Blackstone Inc
For the period ended Mar 31, 2025. Filed May 2, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 2, 2025
BX$119.50-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-01.
0001193125-24-249809
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001193125-25-111595
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 324 previous paragraphs and 274 current paragraphs.
132 unchanged; 86 reworded; 49 added; 102 removed; 4 previous and 7 current paragraphs rearranged.
Tables are not compared: 264 previous and 218 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (49)
Current report
Our Private Equity segment includes: (a) Private Equity Strategies (described below), (b) Infrastructure, which includes (1) our infrastructure-focused funds for institutional investors with a primary focus on the U.S. and Europe (Blackstone Infrastructure Partners or “BIP”) and (2) a private wealth-focused platform offering eligible individual investors access to our infrastructure capabilities (Blackstone Infrastructure Strategies or “BXINFRA”), (c) our secondaries business (“Secondaries”), which includes Strategic Partners Fund Solutions (“Strategic Partners”) and our GP Stakes business (“Blackstone GP Stakes” or “BXGP”), (d) our capital markets services business (Blackstone Capital Markets or “BXCM”) and (e) a private wealth-focused platform offering eligible individuals exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment (Blackstone Total Alternatives Solution or “BTAS”).
Current report
Global markets experienced significant volatility in the first quarter of 2025, driven by concerns over the imposition of import tariffs by the U.S. and subsequent retaliation by U.S. trade partners, proposed U.S. government spending cutbacks and a weakening U.S. Dollar. The potential implications for an economic slowdown and inflation also fueled volatility. The 10-year U.S. Treasury yield decreased 36 basis points in the first quarter to 4.21% and remained at that level as of April 28, 2025. Meanwhile, three-month SOFR declined 8 basis points in the first quarter, to 4.41%. The U.S. Dollar depreciated against major currencies, including the Pound Sterling, Euro, Canadian Dollar, and Indian Rupee.
Current report
Most major equity markets declined in the first quarter. The total return of the S&P 500 index was (4.3)%, with the largest declines in the consumer discretionary and information technology sectors of 13.8% and 12.7%, respectively. The energy sector was an outlier, increasing 10.2% on expectations of tightening supply and ongoing inflationary pressure. Equity market volatility increased significantly, with the CBOE Volatility Index up 28.4%. In credit markets, the Morningstar LSTA US leveraged loan and the Credit Suisse high yield bond indices generated modestly positive returns of 0.5% and 0.7%, respectively. High yield spreads widened by 69 basis points sequentially while year-to-date issuance decreased 10% on a year-over-year basis. The Henry Hub Natural Gas spot price increased 13% to $4.12, while the price of West Texas Intermediate crude oil remained consistent with the prior quarter at $71.48 per barrel.
Current report
The U.S. economy slowed in the first quarter, with the Bureau of Economic Analysis’ advance estimate of U.S. real GDP indicating a contraction of 0.3%, down from 2.4% growth in the fourth quarter of 2024. U.S. inflation continued to decelerate, with March CPI of 2.4% down sharply from the prior peak of 9.1% in June 2022 and modestly from 2.9% in December 2024. The Federal Reserve has held the federal funds target range steady at 4.25-4.50% since January. Subsequent to quarter end, there has been significant speculation as to the likelihood of additional interest rate decreases in 2025. In April, the Chair of the Federal Reserve indicated the Federal Reserve’s inclination to wait for greater clarity on the impact of such policy changes. Nevertheless, Federal Funds Futures reflect the market’s assessment of the possibility of multiple interest rate cuts in the second half of 2025.
Current report
Wages rose 3.8% year-over-year in March 2025, and retail sales rose 4.6% year-over-year. The unemployment rate held largely steady, with a rate of 4.2% in March 2025 compared to 4.1% in December of 2024. Despite the strength in wages, retail sales and employment, consumer sentiment, as reflected in the University of Michigan survey, fell to 57.9, representing its lowest level since 2022. Capital markets activity levels in the U.S. remained muted. U.S. initial public offering volumes fell 4% year-over-year, and U.S. announced merger and acquisition deal volumes also decreased 4% year-over-year – both at historically depressed levels.
Current report
While the U.S. entered 2025 with a healthy economy, the announcement of significant U.S. tariffs on import of physical goods and retaliatory measures by other countries, has led to meaningful and ongoing market volatility. The ultimate outcome of global trade policy negotiations is unclear. This is contributing to significant U.S. and global economic uncertainty, with the International Monetary Fund forecasting slower U.S. GDP growth compared to the prior year and higher inflation.
Current report
For additional information on the potential impact on each of our business segments of the conditions described above see “—Segment Analysis”.
Current report
“Total Assets Under Management” refers to the invested and available capital in Blackstone-managed or advised vehicles (including, without limitation, investment funds and SMAs). The Total Assets Under Management attributable to an individual vehicle is dependent on the structure and investment strategy of such vehicle and accordingly, will vary from vehicle to vehicle. Total Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable:
Current report
Uncalled commitments represent the capital we are entitled to call from investors pursuant to the terms of their respective capital commitments, including capital commitments to funds that have yet to commence their investment periods. Drawdown funds, perpetual capital vehicles, co-investment vehicles, and SMAs can each be structured with a commitment from an investor that is called over time as opposed to fully funded upon subscription.
Current report
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Total Assets Under Management are reported in the segment where the assets are managed.
Current report
“Fee-Earning Assets Under Management” refers to the portion of Total Assets Under Management on which we are entitled to earn management fees and/or performance revenues. The Fee-Earning Assets Under Management attributable to an individual vehicle is driven by the basis on which fees are earned and accordingly, will vary from vehicle to vehicle. Fee-Earning Assets Under Management generally equals the sum of the following across Blackstone-managed or advised vehicles, as applicable: (a) net asset value, (b) committed capital and remaining invested capital during the investment period and post-investment period, respectively, (c) invested capital (including leverage to the extent management fee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.
Current report
Assets may be raised in one vehicle or business unit and subsequently invested in or managed or advised by another vehicle or business unit. Fee-Earning Assets Under Management are reported in the segment where the Total Assets Under Management are reported to the extent fee-paying to Blackstone.
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n/m Not meaningful.
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Other Income
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The Other Income (Loss) — Change in Tax Receivable Agreement Liability was entirely allocated to Blackstone Inc.
Current report
Total Assets Under Management and Fee-Earning Assets Under Management may have differences in the measurement and timing of certain activities that affect each of inflows, outflows, realizations and market activity. These differences include, but are not limited to:
Current report
Total Assets Under Management were $1,167.5 billion at March 31, 2025, an increase of $40.3 billion compared to $1,127.2 billion at December 31, 2024. The net increase was due to:
Current report
Fee-Earning Assets Under Management were $860.1 billion at March 31, 2025, an increase of $29.4 billion compared to $830.7 billion at December 31, 2024. The net increase was due to:
Current report
share class or vehicle that has an inception date of less than one year from such latest reporting date is excluded from the calculation. BXPE Total Assets Under Management reflects net asset value as of February 28, 2025, plus subscriptions as of March 1, 2025. BXPE Total Assets Under Management, to the extent managed by a different business, is reported in such business for the purposes of segment Assets Under Management reporting.
Current report
Segment Distributable Earnings were $495.4 million for the three months ended March 31, 2025, a decrease of $120.9 million, compared to $616.4 million for the three months ended March 31, 2024. The decrease in Segment Distributable Earnings was primarily attributable to decreases of $101.2 million in Fee Related Earnings and $19.7 million in Net Realizations.
Current report
Our Real Estate segment strategies exhibited positive performance in the first quarter of 2025. This was supported by positive cash flow growth across nearly every area of the portfolio, continued improvement in the cost and availability of debt capital and strengthening of foreign currencies relative to the U.S. dollar. Recently announced tariffs in the U.S., however, have contributed to significant and ongoing uncertainty and volatility of markets. There is significant uncertainty as to the outcome of ongoing global trade negotiations, the extent of retaliatory measures taken by other countries and the ultimate impact on the U.S. and global economies. A prolonged period of policy-driven uncertainty and continued market volatility increases the likelihood of a slowdown in the U.S. and global economies and could impact the commercial real estate recovery, which could adversely affect valuations in our real estate portfolio. We also expect realization activity to remain muted in the face of such uncertainty and volatility. With respect to institutional fundraising, market volatility, uncertainty and geopolitical concerns have contributed to a limited number of investors pausing new commitments, but to date the overall impact on such fundraising has been immaterial. We have not seen a
Current report
broad-based
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pullback in the private wealth channel, although a prolonged period of turbulence could adversely impact fundraising in the channel.
Current report
At the same time, the announced tariffs are likely to increase construction costs and further reduce already constrained new supply starts, including in certain sectors in which our global opportunistic and Core+ real estate portfolios are concentrated, such as logistics and rental housing. This should be supportive of real estate values over time, subject to inflation continuing to subside and absent recessionary conditions. Nevertheless, in certain markets and sectors with elevated near-term supply, including U.S. logistics and multifamily, growth has slowed and may moderate further. Select life science office, traditional office and U.K. student housing investments have also been negatively impacted by challenging sector dynamics and capital markets.
Current report
Fee Related Earnings were $484.8 million for the three months ended March 31, 2025, a decrease of $101.2 million, compared to $586.1 million for the three months ended March 31, 2024. The decrease in Fee Related Earnings was primarily attributable to a decrease of $92.2 million in Fee Related Performance Revenues and a decrease of $19.6 million in Management Fees, Net.
Current report
Net Realizations were $10.6 million for the three months ended March 31, 2025, a decrease of $19.7 million, compared to $30.3 million for the three months ended March 31, 2024. The decrease in Net Realizations was primarily attributable to a decrease of $31.0 million in Realized Performance Revenues, partially offset by a decrease of $13.1 million in Realized Performance Compensation.
Current report
Realized Performance Compensation was $8.8 million for the three months ended March 31, 2025, a decrease of $13.1 million, compared to $21.9 million for the three months ended March 31, 2024. The decrease was primarily due to the decrease in Realized Performance Revenues.
Current report
Segment Distributable Earnings were $564.6 million for the three months ended March 31, 2025, an increase of $64.2 million, compared to $500.4 million for the three months ended March 31, 2024. The increase in Segment Distributable Earnings was attributable to an increase of $127.9 million in Fee Related Earnings, partially offset by a decrease of $63.7 million in Net Realizations.
Current report
Our Private Equity segment exhibited positive performance across all strategies in the first quarter of 2025. Recently announced tariffs in the U.S., however, have contributed to significant and ongoing uncertainty and volatility of markets. There is significant uncertainty as to the outcome of ongoing global trade negotiations, the extent of retaliatory measures taken by other countries and the ultimate impact on the U.S. and global economies. We believe a relatively limited proportion of the Private Equity segment’s portfolio is exposed to direct first-order impacts from the announced tariffs. A relatively small number of companies, however, could be materially impacted due to sales of physical goods into the U.S. with material international supply chain dependencies. A slowdown in the U.S. and global economies as a result of a prolonged period of policy-driven uncertainty and continued market volatility would more broadly adversely affect valuations in our Private Equity segment funds. We also expect realization activity to remain muted in the face of such uncertainty and volatility. With respect to institutional fundraising, market volatility, uncertainty and geopolitical concerns have contributed to a limited number of investors pause making new commitments, but to date the overall impact on such fundraising has been immaterial. We have not seen a broad-based pullback in the private wealth channel, although a prolonged period of turbulence could adversely impact fundraising in the channel.
Current report
Fee Related Earnings were $376.5 million for the three months ended March 31, 2025, an increase of $127.9 million, compared to $248.6 million for the three months ended March 31, 2024. The increase in Fee Related Earnings was primarily attributable to increases of $120.6 million in Management and Advisory Fees, Net and $60.9 million in Fee Related Performance Revenues, partially offset by an increase of $40.8 million in Fee Related Compensation.
Current report
Net Realizations were $188.1 million for the three months ended March 31, 2025, a decrease of $63.7 million, compared to $251.8 million for the three months ended March 31, 2024. The decrease in Net Realizations was primarily attributable to a decrease in Realized Performance Revenues of $99.8 million, partially offset by a decrease in Realized Performance Compensation of $49.3 million.
Current report
Realized Performance Compensation was $171.1 million for the three months ended March 31, 2025, a decrease of $49.3 million, compared to $220.5 million for the three months ended March 31, 2024. The decrease was primarily due to the decrease in Realized Performance Revenues.
Current report
Segment Distributable Earnings were $503.4 million for the three months ended March 31, 2025, an increase of $217.7 million, compared to $285.6 million for the three months ended March 31, 2024. The increase in Segment Distributable Earnings was attributable to increases of $72.1 million in Fee Related Earnings and $145.6 million in Net Realizations.
Current report
Our Credit & Insurance segment demonstrated strong performance in the first quarter of 2025. Credit & Insurance funds have benefited from an environment of high interest rates, although these rates have decreased relative to recent years. A further decline in interest rates and/or widening of credit spreads would make it more difficult for our credit funds to replicate recent strong performance. Recently announced tariffs in the U.S., however, have contributed to significant and ongoing uncertainty and volatility of markets. There is significant uncertainty as to the outcome of ongoing global trade negotiations, the extent of retaliatory measures taken by other countries and the ultimate impact on the U.S. and global economies. We believe a relatively limited proportion of the Credit & Insurance segment’s portfolio is exposed to direct first-order impacts from the announced tariffs. A relatively small portion of our Credit and Insurance funds’ borrowers, however, are in sectors that are more likely to be materially impacted due to sales of physical goods into the U.S. with material international supply chain dependencies. A slowdown in the U.S. and global economies as a result of a prolonged period of policy-driven uncertainty and continued market volatility would increase the risk of defaults by borrowers and could more broadly adversely affect performance in our Credit & Insurance portfolio. With respect to institutional fundraising, market volatility, uncertainty and geopolitical concerns have contributed to a limited number of investors pausing new commitments, but to date the overall impact on such fundraising has been immaterial. We have not seen a broad-based pullback in the private wealth channel, although a prolonged period of turbulence could adversely impact fundraising in the channel.
Current report
More broadly, however, we continue to see long-term structural shifts in the lending market. This has contributed to robust momentum in non-investment grade strategies, investment grade private credit and perpetual capital strategies, opportunities to generate excess returns relative to liquid markets in our non-investment grade strategies and attractive and sizeable deployment opportunities in investment-grade strategies. Moreover, rapidly expanding private credit markets and other opportunities for corporate and bank partnerships should continue to be supportive of overall transaction activity, including deployment. Given the significant opportunities in the space, competition in the private credit markets has increased and is likely to increase further as a result of product innovation and customization by private credit managers. In addition, regulatory measures aimed at reducing burden on U.S. banks, such as less onerous bank regulatory capital requirements, may also increase competition.
Current report
Fee Related Earnings were $344.4 million for the three months ended March 31, 2025, an increase of $72.1 million, compared to $272.3 million for the three months ended March 31, 2024. The increase in Fee Related Earnings was attributable to increases of $77.2 million in Management Fees, Net and $29.7 million in Fee Related Performance Revenues, partially offset by an increase of $23.1 million in Fee Related Compensation.
Current report
Realized Principal Investment Income was $107.9 million for the three months ended March 31, 2025, an increase of $104.3 million, compared to $3.6 million for the three months ended March 31, 2024. The increase was primarily due to the sale of Bistro, a portfolio visualization software platform developed by Blackstone, to Clearwater Analytics.
Current report
Realized Performance Revenues were $91.6 million for the three months ended March 31, 2025, an increase of $76.5 million, compared to $15.1 million for the three months ended March 31, 2024. The increase was primarily due to higher Realized Performance Revenues in our Mezzanine and Stressed/Distressed funds.
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n/m Not meaningful.
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Segment Distributable Earnings were $55.7 million for the three months ended March 31, 2025, an increase of $4.8 million, compared to $50.9 million for the three months ended March 31, 2024. The increase in Segment Distributable Earnings was attributable to increases of $3.3 million in Fee Related Earnings and $1.5 million in Net Realizations.
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Removed paragraphs (102)
Previous report
Effective the third quarter of 2024, the residential debt business was transferred from Real Estate to Credit & Insurance to align with a change in Blackstone’s management of those businesses. This organizational change resulted in a decrease (reflected as an outflow) for September 30, 2024 to Real Estate Total and Fee-Earning Assets Under Management and an increase (reflected as a contra-outflow) to Credit & Insurance Total and Fee-Earning Assets Under Management (the “Residential Debt Transfer”). These changes do not impact Blackstone’s Total or Fee-Earning Assets Under Management or outflows in total.
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Most major equity markets appreciated in the third quarter of 2024, reflecting continued resilience of the global economy and improving investor sentiment following central banks’ interest rate reductions. The total return of the S&P 500 index was 5.9%, led by utilities and real estate, which increased 19.4% and 17.2%, respectively. The energy sector decreased 2.3% on lower energy prices, with the price of West Texas Intermediate crude oil down 16% to $68.17 per barrel. Equity market volatility increased, with the CBOE Volatility Index up 34.5%. Credit markets appreciated as well, with the S&P leveraged loan index up 2.1% and the Credit Suisse high yield bond index up 4.8%. High yield spreads tightened by 7 basis points sequentially, while issuance increased 95% year-over-year.
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In the U.S., inflation continued to decelerate in the third quarter, with September CPI of 2.4% down sharply from the prior peak of 9.1% in June 2022 and down from 3.0% in June 2024. For the first time since March 2020, the Federal Reserve lowered the federal funds target range by 50 basis points in September to 4.75-5.00% in light of the progress on inflation and the balance of risks. The Federal Reserve has stated it is not on a preset course for reductions, but has indicated that additional, smaller cuts this year are likely if economic data remains consistent. The ten-year U.S. Treasury yield decreased 61 basis points to 3.78% but subsequently increased to 4.28% as of October 28, 2024. Meanwhile, short-term yields moved lower, with three-month SOFR down 37 basis points to 4.96% and further declined to 4.82% as of October 28, 2024.
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The advance estimate of U.S. annualized GDP growth for the third quarter was 2.8%, demonstrating continued resilience of the U.S. economy. Wages increased 4.0% year-over-year in September 2024, while re
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tail
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sales rose 1.7% year-over-year. In manufacturing, the ISM Manufacturing PMI decreased from 48.5 to 47.2 quarter over quarter. Following a strong September jobs report that exceeded economists’ expectations, job creation stalled in October 2024 amid weather disruptions and labor strikes. The unemployment rate, however, remained relatively steady at 4.1%.
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Capital markets activity levels in the U.S. improved on a year-to-date basis but remained at historically lower levels. While rising 68% year-over-year, U.S. initial public offering volumes year to date remained 87% below the comparable period in 2021. U.S. announced merger and acquisition deal volumes year to date similarly increased 17% year-over-year but remained 42% below the comparable period in 2021.
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Amid moderating inflation, declining cost of capital and a healthy labor market, many economic analysts forecast a soft-landing for the U.S. economy. While this should support global economic growth over time, the outlook remains uncertain given continued geopolitical turbulence, including ongoing wars in the Middle East and Ukraine, concern over whether China’s stimulus measures will effectively stabilize slowing economic growth in the country, and upcoming elections. In the U.S., the Presidential election creates the potential for governmental policy and regulatory changes in a variety of areas, which could impact such economic outlook.
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Effective during the three months ended June 30, 2024, GP Stakes is included in our Private Equity segment and Harvest is included in our Multi-Asset Investing segment. Previously, GP Stakes and Harvest were included in our Multi-Asset Investing and Credit & Insurance segments, respectively. All prior periods have been recast to reflect this reclassification.
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Total Assets Under Management refers to the assets we manage. We believe this measure is useful to stockholders as it represents the total capital for which we provide investment management services. Our Total Assets Under Management equals the sum of:
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Fee-Earning Assets Under Management refers to the assets we manage on which we derive management fees and/or performance revenues. We believe this measure is useful to stockholders as it provides insight into the capital base upon which we can earn management fees and/or performance revenues. Our Fee-Earning Assets Under Management equals the sum of:
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Each of our segments may include certain Fee-Earning Assets Under Management on which we earn performance revenues but not management fees.
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For our carry funds, Total Assets Under Management includes the fair value of the investments held and uncalled capital commitments, whereas Fee-Earning Assets Under Management may include the total amount of capital commitments or the remaining amount of invested capital at cost depending on whether the investment period has expired or as specified by the fee terms of the fund. As such, in certain carry funds Fee-Earning Assets Under Management may be greater than Total Assets Under Management when the aggregate fair value of the remaining investments is less than the cost of those investments.
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Three Months Ended September 30, 2024, Compared to Three Months Ended September 30, 2023
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Other Income (Loss)
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Nine Months Ended September 30, 2024, Compared to Nine Months Ended September 30, 2023
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Revenues
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Revenues were $10.1 billion for the nine months ended September 30, 2024, an increase of $3.4 billion, compared to $6.7 billion for the nine months ended September 30, 2023. The increase in Revenues was primarily attributable to an increase of $3.1 billion in Investment Income (Loss), which was primarily composed of an increase of $3.1 billion in Unrealized Investment Income (Loss).
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The $3.1 billion increase in Unrealized Investment Income (Loss) was primarily attributable to net unrealized appreciation of investments in the nine months ended September 30, 2024 compared to net unrealized depreciation of investments in the nine months ended September 30, 2023. Principal drivers were:
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Expenses
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Expenses were $5.3 billion for the nine months ended September 30, 2024, an increase of $1.3 billion, compared to $4.0 billion for the nine months ended September 30, 2023. The increase was primarily attributable to an increase of $1.2 billion in Total Compensation and Benefits, of which $1.0 billion was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily due to the increase in Investment Income (Loss), on which a portion of compensation is based.
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Other Income (Loss)
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Other Income (Loss) was $70.0 million for the nine months ended September 30, 2024, a decrease of $34.4 million, compared to $104.4 million for the nine months ended September 30, 2023. The decrease in Other Income (Loss) was principally due to a decrease of $32.5 million in Net Gains (Losses) from Fund Investment Activities.
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The decrease in Net Gains (Losses) from Fund Investment Activities was driven by a decrease of $57.0 million in our Private Equity segment, partially offset by an increase of $27.3 million in our Real Estate segment. The decrease in our Private Equity segment was primarily due to the deconsolidation of a fund and the increase in our Real Estate segment was primarily due to lower unrealized depreciation of investments in our consolidated funds.
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Blackstone’s Provision for Taxes for the nine months ended September 30, 2024 was $789.2 million, an increase of $321.7 million, compared to $467.5 million for the nine months ended September 30, 2023. This resulted in an effective tax rate of 16.1% and 16.7%, based on our Income Before Provision for Taxes of $4.9 billion and $2.8 billion for the nine months ended September 30, 2024 and 2023, respectively.
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Fee-Earning Assets Under Management were $820.5 billion at September 30, 2024, an increase of $11.8 billion compared to $808.7 billion at June 30, 2024. The net increase was due to:
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Fee-Earning Assets Under Management were $820.5 billion at September 30, 2024, an increase of $57.8 billion compared to $762.6 billion at December 31, 2023. The net increase was due to:
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Total Assets Under Management were $1,107.6 billion at September 30, 2024, an increase of $31.3 billion compared to $1,076.4 billion at June 30, 2024. The net increase was due to:
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Total Assets Under Management were $1,107.6 billion at September 30, 2024, an increase of $67.4 billion compared to $1,040.2 billion at December 31, 2023. The net increase was due to:
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Fee-Earning Assets Under Management inflows in Corporate Private Equity exceed Total Assets Under Management inflows primarily due to the commencement of the investment period of BCP IX and BETP IV in the nine months ended September 30, 2024. Fee-Earning Assets Under Management inflows are reported when a fund’s investment period commences, whereas Total Assets Under Management activity is reported at each fund closing.
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Total Assets Under Management realizations in our Private Equity segment generally represents the total proceeds and typically exceeds the Fee-Earning Assets Under Management realizations. Fee-Earning Assets Under Management generally represents only the invested capital.
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Fee-Earning Assets Under Management in Corporate Private Equity is reported based on committed or remaining invested capital, whereas Total Assets Under Management is reported based on fair value and remaining available capital. Total Assets Under Management market activity therefore exceeds Fee-Earning Assets Under Management market activity.
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Total Assets Under Management inflows in our Credit & Insurance segment direct lending funds exceed the Fee-Earning Assets Under Management inflows because Total Assets Under Management inflows are reported at their gross value while, for certain funds, Fee-Earning Assets Under Management inflows are reported as net assets, which is the basis on which fees are charged.
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Perpetual Capital Total Assets Under Management were $434.7 billion as of September 30, 2024, an increase of $38.4 billion, compared to $396.3 billion as of December 31, 2023. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $31.6 billion and $18.2 billion, respectively, partially offset by a decrease in our Real Estate segment of $11.6 billion. Principal drivers of the increases and decrease were:
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Selected Perpetual Capital Strategies (l)
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Segment Distributable Earnings were $540.4 million for the three months ended September 30, 2024, a decrease of $16.8 million, compared to $557.2 million for the three months ended September 30, 2023. The decrease in Segment Distributable Earnings was attributable to a decrease of $45.3 million in Fee Related Earnings, partially offset by an increase of $28.5 million in Net Realizations.
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Our global opportunistic and Core+ real estate portfolios are concentrated in high-conviction sectors with favorable long-term fundamentals. These sectors, including digital infrastructure, logistics and rental housing, have continued to support performance in our Real Estate segment. In particular, our data center platform was the single largest driver of appreciation in our Real Estate business and the firm in the third quarter of 2024. More broadly, we believe our Real Estate segment is well positioned to benefit from the expected increase in demand for digital infrastructure over time.
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We believe a meaningful decline in the cost of capital has positioned commercial real estate for increasing values over time and improving investor sentiment toward the sector. Moreover, real estate values should further be supported by the material decrease in new construction in certain sectors, including logistics and rental housing, which will contribute to further constraints on future supply. Growth in certain markets and sectors with elevated near-term supply, including U.S. logistics and multifamily, has slowed, however, and may moderate further. Challenges from new supply and muted demand have also pressured life science office and have negatively impacted valuations of such assets. Weak fundamentals have also persisted in the traditional office market and more troubled assets are likely to emerge. While our NYSE-listed REIT, Blackstone Mortgage Trust (“BXMT”), is mostly focused in sectors with strong long-term fundamentals, its office exposure is higher than in our real estate equity business. Although this has posed challenges for the vehicle, its focus on senior loans has been an important factor in mitigating the adverse impact of the sector’s dislocation.
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In addition, liquidity in the private market has also improved meaningfully, providing the foundation for greater transaction activity in the future. Ahead of an anticipated market recovery, our Real Estate funds invested or committed $22.4 billion in the first nine months of 2024, approximately two-and-a-half times the same period in 2023. These positive signs have coincided with improving investor sentiment in the third quarter, reflected in an over 90% decline in BREIT repurchase requests in September 2024 relative to their peak in January 2023. We believe that flows in our perpetual capital strategies could benefit from continued improvement of the market environment.
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Fee Related Earnings were $500.7 million for the three months ended September 30, 2024, a decrease of $45.3 million, compared to $546.0 million for the three months ended September 30, 2023. The decrease in Fee Related Earnings was primarily attributable to a decrease of $55.4 million in Fee Related Performance Revenues and an increase of $17.7 million in Other Operating Expenses, partially offset by a decrease of $32.8 million in Fee Related Compensation.
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Previous wording
Our Real Estate business is a global leader in real estate investing. Our Real Estate segment operates as one globally integrated business, with investments across the globe, including in the Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for our investors.
Current wording
Our Real Estate business is a global leader in real estate investing and operates as one globally integrated business, with investments across the globe, including in the Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for our investors.
Previous wording
Our Core+ real estate strategy invests in substantially stabilized real estate globally primarily through perpetual capital vehicles. Our Core+ real estate strategy includes our (a) Blackstone Property Partners (“BPP”) funds, which focus on high-quality assets in the Americas, Europe and Asia and (b) our non-listed REIT, Blackstone Real Estate Income Trust, Inc. (“BREIT”) and our Blackstone European Property Income (“BEPIF”) vehicles, which provide income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively.
Current wording
Our Core+ real estate strategy invests in substantially stabilized real estate globally primarily through perpetual capital vehicles. The strategy includes our (a) Blackstone Property Partners (“BPP”) funds, which are focused on high-quality assets in the Americas, Europe and Asia and (b) our non-listed real estate investment trust (“REIT”) Blackstone Real Estate Income Trust, Inc. (“BREIT”) and our Blackstone European Property Income (“BEPIF”) vehicles, which provide income-focused individual investors access to institutional quality real estate primarily in the Americas and Europe, respectively.
Previous wording
Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate and mezzanine loans and liquid real estate-related debt securities. The BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds, capital managed on behalf of our Credit & Insurance segment’s insurance platform and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed REIT.
Current wording
Our Blackstone Real Estate Debt Strategies (“BREDS”) platform primarily targets real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate and mezzanine loans and liquid real estate-related debt securities. The BREDS platform includes high-yield real estate debt funds, liquid real estate debt funds, capital managed on behalf of our Credit & Insurance segment, and Blackstone Mortgage Trust, Inc. (“BXMT”), a NYSE-listed REIT.
Previous wording
Our Private Equity segment includes our Corporate Private Equity business, which consists of: (a) our global private equity funds, Blackstone Capital Partners (“BCP”), (b) our sector-focused funds, including our energy- and energy transition-focused funds, Blackstone Energy Transition Partners (“BETP”), (c) our Asia-focused private equity funds, Blackstone Capital Partners Asia and (d) our core private equity funds, Blackstone Core Equity Partners (“BCEP”). Our Private Equity segment also includes (a) our opportunistic investment platform that invests flexibly across asset classes, industries and geographies, Blackstone Tactical Opportunities (“Tactical Opportunities”), (b) our secondary funds business, Strategic Partners Fund Solutions (“Strategic Partners”), and our business that targets minority investments in the general partners of private equity and other private market alternative asset management firms (“GP Stakes”) as “Secondaries,” (c) our infrastructure-focused funds, Blackstone Infrastructure Partners (“BIP”), including vehicles primarily focused in the U.S. (“BIP U.S.”) and in Europe (“BIP Europe”), (d) our life sciences investment platform, Blackstone Life Sciences (“BXLS”), (e) our growth equity investment platform, Blackstone Growth (“BXG”), (f) our investment platform offering eligible individual investors access to Blackstone’s private equity capabilities, the Blackstone Private Equity Strategies Fund Program (“BXPE”), (g) our multi-asset investment program for eligible high net worth investors offering exposure to certain of Blackstone’s key illiquid investment strategies through a single commitment, Blackstone Total Alternatives Solution (“BTAS”) and (h) our capital markets services business, Blackstone Capital Markets (“BXCM”).
Current wording
Our Private Equity Strategies include: (a) our Corporate Private Equity business (described below), (b) our opportunistic investment platform that invests flexibly across asset classes, industries and geographies (Blackstone Tactical Opportunities or “Tactical Opportunities”), (c) our life sciences investment platform (Blackstone Life Sciences or “BXLS”), (d) our growth equity investment platform (Blackstone Growth or “BXG”) and (e) a private wealth-focused platform offering eligible individual investors access to Blackstone’s private equity capabilities (Blackstone Private Equity Strategies Fund or “BXPE”).
Previous wording
We are a global leader in private equity investing. Our Corporate Private Equity business pursues transactions across industries on a global basis. It strives to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation. Corporate Private Equity’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing.
Current wording
We are a global leader in private equity investing. Our Corporate Private Equity business pursues transactions across industries on a global basis. It strives to create value by investing in great businesses where our capital, strategic insight, global relationships and operational support can drive transformation. Corporate Private Equity’s investment strategies and core themes continually evolve in anticipation of, or in response to, changes in the global economy, local markets, regulation, capital flows and geopolitical trends. We seek to construct a differentiated portfolio of investments with a well-defined, post-acquisition value creation strategy. Similarly, we seek investments that can generate strong unlevered returns regardless of entry or exit cycle timing. BCEP pursues control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than traditional private equity.
Previous wording
Secondaries is comprised of our Strategic Partners and GP Stakes businesses. Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and co-investments. Effective the second quarter of 2024, our GP Stakes business moved from our Multi-Asset Investment segment to our Private Equity segment. GP Stakes targets minority investments in the general partners of private equity and other private market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.
Current wording
Strategic Partners is a total fund solutions provider. As a secondary investor, it acquires interests in high-quality private funds from original holders seeking liquidity. Strategic Partners focuses on a range of opportunities in underlying funds such as private equity, real estate, infrastructure, venture and growth capital, credit and other types of funds, as well as general partner-led transactions and primary investments and co-investments with financial sponsors. Strategic Partners also provides investment advisory services to separately managed account clients investing in primary and secondary investments in private funds and co-investments. Blackstone GP Stakes targets minority investments in the general partners of private equity and other private market alternative asset management firms globally, with a focus on delivering a combination of recurring annual cash flow yield and long-term capital appreciation.
Previous wording
BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield.
Current wording
BIP targets a diversified mix of core+, core and public-private partnership investments across all infrastructure sectors, including energy infrastructure, transportation, digital infrastructure and water and waste. BIP applies a disciplined, operationally intensive investment approach to investments, seeking to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. BXINFRA invests primarily in infrastructure equity, secondaries and credit strategies, leveraging Blackstone’s infrastructure talent and investment capabilities to create an attractive portfolio of alternative infrastructure investments.
Previous wording
BXPE invests primarily in privately negotiated, equity-oriented investments, leveraging the talent and investment capabilities of Blackstone’s private equity platform to create an attractive portfolio of alternative investments diversified across geographies and sectors for eligible individual investors.
Current wording
BXPE invests primarily in privately negotiated, equity-oriented investments, leveraging Blackstone’s private equity talent and investment capabilities to create an attractive portfolio of alternative investments diversified across geographies and sectors.
Previous wording
Effective January 1, 2024, our corporate credit (formerly Blackstone Credit or BXC), asset based finance and insurance (“insurance platform” and formerly Blackstone Insurance Solutions or BIS) groups were integrated into a single new unit, Blackstone Credit & Insurance (“BXCI”). BXCI offers its clients and borrowers a comprehensive solution across corporate and asset based, as well as investment grade and non-investment grade, private credit. BXCI is one of the largest credit-oriented managers and CLO managers in the world. The investment portfolios of the funds BXCI’s credit platform manages or sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.
Current wording
Our Credit & Insurance segment (“BXCI”) offers its clients and borrowers a comprehensive solution across corporate and asset based credit, including investment grade and non-investment grade. BXCI is one of the largest credit managers and CLO managers in the world. The investment portfolios BXCI’s credit platform manages or sub-advises consist primarily of loans and securities of non-investment and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.
Previous wording
BXCI is organized into three overarching credit investing strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. The private corporate credit strategies include mezzanine and direct lending funds and stressed/distressed strategies. The direct lending funds include Blackstone Private Credit Fund (“BCRED”) and Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”). The liquid corporate credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and separately managed accounts. The infrastructure and asset based credit strategies include our private placement strategies, energy strategies (including the sustainable resources platform) and asset based finance strategies focused on privately originated, income-oriented credit assets secured by physical, financial or residential real estate collateral.
Current wording
BXCI is organized into three overarching credit investing strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. The private corporate credit strategies include mezzanine and direct lending funds, private placement strategies, stressed/distressed strategies and SMAs. The direct lending funds include Blackstone Private Credit Fund (“BCRED”), Blackstone Secured Lending Fund (“BXSL”), both of which are business development companies (“BDCs”), as well as Blackstone European Private Credit Fund (“ECRED”).
Previous wording
Our insurance platform focuses on providing full investment management services for insurers’ general accounts, seeking to deliver customized and diversified portfolios that include allocations to Blackstone managed products and strategies across asset classes and Blackstone’s private credit origination capabilities. Through this platform, we provide our clients tailored portfolio construction and strategic asset allocation, seeking to generate risk-managed, capital-efficient returns, diversification and capital preservation that meets clients’ objectives. We also provide similar services to clients through separately managed accounts or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles. Through the insurance platform, we currently manage assets for clients that include Corebridge Financial Inc., Everlake Life Insurance Company, Fidelity & Guaranty Life Insurance Company and Resolution Life Group, among others.
Current wording
Our insurance platform focuses on providing full investment management services for insurance and reinsurance accounts, seeking to deliver customized and diversified portfolios consisting primarily of investment grade credit, including through Blackstone’s private credit origination capabilities. Through this platform, we provide our clients tailored portfolio construction, strategic asset allocation, and specialized analytical tools. While focusing on policyholder protection, we seek to achieve risk-managed, liability-matched and capital-efficient returns, as well as diversification and capital preservation. We also provide similar services to clients through SMAs or by sub-managing assets for certain insurance-dedicated funds and special purpose vehicles.
Previous wording
Effective the first quarter of 2024, our Hedge Fund Solutions segment was renamed “Multi-Asset Investing.” Our Multi-Asset Investing segment seeks to grow investors’ assets through investment strategies designed to deliver, primarily through the public markets, compelling risk-adjusted returns. Blackstone Multi-Asset Investing (“BXMA”) is the world’s largest discretionary allocator to hedge funds. BXMA is organized into two primary platforms: Absolute Return and Multi-Strategy. Absolute Return is designed to pursue consistent, efficient and diversifying returns across multiple market environments. Absolute Return manages a broad range of commingled and customized fund solutions, a seeding business and registered funds that provide alternative asset solutions through daily liquidity products. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing, including structured risk transfer and equity capital markets strategies. Effective the second quarter of 2024, our Multi-Asset Investing segment also includes a platform managed by Harvest Fund Advisors LLC (“Harvest”), which was previously part of the Credit & Insurance segment. Harvest primarily invests in publicly traded energy infrastructure, renewables and master limited partnerships holding midstream energy assets in North America.
Current wording
Our Multi-Asset Investing segment (“BXMA”) is the world’s largest discretionary allocator to hedge funds and seeks to grow investors’ assets through investment strategies designed to deliver, primarily through the public markets, compelling risk-adjusted returns.
Previous wording
Outside of the U.S., many central banks have been loosening monetary policy. The European Central Bank lowered its deposit facility rate by 25 basis points in the third quarter to 3.50% and an additional 25 basis points to 3.25% in October, its first consecutive reduction since 2011. Eurozone inflation slowed to 1.7% year-over-year in September 2024, down from a peak of 10.6% in October 2022 and from 2.5% in June 2024. The Bank of England also lowered its bank rate by 25 basis points in the third quarter to 5.0%, as U.K. inflation slowed to 1.7% year-over-year in September 2024—down from a peak of 11.1% and 2.0% in October 2022 and June 2024, respectively. By contrast, the Bank of Japan further increased its policy rate to 0.25% in July following its first increase in 17 years in March 2024.
Current wording
Outside of the U.S., many major central banks have continued to loosen monetary policy. The European Central Bank lowered its deposit facility rate by 50 basis points in the first quarter to 2.5% and further to 2.25% in April. Eurozone inflation slowed to 2.2% year over year in March 2025, down from a peak of 10.6% in October of 2022 and down from 2.4% in December of 2024. The Bank of England also lowered its bank rate by 25 basis points in the first quarter to 4.5%. Inflation in the U.K. slowed to 2.6% year over year in March 2025 compared to a peak of 11.1% in October of 2022, although was up slightly from 2.5% in December of 2024. In contrast, the Bank of Japan further increased its policy rate to 0.50% in January 2025, the highest level since September 2008.
Previous wording
Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the payable under the tax receivable agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and Distributable Earnings reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related and Non-Recurring Items where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. Management believes that including the amount payable under the tax receivable agreement and utilizing the current income tax provision adjusted as described above when calculating Distributable Earnings is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to stockholders.
Current wording
Taxes and Related Payables represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and including the payable under the tax receivable agreement. Further, the current tax provision utilized when calculating Taxes and Related Payables and Distributable Earnings reflects the benefit of deductions available to the company on certain expense items that are excluded from the underlying calculation of Segment Distributable Earnings and Total Segment Distributable Earnings, such as equity-based compensation charges and certain Transaction-Related and Non-Recurring Items where there is a current tax provision or benefit. The economic assumptions and methodologies that impact the implied income tax provision are the same as those methodologies and assumptions used in calculating the current income tax provision for Blackstone’s Consolidated Statements of Operations under GAAP, excluding the impact of divestitures and accrued tax contingencies and refunds which are reflected when paid or received. The Payable under the Tax Receivable Agreement reflects the expected amount of tax savings generated in the period that parties to the Tax Receivable Agreement are entitled to receive in future periods. Management believes that including the amount payable under the tax receivable agreement and utilizing the current income tax provision adjusted as described above when calculating Distributable Earnings is meaningful as it increases comparability between periods and more accurately reflects earnings that are available for distribution to stockholders.
Previous wording
Realized Performance Compensation reflects an increase in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them. The expectation is that for the full year 2024, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year. During the three and nine months ended September 30, 2024, Realized Performance Compensation increased by $21.6 million and $77.6 million, respectively, and Fee Related Compensation decreased by $21.3 million and $63.8 million, respectively. These changes to Realized Performance Compensation and Fee Related Compensation reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision for Taxes and Distributable Earnings in the three and nine months ended September 30, 2024. These changes are not expected to impact Income Before Provision for Taxes and Distributable Earnings for the year ending December 31, 2024. Changes to Realized Performance Compensation and Fee Related Compensation had an impact on individual quarters in 2023 but did not impact Income Before Provision for Taxes and Distributable Earnings for the year ended December 31, 2023.
Current wording
Realized Performance Compensation reflects an increase, pursuant to a separate compensation program, in the aggregate Realized Performance Compensation paid to certain of our professionals above the amounts allocable to them based upon the percentage participation in the relevant performance plans previously awarded to them. The expectation is that for the full year 2025, Fee Related Compensation will be decreased by the total amount of additional Performance Compensation awarded for the year in respect of this compensation program. For the three months ended March 31, 2025, Realized Performance Compensation was increased by an aggregate of $21.3 million and Fee Related Compensation was decreased by $21.3 million. These changes to Realized Performance Compensation and Fee Related Compensation reduced Net Realizations, increased Fee Related Earnings and had a negative impact to Income Before Provision (Benefit) for Taxes and Distributable Earnings in the three months ended March 31, 2025. These changes are not expected to impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the year ending December 31, 2025. These changes had an impact on individual quarters in 2024 but did not impact Income Before Provision (Benefits) for Taxes and Distributable Earnings for the year ended December 31, 2024.
Previous wording
Our calculations of Total Assets Under Management and Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. In addition, our calculation of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel, regardless of whether such commitments or invested capital are subject to fees. Our definitions of Total Assets Under Management and Fee-Earning Assets Under Management are not based on any definition of Total Assets Under Management and Fee-Earning Assets Under Management that is set forth in the agreements governing the investment funds that we manage.
Current wording
Our measurement of Total Assets Under Management includes commitments to, and the fair value of, invested capital in our funds from Blackstone and our personnel. Our calculation of Total Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. Our definition of Total Assets Under Management differs from the manner in which affiliated investment advisors report regulatory assets under management and may differ from the definition set forth in the agreements governing the vehicles we manage or advise.
Previous wording
Our carry funds are commitment-based drawdown structured funds that do not permit investors to redeem their interests at their election. Our funds of hedge funds, hedge funds, funds structured like hedge funds and other open-ended funds in our Real Estate, Credit & Insurance and Multi-Asset Investing segments generally have structures that afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our perpetual capital vehicles where redemption rights exist, Blackstone has the ability to fulfill redemption requests only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, or (b) to the extent there is sufficient new capital. Investment advisory agreements related to certain separately managed accounts in our Credit & Insurance and Multi-Asset Investing segments, excluding separately managed accounts in our insurance platform, may generally be terminated by an investor on 30 to 95 days’ notice. Separately managed accounts in our insurance platform can generally only be terminated for long-term underperformance, cause and certain other limited circumstances, in each case subject to Blackstone’s right to cure.
Current wording
Commitment-based drawdown structured funds generally do not permit investors to redeem their interests at their election. Certain of our open-ended vehicles generally afford an investor the right to withdraw or redeem their interests on a periodic basis (for example, annually, quarterly or monthly), typically with 2 to 95 days’ notice, depending on the fund and the liquidity profile of the underlying assets. In our perpetual capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Investment advisory agreements related to certain SMAs in our Credit & Insurance and Multi-Asset Investing segments, excluding SMAs in our insurance platform, may generally be terminated by an investor on 15 to 95 days’ notice. SMAs in our insurance platform can generally only be terminated for long-term underperformance, cause and certain other limited circumstances, in each case subject to Blackstone’s right to cure.
Previous wording
Perpetual Capital refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring revenues in a different manner than traditional fund structures.
Current wording
“Perpetual Capital” refers to the component of assets under management with an indefinite term, that is not in liquidation, and for which there is no requirement to return capital to investors through redemption requests in the ordinary course of business, except where funded by new capital inflows or where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.
Previous wording
Invested Performance Eligible Assets Under Management represents invested capital at fair value, including capital closed for funds whose investment period has not yet commenced, on which performance revenues could be earned if certain hurdles are met. We believe Invested Performance Eligible Assets Under Management is useful to stockholders as it provides insight into the capital deployed that has the potential to generate performance revenues.
Current wording
Invested Performance Eligible Assets Under Management represents invested capital at fair value on which performance revenues could be earned if certain hurdles are met. We believe Invested Performance Eligible Assets Under Management is useful to stockholders as it provides insight into the capital deployed that has the potential to generate performance revenues.
Previous wording
The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three and nine months ended September 30, 2024 and 2023:
Current wording
The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three months ended March 31, 2025 and 2024:
Previous wording
Revenues were $3.7 billion for the three months ended September 30, 2024, an increase of $1.1 billion, compared to $2.5 billion for the three months ended September 30, 2023. The increase in Revenues was primarily attributable to an increase of $1.1 billion in Investment Income (Loss), which was primarily due to an increase of $1.1 billion in Unrealized Investment Income (Loss).
Current wording
Revenues were $3.3 billion for the three months ended March 31, 2025, a decrease of $398.4 million, compared to $3.7 billion for the three months ended March 31, 2024. The decrease in Revenues was primarily attributable to a decrease of $469.2 million in Investment Income, which was primarily due to a decrease of $485.7 million in Unrealized Investment Income.
Previous wording
The $1.1 billion increase in Unrealized Investment Income (Loss) was primarily attributable to higher unrealized appreciation of investments in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Principal drivers were:
Current wording
The $485.7 million decrease in Unrealized Investment Income was primarily attributable to lower net unrealized appreciation of investments in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. Principal drivers were:
Previous wording
Expenses were $1.9 billion for the three months ended September 30, 2024, an increase of $521.2 million, compared to $1.4 billion for the three months ended September 30, 2023. The increase was primarily attributable to an increase of $494.2 million in Total Compensation and Benefits, of which $454.4 million was an increase in Performance Allocations Compensation. The increase in Performance Allocations Compensation was primarily due to an increase in Investment Income (Loss), on which a portion of compensation is based.
Current wording
Expenses were $1.9 billion for the three months ended March 31, 2025, an increase of $104.0 million, compared to $1.8 billion for the three months ended March 31, 2024. The increase was primarily attributable to an increase of $123.5 million in Total Compensation and Benefits, of which $234.6 million was an increase in Compensation, partially offset by a decrease of $94.3 million in Performance Allocations Compensation. The increase in Compensation was primarily due to the increase in Management and Advisory Fees, Net, on which a portion of compensation is based. The decrease in Performance Allocations Compensation was primarily due to a decrease in Investment Income, on which a portion of Compensation is based.
Previous wording
Other Income (Loss) was $42.8 million for the three months ended September 30, 2024, an increase of $91.9 million, compared to $(49.1) million for the three months ended September 30, 2023. The increase in Other Income (Loss) was due to an increase of $91.9 million in Net Gains (Losses) from Fund Investment Activities.
Current wording
Other Income (Loss) was $57.6 million for the three months ended March 31, 2025, an increase of $75.3 million, compared to $(17.8) million for the three months ended March 31, 2024. The increase in Other Income (Loss) was due to an increase of $75.3 million in Net Gains (Losses) from Fund Investment Activities.
Previous wording
The increase in Net Gains (Losses) from Fund Investment Activities was principally driven by increases of $81.5 million and $13.3 million in our Real Estate and Private Equity segments, respectively. The increase in our Real Estate segment was primarily driven by lower unrealized depreciation of investments in our consolidated funds. The increase in our Private Equity segment was primarily driven by higher unrealized appreciation of investments in our consolidated funds, partially offset by deconsolidation of a fund.
Current wording
The increase in Net Gains (Losses) from Fund Investment Activities was primarily driven by an increase of $60.5 million in our Real Estate segment which was primarily driven by net unrealized appreciation of investments in our consolidated funds in the three months ended March 31, 2025 compared to net unrealized depreciation of investments in our consolidated funds in the three months ended March 31, 2024.
Previous wording
Blackstone’s Provision for Taxes for the three months ended September 30, 2024 was $245.3 million, an increase of $48.7 million, compared to $196.6 million for the three months ended September 30, 2023. This resulted in an effective tax rate of 13.6% and 17.6%, based on our Income Before Provision for Taxes of $1.8 billion and $1.1 billion for the three months ended September 30, 2024 and 2023, respectively.
Current wording
Blackstone’s Provision for Taxes for the three months ended March 31, 2025 was $243.8 million, a decrease of $39.8 million, compared to $283.7 million for the three months ended March 31, 2024. This resulted in an effective tax rate of 16.8% and 15.1%, based on our Income Before Provision for Taxes of $1.5 billion and $1.9 billion for the three months ended March 31, 2025 and 2024, respectively.
Previous wording
The decrease in Blackstone’s effective tax rate for the three months ended September 30, 2024, compared to the three months ended September 30, 2023, relates primarily to the deferred tax impact of Blackstone’s investment in its operating partnerships.
Current wording
The increase in Blackstone’s effective tax rate for the three months ended March 31, 2025, compared to the three months ended March 31, 2024, relates primarily to the deferred tax impact of Blackstone’s investment in its operating partnerships.
Previous wording
Blackstone had a corporate alternative minimum tax (“CAMT”) liability for the nine months ended September 30, 2024 as calculated pursuant to the Inflation Reduction Act. Blackstone will continue to assess the overall impact to its Provision for Taxes upon the issuance of applicable additional guidance by the U.S. Treasury Department related to interpretations of CAMT. For the nine months ended September 30, 2024, there is no meaningful CAMT impact reflected in the Provision for Taxes given current year tax payments made under CAMT are permitted to be carried forward and used as credits in future years resulting in a deferred tax benefit.
Current wording
Blackstone had a corporate alternative minimum tax (“CAMT”) liability for the March 31, 2025 as calculated pursuant to the Inflation Reduction Act. Blackstone will continue to assess the overall impact to its Provision for Income Tax upon the issuance of applicable additional guidance by the U.S. Treasury Department related to interpretations of CAMT. For the three months ended March 31, 2025, there is no meaningful CAMT impact reflected in the Provision for Income Taxes given current year tax payments made under CAMT are permitted to be carried forward and used as credits in future years resulting in a deferred tax benefit.
Previous wording
Additional information regarding our income taxes can be found in Note 13. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing.
Current wording
Additional information regarding our income taxes can be found in Note 12. “Income Taxes” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing.
Previous wording
The Net Loss Attributable to Redeemable Non-Controlling Interests in Consolidated Entities and Net Income Attributable to Non-Controlling Interests in Consolidated Entities is attributable to the consolidated Blackstone funds. The amounts of these items vary directly with the performance of the consolidated Blackstone funds and largely eliminate the amount of Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities from the Net Income Attributable to Blackstone Inc.
Current wording
The Net Income Attributable to Redeemable Non-Controlling Interests in Consolidated Entities and Net Income Attributable to Non-Controlling Interests in Consolidated Entities is attributable to the consolidated Blackstone Funds. The amounts of these items vary directly with the performance of the consolidated Blackstone funds and largely eliminate the amount of Other Income (Loss) – Net Gains (Losses) from Fund Investment Activities from the Net Income Attributable to Blackstone Inc.
Previous wording
For the three months ended September 30, 2024 and 2023, the Net Income Before Taxes allocated to Blackstone personnel and other limited partners of Blackstone Holdings was 38.4% and 39.1%, respectively. For the nine months ended September 30, 2024 and 2023, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of Blackstone Holdings was 38.6% and 39.3%, respectively. The respective decreases of 0.7% and 0.7% were primarily due to the conversion of Blackstone Holdings Partnership Units to shares of common stock and the vesting of shares of common stock.
Current wording
For the three months ended March 31, 2025 and 2024, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of Blackstone Holdings was 38.0% and 38.8%, respectively. The decrease of 0.8% was primarily due to the conversion of Blackstone Holdings Partnership Units to shares of common stock and the vesting of shares of common stock.
Previous wording
The following graphs and tables summarize the Fee-Earning Assets Under Management by Segment and Total Assets Under Management by Segment, followed by a rollforward of activity for the three and nine months ended September 30, 2024 and 2023. For a description of how Assets Under Management and Fee-Earning Assets Under Management are determined, please see “—Key Financial Measures and Indicators — Operating Metrics — Total and Fee-Earning Assets Under Management.”
Current wording
The following graphs and tables summarize the Fee-Earning Assets Under Management by Segment and Total Assets Under Management by Segment, followed by a rollforward of activity for the three months ended March 31, 2025 and 2024. For a description of how Assets Under Management and Fee-Earning Assets Under Management are determined, please see “— Key Financial Measures and Indicators — Operating Metrics — Total and Fee-Earning Assets Under Management.”
Previous wording
The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of September 30, 2024 and 2023. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 17. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “Part I. Item 1. Financial Statements” of this filing. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.
Current wording
The following table presents the Accrued Performance Revenues, net of performance compensation, of the Blackstone Funds as of March 31, 2025 and 2024. Net Accrued Performance Revenues presented do not include clawback amounts, if any, which are disclosed in Note 16. “Commitments and Contingencies — Contingencies — Contingent Obligations (Clawback)” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” of this filing. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues.
Previous wording
For the twelve months ended September 30, 2024, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $2.4 billion, partially offset by net realized distributions of $1.8 billion.
Current wording
For the twelve months ended March 31, 2025, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $2.9 billion, partially offset by net realized distributions of $2.6 billion.
Previous wording
Perpetual Capital Total Assets Under Management were $434.7 billion as of September 30, 2024, an increase of $16.2 billion, compared to $418.6 billion as of June 30, 2024. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $18.2 billion and $7.9 billion, respectively, partially offset by a decrease in our Real Estate segment of $10.0 billion. Principal drivers of the increases and decrease were:
Current wording
Perpetual Capital Total Assets Under Management were $464.4 billion as of March 31, 2025, an increase of $19.6 billion, compared to $444.8 billion as of December 31, 2024. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $9.5 billion and $8.3 billion, respectively. Principal drivers of these increases were:
Previous wording
Fund returns information for our significant funds is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
Current wording
Fund returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
Previous wording
The following tables present the investment record of our significant carry/drawdown funds and selected perpetual capital strategies from inception through September 30, 2024:
Current wording
The following tables present the investment record of our significant and formerly significant carry/drawdown funds and select perpetual capital strategies from inception through March 31, 2025:
Previous wording
Fee Related Performance Revenues were $72.4 million for the three months ended September 30, 2024, a decrease of $55.4 million, compared to $127.8 million for the three months ended September 30, 2023. The decrease was primarily due to lower Fee Related Performance Revenues in BPP and co-investment.
Current wording
Fee Related Performance Revenues were $37.8 million for the three months ended March 31, 2025, a decrease of $92.2 million, compared to $130.0 million for the three months ended March 31, 2024. The decrease was primarily due to lower Fee Related Performance Revenues in BPP.
Previous wording
Management Fees, Net were $2.2 billion for the nine months ended September 30, 2024, an increase of $28.6 million, compared to $2.1 billion for the nine months ended September 30, 2023, primarily driven by an increase in Transaction and Other Fees, Net, partially offset by a decrease in Base Management Fees. Transaction and Other Fees, Net increased $70.8 million primarily due to an increase in acquisition fees paid to the advisor of our BREP funds. Base Management Fees decreased $60.7 million primarily due to a decrease in Fee-Earning Assets Under Management in BREIT and BPP and co-investment.
Current wording
Management Fees, Net were $700.8 million for the three months ended March 31, 2025, a decrease of $19.6 million, compared to $720.4 million for the three months ended March 31, 2024, primarily driven by a decrease in Base Management Fees, partially offset by an increase in Transaction and Other Fees, Net. Base Management Fees decreased $29.6 million primarily due to a decrease in Fee-Earning Assets Under Management in Core+ and BREDS. Transaction and Other Fees, Net increased $11.0 million primarily due to an increase in acquisition fees paid to the advisor of our BREP funds.
Previous wording
Realized Performance Revenues were $149.3 million for the nine months ended September 30, 2024, a decrease of $32.6 million, compared to $181.9 million for the nine months ended September 30, 2023. The decrease was primarily due to lower Realized Performance Revenues in mezzanine funds.
Current wording
Realized Performance Revenues were $19.0 million for the three months ended March 31, 2025, a decrease of $31.0 million, compared to $50.0 million for the three months ended March 31, 2024. The decrease was primarily due to lower Realized Performance Revenues in BREDS.
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Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
Our Corporate Private Equity business consists of: (a) our global private equity funds (Blackstone Capital Partners or “BCP”), (b) our Asia-focused private equity funds (Blackstone Capital Partners Asia or “BCP Asia”), (c) our sector-focused funds, including our energy- and energy transition-focused funds (Blackstone Energy Transition Partners or “BETP”) and (d) our core private equity funds (Blackstone Core Equity Partners or “BCEP”).
Current report — wording carried from elsewhere
The liquid corporate credit strategies consist of CLOs, closed-ended funds, open-ended funds, systematic strategies and SMAs. The infrastructure and asset based credit strategies include energy strategies (including our sustainable resources platform) and asset based finance strategies focused on privately originated, income-oriented credit assets secured by physical, financial or residential real estate collateral.
Current report — wording carried from elsewhere
BXMA is organized into two primary platforms: Absolute Return and Multi-Strategy. Absolute Return is designed to pursue consistent, efficient and diversifying returns across multiple market environments. Absolute Return manages a broad range of commingled and customized fund solutions, a seeding business and registered funds that provide alternative asset solutions through daily liquidity products. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing, including structured risk transfer and equity capital markets strategies.
Current report — wording carried from elsewhere
BXMA also includes a platform managed by Harvest Fund Advisors LLC (“Harvest”), which primarily invests in publicly traded energy infrastructure, renewables and master limited partnerships holding midstream energy assets in North America.
Current report — wording carried from elsewhere
While Fee-Earning Assets Under Management generally reflects Total Assets Under Management on which we are entitled to earn management fees, Fee-Earning Assets Under Management may also include Total Assets Under Management on which we are entitled to earn only performance revenues. Our calculation of Fee-Earning Assets Under Management may differ from the calculations of other asset managers, and as a result this measure may not be comparable to similar measures presented by other asset managers. Our definition of Fee-Earning Assets Under Management may differ from the definition set forth in the agreements governing the vehicles that we manage or advise.
Current report — wording carried from elsewhere
In our Perpetual Capital vehicles where redemption rights exist, redemption requests are required to be fulfilled only (a) in Blackstone’s or the vehicles’ board’s discretion, as applicable, (b) to the extent there is sufficient new capital, or (c) where such required redemptions are limited in quantum, such as interval funds or in certain insurance-dedicated vehicles. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital. We believe this measure is useful to stockholders as it represents capital we manage that has a longer duration and the ability to generate recurring revenues in a different manner than traditional fund structures.
Current report — wording carried from elsewhere
Fund returns information is included throughout this discussion and analysis to facilitate an understanding of our results of operations for the periods presented. The fund returns information reflected in this discussion and analysis is not indicative of the financial performance of Blackstone and is also not necessarily indicative of the future performance of any particular fund. An investment in Blackstone is not an investment in any of our funds. There can be no assurance that any of our funds or our other existing and future funds will achieve similar returns.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
BCEP pursues control-oriented investments in high-quality companies with durable businesses and seeks to offer a lower level of risk and a longer hold period than traditional private equity.
Previous report — wording carried elsewhere
The decrease in Blackstone’s effective tax rate for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, relates primarily to the impact of Non-Controlling Interests in Consolidated Entities and the deferred tax impact of Blackstone’s investment in its operating partnerships.
Previous report — wording carried elsewhere
in tax law or similar event, transaction costs, gains or losses associated with these corporate actions and non-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of Blackstone’s operational performance. For the nine months ended September 30, 2024, this adjustment includes removal of an accrual for an estimated liability for a legal matter.
Previous report — wording carried elsewhere
The fair value of the investments held by Blackstone Funds is the primary input to the calculation of certain of our management fees, Incentive Fees, Performance Allocations and the related Compensation we recognize. Generally, Blackstone Funds are accounted for as investment companies under the American Institute of Certified Public Accountants Audit and Accounting Guide,