Item 3. Quantitative and Qualitative Disclosures About Market Risk

Our predominant exposure to market risk is related to our role as general partner or investment adviser to the Blackstone Funds and the sensitivities to movements in the fair value of their investments, including the effect on management fees, performance revenues and investment income.

Our management fees are based on (a) third parties’ capital commitments to a Blackstone Fund, (b) third parties’ capital invested in a Blackstone Fund or (c) the net asset value (“NAV”) or gross asset value (“GAV”) of a Blackstone Fund, vehicle or separately managed account, as described in our Condensed Consolidated Financial Statements. Management fees will only be directly affected by short-term changes in market conditions to the extent they are based on NAV, GAV or represent permanent impairments of value. These management fees will be increased (or reduced) in direct proportion to the effect of changes in the fair value of our investments in the related funds. The proportion of our management fees that are based on NAV or GAV is dependent on the number and types of Blackstone Funds, vehicles, or separately managed accounts in existence and the current stage of each fund’s life cycle. For the three months ended March 31, 2022, the percentage of our fund management fees based on the NAV or GAV of the applicable funds, vehicles or separately managed accounts was 49%. Based on the fair value as of March 31, 2022, we estimate that a 10% decline in the fair value of investments would result in a decline of $293.3 million in Management and Advisory Fees on an annualized basis.

There were no other material changes in our market risks as of March 31, 2022 as compared to December 31, 2021. For additional information, refer to our Annual Report on Form

10-K

for the year ended December 31, 2021.