BX Blackstone Inc

 

 

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): January 28, 2016

 

 

The Blackstone Group L.P.

(Exact name of Registrant as specified in its charter)

 

 

 

Delaware		001-33551		20-8875684
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)
345 Park Avenue New York, New York				10154
(Address of principal executive offices)				(Zip Code)

(212) 583-5000

(Registrant’s telephone number, including area code)

NOT APPLICABLE

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

 

 

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

 

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

 

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

 

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

 

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

 

 

 

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Item 2.02 Results of Operations.

On January 28, 2016, The Blackstone Group L.P. issued a press release and detailed presentation announcing financial results for its fourth quarter and full year ended December 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 January 28, 2016.
99.2		Presentation of The Blackstone Group L.P. dated January 28, 2016.

 

i

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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: January 28, 2016

 

 

ii

Exhibit 99.1

 

Blackstone Reports Fourth Quarter and Full Year Results

New York, January 28, 2016: Blackstone (NYSE:BX) today reported its fourth quarter and full year 2015 results.

Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Despite challenging and volatile markets, Blackstone continues to deliver strong results for our limited partners and unitholders. Our investment funds largely outperformed global markets by a wide margin last year and we remained very active in terms of realizations, returning $43 billion to our fund investors and generating record distributable earnings. We simultaneously deployed $32 billion into new investments, a record pace which accelerated in the fourth quarter given the increasingly attractive investment backdrop. With the industry’s largest pool of dry powder capital of $80 billion, we remain extraordinarily well positioned to move with speed and certainty as investment opportunities arise.”

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

Distribution

Blackstone has declared a quarterly distribution of $0.61 per common unit to record holders of common units at the close of business on February 8, 2016. This distribution will be paid on February 16, 2016.

Quarterly Investor Call Details

Blackstone will host a conference call on January 28, 2016 at 11:00 a.m. ET to discuss fourth quarter and full year 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) 391-6747 (U.S. domestic) or +1 (617) 597-9291 (international), pass code 149 943 55#. For those unable to listen to the live broadcast, a replay will be available on www.blackstone.com or by dialing +1 (888) 286-8010 (U.S. domestic) or +1 (617) 801-6888 (international), pass code 775 564 51#.

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 $330 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

 

 

The Blackstone Group L.P.

345 Park Avenue

New York, New York 10154

T 212 583 5000

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Forward-Looking Statements

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 which reflect Blackstone’s current views with respect to, among other things, Blackstone’s operations and financial performance. You can identify these forward-looking statements by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Blackstone believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 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		Christine Anderson Blackstone Tel: +1 (212) 583-5182 Christine.Anderson@blackstone.com

 

2

Blackstone’s Fourth Quarter and Full Year 2015 Earnings January 28, 2016 Confidential Exhibit 99.2

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Blackstone’s Fourth Quarter and Full Year 2015 Highlights Economic Net Income (“ENI”) was $436 million ($0.37/unit) in the fourth quarter, on $877 million of Total Segment Revenues. ENI was $2.2 billion ($1.82/unit) for the year on $4.6 billion of Total Segment Revenues. Distributable Earnings (“DE”) was $878 million ($0.72/unit) in the fourth quarter, on $708 million of Realized Performance Fees. DE was a record $3.8 billion ($3.23/unit) for the year, up 25% from $3.1 billion in the prior year, on $3.4 billion of Realized Performance Fees, up 25% year-over-year. Fee Related Earnings (“FRE”) was $311 million in the fourth quarter, down 19% from $385 million in the prior year, reflecting in part the spin-off of Blackstone’s Advisory businesses. FRE was $936 million for the year, down 7% from $1.0 billion in the prior year. GAAP Net Income was $201 million ($0.23/unit diluted) for the quarter and $710 million ($1.04/unit diluted) for the year, net of certain non-cash IPO and transaction related expenses and net income attributable to non-controlling interests, primarily inside ownership. Total Assets Under Management (“AUM”) reached a record $336.4 billion through a combination of strong fundraising and organic expansion. Gross inflows were $15.5 billion in the fourth quarter, bringing full year inflows to $93.6 billion. Total AUM increased 16% year-over-year, despite returning $55.4 billion of capital to investors as asset growth and above-market appreciation outpaced increased realizations. Significant capital deployment of $15.7 billion in the fourth quarter and $32.4 billion in the year was achieved by leveraging Blackstone’s diverse platform to find opportunities globally. Blackstone declared a fourth quarter distribution of $0.61 per common unit payable on February 16, 2016; full year distributions were a record $2.73 per common unit, up 29% from last year. Blackstone

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Blackstone’s Fourth Quarter and Full Year 2015 Segment Earnings n/m = not meaningful. See page 12 for the GAAP Statement of Operations. % Change % Change (Dollars in Thousands, Except per Unit Data) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 687,548 $ 659,931 $ (4)% 2,577,445 $ 2,573,405 $ (0)% Performance Fees 1,323,338 194,026 (85)% 4,391,877 1,798,077 (59)% Investment Income (Loss) 98,424 (11,435) n/m 471,628 52,849 (89)% Interest Income and Dividend Revenue 28,303 34,665 22% 96,344 131,601 37% Total Revenues 2,137,613 877,187 (59)% 7,537,294 4,555,932 (40)% Total Expenses 607,231 471,345 (22)% 2,992,796 2,378,136 (21)% Taxes 83,649 (29,849) n/m 199,512 27,527 (86)% Economic Net Income ( “ ENI ” ) 1,446,733 $ 435,691 $ (70)% 4,344,986 $ 2,150,269 $ (51)% ENI per Unit 1.25 $ 0.37 $ (70)% 3.76 $ 1.82 $ (52)% GAAP Net Income 551,451 $ 200,870 $ (64)% 1,584,589 $ 709,789 $ (55)% Fee Related Earnings (“FRE”) 384,720 $ 310,879 $ (19)% 1,003,007 $ 935,611 $ (7)% Distributable Earnings (“DE”) 1,134,054 $ 878,027 $ (23)% 3,063,958 $ 3,843,688 $ 25% DE per Common Unit 0.92 $ 0.72 $ (22)% 2.51 $ 3.23 $ 29% Total AUM 290,381,069 $ 336,384,575 $ 16% 290,381,069 $ 336,384,575 $ 16% Fee-Earning AUM 216,691,799 $ 246,146,372 $ 14% 216,691,799 $ 246,146,372 $ 14% Blackstone

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Record Distributable Earnings, Realized Performance Fees, and AUM Total Segment Revenues and ENI (Dollars in Billions) Distributable Earnings and FRE (Dollars in Billions) Total and Fee-Earning AUM (Dollars in Billions) Net Realized Performance Fees (Dollars in Billions) Distributable Earnings Fee Related Earnings Total Revenues Economic Net Income $1.9 $1.1 $0.8 $0.8 $0.5 $3.1 $3.8 Total AUM Fee-Earning AUM Blackstone

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Private Equity 9.5% FY’15 increase in fund carrying value $1.5 billion FY’15 Realized Performance Fees $94.3 billion Total AUM up 29% YoY Private Equity had a strong year with $13.5 billion in realizations, $11.4 billion capital deployed and $29.6 billion capital raised. Private Equity carrying value increased 2.8% in the quarter driven by public portfolio appreciation. Overall appreciation of 9.5% for the year was significantly above declining broader market indices with the S&P down 0.7% for the same period. Realizations through public and strategic sales remained strong with $3.4 billion realized in the fourth quarter. Deployed $5.3 billion and committed an additional $1.2 billion of capital during the quarter across several new investments, along with continued investment in the existing portfolio. Raised $5.2 billion in the quarter across the segment, including the final close for the seventh flagship private equity fund with total third party commitments reaching $17.5 billion. See page 15 for information regarding historical segment results. % Change % Change (Dollars in Thousands) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 120,009 $ 157,183 $ 31% 560,885 $ 518,553 $ (8)% Performance Fees 754,388 161,061 (79)% 1,977,230 757,032 (62)% Investment Income 27,162 32,823 21% 178,805 73,311 (59)% Interest Income and Dividend Revenue 6,742 9,812 46% 21,993 33,218 51% Total Revenues 908,301 360,879 (60)% 2,738,913 1,382,114 (50)% Compensation 52,098 70,651 36% 280,499 280,248 (0)% Performance Fee Compensation 114,924 73,365 (36)% 476,839 246,750 (48)% Other Operating Expenses 36,752 53,900 47% 143,562 199,158 39% Total Expenses 203,774 197,916 (3)% 900,900 726,156 (19)% Economic Income 704,527 $ 162,963 $ (77)% 1,838,013 $ 655,958 $ (64)% Total AUM 73,073,252 $ 94,280,074 $ 29% 73,073,252 $ 94,280,074 $ 29% Fee-Earning AUM 43,890,167 $ 51,451,196 $ 17% 43,890,167 $ 51,451,196 $ 17% Blackstone

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Real Estate Unique scale and reach of global platform resulted in $20.8 billion of realizations, $21.5 billion capital invested or committed and $26.5 billion capital raised, all reaching record levels in 2015. Investment pace accelerated to $7.8 billion in the quarter, capitalizing on public market dislocation with four public-to-private transactions closed or committed in 2015. Opportunistic funds’ carrying value was up 1.6% during the quarter as operating fundamentals offset declines in public investment values; core+ funds’ carrying value was up 4.5% in the quarter. Appreciation in opportunistic and core+ funds were up 9.7% and 19.1% for the year, respectively. Sustained high level of realizations with $4.0 billion in the quarter despite public market dislocation. Over the past two years, Real Estate has returned over $40 billion of capital to its investors. Total AUM up 16% year-over-year to $93.9 billion and Fee-Earning AUM was up 28% year-over-year to $67.3 billion as capital raised across the platform more than offset record realization activity. Fundraising in the quarter included $1.3 billion for initial closing of third mezzanine debt fund and $2.4 billion for core+ funds. Total AUM for the core+ strategy reached $11.0 billion two years after launching the business. 9.7% FY’15 increase in fund carrying value $1.7 billion FY’15 Realized Performance Fees $93.9 billion Total AUM up 16% YoY % Change % Change (Dollars in Thousands) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 175,676 $ 248,252 $ 41% 688,532 $ 750,890 $ 9% Performance Fees 603,109 127,734 (79)% 2,017,786 992,146 (51)% Investment Income (Loss) 77,537 (27,341) n/m 250,165 3,693 (99)% Interest Income and Dividend Revenue 8,943 12,677 42% 30,197 43,990 46% Total Revenues 865,265 361,322 (58)% 2,986,680 1,790,719 (40)% Compensation 69,916 94,808 36% 326,317 358,381 10% Performance Fee Compensation 177,691 50,751 (71)% 633,399 305,185 (52)% Other Operating Expenses 40,296 53,636 33% 146,083 179,175 23% Total Expenses 287,903 199,195 (31)% 1,105,799 842,741 (24)% Economic Income 577,362 $ 162,127 $ (72)% 1,880,881 $ 947,978 $ (50)% Total AUM 80,863,187 $ 93,917,824 $ 16% 80,863,187 $ 93,917,824 $ 16% Fee-Earning AUM 52,563,068 $ 67,345,357 $ 28% 52,563,068 $ 67,345,357 $ 28%

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Hedge Fund Solutions 2.9% FY’15 Composite Gross Return $35.8 billion Incentive Fee Eligible AUM at 4Q’15 $2.0 billion 4Q’15 Fee-Earning Gross Inflows The composite gross return is based on the BAAM Principal Solutions (“BPS”) Composite, which does not include BAAM's individual investor solutions (liquid alternatives), long-only equity, long-biased commodities, ventures (seeding and minority interests), strategic opportunities (co-investments), Senfina (direct trading) and advisory (non-discretionary) platforms, except for investments by BPS funds directly into those platforms. BAAM-managed funds in liquidation are also excluded. On a net of fees basis, the BPS Composite was 0.2% for 4Q’15 and 2.1% for FY’15. The composite gross return was up 2.9% for the year, outperforming the relevant hedge fund indices as well as global markets and generally with less volatility, thereby demonstrating BAAM’s ability to provide downside protection in a difficult environment. The composite gross return was up 0.4% for the quarter. Fee-Earning gross inflows of $2.0 billion during the quarter and $9.7 billion for the year were driven by investments in customized and commingled strategies and individual investor solutions. Net inflows of $416 million during the quarter and $3.7 billion for the year reflect continued investor confidence in BAAM’s ability to identify strategic opportunities while managing risk. January 1 subscriptions of $827 million are not yet included in Fee-Earning AUM. Total AUM up 9% year-over-year to $69.1 billion driven by customized strategies growth and continued platform diversification. Total AUM for BAAM’s individual investor solutions platform reached $7.0 billion, up from $3.2 billion as of the fourth quarter of 2014. % Change % Change (Dollars in Thousands) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 125,561 $ 132,994 $ 6% 480,391 $ 525,074 $ 9% Performance Fees 11,035 (4,271) n/m 139,650 62,134 (56)% Investment Income (Loss) 455 (1,680) n/m 26,682 (14,176) n/m Interest Income and Dividend Revenue 3,389 5,219 54% 11,114 17,274 55% Total Revenues 140,440 132,262 (6)% 657,837 590,306 (10)% Compensation 5,806 33,131 471% 131,658 179,484 36% Performance Fee Compensation (3,114) (119) (96)% 42,178 25,066 (41)% Other Operating Expenses 21,068 24,220 15% 86,129 90,072 5% Total Expenses 23,760 57,232 141% 259,965 294,622 13% Economic Income 116,680 $ 75,030 $ (36)% 397,872 $ 295,684 $ (26)% Total AUM 63,585,670 $ 69,105,425 $ 9% 63,585,670 $ 69,105,425 $ 9% Fee-Earning AUM 61,417,558 $ 65,665,439 $ 7% 61,417,558 $ 65,665,439 $ 7%

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Credit Performance in all three alternative credit strategies was negatively impacted in the quarter by energy commodity pricing, turbulence in the credit market, and technical pressure caused by year-end selling. Gross composite returns for the quarter were down 7.7%, 11.2%, and 5.7% for Mezzanine, Rescue Lending, and Hedge Fund Strategies, respectively. Attractive investment opportunities, primarily in the energy sector and the European direct lending space, led to a record $2.6 billion of capital deployed during the quarter. Fee Revenues up 3% and 8% for the quarter and year, respectively, compared to prior year periods driven by Fee-Earning AUM growth. Fee-Earning AUM growth of 5% year-over-year driven by record capital deployment in drawdown funds of $4.1 billion, growth across the BDC platform, and new product launches including 8 CLOs raised (5 U.S. and 3 European). Continued realization activity across drawdown funds of $643 million and $2.6 billion in the quarter and year, respectively. For Mezzanine and Rescue Lending Strategies, Investment Performance represents the combined cash flows of the fee-earning funds exceeding $100 million of fair value at each respective quarter end. For Hedge Fund Strategies, Investment Performance represents the weighted-average composite of the fee-earning funds exceeding $100 million of fair value at each respective quarter end. Investment Performance excludes the Blackstone Funds that were contributed to GSO as part of Blackstone’s acquisition of GSO in March 2008. Mezzanine Strategies’ net returns were (6.4)% for 4Q'15 and (2.2)% for FY’15, Rescue Lending Strategies’ net returns were (8.5)% for 4Q'15 and (8.8)% for FY’15 and Hedge Fund Strategies’ net returns were (5.9)% for 4Q'15 and (5.8)% for FY’15. “BDC” = business development companies. Total AUM Composition as of 12/31/15 was: 13.3% Hedge Fund Strategies, 9.1% Rescue Lending, 39.2% Performing Credit, 23.9% CLOs and 14.5% Customized Credit Solutions. $4.1 billion FY’15 Total Capital Deployed $79.1 billion Total AUM up 9% YoY FY’15 Composite Gross Returns Mezzanine Strategies(1.4)% Rescue Lending Strategies(10.7)% Hedge Fund Strategies(4.4)% % Change % Change (Dollars in Thousands) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Fee Revenues 117,416 $ 121,502 $ 3% 447,888 $ 482,459 $ 8% Performance Fees (45,194) (90,498) 100% 257,211 (13,235) n/m Investment Income (Loss) (6,417) (15,237) 137% 14,409 (9,072) n/m Interest Income and Dividend Revenue 6,319 6,957 10% 23,040 24,599 7% Total Revenues 72,124 22,724 (68)% 742,548 484,751 (35)% Compensation 31,261 41,864 34% 188,200 190,189 1% Performance Fee Compensation (19,252) (48,215) 150% 133,087 (12,441) n/m Other Operating Expenses 14,666 23,353 59% 90,524 93,626 3% Total Expenses 26,675 17,002 (36)% 411,811 271,374 (34)% Economic Income 45,449 $ 5,722 $ (87)% 330,737 $ 213,377 $ (35)% Total AUM 72,858,960 $ 79,081,252 $ 9% 72,858,960 $ 79,081,252 $ 9% Fee-Earning AUM 58,821,006 $ 61,684,380 $ 5% 58,821,006 $ 61,684,380 $ 5%

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Total AUM by Segment (Dollars in Billions) $290.4 $336.4 $265.8 Fee-Earning AUM by Segment (Dollars in Billions) $216.7 $246.1 $198.0 Private Equity Real Estate Hedge Fund Solutions Credit Record Fee-Earning AUM of $246.1 billion was up 14% year-over-year as $68.6 billion of gross inflows significantly outpaced $37.2 billion of realizations and outflows. Total AUM increased 16% year-over-year to $336.4 billion driven by $93.6 billion from gross inflows and $7.8 billion from fund appreciation. Each segment had significant growth despite $55.4 billion of capital returned to investors during the year. Assets Under Management

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Additional Capital Detail Undrawn capital (“Total Dry Powder”) was $79.7 billion, up 73% year-over-year, driven by recent fundraises for the latest global private equity and real estate funds. Performance Fee Eligible AUM reached $249.6 billion at quarter end, up 22% year-over-year, despite significant realizations in the Real Estate and Private Equity segments. Consistently strong fundraising drove an 88% year-over-year increase in Performance Fee Eligible assets not yet invested to $80.0 billion. Uninvested Not Currently Earning Performance Fees Currently Earning Performance Fees Private Equity Real Estate Hedge Fund Solutions Credit $80 billion 4Q’15 Total Dry Powder $250 billion Performance Fee Eligible AUM $46 billion Not Currently Earning Management Fees $205.1 $249.6 $181.0 Credit Hedge Fund Solutions Real Estate Private Equity $46.0

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At December 31, 2015, Blackstone had $4.2 billion in total cash, corporate treasury and liquid investments and $9.5 billion of total net value, or $8.01 per DE unit. As of year-end, Blackstone had no net debt and maintained its A+/A+ ratings. Balance Sheet Highlights 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 $803 million, $945 million, and $262 million, respectively, as of December 31, 2015, $935 million, $1.2 billion, and $288 million, respectively, as of December 31, 2014 and $963 million, $1.5 billion, and $291 million, respectively, as of December 31, 2013. Cash and Investments per unit amounts are calculated using period end DE Units Outstanding (see page 30, Unit Rollforward). (Dollars in Millions) 4Q’15 Cash and Cash Equivalents $ 1,837 Treasury Cash Management Strategies 2,226 Liquid Investments 160 Illiquid Investments 2,010 Net Accrued Performance Fees 3,251 Total Net Value $ 9,484 Outstanding Bonds (at par) $ 2,813 A+/A+ rated by S&P and Fitch $1.1 billion undrawn credit revolver with May 2019 maturity $4.2 billion total cash, corporate treasury and liquid investments Cash and Investments Net Performance Fees Total Cash and Liquids Illiquids $8.01 $9.05 $7.29

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Net Accrued Performance Fees were $3.3 billion ($2.75/unit) despite high Net Realized Performance Fees of $2.5 billion during the year. Realized 55% of the $4.6 billion Net Accrued Performance Fees balance from one year prior. Net Realized Performance Fees grew 41% since the fourth quarter of 2014, primarily driven by increased realizations in Private Equity and Real Estate. Performance Fees Net Realized Performance Fees (Dollars in Millions) $1,787 $2,521 $960 Net Accrued Performance Fees (Dollars in Millions) $4,552 $3,251 $3,400 Private Equity Real Estate Credit Hedge Fund Solutions $3.3 billion Net Accrued Performance Fees 59% Net Accrued Performance Fees Related to Publics/Pending Exits $2.5 billion FY’15 Net Realized Performance Fees

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GAAP Statement of Operations % Change % Change (Dollars in Thousands, Except per Unit Data) (Unaudited) 4Q'14 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Revenues Management and Advisory Fees, Net 663,620 $ 648,009 $ (2)% 2,497,252 $ 2,542,505 $ 2% Performance Fees Realized Carried Interest 836,124 625,024 (25)% 2,450,082 3,205,290 31% Realized Incentive Fees 130,262 82,463 (37)% 249,005 193,238 (22)% Unrealized Carried Interest 491,743 (471,164) n/m 1,704,924 (1,595,174) n/m Unrealized Incentive Fees (142,458) (42,962) (70)% (29,749) (6,688) (78)% Total Performance Fees 1,315,671 193,361 (85)% 4,374,262 1,796,666 (59)% Investment Income (Loss) Realized 63,857 109,466 71% 523,735 555,171 6% Unrealized (52,489) (88,505) 69% 10,265 (350,529) n/m Total Investment Income 11,368 20,961 84% 534,000 204,642 (62)% Interest and Dividend Revenue 22,293 24,828 11% 69,809 94,957 36% Other 7,822 10,260 31% 9,405 7,782 (17)% Total Revenues 2,020,774 897,419 (56)% 7,484,728 4,646,552 (38)% Expenses Compensation and Benefits Compensation 357,783 299,958 (16)% 1,868,868 1,726,191 (8)% Performance Fee Compensation Realized Carried Interest 219,941 165,722 (25)% 815,643 793,801 (3)% Realized Incentive Fees 48,926 36,819 (25)% 110,099 85,945 (22)% Unrealized Carried Interest 59,879 (107,820) n/m 379,037 (312,696) n/m Unrealized Incentive Fees (58,497) (18,940) (68)% (19,276) (2,490) (87)% Total Compensation and Benefits 628,032 375,739 (40)% 3,154,371 2,290,751 (27)% General, Administrative and Other 149,402 139,607 (7)% 549,463 576,103 5% Interest Expense 35,395 38,878 10% 121,524 144,522 19% Fund Expenses 10,257 21,095 106% 30,498 97,940 221% Total Expenses 823,086 575,319 (30)% 3,855,856 3,109,316 (19)% Other Income Reversal of Tax Receivable Agreement Liability - 82,707 n/m - 82,707 n/m Net Gains from Fund Investment Activities 140,432 17,661 (87)% 357,854 176,364 (51)% Income Before Provision for Taxes 1,338,120 $ 422,468 $ (68)% 3,986,726 $ 1,796,307 $ (55)% Provision for Taxes 74,686 46,230 (38)% 291,173 190,398 (35)% Net Income 1,263,434 $ 376,238 $ (70)% 3,695,553 $ 1,605,909 $ (57)% Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities 29,844 2,358 (92)% 74,794 11,145 (85)% Net Income Attributable to Non-Controlling Interests in Consolidated Entities 95,557 22,276 (77)% 335,070 201,459 (40)% Net Income Attributable to Non-Controlling Interests in Blackstone Holdings 586,582 150,734 (74)% 1,701,100 683,516 (60)% Net Income Attributable to The Blackstone Group L.P. ("BX") 551,451 $ 200,870 $ (64)% 1,584,589 $ 709,789 $ (55)% Net Income per Common Unit, Basic 0.90 $ 0.31 $ (66)% 2.60 $ 1.12 $ (57)% Net Income per Common Unit, Diluted 0.89 $ 0.23 $ (74)% 2.58 $ 1.04 $ (60)%

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Appendix

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Total Segments (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management and Advisory Fees, Net Base Management Fees 508,588 $ 516,397 $ 516,492 $ 564,287 $ 599,407 $ 1,987,529 $ 2,196,583 $ Advisory Fees 151,837 84,238 76,998 146,153 742 420,845 308,131 Transaction and Other Fees, Net 46,446 37,073 11,728 32,403 72,481 246,437 153,685 Management Fee Offsets (27,146) (17,945) (18,434) (34,176) (22,939) (86,771) (93,494) Total Management and Advisory Fees, Net 679,725 619,763 586,784 708,667 649,691 2,568,040 2,564,905 Performance Fees Realized Carried Interest 836,562 1,207,594 937,483 435,189 625,610 2,450,596 3,205,876 Realized Incentive Fees 131,777 29,670 47,819 34,785 82,472 261,745 194,746 Unrealized Carried Interest 495,935 373,852 (441,949) (1,055,977) (471,222) 1,708,961 (1,595,296) Unrealized Incentive Fees (140,936) 62,620 26,311 (53,346) (42,834) (29,425) (7,249) Total Performance Fees 1,323,338 1,673,736 569,664 (639,349) 194,026 4,391,877 1,798,077 Investment Income (Loss) Realized 153,477 107,792 136,497 87,526 86,993 543,425 418,808 Unrealized (55,053) 81,849 (125,723) (223,657) (98,428) (71,797) (365,959) Total Investment Income (Loss) 98,424 189,641 10,774 (136,131) (11,435) 471,628 52,849 Interest Income and Dividend Revenue 28,303 30,451 31,026 35,459 34,665 96,344 131,601 Other 7,823 (4,872) 3,973 (841) 10,240 9,405 8,500 Total Revenues 2,137,613 2,508,719 1,202,221 (32,195) 877,187 7,537,294 4,555,932 Expenses Compensation 199,525 329,838 289,352 329,575 240,454 1,153,511 1,189,219 Performance Fee Compensation Realized Carried Interest 219,941 292,248 238,032 97,799 165,721 815,643 793,800 Realized Incentive Fees 48,926 12,227 21,837 15,061 36,821 110,099 85,946 Unrealized Carried Interest 59,879 74,380 (50,559) (228,697) (107,820) 379,037 (312,696) Unrealized Incentive Fees (58,497) 24,961 6,131 (14,642) (18,940) (19,276) (2,490) Total Compensation and Benefits 469,774 733,654 504,793 199,096 316,236 2,439,014 1,753,779 Other Operating Expenses 137,457 143,282 168,401 157,565 155,109 553,782 624,357 Total Expenses 607,231 876,936 673,194 356,661 471,345 2,992,796 2,378,136 Economic Income (Loss) 1,530,382 $ 1,631,783 $ 529,027 $ (388,856) $ 405,842 $ 4,544,498 $ 2,177,796 $ Economic Net Income (Loss) 1,446,733 $ 1,622,064 $ 508,440 $ (415,926) $ 435,691 $ 4,344,986 $ 2,150,269 $ Fee Related Earnings 384,720 $ 180,624 $ 178,441 $ 265,667 $ 310,879 $ 1,003,007 $ 935,611 $ Distributable Earnings 1,134,054 $ 1,240,207 $ 1,033,920 $ 691,534 $ 878,027 $ 3,063,958 $ 3,843,688 $ Total Assets Under Management 290,381,069 $ 310,451,289 $ 332,723,546 $ 333,925,521 $ 336,384,575 $ 290,381,069 $ 336,384,575 $ Fee-Earning Assets Under Management 216,691,799 $ 223,511,700 $ 239,342,214 $ 240,939,356 $ 246,146,372 $ 216,691,799 $ 246,146,372 $ Weighted Average Fee-Earning AUM 215,196,253 $ 218,241,987 $ 237,576,488 $ 239,786,680 $ 242,942,380 $ 212,324,209 $ 240,378,333 $ LP Capital Invested 7,810,098 $ 4,765,536 $ 4,814,362 $ 6,145,446 $ 14,779,702 $ 24,369,501 $ 30,505,046 $ Total Capital Invested 8,090,350 $ 5,052,370 $ 5,048,058 $ 6,507,371 $ 15,747,511 $ 26,375,960 $ 32,355,310 $

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Private Equity Note: As a result of the spin-off on October 1, 2015 of Blackstone’s Financial Advisory business, which did not include Blackstone's capital markets services business, the results of Blackstone’s capital markets services business were reclassified from the Financial Advisory segment to the Private Equity segment. All prior periods have been recast to reflect this reclassification. Please see Blackstone’s 4Q’15 Supplemental Financial Data available at www.blackstone.com for additional historical periods. (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 105,817 $ 108,383 $ 121,918 $ 128,452 $ 143,887 $ 415,841 $ 502,640 $ Advisory Fees 3,369 2,429 4,843 2,547 742 21,903 10,561 Transaction and Other Fees, Net 15,182 20,359 (11,842) 9,359 18,382 135,718 36,258 Management Fee Offsets (7,350) (4,949) (9,028) (12,262) (10,521) (19,146) (36,760) Total Management Fees, Net 117,018 126,222 105,891 128,096 152,490 554,316 512,699 Performance Fees Realized Carried Interest 297,290 382,978 546,575 214,532 330,902 754,402 1,474,987 Unrealized Carried Interest 457,098 566,822 (305,573) (809,363) (169,841) 1,222,828 (717,955) Total Performance Fees 754,388 949,800 241,002 (594,831) 161,061 1,977,230 757,032 Investment Income (Loss) Realized 46,951 44,816 50,258 46,917 47,658 202,719 189,649 Unrealized (19,789) 31,487 (22,301) (110,689) (14,835) (23,914) (116,338) Total Investment Income (Loss) 27,162 76,303 27,957 (63,772) 32,823 178,805 73,311 Interest Income and Dividend Revenue 6,742 7,618 7,669 8,119 9,812 21,993 33,218 Other 2,991 (1,825) 2,515 471 4,693 6,569 5,854 Total Revenues 908,301 1,158,118 385,034 (521,917) 360,879 2,738,913 1,382,114 Expenses Compensation 52,098 71,072 68,106 70,419 70,651 280,499 280,248 Performance Fee Compensation Realized Carried Interest 36,958 39,482 106,502 16,303 94,635 266,393 256,922 Unrealized Carried Interest 77,966 178,120 (25,574) (141,448) (21,270) 210,446 (10,172) Total Compensation and Benefits 167,022 288,674 149,034 (54,726) 144,016 757,338 526,998 Other Operating Expenses 36,752 38,875 62,571 43,812 53,900 143,562 199,158 Total Expenses 203,774 327,549 211,605 (10,914) 197,916 900,900 726,156 Economic Income (Loss) 704,527 $ 830,569 $ 173,429 $ (511,003) $ 162,963 $ 1,838,013 $ 655,958 $ Total Assets Under Management 73,073,252 $ 76,327,189 $ 92,026,337 $ 91,490,669 $ 94,280,074 $ 73,073,252 $ 94,280,074 $ Fee-Earning Assets Under Management 43,890,167 $ 49,342,211 $ 49,537,189 $ 50,560,404 $ 51,451,196 $ 43,890,167 $ 51,451,196 $ Weighted Average Fee-Earning AUM 42,899,791 $ 45,051,839 $ 49,925,744 $ 50,268,174 $ 51,185,170 $ 44,178,572 $ 51,008,387 $ LP Capital Invested 3,459,063 $ 2,374,599 $ 1,800,854 $ 1,535,702 $ 4,508,023 $ 9,623,273 $ 10,219,178 $ Total Capital Invested 3,593,887 $ 2,517,769 $ 1,949,748 $ 1,677,876 $ 5,270,078 $ 11,196,998 $ 11,415,471 $

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Real Estate (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 156,208 $ 152,348 $ 140,743 $ 175,710 $ 199,774 $ 628,502 $ 668,575 $ Transaction and Other Fees, Net 26,220 15,216 21,510 21,390 52,461 91,610 110,577 Management Fee Offsets (8,540) (4,866) (5,428) (10,147) (6,399) (34,443) (26,840) Total Management Fees, Net 173,888 162,698 156,825 186,953 245,836 685,669 752,312 Performance Fees Realized Carried Interest 526,041 811,249 363,983 169,051 290,450 1,487,762 1,634,733 Realized Incentive Fees 4,296 723 1,220 3,879 11,331 11,499 17,153 Unrealized Carried Interest 77,173 (181,019) (188,608) (128,854) (182,061) 524,046 (680,542) Unrealized Incentive Fees (4,401) 6,069 3,935 2,784 8,014 (5,521) 20,802 Total Performance Fees 603,109 637,022 180,530 46,860 127,734 2,017,786 992,146 Investment Income (Loss) Realized 105,901 71,344 85,432 39,821 38,985 309,095 235,582 Unrealized (28,364) 37,510 (107,691) (95,382) (66,326) (58,930) (231,889) Total Investment Income (Loss) 77,537 108,854 (22,259) (55,561) (27,341) 250,165 3,693 Interest Income and Dividend Revenue 8,943 9,997 10,259 11,057 12,677 30,197 43,990 Other 1,788 (3,977) 1,077 (938) 2,416 2,863 (1,422) Total Revenues 865,265 914,594 326,432 188,371 361,322 2,986,680 1,790,719 Expenses Compensation 69,916 84,834 79,484 99,255 94,808 326,317 358,381 Performance Fee Compensation Realized Carried Interest 173,534 246,496 116,168 52,546 68,827 432,996 484,037 Realized Incentive Fees 2,323 356 671 1,838 5,813 5,980 8,678 Unrealized Carried Interest 4,061 (98,084) (50,559) (23,018) (24,686) 197,174 (196,347) Unrealized Incentive Fees (2,227) 2,575 230 5,215 797 (2,751) 8,817 Total Compensation and Benefits 247,607 236,177 145,994 135,836 145,559 959,716 663,566 Other Operating Expenses 40,296 40,143 43,346 42,050 53,636 146,083 179,175 Total Expenses 287,903 276,320 189,340 177,886 199,195 1,105,799 842,741 Economic Income 577,362 $ 638,274 $ 137,092 $ 10,485 $ 162,127 $ 1,880,881 $ 947,978 $ Total Assets Under Management 80,863,187 $ 92,785,658 $ 91,578,634 $ 93,187,556 $ 93,917,824 $ 80,863,187 $ 93,917,824 $ Fee-Earning Assets Under Management 52,563,068 $ 50,783,247 $ 62,683,857 $ 64,858,622 $ 67,345,357 $ 52,563,068 $ 67,345,357 $ Weighted Average Fee-Earning AUM 52,236,610 $ 51,671,739 $ 60,939,868 $ 63,492,663 $ 65,356,567 $ 53,589,873 $ 63,722,064 $ LP Capital Invested 3,478,850 $ 1,443,163 $ 2,963,609 $ 4,118,952 $ 7,733,638 $ 11,235,142 $ 16,259,362 $ Total Capital Invested 3,584,035 $ 1,405,603 $ 3,035,837 $ 4,326,151 $ 7,835,881 $ 11,530,152 $ 16,603,472 $

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Hedge Fund Solutions (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 125,105 $ 130,637 $ 130,216 $ 133,592 $ 129,941 $ 482,981 $ 524,386 $ Transaction and Other Fees, Net 189 25 - 219 73 569 317 Management Fee Offsets (929) (280) (608) (507) 1,566 (5,014) 171 Total Management Fees, Net 124,365 130,382 129,608 133,304 131,580 478,536 524,874 Performance Fees Realized Incentive Fees 86,028 10,516 16,915 2,783 37,983 140,529 68,197 Unrealized Carried Interest - - 8,014 (5,394) (599) - 2,021 Unrealized Incentive Fees (74,993) 47,427 15,855 (29,711) (41,655) (879) (8,084) Total Performance Fees 11,035 57,943 40,784 (32,322) (4,271) 139,650 62,134 Investment Income (Loss) Realized (357) (10,375) (1,757) (468) (141) 21,550 (12,741) Unrealized 812 4,483 2,032 (6,411) (1,539) 5,132 (1,435) Total Investment Income (Loss) 455 (5,892) 275 (6,879) (1,680) 26,682 (14,176) Interest Income and Dividend Revenue 3,389 3,949 3,970 4,136 5,219 11,114 17,274 Other 1,196 (1,607) 459 (66) 1,414 1,855 200 Total Revenues 140,440 184,775 175,096 98,173 132,262 657,837 590,306 Expenses Compensation 5,806 56,104 45,841 44,408 33,131 131,658 179,484 Performance Fee Compensation Realized Incentive Fees 23,950 3,470 8,711 (436) 15,410 42,451 27,155 Unrealized Carried Interest - - 4,077 (3,041) (213) - 823 Unrealized Incentive Fees (27,064) 15,651 3,764 (7,011) (15,316) (273) (2,912) Total Compensation and Benefits 2,692 75,225 62,393 33,920 33,012 173,836 204,550 Other Operating Expenses 21,068 21,206 20,499 24,147 24,220 86,129 90,072 Total Expenses 23,760 96,431 82,892 58,067 57,232 259,965 294,622 Economic Income 116,680 $ 88,344 $ 92,204 $ 40,106 $ 75,030 $ 397,872 $ 295,684 $ Total Assets Under Management 63,585,670 $ 66,378,908 $ 67,829,866 $ 68,405,948 $ 69,105,425 $ 63,585,670 $ 69,105,425 $ Fee-Earning Assets Under Management 61,417,558 $ 64,114,498 $ 65,512,170 $ 65,182,338 $ 65,665,439 $ 61,417,558 $ 65,665,439 $ Weighted Average Fee-Earning AUM 61,730,313 $ 62,910,553 $ 65,453,883 $ 65,782,066 $ 65,802,335 $ 58,548,866 $ 65,203,649 $ LP Capital Invested 25,489 $ 133,351 $ 2,131 $ 66,427 $ 41,332 $ 854,128 $ 243,241 $ Total Capital Invested 12,137 $ 139,223 $ 2,136 $ 71,132 $ 39,877 $ 898,557 $ 252,368 $

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Credit (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Management Fees, Net Base Management Fees 121,458 $ 125,029 $ 123,615 $ 126,533 $ 125,805 $ 460,205 $ 500,982 $ Transaction and Other Fees, Net 4,728 1,457 2,060 1,289 1,565 18,161 6,371 Management Fee Offsets (10,327) (7,850) (3,370) (11,260) (7,585) (28,168) (30,065) Total Management Fees, Net 115,859 118,636 122,305 116,562 119,785 450,198 477,288 Performance Fees Realized Carried Interest 13,231 13,367 26,925 51,606 4,258 208,432 96,156 Realized Incentive Fees 41,453 18,431 29,684 28,123 33,158 109,717 109,396 Unrealized Carried Interest (38,336) (11,951) 44,218 (112,366) (118,721) (37,913) (198,820) Unrealized Incentive Fees (61,542) 9,124 6,521 (26,419) (9,193) (23,025) (19,967) Total Performance Fees (45,194) 28,971 107,348 (59,056) (90,498) 257,211 (13,235) Investment Income (Loss) Realized 1,020 2,237 2,723 1,735 491 9,354 7,186 Unrealized (7,437) 6,887 2,760 (10,177) (15,728) 5,055 (16,258) Total Investment Income (Loss) (6,417) 9,124 5,483 (8,442) (15,237) 14,409 (9,072) Interest Income and Dividend Revenue 6,319 5,651 5,938 6,053 6,957 23,040 24,599 Other 1,557 3,493 34 (73) 1,717 (2,310) 5,171 Total Revenues 72,124 165,875 241,108 55,044 22,724 742,548 484,751 Expenses Compensation 31,261 49,877 47,124 51,324 41,864 188,200 190,189 Performance Fee Compensation Realized Carried Interest 9,449 6,270 15,362 28,950 2,259 116,254 52,841 Realized Incentive Fees 22,653 8,401 12,455 13,659 15,598 61,668 50,113 Unrealized Carried Interest (22,148) (5,656) 21,497 (61,190) (61,651) (28,583) (107,000) Unrealized Incentive Fees (29,206) 6,735 2,137 (12,846) (4,421) (16,252) (8,395) Total Compensation and Benefits 12,009 65,627 98,575 19,897 (6,351) 321,287 177,748 Other Operating Expenses 14,666 21,836 23,539 24,898 23,353 90,524 93,626 Total Expenses 26,675 87,463 122,114 44,795 17,002 411,811 271,374 Economic Income 45,449 $ 78,412 $ 118,994 $ 10,249 $ 5,722 $ 330,737 $ 213,377 $ Total Assets Under Management 72,858,960 $ 74,959,534 $ 81,288,709 $ 80,841,348 $ 79,081,252 $ 72,858,960 $ 79,081,252 $ Fee-Earning Assets Under Management 58,821,006 $ 59,271,744 $ 61,608,998 $ 60,337,992 $ 61,684,380 $ 58,821,006 $ 61,684,380 $ Weighted Average Fee-Earning AUM 58,329,539 $ 58,607,856 $ 61,256,993 $ 60,243,777 $ 60,598,308 $ 56,006,898 $ 60,444,233 $ LP Capital Invested 846,696 $ 814,423 $ 47,768 $ 424,365 $ 2,496,709 $ 2,656,958 $ 3,783,265 $ Total Capital Invested 900,291 $ 989,775 $ 60,337 $ 432,212 $ 2,601,675 $ 2,750,253 $ 4,083,999 $

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Financial Advisory Note: As a result of the spin-off on October 1, 2015 of Blackstone’s Financial Advisory business, which did not include Blackstone's capital markets services business, the results of Blackstone’s capital markets services business were reclassified from the Financial Advisory segment to the Private Equity segment. All prior periods have been recast to reflect this reclassification. Please see Blackstone’s 4Q’15 Supplemental Financial Data available at www.blackstone.com for additional historical periods. (Dollars in Thousands) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Revenues Advisory Fees 148,468 $ 81,809 $ 72,155 $ 143,606 $ - $ 398,942 $ 297,570 $ Transaction and Other Fees, Net 127 16 - 146 - 379 162 Total Advisory and Transaction Fees 148,595 81,825 72,155 143,752 - 399,321 297,732 Investment Income (Loss) Realized (38) (230) (159) (479) - 707 (868) Unrealized (275) 1,482 (523) (998) - 860 (39) Total Investment Income (Loss) (313) 1,252 (682) (1,477) - 1,567 (907) Interest Income and Dividend Revenue 2,910 3,236 3,190 6,094 - 10,000 12,520 Other 291 (956) (112) (235) - 428 (1,303) Total Revenues 151,483 85,357 74,551 148,134 - 411,316 308,042 Expenses Compensation 40,444 67,951 48,797 64,169 - 226,837 180,917 Total Compensation and Benefits 40,444 67,951 48,797 64,169 - 226,837 180,917 Other Operating Expenses 24,675 21,222 18,446 22,658 - 87,484 62,326 Total Expenses 65,119 89,173 67,243 86,827 - 314,321 243,243 Economic Income (Loss) 86,364 $ (3,816) $ 7,308 $ 61,307 $ - $ 96,995 $ 64,799 $

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Unitholder Distribution A detailed description of Blackstone’s distribution policy and the definition of Distributable Earnings can be found on page 31, Definitions and Distribution Policy. DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Per Unit calculations are based on end of period Total Common Units Outstanding (page 30, Unit Rollforward); actual distributions are paid to unitholders as of the applicable record date. For the periods presented, Net Cash Available for Distribution per Common Unit equals the Actual Distribution per Common Unit. Retained capital is withheld pro-rata from common and Blackstone Holdings Partnership unitholders. Common unitholders’ share was $70.1 million for 4Q’15 and $315.7 million for FY’15. Generated $0.72 of Distributable Earnings per common unit during the quarter, bringing the full year amount to $3.23 per common unit, up 29% compared to the same period last year. Declared a quarterly distribution of $0.61 per common unit to record holders as of February 8, 2016; payable on February 16, 2016. % Change % Change (Dollars in Thousands, Except per Unit Data) 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 vs. 4Q'14 FY'14 FY'15 vs. FY'14 Distributable Earnings (“DE”) 1,134,054 $ 1,240,207 $ 1,033,920 $ 691,534 $ 878,027 $ (23)% 3,063,958 $ 3,843,688 $ 25% Add: Other Payables Attributable to Common Unitholders 87,977 7,288 - - 26,918 (69)% 207,424 34,206 (84)% DE before Certain Payables 1,222,031 1,247,495 1,033,920 691,534 904,945 (26)% 3,271,382 3,877,894 19% Percent to Common Unitholders 53% 53% 54% 54% 54% 53% 54% DE before Certain Payables Attributable to Common Unitholders 650,899 663,608 554,120 370,902 487,075 (25)% 1,733,702 2,075,705 20% Less: Other Payables Attributable to Common Unitholders (87,977) (7,288) - - (26,918) (69)% (207,424) (34,206) (84)% DE Attributable to Common Unitholders 562,922 656,320 554,120 370,902 460,157 (18)% 1,526,278 2,041,499 34% DE per Common Unit 0.92 $ 1.05 $ 0.88 $ 0.58 $ 0.72 $ (22)% 2.51 $ 3.23 $ 29% Less: Retained Capital per Common Unit (0.14) $ (0.16) $ (0.14) $ (0.09) $ (0.11) $ (21)% (0.39) $ (0.50) $ 28% Actual Distribution per Common Unit 0.78 $ 0.89 $ 0.74 $ 0.49 $ 0.61 $ (22)% 2.12 $ 2.73 $ 29% Record Date Feb 8, 2016 Payable Date Feb 16, 2016

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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. 4Q’15 Fee-Earning AUM Rollforward (Dollars in Millions) FY’15 Fee-Earning AUM Rollforward (Dollars in Millions) Private Equity Real Estate Hedge Fund Solutions Credit Inflows: BPP U.S. co-investment ($2.0 billion); BPP U.S. ($911 million); BPP International ($567 million); BREP VII ($420 million); BREP co-investment ($400 million). Realizations: BREP Global and European opportunistic platforms ($1.3 billion); BREDS ($566 million). Inflows: Individual investor and specialized solutions ($1.3 billion); customized solutions ($636 million); commingled products ($115 million). Outflows: Driven by investors’ liquidity needs and certain strategic shifts in their programs. Inflows: Drawdown funds ($2.2 billion); BDCs ($1.1 billion); new CLO products ($857 million); Hedge Fund Strategies ($613 million). Outflows: Hedge Fund Strategies ($387 million); BDCs ($379 million); long only funds ($347 million). Realizations: Returns to CLO investors ($663 million); mezzanine funds ($276 million); BDCs ($182 million). Inflows: Tactical Opportunities platform ($1.1 billion); Blackstone Total Alternative Solutions ($852 million); Strategic Partners ($383 million). Realizations: BCP V sales of AVINTIV and Freescale; BCP IV/BCOM sale of SunGard; Strategic Partners realizations across the platform. 4Q’15 Highlights Fee-Earning Assets Under Management Private Real Hedge Fund Equity Estate Solutions 3Q'15 50,560 $ 64,859 $ 65,182 $ 60,338 $ 240,939 $ Inflows 2,404 4,783 2,029 5,244 14,460 Outflows (299) (31) (1,476) (1,113) (2,918) Realizations (1,327) (2,101) (138) (1,239) (4,805) Net Inflows 778 2,651 416 2,892 6,737 Market Activity 113 (164) 67 (1,546) (1,530) 4Q'15 51,451 $ 67,345 $ 65,665 $ 61,684 $ 246,146 $ QoQ Increase 2% 4% 1% 2% 2% Credit Total Private Real Hedge Fund Equity Estate Solutions 4Q'14 43,890 $ 52,563 $ 61,418 $ 58,821 $ 216,692 $ Inflows 13,882 27,698 9,667 17,310 68,558 Outflows (1,395) (4,166) (5,430) (5,712) (16,702) Realizations (5,107) (8,514) (517) (6,318) (20,455) Net Inflows 7,381 15,019 3,721 5,281 31,401 Market Activity 180 (237) 527 (2,417) (1,946) 4Q'15 51,451 $ 67,345 $ 65,665 $ 61,684 $ 246,146 $ YoY Increase 17% 28% 7% 5% 14% Credit Total

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4Q’15 Total AUM Rollforward (Dollars in Millions) FY’15 Total AUM Rollforward (Dollars in Millions) Inflows include contributions, capital raised, other increases in available capital, purchases and acquisitions. Outflows represent redemptions, client withdrawals and other decreases in available capital. Realizations represent realizations from the disposition of assets. Market Activity represents gains (losses) on portfolio investments and impact of foreign exchange rate fluctuations. Total Assets Under Management Private Equity Real Estate Hedge Fund Solutions Credit Inflows: BPP co-investment ($2.1 billion); initial closing of third real estate debt strategies fund ($1.3 billion); BREP co-investment ($577 million). Realizations: BREP Global and European opportunistic platforms ($3.2 billion); BREP co-investment ($350 million); BREDS ($346 million). Market Activity: BAAM’s Principal Solutions Composite up 0.4% gross (0.2% net) during the quarter and 2.9% gross (2.1% net) for the year. Inflows: Long only funds ($1.3 billion); BDCs ($1.1 billion); Hedge Fund Strategies ($427 million). Market Activity: Drawdown Funds ($790 million); BDCs ($683 million); Hedge Fund Strategies ($561 million). Inflows: Tactical Opportunities platform ($1.5 billion); Strategic Partners ($1.4 billion); BCP VII ($1.2 billion); Blackstone Total Alternative Solutions ($886 million). Realizations: BCP V ($1.9 billion); Strategic Partners ($453 million); BCP IV ($226 million). 4Q’15 Highlights Private Real Hedge Fund Equity Estate Solutions 3Q'15 91,491 $ 93,188 $ 68,406 $ 80,841 $ 333,926 $ Inflows 5,151 4,610 2,352 3,418 15,532 Outflows (185) (73) (1,537) (1,174) (2,968) Realizations (3,438) (3,995) (151) (1,557) (9,141) Net Inflows 1,528 542 665 687 3,422 Market Activity 1,261 188 35 (2,447) (963) 4Q'15 94,280 $ 93,918 $ 69,105 $ 79,081 $ 336,385 $ QoQ Increase (Decrease) 3% 1% 1% (2)% 1% Credit Total Private Real Hedge Fund Equity Estate Solutions 4Q'14 73,073 $ 80,863 $ 63,586 $ 72,859 $ 290,381 $ Inflows 30,035 29,474 11,041 23,035 93,585 Outflows (407) (342) (5,559) (6,373) (12,681) Realizations (13,493) (21,017) (555) (7,606) (42,670) Net Inflows 16,135 8,115 4,927 9,057 38,233 Market Activity 5,072 4,940 593 (2,834) 7,770 4Q'15 94,280 $ 93,918 $ 69,105 $ 79,081 $ 336,385 $ YoY Increase 29% 16% 9% 9% 16% Credit Total

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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 30, Unit Rollforward). $3.3 billion Net Accrued Performance Fees at 4Q’15 $2.75 per unit Net Accrued Performance Fees at 4Q’15 55% of 4Q’14 Net Accrued Performance Fees realized in FY’15 Net Accrued Performance Fees (Dollars in Millions, Except per Unit Data) 3Q'15 4Q'15 4Q'15 Per Unit QoQ Change Private Equity BCP IV Carried Interest 156 $ 144 $ 0.12 $ (12) $ BCP V Carried Interest 486 288 0.24 (198) BCP VI Carried Interest 303 359 0.30 56 BEP Carried Interest 59 48 0.04 (11) Tactical Opportunities Carried Interest 42 52 0.04 10 BTAS Carried Interest 1 3 - 2 Strategic Partners Carried Interest 27 36 0.03 9 Other Carried Interest 1 1 - - Total Private Equity 1,075 $ 931 $ 0.79 $ (144) $ Real Estate BREP IV Carried Interest 26 20 0.02 (6) BREP V Carried Interest 542 497 0.42 (45) BREP VI Carried Interest 720 628 0.53 (92) BREP VII Carried Interest 613 608 0.51 (5) BREP VIII Carried Interest 3 7 0.01 4 BREP Europe III Carried Interest 195 186 0.16 (9) BREP Europe IV Carried Interest 112 121 0.10 9 BREP Asia Carried Interest 48 54 0.05 6 BPP Carried Interest 24 28 0.02 4 BPP Incentive Fees 7 12 0.01 5 BREDS Carried Interest 14 12 0.01 (2) BREDS Incentive Fees 5 6 0.01 1 Asia Platform Incentive Fees 7 7 0.01 - Total Real Estate 2,316 $ 2,186 $ 1.85 $ (130) $ Hedge Fund Solutions Incentive Fees 38 38 0.03 - Total Hedge Fund Solutions 38 $ 38 $ 0.03 $ - $ Credit Carried Interest 134 77 0.07 (57) Incentive Fees 22 19 0.02 (3) Total Credit 156 $ 96 $ 0.08 $ (60) $ Total Blackstone Carried Interest 3,506 3,169 2.68 (337) Incentive Fees 79 82 0.07 3 Net Accrued Performance Fees 3,585 $ 3,251 $ 2.75 $ (334) $ Memo: Net Realized Performance Fees 31 $ 89 $ 0.08 $ 58 $

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Investment Records as of December 31, 2015(a) Continued... Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total Private Equity BCP I (Oct 1987 / Oct 1993) 859,081 $ - $ - $ n/a - 1,741,738 $ 2.6x 1,741,738 $ 2.6x 19% 19% BCP II (Oct 1993 / Aug 1997) 1,361,100 - - n/a - 3,256,819 2.5x 3,256,819 2.5x 32% 32% BCP III (Aug 1997 / Nov 2002) 3,967,422 - - n/a - 9,184,688 2.3x 9,184,688 2.3x 14% 14% BCOM (Jun 2000 / Jun 2006) 2,137,330 199,298 155,610 1.6x 71% 2,808,140 1.4x 2,963,750 1.4x 7% 6% BCP IV (Nov 2002 / Dec 2005) 6,773,182 220,676 2,148,444 1.3x 30% 18,896,847 3.2x 21,045,291 2.8x 43% 36% BCP V (Dec 2005 / Jan 2011) 21,025,483 1,261,713 11,213,593 1.5x 73% 25,866,084 2.0x 37,079,677 1.8x 11% 8% BCP VI (Jan 2011 / Jan 2017) 15,186,676 3,437,279 14,546,246 1.3x 25% 2,010,281 1.9x 16,556,527 1.4x 51% 12% BEP (Aug 2011 / Feb 2015) 2,439,096 208,049 2,694,285 1.3x 21% 539,484 2.0x 3,233,769 1.4x 57% 16% BEP II (Feb 2015 / Feb 2021) 4,951,351 4,951,351 - n/a - - n/a - n/a n/a n/a BCP VII (TBD) 18,000,000 18,000,000 - n/a - - n/a - n/a n/a n/a Total Corporate Private Equity 76,700,721 $ 28,278,366 $ 30,758,178 $ 1.4x 43% 64,304,081 $ 2.3x 95,062,259 $ 1.9x 19% 16% Tactical Opportunities 13,047,121 6,928,783 6,594,346 1.1x 5% 1,272,843 1.5x 7,867,189 1.2x 32% 12% Strategic Partners I-V & Co-Investment 12,001,300 2,198,999 4,401,532 2.6x - 12,857,614 1.3x 17,259,146 1.5x n/a 14% Strategic Partners VI 6,701,331 2,116,999 3,282,072 1.2x - 334,323 0.2x 3,616,395 0.8x n/a 63% Other Funds and Co-Investment (e) 3,013,278 1,308,318 1,395,181 1.1x 35% 227,280 1.3x 1,622,461 1.1x n/a n/m Total Private Equity 111,463,751 $ 40,831,465 $ 46,431,309 $ 1.4x 30% 78,996,141 $ 1.9x 125,427,450 $ 1.7x 19% 15% Real Estate Dollar Pre-BREP 140,714 $ - $ - $ n/a - 345,190 $ 2.5x 345,190 $ 2.5x 33% 33% BREP I (Sep 1994 / Oct 1996) 380,708 - - n/a - 1,327,708 2.8x 1,327,708 2.8x 40% 40% BREP II (Oct 1996 / Mar 1999) 1,198,339 - - n/a - 2,531,613 2.1x 2,531,613 2.1x 19% 19% BREP III (Apr 1999 / Apr 2003) 1,522,708 - - n/a - 3,336,402 2.4x 3,336,402 2.4x 21% 21% BREP IV (Apr 2003 / Dec 2005) 2,198,694 - 713,015 0.7x 14% 3,900,618 2.2x 4,613,633 1.7x 40% 13% BREP V (Dec 2005 / Feb 2007) 5,539,418 - 4,440,351 2.3x 28% 8,393,813 2.2x 12,834,164 2.2x 13% 11% BREP VI (Feb 2007 / Aug 2011) 11,059,523 584,008 7,592,592 2.1x 65% 17,662,251 2.4x 25,254,843 2.3x 15% 13% BREP VII (Aug 2011 /Apr 2015) 13,490,570 2,565,752 16,088,059 1.6x 1% 8,031,818 1.9x 24,119,877 1.7x 33% 23% BREP VIII (Apr 2015 / Oct 2020) 15,940,743 12,797,781 3,389,563 1.1x - - n/a 3,389,563 1.1x n/a 15% Total Global BREP 51,471,417 $ 15,947,541 $ 32,223,580 $ 1.6x 20% 45,529,413 $ 2.2x 77,752,993 $ 1.9x 22% 17% Euro BREP Int'l (Jan 2001 / Sep 2005) 824,172 € - € - € n/a - 1,366,154 € 2.1x 1,366,154 € 2.1x 23% 23% BREP Int'l II (Sep 2005 / Jun 2008) 1,629,748 54,138 520,843 1.1x 63% 1,714,266 1.8x 2,235,109 1.6x 8% 5% BREP Europe III (Jun 2008 / Sep 2013) 3,205,140 471,643 3,380,172 1.9x 4% 2,496,255 2.2x 5,876,427 2.0x 24% 19% BREP Europe IV (Sep 2013 / Mar 2019) 6,695,866 2,185,988 6,246,497 1.3x - 405,114 1.4x 6,651,611 1.3x 33% 19% Total Euro BREP 12,354,926 € 2,711,769 € 10,147,512 € 1.4x 4% 5,981,789 € 2.0x 16,129,301 € 1.6x 16% 14% BREP Co-Investment (f) 6,109,088 $ - $ 5,686,895 $ 1.7x 66% 6,156,862 $ 2.3x 11,843,757 $ 1.9x 17% 16% BREP Asia (Jun 2013 / Dec 2017) 5,078,300 2,781,959 2,939,592 1.3x - 85,048 1.7x 3,024,640 1.3x 33% 13% Total BREP 78,732,628 $ 21,675,024 $ 53,661,654 $ 1.5x 20% 59,746,625 $ 2.2x 113,408,279 $ 1.8x 20% 16% BPP (g) 10,323,584 $ 2,237,310 $ 9,029,698 $ 1.1x - - $ n/a 9,029,698 $ 1.1x n/a 18% BREDS (h) 7,024,734 $ 2,549,256 $ 2,398,503 $ 1.2x - 5,456,371 $ 1.3x 7,854,874 $ 1.3x 13% 12%

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Investment Records as of December 31, 2015(a) – Continued The returns presented herein represent those of the applicable Blackstone Funds and not those of The Blackstone Group L.P. n/mNot meaningful. n/aNot applicable. Preliminary. 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. Multiple of Invested Capital (“MOIC”) represents carrying value, before management fees, expenses and Carried Interest, divided by invested capital. Net Internal Rate of Return (“IRR”) represents the annualized inception to December 31, 2015 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Carried Interest. Returns for Other Funds and Co-Invest are not meaningful as these funds have limited transaction activity. 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. BPP, or Blackstone Property Partners, are the core+ real estate funds which invest with a more modest risk profile and lower leverage. Excludes Capital Trust drawdown funds. BSCH is a permanent capital vehicle focused on acquiring strategic minority positions in alternative asset managers. 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, 1.4x, 1.6x and 1.1x, respectively. Funds presented represent the flagship credit drawdown funds only. The Total Credit Net IRR is the combined IRR of the six credit drawdown funds presented. Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) (Dollars in Thousands, Except Where Noted) Capital Capital (b) Value MOIC (c) % Public Value MOIC (c) Value MOIC (c) Realized Total Hedge Fund Solutions BSCH (Dec 2013 / Jun 2020) (i) 3,300,600 $ 3,015,378 $ 287,802 $ 1.1x - 57,987 $ n/a 345,789 $ 1.3x n/a 6% BSCH Co-Investment 75,500 75,500 - n/a - - n/a - n/a n/a n/a Total Hedge Fund Solutions 3,376,100 $ 3,090,878 $ 287,802 $ 1.1x - 57,987 $ n/a 345,789 $ 1.3x n/a 6% Credit (j) Mezzanine I (Jul 2007 / Oct 2011) 2,000,000 $ 99,280 $ 457,313 $ 1.7x - 4,396,393 $ 1.6x 4,853,706 $ 1.6x n/a 18% Mezzanine II (Nov 2011 / Nov 2016) 4,120,000 2,001,026 2,806,501 1.1x - 1,811,700 1.4x 4,618,201 1.2x n/a 14% Rescue Lending I (Sep 2009 / May 2013) 3,253,143 553,131 1,670,415 1.2x - 4,092,198 1.5x 5,762,613 1.4x n/a 12% Rescue Lending II (Jun 2013 / Jun 2018) 5,125,000 2,973,619 2,286,253 1.0x - 88,846 1.1x 2,375,099 1.0x n/a 5% Energy Select Opportunities (Nov 2015 / Nov 2018) 2,856,866 2,533,928 323,839 1.0x - - n/a 323,839 1.0x n/a n/m Euro European Senior Debt (Feb 2015 / Feb 2018) 1,964,689 € 3,411,806 € 547,859 € 1.0x - 142,288 € 1.2x 690,147 € 1.1x n/a n/m Total Credit 19,621,419 $ 11,867,603 $ 8,139,805 $ 1.1x - 10,546,606 $ 1.5x 18,686,411 $ 1.3x n/a 14%

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Reconciliation of GAAP to Non-GAAP Measures Notes on page 27. (Dollars in Thousands) 4Q'14 1Q'15 (m) 2Q'15 3Q'15 4Q'15 FY'14 FY'15 Net Income (Loss) Attributable to The Blackstone Group L.P. 551,451 $ 629,448 $ 134,168 $ (254,697) $ 200,870 $ 1,584,589 $ 709,789 $ Net Income (Loss) Attributable to Non-Controlling Interests in Blackstone Holdings 586,582 645,230 134,870 (247,318) 150,734 1,701,100 683,516 Net Income Attributable to Non-Controlling Interests in Consolidated Entities 95,557 81,796 66,716 30,671 22,276 335,070 201,459 Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities 29,844 7,527 13,780 (12,520) 2,358 74,794 11,145 Net Income (Loss) 1,263,434 $ 1,364,001 $ 349,534 $ (483,864) $ 376,238 $ 3,695,553 $ 1,605,909 $ Provision for Taxes 74,686 99,344 43,251 1,573 46,230 291,173 190,398 Income (Loss) Before Provision for Taxes 1,338,120 $ 1,463,345 $ 392,785 $ (482,291) $ 422,468 $ 3,986,726 $ 1,796,307 $ Transaction-Related Charges (a) 291,550 231,862 192,018 80,962 (15,279) 856,382 489,563 Amortization of Intangibles (b) 26,113 25,899 24,720 30,624 23,287 111,254 104,530 (Income) Associated with Non-Controlling Interests of Consolidated Entities (c) (125,401) (89,323) (80,496) (18,151) (24,634) (409,864) (212,604) Economic Income (Loss) 1,530,382 $ 1,631,783 $ 529,027 $ (388,856) $ 405,842 $ 4,544,498 $ 2,177,796 $ Taxes (d) (83,649) (9,719) (20,587) (27,070) 29,849 (199,512) (27,527) Economic Net Income (Loss) 1,446,733 $ 1,622,064 $ 508,440 $ (415,926) $ 435,691 $ 4,344,986 $ 2,150,269 $ Taxes (d) 83,649 9,719 20,587 27,070 (29,849) 199,512 27,527 Performance Fee Adjustment (e) (1,323,338) (1,673,736) (569,664) 639,349 (194,026) (4,391,877) (1,798,077) Investment (Income) Loss Adjustment (f) (98,424) (189,641) (10,774) 136,131 11,435 (471,628) (52,849) Net Interest Loss (g) 5,851 8,402 14,411 9,522 11,846 36,511 44,181 Performance Fee Compensation and Benefits Adjustment (h) 270,249 403,816 215,441 (130,479) 75,782 1,285,503 564,560 Fee Related Earnings 384,720 $ 180,624 $ 178,441 $ 265,667 $ 310,879 $ 1,003,007 $ 935,611 $ Net Realized Performance Fees (i) 699,472 932,789 725,433 357,114 505,540 1,786,599 2,520,876 Realized Investment Income (j) 153,477 107,792 136,497 87,526 86,993 543,425 418,808 Net Interest (Loss) (g) (5,851) (8,402) (14,411) (9,522) (11,846) (36,511) (44,181) Taxes and Related Payables Including Payable Under Tax Receivable Agreement (k) (108,456) (16,994) (20,587) (27,070) (25,819) (280,788) (90,470) Equity-Based Compensation (l) 10,692 44,398 28,547 17,819 12,280 48,226 103,044 Distributable Earnings 1,134,054 $ 1,240,207 $ 1,033,920 $ 691,534 $ 878,027 $ 3,063,958 $ 3,843,688 $ Interest Expense 34,154 38,853 45,437 44,981 46,511 132,855 175,782 Taxes and Related Payables Including Payable Under Tax Receivable Agreement (k) 108,456 16,994 20,587 27,070 25,819 280,788 90,470 Depreciation and Amortization 7,200 6,927 6,715 6,719 6,852 32,300 27,213 Adjusted EBITDA 1,283,864 $ 1,302,981 $ 1,106,659 $ 770,304 $ 957,209 $ 3,509,901 $ 4,137,153 $

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Reconciliation of GAAP to Non-GAAP Measures – Notes Note: See page 31, Definitions and Distribution Policy. 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. 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. 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. Taxes represent the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes. This adjustment removes from EI the total segment amount of Performance Fees. This adjustment removes from EI the total segment amount of Investment Income (Loss). This adjustment represents Interest Income and Dividend Revenue less Interest Expense. This adjustment removes from expenses the compensation and benefit amounts related to Blackstone’s profit sharing plans related to Performance Fees. Represents the adjustment for realized Performance Fees net of corresponding actual amounts due under Blackstone’s profit sharing plans related thereto. Equals the sum of Net Realized Incentive Fees and Net Realized Carried Interest. Represents the adjustment for Blackstone’s Investment Income (Loss) - Realized. 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. Represents equity-based award expense included in EI, which excludes all transaction-related equity-based charges. Blackstone adopted new GAAP consolidation guidance in 2Q’15 which resulted in the deconsolidation of certain Blackstone Funds as of January 1, 2015. Adoption did not change Net Income Attributable to The Blackstone Group L.P. in 1Q’15, but did change Income Before Taxes, Net Income and Net Income Attributable to Non-Controlling and Redeemable Non-Controlling Interests in Consolidated Entities. Such amounts have been recast here from the amounts originally reported in 1Q’15.

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Walkdown of Financial Metrics See page 29, Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics for the calculation of the amounts presented herein that are not the respective captions on page 14, Total Segments. 4Q’15 Fee Related Earnings per Unit is based on end of period DE Units Outstanding; 4Q’15 DE per Unit is based on DE attributable to Common Unit Holders (see page 20, Unitholder Distribution) and end of period Total Common Units Outstanding; and 4Q’15 ENI per Unit is based on Weighted-Average ENI Adjusted Units. FY’15 per Unit represents the sum of the last four quarters. See page 30, Unit Rollforward. (Dollars in Thousands, Except per Unit Data) 4Q'15 FY'15 Results Per Unit Results Per Unit Base Management Fees 599,407 $ 2,196,583 $ Advisory Fees 742 308,131 Transaction and Other Fees, Net 72,481 153,685 Management Fee Offsets (22,939) (93,494) Other Revenue 10,240 8,500 Compensation (240,454) (1,189,219) Non-Interest Operating Expenses (108,598) (448,575) Fee Related Earnings 310,879 $ 0.26 $ 935,611 $ 0.78 $ Net Realized Incentive Fees 45,651 108,800 Net Realized Carried Interest 459,889 2,412,076 Realized Investment Income 86,993 418,808 Net Interest (Loss) (11,846) (44,181) Taxes and Related Payables (25,819) (90,470) Equity-Based Compensation 12,280 103,044 Distributable Earnings 878,027 $ 0.72 $ 3,843,688 $ 3.23 $ Net Unrealized Incentive Fees (23,894) (4,759) Net Unrealized Carried Interest (363,402) (1,282,600) Unrealized Investment (Loss) (98,428) (365,959) Add Back: Related Payables 55,668 62,943 Less: Equity-Based Compensation (12,280) (103,044) Economic Net Income 435,691 $ 0.37 $ 2,150,269 $ 1.82 $ Fee Earnings Distributable Earnings Economic Net Income

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Walkdown of Financial Metrics – Calculation of Certain Non-GAAP Financial Metrics Unless otherwise noted, all amounts are the respective captions from the Total Segment information. Represents equity-based award expense included in Economic Income, which excludes all transaction-related equity-based charges. See page 26, Reconciliation of GAAP to Non-GAAP Measures for this adjustment. Represents tax-related payables including the Payable Under Tax Receivable Agreement, which is a component of Taxes and Related Payables. (Dollars in Thousands) 4Q'15 FY'15 Other Operating Expenses 155,109 $ 624,357 $ Less: Interest Expense (46,511) (175,782) Non-Interest Operating Expenses 108,598 $ 448,575 $ Realized Incentive Fees 82,472 194,746 Less: Realized Incentive Fee Compensation (36,821) (85,946) Net Realized Incentive Fees 45,651 $ 108,800 $ Realized Carried Interest 625,610 3,205,876 Less: Realized Carried Interest Compensation (165,721) (793,800) Net Realized Carried Interest 459,889 $ 2,412,076 $ Interest Income and Dividend Revenue 34,665 131,601 Less: Interest Expense (46,511) (175,782) Net Interest (Loss) (11,846) $ (44,181) $ Equity-Based Compensation (a) 12,280 $ 103,044 $ Taxes and Related Payables (b) (25,819) $ (90,470) $ Unrealized Incentive Fees (42,834) (7,249) Less: Unrealized Incentive Fee Compensation 18,940 2,490 Net Unrealized Incentive Fees (23,894) $ (4,759) $ Unrealized Carried Interest (471,222) (1,595,296) Less: Unrealized Carried Interest Compensation 107,820 312,696 Net Unrealized Carried Interest (363,402) $ (1,282,600) $ Related Payables (c) 55,668 $ 62,943 $

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Unit Rollforward 4Q'14 1Q'15 2Q'15 3Q'15 4Q'15 Total GAAP Weighted-Average Common Units Outstanding - Basic 615,492,620 625,276,969 631,881,205 638,832,799 641,134,086 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units 6,843,140 5,955,072 2,311,444 - 1,794,046 Weighted-Average Blackstone Holdings Partnership Units - - - - 547,495,655 Total GAAP Weighted-Average Units Outstanding - Diluted 622,335,760 631,232,041 634,192,649 638,832,799 1,190,423,787 Adjustments: Weighted-Average Unvested Deferred Restricted Common Units - - - 1,913,028 - Weighted-Average Blackstone Holdings Partnership Units 536,973,966 548,837,150 555,641,388 550,983,910 - Weighted-Average Economic Net Income Adjusted Units 1,159,309,726 1,180,069,191 1,189,834,037 1,191,729,737 1,190,423,787 Economic Net Income Adjusted Units, End of Period 1,159,954,181 1,192,529,251 1,190,864,027 1,191,328,573 1,190,361,741 Total Common Units Outstanding 611,480,457 625,985,058 630,414,455 635,440,608 637,410,828 Adjustments: Blackstone Holdings Partnership Units 536,543,970 550,783,119 545,861,003 549,317,005 546,844,892 Distributable Earnings Units Outstanding 1,148,024,427 1,176,768,177 1,176,275,458 1,184,757,613 1,184,255,720 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.

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Definitions and Distribution Policy Blackstone discloses the following financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“non-GAAP”) in this presentation: Blackstone uses Economic Income, or “EI”, as a key measure of value creation, a benchmark of its performance and in making resource deployment and compensation decisions across its five segments. EI represents segment net income before taxes excluding transaction-related charges. Transaction-related charges arise from 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 and (b) income earned from Blackstone’s investments in the Blackstone Funds. Blackstone uses FRE as a measure to assess whether recurring revenue from its businesses is sufficient to adequately cover all of its operating expenses and generate profits. FRE equals contractual fee revenues less (a) compensation expenses (which includes amortization of non-IPO and non-acquisition-related equity-based awards, but excludes amortization of IPO and acquisition-related equity-based awards, carried interest and incentive fee compensation), and (b) other non-interest operating expenses. Distributable Earnings, or “DE”, which is derived from Blackstone’s segment reported results, is a supplemental measure to assess performance and amounts available for distributions to Blackstone unitholders, including Blackstone personnel and others who are limited partners of the Blackstone Holdings partnerships. DE is intended to show the amount of net realized earnings without the effects of the consolidation of the Blackstone Funds. DE, which is a component of ENI, is the sum across all segments of: (a) Total Management and Advisory Fees, (b) Interest and Dividend Revenue, (c) Other Revenue, (d) Realized Performance Fees, and (e) Realized Investment Income (Loss); less (a) Compensation, excluding the expense of equity-based awards, (b) Realized Performance Fee Compensation, (c) Other Operating Expenses, and (d) Taxes and Related Payables 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”, which is derived from segment results, to assess its ability to service its borrowings. Adjusted EBITDA represents DE plus the addition of (a) Interest Expense, (b) Taxes and Related Payables Including Payable Under Tax Receivable Agreement, and (c) Depreciation and Amortization. Distribution Policy. Blackstone’s intention is to distribute quarterly 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.

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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.