Blackstone Inc.

Previous wording

The following discussion and analysis should be read in conjunction with Blackstone Inc.’s condensed consolidated financial statements and the related notes included within this Quarterly Report on

Current wording

The following discussion and analysis should be read in conjunction with Blackstone Inc.’s condensed consolidated financial statements and the related notes included within this Quarterly Report on Form 10-Q.

Previous wording

Blackstone is the world’s largest alternative asset manager. We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies (including management, transaction and monitoring fees), and from capital markets services. We also invest in the funds we manage and we are entitled to a pro-rata share of the income of the fund (a “pro-rata allocation”). In addition to a pro-rata allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain structures, we receive a contractual incentive fee from an investment fund based on achieving certain investment returns (an “Incentive Fee,” and together with Performance Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different businesses in which we operate. Net investment gains and investment income generated by the Blackstone Funds are driven by the performance of the underlying investments as well as overall market conditions. Fair values are affected by changes in the fundamentals of our portfolio companies and other investments, the industries in which they operate, the overall economy and other market conditions.

Current wording

Blackstone is the world’s largest alternative asset manager. We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies (including management, transaction and monitoring fees), and from capital markets services. We also invest in the funds we manage and we are entitled to apro-rata share of the income of the fund (a“pro-rata allocation”). In addition to apro-rata allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain structures, we receive a contractual incentive fee from an investment fund based on achieving certain investment returns (an “Incentive Fee,” and together with Performance Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different businesses in which we operate. Net investment gains and investment income generated by the Blackstone Funds are driven by the performance of the underlying investments as well as overall market conditions. Fair values are affected by changes in the fundamentals of our portfolio companies and other investments, the industries in which they operate, the overall economy and other market conditions.

Previous 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.

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) ournon-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, 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 mortgage 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 mortgage REIT.

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. 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.

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-termbuy-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

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.

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 andco-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 andco-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

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.

Current wording

Our Credit & Insurance segment (“BXCI”) offers its clients and borrowers a comprehensive solution across corporate and asset based credit, including investment grade andnon-investment grade. BXCI is one of the largest credit managers and CLO managers in the world. The investment portfolios BXCI’s credit platform manages orsub-advises consist primarily of loans and securities ofnon-investment and investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity.

Previous 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.

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 bysub-managing assets for certain insurance-dedicated funds and special purpose vehicles.

Previous wording

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 wording

BXMA is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets. Absolute Return manages a broad range of commingled and customized portfolios and aims to generate consistent returns across market environments. Multi-Strategy aims to generate strong risk-adjusted returns through opportunistic, asset-class agnostic investing. Total Portfolio Management manages large-scale total portfolios across asset classes in both public and private markets. The Public Real Assets platform is 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.

Previous 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.

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 second quarter to 2.0%. Eurozone inflation slowed to 2.0% year-over-year in June 2025, down from 2.2% in March 2025. The Bank of England held its bank rate steady in the second quarter at 4.25%. Inflation in the U.K. increased to 3.6% year-over-year in June compared to 2.6% in March 2025, although was still well below the post-Covid peak of 11.1% in October 2022. The Bank of Japan also left its policy rate unchanged in the second quarter at 0.50%.

Previous wording

We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our investment activities. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “—Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 2. Summary of Significant Accounting Policies” and “—Critical Accounting Policies.” Our key non-GAAP financial measures and operating indicators and metrics are discussed below.

Current wording

We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our investment activities. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See “—Item 1. Financial Statements — Notes to Condensed Consolidated Financial Statements — Note 2. Summary of Significant Accounting Policies” and “—Critical Accounting Policies.” Our keynon-GAAP financial measures and operating indicators and metrics are discussed below.

Previous wording

Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Blackstone believes it is useful to stockholders to review the measure that management uses in assessing segment performance. Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related and Non-Recurring Items. Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses, or other charges, if any. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the tax receivable agreement resulting from a change 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. Segment Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See “—Non-GAAP Financial Measures” for our reconciliation of Segment Distributable Earnings.

Current wording

Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments. Blackstone believes it is useful to stockholders to review the measure that management uses in assessing segment performance. Segment Distributable Earnings represents the net realized earnings of Blackstone’s segments and is the sum of Fee Related Earnings and Net Realizations for each segment. Blackstone’s segments are presented on a basis that deconsolidates Blackstone Funds, eliminatesnon-controlling ownership interests in Blackstone’s consolidated operating partnerships, removes the amortization of intangible assets and removes Transaction-Related and Non-Recurring Items. Transaction-Related and Non-Recurring Items arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering andnon-recurring gains, losses, or other charges, if any. They consist primarily of equity-based compensation charges, gains and losses on contingent consideration arrangements, changes in the balance of the tax receivable agreement resulting from a change in tax law or similar event, transaction costs, gains or losses associated with these corporate actions andnon-recurring gains, losses or other charges that affect period-to-period comparability and are not reflective of Blackstone’s operational performance. Segment Distributable Earnings excludes unrealized activity and is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Income (Loss) Before Provision (Benefit) for Taxes. See“—Non-GAAP Financial Measures” for our reconciliation of Segment Distributable Earnings.

Previous 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.

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. During the three and six months ended June 30, 2025, Realized Performance Compensation increased by

Previous wording

Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove transaction-related and non-recurring items that arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering and non-recurring gains, losses or other charges, if any, (b) remove certain expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in Blackstone’s segment presentation and (c) give effect to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.

Current wording

Other Operating Expenses is presented on a segment basis and is equal to General, Administrative and Other Expenses, adjusted to (a) remove transaction-related andnon-recurring items that arise from corporate actions including acquisitions, divestitures, Blackstone’s initial public offering andnon-recurring gains, losses or other charges, if any, (b) remove certain expenses reimbursed by the Blackstone Funds which are netted against Management and Advisory Fees, Net in Blackstone’s segment presentation and (c) give effect to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units. The administrative fee is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation.

Previous wording

Net Accrued Performance Revenues is a non-GAAP financial measure Blackstone believes is useful to stockholders as an indicator of potential future realized performance revenues based on the current investment portfolio of the funds and vehicles we manage. Net Accrued Performance Revenues represents the accrued performance revenues receivable by Blackstone, net of the related accrued performance compensation payable by Blackstone, excluding performance revenues that have been realized but not yet distributed as of the reporting date and clawback amounts, if any. Net Accrued Performance Revenues is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Investments. See “—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues and Note 2. “Summary of Significant Accounting Policies — Equity Method Investments” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” for additional information on the calculation of Investments — Accrued Performance Allocations.

Current wording

Net Accrued Performance Revenues is anon-GAAP financial measure Blackstone believes is useful to stockholders as an indicator of potential future realized performance revenues based on the current investment portfolio of the funds and vehicles we manage. Net Accrued Performance Revenues represents the accrued performance revenues receivable by Blackstone, net of the related accrued performance compensation payable by Blackstone, excluding performance revenues that have been realized but not yet distributed as of the reporting date and clawback amounts, if any. Net Accrued Performance Revenues is derived from and reconciled to, but not equivalent to, its most directly comparable GAAP measure of Investments. See“—Non-GAAP Financial Measures” for our reconciliation of Net Accrued Performance Revenues and Note 2. “Summary of Significant Accounting Policies — Equity Method Investments” in the “Notes to Condensed Consolidated Financial Statements” in “—Item 1. Financial Statements” for additional information on the calculation of Investments — Accrued Performance Allocations.

Previous wording

“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 wording

“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 managementfee-eligible), (d) gross asset value, (e) fair value of investments, or (f) the aggregate par amount of collateral assets, including principal cash, of CLOs.

Previous wording

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.

Current wording

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 extentfee-paying to Blackstone.

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 or where required redemptions are limited in quantum. Perpetual Capital includes co-investment capital with an investor right to convert into Perpetual Capital.

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 includesco-investment capital with an investor right to convert into Perpetual Capital.

Previous wording

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 wording

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 includesco-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.

Previous wording

Following is a discussion of our consolidated results of operations. For a more detailed discussion of the factors that affected the results of our four business segments (which are presented on a basis that deconsolidates the investment funds, eliminates non-controlling ownership interests in Blackstone’s consolidated operating partnerships and removes the amortization of intangibles assets and Transaction-Related and Non-Recurring Items) in these periods, see “—Segment Analysis” below.

Current wording

Following is a discussion of our consolidated results of operations. For a more detailed discussion of the factors that affected the results of our four business segments (which are presented on a basis that deconsolidates the investment funds, eliminatesnon-controlling ownership interests in Blackstone’s consolidated operating partnerships and removes the amortization of intangible assets and Transaction-Related and Non-Recurring Items) in these periods, see “—Segment Analysis” below.

Previous 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:

Current wording

The following table sets forth information regarding our consolidated results of operations and certain key operating metrics for the three and six months ended June 30, 2025 and 2024:

Previous 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.

Current wording

Revenues were $3.7 billion for the three months ended June 30, 2025, an increase of $915.5 million compared to $2.8 billion for the three months ended June 30, 2024. The increase in Revenues was primarily attributable to an increase of $909.5 million in Investment Income (Loss), primarily attributable to increases of $588.2 million in Unrealized Investment Income and $248.2 million in Management and Advisory Fees, Net.

Previous 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:

Current wording

The $588.2 million increase in Unrealized Investment Income was primarily attributable to higher net unrealized appreciation of investments in the three months ended June 30, 2025 compared to the three months ended June 30, 2024. The principal drivers were:

Previous 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.

Current wording

Expenses were $1.9 billion for the three months ended June 30, 2025, an increase of $299.9 million, compared to $1.6 billion for the three months ended June 30, 2024. The increase was primarily attributable to an increase of $215.3 million in Total Compensation and Benefits, of which $103.7 million was an increase in Compensation and $121.4 million was an increase in Performance Allocations Compensation. The increase in Compensation was primarily attributable to the increase in Management and Advisory Fees, Net, on which a portion of Compensation is based. The increase in Performance Allocations Compensation was primarily attributable to the increase in Investment Income (Loss), on which a portion of Performance Allocations Compensation is based.

Previous 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.

Current wording

Other Income (Loss) was $136.3 million for the three months ended June 30, 2025, an increase of $91.4 million, compared to $44.9 million for the three months ended June 30, 2024. The increase in Other Income (Loss) was primarily attributable to an increase of $91.4 million in Net Gains (Losses) from Fund Investment Activities.

Previous 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.

Current wording

The increase in Net Gains (Losses) from Fund Investment Activities was primarily attributable to increases of $46.9 million in our Private Equity segment and $32.3 million in our Real Estate segment. The increases in our Private Equity and Real Estate segments were primarily attributable to higher net unrealized appreciation of investments in our consolidated funds in the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Previous 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.

Current wording

Blackstone’s Provision for Taxes for the three months ended June 30, 2025 was $289.5 million, an increase of $29.2 million, compared to $260.2 million for the three months ended June 30, 2024. This resulted in an effective tax rate of 15.1% and 21.5%, based on our Income Before Provision for Taxes of $1.9 billion and $1.2 billion for the three months ended June 30, 2025 and 2024, respectively.

Previous 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.

Current wording

The decrease in Blackstone’s effective tax rate for the three months ended June 30, 2025, compared to the three months ended June 30, 2024, 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 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.

Current wording

Blackstone had a corporate alternative minimum tax (“CAMT”) liability for the six months ended June 30, 2025 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 six months ended June 30, 2025, 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.

Previous 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.

Current wording

For the three months ended June 30, 2025 and 2024, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of Blackstone Holdings was 37.7% and 38.7%, respectively. For the six months ended June 30, 2025 and 2024, the Net Income Before Taxes allocated to Blackstone personnel and others who are limited partners of Blackstone Holdings was 37.9% and 38.8%, respectively. The respective decreases of 1.0% and 0.9% were primarily attributable 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 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.”

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 and six months ended June 30, 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

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 wording

Total Assets Under Management were $1,211.2 billion at June 30, 2025, an increase of $84.0 billion compared to $1,127.2 billion at December 31, 2024. The net increase was due to:

Previous wording

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 wording

Fee-Earning Assets Under Management were $887.1 billion at June 30, 2025, an increase of $56.4 billion compared to $830.7 billion at December 31, 2024. The net increase was due to:

Previous 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.

Current wording

For the twelve months ended June 30, 2025, Net Accrued Performance Revenues receivable increased due to Net Performance Revenues of $3.3 billion, partially offset by net realized distributions of $2.9 billion.

Previous 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:

Current wording

Perpetual Capital Total Assets Under Management was $484.6 billion as of June 30, 2025, an increase of $20.1 billion, compared to $464.4 billion as of March 31, 2025. Perpetual Capital Total Assets Under Management in our Credit & Insurance and Private Equity segments increased $11.5 billion and $6.6 billion, respectively. Principal drivers of these increases were:

Previous 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.

Current wording

Management Fees, Net were $711.3 million for the three months ended June 30, 2025, a decrease of $46.2 million, compared to $757.5 million for the three months ended June 30, 2024, primarily attributable to decreases in Transaction and Other Fees, Net and Base Management Fees. Transaction and Other Fees, Net decreased $33.4 million primarily attributable to a decrease in acquisition advisory fees paid to the advisor of our BREP funds. Base Management Fees decreased $12.6 million primarily attributable to a decrease in Fee-Earning Assets Under Management in Core+ and BREDS.

Previous 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.

Current wording

Realized Performance Revenues were $43.6 million for the three months ended June 30, 2025, a decrease of $9.9 million, compared to $53.5 million for the three months ended June 30, 2024. The decrease was primarily attributable to lower Realized Performance Revenues in BREDS.

Previous wording

Realized Performance Revenues were $(0.7) million for the three months ended March 31, 2025, a decrease of $22.1 million, compared to $21.4 million for the three months ended March 31, 2024. The decrease was primarily due to lower Realized Performance Revenues in Absolute Return and Multi-Strategy.

Current wording

Realized Performance Revenues were $62.6 million for the six months ended June 30, 2025, a decrease of $40.8 million, compared to $103.4 million for the six months ended June 30, 2024. The decrease was primarily attributable to lower Realized Performance Revenues in BREDS.

Previous wording

The Real Estate segment has thirteen funds with closed investment periods as of March 31, 2025: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of March 31, 2025, BREP VII, BREP VI, BREP V, BREP Europe VI, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP IX, BREP VIII, BREDS IV and BREDS III were above their carried interest thresholds as of March 31, 2025, while BREP Asia II and BREP Europe V were below their carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.

Current wording

The Real Estate segment has thirteen funds with closed investment periods as of June 30, 2025: BREP IX, BREP VIII, BREP VII, BREP VI, BREP V, BREP Europe VI, BREP Europe V, BREP Europe IV, BREP Europe III, BREP Asia II, BREP Asia I, BREDS IV and BREDS III. As of June 30, 2025, BREP VII, BREP VI, BREP V, BREP Europe IV, BREP Europe III and BREP Asia I were above their carried interest thresholds (i.e., the preferred return payable to its limited partners before the general partner is eligible to receive carried interest) and would have been above their carried interest thresholds even if all remaining investments were valued at zero. BREP IX, BREP VIII, BREP Europe VI, BREDS IV and BREDS III were above their carried interest thresholds as of June 30, 2025, while BREP Asia II and BREP Europe V were below their carried interest thresholds. Funds are considered above their carried interest thresholds based on the aggregate fund position, although individual limited partners may be below their respective carried interest thresholds in certain funds.

Previous wording

Management and Advisory Fees, Net were $621.8 million for the three months ended March 31, 2025, an increase of $120.6 million, compared to $501.2 million for the three months ended March 31, 2024, primarily driven by increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $103.9 million primarily due to an increase in Fee-Earning Assets Under Management in BIP and BXPE, as well as fee holiday expirations of BCP IX and BETP IV. Transaction, Advisory and Other Fees, Net increased $27.3 million primarily due to increased volume of deal activity in BXCM.

Current wording

Management and Advisory Fees, Net were $706.3 million for the three months ended June 30, 2025, an increase of $191.4 million, compared to $514.9 million for the three months ended June 30, 2024, primarily attributable to increases in Base Management Fees and Transaction, Advisory and Other Fees, Net. Base Management Fees increased $136.8 million primarily attributable to fee holiday expirations of BCP IX and BETP IV, as well as an increase in Fee-Earning Assets Under Management in BXPE and BIP. Transaction, Advisory and Other Fees, Net increased $62.8 million primarily attributable to increased volume of deal activity in BXCM.