification, independence and
performance, and (d) the performance of our internal audit function. The audit committee’s responsibilities also include reviewing with management, the
independent auditors and internal audit, the areas of material risk to our operations and financial results, including, without limitation, major financial and
cybersecurity risks and exposures and our guidelines and policies with respect to risk assessment and risk management. The members of the audit committee
meet the independence standards and financial literacy requirements for service on an audit committee of a board of directors pursuant to the NYSE listing
standards and SEC rules applicable to audit committees. The board of directors has determined that each of Mr. Parrett and Mses. Lazarus and Porat is an
“audit committee financial expert” within the meaning of Item 407(d)(5) of Regulation S-K. The audit committee has a charter, which is available on our
website at http://ir.blackstone.com under “Corporate Governance.”
Compensation Committee. The compensation committee consists of Mr. Schwarzman. The purpose of the compensation committee is, among other
things, to fix, and establish policies for, the compensation of officers and employees of the Company and its subsidiaries.
Executive Committee. The executive committee consists of Messrs. Schwarzman, Gray and Baratta. The board of directors has delegated all of the power
and authority of the full board of directors to the executive committee to act when the board of directors is not in session.
Code of Business Conduct and Ethics
We have a Code of Business Conduct and Ethics and a Code of Ethics for Financial Professionals, which apply to our principal executive officer, principal
financial officer and principal accounting officer. Each of these codes is available on our website at http://ir.blackstone.com under “Corporate Governance.”
We intend to disclose any amendment to or waiver of the Code of Ethics for Financial Professionals and any waiver of our Code of Business Conduct and
Ethics on behalf of an executive officer or director either on our website or by filing a Current Report on Form 8-K.
Securities Trading Policies and Procedures
We have adopted policies and procedures governing the purchase, sale and/or other dispositions of our securities by directors, officers and employees
and by Blackstone that are reasonably designed to promote compliance with insider trading laws, rules and regulations, and the listing standards of the New
York Stock Exchange. A copy of our Securities Trading Policies and Procedures Governing Transactions Blackstone Securities is filed as Exhibit 19.1 to this
Annual Report on Form 10-K.
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Corporate Governance Guidelines
The board of directors has a Governance Policy, which addresses matters such as the board of directors’ responsibilities and duties and the board of
directors’ composition and compensation. The Governance Policy is available on our website at http://ir.blackstone.com under “Corporate Governance.”
Communications to the Board of Directors
The non-management members of our board of directors meet at least quarterly. The presiding director at these non-management board member
meetings is Mr. Parrett. All interested parties, including any employee or stockholder, may send communications to the non-management members of our
board of directors by writing to: Blackstone Inc., Attn: Audit Committee, 345 Park Avenue, New York, New York 10154.
Delinquent Section 16(a) Reports
On August 5, 2024, Blackstone discovered that a filing it had scheduled to be made for its Principal Accounting Officer via its filing agent’s software had
not been properly transmitted by the software to the SEC on August 2nd as Blackstone had scheduled. Immediately after the error was discovered, Blackstone
contacted its filing agent. The filing agent notified Blackstone that this was due to a technical error in the filing agent’s software. The filing agent re-filed the
Form 4 that same day.
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Item 11.
Executive Compensation
Compensation Discussion and Analysis
Overview of Compensation Philosophy and Program
The intellectual capital collectively possessed by our senior managing directors (including our named executive officers) and other employees is the most
important asset of our firm. We invest in people. We hire qualified people, train them, encourage them to provide their best thinking to the firm for the
benefit of the investors in the funds we manage, and compensate them in a manner designed to retain and motivate them and align their interests with those
of the investors in our funds and our stockholders.
Our overriding compensation philosophy for our senior managing directors and certain other employees is that compensation should be composed
primarily of (a) annual cash bonus payments tied to Blackstone’s overall performance and the performance of the applicable business unit(s) in which such
employee works, (b) performance interests (composed primarily of Performance Allocations, commonly referred to as carried interest, and incentive fee
interests) tied to the performance of the investments made by the funds in the business unit in which such employee works or for which he or she has
responsibility, and (c) deferred equity awards reflecting the value of our common stock. We believe that the appropriate combination of annual cash bonus
payments and performance interests and/or deferred equity awards encourages our senior managing directors and other employees to focus on the
underlying performance of our investment funds, as well as the overall performance of the firm and interests of our stockholders, and that base salary should
represent a significantly lesser component of total compensation.
We believe that the proportion of compensation that is “at risk” should increase as an employee’s level of responsibility rises. Base salary generally
represents a smaller percentage of the total compensation of employees at higher total compensation levels compared to employees at lower total
compensation levels. Employees at higher total compensation levels are generally targeted to receive a greater percentage of their total compensation in the
form of participation in performance interests, deferred equity awards and, to a lesser extent, annual cash bonuses subject to deferral.
Our compensation program includes significant elements that discourage excessive risk-taking and align the compensation of our employees with the
long-term performance of the firm. For example, for accounting purposes we accrue compensation for the Performance Plans (as defined below) related to
our carry funds as increases in the carrying value of the portfolio investments are recorded in those carry funds. Notwithstanding this fact, we only make cash
payments to our employees related to carried interest when profitable investments have been realized and cash is distributed first to the investors in our
funds, followed by the firm and only then to employees of the firm. Moreover, if a carry fund fails to achieve specified investment returns due to diminished
performance of later investments, our Performance Plans entitle us to “claw back” carried interest payments previously made to an employee for the benefit
of the limited partner investors in that fund, and we escrow a portion of all carried interest payments made to employees to help fund their potential future
“clawback” obligations, all of which further discourages excessive risk-taking by our employees. Similarly, for our investment funds that pay incentive fees,
those incentive fees are only paid to the firm and employees of the firm to the extent an applicable fund’s portfolio of investments has profitably appreciated
in value (in most cases above a specified level) during the applicable period. In addition, and as noted below with respect to our named executive officers,
requiring our professional employees to invest in certain of the funds they manage directly aligns the interests of our professionals and our fund investors. In
most cases, the carried interest earned on these investments represents a significant percentage of such professional employees’ after-tax compensation.
Lastly, because our equity awards have significant vesting or deferral provisions, the actual amount of compensation realized by the recipient is tied directly to
the long-term performance of our common stock. In applicable jurisdictions, specifically in the European Union and the United Kingdom, our compensation
program includes additional remuneration policies that may limit or otherwise alter the compensation for certain employees, consistent with local regulatory
requirements, and are aimed at, among other things, discouraging inappropriate risk-taking and aligning compensation with the firm’s strategy and long-term
interests, consistent with our general compensation program.
We believe our current compensation and benefit offerings for senior professionals are best in class and are consistent with companies in the alternative
asset management industry. We generally do not rely on compensation surveys or compensation consultants. Our senior management periodically reviews
the effectiveness and competitiveness of our compensation program, and such reviews may in the future involve the assistance of independent consultants.
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Personal Investment Obligations. As part of our compensation philosophy and program, we require our named executive officers to invest their own
capital in and alongside the funds that we manage. We believe that this strengthens the alignment of interests between our named executive officers and the
investors in those investment funds. See “—Item 13. Certain Relationships and Related Transactions, and Director Independence — Investment In or
Alongside Our Funds.” In determining compensation for our named executive officers, we do not take into account the gains or losses attributable to the
personal investments by our named executive officers in our investment funds.
Minimum Retained Ownership Requirements. We believe the continued ownership by our named executive officers of significant amounts of our equity
affords significant alignment of interests with our stockholders. For equity awards granted in 2019 and onward (other than grants made under our Bonus
Deferral Plan), our named executive officers are required to hold 25% of their vested equity for two years after the applicable vesting event. If the named
executive officer’s employment terminates prior to such time, however, such 25% of the vested equity must be held for two years after termination of
employment. The minimum retained ownership requirements for our named executive officers are further described below under “— Narrative Disclosure to
Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Terms of Discretionary Equity Awards — Minimum Retained Ownership
Requirements.”
Named Executive Officers
In 2024, our named executive officers were:
Executive
   Title
Stephen A. Schwarzman
   Co-Founder, Chairman and Chief Executive Officer
Jonathan D. Gray
   President and Chief Operating Officer
Michael S. Chae
   Vice Chairman and Chief Financial Officer
John G. Finley
   Chief Legal Officer
Vikrant Sawhney
   Chief Administrative Officer and Global Head of Institutional Client Solutions
Compensation Elements for Named Executive Officers
The key elements of the compensation of our named executive officers for 2024 were base compensation, which is composed of base salary, cash bonus
and equity-based compensation, and performance compensation, which is composed of carried interest and incentive fee allocations:
1. Base Salary. Each named executive officer received a $350,000 annual base salary in 2024, which equals the total yearly partnership drawings that
were received by each of our senior managing directors prior to our initial public offering in 2007. In keeping with historical practice, we continue to pay this
amount as a base salary.
2. Annual Bonus Payments / Deferred Equity Awards. Since our initial public offering, Mr. Schwarzman has not received any cash compensation other
than the $350,000 annual salary described above and the actual realized carried interest distributions or incentive fees he may receive in respect of his
participation in the carried interest or incentive fees earned from our funds through our Performance Plans described below. We believe that having
Mr. Schwarzman’s compensation largely based on ownership of a portion of the carried interest or incentive fees earned from our funds aligns his interests
with those of the investors in our funds and our stockholders.
Each of our named executive officers other than Mr. Schwarzman received annual bonus payments in respect of 2024 in addition to their base salary.
These bonus payments included participation interests in the earnings of the firm’s various investment businesses. For all named executive officers, the
amount of bonus payments paid to such named executive officer at the end of the year in respect of such year was determined in the discretion of
Mr. Schwarzman and Mr. Gray, as described below. Earnings for the firm’s investment businesses are calculated based on the annual operating income of the
businesses and are generally a function of the performance of the businesses, which is evaluated by Mr. Schwarzman and Mr. Gray. The ultimate bonus
payment amounts were
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based on (a) the prior and anticipated performance of the named executive officer, (b) the prior and anticipated performance of the firm’s segments and
product lines, (c) the overall success of the firm and (d) where applicable, the estimated participation interests given to the named executive officer at the
beginning of the year in respect of the investments to be made in that year. We make annual bonus payments in the first quarter of the ensuing year to
reward individual performance for the prior year. The ultimate bonus payments that are made are fully discretionary as further discussed below under “—
Determination of Incentive Compensation.”
For 2024, all named executive officers other than Mr. Schwarzman were selected to participate in the Bonus Deferral Plan. The Bonus Deferral Plan
provides for the deferral of a portion of each participant’s annual cash bonus payment. Except as otherwise determined by the Plan Administrator (as defined
in the Bonus Deferral Plan), the amount of each participant’s annual cash bonus payment deferred under the Bonus Deferral Plan is calculated pursuant to a
deferral rate table using the participant’s total annual incentive compensation, which generally includes such participant’s annual cash bonus payment and a
portion of any incentive fees earned in connection with our investment funds and is subject to certain adjustments, including reductions for mandatory
contributions to our investment funds. By deferring a portion of a participant’s compensation, the Bonus Deferral Plan acts as an employment retention
mechanism and thereby enhances the alignment of interests between such participant and the firm. Many publicly traded asset managers utilize deferred
compensation plans as a means of retaining and motivating their professionals, and we believe that it is in the interest of our stockholders to do the same for
our personnel.
On January 10, 2025, Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney each received a deferral award under the Bonus Deferral Plan of deferred restricted
common stock units in respect of their service in 2024. The percentage of the 2024 annual cash bonus payment mandatorily deferred into deferred restricted
common stock units for Messrs. Gray, Chae, Finley and Sawhney was approximately 100%, 100%, 40% and 100%, respectively. These awards are reflected as
stock awards for fiscal year 2024 in the Summary Compensation Table and in the Grants of Plan-Based Awards in 2024 table.
3. Discretionary Equity Awards. On April 1, 2024, Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney were awarded a discretionary award of 197,896,
79,159, 71,243 and 71,243 deferred restricted common stock units, respectively. These awards reflected 2023 performance and were intended to further
promote retention and to incentivize future performance. The awards were granted under the 2007 Equity Incentive Plan. The awards will vest 10% on July 1,
2025, 10% on July 1, 2026, 20% on July 1, 2027, 30% on July 1, 2028 and 30% on July 1, 2029. These awards are reflected as stock awards for fiscal 2024 in the
Summary Compensation Table and in the Grants of Plan-Based Awards in 2024 table.
In January 2025, Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney were each informed of anticipated discretionary awards of deferred restricted common
stock units with values of $30,000,000, $15,000,000, $15,000,000 and $12,750,000, respectively. These anticipated awards reflect 2024 performance and are
intended to further promote retention and to incentivize future performance. These awards are expected to be granted under the 2007 Equity Incentive Plan
on April 1, 2025, subject to the named executive officer’s continued employment through such date. Once granted, these awards will vest 10% on July 1,
2026, 10% on July 1, 2027, 20% on July 1, 2028, 30% on July 1, 2029 and 30% on July 1, 2030 and will be reflected as stock awards for fiscal 2025 in the
Summary Compensation Table and in the Grants of Plan-Based Awards in 2025 table.
4. Participation in Carried Interest and Incentive Fees. During 2024, all of our named executive officers participated in the carried interest and/or the
incentive fees of our funds through their participation interests in the carry or incentive fee pools generated by these funds. The carry or incentive fee pool
with respect to each fund in a given year is funded by a fixed percentage of the total amount of carried interest or incentive fees earned by Blackstone for
such fund in that year. We refer to these pools and employee participation therein as our “Performance Plans” and payments made thereunder as
“performance payments.” The aggregate amount of performance payments payable through our Performance Plans is directly tied to the performance of the
funds, which we believe benefits our stockholders by fostering a strong alignment of interests between the investors in those funds and the named executive
officers. In addition, most alternative asset managers, including several of our competitors, use participation in carried interest or incentive fees as a central
means of compensating and motivating their professionals, and we must do the same in order to attract and retain the most qualified personnel. For
purposes of our financial statements, we treat the income allocated to all our personnel who have participation interests in the carried interest or incentive
fees generated by our funds as compensation, and the amounts of carried interest and
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incentive fees earned by named executive officers are reflected as “All Other Compensation” in the Summary Compensation Table. Distributions in respect of
our Performance Plans for each named executive officer are determined on the basis of the percentage participation in the relevant investments previously
allocated to that named executive officer, which percentage participations are established in January of each year in respect of the investments to be made in
that year. The percentage participation for a named executive officer may vary from year to year and fund to fund due to several factors, which may include
changes in the size and composition of the pool of Blackstone personnel participating in such Performance Plan in a given year, the performance of our
various businesses, new developments in our businesses and product lines, and the named executive officer’s leadership and oversight of the function for
which the named executive officer is responsible and such named executive officer’s contributions with respect to our strategic initiatives. In addition, certain
of our employees, including our named executive officers, may participate in profit sharing initiatives whereby these individuals may receive allocations of
investment income from Blackstone’s firm investments. Our employees, including our named executive officers, may also receive equity awards in our
investment advisory clients and/or be allocated securities of such clients that we have received.
(a) Carried Interest. Distributions of carried interest in cash (or, in some cases, in-kind) to our named executive officers and other employees who
participate in our Performance Plans relating to our carry funds depends on the realized proceeds and timing of the cash realizations of the investments
owned by the carry funds in which they participate. Our carry fund agreements also set forth specified preconditions to a carried interest distribution, which
typically include that there must have been a positive return on the relevant investment and that the fund must be above its carried interest hurdle rate. In
addition, as described below, employees or senior managing directors may also be required to have fulfilled specified service requirements to be eligible to
receive carried interest distributions. For our carry funds, carried interest distributions for the named executive officer’s participation interests are generally
made to the named executive officer following the actual realization of the investment, although a portion of such carried interest is held back by the firm in
respect of any future “clawback” obligation related to the fund. In allocating participation interests in the carry pools, we have not historically taken into
account or based such allocations on any prior or projected triggering of any “clawback” obligation related to any fund. To the extent any “clawback”
obligation were to be triggered for a fund, carried interest previously distributed to a named executive officer would have to be returned to the limited
partners of such fund, thereby reducing the named executive officer’s overall compensation for any such year. Moreover, because a carried interest recipient
(including Blackstone itself) may have to fund more than its respective share of a “clawback” obligation under the governing documents (generally, up to an
additional 67%), the compensation paid to a named executive officer for any given year could be significantly reduced or even negative in the event a
“clawback” obligation were to arise.
Participation in carried interest generated by our carry funds for all named executive officers other than Mr. Schwarzman is subject to vesting. Vesting
serves as an employment retention mechanism and thereby enhances the alignment of interests between a participant in our Performance Plans and the
firm. Carried interest generally vests in equal installments on the first through fourth anniversary of the closing of the investment to which it relates (unless an
investment is realized prior to the expiration of such four-year anniversary, in which case an active named executive officer is deemed 100% vested in the
proceeds of such realizations). In addition, any named executive officer who is Tier I or Tier II retirement eligible (as defined below) will automatically vest in
50% of their otherwise unvested carried interest allocation upon retirement. We believe that vesting requirements of carried interest participation enhances
the stability of our senior management team and provides greater incentives for our named executive officers to remain at the firm. Due to his unique status
as a co-founder and the longtime chief executive officer of our firm, Mr. Schwarzman vests in 100% of his carried interest participation related to any
investment by a carry fund upon the closing of that investment.
(b) Incentive Fees. Cash distributions of incentive fees to our named executive officers and other employees who participate in our Performance Plans
relating to the funds that pay incentive fees depend on the performance of the investments owned by those funds in which they participate. For our
investment funds that pay incentive fees, those incentive fees are only paid to the firm and employees of the firm to the extent an applicable fund’s portfolio
of investments has profitably appreciated in value (in most cases above a specified level) during the applicable period and following the calculation of the
profit split (if any) between the fund’s general partner or investment adviser and the fund’s investors.
(c) Investment Advisory Client Interests. BXMT is an investment advisory client of Blackstone. Compensation we receive from investment advisory
clients in the form of securities may be allocated to employees
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and senior managing directors. In 2024, Messrs. Schwarzman, Gray, Chae, Finley and Sawhney were allocated restricted shares of listed common stock of
BXMT in connection with investment advisory services provided by Blackstone to BXMT. The value of these allocated shares is reflected as “All Other
Compensation” in the Summary Compensation Table.
5. Other Benefits. Upon the consummation of our initial public offering in June 2007, we entered into a founding member agreement with our
co-founder, Mr. Schwarzman, which provides (as subsequently amended) specified benefits to him following his retirement. (See “— Narrative Disclosure to
Summary Compensation Table and Grants of Plan-Based Awards in 2024 —Schwarzman Founding Member Agreement.”) Mr. Schwarzman is provided certain
security services, which may include home security systems and monitoring, and personal and related security services. These security services are provided
for our benefit, and we consider the related expenses to be appropriate business expenses rather than personal benefits for Mr. Schwarzman. Nevertheless,
the expenses associated with these security services are reflected in the “All Other Compensation” column of the Summary Compensation Table below to the
extent the aggregate amount of all perquisites or other personal benefits received exceeded $10,000.
Determination of Incentive Compensation
Mr. Schwarzman reserves final approval of each named executive officer’s compensation, other than his own, and receives recommendations from
Mr. Gray on such compensation determinations (other than with respect to Mr. Gray’s own compensation). Mr. Schwarzman’s compensation has been
established pursuant to the terms of his amended and restated founding member agreement, which is described below under “Narrative Disclosure to
Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Schwarzman Founding Member Agreement.” For 2024, these decisions were
based primarily on Mr. Schwarzman’s and Mr. Gray’s assessment of such named executive officer’s individual performance, operational performance for the
areas of the business for which the named executive officer has responsibility, and the named executive officer’s potential to enhance investment returns for
the investors in our funds and service to our investment advisory clients, and to contribute to long-term stockholder value. In evaluating these factors,
Mr. Schwarzman and Mr. Gray relied upon their judgment to determine the ultimate amount of a named executive officer’s annual cash bonus payment and
participation in carried interest, incentive fees and investment advisory client interests that was necessary to properly induce the named executive officer to
seek to achieve our objectives and reward a named executive officer in achieving those objectives over the course of the prior year. Key factors that
Mr. Schwarzman considered in making such determination with respect to Mr. Gray were his service as President and Chief Operating Officer, his role in
overseeing the growth and operations of the firm, and his leadership on the strategic direction of the firm. Key factors that Messrs. Schwarzman and Gray
considered in making such determinations with respect to Mr. Chae were his leadership and oversight of our global finance, treasury, technology and
corporate development functions and his role in strategic initiatives undertaken by the firm. Key factors that Messrs. Schwarzman and Gray considered in
making such determinations with respect to Mr. Finley were his leadership and oversight of our global legal and compliance functions, his role in positioning
the firm to be compliant with and responsive to evolving legal and regulatory requirements applicable to us and our investment businesses, and his role in
strategic initiatives undertaken by the firm. Key factors that Messrs. Schwarzman and Gray considered in making such determinations with respect to
Mr. Sawhney were his leadership and oversight of our global institutional and private client relationships, his role in overseeing aspects of the firm’s
operations and his role in strategic initiatives undertaken by the firm. For 2024, Messrs. Schwarzman and Gray also considered Blackstone’s overall
performance and each named executive officer’s prior year annual cash bonus payments, the named executive officers’ allocated share of performance
interests through participation in our Performance Plans, the appropriate balance between incentives for long-term and short-term performance, and the
compensation paid to the named executive officer’s peers within the firm. The actual cash bonus amounts awarded based on these considerations, net of the
portion of Mr. Gray’s, Mr. Chae’s, Mr. Finley’s and Mr. Sawhney’s bonus mandatorily deferred into deferred restricted common stock units pursuant to the
Bonus Deferral Plan, are reflected in the “Bonus” column of the Summary Compensation Table below.
Policies and Practices Related to the Timing of Equity Awards
Our executive compensation program has historically not included awards of stock options. Accordingly, we have no policy, program, practice, or plan
pertaining to the timing of stock option grants with respect to the release of material non-public information. We also have not timed the release of material
non-public information for the purpose of affecting the value of executive compensation.
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Compensation Committee Report
The compensation committee of the board of directors has reviewed and discussed with management the foregoing Compensation Discussion and
Analysis and, based on such review and discussion, has determined that the Compensation Discussion and Analysis should be included in this annual report.
Stephen A. Schwarzman
Compensation Committee Interlocks and Insider Participation
During 2024, our compensation committee was comprised of Mr. Schwarzman, and none of our executive officers served as a director or member of the
compensation committee (or other committee serving an equivalent function) of any other entity whose executive officers served on our compensation
committee or our board of directors. For a description of certain transactions between us and Mr. Schwarzman, see “—Item 13. Certain Relationships and
Related Transactions, and Director Independence.”
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Summary Compensation Table
The following table provides summary information concerning the compensation of our Chief Executive Officer, our Vice Chairman and Chief Financial
Officer and each of our other named executive officers for services rendered to us. These individuals are referred to as our named executive officers in this
annual report.
Name and Principal Position
  
Year   
Salary
  
Bonus (a)
  
Stock
Awards (b)
  
All Other
Compensation (c)  
Total
Stephen A. Schwarzman
   2024   $350,000   $
—   $
—   $ 83,677,074   $ 84,027,074 
Chairman and
   2023   $350,000   $
—   $
—   $119,434,375   $119,784,375 
Chief Executive Officer
   2022   $350,000   $
—   $
—   $252,772,146   $253,122,146 
Jonathan D. Gray
   2024   $350,000   $
—   $32,821,208   $ 44,141,580   $ 77,312,788 
President and
   2023   $350,000   $
—   $37,504,034   $ 87,484,093   $125,338,127 
Chief Operating Officer
   2022   $350,000   $
—   $54,581,040   $241,541,158   $296,472,198 
Michael S. Chae
   2024   $350,000   $
—   $15,911,823   $
5,224,642   $ 21,486,465 
Vice Chairman and
   2023   $350,000   $4,296,409   $12,128,412   $
9,606,467   $ 26,381,288 
Chief Financial Officer
   2022   $350,000   $3,179,404   $14,586,650   $ 17,909,803   $ 36,025,856 
John G. Finley
   2024   $350,000   $3,382,867   $11,377,132   $
2,043,192   $ 17,153,191 
Chief Legal Officer
   2023   $350,000   $3,091,991   $11,315,977   $
3,150,580   $ 17,908,548 
   2022   $350,000   $2,863,548   $12,316,037   $
6,681,266   $ 22,210,851 
Vikrant Sawhney
   2024   $350,000   $
—   $13,298,294   $
8,571,538   $ 22,219,832 
Chief Administrative Officer and
Global Head of Institutional Client Solutions
  
 2023 
  
$350,000 
  
$3,107,641 
  
$10,272,784 
  
$ 11,343,099 
  
$ 25,073,524 
(a)
The amounts reported in this column reflect the annual cash bonus payments made for performance in the indicated year.
The amount reported as “bonus” for 2024 for Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney is shown net of their mandatory deferral pursuant to the
Bonus Deferral Plan. The deferred amounts for 2024 were as follows: Mr. Gray, $7,650,000, Mr. Chae, $6,150,000, Mr. Finley, $2,267,133 and
Mr. Sawhney $4,400,000. For additional information on the Bonus Deferral Plan, see “— Narrative Disclosure to Summary Compensation Table and
Grants of Plan-Based Awards in 2024 — Terms of Deferred Restricted Common Stock Units Granted Under the Bonus Deferral Plan in 2025 and Prior
Years.”
(b) The reference to “stock” in this table refers to deferred restricted Blackstone Holdings Partnership Units or deferred restricted common stock units. The
amounts reported in this column represent the grant date fair value of stock awards granted for financial statement reporting purposes in accordance
with GAAP pertaining to equity-based compensation. The assumptions used in determining the grant date fair value are set forth in Note 17. “Equity-
Based Compensation” in the “Notes to Consolidated Financial Statements” in “Part II. Item 8. Financial Statements and Supplementary Data.”
Amounts reported for 2024 reflect the following deferred restricted common stock units granted on January 10, 2025, for the 2024 performance under
the Bonus Deferral Plan: Mr. Gray, 41,801 deferred restricted common stock units with a grant date fair value of $6,890,895, Mr. Chae, 33,604 deferred
restricted common stock units with a grant date fair value of $5,539,619, Mr. Finley, 12,388 deferred restricted common stock units with a grant date fair
value of $2,042,162 and Mr. Sawhney, 24,042 deferred restricted common stock units with a grant date fair value of $3,963,324. The grant date fair value
of these equity awards is computed in accordance with GAAP and generally differs from the dollar amount of such awards. For additional information on
the Bonus Deferral Plan, see “— Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Terms of Deferred
Restricted Common Stock Units Granted Under the Bonus Deferral Plan.”
(c)
Amounts reported for 2024 include distributions, whether in cash or in-kind, in respect of carried interest or incentive fee allocations relating to our
Performance Plans to the named executive officer in 2024 as follows: $71,857,251 for Mr. Schwarzman, $43,309,973 for Mr. Gray, $5,137,289 for
Mr. Chae, $2,008,251 for Mr. Finley and $8,484,185 for Mr. Sawhney. Any in-kind distributions in respect of carried interest are reported based on the
market value of the securities distributed as of the date of distribution. For 2024, no named executive officers received such in-kind distributions. We
have determined to present compensation relating to carried interest and incentive fees within the Summary Compensation Table in the year in which
such
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compensation is paid to the named executive officer under the terms of the relevant Performance Plan. Accordingly, the amounts presented in the table
differ from the compensation expense recorded by us on an accrual basis for such year in respect of carried interest and incentive fees allocable to a
named executive officer, which accrued amounts for 2024 are separately disclosed in this footnote to the Summary Compensation Table. We believe that
the presentation of the amounts of carried interest- and incentive fee-related compensation paid to a named executive officer during the year, instead of
the amounts of compensation expense we have recorded on an accrual basis, most appropriately reflects the actual compensation received by the
named executive officer and represents the amount most directly aligned with the named executive officer’s performance. By contrast, the amount of
compensation expense accrued in respect of carried interest and incentive fees allocable to a named executive officer can be highly volatile from year to
year, with amounts accrued in one year being reversed in a following year, and vice versa, causing such amounts to be less useful as a measure of the
compensation earned by a named executive officer in any particular year.
To the extent compensation expense recorded by us on an accrual basis in respect of carried interest or incentive fee allocations (rather than cash or
in-kind distributions) were to be included for 2024, the amounts would be $130,489,569 for Mr. Schwarzman, $55,624,994 for Mr. Gray, $9,776,156 for
Mr. Chae, $3,882,981 for Mr. Finley and $15,824,232 for Mr. Sawhney. For financial statement reporting purposes, the accrual of compensation expense
is equal to the amount of carried interest and incentive fees related to performance fee revenues as of the last day of the relevant period as if the
performance fee revenues in the funds generating such carried interest or incentive fees were realized as of the last day of the relevant period.
Amounts shown for 2024 also include the value of restricted shares of listed common stock of BXMT allocated to our named executive officers based on
the closing price of BXMT’s common stock on the date of the award as follows: $789,606 for Mr. Schwarzman, $831,607 for Mr. Gray, $87,353 for
Mr. Chae, $34,941 for Mr. Finley and 87,353 for Mr. Sawhney. These restricted BXMT shares will vest over three years with one-sixth of the shares vesting
at the end of the second quarter after the date of the award and the remaining shares vesting in ten equal quarterly installments thereafter. With the
exception of $11,030,216 of expenses related to security services in 2024 for Mr. Schwarzman and members of his family, there were no perquisites or
other personal benefits provided to the other named executive officers for which the aggregate incremental cost to the Company exceeded $10,000, and
information regarding any such perquisites or other personal benefits has therefore not been included. As noted above under “— Compensation
Discussion and Analysis — Compensation Elements for Named Executive Officers — Other Benefits,” we consider the expenses for security services for
Mr. Schwarzman to be for our benefit and appropriate business expenses rather than personal benefits for Mr. Schwarzman. Mr. Schwarzman makes
business and personal use of a car and driver and he and members of his family may also make occasional business and personal use of an airplane in
which we have a fractional interest. In each case, he bears the full cost of such personal usage. In addition, certain Blackstone personnel administer
personal matters for Mr. Schwarzman and members of his family and certain matters for the Stephen A. Schwarzman Education Foundation (“SASEF”)
and the Stephen A. Schwarzman Foundation (“SASF”), and Mr. Schwarzman, SASEF and SASF, as applicable, respectively, bear the full incremental cost to
us of such personnel, if any. There is no incremental expense incurred by us in connection with the use of any car and driver, airplane or personnel by
Mr. Schwarzman, as described above.
Grants of Plan-Based Awards in 2024
The following table provides information concerning equity awards granted in 2024 or, for deferred restricted common stock units granted under the
Bonus Deferral Plan or on the same terms as the deferred bonus awards under the Bonus Deferral Plan, with respect to 2024, to our named executive officers:
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Name
  
Grant Date    
All Other Stock
Awards:
Number of
Shares of Stock
or Units
 
 
Grant Date Fair
Value of Stock
and Option
Awards
 
Stephen A. Schwarzman
  
 
—   
 
— 
 
$
— 
Jonathan D. Gray
  
  4/1/2024   
 
197,896(a)  
$25,930,313 
  
 1/10/2025   
 
41,801(b)  
$ 6,890,895 
Michael S. Chae
  
  4/1/2024   
 
79,159(a)  
$10,372,204 
  
 1/10/2025   
 
33,604(b)  
$ 5,539,619 
John G. Finley
  
  4/1/2024   
 
71,243(a)  
$ 9,334,970 
  
 1/10/2025   
 
12,388(b)  
$ 2,042,162 
Vikrant Sawhney
  
  4/1/2024   
 
71,243(a)  
$ 9,334,970 
  
 1/10/2025   
 
24,042(b)  
$ 3,963,324 
(a)
Represents deferred restricted common stock units granted in 2024 under our 2007 Equity Incentive Plan for 2023 performance.
(b) Represents deferred restricted common stock units granted in 2025 under the Bonus Deferral Plan for 2024 performance. These grants are reflected in
the “Stock Awards” column of the Summary Compensation Table in 2024.
Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024
Terms of Discretionary Equity Awards
Vesting Provisions. The 981,883 deferred restricted Blackstone Holdings Partnership Units granted to Mr. Chae in 2016 vested annually in substantially
equal installments over six years beginning on July 1, 2019. The 708,601, 47,241, 47,241 and 9,449 deferred restricted Blackstone Holdings Partnership Units
granted in 2019 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, vested 20% on July 1, 2022, 30% on July 1, 2023 and 50% on July 1, 2024. The
757,217, 216,348, 108,174 and 216,348 deferred restricted common stock units granted in 2020 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney,
respectively, vested 10% on July 1, 2021, 10% on July 1, 2022, 20% on July 1, 2023 and 30% on July 1, 2024, and will vest 30% on July 1, 2025. The 533,628,
105,322, 91,279 and 119,365 deferred restricted common stock units granted in 2021 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, vested
10% on July 1, 2022, 10% on July 1, 2023, 20% on July 1, 2024, and will vest 30% on July 1, 2025 and 30% on July 1, 2026. The 314,747, 86,970, 74,546 and
76,202 deferred restricted common stock units granted in 2022 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, vested 10% on July 1, 2023,
10% on July 1, 2024, and will vest 20% on July 1, 2025, 30% on July 1, 2026 and 30% on July 1, 2027. The 349,191, 116,397, 104,758 and 104,758 deferred
restricted common stock units granted in 2023 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, vested 10% on July 1, 2024, and will vest 10%
on July 1, 2025, 20% on July 1, 2026, 30% on July 1, 2027 and 30% on July 1, 2028. The 197,896, 79,159, 71,243 and 71,243 deferred restricted common stock
units granted in 2024 to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, will vest 10% on July 1, 2025, 10% on July 1, 2026, 20% on July 1, 2027,
30% on July 1, 2028 and 30% on July 1, 2029.
Except as described below, unvested discretionary equity awards are generally forfeited upon termination of employment. With respect to Mr. Gray, the
deferred restricted common stock units granted to him in 2020 and subsequent years will become fully vested if he is terminated by us without cause. In
addition, upon the death or permanent disability of a named executive officer, all unvested discretionary equity awards of common stock units held at that
time will vest immediately. In connection with a named executive officer’s termination of employment due to a Tier I qualifying retirement or a Tier II
qualifying retirement, 50% or 100% of such units, respectively, will continue to vest and be delivered over the vesting period, subject to forfeiture if the
named executive officer violates any applicable provision of his employment agreement or engages in any competitive activity (as such term is defined in the
applicable award agreement). Blackstone personnel are deemed Tier I retirement eligible upon reaching the age of 55 and having at least five full years of
service with our firm, and the sum of his or her age plus years of service with our firm totals at least 65. Upon the effectiveness of the Tier II Retirement
Amendment (defined below), Blackstone personnel will be deemed Tier II retirement eligible upon reaching the age of 60 and having at least ten full years of
service with our firm. Further, in the event of a change in control (defined in the Blackstone Holdings partnership agreements as the occurrence of any person,
other than Blackstone Group Management L.L.C. or a person approved by Blackstone Group Management L.L.C., becoming the Series II Preferred
Stockholder), all unvested discretionary equity awards will automatically be deemed vested as of immediately prior to such change in control.
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All vested and unvested equity awards (and our common stock delivered upon vesting or received in exchange for Blackstone Holdings Partnership Units)
held by a named executive officer will be immediately forfeited in the event the named executive officer materially breaches any of their restrictive covenants
set forth in the non-competition and non-solicitation agreement outlined under “Non-Competition and Non-Solicitation Agreements” or their service is
terminated for cause. Notwithstanding the foregoing, Mr. Schwarzman will not be required to forfeit more than 25% of the units held by him as of March 1,
2018, the date of his amended and restated founding member agreement.
Cash Dividend Equivalents. All discretionary equity awards are entitled to the payment of current cash dividend equivalents. In accordance with the SEC’s
rules, the current cash dividend equivalents are not required to be reported in the Summary Compensation Table because the amounts of future cash
dividends are factored into the grant date fair value of the awards.
Minimum Retained Ownership Requirements. For units granted in 2014 and prior years (other than grants made under our Bonus Deferral Plan), while
employed by us and generally for one year following the termination of employment, our named executive officers (except as otherwise provided below) are
required to hold at least 25% of all vested equity received by such named executive officer; provided that with respect to vested equity received in connection
with the reorganization we effected prior to our initial public offering, such percentage is reduced to 12.5% upon a Tier I or Tier II qualifying retirement. For
equity granted in 2015 through 2018 (other than grants made under our Bonus Deferral Plan) our named executive officers (except as otherwise provided
below) are required to hold 25% of their vested equity until the earlier of (1) ten years after the applicable vesting date and (2) one year following termination
of employment. For equity awards granted in 2019 and onward (other than grants made under our Bonus Deferral Plan), our named executive officers (except
as otherwise provided below) are required to hold 25% of their vested equity for two years after the applicable vesting event. If the named executive officer’s
employment terminates prior to such time, however, such 25% of the vested equity must be held for two years after termination of employment. The
requirement that one continue to hold such minimum amounts of vested equity is subject to the qualification in Mr. Schwarzman’s case that in no event will
he be required to hold equity having a market value greater than $1.5 billion or hold equity following termination of employment. Each of our named
executive officers is in compliance with these minimum retained ownership requirements.
Transfer Restrictions. None of our named executive officers may transfer Blackstone Holdings Partnership Units other than pursuant to transactions or
programs approved by us.
This transfer restriction applies to sales and pledges of Blackstone Holdings Partnership Units, grants of options, rights or warrants to purchase
Blackstone Holdings Partnership Units or swaps or other arrangements that transfer to another, in whole or in part, any of the economic consequences of
ownership of the Blackstone Holdings Partnership Units other than as approved by us. We will generally approve pledges or transfers to personal planning
vehicles beneficially owned by the families of our pre-IPO owners and charitable gifts, provided that the pledgee, transferee or donee agrees to be subject to
the same transfer restrictions. Transfers to Blackstone are also exempt from the transfer restrictions.
Terms of Deferred Restricted Common Stock Units Granted Under the Bonus Deferral Plan
In 2007, we established our Bonus Deferral Plan for certain eligible employees in order to provide such eligible employees with a pre-tax deferred
incentive compensation opportunity and to enhance the alignment of interests between such eligible employees and Blackstone. The Bonus Deferral Plan is
an unfunded, nonqualified Bonus Deferral Plan which provides for the automatic, mandatory deferral of a portion of each participant’s annual cash bonus
payment.
At the end of each year, the Plan Administrator selects plan participants in its sole discretion and notifies such individuals that they have been selected to
participate in the Bonus Deferral Plan for such year. Participation is mandatory for those employees selected by the Plan Administrator to be participants. An
individual who is not so selected may not elect to participate in the Bonus Deferral Plan. The selection of participants is made on an annual basis; an
individual selected to participate in the Bonus Deferral Plan for a given year may
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not necessarily be selected to participate in a subsequent year. For 2024, all employees other than Mr. Schwarzman, who received no bonus in respect of
2024, were selected to participate in the Bonus Deferral Plan, with the deferred amount (if any) determined in accordance with the table described below or
as otherwise determined in the discretion of the Plan Administrator. For fiscal 2024, the Plan Administrator determined that 100% of the annual cash bonus
payment for each of Messrs. Gray, Chae and Sawhney would be deferred.
In respect of the deferred portion of his or her annual cash bonus payment, each participant receives deferral units which represent rights to receive in
the future a specified amount of common stock units under our 2007 Equity Incentive Plan, subject to vesting provisions described below. The amount of each
participant’s annual cash bonus payment deferred under the Bonus Deferral Plan is calculated pursuant to a deferral rate table using the participant’s total
annual incentive compensation, which generally includes such participant’s annual cash bonus payment and a portion of any incentive fees earned in
connection with our investment funds, and is subject to certain adjustments, including reductions for mandatory contributions to our investment funds. For
deferrals of annual cash bonus payments, the deferral percentage was calculated on the basis set forth in the following table (or such other table that may be
adopted by the Plan Administrator).
Portion of Annual Incentive
  
Marginal
Deferral Rate
Applicable to
Such Portion 
 
Effective
Deferral Rate for
Entire Annual
Bonus (a)
 
$0—100,000
  
 
0%  
 
0.0% 
$100,001—200,000
  
 
15%  
 
7.5% 
$200,001—500,000
  
 
20%  
 
15.0% 
$500,001—750,000
  
 
30%  
 
20.0% 
$750,001—1,250,000
  
 
40%  
 
28.0% 
$1,250,001—2,000,000
  
 
45%  
 
34.4% 
$2,000,001—3,000,000
  
 
50%  
 
39.6% 
$3,000,001—4,000,000
  
 
55%  
 
43.4% 
$4,000,001—5,000,000
  
 
60%  
 
46.8% 
$5,000,000 +
  
 
65%  
 
52.8% 
(a)
Effective deferral rates are shown for illustrative purposes only and are based on an annual cash payment equal to the maximum amount in the range
shown in the far left column (which is assumed to be $7,500,000 for the last range shown).
Mandatory Deferral Awards. Generally, deferral units are satisfied by delivery of shares of our common stock in equal annual installments over a three-
year deferral period. Delivery of shares of our common stock underlying vested deferral units is generally made during open trading window periods to
facilitate the participant’s liquidity to meet tax obligations. If the participant’s employment is terminated for cause, the participant’s undelivered deferral units
(vested and unvested) will be immediately forfeited. Upon a change in control or termination of the participant’s employment because of death, any
undelivered deferral units (vested and unvested) will become immediately deliverable. Unvested bonus deferral awards will be forfeited upon resignation, will
immediately vest and be delivered if the participant’s employment is terminated without cause or because of disability and, in connection with a Tier I or Tier
II qualifying retirement, will continue to vest and be delivered over the applicable deferral period, subject to forfeiture if the participant violates any
applicable provision of his or her employment agreement or engages in any competitive activity (as such term is defined in the Bonus Deferral Plan).
The 105,312, 28,797, 23,663 and 12,074 deferred restricted common stock granted to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, in
2022 for 2021 performance vested one-third on January 1, 2023, one-third on January 1, 2024 and one-third on January 1, 2025. The 176,874, 42,730, 34,307
and 57,250 deferred restricted common stock granted to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, in 2023 for 2022 performance vested
one-third on January 1, 2024, one-third on January 1, 2025, and will vest one-third on January 1, 2026. The 55,837, 15,564, 17,280 and 8,753 deferred
restricted common stock granted to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney, respectively, in 2024 for 2023 performance vested one-third on
January 1, 2025, and will vest one-third on
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January 1, 2026 and one-third on January 1, 2027. The 41,801, 33,604, 12,388 and 24,042 deferred restricted common stock granted to Mr. Gray, Mr. Chae,
Mr. Finley and Mr. Sawhney, respectively, in 2025 for 2024 performance will vest one-third on January 1, 2026, one-third on January 1, 2027 and one-third on
January 1, 2028.
Schwarzman Founding Member Agreement
Upon the consummation of our initial public offering, we entered into a founding member agreement with Mr. Schwarzman. On March 1, 2018, we
amended and restated this agreement, with the approval of a committee of independent directors advised by independent counsel, to address certain
retirement benefits to be received by Mr. Schwarzman. Mr. Schwarzman’s agreement provides that he will remain our Chairman and Chief Executive Officer
(or, as determined by Mr. Schwarzman, our Chairman or Executive Chairman) while continuing service with us and requires him to give us six months’ prior
written notice of intent to terminate service with us. The agreement provides that following retirement (or, if applicable, the date on which he ceases active
service as a result of his permanent disability), Mr. Schwarzman will be provided with specified retirement benefits for the remainder of his life, including that
he be permitted to retain his then current office and continue to be provided with administrative support, access to office services and a car and driver.
Mr. Schwarzman will also continue to receive health benefits following his retirement until his death, subject to his continuing payment of the related health
insurance premiums consistent with current policies. Finally, Mr. Schwarzman will also receive reimbursement for travel costs (including travel on personal
aircraft) for Blackstone related business functions, annual home and personal security benefits, reasonable access to our Chief Legal Officer, reasonable access
to certain events, legal representation for Blackstone related matters, and, subject to his continuing payment of costs and expenses related thereto, he will
continue to be provided with offices, technology and support for his family office team at levels consistent with current practice.
The agreement provides that, following Mr. Schwarzman’s termination of service, he or related entities will remain entitled to receive awards of carried
interest at reduced levels until the later of February 14, 2027 or the date of Mr. Schwarzman’s death. The profit sharing percentage for any carried interest
awarded in new funds launched after Mr. Schwarzman’s termination of service shall generally be set at 50% of the profit sharing percentage Mr. Schwarzman
held in the most recent corresponding predecessor fund prior to his termination of employment or, in the case of new funds without a corresponding
predecessor fund prior to Mr. Schwarzman’s termination of service, a profit sharing percentage set at 50% of the median of the aggregate profit sharing
percentages held by Mr. Schwarzman at the time of his termination of service.
While currently Mr. Schwarzman is entitled to invest in or alongside our investment funds without being subject to management fees or carried interest,
this has been extended to continue until ten years following the date of Mr. Schwarzman’s death as to Mr. Schwarzman, his estate and related entities.
On July 1, 2019, in connection with Blackstone’s conversion from a limited partnership to a corporation and with the approval of the conflicts committee
advised by independent counsel, we amended this agreement to address the ongoing compensation to be received by Mr. Schwarzman. Pursuant to the
amended agreement, Mr. Schwarzman is entitled to distributions and benefits in amounts and at levels that are consistent with current practices. In addition,
the amended agreement provides that, prior to Mr. Schwarzman’s termination of service, the profit sharing percentage for any carried interest in new funds in
which there is a corresponding predecessor fund shall be set at the same profit sharing percentage he or related entities held in the most recent such
predecessor fund and, in the case where there is no such predecessor fund, the profit sharing percentage shall be set at the median profit sharing percentage
owned by him or related entities across all funds existing at the time in question. In connection with the amended agreement, Mr. Schwarzman informed the
former conflicts committee of our board of directors that he has no current plan to retire.
Senior Managing Director Agreements
We have entered into substantially similar senior managing director agreements with each of our named executive officers and other senior managing
directors, other than our founder. The agreements generally provide that each senior managing director will devote substantially all of his or her business
time, skill, energies and attention to us in a diligent manner. Each senior managing director will be
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paid distributions and receive benefits in amounts determined by Blackstone from time to time in its sole discretion. The agreements require us to provide the
senior managing director with 90 days’ prior written notice prior to terminating his or her service with us (other than a termination for cause). Additionally,
the agreements with our named executive officers require each senior managing director to give us 90 days’ prior written notice of intent to terminate service
with us and include terms under which the senior managing director may be placed on a 90-day period of “garden leave” following the senior managing
director’s termination of service (as further described under the caption “— Non-Competition and Non-Solicitation Agreements” below).
Outstanding Equity Awards at 2024 Fiscal Year End
The following table provides information regarding outstanding unvested equity awards made to our named executive officers as of December 31, 2024.
 
  
Stock Awards (a)
 
Name
  
Number of Shares
or Units of Stock
That Have Not
Vested
   
Market Value of
Shares or Units of
Stock That Have
Not Vested (b)  
Stephen A. Schwarzman
  
 
—   
$
— 
Jonathan D. Gray
  
 
1,561,967   
$
268,997,917 
Michael S. Chae (c)
  
 
468,845   
$
80,583,873 
John G. Finley (c)
  
 
372,811   
$
64,186,295 
Vikrant Sawhney
  
 
437,999   
$
75,337,790 
(a)
The references to “stock” or “shares” in this table refer to unvested deferred restricted common stock units (including deferred restricted common stock
units granted under the Bonus Deferral Plan to Messrs. Gray, Chae, Finley and Sawhney in 2025 in respect of 2024 performance). The vesting terms of
these awards are described under the caption “Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024” above.
(b) The dollar amounts shown under this column were calculated by multiplying the number of unvested deferred restricted common stock units held by the
named executive officer by the closing market price of $172.42 per share of our common stock on December 31, 2024, the last trading day of 2024, other
than the deferred restricted common stock units granted in 2025 in respect of 2024 performance, which are valued as of the date of their grant.
(c)
Amounts reported for Messrs. Chae and Finley include (1) 190,796 and 156,192 deferred restricted common stock units, respectively, which reflects 50%
of the unvested deferred restricted common stock units that have been granted to Messrs. Chae and Finley as discretionary equity awards and (2) 87,253
and 60,427 deferred restricted common stock units, respectively, granted to Messrs. Chae and Finley pursuant to the Bonus Deferral Plan, which are
considered vested and undelivered for financial statement reporting purposes in accordance with GAAP pertaining to equity-based compensation due to
the Tier I retirement eligibility of Messrs. Chae and Finley as of December 31, 2024. Upon retirement the deferred restricted common stock units are
scheduled to be delivered in equal annual installments over the three-year deferral period, in each case subject to forfeiture if the named executive
officer violates any applicable provision of his employment agreement or engages in any competitive activity (as such term is defined in the applicable
award agreement or the Bonus Deferral Plan, as applicable).
Option Exercises and Stock Vested in 2024
The following table provides information regarding the number of outstanding initially unvested equity awards made to our named executive officers that
vested during 2024:
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Stock Awards (a)
 
Name
  
Number of Shares
Acquired on
Vesting
   
Value Realized
on Vesting (b)  
Stephen A. Schwarzman
  
 
—   
$
— 
Jonathan D. Gray
  
 
880,149   
$ 108,671,755 
Michael S. Chae
  
 
335,080   
$
41,317,524 
John G. Finley
  
 
124,493   
$
15,496,893 
Vikrant Sawhney
  
 
136,312   
$
16,876,189 
(a)
The references to “stock” or “shares” in this table refer to deferred restricted Blackstone Holdings Partnership Units and our deferred restricted common
stock units.
(b) The value realized on vesting is based on the closing market prices of our common stock on the day of vesting.
Potential Payments Upon Termination of Employment or Change in Control
Upon a change of control event where any person, other than Blackstone Group Management L.L.C. or a person approved by Blackstone Group
Management L.L.C., becomes the Series II Preferred Stockholder or a termination of employment because of death or disability, any unvested deferred
restricted Blackstone Holdings Partnership Units or unvested deferred restricted common stock units held by any of our named executive officers will
automatically be deemed vested as of immediately prior to such occurrence of such change of control or such termination of employment. Had such a change
of control or such a termination of employment occurred on December 31, 2024, the last business day of 2024, each of our continuing named executive
officers would have vested in the following numbers of deferred restricted common stock units, having the following values based on our closing market price
of $172.42 per share of common stock on December 31, 2024, other than the deferred restricted common stock units granted to Mr. Gray, Mr. Chae,
Mr. Finley and Mr. Sawhney in 2025 in respect of 2024 performance, which are valued as of the date of their grant: Mr. Schwarzman had no outstanding
unvested equity at December 31, 2024; Mr. Gray —1,561,967 deferred restricted common stock units with an aggregate value of $268,997,917, Mr. Chae —
468,845 deferred restricted common stock units with an aggregate value of $80,583,873, Mr. Finley — 372,811 deferred restricted common stock units with
an aggregate value of $64,186,295, and Mr. Sawhney —437,999 deferred restricted common stock units with an aggregate value of $75,337,790. In addition,
the Bonus Deferral Plan provides that upon a change in control or termination of the participant’s employment because of death, any fully vested but
undelivered deferred restricted common stock units will become immediately deliverable.
In connection with a named executive officer’s termination of employment due to a Tier I qualifying retirement, 50% of their unvested discretionary
equity awards will continue to vest and be delivered over the vesting period and any unvested deferred restricted common stock units granted under the
Bonus Deferral Plan will vest and be delivered in equal annual installments over the three year deferral period, in each case subject to forfeiture if the named
executive officer violates any applicable provision of his employment agreement or engages in any competitive activity (as such term is defined in the
applicable award agreement or the Bonus Deferral Plan, as applicable). As of December 31, 2024, Messrs. Chae and Finley were Tier I retirement eligible. If
Mr. Chae or Mr. Finley had retired on December 31, 2024, 190,796 and 156,192 of their deferred restricted common stock units granted as discretionary
awards, respectively, would continue to vest and be delivered over the vesting period and 87,253 and 60,427 of their deferred restricted common stock units
granted under the Bonus Deferral Plan, respectively, would vest and be delivered over the three year deferral period, in each case subject to forfeiture if the
named executive officer violates any applicable provision of his employment agreement or engages in any competitive activity (as such term is defined in the
applicable award agreement or the Bonus Deferral Plan, as applicable).
On February 26, 2025, the Compensation Committee approved an Omnibus Amendment to the Company’s equity award agreements covering the
Company’s outstanding discretionary equity awards, effective as of April 1, 2025 (the “Tier II Retirement Amendment”). The Tier II Retirement Amendment
provides that participants who satisfy certain Tier II retirement eligibility criteria will
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be eligible to vest in 100% of their unvested discretionary equity awards over the applicable vesting period, subject to forfeiture if the named executive officer
violates any applicable provision of his employment agreement or engages in any competitive activity. If such amendment had been in effect on December 31,
2024, Mr. Finley would have satisfied such Tier II retirement eligibility criteria. Accordingly, upon retirement on such date, Mr. Finley would have been entitled
to (i) continued vesting and delivery of 312,384 of his deferred restricted common stock units granted as discretionary awards and (ii) vesting and delivery
over the three year deferral period of 60,427 of his deferred restricted common stock units granted under the Bonus Deferral Plan, in each case subject to
forfeiture if he violates any applicable provision of his employment agreement or engages in any competitive activity.
Upon a termination of Mr. Gray’s, Mr. Chae’s, Mr. Finley’s or Mr. Sawhney’s employment without cause, the deferred restricted common stock units
granted to each of them under the Bonus Deferral Plan in respect of 2024, 2023 and 2022, as applicable, will become fully vested. Had such a termination of
employment occurred on December 31, 2024, the last business day of 2024, each of Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney would have vested in the
following numbers of deferred restricted common stock units, respectively, having the following values based on our closing market price of $172.42 per share
of common stock on December 31, 2024, other than the deferred restricted common stock units granted to Mr. Gray, Mr. Chae, Mr. Finley and Mr. Sawhney in
2025 in respect of 2024 performance, which are valued as of the date of their grant: Mr. Gray — 250,658 deferred restricted common stock units with an
aggregate value of $42,902,020, Mr. Chae — 87,253 deferred restricted common stock units with an aggregate value of $14,789,780, Mr. Finley — 60,427
deferred restricted common stock units with an aggregate value of $10,325,046 and Mr. Sawhney — 74,986 deferred restricted common stock units with an
aggregate value of $12,747,088.
Upon a termination of Mr. Gray’s employment without cause, the deferred restricted common stock units granted to him on April 1, 2020, April 1, 2021,
April 1, 2022, April 1, 2023 and April 1, 2024 will become fully vested. Had such a termination occurred on December 31, 2024, the last business day of 2024,
Mr. Gray would have vested in 1,311,309 deferred restricted common stock units with a value of $226,095,898 based on our closing market price of $172.42
per share of our common stock on December 31, 2024.
In addition, except as described below, unvested carried interest in our carry funds is generally forfeited upon termination of employment. Upon the
death or disability of any named executive officer who participates in the carried interest of our carry funds, the named executive officer will be deemed
100% vested in any unvested portion of carried interest in our carry funds. Furthermore, any named executive officer that is Tier I or Tier II retirement eligible
will automatically vest in 50% of their otherwise unvested carried interest allocation upon retirement. In addition, pursuant to Mr. Schwarzman’s founding
member agreement described above under “Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Schwarzman
Founding Member Agreement,” following retirement and for the remainder of his life, Mr. Schwarzman will be provided with specified retirement benefits,
including a car and driver, retention of his current office, administrative support and annual home and personal security benefits. The value of such retirement
benefits is estimated at approximately $13.0 million per year based on 2024 costs. We have not assigned a value to the entitlements of Mr. Schwarzman and
his estate and related entities to receive carried interest in new funds or to invest in our investment funds fee free following his termination of service as such
value cannot be reasonably estimated. We anticipate that any incremental cost to us with respect to the other personal benefits to which Mr. Schwarzman is
entitled following his retirement will be de minimis.
Non-Competition and Non-Solicitation Agreements
Upon the consummation of our initial public offering, we entered into a non-competition and non-solicitation agreement with our founder, our other
senior managing directors, and most of our other professional employees and specified senior administrative personnel. Senior managing directors and other
personnel who joined the firm after our initial public offering have also executed similar restrictive covenant agreements, with the agreements covering
non-senior managing directors being subject to certain variations from the terms described below based on their respective positions and local law
limitations. The following are descriptions of the material terms of the agreements covering senior managing directors. With the exception of the differences
noted in the description below, the terms of each non-competition and non-solicitation agreement covering senior managing directors are generally in
relevant part similar.
Full-Time Commitment. Each senior managing director agrees to devote substantially all of their business time, skill, energies and attention to
responsibilities at Blackstone in a diligent manner. Mr. Schwarzman has agreed that our business will be his principal business pursuit and that he will devote
such time and attention to the business of the firm as may be reasonably requested by us.
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Confidentiality. Each senior managing director is required, whether during or after employment with us, to protect and use “confidential information” in
accordance with strict restrictions placed by us on its use and disclosure. Every employee is subject to similar strict confidentiality obligations imposed by our
Code of Conduct applicable to all Blackstone personnel.
Notice of Termination. Each senior managing director is required to give us prior written notice of the intention to leave our employ — six months in the
case of Mr. Schwarzman and 90 days for all of our other senior managing directors. In certain jurisdictions, the notice period as described in the preceding
sentence is lengthened to include the potential garden leave period described below, in which case such notice and garden leave periods run concurrently.
Garden Leave. Generally, upon voluntary departure from the firm, Blackstone has the right, but not the obligation, to place the senior managing director
on a 90-day period of “garden leave.” During this period the senior managing director will continue to receive base compensation and benefits but is
prohibited from commencing employment with a new employer until the garden leave period has expired. The period of garden leave for each senior
managing director will run concurrently with the non-competition Restricted Period that applies as described below and, as noted above, may also run
concurrently with the notice period in certain jurisdictions. Mr. Schwarzman is subject to non-competition covenants but not garden leave requirements.
Non-Competition. During the term of employment of each senior managing director, and during the Restricted Period (as such term is defined below)
immediately thereafter, the senior managing director will not, directly or indirectly:
•
 
engage in any business activity in which we operate, including any competitive business,
•
 
render any services to any competitive business, or
•
 
acquire a financial interest in or become actively involved with any competitive business (other than as a passive investor holding minimal
percentages of the stock of public companies).
“Competitive business” means any business that competes with our business, including any businesses that we are actively considering conducting at the
time of the senior managing director’s termination of employment, so long as the senior managing director knows or reasonably should have known about
such plans, in any geographical or market area where we or our affiliates conduct business or provide our products or services.
Non-Solicitation. During the term of employment of each senior managing director, and during the Restricted Period immediately thereafter, the senior
managing director will not, directly or indirectly, in any manner solicit any of our employees to leave their employment with us or hire any such employee who
was employed by us as of the date of the senior managing director’s termination or who left employment with us within one year prior to or after the date of
the senior managing director’s termination. Additionally, each senior managing director may not solicit or encourage to cease to work with us any consultant
or senior advisers that the senior managing director knows or should know is under contract with us.
In addition, during the term of employment of each senior managing director, and during the Restricted Period immediately thereafter, the senior
managing director will not, directly or indirectly, in any manner solicit the business of any client or prospective client of ours with whom the senior managing
director, employees reporting to the senior managing director, or anyone whom the senior managing director had direct or indirect responsibility over had
personal contact or dealings on our behalf during the three-year period immediately preceding the senior managing director’s termination. Senior managing
directors who are employed in our asset management businesses are subject to a similar non-solicitation covenant with respect to investors and prospective
investors in our investment funds.
Non-Interference and Non-Disparagement. During the term of employment of each senior managing director, and during the Restricted Period
immediately thereafter, the senior managing director may not interfere with business relationships between us and any
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of our clients, customers, suppliers or partners. Each senior managing director is also prohibited from disparaging us in any way. However, such interference
and disparagement prohibitions are subject to certain limitations as required by law.
Restricted Period. For purposes of the foregoing covenants, the “Restricted Period” will generally be defined as follows:
Covenant
  
Stephen A. Schwarzman
  
Other Senior Managing Directors
Non-competition
  
Two years after termination of employment.
  
One year after termination of employment (or
90 days in the event of a termination without
“cause”).
Non-solicitation of Blackstone employees
   Two years after termination of employment.
   Two years after termination of employment.
Non-solicitation of Blackstone clients or investors
   Two years after termination of employment.
   One year after termination of employment.
Non-interference with business relationships
   Two years after termination of employment.
   One year after termination of employment.
Intellectual Property. Each senior managing director is subject to customary intellectual property covenants with respect to works created, invented,
designed or developed by such senior managing director that are relevant to or implicated by employment with us.
Specific Performance. In the case of any breach of the confidentiality, non-competition, non-solicitation, non-interference, non-disparagement or
intellectual property provisions by a senior managing director, the breaching individual agrees that we will be entitled to seek equitable relief in the form of
specific performance, restraining orders, injunctions or other equitable remedies (including forfeiture of the breaching individual’s vested and unvested
interests in Blackstone).
Pay Ratio Disclosure
As required by Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and Item 402(u) of Regulation S-K, we are providing
the following information regarding the ratio of the annual total compensation for our principal executive officer to the median of the annual total
compensation of all our employees (other than our principal executive officer) (the “CEO Pay Ratio”). Our CEO Pay Ratio is a reasonable estimate calculated in
a manner consistent with Item 402(u). However, due to the flexibility afforded by Item 402(u) in calculating the CEO Pay Ratio, our CEO Pay Ratio may not be
comparable to the CEO pay ratios presented by other companies. As of December 31, 2024, we employed approximately 4,895 people, including our 254
senior managing directors. We identified our median employee using our global employee population as of December 31, 2024. To identify our median
employee, we used annual base salary and bonuses earned in 2024. We believe this consistently applied compensation measure reasonably reflects annual
compensation across our employee base. Application of our consistently applied compensation measure identified a group of employees with the same total
annual base salary and cash bonus earned in 2024. We identified our median employee from among these employees by reviewing the components of their
annual total compensation and selecting the employee whose title, tenure and compensation characteristics most accurately reflected the compensation of a
typical employee. After identifying our median employee, we calculated the median employee’s annual total compensation in accordance with the
requirements of the Summary Compensation Table. For 2024, the annual total compensation for Mr. Schwarzman, our principal executive officer, was
$84,027,074 and our median employee’s annual total compensation was $265,000. Accordingly, annual total compensation of our principal executive officer
was approximately three hundred seventeen times the annual total compensation of our median employee.
Director Compensation in 2024
No additional remuneration is paid to our employees for service on our board of directors. In 2024, each of our non-employee directors received an
annual cash retainer of $150,000 and a grant of deferred restricted common stock units equivalent in value to $210,000, with a grant date fair value
determined as described in footnote (a) to the first table below. An additional $40,000 annual retainer was paid to the Chairman of the Audit Committee
during 2024, $30,000 of which was paid in cash and the remainder of which was paid in the form of deferred restricted common stock units equivalent in
value to $10,000 and with the same vesting terms as the other deferred restricted common stock units. The amounts of our non-employee directors’
compensation were approved by our board of directors upon the recommendation of our founder following his review of directors’ compensation paid by
comparable companies.
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The following table provides the director compensation for our directors for 2024:
Name
  
Fees Earned or
Paid in Cash    
Stock Awards
(a) (b)
   
Total
 
Kelly A. Ayotte (c)
  
$
130,952   
$ 207,865   
$338,818 
Joseph P. Baratta (d)
  
$
—   
$
—   
$
— 
James W. Breyer
  
$
150,000   
$ 211,568   
$361,568 
Reginald J. Brown
  
$
150,000   
$ 211,968   
$361,968 
Rochelle B. Lazarus
  
$
150,000   
$ 210,542   
$360,542 
The Right Honorable Brian Mulroney(e)
  
$
25,000   
$
—   
$ 25,000 
William G. Parrett
  
$
180,000   
$ 220,405   
$400,405 
Ruth Porat
  
$
150,000   
$ 210,519   
$360,519 
(a)
The references to “stock” in this table refer to our deferred restricted common stock units. Amounts for 2024 represent the grant date fair value of stock
awards granted in the year, computed in accordance with GAAP, pertaining to equity-based compensation. The assumptions used in determining the
grant date fair value are set forth in Note 16. “Earnings Per Share and Stockholders’ Equity” in the “Notes to Consolidated Financial Statements” in “Part
II. Item 8. Financial Statements and Supplementary Data.” These deferred restricted common stock units vest, and the underlying shares of common
stock will be delivered, on the first anniversary of the date of the grant, subject to the director’s continued service on our board of directors.
(b) Each of our non-employee directors was granted deferred restricted common stock units upon appointment as a director. In 2024, in connection with the
anniversary of his or her initial grant, each of the following directors was granted deferred restricted common stock units: Ms. Ayotte — 1,702 units;
Mr. Breyer — 1,636 units; Mr. Brown — 1,402 units; Ms. Lazarus — 1,736 units; Mr. Parrett — 1,242 units; and Ms. Porat — 1,692 units.
The following table provides information regarding outstanding unvested equity awards made to our directors as of December 31, 2024:
 
  
Stock Awards (1)
 
Name
  
Number of Shares
or Units of Stock
That Have Not
Vested
   
Market Value of
Shares or Units of
Stock That Have
Not Vested (2)  
James W. Breyer
  
 
1,636   
$
282,079 
Reginald J. Brown
  
 
1,402   
$
241,733 
Rochelle B. Lazarus
  
 
1,736   
$
299,321 
William G. Parrett
  
 
1,242   
$
214,146 
Ruth Porat
  
 
1,692   
$
291,735 
 
(1)
The references to “stock” or “shares” in this table refer to our deferred restricted common stock units.
(2)
The dollar amounts shown in this column were calculated by multiplying the number of unvested deferred restricted common stock units
held by the director by the closing market price of $172.42 per share of our common stock on December 31, 2024, the last trading day of
2024.
(c)
Following her election as Governor of New Hampshire, Ms. Ayotte resigned from the Board effective November 14, 2024. Ms. Ayotte’s unvested equity
awards were forfeited upon her resignation, pursuant to the terms thereof.
(d) Mr. Baratta is an employee and no additional remuneration is paid to him for his service as a director. Mr. Baratta’s employee compensation is discussed
in “—Item 13. Certain Relationships and Related Transactions, and Director Independence.”
(e)
Mr. Mulroney served as a director of Blackstone until his passing on February 29, 2024. Mr. Mulroney’s unvested equity awards vested immediately upon
his passing, pursuant to the terms thereof.
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Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table sets forth information regarding the beneficial ownership of our common stock and Blackstone Holdings Partnership Units as of
February 21, 2025 by:
•   each person known to us to beneficially own 5% of any class of the outstanding voting securities of Blackstone Inc.,
•   each member of our board of directors,
•   each of our named executive officers, and
•   all our current directors and executive officers as a group.
The amounts and percentage of common stock and Blackstone Holdings Partnership Units beneficially owned are reported on the basis of regulations of
the SEC governing the determination of beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a “beneficial owner” of a
security if that person has or shares “voting power,” which includes the power to vote or to direct the voting of such security, or “investment power,” which
includes the power to dispose of or to direct the disposition of such security. A person is also deemed to be a beneficial owner of any securities of which that
person has a right to acquire beneficial ownership within 60 days of February 21, 2025. Under these rules, more than one person may be deemed a beneficial
owner of the same securities and a person may be deemed a beneficial owner of securities as to which he has no economic interest. Except as indicated by
footnote, the persons named in the table below have sole voting and investment power with respect to all securities shown as beneficially owned by them,
subject to community property laws where applicable. Unless otherwise included, for purposes of this table, the principal business address for each such
person is c/o Blackstone Inc., 345 Park Avenue, New York, New York 10154.
 
  
Shares of Common Stock
Beneficially Owned
 
Blackstone Holdings
Partnership Units
Beneficially Owned (a)
Name of Beneficial Owner
  
Number
  
% of
Class  
Number
  
% of
Class
5% Stockholders
  
  
 
  
The Vanguard Group, Inc. (b)
     62,972,154     8.6%    
—     
— 
BlackRock, Inc. (c)
     45,986,530     6.3%    
—     
— 
Directors and Named Executive Officers (d)(e)
  
  
 
  
Stephen A. Schwarzman (f)(g)
    
—      —     231,924,793     51.8% 
Jonathan D. Gray (g)
     1,673,626     
*      41,293,901      9.2% 
Michael S. Chae (g)
    
433,868     
*     
6,500,556      1.5% 
John G. Finley (g)
    
99,320     
*     
434,776     
* 
Vikrant Sawhney (g)
    
341,936     
*     
639,771     
* 
Joseph P. Baratta
    
373,962     
*     
6,614,245      1.5% 
Kelly Ayotte
    
16,514     
*     
—     
— 
James W. Breyer
    
38,905     
*     
—     
— 
Reginald J. Brown
    
16,949     
*     
—     
— 
Brian Mulroney
    
179,770     
*     
—     
— 
Rochelle B. Lazarus (g)
    
57,626     
*     
—     
— 
William G. Parrett (g)
    
91,781     
*     
—     
— 
Ruth Porat
    
43,712     
*     
—     
— 
All current executive officers and directors as a group (13 persons)
     3,367,969     
*     287,408,042     64.2% 
*
Less than one percent
(a)
Subject to certain requirements and restrictions, the partnership units of Blackstone Holdings are exchangeable for shares of our common stock on a
one-for-one basis. A Blackstone Holdings limited partner must exchange one partnership unit in each of the five Blackstone Holdings Partnerships to
effect
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an exchange for a share of our common stock. See “—Item 13. Certain Relationships and Related Transactions, and Director Independence — Exchange
Agreement.” Beneficial ownership of Blackstone Holdings Partnership Units reflected in this table has not been also reflected as beneficial ownership of
our shares of common stock for which such units may be exchanged.
(b) Reflects shares of common stock beneficially owned by The Vanguard Group, Inc. and its subsidiaries based on the amended Schedule 13G filed by The
Vanguard Group, Inc. on February 13, 2024. The address of The Vanguard Group, Inc. is 100 Vanguard Boulevard, Malvern, Pennsylvania 19355.
(c)
Reflects shares of common stock beneficially owned by BlackRock, Inc. and its subsidiaries based on the Schedule 13G filed by BlackRock, Inc. on
January 29, 2024. The address of BlackRock, Inc. is 50 Hudson Yards New York, NY 10001.
(d) The shares of common stock beneficially owned by the directors and executive officers reflected above do not include the following number of securities
that will be delivered to the respective individual more than 60 days after February 28, 2025: Mr. Gray – 1,449,292 deferred restricted common stock;
Mr. Chae – 439,815 deferred restricted common stock; Mr. Finley – 347,728 deferred restricted common stock; Mr. Baratta – 467,588 deferred restricted
common stock; Mr. Sawhney – 411,973 deferred restricted common stock; Mr. Parrett – 1,242 deferred restricted common stock; Ms. Lazarus –
1,736 deferred restricted common stock; Mr. Breyer – 1,636 deferred restricted common stock; Ms. Porat – 1,692 deferred restricted common stock; and
Mr. Brown – 1,402 deferred restricted common stock.
(e)
The Blackstone Holdings Partnership Units shown in the table above include the following number of vested units being held back under our minimum
retained ownership requirements: Mr. Schwarzman – 9,472,688 Blackstone Holdings Partnership Units; Mr. Gray – 11,619,691 Blackstone Holdings
Partnership Units and 271,816 deferred restricted common units; Mr. Chae – 3,437,080 Blackstone Holdings Partnership Units and 71,230 deferred
restricted common units; and Mr. Finley – 197,329 Blackstone Holdings Partnership Units and 51,797 deferred restricted common units; Mr. Baratta –
4,045,306 Blackstone Holdings Partnership Units and 373,962 deferred restricted common units; and Mr. Sawhney – 220,385 Blackstone Holdings
Partnership Units and 151,664 deferred restricted common units.
(f)
On those few matters that may be submitted for a vote of the sole holder of the Series I preferred stock, Blackstone Partners L.L.C., an entity owned by
senior managing directors of Blackstone and controlled by Mr. Schwarzman, is entitled to an aggregate number of votes on any matter that may be
submitted for a vote of our common stock that is equal to the aggregate number of vested and unvested Blackstone Holdings Partnership Units held by
the limited partners of Blackstone Holdings on the relevant record date and entitles it to participate in the vote on the same basis as our common stock.
Our senior managing directors have agreed in the limited liability company agreement of Blackstone Partners L.L.C. that our founder, Mr. Schwarzman,
will have the power to determine how the Series I preferred stock held by Blackstone Partners L.L.C. will be voted. Following the withdrawal, death or
disability of Mr. Schwarzman (and any successor founder), this power will revert to the members of Blackstone Partners L.L.C. holding a majority in
interest in that entity. The limited liability company agreement of Blackstone Partners L.L.C. provides that at such time as Mr. Schwarzman should cease
to be a founding member, Jonathan D. Gray will thereupon succeed Mr. Schwarzman as the sole founding member of Blackstone Partners L.L.C. If
Blackstone Partners L.L.C. directs us to do so, we will issue shares of Series I preferred stock to each of the limited partners of Blackstone Holdings,
whereupon each holder of Series I preferred stock will be entitled to a number of votes that is equal to the number of vested and unvested Blackstone
Holdings Partnership Units held by such Series I preferred stockholder on the relevant record date.
(g)
The Blackstone Holdings Partnership Units shown in the table above for such named executive officers and directors include: (a) the following units held
for the benefit of family members with respect to which the named executive officer or director, as applicable, disclaims beneficial ownership:
Mr. Schwarzman – 3,686,266 units held in various trusts for which Mr. Schwarzman is the investment trustee, Mr. Gray – 5,204,356 units held in a trust
for which Mr. Gray is the investment trustee, Mr. Chae – 1,150,070 units held in a trust for which Mr. Chae is the investment trustee, Mr. Finley – 80,964
units held in a trust for which Mr. Finley is the investment trustee, Mr. Baratta – 142,237 units held in a trust for which Mr. Baratta is the investment
trustee, and Mr. Sawhney 104,000 units held in a trust for which Mr. Sawhney is the investment trustee (b) the following units held in grantor retained
annuity trusts for which the named executive officer or director, as applicable, is the investment trustee: Mr. Gray – 14,359,231 units, and (c) the
following units held by a separate legal entity and for which the named executive officer maintains voting and investment control: Mr. Schwarzman –
1,438,529 units, Mr. Finley – 72,000 units, Mr. Baratta – 4,248,950 units,
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and Mr. Sawhney – 56,000 units. Mr. Schwarzman also directly, or through a corporation for which he is the controlling shareholder, beneficially owns an
additional 364,278 partnership units in each of Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. In addition, with
respect to Mr. Schwarzman, the above table excludes partnership units of Blackstone Holdings held by his children or in trusts for the benefit of his family
as to which he has no voting or investment control. The Blackstone common stock shown in the table above for each named executive officer and
director include: (a) the following shares held for the benefit of family members with respect to which the named executive officer or director, as
applicable, disclaims beneficial ownership: Mr. Finley – 32,523 shares held in a family limited liability company and 4,000 shares held in a trust for the
benefit of his spouse of which he is a trustee, and Ms. Lazarus – 2,950 shares held in a trust for the benefit of family members over which she shares
investment control (b) Mr. Finley – 11,000 shares held in a trust for the benefit of Mr. Finley and his family of which he is a trustee; and (c) 32,523 and
10,000 shares that have been pledged by Messrs. Finley and Parrett, respectively, to a third party to secure payment for a loan.
Securities Authorized for Issuance under Equity Compensation Plans
The table set forth below provides information concerning the awards that may be issued under the 2007 Equity Incentive Plan as of December 31, 2024:
 
  
Number of
Securities to be
Issued Upon
Exercise of
Outstanding
Options,
Warrants and
Rights (a)
   
Weighted-
Average
Exercise Price of
Outstanding
Options,
Warrants and
Rights
   
Number of
Securities
Remaining
Available for
Future Issuance
Under Equity
Compensation
Plans (excluding
securities
reflected in
column (a)) (b)  
Equity Compensation Plans Approved by Security Holders  
  54,575,634   
 
—   
 161,555,099 
Equity Compensation Plans Not Approved by Security
Holders
  
 
—   
 
—   
 
— 
  
 
 
 
  
 
 
 
  
 
 
 
  
  54,575,634   
 
—   
 161,555,099 
  
 
 
 
  
 
 
 
  
 
 
 
(a)
Reflects the outstanding number of our deferred restricted common stock units and deferred restricted Blackstone Holdings Partnership Units granted
under the 2007 Equity Incentive Plan as of December 31, 2024.
(b) The aggregate number of our common stock and Blackstone Holdings Partnership Units covered by the 2007 Equity Incentive Plan is increased on the
first day of each fiscal year during its term by a number of shares of common stock equal to the positive difference, if any, of (a) 15% of the aggregate
number of shares of our common stock and Blackstone Holdings Partnership Units outstanding on the last day of the immediately preceding fiscal year
(excluding Blackstone Holdings Partnership Units held by Blackstone Inc. or its wholly owned subsidiaries) minus (b) the aggregate number of shares of
our common stock and Blackstone Holdings Partnership Units covered by the 2007 Equity Incentive Plan as of such date (unless the administrator of the
2007 Equity Incentive Plan should decide to increase the number of shares of our common stock and Blackstone Holdings Partnership Units covered by
the plan by a lesser amount). As of January 1, 2025, pursuant to this formula, 174,967,230 shares of common stock, which is equal to 0.15 times the
number of shares of our common stock and Blackstone Holdings Partnership Units outstanding on December 31, 2024, were available for issuance under
the 2007 Equity Incentive Plan. We have filed a registration statement and intend to file additional registration statements on Form S-8 under the
Securities Act to register shares of common stock covered by the 2007 Equity Incentive Plan (including pursuant to automatic annual increases). Any such
Form S-8 registration statement will automatically become effective upon filing. Accordingly, shares of common stock registered under such registration
statement will be available for sale in the open market.
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Item 13. Certain Relationships and Related Transactions, and Director Independence
Tax Receivable Agreements
We used a portion of the proceeds from the IPO and the sale of non-voting common units to Beijing Wonderful Investments to purchase interests in the
predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units (other than Blackstone Inc.’s wholly
owned subsidiaries), subject to the vesting and minimum retained ownership requirements and transfer restrictions set forth in the partnership agreements
of the Blackstone Holdings partnerships, may up to four times each year (subject to the terms of the exchange agreement) exchange their Blackstone Holdings
Partnership Units for shares of our common stock on a one-for-one basis. A Blackstone Holdings limited partner must exchange one partnership unit in each
of the Blackstone Holdings partnerships to effect an exchange for a share of common stock. Blackstone Holdings I L.P. and Blackstone Holdings II L.P. have
made an election under Section 754 of the Internal Revenue Code effective for each taxable year in which an exchange of partnership units for a share of
common stock occurs, which may result in an adjustment to the tax basis of the assets of such Blackstone Holdings Partnerships at the time of an exchange of
partnership units. Other Blackstone Holdings Partnerships and certain subsidiary partnerships are expected to make such elections for the 2024 and
subsequent taxable years with the filing of their federal income tax returns for such tax years. The purchase and subsequent exchanges of Blackstone Holdings
Partnership Units are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings that otherwise would not
have been available. These increases in tax basis may increase (for tax purposes) depreciation and amortization and therefore reduce the amount of tax that
we would otherwise be required to pay in the future. We have entered into a tax receivable agreement with holders of Blackstone Holdings Partnership Units
that provides for the payment by us to such holders of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that we actually
realize (or are deemed to realize in the case of an early termination payment by the corporate taxpayers or a change in control, as discussed below) as a result
of these increases in tax basis and of certain other tax benefits related to our entering into the tax receivable agreement, including tax benefits attributable to
payments under the tax receivable agreement. This payment obligation is an obligation of us (and certain of our subsidiaries that are treated as corporations
for U.S. federal income tax purposes which we refer to as “the corporate taxpayers”) and not of Blackstone Holdings. The corporate taxpayers expect to
benefit from the remaining 15% of cash savings, if any, in income tax that they realize. For purposes of the tax receivable agreement, cash savings in income
tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayer would
have been required to pay had there been no increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges
and had the corporate taxpayers not entered into the tax receivable agreement. The term of the tax receivable agreement commenced upon consummation
of our IPO and will continue until all such tax benefits have been utilized or expired, unless the corporate taxpayers exercise their right to terminate the tax
receivable agreement for an amount based on the agreed payments remaining to be made under the agreement.
Assuming no future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit
of the increased amortization of the assets, the expected future payments under the tax receivable agreement (which are taxable to the recipients) in respect
of the purchase and exchanges will aggregate $1.8 billion over the next 15 years. The after-tax net present value of these estimated payments totals
$529.9 million assuming a 15% discount rate and using an estimate of timing of the benefit to be received. Future payments under the tax receivable
agreement in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreement are not conditioned
upon continued ownership of Blackstone equity interests by the holders of Blackstone Holdings Partnership Units mentioned above.
Subsequent to December 31, 2024, payments totaling $46.3 million were made to certain holders of Blackstone Holdings Partnership Units mentioned
above in accordance with the tax receivable agreement and related to tax benefits the Partnership received for the 2023 taxable year. Such payments included
$1.5 million to Mr. Schwarzman, $0.2 million to Mr. Chae, $0.08 million to Mr. Finley, $0.04 million to Mr. Sawhney, and $0.6 million to Mr. Baratta, which
amounts include payments to vehicles controlled by such persons or their relatives, as applicable.
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In addition, the tax receivable agreement provides that upon certain mergers, asset sales, other forms of business combinations or other changes of
control, the corporate taxpayers’ (or their successors’) obligations with respect to exchanged or acquired units (whether exchanged or acquired before or after
such transaction) would be based on certain assumptions, including that the corporate taxpayers would have sufficient taxable income to fully utilize the
benefits arising from the increased tax deductions and tax basis and other similar benefits. Upon a subsequent actual exchange, any additional increase in tax
deductions, tax basis and other similar benefits in excess of the amounts assumed at the change in control will also result in payments under the tax
receivable agreement.
Decisions we make in the course of running our business, such as with respect to mergers, asset sales, other forms of business combinations or other
changes in control, may influence the timing and amount of payments that are received by an exchanging or selling holder of Blackstone Holdings Partnership
Units under the tax receivable agreement. For example, the earlier disposition of assets following an exchange or acquisition transaction will generally
accelerate payments under a tax receivable agreement and increase the present value of such payments, and the disposition of assets before an exchange or
acquisition transaction will increase the tax liability of a holder of Blackstone Holdings Partnership Units without giving rise to any rights of a holder of
Blackstone Holdings Partnership Units to receive payments under any tax receivable agreements.
Although we are not aware of any issue that would cause the IRS to challenge a tax basis increase, the corporate taxpayers will not be reimbursed for any
payments previously made under a tax receivable agreement. As a result, in certain circumstances, payments could be made under a tax receivable
agreement in excess of the corporate taxpayers’ cash tax savings.
Registration Rights Agreement
In connection with the restructuring and IPO, we entered into a registration rights agreement with our pre-IPO owners, which was subsequently
amended in connection with Blackstone’s conversion from a limited partnership to a corporation, pursuant to which we granted them, their affiliates and
certain of their transferees the right, under certain circumstances and subject to certain restrictions, to require us to register under the Securities Act shares
of common stock delivered in exchange for Blackstone Holdings Partnership Units or shares of common stock (and other securities convertible into or
exchangeable or exercisable for our shares of common stock) otherwise held by them. In addition, newly-admitted Blackstone senior managing directors and
certain others who acquire Blackstone Holdings Partnership Units have subsequently become parties to the registration rights agreement. In addition, our
founder, Stephen A. Schwarzman, has the right to request that we register the sale of shares of common stock held by holders of Blackstone Holdings
Partnership Units an unlimited number of times and may require us to make available shelf registration statements permitting sales of shares of common
stock into the market from time to time over an extended period. In addition, Mr. Schwarzman has the ability to exercise certain piggyback registration rights
in respect of shares of common stock held by holders of Blackstone Holdings Partnership Units in connection with registered offerings requested by other
registration rights holders or initiated by us.
Tsinghua University Education Foundation
As part of an initiative announced in 2013, Mr. Schwarzman, through the Stephen A. Schwarzman Education Foundation, personally committed
$100 million to create and endow a post-graduate scholarship program at Tsinghua University in Beijing, entitled “Schwarzman Scholars,” and fund the
construction of a residential and academic building. He has led a fundraising campaign to raise $600 million to support the “Schwarzman Endowment Fund.”
The Tsinghua University Education Foundation (“TUEF”) will hold the Schwarzman Endowment Fund and has agreed to delegate management of the fund to
Blackstone. We have agreed that TUEF, and certain entities affiliated with TUEF, will not be required to pay Blackstone a management fee for managing the
Schwarzman Endowment Fund and, to the extent Blackstone allocates and invests assets of the Schwarzman Endowment Fund in our funds, which may take
the form of funded or unfunded general partner commitments to our investment funds, we anticipate that such investments will be subject to reduced or
waived management fees and/or carried interest.
Joseph P. Baratta
Mr. Baratta received a base salary of $350,000 and a bonus payment of $6,890,895. The bonus payment was based upon the performance of our private
equity business, including the contribution of all current and past
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funds within the business dating back to before the IPO. The ultimate bonus payment to Mr. Baratta was, however, determined in the discretion of
Mr. Schwarzman and Mr. Gray. On January 10, 2025, Mr. Baratta was granted 41,801 shares of deferred restricted common stock with a grant date fair value of
$6,890,895, reflecting 100% of his annual bonus payment mandatorily deferred into deferred restricted common stock pursuant to the Bonus Deferral Plan. In
April 2024, Mr. Baratta was awarded a discretionary award of 55,411 deferred restricted common stock units with a grant date fair value of $7,260,503. This
award reflected 2023 performance and was intended to further promote retention and to incentivize future performance. See “—Item 11. Executive
Compensation — Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Terms of Discretionary Equity Awards”
for discussion of the vesting terms applicable to Mr. Baratta’s equity awards.
Mr. Baratta also participated in the performance fees of our funds, consisting of carried interest in our carry funds and incentive fees in our funds that
pay incentive fees. The compensation paid to Mr. Baratta in respect of carried interest in our carry funds primarily relates to Mr. Baratta’s participation in the
private equity funds (which were formed both before and after the IPO). The amount of distributions, whether cash or in-kind, in respect of carried interest or
incentive fee allocations to Mr. Baratta for 2024 was $26,095,196. Any in-kind distributions in respect of carried interest are reported based on the market
value of the securities distributed as of the date of distribution. See “—Item 11. Executive Compensation — Compensation Elements for Named Executive
Officers” in this report for additional discussion of the elements of our compensation program.
Blackstone Holdings Partnership Agreements
As a result of the reorganization and the IPO, Blackstone Inc. (at that time, The Blackstone Group L.P.) became a holding partnership and, through wholly
owned subsidiaries, held equity interests in the five holdings partnerships (i.e., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III
L.P., Blackstone Holdings IV L.P. and Blackstone Holdings V L.P.). On January 1, 2009, in order to simplify our structure and ease the related administrative
burden and costs, we effected an internal restructuring to reduce the number of holding partnerships from five to four by causing Blackstone Holdings III L.P.
to transfer all of its assets and liabilities to Blackstone Holdings IV L.P. In connection therewith, Blackstone Holdings IV L.P. was renamed Blackstone Holdings
III L.P. and Blackstone Holdings V L.P. was renamed Blackstone Holdings IV L.P. On October 1, 2015, Blackstone formed a new holding partnership, Blackstone
Holdings AI L.P., which holds certain operating entities and operates in a manner similar to the other Blackstone Holdings Partnerships. “Blackstone Holdings”
refers to (a) Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and Blackstone Holdings V L.P. prior to
the January 2009 reorganization, (b) Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. from
January 1, 2009 through October 1, 2015 and (c) Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P.
and Blackstone Holdings AI L.P. subsequent to the October 2015 creation of Blackstone Holdings AI L.P.
Wholly owned subsidiaries of Blackstone Inc. which are the general partners of those partnerships have the right to determine when distributions will be
made to the partners of Blackstone Holdings and the amount of any such distributions. If a distribution is authorized, such distribution will be made to the
partners of Blackstone Holdings pro-rata in accordance with the percentages of their respective partnership interests as described under “Part II. Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Dividend Policy.”
Each of the Blackstone Holdings Partnerships has an identical number of partnership units outstanding, and we use the terms “Blackstone Holdings
Partnership Unit” or “partnership unit in/of Blackstone Holdings” to refer, collectively, to a partnership unit in each of the Blackstone Holdings Partnerships.
The holders of partnership units in Blackstone Holdings, including Blackstone Inc.’s wholly owned subsidiaries, will incur U.S. federal, state and local income
taxes on their proportionate share of any net taxable income of Blackstone profits and net losses of Blackstone Holdings will generally be allocated to its
partners (including Blackstone Inc.’s wholly owned subsidiaries) pro-rata in accordance with the percentages of their respective partnership interests as
described under “Part II. Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Dividend
Policy.” The partnership agreements of the Blackstone Holdings Partnerships provide for cash distributions, which we refer to as “tax distributions,” to the
partners of such partnerships if the wholly owned subsidiaries of Blackstone Inc. which are the general partners of the Blackstone Holdings Partnerships
determine that the taxable income of the relevant partnership will give rise to taxable income for its partners.
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Generally, these tax distributions are computed based on our estimate of the net taxable income of the relevant partnership allocable to a partner multiplied
by an assumed tax rate equal to the highest effective marginal combined U.S. federal, state and local income tax rate prescribed for an individual or corporate
resident in New York, New York (taking into account the non-deductibility of certain expenses and the character of our income). Tax distributions are made
only to the extent all distributions from such partnerships for the relevant year are insufficient to cover such tax liabilities.
Subject to the vesting and minimum retained ownership requirements and transfer restrictions set forth in the partnership agreements of the Blackstone
Holdings Partnerships, Blackstone Holdings Partnership Units may be exchanged for shares of common stock as described under “- Exchange Agreement”
below. In addition, the Blackstone Holdings partnership agreements authorize the wholly owned subsidiaries of Blackstone Inc., which are the general
partners of those partnerships, to issue an unlimited number of additional partnership securities of the Blackstone Holdings Partnerships with such
designations, preferences, rights, powers and duties that are different from, and may be senior to, those applicable to the Blackstone Holdings Partnership
Units, and which may be exchangeable for shares of our common stock.
See “—Item 11. Executive Compensation — Narrative Disclosure to Summary Compensation Table and Grants of Plan-Based Awards in 2024 — Terms of
Discretionary Equity Awards” for a discussion of minimum retained ownership requirements and transfer restrictions applicable to the Blackstone Holdings
Partnership Units. The generally applicable minimum retained ownership requirements and transfer restrictions are outlined in the sections referenced in the
preceding sentence. There may be some different arrangements for some individuals in some instances. In addition, we may waive these requirements and
restrictions from time to time.
In addition, substantially all of our expenses, including substantially all expenses solely incurred by or attributable to Blackstone Inc. but not including
obligations incurred under the tax receivable agreement by Blackstone Inc.’s wholly owned subsidiaries, income tax expenses of Blackstone Inc.’s wholly
owned subsidiaries and payments on indebtedness incurred by Blackstone Inc.’s wholly owned subsidiaries, are borne by Blackstone Holdings.
Exchange Agreement
In connection with the reorganization and IPO, we entered into an exchange agreement with the holders of partnership units in Blackstone Holdings
(other than Blackstone Inc.’s wholly owned subsidiaries). In addition, certain Blackstone senior managing directors and others who have acquired Blackstone
Holdings Partnership Units also have become parties to the exchange agreement. Under the exchange agreement, as amended, subject to the vesting and
minimum retained ownership requirements and transfer restrictions set forth in the partnership agreements of the Blackstone Holdings Partnerships, each
such holder of Blackstone Holdings Partnership Units (and certain transferees thereof) may up to four times each year (subject to the terms of the exchange
agreement) exchange these partnership units for shares of our common stock on a one-for-one basis, subject to customary conversion rate adjustments for
splits, unit distributions and reclassifications. Under the exchange agreement, to effect an exchange a holder of partnership units in Blackstone Holdings must
simultaneously exchange one partnership unit in each of the Blackstone Holdings Partnerships. As a holder exchanges its Blackstone Holdings Partnership
Units, Blackstone Inc.’s indirect interest in the Blackstone Holdings Partnerships will be correspondingly increased.
Payments to Kirkland & Ellis LLP
Reginald J. Brown, a member of our board of directors, is a partner at the law firm of Kirkland & Ellis LLP (“Kirkland”). We have engaged Kirkland from
time to time in the ordinary course of business to provide legal services to us and our subsidiaries. Our relationship with Kirkland pre-dates Mr. Brown’s
appointment to our board of directors. During 2024, we paid Kirkland approximately $101.3 million in legal fees (the “Fees”), and Mr. Brown’s interest in the
Fees is estimated to be less than 1% of the Fees. Mr. Brown does not receive any direct compensation, specific origination bonus or other disproportionate
allocation from legal fees we pay to Kirkland.
Firm Use of Private Aircraft
Certain entities controlled by Mr. Schwarzman wholly own aircraft that we use for business purposes in the course of our operations, and in 2024, we
made payments of $4.0 million for the use of such aircraft, which included
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$2.6 million paid directly to the managers of the aircraft. An entity controlled by Mr. Gray wholly owns aircraft that we use for business purposes in the course
of our operations, and in 2024, we made payments of $4.8 million for the use of such aircraft, which included $2.3 million paid directly to the manager of the
aircraft. An entity jointly controlled by Mr. Baratta and two other individuals owns aircraft that we use for business purposes in the course of our operations,
and in 2024, we made payments of $1.5 million for the use of such aircraft, which included $0.9 million paid directly to the manager of the aircraft. As part of
these arrangements, when we use such aircraft for business purposes from time to time, Messrs. Schwarzman, Gray and Baratta or their affiliated entities, as
applicable, receive from their respective manager all or substantially all of the charter charges, net of any fee retained by such manager. Each of Messrs.
Schwarzman, Gray, and Baratta paid for his respective ownership interest in his aircraft himself and bore his respective share of all operating, personnel and
maintenance costs associated with the operation of such aircraft. The hourly payments we made for use of such aircraft were based on current market rates.
Investment In or Alongside Our Funds
Our directors and executive officers may invest their own capital in or alongside our funds and other vehicles we manage, in some instances, without
being subject to management fees, carried interest or incentive fees. For our carry funds, these investments may be made through the applicable fund general
partner and fund a portion of the general partner capital commitments to our funds. These investment opportunities are available to all of our senior
managing directors and to those of our employees whom we have determined to have a status that reasonably permits us to offer them these types of
investments and in compliance with applicable laws. During the year ended December 31, 2024, our directors and executive officers (and, in some cases,
certain investment trusts or other family vehicles or charitable organizations controlled by them or their immediate family members) had the following gross
contributions relating to their personal investments (and the investments of any such trusts) in Blackstone funds and other Blackstone-managed vehicles:
Mr. Schwarzman, Mr. Gray, Mr. Baratta, Mr. Breyer, Mr. Chae, Ms. Porat, Mr. Sawhney, Mr. Finley, Mr. Brown, and Mr. Parrett made gross contributions of
$281.6 million, $39.9 million, $6.1 million, $4.3 million, $2.8 million, $1.3 million, $1.1 million, $0.6 million, $0.3 million, and $0.2 million, respectively.
Statement of Policy Regarding Transactions with Related Persons
Our board of directors has adopted a written statement of policy regarding transactions with related persons, which we refer to as our “related person
policy.” Our related person policy requires that a “related person” (as defined as in paragraph (a) of Item 404 of Regulation S-K) must promptly disclose to the
Chief Legal Officer any “related person transaction” (defined as any transaction that is reportable by us under Item 404(a) of Regulation S-K in which we were
or are to be a participant and the amount involved exceeds $120,000 and in which any related person had or will have a direct or indirect material interest)
and all material facts with respect thereto. The Chief Legal Officer will then promptly communicate that information to the board of directors. No related
person transaction will be consummated without the approval or ratification of the board of directors or any committee of the board of directors consisting
exclusively of independent and disinterested directors. It is our policy that directors interested in a related person transaction will recuse themselves from any
vote of a related person transaction in which they have an interest.
Non-Competition and Non-Solicitation Agreements
We have entered into a non-competition and non-solicitation agreement with each of our Senior Managing Directors, including each of our executive
officers. See “—Item 11. Executive Compensation — Non-Competition and Non-Solicitation Agreements” for a description of the material terms of such
agreements.
Director Independence
See “—Item 10. Directors, Executive Officers and Corporate Governance — Controlled Company Exception and Director Independence” for information
on director independence.
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Item 14. Principal Accountant Fees and Services
The following table summarizes the aggregate fees for professional services provided by Deloitte & Touche LLP, the member firms of Deloitte Touche
Tohmatsu and their respective affiliates (collectively, the “Deloitte Entities”):
 
  
Year Ended December 31, 2024
 
  
Blackstone
Inc.
 
Blackstone
Entities,
Principally
Fund Related (c)  
Blackstone
Funds,
Transaction
Related (d)  
Total
 
  
(Dollars in Thousands)
Audit Fees
  $ 9,725 (a)   $
64,272   $
—   $ 73,997 
Audit-Related Fees
   
— 
   
1,355     29,949     31,304 
Tax Fees
   
802 (b)    
97,582     11,260     109,644 
All Other Fees
   
— 
   
78    
—    
78 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  $10,527 
  $
163,287   $ 41,209   $215,023 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
Year Ended December 31, 2023
 
  
Blackstone
Inc.
 
Blackstone
Entities,
Principally
Fund Related (c)  
Blackstone
Funds,
Transaction
Related (d)  
Total
 
  
(Dollars in Thousands)
Audit Fees
  $ 9,914 (a)   $
59,323   $
—   $ 69,237 
Audit-Related Fees
   
— 
   
226     15,966     16,192 
Tax Fees
   
731 (b)    
89,699    
8,610     99,040 
All Other Fees
   
— 
   
—    
—    
— 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
  $10,645 
  $
149,248   $ 24,576   $184,469 
  
 
 
 
 
 
 
 
  
 
 
 
  
 
 
 
(a)
Audit Fees consisted of fees for (1) the audits of our consolidated financial statements in our Annual Report on Form 10-K and services attendant to, or
required by, statute or regulation, (2) reviews of the interim condensed consolidated financial statements included in our quarterly reports on Form 10-Q,
and (3) consents and other services related to SEC and other regulatory filings.
(b) Tax Fees consisted of fees for services rendered for tax compliance and tax planning and advisory services.
(c)
The Deloitte Entities also provide audit, audit-related and tax services (primarily tax compliance and related services) to certain Blackstone Funds and
other corporate entities.
(d) Audit-Related and Tax Fees included merger and acquisition due diligence services provided in connection with potential acquisitions of portfolio
companies for investment purposes primarily to certain private equity and real estate funds managed by Blackstone in its capacity as the general partner.
In addition, the Deloitte Entities provide audit, audit-related, tax and other services to the portfolio companies, which are approved directly by the
portfolio company’s management and are not included in the amounts presented here.
Our audit committee charter, which is available on our website at http://ir.blackstone.com under “Corporate Governance,” requires the audit committee
to pre-approve all audit and non-audit services to be provided by our independent registered public accounting firm in accordance with the charter of the
audit committee. All services reported in the Audit, Audit-Related, Tax and All Other Fees categories above were approved by the audit committee.
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Part IV.
Item 15.
Exhibits and Financial Statement Schedules
(a)
The following documents are filed as part of this annual report.
1.
Financial Statements:
See Item 8 above.
2.
Financial Statement Schedules:
Schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are not
applicable, and therefore have been omitted.
3.
Exhibits:
Exhibit
Number 
Exhibit Description
 3.1
 
Amended and Restated Certificate of Incorporation of Blackstone Inc. (incorporated herein by reference to Exhibit 3.1 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 filed with the SEC on August 6, 2021).
 3.2
 
Amended and Restated Bylaws of Blackstone Inc. (incorporated herein by reference to Exhibit 3.2 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2021 filed with the SEC on August 6, 2021).
 4.1
 
Description of Capital Stock (incorporated herein by reference to Exhibit 4.1 of the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2021 filed with the SEC on February 25, 2022).
 4.2
 
Indenture dated as of August 20, 2009 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone Holdings I L.P.,
Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon, as trustee (incorporated
herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on August 20, 2009).
 4.3
 
Third Supplemental Indenture dated as of August 17, 2012 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon, as trustee
(incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on August 17, 2012).
 4.4  
Form of 4.750% Senior Note due 2023 (included in Exhibit 4.3 hereto).
 4.5
 
Fourth Supplemental Indenture dated as of August 17, 2012 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P.,
Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon,
as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with the SEC on
August 17, 2012).
 4.6  
Form of 6.250% Senior Note due 2042 (included in Exhibit 4.5 hereto).
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 4.7
 
Fifth Supplemental Indenture dated as of April 7, 2014 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon, as trustee
(incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 7, 2014).
 4.8
 
Form of 5.000% Senior Note due 2044 (included in Exhibit 4.7 hereto).
 4.9
 
Sixth Supplemental Indenture dated as of April 27, 2015 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of New York Mellon, as trustee
(incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC on April 27, 2015).
 4.10  
Form of 4.450% Senior Note due 2045 (included in Exhibit 4.9 hereto).
 4.11
 
Seventh Supplemental Indenture dated as of May 19, 2015 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., The Bank of New York Mellon, as trustee, and
The Bank of New York Mellon, London Branch, as paying agent (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current
Report on Form 8-K filed with the SEC on May 19, 2015).
 4.12  
Form of 2.000% Senior Note due 2025 (included in Exhibit 4.11 hereto).
 4.13
 
Guarantor Joinder Agreement dated as of October 1, 2015 among Blackstone Holdings Finance Co. L.L.C., Blackstone Holdings I L.P., Blackstone
Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings AI L.P. and Citibank, N.A., as administrative agent
(incorporated herein by reference to Exhibit 4.16 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed
with the SEC on February 26, 2016).
 4.14
 
Eighth Supplemental Indenture dated as of October 1, 2015 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P.,
Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., Blackstone Holdings AI L.P. and The
Bank of New York Mellon, as Trustee (incorporated herein by reference to Exhibit 4.17 to the Registrant’s Annual Report on Form 10-K for the
year ended December 31, 2015 filed with the SEC on February 26, 2016).
 4.15
 
Ninth Supplemental Indenture dated as of October 5, 2016 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., The Bank of New
York Mellon, as trustee, and The Bank of New York Mellon, London Branch, as paying agent (incorporated herein by reference to Exhibit 4.2 to
the Registrant’s Current Report on Form 8-K filed with the SEC on October 5, 2016).
 4.16  
Form of 1.000% Senior Note due 2026 (included in Exhibit 4.15 hereto).
 4.17
 
Tenth Supplemental Indenture dated as of October 2, 2017 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of
New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC
on October 2, 2017).
 4.18  
Form of 3.150% Senior Note due 2027 (included in Exhibit 4.17 hereto).
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 4.19
 
Eleventh Supplemental Indenture dated as of October 2, 2017 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with
the SEC October 2, 2017).
 4.20  
Form of 4.000% Senior Note due 2047 (included in Exhibit 4.19 hereto).
 4.21
 
Twelfth Supplemental Indenture dated as of April 10, 2019 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group L.P., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P., The Bank of New
York Mellon, as trustee, and The Bank of New York Mellon, London Branch, as paying agent (incorporated herein by reference to Exhibit 4.2 to
the Registrant’s Current Report on Form 8-K filed with the SEC on April 11, 2019).
 4.22  
Form of 1.500% Senior Notes due 2029 (included in Exhibit 4.21 hereto).
 4.23
 
Thirteenth Supplemental Indenture dated as of September 10, 2019 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with
the SEC on September 10, 2019).
 4.24  
Form of 2.500% Senior Note due 2030 (included in Exhibit 4.23 hereto).
 4.25
 
Fourteenth Supplemental Indenture dated as of September 10, 2019 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with
the SEC on September 10, 2019).
 4.26  
Form of 3.500% Senior Note due 2049 (included in Exhibit 4.25 hereto).
 4.27
 
Fifteenth Supplemental Indenture dated as of September 29, 2020 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with
the SEC on September 29, 2020).
 4.28  
Form of 1.600% Senior Note due 2031 (included in Exhibit 4.27 hereto).
 4.29
 
Sixteenth Supplemental Indenture dated as of September 29, 2020 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with
the SEC on September 29, 2020).
 4.30  
Form of 2.800% Senior Note due 2050 (included in Exhibit 4.29 hereto).
 4.31
 
Seventeenth Supplemental Indenture dated as of August 5, 2021 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with
the SEC on August 5, 2021).
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 4.32  
Form of 1.625% Senior Note due 2028 (included in Exhibit 4.31 hereto).
 4.33
 
Eighteenth Supplemental Indenture dated as of August 5, 2021 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with
the SEC on August 5, 2021).
 4.34  
Form of 2.000% Senior Note due 2032 (included in Exhibit 4.33 hereto).
 4.35
 
Nineteenth Supplemental Indenture dated as of August 5, 2021 among Blackstone Holdings Finance Co. L.L.C., The Blackstone Group Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.6 to the Registrant’s Current Report on Form 8-K filed with
the SEC on August 5, 2021).
 4.36  
Form of 2.850% Senior Note due 2051 (included in Exhibit 4.35 hereto).
 4.37
 
Twentieth Supplemental Indenture dated as of January 10, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of
New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC
on January 10, 2022).
 4.38  
Form of 2.550% Senior Note due 2032 (included in Exhibit 4.37 hereto).
 4.39
 
Twenty-First Supplemental Indenture dated as of January 10, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of
New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current report on Form 8-K filed with the SEC
on January 10, 2022).
 4.40  
Form of 3.200% Senior Note due 2052 (included in Exhibit 4.39 hereto).
 4.41
 
Twenty-Second Supplemental Indenture dated as of June 1, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of
New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC
on June 1, 2022).
 4.42  
Form of 3.500% Senior Note due 2034 (included in Exhibit 4.41 hereto).
 4.43
 
Twenty-Third Supplemental Indenture dated as of November 3, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc., Blackstone
Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The Bank of
New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed with the SEC
on November 3, 2022).
 4.44  
Form of 5.900% Senior Note due 2027 (included in Exhibit 4.43 hereto).
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 4.45
 
Twenty-Fourth Supplemental Indenture dated as of November 3, 2022 among Blackstone Holdings Finance Co. L.L.C., Blackstone Inc.,
Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and The
Bank of New York Mellon, as trustee (incorporated herein by reference to Exhibit 4.4 to the Registrant’s Current Report on Form 8-K filed with
the SEC on November 3, 2022).
 4.46  
Form of 6.200% Senior Note due 2033 (included in Exhibit 4.45 hereto).
 4.47
 
Indenture dated as of December 6, 2024 among Blackstone Reg Finance Co. L.L.C., Blackstone Inc., Blackstone Holdings I L.P., Blackstone
Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. and The Bank of New York Mellon Trust
Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on
December 6, 2024).
 4.48
 
First Supplemental Indenture dated as of December 6, 2024 among Blackstone Reg Finance Co. L.L.C., Blackstone Inc., Blackstone Holdings I L.P.,
Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. and The Bank of New York
Mellon Trust Company, N.A., as trustee (incorporated herein by reference to Exhibit 4.2 to the Registrant’s Current Report on Form 8-K filed
with the SEC on December 6, 2024).
 4.49  
Form of 5.000% Senior Note due 2034 (included in Exhibit 4.48 hereto).
10.1
 
Fourth Amended and Restated Limited Partnership Agreement of Blackstone Holdings I L.P., dated as of May 7, 2021, by and among Blackstone
Holdings I/II GP L.L.C. and the limited partners of Blackstone Holdings I L.P. party thereto (incorporated herein by reference to Exhibit 10.1 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.2
 
Fourth Amended and Restated Limited Partnership Agreement of Blackstone Holdings II L.P., dated as of May 7, 2021, by and among Blackstone
Holdings I/II GP L.L.C. and the limited partners of Blackstone Holdings II L.P. party thereto (incorporated herein by reference to Exhibit 10.2 to
the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.3
 
Fifth Amended and Restated Limited Partnership Agreement of Blackstone Holdings III L.P., dated as of May 7, 2021, by and among Blackstone
Holdings III GP L.P. and the limited partners of Blackstone Holdings III L.P. party thereto (incorporated herein by reference to Exhibit 10.3 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.4
 
Fifth Amended and Restated Limited Partnership Agreement of Blackstone Holdings IV L.P., dated as of May 7, 2021, by and among Blackstone
Holdings IV GP L.P. and the limited partners of Blackstone Holdings IV L.P. party thereto (incorporated herein by reference to Exhibit 10.4 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.5
 
Fourth Amended and Restated Limited Partnership Agreement of Blackstone Holdings AI L.P., dated as of May 7, 2021, by and among Blackstone
Holdings I/II GP L.L.C. and the limited partners of Blackstone Holdings AI L.P. party thereto (incorporated herein by reference to Exhibit 10.5 to
the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
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10.6
 
Amended and Restated Tax Receivable Agreement, dated as of May 7, 2021, by and among Blackstone Holdings I/II GP L.L.C., Blackstone
Holdings I L.P., Blackstone Holdings II L.P. and the limited partners of Blackstone Holdings I L.P. and Blackstone Holdings II L.P. party thereto
(incorporated herein by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed
with the SEC on May 7, 2021).
10.7+
 
Sixth Amended and Restated Exchange Agreement, dated as of February 7, 2022, among Blackstone Inc., Blackstone Holdings AI L.P., Blackstone
Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P., Blackstone Holdings IV L.P. and the Blackstone Holdings Limited Partners
from time to time party thereto (incorporated herein by reference to Exhibit 10.7 to the Registrant’s Annual Report on Form 10-K for the year
ended December 31, 2021 filed with the SEC on February 25, 2022)
10.8
 
Amended and Restated Registration Rights Agreement, dated as of May 7, 2021 (incorporated herein by reference to Exhibit 10.8 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.9+
 
Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Annual
Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024).
10.10+
 
The Blackstone Group Inc. Ninth Amended and Restated Bonus Deferral Plan (incorporated herein by reference to Exhibit 10.10 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 filed with the SEC on May 7, 2021).
10.11+
 
Amended and Restated Founding Member Agreement of Stephen A. Schwarzman, dated as of March 1, 2018, by and among Blackstone
Holdings I L.P. and Stephen A. Schwarzman (incorporated herein by reference to Exhibit 10.11 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2017 filed with the SEC on March 1, 2018).
10.12+
 
Letter Agreement, dated as of July 1, 2019, amending Amended and Restated Founding Member Agreement of Stephen A. Schwarzman, dated
as of March 1, 2018, by and among Blackstone Holdings I L.P. and Stephen A. Schwarzman (incorporated herein by reference to Exhibit 99.9 to
the Registrant’s Current Report on Form 8-K filed with the SEC on July 5, 2019).
10.13+
 
Form of Senior Managing Director Agreement by and among Blackstone Holdings I L.P. and each of the Senior Managing Directors from time to
time party thereto (incorporated herein by reference to Exhibit 10.12 to the Registrant’s Registration Statement on Form S-1/A filed with the
SEC on June 14, 2007). (Applicable to all executive officers other than Mr. Schwarzman).
10.14+
 
Form of Deferred Restricted Common Unit Award Agreement (Directors) (incorporated herein by reference to Exhibit 10.36 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed with the SEC on August 8, 2008).
10.15+
 
Form of Deferred Restricted Blackstone Holdings Unit Award Agreement for Executive Officers (incorporated herein by reference to
Exhibit 10.37 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 filed with the SEC on
November 7, 2008).
10.16+
 
Second Amended and Restated Limited Liability Company Agreement of BMA V L.L.C., dated as of May 31, 2007, by and among Blackstone
Holdings III L.P. and certain members of BMA V L.L.C. (incorporated herein by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
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10.17+
 
Second Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Management Associates International L.P., dated as
of May 31, 2007, by and among BREA International (Cayman) Ltd. and certain limited partners (incorporated herein by reference to
Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
10.18+
 
Amendment No. 1 dated as of January 1, 2008 to the Second Amended and Restated Agreement of Limited Partnership of Blackstone Real
Estate Management Associates International L.P., dated as of May 31, 2007, by and among BREA International (Cayman) Ltd. and certain limited
partners (incorporated herein by reference to Exhibit 10.19.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2008 filed with the SEC on May 15, 2008).
10.19+
 
Second Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Management Associates International II L.P., dated
as of May 31, 2007, by and among BREA International (Cayman) II Ltd. and certain limited partners (incorporated herein by reference to
Exhibit 10.14 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
10.20+
 
Amendment No. 1 dated as of January 1, 2008 to the Second Amended and Restated Agreement of Limited Partnership of Blackstone Real
Estate Management Associates International II L.P., dated as of May 31, 2007, by and among BREA International (Cayman) II Ltd. and certain
limited partners (incorporated herein by reference to Exhibit 10.20.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2008 filed with the SEC on May 15, 2008).
10.21+
 
Second Amended and Restated Limited Liability Company Agreement of Blackstone Management Associates IV L.L.C., dated as of May 31, 2007,
by and among Blackstone Holdings III L.P. and certain members of Blackstone Management Associates IV L.L.C. (incorporated herein by
reference to Exhibit 10.15 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on
August 13, 2007).
10.22+
 
Second Amended and Restated Limited Liability Company Agreement of Blackstone Mezzanine Management Associates L.L.C., dated as of
May 31, 2007, by and among Blackstone Holdings III L.P. and certain members of Blackstone Mezzanine Management Associates L.L.C.
(incorporated herein by reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed
with the SEC on August 13, 2007).
10.23+
 
Second Amended and Restated Limited Liability Company Agreement of Blackstone Mezzanine Management Associates II L.L.C., dated as of
May 31, 2007, by and among Blackstone Holdings III L.P. and certain members of Blackstone Mezzanine Management Associates II L.L.C.
(incorporated herein by reference to Exhibit 10.17 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed
with the SEC on August 13, 2007).
10.24+
 
Second Amended and Restated Limited Liability Company Agreement of BREA IV L.L.C., dated as of May 31, 2007, by and among Blackstone
Holdings III L.P. and certain members of BREA IV L.L.C. (incorporated herein by reference to Exhibit 10.18 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
10.25+
 
Second Amended and Restated Limited Liability Company Agreement of BREA V L.L.C., dated as of May 31, 2007, by and among Blackstone
Holdings III L.P. and certain members of BREA V L.L.C. (incorporated herein by reference to Exhibit 10.19 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
270

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10.26+
 
Second Amended and Restated Limited Liability Company Agreement of BREA VI L.L.C., dated as of May 31, 2007, by and among Blackstone
Holdings III L.P. and certain members of BREA VI L.L.C. (incorporated herein by reference to Exhibit 10.20 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007 filed with the SEC on August 13, 2007).
10.27+
 
Amendment No. 1 dated as of January 1, 2008 to the Second Amended and Restated Limited Liability Company Agreement of BREA VI L.L.C.,
dated as of May 31, 2007, by and among Blackstone Holdings III L.P. and certain members of BREA VI L.L.C. (incorporated herein by reference to
Exhibit 10.26.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 filed with the SEC on May 15, 2008).
10.28+
 
Second Amended and Restated Limited Liability Company Agreement of Blackstone Communications Management Associates I L.L.C., dated as
of May 31, 2007, by and among Blackstone Holdings III L.P. and certain members of Blackstone Communications Management Associates I L.L.C.
(incorporated herein by reference to Exhibit 10.21 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 filed
with the SEC on August 13, 2007).
10.29+
 
Amended and Restated Limited Liability Company Agreement of BCLA L.L.C., dated as of April 15, 2008, by and among Blackstone Holdings III
L.P. and certain members of BCLA L.L.C. (incorporated herein by reference to Exhibit 10.28 to the Registrant’s Quarterly Report on Form 10-Q for
the quarter ended March 31, 2008 filed with the SEC on May 15, 2008).
10.30+
 
Third Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Management Associates Europe III L.P., dated as of
June 30, 2008 (incorporated herein by reference to Exhibit 10.28 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2008 filed with the SEC on August 8, 2008).
10.31+
 
Second Amended and Restated Limited Liability Company Agreement of Blackstone Real Estate Special Situations Associates L.L.C., dated as of
June 30, 2008 (incorporated herein by reference to Exhibit 10.29 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2008 filed with the SEC on August 8, 2008).
10.32+
 
BMA VI L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of July 31, 2008 (incorporated herein by reference to
Exhibit 10.30 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 filed with the SEC on
November 7, 2008).
10.33+
 
Fourth Amended and Restated Limited Liability Company Agreement of GSO Associates LLC, dated as of March 3, 2008 (incorporated herein by
reference to Exhibit 10.33 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 filed with the SEC on
March 2, 2009).
10.34+
 
Amended and Restated Limited Liability Company Agreement of GSO Overseas Associates LLC, dated as of March 3, 2008 (incorporated herein
by reference to Exhibit 10.34 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 filed with the SEC on
March 2, 2009).
10.35+
 
Third Amended and Restated Limited Liability Company Agreement of GSO Capital Opportunities Associates LLC, dated as of March 3, 2008
(incorporated herein by reference to Exhibit 10.36 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 filed
with the SEC on March 2, 2009).
10.36+
 
Third Amended and Restated Limited Liability Company Agreement of GSO Capital Opportunities Overseas Associates LLC, dated as of
March 3, 2008 (incorporated herein by reference to Exhibit 10.37 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2008 filed with the SEC on March 2, 2009).
271

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10.37+
 
Amended and Restated Limited Liability Company Agreement of GSO Liquidity Overseas Associates LLC, dated as of March 3, 2008
(incorporated herein by reference to Exhibit 10.39 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2008 filed
with the SEC on March 2, 2009).
10.38+
 
Blackstone / GSO Capital Solutions Associates LLC Second Amended and Restated Limited Liability Company Agreement, dated as of
May 22, 2009 (incorporated herein by reference to Exhibit 10.40 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2009 filed with the SEC on August 7, 2009).
10.39+
 
Blackstone / GSO Capital Solutions Overseas Associates LLC Second Amended and Restated Limited Liability Company Agreement, dated as of
July 10, 2009 (incorporated herein by reference to Exhibit 10.41 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2009 filed with the SEC on August 7, 2009).
10.40+
 
Blackstone Real Estate Special Situations Associates II L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of
June 30, 2009 (incorporated herein by reference to Exhibit 10.42 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2009 filed with the SEC on August 7, 2009).
10.41+
 
Blackstone Real Estate Special Situations Management Associates Europe L.P. Amended and Restated Agreement of Limited Partnership, dated
as of June 30, 2009 (incorporated herein by reference to Exhibit 10.43 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2009 filed with the SEC on August 7, 2009).
10.42+
 
BRECA L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of May 1, 2009 (incorporated herein by reference to
Exhibit 10.44 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2009 filed with the SEC on August 7, 2009).
10.43+
 
GSO Targeted Opportunity Associates LLC Amended and Restated Limited Liability Company Agreement, dated as of December 9, 2009
(incorporated herein by reference to Exhibit 10.48 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010
filed with the SEC on May 10, 2010).
10.44+
 
GSO Targeted Opportunity Overseas Associates LLC Amended and Restated Limited Liability Company Agreement, dated as of
December 9, 2009 (incorporated herein by reference to Exhibit 10.49 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
March 31, 2010 filed with the SEC on May 10, 2010).
10.45+
 
BCVA L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of July 8, 2010 (incorporated herein by reference to
Exhibit 10.50 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 filed with the SEC on August 6, 2010).
10.46+
 
Amended and Restated Agreement of Exempted Limited Partnership of MB Asia REA L.P., dated November 23, 2010 (incorporated herein by
reference to Exhibit 10.51 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2010 filed with the SEC on
February 25, 2011).
10.47+
 
Amended and Restated Limited Liability Company Agreement of GSO SJ Partners Associates LLC, dated December 7, 2010, by and among GSO
Holdings I L.L.C. and certain members of GSO SJ Partners Associates LLC thereto (incorporated herein by reference to Exhibit 10.4 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed with the SEC on May 6, 2011).
272

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10.48+
 
Amended and Restated Exempted Limited Partnership Agreement of GSO Capital Opportunities Associates II LP, dated as of December 31, 2015
(incorporated herein by reference to Exhibit 10.53 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed
with the SEC on February 26, 2016).
10.49+
 
Blackstone EMA L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of August 1, 2011 (incorporated herein by
reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed with the SEC on
November 9, 2011).
10.50+
 
Blackstone Real Estate Associates VII L.P. Second Amended and Restated Agreement of Limited Partnership, dated as of September 1, 2011
(incorporated herein by reference to Exhibit 10.53.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2011 filed
with the SEC on February 28, 2012).
10.51+
 
GSO Energy Partners-A Associates LLC Second Amended and Restated Limited Liability Company Agreement, dated as of February 28, 2012
(incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed
with the SEC on May 7, 2012).
10.52+
 
BTOA L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of February 15, 2012 (incorporated herein by reference to
Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed with the SEC on May 7, 2012).
10.53+
 
Form of Deferred Holdings Unit Agreement for Senior Managing Directors (incorporated herein by reference to Exhibit 10.2 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2012 filed with the SEC on August 7, 2012).
10.54+
 
Amended and Restated Limited Liability Company Agreement of Blackstone Commercial Real Estate Debt Associates L.L.C., dated as of
November 12, 2010 (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2012 filed with the SEC on August 7, 2012).
10.55+
 
Limited Liability Company Agreement of Blackstone Innovations L.L.C., dated November 2, 2012 (incorporated herein by reference to
Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed with the SEC on
November 2, 2012).
10.56+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Innovations (Cayman) III L.P., dated November 2, 2012
(incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2012
filed with the SEC on November 2, 2012).
10.57+
 
GSO Foreland Resources Co-Invest Associates LLC Amended and Restated Limited Liability Company Agreement, dated as of August 10, 2012
(incorporated herein by reference to Exhibit 10.60 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012 filed
with the SEC on March 1, 2013).
10.58+
 
GSO Palmetto Opportunistic Associates LLC Amended and Restated Limited Liability Company Agreement, dated as of July 31, 2012
(incorporated herein by reference to Exhibit 10.61 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2012 filed
with the SEC on March 1, 2013).
273

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10.59+
 
Second Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Real Estate Associates Asia L.P., dated
February 26, 2014 (incorporated herein by reference to Exhibit 10.63 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2013 filed with the SEC on February 28, 2014).
10.60+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Real Estate Associates Europe IV L.P., dated
February 26, 2014 (incorporated herein by reference to Exhibit 10.64 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2013 filed with the SEC on February 28, 2014).
10.61
 
Form of Amended and Restated Aircraft Dry Lease Agreement (N113CS) between 113CS LLC and Blackstone Administrative Services Partnership
L.P. (incorporated herein by reference to Exhibit 10.61 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2022
filed with the SEC on February 24, 2023).
10.62+
 
Form of Special Equity Award – Deferred Holdings Unit Agreement under The Blackstone Group L.P. 2007 Equity Incentive Plan (incorporated
herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2015 filed with the SEC on
August 6, 2015).
10.63+
 
Amended and Restated Agreement of Limited Partnership of BREP Edens Associates L.P., dated as of December 18, 2013 (incorporated herein
by reference to Exhibit 10.76 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on
February 26, 2016).
10.64+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone AG Associates L.P., dated as of February 16, 2016 and
deemed effective as of May 30, 2014 (incorporated herein by reference to Exhibit 10.77 to the Registrant’s Annual Report on Form 10-K for the
year ended December 31, 2015 filed with the SEC on February 26, 2016).
10.65+
 
Amended and Restated Agreement of Limited Partnership of BREP OMP Associates L.P., dated as of June 27, 2014 (incorporated herein by
reference to Exhibit 10.78 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on
February 26, 2016).
10.66+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone OBS Associates L.P., dated as of February 16, 2016 and
deemed effective July 25, 2014 (incorporated herein by reference to Exhibit 10.79 to the Registrant’s Annual Report on Form 10-K for the year
ended December 31, 2015 filed with the SEC on February 26, 2016).
10.67+
 
Amended and Restated Limited Liability Company Agreement of Blackstone EMA II L.L.C., dated as of October 21, 2014 (incorporated herein by
reference to Exhibit 10.80 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on
February 26, 2016).
10.68+
 
Second Amended and Restated Agreement of Limited Partnership of Blackstone Liberty Place Associates L.P., dated as of February 9, 2015
(incorporated herein by reference to Exhibit 10.81 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed
with the SEC on February 26, 2016).
10.69+
 
Second Amended and Restated Agreement of Exempted Limited Partnership of BPP Core Asia Associates L.P., dated February 16, 2016 and
deemed effective March 18, 2015 (incorporated herein by reference to Exhibit 10.82 to the Registrant’s Annual Report on Form 10-K for the
year ended December 31, 2015 filed with the SEC on February 26, 2016).
274

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10.70+
 
Second Amended and Restated Agreement of Exempted Limited Partnership of BPP Core Asia Associates-NQ L.P., dated as of February 16, 2016
and deemed effective March 18, 2015 (incorporated herein by reference to Exhibit 10.83 to the Registrant’s Annual Report on Form 10-K for the
year ended December 31, 2015 filed with the SEC on February 26, 2016).
10.71+
 
Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Associates VIII L.P., dated as of March 27, 2015
(incorporated herein by reference to Exhibit 10.84 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed
with the SEC on February 26, 2016).
10.72+
 
Amended and Restated Limited Liability Company Agreement of BMA VII L.L.C., dated as of May 13, 2015 (incorporated herein by reference to
Exhibit 10.85 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016).
10.73+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Property Associates International L.P., dated as of
February 16, 2016 and deemed effective as of July 15, 2015 (incorporated herein by reference to Exhibit 10.86 to the Registrant’s Annual Report
on Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016).
10.74+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Property Associates International-NQ L.P., dated as of
February 16, 2016 and deemed effective July 28, 2015 (incorporated herein by reference to Exhibit 10.87 to the Registrant’s Annual Report on
Form 10-K for the year ended December 31, 2015 filed with the SEC on February 26, 2016).
10.75+
 
BTOA II L.L.C. Amended and Restated Limited Liability Company Agreement, dated as of December 19, 2014 (incorporated herein by reference
to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 filed with the SEC on August 4, 2016).
10.76+
 
Special Equity Award — Deferred Holdings Unit Agreement under The Blackstone Group L.P. 2007 Equity Incentive Plan (Chief Financial Officer)
(incorporated herein by reference to Exhibit 10.82 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 filed
with the SEC on February 24, 2017).
10.77+
 
Form of Deferred Holdings Unit Agreement under The Blackstone Group L.P. 2007 Equity Incentive Plan (2013 and 2014 awards) (incorporated
herein by reference to Exhibit 10.83 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC
on February 24, 2017).
10.78+
 
Amended and Restated Agreement of Exempted Limited Partnership of Blackstone Real Estate Associates Europe V L.P., dated May 8, 2017 and
deemed effective March 1, 2016 (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2017 filed with the SEC on May 9, 2017).
10.79+
 
Amended and Restated Limited Liability Company Agreement of Blackstone CEMA L.L.C., dated February 9, 2016 (incorporated herein by
reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2017 filed with the SEC on
August 8, 2017).
10.80+
 
Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Debt Strategies Associates II L.P., dated February 15, 2018
and deemed effective as of April 17, 2013 (incorporated herein by reference to Exhibit 10.86 to the Registrant’s Annual Report on Form 10-K for
the year ended December 31, 2017 filed with the SEC on March 1, 2018).
275

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10.81+
 
Amended and Restated Agreement of Limited Partnership of Blackstone Real Estate Debt Strategies Associates III L.P., dated February 15, 2018
and deemed effective as of July 25, 2016 (incorporated herein by reference to Exhibit 10.87 to the Registrant’s Annual Report on Form 10-K for
the year ended December 31, 2017 filed with the SEC on March 1, 2018).
10.82
 
Form of Aircraft Dry Lease Agreement between GH4 Partners LLC and Blackstone Administrative Services Partnership L.P. (incorporated herein
by reference to Exhibit 10.82 to the Registrant’s Annual Report on Form 10 K for the year ended December 31, 2023 filed with the SEC on
February 23, 2024).
10.83
 
Form of Aircraft Dry Lease Agreement (N345XB) between Hilltop Asset Holdings LLC and Blackstone Administrative Services Partnership L.P.
(incorporated herein by reference to Exhibit 10.83 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 filed
with the SEC on February 28, 2020).
10.84
 
Form of Aircraft Dry Lease Agreement (N776BT) between Hilltop Asset Holdings LLC and Blackstone Administrative Services Partnership L.P.
(incorporated herein by reference to Exhibit 10.84 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 filed
with the SEC on February 28, 2020).
10.85
 
Amended and Restated Credit Agreement dated as of March 23, 2010, as amended and restated as of May 29, 2014, as further amended and
restated as of August 31, 2016, as further amended and restated as of September 21, 2018, as further amended and restated as of
November 24, 2020, as further amended and restated as of June 3, 2022, and as further amended and restated as of December 15, 2023,
among Blackstone Holdings Finance Co. L.L.C., as borrower, Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P.,
Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., as guarantors, Citibank, N.A., as administrative agent and the lenders party thereto
(incorporated herein by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the SEC on December 20, 2023).
10.86+
 
Amended and Restated Limited Partnership Agreement of BTOA III L.P., dated as of February 27, 2019 and deemed effective as of May 24, 2018
(incorporated herein by reference to Exhibit 10.92 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018 filed
with the SEC on March 1, 2019).
10.87+
 
Amended and Restated Deferred Holdings Unit Agreement under The Blackstone Group L.P. 2007 Equity Incentive Plan between The Blackstone
Group L.P. and the Participant named therein (incorporated herein by reference to Exhibit 10.93 to the Registrant’s Annual Report on Form 10-K
for the year ended December 31, 2018 filed with the SEC on March 1, 2019).
10.88+
 
Form of Deferred Holdings Unit Agreement under The Blackstone Group L.P. 2007 Equity Incentive Plan (incorporated herein by reference to
Exhibit 10.94 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019).
10.89+
 
Amended and Restated Limited Partnership Agreement of Blackstone Management Associates Asia L.P., dated as of August 6, 2019, and
deemed effective as of November 9, 2017 (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q
for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.90+
 
Second Amended and Restated Limited Partnership Agreement of BREIT Special Limited Partner L.P., dated as of February 12, 2020 and deemed
effective as of January 1, 2018 (incorporated herein by reference to Exhibit 10.90 to the Registrant’s Annual Report on Form 10-K for the year
ended December 31, 2019 filed with the SEC on February 28, 2020).
276

Table of Contents
10.91+
 
Amended and Restated Exempted Limited Partnership Agreement of Blackstone Real Estate Associates Asia II L.P., dated August 6, 2019 and
deemed effective September 21, 2017 (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.92+
 
Amended and Restated Limited Partnership Agreement of Blackstone Total Alternatives Solution Associates L.P., dated as of August 6, 2019 and
deemed effective as of August 24, 2014 (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.93+
 
Amended and Restated Limited Partnership Agreement of Blackstone Total Alternatives Solution Associates 2015 I L.P., dated as of August 6,
2019 and deemed effective as of February 24, 2015 (incorporated herein by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.94+
 
Amended and Restated Limited Partnership Agreement of Blackstone Total Alternatives Solution Associates 2016 L.P., dated as of August 6,
2019 and deemed effective as of December 9, 2016 (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.95+
 
Amended and Restated Limited Partnership Agreement of Blackstone Total Alternatives Solution Associates IV L.P., dated as of August 6, 2019
and deemed effective as of December 22, 2017 (incorporated herein by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.96+
 
Amended and Restated Limited Partnership Agreement of Blackstone Total Alternatives Solution Associates V L.P., dated as of August 6, 2019
and deemed effective as of October 31, 2018 (incorporated herein by reference to Exhibit 10.8 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.97+
 
Third Amended and Restated Limited Liability Company Agreement of BTOSIA L.L.C., dated as of August 6, 2019 and deemed effective as of
May 12, 2016 (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
June 30, 2019 filed with the SEC on August 8, 2019).
10.98+
 
Amended and Restated Exempted Limited Partnership Agreement of Blackstone UK Mortgage Opportunities Management Associates (Cayman)
L.P., dated August 6, 2019 and deemed effective December 4, 2015 (incorporated herein by reference to Exhibit 10.10 to the Registrant’s
Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 filed with the SEC on August 8, 2019).
10.99+
 
Amended and Restated Limited Partnership Agreement of Blackstone EMA III GP L.P., dated as of November 6, 2019 and deemed effective as of
August 17, 2018 (incorporated herein by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019 filed with the SEC on November 8, 2019).
10.100+
 
Amended and Restated Limited Partnership Agreement of BMA VIII GP L.P., dated as of November 6, 2019 and deemed effective as of
March 29, 2019 (incorporated herein by reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2019 filed with the SEC on November 8, 2019).
10.101+
 
Form of Deferred Holdings Unit Agreement under The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan (2019)
(incorporated herein by reference to Exhibit 10.101 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 filed
with the SEC on February 28, 2020).
277

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10.102+
 
Form of Deferred Holdings Unit Agreement under The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan (Termination
Vesting 2019) (incorporated herein by reference to Exhibit 10.102 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2019 filed with the SEC on February 28, 2020).
10.103+
 
Form of Deferred Unit Agreement under The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan (2020) (incorporated
herein by reference to Exhibit 10.103 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC
on February 28, 2020).
10.104+
 
Form of Deferred Unit Agreement under The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan (Termination Vesting
2020) (incorporated herein by reference to Exhibit 10.104 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2019 filed with the SEC on February 28, 2020).
10.105+
 
Amended and Restated Limited Partnership Agreement of BREA Europe VI (Cayman) L.P., dated as of February 26, 2020 and deemed effective as
of May 8, 2019 (incorporated herein by reference to Exhibit 10.105 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2019 filed with the SEC on February 28, 2020).
10.106+
 
Amended and Restated Limited Partnership Agreement of BREA IX (Delaware) L.P., dated as of February 26, 2020 and deemed effective as of
December 21, 2018 (incorporated herein by reference to Exhibit 10.106 to the Registrant’s Annual Report on Form 10-K for the year ended
December 31, 2019 filed with the SEC on February 28, 2020).
10.107+
 
Amended and Restated Agreement of Limited Partnership, of Strategic Partners Fund Solutions Associates – NC Real Asset Opportunities, L.P.,
dated as of September 30, 2014 (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
10.108+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Real Estate VI L.P., dated as of
April 8, 2015 (incorporated herein by reference to Exhibit 10.7 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2020 filed with the SEC on November 6, 2020).
10.109+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Real Estate VII L.P., dated
November 4, 2020, and effective as of December 13, 2018 (incorporated herein by reference to Exhibit 10.8 to the Registrant’s Quarterly Report
on Form 10-Q for the quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
10.110+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Infrastructure III L.P., dated
November 4, 2020, and effective as of December 24, 2019 (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Quarterly Report
on Form 10-Q for the quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
10.111+
 
Amended and Restated Agreement of Limited Partnership of Strategic Partners Fund Solutions Associates RA II L.P., dated November 4, 2020,
and effective as of April 3, 2017 (incorporated herein by reference to Exhibit 10.10 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
278

Table of Contents
10.112+
 
Second Amended and Restated Agreement of Limited Partnership of Strategic Partners Fund Solutions Associates VI L.P., dated as of May 23,
2023 (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023
filed with the SEC on August 4, 2023).
10.113+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates VII L.P., dated as of February 12, 2016
(incorporated herein by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020
filed with the SEC on November 6, 2020).
10.114+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates VIII L.P., dated November 4, 2020, and
effective as of December 21, 2018 (incorporated herein by reference to Exhibit 10.13 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
10.115+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates DE L.P., dated November 4, 2020, and
effective as of February 26, 2018 (incorporated herein by reference to Exhibit 10.14 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2020 filed with the SEC on November 6, 2020).
10.116+
 
Amended and Restated Limited Partnership Agreement of Blackstone CEMA II GP L.P., dated as of November 4, 2020 (incorporated herein by
reference to Exhibit 10.15 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 filed with the SEC on
November 6, 2020).
10.117+
 
Amended and Restated Limited Partnership Agreement of BREDS IV L.P., dated as of November 4, 2020, and effective as of April 3, 2020
(incorporated herein by reference to Exhibit 10.16 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020
filed with the SEC on November 6, 2020).
10.118+
 
Amended and Restated Limited Partnership Agreement of BXLS V GP L.P., dated as of November 4, 2020, and effective as of December 31, 2019
(incorporated herein by reference to Exhibit 10.17 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020
filed with the SEC on November 6, 2020).
10.119
 
Withdrawal Agreement between Blackstone Holdings I L.P. and Hamilton E. James dated May 3, 2022 (incorporated herein by reference to
Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 filed with the SEC on May 5, 2022).
10.120
 
Form of Aircraft Dry Lease Agreement between Hilltop Asset Holdings LLC and Blackstone Administrative Services Partnership L.P. (incorporated
herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 filed with the SEC on
August 5, 2022).
10.121
 
Form of Aircraft Dry Lease Agreement between GH4 Partners LLC and Blackstone Administrative Services Partnership L.P. (incorporated herein
by reference to Exhibit 10.121 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on
February 23, 2024).
10.122+
 
Amended and Restated Limited Partnership Agreement of BXGA GP L.P., dated as of November 3, 2023 and deemed effective as of July 15, 2020
(incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023
filed with the SEC on November 3, 2023).
279

Table of Contents
10.123+
 
Amended and Restated Exempted Limited Partnership Agreement of BMA Asia II GP L.P., dated November 3, 2023 and deemed effective from
March 31, 2021 (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023 filed with the SEC on November 3, 2023).
10.124+
 
Second Amended and Restated Limited Partnership Agreement of Blackstone Clarus GP L.P., dated as of November 3, 2023 and deemed
effective as of November 30, 2018 (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2023 filed with the SEC on November 3, 2023).
10.125+
 
Amended and Restated Exempted Limited Partnership Agreement of BREA Asia III (Cayman) L.P., dated November 3, 2023 and deemed effective
from September 27, 2021 (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form 10-Q for the quarter
ended September 30, 2023 filed with the SEC on November 3, 2023).
10.126+
 
Amended and Restated Limited Partnership Agreement of BREA X (Delaware) L.P., dated as of November 3, 2023 and deemed effective as of
May 4, 2022 (incorporated herein by reference to Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023 filed with the SEC on November 3, 2023).
10.127+
 
Amended and Restated Limited Partnership Agreement of BTOA IV L.P., dated as of November 3, 2023 and deemed effective as of August 2,
2021 (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30,
2023 filed with the SEC on November 3, 2023).
10.128+
 
Amended and Restated Limited Partnership Agreement of BMA IX GP L.P., dated as of May 3, 2024. (incorporated herein by reference to
Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 filed with the SEC on May 3, 2024).
10.129
 
Amended and Restated Agreement of Exempted Limited Partnership of BREA Europe VII (Cayman) L.P., dated as of May 3, 2024 and deemed
effective as of June 30, 2023. (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024 filed with the SEC on May 3, 2024).
10.130+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates GP Solutions L.P., dated as of
November 1, 2024 and deemed effective as of June 16, 2021. (incorporated herein by reference to Exhibit 10.1 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.131+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Infrastructure IV L.P., dated November 1,
2024 and deemed effective as of December 11, 2023. (incorporated herein by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.132+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates IX L.P., dated as of November 1, 2024
and deemed effective as of October 7, 2021. (incorporated herein by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on
Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
280

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10.133+
 
Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Real Estate VIII L.P., dated as of
November 1, 2024 and deemed effective as of May 3, 2022. (incorporated herein by reference to Exhibit 10.4 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.134+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates – NC Real Asset Opportunities,
L.P., dated as of November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.5 to the
Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.135+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Infrastructure III L.P., dated as
of November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.6 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.136+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates RA II L.P., dated as of
November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.7 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.137+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Real Estate VI L.P., dated as of
November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.8 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.138+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates Real Estate VII L.P., dated as of
November 1, 2024 and deemed effective as of May 23, 2023 (incorporated herein by reference to Exhibit 10.9 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.139+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates VII L.P., dated as of
November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.10 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.140+
 
Second Amended and Restated Limited Partnership Agreement of Strategic Partners Fund Solutions Associates VIII L.P., dated as of
November 1, 2024 and deemed effective as of May 23, 2023. (incorporated herein by reference to Exhibit 10.11 to the Registrant’s Quarterly
Report on Form 10-Q for the quarter ended September 30, 2024 filed with the SEC on November 1, 2024).
10.141+
 
Amended and Restated Limited Partnership Agreement of Blackstone ETMA IV GP L.P., dated as of November 1, 2024 and deemed effective as
of June 4, 2024 (incorporated herein by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024 filed with the SEC on November 1, 2024).
10.142*+
 
Omnibus Amendment to Certain GP Carry Plan Governing Agreements, dated as of January 23, 2025 and deemed effective as of January 1,
2025.
10.143*+
 
Form of Omnibus Amendment to Deferred Unit and Phantom Unit Agreement under Blackstone Inc. Amended and Restated 2007 Equity
Incentive Plan.
10.144*+ 
Form of Deferred Unit Agreement under Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan (2024).
10.145*+ 
Form of Deferred Unit Agreement under Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan (Termination Vesting 2024).
10.146*
 
Form of Deferred Unit Agreement under Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan (Blackstone Inc. Board of
Directors).
281

Table of Contents
19.1*
 
Blackstone Inc. Securities Trading Policy and Procedures Governing Transactions in Blackstone Securities.
21.1*
 
Subsidiaries of the Registrant.
22.1*
 
Subsidiary Guarantors and Issuers of Registered Guaranteed Securities and Affiliates Whose Securities Collateralize Securities of the
Registrant.
23.1*
 
Consent of Deloitte & Touche LLP.
31.1*
 
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a).
31.2*
 
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a).
32.1**
 
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.
32.2**
 
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
97.1
 
Blackstone Inc. Incentive Compensation Clawback Policy (incorporated herein by reference to Exhibit 97.1 to the Registrant’s Annual Report on
Form 10-K for the year ended December 31, 2023 filed with the SEC on February 23, 2024).
99.1*
 
Section 13(r) Disclosure.
101.INS*  
Inline XBRL Instance Document.
101.SCH* 
Inline XBRL Taxonomy Extension Schema Document.
101.CAL* 
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF* 
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB* 
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE* 
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*
 
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
*
Filed herewith.
**
Furnished herewith.
+
Management contract or compensatory plan or arrangement in which directors or executive officers are eligible to participate.
282

Table of Contents
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with
respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations
and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and
may not describe the actual state of affairs as of the date they were made or at any other time.
Item 16.
Form 10-K Summary
None.
283

Table of Contents
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Date: February 28, 2025
Blackstone Inc.
 
/s/ Michael S. Chae
Name:  
Michael S. Chae
Title:  
Vice Chairman and Chief Financial Officer
 
(Principal Financial Officer and Authorized Signatory)
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the
registrant and in the capacities indicated on this 28th day of February, 2025.
/s/ Stephen A. Schwarzman
Stephen A. Schwarzman, Chief Executive Officer
and Chairman of the Board of Directors
(Principal Executive Officer)
  
/s/ James W. Breyer
James W. Breyer, Director
/s/ Jonathan D. Gray
Jonathan D. Gray, President, Chief Operating Officer and Director
  
/s/ Reginald J. Brown
Reginald J. Brown, Director
/s/ Michael S. Chae
Michael S. Chae, Vice Chairman and Chief Financial Officer
(Principal Financial Officer)
  
/s/ Rochelle B. Lazarus
Rochelle B. Lazarus, Director
/s/ David Payne
David Payne, Chief Accounting Officer
(Principal Accounting Officer)
  
/s/ William G. Parrett
William G. Parrett, Director
/s/ Joseph P. Baratta
Joseph P. Baratta, Director
  
/s/ Ruth Porat
Ruth Porat, Director
284

Exhibit 10.142
OMNIBUS AMENDMENT TO CERTAIN GP CARRY PLAN GOVERNING AGREEMENTS
DATED AS OF JANUARY 23, 2025
EFFECTIVE AS OF JANUARY 1, 2025
This OMNIBUS AMENDMENT TO CERTAIN GP CARRY PLAN GOVERNING AGREEMENTS (this “Agreement”) is made and entered into
as of the 23rd day of January 2025, and is effective as of January 1, 2025, by the Blackstone entities named on Schedule I hereto (collectively, the
“Blackstone Entities”) and their respective direct or indirect general partners and/or managing or sole members, as applicable (each, a “General
Partner”).
WHEREAS, in light of the continued growth and expansion of Blackstone’s general partner “carried interest” program (the “Program”),
Blackstone is implementing a carried interest service fee (the “Service Fee”) payable by each Program participant, following such participant’s departure
from Blackstone on or after January 1, 2025.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein made and intending to be legally bound, the parties hereto
hereby agree as follows:
1. That each General Partner hereby amends each of the limited partnership agreements and/or limited liability company agreements of the
Blackstone Entities of which such General Partner is general partner, managing or sole member, as applicable (such limited partnership agreements or
limited liability company agreements, the “Governing Agreements”) to give effect to the Service Fee (with the language set forth in Exhibit A being
added to each of the Governing Agreements) and that each General Partner hereby irrevocably waives any other impediment to the Service Fee imposed
by the Governing Agreements.
3. The undersigned further certifies, acknowledges and agrees that any party to the Governing Agreements and their counsel shall be entitled to
rely upon this instrument and the actions taken by the Blackstone Entities and their General Partners as set forth above, and that the General Partners
may do and perform any and all such other acts and things, to sign or make such other agreements, certificates, instruments, notices, requests, statements
and other documents and communications, and to take or omit such other actions necessary or desirable in order to perform or otherwise satisfy, in
whole or in part, any and all of the terms and provisions of this Agreement or to carry out the intent or purposes of the subject matter hereof.
4. With respect to each of the Blackstone Entities, it is the intention of the parties that this Agreement shall be governed by and construed in
accordance with the laws of the jurisdiction specified by the “Governing Law” paragraph of such Blackstone Entities’ Governing Agreement.
 
1

Agreed to and Acknowledged on the date set forth above on behalf of the Blackstone Entities referred to on Schedule I hereto, their respective General
Partners and all limited partners (or members) now and hereafter admitted to the Blackstone Entities pursuant to powers of attorney now and hereafter
granted to the respective General Partners:
Blackstone Holdings I L.P.
By: Blackstone Holdings I/II GP L.L.C., its general partner
Blackstone Holdings AI L.P.
By: Blackstone Holdings I/II GP L.L.C., its general partner
Blackstone Holdings II L.P.
By: Blackstone Holdings I/II GP L.L.C., its general partner
Blackstone Holdings III L.P.
By: Blackstone Holdings III GP L.P., its general partner
By: Blackstone Holdings III GP Management L.L.C., its general partner
Blackstone Holdings IV L.P.
By: Blackstone Holdings IV GP L.P., its general partner
By: Blackstone Holdings IV GP Management (Delaware) L.P., its general partner
By: Blackstone Holdings IV GP Management L.L.C., its general partner
Blackstone Family GP L.L.C.
 
By:  /s/ Tabea Hsi
 Name: Tabea Hsi
 Title: Senior Managing Director – Assistant Secretary
 
2

Exhibit A
Service Fee. In consideration of the services and expenses of each direct or indirect general partners and/or managing or sole members, as applicable
(each, for the purposes of this paragraph, a “General Partner”), each Limited Partner (or member) who ceases to be an employee or officer of Blackstone
on or after January 1, 2025 (such Limited Partner (or member), a “Former Blackstone Employee”) shall be subject to a service fee (the “Service Fee”).
The Service Fee will (i) apply to each distribution or payment in respect of or relating to “Carried Interest” made to Former Blackstone Employees
(including, for the avoidance of doubt, Limited Partners (or members) that become Former Blackstone Employees) attributable to “Carried Interest”
awards or allocations on investments made on or following January 1, 2025, (ii) initially be equal to 1% of each such amount to be distributed (or
otherwise paid) (or such greater or lesser amount as determined by the General Partner in its sole discretion from time to time), which amounts shall, for
the avoidance of doubt, be net of any other costs, fees, expenses and any reserves established, and prior to the withholding of Holdback amounts and
taxes (in each case, as calculated the General Partner in good faith), (iii) may be calculated and withheld out of distributions or payments as such
distributions or payments are made and/or shall be payable in arrears with respect to each Former Blackstone Employee, including by withholding from
subsequent distribution or payment amounts. For the avoidance of doubt, the Service Fee shall be in addition to each Former Blackstone Employee’s
commitments and other obligations to the “Partnership” or “Company” (as applicable). Each General Partner may waive the Service Fee, in whole or in
part, in its sole discretion with respect to any Former Blackstone Employee, and/or require that each Former Blackstone Employee to pay such Service
Fee directly or out of distributions or payments as noted above.
 
A-1

Schedule I
 
Blackstone CEMA II GP (CYM) L.P.
Blackstone CEMA II GP L.P.
BMA Asia II GP L.P.
BSCA II B GP L.P.
BSCA II GP L.P.
BREA Asia III (Cayman) L.P.
BREA Europe VII (Cayman) L.P.
BREA X (Delaware) L.P.
BREA X (Offshore) (Cayman) L.P.
BSCA III B GP L.P.
BSCA III GP L.P.
Strategic Partners Fund Solutions Associates GP Solutions L.P.
Strategic Partners Fund Solutions Associates Real Estate VIII L.P.
Strategic Partners Fund Solutions Associates Infrastructure Iv L.P.
Blackstone Infrastructure Associates (Cayman) NQ L.P.
BLACKSTONE INFRASTRUCTURE ASSOCIATES L.P.
Blackstone Infrastructure Associates Non-ECI L.P.
Blackstone Infrastructure Associates NQ L.P.
BREDS IV L.P.
BREDS IV-A L.P.
BREDS V L.P.
BREDS V-A L.P.
Blackstone Green Private Credit Associates III LP
Blackstone Senior Direct Lending Associates LP
Blackstone Rated Senior Direct Lending Associates LLC
Blackstone Technology Senior Direct Lending Associates LP
BXD-T CAYMAN GP LP
GSO Credit Alpha Diversified Alternatives Associates LLC
GSO CLO Opportunity Associates LLC
GSO Credit Alpha Associates LLC
GSO Credit Alpha Associates II LP
GSO Capital Opportunities Associates III LLC
GSO Capital Opportunities Associates IV LP
Blackstone Credit Series Fund-C Associates LLC
Blackstone European Private Credit Fund Associates L.P.
GSO Energy Partners-C Associates II LLC
GSO Energy Partners-D Associates LLC
GSO Energy Partners-E Associates LLC
GSO European Senior Debt Associates II LP
Blackstone European Senior Debt Associates III LP
GSO Energy Select Opportunities Associates II LP
 
A-2

G QCM Special LP
GSO Harrington Credit Alpha Associates L.L.C.
Blackstone Credit Hibiscus Associates LLC
GSO Orchid Associates LLC
GSO SFRO Associates LLC
Blackstone Alternative Credit Advisors LP
BMA IX GP L.P.
BMA IX GP (CYM) L.P.
BXLS Yield GP L.P.
Clarus IV GP, L.P.
BXLS VI GP L.P.
BXGA II GP (CYM) LP.
BXGA II GP LP.
Blackstone Strategic Alliance Associates IV L.L.C.
Blackstone Energy Transition Management Associates IV L.P.
Blackstone Strategic Capital Associates B L.L.C.
Blackstone Strategic Capital Associates L.L.C.
Blackstone Multi-Asset (Cayman) - NQ GP L.P.
Blackstone Multi-Asset GP II - NQ L.P.
Blackstone Multi-Asset GP L.P.
Blackstone ETMA IV GP (CYM) L.P.
Blackstone ETMA IV GP L.P.
Blackstone Tactical Opportunities Management Associates (Cayman) - NQ L.P. (GP)
Blackstone Tactical Opportunities Management Associates (Cayman) L.P. (GP)
BTO CR Fund Associates (Cayman) L.P.
BTOA II L.L.C. (GP)
BTOA III - NQ L.P. (BTOF Reporting GP)
BTOA L.L.C. (GP)
BTOA-NQ L.L.C. (GP)
Blackstone Tactical Opportunities Management Associates (Cayman) - NQ L.P. (GP) (BTOF III Reporting GP)
Blackstone Tactical Opportunities Management Associates (Cayman) L.P. (GP) (BTOF III Reporting GP)
Blackstone Tactical Opportunities Management Associates III (Cayman) - NQ L.P.
Blackstone Tactical Opportunities Management Associates III (Cayman) L.P.
BTOA III - NQ L.P.
BTOA III L.P.
BTOA L.L.C. (GP) (BTOF III Reporting GP)
BTOA-NQ L.L.C. (GP) (BTOF III Reporting GP)
Blackstone Tactical Opportunities Management Associates IV (CYM) - NQ L.P.
 
A-3

BTOA IV L.P.
Blackstone Tactical Opportunities Stable Income Management Associates (Cayman) - NQ L.P. (GP)
Blackstone Tactical Opportunities Stable Income Management Associates (Cayman) L.P. (GP)
BTOSIA - NQ L.L.C.
BTOSIA L.L.C.
BTOSIAO - NQ L.L.C.
 
A-4

Exhibit 10.143
FORM OF OMNIBUS AMENDMENT TO
DEFERRED UNIT AND PHANTOM UNIT AGREEMENTS UNDER
BLACKSTONE INC. AMENDED AND RESTATED
2007 EQUITY INCENTIVE PLAN (“AMENDMENT”)
(As adopted on     , effective as of    )
WHEREAS, Blackstone Inc. (the “Company”) previously granted to certain equity award recipients (each, a “Participant”) awards of deferred
units and/or phantom units (collectively, “Awarded Units”) relating to the Company’s Shares under the Company’s Amended and Restated 2007 Equity
Incentive Plan (as amended, restated, or modified from time to time, the “Plan”);
WHEREAS, the Plan Administrator has the authority to establish the terms and conditions of awards under the Plan, and to make certain
amendments with respect thereto;
WHEREAS, certain Participants currently hold unvested Awarded Units that remain outstanding pursuant to forms of award agreements covering
such Awarded Units (collectively, the “Award Agreements”);
WHEREAS, the Award Agreements currently provide for certain vesting benefits upon the occurrence of a Participant’s “Retirement” as defined
therein;
WHEREAS, the Administrator has determined to amend the Award Agreements to provide for additional vesting benefits in the event of an
“Enhanced Retirement” as defined herein; and
WHEREAS, capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Plan or the Award Agreements, as
applicable.
NOW, THEREFORE, effective as of April 1, 2025 (the “Effective Date”), the Company hereby amends the Award Agreements as follows:
1. “Enhanced Retirement” Definition. A new defined term “Enhanced Retirement” shall be incorporated into each Award Agreement, with the
following meaning:
“Enhanced Retirement” shall mean the Participant’s retirement from his or her Employment with the Company and its Affiliates after
(x) the Participant’s age plus years of service with the Company and its Affiliates totals at least 70, (y) the Participant has reached age 60,
and (z) the Participant has had a minimum of ten years of service.
2. Full Vesting Upon Enhanced Retirement. Each Award Agreement shall be amended to provide for the following in the event of the Participant’s
Enhanced Retirement:
Upon the occurrence of a Qualifying Event on account of the Enhanced Retirement of the Participant, 100% of the then unvested Awarded
Units shall remain eligible to vest upon each of the following scheduled Vesting Dates; provided that if, following the Participant’s
Enhanced Retirement, the Participant breaches any applicable provision of the Non-Competition, Non-Solicitation and Confidentiality
 
1

Agreement to which the Participant is a party or otherwise engages in any Competitive Activity, the Participant’s Awarded Units which
remain undelivered as of the date of such violation or engagement in Competitive Activity, as determined by the Administrator in its sole
discretion, will be forfeited without payment. As a pre-condition to a Participant’s right to continued vesting and delivery of the Awarded
Units following Enhanced Retirement, the Administrator may require the Participant to certify in writing prior to each scheduled Vesting
Date that the Participant has not breached any applicable provisions of the Participant’s Non-Competition, Non-Solicitation and
Confidentiality Agreement or otherwise engaged in any Competitive Activity. Shares (or the right to receive cash, if applicable) underlying
the Awarded Units that become vested pursuant to an Enhanced Retirement shall be delivered to the Participant on the same delivery
schedule as would be applicable in the case of a standard “Retirement” pursuant to the Award Agreement.
3. No Change to Standard Retirement Benefits. This Amendment shall have no impact on the provisions applicable under Award Agreements in
the case of a “Retirement” that does not also qualify as an Enhanced Retirement.
4. Remainder of Award Agreements. Except as specifically set forth in this Amendment, all other provisions of the Award Agreements shall remain
in full force and effect as originally set forth therein. By executing this Amendment, the Company neither waives nor relinquishes any right which arose
under or that relates to the terms of the Award Agreements prior to this Amendment.
5. Construction. On and after the Effective Date, each reference to the Award Agreements shall mean and be a reference to each such Award
Agreement as amended hereby, and this Amendment and each such Award Agreement shall be read together and construed as a single instrument.
[signature page follows]
 
2

IN WITNESS WHEREOF, the Company has executed this Amendment as set forth below.
 
BLACKSTONE INC.
By:  
 
Name:
Title:
 
3

Exhibit 10.144
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
 
Participant:
  Date of Grant:
Number of Deferred Units:
  
1. Grant of Deferred Units. The Company hereby grants the number of deferred units (the “Deferred Units”) listed above to the Participant (the
“Award”), effective as of the Date of Grant on the terms and conditions hereinafter set forth in this agreement, including any appendix, exhibit or
addendum hereto (the “Award Agreement”). This grant is made pursuant to the terms of Blackstone Inc. Amended and Restated 2007 Equity Incentive
Plan (as amended, modified or supplemented from time to time, the “Plan”), which is incorporated herein by reference and made a part of this Award
Agreement. Each Deferred Unit represents the unfunded, unsecured right of the Participant to receive a Common Share on the delivery date(s) specified
in Section 4 hereof.
2. Definitions. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.
(a) “Cause” shall mean the occurrence or existence of any of the following as determined fairly, reasonably, on an informed basis and in
good faith by the Administrator: (i) any breach by the Participant of any provision of the Non-Competition, Non-Solicitation and Confidentiality
Agreements to which the Participant is a party, (ii) any material breach of any rules or regulations of the Company or its Affiliates applicable to
the Participant, (iii) Participant’s deliberate failure to perform his or her duties to the Company or its Affiliates, (iv) Participant’s committing to or
engaging in any conduct or behavior that is or may be harmful to the Company or its Affiliates in a material way; (v) any act of fraud,
misappropriation, dishonesty, embezzlement or similar conduct against the Company or its Affiliates; or (vi) conviction (on the basis of a trial or
by an accepted plea of guilty or nolo contendere) of a felony or crime (including any misdemeanor charge involving moral turpitude, false
statements or misleading omissions, forgery, wrongful taking, embezzlement, extortion or bribery), or a determination by a court of competent
jurisdiction, by a regulatory body or by a self-regulatory body having authority with respect to securities laws, rules or regulations of the
applicable securities industry, that the Participant individually has violated any applicable securities laws or any rules or regulations thereunder, or
any rules of any such self-regulatory body (including, without limitation, any licensing requirement), if such conviction or determination has a
material adverse effect on (A) the Participant’s ability to function as an employee of the Company or its Affiliates, taking into account the
employment required of the Participant and the nature of the Company’s or its Affiliates’ business or (B) the business of the Company or its
Affiliates.
 
1

(b) “Common Share” shall mean a share of the Company’s Common Stock.
(c) “Competitive Activity” means the Participant’s engagement in any activity that would constitute a violation of any non-competition
covenants to which the Participant is subject under the Participant’s Employment Agreement, determined without regard to the actual duration of
such non-competition covenants pursuant to the Employment Agreement.
(d) “Employment Agreement” shall mean the Contracting Employee Agreement (including all schedules and exhibits thereto), entered into
between the Blackstone Administrative Services Partnership L.P. (or any of its or the Company’s Affiliates) and the Participant or, if the
Participant is or becomes a Senior Managing Director, the Senior Managing Director Agreement (including all schedules and exhibits thereto),
entered into between the Blackstone Holdings I L.P. (or any of its or the Company’s Affiliates) and the Participant.
(e) “Holdback Delivery Date” shall mean the second anniversary with respect to each Vesting Date (each such date, a “Scheduled Release
Date”); provided, however, that if the Participant terminates Employment prior to any such Scheduled Release Date, then the Holdback Delivery
Date applicable to all remaining Retention Units shall be the second anniversary of the date of the Participant’s termination of Employment.
(f) “Non-Competition, Non Solicitation and Confidentiality Agreement” shall mean any agreement, and any attachments or schedules
thereto, entered into by and between the Participant and the Company or its Affiliates, pursuant to which the Participant has agreed, among other
things, to certain restrictions relating to non-competition, non-solicitation and/or confidentiality, in order to protect the business of the Company
and its Affiliates.
(g) “Qualifying Event” shall mean, during the Participant’s Employment with the Company and its Affiliates, the Participant’s death,
Disability or Retirement.
(h) “Retirement” shall mean the retirement of the Participant from his or her Employment with the Company and its Affiliates after (i) the
Participant’s age plus years of service with the Company and its Affiliates totals at least 65, (ii) the Participant has reached age 55, and (iii) the
Participant has had a minimum of five years of service. Notwithstanding the forgoing, if the Participant retires from his or her Employment with
the Company and its Affiliates after (x) the Participant’s age plus years of service with the Company and its Affiliates totals at least 70, (y) the
Participant has reached age 60, and (z) the Participant has had a minimum of ten years of service, then such retirement shall also constitute an
“Enhanced Retirement” for purposes of this Award Agreement.
 
2

(i) “Retention Percentage” shall mean 25% of the vested units until the corresponding Holdback Delivery Date for each Vesting Date.
(j) “Retention Units” shall mean, on any given date, the Deferred Units that have become Vested Deferred Units and which are retained by
the Company (along with the underlying Common Shares) in accordance with Section 4 hereof.
(k) “Vested Deferred Units” shall mean those Deferred Units which have become vested pursuant to Section 3 or otherwise pursuant to the
Plan.
(l) “Vesting Dates” shall mean each of the First Vesting Date, the Second Vesting Date, the Third Vesting Date, the Fourth Vesting Date, and
the Fifth Vesting Date.
(m) “Vesting Reference Date” shall mean     .
3. Vesting.
(a) Vesting – General. Subject to the Participant’s continued Employment with the Company and its Affiliates, the Award shall vest on the
applicable Vesting Dates as follows:
(i)     % of the Deferred Units granted hereunder shall vest on the first anniversary of the Vesting Reference Date (the “First
Vesting Date”); an additional     % of the Deferred Units granted hereunder shall vest on the second anniversary of the Vesting
Reference Date (the “Second Vesting Date”); an additional     % of the Deferred Units granted hereunder shall vest on the third
anniversary of the Vesting Reference Date (the “Third Vesting Date”); an additional     % of the Deferred Units granted hereunder
shall vest on the fourth anniversary of the Vesting Reference Date (the “Fourth Vesting Date”); and the remaining     % of the
Deferred Units granted hereunder shall vest on the fifth anniversary of the Vesting Reference Date (the “Fifth Vesting Date”).
(b) Vesting – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the death or Disability of the Participant, 100% of
the Deferred Units granted hereunder shall vest (to the extent not previously vested) upon the date of such event.
(ii) Standard Retirement. Upon the occurrence of a Qualifying Event on account of the Retirement of the Participant that does not
constitute an Enhanced Retirement, (I) 50% of the then unvested Deferred Units shall remain eligible to vest upon each of the following
scheduled Vesting Dates, and (II) all other unvested Deferred Units shall be cancelled immediately and the Participant shall automatically
forfeit all rights with respect to such unvested Deferred Units upon the date of such event; provided that if,
 
3

following the Participant’s Retirement, the Participant breaches any applicable provision of the Non-Competition, Non-Solicitation and
Confidentiality Agreement to which the Participant is a party or otherwise engages in any Competitive Activity, the Participant’s Deferred
Units which remain undelivered as of the date of such violation or engagement in Competitive Activity, as determined by the
Administrator in its sole discretion, will be forfeited without payment. As a pre-condition to a Participant’s right to continued vesting and
delivery of the Deferred Units following Retirement, the Administrator may require the Participant to certify in writing prior to each
scheduled Vesting Date that the Participant has not breached any applicable provisions of the Participant’s Non-Competition,
Non-Solicitation and Confidentiality Agreement or otherwise engaged in any Competitive Activity.
(iii) Enhanced Retirement. Upon the occurrence of a Qualifying Event on account of the Enhanced Retirement of the Participant,
100% of the then unvested Deferred Units shall remain eligible to vest upon each of the following scheduled Vesting Dates; provided that
if, following the Participant’s Enhanced Retirement, the Participant breaches any applicable provision of the Non-Competition,
Non-Solicitation and Confidentiality Agreement to which the Participant is a party or otherwise engages in any Competitive Activity, the
Participant’s Deferred Units which remain undelivered as of the date of such violation or engagement in Competitive Activity, as
determined by the Administrator in its sole discretion, will be forfeited without payment. As a pre-condition to a Participant’s right to
continued vesting and delivery of the Deferred Units following Enhanced Retirement, the Administrator may require the Participant to
certify in writing prior to each scheduled Vesting Date that the Participant has not breached any applicable provisions of the Participant’s
Non-Competition, Non-Solicitation and Confidentiality Agreement or otherwise engaged in any Competitive Activity.
(c) Vesting –Terminations. Except as otherwise set forth in Section 3(b), in the event the Participant’s Employment with the Company and its
Affiliates is terminated for any reason, the portion of the Award that has not yet vested pursuant to Section 3(a) or 3(b) hereof (or otherwise
pursuant to the Plan) shall be cancelled immediately and the Participant shall automatically forfeit all rights with respect to such portion of the
Award as of the date of such termination.
4. Delivery.
(a) Delivery – General. The Company shall, on each applicable Vesting Date set forth below, deliver to the Participant the Common Shares
underlying the Deferred Units which vest and become Vested Deferred Units on such date; provided that on each such Vesting Date, the Company
shall retain, as Retention Units (and withhold the corresponding underlying Common Shares with respect thereto) a number of Vested Deferred
Units so that the aggregate number of Retention Units at such time (expressed as a percentage of the aggregate number of Deferred Units
 
4

awarded to the Participant which have vested as of such date) is equal to the applicable Retention Percentage. The Common Shares underlying
Retention Units will be delivered to the Participant as and when, and to the extent that, the number of Retention Units at any time exceeds the
applicable Retention Percentage, as illustrated in the table below, with the Common Shares underlying any remaining Retention Units delivered to
the Participant upon the corresponding Holdback Delivery Date.
 
 
  
Annual
Vesting
  
Cumulative
Vesting
  
Retention
Percentage   
Annual
Delivery
Percentage
First Vesting Date
  
  
  
  
Second Vesting Date
  
  
  
  
Third Vesting Date
  
  
  
  
Fourth Vesting Date
  
  
  
  
Fifth Vesting Date
  
  
  
  
(b) Delivery – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the Participant’s death or Disability, the Company
shall, within a reasonable time following the date of such event, deliver Common Shares to the Participant in respect of 100% of the
Deferred Units which vest and become Vested Deferred Units on such Date and any then outstanding Retention Units (to the extent not
previously delivered).
(ii) Retirement. Following the occurrence of a Qualifying Event on account of the Participant’s Retirement, the Company shall, on
each subsequent Vesting Date, deliver Common Shares to the Participant in respect of those Deferred Units which vest and become Vested
Deferred Units as of each following Vesting Date by application of Section 3(b)(ii) or Section 3(b)(iii), as applicable; provided that the
Company will retain such Retention Units as are necessary to meet the Retention Percentage until such requirement lapses upon the
corresponding Holdback Delivery Date(s).
(c) Delivery – Terminations. Except as otherwise set forth in Section 4(b) or 4(d), in the event the Participant’s Employment with the
Company and its Affiliates is terminated for any reason, the Company shall (i) within a reasonable time of such termination, deliver Common
Shares to the Participant in respect of the Vested Deferred Units as of such date that are not Retention Units (if any), and (ii) deliver Common
Shares to the Participant in respect of the Retention Units in accordance with the delivery schedule set forth in Section 4(a), until the
corresponding Holdback Delivery Date(s), at which point the remaining Retention Units shall be delivered to the Participant.
 
5

(d) Forfeiture – Cause Termination or Breach of Restrictive Covenants. Notwithstanding anything to the contrary herein, upon the
termination of the Participant’s Employment by the Company or any of its Affiliates for Cause or upon the Participant’s breach of any of the
restrictive covenants contained within an applicable Non-Competition, Non-Solicitation and Confidentiality Agreement, all outstanding Deferred
Units (whether or not vested) and Retention Units shall immediately terminate and be forfeited without consideration and no further Common
Shares with respect of the Award shall be delivered to the Participant or to the Participant’s legal representative, beneficiaries or heirs. Without
limiting the foregoing, any Common Shares that have previously been delivered to the Participant or the Participant’s legal representative,
beneficiaries or heirs pursuant to the Award and which are still held by the Participant or the Participant’s legal representative, or beneficiaries or
heirs as of the date of such termination for Cause or such breach, shall also immediately terminate and be forfeited without consideration.
5. Change in Control. Notwithstanding anything to the contrary herein, in the event of a Change in Control, (i) 100% of the Deferred Units granted
hereunder which then remain outstanding shall vest (to the extent not previously vested) upon the date of such Change in Control, and (ii) the Company
shall deliver Common Shares to the Participant at the same times as would otherwise be delivered pursuant to Section 4(a); provided, however, if such
Change in Control (or any subsequent Change in Control) would constitute “a change in the ownership or effective control” or a “change in the
ownership of a substantial portion of the assets” of the Company (in each case within the meaning of Section 409A of the Code), the Company shall
instead deliver Common Shares to the Participant in respect of 100% of the then outstanding Deferred Units and Retention Units (to the extent not
previously delivered) on or within 10 days following such Change in Control.
6. Distributions. If on any date while vested or unvested Deferred Units are outstanding hereunder any cash distributions shall be paid on the
Common Shares, the Participant shall be entitled to receive, as of such distribution date, a cash payment equal to the product of (a) the number of
Deferred Units, if any, held by the Participant as of the related distribution date, multiplied by (b) the per Common Share amount of such cash
distribution; provided, however, that the Company shall not be required to pay such distributions (and the Participant shall have no right to such
distributions) with respect to any unvested Deferred Units if the Participant has provided or received notice of pending termination of Employment on or
prior to such distribution date.
7. Adjustments Upon Certain Events. The Administrator shall, in its sole discretion, make certain substitutions or adjustments to any Retention
Units or Deferred Units subject to this Award Agreement pursuant to Section 9 of the Plan.
8. No Right to Continued Employment. The granting of the Deferred Units evidenced by this Award Agreement shall impose no obligation on the
Company or any Affiliate to continue the Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate
the Employment of such Participant.
 
6

9. No Rights of a Holder of Common Shares. Except as otherwise provided herein, the Participant shall not have any rights as a holder of
Common Shares until such Common Shares have been issued or transferred to the Participant.
10. Restrictions. Any Common Shares issued or transferred to the Participant pursuant to Section 4 of this Award Agreement shall be subject to
such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan or the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such Common Shares are listed and any applicable U.S. or non-U.S.
federal, state or local laws, and the Administrator may cause a notation or notations to be entered into the books and records of the Company to make
appropriate reference to such restrictions.
11. Transferability. Unless otherwise determined or approved by the Administrator, no Deferred Units or Retention Units may be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution,
and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 11 shall be void and
unenforceable against the Company or any Affiliate.
12. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing (including electronically) and shall be
given (and shall be deemed to have been duly given upon receipt) by delivery in person, by electronic means, by courier service, by fax, or by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 12):
(a) If to the Company, to:
Blackstone Inc.
345 Park Avenue
New York, New York, 10154
Attention: Chief Legal Officer
Fax:
(b) If to the Participant, to the address appearing in the personnel records of the Company or any Affiliate.
13. Withholding. The Participant may be required to pay to the Company or any Affiliate and the Company or any Affiliate shall have the right
and is hereby authorized to withhold from any issuance or transfer due under this Award Agreement or under the Plan or from any compensation or other
amount owing to the Participant, applicable withholding taxes with respect to any issuance or transfer under this Award Agreement or under the Plan and
to take such action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes, including,
without limitation, by reducing the number of Common Shares that would otherwise be transferred or issued pursuant to this Award Agreement. Without
limiting the foregoing, the Administrator may, from time to time, permit the Participant to make arrangements prior to any vesting date or delivery date
described herein to pay the applicable withholding taxes by remitting a check prior to the applicable vesting or delivery date.
 
7

14. Choice of Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the law of the State of New
York.
15. Subject to Plan. By entering into this Award Agreement, the Participant agrees and acknowledges that the Participant has received and read a
copy of the Plan. All Deferred Units, Retention Units and Common Shares issued or transferred with respect thereof are subject to the Plan. In the event
of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will
govern and prevail.
16. Nature of Grant. By accepting the Deferred Units, the Participant acknowledges, understands and agrees that:
(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or
terminated by the Company at any time;
(b) the grant of Deferred Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future
grants of Deferred Units or benefits in lieu of Deferred Units, even if Deferred Units have been granted in the past;
(c) all decisions with respect to future Deferred Units or other grants, if any, will be at the sole discretion of the Company;
(d) the Participant is voluntarily participating in the Plan;
(e) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not intended to replace any pension
rights or compensation;
(f) unless otherwise agreed with the Company, the Deferred Units and the underlying Common Shares, and the income from and value of
same, are not granted as consideration for, or in connection with, the service the Participant may provide as a director of any affiliate of the
Company;
(g) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not part of normal or expected
compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-
service awards, indemnification, pension or retirement or welfare benefits or similar payments, benefits or rights of any kind, and in no event
should be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any other Affiliate;
(h) the future value of the underlying Common Shares is unknown, indeterminable and cannot be predicted with certainty;
 
8

(i) no claim or entitlement to compensation or damages shall arise from the forfeiture of the Deferred Units resulting from the Participant’s
termination of Employment (for any reason whatsoever, whether or not later found to be invalid or in breach of employment or other laws in the
jurisdiction where the Participant is employed or otherwise rendering services, or the terms of his or her employment or service agreement, if
any); and
(j) for purposes of the Deferred Units, the Participant’s Employment will be considered terminated (regardless of the reason for such
termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or
otherwise rendering services or the terms of his or her employment or service agreement, if any) as of the date that is the earlier of (i) the date he
or she is no longer actively providing services to the Company or an Affiliate or (ii) the date he or she receives notice of termination of
Employment from the Company or Affiliate, and unless otherwise expressly provided in this Award Agreement or determined by the Company,
the Participant’s right to vest in the Deferred Units under the Plan, if any, will terminate as of such date and will not be extended by any notice
period (e.g., the Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period
mandated under employment laws in the jurisdiction where the Participant is employed or otherwise rendering services, or the terms of his or her
employment or service agreement, if any). The Administrator will have exclusive discretion to determine when the Participant is no longer
actively providing services for purposes of the Deferred Units.
17. Non-U.S. and Country Specific Provisions. If the Participant resides in a country outside the United States or its territories, or is otherwise
subject to the laws of a country other than the United States, the Deferred Units and any underlying Common Shares acquired under the Plan shall be
subject to the additional terms and conditions set forth in Appendix A and to the terms and conditions set forth in Appendix B for the Participant’s
country, if any. Moreover, if the Participant relocates outside the United States or its territories, the terms and conditions set forth in Appendices A and B
will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal
or administrative reasons.
18. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any
recommendations regarding the Participant’s participation in the Plan, or his or her acquisition or sale of the underlying Common Shares. The
Participant should consult with his or her own tax, legal, and financial advisors regarding participation in the Plan before taking any action related to the
Plan.
19. Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise
unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
20. Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or
be construed as a waiver of any other provision of the Award Agreement, or of any subsequent breach of this Award Agreement.
 
9

21. Entire Agreement. This Award Agreement contains the entire understanding between the parties with respect to the Deferred Units granted
hereunder (including, without limitation, the vesting and delivery schedules described herein), and hereby replaces and supersedes any prior
communication and arrangements between the Participant and the Company or any of its Affiliates with respect to the matters set forth herein and any
other pre-existing economic or other arrangements between the Participant and the Company or any of its Affiliates.
22. Modifications. Notwithstanding any provision of this Award Agreement to the contrary, the Company reserves the right to modify the terms
and conditions of this Award Agreement, including, without limitation, the timing or circumstances of the issuance or transfer of Common Shares to the
Participant hereunder, to the extent such modification is determined by the Company to be necessary or advisable for legal or administrative reasons or
to preserve the intended deferral of income recognition with respect to the Deferred Units and Retention Units until the issuance or transfer of Common
Shares hereunder.
23. Electronic Delivery and Acceptance. The Company, in its sole discretion, may decide to deliver any documents related to current or future
participation in the Plan by electronic means. Electronic delivery of a document to the Participant may be via a Company e-mail system, an online or
electronic system established and maintained by a third party administrator of the Plan, or by reference to a location on a Company intranet site to which
the Participant has access. The Participant hereby agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the
Company desires or may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and
agreements, account statements, annual and quarterly reports, and all other agreements, forms and communications), in connection with this and any
other prior or future incentive award or program offered by the Company and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or a third party designated by the Company.
24. Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.
[Signatures on next page.]
 
10

IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement.
 
BLACKSTONE INC.
  
Name:
THE PARTICIPANT1
  
Name:
 
1 
To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this award
electronically, such acceptance shall constitute Participant’s signature hereof.
 
11

APPENDIX A
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
ADDITIONAL TERMS AND CONDITIONS
FOR PARTICIPANTS OUTSIDE THE UNITED STATES
 
A-1

APPENDIX B
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
COUNTRY-SPECIFIC TERMS AND CONDITIONS
 
B-1

Exhibit 10.145
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
 
Participant:
  Date of Grant:
Number of Deferred Units:
  
1. Grant of Deferred Units. The Company hereby grants the number of deferred units (the “Deferred Units”) listed above to the Participant (the
“Award”), effective as of the Date of Grant on the terms and conditions hereinafter set forth in this agreement, including any appendix, exhibit or
addendum hereto (the “Award Agreement”). This grant is made pursuant to the terms of Blackstone Inc. Amended and Restated 2007 Equity Incentive
Plan (as amended, modified or supplemented from time to time, the “Plan”), which is incorporated herein by reference and made a part of this Award
Agreement. Each Deferred Unit represents the unfunded, unsecured right of the Participant to receive a Common Share on the delivery date(s) specified
in Section 4 hereof.
2. Definitions. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.
(a) “Cause” shall mean the occurrence or existence of any of the following as determined fairly, reasonably, on an informed basis and in
good faith by the Administrator: (i) any breach by the Participant of any provision of the Non-Competition, Non-Solicitation and Confidentiality
Agreements to which the Participant is a party, (ii) any material breach of any rules or regulations of the Company or its Affiliates applicable to
the Participant, (iii) Participant’s deliberate failure to perform his or her duties to the Company or its Affiliates, (iv) Participant’s committing to or
engaging in any conduct or behavior that is or may be harmful to the Company or its Affiliates in a material way; (v) any act of fraud,
misappropriation, dishonesty, embezzlement or similar conduct against the Company or its Affiliates; or (vi) conviction (on the basis of a trial or
by an accepted plea of guilty or nolo contendere) of a felony or crime (including any misdemeanor charge involving moral turpitude, false
statements or misleading omissions, forgery, wrongful taking, embezzlement, extortion or bribery), or a determination by a court of competent
jurisdiction, by a regulatory body or by a self-regulatory body having authority with respect to securities laws, rules or regulations of the
applicable securities industry, that the Participant individually has violated any applicable securities laws or any rules or regulations thereunder, or
any rules of any such self-regulatory body (including, without limitation, any licensing requirement), if such conviction or determination has a
material adverse effect on (A) the Participant’s ability to function as an employee of the Company or its Affiliates, taking into account the
employment required of the Participant and the nature of the Company’s or its Affiliates’ business or (B) the business of the Company or its
Affiliates.
 
1

(b) “Common Share” shall mean a share of the Company’s Common Stock.
(c) “Competitive Activity” means the Participant’s engagement in any activity that would constitute a violation of any non-competition
covenants to which the Participant is subject under the Participant’s Employment Agreement, determined without regard to the actual duration of
such non-competition covenants pursuant to the Employment Agreement.
(d) “Employment Agreement” shall mean the Contracting Employee Agreement (including all schedules and exhibits thereto), entered into
between the Blackstone Administrative Services Partnership L.P. (or any of its or the Company’s Affiliates) and the Participant or, if the
Participant is or becomes a Senior Managing Director, the Senior Managing Director Agreement (including all schedules and exhibits thereto),
entered into between the Blackstone Holdings I L.P. (or any of its or the Company’s Affiliates) and the Participant.
(e) “Holdback Delivery Date” shall mean the second anniversary with respect to each Vesting Date (each such date, a “Scheduled Release
Date”); provided, however, that if the Participant terminates Employment prior to any such Scheduled Release Date, then the Holdback Delivery
Date applicable to all remaining Retention Units shall be the second anniversary of the date of the Participant’s termination of Employment.
(f) “Involuntary Termination” shall mean the Company and its Affiliates have terminated the Employment of the Participant without Cause
(and in the absence of the Participant’s Disability).
(g) “Non-Competition, Non Solicitation and Confidentiality Agreement” shall mean any agreement, and any attachments or schedules
thereto, entered into by and between the Participant and the Company or its Affiliates, pursuant to which the Participant has agreed, among other
things, to certain restrictions relating to non-competition, non-solicitation and/or confidentiality, in order to protect the business of the Company
and its Affiliates.
(h) “Qualifying Event” shall mean, during the Participant’s Employment with the Company and its Affiliates, the Participant’s death,
Disability, Retirement or Involuntary Termination.
(i) “Retirement” shall mean the retirement of the Participant from his or her Employment with the Company and its Affiliates after (i) the
Participant’s age plus years of service with the Company and its Affiliates totals at least 65, (ii) the Participant has reached age 55, and (iii) the
Participant has had a minimum of five years of service. Notwithstanding the forgoing, if the Participant retires from his or her Employment with
the Company and its Affiliates after (x) the Participant’s age plus years of service with the Company and its Affiliates totals at least 70, (y) the
Participant has reached age 60, and (z) the Participant has had a minimum of ten years of service, then such retirement shall also constitute an
“Enhanced Retirement” for purposes of this Award Agreement.
 
2

(j) “Retention Percentage” shall mean 25% of the vested units until the corresponding Holdback Delivery Date for each Vesting Date.
(k) “Retention Units” shall mean, on any given date, the Deferred Units that have become Vested Deferred Units and which are retained by
the Company (along with the underlying Common Shares) in accordance with Section 4 hereof.
(l) “Vested Deferred Units” shall mean those Deferred Units which have become vested pursuant to Section 3 or otherwise pursuant to the
Plan.
(m) “Vesting Dates” shall mean each of the First Vesting Date, the Second Vesting Date, the Third Vesting Date, the Fourth Vesting Date,
and the Fifth Vesting Date.
(n) “Vesting Reference Date” shall mean     .
3. Vesting.
(a) Vesting – General. Subject to the Participant’s continued Employment with the Company and its Affiliates, the Award shall vest on the
applicable Vesting Dates as follows:
(i)     % of the Deferred Units granted hereunder shall vest on the first anniversary of the Vesting Reference Date (the “First Vesting
Date”); an additional     % of the Deferred Units granted hereunder shall vest on the second anniversary of the Vesting Reference Date (the
“Second Vesting Date”); an additional     % of the Deferred Units granted hereunder shall vest on the third anniversary of the Vesting
Reference Date (the “Third Vesting Date”); an additional     % of the Deferred Units granted hereunder shall vest on the fourth anniversary
of the Vesting Reference Date (the “Fourth Vesting Date”); and the remaining     % of the Deferred Units granted hereunder shall vest on
the fifth anniversary of the Vesting Reference Date (the “Fifth Vesting Date”).
(b) Vesting – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the death or Disability of the Participant, 100% of
the Deferred Units granted hereunder shall vest (to the extent not previously vested) upon the date of such event.
(ii) Involuntary Termination. Upon the occurrence of a Qualifying Event on account of the Involuntary Termination of the
Participant, 100% of the then unvested Deferred Units shall remain eligible to vest upon each of the following scheduled Vesting Dates.
 
3

(iii) Standard Retirement. Upon the occurrence of a Qualifying Event on account of the Retirement of the Participant that does not
constitute an Enhanced Retirement, (I) 50% of the then unvested Deferred Units shall remain eligible to vest upon each of the following
scheduled Vesting Dates, and (II) all other unvested Deferred Units shall be cancelled immediately and the Participant shall automatically
forfeit all rights with respect to such unvested Deferred Units upon the date of such event; provided that if, following the Participant’s
Retirement, the Participant breaches any applicable provision of the Non-Competition, Non-Solicitation and Confidentiality Agreement to
which the Participant is a party or otherwise engages in any Competitive Activity, the Participant’s Deferred Units which remain
undelivered as of the date of such violation or engagement in Competitive Activity, as determined by the Administrator in its sole
discretion, will be forfeited without payment. As a pre-condition to a Participant’s right to continued vesting and delivery of the Deferred
Units following Retirement, the Administrator may require the Participant to certify in writing prior to each scheduled Vesting Date that
the Participant has not breached any applicable provisions of the Participant’s Non-Competition, Non-Solicitation and Confidentiality
Agreement or otherwise engaged in any Competitive Activity.
(iv) Enhanced Retirement. Upon the occurrence of a Qualifying Event on account of the Enhanced Retirement of the Participant,
100% of the then unvested Deferred Units shall remain eligible to vest upon each of the following scheduled Vesting Dates; provided that
if, following the Participant’s Enhanced Retirement, the Participant breaches any applicable provision of the Non-Competition,
Non-Solicitation and Confidentiality Agreement to which the Participant is a party or otherwise engages in any Competitive Activity, the
Participant’s Deferred Units which remain undelivered as of the date of such violation or engagement in Competitive Activity, as
determined by the Administrator in its sole discretion, will be forfeited without payment. As a pre-condition to a Participant’s right to
continued vesting and delivery of the Deferred Units following Enhanced Retirement, the Administrator may require the Participant to
certify in writing prior to each scheduled Vesting Date that the Participant has not breached any applicable provisions of the Participant’s
Non-Competition, Non-Solicitation and Confidentiality Agreement or otherwise engaged in any Competitive Activity.
(c) Vesting –Terminations. Except as otherwise set forth in Section 3(b), in the event the Participant’s Employment with the Company and its
Affiliates is terminated for any reason, the portion of the Award that has not yet vested pursuant to Section 3(a) or 3(b) hereof (or otherwise
pursuant to the Plan) shall be cancelled immediately and the Participant shall automatically forfeit all rights with respect to such portion of the
Award as of the date of such termination.
 
4

4. Delivery.
(a) Delivery – General. The Company shall, on each applicable Vesting Date set forth below, deliver to the Participant the Common Shares
underlying the Deferred Units which vest and become Vested Deferred Units on such date; provided that on each such Vesting Date, the Company
shall retain, as Retention Units (and withhold the corresponding underlying Common Shares with respect thereto) a number of Vested Deferred
Units so that the aggregate number of Retention Units at such time (expressed as a percentage of the aggregate number of Deferred Units awarded
to the Participant which have vested as of such date) is equal to the applicable Retention Percentage. The Common Shares underlying Retention
Units will be delivered to the Participant as and when, and to the extent that, the number of Retention Units at any time exceeds the applicable
Retention Percentage, as illustrated in the table below, with the Common Shares underlying any remaining Retention Units delivered to the
Participant upon the corresponding Holdback Delivery Date.
 
 
  
Annual
Vesting
  
Cumulative
Vesting
  
Retention
Percentage
  
Annual
Delivery
Percentage
First Vesting Date
  
  
  
  
Second Vesting Date
  
  
  
  
Third Vesting Date
  
  
  
  
Fourth Vesting Date
  
  
  
  
Fifth Vesting Date
  
  
  
  
(b) Delivery – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the Participant’s death or Disability, the Company
shall, within a reasonable time following the date of such event, deliver Common Shares to the Participant in respect of 100% of the
Deferred Units which vest and become Vested Deferred Units on such Date and any then outstanding Retention Units (to the extent not
previously delivered).
(ii) Involuntary Termination. Upon the occurrence of a Qualifying Event on account of the Participant’s Involuntary Termination, the
Company shall, on each subsequent Vesting Date following the date of such event, deliver Common Shares to the Participant in respect of
those Deferred Units which vest and become Vested Deferred Units as of each following Vesting Date by application of Section 3(b)(ii);
provided that the Company will retain such Retention Units as are necessary to meet the Retention Percentage until such requirement
lapses upon the corresponding Holdback Delivery Dates(s).
 
5

(iii) Retirement. Following the occurrence of a Qualifying Event on account of the Participant’s Retirement, the Company shall, on
each subsequent Vesting Date, deliver Common Shares to the Participant in respect of those Deferred Units which vest and become Vested
Deferred Units as of each following Vesting Date by application of Section 3(b)(iii) or Section 3(b)(iv), as applicable; provided that the
Company will retain such Retention Units as are necessary to meet the Retention Percentage until such requirement lapses upon the
corresponding Holdback Delivery Date(s).
(c) Delivery – Terminations. Except as otherwise set forth in Section 4(b) or 4(d), in the event the Participant’s Employment with the
Company and its Affiliates is terminated for any reason, the Company shall (i) within a reasonable time of such termination, deliver Common
Shares to the Participant in respect of the Vested Deferred Units as of such date that are not Retention Units (if any), and (ii) deliver Common
Shares to the Participant in respect of the Retention Units in accordance with the delivery schedule set forth in Section 4(a), until the
corresponding Holdback Delivery Date(s), at which point the remaining Retention Units shall be delivered to the Participant.
(d) Forfeiture – Cause Termination or Breach of Restrictive Covenants. Notwithstanding anything to the contrary herein, upon the
termination of the Participant’s Employment by the Company or any of its Affiliates for Cause or upon the Participant’s breach of any of the
restrictive covenants contained within an applicable Non-Competition, Non-Solicitation and Confidentiality Agreement, all outstanding Deferred
Units (whether or not vested) and Retention Units shall immediately terminate and be forfeited without consideration and no further Common
Shares with respect of the Award shall be delivered to the Participant or to the Participant’s legal representative, beneficiaries or heirs. Without
limiting the foregoing, any Common Shares that have previously been delivered to the Participant or the Participant’s legal representative,
beneficiaries or heirs pursuant to the Award and which are still held by the Participant or the Participant’s legal representative, or beneficiaries or
heirs as of the date of such termination for Cause or such breach, shall also immediately terminate and be forfeited without consideration.
5. Change in Control. Notwithstanding anything to the contrary herein, in the event of a Change in Control, (i) 100% of the Deferred Units granted
hereunder which then remain outstanding shall vest (to the extent not previously vested) upon the date of such Change in Control, and (ii) the Company
shall deliver Common Shares to the Participant at the same times as would otherwise be delivered pursuant to Section 4(a); provided, however, if such
Change in Control (or any subsequent Change in Control) would constitute “a change in the ownership or effective control” or a “change in the
ownership of a substantial portion of the assets” of the Company (in each case within the meaning of Section 409A of the Code), the Company shall
instead deliver Common Shares to the Participant in respect of 100% of the then outstanding Deferred Units and Retention Units (to the extent not
previously delivered) on or within 10 days following such Change in Control.
 
6

6. Distributions. If on any date while vested or unvested Deferred Units are outstanding hereunder any cash distributions shall be paid on the
Common Shares, the Participant shall be entitled to receive, as of such distribution date, a cash payment equal to the product of (a) the number of
Deferred Units, if any, held by the Participant as of the related distribution date, multiplied by (b) the per Common Share amount of such cash
distribution; provided, however, that the Company shall not be required to pay such distributions (and the Participant shall have no right to such
distributions) with respect to any unvested Deferred Units if the Participant has provided or received notice of pending termination of Employment on or
prior to such distribution date.
7. Adjustments Upon Certain Events. The Administrator shall, in its sole discretion, make certain substitutions or adjustments to any Retention
Units or Deferred Units subject to this Award Agreement pursuant to Section 9 of the Plan.
8. No Right to Continued Employment. The granting of the Deferred Units evidenced by this Award Agreement shall impose no obligation on the
Company or any Affiliate to continue the Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate
the Employment of such Participant.
9. No Rights of a Holder of Common Shares. Except as otherwise provided herein, the Participant shall not have any rights as a holder of
Common Shares until such Common Shares have been issued or transferred to the Participant.
10. Restrictions. Any Common Shares issued or transferred to the Participant pursuant to Section 4 of this Award Agreement shall be subject to
such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan or the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such Common Shares are listed and any applicable U.S. or non-U.S.
federal, state or local laws, and the Administrator may cause a notation or notations to be entered into the books and records of the Company to make
appropriate reference to such restrictions.
11. Transferability. Unless otherwise determined or approved by the Administrator, no Deferred Units or Retention Units may be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution,
and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 11 shall be void and
unenforceable against the Company or any Affiliate.
12. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing (including electronically) and shall be
given (and shall be deemed to have been duly given upon receipt) by delivery in person, by electronic means, by courier service, by fax, or by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 12):
 
7

 
(a)
If to the Company, to:
Blackstone Inc.
345 Park Avenue
New York, New York, 10154
Attention: Chief Legal Officer
Fax:
 
 
(b)
If to the Participant, to the address appearing in the personnel records of the Company or any Affiliate.
13. Withholding. The Participant may be required to pay to the Company or any Affiliate and the Company or any Affiliate shall have the right
and is hereby authorized to withhold from any issuance or transfer due under this Award Agreement or under the Plan or from any compensation or other
amount owing to the Participant, applicable withholding taxes with respect to any issuance or transfer under this Award Agreement or under the Plan and
to take such action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes, including,
without limitation, by reducing the number of Common Shares that would otherwise be transferred or issued pursuant to this Award Agreement. Without
limiting the foregoing, the Administrator may, from time to time, permit the Participant to make arrangements prior to any vesting date or delivery date
described herein to pay the applicable withholding taxes by remitting a check prior to the applicable vesting or delivery date.
14. Choice of Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the law of the State of New
York.
15. Subject to Plan. By entering into this Award Agreement, the Participant agrees and acknowledges that the Participant has received and read a
copy of the Plan. All Deferred Units, Retention Units and Common Shares issued or transferred with respect thereof are subject to the Plan. In the event
of a conflict between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will
govern and prevail.
16. Nature of Grant. By accepting the Deferred Units, the Participant acknowledges, understands and agrees that:
(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated
by the Company at any time;
(b) the grant of Deferred Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future
grants of Deferred Units or benefits in lieu of Deferred Units, even if Deferred Units have been granted in the past;
 
8

(c) all decisions with respect to future Deferred Units or other grants, if any, will be at the sole discretion of the Company;
(d) the Participant is voluntarily participating in the Plan;
(e) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not intended to replace any pension
rights or compensation;
(f) unless otherwise agreed with the Company, the Deferred Units and the underlying Common Shares, and the income from and value of same,
are not granted as consideration for, or in connection with, the service the Participant may provide as a director of any affiliate of the Company;
(g) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not part of normal or expected
compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-
service awards, indemnification, pension or retirement or welfare benefits or similar payments, benefits or rights of any kind, and in no event should
be considered as compensation for, or relating in any way to, past services for the Company, the Employer or any other Affiliate;
(h) the future value of the underlying Common Shares is unknown, indeterminable and cannot be predicted with certainty;
(i) no claim or entitlement to compensation or damages shall arise from the forfeiture of the Deferred Units resulting from the Participant’s
termination of Employment (for any reason whatsoever, whether or not later found to be invalid or in breach of employment or other laws in the
jurisdiction where the Participant is employed or otherwise rendering services, or the terms of his or her employment or service agreement, if any);
and
(j) for purposes of the Deferred Units, the Participant’s Employment will be considered terminated (regardless of the reason for such
termination and whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the Participant is employed or
otherwise rendering services or the terms of his or her employment or service agreement, if any) as of the date that is the earlier of (i) the date he or
she is no longer actively providing services to the Company or an Affiliate or (ii) the date he or she receives notice of termination of Employment
from the Company or Affiliate, and unless otherwise expressly provided in this Award Agreement or determined by the Company, the Participant’s
right to vest in the Deferred Units under the Plan, if any, will terminate as of such date and will not be extended by any notice period (e.g., the
Participant’s period of service would not include any contractual notice period or any period of “garden leave” or similar period mandated under
employment laws in the jurisdiction where the Participant is employed or otherwise rendering services, or the terms of his or her employment or
service agreement, if any). The Administrator will have exclusive discretion to determine when the Participant is no longer actively providing
services for purposes of the Deferred Units.
 
9

17. Non-U.S. and Country Specific Provisions. If the Participant resides in a country outside the United States or its territories, or is otherwise
subject to the laws of a country other than the United States, the Deferred Units and any underlying Common Shares acquired under the Plan shall be
subject to the additional terms and conditions set forth in Appendix A and to the terms and conditions set forth in Appendix B for the Participant’s
country, if any. Moreover, if the Participant relocates outside the United States or its territories, the terms and conditions set forth in Appendices A and B
will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal
or administrative reasons.
18. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any
recommendations regarding the Participant’s participation in the Plan, or his or her acquisition or sale of the underlying Common Shares. The
Participant should consult with his or her own tax, legal, and financial advisors regarding participation in the Plan before taking any action related to the
Plan.
19. Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise
unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
20. Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or
be construed as a waiver of any other provision of the Award Agreement, or of any subsequent breach of this Award Agreement.
21. Entire Agreement. This Award Agreement contains the entire understanding between the parties with respect to the Deferred Units granted
hereunder (including, without limitation, the vesting and delivery schedules described herein), and hereby replaces and supersedes any prior
communication and arrangements between the Participant and the Company or any of its Affiliates with respect to the matters set forth herein and any
other pre-existing economic or other arrangements between the Participant and the Company or any of its Affiliates.
22. Modifications. Notwithstanding any provision of this Award Agreement to the contrary, the Company reserves the right to modify the terms
and conditions of this Award Agreement, including, without limitation, the timing or circumstances of the issuance or transfer of Common Shares to the
Participant hereunder, to the extent such modification is determined by the Company to be necessary or advisable for legal or administrative reasons or
to preserve the intended deferral of income recognition with respect to the Deferred Units and Retention Units until the issuance or transfer of Common
Shares hereunder.
23. Electronic Delivery and Acceptance. The Company, in its sole discretion, may decide to deliver any documents related to current or future
participation in the Plan by electronic means. Electronic delivery of a document to the Participant may be via a Company e-mail system, an online or
electronic system established and maintained by a third party administrator of the Plan, or by reference to a location on a Company intranet site to which
the Participant has access. The Participant hereby agrees, to the fullest extent
 
10

permitted by law, to accept electronic delivery of any documents that the Company desires or may be required to deliver (including, but not limited to,
prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other
agreements, forms and communications), in connection with this and any other prior or future incentive award or program offered by the Company and
agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the
Company.
24. Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.
[Signatures on next page.]
 
11

IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement.
 
BLACKSTONE INC.
  
Name:
THE PARTICIPANT1
  
Name:
 
1 
To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this award
electronically, such acceptance shall constitute Participant’s signature hereof.
 
12

APPENDIX A
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
ADDITIONAL TERMS AND CONDITIONS
FOR PARTICIPANTS OUTSIDE THE UNITED STATES
 
A-1

APPENDIX B
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
COUNTRY-SPECIFIC TERMS AND CONDITIONS
 
B-1

Exhibit 10.146
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
 
Participant:
  Date of Grant:
Number of Deferred Units:
  
1. Grant of Deferred Units. The Company hereby grants the number of deferred units (the “Deferred Units”) listed above to the Participant (the
“Award”), effective as of the Date of Grant on the terms and conditions hereinafter set forth in this agreement, including any appendix, exhibit or
addendum hereto (the “Award Agreement”). This grant is made pursuant to the terms of the Blackstone Inc. Amended and Restated 2007 Equity
Incentive Plan (as amended, modified or supplemented from time to time, the “Plan”), which is incorporated herein by reference and made a part of this
Award Agreement. Each Deferred Unit represents the unfunded, unsecured right of the Participant to receive a Common Share on the delivery date(s)
specified in Section 4 hereof.
2. Definitions. Capitalized terms not otherwise defined herein shall have the same meanings as in the Plan.
(a) “Cause” shall mean the occurrence or existence of any of the following as determined fairly, reasonably, on an informed basis and in
good faith by the Administrator: (i) any material breach of any rules or regulations of the Company or its Affiliates applicable to the Participant,
(ii) Participant’s deliberate failure to perform his or her duties to the Company or its Affiliates, (iii) Participant’s committing to or engaging in any
conduct or behavior that is or may be harmful to the Company or its Affiliates in a material way; (iv) any act of fraud, misappropriation,
dishonesty, embezzlement or similar conduct against the Company or its Affiliates; or (v) conviction (on the basis of a trial or by an accepted plea
of guilty or nolo contendere) of a felony or crime (including any misdemeanor charge involving moral turpitude, false statements or misleading
omissions, forgery, wrongful taking, embezzlement, extortion or bribery), or a determination by a court of competent jurisdiction, by a regulatory
body or by a self-regulatory body having authority with respect to securities laws, rules or regulations of the applicable securities industry, that the
Participant individually has violated any applicable securities laws or any rules or regulations thereunder, or any rules of any such self-regulatory
body (including, without limitation, any licensing requirement), if such conviction or determination has a material adverse effect on (A) the
Participant’s ability to function as a director of the Company or its Affiliates, taking into account the duties and responsibilities required of the
Participant and the nature of the Company’s or its Affiliates’ business or (B) the business of the Company or its Affiliates.
 
1

(b) “Common Share” shall mean a share of the Company’s Common Stock.
(c) “Qualifying Event” shall mean, during the Participant’s Employment with the Company and its Affiliates, the Participant’s death,
Disability or Retirement.
(d) “Retirement” shall mean the retirement of the Participant from his or her Employment with the Company and its Affiliates after (i) the
Participant’s age plus years of service with the Company and its Affiliates totals at least 65, (ii) the Participant has reached age 55, and (iii) the
Participant has had a minimum of five years of service. Notwithstanding the forgoing, if the Participant retires from his or her Employment with
the Company and its Affiliates after (x) the Participant’s age plus years of service with the Company and its Affiliates totals at least 70, (y) the
Participant has reached age 60, and (z) the Participant has had a minimum of ten years of service, then such retirement shall also constitute an
“Enhanced Retirement” for purposes of this Award Agreement.
(e) “Vested Deferred Units” shall mean those Deferred Units which have become vested pursuant to Section 3 or otherwise pursuant to the
Plan.
(f) “Vesting Date” shall mean the first anniversary of the Vesting Reference Date.
(g) “Vesting Reference Date” shall mean     .
3. Vesting.
(a) Vesting – General. Subject to the Participant’s continued Employment with the Company and its Affiliates, the entire Award shall cliff
vest on the Vesting Date.
(b) Vesting – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the death or Disability of the Participant, 100% of
the Deferred Units granted hereunder shall vest (to the extent not previously vested) upon the date of such event.
(ii) Standard Retirement. Upon the occurrence of a Qualifying Event on account of the Retirement of the Participant that does not
constitute an Enhanced Retirement, (I) 50% of the then unvested Deferred Units shall remain eligible to vest upon the Vesting Date, and
(II) all other unvested Deferred Units shall be cancelled immediately and the Participant shall automatically forfeit all rights with respect
to such unvested Deferred Units upon the date of such event.
(iii) Enhanced Retirement. Upon the occurrence of a Qualifying Event on account of the Enhanced Retirement of the Participant,
100% of the then unvested Deferred Units shall remain eligible to vest upon the Vesting Date.
(c) Vesting –Terminations. Except as otherwise set forth in Section 3(b), in the event the Participant’s Employment with the Company and its
Affiliates is terminated for any reason, the portion of the Award that has not yet vested pursuant to Section 3(a) or 3(b) hereof (or otherwise
pursuant to the Plan) shall be cancelled immediately and the Participant shall automatically forfeit all rights with respect to such portion of the
Award as of the date of such termination.
 
2

4. Delivery.
(a) Delivery – General. The Company shall, on the Vesting Date, deliver to the Participant the Common Shares underlying the Deferred
Units which vest and become Vested Deferred Units on such date.
(b) Delivery – Qualifying Events.
(i) Death or Disability. Upon the occurrence of a Qualifying Event on account of the Participant’s death or Disability, the Company
shall, within a reasonable time following the date of such event, deliver Common Shares to the Participant in respect of 100% of the
Deferred Units which vest and become Vested Deferred Units on such date.
(ii) Retirement. Following the occurrence of a Qualifying Event on account of the Participant’s Retirement, the Company shall, on
the Vesting Date, deliver Common Shares to the Participant in respect of those Deferred Units which vest and become Vested Deferred
Units as of the Vesting Date by application of Section 3(b)(ii) or Section 3(b)(iii), as applicable.
(c) Delivery – Terminations. Except as otherwise set forth in Section 4(b) or 4(d), in the event the Participant’s Employment with the
Company and its Affiliates is terminated for any reason, the Company shall (i) within a reasonable time of such termination, deliver Common
Shares to the Participant in respect of the Vested Deferred Units as of such date.
(d) Forfeiture – Cause Termination. Notwithstanding anything to the contrary herein, upon the termination of the Participant’s Employment
by the Company or any of its Affiliates for Cause, all outstanding Deferred Units (whether or not vested) shall immediately terminate and be
forfeited without consideration and no further Common Shares with respect of the Award shall be delivered to the Participant or to the
Participant’s legal representative, beneficiaries or heirs. Without limiting the foregoing, any Common Shares that have previously been delivered
to the Participant or the Participant’s legal representative, beneficiaries or heirs pursuant to the Award and which are still held by the Participant or
the Participant’s legal representative, or beneficiaries or heirs as of the date of such termination for Cause, shall also immediately terminate and be
forfeited without consideration.
5. Change in Control. Notwithstanding anything to the contrary herein, in the event of a Change in Control, (i) 100% of the Deferred Units granted
hereunder which then remain outstanding shall vest (to the extent not previously vested) upon the date of such Change in Control, and (ii) the Company
shall deliver Common Shares to the Participant at the same time as would otherwise be delivered pursuant to Section 4(a); provided, however, if such
Change in Control (or any subsequent Change in Control) would constitute “a change in the ownership or
 
3

effective control” or a “change in the ownership of a substantial portion of the assets” of the Company (in each case within the meaning of Section 409A
of the Code), the Company shall instead deliver Common Shares to the Participant in respect of 100% of the then outstanding Deferred Units (to the
extent not previously delivered) on or within 10 days following such Change in Control.
6. Distributions. If on any date while vested or unvested Deferred Units are outstanding hereunder any cash distributions shall be paid on the
Common Shares, the Participant shall be entitled to receive, as of such distribution date, a cash payment equal to the product of (a) the number of
Deferred Units, if any, held by the Participant as of the related distribution date, multiplied by (b) the per Common Share amount of such cash
distribution.
7. Adjustments Upon Certain Events. The Administrator shall, in its sole discretion, make certain substitutions or adjustments to any Deferred
Units subject to this Award Agreement pursuant to Section 9 of the Plan.
8. No Right to Continued Employment. The granting of the Deferred Units evidenced by this Award Agreement shall impose no obligation on the
Company or any Affiliate to continue the Employment of the Participant and shall not lessen or affect the Company’s or its Affiliate’s right to terminate
the Employment of such Participant.
9. No Rights of a Holder of Common Shares. Except as otherwise provided herein, the Participant shall not have any rights as a holder of
Common Shares until such Common Shares have been issued or transferred to the Participant.
10. Restrictions. Any Common Shares issued or transferred to the Participant pursuant to Section 4 of this Award Agreement shall be subject to
such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan or the rules, regulations, and other requirements
of the Securities and Exchange Commission, any stock exchange upon which such Common Shares are listed and any applicable U.S. or non-U.S.
federal, state or local laws, and the Administrator may cause a notation or notations to be entered into the books and records of the Company to make
appropriate reference to such restrictions.
11. Transferability. Unless otherwise determined or approved by the Administrator, no Deferred Units may be assigned, alienated, pledged,
attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any purported
assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section 11 shall be void and unenforceable against the
Company or any Affiliate.
12. Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing (including electronically) and shall be
given (and shall be deemed to have been duly given upon receipt) by delivery in person, by electronic means, by courier service, by fax, or by registered
or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as
shall be specified in a notice given in accordance with this Section 12):
 
4

 
(a)
If to the Company, to:
Blackstone Inc.
345 Park Avenue
New York, New York, 10154
Attention: Chief Legal Officer
Fax:
 
 
(b)
If to the Participant, to the address appearing in the personnel records of the Company or any Affiliate.
13. Withholding. The Participant may be required to pay to the Company or any Affiliate, and the Company or any Affiliate shall have the right
and is hereby authorized to withhold from any issuance or transfer due under this Award Agreement or under the Plan or from any compensation or other
amount owing to the Participant, applicable withholding taxes with respect to any issuance or transfer under this Award Agreement or under the Plan and
to take such action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such withholding taxes, including,
without limitation, by reducing the number of Common Shares that would otherwise be transferred or issued pursuant to this Award Agreement. Without
limiting the foregoing, the Administrator may, from time to time, permit the Participant to make arrangements prior to any vesting date or delivery date
described herein to pay the applicable withholding taxes by remitting a check prior to the applicable vesting or delivery date.
14. Choice of Law. The interpretation, performance and enforcement of this Award Agreement shall be governed by the law of the State of New
York.
15. Subject to Plan. By entering into this Award Agreement, the Participant agrees and acknowledges that the Participant has received and read a
copy of the Plan. All Deferred Units and Common Shares issued or transferred with respect thereof are subject to the Plan. In the event of a conflict
between any term or provision contained herein and a term or provision of the Plan, the applicable terms and provisions of the Plan will govern and
prevail.
16. Nature of Grant. By accepting the Deferred Units, the Participant acknowledges, understands and agrees that:
(a) the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated
by the Company at any time;
(b) the grant of Deferred Units is exceptional, voluntary and occasional and does not create any contractual or other right to receive future
grants of Deferred Units or benefits in lieu of Deferred Units, even if Deferred Units have been granted in the past;
(c) all decisions with respect to future Deferred Units or other grants, if any, will be at the sole discretion of the Company;
(d) the Participant is voluntarily participating in the Plan;
(e) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not intended to replace any pension
rights or compensation;
 
5

(f) unless otherwise agreed with the Company, the Deferred Units and the underlying Common Shares, and the income from and value of same,
are not granted as consideration for, or in connection with, the service the Participant may provide as a director of any affiliate of the Company;
(g) the Deferred Units and the underlying Common Shares, and the income from and value of same, are not part of normal or expected
compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-
service awards, indemnification, pension or retirement or welfare benefits or similar payments, benefits or rights of any kind, and in no event should
be considered as compensation for, or relating in any way to, past services for the Company or any of its Affiliates;
(h) the future value of the underlying Common Shares is unknown, indeterminable and cannot be predicted with certainty;
(i) no claim or entitlement to compensation or damages shall arise from the forfeiture of the Deferred Units resulting from the Participant’s
termination of Employment (for any reason whatsoever); and
(j) for purposes of the Deferred Units, the Participant’s Employment will be considered terminated (regardless of the reason for such
termination) as of the date that is the earlier of (i) the date he or she is no longer actively providing services to the Company or an Affiliate or (ii) the
date he or she receives notice of termination of Employment from the Company or its applicable Affiliate, and unless otherwise expressly provided in
this Award Agreement or determined by the Company, the Participant’s right to vest in the Deferred Units under the Plan, if any, will terminate as of
such date. The Administrator will have exclusive discretion to determine when the Participant is no longer actively providing services for purposes of
the Deferred Units.
17. Non-U.S. and Country Specific Provisions. If the Participant resides in a country outside the United States or its territories, or is otherwise
subject to the laws of a country other than the United States, the Deferred Units and any underlying Common Shares acquired under the Plan shall be
subject to the additional terms and conditions set forth in Appendix A and to the terms and conditions set forth in Appendix B for the Participant’s
country, if any. Moreover, if the Participant relocates outside the United States or its territories, the terms and conditions set forth in Appendices A and B
will apply to the Participant, to the extent the Company determines that the application of such terms and conditions is necessary or advisable for legal
or administrative reasons.
18. No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company making any
recommendations regarding the Participant’s participation in the Plan, or his or her acquisition or sale of the underlying Common Shares. The
Participant should consult with his or her own tax, legal, and financial advisors regarding participation in the Plan before taking any action related to the
Plan.
 
6

19. Severability. The provisions of this Award Agreement are severable and if any one or more provisions are determined to be illegal or otherwise
unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
20. Waiver. The Participant acknowledges that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or
be construed as a waiver of any other provision of the Award Agreement, or of any subsequent breach of this Award Agreement.
21. Entire Agreement. This Award Agreement contains the entire understanding between the parties with respect to the Deferred Units granted
hereunder (including, without limitation, the vesting and delivery schedules described herein), and hereby replaces and supersedes any prior
communication and arrangements between the Participant and the Company or any of its Affiliates with respect to the matters set forth herein and any
other pre-existing economic or other arrangements between the Participant and the Company or any of its Affiliates.
22. Modifications. Notwithstanding any provision of this Award Agreement to the contrary, the Company reserves the right to modify the terms
and conditions of this Award Agreement, including, without limitation, the timing or circumstances of the issuance or transfer of Common Shares to the
Participant hereunder, to the extent such modification is determined by the Company to be necessary or advisable for legal or administrative reasons or
to preserve the intended deferral of income recognition with respect to the Deferred Units until the issuance or transfer of Common Shares hereunder.
23. Electronic Delivery and Acceptance. The Company, in its sole discretion, may decide to deliver any documents related to current or future
participation in the Plan by electronic means. Electronic delivery of a document to the Participant may be via a Company e-mail system, an online or
electronic system established and maintained by a third party administrator of the Plan, or by reference to a location on a Company intranet site to which
the Participant has access. The Participant hereby agrees, to the fullest extent permitted by law, to accept electronic delivery of any documents that the
Company desires or may be required to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and
agreements, account statements, annual and quarterly reports, and all other agreements, forms and communications), in connection with this and any
other prior or future incentive award or program offered by the Company and agrees to participate in the Plan through an on-line or electronic system
established and maintained by the Company or a third party designated by the Company.
24. Signature in Counterparts. This Award Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.
[Signatures on next page.]
 
7

IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement.
 
BLACKSTONE INC.
 
Name:
THE PARTICIPANT1
 
Name:
 
1 
To the extent that the Company has established, either itself or through a third-party plan administrator, the ability to accept this award
electronically, such acceptance shall constitute Participant’s signature hereof.
 
8

APPENDIX A
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
ADDITIONAL TERMS AND CONDITIONS
FOR PARTICIPANTS OUTSIDE THE UNITED STATES
 
A-1

APPENDIX B
TO
BLACKSTONE INC.
AMENDED AND RESTATED 2007 EQUITY INCENTIVE PLAN
BX EQUITY AWARD
DEFERRED UNIT AGREEMENT
COUNTRY-SPECIFIC TERMS AND CONDITIONS
 
B-1

Exhibit 19.1
Blackstone Inc.
Securities Trading Policy and Procedures
Governing Transactions in Blackstone Securities
Introduction
Blackstone Inc.’s (“Blackstone”) directors, officers and employees (collectively, the “Covered Parties”) are required to abide by all applicable
laws (e.g., federal and state securities laws and regulations) including, but not limited to, those prohibiting insider trading and the misuse of material,
non-public information (as defined below).
In order to comply with insider trading laws, protect Blackstone’s reputation for integrity and avoid even the appearance of impropriety,
Blackstone has adopted this Securities Trading Policy and Procedures Governing Transactions in Blackstone Securities (the “Policy”). This Policy
applies to Blackstone and all Covered Parties and is designed to promote compliance with insider trading laws and to protect Blackstone and the
Covered Parties from the very serious liability and penalties that can result from violations of these laws. This policy is an important part of
Blackstone’s commitment to maintaining its reputation for integrity and ethical conduct.
It is Blackstone’s policy that neither Blackstone nor the Covered Parties may trade Blackstone Securities (as defined below) while in possession of
material, non-public information. Blackstone and the Covered Parties are also prohibited from disclosing such information to others who might use such
information as the basis for an investment decision (commonly referred to as “tipping”). However, the matters set forth in this Policy are guidelines only
and are not intended to replace the Covered Parties’ responsibility to understand and comply with the legal prohibition on insider trading. Appropriate
judgment should be exercised in connection with all securities trading. If you have specific questions regarding this Policy or applicable law, please
contact Blackstone’s Legal and Compliance Department (“LCD”). While this Policy governs transactions in Blackstone Securities, Covered Parties are
encouraged to consult the LCD for additional policies and procedures applicable to transactions in securities issued by issuers other than Blackstone.
Material, Non-Public Information
During the course of employment by or association with Blackstone, the Covered Parties may learn of or have access to non-public information
concerning Blackstone’s business, clients, affairs, operations, strategies, policies, procedures, organizational and personnel matters related to current or
former employees. Such non-public information, may include compensation and investment arrangements, terms of agreements, financial structure,
financial position, financial results or other financial affairs, actual or proposed transactions or investments, investment results, existing or prospective
clients or investors, computer programs or other confidential information related to the business of Blackstone or to its affiliates, actual or prospective
portfolio companies or other third parties (all of such information, from whatever source learned or obtained and regardless of Blackstone’s connection
to the information, is “Confidential Information”). Under certain circumstances, Confidential Information may also be considered material to Blackstone
(“material, non-public information”). Subject to the terms and conditions of this Policy, Covered Parties are prohibited from trading Blackstone
Securities at any time when the Covered Party is in possession of material, non-public information concerning Blackstone or its securities.
Information is material to Blackstone if it has potential “market significance,” meaning that (i) it is reasonably likely to have a substantial effect
on the price of Blackstone’s securities, (ii) there is a substantial likelihood that knowledge of the information would be considered important by the
reasonable
 
1

investor in making an investment decision regarding Blackstone’s securities, or (iii) there is a substantial likelihood that the reasonable investor would
consider disclosure of the information to significantly alter the “total mix” of information publicly available relating to Blackstone’s securities. As a
common sense guide, for purposes of this Policy, information should be considered material if public disclosure of the information would likely affect
the consideration of whether to trade, or the market price of, Blackstone’s securities.
Information should be considered non-public unless the Covered Parties can point to some specific fact or event indicating that the information
has been generally disseminated to the public, such as disclosure in a press release, distributed through a widely disseminated news or wire service, on
the Internet, in newspapers or radio, or television or other public media or in publicly filed documents with the Securities and Exchange Commission
(“SEC”) or other government agency or office. Information is not “public” if disseminated through unauthorized sources, such as market rumors or
speculation even when such rumors or speculation are true.
Whether information is material, non-public information depends on all of the facts and circumstances of a given situation, and the determination
may require the application of sophisticated legal analysis that itself depends on the evolving state of the law. Accordingly, when Covered Parties have
any doubt whatsoever as to whether information in their possession is material, non-public information, from whatever source learned or obtained, they
must (i) treat the information as material, non-public information, (ii) refrain from trading in Blackstone Securities, (iii) refrain from communicating the
information further, and (iv) promptly contact the LCD. Covered Parties are not to make any judgments regarding whether information is material,
non-public information on their own; such judgments are to be made only in connection with LCD personnel.
Information learned from government officials, lobbyists or political consultants (each, a “Government Insider”) could be considered material,
non-public information if it is information concerning a company, security, industry or economic sector, or real or personal property that is not available
to the general public and would be considered important when making an investment decision in Blackstone Securities. If a Covered Party receives
information from a Government Insider and is unsure if it would be considered material, non-public information, such Covered Party should contact the
LCD.
AS A GENERAL RULE, BLACKSTONE AND ALL COVERED PARTIES ARE PROHIBITED FROM TRADING IN BLACKSTONE
SECURITIES WHILE IN POSSESSION OF, OR TIPPING ON THE BASIS OF, MATERIAL, NON-PUBLIC INFORMATION, WHETHER
ON BEHALF OF BLACKSTONE OR THEIR PERSONAL OR FAMILY ACCOUNTS. TRADING IN BLACKSTONE SECURITIES WHILE
IN POSSESSION OF, OR TIPPING ON THE BASIS OF, MATERIAL, NON-PUBLIC INFORMATION COULD ALSO RESULT IN CIVIL
OR CRIMINAL LIABILITY, INCLUDING FINES, IMPRISONMENT, DISGORGEMENT OF THE PROFITS REALIZED OR LOSSES
AVOIDED AS A RESULT OF THE ILLEGAL TRADING OR TIPPING AND OTHER SANCTIONS. COVERED PARTIES SHOULD BE
AWARE THAT BLACKSTONE MAY INITIATE OR COOPERATE IN PROCEEDINGS RESULTING IN SUCH LIABILITY.
Any questions as to whether information is material or has been adequately disclosed should be directed to the LCD.
Securities Trading
Except as provided below, Blackstone’s policies and procedures regarding securities trading apply to transactions (e.g., any purchase, sale or other
transaction to acquire or dispose of Blackstone Securities, including derivative exercises, gifts or other contributions, exercises of stock options, sale of
stock acquired upon the exercise of options or upon the exchange of other derivative securities involving all equity and debt securities of Blackstone,
including, but not limited to, common and preferred stock,
 
2

instruments convertible or exchangeable into equity or debt securities (including Blackstone Holdings Partnership Units), and trades made under
Employee benefit plans), any financial instruments relating to any such securities, including swaps, options, warrants, securities futures, or other similar
instruments, and all other debt and equity investments related to Blackstone that are considered securities (collectively, “Blackstone Securities”).
Transactions in Blackstone Securities
The following prohibitions and/or restrictions apply to transactions in Blackstone Securities:
 
  •
  Covered Parties are prohibited from engaging in transactions in securities issued by Blackstone at any time when such Covered Party has material,
non-public information regarding Blackstone or its securities.
 
  •
  Covered Parties are prohibited from tipping material, non-public information to any other person (including family members), and no Covered
Parties may make trade recommendations on the basis of material, non-public information.
 
 
•
  Covered Parties are prohibited from engaging in transactions in Blackstone Securities that are inconsistent with a long-term investment in
Blackstone, signal a lack of confidence in Blackstone or may lead to the appearance of insider trading. Such transactions include any trading
activity designed to profit from fluctuations in the price of Blackstone Securities, such as “day trading” and arbitrage trading, short sales, buying
on margin, and the use of forward contracts, equity swaps, collars, exchange funds, puts, calls, options and other derivatives or any instruments
designed to increase in value as a result of, or hedge or offset any decrease in, the market value of Blackstone Securities.
 
 
•
  Covered Parties are prohibited from trading in Blackstone common stock and certain other Blackstone Securities outside of quarterly open trading
“window” periods, unless pursuant to a valid trading plan under Rule 10b5-1 (a “10b5-1 Plan”) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”). Details on window periods are maintained and published by the LCD. Hardship or other special exceptions may
be allowed on a case-by-case basis after the LCD determines that the Covered Party is not in possession of material, non-public information.
 
 
•
  Transactions by Covered Parties in Blackstone Securities generally must be pre-approved by the LCD. The LCD may deny, limit or modify
Covered Party requests at its discretion without reason and without explanation. Blackstone non-employee directors may request pre-clearance by
contacting the LCD in the manner directed by the LCD from time to time. Blackstone officers and employees may request pre-clearance by
submitting a Personal Trade Request via the LCD intranet page with the details of the specific Blackstone Securities proposed to be traded and any
other information requested by the LCD. A member of the LCD will respond to all requests by approving or denying the request (in whole or in
part). Such requests will be accepted for processing until 9:00 a.m. New York time each business day, unless otherwise permitted by the LCD, and
approvals will be valid until the close of business the day that they are received, irrespective of the location of the requesting Covered Party.
Unless otherwise permitted by the LCD, any requests submitted after 9:00 a.m. New York time will be processed on the following business day. If
for any reason a Covered Party delays the execution of a transaction beyond the scope of the approval, they must again seek approval for the
transaction from the LCD. Transactions in Blackstone common stock by Blackstone employees generally must take place in such employee’s
account with such broker approved by the LCD from time to time. Notwithstanding the receipt of approval, a Covered Party may not trade in
Blackstone Securities if such Covered Party subsequently becomes aware of material, non-public information prior to executing the transaction.
 
3

 
•
  Blackstone may from time to time implement event-specific blackout periods. Such blackout periods might be imposed on all Covered Parties of
Blackstone or they might be imposed on a subset of such individuals (for example, officers or employees or all personnel in a given business unit).
Covered Parties affected shall not trade in Blackstone Securities while such blackout is in effect, and shall not disclose to others inside or outside
Blackstone that such blackout has been imposed.
 
 
•
  Subject to the LCD’s pre-clearance in each instance, directors, officers, and certain other senior personnel will be allowed to adopt trading plans,
including Rule 10b5-1 plans, which enable them to trade on a regular, prescribed basis in Blackstone common stock, provided that any such 10b5-
1 plans satisfy the conditions and limitations set forth in Rule 10b5-1 under the Exchange Act. A 10b5-1 plan can only be established at a time
when a Covered Party do not possess material, non- public information. Therefore, Covered Parties cannot enter into these plans at any time when
in possession of material, non-public information and, in addition, Covered Parties cannot enter into these plans outside designated open trading
window periods. Any modification or termination of a trading plan, including a 10b5-1 plan, shall also be subject to the LCD’s pre-clearance.
Blackstone has the right to deny approval for any trading plan, including a 10b5-1 plan, without reason and without explanation. Covered Parties
should not engage in speculation as to the reasons for the grant or denial of approval.
 
 
•
  No Covered Party may borrow against any account in which the Blackstone Securities are held or pledge Blackstone Securities as collateral for a
loan, without first obtaining pre-clearance. Unless otherwise permitted by the LCD, requests for pre-clearance must be submitted to the LCD at
least two (2) weeks prior to the execution of the documents evidencing the proposed pledge. The LCD is under no obligation to approve any
request for pre-clearance and may determine not to permit the arrangement for any reason.
 
  •
  There is a minimum sixty (60) day hold period for Blackstone Securities purchased by officers and employees.
 
  •
  LCD approval in advance of Covered Parties’ trading in Blackstone Securities is permitted on an aggregate basis with the appropriate LCD
documentation.
 
  •
  The LCD reserves the right to make exceptions to the aforementioned restrictions if the Covered Party can demonstrate (i) bona fide financial
hardship, or other special circumstances, and (ii) that they are not in possession of material, non-public information.
Certain Limited Exceptions
The prohibition on transactions in Blackstone Securities set forth in this Policy does not apply to:
 
 
•
  distributions or transfers (such as certain tax planning or estate planning transfers) that effect only a change in the form of beneficial interest
without changing the Covered Party’s pecuniary interest in Blackstone Securities, provided that prior written notice of such distribution or transfer
is provided to the LCD;
 
  •
  the withholding by Blackstone of shares of restricted stock, shares underlying restricted stock units or shares subject to an option, in each case to
satisfy tax withholding requirements;
 
  •
  participation in a Dividend Reinvestment Program (“DRIP”) for Blackstone Securities with pre- clearance to activate and deactivate the DRIP;
 
4

  •
  the execution of transactions pursuant to a 10b5-1 plan which has been approved by Blackstone in accordance with this Policy;
 
 
•
  the exchange of Blackstone Holdings Partnership Units for shares of Blackstone common stock pursuant to the terms of Blackstone’s Amended
and Restated Exchange Agreement (as may be further amended from time to time); however, the sale of any such Blackstone common stock
acquired upon such exchange shall be subject to this Policy; and
 
  •
  sales of Blackstone Securities as a selling stockholder in a registered public offering in accordance with applicable securities laws.
Share Repurchase Programs
Share repurchase programs (including programs pursuant to 10b5-1 trading plans) may only be implemented and executed by Blackstone during
Blackstone’s open trading window or pursuant to a 10b5-1 trading plan that was entered during an open trading window and satisfies the various
conditions and limitations set forth in Rule 10b5-1 under the Exchange Act, and in all instances only after the Blackstone finance personnel overseeing
the repurchase has confirmed with the LCD that Blackstone is not in possession of material, non-public information. In evaluating whether Blackstone is
in possession of material, non-public information, the LCD should directly engage with Blackstone’s senior leadership.
Legal Effect of This Policy
Blackstone’s Policy with respect to securities trading and the procedures that implement this Policy are not intended to serve as precise recitations
of the legal prohibitions against insider trading and tipping which are highly complex, fact specific and evolving. Certain of the procedures are designed
to prevent even the appearance of impropriety and in some respects may be more restrictive than the securities laws. Therefore, these procedures are not
intended to serve as a basis for establishing civil or criminal liability that would not otherwise exist.
 
5

Exhibit 21.1
List of Subsidiaries
The following entities, and the jurisdiction in which they are organized, are included in the consolidated results of Blackstone Inc. as of
December 31, 2024.
 
Name
  
Jurisdiction of
Incorporation or
Organization
590 Lex Ave Club Inc.
  New York
601 Shared Services L.L.C.
  Delaware
Argon Holdco LLC
  Delaware
BAAM CV GP L.P.
  Delaware
BAAM CV L.L.C.
  Delaware
BCEP 2 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCEP 2 Holdings Manager L.L.C.
  Delaware
BCEP GP L.L.C.
  Delaware
BCEP II GP L.L.C.
  Delaware
BCEP II Side-by-Side GP L.L.C.
  Delaware
BCEP LR Associates (Cayman) II Ltd.
  Cayman Islands
BCEP LR Associates (Cayman) Ltd.
  Cayman Islands
BCEP LR Associates (Cayman) NQ Ltd.
  Cayman Islands
BCEP NQ GP L.L.C.
  Delaware
BCEP Side-by-Side GP L.L.C.
  Delaware
BCEP Side-by-Side GP NQ L.L.C.
  Delaware
BCEP/BIP Holdings Manager L.L.C.
  Cayman Islands
BCLA L.L.C.
  Delaware
BCLO Advisors L.L.C.
  Delaware
BCOM Side-by-Side GP L.L.C.
  Delaware
BCP 8 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 8 Holdings Manager L.L.C.
  Delaware
BCP 8 Holdings Mozart Manager L.L.C.
  Delaware
BCP 8/BCP Asia 2 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 8/BCP Asia Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 8/BEP 3 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 8/BEP 3 Holdings Manager L.L.C.
  Delaware
BCP 8/BEP 3/BCP Asia Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 9 Holdings Manager L.L.C.
  Delaware
BCP 9/BCP Asia 2 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 9/BETP 4 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP 9/BETP 4 Holdings Manager L.L.C.
  Delaware
BCP Asia 2 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BCP Asia Athena ESC (Cayman) Ltd.
  Cayman Islands
BCP Asia II Side-by-Side GP L.L.C.
  Delaware
BCP Asia III Side-by-Side GP L.L.C.
  Delaware
BCP Asia Side-by-Side GP L.L.C.
  Delaware
BCP Asia Side-by-Side GP NQ L.L.C.
  Delaware
BCP CC Holdings GP L.L.C.
  Delaware
BCP IV GP L.L.C.
  Delaware
BCP IV Side-by-Side GP L.L.C.
  Delaware
BCP IX GP L.L.C.
  Delaware
1

Name
  
Jurisdiction of
Incorporation or
Organization
BCP IX Side-by-Side GP L.L.C.
  Delaware
BCP SGP IV GP L.L.C.
  Delaware
BCP V GP L.L.C.
  Delaware
BCP V Side-by-Side GP L.L.C.
  Delaware
BCP V USS Side-by-Side GP L.L.C.
  Delaware
BCP VI GP L.L.C.
  Delaware
BCP VI GP NQ L.L.C.
  Delaware
BCP VI SBS ESC Holdco L.P.
  Delaware
BCP VI Side-by-Side GP L.L.C.
  Delaware
BCP VI/BEP Holdings Manager L.L.C.
  Delaware
BCP VI/BEP II/BEP Holdings Manager L.L.C.
  Delaware
BCP VII ESC Mime (Cayman) Ltd.
  Cayman Islands
BCP VII GP L.L.C.
  Delaware
BCP VII Holdings Manager - NQ L.L.C.
  Delaware
BCP VII Holdings Manager (Cayman) L.L.C.
  Delaware
BCP VII Holdings Manager L.L.C.
  Delaware
BCP VII NQ GP L.L.C.
  Delaware
BCP VII Side-by-Side GP L.L.C.
  Delaware
BCP VII Side-by-Side GP NQ L.L.C.
  Delaware
BCP VII/BCP Asia Holdings Manager (Cayman) L.L.C.
  Delaware
BCP VII/BEP II Holdings Manager - NQ L.L.C.
  Delaware
BCP VII/BEP II Holdings Manager L.L.C.
  Delaware
BCP VIII GP L.L.C.
  Delaware
BCP VIII Side-by-Side GP L.L.C.
  Delaware
BCP VI-NQ Side-by-Side GP L.L.C.
  Delaware
BCP V-NQ (Cayman II) GP L.L.C.
  Delaware
BCP V-NQ GP L.L.C.
  Delaware
BCVA L.L.C.
  Delaware
BCVP Side-by-Side GP L.L.C.
  Delaware
BEFIP III - ESC Helios Holdco L.P.
  Delaware
BEP 3 Holdings Manager L.L.C.
  Delaware
BEP GP L.L.C.
  Delaware
BEP II ESC Mime (Cayman) Ltd.
  Cayman Islands
BEP II GP L.L.C.
  Delaware
BEP II Side-by-Side GP L.L.C.
  Delaware
BEP II Side-by-Side GP NQ L.L.C.
  Delaware
BEP III Side-by-Side GP L.L.C.
  Delaware
BEP NQ Side-by-Side GP L.L.C.
  Delaware
BEP Side-by-Side GP L.L.C.
  Delaware
BEPIF (Aggregator) SCSp
  Luxembourg
BEPIF Pillar Europe (General Partner) Limited
  Cayman Islands
BEPIF Pillar Europe Holdco L.P.
  Cayman Islands
BEPIF Pillar Europe Topco L.P.
  Cayman Islands
BETP 4 Holdings Manager (CYM) L.L.C.
  Cayman Islands
BETP 4 Holdings Manager L.L.C.
  Delaware
BETP Associate (LUX) Sky S.à r.l.
  Luxembourg
BETP IV Side-by-Side GP L.L.C.
  Delaware
BFIP (Cayman) Salt VI Ltd.
  Cayman Islands
BFIP (Cayman) Salt VI-ESC Ltd.
  Cayman Islands
2

Name
  
Jurisdiction of
Incorporation or
Organization
BG(HK)L Holdings L.L.C.
  Delaware
BIA (Cayman) GP L.L.C.
  Delaware
BIA (Cayman) GP L.P.
  Cayman Islands
BIA (Cayman) GP NQ L.L.C.
  Delaware
BIA (Cayman) GP NQ L.P.
  Cayman Islands
BIA GP L.L.C.
  Delaware
BIA GP L.P.
  Delaware
BIA GP NQ L.L.C.
  Delaware
BIA GP NQ L.P.
  Delaware
Bingo Holdings Limited
  Cayman Islands
BIP Europe (CYM) L.P.
  Cayman Islands
BIP Holdings Manager L.L.C.
  Delaware
BIP Rollover Aggregator L.P.
  Delaware
BIP Ulysses GP Holdings Manager L.L.C.
  Cayman Islands
BIP Ulysses Guarantor GP Holdings Manager L.L.C.
  Cayman Islands
BISA Co-Invest Associates L.L.C.
  Delaware
BISG - A GP - NQ L.L.C.
  Delaware
Bison RC Option Associates LLC
  Delaware
Blackstone (China) Equity Investment Management Company Limited
  China
Blackstone (FM) Real Estate LLP
  United Kingdom
Blackstone (FM) Real Estate Supervisory GP LLP
  United Kingdom
Blackstone (Shanghai) Equity Investment Management Company Limited
  China
Blackstone (Shanghai) Private Fund Management Co., Ltd.
  China
Blackstone / GSO Capital Solutions Overseas Associates LLC
  Delaware
Blackstone ABF Agent LLC
  Delaware
Blackstone ABF Whole Loan Associates LLC
  Delaware
Blackstone Administrative Services Canada ULC
  Canada
Blackstone Administrative Services Partnership L.P.
  Delaware
Blackstone Advisors India Private Limited
  India
Blackstone Advisors Korea Limited
  South Korea
Blackstone Advisory Services L.L.C.
  Delaware
Blackstone AG Associates L.P.
  Cayman Islands
Blackstone AG L.L.C.
  Delaware
Blackstone AG Ltd.
  Cayman Islands
Blackstone Alternative Asset Management Associates (LUX) S.à r.l.
  Luxembourg
Blackstone Alternative Asset Management Associates LLC
  Delaware
Blackstone Alternative Asset Management L.P.
  Delaware
Blackstone Alternative Credit Advisors LP
  Delaware
Blackstone Alternative Investment Advisors LLC
  Delaware
Blackstone Alternative Solutions L.L.C.
  Delaware
Blackstone Americas Logistics Associates (LUX) S.à r.l.
  Luxembourg
Blackstone Annex Onshore Fund L.P.
  Delaware
Blackstone Asia Family Investment Partnership - ESC (Cayman) - NQ L.P.
  Cayman Islands
Blackstone Asia Family Investment Partnership - ESC (Cayman) L.P.
  Cayman Islands
Blackstone Asia Family Investment Partnership II - ESC (CYM) L.P.
  Cayman Islands
Blackstone Asia Family Investment Partnership III - ESC (CYM) L.P.
  Cayman Islands
Blackstone Asset Based Finance Advisors LP
  Delaware
Blackstone BCLP Associates (Cayman) Ltd.
  Cayman Islands
Blackstone BDC Holdings LLC
  Delaware
3

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone BGREEN III Co-Investment Associates LLC
  Delaware
Blackstone Capital Israel Ltd
  Israel
Blackstone Capital Opportunities Associates V (Cayman) Ltd.
  Cayman Islands
Blackstone Capital Opportunities Associates V (Delaware) LLC
  Delaware
Blackstone Capital Opportunities Associates V (LUX) GP S.à r.l.
  Luxembourg
Blackstone Capital Opportunities Associates V LP
  Cayman Islands
Blackstone Capital Partners Holdings Director L.L.C.
  Delaware
Blackstone Capital Partners VII NQ-N L.P.
  Delaware
Blackstone Catalyst Holdco L.L.C.
  Delaware
Blackstone CEMA II GP (CYM) L.P.
  Cayman Islands
Blackstone CEMA II GP L.P.
  Delaware
Blackstone CEMA II L.L.C.
  Delaware
Blackstone CEMA L.L.C.
  Delaware
Blackstone CEMA NQ L.L.C.
  Delaware
Blackstone Clarus DE L.L.C.
  Delaware
Blackstone Clarus GP L.L.C.
  Delaware
Blackstone Clarus GP L.P.
  Delaware
Blackstone Clarus I L.L.C.
  Delaware
Blackstone Clarus II L.L.C.
  Delaware
Blackstone Clarus III L.L.C.
  Delaware
Blackstone Clean Technology Advisors L.L.C.
  Delaware
Blackstone Clean Technology Associates L.L.C.
  Delaware
Blackstone CLO Management LLC
  Delaware
Blackstone CLO Mezzanine Associates LLC
  Delaware
Blackstone CMBS Opportunity Associates L.L.C.
  Delaware
Blackstone COE India Private Limited
  India
Blackstone COF V Co-Investment Associates LLC
  Delaware
Blackstone Commercial Real Estate Debt Associates - NQ L.L.C.
  Delaware
Blackstone Commercial Real Estate Debt Associates L.L.C.
  Delaware
Blackstone Communications Advisors I L.L.C.
  Delaware
Blackstone Communications GP L.L.C.
  Delaware
Blackstone Communications Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone Communications Management Associates I L.L.C.
  Delaware
Blackstone Core Equity Advisors L.L.C.
  Delaware
Blackstone Core Equity Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone Core Equity Management Associates (Cayman) NQ L.P.
  Cayman Islands
Blackstone Core Equity Management Associates (CYM) II L.P.
  Cayman Islands
Blackstone Core Equity Management Associates II (Lux) S.à r.l.
  Luxembourg
Blackstone Core Equity Management Associates II L.P.
  Delaware
Blackstone Core Equity Management Associates L.L.C.
  Delaware
Blackstone Core Equity Management Associates NQ L.L.C.
  Delaware
Blackstone Corporate Funding Associates GP S.à r.l.
  Luxembourg
Blackstone Credit ABC Associates LLC
  Delaware
Blackstone Credit BDC Advisors LLC
  Delaware
Blackstone Credit Hibiscus Associates LLC
  Delaware
Blackstone Credit Liquidity Associates (Cayman) L.P.
  Cayman Islands
Blackstone Credit Liquidity Associates L.L.C.
  Delaware
Blackstone Credit Liquidity GP L.P.
  Delaware
Blackstone Credit Liquidity Partners GP L.L.C.
  Delaware
4

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Crédit Privé Europe Associates S.à r.l.
  Luxembourg
Blackstone Credit Rated Fund Trust Associates LP
  Delaware
Blackstone Credit Rated Fund Trust SPV Associates LP
  Delaware
Blackstone Credit Series Fund-C Associates LLC
  Delaware
Blackstone Credit Systematic Strategies LLC
  Delaware
Blackstone Credit TPSF Associates LLC
  Delaware
Blackstone Credit TPSF Associates-B LLC
  Delaware
Blackstone DD Advisors L.L.C.
  Delaware
Blackstone DD Associates L.L.C.
  Delaware
Blackstone Dislocation Associates L.L.C.
  Delaware
Blackstone Dislocation Europe Associates (LUX) S.à r.l.
  Luxembourg
Blackstone Dislocation Fund L.P.
  Delaware
Blackstone Distressed Securities Advisors L.P.
  Delaware
Blackstone Distressed Securities Associates L.P.
  Delaware
Blackstone DL Mezzanine Associates L.P.
  Delaware
Blackstone DL Mezzanine Management Associates L.L.C.
  Delaware
Blackstone EMA II L.L.C.
  Delaware
Blackstone EMA II NQ L.L.C.
  Delaware
Blackstone EMA III GP (CYM) L.P.
  Cayman Islands
Blackstone EMA III GP L.L.C.
  Delaware
Blackstone EMA III GP L.P.
  Delaware
Blackstone EMA III L.L.C.
  Delaware
Blackstone EMA III Ltd.
  Cayman Islands
Blackstone EMA L.L.C.
  Delaware
Blackstone EMA NQ L.L.C.
  Delaware
Blackstone Energy Family Investment Partnership (CYM) III - ESC L.P.
  Cayman Islands
Blackstone Energy Family Investment Partnership (Cayman) ESC L.P.
  Cayman Islands
Blackstone Energy Family Investment Partnership (Cayman) II - ESC L.P.
  Cayman Islands
Blackstone Energy Family Investment Partnership (Cayman) L.P.
  Cayman Islands
Blackstone Energy Family Investment Partnership ESC L.P.
  Delaware
Blackstone Energy Family Investment Partnership II - ESC L.P.
  Delaware
Blackstone Energy Family Investment Partnership II - ESC NQ L.P.
  Delaware
Blackstone Energy Family Investment Partnership III - ESC L.P.
  Delaware
Blackstone Energy Family Investment Partnership L.P.
  Delaware
Blackstone Energy Family Investment Partnership NQ ESC L.P.
  Delaware
Blackstone Energy LR Associates (Cayman) II Ltd.
  Cayman Islands
Blackstone Energy LR Associates (Cayman) Ltd.
  Cayman Islands
Blackstone Energy Management Associates (Cayman) II L.P.
  Cayman Islands
Blackstone Energy Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone Energy Management Associates (CYM) III L.P.
  Cayman Islands
Blackstone Energy Management Associates II L.L.C.
  Delaware
Blackstone Energy Management Associates II NQ L.L.C.
  Delaware
Blackstone Energy Management Associates III (Lux) S.à r.l.
  Luxembourg
Blackstone Energy Management Associates III L.P.
  Delaware
Blackstone Energy Management Associates L.L.C.
  Delaware
Blackstone Energy Management Associates NQ L.L.C.
  Delaware
Blackstone Energy Transition Family Investment Partnership IV - ESC L.P.
  Delaware
Blackstone Energy Transition Family Investment Partnership IV (CYM) - ESC L.P.
  Cayman Islands
Blackstone Energy Transition Management Associates (CYM) IV L.P.
  Cayman Islands
5

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Energy Transition Management Associates IV (LUX) S.à r.l.
  Luxembourg
Blackstone Energy Transition Management Associates IV L.P.
  Delaware
Blackstone ETMA IV GP (CYM) L.P.
  Cayman Islands
Blackstone ETMA IV GP L.L.C.
  Delaware
Blackstone ETMA IV GP L.P.
  Delaware
Blackstone ETMA IV L.L.C.
  Delaware
Blackstone ETMA IV Ltd.
  Cayman Islands
Blackstone Europe Fund Management S.à r.l.
  Luxembourg
Blackstone Europe LLP
  United Kingdom
Blackstone European CLO Equity Associates (Cayman) Ltd.
  Cayman Islands
Blackstone European CLO Equity Associates LP
  Cayman Islands
Blackstone European Private Credit Fund Associates (Lux) S.à r.l.
  Luxembourg
Blackstone European Private Credit Fund Associates L.P.
  Cayman Islands
Blackstone European Property Income Fund (Master) FCP
  Luxembourg
Blackstone European Property Income Fund Associates (France) S.à r.l.
  Luxembourg
Blackstone European Property Income Fund Associates (German Minority) S.à r.l.
  Luxembourg
Blackstone European Property Income Fund Associates (Lux) S.à r.l.
  Luxembourg
Blackstone European Property Income Fund Associates LP
  Cayman Islands
Blackstone European Property Income Fund Associates Ltd.
  Cayman Islands
Blackstone European Property Income Fund SICAV
  Luxembourg
Blackstone European Senior Debt Associates III (Cayman) Ltd.
  Cayman Islands
Blackstone European Senior Debt Associates III (Delaware) LLC
  Delaware
Blackstone European Senior Debt Associates III GP S.à r.l.
  Luxembourg
Blackstone European Senior Debt Associates III LP
  Cayman Islands
Blackstone European Senior Direct Lending Associates (Cayman) Ltd.
  Cayman Islands
Blackstone European Senior Direct Lending Associates (Delaware) LLC
  Delaware
Blackstone European Senior Direct Lending Associates GP S.à r.l.
  Luxembourg
Blackstone European Senior Direct Lending Associates LP
  Cayman Islands
Blackstone Family BAAM Dislocation GP L.L.C.
  Delaware
Blackstone Family BAAM Dislocation Investment Partnership L.P.
  Delaware
Blackstone Family Communications Partnership (Cayman) L.P.
  Cayman Islands
Blackstone Family Communications Partnership I L.P.
  Delaware
Blackstone Family Core Equity Partnership - ESC L.P.
  Delaware
Blackstone Family Core Equity Partnership - ESC NQ L.P.
  Delaware
Blackstone Family Core Equity Partnership (Cayman) - ESC L.P.
  Cayman Islands
Blackstone Family Core Equity Partnership (Cayman) - ESC NQ L.P.
  Cayman Islands
Blackstone Family Core Equity Partnership (CYM) II - ESC L.P.
  Cayman Islands
Blackstone Family Core Equity Partnership II - ESC L.P.
  Delaware
Blackstone Family Investment Partnership (Cayman) IV-A L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Cayman) V L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Cayman) VI - ESC L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Cayman) VI L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Cayman) VII - ESC L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Cayman) VII - ESC NQ L.P.
  Cayman Islands
Blackstone Family Investment Partnership (CYM) IX - ESC L.P.
  Cayman Islands
Blackstone Family Investment Partnership (CYM) VIII - ESC L.P.
  Cayman Islands
Blackstone Family Investment Partnership (Delaware) V-NQ L.P.
  Delaware
Blackstone Family Investment Partnership Growth - ESC L.P.
  Delaware
Blackstone Family Investment Partnership Growth II - ESC L.P.
  Delaware
6

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Family Investment Partnership IV - A L.P.
  Delaware
Blackstone Family Investment Partnership IX - ESC L.P.
  Delaware
Blackstone Family Investment Partnership V L.P.
  Delaware
Blackstone Family Investment Partnership V Prime L.P.
  Delaware
Blackstone Family Investment Partnership V USS L.P.
  Delaware
Blackstone Family Investment Partnership VI - ESC L.P.
  Delaware
Blackstone Family Investment Partnership VI L.P.
  Delaware
Blackstone Family Investment Partnership VII - ESC L.P.
  Delaware
Blackstone Family Investment Partnership VII - ESC NQ L.P.
  Delaware
Blackstone Family Investment Partnership VIII - ESC L.P.
  Delaware
Blackstone Family Investment Partnership VI-NQ ESC L.P.
  Delaware
Blackstone Family Investment Partnership VI-NQ L.P.
  Delaware
Blackstone Family Real Estate Debt Strategies II Side-By-Side GP L.L.C.
  Delaware
Blackstone Family Real Estate Debt Strategies III - ESC L.P.
  Delaware
Blackstone Family Real Estate Debt Strategies III Side-by-Side GP L.L.C.
  Delaware
Blackstone Family Real Estate Partnership III L.P.
  Delaware
Blackstone Family Strategic Capital Holdings Investment Partnership II ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities FCC Investment Partnership - NQ - ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities FCC Investment Partnership - NQ L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership - NQ - ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership - NQ L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership (Cayman) - NQ - ESC L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership (Cayman) - NQ L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership (Cayman) ESC L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership III - NQ - ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership III (Cayman) - NQ - ESC L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership III (Cayman) ESC L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership III (Cayman) NQ L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership III ESC L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership IV ESC (CYM) AIV-F L.P.
  Cayman Islands
Blackstone Family Tactical Opportunities Investment Partnership IV ESC AIV L.P.
  Delaware
Blackstone Family Tactical Opportunities Investment Partnership IV ESC L.P.
  Delaware
Blackstone FI Mezzanine (Cayman) Ltd.
  Cayman Islands
Blackstone FI Mezzanine Associates (Cayman) L.P.
  Cayman Islands
Blackstone Funding Limited
  Cayman Islands
Blackstone Green Private Credit Associates III (Cayman) Ltd.
  Cayman Islands
Blackstone Green Private Credit Associates III (Delaware) LLC
  Delaware
Blackstone Green Private Credit Associates III (LUX) GP S.à r.l.
  Luxembourg
Blackstone Green Private Credit Associates III LP
  Cayman Islands
Blackstone Green Private Credit Associates III-E LLC
  Delaware
Blackstone Group Holdings L.L.C.
  Delaware
Blackstone Group Holdings L.P.
  Delaware
Blackstone Group International Holdings L.L.C.
  Delaware
Blackstone Growth Advisors L.L.C.
  Delaware
Blackstone Growth Associates (Lux) S.à r.l.
  Luxembourg
Blackstone Growth Associates II (LUX) S.à r.l.
  Luxembourg
Blackstone Growth Associates II L.P.
  Delaware
Blackstone Growth Associates L.P.
  Delaware
7

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Growth Management Associates (CYM) L.P.
  Cayman Islands
Blackstone Growth Management Associates II (CYM) L.P.
  Cayman Islands
Blackstone Harrington Associates L.L.C.
  Delaware
Blackstone Harrington Employee Associates L.L.C.
  Delaware
Blackstone Harrington Holdings Ltd.
  Cayman Islands
Blackstone Holdings AI L.P.
  Delaware
Blackstone Holdings Finance Co. L.L.C.
  Delaware
Blackstone Holdings I - Sub (BAAM) GP L.L.C.
  Delaware
Blackstone Holdings I - Sub GP L.L.C.
  Delaware
Blackstone Holdings I L.P.
  Delaware
Blackstone Holdings I/II GP L.L.C.
  Delaware
Blackstone Holdings II L.P.
  Delaware
Blackstone Holdings III GP L.P.
  Delaware
Blackstone Holdings III GP Limited Partner L.L.C.
  Delaware
Blackstone Holdings III GP Management L.L.C.
  Delaware
Blackstone Holdings III GP Sub L.L.C.
  Delaware
Blackstone Holdings III L.P.
  Canada
Blackstone Holdings IV GP L.P.
  Canada
Blackstone Holdings IV GP Limited Partner L.L.C.
  Delaware
Blackstone Holdings IV GP Management (Delaware) L.P.
  Delaware
Blackstone Holdings IV GP Management L.L.C.
  Delaware
Blackstone Holdings IV GP Sub L.P.
  Canada
Blackstone Holdings IV L.P.
  Canada
Blackstone Horizon Associates L.L.C.
  Delaware
Blackstone Horizon Europe Associates (LUX) S.à r.l.
  Luxembourg
Blackstone Horizon Fund L.P.
  Delaware
Blackstone Infrastructure Advisors L.L.C.
  Delaware
Blackstone Infrastructure Associates (Cayman) L.P.
  Cayman Islands
Blackstone Infrastructure Associates (Cayman) NQ L.P.
  Cayman Islands
Blackstone Infrastructure Associates (LUX) Hogan S.à r.l.
  Luxembourg
Blackstone Infrastructure Associates (LUX) Miro S.à r.l.
  Luxembourg
Blackstone Infrastructure Associates (Lux) S.à r.l.
  Luxembourg
Blackstone Infrastructure Associates Europe (CYM) L.P.
  Cayman Islands
Blackstone Infrastructure Associates Europe (DEL) L.L.C.
  Delaware
Blackstone Infrastructure Associates Europe (LUX) S.à r.l.
  Luxembourg
Blackstone Infrastructure Associates Europe Ltd.
  Cayman Islands
Blackstone Infrastructure Associates L.P.
  Delaware
Blackstone Infrastructure Associates Ltd.
  Cayman Islands
Blackstone Infrastructure Associates Non-ECI L.P.
  Delaware
Blackstone Infrastructure Associates NQ L.P.
  Delaware
Blackstone Infrastructure Associates NQ Ltd.
  Cayman Islands
Blackstone Infrastructure Partners Europe F (CYM) L.P.
  Cayman Islands
Blackstone Infrastructure Partners Europe Lower Fund 1 (LUX) SCSp
  Luxembourg
Blackstone Infrastructure Partners F.4 L.P.
  Delaware
Blackstone Infrastructure Partners Holdings Director L.L.C.
  Delaware
Blackstone Infrastructure Strategies Associates L.P.
  Delaware
Blackstone Infrastructure Strategies L.P.
  Delaware
Blackstone Innovations (Cayman) III L.P.
  Cayman Islands
Blackstone Innovations III L.L.C.
  Delaware
8

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Innovations L.L.C.
  Delaware
Blackstone Insurance Solutions Europe LLP
  United Kingdom
Blackstone Intermediary Holdco L.L.C.
  Delaware
Blackstone Ireland Fund Management Limited
  Ireland
Blackstone Ireland Limited
  Ireland
Blackstone ISG Investment Associates - R (BMU) Ltd.
  Bermuda
Blackstone ISG Investment Partners - A LR Associates (Cayman) - NQ Ltd.
  Cayman Islands
Blackstone ISG Investment Partners - A Management Associates (Cayman) - NQ L.P.
  Cayman Islands
Blackstone ISG Investment Partners - A Management Associates (Lux) S.à r.l.
  Luxembourg
Blackstone ISG-I Advisors L.L.C.
  Delaware
Blackstone ISG-II Advisors L.L.C.
  Delaware
Blackstone Leo Co-Invest L.P.
  Delaware
Blackstone Liberty Place Associates L.P.
  Delaware
Blackstone Liberty Place L.L.C.
  Delaware
Blackstone Life Sciences Advisors L.L.C.
  Delaware
Blackstone Life Sciences Associates IV-V, L.L.C.
  Delaware
Blackstone Life Sciences Associates V (CYM) L.L.C.
  Cayman Islands
Blackstone Life Sciences Associates V (Lux) S.à r.l.
  Luxembourg
Blackstone Life Sciences Associates V L.P.
  Delaware
Blackstone Life Sciences Associates VI (CYM) L.L.C.
  Cayman Islands
Blackstone Life Sciences Associates VI (LUX) S.à r.l.
  Luxembourg
Blackstone Life Sciences Associates VI L.P.
  Cayman Islands
Blackstone Life Sciences V (CYM) AIV GP L.P.
  Cayman Islands
Blackstone Life Sciences Yield Associates L.P.
  Cayman Islands
Blackstone Liquid Credit Advisors I LLC
  Delaware
Blackstone Liquid Credit Advisors II LLC
  Delaware
Blackstone Liquid Credit Strategies LLC
  Delaware
Blackstone LR Associates (Cayman) IV Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) IX Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) V Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) VI Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) VI NQ Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) VII Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) VII NQ Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) VIII Ltd.
  Cayman Islands
Blackstone LR Associates (Cayman) V-NQ Ltd.
  Cayman Islands
Blackstone Management Associates (Cayman II) V-NQ L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) IV L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) V L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) VI L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) VI NQ L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) VII L.P.
  Cayman Islands
Blackstone Management Associates (Cayman) VII NQ L.P.
  Cayman Islands
Blackstone Management Associates (CYM) IX L.P.
  Cayman Islands
Blackstone Management Associates (CYM) VIII L.P.
  Cayman Islands
Blackstone Management Associates (Delaware) V-NQ L.P.
  Delaware
Blackstone Management Associates Asia (Lux) S.à r.l.
  Luxembourg
Blackstone Management Associates Asia II (Lux) S.à r.l.
  Luxembourg
Blackstone Management Associates Asia II L.P.
  Cayman Islands
9

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Management Associates Asia III (LUX) S.à r.l.
  Luxembourg
Blackstone Management Associates Asia III L.P.
  Cayman Islands
Blackstone Management Associates Asia L.P.
  Cayman Islands
Blackstone Management Associates Asia NQ L.P.
  Cayman Islands
Blackstone Management Associates IV L.L.C.
  Delaware
Blackstone Management Associates IX (LUX) S.à r.l.
  Luxembourg
Blackstone Management Associates IX L.P.
  Delaware
Blackstone Management Associates V L.L.C.
  Delaware
Blackstone Management Associates V USS L.L.C.
  Delaware
Blackstone Management Associates VI L.L.C.
  Delaware
Blackstone Management Associates VII L.L.C.
  Delaware
Blackstone Management Associates VII NQ L.L.C.
  Delaware
Blackstone Management Associates VIII (Lux) S.à r.l.
  Luxembourg
Blackstone Management Associates VIII L.P.
  Delaware
Blackstone Management Associates VI-NQ L.L.C.
  Delaware
Blackstone Management Partners (India) L.L.C.
  Delaware
Blackstone Management Partners III L.L.C.
  Delaware
Blackstone Management Partners IV L.L.C.
  Delaware
Blackstone Management Partners L.L.C.
  Delaware
Blackstone Mezzanine Advisors L.P.
  Delaware
Blackstone Mezzanine Associates II L.P.
  Delaware
Blackstone Mezzanine Associates II USS L.P.
  Delaware
Blackstone Mezzanine Associates L.P.
  Delaware
Blackstone Mezzanine GP L.L.C.
  Delaware
Blackstone Mezzanine Holdings II L.P.
  Delaware
Blackstone Mezzanine Holdings II USS L.P.
  Delaware
Blackstone Mezzanine Management Associates II Apt. L.L.C.
  Delaware
Blackstone Mezzanine Management Associates II L.L.C.
  Delaware
Blackstone Mezzanine Management Associates II USS L.L.C.
  Delaware
Blackstone Mezzanine Management Associates L.L.C.
  Delaware
Blackstone Mileway Logistics Associates (LUX) S.à r.l.
  Luxembourg
Blackstone Mileway Logistics Associates L.P.
  Cayman Islands
Blackstone Multi-Asset (Cayman) - NQ GP L.P.
  Cayman Islands
Blackstone Multi-Asset Advisors L.L.C.
  Delaware
Blackstone Multi-Asset Credit Associates (Cayman) Ltd.
  Cayman Islands
Blackstone Multi-Asset Credit Associates (LUX) GP S.à r.l.
  Luxembourg
Blackstone Multi-Asset Credit Associates LLC
  Delaware
Blackstone Multi-Asset GP II - NQ L.P.
  Delaware
Blackstone Multi-Asset GP L.P.
  Delaware
Blackstone Multi-Asset Private Associates L.L.C.
  Delaware
Blackstone Nexus Partners-N L.P.
  Delaware
Blackstone NL US Investor LLC
  Delaware
Blackstone NL US RE Investor LLC
  Delaware
Blackstone OBS Associates L.P.
  Cayman Islands
Blackstone OBS L.L.C.
  Delaware
Blackstone OBS Ltd.
  Cayman Islands
Blackstone OPF Associates L.L.C.
  Delaware
Blackstone OPF Associates L.P.
  Delaware
Blackstone Participation Partnership (Cayman) IV L.P.
  Cayman Islands
10

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Participation Partnership (Cayman) V L.P.
  Cayman Islands
Blackstone Participation Partnership (Delaware) V-NQ L.P.
  Delaware
Blackstone Participation Partnership IV L.P.
  Delaware
Blackstone Participation Partnership V L.P.
  Delaware
Blackstone Participation Partnership V Prime L.P.
  Delaware
Blackstone Participation Partnership V USS L.P.
  Delaware
Blackstone PAT Holdings IV, L.L.C.
  Delaware
Blackstone PB I L.L.C.
  Delaware
Blackstone PB II L.L.C.
  Delaware
Blackstone PBPEF V L.P.
  Cayman Islands
Blackstone PBPIF III L.P.
  Cayman Islands
Blackstone PBREF III L.P.
  Cayman Islands
Blackstone Pearl Cayman GP Ltd.
  Cayman Islands
Blackstone Pearl Cayman L.P.
  Cayman Islands
Blackstone Pearl Luxembourg S.à r.l.
  Luxembourg
Blackstone PFF I L.P.
  Cayman Islands
Blackstone PIF IV L.P.
  Cayman Islands
Blackstone Power & Natural Resources Holdco G.P. LLC
  Delaware
Blackstone PPEF VI L.P.
  Cayman Islands
Blackstone Private Credit Strategies LLC
  Delaware
Blackstone Private Equity Strategies Associates L.P.
  Delaware
Blackstone Private Investments Advisors L.L.C.
  Delaware
Blackstone Properties Partners China GP LLC
  Delaware
Blackstone Property Advisors L.P.
  Delaware
Blackstone Property Associates (Lux) S.à r.l.
  Luxembourg
Blackstone Property Associates Asia (Lux) S.à r.l.
  Luxembourg
Blackstone Property Associates Asia HoldCo L.L.C.
  Delaware
Blackstone Property Associates Asia L.P.
  Cayman Islands
Blackstone Property Associates Asia Ltd.
  Cayman Islands
Blackstone Property Associates Europe (Delaware) L.L.C.
  Delaware
Blackstone Property Associates Europe (Lux) S.à r.l.
  Luxembourg
Blackstone Property Associates Europe L.P.
  Cayman Islands
Blackstone Property Associates Europe Ltd.
  Cayman Islands
Blackstone Property Associates International L.P.
  Cayman Islands
Blackstone Property Associates International-NQ L.P.
  Cayman Islands
Blackstone Property Associates L.L.C.
  Delaware
Blackstone Property Associates L.P.
  Delaware
Blackstone Property Holdings Director L.L.C.
  Delaware
Blackstone Property International L.L.C.
  Delaware
Blackstone Property International Ltd.
  Cayman Islands
Blackstone Property International-NQ L.L.C.
  Delaware
Blackstone Property Management L.L.C.
  Delaware
Blackstone PTI Associates L.P.
  Delaware
Blackstone Rated Senior Direct Lending Associates LLC
  Delaware
Blackstone Real Estate (Cayman) IV Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) V Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) VI Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) VII Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) VIII Ltd.
  Cayman Islands
11

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Real Estate (Cayman) VIII-NQ Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) VII-NQ Ltd.
  Cayman Islands
Blackstone Real Estate (Cayman) VI-Q Ltd.
  Cayman Islands
Blackstone Real Estate (Chiswick) Holdings, L.P.
  Cayman Islands
Blackstone Real Estate Advisors Europe L.P.
  Delaware
Blackstone Real Estate Advisors III L.P.
  Delaware
Blackstone Real Estate Advisors International L.L.C.
  Delaware
Blackstone Real Estate Advisors IV L.L.C.
  Delaware
Blackstone Real Estate Advisors L.P.
  Delaware
Blackstone Real Estate Advisors V L.P.
  Delaware
Blackstone Real Estate Associates (Cayman) Feeder VII.F L.L.C.
  Delaware
Blackstone Real Estate Associates (Offshore) IX L.P.
  Cayman Islands
Blackstone Real Estate Associates (Offshore) V L.P.
  Canada
Blackstone Real Estate Associates (Offshore) VI L.P.
  Canada
Blackstone Real Estate Associates (Offshore) VII L.P.
  Canada
Blackstone Real Estate Associates (Offshore) VIII L.P.
  Cayman Islands
Blackstone Real Estate Associates (Offshore) VIII-NQ L.P.
  Cayman Islands
Blackstone Real Estate Associates (Offshore) VII-NQ L.P.
  Canada
Blackstone Real Estate Associates (Offshore) VI-Q L.P.
  Canada
Blackstone Real Estate Associates (Offshore) X L.P.
  Cayman Islands
Blackstone Real Estate Associates Asia II (Lux) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates Asia II L.P.
  Cayman Islands
Blackstone Real Estate Associates Asia III (LUX) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates Asia III L.P.
  Cayman Islands
Blackstone Real Estate Associates Asia L.P.
  Cayman Islands
Blackstone Real Estate Associates Asia-NQ L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe (Delaware) III L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) III-NQ L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) IV L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) IV-NQ L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) V L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) VI L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) VII L.L.C.
  Delaware
Blackstone Real Estate Associates Europe (Delaware) V-NQ L.L.C.
  Delaware
Blackstone Real Estate Associates Europe III L.P.
  Delaware
Blackstone Real Estate Associates Europe III-NQ L.P.
  Delaware
Blackstone Real Estate Associates Europe IV L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe IV-NQ L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe V L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe VI (Lux) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates Europe VI L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe VII (LUX) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates Europe VII L.P.
  Cayman Islands
Blackstone Real Estate Associates Europe V-NQ L.P.
  Cayman Islands
Blackstone Real Estate Associates International (Delaware) II L.L.C.
  Delaware
Blackstone Real Estate Associates International (Delaware) L.L.C.
  Delaware
Blackstone Real Estate Associates International II L.P.
  Delaware
Blackstone Real Estate Associates International L.P.
  Delaware
Blackstone Real Estate Associates IV L.P.
  Delaware
12

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Real Estate Associates IX (Lux) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates IX L.P.
  Delaware
Blackstone Real Estate Associates V L.P.
  Delaware
Blackstone Real Estate Associates VI - NQ L.P.
  Delaware
Blackstone Real Estate Associates VI (GGP) L.L.C.
  Delaware
Blackstone Real Estate Associates VI L.L.C.
  Delaware
Blackstone Real Estate Associates VI L.P.
  Delaware
Blackstone Real Estate Associates VII L.P.
  Delaware
Blackstone Real Estate Associates VIII L.P.
  Delaware
Blackstone Real Estate Associates VIII-NQ L.P.
  Delaware
Blackstone Real Estate Associates VII-NQ L.P.
  Delaware
Blackstone Real Estate Associates X (LUX) S.à r.l.
  Luxembourg
Blackstone Real Estate Associates X L.P.
  Delaware
Blackstone Real Estate Australia Pty Limited
  Australia
Blackstone Real Estate Capital GP Asia LLP
  United Kingdom
Blackstone Real Estate Capital GP VII L.L.P.
  United Kingdom
Blackstone Real Estate Capital GP VIII LLP
  United Kingdom
Blackstone Real Estate Capital UK Asia II NQ Limited
  United Kingdom
Blackstone Real Estate Capital UK Asia III Limited
  United Kingdom
Blackstone Real Estate Capital UK Asia Limited
  United Kingdom
Blackstone Real Estate Capital UK VII Limited
  United Kingdom
Blackstone Real Estate Capital UK VIII Limited
  United Kingdom
Blackstone Real Estate CMBS Associates - G L.L.C.
  Delaware
Blackstone Real Estate CMBS Associates Non-IG L.L.C.
  Delaware
Blackstone Real Estate Debt Strategies Associates High-Grade L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates II L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates III L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates IV (AIV) L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates IV (Cayman) Ltd.
  Cayman Islands
Blackstone Real Estate Debt Strategies Associates IV (Lux) S.à r.l.
  Luxembourg
Blackstone Real Estate Debt Strategies Associates IV L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates V (AIV) L.P.
  Delaware
Blackstone Real Estate Debt Strategies Associates V (Cayman) Ltd.
  Cayman Islands
Blackstone Real Estate Debt Strategies Associates V (LUX) S.à r.l.
  Luxembourg
Blackstone Real Estate Debt Strategies Associates V L.P.
  Delaware
Blackstone Real Estate Europe (Cayman) III Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) III-NQ Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) IV Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) IV-NQ Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) V Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) VI Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) VII Ltd.
  Cayman Islands
Blackstone Real Estate Europe (Cayman) V-NQ Ltd.
  Cayman Islands
Blackstone Real Estate Holdings (Alberta) IV L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) IX-ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings (Offshore) V L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VI L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VI-ESC L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VII L.P.
  Canada
13

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Real Estate Holdings (Offshore) VII-ESC L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VIII-ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings (Offshore) VIII-NQ-ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings (Offshore) VII-NQ L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VII-NQ-ESC L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VI-Q ESC L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) VI-Q L.P.
  Canada
Blackstone Real Estate Holdings (Offshore) X-ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Asia - ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Asia II - ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Asia III - ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Asia-NQ-ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Director L.L.C.
  Delaware
Blackstone Real Estate Holdings Europe III L.P.
  Canada
Blackstone Real Estate Holdings Europe III-ESC L.P.
  Canada
Blackstone Real Estate Holdings Europe III-NQ ESC L.P.
  Canada
Blackstone Real Estate Holdings Europe III-NQ L.P.
  Canada
Blackstone Real Estate Holdings Europe IV ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Europe IV-NQ ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Europe V ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Europe VI ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Europe VII ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings Europe V-NQ ESC L.P.
  Cayman Islands
Blackstone Real Estate Holdings IV L.P.
  Delaware
Blackstone Real Estate Holdings IX-ESC L.P.
  Delaware
Blackstone Real Estate Holdings V L.P.
  Delaware
Blackstone Real Estate Holdings VI - ESC L.P.
  Delaware
Blackstone Real Estate Holdings VI - NQ ESC L.P.
  Delaware
Blackstone Real Estate Holdings VI - NQ L.P.
  Delaware
Blackstone Real Estate Holdings VI L.P.
  Delaware
Blackstone Real Estate Holdings VII - ESC L.P.
  Delaware
Blackstone Real Estate Holdings VII L.P.
  Delaware
Blackstone Real Estate Holdings VIII-ESC L.P.
  Delaware
Blackstone Real Estate Holdings VIII-NQ-ESC L.P.
  Delaware
Blackstone Real Estate Holdings VII-NQ L.P.
  Delaware
Blackstone Real Estate Holdings VII-NQ-ESC L.P.
  Delaware
Blackstone Real Estate Holdings X-ESC L.P.
  Delaware
Blackstone Real Estate Income Advisors L.L.C.
  Delaware
Blackstone Real Estate International (Cayman) II Ltd
  Cayman Islands
Blackstone Real Estate International (Cayman) Ltd.
  Cayman Islands
Blackstone Real Estate Management Associates Europe III L.P.
  Canada
Blackstone Real Estate Management Associates Europe III-NQ L.P.
  Canada
Blackstone Real Estate Management Associates International II L.P.
  Canada
Blackstone Real Estate Management Associates International L.P.
  Canada
Blackstone Real Estate Partners Capital GP Asia II NQ LLP
  United Kingdom
Blackstone Real Estate Partners Capital GP Asia III LLP
  United Kingdom
Blackstone Real Estate Partners Supervisory GP Asia II NQ LLP
  United Kingdom
Blackstone Real Estate Partners Supervisory GP Asia III LLP
  United Kingdom
Blackstone Real Estate Partners VII L.L.C.
  Delaware
14

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Real Estate Partners VI-VD L.L.C.
  Delaware
Blackstone Real Estate Services L.L.C.
  Delaware
Blackstone Real Estate Special Situations (Alberta) II GP L.P.
  Delaware
Blackstone Real Estate Special Situations Advisors (Isobel) L.L.C.
  Delaware
Blackstone Real Estate Special Situations Advisors L.L.C.
  Delaware
Blackstone Real Estate Special Situations Associates Europe - NQ L.L.C.
  Delaware
Blackstone Real Estate Special Situations Associates Europe (Delaware) L.L.C.
  Delaware
Blackstone Real Estate Special Situations Associates Europe L.P.
  Delaware
Blackstone Real Estate Special Situations Associates II L.L.C.
  Delaware
Blackstone Real Estate Special Situations Associates II-NQ L.L.C.
  Delaware
Blackstone Real Estate Special Situations Associates L.L.C.
  Delaware
Blackstone Real Estate Special Situations Europe (Cayman) Ltd.
  Cayman Islands
Blackstone Real Estate Special Situations Europe GP L.L.C.
  Delaware
Blackstone Real Estate Special Situations Europe GP L.P.
  Delaware
Blackstone Real Estate Special Situations Management Associates Europe L.P.
  Canada
Blackstone Real Estate Special Situations Side-by-Side GP L.L.C.
  Delaware
Blackstone Real Estate Special Situations-NQ Side-by-Side GP L.L.C.
  Delaware
Blackstone Real Estate Supervisory UK Asia II NQ Limited
  United Kingdom
Blackstone Real Estate Supervisory UK Asia III Limited
  United Kingdom
Blackstone Real Estate Supervisory UK Asia Limited
  United Kingdom
Blackstone Real Estate Supervisory UK Limited
  United Kingdom
Blackstone Real Estate Supervisory UK VII Limited
  United Kingdom
Blackstone Real Estate Supervisory UK VIII Limited
  United Kingdom
Blackstone Real Estate UK Limited
  United Kingdom
Blackstone Reg Finance Co. L.L.C.
  Delaware
Blackstone Residential GP L.L.C.
  Delaware
Blackstone Residential L.L.C.
  Delaware
Blackstone Residential Opportunities Associates L.L.C.
  Delaware
Blackstone Securities Partners L.P.
  Delaware
Blackstone Senfina Advisors L.L.C.
  Delaware
Blackstone Senfina Associates L.L.C.
  Delaware
Blackstone Senior Direct Lending Associates (CYM) LP
  Cayman Islands
Blackstone Senior Direct Lending Associates (Delaware) LLC
  Delaware
Blackstone Senior Direct Lending Associates GP S.à r.l.
  Luxembourg
Blackstone Senior Direct Lending Associates LP
  Delaware
Blackstone SGP Associates (Cayman) IV Ltd.
  Cayman Islands
Blackstone SGP Family Investment Partnership (Cayman) IV-A L.P.
  Cayman Islands
Blackstone SGP Management Associates (Cayman) IV L.P.
  Cayman Islands
Blackstone SGP Participation Partnership (Cayman) IV L.P.
  Cayman Islands
Blackstone Shipston Associates GP S.à r.l.
  Luxembourg
Blackstone Singapore Pte. Ltd.
  Singapore
Blackstone Strategic Alliance Advisors L.L.C.
  Delaware
Blackstone Strategic Alliance Associates II L.L.C.
  Delaware
Blackstone Strategic Alliance Associates III L.L.C.
  Delaware
Blackstone Strategic Alliance Associates IV L.L.C.
  Delaware
Blackstone Strategic Alliance Associates L.L.C.
  Delaware
Blackstone Strategic Alliance Fund IV (Lux GP) S.à r.l.
  Luxembourg
Blackstone Strategic Capital Advisors L.L.C.
  Delaware
Blackstone Strategic Capital Associates (Cayman) II Ltd.
  Cayman Islands
15

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Strategic Capital Associates B L.L.C.
  Delaware
Blackstone Strategic Capital Associates II (Lux) S.à r.l.
  Luxembourg
Blackstone Strategic Capital Associates II B L.P.
  Delaware
Blackstone Strategic Capital Associates II L.P.
  Delaware
Blackstone Strategic Capital Associates III (LUX) S.à r.l.
  Luxembourg
Blackstone Strategic Capital Associates III B L.P.
  Delaware
Blackstone Strategic Capital Associates III L.P.
  Delaware
Blackstone Strategic Capital Associates L.L.C.
  Delaware
Blackstone Strategic Capital Holdings Director L.L.C.
  Delaware
Blackstone Strategic Capital Management Associates III (Cayman) L.P.
  Cayman Islands
Blackstone Strategic Opportunity Associates L.L.C.
  Delaware
Blackstone Switzerland GmbH
  Switzerland
Blackstone Tactical Opportunities AD Associates (Cayman) - NQ Ltd.
  Cayman Islands
Blackstone Tactical Opportunities AD Associates (Cayman) Ltd.
  Cayman Islands
Blackstone Tactical Opportunities Advisors L.L.C.
  Delaware
Blackstone Tactical Opportunities Associates - NQ L.L.C.
  Delaware
Blackstone Tactical Opportunities Associates (Lux) GP S.à r.l.
  Luxembourg
Blackstone Tactical Opportunities Associates II L.L.C.
  Delaware
Blackstone Tactical Opportunities Associates III - NQ L.P.
  Delaware
Blackstone Tactical Opportunities Associates III L.P.
  Delaware
Blackstone Tactical Opportunities Associates IV (Lux) GP S.à r.l.
  Luxembourg
Blackstone Tactical Opportunities Associates IV L.P.
  Delaware
Blackstone Tactical Opportunities Associates L.L.C.
  Delaware
Blackstone Tactical Opportunities Fund - KO L.P.
  Delaware
Blackstone Tactical Opportunities Fund II - PS (CYM) AIV-F L.P.
  Cayman Islands
BLACKSTONE TACTICAL OPPORTUNITIES FUND II - PS AIV L.P.
  Delaware
Blackstone Tactical Opportunities LR Associates (Cayman) - NQ Ltd.
  Cayman Islands
Blackstone Tactical Opportunities LR Associates (Cayman) Ltd.
  Cayman Islands
Blackstone Tactical Opportunities LR Associates-B (Cayman) Ltd.
  Cayman Islands
Blackstone Tactical Opportunities Management Associates (Cayman) - NQ L.P.
  Cayman Islands
Blackstone Tactical Opportunities Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone Tactical Opportunities Management Associates III (Cayman) - NQ L.P.
  Cayman Islands
Blackstone Tactical Opportunities Management Associates III (Cayman) L.P.
  Cayman Islands
Blackstone Tactical Opportunities Management Associates IV (CYM) - NQ L.P.
  Cayman Islands
Blackstone Tactical Opportunities RL Associates L.P.
  Cayman Islands
Blackstone Tactical Opportunities Stable Income Associates - NQ L.L.C.
  Delaware
Blackstone Tactical Opportunities Stable Income Associates L.L.C.
  Delaware
Blackstone Tactical Opportunities Stable Income Associates Offshore - NQ L.L.C.
  Delaware
Blackstone Tactical Opportunities Stable Income LR Associates (Cayman) - NQ Ltd.
  Cayman Islands
Blackstone Tactical Opportunities Stable Income LR Associates (Cayman) Ltd.
  Cayman Islands
Blackstone Tactical Opportunities Stable Income Management Associates (Cayman) - NQ L.P.
  Cayman Islands
Blackstone Tactical Opportunities Stable Income Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone Technology Senior Direct Lending Associates (Delaware) LLC
  Delaware
Blackstone Technology Senior Direct Lending Associates LP
  Delaware
Blackstone Technology Solutions LLC
  Delaware
Blackstone Tenex L.P.
  Delaware
Blackstone TM L.L.C.
  Delaware
Blackstone TORO REIT Manager, L.L.C.
  Delaware
Blackstone Total Alternatives Solution Associates 2015 I L.P.
  Delaware
16

Name
  
Jurisdiction of
Incorporation or
Organization
Blackstone Total Alternatives Solution Associates 2016 L.P.
  Delaware
Blackstone Total Alternatives Solution Associates IV L.P.
  Delaware
Blackstone Total Alternatives Solution Associates L.P.
  Delaware
Blackstone Total Alternatives Solution Associates V L.P.
  Delaware
Blackstone Total Alternatives Solution Associates VI L.P.
  Delaware
Blackstone Total Alternatives Solution Associates VII L.P.
  Delaware
Blackstone Total Alternatives Solution Associates VIII L.P.
  Delaware
Blackstone Total Alternatives Solution Associates-NQ 2015 I L.P.
  Delaware
Blackstone Total Alternatives Solution Associates-NQ 2016 L.P.
  Delaware
Blackstone Total Alternatives Solution Associates-NQ IV L.P.
  Delaware
Blackstone Total Alternatives Solution Associates-NQ L.P.
  Delaware
Blackstone Total Alternatives Solution Associates-NQ V L.P.
  Delaware
Blackstone Treasury Asia Pte. Limited
  Singapore
Blackstone Treasury Holdings I Funding L.L.C.
  Delaware
Blackstone Treasury Holdings I L.L.C.
  Delaware
Blackstone Treasury Holdings II L.L.C.
  Delaware
Blackstone Treasury Holdings III L.L.C.
  Delaware
Blackstone Treasury International Holdings L.L.C.
  Delaware
Blackstone U.S. CLO Equity Associates (Cayman) Ltd.
  Cayman Islands
Blackstone U.S. CLO Equity Associates (Delaware) LLC
  Delaware
Blackstone U.S. CLO Equity Associates LP
  Cayman Islands
Blackstone UK Mortgage Opportunities LR Associates (Cayman) Ltd.
  Cayman Islands
Blackstone UK Mortgage Opportunities Management Associates (Cayman) L.P.
  Cayman Islands
Blackstone UK Real Estate Supervisory Asia LLP
  United Kingdom
Blackstone UK Real Estate Supervisory VII LLP
  United Kingdom
Blackstone UK Real Estate Supervisory VIII LLP
  United Kingdom
Blackstone/GSO Capital Solutions Associates LLC
  Delaware
BMA Asia II GP L.P.
  Cayman Islands
BMA Asia II L.L.C.
  Delaware
BMA Asia II Ltd.
  Cayman Islands
BMA Asia III GP L.P.
  Cayman Islands
BMA Asia III L.L.C.
  Delaware
BMA Asia III Ltd.
  Cayman Islands
BMA Asia L.L.C.
  Delaware
BMA Asia Ltd.
  Cayman Islands
BMA Asia NQ L.L.C.
  Delaware
BMA Asia NQ Ltd.
  Cayman Islands
BMA IX GP (CYM) L.P.
  Cayman Islands
BMA IX GP L.P.
  Delaware
BMA IX L.L.C.
  Delaware
BMA V L.L.C.
  Delaware
BMA V USS L.L.C.
  Delaware
BMA VI L.L.C.
  Delaware
BMA VII L.L.C.
  Delaware
BMA VII NQ L.L.C.
  Delaware
BMA VIII GP (CYM) L.P.
  Cayman Islands
BMA VIII GP L.P.
  Delaware
BMA VIII L.L.C.
  Delaware
BMA VI-NQ L.L.C.
  Delaware
17

Name
  
Jurisdiction of
Incorporation or
Organization
BMAC WH 1 LLC
  Delaware
BMEZ Advisors L.L.C.
  Delaware
BML Associates (Cayman) L.P.
  Cayman Islands
BMLA L.L.C.
  Delaware
BMP II Side-by-Side GP L.L.C.
  Delaware
BMP II USS Side-by-Side GP L.L.C.
  Delaware
BPP Advisors L.L.C.
  Delaware
BPP Core Asia Associates L.P.
  Cayman Islands
BPP Core Asia Associates-NQ L.P.
  Cayman Islands
BPP Core Asia L.L.C.
  Delaware
BPP Core Asia Ltd.
  Cayman Islands
BPP Core Asia-NQ L.L.C.
  Delaware
BPP Core Asia-NQ Ltd.
  Cayman Islands
BPP Pristine Co-Invest GP ULC
  Canada
BPP Pristine Co-Invest Special LP ULC
  Canada
BPP Pristine Holdings GP Limited
  Cayman Islands
BPPE Condor 1 GP S.à r.l.
  Luxembourg
BPPE Condor 2 GP S.à r.l.
  Luxembourg
BPPE REIT GP Limited
  Jersey
BRE Advisors Europe L.L.C.
  Delaware
BRE Advisors III L.L.C.
  Delaware
BRE Advisors International L.L.C.
  Delaware
BRE Advisors IV L.L.C.
  Delaware
BRE Advisors V L.L.C.
  Delaware
BRE Advisors VI L.L.C.
  Delaware
BRE Associates International (Cayman) II Ltd.
  Cayman Islands
BRE Gryphon Advisors LLC
  Delaware
BRE/SW Green Associates L.P.
  Cayman Islands
BREA Asia III (Cayman) L.P.
  Cayman Islands
BREA Edens L.L.C.
  Delaware
BREA Europe VI (Cayman) L.P.
  Cayman Islands
BREA Europe VII (Cayman) L.P.
  Cayman Islands
BREA International (Cayman) II Ltd.
  Cayman Islands
BREA International (Cayman) Ltd.
  Cayman Islands
BREA IV L.L.C.
  Delaware
BREA IX (Delaware) L.P.
  Delaware
BREA IX (Offshore) (Cayman) L.P.
  Cayman Islands
BREA IX L.L.C.
  Delaware
BREA IX Ltd.
  Cayman Islands
BREA OMP GP L.L.C.
  Delaware
BREA V L.L.C.
  Delaware
BREA VI L.L.C.
  Delaware
BREA VII L.L.C.
  Delaware
BREA VIII L.L.C.
  Delaware
BREA VIII-NQ L.L.C.
  Delaware
BREA VII-NQ L.L.C.
  Delaware
BREA VI-NQ L.L.C.
  Delaware
BREA X (Delaware) L.P.
  Delaware
BREA X (Offshore) (Cayman) L.P.
  Cayman Islands
18

Name
  
Jurisdiction of
Incorporation or
Organization
BREA X L.L.C.
  Delaware
BREA X Ltd.
  Cayman Islands
BREAI (Delaware) II L.L.C.
  Delaware
BREAI II L.P.
  Delaware
BRECA L.L.C.
  Delaware
BREDS Associates HG Loan NQ L.P.
  Delaware
BREDS Associates II Loan NQ L.P.
  Delaware
BREDS Associates II NQ L.P.
  Delaware
BREDS Associates III Loan NQ L.P.
  Delaware
BREDS Associates III NQ PE L.P.
  Delaware
BREDS Capital GP LLP
  United Kingdom
BREDS Capital UK Limited
  United Kingdom
BREDS Europe HG Holdings NQ GP Ltd.
  Cayman Islands
BREDS HG GP NQ - AIV L.L.C.
  Delaware
BREDS High-Grade GP L.L.C.
  Delaware
BREDS II Feeder Fund GP L.P.
  Cayman Islands
BREDS II Feeder GP LTD.
  Cayman Islands
BREDS II GP - Gaussian L.L.C.
  Delaware
BREDS II GP - Gaussian NQ L.L.C.
  Delaware
BREDS II GP L.L.C.
  Delaware
BREDS II GP NQ - AIV L.L.C.
  Delaware
BREDS II GP NQ L.L.C.
  Delaware
BREDS II LR Associates (Cayman) - NQ Ltd.
  Cayman Islands
BREDS III (Cayman) NQ Ltd.
  Cayman Islands
BREDS III Associates (Cayman) NQ L.P.
  Cayman Islands
BREDS III Capital GP LLP
  United Kingdom
BREDS III Capital UK Limited
  United Kingdom
BREDS III Feeder Fund GP L.P.
  Cayman Islands
BREDS III GP L.L.C.
  Delaware
BREDS III GP NQ - AIV L.L.C.
  Delaware
BREDS III GP NQ L.L.C.
  Delaware
BREDS III GP NQ PE L.L.C.
  Delaware
BREDS III Supervisory UK LLP
  United Kingdom
BREDS III UK L.L.C.
  Delaware
BREDS III UK Supervisory Limited
  United Kingdom
BREDS IV (AIV) GP L.L.C.
  Delaware
BREDS IV Capital GP LLP
  United Kingdom
BREDS IV Capital UK Limited
  United Kingdom
BREDS IV Feeder Fund GP L.P.
  Cayman Islands
BREDS IV GP L.L.C.
  Delaware
BREDS IV L.P.
  Delaware
BREDS IV Supervisory UK LLP
  United Kingdom
BREDS IV UK Supervisory Limited
  United Kingdom
BREDS IV-A L.P.
  Delaware
BREDS Supervisory UK LLP
  United Kingdom
BREDS UK L.L.C.
  Delaware
BREDS UK Supervisory Limited
  United Kingdom
BREDS V (AIV) GP L.L.C.
  Delaware
BREDS V Feeder Fund GP L.P.
  Cayman Islands
19

Name
  
Jurisdiction of
Incorporation or
Organization
BREDS V GP L.L.C.
  Delaware
BREDS V L.P.
  Delaware
BREDS V-A L.P.
  Delaware
BREIT Special Limited Partner L.P.
  Delaware
BREMAI II L.P.
  Canada
BREP Asia - NQ L.L.C.
  Delaware
BREP Asia - NQ Side-by-Side GP L.L.C.
  Delaware
BREP Asia II L.L.C.
  Delaware
BREP Asia II Ltd.
  Cayman Islands
BREP Asia III L.L.C.
  Delaware
BREP Asia III Ltd.
  Cayman Islands
BREP Asia L.L.C.
  Delaware
BREP Asia Ltd.
  Cayman Islands
BREP Asia Side-by-Side GP L.L.C.
  Delaware
BREP Asia UK L.L.C.
  Delaware
BREP Capital Asia III L.L.C.
  Delaware
BREP Capital GP Asia III L.P.
  Delaware
BREP Capital GP X L.P.
  Delaware
BREP Capital X L.L.C.
  Delaware
BREP Chiswick GP L.L.C.
  Delaware
BREP Cognac Co-Invest GP ULC
  Canada
BREP Cognac Co-Invest Special LP ULC
  Canada
BREP Co-Invest GP L.L.C.
  Delaware
BREP Co-Invest GP L.P.
  Delaware
BREP Edens Associates L.P.
  Delaware
BREP Europe III GP L.L.C.
  Delaware
BREP Europe III GP L.P.
  Delaware
BREP Europe III-NQ GP L.L.C.
  Delaware
BREP Europe III-NQ GP L.P.
  Delaware
BREP International GP L.L.C.
  Delaware
BREP International GP L.P.
  Delaware
BREP International II - Q GP L.P.
  Delaware
BREP International II GP L.L.C.
  Delaware
BREP International II GP L.P.
  Delaware
BREP International II-Q GP L.L.C.
  Delaware
BREP IV (Offshore) GP L.L.C.
  Delaware
BREP IV (Offshore) GP L.P.
  Delaware
BREP IV Side-by-Side GP L.L.C.
  Delaware
BREP IX (Offshore) GP L.L.C.
  Delaware
BREP IX (Offshore) GP L.P.
  Delaware
BREP OMP Associates L.P.
  Delaware
BREP Supervisory Asia III L.L.C.
  Delaware
BREP Supervisory GP Asia III L.P.
  Delaware
BREP Supervisory GP X L.P.
  Delaware
BREP V (Offshore) GP L.L.C.
  Delaware
BREP V (Offshore) GP L.P.
  Delaware
BREP V Side-by-Side GP L.L.C.
  Delaware
BREP VI - NQ Side-by-Side GP L.L.C.
  Delaware
BREP VI - Q (Offshore) GP L.L.C.
  Delaware
20

Name
  
Jurisdiction of
Incorporation or
Organization
BREP VI (Offshore) GP L.L.C.
  Delaware
BREP VI (Offshore) GP L.P.
  Delaware
BREP VI Side-by-Side GP L.L.C.
  Delaware
BREP VII (Offshore) GP L.L.C.
  Delaware
BREP VII (Offshore) GP L.P.
  Delaware
BREP VII Side-by-Side GP L.L.C.
  Delaware
BREP VIII (Offshore) GP L.L.C.
  Delaware
BREP VIII (Offshore) GP L.P.
  Delaware
BREP VIII Side-by-Side GP L.L.C.
  Delaware
BREP VIII UK L.L.C.
  Delaware
BREP VIII-NQ (Offshore) GP L.L.C.
  Delaware
BREP VIII-NQ (Offshore) GP L.P.
  Delaware
BREP VIII-NQ Side-by-Side GP L.L.C.
  Delaware
BREP VII-NQ (Offshore) GP L.L.C.
  Delaware
BREP VII-NQ (Offshore) GP L.P.
  Delaware
BREP VII-NQ Side-by-Side GP L.L.C.
  Delaware
BREP VI-Q (Offshore) GP L.P.
  Delaware
BREP X (Offshore) GP L.L.C.
  Delaware
BREP X (Offshore) GP L.P.
  Delaware
BRESE L.L.C.
  Delaware
BSAF III GP LLC
  Delaware
BSCA Advisors L.L.C.
  Delaware
BSCA Associates L.L.C.
  Delaware
BSCA II B GP L.P.
  Delaware
BSCA II B L.L.C.
  Delaware
BSCA II GP L.P.
  Delaware
BSCA II L.L.C.
  Delaware
BSCA III B L.L.C.
  Delaware
BSCA III B GP L.P.
  Delaware
BSCA III GP L.P.
  Delaware
BSCA III L.L.C.
  Delaware
BSCH Side-By-Side GP L.L.C.
  Delaware
BSOA Investment Partnership GP L.L.C.
  Delaware
BSOA Investment Partnership L.P.
  Delaware
BSP Solstice GP L.L.C.
  Delaware
BSP Summer GP L.L.C.
  Delaware
BSSF Holdings Intermediary (Cayman) Ltd.
  Cayman Islands
BSSF I AIV GP L.L.C.
  Delaware
BTAS Associates L.L.C.
  Delaware
BTAS Associates-NQ L.L.C.
  Delaware
BTD CP Holdings LP
  Delaware
BTO - FCC NQ Side-by-Side GP L.L.C.
  Delaware
BTO - NQ Side-by-Side GP L.L.C.
  Delaware
BTO AD (Cayman) - NQ GP L.P.
  Cayman Islands
BTO AD GP L.L.C.
  Delaware
BTO Ascenty ESC (Cayman), L.P.
  Cayman Islands
BTO Asia SBS Holding I Ltd.
  Cayman Islands
BTO BA Fiber ESC (Cayman) L.P.
  Cayman Islands
BTO BTIG ESC Holdings L.P.
  Delaware
21

Name
  
Jurisdiction of
Incorporation or
Organization
BTO Caesars Manager L.L.C.
  Delaware
BTO Commodities Manager L.L.C.
  Delaware
BTO CR Fund Associates (Cayman) L.P.
  Cayman Islands
BTO DE GP - NQ L.L.C.
  Delaware
BTO Eletson Manager L.L.C.
  Delaware
BTO ESC Park Holdings L.P.
  Delaware
BTO ESC Precision Holdings L.P.
  Delaware
BTO ESC PTI International Holdings L.P.
  Cayman Islands
BTO ESC PTI US Holdings L.P.
  Delaware
BTO ESC RGB Holdings L.P.
  Delaware
BTO European Diversified Property Manager LLC
  Delaware
BTO FCC Associates - NQ L.L.C.
  Delaware
BTO Feeder Manager IV (CYM) L.L.C.
  Cayman Islands
BTO Feeder Manager IV L.L.C.
  Delaware
BTO Flames Manager Inc.
  Canada
BTO Freeze Parent GP LLC
  Delaware
BTO Gamma Manager L.L.C.
  Delaware
BTO George Manager L.L.C.
  Delaware
BTO GP - NQ L.L.C.
  Delaware
BTO GP Finance LLC
  Delaware
BTO GP L.L.C.
  Delaware
BTO Hafnia Manager L.L.C.
  Delaware
BTO Hercules Manager L.L.C.
  Delaware
BTO HFZ Manager L.L.C.
  Delaware
BTO Holdco Manager L.L.C.
  Delaware
BTO Holdings (Cayman) - NQ Manager L.L.C.
  Delaware
BTO Holdings Cayman Manager L.L.C.
  Delaware
BTO Holdings Manager - NQ L.L.C.
  Delaware
BTO Holdings Manager (LUX) S.à r.l.
  Luxembourg
BTO Holdings Manager IV (CYM) L.L.C.
  Cayman Islands
BTO Holdings Manager IV L.L.C.
  Delaware
BTO Holdings Manager L.L.C.
  Delaware
BTO Holdings Manager Ltd.
  Cayman Islands
BTO IH3 Manager L.L.C.
  Delaware
BTO Italian Manager L.L.C.
  Delaware
BTO Koala Manager L.L.C.
  Delaware
BTO Life Settlement Manager L.L.C.
  Delaware
BTO NCR Holdings - ESC L.P.
  Delaware
BTO Night Manager L.L.C.
  Delaware
BTO Omaha Manager L.L.C.
  Delaware
BTO One Market Plaza Manager L.L.C.
  Delaware
BTO Peachtree Fund ESC L.P.
  Delaware
BTO Peachtree Holdings Manager L.L.C.
  Delaware
BTO Pluto Manager L.L.C.
  Delaware
BTO Resolution Manager L.L.C.
  Delaware
BTO Rothesay Manager L.L.C.
  Delaware
BTO RPL Manager L.L.C.
  Delaware
BTO Side-by-Side GP L.L.C.
  Delaware
BTO SKYY Master Holding GP
  Cayman Islands
22

Name
  
Jurisdiction of
Incorporation or
Organization
BTOA - NQ L.L.C.
  Delaware
BTOA AD L.P.
  Delaware
BTOA II L.L.C.
  Delaware
BTOA III - NQ L.P.
  Delaware
BTOA III (Cayman) - GP L.P.
  Cayman Islands
BTOA III (Cayman) - NQ GP L.P.
  Cayman Islands
BTOA III L.P.
  Delaware
BTOA III Lux L.L.C.
  Delaware
BTOA III Lux Ltd.
  Cayman Islands
BTOA IV (CYM) - NQ GP L.P.
  Cayman Islands
BTOA IV L.P.
  Delaware
BTOA L.L.C.
  Delaware
BTOSI GP - NQ L.L.C.
  Delaware
BTOSI GP L.L.C.
  Delaware
BTOSI Holdings Manager - NQ L.L.C.
  Delaware
BTOSIA - NQ L.L.C.
  Delaware
BTOSIA L.L.C.
  Delaware
BTOSIAO - NQ L.L.C.
  Delaware
BUMO GP L.L.C.
  Delaware
BX Ambar Power 2 Aggregator GP L.L.C.
  Delaware
BX Bodyguard Royalties (CYM) GP L.L.C.
  Cayman Islands
BX Eiris Solutions Aggregator GP (CYM) L.L.C.
  Cayman Islands
BX ELC Associates LLC
  Delaware
BX Gates ML-3 Holdco LLC
  Cayman Islands
BX Mexico Advisors, S.A. de C.V.
  Mexico
BX Pillar Holdco II LLC
  Delaware
BX Pillar Holdco LLC
  Delaware
BX RE Ventures L.L.C.
  Delaware
BX REIT Advisors L.L.C.
  Delaware
BX Shipston SCSp
  Luxembourg
BXC Armadillo Co-Investment Fund-D GP LLC
  Delaware
BXC Azul Associates LLC
  Delaware
BXC Balthazar Fund Associates LLC
  Delaware
BXC Centre Street Associates LLC
  Delaware
BXC DL (WH) Holdings LLC
  Delaware
BXC Fuji Associates LLC
  Delaware
BXC Jade Associates LLC
  Delaware
BXC KFA Fund Associates LLC
  Delaware
BXC Lucy Associates LLC
  Delaware
BXC Magnesium Associates LLC
  Delaware
BXC MayBay Finance GP Inc.
  Delaware
BXC Tax Credit Strategies LLC
  Delaware
BXCI Pinehurst GP LLC
  Delaware
BXD Associates (Delaware) LP
  Delaware
BXD WH 1 LP
  Delaware
BXD WH 2 LP
  Delaware
BXDE Associates (CYM) LP
  Cayman Islands
BXD-T Associates (Delaware) LP
  Delaware
BXD-T Cayman GP LP
  Cayman Islands
23

Name
  
Jurisdiction of
Incorporation or
Organization
BXD-T WH 1 LP
  Delaware
BXG GP L.L.C.
  Delaware
BXG Holdings Manager (CYM) L.L.C.
  Cayman Islands
BXG Holdings Manager L.L.C.
  Delaware
BXG II (Cayman) Ltd.
  Cayman Islands
BXG II GP L.L.C.
  Delaware
BXG II Side-by-Side GP L.L.C.
  Delaware
BXG Side-by-Side GP L.L.C.
  Delaware
BXGA GP (CYM) L.P.
  Cayman Islands
BXGA GP L.P.
  Delaware
BXGA II GP (CYM) L.P.
  Cayman Islands
BXGA II GP L.P.
  Delaware
BXGA II L.L.C.
  Delaware
BXGA L.L.C.
  Delaware
BXINFRA Aggregator (CYM) L.P.
  Cayman Islands
BXINFRA Finance GP L.L.C.
  Cayman Islands
BXINFRA ICP L.L.C.
  Delaware
BXINFRA LCS L.L.C.
  Delaware
BXINFRA US (E) (CYM) Feeder L.P.
  Cayman Islands
BXINFRA US (E) Holdco L.L.C.
  Delaware
BXINFRA US (L) Holdco L.P.
  Delaware
BXINFRA US (NE) Holdco L.L.C.
  Delaware
BXINFRA US Aggregator (E) (CYM) L.P.
  Cayman Islands
BXINFRA US Aggregator (NE) (CYM) L.P.
  Cayman Islands
BXINFRA US Finance (L) L.P.
  Cayman Islands
BXINFRA US Finance 1 L.P.
  Cayman Islands
BXINFRA US Lower Fund 1 L.P.
  Delaware
BXINFRA US Lower Fund 2 L.P.
  Delaware
BXINFRA US Lower Fund 3 L.P.
  Delaware
BXINFRA WH 1 L.L.C.
  Delaware
BXINFRA WH 3 L.L.C.
  Delaware
BXINFRA WH 5 L.L.C.
  Delaware
BXINFRA WH 6 L.L.C.
  Delaware
BXINFRA WH 7 L.L.C.
  Delaware
BXINFRA WH 8 L.L.C.
  Delaware
BXISA L.L.C.
  Delaware
BXJB Holdings Manager L.L.C.
  Cayman Islands
BXJC Holdings Manager L.L.C.
  Cayman Islands
BXLS Family Investment Partnership (CYM) V - ESC L.P.
  Cayman Islands
BXLS Family Investment Partnership V - ESC L.P.
  Delaware
BXLS LR Associates (Cayman) V Ltd.
  Cayman Islands
BXLS V GP L.P.
  Delaware
BXLS V L.L.C.
  Delaware
BXLS V Side-by-Side GP L.L.C.
  Delaware
BXLS VI GP L.P.
  Delaware
BXLS VI L.L.C.
  Cayman Islands
BXLS Yield GP L.P.
  Delaware
BXLS Yield HoldCo (CYM) GP L.L.C.
  Cayman Islands
BXLS Yield L.L.C.
  Cayman Islands
24

Name
  
Jurisdiction of
Incorporation or
Organization
BXMT Advisors L.L.C.
  Delaware
BXPE Aggregator GP S.à r.l.
  Luxembourg
BXPEA L.L.C.
  Delaware
BZDIF Associates GP (DEL) L.L.C.
  Delaware
BZDIF Associates GP Ltd.
  Cayman Islands
BZDIF Associates L.P.
  Cayman Islands
BZDIF Associates Ltd.
  Cayman Islands
Capitol Gardens Associates L.L.C.
  Cayman Islands
Catalyst Fund Holdco L.P.
  Delaware
CFS ESC Lower Holdings (Delaware) GP L.L.C.
  Delaware
CFS Holdings (Cayman) ESC, L.P.
  Cayman Islands
CHK Mid-Con Co-Invest Associates LLC
  Delaware
Clarus IV GP, L.P.
  Delaware
Clarus IV GP, LLC
  Delaware
Clarus Ventures, LLC
  Delaware
Cleveland Tonkawa CIM, LLC
  Delaware
Clover CLO Advisors, LLC
  Delaware
Clover Credit Management, LLC
  Delaware
Clover Credit Partners CLO III, Ltd.
  Cayman Islands
Clover Holdco LLC
  Delaware
CT High Grade Partners II Co-Invest, LLC
  Delaware
CT Investment Management Co., LLC
  Delaware
DCI GP, LLC
  Delaware
Emerald Aggregator II GP. L.L.C.
  Delaware
Equity Healthcare L.L.C.
  Delaware
ESDF II ABL Borrower Associates Ltd.
  Cayman Islands
ESDF III ABL Borrower Associates S.à r.l.
  Luxembourg
FourFive SBS Holding Ltd
  Cayman Islands
G QCM GP S.à r.l.
  Luxembourg
G QCM SLP LLC
  Delaware
G QCM Special LP
  Cayman Islands
Graphite Holdings LLC
  Delaware
GSO 3 Bear Energy Holdings Associates LLC
  Delaware
GSO Advisor Holdings L.L.C.
  Delaware
GSO Aiguille des Grands Montets Associates LLC
  Delaware
GSO Aiguille Des Grands Montets GP LTD
  Cayman Islands
GSO Altus Holdings Associates LLC
  Delaware
GSO AMD Holdings Associates LLC
  Delaware
GSO Associates LLC
  Delaware
GSO Bakken Associates I LLC
  Delaware
GSO Bandera Strategic Credit Associates I LLC
  Delaware
GSO Beacon Co-Invest Associates LLC
  Delaware
GSO BISA Blazer Associates LLC
  Delaware
GSO Blazer Holdings Associates LLC
  Delaware
GSO BSOF SLP LLC
  Delaware
GSO Cactus Credit Opportunities Associates LLC
  Delaware
GSO CalPeak Energy Associates LLC
  Delaware
GSO Capital Opportunities Associates II (Cayman) Ltd.
  Cayman Islands
GSO Capital Opportunities Associates II (Delaware) LLC
  Delaware
25

Name
  
Jurisdiction of
Incorporation or
Organization
GSO Capital Opportunities Associates II (Facility) LLC
  Delaware
GSO Capital Opportunities Associates II LP
  Cayman Islands
GSO Capital Opportunities Associates III (AIR) LLC
  Delaware
GSO Capital Opportunities Associates III LLC
  Delaware
GSO Capital Opportunities Associates IV (Cayman) Ltd.
  Cayman Islands
GSO Capital Opportunities Associates IV (Delaware) LLC
  Delaware
GSO Capital Opportunities Associates IV (EEA) GP S.à r.l.
  Luxembourg
GSO Capital Opportunities Associates IV LP
  Cayman Islands
GSO Capital Opportunities Associates LLC
  Delaware
GSO Capital Opportunities Overseas Associates LLC
  Delaware
GSO Capital Partners (California) LLC
  Delaware
GSO Capital Partners (Texas) GP LLC
  Texas
GSO Capital Partners (Texas) LP
  Texas
GSO Capital Partners (UK) Limited
  United Kingdom
GSO Capital Partners GP L.L.C.
  Delaware
GSO Capital Solutions Associates II (Cayman) Ltd.
  Cayman Islands
GSO Capital Solutions Associates II (Delaware) LLC
  Delaware
GSO Capital Solutions Associates II LP
  Cayman Islands
GSO Capital Solutions Associates III (Cayman) Ltd.
  Cayman Islands
GSO Capital Solutions Associates III (Delaware) LLC
  Delaware
GSO Capital Solutions Associates III (EEA) GP S.à r.l.
  Luxembourg
GSO Capital Solutions Associates III LP
  Cayman Islands
GSO Churchill Associates II LLC
  Delaware
GSO Churchill Associates LLC
  Delaware
GSO ClearGen Holdings Associates LLC
  Delaware
GSO CLO Opportunity Associates LLC
  Delaware
GSO Coastline Credit Associates LLC
  Delaware
GSO COF III Co-Investment Associates (AIR) LLC
  Delaware
GSO COF III Co-Investment Associates LLC
  Delaware
GSO COF IV Co-Investment Associates LLC
  Delaware
GSO Co-Investment Fund-D Associates LLC
  Delaware
GSO Co-Investor WPX-C Associates LLC
  Delaware
GSO Community Development Capital Group IV Associates LP
  Delaware
GSO Convoy Holdings Associates LLC
  Delaware
GSO Credit Alpha Associates II (Cayman) Ltd.
  Cayman Islands
GSO Credit Alpha Associates II (Delaware) LLC
  Delaware
GSO Credit Alpha Associates II LP
  Cayman Islands
GSO Credit Alpha Associates LLC
  Delaware
GSO Credit Alpha Diversified Alternatives Associates LLC
  Delaware
GSO Credit-A Associates LLC
  Delaware
GSO CSF III Co-Investment Associates (Cayman) Ltd.
  Cayman Islands
GSO CSF III Co-Investment Associates (Delaware) LLC
  Delaware
GSO CSF III Co-Investment Associates LP
  Cayman Islands
GSO Delaware Holdings Associates LLC
  Delaware
GSO Diamond Portfolio Associates LLC
  Delaware
GSO Direct Lending Fund-D Associates LLC
  Delaware
GSO DL Co-Invest CI Associates LLC
  Delaware
GSO DL Co-Invest EIS Associates LLC
  Delaware
GSO DP Associates LLC
  Delaware
26

Name
  
Jurisdiction of
Incorporation or
Organization
GSO DrillCo Holdings Associates II LLC
  Delaware
GSO DrillCo Holdings Associates LLC
  Delaware
GSO EM Holdings Associates LLC
  Delaware
GSO Energy E&P Holdings 4 Co-Invest Associates LLC
  Delaware
GSO Energy Lending Fund-A Onshore Associates LLC
  Delaware
GSO Energy Lending Fund-A Overseas Associates LLC
  Delaware
GSO Energy Market Opportunities Associates LLC
  Delaware
GSO Energy Partners-A Associates LLC
  Delaware
GSO Energy Partners-B Associates LLC
  Delaware
GSO Energy Partners-C Associates II LLC
  Delaware
GSO Energy Partners-C Associates LLC
  Delaware
GSO Energy Partners-D Associates LLC
  Delaware
GSO Energy Partners-E Associates LLC
  Delaware
GSO Energy Select Opportunities Associates II (Cayman) Ltd.
  Cayman Islands
GSO Energy Select Opportunities Associates II (Delaware) LLC
  Delaware
GSO Energy Select Opportunities Associates II (EEA) GP S.à r.l.
  Luxembourg
GSO Energy Select Opportunities Associates II LP
  Cayman Islands
GSO Energy Select Opportunities Associates LLC
  Delaware
GSO Equitable Holdings Associates LLC
  Delaware
GSO European Senior Debt Associates II (Cayman) Ltd.
  Cayman Islands
GSO European Senior Debt Associates II (Delaware) LLC
  Delaware
GSO European Senior Debt Associates II (EEA) GP S.à r.l.
  Luxembourg
GSO European Senior Debt Associates II LP
  Cayman Islands
GSO European Senior Debt Associates LLC
  Delaware
GSO FPP Associates LLC
  Delaware
GSO FSGCOF Holdings LLC
  Delaware
GSO GEPH Holdings Associates LLC
  Delaware
GSO Global Dynamic Credit Associates LLC
  Delaware
GSO Harrington Credit Alpha Associates L.L.C.
  Delaware
GSO Holdings I L.L.C.
  Delaware
GSO Holdings II L.L.C.
  Delaware
GSO Holdings III L.L.C.
  Delaware
GSO IH Holdings Associates LLC
  Delaware
GSO IM Holdings Associates LLC
  Delaware
GSO Jasmine Associates LLC
  Delaware
GSO M5 Holdings Associates LLC
  Delaware
GSO M6 Holdings Associates LLC
  Delaware
GSO MAK Associates LLC
  Delaware
GSO MMBU Holdings Associates LLC
  Delaware
GSO Nemo Associates LLC
  Delaware
GSO Oasis Credit Associates LLC
  Delaware
GSO Orchid Associates LLC
  Delaware
GSO Overseas Associates LLC
  Delaware
GSO Palmetto Capital Associates LLC
  Delaware
GSO Palmetto Opportunistic Associates LLC
  Delaware
GSO Rodeo Holdings Associates LLC
  Delaware
GSO SFRO Associates LLC
  Delaware
GSO SJ Partners Associates LLC
  Delaware
GSO Spartan Associates LLC
  Delaware
27

Name
  
Jurisdiction of
Incorporation or
Organization
GSO ST Holdings Associates LLC
  Delaware
GSO Targeted Opportunity Associates LLC
  Delaware
GSO Targeted Opportunity Master Associates LLC
  Delaware
GSO Targeted Opportunity Overseas Associates LLC
  Delaware
GSO Tiger Holdings Associates LLC
  Delaware
GSO WPX Holdings Associates LLC
  Delaware
Hancock Servicer L.L.C.
  Delaware
Harmony 2024 GP L.L.C.
  Delaware
Harvest Fund Advisors, LLC
  Delaware
Harvest Fund Holdco L.P.
  Delaware
Harvest Fund Manager LLC
  Delaware
Huskies Acquisition LLC
  Delaware
Immortality ESC Ltd.
  Cayman Islands
JN GP L.L.C.
  Cayman Islands
Joy Acquisitions SPV GP LLC
  Delaware
Lexington National Land Services, LLC
  New York
Lifestyle SBS Holding Ltd
  Cayman Islands
LNLS HoldCo LLC
  Delaware
LNLS Upper Holdings LLC
  Delaware
LSV Fund 3 GP (Cayman) Ltd.
  Cayman Islands
LSV Fund 4 GP (Cayman) Ltd.
  Cayman Islands
LSV Fund 5 GP (Cayman) Ltd.
  Cayman Islands
LSV Fund GP (Cayman) Ltd.
  Cayman Islands
MarketPark O&G HoldCo II LLC
  Delaware
MarketPark O&G HoldCo III LLC
  Delaware
MB Asia REA L.L.C.
  Delaware
MB Asia REA L.P.
  Cayman Islands
MB Asia REA Ltd.
  Cayman Islands
MB Asia Real Estate Associates L.P.
  Cayman Islands
ML Asian R.E. Fund GP, L.P.
  Cayman Islands
Motion Aggregator GP L.L.C.
  Delaware
Raven GBP Investments Limited
  Jersey
RLA European PC (LUX) GP S.à r.l.
  Luxembourg
Rome Holdco L.L.C.
  Cayman Islands
Rome Holdco L.P.
  Cayman Islands
Siccar Point (Cayman) Holdco II Limited
  Cayman Islands
Siccar Point (Cayman) Holdco III Limited
  Cayman Islands
Signal Holdings GP, L.L.C.
  Delaware
SP Duet Acquisitions GP LLC
  Delaware
SP Mars Acquisitions GP LLC
  Delaware
SP Polar Holdings GP, LLC
  Delaware
SP RA II (Cayman) - NQ GP L.P.
  Cayman Islands
SP RA II LR Associates (Cayman) - NQ Ltd.
  Cayman Islands
SP RA Stark Acquisitions GP LLC
  Delaware
SP Stark Acquisitions GP LLC
  Delaware
SPFS Advisors L.L.C.
  Delaware
SPFSA 2007 L.L.C.
  Delaware
SPFSA DE L.L.C.
  Delaware
SPFSA GP Solutions L.L.C.
  Delaware
28

Name
  
Jurisdiction of
Incorporation or
Organization
SPFSA I L.L.C.
  Delaware
SPFSA II L.L.C.
  Delaware
SPFSA III L.L.C.
  Delaware
SPFSA Infrastructure III L.L.C.
  Delaware
SPFSA Infrastructure IV L.L.C.
  Delaware
SPFSA IV L.L.C.
  Delaware
SPFSA IX L.L.C.
  Delaware
SPFSA Opportunities L.L.C.
  Delaware
SPFSA RA II - NQ L.L.C.
  Delaware
SPFSA RA II L.L.C.
  Delaware
SPFSA RE VII L.L.C.
  Delaware
SPFSA RE VIII L.L.C.
  Delaware
SPFSA V L.L.C.
  Delaware
SPFSA VI L.L.C.
  Delaware
SPFSA VII L.L.C.
  Delaware
SPFSA VIII L.L.C.
  Delaware
Steamboat Credit Opportunities GP LLC
  Delaware
StoneCo IV Corporation
  Delaware
Strategic Partners Fund Solutions Advisors L.P.
  Delaware
Strategic Partners Fund Solutions Associates - NC Real Asset Opportunities, L.P.
  Delaware
Strategic Partners Fund Solutions Associates 2007 L.P.
  Delaware
Strategic Partners Fund Solutions Associates DE L.P.
  Delaware
Strategic Partners Fund Solutions Associates GP Solutions (Lux) S.à r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates GP Solutions L.P.
  Delaware
Strategic Partners Fund Solutions Associates II L.P.
  Delaware
Strategic Partners Fund Solutions Associates III L.P.
  Delaware
Strategic Partners Fund Solutions Associates Infrastructure III (Lux) S.à r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates Infrastructure III L.P.
  Delaware
Strategic Partners Fund Solutions Associates Infrastructure IV (LUX) S.à r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates Infrastructure IV L.P.
  Delaware
Strategic Partners Fund Solutions Associates IV L.P.
  Delaware
Strategic Partners Fund Solutions Associates IX (Lux) S.à r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates IX AIV L.P.
  Delaware
Strategic Partners Fund Solutions Associates IX L.P.
  Delaware
Strategic Partners Fund Solutions Associates Opportunities L.P.
  Delaware
Strategic Partners Fund Solutions Associates RA II (Cayman) - NQ L.P.
  Cayman Islands
Strategic Partners Fund Solutions Associates RA II, L.P.
  Delaware
Strategic Partners Fund Solutions Associates Real Estate VI L.P.
  Delaware
Strategic Partners Fund Solutions Associates Real Estate VII L.P.
  Delaware
Strategic Partners Fund Solutions Associates Real Estate VIII (Lux) S.a r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates Real Estate VIII L.P.
  Delaware
Strategic Partners Fund Solutions Associates V L.P.
  Delaware
Strategic Partners Fund Solutions Associates VI L.P.
  Delaware
Strategic Partners Fund Solutions Associates VII AIV L.P.
  Delaware
Strategic Partners Fund Solutions Associates VII L.P.
  Delaware
Strategic Partners Fund Solutions Associates VIII (Lux) S.à r.l.
  Luxembourg
Strategic Partners Fund Solutions Associates VIII L.P.
  Delaware
Strategic Partners Fund Solutions GP (Offshore) Ltd.
  Cayman Islands
Sunrise Holdco S.à r.l
  Luxembourg
29

Name
  
Jurisdiction of
Incorporation or
Organization
TBG Realty Corp.
  New York
The Blackstone Group (Australia) Pty Limited
  Australia
The Blackstone Group (HK) Holdings Limited
  Hong Kong
The Blackstone Group (HK) Limited
  Hong Kong
The Blackstone Group Germany GmbH
  Germany
The Blackstone Group International (Cayman) Limited
  Cayman Islands
The Blackstone Group International Limited
  United Kingdom
The Blackstone Group Japan K.K.
  Japan
The Blackstone Group Mauritius II Ltd
  Mauritius
The Blackstone Group Mauritius Ltd
  Mauritius
The Blackstone Group Spain SL.
  Spain
Turquoise Associates Limited
  Cayman Islands
Utica Royalty Associates II LLC
  Delaware
Valkyrie BTO Aviation L.L.C.
  Delaware
Wolverine TopCo GP, LLC
  Delaware
30

Exhibit 22.1
Subsidiary Guarantors and Issuers of Guaranteed Securities
As of December 31, 2024, the 5.000% Senior Notes due 2034 issued by Blackstone Reg Finance Co. L.L.C., a subsidiary of Blackstone Inc. (the “Company”),
were guaranteed by the Company and the following subsidiaries of the Company:
 
Subsidiary
   Jurisdiction of Organization
Blackstone Holdings I L.P.
  Delaware
Blackstone Holdings AI L.P.
  Delaware
Blackstone Holdings II L.P.
  Delaware
Blackstone Holdings III L.P.
  Québec
Blackstone Holdings IV L.P.
  Québec

Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the following Registration Statements No. 333-283540 on Form S-3 and the following Registration Statements
on Form S-8 of our report dated February 28, 2025, relating to the consolidated financial statements of Blackstone Inc. and subsidiaries (“Blackstone”) and the
effectiveness of Blackstone’s internal control over financial reporting, appearing in the Annual Report on Form 10-K of Blackstone for the year ended
December 31, 2024:
•
  Registration Statement No. 333-277332 (Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-270007 (Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-263058 (Blackstone Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-253660 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-236788 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-230020 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-223346 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-216225 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-209758 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-202359 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-194234 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-186999 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-179775 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-172451 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-165115 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-157635 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
•
  Registration Statement No. 333-143948 (The Blackstone Group Inc. Amended and Restated 2007 Equity Incentive Plan) on Form S-8
/s/ DELOITTE & TOUCHE LLP
New York, New York
February 28, 2025

Exhibit 31.1
Chief Executive Officer Certification
I, Stephen A. Schwarzman, certify that:
1.
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2024 of Blackstone Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the Registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant’s internal control over financial reporting; and
5.
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal
control over financial reporting.
Date: February 28, 2025
 
/s/ Stephen A. Schwarzman
Stephen A. Schwarzman
Chief Executive Officer

Exhibit 31.2
Chief Financial Officer Certification
I, Michael S. Chae, certify that:
1.
I have reviewed this Annual Report on Form 10-K for the year ended December 31, 2024 of Blackstone Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
4.
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for
the Registrant and have:
a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being prepared;
b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
external purposes in accordance with generally accepted accounting principles;
c)
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent
fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant’s internal control over financial reporting; and
5.
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the
Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):
a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal
control over financial reporting.
Date: February 28, 2025
 
/s/ Michael S. Chae
Michael S. Chae
Chief Financial Officer

Exhibit 32.1
Certification of the Chief Executive Officer
Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Annual Report of Blackstone Inc. (the “Company”) on Form 10-K for the year ended December 31, 2024 as filed with the
Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen A. Schwarzman, Chief Executive Officer of the Company, certify, pursuant
to 18 U.S.C. Section § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: February 28, 2025
 
/s/ Stephen A. Schwarzman
Stephen A. Schwarzman
Chief Executive Officer
*
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate
disclosure document.

Exhibit 32.2
Certification of the Chief Financial Officer
Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
In connection with the Annual Report of Blackstone Inc. (the “Company”) on Form 10-K for the year ended December 31, 2024 as filed with the
Securities and Exchange Commission on the date hereof (the “Report”), I, Michael S. Chae, Chief Financial Officer of the Company, certify, pursuant to 18
U.S.C. Section § 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
Date: February 28, 2025
 
/s/ Michael S. Chae
Michael S. Chae
Chief Financial Officer
*
The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate
disclosure document.

Exhibit 99.1
Section 13(r) Disclosure
Mundys S.p.A. (formerly “Atlantia S.p.A.”) provided the disclosure reproduced below in connection with activities during the fiscal year ended
December 31, 2024. We have not independently verified or participated in the preparation of this disclosure.
“Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934. Funds affiliated with Blackstone first invested in Mundys S.p.A. on
November 18, 2022 in connection with the voluntary public tender offer by Schema Alfa S.p.A. for all of the shares of Mundys S.p.A., pursuant to which
such funds obtained a minority non-controlling interest in Mundys S.p.A. Mundys S.p.A. owns and controls Aeroporti di Roma S.p.A. (“ADR”), an operator
of airports in Italy including Leonardo da Vinci-Fiumicino Airport. Iran Air has historically operated periodic flights to and from Leonardo da Vinci-
Fiumicino Airport as authorized, from time to time, by an aviation-related bilateral agreement between Italy and Iran, scheduled in compliance with
European Regulation 95/93, and approved by the Italian Civil Aviation Authority. ADR, as airport operator, is under a mandatory obligation to provide
airport services to all air carriers (including Iran Air) authorized by the applicable Italian authority. The relevant turnover attributable to these activities
(whose consideration is calculated on the basis of general tariffs determined by such independent Italian authority) in the fiscal year ended December 31,
2024 was less than €210,000. Mundys S.p.A. does not track profits specifically attributable to these activities.”