UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 16, 2015

 

 

The Blackstone Group L.P.

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware   001-33551   20-8875684

(State or other jurisdiction

of incorporation)

  

(Commission

File Number)

  

(I.R.S. Employer

Identification No.)

 

345 Park Avenue

New York, New York

   10154
(Address of principal executive offices)   (Zip Code)

(212) 583-5000

(Registrant’s telephone number, including area code)

NOT APPLICABLE

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

Item 2.02 Results of Operations.

On April 16, 2015, The Blackstone Group L.P. issued a press release and detailed presentation announcing financial results for its first quarter ended March 31, 2015.

The press release and full detailed presentation are attached hereto as Exhibit 99.1 and Exhibit 99.2, respectively. All information in the press release and presentation is furnished but not filed.

 

Item 9.01 Financial Statements and Exhibits.

 

  (d) Exhibits.

 

Exhibit
No.

   

Description

99.1    Press release of The Blackstone Group L.P. dated April 16, 2015.
99.2    Presentation of The Blackstone Group L.P. dated April 16, 2015.

 

i

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 16, 2015

 

The Blackstone Group L.P.
By: Blackstone Group Management L.L.C.,
its General Partner
By:

/s/ Laurence A. Tosi

Name: Laurence A. Tosi
Title: Chief Financial Officer

 

ii



Exhibit 99.1

 

LOGO

Blackstone Reports First Quarter Results

New York, April 16, 2015: Blackstone (NYSE:BX) today reported its first quarter 2015 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone again broke all of our asset and earnings records in the first quarter. Economic Net Income doubled from the prior year, while Distributable Earnings rose nearly 160%. Realization activity continued to accelerate while, at the same time, we’ve been raising and investing funds at an unprecedented rate, creating the basis for future value. Our limited partners entrusted us with $30 billion of new capital in the quarter and $77 billion over the last twelve months, shattering our own record for the alternative asset management industry, and driving our Total Assets Under Management to $310 billion, up 14% year over year.”

Blackstone issued a full detailed presentation of its first quarter 2015 results, which can be viewed at www.Blackstone.com.

Distribution

Blackstone has declared a quarterly distribution of $0.89 per common unit to record holders of common units at the close of business on April 27, 2015. This distribution will be paid on May 4, 2015.

Quarterly Investor Call Details

Blackstone will host a conference call on April 16, 2015 at 11:00 a.m. ET to discuss first quarter 2015 results. The conference call can be accessed via the Investors section of Blackstone’s website at www.Blackstone.com or by dialing +1 (877) 384-4191 (U.S. domestic) or +1 (857) 244-7413 (international), pass code 197 089 58#. For those unable to listen to the live broadcast, a replay will be available on www.Blackstone.com or by dialing +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), pass code 538 280 93#.

About Blackstone

Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $300 billion in assets under management, include investment vehicles focused on

 

 

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at www.Blackstone.com. Follow Blackstone on Twitter @Blackstone.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “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 SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. Blackstone undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

This release does not constitute an offer of any Blackstone Fund.

Investor and Media Relations Contacts

 

Joan Solotar

Blackstone

Tel: +1 (212) 583-5068

solotar@blackstone.com

Weston Tucker

Blackstone

Tel: +1 (212) 583-5231

tucker@blackstone.com

Peter Rose

Blackstone

Tel: +1 (212) 583-5871

rose@blackstone.com

 

2



Blackstone’s First Quarter 2015 Earnings
April 16, 2015
Exhibit 99.2

Blackstone’s First Quarter 2015 Highlights
Economic Net Income (“ENI”) was a record $1.6 billion ($1.37/unit) in the first quarter, up 99% from the
same period last year, on continued strong portfolio company operating performance and fund
appreciation across the investment businesses.
Distributable
Earnings
(“DE”)
reached
a
record
$1.2
billion
($1.05/unit)
in
the
first
quarter
on
$13.5
billion
of realizations, up 159% from $479 million on $9.3 billion of realizations in the same period
last year.
Fund activity generated $1.2 billion of Realized Performance Fees, three times the prior year period,
while continuing to grow Net Accrued Performance Fees to a record $4.9 billion ($4.17/unit).
GAAP
Net
Income
was
$629
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 AUM rose to $310.5 billion, making Blackstone the first alternative asset manager to eclipse the
$300
billion milestone.
Total AUM was up 14% year-over-year, despite returning $62.5 billion of capital to investors over the
last
twelve
months
as
asset
growth
and
appreciation
outpaced
the
impact
of
increased
realizations.
Gross inflows were $30.4 billion in the first quarter and $77.2 billion over the last twelve months.
Increased investment activity led to $5.1 billion of capital invested during the first quarter, bringing the
last
twelve
months
(“LTM”)
to
$26.6
billion,
up
5%
and
46%
from
the
respective
prior
year
periods.
Blackstone
declared
a
first
quarter
distribution
of
$0.89
per
common
unit
payable
on
May
4,
2015,
the
highest
quarterly
distribution
in
its
history
(up
154%
from
last
year).
Blackstone
1

Blackstone
2
Blackstone’s First Quarter 2015 Earnings
% Change
% Change
(Dollars in Thousands, Except per Unit Data)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
590,976
$        
614,891
$        
4%
2,381,140
$     
2,601,360
$     
9%
Performance Fees
779,014
          
1,673,736
       
115%
3,731,388
       
5,286,599
       
42%
Investment Income
116,467
          
189,641
          
63%
669,501
          
544,802
          
(19)%
Interest Income and Dividend Revenue
22,362
             
30,451
             
36%
78,637
             
104,433
          
33%
Total Revenues
1,508,819
$    
2,508,719
$    
66%
6,860,666
$    
8,537,194
$    
24%
Total Expenses
683,573
          
876,936
          
28%
3,077,718
       
3,186,159
       
4%
Taxes
11,312
             
9,719
               
(14)%
83,445
             
197,919
          
137%
Economic Net Income (“ENI”)
813,934
$        
1,622,064
$    
99%
3,699,503
$    
5,153,116
$    
39%
ENI per Unit
0.70
$              
1.37
$              
96%
3.23
$              
4.43
$              
37%
GAAP Net Income
265,617
$        
629,448
$        
137%
1,269,184
$     
1,948,420
$     
54%
Fee Related Earnings (“FRE”)
175,055
$        
180,624
$        
3%
822,196
$        
1,008,576
$     
23%
Distributable Earnings (“DE”)
478,646
$        
1,240,207
$    
159%
1,951,264
$    
3,825,519
$    
96%
DE per Common Unit
0.40
$              
1.05
$              
163%
1.61
$              
3.16
$              
96%
Total Assets Under Management
271,745,583
  
310,451,289
  
14%
271,745,583
  
310,451,289
  
14%
Fee-Earning Assets Under Management
203,599,604
  
223,511,700
  
10%
203,599,604
  
223,511,700
  
10%
Fee Related Earnings, a Total Segment measure, has been redefined to exclude Interest Income and Dividend Revenue, Interest Expense and Investment Income (Loss) – Blackstone
Treasury Cash Management Strategies.  As a result, Distributable Earnings, a Total Segment measure, has been redefined to exclude Unrealized Investment Income (Loss) –
Blackstone Treasury Cash Management Strategies. Calculated under the prior methodology, the 1Q’15 FRE and DE would have been $2.1 million greater and $11.3 million greater,
respectively, and the 1Q’15 LTM FRE and DE would have been $33.3 million lower and $1.3 million lower, respectively.

Walkdown of Financial Metrics
See
page
31-32,
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 16, Total
Segments. 1Q’15 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 1Q’15 DE per Unit is based on end of period Total Common Units Outstanding; and 1Q’15 ENI per Unit is based on
Weighted-Average ENI Adjusted Units. 1Q’15 LTM per Unit represents the sum of the last four quarters. See page 33, Unit Rollforward.
(Dollars in Thousands, Except per Unit Data)
1Q'15
1Q'15 LTM
Results
Per Unit
Results
Per Unit
Base Management Fees
516,397
$         
2,027,048
$     
Advisory Fees
84,238
435,120
Transaction and Other Fees, Net
37,073
223,600
Management Fee Offsets
(17,945)
(88,072)
Other Revenue
(4,872)
3,664
Compensation
(329,838)
(1,176,804)
Non-Interest Operating Expenses
(104,429)
(415,980)
Fee Related Earnings
180,624
$         
0.15
$               
1,008,576
$     
0.88
$               
Net Realized Incentive Fees
17,443
138,887
Net Realized Carried Interest
915,346
2,366,074
Realized Investment Income
107,792
539,300
Net Interest Income (Loss)
(8,402)
(36,877)
Taxes and Related Payables
(16,994)
(266,728)
Equity-Based Compensation
44,398
76,287
Distributable Earnings
1,240,207
$     
1.05
$               
3,825,519
$     
3.16
$               
Net Unrealized Incentive Fees
37,659
(10,225)
Net Unrealized Carried Interest
299,472
1,339,798
Unrealized Investment Income
81,849
5,502
Add Back: Related Payables
7,275
68,809
Less: Equity-Based Compensation
(44,398)
(76,287)
Economic Net Income
1,622,064
$     
1.37
$               
5,153,116
$     
4.43
$               
Blackstone
3

Blackstone
4
Private Equity
21.1%
1Q’15 LTM increase in fund carrying value
$510 million
YoY increase in 1Q’15 Economic Income
$76.3 billion
Total AUM up 15% YoY
Record Total Revenues and Economic Income of $1.2 billion and $829 million for the quarter, respectively.
Performance Fees up over 200% to $950 million from $287 million in the same period last year.
Appreciation of 6.4% in the quarter and 21.1% LTM on strong operating performance particularly in BCP V
(up
12.0% and 34.2% during the quarter and LTM, respectively).
Realizations remained strong with $3.3 billion during the quarter and $14.0 billion LTM driven by public and strategic exits
in corporate private equity funds.
•
First quarter realizations: Catalent, Pinnacle Foods and Michaels (BCP V); Merlin (BCP IV).
•
Completed the successful IPO of Summit Materials and announced the strategic sale of Freescale.
Investment environment remains solid, with $2.5
billion total capital invested during the quarter.
Raised $2.4 billion of new capital for the second Tactical Opportunities platform bringing total closings to date to $3.1
billion.
Currently fundraising for seventh global Private Equity fund; first close expected in the second quarter of 2015.
% Change
% Change
(Dollars in Thousands)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
140,582
$       
121,968
$       
(13)%
493,649
$      
519,292
$      
5%
Performance Fees
286,870
         
949,800
         
231%
959,157
         
2,640,160
     
175%
Investment Income
51,502
           
76,303
           
48%
245,404
         
203,606
         
(17)%
Interest Income and Dividend Revenue
5,228
             
7,617
             
46%
17,846
           
24,372
           
37%
Total Revenues
484,182
         
1,155,688
     
139%
1,716,056
     
3,387,430
     
97%
Compensation
73,307
           
70,089
           
(4)%
249,224
         
273,229
         
10%
Performance Fee Compensation
58,623
           
217,602
         
271%
407,444
         
635,818
         
56%
Other Operating Expenses
33,006
           
38,755
           
17%
127,975
         
148,647
         
16%
Total Expenses
164,936
         
326,446
         
98%
784,643
         
1,057,694
     
35%
Economic Income
319,246
$      
829,242
$      
160%
931,413
$      
2,329,736
$   
150%
Total AUM
66,142,945
$ 
76,327,189
$ 
15%
66,142,945
$ 
76,327,189
$ 
15%
Fee-Earning AUM
41,150,728
$ 
49,342,211
$ 
20%
41,150,728
$ 
49,342,211
$ 
20%

Blackstone
5
Real Estate
24.4%
1Q’15 LTM increase in fund carrying value
$812 million
1Q’15 Realized Performance Fees
$92.8 billion
Total AUM up 14% YoY
Total Revenues and Economic Income of $915 million and $638 million for the quarter, up 68% and 99%,
respectively, driven by continued strong operating fundamentals across real estate asset classes.
Opportunistic Real Estate funds’
carrying value appreciated 8.2% for the quarter and 24.4% LTM.
Record realizations of $9.1 billion for the quarter, which generated Realized Performance Fees of $812 million, up
more than 4x from the prior year period, bringing total realizations to $26.9 billion LTM.
Raised a record $16.4 billion during the quarter, including $14.5 billion from the first and only institutional limited
partner
closing
for
the
eighth
global
opportunistic real
estate
fund,
and
$1.6
billion
in
BPP
funds.
Capital invested of $1.4 billion in the quarter; $3.9 billion committed not yet deployed as of quarter end.
Subsequent to quarter end, announced acquisition of GE Capital real estate assets, which will result in an estimated
$3 billion of capital invested across multiple vehicles, including inaugural investment of the eighth global
opportunistic real estate fund.
% Change
% Change
(Dollars in Thousands)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
163,993
$       
158,721
$       
(3)%
649,346
$      
683,260
$      
5%
Performance Fees
337,606
         
637,022
         
89%
2,138,847
     
2,317,202
     
8%
Investment Income
36,736
           
108,854
         
196%
369,459
         
322,283
         
(13)%
Interest Income and Dividend Revenue
6,110
             
9,997
             
64%
23,375
           
34,084
           
46%
Total Revenues
544,445
         
914,594
         
68%
3,181,027
     
3,356,829
     
6%
Compensation
80,233
           
84,834
           
6%
304,996
         
330,918
         
8%
Performance Fee Compensation
110,184
         
151,343
         
37%
717,043
         
674,558
         
(6)%
Other Operating Expenses
33,107
           
40,143
           
21%
121,036
         
153,119
         
27%
Total Expenses
223,524
         
276,320
         
24%
1,143,075
     
1,158,595
     
1%
Economic Income
320,921
$      
638,274
$      
99%
2,037,952
$   
2,198,234
$   
8%
Total AUM
81,333,562
$ 
92,785,658
$ 
14%
81,333,562
$ 
92,785,658
$ 
14%
Fee-Earning AUM
53,490,834
$ 
50,783,247
$ 
(5)%
53,490,834
$ 
50,783,247
$ 
(5)%

Blackstone
6
Hedge Fund Solutions
7.6%
1Q’15 LTM Composite Gross Return
$36.1 billion
Incentive Fee Eligible AUM at 1Q’15
$1.8 billion
1Q’15 Fee-Earning Net Inflows
Total Revenues and Economic Income of $185 million and $88 million for the quarter, respectively, driven by an
increase in Fee-Earning AUM from sustained growth in organic net inflows which resulted in a 15% increase in Fee
Revenues year-over-year.
Despite more difficult markets globally, the composite gross return was up 2.7% for the quarter and 7.6% LTM.
Fee-Earning net inflows of $1.8 billion during the quarter and $6.6 billion LTM, driven by significant investments
in customized and commingled strategies.
•
BAAM held an additional closing for its first permanent capital vehicle acquiring general partner interests in
hedge funds, bringing total commitments to $3.0 billion.
•
April 1 subscriptions of $839 million are not yet included in Fee-Earning AUM.
Total AUM reached a record $66.4 billion at the end of the quarter on growth of customized strategies and
continued diversification of the platform.
% Change
% Change
(Dollars in Thousands)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
112,144
$       
128,775
$       
15%
426,833
$      
497,022
$      
16%
Performance Fees
57,930
           
57,943
           
0%
204,173
         
139,663
         
(32)%
Investment Income (Loss)
21,251
           
(5,892)
            
n/m
34,793
           
(461)
               
n/m
Interest Income and Dividend Revenue
2,661
             
3,949
             
48%
9,050
             
12,402
           
37%
Total Revenues
193,986
         
184,775
         
(5)%
674,849
         
648,626
         
(4)%
Compensation
40,571
           
56,104
           
38%
143,173
         
147,191
         
3%
Performance Fee Compensation
20,032
           
19,121
           
(5)%
63,823
           
41,267
           
(35)%
Other Operating Expenses
19,480
           
21,206
           
9%
71,287
           
87,855
           
23%
Total Expenses
80,083
           
96,431
           
20%
278,283
         
276,313
         
(1)%
Economic Income
113,903
$      
88,344
$         
(22)%
396,566
$      
372,313
$      
(6)%
Total AUM
58,262,659
$ 
66,378,908
$ 
14%
58,262,659
$ 
66,378,908
$ 
14%
Fee-Earning AUM
55,571,357
$ 
64,114,498
$ 
15%
55,571,357
$ 
64,114,498
$ 
15%
The Composite Gross Return represents BAAM Principal Solutions (“BPS”) Composite and does not include BAAM’s individual investor solutions (i.e., liquid alternatives), long-only
equity, long-biased commodities, ventures (i.e., seeding and minority interests) and strategic opportunities (i.e., co-investments) platforms except where a BPS fund invests
directly into those platforms. BAAM’s advisory platforms and liquidating funds are also excluded. On a net of fees basis, the BPS Composite was up 2.5% for the quarter and 6.6%
for the LTM.

Blackstone
7
Credit
Investment Performance
Gross Returns
Fee Revenues up 17% year-over-year on record Fee-Earning AUM.
•
Significant year-over-year Fee-Earning AUM growth of 35% in both of the
Performing Credit and Hedge Fund Strategies.
Total AUM reached a record level of $75.0 billion driven by new product
launches and inflows to existing strategies highlighting continued investor
demand in credit focused products.
•
Launched 11 CLOs (six U.S. and five European) in the LTM with $6.2 billion
of Total AUM, including three during the first quarter of 2015.
Deployed
$990
million
of
capital
during
the
first
quarter
in
the
drawdown
funds, while returning $447 million in proceeds to fund limited partners.
75%
of
the
capital
deployed
in
the
first
quarter
was
deployed
in
Europe,
reflecting strong private debt market opportunities.
Performing Credit
1Q'15
1Q’15 LTM
Mezzanine
Strategies
2.7%
20.9%
Rescue Lending
Funds
(0.6)%
8.5%
Hedge Fund
Strategies
1.6%
0.9%
$75.0 billion
1Q’15 Total AUM
Long
Only
Funds
Alternative
Strategies
Funds
% Change
% Change
(Dollars in Thousands)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
104,407
$       
122,129
$       
17%
395,355
$      
465,610
$      
18%
Performance Fees
96,608
           
28,971
           
(70)%
429,211
         
189,574
         
(56)%
Investment Income
6,150
             
9,124
             
48%
19,778
           
17,383
           
(12)%
Interest Income and Dividend Revenue
5,861
             
5,651
             
(4)%
19,460
           
22,830
           
17%
Total Revenues
213,026
         
165,875
         
(22)%
863,804
         
695,397
         
(19)%
Compensation
50,752
           
49,877
           
(2)%
191,745
         
187,325
         
(2)%
Performance Fee Compensation
48,415
           
15,750
           
(67)%
222,231
         
100,422
         
(55)%
Other Operating Expenses
32,839
           
21,836
           
(34)%
108,817
         
79,521
           
(27)%
Total Expenses
132,006
         
87,463
           
(34)%
522,793
         
367,268
         
(30)%
Economic Income
81,020
$         
78,412
$         
(3)%
341,011
$      
328,129
$      
(4)%
Total AUM
66,006,417
$ 
74,959,534
$ 
14%
66,006,417
$ 
74,959,534
$ 
14%
Fee-Earning AUM
53,386,685
$ 
59,271,744
$ 
11%
53,386,685
$ 
59,271,744
$ 
11%
15%
11%
34%
Hedge Fund Strategies
Rescue Lending
15%
25%
CCS
CLOs
For Mezzanine and Rescue Lending Strategies, Investment Performance represents the combined returns of the fee-earning funds that have over $100 million of fair value as of 1Q’15 within each strategy. For
Hedge Fund Strategies, Investment Performance represents the weighted-average performance of the fee-earning funds that have over $100 million of fair value as of 1Q’15. Mezzanine Strategies net returns were
2.3% for 1Q’15 and 15.9% for 1Q’15 LTM, Rescue Lending Strategies net returns were (0.5)% for 1Q’15 and 6.9% for 1Q’15 LTM and Hedge Fund Strategies net returns were 1.1% for 1Q’15 and (0.8)% for 1Q’15
LTM. 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.

Blackstone
8
Financial Advisory
Total
Revenues
up
20%
for
the
quarter
and
6%
LTM,
primarily
from
increased
deal
activity. 
Blackstone Advisory Partners first quarter Fee Revenues grew year-over-year due to an increased number of closed
transactions.
While Restructuring Fee Revenues decreased in the first quarter compared to the prior year due to fewer deal
closings, the pipeline remains steady across a diverse group of industries, most notably in the energy sector.
Park Hill’s Fee Revenues were up significantly in the first quarter year-over-year, led by an increase in the number
of transactions in the private equity and real estate businesses.
Blackstone Capital Markets had a good start to the year, with Fee Revenues up slightly from the same period in the
prior year.
On October 10, 2014, Blackstone announced the tax-free spin-off of its financial advisory business (excluding
capital markets) to Blackstone unitholders. The business will combine with PJT Partners to create an independent,
world-class,
publicly
traded
advisory
firm,
which
is
expected
to
occur
in
the
second
half
of
2015.
% Change
% Change
(Dollars in Thousands)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Fee Revenues
69,850
$         
83,298
$         
19%
415,957
$      
436,176
$      
5%
Investment Income
828
                  
1,252
             
51%
67
                    
1,991
             
n/m
Interest Income and Dividend Revenue
2,502
             
3,237
             
29%
8,906
             
10,745
           
21%
Total Revenues
73,180
           
87,787
           
20%
424,930
         
448,912
         
6%
Compensation
61,682
           
68,934
           
12%
266,070
         
238,141
         
(10)%
Other Operating Expenses
21,342
           
21,342
           
0%
82,854
           
88,148
           
6%
Total Expenses
83,024
           
90,276
           
9%
348,924
         
326,289
         
(6)%
Economic Income
(9,844)
$         
(2,489)
$         
75%
76,006
$         
122,623
$      
61%
(Loss)

Blackstone
9
Total AUM by Segment
(Dollars in Billions)
$271.7
$310.5
$218.2
Fee-Earning AUM by Segment
(Dollars in Billions)
$203.6
$223.5
$170.9
Private Equity
Real Estate
Hedge Fund Solutions
Credit
Record
Fee-Earning
AUM
of
$223.5
billion
was
up
10%
over
the
same
period
last
year
as
$56.0
billion
of
gross
inflows outpaced $34.4 billion of realizations and outflows.
•
Fee-Earning AUM drove Base Management Fees up 12% to $2.0 billion LTM.
Total AUM increased 14% year-over-year to $310.5 billion driven by $77.2 billion from gross inflows and
$24.0
billion from consistently strong fund appreciation.
Assets Under Management
$36.8
$41.2
$49.3
$42.1
$53.5
$50.8
$45.6
$55.6
$64.1
$46.4
$53.4
$59.3
1Q'13
1Q'14
1Q'15
$52.5
$66.1
$76.3
$59.5
$81.3
$92.8
$48.2
$58.3
$66.4
$58.1
$66.0
$75.0
1Q'13
1Q'14
1Q'15

Blackstone
10
Additional Capital Detail
Undrawn capital (“Total Dry Powder”) of $64.5 billion, up 34% from the same period last year.
•
Blackstone
now
has
a
record
amount
of
Total
Dry
Powder
to
invest
across
its
global
businesses,
leveraging
unique diversity and broad fund mandates.
Performance Fee Eligible AUM reached $211.1 billion at the end of the quarter, up 14% year-over-year, despite
record realizations in Performance Fee Earning funds over the same period.
Net inflows and strong investment performance drove a 30% year-over-year increase in assets currently earning
Performance
Fees
to
$150.8
billion.
$64 billion 1Q’15 Total Dry Powder
$211 billion Performance Fee Eligible AUM
Uninvested
Not Earning
Fees
Currently
Earning Fees
Credit
Hedge
Fund
Solutions
Private
Equity
Real
Estate
32%
45%
5%
18%
$88.5
$116.0
$150.8
$24.6
$25.3
$13.9
$34.3
$44.5
$46.4
$147.5
$185.8
$211.1
1Q'13
1Q'14
1Q'15

Blackstone
Capital Invested
Blackstone continues to raise and deploy capital at an offsetting pace, maintaining its ability to make
opportunistic investments.
Invested $26.6 billion of capital over LTM, up 46% from $18.2 billion from the year ago period.
•
Invested $5.1 billion of capital in 1Q’15, up 5% from $4.8 billion year over year.
•
50% of capital invested over LTM was deployed outside of North America, reflecting Blackstone’s global fund
mandates which present an opportunity to leverage its diversity.
•
51%
of
capital
invested
over
LTM
was
by
products
that
did
not
exist
at
the
time
of
Blackstone’s
2007
IPO.
Capital Invested by Segment
(Dollars in Billions)
1Q’15 LTM Capital Invested by Region
(Dollars in Billions)
Global and
Other
Asia
North
America
Europe
$4.9
$11.4
$10.8
$11.2
$1.9
$3.2
$18.2
$26.6
1Q'14 LTM
1Q'15 LTM
Private Equity
Real Estate
Hedge Fund Solutions
Credit
50%
29%
9%
12%
11

At March 31, 2015, Blackstone had $3.2 billion in total cash, corporate treasury and liquid investments and
$10.5
billion of total net value, or $8.94 per DE unit, up 24% from $7.20 a year ago.
Long-term debt of $2.1 billion at quarter end contributed to a Debt to Adjusted EBITDA ratio of 0.50x for the first
quarter LTM period, well below the range of similarly rated companies.
Balance Sheet Highlights
1Q’15
Cash and Cash Equivalents
$
1,135
1,838
183
2,458
4,910
$
10,524
Outstanding Bonds (at par)
$
2,135
A+/A+
rated by S&P and Fitch
$1.1
billion
undrawn credit revolver with
May 2019 maturity
$3.2 billion
total cash, corporate treasury
and liquid investments
Cash and Investments
Net
Performance
Fees
Total Cash
and Liquids
Illiquids
$8.94
$7.20
$5.93
Treasury Cash
Management Strategies
Liquid Investments
Illiquid Investments
Net Accrued Performance
Fees
Total Net Value
Blackstone
12
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 $961 million, $1.2 billion, and $270 million, respectively, as of
March 31, 2015, $966 million, $1.4 billion, and $389 million, respectively, as of March 31, 2014 and $907 million, $1.1 billion, and $201 million, respectively, as of March 31, 2013. Cash and
Investments per unit amounts are calculated using period end DE Units Outstanding (see page 33, Unit Rollforward). 
(Dollars in Millions)
$2.00
$3.11
$4.17
$1.97
$2.42
$2.09
$1.96
$1.67
$2.68
1Q'13
1Q'14
1Q'15

Blackstone
13
Despite
Net
Realized
Performance
Fees
of
$2.5
billion
LTM,
asset
appreciation
across
all
investing
businesses
drove Net Accrued Performance Fees to a record $4.9 billion ($4.17/unit), up $1.4 billion from the same period
last year driven in large part by gains in the Private Equity segment.
Net Accrued Performance Fees grew at a 47% CAGR since the first quarter of 2013, primarily driven by continued
appreciation in Real Estate and Private Equity.
Performance Fees
Net Realized Performance Fees
(Dollars in Millions)
$956
$2,505
$605
Net Accrued Performance Fees
(Dollars in Millions)
$3,546
$4,910
$2,261
Private Equity
Real Estate
Credit
Hedge Fund Solutions
$4.9 billion
Record Net Accrued
Performance Fees
66%
$2.5 billion
Record 1Q’15 LTM Net Realized
Performance Fees
1Q'13 LTM
1Q'14 LTM
1Q'15 LTM
1Q'13
1Q'14
1Q'15
$545
$820
$2,027
$1,446
$2,424
$2,648
$210
$246
$195
$226
$201
$797
$155
$458
$1,483
$160
$156
$136
$146
Related to Publics/Pending Exits
Net
Accrued
Performance
Fees

GAAP Statement of Operations
% Change
% Change
(Dollars in Thousands, Except per Unit Data) (Unaudited)
1Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
vs. 1Q'14 LTM
Revenues
Management and Advisory Fees, Net
573,160
$         
603,498
$         
5%
2,285,012
$      
2,527,590
$      
11%
Performance Fees
Realized Carried Interest
333,623
           
1,206,425
        
262%
983,411
           
3,322,884
        
238%
Realized Incentive Fees
43,794
              
27,992
              
(36)%
484,891
           
233,203
           
(52)%
Unrealized Carried Interest
330,394
           
374,481
           
13%
2,311,057
        
1,749,011
        
(24)%
Unrealized Incentive Fees
64,233
              
61,860
              
(4)%
(64,314)
            
(32,122)
            
50%
Total Performance Fees
772,044
           
1,670,758
        
116%
3,715,045
        
5,272,976
        
42%
Investment Income
Realized
153,026
           
187,710
           
23%
299,317
           
558,419
           
87%
Unrealized
13,500
              
15,771
              
17%
518,934
           
12,536
              
(98)%
Total Investment Income
166,526
           
203,481
           
22%
818,251
           
570,955
           
(30)%
Interest and Dividend Revenue
14,069
              
21,499
              
53%
66,023
              
77,239
              
17%
Other
869
                    
(5,656)
              
n/m
9,032
                 
2,880
                 
(68)%
Total Revenues
1,526,668
        
2,493,580
        
63%
6,893,363
        
8,451,640
        
23%
Expenses
Compensation and Benefits
Compensation
485,351
           
559,559
           
15%
1,878,406
        
1,943,076
        
3%
Performance Fee Compensation
Realized Carried Interest
149,398
           
292,248
           
96%
317,162
           
958,493
           
202%
Realized Incentive Fees
23,635
              
12,227
              
(48)%
214,042
           
98,691
              
(54)%
Unrealized Carried Interest
40,730
              
74,380
              
83%
911,975
           
412,687
           
(55)%
Unrealized Incentive Fees
23,531
              
24,961
              
6%
(32,598)
            
(17,846)
            
45%
Total Compensation and Benefits
722,645
           
963,375
           
33%
3,288,987
        
3,395,101
        
3%
General, Administrative and Other
135,554
           
130,973
           
(3)%
500,690
           
544,882
           
9%
Interest Expense
24,667
              
31,370
              
27%
105,578
           
128,227
           
21%
Fund Expenses
4,985
                 
23,232
              
366%
24,235
              
48,745
              
101%
Total Expenses
887,851
           
1,148,950
        
29%
3,919,490
        
4,116,955
        
5%
Other Income
Reversal of Tax Receivable Agreement Liability
-
                     
-
                     
n/m
20,469
              
-
                     
(100)%
Net Gains from Fund Investment Activities
70,155
              
238,972
           
241%
384,609
           
526,671
           
37%
Income Before Provision for Taxes
708,972
$         
1,583,602
$      
123%
3,378,951
$      
4,861,356
$      
44%
Provision for Taxes
54,097
              
99,344
              
84%
258,746
           
336,420
           
30%
Net Income
654,875
$         
1,484,258
$      
127%
3,120,205
$      
4,524,936
$      
45%
Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities
45,792
             
56,358
             
23%
166,791
           
85,360
             
(49)%
Net Income Attributable to Non-Controlling Interests in Consolidated Entities
43,961
             
153,222
           
249%
251,970
           
444,331
           
76%
Net Income Attributable to Non-Controlling Interests in Blackstone Holdings
299,505
           
645,230
           
115%
1,432,260
        
2,046,825
        
43%
Net Income Attributable to The Blackstone Group L.P. ("BX")
265,617
$         
629,448
$         
137%
1,269,184
$      
1,948,420
$      
54%
Net Income per Common Unit, Basic
0.44
$                 
1.01
$                 
130%
n/a
n/a
n/m
Net Income per Common Unit, Diluted
0.44
$                 
1.00
$                 
127%
n/a
n/a
n/m
Blackstone
14

Appendix

Blackstone
Total Segments
16
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Management and Advisory Fees, Net
Base Management Fees
476,878
$          
496,570
$          
505,493
$          
508,588
$          
516,397
$          
1,808,938
$       
2,027,048
$       
Advisory Fees
69,963
114,914
84,131
151,837
84,238
413,457
435,120
Transaction and Other Fees, Net
59,910
49,196
90,885
46,446
37,073
228,913
223,600
Management Fee Offsets
(16,644)
(20,218)
(22,763)
(27,146)
(17,945)
(79,202)
(88,072)
Total Management and Advisory Fees, Net
590,107
640,462
657,746
679,725
619,763
2,372,106
2,597,696
Performance Fees
Realized Carried Interest
333,623
641,659
638,752
836,562
1,207,594
983,411
3,324,567
Realized Incentive Fees
53,837
39,291
36,840
131,777
29,670
503,443
237,578
Unrealized Carried Interest
330,288
660,712
222,026
495,935
373,852
2,310,951
1,752,525
Unrealized Incentive Fees
61,266
56,776
(6,531)
(140,936)
62,620
(66,417)
(28,071)
Total Performance Fees
779,014
1,398,438
891,087
1,323,338
1,673,736
3,731,388
5,286,599
Investment Income (Loss)
Realized
111,917
202,199
75,832
153,477
107,792
244,278
539,300
Unrealized
4,550
(26,228)
4,934
(55,053)
81,849
425,223
5,502
Total Investment Income
116,467
175,971
80,766
98,424
189,641
669,501
544,802
Interest Income and Dividend Revenue
22,362
22,094
23,585
28,303
30,451
78,637
104,433
Other
869
(6)
719
7,823
(4,872)
9,034
3,664
Total Revenues
1,508,819
2,236,959
1,653,903
2,137,613
2,508,719
6,860,666
8,537,194
Expenses
Compensation
306,545
323,015
324,426
199,525
329,838
1,155,208
1,176,804
Performance Fee Compensation
Realized Carried Interest
149,398
260,301
186,003
219,941
292,248
317,162
958,493
Realized Incentive Fees
23,635
18,509
19,029
48,926
12,227
214,042
98,691
Unrealized Carried Interest
40,690
114,336
164,132
59,879
74,380
911,935
412,727
Unrealized Incentive Fees
23,531
24,692
(9,002)
(58,497)
24,961
(32,598)
(17,846)
Total Compensation and Benefits
543,799
740,853
684,588
469,774
733,654
2,565,749
2,628,869
Other Operating Expenses
139,774
145,111
131,440
137,457
143,282
511,969
557,290
Total Expenses
683,573
885,964
816,028
607,231
876,936
3,077,718
3,186,159
Economic Income
825,246
$          
1,350,995
$       
837,875
$          
1,530,382
$       
1,631,783
$       
3,782,948
$       
5,351,035
$       
Economic Net Income
813,934
$          
1,325,963
$       
758,356
$          
1,446,733
$       
1,622,064
$       
3,699,503
$       
5,153,116
$       
Fee Related Earnings
175,055
$          
206,412
$          
236,820
$          
384,720
$          
180,624
$          
822,196
$          
1,008,576
$       
Distributable Earnings
478,646
$          
765,172
$          
686,086
$          
1,134,054
$       
1,240,207
$       
1,951,264
$       
3,825,519
$       
Total Assets Under Management
271,745,583
$   
278,917,713
$   
284,414,936
$   
290,381,069
$   
310,451,289
$   
271,745,583
$   
310,451,289
$   
Fee-Earning Assets Under Management
203,599,604
$   
209,913,760
$   
214,819,600
$   
216,691,799
$   
223,511,700
$   
203,599,604
$   
223,511,700
$   
Weighted Average Fee-Earning AUM
200,246,002
$   
209,251,436
$   
213,525,423
$   
215,196,253
$   
218,241,987
$   
188,952,701
$   
216,244,401
$   
LP Capital Invested
4,468,527
$       
5,426,511
$       
6,664,365
$       
7,810,098
$       
4,765,536
$       
16,863,768
$     
24,666,510
$     
Total Capital Invested
4,807,663
$       
5,858,210
$       
7,619,737
$       
8,090,350
$       
5,052,370
$       
18,217,475
$     
26,620,667
$     

Blackstone
Private Equity
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Management Fees, Net
Base Management Fees
98,584
$         
103,204
$       
108,236
$       
105,817
$       
108,383
$       
380,484
$       
425,640
$       
Transaction and Other Fees, Net
42,847
           
27,616
           
48,996
           
15,183
           
20,359
           
115,382
         
112,154
         
Management Fee Offsets
(1,713)
            
(4,246)
            
(5,837)
            
(7,350)
            
(4,949)
            
(6,916)
            
(22,382)
          
Total Management Fees, Net
139,718
         
126,574
         
151,395
         
113,650
         
123,793
         
488,950
         
515,412
         
Performance Fees
Realized Carried Interest
119,805
         
212,394
         
124,913
         
297,290
         
382,978
         
309,906
         
1,017,575
      
Unrealized Carried Interest
167,065
         
502,210
         
96,455
           
457,098
         
566,822
         
649,251
         
1,622,585
      
Total Performance Fees
286,870
         
714,604
         
221,368
         
754,388
         
949,800
         
959,157
         
2,640,160
      
Investment Income (Loss)
Realized
60,535
           
74,812
           
20,421
           
46,951
           
44,816
           
124,399
         
187,000
         
Unrealized
(9,033)
            
17,662
           
(12,754)
          
(19,789)
          
31,487
           
121,005
         
16,606
           
Total Investment Income
51,502
           
92,474
           
7,667
              
27,162
           
76,303
           
245,404
         
203,606
         
Interest Income and Dividend Revenue
5,228
              
4,666
              
5,346
              
6,743
              
7,617
              
17,846
           
24,372
           
Other
864
                  
564
                  
2,150
              
2,991
              
(1,825)
            
4,699
              
3,880
              
Total Revenues
484,182
         
938,882
         
387,926
         
904,934
         
1,155,688
      
1,716,056
      
3,387,430
      
Expenses
Compensation
73,307
           
73,038
           
79,007
           
51,095
           
70,089
           
249,224
         
273,229
         
Performance Fee Compensation
Realized Carried Interest
85,771
           
112,720
         
30,944
           
36,958
           
39,482
           
108,478
         
220,104
         
Unrealized Carried Interest
(27,148)
          
66,194
           
93,434
           
77,966
           
178,120
         
298,966
         
415,714
         
Total Compensation and Benefits
131,930
         
251,952
         
203,385
         
166,019
         
287,691
         
656,668
         
909,047
         
Other Operating Expenses
33,006
           
39,193
           
34,109
           
36,590
           
38,755
           
127,975
         
148,647
         
Total Expenses
164,936
         
291,145
         
237,494
         
202,609
         
326,446
         
784,643
         
1,057,694
      
Economic Income
319,246
$       
647,737
$       
150,432
$       
702,325
$       
829,242
$       
931,413
$       
2,329,736
$   
Total Assets Under Management
66,142,945
$ 
68,294,162
$ 
69,890,367
$ 
73,073,252
$ 
76,327,189
$ 
66,142,945
$ 
76,327,189
$ 
Fee-Earning Assets Under Management
41,150,728
$ 
42,888,756
$ 
43,817,741
$ 
43,890,167
$ 
49,342,211
$ 
41,150,728
$ 
49,342,211
$ 
Weighted Average Fee-Earning AUM
41,815,672
$ 
43,702,379
$ 
43,838,483
$ 
42,899,791
$ 
45,051,839
$ 
44,164,744
$ 
46,107,237
$ 
LP Capital Invested
2,029,019
$    
1,857,330
$    
2,277,861
$    
3,459,063
$    
2,374,599
$    
4,320,614
$    
9,968,853
$    
Total Capital Invested
2,271,273
$    
2,159,178
$    
3,172,660
$    
3,593,887
$    
2,517,769
$    
4,930,391
$    
11,443,494
$ 
17

Blackstone
Real Estate
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Management Fees, Net
Base Management Fees
159,336
$       
157,869
$       
155,089
$       
156,208
$       
152,348
$       
586,172
$       
621,514
$       
Transaction and Other Fees, Net
13,564
           
13,514
           
38,312
           
26,220
           
15,216
           
84,099
           
93,262
           
Management Fee Offsets
(9,224)
            
(7,702)
            
(8,977)
            
(8,540)
            
(4,866)
            
(24,759)
          
(30,085)
          
Total Management Fees, Net
163,676
         
163,681
         
184,424
         
173,888
         
162,698
         
645,512
         
684,691
         
Performance Fees
Realized Carried Interest
194,658
         
417,826
         
349,237
         
526,041
         
811,249
         
612,658
         
2,104,353
      
Realized Incentive Fees
(26)
                   
6,070
              
1,159
              
4,296
              
723
                  
42,744
           
12,248
           
Unrealized Carried Interest
140,237
         
119,461
         
187,175
         
77,173
           
(181,019)
        
1,511,861
      
202,790
         
Unrealized Incentive Fees
2,737
              
(3,483)
            
(374)
                 
(4,401)
            
6,069
              
(28,416)
          
(2,189)
            
Total Performance Fees
337,606
         
539,874
         
537,197
         
603,109
         
637,022
         
2,138,847
      
2,317,202
      
Investment Income (Loss)
Realized
31,357
           
122,664
         
49,173
           
105,901
         
71,344
           
74,182
           
349,082
         
Unrealized
5,379
              
(50,437)
          
14,492
           
(28,364)
          
37,510
           
295,277
         
(26,799)
          
Total Investment Income
36,736
           
72,227
           
63,665
           
77,537
           
108,854
         
369,459
         
322,283
         
Interest Income and Dividend Revenue
6,110
              
8,009
              
7,135
              
8,943
              
9,997
              
23,375
           
34,084
           
Other
317
                  
(218)
                 
976
                  
1,788
              
(3,977)
            
3,834
              
(1,431)
            
Total Revenues
544,445
         
783,573
         
793,397
         
865,265
         
914,594
         
3,181,027
      
3,356,829
      
Expenses
Compensation
80,233
           
85,582
           
90,586
           
69,916
           
84,834
           
304,996
         
330,918
         
Performance Fee Compensation
Realized Carried Interest
51,833
           
143,442
         
64,187
           
173,534
         
246,496
         
174,807
         
627,659
         
Realized Incentive Fees
(16)
                   
3,081
              
592
                  
2,323
              
356
                  
22,138
           
6,352
              
Unrealized Carried Interest
56,985
           
27,339
           
108,789
         
4,061
              
(98,084)
          
534,765
         
42,105
           
Unrealized Incentive Fees
1,382
              
(1,783)
            
(123)
                 
(2,227)
            
2,575
              
(14,667)
          
(1,558)
            
Total Compensation and Benefits
190,417
         
257,661
         
264,031
         
247,607
         
236,177
         
1,022,039
      
1,005,476
      
Other Operating Expenses
33,107
           
36,542
           
36,138
           
40,296
           
40,143
           
121,036
         
153,119
         
Total Expenses
223,524
         
294,203
         
300,169
         
287,903
         
276,320
         
1,143,075
      
1,158,595
      
Economic Income
320,921
$       
489,370
$       
493,228
$       
577,362
$       
638,274
$       
2,037,952
$   
2,198,234
$   
Total Assets Under Management
81,333,562
$ 
80,410,988
$ 
80,188,858
$ 
80,863,187
$ 
92,785,658
$ 
81,333,562
$ 
92,785,658
$ 
Fee-Earning Assets Under Management
53,490,834
$ 
52,823,975
$ 
52,308,175
$ 
52,563,068
$ 
50,783,247
$ 
53,490,834
$ 
50,783,247
$ 
Weighted Average Fee-Earning AUM
50,954,956
$ 
53,233,974
$ 
52,764,267
$ 
52,236,610
$ 
51,671,739
$ 
45,064,145
$ 
53,085,887
$ 
LP Capital Invested
1,692,232
$    
3,017,193
$    
3,046,867
$    
3,478,850
$    
1,443,163
$    
10,257,734
$ 
10,986,073
$ 
Total Capital Invested
1,746,460
$    
3,128,232
$    
3,071,425
$    
3,584,035
$    
1,405,603
$    
10,793,457
$ 
11,189,295
$ 
18

Blackstone
Hedge Fund Solutions
19
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Management Fees, Net
Base Management Fees
113,384
$      
123,008
$      
121,484
$      
125,105
$      
130,637
$      
429,914
$      
500,234
$      
Transaction and Other Fees, Net
93
126
161
189
25
712
501
Management Fee Offsets
(1,455)
(1,531)
(1,099)
(929)
(280)
(4,518)
(3,839)
Total Management Fees, Net
112,022
121,603
120,546
124,365
130,382
426,108
496,896
Performance Fees
Realized Incentive Fees
39,845
7,973
6,683
86,028
10,516
233,871
111,200
Unrealized Incentive Fees
18,085
30,556
25,473
(74,993)
47,427
(29,698)
28,463
Total Performance Fees
57,930
38,529
32,156
11,035
57,943
204,173
139,663
Investment Income (Loss)
Realized
16,820
2,394
2,693
(357)
(10,375)
43,581
(5,645)
Unrealized
4,431
1,057
(1,168)
812
4,483
(8,788)
5,184
Total Investment Income (Loss)
21,251
3,451
1,525
455
(5,892)
34,793
(461)
Interest Income and Dividend Revenue
2,661
2,340
2,724
3,389
3,949
9,050
12,402
Other
122
(203)
740
1,196
(1,607)
725
126
Total Revenues
193,986
165,720
157,691
140,440
184,775
674,849
648,626
Expenses
Compensation
40,571
43,341
41,940
5,806
56,104
143,173
147,191
Performance Fee Compensation
Realized Incentive Fees
13,271
2,918
2,312
23,950
3,470
74,042
32,650
Unrealized Incentive Fees
6,761
11,252
8,778
(27,064)
15,651
(10,219)
8,617
Total Compensation and Benefits
60,603
57,511
53,030
2,692
75,225
206,996
188,458
Other Operating Expenses
19,480
25,101
20,480
21,068
21,206
71,287
87,855
Total Expenses
80,083
82,612
73,510
23,760
96,431
278,283
276,313
Economic Income
113,903
$      
83,108
$        
84,181
$        
116,680
$      
88,344
$        
396,566
$      
372,313
$      
Total Assets Under Management
58,262,659
$
60,672,759
$
64,183,863
$
63,585,670
$
66,378,908
$
58,262,659
$
66,378,908
$
Fee-Earning Assets Under Management
55,571,357
$
58,084,020
$
62,037,082
$
61,417,558
$
64,114,498
$
55,571,357
$
64,114,498
$
Weighted Average Fee-Earning AUM
54,715,882
$
56,793,206
$
60,009,283
$
61,730,313
$
62,910,553
$
50,438,845
$
59,945,488
$
LP Capital Invested
167,170
$      
188,236
$      
473,233
$      
25,489
$        
133,351
$      
542,596
$      
820,309
$      
Total Capital Invested
202,674
$      
196,348
$      
487,398
$      
12,137
$        
139,223
$      
598,664
$      
835,106
$      

Blackstone
Credit
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Management Fees, Net
Base Management Fees
105,574
$       
112,489
$       
120,684
$       
121,458
$       
125,029
$       
412,368
$       
479,660
$       
Transaction and Other Fees, Net
3,344
              
7,064
              
3,025
              
4,728
              
1,457
              
27,556
           
16,274
           
Management Fee Offsets
(4,252)
            
(6,739)
            
(6,850)
            
(10,327)
          
(7,850)
            
(43,009)
          
(31,766)
          
Total Management Fees, Net
104,666
         
112,814
         
116,859
         
115,859
         
118,636
         
396,915
         
464,168
         
Performance Fees
Realized Carried Interest
19,160
           
11,439
           
164,602
         
13,231
           
13,367
           
60,847
           
202,639
         
Realized Incentive Fees
14,018
           
25,248
           
28,998
           
41,453
           
18,431
           
226,828
         
114,130
         
Unrealized Carried Interest
22,986
           
39,041
           
(61,604)
          
(38,336)
          
(11,951)
          
149,839
         
(72,850)
          
Unrealized Incentive Fees
40,444
           
29,703
           
(31,630)
          
(61,542)
          
9,124
              
(8,303)
            
(54,345)
          
Total Performance Fees
96,608
           
105,431
         
100,366
         
(45,194)
          
28,971
           
429,211
         
189,574
         
Investment Income (Loss)
Realized
3,071
              
2,223
              
3,040
              
1,020
              
2,237
              
3,841
              
8,520
              
Unrealized
3,079
              
4,521
              
4,892
              
(7,437)
            
6,887
              
15,937
           
8,863
              
Total Investment Income (Loss)
6,150
              
6,744
              
7,932
              
(6,417)
            
9,124
              
19,778
           
17,383
           
Interest Income and Dividend Revenue
5,861
              
4,892
              
5,968
              
6,319
              
5,651
              
19,460
           
22,830
           
Other
(259)
                 
11
                    
(3,619)
            
1,557
              
3,493
              
(1,560)
            
1,442
              
Total Revenues
213,026
         
229,892
         
227,506
         
72,124
           
165,875
         
863,804
         
695,397
         
Expenses
Compensation
50,752
           
51,310
           
54,877
           
31,261
           
49,877
           
191,745
         
187,325
         
Performance Fee Compensation
Realized Carried Interest
11,794
           
4,139
              
90,872
           
9,449
              
6,270
              
33,877
           
110,730
         
Realized Incentive Fees
10,380
           
12,510
           
16,125
           
22,653
           
8,401
              
117,862
         
59,689
           
Unrealized Carried Interest
10,853
           
20,803
           
(38,091)
          
(22,148)
          
(5,656)
            
78,204
           
(45,092)
          
Unrealized Incentive Fees
15,388
           
15,223
           
(17,657)
          
(29,206)
          
6,735
              
(7,712)
            
(24,905)
          
Total Compensation and Benefits
99,167
           
103,985
         
106,126
         
12,009
           
65,627
           
413,976
         
287,747
         
Other Operating Expenses
32,839
           
22,159
           
20,860
           
14,666
           
21,836
           
108,817
         
79,521
           
Total Expenses
132,006
         
126,144
         
126,986
         
26,675
           
87,463
           
522,793
         
367,268
         
Economic Income
81,020
$         
103,748
$       
100,520
$       
45,449
$         
78,412
$         
341,011
$       
328,129
$       
Total Assets Under Management
66,006,417
$ 
69,539,804
$ 
70,151,848
$ 
72,858,960
$ 
74,959,534
$ 
66,006,417
$ 
74,959,534
$ 
Fee-Earning Assets Under Management
53,386,685
$ 
56,117,009
$ 
56,656,602
$ 
58,821,006
$ 
59,271,744
$ 
53,386,685
$ 
59,271,744
$ 
Weighted Average Fee-Earning AUM
52,759,492
$ 
55,521,877
$ 
56,913,390
$ 
58,329,539
$ 
58,607,856
$ 
49,284,967
$ 
57,105,789
$ 
LP Capital Invested
580,106
$       
363,752
$       
866,404
$       
846,696
$       
814,423
$       
1,742,824
$    
2,891,275
$    
Total Capital Invested
587,256
$       
374,452
$       
888,254
$       
900,291
$       
989,775
$       
1,894,963
$    
3,152,772
$    
20

Blackstone
Financial Advisory
(Dollars in Thousands)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
1Q'14 LTM
1Q'15 LTM
Revenues
Advisory Fees
69,963
$         
114,914
$       
84,131
$         
151,837
$       
84,238
$         
413,457
$       
435,120
$       
Transaction and Other Fees, Net
62
                    
876
                  
391
                  
126
                  
16
                    
1,164
              
1,409
              
Total Advisory and Transaction Fees
70,025
           
115,790
         
84,522
           
151,963
         
84,254
           
414,621
         
436,529
         
Investment Income (Loss)
Realized
134
                  
106
                  
505
                  
(38)
                   
(230)
                 
(1,725)
            
343
                  
Unrealized
694
                  
969
                  
(528)
                 
(275)
                 
1,482
              
1,792
              
1,648
              
Total Investment Income (Loss)
828
                  
1,075
              
(23)
                   
(313)
                 
1,252
              
67
                    
1,991
              
Interest Income and Dividend Revenue
2,502
              
2,187
              
2,412
              
2,909
              
3,237
              
8,906
              
10,745
           
Other
(175)
                 
(160)
                 
472
                  
291
                  
(956)
                 
1,336
              
(353)
                 
Total Revenues
73,180
           
118,892
         
87,383
           
154,850
         
87,787
           
424,930
         
448,912
         
Expenses
Compensation
61,682
           
69,744
           
58,016
           
41,447
           
68,934
           
266,070
         
238,141
         
Total Compensation and Benefits
61,682
           
69,744
           
58,016
           
41,447
           
68,934
           
266,070
         
238,141
         
Other Operating Expenses
21,342
           
22,116
           
19,853
           
24,837
           
21,342
           
82,854
           
88,148
           
Total Expenses
83,024
           
91,860
           
77,869
           
66,284
           
90,276
           
348,924
         
326,289
         
Economic Income (Loss)
(9,844)
$          
27,032
$         
9,514
$           
88,566
$         
(2,489)
$          
76,006
$         
122,623
$       
21

Blackstone
Unitholder Distribution
Generated
$1.05
of
Distributable
Earnings
per
common
unit
during
the
quarter,
up
163%
year-over-year.
Declared a quarterly distribution of $0.89 per common unit to record holders as of April 27, 2015; payable on
May 4, 2015.
% Change
(Dollars in Thousands, Except per Unit Data)
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
vs. 1Q'14
1Q'14 LTM
1Q'15 LTM
Distributable Earnings (“DE”)
478,646
$     
765,172
$     
686,086
$     
1,134,054
$ 
1,240,207
$   
159%
1,951,264
$ 
3,825,519
$ 
Add: Other Payables Attributable to
   Common Unitholders
19,856
         
29,884
         
69,707
         
87,977
         
7,288
             
(63)%
124,151
       
194,856
       
DE before Certain Payables
498,502
       
795,056
       
755,793
       
1,222,031
    
1,247,495
      
150%
2,075,415
    
4,020,375
    
Percent to Common Unitholders
53%
53%
53%
53%
53%
52%
53%
DE before Certain Payables Attributable to
   Common Unitholders
261,980
       
420,236
       
400,587
       
650,899
       
663,608
         
153%
1,075,452
    
2,135,330
    
Less: Other Payables Attributable to
   Common Unitholders
(19,856)
        
(29,884)
        
(69,707)
        
(87,977)
        
(7,288)
            
63%
(124,151)
      
(194,856)
      
DE Attributable to Common Unitholders
242,124
       
390,352
       
330,880
       
562,922
       
656,320
         
171%
951,301
       
1,940,474
    
DE per Common Unit
0.40
$          
0.65
$          
0.54
$          
0.92
$          
1.05
$            
163%
1.61
$          
3.16
$          
Less: Retained Capital per Common Unit
(0.05)
$         
(0.10)
$         
(0.10)
$         
(0.14)
$         
(0.16)
$           
(220)%
(0.22)
$         
(0.50)
$         
Actual Distribution per Common Unit
0.35
$           
0.55
$           
0.44
$           
0.78
$           
0.89
$            
154%
1.39
$           
2.66
$           
Record Date
April 27, 2015
Payable Date
May 4, 2015
22
A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on page 34, 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 33, 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 $100.2 million for 1Q’15.

Blackstone
23
Capital raised in BPP Funds ($1.0 billion) and BREP Europe IV ($193 million).
Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other
decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of
foreign exchange rate fluctuations.
1Q’15 Fee-Earning AUM Rollforward
(Dollars in Millions)
1Q’15 LTM Fee-Earning AUM Rollforward
(Dollars in Millions)
Private
Equity
Real
Estate
Hedge
Fund
Solutions
Credit
Inflows:
Realizations:
Inflows:
Outflows:
Inflows:
Outflows:
Inflows:
Realizations:
Fee-Earning Assets Under Management
Private
Real
Hedge Fund
Equity
Estate
Solutions
1Q'14
41,151
$     
53,491
$     
55,571
$     
53,387
$     
203,600
$   
Inflows
14,021
       
9,674
          
12,725
       
19,630
       
56,050
       
Outflows
(1,767)
        
(237)
            
(6,022)
        
(5,016)
        
(13,042)
      
Realizations
(4,401)
        
(10,641)
      
(146)
            
(6,157)
        
(21,345)
      
Net Inflows (Outflows)
7,853
          
(1,204)
        
6,557
          
8,457
          
21,663
       
Market Activity
338
             
(1,504)
        
1,987
          
(2,572)
        
(1,751)
        
1Q'15
49,342
$     
50,783
$     
64,115
$     
59,272
$     
223,512
$   
YoY Increase (Decrease)
20%
(5)%
15%
11%
10%
Credit
Total
Blackstone Energy Partners II ($4.4 billion) and Blackstone Tactical Opportunities second vintage ($3.0 billion) investment
period commencement.
BCP IV, BCP V and Tactical Opportunities and public and strategic dispositions including Merlin, Catalent, Pinnacle,
Michaels Stores, Bayview Asset Management and Milestone; Strategic Partners  realizations.
BREP VI ($1.3 billion); BREP V ($353 million); BREDS ($513  million).
Customized solutions ($1.3 billion); commingled products ($369 million); specialized solutions ($936 million); individual
investor solutions ($476 million).
Driven by investors’ liquidity needs and certain strategic shifts in their programs.
CLOs ($1.0 billion U.S., $431 million European); BDCs ($765 million); Hedge Fund Strategies ($366 million);
Carry Funds ($762 million).
BDCs ($256 million); Long Only separately managed accounts ($1.2 billion); Hedge Fund Strategies ($227 million).
Private
Real
Hedge Fund
Equity
Estate
Solutions
4Q'14
43,890
$    
52,563
$    
61,418
$    
58,821
$    
216,692
$  
Inflows
7,647
1,444
3,070
3,924
16,085
Outflows
(985)
(33)
(1,266)
(1,972)
(4,256)
Realizations
(1,247)
(2,494)
(21)
(776)
(4,538)
Net Inflows (Outflows)
5,415
(1,083)
1,783
1,176
7,291
Market Activity
37
(697)
914
(725)
(471)
1Q'15
49,342
$    
50,783
$    
64,115
$    
59,272
$    
223,512
$  
QoQ Increase (Decrease)
12%
(3)%
4%
1%
3%
Credit
Total

Blackstone
24
1Q’15 Total AUM Rollforward
(Dollars in Millions)
1Q’15 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
4Q'14
73,073
$    
80,863
$    
63,586
$    
72,859
$    
290,381
$  
Inflows
2,870
18,362
3,083
6,124
30,439
Outflows
(25)
(169)
(1,275)
(2,273)
(3,742)
Realizations
(3,314)
(9,155)
(26)
(1,006)
(13,501)
Net Inflows (Outflows)
(469)
9,038
1,782
2,845
13,196
Market Activity
3,722
2,885
1,011
(744)
6,874
1Q'15
76,327
$    
92,786
$    
66,379
$    
74,960
$    
310,451
$  
QoQ Increase
4%
15%
4%
3%
7%
Credit
Total
Private
Real
Hedge Fund
Equity
Estate
Solutions
1Q'14
66,143
$    
81,334
$    
58,263
$    
66,006
$    
271,746
$  
Inflows
14,442
27,035
12,225
23,492
77,194
Outflows
(1,482)
(485)
(6,093)
(5,591)
(13,651)
Realizations
(14,011)
(27,499)
(167)
(7,167)
(48,844)
Net Inflows (Outflows)
(1,051)
(949)
5,965
10,734
14,699
Market Activity
11,234
12,401
2,151
(1,780)
24,006
1Q'15
76,327
$    
92,786
$    
66,379
$    
74,960
$    
310,451
$  
YoY Increase
15%
14%
14%
14%
14%
Credit
Total

Blackstone
25
Net Accrued Performance Fees
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
33,
Unit
Rollforward).
Blackstone had $4.9 billion of accrued performance fees, net of performance fee compensation and distributed
Realized Performance Fees, at the end of the quarter.
$4.9 billion
Net Accrued Performance Fees at 1Q’15
$4.17 per unit
Net Accrued Performance Fees at 1Q’15
38% increase
in Net Accrued Performance Fees since 1Q’14
Net Accrued Performance Fees
Change vs.
(Dollars in Millions, Except per Unit Data)
4Q'14
1Q'15
Per Unit
4Q'14
Private Equity
BCP IV Carried Interest
282
$                      
178
$                      
0.15
$                     
(104)
$                     
BCP V Carried Interest
1,050
1,479
1.26
429
BCP VI Carried Interest
233
270
0.23
37
BEP Carried Interest
63
64
0.05
1
Tactical Opportunities Carried Interest
24
24
0.02
-
Strategic Partners Carried Interest
4
11
0.01
7
Other
1
1
0.00
-
Total Private Equity
1,657
2,027
1.72
370
Real Estate
BREP IV Carried Interest
18
30
0.03
12
BREP V Carried Interest
602
652
0.55
50
BREP VI Carried Interest
1,113
1,109
0.94
(4)
BREP VII Carried Interest
605
527
0.45
(78)
BREP Int'l I Carried Interest
-
1
0.00
1
BREP Europe III Carried Interest
183
201
0.17
18
BREP Europe IV Carried Interest
37
56
0.05
19
BREP Asia Carried Interest
17
30
0.03
13
BPP Carried Interest
14
14
0.01
-
BREDS Carried Interest
14
17
0.01
3
BREDS Incentive Fees
2
4
0.00
2
Asia Platform Incentive Fees
7
7
0.01
-
Total Real Estate
2,612
2,648
2.25
36
Hedge Fund Solutions
Incentive Fees
76
40
0.03
(36)
Total Hedge Fund Solutions
76
40
0.03
(36)
Credit
Carried Interest
175
165
0.14
(10)
Incentive Fees
32
30
0.03
(2)
Total Credit
207
195
0.17
(12)
Total Blackstone
Carried Interest
4,435
4,829
4.10
394
Incentive Fees
117
81
0.07
(36)
Net Accrued Performance Fees
4,552
$                  
4,910
$                  
4.17
$                     
358
$                      
Memo: Net Realized Performance Fees
106
$                     
130
$                     
0.11
$                    
24
$                       

Blackstone
26
Investment Records as of March 31, 2015
Notes on next page.
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
-
3,256,818
2.5x
3,256,818
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 (June 2000 / Jun 2006)
2,137,330
199,298
244,522
1.1x
-
2,619,040
1.4x
2,863,562
1.3x
7%
6%
BCP IV (Nov 2002 / Dec 2005)
6,773,182
223,589
2,498,337
1.4x
36%
18,651,078
3.2x
21,149,415
2.8x
45%
36%
BCP V (Dec 2005 / Jan 2011)
21,032,061
1,311,618
18,361,782
1.8x
61%
19,291,650
1.9x
37,653,432
1.9x
11%
9%
BCP VI (Jan 2011 / Jan 2017)
15,182,144
5,980,880
11,696,775
1.3x
16%
1,548,216
1.8x
13,244,991
1.4x
50%
14%
BEP (Aug 2011 / Aug 2017)
2,437,287
372,131
2,713,049
1.4x
24%
535,189
2.0x
3,248,238
1.4x
56%
29%
BEP II (Feb 2015 / Feb 2021)
4,864,865
4,864,865
-
n/a
-
-
n/a
-
n/a
n/a
n/a
Total Corporate Private Equity
58,614,472
$  
12,952,381
$  
35,514,465
$   
1.6x
41%
56,828,417
$   
2.3x
92,342,882
$   
1.9x
22%
16%
Tactical Opportunities
8,858,500
5,128,542
4,232,095
1.1x
2%
980,853
1.4x
5,212,948
1.2x
27%
14%
Strategic Partners
16,693,422
4,553,811
6,549,585
1.6x
n/a
11,673,083
1.3x
18,222,668
1.4x
n/a
15%
Other Funds and Co-Invest
1,621,886
169,977
1,187,250
1.1x
55%
103,859
1.7x
1,291,109
1.1x
n/a
n/a
Total Private Equity
85,788,280
$  
22,804,711
$  
47,483,395
$   
1.5x
32%
69,586,212
$   
2.0x
117,069,607
$
1.8x
20%
16%
Real Estate
Dollar
Pre-BREP
140,714
$        
-
$                 
-
$                  
n/a
-
345,190
$        
2.5x
345,190
$        
2.5x
33%
33%
BREP I (Sep 1994 / Oct 1996)
380,708
-
-
n/a
-
1,327,708
2.8x
1,327,708
2.8x
40%
40%
BREP II (Oct 1996 / Mar 1999)
1,198,339
-
-
n/a
-
2,531,612
2.1x
2,531,612
2.1x
19%
19%
BREP III (Apr 1999 / Apr 2003)
1,522,708
-
-
n/a
-
3,328,504
2.4x
3,328,504
2.4x
21%
21%
BREP IV (Apr 2003 / Dec 2005)
2,198,694
-
1,053,344
0.9x
16%
3,619,482
2.2x
4,672,826
1.7x
48%
14%
BREP V (Dec 2005 / Feb 2007)
5,539,418
-
5,775,716
2.2x
11%
6,922,979
2.2x
12,698,695
2.2x
16%
12%
BREP VI (Feb 2007 / Aug 2011)
11,059,494
586,765
12,817,654
2.7x
62%
14,006,819
2.3x
26,824,473
2.5x
17%
15%
BREP VII (Aug 2011 / April 2015)
13,476,021
4,089,253
15,523,310
1.5x
2%
5,036,944
1.9x
20,560,254
1.6x
39%
26%
BREP VIII (April 2015 / October 2020)
14,556,000
14,556,000
-
n/a
n/a
-
n/a
-
n/a
n/a
n/a
Total Global Real Estate Funds
50,072,096
$  
19,232,018
$  
35,170,024
$   
1.9x
26%
37,119,238
$   
2.2x
72,289,262
$   
2.0x
23%
18%
Euro
BREP Int'l (Jan 2001 / Sep 2005)
824,172
€
-
€
9,364
€
0.5x
-
1,359,864
€
2.1x
1,369,228
€
2.1x
25%
23%
BREP Int'l II (Sep 2005 / Jun 2008)
1,629,748
54,198
1,681,289
1.5x
41%
567,022
1.8x
2,248,311
1.6x
12%
6%
BREP Europe III (Jun 2008 / Sep 2013)
3,204,714
525,539
4,307,781
1.8x
9%
1,149,471
2.5x
5,457,252
1.9x
32%
20%
BREP Europe IV (Sep 2013 / Mar 2019)
6,509,841
4,382,570
3,385,545
1.2x
-
247,017
1.3x
3,632,562
1.2x
40%
21%
Total Euro Real Estate Funds
12,168,475
€
4,962,307
€
9,383,979
€
1.5x
11%
3,323,374
€
2.1x
12,707,353
€
1.6x
23%
14%
BREP Co-Investment (f)
5,556,716
$     
-
$                 
7,834,007
$     
2.1x
67%
4,357,984
$     
2.3x
12,191,991
$   
2.2x
17%
18%
BREP Asia (Jun 2013 / Dec 2017)
5,076,119
3,111,174
2,347,061
1.2x
-
4,400
1.0x
2,351,461
1.2x
n/a
15%
Total Real Estate
76,577,457
$  
27,712,904
$  
57,810,842
$   
1.8x
27%
45,894,528
$   
2.2x
103,705,370
$
1.9x
22%
17%
BPP
5,063,701
$     
3,008,012
$     
2,449,050
$     
1.2x
-
-
$                  
n/a
2,449,050
$     
1.2x
n/a
n/a
BREDS (g)
7,142,206
$     
2,092,436
$     
2,713,830
$     
1.2x
-
3,947,173
$     
1.3x
6,661,003
$     
1.3x
13%
12%
Credit (h)
Mezzanine I (Jul 2007 / Jul 2012)
2,000,000
$     
134,024
$        
841,926
$        
1.7x
-
3,999,712
$     
1.6x
4,841,638
$     
1.6x
n/a
18%
Mezzanine II (Nov 2011 / Nov 2016)
4,120,000
2,590,229
2,588,856
1.2x
-
1,217,175
1.5x
3,806,031
1.3x
n/a
22%
Rescue Lending I (Sep 2009 / May 2013)
3,253,143
558,165
2,414,948
1.4x
-
3,397,415
1.4x
5,812,363
1.4x
n/a
14%
Rescue Lending II (Jun 2013 / Jun 2018)
5,125,000
3,797,864
1,727,755
1.2x
-
3,795
1.0x
1,731,550
1.2x
n/a
n/m
Total Credit
14,498,143
$  
7,080,282
$    
7,573,485
$     
1.3x
-
8,618,097
$     
1.5x
16,191,582
$   
1.4x
n/a
17%

Blackstone
27
Investment
Records
as
of
March
31,
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 March 31, 2015 IRR on total invested capital based
on realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest. Net IRRs for
BREP Europe IV, BREP Asia and BREDS II are calculated from commencement of their respective investment periods which,
being less than one year, are not annualized.
(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-investment’s realized proceeds and unrealized value, as applicable, after management fees, expenses
and Carried Interest.
(g)
Excludes Capital Trust drawdown funds.
(h)
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, 1.6x and 1.3x, 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
28
Reconciliation
of
GAAP
to
Non-GAAP
Measures
-
Quarters
Notes on page 30.
(Dollars in Thousands)
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
Net Income Attributable to The Blackstone Group L.P.
167,635
$    
211,148
$    
171,164
$    
621,255
$    
265,617
$    
517,016
$    
250,505
$    
551,451
$    
629,448
$    
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone
207,090
249,134
208,332
675,289
299,505
543,819
271,194
586,582
645,230
Net Income (Loss) Attributable to Non-Controlling Interests in Consolidated Entities
(9,452)
27,944
30,231
149,834
43,961
140,061
55,491
95,557
153,222
Net Income (Loss) Attributable to Redeemable Non-Controlling
Interests in Consolidated Entities
62,316
22,366
51,188
47,445
45,792
22,486
(23,328)
29,844
56,358
Net Income
427,589
$    
510,592
$    
460,915
$    
1,493,823
$
654,875
$    
1,223,382
$
553,862
$    
1,263,434
$
1,484,258
$
Provision for Taxes
50,993
56,082
57,477
91,090
54,097
83,282
79,108
74,686
99,344
Income Before Provision for Taxes
478,582
$    
566,674
$    
518,392
$    
1,584,913
$
708,972
$    
1,306,664
$
632,970
$    
1,338,120
$
1,583,602
$
IPO and Acquisition-Related Charges
(a)
186,962
178,706
190,525
166,514
177,024
178,568
209,240
291,550
231,862
Amortization of Intangibles
(b)
25,657
24,322
27,525
29,139
29,003
28,310
27,828
26,113
25,899
(Income) Associated with Non-Controlling Interests of Consolidated Entities
(c)
(52,864)
(50,310)
(81,419)
(197,279)
(89,753)
(162,547)
(32,163)
(125,401)
(209,580)
Economic Income
638,337
$    
719,392
$    
655,023
$    
1,583,287
$
825,246
$    
1,350,995
$
837,875
$    
1,530,382
$
1,631,783
$
Taxes
(d)
(10,031)
(16,152)
(14,792)
(41,189)
(11,312)
(25,032)
(79,519)
(83,649)
(9,719)
Economic Net Income
628,306
$    
703,240
$    
640,231
$    
1,542,098
$
813,934
$    
1,325,963
$
758,356
$    
1,446,733
$
1,622,064
$
Taxes
(d)
10,031
16,152
14,792
41,189
11,312
25,032
79,519
83,649
9,719
Performance Fee Adjustment
(e)
(603,999)
(719,219)
(544,936)
(1,688,219)
(779,014)
(1,398,438)
(891,087)
(1,323,338)
(1,673,736)
Investment (Income) Adjustment
(f)
(134,771)
(97,119)
(99,172)
(356,743)
(116,467)
(175,971)
(80,766)
(98,424)
(189,641)
Net Interest Loss
(g)
11,408
10,618
3,729
7,213
8,036
11,988
10,636
5,851
8,402
Performance Fee Compensation and Benefits Adjustment
(h)
239,895
286,832
168,393
718,062
237,254
417,838
360,162
270,249
403,816
Fee Related Earnings
150,870
$    
200,504
$    
183,037
$    
263,600
$    
175,055
$    
206,412
$    
236,820
$    
384,720
$    
180,624
$    
Net Realized Performance Fees
(i)
218,952
147,231
138,924
455,068
214,427
402,140
470,560
699,472
932,789
Realized Investment Income
(j)
38,110
54,586
11,492
66,283
111,917
202,199
75,832
153,477
107,792
Net Interest (Loss)
(g)
(11,408)
(10,618)
(3,729)
(7,213)
(8,036)
(11,988)
(10,636)
(5,851)
(8,402)
Taxes and Related Payables Including Payable Under Tax Receivable Agreement
(k)
(12,148)
(44,220)
(31,756)
(68,610)
(31,054)
(44,841)
(96,437)
(108,456)
(16,994)
Equity-Based Compensation
(l)
12,085
10,985
8,745
98,309
16,337
11,250
9,947
10,692
44,398
Distributable Earnings
396,461
$    
358,468
$    
306,713
$    
807,437
$    
478,646
$    
765,172
$    
686,086
$    
1,134,054
$
1,240,207
$
Interest Expense
26,069
25,960
25,268
26,607
30,398
34,082
34,221
34,154
38,853
Taxes and Related Payables Including Payable Under Tax Receivable Agreement
(k)
12,148
44,220
31,756
68,610
31,054
44,841
96,437
108,456
16,994
Depreciation and Amortization
8,643
9,116
8,956
8,726
10,373
7,170
7,557
7,200
6,927
Adjusted EBITDA
443,321
$    
437,764
$    
372,693
$    
911,380
$    
550,471
$    
851,265
$    
824,301
$    
1,283,864
$
1,302,981
$
Holdings

Blackstone
29
Notes on page 30.
Reconciliation
of
GAAP
to
Non-GAAP
Measures
-
Years
(Dollars in Thousands)
2010
2011
2012
2013
2014
1Q'14 LTM
1Q'15 LTM
Net Income (Loss) Attributable to The Blackstone Group L.P.
(370,028)
$  
(168,303)
$  
218,598
$    
1,171,202
$
1,584,589
$
1,269,184
$
1,948,420
$
Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings
(668,444)
(83,234)
407,727
1,339,845
1,701,100
1,432,260
2,046,825
Net Income (Loss)  Attributable to Non-Controlling Interests in Consolidated Entities
343,498
7,953
99,959
198,557
335,070
251,970
444,331
Net Income (Loss) Attributable to Redeemable Non-Controlling
Interests in Consolidated Entities
87,651
(24,869)
103,598
183,315
74,794
166,791
85,360
Net Income
(607,323)
$  
(268,453)
$  
829,882
$    
2,892,919
$
3,695,553
$
3,120,205
$
4,524,936
$
Provision for Taxes
84,669
345,711
185,023
255,642
291,173
258,746
336,420
Income Before Provision for Taxes
(522,654)
$  
77,258
$      
1,014,905
$
3,148,561
$
3,986,726
$
3,378,951
$
4,861,356
$
IPO and Acquisition-Related Charges
(a)
2,369,195
1,269,932
1,079,511
722,707
856,382
712,769
911,220
Amortization of Intangibles
(b)
220,865
150,148
106,643
111,254
109,989
108,150
(Income)  Loss Associated with Non-Controlling Interests of Consolidated Entities
(c)
(431,149)
16,916
(203,557)
(381,872)
(409,864)
(418,761)
(529,691)
Economic Income
1,580,770
$
1,584,971
$
2,041,007
$
3,596,039
$
4,544,498
$
3,782,948
$
5,351,035
$
Taxes
(d)
(28,932)
(45,763)
(45,708)
(82,164)
(199,512)
(83,445)
(197,919)
Economic Net Income
1,551,838
$
1,539,208
$
1,995,299
$
3,513,875
$
4,344,986
$
3,699,503
$
5,153,116
$
Taxes
(d)
28,932
45,763
45,708
82,164
199,512
83,445
197,919
Performance Fee Adjustment
(e)
(926,289)
(1,174,526)
(1,593,765)
(3,556,373)
(4,391,877)
(3,731,388)
(5,286,599)
Investment (Income) Adjustment
(f)
(548,549)
(185,264)
(286,244)
(687,805)
(471,628)
(669,501)
(544,802)
Net Interest Loss
(g)
570
14,357
22,522
32,968
36,511
29,596
36,877
Performance Fee Compensation and Benefits Adjustment
(h)
356,962
316,712
513,546
1,413,182
1,285,503
1,410,541
1,452,065
Fee Related Earnings
463,464
$    
556,250
$    
697,066
$    
798,011
$    
1,003,007
$
822,196
$    
1,008,576
$
Net Realized Performance Fees
(i)
233,347
128,409
392,411
960,175
1,786,599
955,650
2,504,961
Realized Investment Income
(j)
46,915
102,575
95,398
170,471
543,425
244,278
539,300
Net Interest (Loss)
(g)
(570)
(14,357)
(22,522)
(32,968)
(36,511)
(29,596)
(36,877)
Taxes and Related Payables Including Payable Under Tax Receivable Agreement
(k)
(48,867)
(74,696)
(132,325)
(156,734)
(280,788)
(175,640)
(266,728)
Equity-Based Compensation
(l)
68,900
84,626
90,040
130,124
48,226
134,376
76,287
Distributable Earnings
763,189
$    
782,807
$    
1,120,068
$
1,869,079
$
3,063,958
$
1,951,264
$
3,825,519
$
Interest Expense
36,666
53,201
69,152
103,904
132,855
108,233
141,310
Taxes and Related Payables Including Payable Under Tax Receivable Agreement
(k)
48,867
74,696
132,325
156,734
280,788
175,640
266,728
Depreciation and Amortization
26,629
32,764
42,235
35,441
32,300
37,171
28,854
Adjusted EBITDA
875,351
$    
943,468
$    
1,363,780
$
2,165,158
$
3,509,901
$
2,272,308
$
4,262,411
$
165,378

Blackstone
30
Reconciliation
of
GAAP
to
Non-GAAP
Measures
–
Notes
Note:
See page 34, Definitions and Distribution Policy.
(a)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for Transaction-Related Charges which
include principally equity-based compensation charges associated with Blackstone’s initial public offering and long-term retention
programs outside of annual deferred compensation and other corporate actions.
(b)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes amounts for the Amortization of Intangibles which
are associated with Blackstone’s initial public offering and other corporate actions.
(c)
This adjustment adds back to Income (Loss) Before Provision (Benefit) for Taxes the amount of (Income) Loss Associated with Non-
Controlling Interests of Consolidated Entities and includes the amount of Management Fee Revenues associated with Consolidated
CLO Entities.
(d)
Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes.
(e)
This adjustment removes from EI the total segment amount of Performance Fees.
(f)
This adjustment removes from EI the total segment amount of Investment Income (Loss).
(g)
This adjustment represents Interest Income and Dividend Revenue less Interest Expense.
(h)
This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related
to Performance Fees.
(i)
Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone’s profit
sharing plans related thereto.
(j)
Represents the adjustment for Blackstone’s 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.

Blackstone
31
Walkdown
of
Financial
Metrics
–
Calculation
of
Certain
Non-GAAP
Financial
Metric
–
Quarters
Unless otherwise noted, all amounts are the respective captions from the Total Segment information.
(a)
See pages 28-30, Reconciliation of GAAP to Non-GAAP Measures for this adjustment.
(b)
Represents equity-based award expense included in Economic Income.
(c)
Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related Payables.
(Dollars in Thousands)
1Q'13
2Q'13
3Q'13
4Q'13
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
Operating Expenses
114,444
120,152
122,872
129,171
139,774
145,111
131,440
137,457
143,282
Less: Interest Expense
(26,069)
(25,960)
(25,268)
(26,607)
(30,398)
(34,082)
(34,221)
(34,154)
(38,853)
Non-Interest Operating Expenses
88,375
$     
94,192
$     
97,604
$     
102,564
$   
109,376
$   
111,029
$   
97,219
$     
103,303
$   
104,429
$   
Realized Incentive Fees
24,727
74,867
31,238
343,501
53,837
39,291
36,840
131,777
29,670
Less: Realized Incentive Fee Compensation
(10,508)
(35,014)
(14,599)
(140,794)
(23,635)
(18,509)
(19,029)
(48,926)
(12,227)
Net Realized Incentive Fees
14,219
$     
39,853
$     
16,639
$     
202,707
$   
30,202
$     
20,782
$     
17,811
$     
82,851
$     
17,443
$     
Realized Carried Interest
294,170
183,288
182,654
283,846
333,623
641,659
638,752
836,562
1,207,594
Less: Realized Carried Interest Compensation
(89,437)
(75,910)
(60,369)
(31,485)
(149,398)
(260,301)
(186,003)
(219,941)
(292,248)
Net Realized Carried Interest
204,733
$   
107,378
$   
122,285
$   
252,361
$   
184,225
$   
381,358
$   
452,749
$   
616,621
$   
915,346
$   
Interest Income and Dividend Revenue
14,661
15,342
21,539
19,394
22,362
22,094
23,585
28,303
30,451
Less: Interest Expense
(26,069)
(25,960)
(25,268)
(26,607)
(30,398)
(34,082)
(34,221)
(34,154)
(38,853)
Net Interest Income (Loss)
(11,408)
$   
(10,618)
$   
(3,729)
$      
(7,213)
$      
(8,036)
$      
(11,988)
$   
(10,636)
$   
(5,851)
$      
(8,402)
$      
Equity-Based Compensation
(b)
12,085
$     
10,985
$     
8,745
$       
98,309
$     
16,337
$     
11,250
$     
9,947
$       
10,692
$     
44,398
$     
Taxes and Related Payables
(a)
(12,148)
$   
(44,220)
$   
(31,756)
$   
(68,610)
$   
(31,054)
$   
(44,841)
$   
(96,437)
$   
(108,456)
$ 
(16,994)
$   
Unrealized Incentive Fees
107,755
4,358
40,992
(173,033)
61,266
56,776
(6,531)
(140,936)
62,620
Less: Unrealized Incentive Fee Compensation
(44,478)
(3,084)
(11,084)
70,297
(23,531)
(24,692)
9,002
58,497
(24,961)
Net Unrealized Incentive Fees
63,277
$     
1,274
$       
29,908
$     
(102,736)
$ 
37,735
$     
32,084
$     
2,471
$       
(82,439)
$   
37,659
$     
Unrealized Carried Interest
177,347
456,706
290,052
1,233,905
330,288
660,712
222,026
495,935
373,852
Less: Unrealized Carried Interest Compensation
(95,472)
(172,824)
(82,341)
(616,080)
(40,690)
(114,336)
(164,132)
(59,879)
(74,380)
Net Unrealized Carried Interest
81,875
$     
283,882
$   
207,711
$   
617,825
$   
289,598
$   
546,376
$   
57,894
$     
436,056
$   
299,472
$   
Related Payables
(c)
2,117
$       
28,068
$     
16,964
$     
27,421
$     
19,742
$     
19,809
$     
16,918
$     
24,807
$     
7,275
$       

Blackstone
32
Walkdown
of
Financial
Metrics
–
Calculation
of
Certain
Non-GAAP
Financial
Metrics
–
Years
Unless otherwise noted, all amounts are the respective captions from the Total Segment information.
(a)
See pages 28-30, Reconciliation of GAAP to Non-GAAP Measures for this adjustment.
(b)
Represents equity-based award expense included in Economic Income.
(c)
Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related Payables.
(Dollars in Thousands)
2010
2011
2012
2013
2014
1Q'14 LTM
1Q'15 LTM
Operating Expenses
344,516
421,342
481,445
486,639
553,782
511,969
557,290
Less: Interest Expense
(36,666)
(53,201)
(69,152)
(103,904)
(132,855)
(108,233)
(141,310)
Non-Interest Operating Expenses
307,850
$    
368,141
$    
412,293
$    
382,735
$   
420,927
$   
403,736
$   
415,980
$   
Realized Incentive Fees
116,700
89,029
301,464
474,333
261,745
503,443
237,578
Less: Realized Incentive Fee Compensation
(57,600)
(55,912)
(140,042)
(200,915)
(110,099)
(214,042)
(98,691)
Net Realized Incentive Fees
59,100
$       
33,117
$       
161,422
$    
273,418
$   
151,646
$   
289,401
$   
138,887
$   
Realized Carried Interest
244,963
138,907
327,422
943,958
2,450,596
983,411
3,324,567
Less: Realized Carried Interest Compensation
(70,716)
(43,615)
(96,433)
(257,201)
(815,643)
(317,162)
(958,493)
Net Realized Carried Interest
174,247
$    
95,292
$       
230,989
$    
686,757
$   
1,634,953
$
666,249
$   
2,366,074
$
Interest Income and Dividend Revenue
46,630
70,936
96,344
78,637
104,433
Less: Interest Expense
(69,152)
(103,904)
(132,855)
(108,233)
(141,310)
Net Interest Income (Loss)
(570)
$       
(14,357)
$       
(22,522)
$     
(32,968)
$   
(36,511)
$   
(29,596)
$   
(36,877)
$   
Equity-Based Compensation
(b)
68,900
$       
84,626
$       
90,040
$       
130,124
$   
48,226
$     
134,376
$   
76,287
$     
Taxes and Related Payables
(a)
(48,867)
$     
(74,696)
$     
(132,325)
$   
(156,734)
$ 
(280,788)
$ 
(175,640)
$ 
(266,728)
$ 
Unrealized Incentive Fees
107,624
(24,928)
(29,311)
(19,928)
(29,425)
(66,417)
(28,071)
Less: Unrealized Incentive Fee Compensation
(63,306)
20,759
44,528
11,651
19,276
32,598
17,846
Net Unrealized Incentive Fees
44,318
$       
(4,169)
$        
15,217
$       
(8,277)
$      
(10,149)
$   
(33,819)
$   
(10,225)
$   
Unrealized Carried Interest
457,002
971,518
994,190
2,158,010
1,708,961
2,310,951
1,752,525
Less: Unrealized Carried Interest Compensation
(165,340)
(237,944)
(321,599)
(966,717)
(379,037)
(911,935)
(412,727)
Net Unrealized Carried Interest
291,662
$    
733,574
$    
672,591
$    
1,191,293
$
1,329,924
$
1,399,016
$
1,339,798
$
Related Payables
(c)
19,935
$       
28,933
$       
86,617
$       
74,570
$     
81,276
$     
92,195
$     
68,809
$     
36,096
(36,666)
38,844
(53,201)

Blackstone
33
Unit Rollforward
Weighted-Average
Economic
Net
Income
Adjusted
Units,
were
1.2
billion,
up
20.8
million
from
the
prior
quarter,
partially attributable to the buy out of partnership holdings interests, which is expected to be accretive to the
segments and earnings per unit in the future.
Common Unitholders receive tax benefits from deductions taken by Blackstone’s corporate tax paying subsidiaries and bear responsibility for the deduction from Distributable Earnings of
the Payable Under Tax Receivable Agreement and certain other tax-related payables. Distributable Earnings Units Outstanding excludes units which are not entitled to distributions.
1Q'14
2Q'14
3Q'14
4Q'14
1Q'15
Total
GAAP
Weighted-Average
Common
Units
Outstanding
-
Basic
601,527,299
606,690,740
611,684,213
615,492,620
625,276,969
Adjustments:
Weighted-Average Unvested Deferred Restricted Common Units
4,141,865
3,207,089
3,294,657
6,843,140
5,955,072
Total
GAAP
Weighted-Average
Common
Units
Outstanding
-
Diluted
605,669,164
609,897,829
614,978,870
622,335,760
631,232,041
Adjustments:
Weighted-Average Blackstone Holdings Partnership Units
549,327,240
544,158,132
539,856,777
536,973,966
548,837,150
Weighted-Average Economic Net Income Adjusted Units
1,154,996,404
1,154,055,961
1,154,835,647
1,159,309,726
1,180,069,191
Economic Net Income Adjusted Units, End of Period
1,154,889,678
1,154,840,023
1,155,075,985
1,159,954,181
1,192,529,251
Total Common Units Outstanding
599,372,943
603,270,771
607,590,602
611,480,457
625,985,058
Adjustments:
Blackstone Holdings Partnership Units
541,129,472
538,074,958
538,760,225
536,543,970
550,783,119
Distributable Earnings Units Outstanding
1,140,502,415
1,141,345,729
1,146,350,827
1,148,024,427
1,176,768,177

Blackstone
34
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:
Definitions and Distribution Policy
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 Blackstone’s initial public offering (“IPO”) and long-term retention programs outside of annual deferred compensation and other corporate
actions, including acquisitions. Transaction-related charges include equity-based compensation charges, the amortization of intangible assets and contingent
consideration associated with acquisitions. EI presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages.
Economic Net Income, or “ENI”, represents EI adjusted to include current period taxes. Taxes represent the current tax provision (benefit) calculated on
Income (Loss) Before Provision for Taxes.
Blackstone uses Fee Related Earnings, or “FRE”, as a key measure to highlight earnings from operations excluding:  (a) the income related to performance fees
and related carry plan costs, (b) income earned from Blackstone’s investments in the Blackstone Funds, and (c) realized and unrealized gains (losses) from
other investments except for such gains (losses) from Blackstone’s Treasury cash management strategies. 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,
investment income from Blackstone’s Treasury cash management strategies and interest income, 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 Blackstone’s segment reported results, is a supplemental measure to assess performance and amounts
available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings
partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a
component of ENI, is the sum across all segments of:  (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other Revenue, (d)
Realized Performance Fees, and (e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized
Performance Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and Related Payables Including the Payable Under Tax Receivable Agreement. DE
is reconciled to Blackstone’s Consolidated Statement of Operations. 
Blackstone uses Adjusted Earnings Before Interest, Taxes and Depreciation and Amortization, or “Adjusted EBITDA”, 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. Blackstone’s 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 Blackstone’s general partner to be necessary or appropriate to provide for the conduct of its business, to make
appropriate investments in its business and funds, to comply with applicable law, any of its debt instruments or other agreements, or to provide for future cash
requirements such as tax-related payments, clawback obligations and distributions to unitholders for any ensuing quarter. The amount to be distributed could
also be adjusted upward in any one quarter. All of the foregoing is subject to the qualification that the declaration and payment of any distributions are at the
sole discretion of Blackstone’s general partner and may change at any time, including, without limitation, to eliminate such distributions entirely.

Blackstone
35
Forward-Looking Statements
This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 which reflect
Blackstone’s current views with respect to, among other things,
Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as
“outlook,”
“indicator,”
“believes,”
“expects,”
“potential,”
“continues,”
“may,”
“will,”
“should,”
“seeks,”
“approximately,”
“predicts,”
“intends,”
“plans,”
“estimates,”
“anticipates”
or the negative version of these words or other comparable words. Such forward-
looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause
actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but
are not limited to those described under the section entitled “Risk Factors”
in its Annual Report on Form 10-K for the fiscal year
ended December 31, 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 SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements that are included in this presentation and in the filings.
Blackstone undertakes no obligation to publicly update or review
any forward-looking statement, whether as a result of new
information, future developments or otherwise.
This presentation does not constitute an offer of any Blackstone
Fund.
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