filings.toolsItem 8. Financial Statements and Supplementary Data
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Item 8. Financial Statements and Supplementary Data
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Index to Consolidated Financial Statements
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Blackstone Inc.:
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated statements of financial condition of Blackstone Inc. and subsidiaries (“Blackstone”) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income, changes in equity, and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “financial statements”). We also have audited Blackstone’s internal control over financial reporting as of December 31, 2025, based on criteria established in
Internal Control—Integrated Framework (2013)
issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Blackstone as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, Blackstone maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in
Internal Control — Integrated Framework (2013)
issued by COSO.
Basis for Opinions
Blackstone’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s report on internal control over financial reporting. Our responsibility is to express an opinion on these financial statements and an opinion on Blackstone’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to Blackstone in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the financial statements included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures to respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Critical Audit Matter
The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Fair Value of Certain Underlying Investments to determine Performance Allocations and Accrued Performance Allocations — Refer to Notes 2 and 4 to the financial statements.
Critical Audit Matter Description
Blackstone, as a general partner, is entitled to an allocation of income from certain carry fund and open-ended structures (“Blackstone Funds”) assuming certain investment returns are achieved, referred to as “Performance Allocations”. Performance Allocations are made based on either cumulative fund performance to date, subject to a preferred return to limited partners or based on fund or vehicle performance over a period of time, subject to a high water mark and preferred return to investors. The change in the fair value of the underlying investments held by the Blackstone Funds is the significant input into this calculation.
As the fair value of underlying investments varies between reporting periods, adjustments are made to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation or (b) negative performance that would cause the amount due to the general partner to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner.
We considered the valuation of certain investments without readily determinable fair values used in the calculation of Performance Allocations and Accrued Performance Allocations as a critical audit matter because of the valuation techniques, assumptions, market impacts and the degree of subjectivity of certain unobservable inputs used in the valuation. Auditing the fair value of these investments required a high degree of auditor judgment and increased effort, including the involvement of our internal fair value specialists as needed, who possess significant fair value methodology and modeling expertise.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to testing the fair values of certain investments without readily determinable fair values included the following, among others:
| • | We assessed the design and tested the operating effectiveness of controls, including those related to management’s review of the techniques and assumptions used in the determination of fair value. |
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| • | We evaluated the appropriateness of management’s assumptions through independent analysis and comparison to external sources including potential corroborative and contradictory information, as applicable. |
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| • | We utilized more experienced audit team members and, as needed, our internal fair value specialists, to assist in the evaluation of management’s valuation methodologies and assumptions (or “inputs”). |
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| • | We performed an iterative risk assessment and based on our evaluation altered the nature, timing and extent of our procedures to focus our testing on the relevant inputs that required a higher degree of management judgment (e.g., cash flow projections, guideline public companies, certain components of the discount rates, capitalization rates and exit multiples used in the calculation of the terminal value). Our procedures included testing the underlying source information of the assumptions, as well as developing a range of independent estimates and comparing those to the inputs used by management. |
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| • | We evaluated management’s valuation methodologies and modeling techniques for appropriateness with the expected methodologies of market participants in developing a fair value estimate. |
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| • | We evaluated the impact of current market events and conditions, as well as relevant comparable transactions, on the valuation techniques and assumptions used by management (e.g., industry and sector performance, cash flow projections, other market fundamentals, and interest rates). |
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| • | When applicable, we inspected industry reports or other relevant market information to evaluate the consistency of current valuations with expected industry performance and consideration of significant economic or industry events. |
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| • | We evaluated management’s ability to accurately estimate fair value by comparing previous estimates of fair value to subsequent executed investment transactions with third parties. |
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| /s/ DELOITTE & TOUCHE LLP |
| New York, New York |
| February 27, 2026 |
We have served as Blackstone’s auditor since 2006.
Blackstone Inc.
Consolidated Statements of Financial Condition
(Dollars in Thousands, Except Share Data)
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Cash and Cash Equivalents | $ | 2,631,241 | $ | 1,972,140 | ||||
| Cash Held by Blackstone Funds and Other | 223,441 | 204,052 | ||||||
| Investments | 32,212,111 | 29,800,566 | ||||||
| Accounts Receivable | 291,758 | 237,930 | ||||||
| Due from Affiliates | 6,357,462 | 5,409,315 | ||||||
| Intangible Assets, Net | 131,359 | 165,243 | ||||||
| Goodwill | 1,890,202 | 1,890,202 | ||||||
| Other Assets | 1,157,719 | 947,859 | ||||||
| Right-of-Use Assets | 757,459 | 838,620 | ||||||
| Deferred Tax Assets | 2,056,223 | 2,003,948 | ||||||
| Total Assets | $ | 47,708,975 | $ | 43,469,875 | ||||
| Liabilities and Equity | ||||||||
| Loans Payable | $ | 12,445,144 | $ | 11,320,956 | ||||
| Due to Affiliates | 3,224,432 | 2,808,148 | ||||||
| Accrued Compensation and Benefits | 6,411,389 | 6,087,700 | ||||||
| Operating Lease Liabilities | 861,021 | 965,742 | ||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | 2,885,817 | 2,792,314 | ||||||
| Total Liabilities | 25,827,803 | 23,974,860 | ||||||
| Commitments and Contingencies | ||||||||
| Redeemable Non-Controlling Interests in Consolidated Entities | 1,380,503 | 801,399 | ||||||
| Equity | ||||||||
| Stockholders’ Equity of Blackstone Inc. | ||||||||
| Common Stock, $0.00001 par value, 90 billion shares authorized, (748,688,068 shares issued and outstanding as of December 31, 2025; 731,925,965 shares issued and outstanding as of December 31, 2024) | 7 | 7 | ||||||
| Series I Preferred Stock, $0.00001 par value, 999,999,000 shares authorized, 1 share issued and outstanding as of December 31, 2025 and December 31, 2024) | — | — | ||||||
| Series II Preferred Stock, $0.00001 par value, 1,000 shares authorized, 1 share issued and outstanding as of December 31, 2025 and December 31, 2024) | — | — | ||||||
| Additional Paid-in-Capital | 8,479,886 | 7,444,561 | ||||||
| Retained Earnings | 191,641 | 808,079 | ||||||
| Accumulated Other Comprehensive Loss | (6,008 | ) | (40,326 | ) | ||||
| Total Stockholders’ Equity of Blackstone Inc. | 8,665,526 | 8,212,321 | ||||||
| Non-Controlling Interests in Consolidated Entities | 7,224,211 | 6,154,943 | ||||||
| Non-Controlling Interests in Blackstone Holdings | 4,610,932 | 4,326,352 | ||||||
| Total Equity | 20,500,669 | 18,693,616 | ||||||
| Total Liabilities and Equity | $ | 47,708,975 | $ | 43,469,875 | ||||
continued…
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statements of Financial Condition
(Dollars in Thousands)
The following presents the asset and liability portion of the consolidated balances presented in the Consolidated Statements of Financial Condition attributable to consolidated Blackstone Funds which are variable interest entities. The following assets may only be used to settle obligations of these consolidated Blackstone Funds and these liabilities are only the obligations of these consolidated Blackstone Funds and they do not have recourse to the general credit of Blackstone.
| December 31, 2025 | December 31, 2024 | |||||||
| Assets | ||||||||
| Cash Held by Blackstone Funds and Other | $ | 223,441 | $ | 204,052 | ||||
| Investments | 5,180,879 | 3,890,732 | ||||||
| Accounts Receivable | 16,388 | 45,993 | ||||||
| Due from Affiliates | 366,388 | 19,956 | ||||||
| Other Assets | 14,705 | 9,807 | ||||||
| Total Assets | $ | 5,801,801 | $ | 4,170,540 | ||||
| Liabilities | ||||||||
| Loans Payable | $ | 126,421 | $ | 87,488 | ||||
| Due to Affiliates | 181,587 | 229,478 | ||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | 58,996 | 68,763 | ||||||
| Total Liabilities | $ | 367,004 | $ | 385,729 | ||||
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statements of Operations
(Dollars in Thousands, Except Share and Per Share Data)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Revenues | ||||||||||||
| Management and Advisory Fees, Net | $ | 8,075,601 | $ | 7,188,936 | $ | 6,671,260 | ||||||
| Incentive Fees | 978,202 | 964,178 | 695,171 | |||||||||
| Investment Income (Loss) | ||||||||||||
| Performance Allocations | ||||||||||||
| Realized | 3,662,243 | 3,457,746 | 2,223,841 | |||||||||
| Unrealized | 643,063 | 371,407 | (1,691,668 | ) | ||||||||
| Principal Investments | ||||||||||||
| Realized | 697,632 | 332,258 | 303,823 | |||||||||
| Unrealized | 248,304 | 380,591 | (603,154 | ) | ||||||||
| Total Investment Income | 5,251,242 | 4,542,002 | 232,842 | |||||||||
| Interest and Dividend Revenue | 416,093 | 411,159 | 516,497 | |||||||||
| Other | (270,873 | ) | 123,693 | (92,929 | ) | |||||||
| Total Revenues | 14,450,265 | 13,229,968 | 8,022,841 | |||||||||
| Expenses | ||||||||||||
| Compensation and Benefits | ||||||||||||
| Compensation | 3,671,193 | 3,048,229 | 2,785,447 | |||||||||
| Incentive Fee Compensation | 274,902 | 373,586 | 281,067 | |||||||||
| Performance Allocations Compensation | ||||||||||||
| Realized | 1,297,472 | 1,432,217 | 900,859 | |||||||||
| Unrealized | 376,962 | 140,021 | (654,403 | ) | ||||||||
| Total Compensation and Benefits | 5,620,529 | 4,994,053 | 3,312,970 | |||||||||
| General, Administrative and Other | 1,524,548 | 1,361,909 | 1,117,305 | |||||||||
| Interest Expense | 508,314 | 443,688 | 431,868 | |||||||||
| Fund Expenses | 49,216 | 19,676 | 118,987 | |||||||||
| Total Expenses | 7,702,607 | 6,819,326 | 4,981,130 | |||||||||
| Other Income (Loss) | ||||||||||||
| Change in Tax Receivable Agreement Liability | 6,591 | (41,246 | ) | (27,196 | ) | |||||||
| Net Gains (Losses) from Fund Investment Activities | 417,397 | 90,084 | (56,801 | ) | ||||||||
| Total Other Income (Loss) | 423,988 | 48,838 | (83,997 | ) | ||||||||
| Income Before Provision for Taxes | 7,171,646 | 6,459,480 | 2,957,714 | |||||||||
| Provision for Taxes | 1,125,023 | 1,021,671 | 513,461 | |||||||||
| Net Income | 6,046,623 | 5,437,809 | 2,444,253 | |||||||||
| Net Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 45,500 | (61,289 | ) | (245,518 | ) | |||||||
| Net Income Attributable to Non-Controlling Interests in Consolidated Entities | 660,568 | 473,826 | 224,155 | |||||||||
| Net Income Attributable to Non-Controlling Interests in Blackstone Holdings | 2,321,341 | 2,248,764 | 1,074,736 | |||||||||
| Net Income Attributable to Blackstone Inc. | $ | 3,019,214 | $ | 2,776,508 | $ | 1,390,880 | ||||||
| Net Income Per Share of Common Stock | ||||||||||||
| Basic | $ | 3.87 | $ | 3.62 | $ | 1.84 | ||||||
| Diluted | $ | 3.87 | $ | 3.62 | $ | 1.84 | ||||||
| Weighted-Average Shares of Common Stock Outstanding | ||||||||||||
| Basic | 780,018,738 | 766,487,450 | 755,204,556 | |||||||||
| Diluted | 780,215,856 | 766,646,508 | 755,419,936 | |||||||||
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statements of Comprehensive Income
(Dollars in Thousands)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net Income | $ | 6,046,623 | $ | 5,437,809 | $ | 2,444,253 | ||||||
| Other Comprehensive Income (Loss) - Currency Translation Adjustment | 200,105 | (76,662 | ) | 59,698 | ||||||||
| Comprehensive Income | 6,246,728 | 5,361,147 | 2,503,951 | |||||||||
| Less: | ||||||||||||
| Comprehensive Income (Loss) Attributable to Redeemable Non-Controlling Interests in Consolidated Entities | 182,417 | (95,256 | ) | (199,998 | ) | |||||||
| Comprehensive Income Attributable to Non-Controlling Interests in Consolidated Entities | 660,568 | 473,826 | 224,155 | |||||||||
| Comprehensive Income Attributable to Non-Controlling Interests in Blackstone Holdings | 2,350,211 | 2,227,262 | 1,080,572 | |||||||||
| Comprehensive Income Attributable to Non-Controlling Interests | 3,193,196 | 2,605,832 | 1,104,729 | |||||||||
| Comprehensive Income Attributable to Blackstone Inc. | $ | 3,053,532 | $ | 2,755,315 | $ | 1,399,222 | ||||||
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
| Shares of Blackstone Inc. (a) | Blackstone Inc. (a) | |||||||||||||||||||||||||||||||||||||||
| Common Stock | Common Stock | Additional Paid-in- Capital | Retained Earnings (Deficit) | Accumulated Other Compre- hensive Income (Loss) | Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities | |||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | 710,276,923 | $ | 7 | $ | 5,935,273 | $ | 1,748,106 | $ | (27,475 | ) | $ | 7,655,911 | $ | 5,056,480 | $ | 5,253,670 | $ | 17,966,061 | $ | 1,715,006 | ||||||||||||||||||||
| Transfer Out Due to Deconsolidation of Fund Entities | — | — | — | — | — | — | — | — | — | (53,713 | ) | |||||||||||||||||||||||||||||
| Net Income (Loss) | — | — | — | 1,390,880 | — | 1,390,880 | 224,155 | 1,074,736 | 2,689,771 | (245,518 | ) | |||||||||||||||||||||||||||||
| Currency Translation Adjustment | — | — | — | — | 8,342 | 8,342 | — | 5,836 | 14,178 | 45,520 | ||||||||||||||||||||||||||||||
| Capital Contributions | — | — | — | — | — | — | 571,559 | 9,706 | 581,265 | 150,533 | ||||||||||||||||||||||||||||||
| Capital Distributions | — | — | — | (2,478,252 | ) | — | (2,478,252 | ) | (666,668 | ) | (1,799,901 | ) | (4,944,821 | ) | (432,755 | ) | ||||||||||||||||||||||||
| Transfer of Non-Controlling Interests in Consolidated Entities | — | — | 40 | — | — | 40 | (8,271 | ) | — | (8,231 | ) | — | ||||||||||||||||||||||||||||
| Deferred Tax Effects on Equity Transactions | — | — | 2,467 | — | — | 2,467 | — | — | 2,467 | — | ||||||||||||||||||||||||||||||
| Equity-Based Compensation | — | — | 614,645 | — | — | 614,645 | — | 398,830 | 1,013,475 | — | ||||||||||||||||||||||||||||||
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 7,745,355 | — | (66,762 | ) | — | — | (66,762 | ) | — | — | (66,762 | ) | — | |||||||||||||||||||||||||||
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (3,718,169 | ) | — | (351,262 | ) | — | — | (351,262 | ) | — | — | (351,262 | ) | — | ||||||||||||||||||||||||||
| Change in Blackstone Inc.’s Ownership Interest | — | — | (15,047 | ) | — | — | (15,047 | ) | — | 15,047 | — | — | ||||||||||||||||||||||||||||
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 5,054,005 | — | 55,836 | — | — | 55,836 | — | (55,836 | ) | — | — | |||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 719,358,114 | $ | 7 | $ | 6,175,190 | $ | 660,734 | $ | (19,133 | ) | $ | 6,816,798 | $ | 5,177,255 | $ | 4,902,088 | $ | 16,896,141 | $ | 1,179,073 | ||||||||||||||||||||
| (a) | During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent. |
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continued…
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
| Shares of Blackstone Inc. (a) | Blackstone Inc. (a) | |||||||||||||||||||||||||||||||||||||||
| Common Stock | Common Stock | Additional Paid-in- Capital | Retained Earnings (Deficit) | Accumulated Other Compre- hensive Income (Loss) | Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities | |||||||||||||||||||||||||||||||
| Balance at December 31, 2023 | 719,358,114 | $ | 7 | $ | 6,175,190 | $ | 660,734 | $ | (19,133 | ) | $ | 6,816,798 | $ | 5,177,255 | $ | 4,902,088 | $ | 16,896,141 | $ | 1,179,073 | ||||||||||||||||||||
| Transfer In Due to Consolidation of Fund Entities | — | — | — | — | — | — | 87,643 | — | 87,643 | 1,065 | ||||||||||||||||||||||||||||||
| Net Income (Loss) | — | — | — | 2,776,508 | — | 2,776,508 | 473,826 | 2,248,764 | 5,499,098 | (61,289 | ) | |||||||||||||||||||||||||||||
| Currency Translation Adjustment | — | — | — | — | (21,193 | ) | (21,193 | ) | — | (21,502 | ) | (42,695 | ) | (33,967 | ) | |||||||||||||||||||||||||
| Capital Contributions | — | — | — | — | — | — | 936,217 | 11,588 | 947,805 | 70,483 | ||||||||||||||||||||||||||||||
| Capital Distributions | — | — | — | (2,629,163 | ) | — | (2,629,163 | ) | (579,631 | ) | (1,806,608 | ) | (5,015,402 | ) | (284,875 | ) | ||||||||||||||||||||||||
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | (134 | ) | — | — | (134 | ) | 59,633 | — | 59,499 | (69,091 | ) | |||||||||||||||||||||||||||
| Deferred Tax Effects on Equity Transactions | — | — | (196,172 | ) | — | — | (196,172 | ) | — | — | (196,172 | ) | — | |||||||||||||||||||||||||||
| Equity-Based Compensation | — | — | 686,218 | — | — | 686,218 | — | 432,546 | 1,118,764 | — | ||||||||||||||||||||||||||||||
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 10,565,137 | — | (140,636 | ) | — | — | (140,636 | ) | — | — | (140,636 | ) | — | |||||||||||||||||||||||||||
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (3,964,353 | ) | — | (520,429 | ) | — | — | (520,429 | ) | — | — | (520,429 | ) | — | ||||||||||||||||||||||||||
| Change in Blackstone Inc.’s Ownership Interest | — | — | 1,382,158 | — | — | 1,382,158 | — | (1,382,158 | ) | — | — | |||||||||||||||||||||||||||||
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 5,967,067 | — | 58,366 | — | — | 58,366 | — | (58,366 | ) | — | — | |||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 731,925,965 | $ | 7 | $ | 7,444,561 | $ | 808,079 | $ | (40,326 | ) | $ | 8,212,321 | $ | 6,154,943 | $ | 4,326,352 | $ | 18,693,616 | $ | 801,399 | ||||||||||||||||||||
| (a) | During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent. |
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continued…
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statement of Changes in Equity
(Dollars in Thousands, Except Share Data)
| Shares of Blackstone Inc. (a) | Blackstone Inc. (a) | |||||||||||||||||||||||||||||||||||||||
| Common Stock | Common Stock | Additional Paid-in- Capital | Retained Earnings (Deficit) | Accumulated Other Compre- hensive Income (Loss) | Total Stockholders’ Equity | Non- Controlling Interests in Consolidated Entities | Non- Controlling Interests in Blackstone Holdings | Total Equity | Redeemable Non- Controlling Interests in Consolidated Entities | |||||||||||||||||||||||||||||||
| Balance at December 31, 2024 | 731,925,965 | $ | 7 | $ | 7,444,561 | $ | 808,079 | $ | (40,326 | ) | $ | 8,212,321 | $ | 6,154,943 | $ | 4,326,352 | $ | 18,693,616 | $ | 801,399 | ||||||||||||||||||||
| Transfer Out Due to Deconsolidation of Fund Entities | — | — | — | — | — | — | (508,359 | ) | — | (508,359 | ) | (174,869 | ) | |||||||||||||||||||||||||||
| Net Income | — | — | — | 3,019,214 | — | 3,019,214 | 660,568 | 2,321,341 | 6,001,123 | 45,500 | ||||||||||||||||||||||||||||||
| Currency Translation Adjustment | — | — | — | — | 34,318 | 34,318 | — | 28,870 | 63,188 | 136,917 | ||||||||||||||||||||||||||||||
| Capital Contributions | — | — | — | — | — | — | 1,751,543 | 16,337 | 1,767,880 | 772,882 | ||||||||||||||||||||||||||||||
| Capital Distributions | — | — | — | (3,635,652 | ) | — | (3,635,652 | ) | (832,617 | ) | (2,394,070 | ) | (6,862,339 | ) | (202,694 | ) | ||||||||||||||||||||||||
| Transfer and Repurchase of Non-Controlling Interests in Consolidated Entities | — | — | 1,142 | — | — | 1,142 | (1,867 | ) | — | (725 | ) | 1,368 | ||||||||||||||||||||||||||||
| Deferred Tax Effects on Equity Transactions | — | — | 222,727 | — | — | 222,727 | — | — | 222,727 | — | ||||||||||||||||||||||||||||||
| Equity-Based Compensation | — | — | 892,246 | — | — | 892,246 | — | 543,792 | 1,436,038 | — | ||||||||||||||||||||||||||||||
| Net Delivery of Vested Blackstone Holdings Partnership Units and Shares of Common Stock | 10,888,407 | — | (189,890 | ) | — | — | (189,890 | ) | — | — | (189,890 | ) | — | |||||||||||||||||||||||||||
| Repurchase of Shares of Common Stock and Blackstone Holdings Partnership Units | (800,000 | ) | — | (122,590 | ) | — | — | (122,590 | ) | — | — | (122,590 | ) | — | ||||||||||||||||||||||||||
| Change in Blackstone Inc.’s Ownership Interest | — | — | 160,500 | — | — | 160,500 | — | (160,500 | ) | — | — | |||||||||||||||||||||||||||||
| Conversion of Blackstone Holdings Partnership Units to Shares of Common Stock | 6,673,696 | — | 71,190 | — | — | 71,190 | — | (71,190 | ) | — | — | |||||||||||||||||||||||||||||
| Balance at December 31, 2025 | 748,688,068 | $ | 7 | $ | 8,479,886 | $ | 191,641 | $ | (6,008 | ) | $ | 8,665,526 | $ | 7,224,211 | $ | 4,610,932 | $ | 20,500,669 | $ | 1,380,503 | ||||||||||||||||||||
| (a) | During the period presented, Blackstone also had one share outstanding of each of Series I and Series II preferred stock, with par value of each less than one cent. |
|---|
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statements of Cash Flows
(Dollars in Thousands)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating Activities | ||||||||||||
| Net Income | $ | 6,046,623 | $ | 5,437,809 | $ | 2,444,253 | ||||||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities | ||||||||||||
| Net Realized Gains on Investments | (4,820,209 | ) | (4,172,938 | ) | (2,989,636 | ) | ||||||
| Changes in Unrealized (Gains) Losses on Investments | (488,090 | ) | (487,013 | ) | 683,715 | |||||||
| Non-Cash Performance Allocations | (643,063 | ) | (371,407 | ) | 1,691,668 | |||||||
| Non-Cash Performance Allocations and Incentive Fee Compensation | 1,948,679 | 1,941,899 | 473,364 | |||||||||
| Equity-Based Compensation Expense | 1,445,352 | 1,168,435 | 987,549 | |||||||||
| Amortization of Intangibles | 36,023 | 35,965 | 40,075 | |||||||||
| Other Non-Cash Amounts Included in Net Income | 3,790 | (444,772 | ) | (835,230 | ) | |||||||
| Cash Flows Due to Changes in Operating Assets and Liabilities | ||||||||||||
| Cash Acquired with Consolidation of Fund Entities | — | 39,729 | — | |||||||||
| Cash Relinquished with Deconsolidation of Fund Entities | (69,477 | ) | (113,224 | ) | (113,589 | ) | ||||||
| Accounts Receivable | (211,940 | ) | (78,284 | ) | 237,623 | |||||||
| Due from Affiliates | (186,473 | ) | (386,755 | ) | 331,623 | |||||||
| Other Assets | (166,395 | ) | (560 | ) | (47,299 | ) | ||||||
| Accrued Compensation and Benefits | (1,493,875 | ) | (1,211,545 | ) | (1,071,559 | ) | ||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | 514,278 | 194,581 | (40,283 | ) | ||||||||
| Due to Affiliates | (124,099 | ) | 16,930 | 85,733 | ||||||||
| Investments Purchased | (3,807,149 | ) | (2,429,824 | ) | (5,010,341 | ) | ||||||
| Cash Proceeds from Sale of Investments | 6,679,186 | 4,342,636 | 7,189,240 | |||||||||
| Net Cash Provided by Operating Activities | 4,663,161 | 3,481,662 | 4,056,906 | |||||||||
| Investing Activities | ||||||||||||
| Purchase of Furniture, Equipment and Leasehold Improvements | (115,703 | ) | (61,409 | ) | (224,231 | ) | ||||||
| Net Cash Paid for Acquisitions, Net of Cash Acquired | — | — | (5,420 | ) | ||||||||
| Net Cash Used in Investing Activities | (115,703 | ) | (61,409 | ) | (229,651 | ) | ||||||
| Financing Activities | ||||||||||||
| Distributions to Non-Controlling Interest Holders in Consolidated Entities | (1,035,141 | ) | (874,024 | ) | (1,003,715 | ) | ||||||
| Contributions from Non-Controlling Interest Holders in Consolidated Entities | 2,525,477 | 907,267 | 708,410 | |||||||||
| Payments Under Tax Receivable Agreement | (43,954 | ) | (87,508 | ) | (64,634 | ) | ||||||
| Net Settlement of Vested Common Stock and Repurchase of Common Stock | (312,480 | ) | (661,065 | ) | (418,024 | ) | ||||||
| Proceeds from Loans Payable | 2,813,736 | 741,173 | 494,975 |
continued…
See notes to consolidated financial statements.
Blackstone Inc.
Consolidated Statements of Cash Flows
(Dollars in Thousands)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Financing Activities (Continued) | ||||||||||||
| Repayment and Repurchase of Loans Payable | $ | (1,813,058 | ) | $ | (103,221 | ) | $ | (502,460 | ) | |||
| Dividends/Distributions to Stockholders and Unitholders | (6,013,385 | ) | (4,424,183 | ) | (4,268,447 | ) | ||||||
| Net Cash Used in Financing Activities | (3,878,805 | ) | (4,501,561 | ) | (5,053,895 | ) | ||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | 9,837 | (14,563 | ) | 4,988 | ||||||||
| Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other | ||||||||||||
| Net Increase (Decrease) | 678,490 | (1,095,871 | ) | (1,221,652 | ) | |||||||
| Beginning of Period | 2,176,192 | 3,272,063 | 4,493,715 | |||||||||
| End of Period | $ | 2,854,682 | $ | 2,176,192 | $ | 3,272,063 | ||||||
| Supplemental Disclosure of Cash Flows Information | ||||||||||||
| Payments for Interest | $ | 463,532 | $ | 407,333 | $ | 400,333 | ||||||
| Payments for Income Taxes | $ | 562,560 | $ | 646,872 | $ | 569,381 | ||||||
| Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||||||||||||
| Non-Cash Contributions from Non-Controlling Interest Holders | $ | 16,338 | $ | 101,429 | $ | 22,049 | ||||||
| Non-Cash Distributions to Non-Controlling Interest Holders | $ | (16,392 | ) | $ | (2,070 | ) | $ | (105,414 | ) | |||
| Notes Issuance Costs | $ | 9,506 | $ | 6,082 | $ | — | ||||||
| Transfer of Interests to Non-Controlling Interest Holders | $ | (499 | ) | $ | (9,458 | ) | $ | (8,231 | ) | |||
| Net Settlement of Vested Common Stock | $ | 1,401,963 | $ | 972,398 | $ | 681,004 | ||||||
| Deferred Tax Asset Increase (Decrease) from Equity Transactions | $ | 490,224 | $ | (26,035 | ) | $ | (117,459 | ) | ||||
| Due to Affiliates Increase Related to the Impact of Conversions on Tax Receivable Agreements | $ | 278,936 | $ | 208,676 | $ | 114,992 | ||||||
The following table provides a reconciliation of Cash and Cash Equivalents and Cash Held by Blackstone Funds and Other reported within the Consolidated Statements of Financial Condition:
| December 31, 2025 | December 31, 2024 | |||||||
| Cash and Cash Equivalents | $ | 2,631,241 | $ | 1,972,140 | ||||
| Cash Held by Blackstone Funds and Other | 223,441 | 204,052 | ||||||
| $ | 2,854,682 | $ | 2,176,192 | |||||
See notes to consolidated financial statements.
Blackstone Inc.
Notes to Consolidated Financial Statements
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| 1. | Organization |
|---|
Blackstone Inc., together with its consolidated subsidiaries (“Blackstone” or the “Company”), is the world’s largest alternative asset manager. Blackstone’s asset management business includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. “Blackstone Funds” refers to the funds and other vehicles that are managed by Blackstone. Blackstone’s business is organized into four segments: Real Estate, Private Equity, Credit & Insurance and Multi-Asset Investing.
Blackstone Inc.
was initially formed as The Blackstone Group L.P., a Delaware limited partnership, on March 12
, 2007
. Prior to its conversion on July 1
, 2019
to a Delaware corporation, Blackstone Inc. was managed and operated by Blackstone Group Management L.L.C., which is wholly owned by Blackstone’s senior managing directors and controlled by
one
of Blackstone’s founders, Stephen A. Schwarzman (the “Founder”).
The activities
of Blackstone are conducted through its holding partnerships: Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (collectively, “Blackstone Holdings,” “Blackstone Holdings Partnerships” or the “Holding Partnerships”). Blackstone, through its wholly owned subsidiaries, is the sole general partner of each of the Holding Partnerships. Generally, holders of the limited partner interests in the Holding Partnerships may, four
times each year, exchange their limited partnership interests (“Partnership Units”) for Blackstone common stock, on a
one-to-one
basis, exchanging one
Partnership Unit from each of the Holding Partnerships for one
share of Blackstone common stock.
| 2. | Summary of Significant Accounting Policies |
|---|
Basis of Presentation
The accompanying consolidated financial statements of Blackstone have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
The consolidated financial statements include the accounts of Blackstone, its wholly owned or majority-owned subsidiaries, the consolidated entities which are considered to be variable interest entities and for which Blackstone is considered the primary beneficiary, and certain partnerships or similar entities which are not considered variable interest entities but in which the general partner is determined to have control.
All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. Management believes that estimates utilized in the preparation of the consolidated financial statements are prudent and reasonable. Such estimates include those used in the valuation of investments and financial instruments, the measurement of deferred tax balances (including any valuation allowances) and the accounting for Goodwill and equity-based compensation. Actual results could differ from those estimates and such differences could be material.
Consolidation
Blackstone consolidates all entities that it controls through a majority voting interest or otherwise, including those Blackstone Funds in which the general partner has a controlling financial interest. Blackstone has a controlling financial interest in Blackstone Holdings because the limited partners do not have the right to dissolve the partnerships or have substantive
kick-out
rights or participating rights that would overcome the control held by Blackstone. Accordingly, Blackstone consolidates Blackstone Holdings and records
non-controlling
interests to reflect the economic interests of the limited partners of Blackstone Holdings.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In addition, Blackstone consolidates all variable interest entities (“VIE”) for which it is the primary beneficiary. An enterprise is determined to be the primary beneficiary if it holds a controlling financial interest. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (b) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (a) whether an entity in which Blackstone holds a variable interest is a VIE and (b) whether Blackstone’s involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests, would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment.
Blackstone determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a variable interest entity and continuously reconsiders that conclusion. In determining whether Blackstone is the primary beneficiary, Blackstone evaluates its control rights as well as economic interests in the entity held either directly or indirectly by Blackstone. The consolidation analysis can generally be performed qualitatively; however, if it is not readily apparent that Blackstone is not the primary beneficiary, a quantitative analysis may also be performed. Investments and redemptions (either by Blackstone, affiliates of Blackstone or third parties) or amendments to the governing documents of the respective Blackstone Funds could affect an entity’s status as a VIE or the determination of the primary beneficiary. At each reporting date, Blackstone assesses whether it is the primary beneficiary and will consolidate or deconsolidate accordingly.
Assets of consolidated VIEs that can only be used to settle obligations of the consolidated VIE and liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of Blackstone are presented in a separate section in the Consolidated Statements of Financial Condition.
Blackstone’s other disclosures regarding VIEs are discussed in Note 8. “Variable Interest Entities.”
Revenue Recognition
Revenues primarily consist of management and advisory fees, incentive fees, investment income, interest and dividend revenue and other.
Management and advisory fees and incentive fees are accounted for as contracts with customers. Under the guidance for contracts with customers, an entity is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfies a performance obligation. In determining the transaction price, an entity may include variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved. See Note 19. “Segment Reporting” for a disaggregated presentation of revenues from contracts with customers.
Management and Advisory Fees, Net
— Management and Advisory Fees, Net are comprised of management fees, including base management fees, transaction, advisory and other fees net of management fee reductions and offsets.
Blackstone earns base management fees from its customers at a fixed percentage of a calculation base which is typically net asset value, gross asset value, total fair value of investments, committed capital, total invested capital or remaining invested capital. Blackstone identifies its customers on a fund by fund basis in accordance with the terms and circumstances of the individual fund. Generally the customer is identified as the investors in its managed funds and investment vehicles, but for certain widely held funds or vehicles, the fund or vehicle itself may be identified as the customer. These customer contracts require Blackstone to provide investment management services, which represents a performance obligation that Blackstone satisfies over time. Management fees are a form of variable consideration because the fees Blackstone is entitled to vary based on fluctuations in the basis for the management fee. The amount recorded as revenue is generally determined at the end of the period because these management fees are payable on a regular basis (typically quarterly) and are not subject to clawback once paid.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Transaction, advisory and other fees are principally fees charged to the investors of funds indirectly through the managed funds and portfolio companies. The investment advisory agreements generally require that the investment adviser reduce the amount of management fees payable by the investors to Blackstone (“management fee reductions”) by an amount equal to a portion of the transaction and other fees paid to Blackstone by the portfolio companies. The amount of the reduction varies by fund, the type of fee paid by the portfolio company and the previously incurred expenses of the fund. These fees and associated management fee reductions are a component of the transaction price for Blackstone’s performance obligation to provide investment management services to the investors of funds and are recognized as changes to the transaction price in the period in which they are charged and the services are performed.
Management fee offsets are reductions to management fees payable by the investors of the Blackstone Funds, which includes amounts such investors reimburse the Blackstone Funds or Blackstone primarily for placement fees, rebates and other consideration determined to be an adjustment to the transaction price. Providing investment management services requires Blackstone to arrange for services on behalf of its customers. In those situations where Blackstone is acting as an agent on behalf of the investors of funds, it presents the cost of services as net against management fee revenue. In all other situations, Blackstone is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements. As a result, the cost of those services is presented as Compensation or General, Administrative and Other expense, as appropriate, with any reimbursement from the investors of the funds recorded as Management and Advisory Fees, Net. In cases where the investors of the funds are determined to be the customer in an arrangement, placement fees may be capitalized as a cost to acquire a customer contract. Capitalized placement fees are amortized over the life of the customer contract, are recorded within Other Assets in the Consolidated Statements of Financial Condition and amortization is recorded within General, Administrative and Other within the Consolidated Statements of Operations. In cases where the Blackstone Funds are determined to be the customer in the arrangement, placement fees are generally expensed as incurred. Blackstone may also pay ongoing investor servicing fees to certain distributors of its products. Where Blackstone is the principal in those arrangements, ongoing investor servicing fees are expensed as incurred and are recorded within General, Administrative and Other expense.
Accrued but unpaid Management and Advisory Fees, net of management fee reductions and management fee offsets, as of the reporting date are included in Due from Affiliates in the Consolidated Statements of Financial Condition.
Incentive Fees —
Contractual fees earned based on the performance of Blackstone vehicles (“Incentive Fees”) are a form of variable consideration in Blackstone’s contracts with customers to provide investment management services. Incentive Fees are earned based on performance of the vehicle during the period, subject to the achievement of minimum return levels, or high water marks, in accordance with the respective terms set out in each vehicle’s governing agreements. Incentive Fees will not be recognized as revenue until (a) it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur, or (b) the uncertainty associated with the variable consideration is subsequently resolved. Incentive Fees are typically recognized as revenue when realized at the end of the measurement period. Once realized, such fees are not subject to clawback or reversal. Accrued but unpaid Incentive Fees charged directly to investors in Blackstone vehicles as of the reporting date are recorded within Due from Affiliates in the Consolidated Statements of Financial Condition.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Investment Income (Loss)
— Investment Income (Loss) represents the unrealized and realized gains and losses on Blackstone’s Performance Allocations and Principal Investments.
In carry fund structures and certain open-ended structures, Blackstone, through its subsidiaries, invests alongside its limited partners in a partnership and is entitled to its
pro-rata
share of the results of the fund vehicle (a
“pro-rata
allocation”). In addition to a
pro-rata
allocation, and assuming certain investment returns are achieved, Blackstone is entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”).
Performance Allocations are made to the general partner based either on cumulative fund performance to date, subject to a preferred return to limited partners or based on vehicle performance over a period of time, subject to a high water mark and preferred return to investors. At the end of each reporting period, Blackstone calculates the balance of accrued Performance Allocations (“Accrued Performance Allocations”) that would be due to Blackstone for each fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. Accrued Performance Allocations as of the reporting date are reflected in Investments in the Consolidated Statements of Financial Condition.
Performance Allocations in carry fund structures are realized when an underlying investment is profitably disposed of and the fund’s cumulative returns are in excess of the preferred return or, in limited instances, after certain thresholds for return of capital are met. Performance Allocations in carry fund structures are subject to clawback to the extent that the Performance Allocation received to date exceeds the amount due to Blackstone based on cumulative results. As such, the accrual for potential repayment of previously received Performance Allocations, which is a component of Due to Affiliates, represents all amounts previously distributed to Blackstone Holdings and
non-controlling
interest holders that would need to be repaid to the Blackstone carry funds if the Blackstone carry funds were to be liquidated based on the current fair value of the underlying funds’ investments as of the reporting date. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain funds, which may have an interim clawback liability. Performance Allocations in open-ended structures are realized based on the stated time period in the agreements and are generally not subject to clawback once paid.
Principal Investments include the unrealized and realized gains and losses on Blackstone’s principal investments, including its investments in Blackstone Funds that are not consolidated and receive
pro-rata
allocations, its equity method investments, and other principal investments. Income (Loss) on Principal Investments is realized when Blackstone redeems all or a portion of its investment or when Blackstone receives cash income, such as dividends or distributions. Unrealized Income (Loss) on Principal Investments results from changes in the fair value of the underlying investment as well as the reversal of unrealized gain (loss) at the time an investment is realized.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Interest and Dividend Revenue
— Interest consists primarily of interest income earned on cash, receivables and Blackstone held principal investments not accounted for under the equity method. Dividend Revenue consists primarily of dividend income earned on principal investments not accounted for under the equity method held by Blackstone, including investments accounted for under the fair value option.
Other Revenue
— Other Revenue consists of miscellaneous income and foreign exchange gains and losses arising on transactions denominated in currencies other than U.S. dollars.
Fair Value of Financial Instruments
GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:
| • | Level I — Quoted prices are available in active markets for identical financial instruments as of the reporting date. The types of financial instruments in Level I include listed equities, listed derivatives and mutual funds with quoted prices. Blackstone does not adjust the quoted price for these investments, even in situations where Blackstone holds a large position and a sale could reasonably impact the quoted price. |
|---|
| • | Level II — Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. Financial instruments which are generally included in this category include corporate bonds and loans, including corporate bonds and loans held within consolidated collateralized loan obligations (“CLO”) vehicles, government and agency securities, less liquid and restricted equity securities, and certain over-the-counter derivatives where the fair value is based on observable inputs. Notes issued by consolidated CLO vehicles are classified within Level II of the fair value hierarchy. |
|---|
| • | Level III — Pricing inputs are unobservable for the financial instruments and includes situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. Financial instruments that are included in this category generally include private investments in the equity of operating companies, real estate properties, distressed debt and non-investment grade residual interests in securitizations, investments in non-consolidated CLOs and certain over-the-counter derivatives where the fair value is based on unobservable inputs. For certain investments where the fair value is not readily determinable, net asset value (“NAV”) is applied as a practical expedient. |
|---|
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. Blackstone’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Level II Valuation Techniques
Financial instruments classified within Level II of the fair value hierarchy comprise debt instruments, debt securities sold, not yet purchased and certain equity securities and derivative instruments valued using observable inputs.
The valuation techniques used to value financial instruments classified within Level II of the fair value hierarchy are as follows:
| • | Debt Instruments and Equity Securities are valued on the basis of prices from an orderly transaction between market participants including those provided by reputable dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrices and market transactions in comparable investments and various relationships between investments. The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction. |
|---|
| • | Freestanding Derivatives are valued using contractual cash flows and observable inputs comprising yield curves, foreign currency rates and credit spreads. |
|---|
| • | Notes issued by consolidated CLO vehicles are measured based on the more observable fair value of CLO assets less (a) the fair value of any beneficial interests held by Blackstone, and (b) the carrying value of any beneficial interests that represent compensation for services. |
|---|
Level III Valuation Techniques
In the absence of observable market prices, Blackstone values its investments using valuation methodologies applied on a consistent basis. For some investments little market activity may exist; management’s determination of fair value is then based on the best information available in the circumstances, and may incorporate management’s own assumptions and involves a significant degree of judgment, taking into consideration a combination of internal and external factors, including the appropriate risk adjustments for
non-performance
and liquidity risks. Investments for which market prices are not observable include private investments in the equity of operating companies, real estate properties and investments in
non-consolidated
CLO vehicles.
Real Estate Investments
—
The fair values of real estate investments are determined by considering projected operating cash flows, sales of comparable assets, if any, and replacement costs, among other measures and considerations. The methods used to estimate the fair value of real estate investments include the discounted cash flow method, where value is calculated by discounting the estimated cash flows and the estimated terminal value of the subject investment by the assumed buyer’s weighted-average cost of capital. A terminal value is derived by reference to an exit multiple, such as for estimates of earnings before interest, taxes, depreciation and amortization (“EBITDA”), or a capitalization rate, such as for estimates of net operating income (“NOI”). Valuations may also be derived by the performance multiple or market approach, by reference to observable valuation measures for comparable companies or assets (for example, dividing NOI by a relevant capitalization rate observed for comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables.
Private Equity Investments
— The fair values of private equity investments are determined by reference to projected net earnings, EBITDA, public market or private transactions, valuations for comparable companies and other measures which, in many cases, are based on unaudited information at the time received. The methods used to estimate the fair value of private equity investments include the discounted cash flow method. Where a discounted cash flow method is used, a terminal value is derived by reference to EBITDA or price/earnings exit multiples. Valuations may also be derived by reference to observable valuation measures for comparable companies or transactions (for example, multiplying a key performance metric of the investee company, such as EBITDA, by a relevant valuation multiple observed in the range of comparable companies or transactions), adjusted by management for differences between the investment and the referenced comparables, and in some instances by reference to option pricing models or other similar methods.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Credit-Focused Investments
— The fair values of credit-focused investments are generally determined on the basis of prices between market participants provided by reputable dealers or pricing services. For credit-focused investments that are not publicly traded or whose market prices are not readily available, Blackstone may utilize other valuation techniques, including the discounted cash flow method or a market approach. The discounted cash flow method projects the expected cash flows of the debt instrument based on contractual terms, and discounts such cash flows back to the valuation date using a market-based yield. The market-based yield is generally estimated using yields of publicly traded debt instruments issued by companies operating in similar industries as the subject investment or based on changes in credit spreads of a broader benchmark index applicable to a subject investment.
The market approach is generally used to determine the enterprise value of the issuer of a credit investment, and considers valuation multiples of comparable companies or transactions. The resulting enterprise value will dictate whether or not such credit investment has adequate enterprise value coverage. In cases of distressed credit instruments, the market approach may be used to estimate a recovery value in the event of a restructuring.
Investments, at Fair Value
Generally, the Blackstone Funds are accounted for as investment companies in accordance with the GAAP guidance on investment companies, and under the American Institute of Certified Public Accountants Audit and Accounting Guide,
Investment Companies
, and reflect their investments, including majority-owned and controlled investments, at fair value. Such consolidated funds’ investments are reflected in Investments on the Consolidated Statements of Financial Condition at fair value, with unrealized gains and losses resulting from changes in fair value reflected as a component of Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants at the measurement date, at current market conditions (i.e., the exit price).
Certain principal investments are presented at fair value with unrealized appreciation or depreciation and realized gains and losses recognized in the Consolidated Statements of Operations within Investment Income (Loss).
For certain instruments, Blackstone has elected the fair value option. Such election is irrevocable and is applied on an investment by investment basis at initial recognition or other eligible election dates. Blackstone has applied the fair value option for certain loans and receivables, unfunded loan commitments and certain investments that otherwise would not have been carried at fair value with gains and losses recorded in net income. The methodology for measuring the fair value of such investments is consistent with the methodology applied to private equity, real estate and credit-focused investments. Changes in the fair value of such instruments are recognized in Investment Income (Loss) in the Consolidated Statements of Operations. Interest income on interest bearing loans and receivables and debt securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest and Dividend Revenue.
Blackstone has elected the fair value option for the assets of consolidated CLO vehicles. As permitted under GAAP, Blackstone measures notes issued by consolidated CLO vehicles as (a) the sum of the fair value of the consolidated CLO assets and the carrying value of any
non-financial
assets held temporarily, less (b) the sum of the fair value of any beneficial interests retained by Blackstone (other than those that represent compensation for services) and Blackstone’s carrying value of any beneficial interests that represent compensation for services. As a result of this measurement alternative, there is no attribution of amounts to
Non-Controlling
Interests for consolidated CLO vehicles. Assets of the consolidated CLOs are presented within Investments within the Consolidated Statements of Financial Condition and notes payable within Loans Payable for the amounts due to unaffiliated third parties. Changes in the fair value of consolidated CLO assets and liabilities and related interest, dividend and other income are presented within Net Gains (Losses) from Fund Investment Activities. Expenses of consolidated CLO vehicles are presented in Fund Expenses.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Blackstone has elected the fair value option for certain proprietary investments that would otherwise have been accounted for using the equity method of accounting. The fair value of such investments is based on quoted prices in an active market, quoted prices that are published on a regular basis and are the basis for current transactions or using the discounted cash flow method. Changes in fair value are recognized in Investment Income (Loss) in the Consolidated Statements of Operations.
Further disclosure on instruments for which the fair value option has been elected is presented in Note 6. “Fair Value Option.”
Blackstone may elect to measure certain proprietary investments in equity securities without readily determinable fair values under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer. If the measurement alternative election is not made, the equity security is measured at fair value. The measurement alternative election is made on an instrument by instrument basis. The election is reassessed each reporting period to determine whether investments under the measurement alternative have readily determinable fair values, in which case they would no longer be eligible for this election.
Certain investments of Blackstone and the consolidated Blackstone funds are valued at NAV per share pursuant to the practical expedient. In limited circumstances, Blackstone may determine, based on its own due diligence and investment procedures, that NAV per share does not represent fair value. In such circumstances, Blackstone will estimate the fair value in good faith and in a manner that it reasonably chooses, in accordance with the requirements of GAAP.
The terms of the investee’s investment generally provide for minimum holding periods or
lock-ups,
the institution of gates on redemptions or the suspension of redemptions or an ability to side pocket investments, at the discretion of the investee’s fund manager, and as a result, investments may not be redeemable at, or within three months of, the reporting date.
Security and loan transactions are recorded on a trade date basis.
Equity Method Investments
Investments in which Blackstone is deemed to exert significant influence, but not control, are accounted for using the equity method of accounting except in cases where the fair value option has been elected. Blackstone has significant influence over all Blackstone Funds in which it invests but does not consolidate. Therefore, its investments in such Blackstone Funds, which generally include both a proportionate and disproportionate allocation of the profits and losses (as is the case with funds that include a Performance Allocation), are accounted for under the equity method. Under the equity method of accounting, Blackstone’s share of earnings (losses) from equity method investments is included in Investment Income (Loss) in the Consolidated Statements of Operations.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In cases where Blackstone’s equity method investments provide for a disproportionate allocation of the profits and losses (as is the case with funds that include a Performance Allocation), Blackstone’s share of earnings (losses) from equity method investments is determined using a balance sheet approach referred to as the hypothetical liquidation at book value (“HLBV”) method. Under the HLBV method, at the end of each reporting period, Blackstone calculates the Accrued Performance Allocations that would be due to Blackstone for each fund pursuant to the fund agreements as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as Accrued Performance Allocations to reflect either (a) positive performance resulting in an increase in the Accrued Performance Allocation to the general partner, or (b) negative performance that would cause the amount due to Blackstone to be less than the amount previously recognized as revenue, resulting in a negative adjustment to the Accrued Performance Allocation to the general partner. In each scenario, it is necessary to calculate the Accrued Performance Allocation on cumulative results compared to the Accrued Performance Allocation recorded to date and make the required positive or negative adjustments. Blackstone ceases to record negative Performance Allocations once previously Accrued Performance Allocations for such fund have been fully reversed. Blackstone is not obligated to pay guaranteed returns or hurdles, and therefore, cannot have negative Performance Allocations over the life of a fund. The carrying amounts of equity method investments are reflected in Investments in the Consolidated Statements of Financial Condition.
Strategic Partners’ results presented in Blackstone’s consolidated financial statements are reported on a three-month lag from Strategic Partners’ fund financial statements, which report the performance of underlying investments generally on a same quarter basis, if available. Therefore, Strategic Partners’ results presented herein do not reflect the impact of economic and market activity in the current quarter. Current quarter market activity of Strategic Partners’ underlying investments is expected to affect Blackstone’s reported results in upcoming periods.
Cash and Cash Equivalents
Cash and Cash Equivalents represents cash on hand, cash held in banks, money market funds and liquid investments with original maturities of three months or less. Interest income from cash and cash equivalents is recorded in Interest and Dividend Revenue in the Consolidated Statements of Operations.
Cash Held by Blackstone Funds and Other
Cash Held by Blackstone Funds and Other represents cash and cash equivalents held by consolidated Blackstone Funds and other consolidated entities. Such amounts are not available to fund the general liquidity needs of Blackstone.
Accounts Receivable and Due from Affiliates
Accounts Receivable and Due from Affiliates is comprised of management and incentive fees receivable from limited partners, receivables from managed investment vehicles and portfolio companies, placement and advisory fees receivables, receivables relating to unsettled sale transactions and loans extended to affiliates and to unaffiliated third parties. Accounts Receivable, excluding those for which the fair value option has been elected, are assessed periodically for collectability. Amounts determined to be uncollectible are charged directly to General, Administrative and Other Expenses in the Consolidated Statements of Operations.
Intangibles and Goodwill
Blackstone’s
intangible assets consist of contractual rights to earn future fee income, including management and advisory fees, Incentive Fees and Performance Allocations. Identifiable finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from
five
to
twenty years
,
reflecting the contractual lives of such assets. Fully amortized intangible assets remain on the Consolidated Statement of Financial Position until they are no longer in use or have been disposed of. Amortization expense is included within General, Administrative and Other in the Consolidated Statements of Operations. Intangible assets are reviewed for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Goodwill comprises goodwill arising from the contribution and reorganization of Blackstone’s predecessor entities in 2007 immediately prior to its initial public offering (“IPO”) and the acquisitions of GSO Capital Partners LP in 2008, Strategic Partners in 2013, Harvest Fund Advisors LLC in 2017, Clarus Ventures LLC in 2018 and DCI LLC in 2020. Goodwill is reviewed for impairment at least annually utilizing a qualitative or quantitative approach, and more frequently if circumstances indicate impairment may have occurred. The impairment testing for goodwill under the qualitative approach is based first on a qualitative assessment to determine if it is more likely than not that the fair value of Blackstone’s operating segments is less than their respective carrying values. The operating segments are considered the reporting units for testing the impairment of goodwill. If it is determined that it is more likely than not that an operating segment’s fair value is less than its carrying value or when the quantitative approach is used, an impairment loss is recognized to the extent by which the carrying value exceeds the fair value, not to exceed the total amount of goodwill allocated to that reporting unit.
Furniture, Equipment and Leasehold Improvements
Furniture, equipment and leasehold improvements consist primarily of leasehold improvements, furniture, fixtures and equipment, computer hardware and software and are recorded at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the assets’ estimated useful economic lives, which for leasehold improvements, furniture and fittings and other fixed assets were the lesser of the lease term or the life of the asset, the lesser of
seven years
or the lease term, or
three
to
five years
, respectively. Fully depreciated assets remain on the Consolidated Statement of Financial Position until they are no
longer in use or have been disposed of. Blackstone evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
Foreign Currency
In the normal course of business, Blackstone may enter into transactions denominated in currencies other than United States dollars. Foreign exchange gains and losses arising on such transactions are recorded as Other Revenue in the Consolidated Statements of Operations. Foreign currency transaction gains and losses arising within consolidated Blackstone Funds are recorded in Net Gains (Losses) from Fund Investment Activities. In addition, Blackstone consolidates a number of entities that have a
non-U.S.
dollar functional currency.
Non-U.S.
dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are translated at the prevailing exchange rate on the dates that they were recorded. Cumulative translation adjustments arising from the translation of
non-U.S.
dollar denominated operations are recorded in Other Comprehensive Income and allocated to
Non-Controlling
Interests in Consolidated Entities and
Non-Controlling
Interests in Blackstone Holdings, as applicable.
Comprehensive Income
Comprehensive Income consists of Net Income and Other Comprehensive Income. Blackstone’s Other Comprehensive Income is comprised of foreign currency cumulative translation adjustments.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Compensation and Benefits
Compensation and Benefits
—
Compensation
— Compensation consists of (a) salary and bonus, and benefits paid and payable to employees and senior managing directors and (b) equity-based compensation associated with the grants of equity-based awards to employees and senior managing directors. Compensation cost relating to the issuance of equity-based awards to senior managing directors and employees is measured at fair value at the grant date, and expensed over the vesting period on a straight-line basis, taking into consideration expected forfeitures, except in the case of (a) equity-based awards that do not require future service, which are expensed immediately, and (b) certain awards to recipients that meet criteria making them eligible for retirement (allowing such recipient to keep a percentage of those awards upon departure from Blackstone after becoming eligible for retirement), for which the expense for the portion of the award that would be retained in the event of retirement is either expensed immediately or amortized to the retirement date. Cash settled equity-based awards and awards settled in a variable number of shares are classified as liabilities and are remeasured at the end of each reporting period.
Compensation and Benefits — Incentive Fee Compensation —
Incentive Fee Compensation consists of compensation paid based on Incentive Fees.
Compensation and Benefits — Performance Allocations Compensation —
Performance Allocation Compensation consists of compensation paid based on Performance Allocations (which may be distributed in cash or
in-kind).
Such compensation expense is subject to both positive and negative adjustments. Performance Allocations Compensation is generally based on the performance of individual investments held by a fund rather than on a fund by fund basis. These amounts may also include allocations of investment income from Blackstone’s principal investments, to senior managing directors and employees participating in certain profit sharing initiatives.
Non-Controlling
Interests in Consolidated Entities
Non-Controlling
Interests in Consolidated Entities represent the component of Equity in general partner entities and consolidated Blackstone Funds held by third-party investors and employees. The percentage interests in consolidated Blackstone Funds held by third parties and employees is adjusted for general partner allocations and by subscriptions and redemptions in funds of hedge funds and certain credit-focused funds which occur during the reporting period. Income (Loss) and other comprehensive income, if applicable, arising from the respective entities is allocated to
non-controlling
interests in consolidated entities based on the relative ownership interests of third-party investors and employees after considering any contractual arrangements that govern the allocation of income (loss) such as fees allocable to Blackstone Inc.
Redeemable
Non-Controlling
Interests in Consolidated Entities
Investors in certain consolidated vehicles may be granted redemption rights that allow for quarterly or monthly redemption, as outlined in the relevant governing documents. Such redemption rights may be subject to certain limitations, including limits on the aggregate amount of interests that may be redeemed in a given period, may only allow for redemption following the expiration of a specified period of time, or may be withdrawn subject to a redemption fee during the period when capital may not be withdrawn. As a result, amounts relating to third-party interests in such consolidated vehicles are presented as Redeemable
Non-Controlling
Interests in Consolidated Entities within the Consolidated Statements of Financial Condition. When redeemable amounts become legally payable to investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. For all consolidated vehicles in which redemption rights have not been granted,
non-controlling
interests are presented within Equity in the Consolidated Statements of Financial Condition as
Non-Controlling
Interests in Consolidated Entities.
Non-Controlling
Interests in Blackstone Holdings
Non-Controlling
Interests in Blackstone Holdings represent the component of Equity in the consolidated Blackstone Holdings Partnerships held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Certain costs and expenses are borne directly by the Holdings Partnerships. Income (Loss), excluding those costs directly borne by and attributable to the Holdings Partnerships, is attributable to
Non-Controlling
Interests in Blackstone Holdings. This residual attribution is based on the year-to-date average percentage of Blackstone Holdings Partnership Units and unvested participating Holdings Partnership Units held by Blackstone personnel and others who are limited partners of the Blackstone Holdings Partnerships. Unvested participating Holdings Partnership Units are excluded from the attribution in periods of loss as they are not contractually obligated to share in losses of the Holdings Partnerships.
Other Income
Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations include net realized gains (losses) from realizations and sales of investments, the net change in unrealized gains (losses) resulting from changes in the fair value of investments and interest income and expense and dividends attributable to the consolidated Blackstone Funds’ investments.
Expenses incurred by consolidated Blackstone funds are separately presented within Fund Expenses in the Consolidated Statements of Operations.
Other Income also includes amounts attributable to the Reduction of the Tax Receivable Agreement Liability. See Note 14. “Income Taxes — Other Income — Change in the Tax Receivable Agreement Liability” for additional information.
Income Taxes
Blackstone Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local income taxes on Blackstone’s share of taxable income. The Blackstone Holdings Partnerships and certain of their subsidiaries operate in the U.S. as partnerships for U.S. federal income tax purposes and generally as corporate entities in
non-U.S.
jurisdictions. Accordingly, these entities in some cases are subject to New York City unincorporated business taxes or
non-U.S.
income taxes. In addition, certain of the wholly owned subsidiaries of Blackstone and the Blackstone Holdings Partnerships will be subject to federal, state and local corporate income taxes at the entity level and the related tax provision attributable to Blackstone’s share of this income tax is reflected in the consolidated financial statements. Cash paid for transferrable tax credits is reflected in Payments for Income Taxes in the Consolidated Statements of Cash Flows.
Provision for Income Taxes
Income taxes are provided for using the asset and liability method under which deferred tax assets and liabilities are recognized for temporary differences between the financial reporting and tax bases of assets and liabilities, resulting in all pretax amounts being appropriately tax effected in the period, irrespective of which tax return year items will be reflected. Blackstone reports interest expense and tax penalties related to income tax matters in provision for income taxes.
Deferred Income Taxes
Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities. These temporary differences result in taxable or deductible amounts in future years and are measured using the tax rates and laws that will be in effect when such differences are expected to reverse. Valuation allowances are established to reduce the deferred tax assets to the amount that is more likely than not to be realized. Deferred tax assets are separately stated, and deferred tax liabilities are included in Accounts Payable, Accrued Expenses, and Other Liabilities in the consolidated financial statements.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Unrecognized Tax Benefits
Blackstone recognizes tax positions in the consolidated financial statements when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in the return and amounts recognized in the consolidated financial statements. Accrued interest and penalties related to unrecognized tax benefits are reported on the related liability line in the consolidated financial statements.
Net Income (Loss) Per Share of Common Stock
Basic Income (Loss) Per Share of Common Stock is calculated by dividing Net Income (Loss) Attributable to Blackstone Inc. by the weighted-average shares of common stock, unvested participating shares of common stock outstanding for the period and vested deferred restricted shares of common stock that have been earned for which issuance of the related shares of common stock is deferred until future periods. Diluted Income (Loss) Per Share of Common Stock reflects the impact of all dilutive securities. Unvested participating shares of common stock are excluded from the computation in periods of loss as they are not contractually obligated to share in losses.
Blackstone applies the treasury stock method to determine the dilutive weighted-average common shares outstanding for certain equity-based compensation awards. Blackstone applies the
“if-converted”
method to the Blackstone Holdings Partnership Units to determine the dilutive impact, if any, of the exchange right included in the Blackstone Holdings Partnership Units. Blackstone applies the contingently issuable share model to contracts that may require the issuance of shares.
Reverse Repurchase and Repurchase Agreements
Securities purchased under agreements to resell (“reverse repurchase agreements”) and securities sold under agreements to repurchase (“repurchase agreements”), generally comprised of U.S. and
non-U.S.
government and agency securities, asset backed securities and corporate debt, represent collateralized financing transactions. Such transactions are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition at their contractual amounts and include accrued interest. The carrying value of reverse repurchase and repurchase agreements approximates fair value.
Blackstone manages credit exposure arising from reverse repurchase agreements and repurchase agreements by, in appropriate circumstances, entering into master netting agreements and collateral arrangements with counterparties that provide Blackstone, in the event of a counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.
Blackstone takes possession of securities purchased under reverse repurchase agreements and is permitted to repledge, deliver or otherwise use such securities. Blackstone also pledges its financial instruments to counterparties to collateralize repurchase agreements. Financial instruments pledged that can be repledged, delivered or otherwise used by the counterparty are recorded in Investments in the Consolidated Statements of Financial Condition. Additional disclosures relating to repurchase agreements are included in Note 9. “Repurchase Agreements.”
Blackstone does not offset assets and liabilities relating to reverse repurchase agreements and repurchase agreements in its Consolidated Statements of Financial Condition. Additional disclosures relating to offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities.”
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Securities Sold, Not Yet Purchased
Securities Sold, Not Yet Purchased consist of equity and debt securities that Blackstone has borrowed and sold. Blackstone is required to “cover” its short sale in the future by purchasing the security at prevailing market prices and delivering it to the counterparty from which it borrowed the security. Blackstone is exposed to loss in the event that the price at which a security may have to be purchased to cover a short sale exceeds the price at which the borrowed security was sold short.
Securities Sold, Not Yet Purchased are recorded at fair value within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
Derivative Instruments
Blackstone recognizes all derivatives as assets or liabilities on its Consolidated Statements of Financial Condition at fair value. On the date Blackstone enters into a derivative contract, it designates and documents each derivative contract as one of the following: (a) a hedge of a recognized asset or liability (“fair value hedge”), (b) a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (c) a hedge of a net investment in a foreign operation, or (d) a derivative instrument not designated as a hedging instrument (“freestanding derivative”).
For freestanding derivative contracts, Blackstone presents changes in fair value in current period earnings. Changes in the fair value of derivative instruments held by consolidated Blackstone Funds are reflected in Net Gains (Losses) from Fund Investment Activities or, where derivative instruments are held by Blackstone, within Investment Income (Loss) in the Consolidated Statements of Operations. The fair value of freestanding derivative assets of the consolidated Blackstone Funds are recorded within Investments, the fair value of freestanding derivative assets that are not part of the consolidated Blackstone Funds are recorded within Other Assets and the fair value of freestanding derivative liabilities are recorded within Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
Blackstone has elected to not offset derivative assets and liabilities or financial assets in its Consolidated Statements of Financial Condition, including cash, that may be received or paid as part of collateral arrangements, even when an enforceable master netting agreement is in place that provides Blackstone, in the event of counterparty default, the right to liquidate collateral and the right to offset a counterparty’s rights and obligations.
Blackstone’s other disclosures regarding derivative financial instruments are discussed in Note 5. “Derivative Financial Instruments.”
Blackstone’s disclosures regarding offsetting are discussed in Note 11. “Offsetting of Assets and Liabilities.”
Leases
Blackstone determines if an arrangement is a lease at inception of the arrangement. Blackstone primarily enters into operating leases, as the lessee, for office space. Operating leases are included in
Right-of-Use
(“ROU”) Assets and Operating Lease Liabilities in the Consolidated Statement of Financial Condition. ROU Assets and Operating Lease Liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Blackstone determines the present value of the lease payments using an incremental borrowing rate based on information available at the inception date. Leases may include options to extend or terminate the lease which are included in the ROU Assets and Operating Lease Liability when they are reasonably certain of exercise.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Certain leases include lease and nonlease components, which are accounted for as one single lease component. Occupancy lease agreements, in addition to contractual rent payments, generally include additional payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these are fixed or determinable, they are included as part of the minimum lease payments used to measure the Operating Lease Liability. Operating lease expense associated with minimum lease payments is recognized on a straight-line basis over the lease term. When additional payments are based on usage or vary based on other factors, they are expensed when incurred as variable lease expense.
Minimum lease payments for leases with an initial term of twelve months or less are not recorded on the Consolidated Statement of Financial Condition. Blackstone recognizes lease expense for these leases on a straight-line basis over the lease term.
Additional disclosures relating to leases are discussed in Note 13. “Leases.”
Affiliates
Blackstone considers its Founder, senior managing directors, employees, the Blackstone Funds and the portfolio companies to be affiliates.
Dividends
Dividends are reflected in the consolidated financial statements when declared.
Recent Accounting Developments
In December 2023, the Financial Accounting Standards Board issued amended guidance addressing income tax disclosures. The guidance requires greater disaggregation of information in the effective income tax rate reconciliation and income taxes paid disclosure. The new guidance was effective for Blackstone for the year ended December 31, 2025, and was adopted on a prospective basis. Adoption of the amended guidance resulted only in changes to presentation and disclosure. Related disclosures are included within Note 14. “Income Taxes.”
| 3. | Goodwill and Intangible Assets |
|---|
The carrying
value of Goodwill was $
1.9
billion as of December 31, 2025 and 2024. At December 31, 2025 and 2024, Blackstone determined there was no evidence of Goodwill impairment.
At December
31, 2025 and 2024, Goodwill has been allocated to each of Blackstone’s
four
segments as follows: Real Estate ($
421.7
million), Private Equity ($
870.0
million), Credit & Insurance ($
366.7
million) and Multi-Asset Investing ($
231.8
million).
Intangible Assets, Net consists of the following:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Finite-Lived Intangible Assets/Contractual Rights | $ | 1,749,626 | $ | 1,769,372 | ||||
| Accumulated Amortization | (1,618,267 | ) | (1,604,129 | ) | ||||
| Intangible Assets, Net | $ | 131,359 | $ | 165,243 | ||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Changes in Blackstone’s Intangible Assets, Net consists of the following:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Balance, Beginning of Year | $ | 165,243 | $ | 201,208 | $ | 217,287 | ||||||
| Amortization Expense | (36,023 | ) | (35,965 | ) | (40,075 | ) | ||||||
| Acquisitions | 2,139 | — | 23,996 | |||||||||
| Balance, End of Year | $ | 131,359 | $ | 165,243 | $ | 201,208 | ||||||
Amortization
of Intangible Assets held at December 31, 2025 is expected to be $36.1
million, $
35.1
million, $
18.2
million, $
17.0
million and $
14.0
million for each of the years ending December 31, 2026, 2027, 2028, 2029 and 2030, respectively. Blackstone’s Intangible Assets as of December 31, 2025 are expected to amortize over a weighted-average period of
4.5
years.
| 4. | Investments |
|---|
Investments consist of the following:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Investments of Consolidated Blackstone Funds | $ | 5,180,879 | $ | 3,890,732 | ||||
| Equity Method Investments | ||||||||
| Partnership Investments | 6,546,190 | 6,546,728 | ||||||
| Accrued Performance Allocations | 12,980,356 | 12,397,366 | ||||||
| Corporate Treasury Investments | 359,657 | 1,147,328 | ||||||
| Other Investments | 7,145,029 | 5,818,412 | ||||||
| $ | 32,212,111 | $ | 29,800,566 | |||||
Blackstone’s
share of Investments of Consolidated Blackstone Funds totaled $472.7
million and $
439.7
million at December 31, 2025 and December 31, 2024, respectively.
Where appropriate, the accounting for Blackstone’s investments incorporates the changes in fair value of those investments as determined under GAAP. The significant inputs and assumptions required to determine the change in fair value of the investments of Consolidated Blackstone Funds, Corporate Treasury Investments and Other Investments are discussed in more detail in Note 7. “Fair Value Measurements of Financial Instruments.”
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Investments of Consolidated Blackstone Funds
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on investments held by the consolidated Blackstone Funds and a reconciliation to Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Gains (Losses) | $ | 95,758 | $ | (19,139 | ) | $ | (42,756 | ) | ||||
| Net Change in Unrealized Gains (Losses) | 233,867 | 92,834 | (80,416 | ) | ||||||||
| Realized and Net Change in Unrealized Gains (Losses) from Consolidated Blackstone Funds | 329,625 | 73,695 | (123,172 | ) | ||||||||
| Interest and Dividend Revenue, Foreign Exchange Gains and Other Gains Attributable to Consolidated Blackstone Funds | 87,772 | 16,389 | 66,371 | |||||||||
| Other Income (Loss) — Net Gains (Losses) from Fund Investment Activities | $ | 417,397 | $ | 90,084 | $ | (56,801 | ) | |||||
Equity Method Investments
Blackstone’s equity method investments include Partnership Investments, which represent the
pro-rata
investments, and any associated Accrued Performance Allocations, in Blackstone Funds, excluding any equity method investments for which the fair value option has been elected. Blackstone evaluates each of its equity method investments, excluding Accrued Performance Allocations, to determine if any were significant as defined by guidance from the United States Securities and Exchange Commission. As of and for the years ended December 31, 2025, 2024 and 2023, no individual equity method investment held by Blackstone met the significance criteria.
Partnership Investments
Blackstone
recognized net gains related to its Partnership Investments accounted for under the equity method of $
800.7
million, $
605.4
million and $
245.8
million for the years ended December 31
, 2025
, 2024
and 2023
, respectively.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The summarized financial information of Blackstone’s equity method investments for December 31, 2025 are as follows:
| December 31, 2025 and the Year Then Ended | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total | ||||||||||||||||
| Statement of Financial Condition | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Investments | $ | 257,286,943 | $ | 281,785,789 | $ | 137,445,214 | $ | 43,044,033 | $ | 719,561,979 | ||||||||||
| Other Assets | 12,702,310 | 7,131,499 | 8,604,102 | 2,743,724 | 31,181,635 | |||||||||||||||
| Total Assets | $ | 269,989,253 | $ | 288,917,288 | $ | 146,049,316 | $ | 45,787,757 | $ | 750,743,614 | ||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Debt | $ | 101,907,668 | $ | 29,634,750 | $ | 57,096,895 | $ | 179,164 | $ | 188,818,477 | ||||||||||
| Other Liabilities | 7,045,621 | 4,826,121 | 6,346,597 | 1,357,367 | 19,575,706 | |||||||||||||||
| Total Liabilities | 108,953,289 | 34,460,871 | 63,443,492 | 1,536,531 | 208,394,183 | |||||||||||||||
| Equity | 161,035,964 | 254,456,417 | 82,605,824 | 44,251,226 | 542,349,431 | |||||||||||||||
| Total Liabilities and Equity | $ | 269,989,253 | $ | 288,917,288 | $ | 146,049,316 | $ | 45,787,757 | $ | 750,743,614 | ||||||||||
| Statement of Operations | ||||||||||||||||||||
| Interest Income | $ | 3,207,933 | $ | 858,848 | $ | 10,854,387 | $ | 211,147 | $ | 15,132,315 | ||||||||||
| Other Income | 10,712,682 | 2,354,457 | 641,386 | 42,776 | 13,751,301 | |||||||||||||||
| Interest Expense | (6,653,550 | ) | (1,901,600 | ) | (3,069,162 | ) | (12,337 | ) | (11,636,649 | ) | ||||||||||
| Other Expenses | (12,575,335 | ) | (2,628,202 | ) | (2,315,210 | ) | (231,052 | ) | (17,749,799 | ) | ||||||||||
| Net Realized and Unrealized Gain (Loss) from Investments | 2,116,640 | 34,563,324 | (147,485 | ) | 4,827,393 | 41,359,872 | ||||||||||||||
| Net Income (Loss) | $ | (3,191,630 | ) | $ | 33,246,827 | $ | 5,963,916 | $ | 4,837,927 | $ | 40,857,040 | |||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The summarized financial information of Blackstone’s equity method investments for December 31, 2024 are as follows:
| December 31, 2024 and the Year Then Ended | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total | ||||||||||||||||
| Statement of Financial Condition | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Investments | $ | 270,306,524 | $ | 226,288,905 | $ | 120,658,563 | $ | 33,758,058 | $ | 651,012,050 | ||||||||||
| Other Assets | 14,990,868 | 7,948,890 | 6,511,331 | 2,409,862 | 31,860,951 | |||||||||||||||
| Total Assets | $ | 285,297,392 | $ | 234,237,795 | $ | 127,169,894 | $ | 36,167,920 | $ | 682,873,001 | ||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Debt | $ | 112,085,824 | $ | 27,581,552 | $ | 49,403,806 | $ | 266,931 | $ | 189,338,113 | ||||||||||
| Other Liabilities | 6,752,800 | 3,773,648 | 4,680,341 | 645,001 | 15,851,790 | |||||||||||||||
| Total Liabilities | 118,838,624 | 31,355,200 | 54,084,147 | 911,932 | 205,189,903 | |||||||||||||||
| Equity | 166,458,768 | 202,882,595 | 73,085,747 | 35,255,988 | 477,683,098 | |||||||||||||||
| Total Liabilities and Equity | $ | 285,297,392 | $ | 234,237,795 | $ | 127,169,894 | $ | 36,167,920 | $ | 682,873,001 | ||||||||||
| Statement of Operations | ||||||||||||||||||||
| Interest Income | $ | 4,539,867 | $ | 697,624 | $ | 9,567,357 | $ | 204,281 | $ | 15,009,129 | ||||||||||
| Other Income | 10,702,305 | 2,618,913 | 1,151,506 | 10,959 | 14,483,683 | |||||||||||||||
| Interest Expense | (7,581,761 | ) | (1,718,896 | ) | (2,913,721 | ) | (10,922 | ) | (12,225,300 | ) | ||||||||||
| Other Expenses | (11,570,892 | ) | (2,223,931 | ) | (2,020,440 | ) | (153,459 | ) | (15,968,722 | ) | ||||||||||
| Net Realized and Unrealized Gain (Loss) from Investments | (4,805,753 | ) | 23,076,302 | 2,056,892 | 3,621,672 | 23,949,113 | ||||||||||||||
| Net Income (Loss) | $ | (8,716,234 | ) | $ | 22,450,012 | $ | 7,841,594 | $ | 3,672,531 | $ | 25,247,903 | |||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The summarized financial information of Blackstone’s equity method investments for December 31, 2023 are as follows:
| December 31, 2023 and the Year Then Ended | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total | ||||||||||||||||
| Statement of Financial Condition | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Investments | $ | 283,919,193 | $ | 196,798,070 | $ | 91,574,839 | $ | 30,667,406 | $ | 602,959,508 | ||||||||||
| Other Assets | 12,496,703 | 5,514,318 | 4,995,562 | 4,354,754 | 27,361,337 | |||||||||||||||
| Total Assets | $ | 296,415,896 | $ | 202,312,388 | $ | 96,570,401 | $ | 35,022,160 | $ | 630,320,845 | ||||||||||
| Liabilities and Equity | ||||||||||||||||||||
| Debt | $ | 113,462,431 | $ | 22,205,324 | $ | 37,327,026 | $ | 179,610 | $ | 173,174,391 | ||||||||||
| Other Liabilities | 7,365,824 | 2,791,378 | 4,008,215 | 3,145,046 | 17,310,463 | |||||||||||||||
| Total Liabilities | 120,828,255 | 24,996,702 | 41,335,241 | 3,324,656 | 190,484,854 | |||||||||||||||
| Equity | 175,587,641 | 177,315,686 | 55,235,160 | 31,697,504 | 439,835,991 | |||||||||||||||
| Total Liabilities and Equity | $ | 296,415,896 | $ | 202,312,388 | $ | 96,570,401 | $ | 35,022,160 | $ | 630,320,845 | ||||||||||
| Statement of Operations | ||||||||||||||||||||
| Interest Income | $ | 4,673,775 | $ | 1,779,971 | $ | 8,890,426 | $ | 20,995 | $ | 15,365,167 | ||||||||||
| Other Income | 10,786,480 | 1,130,841 | 324,061 | 382,840 | 12,624,222 | |||||||||||||||
| Interest Expense | (6,614,272 | ) | (1,340,522 | ) | (2,583,654 | ) | (5,872 | ) | (10,544,320 | ) | ||||||||||
| Other Expenses | (11,705,874 | ) | (2,631,916 | ) | (1,691,066 | ) | (273,193 | ) | (16,302,049 | ) | ||||||||||
| Net Realized and Unrealized Gain (Loss) from Investments | (7,330,220 | ) | 12,995,425 | 1,124,916 | 2,579,602 | 9,329,723 | ||||||||||||||
| Net Income | $ | (10,190,111 | ) | $ | 11,893,799 | $ | 6,064,683 | $ | 2,704,372 | $ | 10,472,743 | |||||||||
Accrued Performance Allocations
Accrued Performance Allocations to Blackstone were as follows:
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total | ||||||||||||||||
| Accrued Performance Allocations, December 31, 2024 | $ | 1,986,017 | $ | 9,461,936 | $ | 801,849 | $ | 147,564 | $ | 12,397,366 | ||||||||||
| Performance Allocations as a Result of Changes in Fund Fair Values | 156,868 | 4,008,315 | 194,825 | 302,372 | 4,662,380 | |||||||||||||||
| Foreign Exchange Gain | 5,710 | — | — | — | 5,710 | |||||||||||||||
| Fund Distributions | (386,099 | ) | (3,080,900 | ) | (356,087 | ) | (262,014 | ) | (4,085,100 | ) | ||||||||||
| Accrued Performance Allocations, December 31, 2025 | $ | 1,762,496 | $ | 10,389,351 | $ | 640,587 | $ | 187,922 | $ | 12,980,356 | ||||||||||
Corporate Treasury Investments
The portion of corporate treasury investments included in Investments represents Blackstone’s investments into primarily fixed income securities, mutual fund interests, and other fund interests. These strategies are managed by a combination of Blackstone personnel and third-party advisors. The following table presents the Realized and Net Change in Unrealized Gains (Losses) on these investments:
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Gains (Losses) | $ | (5,389 | ) | $ | (3,234 | ) | $ | (4,881 | ) | |||
| Net Change in Unrealized Gains | 30,846 | 17,269 | 17,392 | |||||||||
| $ | 25,457 | $ | 14,035 | $ | 12,511 | |||||||
Other Investments
Other Investments consist of equity method investments where Blackstone has elected the fair value option and other proprietary investment securities held by Blackstone, including equity securities carried at fair value, equity investments without readily determinable fair values, and senior secured and subordinated notes in
non-consolidated
CLO vehicles. Equity investments without a readily determinable fair value had a carrying value of $
459.6
million as of December 31, 2025. In the period of acquisition and upon remeasurement in connection with an observable transaction, such investments are reported at fair value. See Note 7. “Fair Value Measurements of Financial Instruments” for additional detail. Upward and downward adjustments related to such investments held as of December 31, 2025 were $
86.9
million and $
9.2
million, respectively, during the year ended December 31, 2025, and $
287.2
million and $
19.3
million on a cumulative basis since the inception of the investments, respectively.
The following table presents Blackstone’s Realized and Net Change in Unrealized Gains (Losses) in Other Investments:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Gains (Losses) | $ | 110,407 | $ | 6,570 | $ | (19,346 | ) | |||||
| Net Change in Unrealized Gains (Losses) | 181,780 | 436,061 | (47,017 | ) | ||||||||
| $ | 292,187 | $ | 442,631 | $ | (66,363 | ) | ||||||
| 5. | Derivative Financial Instruments |
|---|
Blackstone and the consolidated Blackstone Funds enter into derivative contracts in the normal course of business to achieve certain risk management objectives and for general investment and business purposes. Blackstone may enter into derivative contracts in order to hedge its interest rate risk exposure against the effects of interest rate changes. Additionally, Blackstone may also enter into derivative contracts in order to hedge its foreign currency risk exposure against the effects of a portion of its
non-U.S.
dollar denominated currency net investments. As a result of the use of derivative contracts, Blackstone and the consolidated Blackstone Funds are exposed to the risk that counterparties will fail to fulfill their contractual obligations. To mitigate such counterparty risk, Blackstone and the consolidated Blackstone Funds enter into contracts with certain major financial institutions, all of which have investment grade ratings. Counterparty credit risk is evaluated in determining the fair value of derivative instruments.
Freestanding Derivatives
Freestanding derivatives are instruments that Blackstone and certain of the consolidated Blackstone Funds have entered into as part of their overall risk management and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include interest rate swaps, foreign exchange contracts, equity swaps, options, futures and other derivative contracts.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The table below summarizes the aggregate notional amount and fair value of the derivative financial instruments. The notional amount represents the absolute value amount of all outstanding derivative contracts.
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||
| Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||||||||
| Notional | Fair Value | Notional | Fair Value | Notional | Fair Value | Notional | Fair Value | |||||||||||||||||||||||||
| Freestanding Derivatives | ||||||||||||||||||||||||||||||||
| Blackstone | ||||||||||||||||||||||||||||||||
| Interest Rate Contracts | $ | 613,740 | $ | 123,747 | $ | 601,000 | $ | 97,283 | $ | 624,740 | $ | 166,126 | $ | 600,000 | $ | 107,425 | ||||||||||||||||
| Foreign Currency Contracts | 443,001 | 7,446 | 1,030,702 | 17,310 | 239,365 | 4,030 | 479,383 | 14,198 | ||||||||||||||||||||||||
| Credit Default Swaps | — | — | 640 | 19 | — | — | 640 | 10 | ||||||||||||||||||||||||
| Total Return Swaps | 23,532 | 3,364 | — | — | 58,263 | 10,153 | — | — | ||||||||||||||||||||||||
| Equity Options | — | — | 1,462,632 | 1,124,147 | — | — | 1,139,400 | 938,216 | ||||||||||||||||||||||||
| 1,080,273 | 134,557 | 3,094,974 | 1,238,759 | 922,368 | 180,309 | 2,219,423 | 1,059,849 | |||||||||||||||||||||||||
| Investments of Consolidated Blackstone Funds | ||||||||||||||||||||||||||||||||
| Interest Rate Contracts | 880,390 | 12,780 | 880,390 | 12,780 | 785,790 | 13,243 | 915,215 | 15,918 | ||||||||||||||||||||||||
| 880,390 | 12,780 | 880,390 | 12,780 | 785,790 | 13,243 | 915,215 | 15,918 | |||||||||||||||||||||||||
| $ | 1,960,663 | $ | 147,337 | $ | 3,975,364 | $ | 1,251,539 | $ | 1,708,158 | $ | 193,552 | $ | 3,134,638 | $ | 1,075,767 | |||||||||||||||||
The table below summarizes the impact to the Consolidated Statements of Operations from derivative financial instruments:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Freestanding Derivatives | ||||||||||||
| Realized Gains (Losses) | ||||||||||||
| Interest Rate Contracts | $ | (2,586 | ) | $ | 1,051 | $ | 24,291 | |||||
| Foreign Currency Contracts | (1,091 | ) | 9,193 | 443 | ||||||||
| Credit Default Swaps | 6 | 75 | (413 | ) | ||||||||
| Total Return Swaps | 17,146 | 21,080 | 15,775 | |||||||||
| 13,475 | 31,399 | 40,096 | ||||||||||
| Net Change in Unrealized Gains (Losses) | ||||||||||||
| Interest Rate Contracts | (21,176 | ) | 10,291 | (87,177 | ) | |||||||
| Foreign Currency Contracts | 305 | (17,954 | ) | 3,288 | ||||||||
| Credit Default Swaps | (15 | ) | (55 | ) | 363 | |||||||
| Total Return Swaps | (5,046 | ) | (2,837 | ) | 6,381 | |||||||
| Equity Options | (185,931 | ) | (374,230 | ) | (515,405 | ) | ||||||
| (211,863 | ) | (384,785 | ) | (592,550 | ) | |||||||
| $ | (198,388 | ) | $ | (353,386 | ) | $ | (552,454 | ) | ||||
As of December 31, 2025, 2024 and 2023, Blackstone had not designated any derivatives as fair value, cash flow or net investment
hedges
.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| 6. | Fair Value Option |
|---|
The following table summarizes the financial instruments for which the fair value option has been elected:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Loans and Receivables | $ | 205,158 | $ | 100,866 | ||||
| Equity and Preferred Securities | 4,880,907 | 4,498,617 | ||||||
| Debt Securities | 7,553 | 63,671 | ||||||
| Assets of Consolidated CLO Vehicles | ||||||||
| Corporate Loans | — | 62,426 | ||||||
| $ | 5,093,618 | $ | 4,725,580 | |||||
| Liabilities | ||||||||
| CLO Notes Payable | $ | — | $ | 87,488 | ||||
| Corporate Treasury Commitments | 181 | 368 | ||||||
| $ | 181 | $ | 87,856 | |||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table presents the Realized and Net Change in Unrealized Gains (Losses) on financial instruments on which the fair value option was elected:
| Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||
| Net Change | Net Change | Net Change | ||||||||||||||||||||||
| Realized | in Unrealized | Realized | in Unrealized | Realized | in Unrealized | |||||||||||||||||||
| Gains | Gains | Gains | Gains | Gains | Gains | |||||||||||||||||||
| (Losses) | (Losses) | (Losses) | (Losses) | (Losses) | (Losses) | |||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Loans and Receivables | $ | (1,582 | ) | $ | 3,004 | $ | (4,849 | ) | $ | 12 | $ | (8,053 | ) | $ | 4,886 | |||||||||
| Equity and Preferred Securities | (4,937 | ) | 128,249 | 9,431 | (48,209 | ) | (1,439 | ) | (122,605 | ) | ||||||||||||||
| Debt Securities | (11,749 | ) | 4,722 | — | (2,694 | ) | — | (3,884 | ) | |||||||||||||||
| Assets of Consolidated CLO Vehicles | ||||||||||||||||||||||||
| Corporate Loans | (1,712 | ) | 1,038 | (3,828 | ) | 2,889 | (6,063 | ) | 8,728 | |||||||||||||||
| $ | (19,980 | ) | $ | 137,013 | $ | 754 | $ | (48,002 | ) | $ | (15,555 | ) | $ | (112,875 | ) | |||||||||
| Liabilities | ||||||||||||||||||||||||
| CLO Notes Payable | $ | — | $ | 859 | $ | — | $ | 2,178 | $ | — | $ | 282 | ||||||||||||
| Corporate Treasury Commitments | — | 187 | — | 896 | — | 6,880 | ||||||||||||||||||
| $ | — | $ | 1,046 | $ | — | $ | 3,074 | $ | — | $ | 7,162 | |||||||||||||
The following table presents information for those financial instruments for which the fair value option was elected:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| For Financial Assets Past Due (a) | For Financial Assets Past Due (a) | |||||||||||||||||||||||
| Excess | Excess | Excess | Excess | |||||||||||||||||||||
| (Deficiency) | (Deficiency) | (Deficiency) | (Deficiency) | |||||||||||||||||||||
| of Fair Value | Fair | of Fair Value | of Fair Value | Fair | of Fair Value | |||||||||||||||||||
| Over Principal | Value | Over Principal | Over Principal | Value | Over Principal | |||||||||||||||||||
| Loans and Receivables | $ | 5,490 | $ | — | $ | — | $ | 2,769 | $ | — | $ | — | ||||||||||||
| Debt Securities | (48,690 | ) | — | — | (55,890 | ) | — | — | ||||||||||||||||
| Assets of Consolidated CLO Vehicles | ||||||||||||||||||||||||
| Corporate Loans | — | — | — | (2,478 | ) | 1,359 | — | |||||||||||||||||
| $ | (43,200 | ) | $ | — | $ | — | $ | (55,599 | ) | $ | 1,359 | $ | — | |||||||||||
| (a) | Assets are classified as past due if contractual payments are more than 90 days past due. |
|---|
As of December
31, 2025 and 2024,
no
Loans and Receivables for which the fair value option was elected were past due or in
non-accrual
status. As of December 31, 2025, there were
no
Corporate Loans included within the Assets of Consolidated CLO Vehicles for which the fair value option was elected that were past due but not in
non-accrual
status. As of December 31, 2024, there were
two
Corporate Loans included within the Assets of Consolidated CLO Vehicles for which the fair value option was elected that were past due but not in
non-accrual
status.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| 7. | Fair Value Measurements of Financial Instruments |
|---|
Financial Assets and Liabilities by the Fair Value Hierarchy
The following tables summarize the valuation of Blackstone’s financial assets and liabilities by the fair value hierarchy:
| December 31, 2025 | ||||||||||||||||||||
| Level I | Level II | Level III | NAV (a) | Total | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and Cash Equivalents | $ | 182,131 | $ | — | $ | — | $ | — | $ | 182,131 | ||||||||||
| Investments | ||||||||||||||||||||
| Investments of Consolidated Blackstone Funds | ||||||||||||||||||||
| Equity Securities, Partnerships and LLC Interests (b) | 7,616 | 197,396 | 4,103,478 | 819,419 | 5,127,909 | |||||||||||||||
| Debt Instruments | — | 19,578 | 20,612 | — | 40,190 | |||||||||||||||
| Freestanding Derivatives | — | 12,780 | — | — | 12,780 | |||||||||||||||
| Total Investments of Consolidated Blackstone Funds | 7,616 | 229,754 | 4,124,090 | 819,419 | 5,180,879 | |||||||||||||||
| Corporate Treasury Investments | 74,930 | 42,675 | 181,052 | 61,000 | 359,657 | |||||||||||||||
| Other Investments | 2,207,914 | 4,313,592 | 198,393 | 15,808 | 6,735,707 | |||||||||||||||
| Total Investments | 2,290,460 | 4,586,021 | 4,503,535 | 896,227 | 12,276,243 | |||||||||||||||
| Accounts Receivable — Loans and Receivables | — | — | 205,158 | — | 205,158 | |||||||||||||||
| Other Assets — Freestanding Derivatives | — | 131,193 | 3,364 | — | 134,557 | |||||||||||||||
| $ | 2,472,591 | $ | 4,717,214 | $ | 4,712,057 | $ | 896,227 | $ | 12,798,089 | |||||||||||
| Liabilities | ||||||||||||||||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | ||||||||||||||||||||
| Consolidated Blackstone Funds — Freestanding Derivatives | — | 12,780 | — | — | 12,780 | |||||||||||||||
| Freestanding Derivatives | — | 114,612 | 1,124,147 | — | 1,238,759 | |||||||||||||||
| Contingent Consideration | — | — | 416 | — | 416 | |||||||||||||||
| Corporate Treasury Commitments | — | — | 181 | — | 181 | |||||||||||||||
| Securities Sold, Not Yet Purchased | 1,978 | — | — | — | 1,978 | |||||||||||||||
| Total Accounts Payable, Accrued Expenses and Other Liabilities | 1,978 | 127,392 | 1,124,744 | — | 1,254,114 | |||||||||||||||
| $ | 1,978 | $ | 127,392 | $ | 1,124,744 | $ | — | $ | 1,254,114 | |||||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| December 31, 2024 | ||||||||||||||||||||
| Level I | Level II | Level III | NAV | Total | ||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and Cash Equivalents | $ | 60,799 | $ | — | $ | — | $ | — | $ | 60,799 | ||||||||||
| Investments | ||||||||||||||||||||
| Investments of Consolidated Blackstone Funds | ||||||||||||||||||||
| Equity Securities, Partnerships and LLC Interests (b) | 12,076 | 155,316 | 3,158,254 | 473,496 | 3,799,142 | |||||||||||||||
| Debt Instruments | — | 63,159 | 15,188 | — | 78,347 | |||||||||||||||
| Freestanding Derivatives | — | 13,243 | — | — | 13,243 | |||||||||||||||
| Total Investments of Consolidated Blackstone Funds | 12,076 | 231,718 | 3,173,442 | 473,496 | 3,890,732 | |||||||||||||||
| Corporate Treasury Investments | 67,729 | 565,968 | 450,345 | 63,286 | 1,147,328 | |||||||||||||||
| Other Investments | 2,089,838 | 3,182,353 | 179,522 | 6,289 | 5,458,002 | |||||||||||||||
| Total Investments | 2,169,643 | 3,980,039 | 3,803,309 | 543,071 | 10,496,062 | |||||||||||||||
| Accounts Receivable — Loans and Receivables | — | — | 100,866 | — | 100,866 | |||||||||||||||
| Other Assets — Freestanding Derivatives | — | 170,156 | 10,153 | — | 180,309 | |||||||||||||||
| $ | 2,230,442 | $ | 4,150,195 | $ | 3,914,328 | $ | 543,071 | $ | 10,838,036 | |||||||||||
| Liabilities | ||||||||||||||||||||
| Loans Payable — CLO Notes Payable | $ | — | $ | 87,488 | $ | — | $ | — | $ | 87,488 | ||||||||||
| Accounts Payable, Accrued Expenses and Other Liabilities | ||||||||||||||||||||
| Consolidated Blackstone Funds — Freestanding Derivatives | — | 15,918 | — | — | 15,918 | |||||||||||||||
| Freestanding Derivatives | — | 121,633 | 938,216 | — | 1,059,849 | |||||||||||||||
| Contingent Consideration | — | — | 504 | — | 504 | |||||||||||||||
| Corporate Treasury Commitments | — | — | 368 | — | 368 | |||||||||||||||
| Securities Sold, Not Yet Purchased | 1,916 | — | — | — | 1,916 | |||||||||||||||
| Total Accounts Payable, Accrued Expenses and Other Liabilities | 1,916 | 137,551 | 939,088 | — | 1,078,555 | |||||||||||||||
| $ | 1,916 | $ | 225,039 | $ | 939,088 | $ | — | $ | 1,166,043 | |||||||||||
LLC Limited Liability Company.
| (a) | A summary of the investments where the fair value is not readily determinable and NAV is used as a practical expedient as of December 31, 2025 is presented by strategy type below: |
|---|
| Strategy | Fair Value | Unfunded Commitments | Redemption Frequency (if currently eligible) | Redemption Notice Period | ||||||||
| Equity | $ | 44,357 | $ | — | (1) | (1) | ||||||
| Real Estate | 27,352 | — | (2) | (2) | ||||||||
| Infrastructure | 818,372 | 71,987 | (3) | (3) | ||||||||
| Credit Driven | 6,146 | — | (4) | (4) | ||||||||
| $ | 896,227 | $ | 71,987 | |||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| (1) | The Equity category includes investments in hedge funds that invest primarily in domestic and international equity securities. Investments representing 99% of the fair value of the investments in this category may not be redeemed at, or within three months of, the reporting date. Investments representing 1% of fair value of the investments in this category are in liquidation. |
|---|
| (2) | The Real Estate category includes investments in funds that primarily invest in real estate assets. All investments in this category are redeemable as of the reporting date. |
|---|
| (3) | The Infrastructure category includes investments in funds that primarily invest in infrastructure assets and companies. All investments in this category may not be redeemed at, or within three months of, the reporting date. |
|---|
| (4) | The Credit Driven category includes investments in hedge funds that invest primarily in domestic and international bonds. All investments in these categories may not be redeemed at, or within three months of, the reporting date. |
|---|
| (b) | Equity Securities, Partnership and LLC Interest includes investments in investment funds. |
|---|
Equity Securities Subject to Sale Restrictions
Within
Investments of Consolidated Blackstone Funds and Other Investments, Blackstone held equity securities subject to sale restrictions with a fair value of $
559.1
million as of December 31, 2025. The nature of such restrictions are contractual or legal in nature and deemed an attribute of the holder rather than the investment. Contractual restrictions include (a) certain phased restrictions on sale or transfer, (b) underwriter
lock-ups and (c) sale or transfer restrictions applicable to certain Investments of Consolidated Blackstone Funds pledged as collateral. Restrictions will generally lapse over time or after a predetermined date and the weighted-average remaining duration of such restrictions is
1.7
years. Level III equity securities included in Investments of Consolidated Blackstone Funds are illiquid and privately negotiated in nature and may also be subject to contractual sale or transfer restrictions including those pursuant to their respective governing or similar agreements. Investments within Other Investments subject to restrictions on sale or transfer as a result of pledge arrangements are discussed in Note 18. “Commitments and Contingencies — Contingencies — Strategic Ventures.”
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Level III Quantitative Inputs and Assumptions
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2025. Consistent with presentation in these Notes to Consolidated Financial Statements, this table presents the Level III Investments only of Consolidated Blackstone Funds and therefore does not reflect any other Blackstone Funds.
| Fair Value | Valuation Techniques | Unobservable Inputs | Ranges | Weighted- Average (a) | Impact to Valuation from an Increase in Input | |||||||||||||
| Financial Assets | ||||||||||||||||||
| Investments of Consolidated Blackstone Funds | ||||||||||||||||||
| Equity Securities, Partnership and LLC Interests | $ | 4,103,478 | Discounted Cash Flows | Discount Rate | 4.3 % - 41.1 % | 10.2 % | Lower | |||||||||||
| Exit Multiple - EBITDA | 5.0 x - 30.6 x | 16.6 x | Higher | |||||||||||||||
| Exit Capitalization Rate | 3.1 % - 15.3 % | 5.1 % | Lower | |||||||||||||||
| Debt Instruments | 20,612 | Discounted Cash Flows | Discount Rate | 6.1 % - 20.0 % | 12.2 % | Lower | ||||||||||||
| Total Investments of Consolidated Blackstone Funds | 4,124,090 | |||||||||||||||||
| Corporate Treasury Investments | 181,052 | Discounted Cash Flows | Discount Rate | 8.7 % - 11.1 % | 9.9 % | Lower | ||||||||||||
| Third-Party Pricing | n/a | |||||||||||||||||
| Loans and Receivables | 205,158 | Discounted Cash Flows | Discount Rate | 7.4 % - 18.3 % | 8.3 % | Lower | ||||||||||||
| Other | n/a | |||||||||||||||||
| Other Investments (b) | 201,757 | Discounted Cash Flows | Discount Rate | 7.2 % - 7.9 % | 7.5 % | Lower | ||||||||||||
| Transaction Price | n/a | |||||||||||||||||
| $ | 4,712,057 | |||||||||||||||||
| Financial Liabilities | ||||||||||||||||||
| Freestanding Derivatives (c) | $ | 1,124,147 | Option Pricing Model | Volatility | 5.7 % - 5.8 % | 5.7 % | Higher | |||||||||||
| Other Liabilities (d) | 597 | Third-Party Pricing | n/a | |||||||||||||||
| Other | n/a | |||||||||||||||||
| $ | 1,124,744 | |||||||||||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table summarizes the quantitative inputs and assumptions used for items categorized in Level III of the fair value hierarchy as of December 31, 2024:
| Fair Value | Valuation Techniques | Unobservable Inputs | Ranges | Weighted- Average (a) | Impact to Valuation from an Increase in Input | |||||||||||||
| Financial Assets | ||||||||||||||||||
| Investments of Consolidated Blackstone Funds | ||||||||||||||||||
| Equity Securities, Partnership and LLC Interests | $ | 3,158,254 | Discounted Cash Flows | Discount Rate | 4.2 % - 39.1 % | 10.4 % | Lower | |||||||||||
| Exit Multiple - EBITDA | 4.0 x - 30.6 x | 15.4 x | Higher | |||||||||||||||
| Exit Capitalization Rate | 3.1 % - 15.0 % | 5.2% | Lower | |||||||||||||||
| Debt Instruments | 15,188 | Third-Party Pricing | n/a | |||||||||||||||
| Total Investments of Consolidated Blackstone Funds | 3,173,442 | |||||||||||||||||
| Corporate Treasury Investments | 450,345 | Third-Party Pricing | n/a | |||||||||||||||
| Transaction Price | n/a | |||||||||||||||||
| Loans and Receivables | 100,866 | Discounted Cash Flows | Discount Rate | 8.4 % - 11.2 % | 9.3 % | Lower | ||||||||||||
| Other Investments (b) | 189,675 | Discounted Cash Flows | Discount Rate | 7.1 % - 7.7 % | 7.4 % | Lower | ||||||||||||
| Third-Party Pricing | n/a | |||||||||||||||||
| $ | 3,914,328 | |||||||||||||||||
| Financial Liabilities | ||||||||||||||||||
| Freestanding Derivatives (c) | $ | 938,216 | Option Pricing Model | Volatility | 6.0 % | n/a | Higher | |||||||||||
| Other Liabilities (d) | 872 | Third-Party Pricing | n/a | |||||||||||||||
| Other | n/a | |||||||||||||||||
| $ | 939,088 | |||||||||||||||||
| n/a | Not applicable. | |
|---|---|---|
| EBITDA | Earnings before interest, taxes, depreciation and amortization. | |
| Exit Multiple | Ranges include the last twelve months EBITDA and forward EBITDA multiples. | |
| Third-Party Pricing | Third-Party Pricing is generally determined on the basis of unadjusted prices between market participants provided by reputable dealers or pricing services. | |
| Transaction Price | Includes recent acquisitions or transactions. | |
| (a) | Unobservable inputs were weighted based on the fair value of the investments included in the range. | |
| (b) | As of December 31, 2025 and 2024, Other Investments includes Level III Freestanding Derivatives. | |
| (c) | The volatility of the historical performance of the underlying reference entity is used to project the expected returns relevant for the fair value of the derivative. | |
| (d) | As of December 31, 2025 and 2024, Other Liabilities includes Level III Contingent Consideration and Level III Corporate Treasury Commitments. |
During the year ended December 31, 2025, there have been no changes in valuation techniques within Level II and Level III that have had a material impact on the valuation of financial instruments.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Rollforward of Level III Financial Assets and Liabilities
The following tables summarize the changes in financial assets and liabilities measured at fair value for which Blackstone has used Level III inputs to determine fair value and does not include gains or losses that were reported in Level III in prior years or for instruments that were transferred out of Level III prior to the end of the respective reporting period. These tables also exclude financial assets and liabilities measured at fair value on a
non-recurring
basis. Total realized and unrealized gains and losses recorded for Level III investments are reported in either Investment Income (Loss) or Net Gains (Losses) from Fund Investment Activities in the Consolidated Statements of Operations.
| Level III Financial Assets at Fair Value Year Ended December 31, | ||||||||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||||||||
| Investments of Consolidated Funds | Loans and Receivables | Other Investments (a) | Total | Investments of Consolidated Funds | Loans and Receivables | Other Investments (a) | Total | |||||||||||||||||||||||||
| Balance, Beginning of Period | $ | 3,173,442 | $ | 100,866 | $ | 624,412 | $ | 3,898,720 | $ | 2,683,631 | $ | 60,738 | $ | 373,024 | $ | 3,117,393 | ||||||||||||||||
| Transfer In Due to Consolidation and Acquisition | — | — | — | — | 85,540 | — | — | 85,540 | ||||||||||||||||||||||||
| Transfer Out Due to Deconsolidation | (753,196 | ) | — | — | (753,196 | ) | (14,237 | ) | — | — | (14,237 | ) | ||||||||||||||||||||
| Transfer Into Level III (b) | 1,858 | — | — | 1,858 | 35,547 | — | 109,347 | 144,894 | ||||||||||||||||||||||||
| Transfer Out of Level III (b) | (582,225 | ) | — | — | (582,225 | ) | (35,373 | ) | — | (58 | ) | (35,431 | ) | |||||||||||||||||||
| Purchases | 2,378,212 | 963,845 | 298,688 | 3,640,745 | 694,710 | 857,245 | 465,775 | 2,017,730 | ||||||||||||||||||||||||
| Sales | (484,081 | ) | (860,552 | ) | (639,466 | ) | (1,984,099 | ) | (214,743 | ) | (784,457 | ) | (307,926 | ) | (1,307,126 | ) | ||||||||||||||||
| Issuances | — | 4,573 | — | 4,573 | — | 30,028 | — | 30,028 | ||||||||||||||||||||||||
| Settlements (c) | — | (26,481 | ) | (18,888 | ) | (45,369 | ) | — | (74,742 | ) | (21,261 | ) | (96,003 | ) | ||||||||||||||||||
| Changes in Gains (Losses) Included in Earnings | 390,080 | 22,907 | 45,450 | 458,437 | (61,633 | ) | 12,054 | 5,511 | (44,068 | ) | ||||||||||||||||||||||
| Balance, End of Period | $ | 4,124,090 | $ | 205,158 | $ | 310,196 | $ | 4,639,444 | $ | 3,173,442 | $ | 100,866 | $ | 624,412 | $ | 3,898,720 | ||||||||||||||||
| Changes in Unrealized Gains (Losses) Included in Earnings Related to Financial Assets Still Held at the Reporting Date | $ | 177,821 | $ | (1,225 | ) | $ | 14,885 | $ | 191,481 | $ | (9,279 | ) | $ | (1,297 | ) | $ | (1,368 | ) | $ | (11,944 | ) | |||||||||||
| Level III Financial Liabilities at Fair Value Year Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Freestanding Derivatives | Other Liabilities | Total | Freestanding Derivatives | Other Liabilities | Total | |||||||||||||||||||
| Balance, Beginning of Period | $ | 938,216 | $ | 872 | $ | 939,088 | $ | 563,986 | $ | 1,651 | $ | 565,637 | ||||||||||||
| Changes in Losses (Gains) Included in Earnings | 185,931 | (275 | ) | 185,656 | 374,230 | (779 | ) | 373,451 | ||||||||||||||||
| Balance, End of Period | $ | 1,124,147 | $ | 597 | $ | 1,124,744 | $ | 938,216 | $ | 872 | $ | 939,088 | ||||||||||||
| Changes in Unrealized Losses (Gains) Included in Earnings Related to Financial Liabilities Still Held at the Reporting Date | $ | 185,931 | $ | (275 | ) | $ | 185,656 | $ | 374,230 | $ | (779 | ) | $ | 373,451 | ||||||||||
| (a) | Represents freestanding derivatives, corporate treasury investments and Other Investments. |
|---|
| (b) | Transfers in and out of Level III financial assets and liabilities were due to changes in the observability of inputs used in the valuation of such assets and liabilities. |
|---|
| (c) | For Freestanding Derivatives included within Other Investments, Settlements includes all ongoing contractual cash payments made or received over the life of the instrument. |
|---|
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| 8. | Variable Interest Entities |
|---|
Pursuant to GAAP consolidation guidance, Blackstone consolidates certain VIEs for which it is the primary beneficiary either directly or indirectly, through a consolidated entity or affiliate. VIEs include certain private equity, real estate, credit-focused or funds of hedge funds entities and CLO vehicles. The purpose of such VIEs is to provide strategy specific investment opportunities for investors in exchange for management and performance-based fees. The investment strategies of the Blackstone Funds differ by product; however, the fundamental risks of the Blackstone Funds are similar, including loss of invested capital and loss of management fees and performance-based fees. In Blackstone’s role as general partner, collateral manager or investment adviser, it generally considers itself the sponsor of the applicable Blackstone Fund. Blackstone does not provide performance guarantees and has no other financial obligation to provide funding to consolidated VIEs other than its own capital commitments.
The assets of consolidated variable interest entities may only be used to settle obligations of these entities. In addition, there is no recourse to Blackstone for the consolidated VIEs’ liabilities.
Blackstone holds variable interests in certain VIEs which are not consolidated as it is determined that Blackstone is not the primary beneficiary. Blackstone’s involvement with such entities is in the form of direct and indirect equity interests and fee arrangements. The maximum exposure to loss represents the loss of assets recognized by Blackstone relating to
non-consolidated
VIEs and any clawback obligation relating to previously distributed Performance Allocations. Blackstone’s maximum exposure to loss relating to
non-consolidated
VIEs was as follows:
| December 31, 2025 | December 31, 2024 | |||||||
| Investments | $ | 5,118,786 | $ | 4,537,481 | ||||
| Due from Affiliates | 344,342 | 242,109 | ||||||
| Potential Clawback Obligation | 42,291 | 41,908 | ||||||
| Maximum Exposure to Loss | $ | 5,505,419 | $ | 4,821,498 | ||||
| Amounts Due to Non-Consolidated VIEs | $ | 623 | $ | 855 | ||||
| 9. | Repurchase Agreements |
|---|
As of December
31, 2025, Blackstone pledged securities with a carrying value of $
289.2
million. As of December 31, 2024, Blackstone pledged securities with a carrying value of $
6.8
million.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table provides information regarding Blackstone’s Repurchase Agreements obligation by type of collateral pledged as of December 31, 2025.
| December 31, 2025 | ||||||||||||||||||||
| Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
| Overnight and Continuous | Up to 30 Days | 30 - 90 Days | Greater than 90 days | Total | ||||||||||||||||
| Repurchase Agreements | ||||||||||||||||||||
| Loans | $ | — | $ | 103,835 | $ | 176,196 | $ | 9,187 | $ | 289,218 | ||||||||||
| Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” | $ | 289,218 | ||||||||||||||||||
| Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” | $ | — | ||||||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| Remaining Contractual Maturity of the Agreements | ||||||||||||||||||||
| Overnight and Continuous | Up to 30 Days | 30 - 90 Days | Greater than 90 days | Total | ||||||||||||||||
| Repurchase Agreements | ||||||||||||||||||||
| Loans | $ | — | $ | 6,758 | $ | — | $ | — | $ | 6,758 | ||||||||||
| Gross Amount of Recognized Liabilities for Repurchase Agreements in Note 11. “Offsetting of Assets and Liabilities” | $ | 6,758 | ||||||||||||||||||
| Amounts Related to Agreements Not Included in Offsetting Disclosure in Note 11. “Offsetting of Assets and Liabilities” | $ | — | ||||||||||||||||||
| 10. | Other Assets |
|---|
Other Assets consists of the following:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Furniture, Equipment and Leasehold Improvements | $ | 952,583 | $ | 989,518 | ||||
| Less: Accumulated Depreciation | (431,394 | ) | (483,200 | ) | ||||
| Furniture, Equipment and Leasehold Improvements, Net | 521,189 | 506,318 | ||||||
| Prepaid Expenses | 315,338 | 192,777 | ||||||
| Freestanding Derivatives | 134,557 | 180,309 | ||||||
| Other | 186,635 | 68,455 | ||||||
| $ | 1,157,719 | $ | 947,859 | |||||
Depreciation
expense of $98.0
million, $
98.8
million and $
94.1
million related to furniture, equipment and leasehold improvements for the years ended December 31, 2025, 2024 and 2023, respectively, is included in General, Administrative and Other in the Consolidated Statements of Operations.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| 11. | Offsetting of Assets and Liabilities |
|---|
The following tables present the offsetting of assets and liabilities as of December
, 2025 and 2024:
| December 31, 2025 | ||||||||||||||||
| Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | Gross Amounts Not Offset in the Statement of Financial Condition | |||||||||||||||
| Financial Instruments (a) | Cash Collateral Received | Net Amount | ||||||||||||||
| Assets | ||||||||||||||||
| Freestanding Derivatives | $ | 147,337 | $ | 110,792 | $ | 26,421 | $ | 10,124 | ||||||||
| December 31, 2025 | ||||||||||||||||
| Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | Gross Amounts Not Offset in the Statement of Financial Condition | |||||||||||||||
| Financial Instruments (a) | Cash Collateral Pledged | Net Amount | ||||||||||||||
| Liabilities | ||||||||||||||||
| Freestanding Derivatives | $ | 127,392 | $ | 110,948 | $ | 32 | $ | 16,412 | ||||||||
| Repurchase Agreements | 289,218 | 289,218 | — | — | ||||||||||||
| $ | 416,610 | $ | 400,166 | $ | 32 | $ | 16,412 | |||||||||
| December 31, 2024 | ||||||||||||||||
| Gross and Net Amounts of Assets Presented in the Statement of Financial Condition | Gross Amounts Not Offset in the Statement of Financial Condition | |||||||||||||||
| Financial Instruments (a) | Cash Collateral Received | Net Amount | ||||||||||||||
| Assets | ||||||||||||||||
| Freestanding Derivatives | $ | 193,552 | $ | 122,391 | $ | 54,388 | $ | 16,773 | ||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except
Wher
e Noted)
| December 31, 2024 | ||||||||||||||||
| Gross and Net Amounts of Liabilities Presented in the Statement of Financial Condition | Gross Amounts Not Offset in the Statement of Financial Condition | Net Amount | ||||||||||||||
| Financial Instruments (a) | Cash Collateral Pledged | |||||||||||||||
| Liabilities | ||||||||||||||||
| Freestanding Derivatives | $ | 137,551 | $ | 125,056 | $ | 10 | $ | 12,485 | ||||||||
| Repurchase Agreements | 6,758 | 6,758 | — | — | ||||||||||||
| $ | 144,309 | $ | 131,814 | $ | 10 | $ | 12,485 | |||||||||
| (a) | Amounts presented are inclusive of both legally enforceable master netting agreements and financial instruments received or pledged as collateral. Financial instruments received or pledged as collateral offset derivative counterparty risk exposure, but do not reduce net exposure to the Consolidated Statement of Financial Condition. |
|---|
Repurchase Agreements and Freestanding Derivative liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition. Freestanding Derivative assets are included in Other Assets in the Consolidated Statements of Financial Condition. See Note 10. “Other Assets” for the components of Other Assets.
Notional Pooling Arrangements
Blackstone
has notional cash pooling arrangements with financial institutions for cash management purposes. These arrangements allow for cash withdrawals based upon aggregate cash balances on deposit at the same financial institution. Cash withdrawals cannot exceed aggregate cash balances on deposit. The net balance of cash on deposit and overdrafts is used as a basis for calculating net interest expense or income. As of December 31, 2025, the aggregate cash balance on deposit relating to the cash pooling arrangements was $
781.0
million, which was off
se
t and reported net of the accompanying overdraft of $
780.9
million.
| 12. | Borrowings |
|---|
On October
16, 2025, Blackstone Holdings Finance Co. L.L.C., as borrower, and Blackstone Holdings AI L.P., Blackstone Holdings I L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P., as guarantors, entered into an amended and restated $
4.325
billion revolving credit facility (the “Revolving Credit Facility”) with Citibank, N.A., as administrative agent, and the lenders party thereto. The Revolving Credit Facility amends and restates Blackstone’s existing revolving credit facility to, among other things, extend the maturity date from
December 15, 2028
to
October 16, 2030
and increase the aggregate required minimum amount of fee generating assets under management.
On November
3, 2025, Blackstone, through its subsidiary Blackstone Reg Finance Co. L.L.C., issued $
million aggregate principal amount of senior notes due November 3, 2030 (the “Registered 2030 Notes”), and $
million aggregate principal amount of senior notes due February 15, 2036 (the “Registered 2036 Notes” and, together with the Registered 2030 Notes, the “Registered Notes”), pursuant to a Registration Statement on Form
S-3.
The Registered 2030 Notes have an interest rate of
4.300
% per annum, and the Registered 2036 Notes have an interest rate of
4.950
%. The Registered Notes accrue interest from November 3, 2025. Interest on the Registered 2030 Notes is payable semi-annually in arrears on May 3 and November 3 of each year commencing on May 3, 2026. Interest on the Registered 2036 Notes is payable semi-annually in arrears on February 15 and August 15 of each year commencing on February 15, 2026.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
All of Blackstone’s outstanding senior notes as of December 31, 2025 are unsecured
and
unsubordinated obligations of Blackstone Holdings Finance Co. L.L.C. or Blackstone Reg Finance Co. L.L.C. (together, the “Issuers”), as applicable, both indirect subsidiaries of Blackstone, that are fully and unconditionally guaranteed by Blackstone Inc. and its indirect subsidiaries, Blackstone Holdings I L.P., Blackstone Holdings AI L.P., Blackstone Holdings II L.P., Blackstone Holdings III L.P. and Blackstone Holdings IV L.P. (the “Guarantors”). The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to senior note issuances have been capitalized and are amortized over the life of each respective note issuance.
Blackstone borrows and enters into credit agreements for its general operating and investment purposes and certain Blackstone Funds borrow to meet financing needs of their operating and investing activities. Borrowing facilities have been established for the benefit of selected Blackstone Funds. When a Blackstone Fund borrows from the facility in which it participates, the proceeds from the borrowing are strictly limited for its intended use by the borrowing fund and not available for other Blackstone purposes. Blackstone’s credit facilities consist of the following:
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Credit Available | Borrowing Outstanding | Effective Interest Rate | Credit Available | Borrowing Outstanding | Effective Interest Rate | |||||||||||||||||||
| Revolving Credit Facility (a) | $ | 4,325,000 | $ | — | — | $ | 4,325,000 | $ | — | — | ||||||||||||||
| Blackstone Issued Senior Notes (b) | ||||||||||||||||||||||||
| 2.000%, Due 5/19/2025 | — | — | — | 310,620 | 310,620 | 2.10 | % | |||||||||||||||||
| 1.000%, Due 10/5/2026 | 704,760 | 704,760 | 1.26 | % | 621,240 | 621,240 | 1.13 | % | ||||||||||||||||
| 3.150%, Due 10/2/2027 | 300,000 | 300,000 | 3.30 | % | 300,000 | 300,000 | 3.30 | % | ||||||||||||||||
| 5.900%, Due 11/3/2027 | 600,000 | 600,000 | 6.13 | % | 600,000 | 600,000 | 6.13 | % | ||||||||||||||||
| 1.625%, Due 8/5/2028 | 650,000 | 650,000 | 1.79 | % | 650,000 | 650,000 | 1.79 | % | ||||||||||||||||
| 1.500%, Due 4/10/2029 | 704,760 | 704,760 | 1.73 | % | 621,240 | 621,240 | 1.56 | % | ||||||||||||||||
| 2.500%, Due 1/10/2030 | 500,000 | 500,000 | 2.73 | % | 500,000 | 500,000 | 2.73 | % | ||||||||||||||||
| 4.300%, Due 11/3/2030 | 600,000 | 600,000 | 4.59 | % | — | — | — | |||||||||||||||||
| 1.600%, Due 3/30/2031 | 500,000 | 500,000 | 1.71 | % | 500,000 | 500,000 | 1.71 | % | ||||||||||||||||
| 2.000%, Due 1/30/2032 | 800,000 | 800,000 | 2.18 | % | 800,000 | 800,000 | 2.18 | % | ||||||||||||||||
| 2.550%, Due 3/30/2032 | 500,000 | 500,000 | 2.67 | % | 500,000 | 500,000 | 2.67 | % | ||||||||||||||||
| 6.200%, Due 4/22/2033 | 900,000 | 900,000 | 6.33 | % | 900,000 | 900,000 | 6.33 | % | ||||||||||||||||
| 3.500%, Due 6/1/2034 | 587,300 | 587,300 | 4.22 | % | 517,700 | 517,700 | 3.79 | % | ||||||||||||||||
| 5.000%, Due 12/6/2034 | 750,000 | 750,000 | 5.16 | % | 750,000 | 750,000 | 5.23 | % | ||||||||||||||||
| 4.950%, Due 2/15/2036 | 600,000 | 600,000 | 5.15 | % | — | — | — | |||||||||||||||||
| 6.250%, Due 8/15/2042 | 250,000 | 250,000 | 6.65 | % | 250,000 | 250,000 | 6.65 | % | ||||||||||||||||
| 5.000%, Due 6/15/2044 | 500,000 | 500,000 | 5.16 | % | 500,000 | 500,000 | 5.16 | % | ||||||||||||||||
| 4.450%, Due 7/15/2045 | 350,000 | 350,000 | 4.56 | % | 350,000 | 350,000 | 4.56 | % | ||||||||||||||||
| 4.000%, Due 10/2/2047 | 300,000 | 300,000 | 4.20 | % | 300,000 | 300,000 | 4.20 | % | ||||||||||||||||
| 3.500%, Due 9/10/2049 | 400,000 | 400,000 | 3.61 | % | 400,000 | 400,000 | 3.61 | % | ||||||||||||||||
| 2.800%, Due 9/30/2050 | 400,000 | 400,000 | 2.88 | % | 400,000 | 400,000 | 2.88 | % | ||||||||||||||||
| 2.850%, Due 8/5/2051 | 550,000 | 550,000 | 2.91 | % | 550,000 | 550,000 | 2.91 | % | ||||||||||||||||
| 3.200%, Due 1/30/2052 | 1,000,000 | 1,000,000 | 3.27 | % | 1,000,000 | 1,000,000 | 3.27 | % | ||||||||||||||||
| 16,771,820 | 12,446,820 | 15,645,800 | 11,320,800 | |||||||||||||||||||||
| Other (c) | ||||||||||||||||||||||||
| Secured Borrowing, Due 10/27/2033 | — | — | — | 19,949 | 19,949 | 6.94 | % | |||||||||||||||||
| Secured Borrowing, Due 1/29/2035 | — | — | — | 20,000 | 20,000 | 6.94 | % | |||||||||||||||||
| 16,771,820 | 12,446,820 | 15,685,749 | 11,360,749 | |||||||||||||||||||||
| Borrowings of Consolidated Blackstone Funds | ||||||||||||||||||||||||
| Blackstone Fund Facilities (d) | 129,767 | 129,767 | 7.12 | % | — | — | — | |||||||||||||||||
| CLO Notes Payable (e) | — | — | — | 99,419 | 99,419 | 8.72 | % | |||||||||||||||||
| 129,767 | 129,767 | 99,419 | 99,419 | |||||||||||||||||||||
| $ | 16,901,587 | $ | 12,576,587 | $ | 15,785,168 | $ | 11,460,168 | |||||||||||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| (a) | Represents the Revolving Credit Facility of Blackstone, through Blackstone Holdings Finance Co. L.L.C. Interest on the borrowings is based on an adjusted Secured Overnight Finance Rate (“SOFR”) or alternate base rate, in each case plus a margin, and undrawn commitments bear a commitment fee of 0.06%. The margin above adjusted SOFR used to calculate interest on borrowings was 0.75% plus an additional credit spread adjustment of 0.10% to account for the difference between London Interbank Offered Rate (“LIBOR”) and SOFR. The margin is subject to change based on Blackstone’s credit rating. Borrowings may also be made in U.K. sterling, euros, Swiss francs, Japanese yen or Canadian dollars, in each case subject to certain sub-limits. The Revolving Credit Facility contains customary representations, covenants and events of default. Financial covenants consist of a maximum net leverage ratio and a requirement to keep a minimum amount of fee-earning assets under management, each tested quarterly. As of December 31, 2025 and 2024, Blackstone had outstanding but undrawn letters of credit against the Revolving Credit Facility of $39.3 million and $38.9 million, respectively. The amount Blackstone can draw from the Revolving Credit Facility is reduced by the undrawn letters of credit, however the Credit Available presented herein is not reduced by the undrawn letters of credit. In February 2026, Blackstone drew $900.0 million under the Revolving Credit Facility. |
|---|
| (b) | The Issuers have issued long-term borrowings in the form of senior notes (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Issuers. The Notes are fully and unconditionally guaranteed, jointly and severally, by Blackstone, the Guarantors and the Issuers. The guarantees are unsecured and unsubordinated obligations of the Guarantors. Transaction costs related to the issuance of the Notes have been deducted from the Note liability and are being amortized over the life of the Notes. The indentures include covenants, including limitations on the Issuers’ and the Guarantors’ ability to, subject to exceptions, incur indebtedness secured by liens on voting stock or profit participating equity interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. The indentures also provide for events of default and further provide that the trustee or the holders of not less than 25 % in aggregate principal amount of the outstanding Notes may declare the Notes immediately due and payable upon the occurrence and during the continuance of any event of default after expiration of any applicable grace period. In the case of specified events of bankruptcy, insolvency, receivership or reorganization, the principal amount of the Notes and any accrued and unpaid interest on the Notes automatically become due and payable. All or a portion of the Notes may be redeemed at the Issuers’ option in whole or in part, at any time and from time to time, prior to their stated maturity, at the make-whole redemption price set forth in the Notes. If a change of control repurchase event occurs, the holders of the Notes may require the Issuers to repurchase the Notes at a repurchase price in cash equal to 101 % of the aggregate principal amount of the Notes repurchased plus any accrued and unpaid interest on the Notes repurchased to, but not including, the date of repurchase. |
|---|
| (c) | The Secured Borrowings Due 10/27/2033 and 1/29/2035 were repaid during the year ended December 31, 2025. |
|---|
| (d) | Blackstone Fund Facilities represent borrowing facilities for the various consolidated Blackstone Funds that are used to meet liquidity and investing needs. Such borrowings have varying maturities and may be rolled over until a disposition or refinancing event. Borrowings bear interest at spreads to market rates or at stated fixed rates that can vary over the borrowing term. Interest may be subject to the performance of the assets within the fund and therefore, the stated interest rate and effective interest rate may differ. |
|---|
| (e) | CLO Notes Payable have maturity dates ranging from June 2025 to January 2037 . For periods prior to December 31, 2025, a portion of the outstanding borrowings consisted of subordinated notes, which did not have contractual interest rates but instead received distributions from the excess cash flows generated by the CLO vehicles. As of December 31, 2025, the CLO Notes Payable were fully deconsolidated, and there are no outstanding borrowings for the current period. |
|---|
The following table presents the general characteristics of each of Blackstone’s borrowings as of December 31, 2025 and 2024, as well as their carrying value and fair value. The borrowings are included in Loans Payable within the Consolidated Statements of Financial Condition. Each of the Senior Notes were issued at a discount through Blackstone Holdings Finance Co. L.L.C. or Blackstone Reg Finance Co. L.L.C., as applicable, both indirect subsidiaries of Blackstone. The Senior Notes accrue interest from the issue date thereof and pay interest in arrears on a
semi-annual
basis or annual basis. The Secured Borrowings were issued at par, accrue interest from the issue date thereof and pay interest in arrears on a quarterly basis. CLO Notes Payable pay interest in arrears on a quarterly basis.
Blackstone
Inc.
Notes
to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| December 31, | ||||||||||||||||
| 2025 | 2024 | |||||||||||||||
| Description | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
| Blackstone Operating Borrowings | ||||||||||||||||
| Senior Notes (a) | ||||||||||||||||
| 2.000 %, Due 5/19/2025 | $ | — | $ | — | $ | 315,860 | $ | 309,502 | ||||||||
| 1.000 %, Due 10/5/2026 | 711,022 | 696,585 | 624,078 | 601,801 | ||||||||||||
| 3.150 %, Due 10/2/2027 | 299,264 | 295,941 | 298,864 | 287,007 | ||||||||||||
| 5.900 %, Due 11/3/2027 | 597,667 | 619,068 | 596,505 | 617,550 | ||||||||||||
| 1.625 %, Due 8/5/2028 | 647,359 | 610,688 | 646,374 | 579,189 | ||||||||||||
| 1.500 %, Due 4/10/2029 | 713,034 | 673,772 | 626,043 | 584,295 | ||||||||||||
| 2.500 %, Due 1/10/2030 | 495,590 | 467,930 | 494,568 | 444,970 | ||||||||||||
| 4.300 %, Due 11/3/2030 | 594,461 | 600,162 | — | — | ||||||||||||
| 1.600 %, Due 3/30/2031 | 497,384 | 435,810 | 496,911 | 403,415 | ||||||||||||
| 2.000 %, Due 1/30/2032 | 791,761 | 689,088 | 790,508 | 644,816 | ||||||||||||
| 2.550 %, Due 3/30/2032 | 496,635 | 444,025 | 496,146 | 417,830 | ||||||||||||
| 6.200 %, Due 4/22/2033 | 893,266 | 975,870 | 892,561 | 946,818 | ||||||||||||
| 3.500 %, Due 6/1/2034 | 559,079 | 582,161 | 489,624 | 522,877 | ||||||||||||
| 5.000 %, Due 12/6/2034 | 741,552 | 757,718 | 741,218 | 726,023 | ||||||||||||
| 4.950 %, Due 2/15/2036 | 594,586 | 596,592 | — | — | ||||||||||||
| 6.250 %, Due 8/15/2042 | 240,076 | 264,443 | 239,756 | 254,095 | ||||||||||||
| 5.000 %, Due 6/15/2044 | 490,561 | 466,615 | 490,261 | 457,335 | ||||||||||||
| 4.450 %, Due 7/15/2045 | 344,996 | 302,855 | 344,840 | 290,836 | ||||||||||||
| 4.000 %, Due 10/2/2047 | 291,605 | 236,016 | 291,372 | 230,337 | ||||||||||||
| 3.500 %, Due 9/10/2049 | 392,808 | 286,888 | 392,618 | 277,496 | ||||||||||||
| 2.800 %, Due 9/30/2050 | 394,405 | 246,808 | 394,252 | 238,256 | ||||||||||||
| 2.850 %, Due 8/5/2051 | 543,643 | 345,164 | 543,478 | 329,791 | ||||||||||||
| 3.200 %, Due 1/30/2052 | 987,969 | 670,740 | 987,682 | 652,770 | ||||||||||||
| 12,318,723 | 11,264,939 | 11,193,519 | 9,817,009 | |||||||||||||
| Other (b) | ||||||||||||||||
| Secured Borrowing, Due 10/27/2033 | — | — | 19,949 | 19,949 | ||||||||||||
| Secured Borrowing, Due 1/29/2035 | — | — | 20,000 | 20,000 | ||||||||||||
| 12,318,723 | 11,264,939 | 11,233,468 | 9,856,958 | |||||||||||||
| Borrowings of Consolidated Blackstone Funds | ||||||||||||||||
| Blackstone Fund Facilities | 126,421 | 129,767 | — | |||||||||||||
| CLO Notes Payable | — | — | 87,488 | 87,488 | ||||||||||||
| 126,421 | 129,767 | 87,488 | 87,488 | |||||||||||||
| $ | 12,445,144 | $ | 11,394,706 | $ | 11,320,956 | $ | 9,944,446 | |||||||||
| (a) | Fair value is determined by broker quote and these notes would be classified as Level II within the fair value hierarchy. |
|---|
| (b) | The Secured Borrowings Due 10/27/2033 and 1/29/2035 were repaid during the year ended December 31, 2025. |
|---|
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Scheduled principal payments for borrowings at December 31, 2025 were as follows:
| Blackstone Operating Borrowings | Borrowings of Consolidated Blackstone Funds | Total Borrowings | ||||||||||
| 2026 | $ | 704,760 | $ | — | $ | 704,760 | ||||||
| 2027 | 900,000 | — | 900,000 | |||||||||
| 2028 | 650,000 | — | 650,000 | |||||||||
| 2029 | 704,760 | — | 704,760 | |||||||||
| 2030 | 1,100,000 | 129,767 | 1,229,767 | |||||||||
| Thereafter | 8,387,300 | — | 8,387,300 | |||||||||
| $ | 12,446,820 | $ | 129,767 | $ | 12,576,587 | |||||||
- Leases
Blackstone enters into
non-cancelable
lease and sublease agreements primarily for office space, which expire on various dates through 2043. In addition to contractual rent payments, which are generally subject to escalation provisions, occupancy lease agreements may include payments for certain costs incurred by the landlord, such as building expenses and utilities. To the extent these costs are fixed or determinable, they are included as part of the minimum lease payments used to measure the Operating Lease Liability and are included in Straight-Line Lease Cost. At December 31, 2025 and 2024, Blackstone maintained irrevocable standby letters of credit and cash deposits as security for the leases of $15.1 million and $14.1 million, respectively. As of December 31, 2025, the weighted-average remaining lease term was 7.4 years, and the weighted-average discount rate was 3.5%.
The components of lease expense were as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating Lease Cost | ||||||||||||
| Straight-Line Lease Cost (a) | $ | 149,490 | $ | 156,680 | $ | 160,534 | ||||||
| Variable Lease Cost (b) | 28,584 | 20,222 | 15,268 | |||||||||
| Sublease Income | (206 | ) | (65 | ) | (63 | ) | ||||||
| $ | 177,868 | $ | 176,837 | $ | 175,739 | |||||||
| (a) | Straight-line lease cost includes short-term leases, which are immaterial. |
|---|
| (b) | Variable lease cost approximates variable lease cash payments. |
|---|
Supplemental cash flow information related to leases was as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Operating Cash Flows for Operating Lease Liabilities | $ | 187,012 | $ | 145,388 | $ | 127,183 | ||||||
| Non-Cash Right-of-Use Assets Obtained in Exchange for New Operating Lease Liabilities | $ | 41,689 | $ | 129,451 | $ | 117,155 |
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table shows the undiscounted cash flows on an annual basis for Operating Lease Liabilities as of December 31, 2025:
| 2026 | $ | 160,648 | ||
| 2027 | 156,893 | |||
| 2028 | 147,780 | |||
| 2029 | 120,754 | |||
| 2030 | 62,175 | |||
| Thereafter | 231,241 | |||
| Total Lease Payments (a) | 879,491 | |||
| Less: Imputed Interest | (18,470) | |||
| Present Value of Operating Lease Liabilities | $ | 861,021 | ||
| (a) | Excludes signed leases that have not yet commenced. |
|---|
- Income Taxes
The Income Before Provision for Taxes consists of the following:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Income Before Provision (Benefit) for Taxes | ||||||||||||
| U.S. Domestic Income | $ | 6,721,171 | $ | 6,029,702 | $ | 2,577,184 | ||||||
| Foreign Income | 450,475 | 429,778 | 380,530 | |||||||||
| $ | 7,171,646 | $ | 6,459,480 | $ | 2,957,714 | |||||||
The Provision for Taxes consists of the following:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Current | ||||||||||||
| Federal Income Tax | $ | 354,543 | $ | 424,659 | $ | 362,144 | ||||||
| Foreign Income Tax | 142,098 | 128,757 | 112,861 | |||||||||
| State and Local Income Tax | 186,952 | 120,454 | 186,851 | |||||||||
| 683,593 | 673,870 | 661,856 | ||||||||||
| Deferred | ||||||||||||
| Federal Income Tax | 362,993 | 265,749 | (94,732 | ) | ||||||||
| Foreign Income Tax | (3,823 | ) | (471 | ) | (7,020 | ) | ||||||
| State and Local Income Tax | 82,260 | 82,523 | (46,643 | ) | ||||||||
| 441,430 | 347,801 | (148,395 | ) | |||||||||
| Provision for Taxes | $ | 1,125,023 | $ | 1,021,671 | $ | 513,461 | ||||||
| Effective Income Tax Rate | 15.7 | % | 15.8 | % | 17.4 | % | ||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table reconciles the effective income tax rate to the U.S. federal statutory tax rate:
| Year Ended December 31, 2025 | ||||||||
| Income before Provision for Taxes | $ | 7,171,646 | ||||||
| Statutory U.S. Federal Tax Rate | $ | 1,506,046 | 21.0 | % | ||||
| State and Local Income Taxes, Net of Federal Benefit (a) | 206,841 | 2.9 | % | |||||
| Foreign Tax Effects | 76,209 | 1.1 | % | |||||
| Nontaxable or Nondeductible Items | ||||||||
| Income Passed Through to Non-Controlling Interest Holders | (632,663 | ) | -8.8 | % | ||||
| Other Nontaxable or Nondeductible Items | 30,471 | 0.4 | % | |||||
| Other Adjustments | (61,881 | ) | -0.9 | % | ||||
| Effective Income Tax Rate | $ | 1,125,023 | 15.7 | % | ||||
| (a) | State and local taxes in New York State and New York City made up the majority (50% or greater) of the tax effect in this category. |
|---|
| 2024 vs. | ||||||||||||
| Year Ended December 31, | ||||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Statutory U.S. Federal Income Tax Rate | 21.0 | % | 21.0 | % | — | |||||||
| Income Passed Through to Non-Controlling Interest Holders | -9.0 | % | -8.2 | % | -0.8 | % | ||||||
| State and Local Income Taxes | 2.9 | % | 4.3 | % | -1.4 | % | ||||||
| Other | 0.9 | % | 0.3 | % | 0.6 | % | ||||||
| Effective Income Tax Rate | 15.8 | % | 17.4 | % | -1.6 | % | ||||||
Deferred income taxes reflect the net tax effects of temporary differences that may exist between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. A summary of the tax effects of the temporary differences is as follows:
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Deferred Tax Assets | ||||||||
| Investment Basis Differences/Net Unrealized Gains and Losses | $ | 1,879,975 | $ | 1,737,508 | ||||
| Other | 211,605 | 287,639 | ||||||
| Total Deferred Tax Assets Before Valuation Allowance | 2,091,580 | 2,025,147 | ||||||
| Valuation Allowance | (35,357 | ) | (21,199 | ) | ||||
| Total Deferred Tax Assets | 2,056,223 | 2,003,948 | ||||||
| Deferred Tax Liabilities | ||||||||
| Investment Basis Differences/Net Unrealized Gains and Losses | 14,794 | 12,282 | ||||||
| Other | 1,681 | 1,953 | ||||||
| Total Deferred Tax Liabilities | 16,475 | 14,235 | ||||||
| Net Deferred Tax Assets | $ | 2,039,748 | $ | 1,989,713 | ||||
The increase in the Net Deferred tax Assets for the year ended December 31, 2025, compared to the year ended December 31, 2024, was primarily due to recognition of additional tax basis in certain assets and recording corresponding deferred tax benefits related to quarterly exchanges of Blackstone Holdings Partnership units for common shares of Blackstone Inc. Realization of deferred tax assets depends on the expectation and character of future taxable income. Blackstone has no significant net operating losses carryforward as of December 31, 2025.
Blackstone has determined that deferred tax assets recorded during the period primarily related to certain state and local tax credits are not more likely than not to be realized and therefore has established a valuation allowance of $
35.4
million as of December 31, 2025.
In evaluating the ability to realize deferred tax assets, Blackstone among other things, considers projections of taxable income (including character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that Blackstone uses to manage its business. To the extent any portion of the deferred tax assets are not considered to be more likely than not to be realized, valuation allowances are recorded.
Currently, Blackstone does not believe it meets the indefinite reversal criteria that would preclude Blackstone from recognizing a deferred tax liability with respect to its foreign subsidiaries. Therefore, if applicable Blackstone recorded a deferred tax liability for any outside basis difference of an investment in a foreign subsidiary.
Blackstone files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, Blackstone is subject to examination by federal and certain state, local and foreign tax authorities. As of December 31, 2025, the most material jurisdictions where Blackstone entities are under active examination are New York State and City. The following are the major filing jurisdictions and their respective earliest open period subject to
examination:
| Jurisdiction | Year | |||
| Federal | 2022 | |||
| New York City | 2009 | |||
| New York State | 2016 | |||
| United Kingdom | 2011 |
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The Cash Payments for Income Taxes consists of the following:
| Jurisdiction | Year Ended December 31, 2025 | |||
| Federal (a) | $ | 409,537 | ||
| New York City | 68,500 | |||
| State — Other | 2,999 | |||
| Foreign | 81,524 | |||
| $ | 562,560 | |||
| (a) | Federal payments include cash paid for the transferable tax credits. |
|---|
Blackstone’s unrecognized tax benefits, excluding related interest and penalties, were:
| December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Unrecognized Ta x B enefits — January 1 | $ | 251,457 | $ | 210,778 | $ | 153,624 | ||||||
| Additions Based on Tax Positions Related to Current Year | 59,877 | 46,572 | 19,807 | |||||||||
| Reductions for Tax Positions of Current Year | — | — | (19,737 | ) | ||||||||
| Additions for Tax Positions of Prior Years | 4,396 | — | 57,081 | |||||||||
| Reductions for Tax Positions of Prior Years | — | (6,111 | ) | — | ||||||||
| Settlements | (471 | ) | — | — | ||||||||
| Exchange Rate Fluctuations | 339 | 218 | 3 | |||||||||
| Unrecognized Tax Benefits — December 31 | $ | 315,598 | $ | 251,457 | $ | 210,778 | ||||||
If recognized, the above tax benefits would reduce the annual effective rate. Blackstone believes the liability established for unrecognized tax benefits is adequate in relation to the potential for additional assessments. It is reasonably possible that significant changes in the balance of unrecognized tax benefits may occur during the twelve months subsequent to December 31, 2025; however, it is not possible to estimate the expected change to the total unrecognized tax benefits and its impact on Blackstone’s effective tax rate during the twelve months subsequent to December 31, 2025.
The unrecognized tax benefits are recorded in Accounts Payable, Accrued Expenses and Other Liabilities in the Consolidated Statements of Financial Condition.
During the years ended December 31, 2025, 2024 and 2023, Blackstone accrued no penalties and accrued interest expense related to unrecognized tax benefits of $
33.9
million, $
29.1
million and $
22.8
million, respectively.
Other Income — Change in Tax Receivable Agreement Liability
In 2025 and 2024, the $
6.6
million and $
(41.2
) million, respectively, Change in Tax Receivable Agreement Liability was primarily attributable to a change in Blackstone’s state tax apportionment.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
- Earnings Per Share and Stockholders’ Equity
Earnings Per Share
Basic and diluted net income per share of common stock for the years ended December 31, 2025, 2024 and 2023 was calculated as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net Income for Per Share of Common Stock Calculations | ||||||||||||
| Net Income Attributable to Blackstone Inc., Basic and Diluted | $ | 3,019,214 | $ | 2,776,508 | $ | 1,390,880 | ||||||
| Shares/Units Outstanding | ||||||||||||
| Weighted-Average Shares of Common Stock Outstanding, Basic | 780,018,738 | 766,487,450 | 755,204,556 | |||||||||
| Weighted-Average Shares of Unvested Deferred Restricted Common Stock (a) | 197,118 | 159,058 | 215,380 | |||||||||
| Weighted-Average Shares of Common Stock Outstanding, Diluted | 780,215,856 | 766,646,508 | 755,419,936 | |||||||||
| Net Income Per Share of Common Stock | ||||||||||||
| Basic | $ | 3.87 | $ | 3.62 | $ | 1.84 | ||||||
| Diluted | $ | 3.87 | $ | 3.62 | $ | 1.84 | ||||||
| Dividends Declared Per Share of Common Stock (b) | $ | 4.69 | $ | 3.45 | $ | 3.32 | ||||||
| (a) | For the years ended December 31, 2025 and 2024, this includes shares to be issued under the contingently issuable share model for an acquisition-related compensation arrangement. |
|---|
| (b) | Dividends declared reflects the calendar date of the declaration for each distribution. The fourth quarter dividends, if any, for any fiscal year will be declared and paid in the subsequent fiscal year. |
|---|
In computing the dilutive effect that the exchange of Blackstone Holdings Partnership Units would have on Net Income Per Share of Common Stock, Blackstone considered that net income available to holders of shares of common stock would increase due to the elimination of
non-controlling
interests in Blackstone Holdings, inclusive of any tax impact. The hypothetical conversion may be dilutive to the extent there is activity at the Blackstone Inc. level that has not previously been attributed to the
non-controlling
interests or if there is a change in tax rate as a result of a hypothetical conversion.
The following table summarizes the anti-dilutive securities for the periods indicated:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Weighted-Average Blackstone Holdings Partnership Units | 447,702,475 | 455,306,643 | 460,897,953 |
Stockholders’ Equity
As of December 31
, 2025
, Blackstone had
billion shares of preferred stock authorized with a par value of $
0.00001
per share, of which (a)
999,999,000
shares are designated as Series I preferred stock and (b)
1,000
shares are designated as Series II preferred stock. The remaining
nine
billion shares may be designated from time to time in accordance with Blackstone’s certificate of incorporation. There was
one
share of Series I preferred stock and
one
share of Series II preferred stock issued and outstanding as of December 31
, 2025
.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Under Blackstone’s certificate of incorporation and Delaware law, holders of Blackstone’s common stock are entitled to vote, together with holders of Blackstone’s Series I preferred stock, voting as a single class, on a number of significant matters, including certain sales, exchanges or other dispositions of all or substantially all of Blackstone’s assets, a merger, consolidation or other business combination, the removal of the Series II Preferred Stockholder and forced transfer by the Series II Preferred Stockholder of its shares of Series II preferred stock and the designation of a successor Series II Preferred Stockholder. The Series II Preferred Stockholder elects Blackstone’s directors. Holders of Blackstone’s Series I preferred stock and Series II preferred stock are not entitled to dividends from Blackstone, or receipt of any of Blackstone’s assets in the event of any dissolution, liquidation or winding up. Blackstone Partners L.L.C. is the sole holder of the Series I preferred stock and Blackstone Group Management L.L.C. is the sole holder of the Series II preferred stock.
Share Repurchase Program
On July 16
, 2024
, Blackstone’s board of directors authorized the repurchase of up to $
2.0
billion of common stock and Blackstone Holdings Partnership Units. This authorization replaced Blackstone’s prior $
2.0 billion repurchase authorization. Under the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing and the actual numbers repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a specified expiration date.
During the year ended December 31
, 2023
, Blackstone repurchased
3.7
million shares of common stock at a total cost of $
351.3
million. During the year ended December 31
, 2024
, Blackstone repurchased
4.0
million shares of common stock at a total cost of $
520.4
million. During the year ended December 31
, 2025
, Blackstone repurchased
0.8
million shares of common stock at a total cost of $
122.6
million. As of December 31
, 2025
, the amount remaining available for repurchases under the program was $
1.7 billion.
Shares Eligible for Dividends and Distributions
As of December 31, 2025, the total shares of common stock and Blackstone Holdings Partnership Units entitled to participate in dividends and distributions were as follows:
| Shares/Units | ||||
| Common Stock Outstanding | 748,688,068 | |||
| Unvested Participating Common Stock | 34,494,942 | |||
| Total Participating Common Stock | 783,183,010 | |||
| Participating Blackstone Holdings Partnership Units | 445,586,312 | |||
| 1,228,769,322 | ||||
| 16. | Equity-Based Compensation |
|---|
Blackstone has granted equity-based compensation awards to Blackstone’s senior managing directors,
non-partner
professionals,
non-professionals
and selected external advisers under Blackstone’s Amended and Restated 2007
Equity Incentive Plan (the “Equity Plan”). The Equity Plan allows for the granting of options, share appreciation rights or other share-based awards (shares, restricted shares, restricted shares of common stock, deferred restricted shares of common stock, phantom restricted shares of common stock or other share-based awards based in whole or in part on the fair value of shares of common stock or Blackstone Holdings Partnership Units) which may contain certain service or performance requirements. As of January 1
, 2025
, Blackstone had the ability to grant
174,967,230
shares under the Equity Plan.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
For the years ended December 31
, 2025
, 2024
and 2023
, Blackstone recorded compensation expense of $
1.4
billion, $
1.2
billion and $
987.5
million, respectively, in relation to its equity-based awards with corresponding tax benefits of $
309.7
million, $
298.2
million and $
183.4
million, respectively.
As of December 31
, 2025
, there was $
2.6
billion of estimated unrecognized compensation expense related to unvested awards, including compensation with performance conditions where it is probable that the performance condition will be met. This cost is expected to be recognized over a weighted-average period of
3.4
years.
Total vested and unvested outstanding shares, including common stock, Blackstone Holdings Partnership Units and deferred restricted shares of common stock, were 1,228,831,817
as of December 31
, 2025
. Total outstanding phantom shares were
81,112
as of December 31
, 2025
.
A summary of the status of Blackstone’s unvested equity-based awards as of December 31, 2025 and of changes during the period January 1, 2025 through December 31, 2025 is presented below:
| Blackstone Holdings | Blackstone Inc. | |||||||||||||||||||||||
| Equity Settled Awards | Cash Settled Awards | |||||||||||||||||||||||
| Unvested Shares/Units | Partnership Units | Weighted- Average Grant Date Fair Value | Deferred Restricted Shares of Common Stock | Weighted- Average Grant Date Fair Value | Phantom Shares | Weighted- Average Grant Date Fair Value | ||||||||||||||||||
| Balance, December 31, 2024 | 850,409 | $ | 33.83 | 33,928,570 | $ | 103.44 | 70,517 | $ | 187.66 | |||||||||||||||
| Granted | — | — | 11,145,454 | 147.38 | 22,498 | 139.99 | ||||||||||||||||||
| Vested | (623,521 | ) | 34.49 | (14,187,921 | ) | 98.81 | (22,046 | ) | 163.16 | |||||||||||||||
| Forfeited | — | — | (1,465,391 | ) | 118.53 | (4,028 | ) | 154.41 | ||||||||||||||||
| Balance, December 31, 2025 | 226,888 | $ | 32.02 | 29,420,712 | $ | 122.07 | 66,941 | $ | 146.70 | |||||||||||||||
Shares/Units Expected to Vest
The following unvested shares and units, after expected forfeitures, as of December 31, 2025, are expected to
vest
:
| Shares/Units | Weighted-Average Service Period in Years | |||||||
| Blackstone Holdings Partnership Units (a) | 226,888 | — | ||||||
| Deferred Restricted Shares of Common Stock | 25,237,338 | 2.6 | ||||||
| Total Equity-Based Awards | 25,464,226 | 2.6 | ||||||
| Phantom Shares | 56,764 | 2.8 | ||||||
| (a) | Each of the remaining unvested units fully vested on January 1, 2026. |
|---|
Deferred Restricted Shares of Common Stock and Phantom Shares
Blackstone has granted deferred restricted shares of common stock to certain senior and
non-senior
managing director professionals, analysts and senior finance and administrative personnel and selected external advisers and phantom shares (cash settled equity-based awards) to other senior and
non-senior
managing director employees. Holders of deferred restricted shares of common stock and phantom shares are not entitled to any voting rights. Only phantom shares are to be settled in cash. Deferred restricted shares of common stock where the number of shares have not been set a
re
liability classified
and
excluded from
the
above tables.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The fair values of deferred restricted shares of common stock have been derived based on the closing price of common stock on the date of the grant, m
ultipli
ed by the number of unvested awards and expensed over the assumed service period, which ranges from 1 to
years. Additionally, the calculation of the compensation expense assumes forfeiture rates based on historical turnover rates, ranging from
1.0
% to
13.4
% annually by employee class, and a per share discount on
non-participating
shares, ranging from $
1.07
to $
24.23
.
The phantom shares vest over the assumed service period, which ranges from 1
to
years. On each such vesting date, Blackstone delivered or will deliver cash to the holder in an amount equal to the number of phantom shares held multiplied by the then fair market value of Blackstone’s common stock on such date. Additionally, the calculation of the compensation expense assumes a forfeiture rate based on historical turnover rates, ranging from
7.4
% to
13.4
% annually by employee class. Blackstone is accounting for these cash settled awards as a liability.
Blackstone paid $3.2
million, $
3.9
million and $
1.7
million to employees in settlement of phantom shares for the years ended December 31
, 2025
, 2024
and 2023
, respectively.
Performance-Based Compensation
During the year ended December 31
, 2021
, Blackstone issued performance-based compensation, the dollar value of which is based on the future achievement of established business performance conditions. The number of vested shares of common stock to be issued is variable based on the
30-day
volume weighted-average price at the end of the performance period. Due to the nature of settlement, the performance-based compensation is classified as a liability. Compensation expense is recognized over the performance period based upon the probable outcome of the performance condition. Due to the variable share settlement, the tables above exclude the impact of this performance-based compensation, as the number of shares to be issued is based on the probability of achieving the performance condition and not yet set.
Blackstone Holdings Partnership Units
Blackstone has granted deferred restricted Blackstone Holdings Partnership Units to certain current and former senior managing directors. Holders of deferred restricted Blackstone Holdings Partnership Units are not entitled to any voting rights.
The fair values of deferred restricted Blackstone Holdings Partnership Units have been derived based on the closing price of Blackstone’s common units on the date of the grant, multiplied by the number of unvested awards and expensed over the assumed service period. Additionally, the calculation of the compensation expense assumes a forfeiture rate of 7.4%, based on historical data.
As of December 31, 2025, substantially all service conditions associated with Blackstone Holdings Partnership Units had been satisfied, and the remaining units, which were unvested as of that date, fully vested on January 1,
2026
.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
- Related Party Transactions
Affiliate Receivables and Payables
Due from Affiliates and Due to Affiliates consisted of the following:
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Due from Affiliates | ||||||||
| Management Fees, Performance Revenues, Reimbursable Expenses and Other Receivables from Non-Consolidated Entities and Portfolio Companies | $ | 5,047,814 | $ | 4,049,707 | ||||
| Due from Certain Non-Controlling Interest Holders and Blackstone Employees | 1,036,117 | 1,191,527 | ||||||
| Accrual for Potential Clawback of Previously Distributed Performance Allocations | 273,531 | 168,081 | ||||||
| $ | 6,357,462 | $ | 5,409,315 | |||||
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Due to Affiliates | ||||||||
| Due to Certain Non-Controlling Interest Holders in Connection with the Tax Receivable Agreements | $ | 2,076,205 | $ | 1,844,978 | ||||
| Due to Non-Consolidated Entities | 237,983 | 208,537 | ||||||
| Due to Certain Non-Controlling Interest Holders and Blackstone Employees | 103,977 | 255,086 | ||||||
| Accrual for Potential Repayment of Previously Received Performance Allocations | 806,267 | 499,547 | ||||||
| $ | 3,224,432 | $ | 2,808,148 | |||||
Interests of the Founder, Senior Managing Directors, Employees and Other Related Parties
The Founder, senior managing directors, employees and certain other related parties invest on a discretionary basis in the consolidated Blackstone Funds both directly and through consolidated entities. These investments generally are subject to preferential management fee and performance allocation or incentive fee arrangements. As of December 31
, 2025
and 2024
, such investments aggregated to $
2.2
billion and $
2.0
billion, respectively. Their share of the Net Income Attributable to Redeemable
Non-Controlling
and
Non-Controlling
Interests in Consolidated Entities aggregated $
187.0
million, $
176.0
million and $
87.8
million for the years ended December 31
, 2025
, 2024
and 2023
, respectively.
Contingent Repayment Guarantee
Blackstone and its personnel who have received Performance Allocation distributions have guaranteed payment on a several basis (subject to a cap) to the carry funds of any clawback obligation with respect to the excess Performance Allocation allocated to the general partners of such funds and indirectly received thereby to the extent that either Blackstone or its personnel fails to fulfill its clawback obligation, if any. The Accrual for Potential Repayment of Previously Received Performance Allocations represents amounts previously paid to Blackstone Holdings and
non-controlling
interest holders that would need to be repaid to the Blackstone Funds if the carry funds were to be liquidated based on the fair value of their underlying investments as of December 31, 2025. See Note 18. “Commitments and Contin
ge
ncies — Contingencies — Contingent Obligations (Clawback).”
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Tax Receivable Agreements
Blackstone used a portion of the proceeds from the IPO and other sales of shares to purchase interests in the predecessor businesses from the predecessor owners. In addition, holders of Blackstone Holdings Partnership Units may exchange their Blackstone Holdings Partnership Units for shares of Blackstone common stock on a
one-for-one
basis. The purchase and subsequent exchanges are expected to result in increases in the tax basis of the tangible and intangible assets of Blackstone Holdings and therefore reduce the amount of tax that Blackstone would otherwise be required to pay in the future.
Blackstone has entered into tax receivable agreements with each of the predecessor owners. In addition, others who acquire Blackstone Holdings Partnership Units, including senior managing directors, execute tax receivable agreements. The agreements provide for the payment by the corporate taxpayer to such owners of
% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the corporate taxpayers actually realize as a result of the aforementioned increases in tax basis and of certain other tax benefits related to entering into these tax receivable agreements. For purposes of the tax receivable agreements, cash savings in income tax will be computed by comparing the actual income tax liability of the corporate taxpayers to the amount of such taxes that the corporate taxpayers would have been required to pay had there been no
increase to the tax basis of the tangible and intangible assets of Blackstone Holdings as a result of the exchanges and had the corporate taxpayers not entered into the tax receivable agreements.
Assuming no
future material changes in the relevant tax law and that the corporate taxpayers earn sufficient taxable income to realize the full tax benefit of the increased amortization of the assets, the expected future payments under the tax receivable agreements (which are taxable to the recipients) will aggregate $
2.1
billion over the next
years. The
after-tax
net present value of these estimated payments totals $
699.3
million assuming a
% discount rate and using Blackstone’s most recent projections relating to the estimated timing of the benefit to be received. Future payments under the tax receivable agreements in respect of subsequent exchanges would be in addition to these amounts. The payments under the tax receivable agreements are not conditioned upon continued ownership of Blackstone equity interests by the
pre-IPO
owners and the others mentioned above. Subsequent to December 31
, 2025
, payments totaling $
70.6
million were made to certain
pre-IPO
owners and others mentioned above in accordance with the tax receivable agreement and related to tax benefits Blackstone received for the 2024
taxable year.
Amounts related to the deferred tax asset resulting from the increase in tax basis from the exchange of Blackstone Holdings Partnership Units to shares of Blackstone common stock, the resulting remeasurement of net deferred tax assets at the Blackstone ownership percentage at the date of the Consolidated Statement of Financial Condition, the due to affiliates for the future payments resulting from the tax receivable agreements and resulting adjustment to partners’ capital are included as Deferred Tax Asset Effects from Equity Transactions in the Supplemental Disclosure of
Non-Cash
Investing and Financing Activities in the Consolidated Statements of Cash Flows.
Other
Blackstone does business with and on behalf of some of its Portfolio Companies; all such arrangements are on a negotiated basis.
Additionally, please see Note 18. “Commitments and Contingencies — Contingencies — Guarantees” for information regarding guarantees provided to a lending institution for certain loans held by employees.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
- Commitments and Contingencies
Commitments
Investment Commitments
Blackstone had $
6.5
billion of investment commitments as of December 31
, 2025
representing general partner capital funding commitments to the Blackstone Funds, limited partner capital funding to other funds and Blackstone principal investment commitments, including loan commitments. The consolidated Blackstone Funds had signed investment commitments of $
797.4
million as of December 31
, 2025
, which includes $
98.6
million of signed investment commitments for portfolio company acquisitions in the process of closing.
Regulated Entities
Certain U.S. and
non-U.S.
entities are subject to various investment adviser and other financial regulatory rules and requirements that may include minimum net capital requirements. These entities have continuously operated in excess of these requirements. This includes a number of U.S. entities that are registered as investment advisers with the SEC.
These regulatory capital requirements may restrict Blackstone’s ability to withdraw capital from its entities. At December 31
, 2025
, $
116.2
million of net assets of consolidated entities may be restricted as to the payment of cash dividends and advances to Blackstone.
Contingencies
Guarantees
Certain of Blackstone’s consolidated real estate funds guarantee payments to third parties in connection with the ongoing business activities and/or acquisitions of their Portfolio Companies. There is no
direct recourse to Blackstone to fulfill such obligations. To the extent that underlying funds are required to fulfill guarantee obligations, Blackstone’s invested capital in such funds is at risk. Total investments at risk in respect of guarantees extended by consolidated real estate funds was $
24.7
million as of December 31
, 2025
.
The
Blackstone Holdings Partnerships provided guarantees to a lending institution for certain loans held by employees either for investment in Blackstone Funds or for members’ capital contributions to Blackstone Europe LLP. The amount guaranteed as of December 31
, 2025
was $
82.0
million.
Strategic Ventures
In December 2022 and January 2023, Blackstone entered into
long-term
strategic ventures (“UC strategic ventures”) with the Regents of the University of California (“UC Investments”), an institutional investor that subscribed for $4.5 billion of Blackstone Real Estate Income Trust, Inc. (“BREIT”) Class I shares during the three months ended March 31, 2023. The UC strategic ventures provide a waterfall structure with UC Investments receiving an 11.25% target annualized net return on its $4.5 billion investment in BREIT shares and upside from its investment. This target return, while not guaranteed, is supported by a pledge by Blackstone of $1.1 billion of its holdings in BREIT as of the subscription dates, including any appreciation or dividends received by Blackstone in respect thereof. Pursuant to the UC strategic ventures, Blackstone is entitled to receive an incremental 5% cash payment from UC Investments on any returns received in excess of the target return.
In March 2025, Blackstone entered into a similar long-term strategic venture with an institutional investor as part of the investor’s investment of
€
1.0 billion in a vehicle managed in the Real Estate segment. The long-term strategic venture provides for a target return of 9.25% supported by a pledge by Blackstone of
€
200 million of its holdings in a related vehicle.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
For each such arrangement, an asset or liability is recognized b
ase
d on fair value with the maximum potential future obligation in respect of the target return capped at the fair value of the assets pledged by Blackstone in connection with the respective arrangement. As of December 31, 2025, across both arrangements, the fair value of the total assets pledged was $1.5 billion and the total liability recognized was $1.1 billion.
Litigation
Blackstone may from time to time be involved in litigation and claims incidental to the conduct of its business. Blackstone’s businesses are also subject to extensive regulation, which may result in regulatory proceedings against Blackstone.
Blackstone accrues a liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. Although there can be no assurance of the outcome of such legal actions, based on information known by management, Blackstone does not have any unaccrued liability related to any current legal proceeding or claim that would individually or in the aggregate materially affect its results of operations, financial position or cash flows.
In December 2017, eight pension plan members of the Kentucky Retirement System (“KRS”) filed a derivative lawsuit on behalf of KRS in Franklin County Circuit Court in Kentucky (the “Mayberry Action”). Plaintiffs alleged breaches of fiduciary duty and other violations of Kentucky law in connection with KRS’s investment in three hedge funds of funds, including a fund managed by Blackstone Alternative Asset Management L.P. (“BLP”). The suit named more than 30 defendants, including, among others, The Blackstone Group L.P. (now Blackstone Inc.); BLP; Stephen A. Schwarzman, as Chairman and CEO of Blackstone; and J. Tomilson Hill, as
then-CEO
of BLP (collectively, the “Blackstone Defendants”). In July 2020, the Kentucky Supreme Court directed the Circuit Court to dismiss the action for lack of standing.
In July 2020, the Kentucky Attorney General (the “AG”) filed its own action asserting substantially identical claims against largely the same defendants (the “July 2020 Action”). In May 2024, the Court denied the Blackstone Defendants’ and most other defendants’ motions to dismiss the July 2020 Action. In April 2024, the AG amended its complaint, adding
breach-of-contract
claims against the fund manager defendants. Defendants moved to dismiss this amended complaint in June 2024. Those motions are pending.
In August 2022, KRS was ordered to disclose a 2021 report it commissioned to investigate the investment activities underlying the lawsuit. The report “did not find any violations of fiduciary duty or illegal activity by [BLP],” and quotes communications by KRS staff during the period of the investment recognizing that BLP was exceeding KRS’s returns benchmark, providing KRS with “far fewer negative months than any liquid market comparable,” and that BLP “[h]as killed it.”
In January 2021, certain former plaintiffs in the Mayberry Action filed a separate action (“Taylor I”) against the Blackstone Defendants and other defendants in the Mayberry Action, asserting substantially similar allegations as the AG’s July 2020 action did, but styled as a direct class action. Taylor I was removed to the U.S. District Court for the Eastern District of Kentucky and stayed pending the outcome of the AG’s July 2020 action.
In August 2021, a group of KRS members—including those that filed Taylor I—filed an action in Franklin County Circuit Court (“Taylor II”) substantially similar to Taylor I, against the Blackstone Defendants, other defendants named in the Mayberry Action, and other KRS officials. The Court denied most defendants’ motions to dismiss this action in May 2024. The Blackstone Defendants and the other fund manager defendants filed a petition for a writ of prohibition from that denial. In November 2024, the Kentucky Court of Appeals denied defendants’ writ of prohibition, and defendants appealed to the Kentucky Supreme Court. Taylor II is stayed pending review of this appeal.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
In April 2021, the AG filed an action (the “Declaratory Judgment Action”) against BLP and the other fund manager defendants from the Mayberry Action in Franklin County Circuit Court, seeking a declaration that certain provisions in the subscription agreements with KRS violate the Kentucky Constitution. In August 2024, the Kentucky Supreme Court granted BLP’s motion for discretionary review of the Circuit Court’s grant of summary judgment to the AG. The appeal is fully briefed and pending.
In July 2021, BLP filed a
breach-of-contract
action against defendants affiliated with KRS, alleging that the Mayberry Action and the Declaratory Judgment Action breach the parties’ subscription agreements and seeking damages. In February 2024, the Kentucky Supreme Court granted BLP’s motion for discretionary review of the Circuit Court’s dismissal on ripeness grounds. The appeal is fully briefed and pending.
In January 2025, we and several other defendants entered into a settlement agreement with KRS and the Commonwealth of Kentucky that, subject to approval by the Franklin County Circuit Court and certain requirements, would have resolved all claims against these defendants in the AG’s actions, resolved BLP’s
breach-of-contract
claims, and barred all claims against the Blackstone Defendants in Taylor I and Taylor II without any admission of wrongdoing. The settlement included an $82.5 million cash settlement divided among several defendants, of which our portion would have been expected to be covered by insurance. In January 2025, the settling parties moved for court approval of the settlement. Taylor II plaintiffs objected. In May 2025, the Court declined to enter an approval order, holding that the Court’s approval is unnecessary and stating that the parties may settle as they see fit. Because an approval order was a condition to the settlement, the settlement agreement was terminated. While the parties are continuing their discussions, they have not reached a new settlement.
Our financial results for the year ended December 31, 2025 include an accrual for the estimated liability related to this matter.
Contingent Obligations (Clawback)
Performance Allocations are subject to clawback to the extent that the Performance Allocations received to date with respect to a fund exceeds the amount due to Blackstone based on cumulative results of that fund. The actual clawback liability, however, generally does not become realized until the end of a fund’s life except for certain Blackstone funds, which may have an interim clawback liability. The lives of the funds, including available contemplated extensions, for which a liability for potential clawback obligations has been recorded for financial reporting purposes, are currently anticipated to expire at various points through
2038
. Further extensions of such terms may be implemented under given circumstances.
For financial reporting purposes, when applicable, the general partners record a liability for potential clawback obligations to the limited partners of some of the funds due to changes in the unrealized value of a fund’s remaining investments and where the fund’s general partner has previously received Performance Allocation distributions with respect to such fund’s realized investments. The liability is based on the general partner’s net obligation to the fund assuming all remaining investments were realized as of the end of each reporting period at the fair value of the underlying investments.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
The following table presents the clawback obligations by segment:
| December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Segment | Blackstone Holdings | Current and Former Personnel (a) | Total (b) | Blackstone Holdings | Current and Former Personnel (a) | Total (b) | ||||||||||||||||||
| Real Estate | $ | 448,096 | $ | 227,924 | $ | 676,020 | $ | 316,749 | $ | 158,346 | $ | 475,095 | ||||||||||||
| Private Equity | 84,640 | 45,607 | 130,247 | 15,044 | 6,273 | 21,317 | ||||||||||||||||||
| Credit & Insurance | — | — | — | 1,468 | 1,667 | 3,135 | ||||||||||||||||||
| $ | 532,736 | $ | 273,531 | $ | 806,267 | $ | 333,261 | $ | 166,286 | $ | 499,547 | |||||||||||||
| (a) | The split of clawback between Blackstone Holdings and Current and Former Personnel is based on the performance of individual investments held by a fund rather than on a fund by fund basis. |
|---|
| (b) | Total is a component of Due to Affiliates. See Note 17. “Related Party Transactions — Affiliate Receivables and Payables — Due to Affiliates.” |
|---|
During the year ended December 31, 2025, the Blackstone general partners paid a cash clawback obligation of
$
52.3
million related to interim and final cash clawbacks for funds in the Real Estate, Credit & Insurance and Private Equity segments, of which
$
31.6
million was paid by Blackstone Holdings and
$
20.7
million by current and former Blackstone personnel.
For Private Equity, Real Estate, and certain Credit & Insurance Funds, a portion of the Performance Allocations paid to current and former Blackstone personnel is held in segregated accounts in the event of a cash clawback obligation. These segregated accounts are not included in the consolidated financial statements of Blackstone, except to the extent a portion of the assets held in the segregated accounts may be allocated to a consolidated Blackstone fund of hedge funds. At December 31, 2025, $
1.2
billion was held in segregated accounts for the purpose of meeting any clawback obligations of current and former personnel if such payments are required.
In the Credit & Insurance segment, payment of Performance Allocations to Blackstone by the majority of the stressed/distressed, mezzanine and credit alpha strategies funds are substantially deferred under the terms of the partnership agreements. This deferral mitigates the need to hold funds in segregated accounts in the event of a cash clawback obligation.
If, at December 31, 2025, all of the investments held by Blackstone’s carry funds were deemed worthless, a possibility that management views as remote, the amount of Performance Allocations subject to potential clawback would be $
(8.3)
billion, on an
after-tax
basis where applicable, of which Blackstone Holdings is potentially liable for $
(7.7)
billion if current and former Blackstone personnel default on their share of the liability, a possibility that management also views as remote.
- Segment Reporting
Blackstone conducts its alternative asset management businesses through four segments:
| • | Real Estate – Blackstone’s Real Estate segment primarily comprises its management of opportunistic real estate funds, Core+ real estate funds, and real estate debt strategies. |
|---|
| • | Private Equity – Blackstone’s Private Equity segment includes its management of flagship Corporate Private Equity funds, sector and geographically-focused Corporate Private Equity funds, core private equity funds, an opportunistic investment platform, a secondary funds business and GP Stakes, infrastructure-focused funds, a life sciences investment platform, a growth equity investment platform, investment platforms offering eligible individual investors access to Blackstone’s private equity and infrastructure capabilities, a multi-asset investment program for eligible high net worth investors and a capital markets services business. |
|---|
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| • | Credit & Insurance – Blackstone’s Credit & Insurance segment consists principally of Blackstone Credit & Insurance, which is organized into three overarching strategies: private corporate credit, liquid corporate credit and infrastructure and asset based credit. In addition, the segment includes an insurer-focused platform. |
|---|
| • | Multi-Asset Investing – Blackstone’s Multi-Asset Investing segment is organized into four investment platforms: Absolute Return, Multi-Strategy, Total Portfolio Management, and Public Real Assets. |
|---|
These business segments are differentiated by their various investment strategies. E
ac
h of the segments primarily earns its income from management fees and investment returns on assets under management. Blackstone’s chief operating decision makers are its Chief Executive Officer and
Co-Founder
and its President and Chief Operating Officer.
Segment Distributable Earnings is Blackstone’s segment profitability measure used to make operating decisions and assess performance across Blackstone’s four segments.
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.
For segment reporting purposes, Segment Distributable Earnings is presented along with its major components, Fee Related Earnings and Net Realizations. Fee Related Earnings is used to assess Blackstone’s ability to generate profits from revenues that are measured and received on a recurring basis and not subject to future realization events. Net Realizations is the sum of Realized Principal Investment Income and Realized Performance Revenues less Realized Performance Compensation. Performance Allocations and Incentive Fees are presented together and referred to collectively as Performance Revenues or Performance Compensation.
Geographic Information
Blackstone conducts its business primarily in the United States with domestically generated revenues making up 68%, 68% and 70% of total GAAP revenues for the years ended December 31, 2025, 2024 and 2023, respectively. The table below presents the percentage of total GAAP revenues generated by Blackstone by geographic region. Revenues attributed to a geographic region are generally based on the geography of investments held by Blackstone and Blackstone Funds. The geography of an investment is generally the country of domicile for an asset or where a portfolio company is headquartered.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Americas | 80 | % | 76 | % | 78 | % | ||||||
| Europe, Middle East and Africa | 13 | % | 16 | % | 15 | % | ||||||
| Asia-Pacific | 7 | % | 8 | % | 7 | % | ||||||
| 100 | % | 100 | % | 100 | % | |||||||
Blackstone’s long-lived assets are comprised of
Right-of-Use
Assets and Furniture, Equipment and Leasehold Improvements, Net. As of December 31, 2025 and 2024, Blackstone held long-lived assets in the United States of $
1.0
billion and $
1.1
billion, respectively. No individual foreign country constituted more than
% of Blackstone’s total long-lived assets as of December 31, 2025 and 2024.
Major Customer Information
For the years ended December 31, 2025, 2024 and 2023, Blackstone Private Credit Fund (“BCRED”) accounted for an aggregate of $
1.2
billion, $
980.6
million and $
762.6
million of Management and Advisory Fees, Net and Incentive Fees, respectively. For the year ended December 31, 2023, BREIT accounted for $
839.9
million of Blackstone’s Management and Advisory Fees, Net. BCRED and BREIT are vehicles in Blackstone’s Credit & Insurance segment and Real Estate segment, respectively. Generally, for purposes of major customer analysis, Blackstone identifies the customer as the investors in its managed investment vehicles. For certain widely held vehicles like BCRED and BREIT, however, the investment vehicle is determined to be the customer. Blackstone evaluates the major customer disclosure in the context of its revenue streams as determined under the GAAP guidance for contracts with customers which includes Management and Advisory Fees, Net and Incentive Fees.
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Segment Presentation
The following tables present the financial data for Blackstone’s
four
segments as of December 31, 2025 and 2024, and for the years ended December 31, 2025, 2024 and 2023.
| December 31, 2025 and the Year Then Ended | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total Segments | ||||||||||||||||
| Management and Advisory Fees, Net | ||||||||||||||||||||
| Base Management Fees | $ | 2,653,294 | $ | 2,457,981 | $ | 1,909,147 | $ | 528,435 | $ | 7,548,857 | ||||||||||
| Transaction, Advisory and Other Fees, Net | 141,696 | 362,531 | 74,115 | 4,489 | 582,831 | |||||||||||||||
| Management Fee Offsets | (13,066 | ) | (48,903 | ) | (53,670 | ) | — | (115,639 | ) | |||||||||||
| Total Management and Advisory Fees, Net | 2,781,924 | 2,771,609 | 1,929,592 | 532,924 | 8,016,049 | |||||||||||||||
| Fee Related Performance Revenues | 489,648 | 547,985 | 787,795 | — | 1,825,428 | |||||||||||||||
| Fee Related Compensation | (690,292 | ) | (961,448 | ) | (869,636 | ) | (169,325 | ) | (2,690,701 | ) | ||||||||||
| Other Operating Expenses | (370,001 | ) | (482,312 | ) | (450,401 | ) | (110,525 | ) | (1,413,239 | ) | ||||||||||
| Fee Related Earnings | 2,211,279 | 1,875,834 | 1,397,350 | 253,074 | 5,737,537 | |||||||||||||||
| Realized Performance Revenues | 268,773 | 1,670,108 | 386,729 | 489,919 | 2,815,529 | |||||||||||||||
| Realized Performance Compensation | (130,361 | ) | (704,938 | ) | (161,493 | ) | (93,803 | ) | (1,090,595 | ) | ||||||||||
| Realized Principal Investment Income | 10,689 | 66,495 | 335,870 | 6,689 | 419,743 | |||||||||||||||
| Total Net Realizations | 149,101 | 1,031,665 | 561,106 | 402,805 | 2,144,677 | |||||||||||||||
| Total Segment Distributable Earnings | $ | 2,360,380 | $ | 2,907,499 | $ | 1,958,456 | $ | 655,879 | $ | 7,882,214 | ||||||||||
| Segment Assets | $ | 12,808,547 | $ | 19,747,965 | $ | 8,077,869 | $ | 2,352,308 | $ | 42,986,689 | ||||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| December 31, 2024 and the Year Then Ended | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total Segments | ||||||||||||||||
| Management and Advisory Fees, Net | ||||||||||||||||||||
| Base Management Fees | $ | 2,716,983 | $ | 2,027,855 | $ | 1,561,649 | $ | 474,395 | $ | 6,780,882 | ||||||||||
| Transaction, Advisory and Other Fees, Net | 175,010 | 176,469 | 44,354 | 3,855 | 399,688 | |||||||||||||||
| Management Fee Offsets | (16,716 | ) | (6,044 | ) | (24,196 | ) | (80 | ) | (47,036 | ) | ||||||||||
| Total Management and Advisory Fees, Net | 2,875,277 | 2,198,280 | 1,581,807 | 478,170 | 7,133,534 | |||||||||||||||
| Fee Related Performance Revenues | 203,425 | 1,185,428 | 747,092 | — | 2,135,945 | |||||||||||||||
| Fee Related Compensation | (674,965 | ) | (1,164,237 | ) | (755,620 | ) | (144,500 | ) | (2,739,322 | ) | ||||||||||
| Other Operating Expenses | (380,321 | ) | (391,309 | ) | (371,354 | ) | (105,108 | ) | (1,248,092 | ) | ||||||||||
| Fee Related Earnings | 2,023,416 | 1,828,162 | 1,201,925 | 228,562 | 5,282,065 | |||||||||||||||
| Realized Performance Revenues | 200,974 | 1,392,447 | 313,092 | 380,518 | 2,287,031 | |||||||||||||||
| Realized Performance Compensation | (101,011 | ) | (633,491 | ) | (129,814 | ) | (86,930 | ) | (951,246 | ) | ||||||||||
| Realized Principal Investment Income (Loss) | 14,522 | 52,356 | 39,855 | (14,207 | ) | 92,526 | ||||||||||||||
| Total Net Realizations | 114,485 | 811,312 | 223,133 | 279,381 | 1,428,311 | |||||||||||||||
| Total Segment Distributable Earnings | $ | 2,137,901 | $ | 2,639,474 | $ | 1,425,058 | $ | 507,943 | $ | 6,710,376 | ||||||||||
| Segment Assets | $ | 11,573,910 | $ | 18,027,030 | $ | 8,668,716 | $ | 1,958,735 | $ | 40,228,391 | ||||||||||
| Year Ended December 31, 2023 | ||||||||||||||||||||
| Real Estate | Private Equity | Credit & Insurance | Multi-Asset Investing | Total Segments | ||||||||||||||||
| Management and Advisory Fees, Net | ||||||||||||||||||||
| Base Management Fees | $ | 2,794,232 | $ | 1,903,972 | $ | 1,297,406 | $ | 470,237 | $ | 6,465,847 | ||||||||||
| Transaction, Advisory and Other Fees, Net | 78,483 | 108,848 | 44,542 | 4,019 | 235,892 | |||||||||||||||
| Management Fee Offsets | (29,357 | ) | (5,228 | ) | (3,907 | ) | (3 | ) | (38,495 | ) | ||||||||||
| Total Management and Advisory Fees, Net | 2,843,358 | 2,007,592 | 1,338,041 | 474,253 | 6,663,244 | |||||||||||||||
| Fee Related Performance Revenues | 294,240 | — | 564,287 | — | 858,527 | |||||||||||||||
| Fee Related Compensation | (675,880 | ) | (619,678 | ) | (628,064 | ) | (164,488 | ) | (2,088,110 | ) | ||||||||||
| Other Operating Expenses | (325,050 | ) | (329,221 | ) | (323,773 | ) | (106,289 | ) | (1,084,333 | ) | ||||||||||
| Fee Related Earnings | 2,136,668 | 1,058,693 | 950,491 | 203,476 | 4,349,328 | |||||||||||||||
| Realized Performance Revenues | 244,358 | 1,343,865 | 317,620 | 155,259 | 2,061,102 | |||||||||||||||
| Realized Performance Compensation | (123,299 | ) | (584,154 | ) | (140,210 | ) | (48,354 | ) | (896,017 | ) | ||||||||||
| Realized Principal Investment Income | 7,628 | 76,220 | 21,752 | 5,332 | 110,932 | |||||||||||||||
| Total Net Realizations | 128,687 | 835,931 | 199,162 | 112,237 | 1,276,017 | |||||||||||||||
| Total Segment Distributable Earnings | $ | 2,265,355 | $ | 1,894,624 | $ | 1,149,653 | $ | 315,713 | $ | 5,625,345 | ||||||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
Reconciliations of Total Segment Amounts
The following tables reconcile the Total Segment Revenues, Expenses and Distributable Earnings to their equivalent GAAP measure for the years ended December 31, 2025, 2024 and 2023 along with Total Assets as of December 31, 2025 and 2024:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Revenues | ||||||||||||
| Total GAAP Revenues | $ | 14,450,265 | $ | 13,229,968 | $ | 8,022,841 | ||||||
| Less: Unrealized Performance Revenues (a) | (642,957 | ) | (371,407 | ) | 1,691,788 | |||||||
| Less: Unrealized Principal Investment (Income) Loss (b) | (171,440 | ) | (271,868 | ) | 593,301 | |||||||
| Less: Interest and Dividend Revenue (c) | (416,094 | ) | (410,980 | ) | (535,641 | ) | ||||||
| Less: Other Revenue (d) | 271,190 | (123,166 | ) | 93,083 | ||||||||
| Impact of Consolidation (e) | (398,131 | ) | (444,828 | ) | (200,237 | ) | ||||||
| Transaction-Related and Non-Recurring Items (f) | (17,214 | ) | 39,272 | 25,672 | ||||||||
| Intersegment Eliminations | 1,130 | 2,045 | 2,998 | |||||||||
| Total Segment Revenue (g) | $ | 13,076,749 | $ | 11,649,036 | $ | 9,693,805 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Expenses | ||||||||||||
| Total GAAP Expenses | $ | 7,702,607 | $ | 6,819,326 | $ | 4,981,130 | ||||||
| Less: Unrealized Performance Allocations Compensation (h) | (376,962 | ) | (140,021 | ) | 654,403 | |||||||
| Less: Equity-Based Compensation (i) | (1,443,246 | ) | (1,159,122 | ) | (959,474 | ) | ||||||
| Less: Interest Expense (j) | (497,095 | ) | (444,417 | ) | (429,521 | ) | ||||||
| Impact of Consolidation (e) | (116,051 | ) | (81,129 | ) | (137,603 | ) | ||||||
| Amortization of Intangibles (k) | (29,326 | ) | (29,332 | ) | (33,457 | ) | ||||||
| Transaction-Related and Non-Recurring Items (f) | (30,185 | ) | (17,100 | ) | (309 | ) | ||||||
| Administrative Fee Adjustment (l) | (16,337 | ) | (11,590 | ) | (9,707 | ) | ||||||
| Intersegment Eliminations | 1,130 | 2,045 | 2,998 | |||||||||
| Total Segment Expenses (m) | $ | 5,194,535 | $ | 4,938,660 | $ | 4,068,460 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Other Income | ||||||||||||
| Total GAAP Other Income (Loss) | $ | 423,988 | $ | 48,838 | $ | (83,997 | ) | |||||
| Impact of Consolidation (e) | (423,988 | ) | (48,838 | ) | 83,997 | |||||||
| Total Segment Other Income | $ | — | $ | — | $ | — | ||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Income Before Provision for Taxes | ||||||||||||
| Total GAAP Income Before Provision for Taxes | $ | 7,171,646 | $ | 6,459,480 | $ | 2,957,714 | ||||||
| Less: Unrealized Performance Revenues (a) | (642,957 | ) | (371,407 | ) | 1,691,788 | |||||||
| Less: Unrealized Principal Investment (Income) Loss (b) | (171,440 | ) | (271,868 | ) | 593,301 | |||||||
| Less: Interest and Dividend Revenue (c) | (416,094 | ) | (410,980 | ) | (535,641 | ) | ||||||
| Less: Other Revenue (d) | 271,190 | (123,166 | ) | 93,083 | ||||||||
| Plus: Unrealized Performance Allocations Compensation (h) | 376,962 | 140,021 | (654,403 | ) | ||||||||
| Plus: Equity-Based Compensation (i) | 1,443,246 | 1,159,122 | 959,474 | |||||||||
| Plus: Interest Expense (j) | 497,095 | 444,417 | 429,521 | |||||||||
| Impact of Consolidation (e) | (706,068 | ) | (412,537 | ) | 21,363 | |||||||
| Amortization of Intangibles (k) | 29,326 | 29,332 | 33,457 | |||||||||
| Transaction-Related and Non-Recurring Items (f) | 12,971 | 56,372 | 25,981 | |||||||||
| Administrative Fee Adjustment (l) | 16,337 | 11,590 | 9,707 | |||||||||
| Total Segment Distributable Earnings | $ | 7,882,214 | $ | 6,710,376 | $ | 5,625,345 | ||||||
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Total Assets | ||||||||
| Total GAAP Assets | $ | 47,708,975 | $ | 43,469,875 | ||||
| Impact of Consolidation (e) | (4,722,286 | ) | (3,241,484 | ) | ||||
| Total Segment Assets | $ | 42,986,689 | $ | 40,228,391 | ||||
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles and Transaction-Related and
Non-Recurring
Items.
| (a) | This adjustment removes Unrealized Performance Revenues on a segment basis. |
|---|
| (b) | This adjustment removes Unrealized Principal Investment (Income) Loss on a segment basis. |
|---|
| (c) | This adjustment removes Interest and Dividend Revenue on a segment basis. |
|---|
| (d) | This adjustment removes Other Revenue on a segment basis. For the years ended December 31, 2025, 2024 and 2023, Other Revenue on a GAAP basis was $ (270.9) million, $ 123.7 million and $ (92.9) million and included $ (271.2) million, $ 122.3 million and $ (94.7) million of foreign exchange gains (losses), respectively. |
|---|
| (e) | This adjustment reverses the effect of consolidating Blackstone Funds, which are excluded from Blackstone’s segment presentation. This adjustment includes the elimination of Blackstone’s interest in these funds, the removal of amounts attributable to the reimbursement of certain expenses by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures, and the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
|---|
| (f) | This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. 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. |
|---|
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| (g) | Total Segment Revenues is comprised of the following: |
|---|
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Total Segment Management and Advisory Fees, Net | $ | 8,016,049 | $ | 7,133,534 | $ | 6,663,244 | ||||||
| Total Segment Fee Related Performance Revenues | 1,825,428 | 2,135,945 | 858,527 | |||||||||
| Total Segment Realized Performance Revenues | 2,815,529 | 2,287,031 | 2,061,102 | |||||||||
| Total Segment Realized Principal Investment Income | 419,743 | 92,526 | 110,932 | |||||||||
| Total Segment Revenues | $ | 13,076,749 | $ | 11,649,036 | $ | 9,693,805 | ||||||
| (h) | This adjustment removes Unrealized Performance Allocations Compensation. |
|---|
| (i) | This adjustment removes Equity-Based Compensation on a segment basis. |
|---|
| (j) | This adjustment adds back Interest Expense on a segment basis, excluding interest expense related to the Tax Receivable Agreement. |
|---|
| (k) | This adjustment removes the amortization of transaction-related intangibles, which are excluded from Blackstone’s segment presentation. |
|---|
| (l) | This adjustment adds an amount equal 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. |
|---|
| (m) | Total Segment Expenses is comprised of the following: |
|---|
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Total Segment Fee Related Compensation | $ | 2,690,701 | $ | 2,739,322 | $ | 2,088,110 | ||||||
| Total Segment Realized Performance Compensation | 1,090,595 | 951,246 | 896,017 | |||||||||
| Total Segment Other Operating Expenses | 1,413,239 | 1,248,092 | 1,084,333 | |||||||||
| Total Segment Expenses | $ | 5,194,535 | $ | 4,938,660 | $ | 4,068,460 | ||||||
Reconciliations of Total Segment Components
The following tables reconcile the components of Total Segments to their equivalent GAAP measures, reported on the Consolidated Statement of Operations for the years ended December 31, 2025, 2024 and 2023:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Management and Advisory Fees, Net | ||||||||||||
| GAAP | $ | 8,075,601 | $ | 7,188,936 | $ | 6,671,260 | ||||||
| Segment Adjustment (a) | (59,552 | ) | (55,402 | ) | (8,016 | ) | ||||||
| Total Segment | $ | 8,016,049 | $ | 7,133,534 | $ | 6,663,244 | ||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| GAAP Realized Performance Revenues to Total Segment Fee Related Performance Revenues | ||||||||||||
| GAAP | ||||||||||||
| Incentive Fees | $ | 978,202 | $ | 964,178 | $ | 695,171 | ||||||
| Investment Income — Realized Performance Allocations | 3,662,243 | 3,457,746 | 2,223,841 | |||||||||
| GAAP | 4,640,445 | 4,421,924 | 2,919,012 | |||||||||
| Total Segment | ||||||||||||
| Less: Realized Performance Revenues | (2,815,529 | ) | (2,287,031 | ) | (2,061,102 | ) | ||||||
| Segment Adjustment (b) | 512 | 1,052 | 617 | |||||||||
| Total Segment | $ | 1,825,428 | $ | 2,135,945 | $ | 858,527 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| GAAP Compensation to Total Segment Fee Related Compensation | ||||||||||||
| GAAP | ||||||||||||
| Compensation | $ | 3,671,193 | $ | 3,048,229 | $ | 2,785,447 | ||||||
| Incentive Fee Compensation | 274,902 | 373,586 | 281,067 | |||||||||
| Realized Performance Allocations Compensation | 1,297,472 | 1,432,217 | 900,859 | |||||||||
| GAAP | 5,243,567 | 4,854,032 | 3,967,373 | |||||||||
| Total Segment | ||||||||||||
| Less: Realized Performance Compensation | (1,090,595 | ) | (951,246 | ) | (896,017 | ) | ||||||
| Less: Equity-Based Compensation — Fee Related Compensation | (1,412,703 | ) | (1,143,054 | ) | (946,575 | ) | ||||||
| Less: Equity-Based Compensation — Performance Compensation | (30,543 | ) | (16,068 | ) | (12,899 | ) | ||||||
| Segment Adjustment (c) | (19,025 | ) | (4,342 | ) | (23,772 | ) | ||||||
| Total Segment | $ | 2,690,701 | $ | 2,739,322 | $ | 2,088,110 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| GAAP General, Administrative and Other to Total Segment Other Operating Expenses | ||||||||||||
| GAAP | $ | 1,524,548 | $ | 1,361,909 | $ | 1,117,305 | ||||||
| Segment Adjustment (d) | (111,309 | ) | (113,817 | ) | (32,972 | ) | ||||||
| Total Segment | $ | 1,413,239 | $ | 1,248,092 | $ | 1,084,333 | ||||||
Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Performance Revenues | ||||||||||||
| GAAP | ||||||||||||
| Incentive Fees | $ | 978,202 | $ | 964,178 | $ | 695,171 | ||||||
| Investment Income — Realized Performance Allocations | 3,662,243 | 3,457,746 | 2,223,841 | |||||||||
| GAAP | 4,640,445 | 4,421,924 | 2,919,012 | |||||||||
| Total Segment | ||||||||||||
| Less: Fee Related Performance Revenues | (1,825,428 | ) | (2,135,945 | ) | (858,527 | ) | ||||||
| Segment Adjustment (b) | 512 | 1,052 | 617 | |||||||||
| Total Segment | $ | 2,815,529 | $ | 2,287,031 | $ | 2,061,102 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Performance Compensation | ||||||||||||
| GAAP | ||||||||||||
| Incentive Fee Compensation | $ | 274,902 | $ | 373,586 | $ | 281,067 | ||||||
| Realized Performance Allocations Compensation | 1,297,472 | 1,432,217 | 900,859 | |||||||||
| GAAP | 1,572,374 | 1,805,803 | 1,181,926 | |||||||||
| Total Segment | ||||||||||||
| Less: Fee Related Performance Compensation (e) | (451,236 | ) | (838,489 | ) | (273,010 | ) | ||||||
| Less: Equity-Based Compensation — Performance Compensation | (30,543 | ) | (16,068 | ) | (12,899 | ) | ||||||
| Total Segment | $ | 1,090,595 | $ | 951,246 | $ | 896,017 | ||||||
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Realized Principal Investment Income | ||||||||||||
| GAAP | $ | 697,632 | $ | 332,258 | $ | 303,823 | ||||||
| Segment Adjustment (f) | (277,889 | ) | (239,732 | ) | (192,891 | ) | ||||||
| Total Segment | $ | 419,743 | $ | 92,526 | $ | 110,932 | ||||||
Segment basis presents revenues and expenses on a basis that deconsolidates the investment funds Blackstone manages and excludes the amortization of intangibles, the expense of equity-based awards and Transaction-Related and
Non-Recurring
Items.
| (a) | Represents (1) the add back of net management fees earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts attributable to the reimbursement of certain expenses by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures. |
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| (b) | Represents the add back of Performance Revenues earned from consolidated Blackstone Funds which have been eliminated in consolidation. |
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| (c) | Represents the removal of Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment measures. |
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Blackstone Inc.
Notes to Consolidated Financial Statements—Continued
(All Dollars are in Thousands, Except Share and Per Share Data, Except Where Noted)
| (d) | Represents the (1) removal of Transaction-Related and Non-Recurring Items that are not recorded in the Total Segment measures, (2) removal of amounts attributable to certain expenses that are reimbursed by the Blackstone Funds and certain NAV-based fee arrangements, which are presented on a gross basis under GAAP but as a reduction of Management and Advisory Fees, Net in the Total Segment measures, and (3) a reduction equal to an administrative fee collected on a quarterly basis from certain holders of Blackstone Holdings Partnership Units which is accounted for as a capital contribution under GAAP, but is reflected as a reduction of Other Operating Expenses in Blackstone’s segment presentation. |
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| (e) | Fee related performance compensation may include equity-based compensation based on fee related performance revenues. |
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| (f) | Represents (1) the add back of Principal Investment Income, including general partner income, earned from consolidated Blackstone Funds which have been eliminated in consolidation, and (2) the removal of amounts associated with the ownership of Blackstone consolidated operating partnerships held by non-controlling interests. |
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| 20. | Subsequent Events |
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There have been no events since December 31, 2025 that require recognition or disclosure in the consolidated financial statements.
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