Attached files
file | filename |
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8-K/A - FORM 8-K/A - Blackstone Group Inc | d316183d8ka.htm |
EX-23.1 - CONSENT OF ERNST & YOUNG - Blackstone Group Inc | d316183dex231.htm |
EX-99.1 - AUDITED CONSOLIDATED BALANCE SHEET OF HARBOURMASTER CAPITAL (HOLDINGS) LIMITED - Blackstone Group Inc | d316183dex991.htm |
EX-99.2 - UNAUDITED CONSOLIDATED BALANCE SHEET OF HARBOURMASTER CAPITAL (HOLDINGS) LIMITED - Blackstone Group Inc | d316183dex992.htm |
Exhibit 99.3
The Blackstone Group L.P. and Harbourmaster Capital (Holdings) Limited
Unaudited Pro Forma Condensed Combined Financial Statements
On January 5, 2012, The Blackstone Group L.P. (Blackstone) completed its previously announced acquisition of all of the outstanding share capital of Harbourmaster Capital (Holdings) Limited (Harbourmaster), an Island of Jersey entity, in accordance with the sale and purchase agreement entered into on October 6, 2011, for consideration consisting of cash (the Acquisition). The unaudited pro forma condensed combined statements of operations and the unaudited pro forma condensed combined statement of financial condition are based upon the historical consolidated financial statements of Blackstone and Harbourmaster after giving effect to the Acquisition, and after applying the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma condensed combined financial statements.
The historical consolidated financial statements of Harbourmaster were prepared in conformity with accounting principles generally accepted in the United Kingdom (U.K. GAAP), which differs in certain respects from accounting principles generally accepted in the United States of America (U.S. GAAP). Necessary adjustments have been made to reconcile the historical consolidated financial statements of Harbourmaster to U.S. GAAP. These adjustments relate primarily to differences such as the consolidation of variable interest entities and accounting for investments.
The unaudited pro forma condensed combined statement of financial condition as of June 30, 2011 set forth below gives effect to the acquisition of Harbourmaster as if the transaction had occurred at June 30, 2011.
The unaudited pro forma condensed combined statements of operations and explanatory notes of Blackstone set forth below for the year ended December 31, 2010 and for the six months ended June 30, 2011 give effect to the acquisition of Harbourmaster, accounted for as a purchase business combination, as if the acquisition had occurred on January 1, 2010.
The unaudited pro forma condensed combined statements of operations are provided for informational purposes only and do not purport to reflect the results of Blackstones operations had the transaction actually been consummated on January 1, 2010. Blackstone has made, in its opinion, all adjustments that are necessary to present fairly the pro forma financial data. The pro forma combined provision for income taxes may not represent the amounts that would have resulted had Blackstone and Harbourmaster filed consolidated income tax returns during the periods presented.
The purchase accounting adjustments reflected in these unaudited pro forma condensed combined financial statements are based on estimates and assumptions and therefore are subject to revision. Harbourmasters financial statement balances as of the January 5, 2012 closing may be significantly different than the June 30, 2011 balances used solely for the purposes of developing this pro forma information. In addition, as Blackstones management receives additional information its analysis of the fair value measurements of certain acquired assets and assumed liabilities could be materially different.
1
THE BLACKSTONE GROUP L.P.
Unaudited Pro Forma Condensed Combined Statement of Financial Condition
June 30, 2011
(Dollars in Thousands)
Harbourmaster | ||||||||||||||||||||
Blackstone | U.K. GAAP | U.S. GAAP Adjustments (a) |
Pro Forma Adjustments |
Pro Forma Combined |
||||||||||||||||
Assets |
||||||||||||||||||||
Cash and Cash Equivalents |
$ | 434,803 | $ | 70,650 | $ | | $ | (227,022 | )(b) (e) (f) | $ | 278,431 | |||||||||
Cash Held by Blackstone Funds and Other |
996,666 | | 423,273 | | 1,419,939 | |||||||||||||||
Investments |
15,319,002 | 10,632 | 4,418,210 | (6,355 | )(e) | 19,741,489 | ||||||||||||||
Accounts Receivable |
528,960 | | 8,815 | | 537,775 | |||||||||||||||
Reverse Repurchase Agreements |
93,975 | | | | 93,975 | |||||||||||||||
Due from Affiliates |
756,056 | 5,730 | (5,071 | ) | 2,700 | (d) | 759,415 | |||||||||||||
Intangible Assets, Net |
720,134 | | | 142,221 | (b) | 862,355 | ||||||||||||||
Goodwill |
1,703,602 | | | | 1,703,602 | |||||||||||||||
Other Assets |
339,986 | 323 | 132,284 | 17,398 | (b) | 489,991 | ||||||||||||||
Deferred Tax Assets |
1,437,947 | | | | 1,437,947 | |||||||||||||||
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|
|||||||||||
Total Assets |
$ | 22,331,131 | $ | 87,335 | $ | 4,977,511 | $ | (71,058 | ) | $ | 27,324,919 | |||||||||
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Liabilities and Partners Capital |
||||||||||||||||||||
Loans Payable |
$ | 9,300,142 | $ | 1,333 | $ | 3,616,097 | $ | (1,333 | )(f) | $ | 12,916,239 | |||||||||
Due to Affiliates |
1,881,290 | | 1,041 | | 1,882,331 | |||||||||||||||
Accrued Compensation and Benefits |
980,558 | | | | 980,558 | |||||||||||||||
Securities Sold, Not Yet Purchased |
74,897 | | | | 74,897 | |||||||||||||||
Repurchase Agreements |
77,198 | | | | 77,198 | |||||||||||||||
Accounts Payable, Accrued Expenses and Other Liabilities |
735,814 | 135 | 328,679 | 19,512 | (b) (h) | 1,084,140 | ||||||||||||||
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Total Liabilities |
13,049,899 | 1,468 | 3,945,817 | 18,179 | 17,015,363 | |||||||||||||||
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Redeemable Non-Controlling Interests in Consolidated Entities |
775,185 | | | | 775,185 | |||||||||||||||
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Partners Capital |
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Partners Capital |
4,391,399 | 85,867 | | (89,237 | )(b) (d) (h) | 4,388,029 | ||||||||||||||
Appropriated Partners Capital |
211,758 | | 1,031,520 | | 1,243,278 | |||||||||||||||
Accumulated Other Comprehensive Income |
2,630 | | | | 2,630 | |||||||||||||||
Non-Controlling Interests in Consolidated Entities |
1,175,984 | | 174 | | 1,176,158 | |||||||||||||||
Non-Controlling Interests in Blackstone Holdings |
2,724,276 | | | | 2,724,276 | |||||||||||||||
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Total Partners Capital |
8,506,047 | 85,867 | 1,031,694 | (89,237 | ) | 9,534,371 | ||||||||||||||
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Total Liabilities and Partners Capital |
$ | 22,331,131 | $ | 87,335 | $ | 4,977,511 | $ | (71,058 | ) | $ | 27,324,919 | |||||||||
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See notes to unaudited pro forma condensed combined financial statements.
2
THE BLACKSTONE GROUP L.P.
Unaudited Pro Forma Condensed Combined Statement of Operations
Six Months Ended June 30, 2011
(Dollars in Thousands, Except Unit and Per Unit Data)
Harbourmaster | ||||||||||||||||||||
Blackstone | U.K. GAAP | U.S.
GAAP Adjustments (a) |
Pro Forma Adjustments |
Pro Forma Combined |
||||||||||||||||
Revenues |
||||||||||||||||||||
Management and Advisory Fees |
$ | 910,778 | $ | 35,990 | $ | (15,959 | ) | $ | 2,597 | (d) | $ | 933,406 | ||||||||
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Performance Fees |
||||||||||||||||||||
Realized |
157,966 | | | | 157,966 | |||||||||||||||
Unrealized |
1,122,889 | | 2,301 | | 1,125,190 | |||||||||||||||
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Total Performance Fees |
1,280,855 | | 2,301 | | 1,283,156 | |||||||||||||||
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Investment Income (Loss) |
||||||||||||||||||||
Realized |
32,086 | | | | 32,086 | |||||||||||||||
Unrealized |
216,106 | | | | 216,106 | |||||||||||||||
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Total Investment Income (Loss) |
248,192 | | | | 248,192 | |||||||||||||||
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Interest and Dividend Revenue |
18,338 | 151 | | | 18,489 | |||||||||||||||
Other |
3,387 | 11,333 | (5,497 | ) | | 9,223 | ||||||||||||||
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Total Revenues |
2,461,550 | 47,474 | (19,155 | ) | 2,597 | 2,492,466 | ||||||||||||||
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Expenses |
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Compensation and Benefits |
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Compensation |
1,358,915 | 2,412 | | (574 | )(c) | 1,360,753 | ||||||||||||||
Performance Fee Compensation |
||||||||||||||||||||
Realized |
42,255 | | | | 42,255 | |||||||||||||||
Unrealized |
280,623 | | | | 280,623 | |||||||||||||||
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Total Compensation and Benefits |
1,681,793 | 2,412 | | (574 | ) | 1,683,631 | ||||||||||||||
General, Administrative and Other |
255,504 | 1,938 | | 14,381 | (g) | 271,823 | ||||||||||||||
Interest Expense |
27,988 | 14 | | | 28,002 | |||||||||||||||
Fund Expenses |
10,410 | | 10,569 | | 20,979 | |||||||||||||||
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Total Expenses |
1,975,695 | 4,364 | 10,569 | 13,807 | 2,004,435 | |||||||||||||||
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Other Income |
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Net Gains (Losses) from Fund Investment Activities |
(119,845 | ) | | (56,619 | ) | | (176,464 | ) | ||||||||||||
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Income (Loss) Before Provision (Benefit) for Taxes |
366,010 | 43,110 | (86,343 | ) | (11,210 | ) | 311,567 | |||||||||||||
Provision (Benefit) for Taxes |
103,049 | (36 | ) | | | (i) | 103,013 | |||||||||||||
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Net Income (Loss) |
262,961 | 43,146 | (86,343 | ) | (11,210 | ) | 208,554 | |||||||||||||
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities |
21,885 | | | | 21,885 | |||||||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities |
(185,489 | ) | | (83,756 | ) | | (269,245 | ) | ||||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings |
297,624 | | | 17,199 | (j) | 314,823 | ||||||||||||||
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Net Income (Loss) Attributable to The Blackstone Group L.P. |
$ | 128,941 | $ | 43,146 | $ | (2,587 | ) | $ | (28,409 | ) | $ | 141,091 | ||||||||
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Net Income (Loss) Per Common UnitBasic (k) |
$ | 0.28 | $ | 0.31 | ||||||||||||||||
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Net Income (Loss) Per Common UnitDiluted (k) |
$ | 0.28 | $ | 0.30 | ||||||||||||||||
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Weighted-Average Common Units OutstandingBasic |
462,094,878 | 462,094,878 | ||||||||||||||||||
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Weighted-Average Common Units OutstandingDiluted |
468,618,734 | 468,618,734 | ||||||||||||||||||
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See notes to unaudited pro forma condensed combined financial statements.
3
THE BLACKSTONE GROUP L.P.
Unaudited Pro Forma Condensed Combined Statement of Operations
Year Ended December 31, 2010
(Dollars in Thousands, Except Unit and Per Unit Data)
Harbourmaster | ||||||||||||||||||||
Blackstone | U.K. GAAP | U.S. GAAP Adjustments (a) |
Pro Forma Adjustments |
Pro Forma Combined |
||||||||||||||||
Revenues |
||||||||||||||||||||
Management and Advisory Fees |
$ | 1,584,748 | $ | 74,826 | $ | (31,061 | ) | $ | 2,748 | (d) | $ | 1,631,261 | ||||||||
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Performance Fees |
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Realized |
366,721 | | | | 366,721 | |||||||||||||||
Unrealized |
571,113 | | 1,495 | | 572,608 | |||||||||||||||
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Total Performance Fees |
937,834 | | 1,495 | | 939,329 | |||||||||||||||
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Investment Income (Loss) |
||||||||||||||||||||
Realized |
29,157 | 281 | | | 29,438 | |||||||||||||||
Unrealized |
532,004 | 4,190 | | | 536,194 | |||||||||||||||
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Total Investment Income (Loss) |
561,161 | 4,471 | | | 565,632 | |||||||||||||||
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Interest and Dividend Revenue |
36,218 | 195 | | | 36,413 | |||||||||||||||
Other |
(619 | ) | 21,908 | (10,591 | ) | | 10,698 | |||||||||||||
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Total Revenues |
3,119,342 | 101,400 | (40,157 | ) | 2,748 | 3,183,333 | ||||||||||||||
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Expenses |
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Compensation and Benefits |
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Compensation |
3,253,226 | 7,839 | | (1,454 | )(c) | 3,259,611 | ||||||||||||||
Performance Fee Compensation |
||||||||||||||||||||
Realized |
128,316 | | | | 128,316 | |||||||||||||||
Unrealized |
228,647 | | | | 228,647 | |||||||||||||||
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Total Compensation and Benefits |
3,610,189 | 7,839 | | (1,454 | ) | 3,616,574 | ||||||||||||||
General, Administrative and Other |
466,358 | 3,943 | | 28,762 | (g) | 499,063 | ||||||||||||||
Interest Expense |
41,229 | 29 | | | 41,258 | |||||||||||||||
Fund Expenses |
26,214 | | 21,981 | | 48,195 | |||||||||||||||
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Total Expenses |
4,143,990 | 11,811 | 21,981 | 27,308 | 4,205,090 | |||||||||||||||
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Other Income |
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Net Gains (Losses) from Fund Investment Activities |
501,994 | | 7,715 | | 509,709 | |||||||||||||||
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Income (Loss) Before Provision for Taxes |
(522,654 | ) | 89,589 | (54,423 | ) | (24,560 | ) | (512,048 | ) | |||||||||||
Provision for Taxes |
84,669 | 151 | | | (i) | 84,820 | ||||||||||||||
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Net Income (Loss) |
(607,323 | ) | 89,438 | (54,423 | ) | (24,560 | ) | (596,868 | ) | |||||||||||
Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities |
84,837 | | | | 84,837 | |||||||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities |
346,312 | | (56,733 | ) | | 289,579 | ||||||||||||||
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings |
(668,444 | ) | | | 45,218 | (j) | (623,226 | ) | ||||||||||||
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Net Income (Loss) Attributable to The Blackstone Group L.P. |
$ | (370,028 | ) | $ | 89,438 | $ | 2,310 | $ | (69,778 | ) | $ | (348,058 | ) | |||||||
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Net Income (Loss) Per Common UnitBasic and Diluted (k) |
$ | (1.02 | ) | $ | (0.96 | ) | ||||||||||||||
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Weighted-Average Common Units OutstandingBasic and Diluted |
364,021,369 | 364,021,369 | ||||||||||||||||||
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See notes to unaudited pro forma condensed combined financial statements.
4
THE BLACKSTONE GROUP L.P.
Notes to Unaudited Pro Forma Condensed Combined Financial Statement
(All Dollars Are in Thousands, Except Unit and Per Unit Data, Except Where Noted)
1. Basis of Pro Forma Presentation
The unaudited pro forma condensed combined statement of financial condition as of June 30, 2011 illustrates the effect of the Acquisition as if it had been completed on June 30, 2011. The unaudited pro forma condensed combined statement of operations for the six months ended June 30, 2011 and the year ended December 31, 2010, illustrates the effect of the acquisition as if it had been completed on January 1, 2010.
The historical consolidated financial information has been adjusted in the unaudited pro forma condensed combined financial statements to give effect to pro forma events that are directly attributable to the Acquisition, factually supportable, and with respect to the statement of operations, expected to have a continuing impact on the combined results.
This unaudited pro forma condensed combined financial information should be read in conjunction with:
| the accompanying notes to the unaudited pro forma financial information, |
| the separate historical financial statements of Blackstone as of and for the year ended December 31, 2010 and the related notes thereto included in Blackstones Annual Report on Form 10-K for the year ended December 31, 2010, |
| the separate historical financial statements of Blackstone as of and for the six months ended June 30, 2011 and the related notes thereto included in Blackstones Quarterly Report on Form 10-Q for the six months ended June 30, 2011, |
| the separate historical financial statements of Harbourmaster as of and for the year ended December 31, 2010 and the related notes thereto, included as Exhibit 99.1 in this document, which includes a description of the differences from U.K. GAAP to U.S. GAAP, and |
| the separate historical financial statements of Harbourmaster as of and for the six months ended June 30, 2011 and the related notes thereto, included as Exhibit 99.2 in this document, which includes a description of the differences from U.K. GAAP to U.S. GAAP. |
The financial information for Harbourmaster as of June 30, 2011 and for the six months ended June 30, 2011 was derived from the unaudited accounting records of Harbourmaster after making adjustments to convert this financial information to U.S. GAAP and accounting policies consistent with that of Blackstone.
The financial statements of Harbourmaster were originally prepared using euros as the reporting currency. These financial statements, the related U.S. GAAP adjustments and the pro forma adjustments presented herein have been translated from euros to U.S. dollars using historic exchanges rates in accordance with U.S. GAAP accounting guidance. The exchange rates applicable to Harbourmaster during the periods presented are as follows:
Euro/U.S. Dollar | ||||||
June 30, 2011 |
Period End Spot Rate | $ | 1.4465 | |||
Six Months Ended June 30, 2011 |
Average Spot Rate | $ | 1.4032 | |||
Year Ended December 31, 2010 |
Average Spot Rate | $ | 1.3257 |
Certain reclassifications and adjustments have been made to Harbourmasters historical balances in the unaudited pro forma condensed combined financial statements to conform to Blackstones presentation and accounting policies.
The unaudited pro forma condensed combined financial information has been presented for informational purposes only. The unaudited pro forma condensed combined financial statements were prepared in accordance with regulations of the Securities and Exchange Commission and should not be considered indicative of the financial
5
THE BLACKSTONE GROUP L.P.
Notes to Unaudited Pro Forma Condensed Combined Financial Statement
(All Dollars Are in Thousands, Except Unit and Per Unit Data, Except Where Noted)
position or results of operations that would have occurred if the acquisition had been consummated on the dates indicated, nor are they indicative of the future financial position or results of operations of the combined company. There were no material transactions between Blackstone and Harbourmaster during the periods presented in the unaudited pro forma condensed combined financial statements that would need to be eliminated. The unaudited pro forma adjustments are based on currently available information and certain assumptions that Blackstone believes is reasonable and supportable.
The transaction consummated by the Acquisition will be accounted for under U.S. GAAP guidance. The acquisition accounting is dependent upon certain valuations and other studies that are currently subject to finalization. Accordingly, the pro forma adjustments included herein are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed combined financial information and may be revised as additional information becomes available and as additional analyses are performed. Differences between these preliminary estimates reflected in these unaudited condensed combined financial statements and the final acquisition accounting may occur and these differences could have a material impact on the accompanying unaudited pro forma condensed combined financial statements and the combined companys future results of operations, financial position and cash flows.
The unaudited pro forma condensed combined financial information does not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the Acquisition or the costs to integrate the operations of Blackstone and Harbourmaster or the costs necessary to achieve these cost savings, operating synergies and revenue enhancements.
2. U.S. GAAP Adjustments for Harbourmaster
(a) | As mentioned in Note 1 Basis of Pro Forma Presentation, the historical financial statements of Harbourmaster have been prepared under U.K. GAAP. The adjustments in the column U.S. GAAP Adjustments serve to convert Harbourmasters historical financial statements from U.K. GAAP to U.S. GAAP. The nature of these adjustments are described in the notes to Harbourmasters financial statements included in Exhibits 99.1 and 99.2 to this document. The principal adjustments relate to the consolidation of variable interest entities (VIEs) and the treatment of other than temporary declines in the fair value of investments. |
Harbourmaster serves as the investment manager for certain collateralized loan obligation (CLO) vehicles. These VIEs are not required to be consolidated under U.K. GAAP. Under U.S. GAAP, an analysis of each VIE is performed to determine if Harbourmaster is the primary beneficiary as defined in U.S. GAAP guidance. The U.S. GAAP adjustments consolidate those CLO vehicles which are VIEs where Harbourmaster has been evaluated as the primary beneficiary.
Harbourmaster held certain investments on which it had previously taken an impairment charge for an other than temporary decline in the fair value. During the year ended December 31, 2010, under U.K. GAAP, Harbourmaster reversed this impairment charge. Reversals of such charges are not permitted under U.S. GAAP. Accordingly, this reversal was removed from the U.S. GAAP statement of operations.
6
THE BLACKSTONE GROUP L.P.
Notes to Unaudited Pro Forma Condensed Combined Financial Statement
(All Dollars Are in Thousands, Except Unit and Per Unit Data, Except Where Noted)
3. Purchase Price and Pro Forma Adjustments
(b) | The following is a summary of the estimated fair values of assets acquired and liabilities assumed in this acquisition as reflected in the Unaudited Pro Forma Condensed Combined Statement of Financial Condition as of June 30, 2011: |
Purchase PriceCash |
$ | 232,044 | ||
|
|
|||
Fair Value of Assets Acquired and Liabilities Assumed |
||||
Assets |
||||
Cash |
$ | 75,072 | ||
Investments in CLOs |
9,305 | |||
Accounts Receivable |
9,329 | |||
Other Assets |
17,651 | |||
Intangible Assets |
142,221 | |||
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|
|||
253,578 | ||||
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Liabilities Assumed |
||||
Accounts Payable, Accrued Expenses and Other Liabilities |
21,534 | |||
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|
|||
Net Assets Acquired |
$ | 232,044 | ||
|
|
In accordance with the sale and purchase agreement of the Acquisition, $32.5 million of the purchase consideration will be held in escrow for up to five years to secure warranty and indemnity obligations of the sellers. As such, the purchase price may be adjusted post-closing.
These pro forma adjustments resulted in a decrease to Cash and Cash Equivalents of $232,044, an increase in Intangible Assets of $142,221, an increase in Other Assets of $17,398, an increase to Accounts Payable, Accrued Expenses and Other Liabilities of $17,398 and a net decrease to Partners Capital of $89,823, on the Unaudited Pro Forma Condensed Combined Statement of Financial Condition.
(c) | Reflects compensation expense that is not expected to recur due to the termination of certain contractual arrangements as part of the closing of the Acquisition. |
Six Months Ended June 30, 2011 |
Year
Ended December 31, 2010 |
|||||||
Compensation |
||||||||
Expenses not Expected to Recur |
$ | 574 | $ | 1,454 |
(d) | Reflects an adjustment for Harbourmaster to conform to Blackstones revenue recognition policy related to the management fees, and the related affiliated receivable, for the CLO vehicles for which Harbourmaster serves as the investment manager. Harbourmaster has historically elected to recognize management fees from the subordinated collateral on a cash basis when such fees are received while Blackstone has elected to recognize these fees on an accrual basis. This adjustment conforms Harbourmasters revenue recognition policy to Blackstones. |
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THE BLACKSTONE GROUP L.P.
Notes to Unaudited Pro Forma Condensed Combined Financial Statement
(All Dollars Are in Thousands, Except Unit and Per Unit Data, Except Where Noted)
June 30, 2011 | ||||
Due From Affiliates |
||||
Collateral Management Fee Recognition from Unconsolidated CLOs |
$ | 2,700 |
Six Months Ended June 30, 2011 |
Year
Ended December 31, 2010 |
|||||||
Management and Advisory Fees |
||||||||
Collateral Management Fee Recognition from Unconsolidated CLOs |
$ | 2,597 | $ | 2,748 |
(e) | In accordance with the sale and purchase agreement of the Acquisition, certain assets and liabilities of Harbourmaster were excluded from the transaction and were sold or repaid prior to closing. This adjustment excludes the fair value of certain investments in the CLO funds that Harbourmaster had at June 30, 2011. |
June 30, 2011 | ||||
Investments |
||||
Investments in CLO Funds |
$ | 6,355 |
(f) | In accordance with the sale and purchase agreement of the Acquisition, certain assets and liabilities of Harbourmaster were excluded from the transaction and were sold or repaid prior to closing. This adjustment reflects the repayment of a credit facility in full prior to closing. |
June 30, 2011 | ||||
Loans Payable |
||||
Credit Facility |
$ | 1,333 |
(g) | Reflects amortization expenses related to the estimated intangible assets recognized in connection with the acquisition of Harbourmaster. As of June 30, 2011, the estimated fair value of Harbourmasters intangible assets is $142.2 million. Blackstone has determined to use straight-line amortization method for its intangible assets. The amortization expense related to these intangible assets is as follows: |
Estimated | Amortization Expense | |||||||||||||||
Estimated | Weighted | |||||||||||||||
Intangible | Average | Six Months | ||||||||||||||
Assets | Remaining | Ended | Year Ended | |||||||||||||
Acquired | Useful Lives | June 30, 2011 | December 31, 2010 | |||||||||||||
General, Administrative and Other |
(Years | ) | ||||||||||||||
Intangible Assets |
$ | 142,221 | 4.9 | $ | 14,381 | $ | 28,762 |
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THE BLACKSTONE GROUP L.P.
Notes to Unaudited Pro Forma Condensed Combined Financial Statement
(All Dollars Are in Thousands, Except Unit and Per Unit Data, Except Where Noted)
(h) | Represents estimated one time transaction costs of $2.1 million directly attributable to the acquisition of Harbourmaster. |
(i) | During the periods presented, there were no pro forma incremental taxes resulting from the inclusion of Harboumaster in the combined results of Blackstone. |
(j) | This allocates the Pro Forma Net Income (Loss) to Non-Controlling Interests in Blackstone Holdings based on the historical ownership percentages of 58.6% and 67.3% for the six months ended June 30, 2011 and year ended December 31, 2010, respectively. |
(k) | Net Income (Loss) per Common Unit |
Pro Forma Net Income (Loss) per Common Unit for the six months ended June 30, 2011 and the year ended December 31, 2010 have been calculated using the same weighted average number of common units outstanding used by Blackstone in its Net Income (Loss) per Common Unit calculations.
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