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8-K - FORM 8-K - Blackstone Group Inc | d11507d8k.htm |
EX-99.1 - EX-99.1 - Blackstone Group Inc | d11507dex991.htm |
Blackstones Second Quarter 2015 Earnings July 16, 2015 Exhibit 99.2 |
Blackstone 1 Blackstones Second Quarter 2015 Highlights Economic Net Income (ENI) was $508 million ($0.43/unit) in the second quarter, and $2.1 billion ($1.80/unit) year-to-date, on continued record organic inflows and consistently positive fund returns. All investing businesses had favorable investment performance in the second quarter, substantially outperforming relevant markets across asset classes. Second quarter and year-to-date results, while uniformly positive, reflect lower levels of appreciation, particularly in Real Estate public holdings and the catch-up in BCP V, both of which affect comparability to the prior periods. Distributable Earnings (DE) reached a second quarter record of $1.0 billion ($0.88/unit), up 35% from the same period last year, on $985 million of Realized Performance Fees, up 45% year-over-year. DE was $2.3 billion year-to-date ($1.93/unit), up 83% from $1.2 billion in the same period last year, on $2.2 billion of Realized Performance Fees, up 108% year-over-year. GAAP Net Income was $134 million for the quarter, net of certain non-cash IPO and transaction related expenses and net income attributable to non-controlling interests, primarily inside ownership. Total Assets Under Management (AUM) reached a record $332.7 billion through a combination of continued strong and consistent fundraising, organic growth and above-market appreciation. Gross inflows were a record $31.3 billion in the second quarter, bringing LTM inflows to $93.9 billion. Total AUM was up 19% year-over-year, despite returning $60.3 billion of capital to investors over the last twelve months (LTM) as asset growth and appreciation outpaced increased realizations. Significant capital deployment of $5.0 billion in the second quarter and $10.1 billion year-to-date achieved by leveraging a unique global platform to find opportunities, particularly in the energy sector and Europe. Blackstone declared a second quarter distribution of $0.74 per common unit payable on August 3, 2015, up 35% from last year; year-to-date distributions were a record $1.63 per common unit, up 81%. |
Blackstone 2 % Change % Change (Dollars in Thousands, Except per Unit Data) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 640,456 $ 590,757 $ (8)% 1,231,432 $ 1,205,648 $ (2)% Performance Fees 1,398,438 569,664 (59)% 2,177,452 2,243,400 3% Investment Income 175,971 10,774 (94)% 292,438 200,415 (31)% Interest Income and Dividend Revenue 22,094 31,026 40% 44,456 61,477 38% Total Revenues 2,236,959 1,202,221 (46)% 3,745,778 3,710,940 (1)% Total Expenses 885,964 673,194 (24)% 1,569,537 1,550,130 (1)% Taxes 25,032 20,587 (18)% 36,344 30,306 (17)% Economic Net Income (ENI) 1,325,963 $ 508,440 $ (62)% 2,139,897 $ 2,130,504 $ (0)% ENI per Unit 1.15 $
0.43 $
(63)% 1.85 $
1.80 $
(3)% GAAP Net Income 517,016 $ 134,168 $ (74)% 782,633 $ 763,616 $ (2)% Fee Related Earnings (FRE) 206,412 $ 178,441 $ (14)% 381,467 $ 359,065 $ (6)% Distributable Earnings (DE) 765,172 $ 1,033,920 $ 35% 1,243,818 $ 2,274,127 $ 83% DE per Common Unit 0.65 $
0.88 $
35% 1.05 $
1.93 $
84% Total AUM 278,917,713 $ 332,723,546 $ 19% 278,917,713 $ 332,723,546 $ 19% Fee-Earning AUM 209,913,760 $ 239,342,214 $ 14% 209,913,760 $ 239,342,214 $ 14% Blackstones Second Quarter 2015 Earnings |
Blackstone 3 Private Equity 16.5% 2Q15 LTM increase in fund carrying value $547 million 2Q15 Realized Performance Fees $92.0 billion Total AUM up 35% YoY Quarterly appreciation of 3.5% was driven by positive operating fundamentals despite challenging markets; up 9.4% year-to-date and 16.5% LTM, widely outpacing broader market indices. Realizations remained strong with $4.0 billion during the quarter and $13.9 billion LTM on public and strategic exits in corporate private equity funds. Completed the strategic sale of Biomet, including a $1.2 billion cash component. Second quarter public share sales included Hilton, Nielsen, Catalent and Pinnacle Foods. Announced the strategic sales of Center Parcs and Allied Barton which will close later this year. Deployed $1.9 billion of capital during the quarter, leveraging unique global mandates and a wide breadth of fund strategies to identify capital investment opportunities at attractive values. Raised $16.7 billion of commitments, including $961 million in July, for the seventh global private equity fund while receiving third party subscriptions well in excess of the $17.5 billion cap. Raised $1.2 billion of capital for the second Tactical Opportunities platform bringing total closings to $4.3 billion and total platform AUM to $11.3 billion three years after its initial launch. % Change % Change (Dollars in Thousands) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 127,138 $ 103,274 $ (19)% 267,720 $ 225,242 $ (16)% Performance Fees 714,604 241,002 (66)% 1,001,474 1,190,802 19% Investment Income 92,474 27,957 (70)% 143,976 104,260 (28)% Interest Income and Dividend Revenue 4,666 7,667 64% 9,894 15,284 54% Total Revenues 938,882 379,900 (60)% 1,423,064 1,535,588 8% Compensation 73,038 67,079 (8)% 146,345 137,168 (6)% Performance Fee Compensation 178,914 80,928 (55)% 237,537 298,530 26% Other Operating Expenses 39,193 62,458 59% 72,199 101,213 40% Total Expenses 291,145 210,465 (28)% 456,081 536,911 18% Economic Income 647,737 $ 169,435 $ (74)% 966,983 $ 998,677 $ 3% Total AUM 68,294,162 $ 92,026,337 $ 35% 68,294,162 $ 92,026,337 $ 35% Fee-Earning AUM 42,888,756 $ 49,537,189 $ 16% 42,888,756 $ 49,537,189 $ 16% |
Blackstone 4 Real Estate 20.3% 2Q15 LTM increase in fund carrying value $365 million 2Q15 Realized Performance Fees $91.6 billion Total AUM up 14% YoY Opportunistic Real Estate funds carrying value appreciated 1.2% during the quarter on continued strong operating fundamentals across the portfolio partially offset by declines in public investment values. Appreciation of 9.0% year-to-date and 20.3% LTM, significantly outpacing broader market indices. Continued active pace of realizations with $4.7 billion in the quarter driven by a Hilton secondary equity offering and several private exits and refinancings, bringing LTM capital returned to investors to $25.0 billion. Record level of investment activity with $8.0 billion invested or committed as of quarter end, driven by broad-based deployment across BREP, BREDS and BPP. Capital invested in the second quarter was $3.0 billion. Raised $1.9 billion during the quarter, and $18.3 billion year-to-date, driven by all three fund groups. BXMT raised $1.0 billion in two accretive equity offerings, bringing its market capitalization to $2.6 billion just two years after launching the platform. Total AUM of $91.6 billion up 14% from the prior year on significant fundraising activity and market appreciation. % Change % Change (Dollars in Thousands) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 163,463 $ 157,902 $ (3)% 327,456 $ 316,623 $ (3)% Performance Fees 539,874 180,530 (67)% 877,480 817,552 (7)% Investment Income (Loss) 72,227 (22,259) n/m 108,963 86,595 (21)% Interest Income and Dividend Revenue 8,009 10,259 28% 14,119 20,256 43% Total Revenues 783,573 326,432 (58)% 1,328,018 1,241,026 (7)% Compensation 85,582 79,484 (7)% 165,815 164,318 (1)% Performance Fee Compensation 172,079 66,510 (61)% 282,263 217,853 (23)% Other Operating Expenses 36,542 43,346 19% 69,649 83,489 20% Total Expenses 294,203 189,340 (36)% 517,727 465,660 (10)% Economic Income 489,370 $ 137,092 $ (72)% 810,291 $ 775,366 $ (4)% Total AUM 80,410,988 $ 91,578,634 $ 14% 80,410,988 $ 91,578,634 $ 14% Fee-Earning AUM 52,823,975 $ 62,683,857 $ 19% 52,823,975 $ 62,683,857 $ 19% |
Blackstone 5 Hedge Fund Solutions 4.1% 2Q15 YTD Composite Gross Return $36.6 billion Incentive Fee Eligible AUM at 2Q15 $2.4 billion 2Q15 Fee-Earning Gross Inflows Total Revenues and Economic Income of $175 million and $92 million for the quarter were up 6% and 11% year- over-year, respectively, driven by a 13% increase in Fee-Earning AUM over the same period on continued steady organic growth and above-market appreciation. Despite more difficult markets globally, the composite gross return was up 1.1% for the quarter and 4.1% year-to- date, outperforming global markets with less volatility. Fee-Earning gross inflows of $2.4 billion during the quarter and $11.7 billion LTM, were driven by significant investments in customized and commingled strategies. July 1 subscriptions of $714 million are not yet included in Fee-Earning AUM. Total AUM reached a record $67.8 billion on the growth of customized strategies and continued diversification of the platform. Total AUM for BAAMs individual investor solutions platform reached $4.6 billion, up from $2.2 billion as of July 1, 2014. % Change % Change (Dollars in Thousands) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 121,400 $ 130,067 $ 7% 233,544 $ 258,842 $ 11% Performance Fees 38,529 40,784 6% 96,459 98,727 2% Investment Income (Loss) 3,451 275 (92)% 24,702 (5,617) n/m Interest Income and Dividend Revenue 2,340 3,970 70% 5,001 7,919 58% Total Revenues 165,720 175,096 6% 359,706 359,871 0% Compensation 43,341 45,841 6% 83,912 101,945 21% Performance Fee Compensation 14,170 16,552 17% 34,202 35,673 4% Other Operating Expenses 25,101 20,499 (18)% 44,581 41,705 (6)% Total Expenses 82,612 82,892 0% 162,695 179,323 10% Economic Income 83,108 $ 92,204 $ 11% 197,011 $ 180,548 $ (8)% Total AUM 60,672,759 $ 67,829,866 $ 12% 60,672,759 $ 67,829,866 $ 12% Fee-Earning AUM 58,084,020 $ 65,512,170 $ 13% 58,084,020 $ 65,512,170 $ 13% The BAAM Principal Solutions (BPS) Composite does not include BAAMs individual investor
solutions (liquid alternatives), long-only equity, long-biased commodities, ventures (seeding and minority interests), strategic opportunities (co-investments), Senfina (direct trading) and
advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation are also excluded. On a net of fees basis, the BPS
Composite was up 0.9% for the quarter and 3.6% year-to-date. |
Blackstone 6 Credit $81.3 billion 2Q15 Total AUM Investment Performance Gross Returns Consistently strong performance and diverse organic inflows across a broad range of funds generated Total Revenues and Economic Income of $241 million and $119 million, respectively, for the second quarter. Total AUM reached a record $81.3 billion driven by new product launches, including $2.6 billion of capital raised in energy focused products and subsequent closings of $893 million in the European senior debt strategy, bringing that strategys total to $1.8 billion. Launched 11 CLOs over the LTM with $6.0 billion of Total AUM, including six during the first half of 2015. Record Fee-Earning AUM up 10% year-over-year driven by capital deployed in the drawdown funds and capital raised in the Hedge Fund Strategies and Performing Credit businesses. Long Only Funds Alternative Strategies Funds For Mezzanine and Rescue Lending Strategies, Investment Performance represents the combined cash flows of the fee-earning funds
exceeding $100 million of fair value at each respective quarter end. For Hedge Fund Strategies, Investment Performance represents the weighted-average composite of the fee-earning funds exceeding
$100 million of fair value at each respective quarter end. Investment Performance excludes the Blackstone Funds that were contributed to GSO as part of Blackstones acquisition of GSO in March 2008.
Mezzanine Strategies net returns were 5.0% for 2Q15 and 7.5% for YTD15, Rescue Lending Strategies net returns were 5.3% for 2Q15 and 4.9% for YTD15 and Hedge Fund
Strategies net returns were 1.4% for 2Q15 and 2.6% for YTD15. Performing Credit includes Mezzanine Funds and business development companies (BDCs). Customized Credit Strategies (CCS) include
closed-end funds, commingled funds, the exchange traded fund and separately managed accounts. CLOs CCS % Change % Change (Dollars in Thousands) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 112,825 $ 122,339 $ 8% 217,232 $ 244,468 $ 13% Performance Fees 105,431 107,348 2% 202,039 136,319 (33)% Investment Income 6,744 5,483 (19)% 12,894 14,607 13% Interest Income and Dividend Revenue 4,892 5,938 21% 10,753 11,589 8% Total Revenues 229,892 241,108 5% 442,918 406,983 (8)% Compensation 51,310 47,124 (8)% 102,062 97,001 (5)% Performance Fee Compensation 52,675 51,451 (2)% 101,090 67,201 (34)% Other Operating Expenses 22,159 23,539 6% 54,998 45,375 (17)% Total Expenses 126,144 122,114 (3)% 258,150 209,577 (19)% Economic Income 103,748 $ 118,994 $ 15% 184,768 $ 197,406 $ 7% Total AUM 69,539,804 $ 81,288,709 $ 17% 69,539,804 $ 81,288,709 $ 17% Fee-Earning AUM 56,117,009 $ 61,608,998 $ 10% 56,117,009 $ 61,608,998 $ 10% 2Q'15 YTD'15 Mezzanine Strategies 6.2% 9.0% Rescue Lending Strategies 6.3% 5.7% Hedge Fund Strategies 2.0% 3.6% 14% 25% 14% 10% 37% Hedge Fund Strategies Rescue Lending Performing Credit |
Blackstone 7 Financial Advisory Fee Revenues decreased in the second quarter compared to the prior year on a decline in the number of closed transactions during the quarter. Heightened merger and acquisition volume and an increase in energy-related restructuring opportunities has continued to keep the advisory pipeline robust. The fundraising environment for alternative assets continues to remain strong as increased distributions from legacy investments are re-invested across the fastest growing segment of asset management. Given the strong level of backlog activity entering the third quarter, Fee Revenues for the first nine months of 2015 are expected to exceed the prior year period. The spin-off transaction, announced on October 10, 2014, continues to progress as planned and is on target to occur in the second half of 2015. Long-term growth plans are steadily progressing with several key senior hires announced year-to-date. % Change % Change (Dollars in Thousands) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Fee Revenues 115,630 $ 77,175 $ (33)% 185,480 $ 160,473 $ (13)% Investment Income (Loss) 1,075 (682) n/m 1,903 570 (70)% Interest Income and Dividend Revenue 2,187 3,192 46% 4,689 6,429 37% Total Revenues 118,892 79,685 (33)% 192,072 167,472 (13)% Compensation 69,744 49,824 (29)% 131,426 118,758 (10)% Other Operating Expenses 22,116 18,559 (16)% 43,458 39,901 (8)% Total Expenses 91,860 68,383 (26)% 174,884 158,659 (9)% Economic Income 27,032 $ 11,302 $ (58)% 17,188 $ 8,813 $ (49)% |
Blackstone 8 Total AUM by Segment (Dollars in Billions) $278.9 $332.7 $229.6 Fee-Earning AUM by Segment (Dollars in Billions) $209.9 $239.3 $176.3 Private Equity Real Estate Hedge Fund Solutions Credit Record Fee-Earning AUM of $239.3 billion was up 14% year-over-year as $68.0 billion of gross inflows easily
outpaced $37.3 billion of realizations and outflows.
Fee-Earning AUM now includes $14.8 billion from
the eighth global real estate fund, but does not yet include the seventh global private equity fund which had $15.7 billion of closings in the second quarter.
Both are on target to reach their fundraising caps as investor demand continues to exceed fund size, and capital
commitments are originating from innovative sources
(e.g., international investors and high net worth).
Total AUM increased 19% year-over-year to $332.7 billion
driven by $93.9 billion from gross inflows and
$20.2
billion from consistently strong fund appreciation.
Each segment had double digit growth despite $60.3 billion of capital returned to investors over the LTM.
Assets Under Management
$48.5
$56.1
$61.6
$47.6
$58.1
$65.5
$43.6
$52.8
$62.7
$36.6
$42.9
$49.5
2Q'13 2Q'14 2Q'15 $62.2 $69.5 $81.3 $50.1 $60.7 $67.8 $63.9 $80.4 $91.6 $53.3 $68.3 $92.0 2Q'13 2Q'14 2Q'15 |
Blackstone 9 Additional Capital Detail Record undrawn capital (Total Dry Powder) of $82.1 billion, up 81% year-over-year, driven by fundraises for the latest global private equity and real estate funds. Performance Fee Eligible AUM reached $248.7 billion at quarter end, up 30% year-over-year, despite significant realizations in the Real Estate and Private Equity segments. Net inflows and consistently strong investment performance drove a 13% year-over-year increase in assets currently earning Performance Fees to $157.6 billion. 51% of the $10.1 billion capital invested year-to-date was in non-North American investments, leveraging product diversity and unique global fund mandates. Uninvested Not Earning Fees Currently Earning Fees Private Equity Real Estate Hedge Fund Solutions Credit North America Europe Asia Global Secondaries and Other $82 billion 2Q15 Total Dry Powder $249 billion Performance Fee Eligible AUM $10 billion YTD15 Capital Invested by Region $191.0 $248.7 $156.8 $4.9/ 49% $2.7/ 27% $0.3/ 3% $2.1/ 21% $95.7 $139.7 $157.6 $23.9 $9.0 $13.4 $37.2 $42.2 $77.7 2Q'13 2Q'14 2Q'15 $36.8/ 45% $27.2/ 33% $3.0/ 4% $15.1/ 18% |
Blackstone 10 At June 30, 2015, Blackstone had $4.3 billion in total cash, corporate treasury and liquid investments and $11.1 billion of total net value, or $9.43 per DE unit, up 10% from $8.60 a year ago. During the second quarter, Blackstone raised $350 million of 30-year notes at a 4.50% yield and 300 million of 10-year notes at a 2.10% yield, bringing total long-term borrowings to $2.8 billion. Blackstone has no net debt, over $11 billion of total net value on the balance sheet and maintained its A+/A+ ratings. Balance Sheet Highlights (Dollars in Millions) 2Q15 Cash and Cash Equivalents $ 2,165 Treasury Cash Management Strategies 1,967 Liquid Investments 178 Illiquid Investments 2,307 Net Accrued Performance Fees 4,472 Total Net Value $ 11,089 Outstanding Bonds (at par) $ 2,822 A+/A+ rated by S&P and Fitch $1.1 billion undrawn credit revolver with May 2019 maturity $4.3 billion total cash, corporate treasury and liquid investments Cash and Investments Net Performance Fees Total Cash and Liquids Illiquids $9.43 $8.60 $6.31 $2.24 $3.72 $3.80 $2.06 $2.57 $1.96 $2.01 $2.32 $3.66 2Q'13 2Q'14 2Q'15 Balance Sheet Highlights are preliminary, and exclude the consolidated Blackstone funds. Liquid Investments are primarily Blackstone
investments in Hedge Fund Solutions and non-drawdown Credit. Illiquid Investments include Blackstone investments in Private Equity, Real Estate and Other, which were $944 million, $1.1 billion, and $272
million, respectively, as of June 30, 2015, $1.0 billion, $1.5 billion, and $412 million, respectively, as of June 30, 2014 and $911 million, $1.2 billion, and $193 million, respectively, as of June 30, 2013. Cash and
Investments per unit amounts are calculated using period end DE Units Outstanding (see page 30, Unit Rollforward). |
Blackstone 11 Despite Net Realized Performance Fees of $2.8 billion over the LTM, Net Accrued Performance Fees remained steady year-over-year at $4.5 billion ($3.80/unit), up $231 million from the same period last year. Net Accrued Performance Fees grew at a 33% CAGR since the second quarter of 2013, primarily driven by continued appreciation in Real Estate and Private Equity. Performance Fees Net Realized Performance Fees (Dollars in Millions) $1,211 $2,828 $698 Net Accrued Performance Fees (Dollars in Millions) $4,241 $4,472 $2,529 Private Equity Real Estate Credit Hedge Fund Solutions $4.5 billion Net Accrued Performance Fees 62% Net Accrued Performance Fees Related to Publics/Pending Exits $2.8 billion Record 2Q15 LTM Net Realized Performance Fees $177 $155 $156 $245 $632 $1,454 $201 $298 $1,138 2Q'13 LTM 2Q'14 LTM 2Q'15 LTM $1,635 $2,664 $2,424 $633 $1,275 $1,764 2Q'13 2Q'14 2Q'15 |
Blackstone 12 GAAP Statement of Operations % Change % Change (Dollars in Thousands, Except per Unit Data) (Unaudited) 2Q'14 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Revenues Management and Advisory Fees, Net 619,523 $ 574,132 $ (7)% 1,192,683 $ 1,190,900 $ (0)% Performance Fees Realized Carried Interest 641,659 937,483 46% 975,282 2,145,077 120% Realized Incentive Fees 39,504 47,682 21% 83,298 77,320 (7)% Unrealized Carried Interest 660,682 (441,930) n/m 991,076 (68,090) n/m Unrealized Incentive Fees 54,639 25,070 (54)% 118,872 87,106 (27)% Total Performance Fees 1,396,484 568,305 (59)% 2,168,528 2,241,413 3% Investment Income (Loss) Realized 215,710 157,823 (27)% 368,736 345,753 (6)% Unrealized 10,809 (100,999) n/m 24,309 (82,726) n/m Total Investment Income 226,519 56,824 (75)% 393,045 263,027 (33)% Interest and Dividend Revenue 15,340 21,965 43% 29,409 43,885 49% Other (6) 3,976 n/m 863 (1,665) n/m Total Revenues 2,257,860 1,225,202 (46)% 3,784,528 3,737,560 (1)% Expenses Compensation and Benefits Compensation 500,641 473,019 (6)% 985,992 1,032,578 5% Performance Fee Compensation Realized Carried Interest 260,301 238,033 (9)% 409,699 530,281 29% Realized Incentive Fees 18,509 21,837 18% 42,144 34,064 (19)% Unrealized Carried Interest 114,296 (50,559) n/m 155,026 23,821 (85)% Unrealized Incentive Fees 24,692 6,130 (75)% 48,223 31,091 (36)% Total Compensation and Benefits 918,439 688,460 (25)% 1,641,084 1,651,835 1% General, Administrative and Other 136,492 146,859 8% 272,046 277,832 2% Interest Expense 29,847 37,414 25% 54,514 68,784 26% Fund Expenses 5,003 41,699 733% 9,988 58,549 486% Total Expenses 1,089,781 914,432 (16)% 1,977,632 2,057,000 4% Other Income Net Gains from Fund Investment Activities 138,585 82,015 (41)% 208,740 175,570 (16)% Income Before Provision for Taxes 1,306,664 $ 392,785 $ (70)% 2,015,636 $ 1,856,130 $ (8)% Provision for Taxes 83,282 43,251 (48)% 137,379 142,595 4% Net Income 1,223,382 $ 349,534 $ (71)% 1,878,257 $ 1,713,535 $ (9)% Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
22,486 13,780 (39)% 68,278 21,307 (69)% Net Income Attributable to Non-Controlling Interests in Consolidated Entities
140,061 66,716 (52)% 184,022 148,512 (19)% Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
543,819 134,870 (75)% 843,324 780,100 (7)% Net Income Attributable to The Blackstone Group L.P. ("BX") 517,016 $ 134,168 $ (74)% 782,633 $ 763,616 $ (2)% Net Income per Common Unit, Basic 0.85 $
0.21 $
(75)% 1.30 $
1.21 $
(7)% Net Income per Common Unit, Diluted 0.85 $
0.21 $
(75)% 1.29 $
1.21 $
(6)% |
Appendix |
Blackstone 14 Total Segments (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Management and Advisory Fees, Net Base Management Fees 496,570 $ 505,493 $ 508,588 $ 516,397 $ 516,492 $ 973,448 $ 1,032,889 $ Advisory Fees 114,914 84,131 151,837 84,238 76,998 184,877 161,236 Transaction and Other Fees, Net 49,196 90,885 46,446 37,073 11,728 109,106 48,801 Management Fee Offsets (20,218) (22,763) (27,146) (17,945) (18,434) (36,862) (36,379) Total Management and Advisory Fees, Net 640,462 657,746 679,725 619,763 586,784 1,230,569 1,206,547 Performance Fees Realized Carried Interest 641,659 638,752 836,562 1,207,594 937,483 975,282 2,145,077 Realized Incentive Fees 39,291 36,840 131,777 29,670 47,819 93,128 77,489 Unrealized Carried Interest 660,712 222,026 495,935 373,852 (441,949) 991,000 (68,097) Unrealized Incentive Fees 56,776 (6,531) (140,936) 62,620 26,311 118,042 88,931 Total Performance Fees 1,398,438 891,087 1,323,338 1,673,736 569,664 2,177,452 2,243,400 Investment Income (Loss) Realized 202,199 75,832 153,477 107,792 136,497 314,116 244,289 Unrealized (26,228) 4,934 (55,053) 81,849 (125,723) (21,678) (43,874) Total Investment Income 175,971 80,766 98,424 189,641 10,774 292,438 200,415 Interest Income and Dividend Revenue 22,094 23,585 28,303 30,451 31,026 44,456 61,477 Other (6) 719 7,823 (4,872) 3,973 863 (899) Total Revenues 2,236,959 1,653,903 2,137,613 2,508,719 1,202,221 3,745,778 3,710,940 Expenses Compensation 323,015 324,426 199,525 329,838 289,352 629,560 619,190 Performance Fee Compensation Realized Carried Interest 260,301 186,003 219,941 292,248 238,032 409,699 530,280 Realized Incentive Fees 18,509 19,029 48,926 12,227 21,837 42,144 34,064 Unrealized Carried Interest 114,336 164,132 59,879 74,380 (50,559) 155,026 23,821 Unrealized Incentive Fees 24,692 (9,002) (58,497) 24,961 6,131 48,223 31,092 Total Compensation and Benefits 740,853 684,588 469,774 733,654 504,793 1,284,652 1,238,447 Other Operating Expenses 145,111 131,440 137,457 143,282 168,401 284,885 311,683 Total Expenses 885,964 816,028 607,231 876,936 673,194 1,569,537 1,550,130 Economic Income 1,350,995 $ 837,875 $ 1,530,382 $ 1,631,783 $ 529,027 $ 2,176,241 $ 2,160,810 $ Economic Net Income 1,325,963 $ 758,356 $ 1,446,733 $ 1,622,064 $ 508,440 $ 2,139,897 $ 2,130,504 $ Fee Related Earnings 206,412 $ 236,820 $ 384,720 $ 180,624 $ 178,441 $ 381,467 $ 359,065 $ Distributable Earnings 765,172 $ 686,086 $ 1,134,054 $ 1,240,207 $ 1,033,920 $ 1,243,818 $ 2,274,127 $ Total Assets Under Management 278,917,713 $ 284,414,936 $ 290,381,069 $ 310,451,289 $ 332,723,546 $ 278,917,713 $ 332,723,546 $ Fee-Earning Assets Under Management 209,913,760 $ 214,819,600 $ 216,691,799 $ 223,511,700 $ 239,342,214 $ 209,913,760 $ 239,342,214 $ Weighted Average Fee-Earning AUM 209,251,436 $ 213,525,423 $ 215,196,253 $ 218,241,987 $ 237,576,488 $ 205,257,277 $ 230,738,845 $ LP Capital Invested 5,426,511 $ 6,664,365 $ 7,810,098 $ 4,765,536 $ 4,814,362 $ 9,895,038 $ 9,579,898 $ Total Capital Invested 5,858,210 $ 7,619,737 $ 8,090,350 $ 5,052,370 $ 5,048,058 $ 10,665,873 $ 10,100,428 $ |
Blackstone 15 (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Management Fees, Net Base Management Fees 103,204 $ 108,236 $ 105,817 $ 108,383 $ 121,918 $ 201,788 $ 230,301 $ Transaction and Other Fees, Net 27,616 48,996 15,183 20,359 (12,131) 70,463 8,228 Management Fee Offsets (4,246) (5,837) (7,350) (4,949) (9,028) (5,959) (13,977) Total Management Fees, Net 126,574 151,395 113,650 123,793 100,759 266,292 224,552 Performance Fees Realized Carried Interest 212,394 124,913 297,290 382,978 546,575 332,199 929,553 Unrealized Carried Interest 502,210 96,455 457,098 566,822 (305,573) 669,275 261,249 Total Performance Fees 714,604 221,368 754,388 949,800 241,002 1,001,474 1,190,802 Investment Income (Loss) Realized 74,812 20,421 46,951 44,816 50,258 135,347 95,074 Unrealized 17,662 (12,754) (19,789) 31,487 (22,301) 8,629 9,186 Total Investment Income 92,474 7,667 27,162 76,303 27,957 143,976 104,260 Interest Income and Dividend Revenue 4,666 5,346 6,743 7,617 7,667 9,894 15,284 Other 564 2,150 2,991 (1,825) 2,515 1,428 690 Total Revenues 938,882 387,926 904,934 1,155,688 379,900 1,423,064 1,535,588 Expenses Compensation 73,038 79,007 51,095 70,089 67,079 146,345 137,168 Performance Fee Compensation Realized Carried Interest 112,720 30,944 36,958 39,482 106,502 198,491 145,984 Unrealized Carried Interest 66,194 93,434 77,966 178,120 (25,574) 39,046 152,546 Total Compensation and Benefits 251,952 203,385 166,019 287,691 148,007 383,882 435,698 Other Operating Expenses 39,193 34,109 36,590 38,755 62,458 72,199 101,213 Total Expenses 291,145 237,494 202,609 326,446 210,465 456,081 536,911 Economic Income 647,737 $ 150,432 $ 702,325 $ 829,242 $ 169,435 $ 966,983 $ 998,677 $ Total Assets Under Management 68,294,162 $ 69,890,367 $ 73,073,252 $ 76,327,189 $ 92,026,337 $ 68,294,162 $ 92,026,337 $ Fee-Earning Assets Under Management 42,888,756 $ 43,817,741 $ 43,890,167 $ 49,342,211 $ 49,537,189 $ 42,888,756 $ 49,537,189 $ Weighted Average Fee-Earning AUM 43,702,379 $ 43,838,483 $ 42,899,791 $ 45,051,839 $ 49,925,744 $ 44,235,482 $ 49,878,703 $ LP Capital Invested 1,857,330 $ 2,277,861 $ 3,459,063 $ 2,374,599 $ 1,800,854 $ 3,886,349 $ 4,175,453 $ Total Capital Invested 2,159,178 $ 3,172,660 $ 3,593,887 $ 2,517,769 $ 1,949,748 $ 4,430,451 $ 4,467,517 $ Private Equity |
Blackstone 16 (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Management Fees, Net Base Management Fees 157,869 $ 155,089 $ 156,208 $ 152,348 $ 140,743 $ 317,205 $ 293,091 $ Transaction and Other Fees, Net 13,514 38,312 26,220 15,216 21,510 27,078 36,726 Management Fee Offsets (7,702) (8,977) (8,540) (4,866) (5,428) (16,926) (10,294) Total Management Fees, Net 163,681 184,424 173,888 162,698 156,825 327,357 319,523 Performance Fees Realized Carried Interest 417,826 349,237 526,041 811,249 363,983 612,484 1,175,232 Realized Incentive Fees 6,070 1,159 4,296 723 1,220 6,044 1,943 Unrealized Carried Interest 119,461 187,175 77,173 (181,019) (188,608) 259,698 (369,627) Unrealized Incentive Fees (3,483) (374) (4,401) 6,069 3,935 (746) 10,004 Total Performance Fees 539,874 537,197 603,109 637,022 180,530 877,480 817,552 Investment Income (Loss) Realized 122,664 49,173 105,901 71,344 85,432 154,021 156,776 Unrealized (50,437) 14,492 (28,364) 37,510 (107,691) (45,058) (70,181) Total Investment Income (Loss) 72,227 63,665 77,537 108,854 (22,259) 108,963 86,595 Interest Income and Dividend Revenue 8,009 7,135 8,943 9,997 10,259 14,119 20,256 Other (218) 976 1,788 (3,977) 1,077 99 (2,900) Total Revenues 783,573 793,397 865,265 914,594 326,432 1,328,018 1,241,026 Expenses Compensation 85,582 90,586 69,916 84,834 79,484 165,815 164,318 Performance Fee Compensation Realized Carried Interest 143,442 64,187 173,534 246,496 116,168 195,275 362,664 Realized Incentive Fees 3,081 592 2,323 356 671 3,065 1,027 Unrealized Carried Interest 27,339 108,789 4,061 (98,084) (50,559) 84,324 (148,643) Unrealized Incentive Fees (1,783) (123) (2,227) 2,575 230 (401) 2,805 Total Compensation and Benefits 257,661 264,031 247,607 236,177 145,994 448,078 382,171 Other Operating Expenses 36,542 36,138 40,296 40,143 43,346 69,649 83,489 Total Expenses 294,203 300,169 287,903 276,320 189,340 517,727 465,660 Economic Income 489,370 $ 493,228 $ 577,362 $ 638,274 $ 137,092 $ 810,291 $ 775,366 $ Total Assets Under Management 80,410,988 $ 80,188,858 $ 80,863,187 $ 92,785,658 $ 91,578,634 $ 80,410,988 $ 91,578,634 $ Fee-Earning Assets Under Management 52,823,975 $ 52,308,175 $ 52,563,068 $ 50,783,247 $ 62,683,857 $ 52,823,975 $ 62,683,857 $ Weighted Average Fee-Earning AUM 53,233,974 $ 52,764,267 $ 52,236,610 $ 51,671,739 $ 60,939,868 $ 50,579,804 $ 56,168,300 $ LP Capital Invested 3,017,193 $ 3,046,867 $ 3,478,850 $ 1,443,163 $ 2,963,609 $ 4,709,425 $ 4,406,772 $ Total Capital Invested 3,128,232 $ 3,071,425 $ 3,584,035 $ 1,405,603 $ 3,035,837 $ 4,874,692 $ 4,441,440 $ Real Estate |
Blackstone 17 Hedge Fund Solutions (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Management Fees, Net Base Management Fees 123,008 $ 121,484 $ 125,105 $ 130,637 $ 130,216 $ 236,392 $ 260,853 $ Transaction and Other Fees, Net 126 161 189 25 - 219 25 Management Fee Offsets
(1,531) (1,099) (929) (280) (608) (2,986) (888) Total Management Fees, Net
121,603 120,546 124,365 130,382 129,608 233,625 259,990 Performance Fees Realized Incentive Fees 7,973 6,683 86,028 10,516 16,915 47,818 27,431 Unrealized Carried Interest - - - - 8,014 - 8,014 Unrealized Incentive Fees
30,556 25,473 (74,993) 47,427 15,855 48,641 63,282 Total Performance Fees 38,529 32,156 11,035 57,943 40,784 96,459 98,727 Investment Income (Loss) Realized 2,394 2,693 (357) (10,375) (1,757) 19,214 (12,132) Unrealized 1,057 (1,168) 812 4,483 2,032 5,488 6,515 Total Investment Income (Loss)
3,451 1,525 455 (5,892) 275 24,702 (5,617) Interest Income and Dividend Revenue
2,340 2,724 3,389 3,949 3,970 5,001 7,919 Other (203) 740 1,196 (1,607) 459 (81) (1,148) Total Revenues 165,720 157,691 140,440 184,775 175,096 359,706 359,871 Expenses Compensation 43,341 41,940 5,806 56,104 45,841 83,912 101,945 Performance Fee Compensation Realized Incentive Fees 2,918 2,312 23,950 3,470 8,711 16,189 12,181 Unrealized Carried Interest - - - - 4,077 - 4,077 Unrealized Incentive Fees
11,252 8,778 (27,064) 15,651 3,764 18,013 19,415 Total Compensation and Benefits 57,511 53,030 2,692 75,225 62,393 118,114 137,618 Other Operating Expenses 25,101 20,480 21,068 21,206 20,499 44,581 41,705 Total Expenses 82,612 73,510 23,760 96,431 82,892 162,695 179,323 Economic Income 83,108 $ 84,181 $ 116,680 $ 88,344 $ 92,204 $ 197,011 $ 180,548 $ Total Assets Under Management 60,672,759 $ 64,183,863 $ 63,585,670 $ 66,378,908 $ 67,829,866 $ 60,672,759 $ 67,829,866 $ Fee-Earning Assets Under Management 58,084,020 $ 62,037,082 $ 61,417,558 $ 64,114,498 $ 65,512,170 $ 58,084,020 $ 65,512,170 $ Weighted Average Fee-Earning AUM 56,793,206 $ 60,009,283 $ 61,730,313 $ 62,910,553 $ 65,453,883 $ 55,958,185 $ 64,405,449 $ LP Capital Invested 188,236 $ 473,233 $ 25,489 $ 133,351 $ 2,131 $ 355,406 $ 135,482 $ Total Capital Invested 196,348 $ 487,398 $ 12,137 $ 139,223 $ 2,136 $ 399,022 $ 141,359 $ |
Blackstone 18 Credit (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Management Fees, Net Base Management Fees 112,489 $ 120,684 $ 121,458 $ 125,029 $ 123,615 $ 218,063 $ 248,644 $ Transaction and Other Fees, Net 7,064 3,025 4,728 1,457 2,060 10,408 3,517 Management Fee Offsets (6,739) (6,850) (10,327) (7,850) (3,370) (10,991) (11,220) Total Management Fees, Net 112,814 116,859 115,859 118,636 122,305 217,480 240,941 Performance Fees Realized Carried Interest 11,439 164,602 13,231 13,367 26,925 30,599 40,292 Realized Incentive Fees 25,248 28,998 41,453 18,431 29,684 39,266 48,115 Unrealized Carried Interest 39,041 (61,604) (38,336) (11,951) 44,218 62,027 32,267 Unrealized Incentive Fees 29,703 (31,630) (61,542) 9,124 6,521 70,147 15,645 Total Performance Fees 105,431 100,366 (45,194) 28,971 107,348 202,039 136,319 Investment Income (Loss) Realized 2,223 3,040 1,020 2,237 2,723 5,294 4,960 Unrealized 4,521 4,892 (7,437) 6,887 2,760 7,600 9,647 Total Investment Income (Loss) 6,744 7,932 (6,417) 9,124 5,483 12,894 14,607 Interest Income and Dividend Revenue 4,892 5,968 6,319 5,651 5,938 10,753 11,589 Other 11 (3,619) 1,557 3,493 34 (248) 3,527 Total Revenues 229,892 227,506 72,124 165,875 241,108 442,918 406,983 Expenses Compensation 51,310 54,877 31,261 49,877 47,124 102,062 97,001 Performance Fee Compensation Realized Carried Interest 4,139 90,872 9,449 6,270 15,362 15,933 21,632 Realized Incentive Fees 12,510 16,125 22,653 8,401 12,455 22,890 20,856 Unrealized Carried Interest 20,803 (38,091) (22,148) (5,656) 21,497 31,656 15,841 Unrealized Incentive Fees 15,223 (17,657) (29,206) 6,735 2,137 30,611 8,872 Total Compensation and Benefits 103,985 106,126 12,009 65,627 98,575 203,152 164,202 Other Operating Expenses 22,159 20,860 14,666 21,836 23,539 54,998 45,375 Total Expenses 126,144 126,986 26,675 87,463 122,114 258,150 209,577 Economic Income 103,748 $ 100,520 $ 45,449 $ 78,412 $ 118,994 $ 184,768 $ 197,406 $ Total Assets Under Management 69,539,804 $ 70,151,848 $ 72,858,960 $ 74,959,534 $ 81,288,709 $ 69,539,804 $ 81,288,709 $ Fee-Earning Assets Under Management 56,117,009 $ 56,656,602 $ 58,821,006 $ 59,271,744 $ 61,608,998 $ 56,117,009 $ 61,608,998 $ Weighted Average Fee-Earning AUM 55,521,877 $ 56,913,390 $ 58,329,539 $ 58,607,856 $ 61,256,993 $ 54,483,806 $ 60,286,393 $ LP Capital Invested 363,752 $ 866,404 $ 846,696 $ 814,423 $ 47,768 $ 943,858 $ 862,191 $ Total Capital Invested 374,452 $ 888,254 $ 900,291 $ 989,775 $ 60,337 $ 961,708 $ 1,050,112 $ |
Blackstone 19 Financial Advisory (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 YTD'14 YTD'15 Revenues Advisory Fees 114,914 $ 84,131 $ 151,837 $ 84,238 $ 76,998 $ 184,877 $ 161,236 $ Transaction and Other Fees, Net 876 391 126 16 289 938 305 Total Advisory and Transaction Fees 115,790 84,522 151,963 84,254 77,287 185,815 161,541 Investment Income (Loss) Realized 106 505 (38) (230) (159) 240 (389) Unrealized 969 (528) (275) 1,482 (523) 1,663 959 Total Investment Income (Loss) 1,075 (23) (313) 1,252 (682) 1,903 570 Interest Income and Dividend Revenue 2,187 2,412 2,909 3,237 3,192 4,689 6,429 Other (160) 472 291 (956) (112) (335) (1,068) Total Revenues 118,892 87,383 154,850 87,787 79,685 192,072 167,472 Expenses Compensation 69,744 58,016 41,447 68,934 49,824 131,426 118,758 Total Compensation and Benefits 69,744 58,016 41,447 68,934 49,824 131,426 118,758 Other Operating Expenses 22,116 19,853 24,837 21,342 18,559 43,458 39,901 Total Expenses 91,860 77,869 66,284 90,276 68,383 174,884 158,659 Economic Income (Loss) 27,032 $ 9,514 $ 88,566 $ (2,489) $ 11,302 $ 17,188 $ 8,813 $ |
Blackstone 20 Unitholder Distribution Generated $0.88 of Distributable Earnings per common unit during the quarter, up 35% year-over-year, bringing the year-to-date amount to $1.93 per common unit. Declared a quarterly distribution of $0.74 per common unit to record holders as of July 27, 2015; payable on August 3, 2015. A detailed description of Blackstones distribution policy and the definition of Distributable Earnings can be found on page 31,
Definitions and Distribution Policy. DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Per Unit
calculations are based on end of period Total Common Units Outstanding (page 30, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. For the periods presented, Net Cash Available
for Distribution per Common Unit equals the Actual Distribution per Common Unit. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common unitholders share was
$88.3 million for 2Q15 and $188.4 million for YTD15. % Change % Change (Dollars in Thousands, Except per Unit Data) 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 vs. 2Q'14 YTD'14 YTD'15 vs. YTD'14 Distributable Earnings (DE) 765,172 $ 686,086 $ 1,134,054 $ 1,240,207 $ 1,033,920 $ 35% 1,243,818 $ 2,274,127 $ 83% Add: Other Payables Attributable to Common Unitholders 29,884 69,707 87,977 7,288 - (100)% 49,740 7,288 (85)% DE before Certain Payables 795,056 755,793 1,222,031 1,247,495 1,033,920 30% 1,293,558 2,281,415 76% Percent to Common Unitholders 53% 53% 53% 53% 54% 1% 53% 53% 1% DE before Certain Payables Attributable to Common Unitholders 420,236 400,587 650,899 663,608 554,120 32% 682,216 1,217,728 78% Less: Other Payables Attributable to Common Unitholders (29,884) (69,707) (87,977) (7,288) - 100% (49,740) (7,288) 85% DE Attributable to Common Unitholders 390,352 330,880 562,922 656,320 554,120 42% 632,476 1,210,440 91% DE per Common Unit 0.65 $ 0.54 $ 0.92 $ 1.05 $ 0.88 $ 35% 1.05 $ 1.93 $ 84% Less: Retained Capital per Common Unit (0.10) $ (0.10) $ (0.14) $ (0.16) $ (0.14) $ (40)% (0.15) $ (0.30) $ (100)% Actual Distribution per Common Unit 0.55 $ 0.44 $ 0.78 $ 0.89 $ 0.74 $ 35% 0.90 $ 1.63 $ 81% Record Date July 27, 2015 Payable Date Aug 3, 2015 |
Blackstone 21 Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent
redemptions, client withdrawals and other decreases in available
capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations. 2Q15 Fee-Earning AUM Rollforward (Dollars in Millions) 2Q15 LTM Fee-Earning AUM Rollforward (Dollars in Millions) Private Equity Real Estate Hedge Fund Solutions Credit Inflows: Eighth global opportunistic fund ($14.8 billion); BXMT ($1.0 billion). Outflows: Uninvested reserves at close of BREP VII investment period ($4.0 billion). Realizations: BREP VI ($523 million); co-investment ($424 million); BREP Europe III ($275 million); BREP VII ($187 million). Inflows: Individual investor solutions ($931 million); customized solutions ($661 million); specialized solutions ($511 million);
commingled products ($298
million). Outflows:
Driven
by
the
liquidity
needs
and
certain
strategic
shifts
in
investors
programs.
Inflows:
Three
CLO
launches
($1.7
billion);
capital
raised
in
BDCs
($1.6
billion);
Hedge
Fund
Strategies
($461
million).
Outflows:
Hedge
Fund
Strategies
($503
million);
BDCs
($793
million);
Long
Only
platform
($642
million).
Inflows:
Tactical
Opportunities
platform
($822
million);
Strategic
Partners
($516
million);
total
alternative
solutions
($226
million).
Realizations:
BCP
V
strategic
and
public
dispositions
including
Biomet,
Hilton,
Catalent,
Nielsen
and
Pinnacle;
Strategic
Partners
fund
of
funds realizations.
Fee-Earning Assets Under Management
Private Real Hedge Fund Equity Estate Solutions 1Q'15 49,342 $ 50,783 $ 64,115 $ 59,272 $ 223,512 $ Inflows 1,664 17,965 2,401 4,556 26,587 Outflows (106) (4,095) (1,741) (1,978) (7,920) Realizations (1,517) (2,360) (92) (965) (4,933) Net Inflows 42 11,510 568 1,614 13,735 Market Activity 153 390 829 723 2,096 2Q'15 49,537 $ 62,684 $ 65,512 $ 61,609 $ 239,342 $ QoQ Increase 0% 23% 2% 4% 7% Credit Total Private Real Hedge Fund Equity Estate Solutions 2Q'14 42,889 $ 52,824 $ 58,084 $ 56,117 $ 209,914 $ Inflows 12,227 25,253 11,683 18,878 68,040 Outflows (1,271) (4,264) (5,772) (6,162) (17,470) Realizations (4,534) (10,029) (229) (5,035) (19,828) Net Inflows 6,421 10,959 5,682 7,680 30,742 Market Activity 228 (1,099) 1,746 (2,188) (1,313) 2Q'15 49,537 $ 62,684 $ 65,512 $ 61,609 $ 239,342 $ YoY Increase 16% 19% 13% 10% 14% Credit Total |
Blackstone 22 Inflows: BXMT ($1.0 billion); eighth global real estate fund ($507 million); BPP ($321 million).
Realizations:
BREP
VI
($1.6
billion);
co-investments
($1.0
billion);
BREP
VII
($616
million);
BREP
Europe
III
($550
million).
Market
Activity:
Strong
operating
fundamentals
drove
1.2%
appreciation
in
opportunistic
funds
despite
declines
in
public
investment
values.
Market
Activity:
BAAMs
Principal
Solutions
Composite
up
1.1%
gross
(0.9%
net).
Inflows:
Energy
focused
products
($2.6
billion);
three
CLO
launches
($1.7
billion);
the
European
senior
debt
strategy
($893
million);
BDCs
($1.6
billion).
Realizations:
Capital
returned
to
CLO
investors
for
CLOs
outside
their
re-investment
periods
($944
million);
capital
realized
across
the
drawdown funds ($389 million).
Inflows:
Seventh
private
equity
fund
($15.7
billion);
Tactical
Opportunities
platform
($1.2
billion);
Strategic
Partners ($625 million).
Realizations:
BCP
V
($2.8
billion);
Strategic
Partners
($527
million);
BCP
VI
($265
million).
Market
Activity:
3.5%
appreciation
driven
by
the
private
portfolio
(up
4.0%)
services,
retail
and
healthcare
sectors.
Private
Equity
Real
Estate
Hedge
Fund
Solutions
Credit
2Q15 Total AUM Rollforward
(Dollars in Millions)
2Q15 LTM Total AUM Rollforward
(Dollars in Millions)
Inflows include contributions, capital raised, other increases in available
capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on
portfolio investments and impact of foreign exchange rate
fluctuations. Total Assets Under Management
Private Real Hedge Fund Equity Estate Solutions 1Q'15 76,327 $ 92,786 $ 66,379 $ 74,960 $ 310,451 $ Inflows 18,131 2,227 2,479 8,412 31,250 Outflows (118) (94) (1,791) (2,207) (4,210) Realizations (4,036) (4,817) (100) (1,338) (10,290) Net Inflows (Outflows) 13,978 (2,685) 588 4,867 16,749 Market Activity 1,721 1,478 863 1,462 5,524 2Q'15 92,026 $ 91,579 $ 67,830 $ 81,289 $ 332,724 $ QoQ Increase (Decrease) 21% (1)% 2% 8% 7% Credit Total Private Real Hedge Fund Equity Estate Solutions 2Q'14 68,294 $ 80,411 $ 60,673 $ 69,540 $ 278,918 $ Inflows 29,837 26,784 11,397 25,888 93,906 Outflows (1,255) (482) (5,885) (6,912) (14,533) Realizations (13,881) (25,389) (256) (6,229) (45,754) Net Inflows 14,701 913 5,256 12,748 33,618 Market Activity 9,031 10,254 1,901 (999) 20,187 2Q'15 92,026 $ 91,579 $ 67,830 $ 81,289 $ 332,724 $ YoY Increase 35% 14% 12% 17% 19% Credit Total Inflows: Individual investor solutions ($931 million); customized solutions ($661 million); specialized solutions ($511
million). |
Blackstone 23 Net Accrued Performance Fees Blackstone had $4.5 billion of accrued performance fees, net of performance fee compensation and distributed Realized Performance Fees, at the end of the quarter. $4.5 billion Net Accrued Performance Fees at 2Q15 $3.80 per unit Net Accrued Performance Fees at 2Q15 5.4% increase in Net Accrued Performance Fees since 2Q14 Net Accrued Performance Fees (Dollars in Millions, Except per Unit Data) 1Q'15 2Q'15 2Q'15 Per Unit QoQ Change Private Equity BCP IV Carried Interest 178 $
186
$
0.16 $
8 $
BCP V Carried Interest
1,479 1,119 0.95 (360) BCP VI Carried Interest 270 320 0.27 50 BEP Carried Interest 64 82 0.07 18 Tactical Opportunities Carried Interest 24 36 0.03 12 BTAS Carried Interest 2 2 Strategic Partners Carried Interest 11 18 0.02 7 Other Carried Interest 1 1 - Total Private Equity 2,027 1,764 1.50 (263) Real Estate BREP IV Carried Interest 30 36 0.03 6 BREP V Carried Interest 652 583 0.50 (69) BREP VI Carried Interest 1,109 868 0.74 (241) BREP VII Carried Interest 527 565 0.48 38 BREP Int'l I Carried Interest 1 200 0.17 (1) BREP Europe III Carried Interest 201 86 0.07 (1) BREP Europe IV Carried Interest 56 - 30 BREP Asia Carried Interest 30 43 0.04 13 BPP Carried Interest 14 18 0.02 4 BPP Incentive Fees - 4 4 BREDS Carried Interest 17 11 0.01 (6) BREDS Incentive Fees 4 3 (1) Asia Platform Incentive Fees 7 7 0.01 - Total Real Estate 2,648 2,424 2.06 (224) Hedge Fund Solutions Incentive Fees 40 60 0.05 20 Total Hedge Fund Solutions 40 60 0.05 20 Credit Carried Interest 165 183 0.16 18 Incentive Fees 30 41 0.03 11 Total Credit 195 224 0.19 29 Total Blackstone Carried Interest 4,829 4,357 3.70 (472) Incentive Fees 81 115 0.10 34 Net Accrued Performance Fees 4,910 $
4,472 $
3.80 $
(438) $
Memo: Net Realized Performance Fees
130 $
52 $
0.04
$
(78)
$
Net Accrued
Performance Fees are presented net of performance fee compensation and do not include clawback amounts, if any, which are disclosed in the 10-K/Q. Net Realized Performance Fees are included in DE. When these fees are received, the receivable is reduced without further impacting DE. Per Unit
calculations are based on end of period DE Units Outstanding (see
page 30, Unit Rollforward).
$ $
$
$ $ $
$
$ $ $
$
$ $ $
$
$ - - - - - - |
Blackstone 24 Investment Records as of June 30, 2015 (a) Notes on page 25. Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total Private Equity BCP I (Oct 1987 / Oct 1993) 859,081 $ - $
- $
n/a - 1,741,738 $ 2.6x 1,741,738 $ 2.6x 19% 19% BCP II (Oct 1993 / Aug 1997) 1,361,100 - -
n/a
- 3,256,819 2.5x 3,256,819 2.5x 32% 32% BCP III (Aug 1997 / Nov 2002) 3,967,422 - -
n/a
- 9,184,688 2.3x 9,184,688 2.3x 14% 14% BCOM (Jun 2000 / Jun 2006) 2,137,330 199,298 244,793 1.2x - 2,619,040 1.4x 2,863,833 1.3x 7% 6% BCP IV (Nov 2002 / Dec 2005) 6,773,182 221,559 2,552,980 1.4x 38% 18,651,006 3.2x 21,203,986 2.8x 45% 36% BCP V (Dec 2005 / Jan 2011) 21,028,965 1,308,522 15,918,338 1.8x 62% 22,107,154 1.9x 38,025,492 1.9x 10% 9% BCP VI (Jan 2011 / Jan 2017) 15,182,283 5,981,314 12,028,108 1.4x 17% 1,776,759 1.8x 13,804,867 1.4x 49% 14% BEP (Aug 2011 / Aug 2017) 2,438,402 300,285 2,917,957 1.5x 25% 537,505 2.0x 3,455,462 1.5x 56% 28% BEP II (Feb 2015 / Feb 2021) 4,951,351 4,951,351 - n/a
- - n/a
- n/a
n/a n/a BCP VII (TBD) 15,723,875 15,723,875 - n/a
- - n/a
- n/a
n/a n/a Total Corporate Private Equity 74,422,991 $ 28,686,204 $ 33,662,176 $ 1.6x 40% 59,874,709 $ 2.3x 93,536,885 $ 1.9x 20% 16% Tactical Opportunities 10,052,258 5,553,528 5,178,390 1.1x 2% 1,072,776 1.5x 6,251,166 1.2x 35% 14% Strategic Partners 17,157,488 4,600,759 6,716,759 1.7x n/a 12,162,598 1.2x 18,879,357 1.3x n/a 15% Other Funds and Co-Investment (e) 1,890,393 363,521 1,251,384 1.1x 51% 105,614 1.7x 1,356,998 1.1x n/a n/a Total Private Equity 103,523,130 $ 39,204,012 $ 46,808,709 $ 1.5x 30% 73,215,697 $ 2.0x 120,024,406 $ 1.7x 19% 16% Real Estate Dollar Pre-BREP 140,714 $ - $
- $
n/a
n/a 345,190 $ 2.5x 345,190 $ 2.5x 33% 33% BREP I (Sep 1994 / Oct 1996) 380,708 - -
n/a
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
n/a 2,531,613 2.1x 2,531,613 2.1x 19% 19% BREP III (Apr 1999 / Apr 2003) 1,522,708 - -
n/a
n/a 3,328,504 2.4x 3,328,504 2.4x 21% 21% BREP IV (Apr 2003 / Dec 2005) 2,198,694 - 1,095,583
1.0x 15% 3,627,456 2.2x 4,723,039 1.7x 45% 14% BREP V (Dec 2005 / Feb 2007) 5,539,418 - 5,402,980
2.3x 31% 7,458,152 2.2x 12,861,132 2.2x 14% 12% BREP VI (Feb 2007 / Aug 2011) 11,059,523 584,641 10,191,646 2.5x 66% 16,123,433 2.4x 26,315,079 2.4x 15% 14% BREP VII (Aug 2011 /Apr 2015) 13,484,365 3,163,143 15,111,273 1.5x 1% 7,338,402 1.9x 22,449,675 1.6x 35% 25% BREP VIII (Apr 2015 / Oct 2020) 15,060,000 15,041,248 102,944 1.0x n/a - n/a
102,944 1.0x n/a n/a Total Global BREP 50,584,469 $ 18,789,032 $ 31,904,426 $ 1.8x 28% 42,080,458 $ 2.2x 73,984,884 $ 2.0x 22% 18% Euro BREP Int'l (Jan 2001 / Sep 2005) 824,172 -
1,547
0.2x n/a 1,362,975 2.1x 1,364,522 2.1x 24% 23% BREP Int'l II (Sep 2005 / Jun 2008) 1,629,748 53,416 1,500,586 1.5x 32% 785,346 2.0x 2,285,932 1.6x 11% 6% BREP Europe III (Jun 2008 / Sep 2013) 3,205,140 465,841 3,631,038 1.8x 9% 2,005,051 2.1x 5,636,089 1.9x 25% 20% BREP Europe IV (Sep 2013 / Mar 2019) 6,691,740 3,664,780 4,250,499 1.2x n/a 261,576 1.3x 4,512,075 1.3x 38% 22% Total Euro BREP 12,350,800 4,184,037 9,383,670 1.5x 9% 4,414,948 2.0x 13,798,618 1.6x 21% 14% BREP Co-Investment (f) 5,571,295 $ - $
5,848,998 $ 2.0x 69% 5,766,461 $ 2.2x 11,615,459 $ 2.1x 16% 17% BREP Asia (Jun 2013 / Dec 2017) 5,075,917 3,130,004 2,463,724 1.3x n/a 28,400 1.1x 2,492,124 1.3x 10% 16% Total BREP 77,300,971 $ 26,671,685 $ 52,492,491 $ 1.7x 26% 53,743,005 $ 2.2x 106,235,496 $ 1.9x 21% 17% BPP (g) 5,383,751 $ 2,242,222 $ 3,661,781 $ 1.2x n/a - $
n/a 3,661,783 $ 1.2x n/a 19% BREDS (h) 7,256,058 $ 2,365,171 $ 2,603,472 $ 1.2x - 4,282,116 $ 1.3x 6,885,588 $ 1.3x 14% 12% Hedge Fund Solutions BSCH (Dec 2013 / Jun 2020) (i) 3,301,000 $ 3,016,230 $ 287,881 $ 1.1x - 25,782 $
n/a
313,663 $ 1.2x n/a 16% Hedge Fund Solutions 3,301,000 $ 3,016,230 $ 287,881 $ 1.1x - 25,782 $
n/a
313,663 $ 1.2x n/a 16% Credit (j) Mezzanine I (Jul 2007 / Jul 2012) 2,000,000 $ 108,801 $ 731,424 $ 1.7x - 4,117,474 $ 1.6x 4,848,898 $ 1.6x n/a 18% Mezzanine II (Nov 2011 / Nov 2016) 4,120,000 2,624,554 2,765,478 1.3x - 1,225,751 1.5x 3,991,229 1.3x n/a 23% Rescue Lending I (Sep 2009 / May 2013) 3,253,143 550,910 2,407,564 1.4x - 3,532,791 1.5x 5,940,355 1.5x n/a 14% Rescue Lending II (Jun 2013 / Jun 2018) 5,125,000 3,761,279 1,778,060 1.3x - 88,846 1.1x 1,866,906 1.2x n/a n/m Total Credit 14,498,143 $ 7,045,544 $ 7,682,526 $ 1.4x - 8,964,862 $ 1.5x 16,647,388 $ 1.4x n/a 18% |
Blackstone 25 Investment Records as of June 30, 2015 Notes The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P.
n/m Not meaningful. n/a Not applicable. (a) Preliminary. (b) Available Capital represents total investable capital commitments, including side-by-side, adjusted for certain expenses and
expired or recallable capital, less invested capital. This amount
is not reduced by outstanding commitments to investments.
(c) Multiple of Invested Capital (MOIC) represents carrying value, before management fees, expenses and Carried Interest,
divided by invested capital.
(d) Net Internal Rate of Return (IRR) represents the annualized inception to June 30, 2015 IRR on total invested capital based on
realized proceeds and unrealized value, as applicable, after
management fees, expenses and Carried Interest. (e)
Returns for Other Funds and Co-Invest are not meaningful as these funds
have limited transaction activity. (f)
BREP Co-Investment represents co-investment capital raised for various
BREP investments. The Net IRR reflected is calculated by
aggregating each co-investments realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest. (g) BPP, or Blackstone Property Partners, are the core+ real estate funds which invest with a more modest risk profile and lower
leverage.
(h) Excludes Capital Trust drawdown funds. (i) BSCH is a permanent capital vehicle focused on acquiring strategic minority positions in alternative asset managers.
(j) The Total Investments MOIC for Mezzanine I, Mezzanine II, Rescue Lending I and Rescue Lending II Funds, excluding recycled
capital during the investment period, was 2.0x, 1.7x, 1.7x and 1.5x,
respectively. Funds presented represent the flagship credit
drawdown funds only. The Total Credit Net IRR is the combined IRR of the four
flagship credit drawdown funds presented. |
Blackstone 26 Reconciliation of GAAP to Non-GAAP Measures Notes on page 27. (Dollars in Thousands) 2Q'14 3Q'14 4Q'14 1Q'15 (m) 2Q'15 YTD'14 YTD'15 Net Income Attributable to The Blackstone Group L.P. 517,016 $ 250,505 $ 551,451 $ 629,448 $ 134,168 $ 782,633 $ 763,616 $ Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
543,819 271,194 586,582 645,230 134,870 843,324 780,100 Net Income Attributable to Non-Controlling Interests in Consolidated Entities
140,061 55,491 95,557 81,796 66,716 184,022 148,512 Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities 22,486 (23,328) 29,844 7,527 13,780 68,278 21,307 Net Income 1,223,382 $ 553,862 $ 1,263,434 $ 1,364,001 $ 349,534 $ 1,878,257 $ 1,713,535 $ Provision for Taxes 83,282 79,108 74,686 99,344 43,251 137,379 142,595 Income Before Provision for Taxes 1,306,664 $ 632,970 $ 1,338,120 $ 1,463,345 $ 392,785 $ 2,015,636 $ 1,856,130 $ IPO and Acquisition-Related Charges (a) 178,568 209,240 291,550 231,862 192,018 355,592 423,880 Amortization of Intangibles (b) 28,310 27,828 26,113 25,899 24,720 57,313 50,619 (Income) Associated with Non-Controlling Interests of Consolidated Entities (c) (162,547) (32,163) (125,401) (89,323) (80,496) (252,300) (169,819) Economic Income 1,350,995 $ 837,875 $ 1,530,382 $ 1,631,783 $ 529,027 $ 2,176,241 $ 2,160,810 $ Taxes (d) (25,032) (79,519) (83,649) (9,719) (20,587) (36,344) (30,306) Economic Net Income 1,325,963 $ 758,356 $ 1,446,733 $ 1,622,064 $ 508,440 $ 2,139,897 $ 2,130,504 $ Taxes (d) 25,032 79,519 83,649 9,719 20,587 36,344 30,306 Performance Fee Adjustment (e) (1,398,438) (891,087) (1,323,338) (1,673,736) (569,664) (2,177,452) (2,243,400) Investment (Income) Adjustment (f) (175,971) (80,766) (98,424) (189,641) (10,774) (292,438) (200,415) Net Interest Loss (g) 11,988 10,636 5,851 8,402 14,411 20,024 22,813 Performance Fee Compensation and Benefits Adjustment (h) 417,838 360,162 270,249 403,816 215,441 655,092 619,257 Fee Related Earnings 206,412 $ 236,820 $ 384,720 $ 180,624 $ 178,441 $ 381,467 $ 359,065 $ Net Realized Performance Fees (i) 402,140 470,560 699,472 932,789 725,433 616,567 1,658,222 Realized Investment Income (j) 202,199 75,832 153,477 107,792 136,497 314,116 244,289 Net Interest (Loss) (g) (11,988) (10,636) (5,851) (8,402) (14,411) (20,024) (22,813) Taxes and Related Payables Including Payable Under Tax Receivable Agreement (k) (44,841) (96,437) (108,456) (16,994) (20,587) (75,895) (37,581) Equity-Based Compensation (l) 11,250 9,947 10,692 44,398 28,547 27,587 72,945 Distributable Earnings 765,172 $ 686,086 $ 1,134,054 $ 1,240,207 $ 1,033,920 $ 1,243,818 $ 2,274,127 $ Interest Expense 34,082 34,221 34,154 38,853 45,437 64,480 84,290 Taxes and Related Payables Including Payable Under Tax Receivable Agreement (k) 44,841 96,437 108,456 16,994 20,587 75,895 37,581 Depreciation and Amortization 7,170 7,557 7,200 6,927 6,715 17,543 13,642 Adjusted EBITDA 851,265 $ 824,301 $ 1,283,864 $ 1,302,981 $ 1,106,659 $ 1,401,736 $ 2,409,640 $ |
Blackstone 27 Reconciliation of GAAP to Non-GAAP Measures Notes Note: See page 31, Definitions and Distribution Policy. (a) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which
include principally equity-based compensation charges
associated with Blackstones initial public offering and long-term retention programs outside of annual deferred compensation and other corporate actions.
(b) This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which
are associated with Blackstones initial public offering and
other corporate actions. (c)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes
the amount of (Income) Loss Associated with Non- Controlling
Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated CLO Entities. (d) Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.
(e) This adjustment removes from EI the total segment amount of Performance Fees.
(f) This adjustment removes from EI the total segment amount of Investment Income (Loss).
(g) This adjustment represents Interest Income and Dividend Revenue less Interest Expense.
(h) This adjustment removes from expenses the compensation and benefit amounts related to Blackstones profit sharing plans related
to Performance Fees.
(i) Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstones profit
sharing plans related thereto.
(j) Represents the adjustment for Blackstones Investment Income (Loss) - Realized. (k) Taxes and Related Payables Including Payable Under Tax Receivable Agreement represent the current tax provision (benefit)
calculated on Income (Loss) Before Provision (Benefit) for Taxes and the
Payable Under Tax Receivable Agreement. (l)
Represents equity-based award expense included in EI.
(m) Blackstone adopted new GAAP consolidation guidance in 2Q15 which resulted in the deconsolidation of certain Blackstone
Funds as of January 1, 2015. Adoption did not change Net Income
Attributable to The Blackstone Group L.P. in 1Q15, but did change Income Before Taxes, Net Income and Net Income Attributable to Non-Controlling and Redeemable Non-Controlling Interests in
Consolidated Entities. Such amounts have been recast here from
the amounts originally reported in 1Q15. |
Blackstone 28 Walkdown of Financial Metrics (Dollars in Thousands, Except per Unit Data) 2Q'15 YTD'15 Results Per Unit Results Per Unit Base Management Fees 516,492 $ 1,032,889 $ Advisory Fees 76,998 161,236 Transaction and Other Fees, Net 11,728 48,801 Management Fee Offsets (18,434) (36,379) Other Revenue 3,973 (899) Compensation (289,352) (619,190) Non-Interest Operating Expenses (122,964) (227,393) Fee Related Earnings 178,441 $ 0.15 $
359,065 $ 0.31 $
Net Realized Incentive Fees
25,982 43,425 Net Realized Carried Interest 699,451 1,614,797 Realized Investment Income 136,497 244,289 Net Interest (Loss) (14,411) (22,813) Taxes and Related Payables (20,587) (37,581) Equity-Based Compensation 28,547 72,945 Distributable Earnings 1,033,920 $ 0.88 $
2,274,127 $ 1.93 $
Net Unrealized Incentive Fees
20,180 57,839 Net Unrealized Carried Interest (391,390) (91,918) Unrealized Investment (Loss) (125,723) (43,874) Add Back: Related Payables - 7,275 Less: Equity-Based Compensation (28,547) (72,945) Economic Net Income 508,440 $ 0.43 $
2,130,504 $ 1.80 $
See page 29, Walkdown of Financial Metrics Calculation of Certain
Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on page 14, Total Segments. 2Q15 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 2Q15 DE per Unit is based
on end of period Total Common Units Outstanding; and 2Q15 ENI per Unit is based on Weighted-Average ENI Adjusted Units. YTD15 per Unit represents the sum of the last two quarters. See page 30,
Unit Rollforward. |
Blackstone 29 Walkdown of Financial Metrics Calculation of Certain Non-GAAP Financial Metrics Unless otherwise noted, all amounts are the respective captions from the Total Segment information.
(a) Represents equity-based award expense included in Economic Income. (b) See page 26, Reconciliation of GAAP to Non-GAAP Measures for this adjustment.
(c) Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related
Payables. (Dollars in Thousands)
2Q'15 YTD'15 Operating Expenses 168,401 311,683 Less: Interest Expense (45,437) (84,290) Non-Interest Operating Expenses 122,964 $ 227,393 $ Realized Incentive Fees 47,819 77,489 Less: Realized Incentive Fee Compensation (21,837) (34,064) Net Realized Incentive Fees 25,982 $ 43,425 $ Realized Carried Interest 937,483 2,145,077 Less: Realized Carried Interest Compensation (238,032) (530,280) Net Realized Carried Interest 699,451 $ 1,614,797 $ Interest Income and Dividend Revenue 31,026 61,477 Less: Interest Expense (45,437) (84,290) Net Interest (Loss) (14,411) $ (22,813) $ Equity-Based Compensation (a) 28,547 $ 72,945 $ Taxes and Related Payables (b) (20,587) $ (37,581) $ Unrealized Incentive Fees 26,311 88,931 Less: Unrealized Incentive Fee Compensation (6,131) (31,092) Net Unrealized Incentive Fees 20,180 $ 57,839 $ Unrealized Carried Interest (441,949) (68,097) Less: Unrealized Carried Interest Compensation 50,559 (23,821) Net Unrealized Carried Interest (391,390) $ (91,918) $ Related Payables (c) - $
7,275 $ |
Blackstone 30 Unit Rollforward Common Unitholders receive tax benefits from deductions taken by Blackstones corporate tax paying subsidiaries and bear
responsibility for the deduction from Distributable Earnings of
the Payable Under Tax Receivable Agreement and certain other tax-related payables. Distributable Earnings Units Outstanding excludes units which are not entitled to distributions.
2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 606,690,740 611,684,213 615,492,620 625,276,969 631,881,205 Adjustments: 3,207,089 3,294,657 6,843,140 5,955,072 2,311,444 609,897,829 614,978,870 622,335,760 631,232,041 634,192,649 Adjustments: Weighted-Average Blackstone Holdings Partnership Units 544,158,132 539,856,777 536,973,966 548,837,150 555,641,388 Weighted-Average Economic Net Income Adjusted Units 1,154,055,961 1,154,835,647 1,159,309,726 1,180,069,191 1,189,834,037 Economic Net Income Adjusted Units, End of Period 1,154,840,023 1,155,075,985 1,159,954,181 1,192,529,251 1,190,864,027 Total Common Units Outstanding 603,270,771 607,590,602 611,480,457 625,985,058 630,414,455 Adjustments: Blackstone Holdings Partnership Units 538,074,958 538,760,225 536,543,970 550,783,119 545,861,003 Distributable Earnings Units Outstanding 1,141,345,729 1,146,350,827 1,148,024,427 1,176,768,177 1,176,275,458 Total GAAP Weighted-Average Common Units Outstanding - Basic Weighted-Average Unvested Deferred Restricted Common Units Total GAAP Weighted-Average Common Units Outstanding - Diluted
|
Blackstone 31 Definitions and Distribution Policy Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in
accordance with generally accepted accounting principles in
the United States of America (non-GAAP) in this presentation: Blackstone uses Economic Income, or EI, as a key measure of value creation, a benchmark of its performance and in making
resource deployment and compensation decisions across its
five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from Blackstones initial public offering (IPO) and long-term retention
programs outside of annual deferred compensation and other
corporate actions, including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent consideration associated with acquisitions. EI presents revenues and expenses on a basis
that deconsolidates the investment funds Blackstone
manages. Economic Net Income, or ENI, represents EI
adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision for Taxes. Blackstone uses Fee Related Earnings, or FRE, as a key measure to highlight earnings from operations excluding: (a) the
income related to performance fees and related carry plan
costs and (b) income earned from Blackstones investments in the Blackstone Funds. Blackstone uses FRE as a measure to assess whether recurring revenue from its businesses is sufficient to adequately cover all of its operating
expenses and generate profits. FRE equals contractual fee
revenues less (a) compensation expenses (which includes amortization of non-IPO and non-acquisition- related equity-based awards, but excludes amortization of IPO and acquisition-related equity-based awards, carried interest
and incentive fee compensation), and (b) other operating
expenses. Distributable Earnings, or DE, which is
derived from Blackstones segment reported results, is a supplemental measure to assess performance and amounts available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the
Blackstone Holdings partnerships. DE is intended to show
the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a component of ENI, is the sum across all segments of: (a) Total Management and Advisory Fees, (b) Interest and Dividend
Revenue, (c) Other Revenue, (d) Realized Performance Fees, and
(e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and Related Payables Including the Payable
Under Tax Receivable Agreement. DE is reconciled to
Blackstones Consolidated Statement of Operations.
Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and
Amortization, or Adjusted EBITDA, as a measure of segment performance and an indicator of its ability to cover recurring operating expenses. Adjusted EBITDA equals DE before segment interest
expense, segment depreciation and amortization, and the
taxes and related payables including the Payable Under Tax Receivable Agreement. Distribution Policy. Blackstones intention is to distribute quarterly approximately 85% of The Blackstone Group L.P.s share
of Distributable Earnings, subject to adjustment by amounts
determined by Blackstones general partner to be necessary or appropriate to provide for the conduct of its business, to make appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other
agreements, or to provide for future cash requirements such
as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter. The amount to be distributed could also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the
declaration and payment of any distributions are at the
sole discretion of Blackstones general partner and may change at any time, including, without limitation, to eliminate such distributions entirely. |
Blackstone 32 Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 which reflect
Blackstones current views with respect to, among other things,
Blackstones operations and financial performance. You can identify these
forward-looking statements by the use of words such as
outlook, indicator, believes,
expects, potential, continues, may, will, should, seeks, approximately, predicts,
intends, plans, estimates,
anticipates or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual
outcomes or results to differ materially from those indicated in
these statements. Blackstone believes these factors include but
are not limited to those described under the section entitled Risk Factors in its Annual Report on Form 10-K for the fiscal
year ended December 31, 2014, as such factors may be updated from
time to time in its periodic filings with the Securities and Exchange Commission, which are accessible on the SECs website at www.sec.gov. These factors should not be construed as exhaustive
and should be read in conjunction with the other cautionary
statements that are included in this presentation and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future
developments or otherwise.
This presentation does not constitute an offer of any Blackstone
Fund. |